South Bend's 1st Source takes part in fed's capital purchase program

Greater Fort Wayne Business Weekly

South Bend-based 1st Source Corp., the parent company of 1st Source Bank, late last week said it will participate in the U.S. Treasury Department's Capital Purchase Program by selling preferred, nonvoting shares of its stock valued at $111 million to the department.

In a statement, 1st Source said the preferred stock issued to the Treasury Department pays a 5-percent annual dividend for the first five years and a 9-percent annual dividend thereafter.

1st Source also issued a warrant to the Treasury Department to purchase up to 837,947 shares of common stock at $19.87 per share, which, if issued, would represent about 3.3 percent of current outstanding common shares.