CHFC 2017 Annual Report

At December 31, 2017, time deposits, which consist of certificates of deposit, including CDARs, IRA deposits and other brokered funds, totaled $3.22 billion, of which $2.17 billion have stated maturities in 2018. We expect the majority of these maturing time deposits to be renewed by customers. The following schedule summarizes the scheduled maturities of time deposits as of December 31, 2017: (Dollars in thousands) Amount Weighted Average Interest Rate 2018 maturities: First quarter $ 707,791 0.86% Second quarter 502,624 1.07 Third quarter 682,064 1.27 Fourth quarter 276,379 1.08 Total 2018 maturities 2,168,858 1.07 2019 maturities 646,514 1.35 2020 maturities 183,101 1.41 2021 maturities 134,806 1.55 2022 maturities and beyond 83,928 1.57 Total time deposits $ 3,217,207 1.18% The below table presents the maturity distribution of time deposits of $100,000 or more at December 31, 2017. Time deposits of $100,000 or more totaled $2.20 billion and represented 16.2% of total deposits at December 31, 2017. December 31, 2017 (Dollars in thousands) Amount Percent Maturity: Within 3 months $ 548,888 24.9% After 3 but within 6 months 458,545 20.8 After 6 but within 12 months 668,156 30.3 After 12 months 529,133 24.0 Total $ 2,204,722 100.0% 62 Borrowed Funds Borrowed funds consist of securities sold under agreements to repurchase with customers, short-term borrowings and long-term borrowings. Short-term borrowings, which generally have an original term to maturity of 30 days or less, consist of short-termFederal Home LoanBank ("FHLB") advances and federal funds purchasedwhich are utilized to fund short-term liquidity needs. Long-term borrowings consist of securities sold under agreements to repurchase with an unaffiliated third-party financial institution, long-term FHLB advances, a non-revolving line-of-credit, a revolving line-of-credit and subordinated debt obligations. Securities Sold Under Agreements to Repurchase with Customers Securities sold under agreements to repurchase with customers represent funds deposited by customers that are collateralized by investment securities owned by Chemical Bank, as these deposits are not covered by Federal Deposit Insurance Corporation (FDIC) insurance. These funds have been a stable source of liquidity for Chemical Bank, much like its core deposit base, and are generally only provided to customers that have an established banking relationship with Chemical Bank. Securities sold under agreements to repurchase with customers do not qualify as sales for accounting purposes. Securities sold under agreements to repurchase with customers were $415.2 million and $343.0 million at December 31, 2017 and 2016, respectively.