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1st SourceSRCE -0.12%66 Return-on-Tangible-Equity is 15.76% as of Jun. 2026, which is 18% above its 10-year median of 13.33. 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 1,522 Banks companies, 1st Source ranks better than 71.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. 1st Source's annualized net income for the quarter that ended in Jun. 2026 was $190.2 Mil. 1st Source's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $1,207.0 Mil. Therefore, 1st Source's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 15.76%.
The historical rank and industry rank for 1st Source's Return-on-Tangible-Equity or its related term are showing as below:
SRCE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.07 Med: 13.33 Max: 14.95
Current: 14.57
During the past 13 years, 1st Source's highest Return-on-Tangible-Equity was 14.95%. The lowest was 10.07%. And the median was 13.33%.
SRCE's Return-on-Tangible-Equity is ranked better than 71.29% of 1522
companies
in the Banks industry
Industry Median: 11.41
vs SRCE: 14.57
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
1st Source Return-on-Tangible-Equity Related Terms
1st Source Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for 1st Source's Return-on-Tangible-Equity 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-Equity Comparison
For the Banks - Regional subindustry, 1st Source's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Banks Industry
For the Banks industry and Financial Services sector, 1st Source's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where 1st Source's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.76% mean?
1st Source (SRCE) has a Return-on-Tangible-Equity of 15.76% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on 1st Source and its competitors. This is 18% above median its historical median of 13.33. Over the past decade, 1st Source's Return-on-Tangible-Equity has ranged from 10.07 to 14.95. According to the industry distribution chart, 1st Source ranks #437 out of 1522 companies in the Banks industry, placing it in the top 28.7%.
Is 1st Source's Return-on-Tangible-Equity too high?
1st Source's current Return-on-Tangible-Equity of 15.76% is 18% above median its 10-year median of 13.33. Over the past 10 years, this metric has ranged from a low of 10.07 to a high of 14.95. The Banks industry median Return-on-Tangible-Equity is 11.41. 1st Source's value of 15.76% is 38.1% above this industry median. Based on the distribution chart, 1st Source ranks #437 out of 1522 companies in the Banks industry, which is above the industry midpoint. 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-Equity compare to HAPN and FCF?
According to the Banks industry distribution chart, 1st Source ranks #437 out of 1522 companies for Return-on-Tangible-Equity. This puts 1st Source in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.41. 1st Source's value of 15.76% is 38.1% above this benchmark. Historically, 1st Source's own Return-on-Tangible-Equity has ranged from 10.07 to 14.95 over the past decade. While the company's 10-year median is 13.33 vs. the industry median of 11.41, 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-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.41, based on 1,522 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 1st Source's current Return-on-Tangible-Equity of 15.76% is 38.1% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on 1st Source and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 1st Source's current Return-on-Tangible-Equity is 15.76%, which is 18% above median its own 10-year median of 13.33. 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-Equity is 15.76%, which is 18% above median its 10-year median of 13.33 and 38.1% above the Banks industry median of 11.41. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For 1st Source (SRCE), the current Return-on-Tangible-Equity is 15.76% 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-Equity: 15.76% (18% above median its 10-year median of 13.33)
GF Value™: $69.87 vs. price of $89.69 (28.4% above fair value)
Industry Position: 38.1% above the Banks median (#437 of 1522)
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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