Segment Reporting |
9 Months Ended |
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Sep. 30, 2026 | |
| Segment Reporting [Abstract] | |
| Segment Reporting | Segment Information The Company has one reportable operating segment, commercial banking. While our chief operating decision maker (“CODM”) monitors revenue streams of various products and services, operating decisions and resource allocations are made, and financial performance is assessed, on a consolidated basis. The commercial banking segment provides a broad array of financial products and services including commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients through most of its 78 banking center locations in 19 counties in Indiana and Michigan and Sarasota County in Florida. The accounting policies of the commercial banking segment are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in 1st Source’s Annual Report on Form 10-K for the year ended December 31, 2025. The CODM assesses performance for the commercial banking segment and decides how to allocate resources based on net income available to common shareholders which is also reported on the Consolidated Statements of Income as net income available to common shareholders. The measure of segment assets is reported on the Consolidated Statements of Financial Condition as total assets. The CODM uses net income available to common shareholders to evaluate income generated from segment assets in deciding whether to reinvest profits into the commercial banking segment or to pay dividends or fund acquisitions. Net income available to common shareholders is also used by the CODM to monitor budget versus actual results. Net income available to common shareholders as well as other common company-wide financial performance and credit quality metrics such as earnings per common share and net interest margin, among others, are used for competitive analysis through benchmarking against the Company’s competitors, assessing segment performance and establishing management compensation. See the Consolidated Statements of Financial Condition, the Consolidated Statements of Income, the Consolidated Statements of Comprehensive Income (Loss), the Consolidated Statements of Shareholders’ Equity, and the Consolidated Statements of Cash Flows. Previously, the Company’s CODM was identified as the Strategic Deployment Committee (“SDC”) which includes the President and Chief Executive Officer (“CEO”), the President of 1st Source Bank, the Chief Financial Officer, and several Group/Division Heads that report directly to the CEO or the President of 1st Source Bank. During the third quarter of 2026, the SDC adopted a charter which more clearly defined the respective responsibilities of the CEO and the SDC. As a result, management reassessed its identification of the CODM under ASC 280. Based on that reassessment, management concluded that the CEO, rather than the SDC, is the individual going forward who ultimately allocates resources and assesses performance for the Company because the SDC serves in an advisory capacity and does not possess decision-making authority. The reassessment of the Company’s CODM determination did not result in any changes to the Company’s operating segment determination, the measure of segment profit and loss, the measure of segment assets, or the information regularly reviewed for purposes of assessing performance and allocating resources, nor did it affect the Company’s conclusion that it operates as a single reportable segment.
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