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, 2017

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

				Weighted
	Advance			Average
Principal Terms	Amount		Range of Maturities	Interest Rate
September 30, 2017
Single maturity fixed rate advances	$	70,000	February 2018 to April 2021		1.59	%
Amortizable mortgage advances		2,118	March 2018 to July 2018		3.78	%
	$	72,118

				Weighted
	Advance			Average
Principal Terms	Amount		Range of Maturities	Interest Rate
December 31, 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

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 $443.5 million and $425.0 million under a blanket lien arrangement at September 30, 2017 and December 31, 2016, respectively.

Scheduled repayments of FHLB advances as of September 30, 2017 were as follows (in thousands):

2017	$	---
2018		52,118
2019		10,000
2020		---
2021		10,000
Thereafter		---
	$	72,118

Federal Reserve Bank borrowings

The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at September 30, 2017 and December 31, 2016, and the Company had approximately $12.6 million and $18.1 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $15.1 million and $20.7 million at September 30, 2017 and December 31, 2016, respectively.