Table of Contents The following table shows the maturities of loans and leases in the categories of commercial and agricultural, auto and light truck, medium and heavy duty truck, aircraft and construction equipment outstanding as of December 31, 2020. The following table shows amounts due after one year are also classified according to the sensitivity to changes in interest rates. During 2020, approximately 69% of the Bank’s residential mortgage originations were sold into the secondary market. Mortgage loans held for sale were $12.89 million at December 31, 2020 and were $20.28 million at December 31, 2019. 1st Source Bank sells residential mortgage loans to Fannie Mae as well as FHA-insured and VA-guaranteed loans in Ginnie Mae mortgage-backed securities. Additionally, we have sold loans on a service released basis to various other financial institutions in the past. The agreements under which we sell these mortgage loans contain various representations and warranties regarding the acceptability of loans for purchase. On occasion, we may be asked to indemnify the loan purchaser for credit losses on loans that were later deemed ineligible for purchase or we may be asked to repurchase a loan. Both circumstances are collectively referred to as “repurchases.” Within the industry, repurchase demands have decreased during recent years. We believe the loans we have underwritten and sold to these entities have met or exceeded applicable transaction parameters. Our exposure risk for repurchases started to reduce in 2016 as a result of the enhancements made by FNMA in 2013 to the selling representations and warranties framework as warranties on loans sold prior to implementation of such changes lapse. Our liability for repurchases, included in Accrued Expenses and Other Liabilities on the Statements of Financial Condition, was $0.33 million and $0.29 million as of December 31, 2020 and 2019, respectively. Our expense (recovery) for repurchase losses, included in Loan and Lease Collection and Repossession expense on the Statements of Income, was $0.03 million in 2020 compared to $0.01 million in 2019 and $(0.10) million in 2018. The mortgage repurchase liability represents our best estimate of the loss that we may incur. The estimate is based on specific loan repurchase requests and a historical loss ratio with respect to origination dollar volume. Because the level of mortgage loan repurchase losses is dependent on economic factors, investor demand strategies and other external conditions that may change over the life of the underlying loans, the level of liability for mortgage loan repurchase losses is difficult to estimate and requires considerable management judgment. Allowance for Credit Losses — As of December 31, 2020, we adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as current expected credit losses (CECL) methodology. The allowance for loan and lease losses considers the historical loss experience, current conditions, and reasonable and supportable forecasts. To estimate expected loan and lease losses under CECL, we used a broader range of data than under previous U.S. generally accepted accounting principles. We were able to access loan data over a long-time horizon, generally back to Q4 2007, thus capturing most of the economic business cycle which includes the Great Recession and the subsequent long slow recovery which supports full lifetime losses. The CECL methodology requires our loan portfolio to be segregated into pools based on similar risk characteristics. We evaluated each portfolio, establishing numerous segments. We then reviewed risk characteristics for each segment, noting that some pools were either too small for meaningful analysis or contained risk characteristics similar to other pools. Thus some pools were consolidated. CREDIT EXPERIENCE (Dollars in thousands) 0-1 Year 1-5 Years Over 5 Years Total Commercial and agricultural $ 823,906  $ 543,380  $ 111,436  $ 1,478,722  Auto and light truck 187,374  318,387  36,608  542,369  Medium and heavy duty truck 97,548  176,585  5,039  279,172  Aircraft 182,386  617,589  61,485  861,460  Construction equipment 198,583  483,235  33,070  714,888  Commercial real estate 148,108  529,976  291,780  969,864  Residential real estate and home equity 136,777  246,499  128,103  511,379  Consumer 67,450  63,485  512  131,447  Total $ 1,842,132 $ 2,979,136 $ 668,033 $ 5,489,301 Rate Sensitivity  (Dollars in thousands) Fixed Rate Variable Rate Total 1 – 5 Years $ 2,184,711  $ 794,425  $ 2,979,136  Over 5 Years 222,318  445,715  668,033  Total $ 2,407,029 $ 1,240,140 $ 3,647,169 32