Exhibit 99.1

For:			Immediate Release			Contact:			Brett Bauer
			July 24, 2025						574-235-2000

•Net income was $37.32 million for the quarter, down slightly from the previous quarter and up $0.53 million or 1.43% from the second quarter of 2024. Diluted net income per common share was $1.51, down $0.01 or 0.66% from the previous quarter and up $0.02 or 1.34% from the prior year’s second quarter of $1.49. These results include $1.00 million in pre-tax losses from the sale of approximately $26 million available-for-sale securities executed in the second quarter.

•Return on average assets decreased to 1.67% from 1.72% in the previous quarter and 1.69% in the second quarter of 2024. Return on average common shareholders’ equity decreased to 12.61% from 13.33% in the previous quarter and 14.41% in the second quarter of 2024.

•Cash dividend of $0.38 per common share for the quarter was approved, up 5.56% from the cash dividend declared a year ago.

•Average loans and leases grew $169.51 million in the second quarter, up 2.49% from the previous quarter and increased $362.25 million, up 5.48% from the second quarter of 2024.

•Tax-equivalent net interest income was $85.35 million, up $4.26 million or 5.25% from the previous quarter and up $11.15 million, or 15.03% from the second quarter a year ago. Tax-equivalent net interest margin was 4.01%, up 11 basis points from the previous quarter and up 42 basis points from the second quarter a year ago.

•Provision for credit losses of $7.69 million was recorded during the quarter compared to $3.27 million in the previous quarter and a recovery of provision for credit losses of $0.31 million during the previous year’s second quarter. The allowance for loan and lease losses as a percentage of total loans and leases remained consistent with historical levels, rising to 2.30% at June 30, 2025, up from 2.29% at March 31, 2025, and 2.26% at June 30, 2024.

South Bend, IN - 1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported quarterly net income of $37.32 million for the second quarter of 2025, down 0.54% compared to $37.52 million in the previous quarter and up 1.43% from the $36.79 million reported in the second quarter a year ago. Year-to-date 2025 net income was $74.84 million, up 12.97% compared to $66.25 million during the first six months of 2024. Diluted net income per common share for the second quarter of 2025 was $1.51, down 0.66% compared to $1.52 in the previous quarter and up 1.34% versus $1.49 in the second quarter of 2024. Diluted net income per common share for the first half of 2025 was $3.02 compared to $2.68 a year earlier. It was another good quarter with solid growth in net interest income offset by higher provision for credit losses and realized losses from strategic repositioning trades in the investment portfolio.

At its July 2025 meeting, the Board of Directors approved a cash dividend of $0.38 per common share, up 5.56% from the cash dividend declared a year ago. The cash dividend is payable to shareholders of record on August 5, 2025, and will be paid on August 15, 2025.

Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, “We are pleased that the strong start in 2025 continued through the second quarter. In spite of the noise in the economy and the uncertainty in the market, we are proud to have achieved a sixth consecutive quarter of margin expansion resulting from higher rates on investment securities, increased average loan and lease balances, and lower deposit costs.

“While still very good, credit was challenged during the quarter with elevated net charge-offs, the majority of which were from one Auto and Light Truck account. Nonperforming assets to loans and leases at June 30, 2025 was 1.06% up from 0.63% at March 31, 2025 and the allowance for loans and lease losses as a percentage of total loans and leases remained strong at 2.30% up from 2.29% the previous quarter.

“Our balance sheet remained healthy during the quarter and is well positioned to handle the continued economic uncertainty, which is impacting our customers and their businesses. Our liquidity position is solid and our historically conservative capital position has been maintained.

“During the second quarter of 2025, we were pleased to learn that 1st Source was named to the annual Bank Honor Roll by Keefe, Bruyette & Woods, Inc. for the seventh consecutive year. We were among just 16 U.S. Banks on the list, placing our long-term performance among the top 5% of eligible banks in the United States. To be eligible, Banks must have more than $500 million in total assets and meet at least one of two criteria: consistent earnings growth over each of the past 10 years, and/or the top 5% of eligible banks based on a 10-year earnings per share compounded annual growth rate. To be named to this list for the seventh year in a row is evidence that our mission to help our clients achieve security, build wealth, and realize their dreams directly correlates with strong financial performance for the long term.

“Additionally, we were honored with the Indiana Banker’s Association’s (IBA) Commitment to Community award in the category of banks with $3 billion and above in assets. We were excited to be chosen for this award that celebrates bank community service efforts in Indiana. In 2024, 1st Source colleagues taught more than 200 Financial Education classes attracting more than 2,200 estimated attendees in Indiana alone. Additionally, our colleagues logged more than 14,500 volunteer hours, which included holding more than 110 Board seats for a variety of organizations in our communities. This award speaks directly to our Core Value of Community Leadership and we couldn’t be more pleased to have accepted it in person at the IBA’s Mega Conference in May.

“And finally, our recently opened Carmel Indiana Banking Center celebrated its Grand Opening and Ribbon Cutting in May. This new banking center showcases the Bank’s side-by-side banking model. Side-by-side banking invites the client behind the “teller line,” enabling the Bank’s clients and bankers to have a more transparent and inclusive experience and relationship. We are thrilled to have expanded into Hamilton County, Indiana and are pleased to be able to serve new and existing clients in that market and are welcoming them to come and experience the high level of convenience and service from our banking team right in their hometown,” Mr. Murphy concluded.

Second quarter average loans and leases were $6.97 billion, which was up $169.51 million or 2.49% from the previous quarter, and increased $362.25 million, up 5.48% from the second quarter a year ago. Year-to-date average loans and leases increased $329.04 million to $6.88 billion, up 5.02% from the first six months of 2024. Growth during the quarter occurred primarily within the Commercial and Agricultural, Renewable Energy, and Construction Equipment portfolios.

Second quarter average deposits were $7.35 billion, which was up $15.54 million, or 0.21%, from the previous quarter, and up $165.41 million or 2.30% compared to the quarter ended June 30, 2024. Average deposits for the first six months of 2025 were $7.34 billion, an increase of $243.97 million, up 3.44% from the same period a year ago. Average deposit balance growth from the second quarter of 2024 was primarily in interest-bearing demand, savings and non-brokered time deposit balances offset by decreased brokered deposits and noninterest-bearing demand deposits.

Second quarter 2025 tax-equivalent net interest income increased $4.26 million to $85.35 million, up 5.25% from the previous quarter and increased $11.15 million, up 15.03% from the second quarter a year ago. For the first six months of 2025, tax equivalent net interest income increased $20.17 million to $166.43 million, up 13.79% from the first half of 2024.

Second quarter 2025 net interest margin was 4.00%, an increase of 11 basis points from the 3.89% in the previous quarter and an increase of 41 basis points from the same period in 2024. On a fully tax-equivalent basis, second quarter 2025 net interest margin was 4.01%, up 11 basis points compared to the 3.90% in the previous quarter, and an increase of 42 basis points from the same period in 2024. The increase from the prior quarter and second quarter of 2024 was primarily due to higher rates on investment securities, increased average loan and lease balances and lower deposit costs. Immaterial net interest charge-offs during the current quarter had no impact on the net interest margin while net interest recoveries contributed seven basis points in the previous quarter and four basis points in the prior year second quarter.

Net interest margin for the first six months of 2025 was 3.95%, an increase of 39 basis points compared 3.56% for the first six months of 2024. Net interest margin on a fully-tax equivalent basis for the first half of 2025 was 3.95% an increase of 38 basis points compared to 3.57% for the first half of the prior year. Net interest recoveries positively contributed four basis points to both the current and previous year-to-date net interest margin.

Second quarter 2025 noninterest income of $23.06 million was relatively flat compared to the previous quarter, and to the second quarter a year ago. For the first six months of 2025, noninterest income increased $0.78 million, up 1.73% from the first six months of 2024.

Total noninterest income was lower by 0.20% compared to the previous quarter. The slight decrease from the previous quarter was mainly due to realized losses of $1.00 million from repositioning of available-for-sale securities. The securities sold had a weighted average yield of 1.04% and were replaced with securities having a weighted average yield of 4.18%. Additional decreases in the quarter were from lower insurance contingent commissions received and reduced equipment rental income as demand for operating leases continued to decline. These decreases were almost entirely offset by higher trust and wealth advisory income primarily from seasonal tax preparation fees, a rise in debit card income, higher partnership investment gains from a small business capital investment, and an increase in bank owned life insurance policy claims recognized.

The increase in noninterest income compared to the first six months of 2024 was mainly the result of gains on the sale of renewable energy tax equity investments and gains from a small business capital investment, increased insurance commissions, higher brokerage and commission fees and increased interest rate swap fees. These increases were offset by reduced equipment rental income as demand for operating leases continued to decline, available-for-sale securities losses of $1.00 million and decreases in mortgage banking income from lower sales volumes.

Second quarter 2025 noninterest expense of $52.43 million decreased $0.65 million or 1.22% compared to the prior quarter and increased $2.57 million or 5.15% from the second quarter a year ago. For the first six months of 2025, noninterest expense increased $6.94 million, up 7.04% from the first six months of 2024.

The decrease in noninterest expense compared to the prior quarter, was the result of reduced group insurance claims, and lower leased equipment depreciation offset by higher salaries from normal merit increases and higher incentive compensation, increased furniture and equipment costs and higher data processing costs.

The increase in noninterest expense compared to the second quarter and first six months of 2024 was the result of higher salaries and wages from normal merit increases, increased incentive compensation and higher group insurance claims. Additionally, we saw increased data processing costs from technology projects, fewer gains on the sale of fixed assets and off-lease equipment, and increased furniture, equipment and occupancy expenses. These increases were offset by lower leased equipment depreciation and decreased blanket insurance premiums.

The allowance for loan and lease losses increased to $163.48 million as of June 30, 2025, or 2.30% of total loans and leases primarily as a result of a weakened forward economic outlook with increased uncertainty. This percentage compared to 2.29% at March 31, 2025, and 2.26% at June 30, 2024. Net charge-offs of $1.87 million were recorded for the second quarter of 2025, compared with net charge-offs of $0.18 million in the prior quarter and net recoveries of $1.99 million in the same quarter a year ago.

The provision for credit losses was $7.69 million for the second quarter of 2025, an increase of $4.43 million from the previous quarter and an increase of $8.00 million compared with the same period in 2024. The increase in the provision expense compared to the prior quarter was due to loan growth, increased net charge-offs and nonaccrual loans and leases, an increase in specific impairments, and higher special attention outstandings, offset by a decrease in the provision for unfunded commitments. The ratio of nonperforming assets to loans and leases was 1.06% as of June 30, 2025, compared to 0.63% on March 31, 2025, and 0.31% on June 30, 2024. The increase in nonperforming assets during the quarter was primarily from one Auto and Light Truck relationship

As of June 30, 2025, the common equity-to-assets ratio was 13.19%, compared to 12.96% at March 31, 2025, and 11.75% a year ago. The tangible common equity-to-tangible assets ratio was 12.38% at June 30, 2025, compared to 12.14% at March 31, 2025, and 10.91% a year earlier. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 14.60% at June 30, 2025, compared to 14.71% at March 31, 2025, and 13.74% a year ago.

Capital accretion over the last twelve months has been driven primarily by growth in retained earnings and a reduction in unrealized losses in our short-duration investment securities available-for-sale portfolio.

During the second quarter of 2025, 47,428 shares were repurchased for treasury reducing common shareholders’ equity by $2.84 million. Total year-to-date repurchased shares of 54,982 have reduced common shareholder’s equity by $3.30 million.

1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” and appears in the National Market System tables in many daily newspapers under the code name “1st Src.” Since 1863, 1st Source has been committed to the success of its clients, individuals, businesses and the communities it serves. For more information, visit www.1stsource.com.

1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy-duty trucks, and construction equipment. The Corporation includes 78 banking centers, 18 1st Source Bank Specialty Finance Group locations nationwide, nine Wealth Advisory Services locations, 10 1st Source Insurance offices, and three loan production offices.

Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “contemplate,” “seek,” “plan,” “possible,” “assume,” “hope,” “expect,” “intend,” “targeted,” “continue,” “remain,” “estimate,” “anticipate,” “project,” “will,” “should,” “indicate,” “would,” “may” and similar expressions indicate forward-looking statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, are subject to material risks and uncertainties. 1st Source cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.

1st Source may make other written or oral forward-looking statements from time to time. Readers are advised that various important factors could cause 1st Source’s actual results or circumstances for future periods to differ materially from those anticipated or projected in such forward-looking statements. Such factors, among others, include changes in laws, regulations or accounting principles generally accepted in the United States; 1st Source’s competitive position within its markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen downturns in the local, regional or national economies or in the industries in which 1st Source has credit concentrations; and other risks discussed in 1st Source’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.

The accounting and reporting policies of 1st Source conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures are used by management to evaluate and measure the Company’s performance. Although these non-GAAP financial measures are frequently used by investors to evaluate a financial institution, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These include taxable-equivalent net interest income (including its individual components), net interest margin (including its individual components), the efficiency ratio, tangible common equity-to-tangible assets ratio and tangible book value per common share. Management believes that these measures provide users of the Company’s financial information a more meaningful view of the performance of the interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures differently.

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses and lease depreciation), measures how much it costs to produce one dollar of revenue. Securities gains or losses and lease depreciation are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity-to-tangible assets ratio and tangible book value per common share as useful measurements of the Company’s equity.

See the table marked “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of certain non-GAAP financial measures used by the Company with their most closely related GAAP measures.

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(charts attached)

(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.

(2) Calculated as common shareholders’ equity divided by common shares outstanding at the end of the period.

(3) Calculated under banking regulatory guidelines.

The NASDAQ Stock Market National Market Symbol: “SRCE” (CUSIP #336901 10 3)

Please contact us at shareholder@1stsource.com