Macatawa Bank Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS

12 Months Ended

Dec. 31, 2015

OTHER BORROWED FUNDS [Abstract]

OTHER BORROWED FUNDS

NOTE 8 - 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 year-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
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

Principal Terms		Advance Amount	Range of Maturities	Weighted Average Interest Rate
December 31, 2014
Single maturity fixed rate advances	$	80,000	August 2016 to February 2019	1.69	%
Amortizable mortgage advances		8,107	March 2018 to July 2018	3.78	%
	$	88,107

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 $440,660,000 and $441,252,000 under a blanket lien arrangement at December 31, 2015 and 2014.

Scheduled repayments of FHLB advances as of December 31, 2015 were as follows (in thousands):

2016	$	21,996
2017		2,055
2018		52,118
2019		10,000
2020		10,000
Thereafter		---
	$	96,169

Federal Reserve Bank Borrowings

The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at December 31, 2015 and 2014, and the Company had approximately $18.5 million and $22.8 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $21.6 million and $25.9 million at December 31, 2015 and 2014, respectively.