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$1.0 Billion in Mortgage Servicing Rights Sold By 1st Source Corporation South Bend, IN--1st Source Corporation (Nasdaq:SRCE) reported today it has executed an agreement to sell $1.0 billion in mortgage servicing rights currently held by its Trustcorp Mortgage Company subsidiary. A definitive agreement is expected to be signed by February 28, 2001 if completed as agreed. This action will generate approximately $6.0 million in net income for 1st Source Corporation in the first quarter of 2001. According to Christopher J. Murphy III, Chairman of 1st Source Corporation, "Recent business cycles in the mortgage banking industry have created a strong demand for mortgage servicing. This has presented 1st Source with an opportunity to maximize the value of a portion of the servicing portfolio managed by Trustcorp Mortgage Company by selling it to investors who place a higher value on the servicing than Trustcorp believes it can earn by retaining it. This transaction will enable 1st Source to reallocate resources and capital to insure growth and competitive returns from its investment in mortgage origination and servicing. The management of Trustcorp has proposed this transaction as a way of improving the long term returns on the 1st Source investment in the mortgage banking business." 1st Source Corporation takes pride in its identification as the largest locally owned 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 innovative products and highly personalized services. 1st Source also competes for business nationally by offering specialized financing services for used private aircraft, automobiles for leasing and rental agencies, heavy duty trucks, construction and environmental equipment. The corporation includes 49 banking locations in twelve counties; 23 locations nationwide for the 1st Source Bank Specialty Finance Group; and Trustcorp Mortgage Company, a South Bend, IN based full-service mortgage banker in its 27th year with 13 retail production offices in Indiana, Ohio, Michigan and North Carolina, as well as production affiliates throughout the Midwest and Southeast. With a history dating back to 1863, 1st Source 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, and other information contained in 1st Source's SEC filings, may express "forward-looking statements." Those "forward-looking statements" may involve risk and uncertainties, including statements concerning future events, performance and assumptions and other statements that are other than statements of historical facts. 1st Source wishes to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Readers are advised that various factors -- including, but not limited to, changes in laws, regulations or generally accepted accounting principles; 1st Source's competitive position within the markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; any unforeseen downturns in the local, regional or national economies -- could cause 1st Source's actual results or circumstances for future periods to differ materially from those anticipated or projected. 1st Source does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect the occurrence of unanticipated events or circumstances after the date of such statements. --January 17, 2001 |
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