Exhibit 99.1

News
Release

FOR:	Immediate Release	CONTACT:	Larry Lentych
	January 25, 2007		574 235 2000
			Andrea Short
			574 235 2000

1st Source Corporation Announces Year End Results,

Dividend Declared

South Bend, IN--1st Source Corporation (Nasdaq:SRCE), parent company of 1st Source Bank, today reported record net income of $39.30 million for the year 2006, an increase of 16.43 percent over the $33.75 million reported for the year 2005. Diluted net income per common share for 2006 amounted to $1.72, up 17.81 percent compared to $1.46 diluted net income per common share for 2005.

Net income was $8.12 million for the fourth quarter of 2006, down 10.73 percent compared to the $9.10 million of net income reported for the fourth quarter of 2005. Diluted net income per common share for the fourth quarter of 2006 amounted to $0.36, compared to $0.39 per common share reported in the fourth quarter of 2005. (All common share and per common share information has been adjusted for a 10% stock dividend declared on July 27, 2006.)

The Board of Directors approved a fourth quarter cash dividend of $0.14 per share. The cash dividend is payable on February 15, 2007 to shareholders of record on February 5, 2007, and is an increase of 10.24 percent over the cash dividend announced one year ago.

Christopher J. Murphy III, Chairman of 1st Source Corporation, commented, “We are pleased to have ended the year with record net income of $39.30 million for 1st Source Corporation and with record assets of over $3.81 billion. During the fourth quarter, we opened in a new market, Kalamazoo; added a banking center in our traditional market - Heritage Square Martin’s; and debuted a new regional headquarters, 1st Source Center, in downtown Fort Wayne.”

“Between the fourth quarter of 2005 and the fourth quarter of 2006, we have noted significant margin pressure. Our income was down slightly in the quarter compared to fourth quarter 2005 due to lower mortgage banking income and increased expenses in the investment of a major core systems replacement project that allows us to grow for many years to come. While we have begun to see results from our banking center expansion, the costs are larger than the returns from these investments to date.”

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Mr. Murphy concluded, "We've seen strong loan growth in our commercial, small business and specialty finance areas; our assets under management for our trust and personal asset management area continue to expand and we continue to hold the number one deposit market share in our traditional 15 county market. We are continuing to grow and working on increasing our margins while holding costs down. We are committed to being the number one bank in our region.”

1st Source’s reserve for loan and lease losses as of December 31, 2006, was 2.18 percent of total loans and leases, compared to 2.38 percent as of December 31, 2005. Net charge-offs were $0.10 million for the fourth quarter 2006, compared to net recoveries of $0.87 million a year ago. Net recoveries for the year were $2.84 million compared to net recoveries of $0.88 million in 2005. The ratio of nonperforming assets to net loans and leases was 0.64 percent on December 31, 2006, compared to 0.87 percent on December 31, 2005.

Noninterest income for the fourth quarter of 2006 was $17.69 million, a marginal increase, as compared to the fourth quarter of 2005. During the fourth quarter of 2006 increases in equipment rental income and trust fees were mostly offset by a decline in mortgage banking income. Overall, for the year of 2006 as compared to the year 2005, noninterest income increased to $76.59 million, up 11.75 percent from 2005. For the year 2006 increases in the operating lease portfolio resulted in increased equipment rental income; market valuation adjustments resulted in gains on venture partnership investments; growth in assets under management and an increase in IRA custodian revenue resulted in increased trust fee income; and increased service charges on deposit accounts resulted in increased overdraft and NSF fees.

Noninterest expense for the fourth quarter of 2006 was $32.60 million an increase of 5.64 percent as compared to the fourth quarter of 2005. The increase in the fourth quarter of 2006 as compared to the fourth quarter of 2005 was primarily due to higher depreciation on leased equipment expense, furniture and equipment expense, and professional fees. For the year, noninterest expense was $126.21 million, up 2.25 percent from one year ago. The predominate factors behind the increase in noninterest expense for the year 2006 as compared to the year 2005 were lower gains and valuation adjustments on repossessed assets, higher depreciation expense on leased equipment, and an increase in professional fees and software costs which were mainly related to the core system conversion project. These increases were offset somewhat by a decrease in salaries and employee benefits which was largely due to a one-time reduction in the accrual for stock-based compensation expense taken in the first quarter of 2006 related to the adoption of a new accounting standard.

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As of December 31, 2006, the 1st Source common equity-to-assets ratio was 9.69 percent, compared to 9.84 percent a year ago. Shareholders’ equity was $368.90 million, up from $345.58 million a year ago. Total assets at the end of the fourth quarter of 2006 were $3.81 billion, up 8.43 percent compared to the same period last year. Total loans and leases were up 9.71 percent and total deposits were up 11.02 percent from the comparable figures at the end of the fourth quarter of 2005.

1st Source Corporation 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 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 67 banking centers in 16 counties, one Trustcorp Mortgage office located in each state of Indiana and Ohio, and 24 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 clients while playing a leadership role in the continued development of the communities in which it serves.

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." Marketmakers in 1st Source common shares are Citigroup Global Markets, Inc.; Crowell, Weedon & Co.; FTN Midwest Securities Corp.; Goldman, Sachs & Company; Keefe, Bruyette & Woods, Inc.; Lehman Brothers, Inc.; Morgan Stanley & Company, Inc.; Sandler O’Neill & Partners; and Stifel, Nicolaus & Company, Inc.

1st Source’s floating rate cumulative trust preferred security is traded on the Nasdaq Stock Market under the symbol “SRCEO”. The rate for the first quarter 2007 is 7.25 percent. Marketmakers in those securities are Howe, Barnes Investments, Inc. and Stifel, Nicolaus & Company.

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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-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.

# # #

(Charts attached)

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1st SOURCE CORPORATION										Page 5
4th QUARTER 2006 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except for per share data)
	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2006			2005			2006			2005
END OF PERIOD BALANCES
Assets							$	3,807,315		$	3,511,277
Loans and leases								2,702,537			2,463,431
Deposits								3,048,284			2,745,587
Reserve for loan and lease losses								58,802			58,697
Intangible assets								19,418			21,381
Common shareholders' equity								368,904			345,576
AVERAGE BALANCES
Assets	$	3,742,787		$	3,389,502		$	3,552,301		$	3,373,137
Earning assets		3,506,946			3,161,149			3,315,104			3,152,235
Investments		680,983			637,582			644,099			702,606
Loans and leases		2,648,292			2,407,290			2,566,217			2,348,690
Deposits		2,966,604			2,639,051			2,770,548			2,610,398
Interest bearing liabilities		2,982,497			2,596,432			2,780,142			2,590,486
Common shareholders' equity		368,940			342,186			357,759			333,623
INCOME STATEMENT DATA
Net interest income	$	26,738		$	25,323		$	106,433		$	98,428
Net interest income - FTE		27,383			25,985			108,977			101,095
Recovery of provision for loan and lease losses		(98	)		(719	)		(2,736	)		(5,855	)
Noninterest income		17,690			17,574			76,585			68,533
Noninterest expense		32,595			30,856			126,211			123,439
Net income		8,123			9,099			39,297			33,751
PER SHARE DATA*
Basic net income per common share	$	0.36		$	0.40		$	1.74		$	1.48
Diluted net income per common share		0.36			0.39			1.72			1.46
Cash dividends paid per common share		0.140			0.118			0.534			0.445
Book value per common share		16.40			15.20			16.40			15.20
Market value - High		33.460			23.720			33.460			23.720
Market value - Low		29.080			19.018			22.636			17.645
Basic weighted average common shares outstanding		22,498,061			22,736,501			22,536,844			22,754,501
Diluted weighted average common shares outstanding		22,826,381			23,043,931			22,830,093			23,052,812
KEY RATIOS
Return on average assets		0.86	%		1.07	%		1.11	%		1.00	%
Return on average common shareholders' equity		8.74			10.55			10.98			10.12
Average common shareholders' equity to average assets		9.86			10.10			10.07			9.89
End of period tangible common equity to tangible assets		9.23			9.29			9.23			9.29
Net interest margin		3.10			3.26			3.29			3.21
Efficiency: expense to revenue		69.60			68.55			65.99			70.69
Net charge-offs (recoveries) to average loans and leases		0.02			(0.14	)		(0.11	)		(0.04	)
Loan and lease loss reserve to loans and leases		2.18			2.38			2.18			2.38
Nonperforming assets to loans and leases		0.64			0.87			0.64			0.87
ASSET QUALITY
Loans and leases past due 90 days or more							$	116		$	245
Nonaccrual and restructured loans and leases								15,575			16,552
Other real estate								800			960
Repossessions								975			4,284
Equipment owned under operating leases								201			0
Total nonperforming assets								17,667			22,041
*Per share figures have been adjusted for 10% stock dividend declared July 27, 2006.

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1st SOURCE CORPORATION				Page 6
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited - Dollars in thousands)
	December 31, 2006			December 31, 2005
ASSETS
Cash and due from banks	$	118,131		$	124,817
Federal funds sold and interest bearing deposits with other banks		64,979			68,578
Investment securities available-for-sale
(amortized cost of $709,091 and $637,878 at
December 31, 2006 and 2005, respectively)		708,672			632,625
Mortgages held for sale		50,159			67,224
Loans and leases, net of unearned discount:
Commercial and agricultural loans		478,310			453,197
Auto, light truck and environmental equipment		317,604			310,786
Medium and heavy duty truck		341,744			302,137
Aircraft financing		498,914			459,645
Construction equipment financing		305,976			224,230
Loans secured by real estate		632,283			601,077
Consumer loans		127,706			112,359
Total loans and leases		2,702,537			2,463,431
Reserve for loan and lease losses		(58,802	)		(58,697	)
Net loans and leases		2,643,735			2,404,734
Equipment owned under operating leases, net		76,310			58,250
Net premises and equipment		37,326			37,710
Accrued income and other assets		108,003			117,339
Total assets	$	3,807,315		$	3,511,277
LIABILITIES
Deposits:
Noninterest bearing	$	339,866		$	393,494
Interest bearing		2,708,418			2,352,093
Total deposits		3,048,284			2,745,587
Federal funds purchased and securities sold
under agreements to purchase		195,262			230,756
Other short-term borrowings		27,456			46,713
Long-term debt and mandatorily redeemable securities		43,761			23,237
Subordinated notes		59,022			59,022
Accrued expenses and other liabilities		64,626			60,386
Total liabilities		3,438,411			3,165,701
SHAREHOLDERS' EQUITY
Preferred stock; no par value		-			-
Common stock; no par value		8,336			7,578
Capital surplus		280,827			214,001
Retained earnings		99,572			139,601
Cost of common stock in treasury		(19,571	)		(12,364	)
Accumulated other comprehensive loss		(260	)		(3,240	)
Total shareholders' equity		368,904			345,576
Total liabilities and shareholders' equity	$	3,807,315		$	3,511,277

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1st SOURCE CORPORATION										Page 7
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Dollars in thousands)
	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2006			2005			2006			2005
Interest income:
Loans and leases	$	48,586		$	39,931		$	181,363		$	147,814
Investment securities, taxable		5,796			3,543			19,816			14,777
Investment securities, tax-exempt		1,345			1,333			5,183			5,275
Other		1,711			429			2,632			666
Total interest income		57,438			45,236			208,994			168,532
Interest expense:
Deposits		26,352			16,243			85,067			56,341
Short-term borrowings		2,653			2,334			11,011			8,628
Subordinated notes		1,092			1,029			4,320			4,008
Long-term debt and mandatorily redeemable securities		603			307			2,163			1,127
Total interest expense		30,700			19,913			102,561			70,104
Net interest income		26,738			25,323			106,433			98,428
Recovery of provision for loan and lease losses		(98	)		(719	)		(2,736	)		(5,855	)
Net interest income after recovery of provision
for loan and lease losses		26,836			26,042			109,169			104,283
Noninterest income:
Trust fees		3,486			3,207			13,806			12,877
Service charges on deposit accounts		4,717			4,905			19,040			17,775
Mortgage banking income		1,804			2,734			11,637			10,868
Insurance commissions		948			1,037			4,574			4,133
Equipment rental income		5,062			4,017			18,972			16,067
Other income		1,681			1,674			6,554			6,463
Investment securities and other investment (losses) gains		(8	)		0			2,002			350
Total noninterest income		17,690			17,574			76,585			68,533
Noninterest expense:
Salaries and employee benefits		16,785			16,470			66,605			69,767
Net occupancy expense		1,911			2,067			7,492			7,749
Furniture and equipment expense		3,287			2,974			12,316			11,418
Depreciation - leased equipment		3,998			3,171			14,958			12,895
Supplies and communication		1,468			1,381			5,496			5,462
Other expense		5,146			4,793			19,344			16,148
Total noninterest expense		32,595			30,856			126,211			123,439
Income before income taxes		11,931			12,760			59,543			49,377
Income tax expense		3,808			3,661			20,246			15,626
Net income	$	8,123		$	9,099		$	39,297		$	33,751
The NASDAQ Global Select National Market Symbol: "SRCE" (CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com

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