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1st Source Corporation, an Indiana corporation incorporated in 1971, is a bank holding company headquartered in South Bend, Indiana that provides, through its subsidiaries (collectively referred to as “1st Source”, the “Company”, “we”, and “our”), a broad array of financial products and services.
−Removed: 1st Source Bank (“Bank”), its banking subsidiary, offers commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients through most of our 77 banking center locations in 18 counties in Indiana and Michigan and Sarasota County in Florida.
+Added: 1st Source Bank (“Bank”), its wholly-owned banking subsidiary, offers commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients (through 1st Source Insurance, Inc.) from most of our 78 banking center locations in 19 counties in Indiana and Michigan and Sarasota County in Florida.
1st Source Bank’s Specialty Finance Group, with 15 locations nationwide, offers specialized financing services for construction equipment, new and pre-owned private and cargo aircraft, and various vehicle types (cars, trucks, vans) for fleet purposes.
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Project sizes generally range from five megawatts to 20 megawatts.
−Removed: Consumer Services — 1st Source Bank provides a full range of consumer banking products and services through our banking centers, client service center, and on-line.
+Added: Consumer Services — 1st Source Bank provides a full range of consumer banking products and services through our banking centers, virtual Branch, client service center, and on-line.
Traditional banking services include checking and savings accounts, certificates of deposits, Health Savings Accounts and Individual Retirement Accounts as well as loans, credit cards, mortgages and home equity lines of credit.
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1st Source Bank also provides selective international aircraft financing, primarily in Mexico and Brazil.
−Removed: Aircraft finance relationships generally range from $500,000 to $30 million with fixed or variable interest rates and terms of one to ten years.
+Added: Aircraft finance relationships generally range from $500,000 to $30 million with fixed or variable interest rates and terms of one to eleven years.
We offer auto and light truck fleet financing for new and pre-owned vehicles to automobile and light truck rental companies, commercial leasing companies, and a limited number of single unit financing for users of specialty vehicles (step vans, vocational work trucks, motor coaches, shuttle buses and funeral cars).
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1st Source Insurance, Inc.
−Removed: has ten offices.
+Added: has thirteen offices.
OTHER CONSOLIDATED SUBSIDIARIES
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owns and manages certain available-for-sale investment securities.
−Removed: 1st Source Bank is the managing general partner in eight subsidiaries that have interests in tax-advantaged investments with third parties.
+Added: 1st Source Bank is the managing general partner in four subsidiaries that have interests in tax-advantaged investments with third parties.
We have other subsidiaries that are not significant to the consolidated entity.
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We compete with other banks, some of which are affiliated with large bank holding companies headquartered outside of our principal market.
−Removed: The Bank also competes with other financial service companies, such as credit unions.
−Removed: securities firms, insurance companies, finance or mortgage companies, real estate investment trusts, and some governmental agencies.
+Added: The Bank also competes with other financial service companies, such as credit unions, securities firms, insurance companies, finance or mortgage companies, real estate investment trusts, and some governmental agencies.
We generally compete on the basis of client service and responsiveness to client needs, available loan and deposit products, the rates of interest charged on loans and leases, the rates of interest paid for funds, other credit and service charges, the quality of services rendered, the convenience of banking facilities, and in the case of loans and leases to large commercial borrowers, relative lending limits.
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We are committed to a multi-dimensional approach to talent and culture.
−Removed: Diversity, Equity, and Inclusion — We cultivate diversity in all forms as part of building a strong culture in which inclusion and belonging are paramount.
−Removed: Our culture is what unifies our colleagues across our diverse business model, ensures we are best positioned to serve our diverse clients and propels our continuous evolution.
−Removed: • For the third consecutive year, all new employees completed a series of facilitated training sessions on unconscious bias within six months of hire.
−Removed: • Diversity in leadership starts with our Board of Directors and we are proud to report that five of our twelve Board Members (42%) are women or minority.
−Removed: • For the eighth consecutive year, more than 21% of our new hires were diverse colleagues.
−Removed: • In 2024, the Company was recognized as Forbes America’s Best Banks and for the third consecutive year as Forbes Best-In-State Bank.
Training and Talent Development — We believe a critical driver of our future growth is the ability to grow leaders.
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• 1st Source University enables colleagues to build skills and knowledge in multiple facets of our business.
−Removed: • In 2024, 1st Source colleagues completed over 43,500 training modules consisting of over 985 different courses covering topics such as regulations, leadership development, relationship building, cybersecurity, communication, and unconscious bias.
+Added: • In 2025, 1st Source colleagues completed over 37,900 training modules consisting of over 950 different courses and materials covering topics such as regulations, leadership development, relationship building, cybersecurity, communication, and unconscious bias.
• The 1st Source L.E.A.D.
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In 2025, we reimbursed over $114,000 to colleagues for tuition at 13 different Colleges and Universities with an average of approximately $4,230 per colleague who used the benefit.
−Removed: • To encourage our colleagues to build careers delivering the highest levels of outstanding client service at 1st Source Bank, we developed mastery career paths for critical roles including personal and commercial banking, management and pre-management, and customer service.
+Added: • To encourage our colleagues to build careers delivering the highest levels of outstanding client service at 1st Source Bank, we have mastery career paths for critical roles including personal and commercial banking, management and pre-management, and the customer service center.
In 2025, 67 career paths were tracked in our Learning Management System.
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• In 2025, 1st Source contributed over $670,000 to over 440 deserving and successful community service organizations.
+Added: • In 2025, 1st Source contributed $1,000,000 to 1st Source Bank Foundation.
+Added: 1st Source Bank Foundation works in collaboration with 1st Source Bank to enhance and strengthen the social, economic, and cultural fabric of our communities through a commitment of providing financial resources.
+Added: 1st Source Bank Foundation provides support to organizations working in the following areas:
+Added: Social welfare and human services, education, arts and culture and economic development.
REGULATION AND SUPERVISION
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The Bank, as an Indiana state bank and member of the Federal Reserve System, is subject to prudential supervision by the Indiana Department of Financial Institutions (DFI) and the Federal Reserve Bank of Chicago (FRB Chicago).
−Removed: 1st Source Bank is regularly examined by and subject to regulations promulgated by the DFI and the Federal Reserve.
+Added: We are regularly examined by and subject to regulations promulgated by the DFI and the Federal Reserve.
Because the Federal Deposit Insurance Corporation (FDIC) provides deposit insurance to the Bank, we are also subject to supervision and regulation by the FDIC (even though the FDIC is not our primary Federal regulator).
The Bank is also subject to regulations promulgated by the Consumer Financial Protection Bureau (CFPB), but the DFI and the FRB Chicago, rather than the CFPB, currently examine the Bank for compliance with such regulations, and will continue to do so until the Bank’s regulatory assets exceed $10 billion for four consecutive quarter-ends.
−Removed: We expect the Trump administration will seek to implement a regulatory reform agenda that is significantly different from that of the Biden administration, impacting the rulemaking, supervision, examination and enforcement priorities of the federal banking agencies.
+Added: banking regulation materially changed in 2025 with the beginning of the second Trump administration, characterized by a decisive shift in policy from the Biden administration in numerous areas, including bank supervision, bank merger review standards, regulatory thresholds applicable to independent audit and reporting requirements, digital assets regulation, and de novo bank chartering.
+Added: In this regard, in 2025 the FDIC and Office of the Comptroller of the Currency (OCC) emphasized that bank examinations will be refocused on material financial risk rather than risk management, reputational risk, and governance issues.
+Added: In addition, the Federal Reserve revised the large financial institution rating framework so that institutions with limited supervisory deficiencies could still be considered “well managed.” With respect to bank merger regulation, in 2025 the FDIC and OCC rescinded their respective 2024 bank merger policies and reinstated their pre-2024 merger review policies.
+Added: As a result, the FDIC has returned to focusing on traditional objective statutory factors under the Bank Merger Act rather than subjective principles-based factors, and the OCC has reinstated expedited review procedures and a streamlined merger application process for non-controversial transactions.
+Added: Moreover, in November 2025 the FDIC adjusted several asset-based regulatory thresholds governing annual independent audit and reporting requirements for insured depository institutions, which will result in hundreds of smaller institutions no longer being subject to these requirements.
+Added: Under the FDIC’s final rule, the asset threshold for requiring an annual independent audit of the institution has been raised from $500 million in total assets to $1 billion, the threshold for requiring management reports on internal controls has increased from $1 billion to $5 billion, and the threshold for audit committee independence requirements was increased from $3 billion to $5 billion in total assets.
+Added: With regard to digital asset regulation, in 2025 the federal prudential banking regulators reversed most of the Biden administration’s guidance that discouraged banks from engaging in cryptocurrency related activities.
+Added: The OCC also issued guidance confirming that national banks may hold digital assets as principal to facilitate network operations and engage in riskless principal crypto-asset transactions.
+Added: Finally, in 2025 the federal banking agencies indicated they would be willing to approve several types of de novo charter applications for new institutions, particularly for fintech or technology-focused banks.
+Added: These de novo applications include those for limited purpose national trust banks and industrial loan companies, many involving non-traditional fintech and digital-asset firms.
+Added: In sum, 2025 saw a decisive change in the focus of federal bank regulatory activity, which is expected to continue in 2026.
Bank Holding Company Act — Under the BHCA our activities are limited to (i) business so closely related to banking, managing, or controlling banks as to be a proper incident thereto and (ii) non-bank activities, determined by law or regulation, to be closely related to the business of banking or of managing or controlling banks.
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The federal banking agencies issued a final rule in 2023 designed to strengthen and modernize the regulations implementing the CRA.
−Removed: The changes are designed to encourage banks to expand access to credit, investment and banking services in low- and moderate-income communities, adapt to industry changes including mobile and internet banking, provide greater clarity and consistency in the application of CRA regulations and tailor CRA evaluations and data collection to bank size and type.
+Added: The changes were designed to encourage banks to expand access to credit, investment and banking services in low- and moderate-income communities, adapt to industry changes including mobile and internet banking, provide greater clarity and consistency in the application of CRA regulations and tailor CRA evaluations and data collection to bank size and type.
+Added: In July 2025, the Federal Reserve, OCC, and FDIC issued a joint proposal to repeal the 2023 rule and reinstate the CRA regulatory framework that existed prior to the 2023 final rule, which means banks will continue operating under the prior rules while awaiting the outcome of the formal rescission process, which involves public review and comment.
Laws and Regulations Governing Extensions of Credit — The Bank is subject to restrictions imposed by the Federal Reserve Act on extensions of credit to 1st Source or our subsidiaries, and on investments in our securities and the use of our securities as collateral for loans to any borrowers.
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Future monetary policies and the effect of such policies on our future business and earnings, and the effect on the future business and earnings of the Bank cannot be predicted.
−Removed: In March 2023, the Federal Reserve created a Bank Term Funding Program (BTFP) to provide funding to eligible depository institutions in addition to the funding provided through its “discount window.” The Federal Reserve ceased extending advances under the BTFP on March 11, 2024.
−Removed: Under the BTFP, the Federal Reserve offered loans up to one year in length and may be prepaid without penalty.
−Removed: The amount that could be borrowed under the BTFP was based upon the par value of the securities pledged as collateral to the Federal Reserve.
−Removed: At December 31, 2024, the Bank had $100 million of BTFP borrowings.
−Removed: Sarbanes-Oxley Act of 2002 (SOA) — The SOA includes provisions intended to enhance corporate responsibility and protect investors by improving the accuracy and reliability of corporate disclosures pursuant to the securities laws, and which increase penalties for accounting and auditing improprieties at public traded companies.
−Removed: The SOA generally applies to all companies, including 1st Source, that file or are required to file periodic reports with the SEC under the Exchange Act.
−Removed: SOA also addresses functions and responsibilities of audit committees of public companies.
+Added: Sarbanes-Oxley Act of 2002 (SOX) — SOX includes provisions intended to enhance corporate responsibility and protect investors by improving the accuracy and reliability of corporate disclosures pursuant to the securities laws, and which increase penalties for accounting and auditing improprieties at public traded companies.
+Added: SOX generally applies to all companies, including 1st Source, that file or are required to file periodic reports with the SEC under the Exchange Act.
+Added: SOX also addresses functions and responsibilities of audit committees of public companies.
The statute, by mandating certain stock exchange listing rules, makes the audit committee directly responsible for the appointment, compensation, and oversight of the work of the company’s outside auditor, and requires the auditor to report directly to the audit committee.
−Removed: The SOA requires that audit committees be empowered to engage independent counsel and other advisors, and requires a public company to provide funding to pay the company’s auditors and any advisors the audit committee retains.
+Added: SOX requires that audit committees be empowered to engage independent counsel and other advisors, and requires a public company to provide funding to pay the company’s auditors and any advisors the audit committee retains.
Consumer Financial Protection Laws — The Bank is subject to numerous federal and state consumer financial protection laws and regulations that extensively govern its transactions with consumers.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.