186
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2013
150YEARS
Strong. 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 West
ville 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 West
ville 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 West
ville 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 West
ville 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 West
ville 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 West
150 years of
helping clients
build wealth and
realize their dreams.
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
Strong. Stable. Local. Personal.
1863
T
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.
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
The bank’s first President,
Judge Thomas S. Stanfield has
been called one of the most
broad-minded and farseeing
corner of Washington and Main Streets.
Schuyler Colfax, who served in Congress
throughout the Civil War and later became
men in early South Bend. A
Vice President under Ulysses S. Grant, was
have been a complete loss for the bank
prominent lawyer and civic
among the bank’s early shareholders.
was swiftly averted as two quick-thinking
leader, he served as Circuit
bank employees feverishly grabbed as
Court Judge, Indiana State
1865
many of the bank’s assets as they could
during the Civil War. Judge
Just as the Civil War was coming to an
to the nearby office of Bank President
Stanfield was a leader in bring-
end, South Bend suffered a blow when the
Judge Stanfield. Shaken but sound, the
in 1851, establishing a direct
St. Joseph Hotel, home of First National
bank opened to customers the very next
connection from the city to
Bank, became engulfed in flames. The
day in temporary quarters. Following the
both the east and the west. He
fire, one of the worst in the city’s history,
fire, the bank purchased the Old State
and was a founding member of
spread from building to building until an
Bank Building at the southwest corner of
the local Historical Society.
entire city block was in flames. What could
Michigan Street and Colfax Avenue.
Representative and a close
advisor to Governor Morton
ing the railroad to South Bend
was also a leader in education
carry, and took them off for safekeeping
1900
1923
The new century was a time of change as
First National strengthened its earlier
First National moved into the elegant new
partnership with the Union Trust
Oliver Hotel at the corner of Washington
Company, moving into its office on
and Main Streets. The bank’s first headquar-
the southeast corner of Michigan and
ters was located on this same spot 37 years
Jefferson. As banks were not permitted
prior. The bank was fitted in mahogany and
to offer trust services at the time, their
artistic brass work.
affiliation proved to be extremely
First National Bank joined other
1917
local banks to create the South
First National Bank
Bend Clearing House Association
joined the war effort
to facilitate the exchange of checks
between member banks.
successful and the institutions exerted
significant influence on the financial life
of the expanding city.
replace teller cages in favor of a friendlier
counter system. With the bars removed,
by selling Liberty
1928
Bonds to help finance
First National Bank celebrated its sixty-
provide personal service. First National
World War I.
fifth anniversary, spending $459.66 on
Bank and the Union Trust Company
advertising to celebrate the milestone.
reported a gain in resources of nearly
That same year, the bank made a bold
$2,000,000, ending 1928 with total assets
move and became the first bank in the
above $16 million, with seemingly no place
city and the fifteenth in the nation to
to go but up.
bankers could more easily assist clients and
T
1929
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.
FI RST BA N K a n d
TRU ST CO M PA N Y
1931
Vincent Bendix (right) and E. M. Morris
(facing page) join banks to form the new
First Bank & Trust Co.
“ 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)
Affiliated companies, First National Bank
The Depression reached its peak in South Bend in early 1933, and in
and the Union Trust Company, faced
March, President Roosevelt closed all banks across the country declaring
a setback when their President, Arthur
a national bank holiday. Eleven days later, First Bank & Trust was the first
Hubbard, died unexpectedly. The Board
bank in the city to be cleared to reopen without restrictions of any kind.
Company, First Bank Chairman Ernest M.
quickly brought in Ernest M. Morris,
On its first day, deposits greatly exceeded withdrawals.
Morris played a major role in establishing
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.
As founder of the Associates Investment
the finance industry as we know it today.
1934
In 1917 when few banks were interested
First Bank & Trust was accepted
the Associates Investment Company to
into the FDIC insurance program
purchase sales finance contracts from
which guaranteed deposits up
in financing automobiles, he created
auto dealers. The Associates became
the first company to prepare a simple
Recognizing the need to strengthen the
to $2,500. Shortly after FDIC
automobile loan contract and the first to
bank, Morris joined with Vincent Bendix,
coverage was announced, First
develop a rate chart to clearly show the
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
Bank reported the largest increase
in deposits and new accounts of
any South Bend bank.
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
June 5, 1931, the new First Bank & Trust
works in the community. Education,
Company was formed with capital of $1.2
medical research, programs for children
million. Morris personally provided more
than $500,000 to increase the bank’s stability.
and the arts were just a few of the many
areas Mr. Morris donated both financially
and with his time and talents.
Strong. Stable. Local. Personal.
“Our aim has been to instill
FAITH in this financial
institution by presenting the
FACTS at all times.”
F.W. Antwerp,Vice President (1933)
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 drivein window and a night depository.
As the U.S. entered World War II, First
Bank experienced rapid growth, yet
First Bank started a telephone service to
also saw high turnover as many of its
give area residents the opportunity to call
employees were called to serve in the
in and receive the time of day. In its first
armed forces. By the war’s end, deposits
year, nearly 2.3 million calls were received.
had climbed to an all-time high and were
Temperature was added to the service in
$43 million by December 1945.
1961 and the popularity of the service
The First Bank Building at the northwest corner of Main and Jefferson.
1941
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….”
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-inlaw, Robert L. Oare, was elected to
succeed him as Chairman of both.
1950s
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
Robert L. Oare
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
The 1960s were a period of change
for our nation and for First Bank. On
March 17, 1960, Associates and Bank
checks to clients.
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
Cake celebrating banking center
grand opening.
of both.
I
1963
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
“ 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)
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.
1971
Due 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.
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.
“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
1976
1983
Taking advantage of its Associates Finance
The 1970s came to a close with the
Taking advantage of changes in state and federal
Company background, the bank began
groundbreaking ceremony for 1st Source
banking laws that let the bank grow and provide
Ernestine Raclin is a trailblazer. Widely
focusing on specialty finance markets, first
Center, the complex which would
services in a neighboring community, 1st Source
known for her leadership and dedication
offering services to the trucking industry.
include the bank’s headquarters and other
purchased the First National Bank of Mishawaka,
to the bank’s clients, she’s perhaps better
business offices. The project, completed
with a history dating back to 1898. The six
recognized for her commitment to the
banking locations added by the acquisition gave
community through volunteer leadership.
1st Source a much desired presence in the city of
With United Way, public television, the
Mishawaka and in eastern St. Joseph County.
arts, University of Notre Dame and Indiana
1977
in 1982, was an outstanding example
Christopher J. Murphy III, son-in-law
of cooperation between the public and
of Bank Chairman Ernestine Morris
private sectors. The bold, contemporary
Carmichael, was elected President
design of the building was symbolic of the
and CEO of First Bank & Trust. Mrs.
bank’s leadership position in the financial
University South Bend, Mrs. Raclin has
Carmichael became Mrs. Robert L. Raclin
life of the region.
made a significant impact. The first female
later that year.
The bank introduced
First Card, an early ATM
card, to give clients
greater convenience in
accessing their money.
1981
trustee at the University of Notre Dame,
she was also the first woman in the country
To set itself apart from the dozens of
to chair a local United Way campaign. Mrs.
financial institutions with a similar name,
Raclin’s graceful leadership, dedication and
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.
loyalty to our community have been an
inspiration to us all.
Strong. Stable. Local. Personal.
1984
1998
My Bank isn’t my bank anymore….
1st Source also acquired the Community
With Ernestine Raclin’s retirement, Chris
1st Source won an international
State Bank of North Liberty, which
Murphy was elected Chairman of 1st Source
advertising contest for its commercial
gave the bank the opportunity to open
Corporation. To honor Mrs. Raclin, 1st Source
featuring Binky the dog, whose owner
its first full-service banking office in
Technology transformed how 1st Source
began the Ernestine M. Raclin Community
offered him for collateral after being
Elkhart, and Hamlet State Bank, which
served its clients. With a focus on convenience,
Leadership Award to recognize outstanding
refused a loan one too many times from
added locations in Knox and Hamlet,
new ways to do banking were introduced.
volunteer leaders within 1st Source and
big national banks. The commercial
with banking centers in Michigan City
LoanSource allowed clients to apply for a loan
our community. To date, more than 150
highlighted the simplicity of getting a loan
and LaPorte.
over the phone. InfoSource gave clients 24
employees and clients have been recognized
at 1st Source, the local community bank,
Throughout the 1980s, the 1st Source
hour access to their account information from
for their volunteer leadership efforts in the
and was so popular that Binky became the
Specialty Finance Group was expanded to
any phone in the U.S. 1stsource.com allowed
communities served by 1st Source.
bank’s mascot.
compete for business nationally by offering
clients to bank online, and the Resource
1985
specialized financing services for new and
Plus® debit card let clients have access to their
1999
used private and cargo aircraft, automobiles
checking accounts worldwide.
It seems odd now, but like other
After the Indiana legislature approved
for leasing and rental agencies, medium and
cross-county banking, 1st Source
heavy duty trucks for fleet operators, and
1996
spent countless hours during
expanded south into Marshall County,
construction and environmental equipment.
With the revision of statewide banking laws,
1999 to be sure that its software
1st Source expanded across state lines into
was safe and ready for the turn
Michigan. By the end of the 1990s, the bank
of the millennium. Sure enough, 1st Source
had opened six banking centers in Michigan,
was fully prepared and clients were able to
including locations in Niles, Dowagiac,
continue their banking without interruption
St. Joseph and Stevensville.
on January 1, 2000.
acquiring 1st Source Bank-Marshall
County which included Bremen State
Bank and Marshall County Bank.
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.
companies worldwide, 1st Source
2001
In November the bank made a major
“ This is a wonderful opportunity to join two very
to its values – keeping the client’s best
expansion into the Fort Wayne area by
strong local banks with similar values, history
interests in mind. The bank avoided the
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
Side By Side Banking©:
organizations with the management of
A new concept in client service
their investments.
debuted in Dowagiac allowing clients
to easily see all of their information.
and legacies. Our products and services are
similar, and we both believe in being involved
so-called “subprime” and “Alt-A loans”
knowing they weren’t good for the
customer in the long run. However, with
and giving back to the communities we serve.”
unemployment rates exceeding 20% in
C. J. Murphy III
some areas, it was still a challenging time.
2006
2009
The bank entered a merger to acquire First
1st Source Corporation was named one
National Bank Valparaiso, with $600 million
of the nation’s ‘100 Most Trustworthy
in assets and 26 banking facilities in Porter,
Companies’ by Forbes and Audit Integrity.
LaPorte and Starke counties.
1st Source was selected from among
2007
12,000 companies and was recognized
for corporate integrity, transparent
The U.S. housing bubble burst and increased
and conservative accounting practices
foreclosure rates led to a global financial
and solid corporate governance and
meltdown. 1st Source fared much better
management.
than most banks because of staying true
Strong. Stable. Local. Personal.
I
n looking towards the future, 1st Source reaffirmed its core values:
integrity, superior quality, outstanding client service, teamwork,
and community leadership.
Today
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2013
1st 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
Larry Gardner
Carol Kuss
Pat McCrum
Jim Grenert
George Corr
Don Steele
Dick Flahaven
Gene Price
Jack Aaker
Pat Greene
Jean Wagner
Gil Vance
Peggy Carberry
Dick Reiner
Forrest Miller
Cal White
Roland Swanson
Chuck Krueger
Barbara Houk
Sara Falabom
Judy Haas
Herb Solbrig
Scooter Wade
Jack Walsh
Wayne Hankins
O.C. Carmichael
Chuck Talcott
Rex Williams
Keith Hamilton
Grace Tetzlaff
TomTretheway
Norm Konzen
Cordia Bender
Mable Wilson
Jim Wieczorek
E. M. Morris
A. S. Burkart
Dave Herring
Dick Simonds
Bernita Gentry
Sandy Foster
Ernie Bognar
Rosemary Brady
Dewery Watkins
George Horn
Bev Gustafson
Dick Stifel
Ila Davis
Carolyn Dutoi
John Truland
Ernestine M. Raclin
Rated 5 Stars by BauerFinancial, the
highest possible rating
Ann Marek
John Gerfen
Peggy C. Ray
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.
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.
150YEARS
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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