Borrowed Funds and Mandatorily Redeemable Securities

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

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, 2018 and 2017.

(Dollars in thousands)	2018		2017
Federal Home Loan Bank borrowings (1.04% – 5.04%)	$	46,444	$	47,114
Mandatorily redeemable securities	16,542		18,948
Other long-term debt	8,137		3,998
Total long-term debt and mandatorily redeemable securities	$	71,123	$	70,060

Annual maturities of long-term debt outstanding at December 31, 2018, for the next five years and thereafter beginning in 2019, are as follows (in thousands): $2,565; $2,460; $2,748; $4,410; $1,630; and $57,310.

At December 31, 2018, 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 17 fixed rate notes with maturities ranging from 2021 to 2027. These notes were collateralized by $58.04 million of certain real estate loans.

Mandatorily redeemable securities as of December 31, 2018 and 2017, of $16.54 million and $18.95 million, respectively reflected the “book value” shares under the 1st Source Executive Incentive Plan. See Note 16 - Stock Based Compensation (Stock Award 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 2018, 2017, and 2016 was $1.61 million, $1.68 million, and $1.45 million, respectively.

The following table shows the details of short-term borrowings as of December 31, 2018 and 2017.

	2018				2017
(Dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Federal funds purchased	$	10,000	2.70	%	$	56,000	1.63	%
Security repurchase agreements	103,627		0.25		149,834		0.20
Commercial paper	4,325		0.29		6,115		0.27
Federal Home Loan Bank advances	80,000		2.57		—		—
Other short-term borrowings	1,392		—		2,646		—
Total short-term borrowings	$	199,344	1.30	%	$	214,595	0.57	%