Borrowed Funds and Mandatorily Redeemable Securities

12 Months Ended

Dec. 31, 2013

Borrowed Funds And Mandatorily Redeemable Securities

Borrowed Funds and Mandatorily Redeemable Securities

The following table shows the details of long-term debt and mandatorily redeemable securities as of December 31, 2013 and 2012.



(Dollars in thousands)	2013		2012
Federal Home Loan Bank borrowings (1.10% – 6.54%)	$	42,512	$	56,711
Mandatorily redeemable securities	14,072		12,750
Other long-term debt	1,751		1,560
Total long-term debt and mandatorily redeemable securities	$	58,335	$	71,021

Annual maturities of long-term debt outstanding at December 31, 2013, for the next five years and thereafter beginning in 2014, are as follows (in thousands): $5,868; $875; $6,029; $26,047; $611; and $18,905.

At December 31, 2013, the Federal Home Loan Bank borrowings represented a source of funding for community economic development activities, agricultural loans and general funding for the bank and consisted of 16 fixed rate notes with maturities ranging from 2014 to 2023. These notes were collateralized by $53.56 million of certain real estate loans.

The following table shows the details of short-term borrowings as of December 31, 2013 and 2012.



	2013				2012
(Dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Federal funds purchased	$	63,500	0.34	%	$	58,500	0.33	%
Security repurchase agreements	117,620		0.08		100,180		0.12
Commercial paper	10,814		0.24		3,469		0.22
Other short-term borrowings	122,197		0.28		7,039		—
Total short-term borrowings	$	314,131			$	169,188

Mandatorily redeemable securities as of December 31, 2013 and 2012, of $14.07 million and $12.75 million, respectively reflected the “book value” shares under the 1st Source Executive Incentive Plan. See Note 16 - Employee Stock Benefit Plans for additional information. Dividends paid on these shares and changes in book value per share are recorded as other interest expense. Total interest expense recorded for 2013, 2012, and 2011 was $1.00 million, $1.11 million, and $1.04 million, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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