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1st SourceSRCE -0.12%66 ROA % is 2.07% as of Jun. 2026, which is 44% above its 10-year median of 1.44. 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 86.65% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. 1st Source's annualizedNet Income for the quarter that ended in Jun. 2026 was $190.2 Mil.
1st Source's average Total Assets over the quarter that ended in Jun. 2026 was $9,188.3 Mil. Therefore, 1st Source's annualized ROA % for the quarter that ended in Jun. 2026 was 2.07%.
The historical rank and industry rank for 1st Source's ROA % or its related term are showing as below:
SRCE'
s ROA % Range Over the Past 10 Years
Min: 1.08 Med: 1.44 Max: 1.88
Current: 1.88
During the past 13 years, 1st Source's highest ROA % was 1.88%. The lowest was 1.08%. And the median was 1.44%.
SRCE's ROA % is ranked better than 86.65% of 1528
companies
in the Banks industry
Industry Median: 1
vs SRCE: 1.88
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
1st Source ROA % Related Terms
1st Source ROA % Historical Data
* Premium members only.
The historical data trend for 1st Source's ROA % 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.
For the Banks - Regional subindustry, 1st Source's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Banks Industry
For the Banks industry and Financial Services sector, 1st Source's ROA % distribution charts can be found below:
* The bar in red indicates where 1st Source's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
1st Source (SRCE) has a ROA % of 2.07% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on 1st Source and its competitors. This is 44% above median its historical median of 1.44. Over the past decade, 1st Source's ROA % has ranged from 1.08 to 1.88. According to the industry distribution chart, 1st Source ranks #204 out of 1528 companies in the Banks industry, placing it in the top 13.4%.
Is 1st Source's ROA % too high?
1st Source's current ROA % of 2.07% is 44% above median its 10-year median of 1.44. Over the past 10 years, this metric has ranged from a low of 1.08 to a high of 1.88. The Banks industry median ROA % is 1.00. 1st Source's value of 2.07% is 107% above this industry median. Based on the distribution chart, 1st Source ranks #204 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 ROA % compare to HAPN and FCF?
According to the Banks industry distribution chart, 1st Source ranks #204 out of 1528 companies for ROA %. This places 1st Source in the top 13% of its industry — outperforming the majority of peers. The industry median ROA % is 1.00. 1st Source's value of 2.07% is 107% above this benchmark. Historically, 1st Source's own ROA % has ranged from 1.08 to 1.88 over the past decade. While the company's 10-year median is 1.44 vs. the industry median of 1.00, 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 ROA % for a Banks company?
The median ROA % among Banks companies is 1.00, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 1st Source's current ROA % of 2.07% is 107% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on 1st Source and its competitors. For the Banks industry, the median ROA % is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 1st Source's current ROA % is 2.07%, which is 44% above median its own 10-year median of 1.44. 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 ROA % is 2.07%, which is 44% above median its 10-year median of 1.44 and 107% above the Banks industry median of 1.00. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For 1st Source (SRCE), the current ROA % is 2.07% 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:
ROA %: 2.07% (44% above median its 10-year median of 1.44)
GF Value™: $69.87 vs. price of $89.69 (28.4% above fair value)
Industry Position: 107% above the Banks median (#204 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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