OTHER BORROWINGS

A summary of the Corporation's other borrowings follows:



	December 31, 2015
	Ending Balance		Weighted Average Interest Rate At Year-End
	(Dollars in thousands)
Long-term FHLB advances	$	181,394	1.41	%
Non-revolving line-of-credit	25,000		2.27
Securities sold under agreements to repurchase	17,453		0.27
Subordinated debentures	18,544		3.99
Total other borrowings	$	242,391

During the third quarter of 2015, the Corporation borrowed $100 million of long-term FHLB advances, which consist of three- and five-year term fixed-rate advances with a weighted-average interest rate of 1.48%. In conjunction with the Lake Michigan and Monarch acquisitions, the Corporation acquired long-term FHLB advances totaling $81.5 million. These advances have a weighted average interest rate of 1.33% at December 31, 2015. The Corporation's FHLB advances, including both short-term and long-term, require monthly interest payments. The scheduled reductions of long-term FHLB advances as of December 31, 2015 were as follows: 2016 - $7.1 million; 2017 - $47.1 million; 2018 - $67.1 million; 2019; - $0.1 million; and 2020 - $60.0 million.

FHLB advances are collateralized by a blanket lien on qualified one- to four-family residential mortgage loans. At December 31, 2015, the carrying value of these qualified loans was $1.34 billion. The Corporation's additional borrowing availability through the FHLB, subject to the FHLB's credit requirements and policies and based on the amount of FHLB stock owned by the Corporation, was $250 million at December 31, 2015.

Prepayments of fixed-rate advances are subject to prepayment fees under the provisions and conditions of the credit policy of the FHLB. On January 22, 2013, the Corporation paid off early all of its FHLB advances outstanding at that time of $34.3 million, resulting in a prepayment fee of $0.8 million. The Corporation did not incur any prepayment fees in 2015 or 2014.

The Corporation entered into a $25 million secured non-revolving line-of-credit in May 2015 with an unaffiliated third-party financial institution. The Corporation drew on the entire amount of the line-of-credit in order to partially fund the cash portion of the purchase price consideration for the Lake Michigan transaction. The line-of-credit bears a variable rate of interest which is based on the one-, two- or three-month LIBOR, as periodically selected by the Corporation, plus a fixed stated rate (effective interest rate of 2.27% at December 31, 2015), and matures in May 2016. The line-of-credit agreement contains certain restrictive covenants. The Corporation was in compliance with all of the covenants at December 31, 2015. The line-of-credit is secured by all of the issued and outstanding stock of Chemical Bank.

In conjunction with the Lake Michigan acquisition, the Company acquired securities sold under agreements to repurchase with an unaffiliated financial institution of $23.7 million as of the acquisition date. These agreements are secured by available for-sale-securities. As of December 31, 2015, these agreements had scheduled maturities of $8.3 million in 2016 and $9.1 million in 2017.

In conjunction with the acquisition of Lake Michigan on May 31, 2015, the Corporation acquired Lake Michigan Financial Capital Trust I (LMFCTI), Lake Michigan Financial Capital Trust II (LMFCTII), and Lake Michigan Financial Capital Trust III (LMFCTIII). LMFCTIII, which held the $10.0 million trust preferred security due to the Corporation, was repaid and settled as of the Lake Michigan acquisition date, and the entity was subsequently dissolved. All of the common securities of the remaining two special purpose trusts are owned by the Corporation. The trusts exist solely to issue capital securities in the form of cumulative preferred securities (trust preferred securities) with a par value of $1,000 per security. The proceeds from the sale of the trust preferred securities were used by each trust to purchase an equivalent amount of subordinated debentures from Lake Michigan. Lake Michigan guaranteed the payment of distributions on the trust preferred securities issued by LMFCTI and LMFCTII. At the acquisition date, the Corporation assumed responsibility of the guarantees.

LMFCTI issued $10.3 million in preferred securities in October 2002. This trust preferred subordinated debt, with a stated maturity date of October 2032, pays interest based on a floating rate tied to the three-month LIBOR plus 3.45% (effective interest rate based on par of 3.99% as of December 31, 2015). LMFCTII issued $8.2 million in preferred securities in May 2004. This trust preferred subordinated debt, with a stated maturity date of May 2034, pays interest based on a floating rate tied to the three-month LIBOR plus 2.7% (effective interest rate based on par of 3.24% as of December 31, 2015). Including the impact of recording these subordinated debentures at fair value at the acquisition date, the weighted-average cost of these obligations was 3.99% as of December 31, 2015. The Corporation may, at any time, redeem the LMFCTI or LMFCTII subordinated debentures at par. The Corporation has notified the respective trust's trustee of its intent to pay off these debt obligations during the first quarter of 2016.