1st Source Corporation announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. The company announced third quarter net income available to common shareholders of $5.03 million compared to $4.47 million in the third quarter 2008. Diluted net income per common share for the third quarter of 2009 was $0.21 compared to $0.18 a year earlier. Diluted net income per common share was reduced by $0.07 for the third quarter of 2009, due to the preferred stock dividends and the accretion of the discount on the preferred stock issued to the U.S. Government under the TARP Program. The company reported net interest income was $32.05 million and net interest income-FTE was $33.03 million compared to net interest income of $33.4 million and net interest income-FTE of $34.26 million for the same period last year. The company reported book value per common share was $19.46 and tangible book value per common share of $15.70 compared book value per common share was $18.29 and tangible book value per common share of $14.47 for the same period last year. The company reported return on average assets of 0.60% and return on average common shareholders equity of 4.25% compared to 0.40% and 4.00%, respectively for the same period last year. The company reported income before income taxes of $9.26 million compared to $3.89 million for the same period last year. For the first three quarters of the year, net income available to share holders was $14.56 million compared to $21.07 million a year earlier. Diluted net income per common share for the first three quarters was $0.60 compared to $0.86 in 2008. Diluted net income per common share was reduced by$0.20 for the nine months ending September 30, 2009, due to the preferred stock dividends and the accretion of the discount on the preferred stock issued to the U.S. Government under the TARP Program. The company reported net interest income was $94.68 million and net interest income-FTE was $97.5 million compared to net interest income of $98.82 million and net interest income-FTE of $101.51 million for the same period last year. The company reported book value per common share was $19.46 and tangible book value per common share of $15.7 compared book value per common share was $18.29 and tangible book value per common share of $14.47 for the same period last year. The company reported return on average assets of 0.57% and return on average common shareholders equity of 4.16% compared to 0.64% and 6.35%, respectively for the same period last year. The company reported income before income taxes of $22.89 million compared to $28.38 million for the same period last year. At the October meeting, the Board of Directors approved a cash dividend of $0.16 per common share, equal to the dividend a year earlier. The cash dividend will be payable on November 16, 2009, to shareholders of record on November 6, 2009.

On July 30, 2009, the Board of Directors of 1st Source Corporation, amended the By-Laws of the company to add a new Section 4.14 to Article IV to elect not to be governed by new Indiana Code §23-1-33-6(c) of the Indiana Business Corporation Law. The new IBCL provision, which became effective July 1, 2009, imposes mandatory staggered terms for the members of the board of directors of all public companies incorporated in Indiana unless, on or before July 31, 2009, the company adopts a bylaw expressly electing not to be governed by the provision.

1st Source Corporation reported earnings results for the second quarter and six months ended June 30, 2009. The company reported net income of $6.28 million for the second quarter of 2009, compared to $7.25 million reported in the second quarter of 2008. Diluted net income per common share for the second quarter of 2009 amounted to $0.19 compared with $0.30 reported for the second quarter of 2008. Noninterest income for the second quarter of 2009 was $22.71 million, up 11.48% from the same period in 2008. For the quarter, the company reported book value per common share of $19.21 and return on average assets of 0.56% and return on average common shareholders equity of $3.93 compared to book value per common share of $18.23 and return on average assets of 0.66% and return on average common shareholders equity of $6.54 for the same period a year ago. For the first six months of 2009, net income for 1st Source Corporation was $12.53 million, compared to $16.60 million reported for the same period in 2008. Diluted net income per common share for the first two quarters of 2009 was $0.39 compared to $0.68 reported for the same period a year ago. Diluted net income per common share was reduced by $0.07 for the second quarter of 2009 and $0.13 for the six months ending June 30, 2009 due to the preferred stock dividends and the accretion of the discount on the preferred stock issued to the U.S. Government under the TARP Program. For the first six months, noninterest income was $43.25 million, up 4.49% from 2008. Noninterest income increased in mortgage banking, equipment rental and investment securities and other investment (losses) gains for the second quarter and year-to-date 2009 as compared to the same periods in 2008. For the six months, the company reported book value per common share of $19.21 and return on average assets of 0.56% and return on average common shareholders equity of $4.12 compared to book value per common share of $18.23 and return on average assets of 0.76% and return on average common shareholders equity of $7.54 for the same period a year ago.