1ST SOURCE CORPSRCE

1ST SOURCE CORP Earnings Per Share Disclosure

10-KFiled Feb 17, 20262 min read
Earnings Per Share
Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.
Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive. No stock options were considered antidilutive as of December 31, 2025, 2024 and 2023.
The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share for the three years ending December 31.
(Dollars in thousands - except per share amounts)202520242023
Distributed earnings allocated to common stock$37,217 $34,265 $32,001 
Undistributed earnings allocated to common stock119,647 97,130 91,735 
Net earnings allocated to common stock156,864 131,395 123,736 
Net earnings allocated to participating securities1,413 1,228 1,191 
Net income allocated to common stock and participating securities$158,277 $132,623 $124,927 
Weighted average shares outstanding for basic earnings per common share24,487,374 24,496,148 24,615,546 
Dilutive effect of stock compensation— — — 
Weighted average shares outstanding for diluted earnings per common share24,487,374 24,496,148 24,615,546 
Basic earnings per common share$6.41 $5.36 $5.03 
Diluted earnings per common share$6.41 $5.36 $5.03 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 16, 2023
2021Feb 17, 2022
2020Feb 18, 2021
2019Feb 20, 2020
2018Feb 22, 2019
2017Feb 16, 2018
2016Feb 17, 2017
2015Feb 19, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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