Borrowed Funds and Mandatorily Redeemable Securities

12 Months Ended

Dec. 31, 2016

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, 2016 and 2015.



(Dollars in thousands)	2016		2015
Federal Home Loan Bank borrowings (1.04% – 6.46%)	$	53,075	$	38,044
Mandatorily redeemable securities	19,177		17,388
Other long-term debt	2,056		1,947
Total long-term debt and mandatorily redeemable securities	$	74,308	$	57,379

Annual maturities of long-term debt outstanding at December 31, 2016, for the next five years and thereafter beginning in 2017, are as follows (in thousands): $26,559; $1,126; $1,037; $931; $1,220; and $43,435.

At December 31, 2016, 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 18 fixed rate notes with maturities ranging from 2017 to 2026. These notes were collateralized by $66.34 million of certain real estate loans.

Mandatorily redeemable securities as of December 31, 2016 and 2015, of $19.18 million and $17.39 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 2016, 2015, and 2014 was $1.45 million, $1.37 million, and $1.47 million, respectively.

The following table shows the details of short-term borrowings as of December 31, 2016 and 2015.



	2016				2015
(Dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Federal funds purchased	$	—	—	%	$	—	—	%
Security repurchase agreements	162,913		0.17		130,662		0.29
Commercial paper	5,761		0.27		7,295		0.28
Other short-term borrowings	123,269		0.57		95,272		0.38
Total short-term borrowings	$	291,943	0.34	%	$	233,229	0.33	%