Borrowed Funds and Mandatorily Redeemable Securities

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018.



(Dollars in thousands)	2019		2018
Federal Home Loan Bank borrowings (1.04% – 5.04%)	$	45,819	$	46,444
Mandatorily redeemable securities	17,972		16,542
Other long-term debt	7,848		8,137
Total long-term debt and mandatorily redeemable securities	$	71,639	$	71,123

Annual maturities of long-term debt outstanding at December 31, 2019, for the next five years and thereafter beginning in 2020, are as follows (in thousands): $2,759; $3,047; $4,709; $1,928; $11,065; and $48,131.

At December 31, 2019, 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 $57.25 million of certain real estate loans.

Mandatorily redeemable securities as of December 31, 2019 and 2018, of $17.97 million and $16.54 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 2019, 2018, and 2017 was $2.22 million, $1.61 million, and $1.68 million, respectively.

The following table shows the details of short-term borrowings as of December 31, 2019 and 2018.



	2019				2018
(Dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Federal funds purchased	$	—	—	%	$	10,000	2.70	%
Security repurchase agreements	120,459		0.23		103,627		0.25
Commercial paper	3,993		0.29		4,325		0.29
Federal Home Loan Bank advances	20,000		1.61		80,000		2.57
Other short-term borrowings	1,441		—		1,392		—
Total short-term borrowings	$	145,893	0.42	%	$	199,344	1.30	%