EXHIBIT 99.1


For:     Immediate Release                       Contact: Larry Lentych
         August 10, 2004                                  574 235 2702

                                                          Andrea Short
                                                          574 235 2348


                        1ST SOURCE CORPORATION ANNOUNCES
          INTENTION TO ISSUE $30 MILLION OF TRUST PREFERRED SECURITIES;
                        PLANS TO REDEEM $27.5 MILLION OF
                     OUTSTANDING TRUST PREFERRED SECURITIES


         South Bend, IN -- 1st Source Corporation (Nasdaq: SRCE) today announced
that it has entered into arrangements for the private placement of $30.0 million
of 7.66 percent trust preferred securities. It intends to use the proceeds of
the sale to redeem all $27.5 million of the outstanding 9.00 percent trust
preferred securities (Nasdaq: SRCEP) issued by 1st Source Capital Trust I in
1997. Subject to final documentation, the securities will be issued by a newly
formed Delaware business trust subsidiary of 1st Source Corporation (1st
Source). These fixed rate trust preferred securities will be issued at $25.00
per share at the rate of 7.66 percent per annum, payable quarterly. The
securities are redeemable after five years and are due in 2034.
         1st Source today provided notice to the trustee for the 9.00 percent
trust preferred securities of its plans to redeem these securities prior to
September 30, 2004. The redemption price will be $25.00 per preferred security
plus accrued dividends to the date of redemption. 1st Source expects that
holders of the 9.00 percent trust preferred securities will receive formal
notice of redemption from the trustee.
         The completion of both the new issuance and the redemption will have an
on-going quarterly earnings benefit; however, 2004 third quarter earnings will
be reduced by an estimated $460,000 due to the net impact of the write-off of
capitalized debt issuance costs related to the trust preferred securities
currently being redeemed.





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1st Source Corporation
August 10, 2004

         The new trust preferred securities have not been registered under the
Securities Act and may not be offered or sold in the United States absent
registration or an exemption from registration requirements. This announcement
does not constitute an offer to sell or the solicitation of an offer to buy the
securities.
         1st Source is the largest locally controlled financial institution
headquartered in the northern Indiana-southwestern Michigan area. While
delivering a comprehensive range of consumer and commercial banking services,
1st Source Bank has distinguished itself with highly personalized services. 1st
Source Bank also competes for business nationally by offering specialized
financing services for private and cargo aircraft, automobiles for leasing and
rental agencies, medium and heavy duty trucks, construction and environmental
equipment. The Corporation includes 61 banking centers in 15 counties, 6
Trustcorp Mortgage offices in Indiana, Ohio and Michigan, and 22 locations
nationwide for the 1st Source Bank Specialty Finance Group. With a history
dating back to 1863, 1st Source Bank has a tradition of providing superior
service to customers while playing a leadership role in the continued
development of the communities in which it serves.
         Except for historical information contained herein, the matters
discussed in this document express "forward-looking statements." Generally, the
words "believe," "expect," "intend," "estimate," "anticipate," "project," "will"
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-




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1st Source Corporation
August 10, 2004

looking statements. Such factors, among others, include changes in laws,
regulations or U.S. generally accepted accounting principles; 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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