1st Source (SRCE) 8-K History of Increased Dividends Continues

Exhibit 99.1

For:	Immediate Release	Contact:	Andrea Short
	January 22, 2014		574-235-2000

Record Annual Earnings for 1st Source Corporation,

History of Increased Dividends Continues

South Bend, IN - 1st Source Corporation (Nasdaq:SRCE), parent company of 1st Source Bank, today announced record net income of $54.96 million for the year of 2013, a 10.73% increase over the $49.63 million in 2012. The annual net income is the highest in company history. Fourth quarter net income was $13.72 million, up 11.10% compared to $12.35 million in the fourth quarter of 2012.

Diluted net income per common share for the year was $2.23, another all-time record and an increase of 10.40% over the $2.02 per common share a year earlier. Diluted net income per common share for the fourth quarter was $0.56, up 12.00% compared to $0.50 per common share reported in the fourth quarter of the previous year.

At its January 2014 meeting, the 1st Source Board of Directors approved a cash dividend of $0.17 per common share. The cash dividend is payable on February 14, 2014 to shareholders of record on February 4, 2014. Dividends for 2013 increased 3.03% over the previous year.

Christopher J. Murphy, III, Chairman, commented, "I'm pleased to report a strong fourth quarter and a strong year for 1st Source Corporation. This was another record year in earnings, and continues our streak of 26 years of consecutive dividend growth. The yearly results were helped considerably by our credit performance. Our credit quality continues to be strong as net charge-offs for the year were remarkably low at about two tenths of one percent of average loans and leases."

"The fourth quarter was quite busy. We opened our second banking center in Lafayette, Indiana, a good market in a college town that fits us well. We also continued our 150th Anniversary celebrations with receptions for clients in each of our banking centers. Additionally, we produced a promotion designed to highlight the strength of our communities - the "150 years, $150,000 Cheers" campaign. 1st Source donated $150,000 in $1,000 increments to not-for-profit organizations, an important part of the fabric of the communities we serve. The charities were nominated by community members and selected in each region based on the quality and quantity of nominations. Two final not-for-profits received $15,000 each to help fill needs in our area. The community involvement was outstanding - we received over 13,500 nominations for over 1,500 different charities."

"At 1st Source, we continue to focus on the basics of delivering exceptional client service, practicing rigorous cost control, and maintaining pristine credit quality. We look forward optimistically and with enthusiasm to continue building a company that all of us and our long term shareholder partners can be proud of," concluded Mr. Murphy.

The net interest margin was 3.59% for the fourth quarter of 2013 versus 3.64% for the same period in 2012. The net interest margin was 3.67% for the year ending December 31, 2013 versus 3.69% for the year ending December 31, 2012. Tax-equivalent net interest income was $39.50 million for the fourth quarter of 2013, compared to $39.00

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million for 2012’s fourth quarter. For the twelve months of 2013, tax-equivalent net interest income was $158.64 million, compared to $153.84 million for the twelve months of 2012.

As of December 31, 2013, the common equity-to-assets ratio was 12.39%, compared to 12.28% at December 31, 2012 and the tangible common equity-to-tangible assets ratio was 10.76% at December 31, 2013 compared to 10.56% at December 31, 2012. Common shareholders’ equity was $585.38 million, up from $558.66 million a year ago. Total assets at the end of 2013 were $4.72 billion, up 3.78% from the same period last year. Total loans and leases at December 31, 2013 were $3.55 billion, up 6.66%, and total deposits at December 31, 2013 were $3.65 billion, up slightly from the comparable figures at the end of 2012.

Reserve for loan and lease losses as of December 31, 2013 was 2.35% of total loans and leases, compared to 2.50% as of December 31, 2012. Net charge-offs were $0.14 million for the fourth quarter 2013, compared to $0.98 million in the fourth quarter 2012. Net charge-offs for the full year were $0.58 million in 2013 compared to $4.09 million in 2012. The ratio of nonperforming assets to net loans and leases was 1.29% on December 31, 2013, compared to 1.25% on December 31, 2012.

Noninterest income for the fourth quarter of 2013 was $17.99 million, down 12.58% compared to $20.57 million for the fourth quarter of 2012. The fourth quarter decrease was primarily a result of reduced mortgage banking income, lower trust fees and lower services charges on deposit accounts. For the year, noninterest income was $77.21 million, down 4.90% from the $81.19 million in 2012. The year-to-date decrease was mainly a result of reduced equipment rental income, mortgage banking income and lower service charges on deposit accounts offset by higher trust fees, increased debit card income and higher mutual fund and dividend income.

Noninterest expense for the fourth quarter of 2013 was $38.59 million, down 2.84% compared to $39.72 million for the fourth quarter of 2012. The leading factors for the fourth quarter decrease were lower loan and lease collection and repossession expenses, reduced salary and employee benefits expense and a reduction in professional fees offset by higher business development and marketing expenses. For the year ending December 31, 2013, noninterest expense was $149.31 million, down 1.47% from $151.54 million one year ago. The annual difference was primarily a result of reduced salary and employee benefit expense, depreciation on leased equipment and loan and lease collection and repossession expenses. These decreases wereoffset by increased furniture and equipment expenses and other expenses.

1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” and appears in the National Market System tables in many daily newspapers under the code name “1st Src.” Since 1863, 1st Source has been committed to the success of the communities it serves. For more information, visit www.1stsource.com.

1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy duty trucks, construction and environmental equipment. The Corporation includes 77 community banking centers in 17 counties, 9 trust and wealth management locations, 8 1st Source Insurance offices, as well as 22 specialty finance locations nationwide. Celebrating

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150 years, 1st Source has a history dating back to 1863. The Bank has a tradition of providing superior service to clients while playing a leadership role in the continued development of the communities it serves.

In addition to the results presented in accordance with generally accepted accounting principles in the United States of America, this press release contains certain non-GAAP financial measures. 1st Source Corporation believes that providing non-GAAP financial measures provides investors with information useful to understanding our financial performance. Additionally, these non-GAAP measures are used by management for planning and forecasting purposes, including measures based on “tangible equity” which is “common shareholders’ equity” excluding intangible assets.

1st Source may be accessed on its home page at “www.1stsource.com.” Its common stock is traded on the NASDAQ Global Select Market under "SRCE" and appears in the National Market System tables in many daily newspapers under the code name "1st Src". Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “contemplate,” “seek,” “plan,” “possible,” “assume,” “expect,” “intend,” “targeted,” “continue,” “remain,” “estimate,” “anticipate,” “project,” “will,” “should,” “indicate,” “would,” “may” and similar expressions indicate forward-looking statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, are subject to material risks and uncertainties. 1st Source cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.

1st Source may make other written or oral forward-looking statements from time to time. Readers are advised that various important factors could cause 1st Source’s actual results or circumstances for future periods to differ materially from those anticipated or projected in such forward-looking statements. Such factors, among others, include changes in laws, regulations or accounting principles generally accepted in the United States; 1st Source’s competitive position within its markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen downturns in the local, regional or national economies or in the industries in which 1st Source has credit concentrations; and other risks discussed in 1st Source’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.

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(charts attached)

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1st SOURCE CORPORATION
4th QUARTER 2013 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except per share data)
	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
	2013				2012			2013			2012
END OF PERIOD BALANCES
Assets								$	4,722,826		$	4,550,693
Loans and leases								3,549,324			3,327,553
Deposits								3,653,650			3,624,347
Reserve for loan and lease losses								83,505			83,311
Intangible assets								86,343			87,502
Common shareholders' equity								585,378			558,655
AVERAGE BALANCES
Assets	$	4,649,245			$	4,548,602		$	4,607,949		$	4,472,879
Earning assets	4,362,005				4,260,643			4,325,907			4,174,443
Investments	837,180				900,882			840,798			882,392
Loans and leases	3,487,900				3,268,948			3,433,938			3,209,490
Deposits	3,720,299				3,635,800			3,700,509			3,574,211
Interest bearing liabilities	3,281,486				3,265,521			3,286,558			3,239,530
Common shareholders' equity	587,442				559,307			575,662			545,631
INCOME STATEMENT DATA
Net interest income	$	39,034			$	38,509		$	156,817		$	151,776
Net interest income - FTE	39,495				39,004			158,643			153,844
(Recovery of) provision for loan and lease losses	(859		)		793			772			5,752
Noninterest income	17,985				20,574			77,212			81,192
Noninterest expense	38,590				39,717			149,314			151,536
Net income	13,716				12,346			54,958			49,633
PER SHARE DATA
Basic net income per common share	$	0.56			$	0.50		$	2.23		$	2.02
Diluted net income per common share	0.56				0.50			2.23			2.02
Common cash dividends declared	0.17				0.17			0.68			0.66
Book value per common share	24.07				23.04			24.07			23.04
Tangible book value per common share	20.52				19.43			20.52			19.43
Market value - High	32.92				23.15			32.92			26.79
Market value - Low	25.64				19.70			21.88			19.70
Basic weighted average common shares outstanding	24,322,516				24,270,198			24,344,623			24,267,471
Diluted weighted average common shares outstanding	24,323,158				24,279,465			24,345,209			24,277,328
KEY RATIOS
Return on average assets	1.17			%	1.08		%	1.19		%	1.11		%
Return on average common shareholders' equity	9.26				8.78			9.55			9.10
Average common shareholders' equity to average assets	12.64				12.30			12.49			12.20
End of period tangible common equity to tangible assets	10.76				10.56			10.76			10.56
Risk-based capital - Tier 1	14.54				14.26			14.54			14.26
Risk-based capital - Total	15.86				15.57			15.86			15.57
Net interest margin	3.59				3.64			3.67			3.69
Efficiency: expense to revenue	66.25				65.95			62.44			63.33
Net charge offs to average loans and leases	0.02				0.12			0.02			0.13
Loan and lease loss reserve to loans and leases	2.35				2.50			2.35			2.50
Nonperforming assets to loans and leases	1.29				1.25			1.29			1.25
ASSET QUALITY
Loans and leases past due 90 days or more								$	287		$	442
Nonaccrual loans and leases								36,707			36,417
Other real estate								4,539			4,311
Former bank premises held for sale								951			1,034
Repossessions								4,262			63
Equipment owned under operating leases								—			—
Total nonperforming assets								$	46,746		$	42,267

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1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited - Dollars in thousands)
	December 31, 2013			December 31, 2012
ASSETS
Cash and due from banks	$	77,568		$	83,232
Federal funds sold and interest bearing deposits with other banks	2,484			702
Investment securities available-for-sale (amortized cost of $822,163 and $849,139 at December 31, 2013 and 2012, respectively)	832,700			880,764
Other investments	22,400			22,609
Trading account securities	192			146
Mortgages held for sale	6,079			10,879
Loans and leases, net of unearned discount:
Commercial and agricultural loans	679,492			639,069
Auto, light truck and environmental equipment	424,500			438,147
Medium and heavy duty truck	205,003			172,002
Aircraft financing	738,133			696,479
Construction equipment financing	333,088			278,974
Commercial real estate	583,997			554,968
Residential real estate	460,981			438,641
Consumer loans	124,130			109,273
Total loans and leases	3,549,324			3,327,553
Reserve for loan and lease losses	(83,505		)	(83,311		)
Net loans and leases	3,465,819			3,244,242
Equipment owned under operating leases, net	60,967			52,173
Net premises and equipment	46,630			45,016
Goodwill and intangible assets	86,343			87,502
Accrued income and other assets	121,644			123,428
Total assets	$	4,722,826		$	4,550,693
LIABILITIES
Deposits:
Noninterest bearing	$	735,212		$	646,380
Interest bearing	2,918,438			2,977,967
Total deposits	3,653,650			3,624,347
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	181,120			158,680
Other short-term borrowings	133,011			10,508
Total short-term borrowings	314,131			169,188
Long-term debt and mandatorily redeemable securities	58,335			71,021
Subordinated notes	58,764			58,764
Accrued expenses and other liabilities	52,568			68,718
Total liabilities	4,137,448			3,992,038
SHAREHOLDERS' EQUITY
Preferred stock; no par value	—			—
Common stock; no par value	346,535			346,535
Retained earnings	261,626			223,715
Cost of common stock in treasury	(29,364		)	(31,134		)
Accumulated other comprehensive income	6,581			19,539
Total shareholders' equity	585,378			558,655
Total liabilities and shareholders' equity	$	4,722,826		$	4,550,693

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1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Dollars in thousands)
	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	2013			2012		2013		2012
Interest income:
Loans and leases	$	39,463		$	40,552	$	161,137	$	161,376
Investment securities, taxable	3,640			3,852		14,414		16,426
Investment securities, tax-exempt	799			814		3,094		3,340
Other	228			255		940		943
Total interest income	44,130			45,473		179,585		182,085
Interest expense:
Deposits	3,561			5,009		16,604		21,877
Short-term borrowings	62			33		211		169
Subordinated notes	1,055			1,542		4,220		6,484
Long-term debt and mandatorily redeemable securities	418			380		1,733		1,779
Total interest expense	5,096			6,964		22,768		30,309
Net interest income	39,034			38,509		156,817		151,776
(Recovery of) provision for loan and lease losses	(859		)	793		772		5,752
Net interest income after (recovery of) provision for loan and lease losses	39,893			37,716		156,045		146,024
Noninterest income:
Trust fees	3,583			4,091		17,383		16,498
Service charges on deposit accounts	2,249			2,671		9,177		10,418
Debit card income	2,130			2,108		8,882		8,389
Mortgage banking income	1,277			2,893		5,944		8,357
Insurance commissions	1,361			1,443		5,492		5,494
Equipment rental income	4,131			4,176		16,229		18,796
Investment securities and other investment (losses) gains	(15		)	88		454		580
Other income	3,269			3,104		13,651		12,660
Total noninterest income	17,985			20,574		77,212		81,192
Noninterest expense:
Salaries and employee benefits	20,230			20,931		79,783		82,599
Net occupancy expense	2,220			2,159		8,700		7,819
Furniture and equipment expense	4,610			4,251		16,895		15,406
Depreciation - leased equipment	3,310			3,293		13,055		15,202
Professional fees	1,478			1,851		5,321		6,083
Supplies and communication	1,325			1,536		5,690		5,701
FDIC and other insurance	783			886		3,462		3,602
Business development and marketing expense	1,927			1,307		4,938		4,232
Loan and lease collection and repossession expense	648			1,426		4,030		5,772
Other expense	2,059			2,077		7,440		5,120
Total noninterest expense	38,590			39,717		149,314		151,536
Income before income taxes	19,288			18,573		83,943		75,680
Income tax expense	5,572			6,227		28,985		26,047
Net income	$	13,716		$	12,346	$	54,958	$	49,633
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com

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