1863 � �2013

150 YEARSStrong. Stable. Local. Personal.

Your partners from the first.

South Bend Mishawaka Argos Bluffton Bremen Elkhart Valparaiso Chesterton Columbia City Fort Wayne Culver Dowagiac Goshen Granger Hebron Notre Dame Huntington Kalamazoo Knox Kouts LaCrosse Lafayette Lapaz LaPorte Edwardsburg Middlebury Michigan City Nappanee New Carlisle New Haven Niles North Liberty Plymouth Portage Rochester St. Joseph Stevensville Walkerton Warsaw Westville Winamac South Bend Mishawaka Argos Bluffton Bremen Elkhart Valparaiso Chesterton Columbia City Fort Wayne Culver Dowagiac Goshen Granger Hebron Notre Dame Huntington Kalamazoo Knox Kouts LaCrosse Lafayette Lapaz LaPorte Edwardsburg Middlebury Michigan City Nappanee New Carlisle New Haven Niles North Liberty Plymouth Portage Rochester St. Joseph Stevensville Walkerton Warsaw Westville Winamac South Bend Mishawaka Argos Bluffton Bremen Elkhart Valparaiso Chesterton Columbia City Fort Wayne Culver Dowagiac Goshen Granger Hebron Notre Dame Huntington Kalamazoo Knox Kouts LaCrosse Lafayette Lapaz LaPorte Edwardsburg Middlebury Michigan City Nappanee New Carlisle New Haven Niles North Liberty Plymouth Portage Rochester St. Joseph Stevensville Walkerton Warsaw Westville Winamac South Bend Mishawaka Argos Bluffton Bremen Elkhart Valparaiso Chesterton Columbia City Fort Wayne Culver Dowagiac Goshen Granger Hebron Notre Dame Huntington Kalamazoo Knox Kouts LaCrosse Lafayette Lapaz LaPorte Edwardsburg Middlebury Michigan City Nappanee New Carlisle New Haven Niles North Liberty Plymouth Portage Rochester St. Joseph Stevensville Walkerton Warsaw Westville Winamac South Bend Mishawaka Argos Bluffton Bremen Elkhart Valparaiso Chesterton Columbia City Fort Wayne Culver Dowagiac Goshen Granger Hebron Notre Dame Huntington Kalamazoo Knox Kouts LaCrosse Lafayette Lapaz LaPorte Edwardsburg Middlebury Michigan City Nappanee New Carlisle New Haven Niles North Liberty Plymouth Portage Rochester St. Joseph Stevensville Walkerton Warsaw Westville Winamac South Bend Mishawaka Argos Bluffton Bremen Elkhart Valparaiso Chesterton Columbia City Fort Wayne Culver Dowagiac Goshen Granger Hebron Notre Dame Huntington Kalamazoo Knox Kouts LaCrosse Lafayette Lapaz LaPorte Edwardsburg Middlebury Michigan City Nappanee New Carlisle New Haven Niles North Liberty Plymouth Portage Rochester St. Joseph Stevensville Walkerton Warsaw Westville Winamac South Bend Mishawaka Argos Bluffton Bremen Elkhart Valparaiso Chesterton Columbia City Fort Wayne Culver Dowagiac Goshen Granger Hebron Notre Dame Huntington Kalamazoo Knox Kouts LaCrosse Lafayette Lapaz LaPorte Edwardsburg Middlebury Michigan City Nappanee New Carlisle New Haven Niles North Liberty Plymouth Portage Rochester St. Joseph Stevensville Walkerton Warsaw Westville Winamac South Bend Mishawaka Argos Bluffton Bremen Elkhart Valparaiso Chesterton Columbia City

1st Source clients, employees and shareholders,Strong. Stable. Local. Personal. Opened two

weeks after the Gettysburg Address was delivered,

1st Source has literally grown up with the region,

and never strayed from the ideals of our founders.

We remain a local institution, embedded in the

communities we serve and committed to the success

of all who live and do business in them.

Since 1863, we have been committed to delivering

personal service and providing guidance to our

clients. We do this by being convenient, by

providing straight talk and sound financial advice,

and by always keeping our clients’ best interests in

mind, while serving them in a very personal way.

We have consistently focused on our communities

by giving back to help build good places to live,

work and raise a family.

Companies are nothing more than the collective

histories of the people who inhabit them. The

values, the aspirations, the culture, the soul of the

place are impacted by all who serve. This is truly

the case at 1st Source and we are blessed to have

had people build a wonderful legacy of integrity,

commitment and service to others. We are

committed to continuing that legacy.

We invite you to read this booklet for a glimpse of

1st Source’s rich and varied past. For those of you

who have been colleagues, clients, or shareholders,

thank you for your contribution to this legacy. It’s

been a great 150 years and we believe the best is yet

to come.

Christopher J. Murphy III

Chairman & CEO

150 years of helping clients build wealth and realize their dreams.

The bank’s first President,

Judge Thomas S. Stanfield has

been called one of the most

broad-minded and farseeing

men in early South Bend. A

prominent lawyer and civic

leader, he served as Circuit

Court Judge, Indiana State

Representative and a close

advisor to Governor Morton

during the Civil War. Judge

Stanfield was a leader in bring-

ing the railroad to South Bend

in 1851, establishing a direct

connection from the city to

both the east and the west. He

was also a leader in education

and was a founding member of

the local Historical Society.

T1863

In September 1863, community leaders

Judge Thomas Stanfield, Charles Culver,

John Hendricks, Ethan Reynolds, John

Reynolds and Ransom Hubbard joined

together with capital stock of $100,000 to

organize the First National Bank of South

Bend, 1st Source’s predecessor. It was the

city’s second bank when it opened its doors

on November 30, 1863, and was located

in an office in the St. Joseph Hotel at the

corner of Washington and Main Streets.

Schuyler Colfax, who served in Congress

throughout the Civil War and later became

Vice President under Ulysses S. Grant, was

among the bank’s early shareholders.

1865 Just as the Civil War was coming to an

end, South Bend suffered a blow when the

St. Joseph Hotel, home of First National

Bank, became engulfed in flames. The

fire, one of the worst in the city’s history,

spread from building to building until an

entire city block was in flames. What could

he story of 1st Source Bank began in 1863 in South Bend, Indiana. It was a unique time in history – the Civil War was raging, Abraham Lincoln was President and our nation was developing financially. The National Banking Act had just been signed into law, creating a national currency and the start of our banking system as we know it today.

While South Bend was not yet an incorporated city, its potential for growth and stability was widely anticipated. Oliver plows and Studebaker wagons were in full production as the driving force behind the local economy. The University of Notre Dame was already 21 years old and beginning to impact the area.

have been a complete loss for the bank

was swiftly averted as two quick-thinking

bank employees feverishly grabbed as

many of the bank’s assets as they could

carry, and took them off for safekeeping

to the nearby office of Bank President

Judge Stanfield. Shaken but sound, the

bank opened to customers the very next

day in temporary quarters. Following the

fire, the bank purchased the Old State

Bank Building at the southwest corner of

Michigan Street and Colfax Avenue.

Strong. Stable. Local. Personal.

1900

The new century was a time of change as

First National moved into the elegant new

Oliver Hotel at the corner of Washington

and Main Streets. The bank’s first headquar-

ters was located on this same spot 37 years

prior. The bank was fitted in mahogany and

artistic brass work.

1917First National Bank

joined the war effort

by selling Liberty

Bonds to help finance

World War I.

First National Bank joined other

local banks to create the South

Bend Clearing House Association

to facilitate the exchange of checks

between member banks.

1923

First National strengthened its earlier

partnership with the Union Trust

Company, moving into its office on

the southeast corner of Michigan and

Jefferson. As banks were not permitted

to offer trust services at the time, their

affiliation proved to be extremely

successful and the institutions exerted

significant influence on the financial life

of the expanding city.

1928

First National Bank celebrated its sixty-

fifth anniversary, spending $459.66 on

advertising to celebrate the milestone.

That same year, the bank made a bold

move and became the first bank in the

city and the fifteenth in the nation to

replace teller cages in favor of a friendlier

counter system. With the bars removed,

bankers could more easily assist clients and

provide personal service. First National

Bank and the Union Trust Company

reported a gain in resources of nearly

$2,000,000, ending 1928 with total assets

above $16 million, with seemingly no place

to go but up.

1931

Affiliated companies, First National Bank

and the Union Trust Company, faced

a setback when their President, Arthur

Hubbard, died unexpectedly. The Board

quickly brought in Ernest M. Morris,

founder and President of the Associates

Investment Company, to offer his counsel

and guidance. While Morris wasn’t a

stockholder at the time, he agreed to offer

help just the same.

Recognizing the need to strengthen the

bank, Morris joined with Vincent Bendix,

founder and President of Bendix Aviation

Corporation, to engineer the merger of the

First National Bank and the Indiana Trust

Company, a business started in 1922. On

June 5, 1931, the new First Bank & Trust

Company was formed with capital of $1.2

million. Morris personally provided more

than $500,000 to increase the bank’s stability.

As founder of the Associates Investment

Company, First Bank Chairman Ernest M.

Morris played a major role in establishing

the finance industry as we know it today.

In 1917 when few banks were interested

in financing automobiles, he created

the Associates Investment Company to

purchase sales finance contracts from

auto dealers. The Associates became

the first company to prepare a simple

automobile loan contract and the first to

develop a rate chart to clearly show the

monthly loan payment. Under Morris’

leadership, the Associates became

the third-largest independent finance

company in the United States. Morris’

leadership extended into many good

works in the community. Education,

medical research, programs for children

and the arts were just a few of the many

areas Mr. Morris donated both financially

and with his time and talents.

he good times did not last as “Black Tuesday” put an end to prosperity with the crash heard around the world. On October 29, 1929, stocks plummeted to incredible lows. In the months that followed, the nation became acutely aware that its boom had gone bust, but few could foresee the crisis that lay ahead. South Bend was hit hard and many workers lost their jobs. Fear ran rampant among investors as banks failed to meet the claims of their depositors. Between 1930 and 1932, eleven of eighteen banks in South Bend closed their doors. First National Bank weathered the storm.

1934

First Bank & Trust was accepted

into the FDIC insurance program

which guaranteed deposits up

to $2,500. Shortly after FDIC

coverage was announced, First

Bank reported the largest increase

in deposits and new accounts of

any South Bend bank.

1929

The Depression reached its peak in South Bend in early 1933, and in

March, President Roosevelt closed all banks across the country declaring

a national bank holiday. Eleven days later, First Bank & Trust was the first

bank in the city to be cleared to reopen without restrictions of any kind.

On its first day, deposits greatly exceeded withdrawals.

“ No banking institution has ever

lost the regard of its stockholders

or the public by a reputation of

conservatism in the protection of

other people’s money.”

E. M. Morris (December 31, 1931)

FIRST BANK andTRUST COMPANY

Vincent Bendix (right) and E. M. Morris (facing page) join banks to form the new First Bank & Trust Co.

T

Strong. Stable. Local. Personal.

1941

As the U.S. entered World War II, First

Bank experienced rapid growth, yet

also saw high turnover as many of its

employees were called to serve in the

armed forces. By the war’s end, deposits

had climbed to an all-time high and were

$43 million by December 1945.

1935

First Bank opened its first bank branch,

the first branch to be opened by any

banking institution in northern Indiana.

The second location provided clients

greater convenience in taking care of their

banking needs.

1940

On January 20, 1940, First Bank & Trust

strengthened its position in the local

community by moving its headquarters

to the Farmers’ Trust Building at the

northwest corner of Main and Jefferson.

The new headquarters was hailed as one

of the most modern and beautiful in the

country and included the city’s first drive-

in window and a night depository.

First Bank started a telephone service to

give area residents the opportunity to call

in and receive the time of day. In its first

year, nearly 2.3 million calls were received.

Temperature was added to the service in

1961 and the popularity of the service

increased even more. Even with advances in

technology, area residents continue to rely

on the service, dialing the popular number

more than 2.7 million times a year.

“First Bank time….”

“Our aim has been to instill FAITH in this financial institution by presenting the FACTS at all times.” F. W. Antwerp, Vice President (1933)

The First Bank Building at the northwest corner of Main and Jefferson.

On May 3, 1951, the South Bend

community joined together to

mourn the passing of Ernest M.

Morris, Chairman of both First

Bank and the Associates. Morris’

innovative leadership impacted the

city in many ways. Morris’ son-in-

law, Robert L. Oare, was elected to

succeed him as Chairman of both.

The 1950s were a time of prosperity for South Bend. The city’s downtown

business district thrived and area manufacturers were busy keeping up with

post-war consumer demand. First Bank anticipated the needs of a growing

community and added new locations on South Michigan Street, at Maple Lane

and on Western Avenue. The new locations added greater convenience, as

did additional services such as 24-hour self-service night depositories and the

mailing of bank statements and canceled

checks to clients.

1950s

Cake celebrating banking center grand opening.

The 1960s were a period of change

for our nation and for First Bank. On

March 17, 1960, Associates and Bank

Chairman Robert Oare was killed in

a plane crash in Tell City, Indiana.

Dr. Oliver C. Carmichael, Jr., husband

of E. M. Morris’ youngest daughter

Ernestine, was elected board chairman

of both.

Robert L. Oare

n December 1963, the closing of the 111-year-old Studebaker plant left 7,000 men and women unemployed and eliminated a $50 million annual payroll. First Bank officers and board members helped lead a campaign to revive South Bend’s economy, while the bank’s loan department deferred the loan payments of many former Studebaker employees, and made loans to many others to get them through the transition period to other employment.

1963

The bank continued to roll out new products

and services including “Bank by Mail”

which let clients transact business any hour

of the day or night free of charge by use of a

special mail-in envelope. That same year, the

Associates acquired all the stock of the bank.

1967

Operation Mail Call. After receiving a letter

from a U.S. sailor who had become so lonely

while serving in Vietnam that he wrote

a letter to his bank account and mailed it

along with his savings deposit, a program

was started for armed forces personnel in

Vietnam. First Bank paid postage on all

letters and Christmas cards brought into

the bank for U.S. service men and women

overseas. Within a week, 825 mail pieces

were collected and mailed.

1968 As the Associates celebrated its 50th

anniversary, Gulf & Western Industries, Inc.

acquired all of its outstanding common stock

in exchange for Gulf & Western securities.

Through this action, First Bank became the

only bank in the financial structure of Gulf

& Western.

1971Due to a change in bank holding company

laws, it became necessary for Gulf & Western

to divest itself of ownership of First Bank &

Trust. A group of local residents, along with

Morris’ son-in-law, Dr. O. C. Carmichael, Jr.,

formed FBT Bancorp and exchanged

their Gulf & Western securities for First

Bank & Trust stock. Continuing the family

involvement since 1931, Carmichael, who had

been Chairman of the Associates, was elected

Chairman of the Board of FBT Bancorp.

I

In the summer of 1976, Dr. Carmichael,

Chairman of the Board of FBT Bancorp

and Chairman of the Executive Committee

of First Bank, died unexpectedly.

Dr. Carmichael’s death was a big loss for

the bank and the entire community as

he was a major supporter of efforts to

rejuvenate South Bend.

Dr. Carmichael’s wife, Ernestine,

youngest daughter of the late E. M. Morris,

was elected Chairman of the Board of

FBT Bancorp.

1963

“ The corporation has achieved

consistent growth in assets,

loans, deposits and operating

income. Such growth is

gratifying. But it is merely

a springboard to the future.

Another major corporate

goal is that of community

responsibility.”

Dr. O. C. Carmichael, Jr., Chairman of the Board (1974)

1983Taking advantage of changes in state and federal

banking laws that let the bank grow and provide

services in a neighboring community, 1st Source

purchased the First National Bank of Mishawaka,

with a history dating back to 1898. The six

banking locations added by the acquisition gave

1st Source a much desired presence in the city of

Mishawaka and in eastern St. Joseph County.

The 1970s came to a close with the

groundbreaking ceremony for 1st Source

Center, the complex which would

include the bank’s headquarters and other

business offices. The project, completed

in 1982, was an outstanding example

of cooperation between the public and

private sectors. The bold, contemporary

design of the building was symbolic of the

bank’s leadership position in the financial

life of the region.

1981To set itself apart from the dozens of

financial institutions with a similar name,

the bank decided in 1981 to adopt a new

name – 1st Source Bank. The name was

chosen because it is easily recognizable and

because it accurately identifies the bank as

the total source of financial services.

“The people of 1st Source have a

strong sense of responsibility to one

another, to their customers and to

the communities we serve.”

Ernestine M. Raclin

Ernestine Raclin is a trailblazer. Widely

known for her leadership and dedication

to the bank’s clients, she’s perhaps better

recognized for her commitment to the

community through volunteer leadership.

With United Way, public television, the

arts, University of Notre Dame and Indiana

University South Bend, Mrs. Raclin has

made a significant impact. The first female

trustee at the University of Notre Dame,

she was also the first woman in the country

to chair a local United Way campaign. Mrs.

Raclin’s graceful leadership, dedication and

loyalty to our community have been an

inspiration to us all.

1976 Taking advantage of its Associates Finance

Company background, the bank began

focusing on specialty finance markets, first

offering services to the trucking industry.

1977 Christopher J. Murphy III, son-in-law

of Bank Chairman Ernestine Morris

Carmichael, was elected President

and CEO of First Bank & Trust. Mrs.

Carmichael became Mrs. Robert L. Raclin

later that year.

The bank introduced

First Card, an early ATM

card, to give clients

greater convenience in

accessing their money.

1989 1st Source opened BankMart in a fast

growing area of Mishawaka. BankMart

increased client convenience with an array

of services, including investment brokerage

and insurance, all under one roof.

Technology transformed how 1st Source

served its clients. With a focus on convenience,

new ways to do banking were introduced.

LoanSource allowed clients to apply for a loan

over the phone. InfoSource gave clients 24

hour access to their account information from

any phone in the U.S. 1stsource.com allowed

clients to bank online, and the Resource

Plus® debit card let clients have access to their

checking accounts worldwide.

1996 With the revision of statewide banking laws,

1st Source expanded across state lines into

Michigan. By the end of the 1990s, the bank

had opened six banking centers in Michigan,

including locations in Niles, Dowagiac,

St. Joseph and Stevensville.

1998With Ernestine Raclin’s retirement, Chris

Murphy was elected Chairman of 1st Source

Corporation. To honor Mrs. Raclin, 1st Source

began the Ernestine M. Raclin Community

Leadership Award to recognize outstanding

volunteer leaders within 1st Source and

our community. To date, more than 150

employees and clients have been recognized

for their volunteer leadership efforts in the

communities served by 1st Source.

1999It seems odd now, but like other

companies worldwide, 1st Source

spent countless hours during

1999 to be sure that its software

was safe and ready for the turn

of the millennium. Sure enough, 1st Source

was fully prepared and clients were able to

continue their banking without interruption

on January 1, 2000.

1984

My Bank isn’t my bank anymore….

1st Source won an international

advertising contest for its commercial

featuring Binky the dog, whose owner

offered him for collateral after being

refused a loan one too many times from

big national banks. The commercial

highlighted the simplicity of getting a loan

at 1st Source, the local community bank,

and was so popular that Binky became the

bank’s mascot.

1985

After the Indiana legislature approved

cross-county banking, 1st Source

expanded south into Marshall County,

acquiring 1st Source Bank-Marshall

County which included Bremen State

Bank and Marshall County Bank.

1st Source also acquired the Community

State Bank of North Liberty, which

gave the bank the opportunity to open

its first full-service banking office in

Elkhart, and Hamlet State Bank, which

added locations in Knox and Hamlet,

with banking centers in Michigan City

and LaPorte.

Throughout the 1980s, the 1st Source

Specialty Finance Group was expanded to

compete 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 for fleet operators, and

construction and environmental equipment.

Strong. Stable. Local. Personal.

Side By Side Banking©:

A new concept in client service

debuted in Dowagiac allowing clients

to easily see all of their information.

2001

In November the bank made a major

expansion into the Fort Wayne area by

acquiring 13 offices of Standard Federal

with locations in Fort Wayne, Huntington,

Bluffton, New Haven and Columbia City.

The Personal Asset Management

Group, always an integral part of the

bank, also experienced growth in

2001, opening additional offices in

Michigan. Additionally, 1st Source

Corporation Investment Advisors, Inc.,

a bank subsidiary, was created to better

assist high net worth individuals and

organizations with the management of

their investments.

“ This is a wonderful opportunity to join two very

strong local banks with similar values, history

and legacies. Our products and services are

similar, and we both believe in being involved

and giving back to the communities we serve.”

C. J. Murphy III

2006

The bank entered a merger to acquire First

National Bank Valparaiso, with $600 million

in assets and 26 banking facilities in Porter,

LaPorte and Starke counties.

2007

The U.S. housing bubble burst and increased

foreclosure rates led to a global financial

meltdown. 1st Source fared much better

than most banks because of staying true

to its values – keeping the client’s best

interests in mind. The bank avoided the

so-called “subprime” and “Alt-A loans”

knowing they weren’t good for the

customer in the long run. However, with

unemployment rates exceeding 20% in

some areas, it was still a challenging time.

2009 1st Source Corporation was named one

of the nation’s ‘100 Most Trustworthy

Companies’ by Forbes and Audit Integrity.

1st Source was selected from among

12,000 companies and was recognized

for corporate integrity, transparent

and conservative accounting practices

and solid corporate governance and

management.

Larry Gardner Jim Grenert Don Steele Jack Aaker Gil Vance Peggy Carberry Chuck Krueger Judy Haas Jack Walsh Chuck Talcott Rex Williams Keith Hamilton Jim Wieczorek Dave Herring Sandy Foster Ernie Bognar George Horn Carolyn Dutoi Ann Marek

Carol Kuss George Corr Dick Flahaven Pat Greene Dick Reiner Forrest Miller Barbara Houk Herb Solbrig Wayne Hankins Grace Tetzlaff TomTretheway Norm Konzen E. M. Morris Dick Simonds Rosemary Brady Bev Gustafson Ila Davis John Truland John Gerfen

Pat McCrum Gene Price Jean Wagner Cal White Roland Swanson Sara Falabom Scooter Wade O.C. Carmichael Cordia Bender Mable Wilson A. S. Burkart Bernita Gentry Dewery Watkins Dick Stifel Ernestine M. Raclin Peggy C. Ray

1863 w 2013

150 YEARS

Today1st Source continues to be recognized nationwide for its strength and stability.

Named one of the Best Banks of the Decade in the Keefe, Bruyette and Woods “Bank Honor Roll”

Honored by Forbes as One of America’s Best Banks

Rated 5 Stars by BauerFinancial, the highest possible rating

Named one of the top 150 Best Performing Banks in the country by Bank Director magazine

Recognized as one of five finalists in the Employee Volunteer Program of the Year among medium sized businesses by VolunteerMatch. 1st Source employees celebrated for volunteering more than 25,000 hours to more than 350 community organizations each year.

n looking towards the future, 1st Source reaffirmed its core values: integrity, superior quality, outstanding client service, teamwork, and community leadership.

Strong. Stable. Local. Personal.

I

For more than 40 years, Christopher J. Murphy III,

Chairman and CEO, has provided sound leadership

and guidance at 1st Source. Murphy has also

demonstrated the bank’s value of community

leadership, with economic development, education

and workforce training a major focus of his

volunteer efforts. Under his direction, as bank

President since 1977 and Corporation President

since 1979, the bank has expanded from 17 to 76

locations and from $383 million to $4.6 billion in

assets. During this growth, Murphy has reinforced

1st Source’s roots as a local bank committed to

the success of all who live and do business here.

All of these accolades start with the 1st Source Mission…

“ to help our clients achieve security, build wealth, and realize their dreams. If we listen, act with integrity, and serve our clients well, success will follow.”

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