Macatawa Bank Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS

9 Months Ended

Sep. 30, 2016

OTHER BORROWED FUNDS [Abstract]

OTHER BORROWED FUNDS

NOTE 7 - OTHER BORROWED FUNDS

Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank.

Federal Home Loan Bank Advances

At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands):

Principal Terms	Advance Amount		Range of Maturities	Weighted Average Interest Rate
September 30, 2016
Single maturity fixed rate advances	$	80,000	February 2018 to April 2021		1.60	%
Amortizable mortgage advances		4,173	March 2018 to July 2018		3.78	%
	$	84,173

Principal Terms	Advance Amount		Range of Maturities	Weighted Average Interest Rate
December 31, 2015
Single maturity fixed rate advances	$	90,000	August 2016 to March 2020		1.69	%
Amortizable mortgage advances		6,169	March 2018 to July 2018		3.78	%
	$	96,169

Each advance is subject to a prepayment fee if paid prior to its maturity date. Fixed rate advances are payable at maturity. Amortizable mortgage advances are fixed rate advances with scheduled repayments based upon amortization to maturity. These advances were collateralized by residential and commercial real estate loans totaling $433,277,000 and $440,660,000 under a blanket lien arrangement at September 30, 2016 and December 31, 2015, respectively.

Scheduled repayments of FHLB advances as of September 30, 2016 were as follows (in thousands):

2016	$	---
2017		2,055
2018		52,118
2019		10,000
2020		10,000
Thereafter		10,000
	$	84,173

Federal Reserve Bank borrowings

The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at September 30, 2016 and December 31, 2015, and the Company had approximately $20.7 million and $18.5 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $23.3 million and $21.6 million at September 30, 2016 and December 31, 2015, respectively.