Midland States Bancorp, Inc. - 10-K filing on 2017-03-10

FHLB ADVANCES AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2016

Note 13 – FHLB Advances and Other Borrowings

The following table summarizes our FHLB advances and other borrowings as of December 31, 2016 and 2015 (in thousands):


	2016		2015
FHLB advances – fixed rate, fixed term, at rates averaging 0.89% and 0.93%, respectively, at December 31, 2016 and 2015, respectively – maturing through August 2023	$	237,500	$	40,000
Obligations under capital leases – implicit interest rate of 1.70% – maturing through July 2018		18		178
Total FHLB advances and other borrowings	$	237,518	$	40,178

On December 18, 2014, the Company entered into a $14.0 million term loan agreement with another bank. The interest rate was fixed at 4.85% for the term of the loan. This loan was paid off in June 2015.

On December 31, 2014, the Company repaid $40.0 million of FHLB advances with a weighted average interest rate of 2.86% and maturity dates ranging from 2016 to 2017. As a result, the Company paid a prepayment fee of $1.7 million that was recorded as noninterest expense in the consolidated statements of income.

The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial loans totaling approximately $1.18 billion and $987.4 million at December 31, 2016 and 2015, respectively.

Payments over the next five years for FHLB advances and other borrowings are as follows (in thousands):


	Amount
2017	$	62,514
2018		50,004
2019		—
2020		—
2021		50,000
Thereafter		75,000
Total	$	237,518