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1st SourceSRCE -0.12%66 Return-on-Tangible-Asset is 2.09% as of Jun. 2026, which is 43% above its 10-year median of 1.46. GuruFocus rates SRCE with a GF Score™ of 66/100 and a GF Value™ of $69.87 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,528 Banks companies, 1st Source ranks better than 86.39% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. 1st Source's annualizedNet Income for the quarter that ended in Jun. 2026 was $190.2 Mil. 1st Source's average total tangible assets for the quarter that ended in Jun. 2026 was $9,101.1 Mil. Therefore, 1st Source's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 2.09%.
The historical rank and industry rank for 1st Source's Return-on-Tangible-Asset or its related term are showing as below:
SRCE'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.1 Med: 1.46 Max: 1.89
Current: 1.89
During the past 13 years, 1st Source's highest Return-on-Tangible-Asset was 1.89%. The lowest was 1.10%. And the median was 1.46%.
SRCE's Return-on-Tangible-Asset is ranked better than 86.39% of 1528
companies
in the Banks industry
Industry Median: 1.005
vs SRCE: 1.89
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
1st Source Return-on-Tangible-Asset Related Terms
1st Source Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for 1st Source's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SRCE vs HAPN, FCF, CHCO: Return-on-Tangible-Asset Comparison
For the Banks - Regional subindustry, 1st Source's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
1st Source Return-on-Tangible-Asset vs Banks Industry
For the Banks industry and Financial Services sector, 1st Source's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where 1st Source's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.09% mean?
1st Source (SRCE) has a Return-on-Tangible-Asset of 2.09% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on 1st Source and its competitors. This is 43% above median its historical median of 1.46. Over the past decade, 1st Source's Return-on-Tangible-Asset has ranged from 1.10 to 1.89. According to the industry distribution chart, 1st Source ranks #208 out of 1528 companies in the Banks industry, placing it in the top 13.6%.
Is 1st Source's Return-on-Tangible-Asset too high?
1st Source's current Return-on-Tangible-Asset of 2.09% is 43% above median its 10-year median of 1.46. Over the past 10 years, this metric has ranged from a low of 1.10 to a high of 1.89. The Banks industry median Return-on-Tangible-Asset is 1.01. 1st Source's value of 2.09% is 108% above this industry median. Based on the distribution chart, 1st Source ranks #208 out of 1528 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, 1st Source has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does 1st Source's Return-on-Tangible-Asset compare to HAPN and FCF?
According to the Banks industry distribution chart, 1st Source ranks #208 out of 1528 companies for Return-on-Tangible-Asset. This places 1st Source in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.01. 1st Source's value of 2.09% is 108% above this benchmark. Historically, 1st Source's own Return-on-Tangible-Asset has ranged from 1.10 to 1.89 over the past decade. While the company's 10-year median is 1.46 vs. the industry median of 1.01, 1st Source has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Banks company?
The median Return-on-Tangible-Asset among Banks companies is 1.01, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 1st Source's current Return-on-Tangible-Asset of 2.09% is 108% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on 1st Source and its competitors. For the Banks industry, the median Return-on-Tangible-Asset is 1.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 1st Source's current Return-on-Tangible-Asset is 2.09%, which is 43% above median its own 10-year median of 1.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 1st Source stock overvalued right now?
Based on GuruFocus' analysis, 1st Source (SRCE) is currently considered Modestly Overvalued. The stock's GF Value™ is $69.87, compared to a current price of $89.69 — trading 28.4% above its estimated fair value. The current Return-on-Tangible-Asset is 2.09%, which is 43% above median its 10-year median of 1.46 and 108% above the Banks industry median of 1.01. 1st Source's overall GF Score™ is 66/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For 1st Source (SRCE), the current Return-on-Tangible-Asset is 2.09% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is 1st Source (SRCE) Overvalued in 2026?
Based on GuruFocus' analysis, 1st Source stock appears to be overvalued.
The current stock price of $89.69 is trading 28.4% above its estimated GF Value™ of $69.87.
GuruFocus considers 1st Source to be Modestly Overvalued.
Key valuation signals for SRCE:
Return-on-Tangible-Asset: 2.09% (43% above median its 10-year median of 1.46)
GF Value™: $69.87 vs. price of $89.69 (28.4% above fair value)
Industry Position: 108% above the Banks median (#208 of 1528)
No single metric tells the full story. See the SRCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
1st Source Corp provides specialized financing services for construction equipment, aircraft, and vehicle types through its Specialty Finance activities. The company offers commercial, small business, agricultural, and real estate loans, along with commercial leasing, treasury management, and payment services, including Fedwires, ACH, and merchant services. It also provides Renewable Energy Financing for commercial solar projects, a full range of consumer banking products, Trust and Wealth Advisory Services, and insurance products. The company operates in the commercial banking segment, which provides commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients across its markets.
66GF Score
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