Form 4: 1ST SOURCE Executive Chairman Acquires 10,000 Shares

Christopher J. Murphy III, Executive Chairman of 1ST SOURCE CORP, reported the acquisition of 10,000 shares of common stock through a restricted award plan.

Summary

• Christopher J. Murphy III, Executive Chairman, Director, and 10% Owner of 1ST SOURCE CORP (SRCE), acquired 10,000 shares of common stock.
• The acquisition occurred on September 23, 2025, as part of the 1982 Restricted Stock Award Plan, pursuant to an employment agreement dated the same day.
• These shares were awarded at a price of $0 and are subject to vesting and continued employment requirements.
• Following this transaction, Mr. Murphy directly beneficially owns 495,885 shares.
• Indirect holdings include 66,023 shares in a 401(k) plan, 125,893 shares by a corporation, 214,770 shares by a Ltd. Partnership, and 584,600 shares by an LLC.
• The filing also corrected previously omitted 401(k) share acquisitions: 1,621 shares between January 1, 2025, and December 31, 2025, and 1,672 shares between January 1, 2024, and December 31, 2024.
• Mr. Murphy disclaims beneficial ownership for shares held by his spouse (2,527,512 shares), and for shares held by ERCO III Partnership (282,119 shares) and the LLC (584,600 shares) exceeding his pecuniary interest.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as the Executive Chairman's increased equity stake, even through a compensation award, aligns his interests with long-term shareholder value. The correction of prior 401(k) omissions is a minor administrative detail.

Positives

• Executive Chairman Christopher J. Murphy III acquired 10,000 shares of common stock, indicating continued alignment of management interests with shareholders.
• The acquisition is part of a restricted stock award plan, linking executive compensation to long-term company performance and retention.

Negatives

• The shares were acquired at a $0 price, indicating they are compensation rather than an open market purchase, which might be viewed differently by some investors.
• The filing corrected previously omitted 401(k) share acquisitions from 2024 and 2025, suggesting a minor administrative oversight in prior filings.

Risks

• The restricted stock awards are subject to vesting and continued employment requirements, meaning the full benefit is contingent on Mr. Murphy remaining with the company.

Future Outlook

The restricted stock award is subject to future vesting and continued employment, indicating a long-term incentive structure for the Executive Chairman.

Management Comments

• Mr. Murphy disclaims beneficial ownership of these securities [held by spouse], and this report shall not be deemed an admission that Mr. Murphy is the beneficial owner of the securities for purposes of Section 16 or for any other purpose.
• Mr. Murphy disclaims beneficial ownership of those shares held by the partnership exceeding his pecuniary interest, and this report shall not be deemed an admission that Mr. Murphy is the beneficial owner of such excess shares for purposes of Section 16 or for any other purpose.
• Mr. Murphy's spouse is a voting member, and Mr. Murphy is a non-voting member, of the LLC. Mr. Murphy disclaims beneficial ownership of those shares held by the LLC exceeding his pecuniary interest, and this report shall not be deemed an admission that Mr. Murphy is the beneficial owner of such excess shares for purposes of Section 16 or for any other purpose.

Industry Context

StockSavvy.ai notes that restricted stock awards are a common form of executive compensation in the financial services industry, aligning management incentives with long-term shareholder value creation. This type of award is often preferred over stock options for its retention power and direct link to company performance.

Comparison to Industry Standards

• Restricted stock awards are a standard component of executive compensation packages across the financial sector, comparable to practices at regional banks like Old National Bancorp (ONB) or Wintrust Financial Corporation (WTFC), where executive incentives often include equity components tied to performance and tenure.
• The $0 acquisition price is typical for such awards, reflecting their nature as compensation rather than a market purchase.

Stakeholder Impact

• Shareholders: The acquisition of shares by the Executive Chairman, even as a restricted award, generally signals management's commitment and alignment with shareholder interests, potentially boosting investor confidence.
• Employees: The restricted stock award plan serves as an incentive for executive retention and performance, which can positively impact overall company stability and strategic direction.

Next Steps

• The awarded shares are subject to vesting and continued employment requirements as provided in the 1982 Restricted Stock Award Plan and Employment Agreement.

Key Dates

Recommendation

The filing details a routine executive compensation award rather than an open market purchase, which typically does not warrant a change in investment recommendation. While it shows continued management alignment, it doesn't present new fundamental information to alter the investment thesis for 1ST SOURCE CORP. Investors should hold their positions and monitor broader company performance and market conditions.

Keywords

1ST SOURCE CORP, SRCE, Form 4, Insider Trading, Beneficial Ownership, Restricted Stock Award, Executive Compensation, Christopher J. Murphy III, Director, 10% Owner, Executive Chairman, Stock Acquisition