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1st SourceSRCE -0.12%66 ROE % is 14.69% as of Jun. 2026, which is 21% above its 10-year median of 12.10. 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 1,524 Banks companies, 1st Source ranks better than 72.18% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. 1st Source's annualized net income for the quarter that ended in Jun. 2026 was $190.2 Mil. 1st Source's average Total Stockholders Equity over the quarter that ended in Jun. 2026 was $1,294.2 Mil. Therefore, 1st Source's annualized ROE % for the quarter that ended in Jun. 2026 was 14.69%.
The historical rank and industry rank for 1st Source's ROE % or its related term are showing as below:
SRCE'
s ROE % Range Over the Past 10 Years
Min: 8.78 Med: 12.1 Max: 13.57
Current: 13.57
During the past 13 years, 1st Source's highest ROE % was 13.57%. The lowest was 8.78%. And the median was 12.10%.
SRCE's ROE % is ranked better than 72.18% of 1524
companies
in the Banks industry
Industry Median: 10.34
vs SRCE: 13.57
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
1st Source ROE % Related Terms
1st Source ROE % Historical Data
* Premium members only.
The historical data trend for 1st Source's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Banks Industry
For the Banks industry and Financial Services sector, 1st Source's ROE % distribution charts can be found below:
* The bar in red indicates where 1st Source's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
1st Source (SRCE) has a ROE % of 14.69% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on 1st Source and its competitors. This is 21% above median its historical median of 12.10. Over the past decade, 1st Source's ROE % has ranged from 8.78 to 13.57. According to the industry distribution chart, 1st Source ranks #424 out of 1524 companies in the Banks industry, placing it in the top 27.8%.
Is 1st Source's ROE % too high?
1st Source's current ROE % of 14.69% is 21% above median its 10-year median of 12.10. Over the past 10 years, this metric has ranged from a low of 8.78 to a high of 13.57. The Banks industry median ROE % is 10.34. 1st Source's value of 14.69% is 42.1% above this industry median. Based on the distribution chart, 1st Source ranks #424 out of 1524 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 ROE % compare to HAPN and FCF?
According to the Banks industry distribution chart, 1st Source ranks #424 out of 1524 companies for ROE %. This puts 1st Source in the upper half of its industry. The industry median ROE % is 10.34. 1st Source's value of 14.69% is 42.1% above this benchmark. Historically, 1st Source's own ROE % has ranged from 8.78 to 13.57 over the past decade. While the company's 10-year median is 12.10 vs. the industry median of 10.34, 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.34, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 1st Source's current ROE % of 14.69% is 42.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on 1st Source and its competitors. For the Banks industry, the median ROE % is 10.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 1st Source's current ROE % is 14.69%, which is 21% above median its own 10-year median of 12.10. 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 ROE % is 14.69%, which is 21% above median its 10-year median of 12.10 and 42.1% above the Banks industry median of 10.34. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For 1st Source (SRCE), the current ROE % is 14.69% 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:
ROE %: 14.69% (21% above median its 10-year median of 12.10)
GF Value™: $69.87 vs. price of $89.69 (28.4% above fair value)
Industry Position: 42.1% above the Banks median (#424 of 1524)
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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