Form 4: 1st Source Executive Chairman Gifts 5,000 Shares

Sentiment:

Insider Transaction Report 11 December 2025 3:37 PM

Christopher J. Murphy III, Executive Chairman of 1st Source Corp, reported gifting 5,000 shares of common stock, reducing his direct and indirect beneficial ownership.

Summary

Christopher J. Murphy III, Executive Chairman, Director, and 10% Owner of 1st Source Corp, reported a gift of 5,000 shares of common stock.
On December 11, 2025, he directly disposed of 2,500 shares as a gift.
On the same date, an additional 2,500 shares were disposed of indirectly as a gift, attributed to holdings by his spouse.
Following these transactions, Mr. Murphy directly beneficially owns 485,885 shares of common stock.
Indirect beneficial ownership includes 2,527,512 shares by spouse, 62,730 shares by 401(k), 125,893 shares by a corporation, 282,119 shares by ERCO III Partnership, 214,770 shares by a Ltd. Partnership, and 584,600 shares by an LLC.
Mr. Murphy disclaims beneficial ownership for certain shares held by his spouse, ERCO III Partnership, and the LLC, exceeding his pecuniary interest.
No shares were acquired under the 401(k) plan between January 1, 2024, and December 31, 2024.

Sentiment

Score: 5

Explanation: A neutral event. The gifting of shares by an insider is a personal financial decision and does not directly reflect on the company's operational or financial performance. The amount is relatively small compared to total holdings.

Positives

The gift transaction at a $0 price indicates a non-sale event, which does not put downward pressure on the stock price from an insider selling perspective.

Negatives

A reduction in insider ownership, even through a gift, can sometimes be perceived negatively as it decreases the insider's direct stake in the company.

Future Outlook

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 [ERCO III 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

This filing is a standard insider transaction report and does not provide information relevant to broader industry trends or competitors.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Delegation of Authority	Christopher J. Murphy III granted a Limited Power of Attorney to Andrea G. Short, Brian S. Duba, and Brett A. Bauer to prepare, execute, acknowledge, deliver, and file Forms 3, 4, and 5 on his behalf for Section 16 reporting obligations.	2025-09-22	Streamlines the process for insider reporting compliance for Mr. Murphy, ensuring timely and accurate filings.

Related Party Transactions

The filing details indirect beneficial ownership through a spouse, a corporation, partnerships (ERCO III Partnership, Ltd. Partnership), and an LLC, indicating ongoing financial relationships with related entities.
The gift transaction itself involves a disposition of shares, some of which are indirectly held through a spouse, which is a related party.

Stakeholder Impact

Shareholders: A minor reduction in insider ownership, but the shares were gifted, not sold, so no direct market impact from selling pressure. The disclaimers of beneficial ownership clarify the extent of the insider's control over certain indirect holdings.
Management: The filing demonstrates compliance with SEC reporting requirements for insider transactions. The Power of Attorney streamlines future compliance.

Key Dates

Date	Description
2024-01-01	Start of period for 401(k) share acquisition reporting.
2024-12-31	End of period for 401(k) share acquisition reporting; date of 401(k) plan statement.
2025-09-22	Effective date of the Limited Power of Attorney granted by Christopher J. Murphy III.
2025-12-11	Date of reported common stock gift transactions and filing signature date.
2030-11-12	Expiration date of Notary Public commission for Jill S. Holleman.

Recommendation

hold

The filing is a routine insider transaction report (Form 4) detailing a gift of shares by the Executive Chairman. It does not contain information that would fundamentally alter the investment thesis for 1st Source Corp. While a reduction in insider ownership is noted, it's a gift, not a sale, and the overall beneficial ownership remains substantial. The Power of Attorney is a procedural governance item. Therefore, a 'hold' recommendation is appropriate as there's no new material information to warrant a change in investment stance.

Keywords

1st Source Corp, SRCE, Christopher J. Murphy III, Form 4, Insider Transaction, Stock Gift, Beneficial Ownership, Executive Chairman, Director, 10% Owner

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