Borrowed Funds and Mandatorily Redeemable Securities

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022.

(Dollars in thousands)	2023		2022
Federal Home Loan Bank borrowings (1.04% – 2.80%)	$	20,753	$	21,315
Mandatorily redeemable securities	21,641		17,905
Other long-term debt	5,517		7,335
Total long-term debt and mandatorily redeemable securities	$	47,911	$	46,555

Annual maturities of long-term debt outstanding at December 31, 2023, for the next five years and thereafter beginning in 2024, are as follows: $12.45 million; $1.41 million; $11.29 million; $0.83 million; $0.20 million; and $21.73 million.

At December 31, 2023, 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 five fixed rate notes with maturities ranging from 2024 to 2026. These notes were collateralized by $29.67 million of certain real estate loans.

Mandatorily redeemable securities as of December 31, 2023 and 2022, of $21.64 million and $17.91 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 on the Consolidated Statements of Income. Total interest expense recorded for 2023, 2022, and 2021 was $3.60 million, $(0.35) million, and $1.79 million, respectively. Negative interest expense recognized during 2022 was due to a decrease in book value per share during the year.

The following table shows the details of short-term borrowings as of December 31, 2023 and 2022.

	2023				2022
(Dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Federal funds purchased	$	—	—	%	$	—	—	%
Securities sold under agreements to repurchase	55,809		0.37		141,432		0.05
Commercial paper	—		—		3,096		0.03
Federal Home Loan Bank advances	155,000		5.51		70,000		4.16
Federal Reserve advances	100,000		4.83		—		—
Other short-term borrowings	1,550		—		1,001		—
Total short-term borrowings	$	312,359	4.35	%	$	215,529	1.39	%