CHFC 2018 Annual Report

At December 31, 2018, time deposits, which consist of certificates of deposit, including CDARs, IRA deposits and other brokered funds, totaled $4.07 billion, of which $2.78 billion have stated maturities in 2019. 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, 2018: (Dollars in thousands) Amount Weighted Average Interest Rate 2019 maturities: First quarter $ 952,768 1.71% Second quarter 926,723 1.83 Third quarter 448,972 1.89 Fourth quarter 447,634 2.02 Total 2019 maturities 2,776,097 1.83 2020 maturities 1,032,314 2.26 2021 maturities 148,995 1.52 2022 maturities 82,076 1.58 2023 maturities 33,900 1.63 2024 maturities and beyond 866 1.49 Total time deposits $ 4,074,248 1.92% The below table presents the maturity distribution of time deposits of $250,000 or more at December 31, 2018. Time deposits of $250,000 or more totaled $2.07 billion and represented 13.3% of total deposits at December 31, 2018. December 31, 2018 (Dollars in thousands) Amount Percent Maturity: Within 3 months $ 702,450 33.9% After 3 but within 6 months 558,065 26.9 After 6 but within 12 months 514,775 24.8 After 12 months 299,633 14.4 Total $ 2,074,923 100.0% 66 Borrowed Funds and Other Short-Term Liabilities Borrowed funds consist of short-term and long-termborrowings. Short-termborrowings, which generally have an original term to maturity of 30 days or less, consist of short-term Federal Home Loan Bank ("FHLB") advances and federal funds purchased which are utilized by us to fund short-term liquidity needs. Other short-term liabilities consist of collateralized customer deposits. Long-term borrowings consist of long-term FHLB advances and subordinated debt obligations. Long-term borrowings also included a non-revolving line-of-credit as of December 31, 2017. Other Short-term Liabilities Other short-term liabilities consist of collateralized customer deposits, which 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 our core deposit base, and are generally only provided to customers that have an established banking relationship with Chemical Bank. Our collateralized customer deposits do not qualify as sales for accounting purposes. Collateralized customer deposits were $382.7 million and $415.2 million at December 31, 2018 and 2017, respectively.