Exhibit 99.1

For:     Immediate Release                              Contact: Andrea Short
         September 16, 2004                                      574-235-2000




                        1ST SOURCE CORPORATION ANNOUNCES
             ISSUANCE OF $30 MILLION OF TRUST PREFERRED SECURITIES;
                         REDEMPTION OF $27.5 MILLION OF
                     OUTSTANDING TRUST PREFERRED SECURITIES


         South Bend, IN -- 1st Source Corporation (Nasdaq: SRCE) today announced
that it completed a private placement issuance of $30 million of trust
preferred securities through a newly formed subsidiary trust organized under
Delaware law. The trust preferred securities were issued at $25.00 per share and
bear a 7.66 percent per annum fixed rate of interest, payable quarterly. The
securities are redeemable after five years and are due in 2034. The trust
preferred securities are intended to qualify as tier 1 capital.

         The net proceeds of the trust preferred securities issuance were used
by 1st Source to redeem $27.5 million in 9.00 percent trust preferred securities
(Nasdaq: SRCEP) issued by 1st Source Capital Trust I in 1997.

         1st Source expects that the new issuance and the redemption will have
an ongoing 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 redemption of the 1st Source
Capital Trust I trust preferred securities.



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1st Source Corporation
September 16, 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
September 16, 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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