1st
SOURCE CORPORATION
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EMPLOYEES’
STOCK OWNERSHIP AND
PROFIT SHARING PLAN
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By
the Plan Administrator
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1st
Source Corporation
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/s/TINA H. PERKINS | ||
Tina H. Perkins, Senior Vice President | ||
Date : June 29, 2007 | ||
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Report
of Independent Registered Public Accounting Firm 1
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Financial
Statements
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Statements
of Net Assets Available for Benefits 2
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Statement
of Changes in Net Assets Available for Benefits
3
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Notes
to Financial Statements
4
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Supplemental
Schedule
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Schedule
H, Line 4i – Schedule of Assets (Held at End of Year)
13
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1st
Source Corporation
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Employees’
Stock Ownership and Profit Sharing Plan
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(Formerly
1st Source Corporation Employees’ Profit Sharing Plan and
Trust)
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Statements
of Net Assets Available for Benefits
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December
31
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||||||||
2006
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2005
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Assets
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||||||||
Cash
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$ |
42,834
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$ |
483,284
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Investments
at fair value:
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Mutual
funds
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61,212,366
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52,317,771
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1st
Source Corporation common stock
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42,161,082
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32,624,710
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1st
Source Bank common trust fund
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6,750,955
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4,884,905
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Participant
notes receivable
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692,740
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700,986
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Short-term
investment fund
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96,693
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–
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Total
investments
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110,956,670
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90,528,372
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Employer
contributions receivable
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3,376,602
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3,146,464
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Accrued
investment income
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426
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9,086
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Liabilities
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Due
to brokers, net
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15,598
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–
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Net
assets available for benefits, at fair value
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114,318,100
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94,167,206
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Adjustment
from fair value to contract value
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for
benefit responsive investments contracts
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29,159
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36,914
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Net
assets available for benefits
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$ |
114,347,259
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$ |
94,204,120
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See
accompanying notes.
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1st
Source Corporation
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Employees’
Stock Ownership and Profit Sharing Plan
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(Formerly
1st Source Corporation Employees’ Profit Sharing Plan and
Trust)
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Statement
of Changes in Net Assets Available for Benefits
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Year
Ended December 31, 2006
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Additions
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Investment
income
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$ |
4,293,698
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Contributions:
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Employer
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3,376,758
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Employees
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4,067,847
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7,444,605
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Net
realized and unrealized appreciation in fair value of
investments
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15,803,491
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Total
additions
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27,541,794
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Deductions
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Benefits
paid to participants
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7,398,655
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Total
deductions
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7,398,655
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Net
increase in net assets available for benefits
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20,143,139
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Net
assets available for benefits:
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Beginning
of year
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94,204,120
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End
of year
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$ |
114,347,259
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See
accompanying notes.
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Net
Appreciation
in
Fair Value During the Year
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1st
Source Corporation common stock
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$ |
9,975,682
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Mutual
funds
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5,644,958
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1st
Source Bank common trust funds
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182,851
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$ |
15,803,491
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2006
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2005
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1st
Source Corporation common stock*
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$ |
42,161,082
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$ |
32,624,710
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1st
Source Monogram Income Fund*
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10,108,517
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13,177,843
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1st
Source Monogram Diversified Equity Fund*
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–
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9,501,622
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1st
Source Monogram Income Equity Fund*
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12,106,633
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13,937,503
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1st
Source Monogram Special Equity Fund*
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–
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–
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Morgan
Stanley Institutional International
Equity
Fund*
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11,329,135
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8,161,243
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1st
Source Bank Employee Benefit Guaranteed
Income
Fund*
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6,750,955
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4,884,905
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1st
Source Bank Employee Benefit Balanced Fund*
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8,389,262
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–
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1st
Source Bank Employee Benefit Aggressive Fund*
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11,054,512
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–
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December
31
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2006
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2005
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Net
assets
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Cash
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$ |
14
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$ |
2,018,378
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1st
Source Corporation common stock
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35,020,339
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26,885,430
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1st
Source Corporation mutual funds
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21,790,675
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16,604,982
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1st
Source Bank Employee Benefit Guaranteed
Income
Fund
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3,286,538
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2,441,202
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Total
net assets
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$ |
60,097,566
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$ |
47,949,992
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Year
Ended December 31 2006
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Changes
in net assets
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Contributions
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$ |
3,578,315
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Investment
income
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1,865,249
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Net
realized/unrealized appreciation
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11,167,049
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Fund
transfer/purchases/sales
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(339,331 | ) | ||
Benefits
paid to participants
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(4,123,708 | ) | ||
Total
changes in net assets
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$ |
12,147,574
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2006
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2005
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1st
Source Corporation common stock
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$ |
42,161,082
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$ |
32,624,710
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1st
Source Monogram Income Fund
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10,108,517
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13,177,843
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1st
Source Monogram Income Equity Fund
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12,106,633
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13,937,503
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1st
Source Monogram Diversified Equity Fund
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3,454,969
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9,501,622
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1st
Source Monogram Special Equity Fund
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2,118,425
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4,052,266
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1st
Source Bank Employee Benefit Guaranteed
Income
Fund
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6,750,955
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4,884,905
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1st
Source Monogram Long/Short Fund
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2,648,908
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1,098,241
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1st
Source Bank Employee Benefit Balanced Fund
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8,389,262
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–
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1st
Source Bank Employee Benefit Aggressive Fund
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11,054,513
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–
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1st
Source Bank Employee Benefit Low Risk Fund
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2,004
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–
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Loans
to participants
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692,740
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700,986
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December
31
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2006
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2005
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Net
assets available for benefits per the financial statements
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$ |
114,347,259
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$ |
94,204,120
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Benefit
payable to withdrawn participants
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3,858,905
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–
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Adjustment
from fair value to contract value for benefit responsive investment
contracts
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(29,159 | ) | (36,914 | ) | ||||
Net
assets available for benefits per the Form 5500
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$ |
110,459,195
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$ |
94,167,206
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1st
Source Corporation
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Employees’
Stock Ownership and Profit Sharing Plan
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|||
(Formerly
1st Source Corporation Employees’ Profit Sharing Plan and
Trust)
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Schedule
H, Line 4i – Schedule of Assets
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(Held
at End of Year)
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EIN:
35-1068133 Plan
# 003
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December
31, 2006
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Identity
of Issuer, Borrower,
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Description
of
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Lessor,
or Similar Party
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Investment
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Cost
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Current
Value
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Common
stock:
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1st
Source Corporation*
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1,312,203
shares
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$ 17,587,291
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$ 42,161,082
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Goldman
Sachs Prime Obligation Fund
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96,693
units
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96,693
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96,693
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Mutual
funds:
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Morgan
Stanley Institutional
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International
Equity Fund A
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550,492
shares
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10,830,117
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11,329,135
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1st
Source Monogram Long/Short Fund*
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227,961
shares
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2,540,443
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2,648,908
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1st
Source Monogram Income Fund*
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1,043,191
shares
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10,427,470
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10,108,517
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1st
Source Monogram Income Equity Fund*
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838,990
shares
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10,577,698
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12,106,633
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1st
Source Monogram Diversified Equity Fund*
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433,497
shares
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3,415,087
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3,454,969
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1st
Source Monogram Special Equity Fund*
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222,992
shares
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2,055,164
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2,118,425
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1st
Source Bank Employee Benefit Balanced Fund*
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540,626
shares
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8,039,096
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8,389,262
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1st
Source Bank Employee Benefit Aggressive Fund*
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696,699
shares
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10,357,964
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11,054,513
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1st
Source Bank Employee Benefit Low Risk Fund*
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145
shares
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2,001
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2,004
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58,245,040
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61,212,366
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Common
trust funds:
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1st
Source Bank Employee Benefit
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Guaranteed
Income Fund*
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255,126
units
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6,005,149
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6,750,955
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Loans
to participants*
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$692,740
principal
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amount,
interest rates
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ranging
6.25%–11.75%,
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maturities
through 2021
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–
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692,740
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$ 81,934,173
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$ 110,913,836
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*Indicates
party in interest to the Plan.
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