1st Source to Repurchase Preferred Stock from U.S. Treasury

1st Source Corporation SRCE, parent company of 1st Source Bank, announced today that it has received approval to redeem all of the 111,000 shares of Series A Preferred Stock issued to the Treasury in January 2009 under the Capital Purchase Program of the Emergency Economic Stabilization Act of 2008. 1st Source will repay $111.68 million including accrued and unpaid dividends to redeem the shares and expects to do so on December 29, 2010. As part of the CPP Program, 1st Source also issued a warrant to the United States Treasury to purchase up to $16.65 million of 1st Source common stock, representing approximately 3.3 percent of the common shares outstanding at the time. The Corporation has fifteen days after repayment to take action to repurchase the warrant if it chooses to do so.