1st Source Reports Q2 Earnings Beat, Announces CEO Succession Plan

1st Source Corporation reported strong Q2 2025 financial results, with earnings per share of $1.51, slightly beating analyst estimates, and revenues of $108.25 million, up 11.3% year-over-year. The company achieved its sixth consecutive quarter of margin expansion due to higher rates on investment securities, increased loan and lease balances, and lower deposit costs. Despite a modest decline in return on average assets and equity compared to the previous quarter, net interest income and net interest margin showed significant growth. A cash dividend of $0.38 per share was declared, marking a 5.56% increase from the prior year. Additionally, 1st Source announced a leadership succession plan: Christopher J. Murphy III will step down as CEO to become Executive Chairman, Andrea Short will become CEO and President of the corporation, and Kevin Murphy will assume the presidency of 1st Source Bank, continuing the family’s multi-generational leadership legacy. The company has shown consistent earnings and revenue growth, with stable demand and positive investor interest reflected in recent institutional portfolio adjustments and analyst price targets.