Macatawa 2Q Income Earnings
Down By Half

July 15, 2008
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HOLLANDMacatawa Bank Corp. reported 2008 second quarter net income of $2.17 million, or 13 cents per diluted share, compared with net income of $4.59 million, or 26 cents per diluted share, for the same period last year.

Net income for the first six months of 2008 totaled $4.61 million, or 27 cents per diluted share, versus net income of $9.43 million, or 54 cents per diluted share, for the first six months of 2007.

Macatawa recorded loan loss provisions of $3.5 million in the second quarter and indicated that the elevated loan loss provision led to the reduced earnings for the current quarter when compared to the prior year’s second quarter.

“As we move through 2008, local, regional and national banks continue to report significant loan losses and contingent capital plans to respond to the struggling economy and the shift occurring within the credit markets,” said Ben Smith, Chairman and CEO. “Although we are not immune to the impact this is having on bank loan portfolios, Macatawa remains profitable, well capitalized and sufficiently reserved for possible future loan losses.”

Although elevated, the company’s loan loss provision has continued to moderate since the fourth quarter of last year, Smith pointed out. He said Macatawa remains “intensely focused upon improving loan quality.”

Total assets were $2.12 billion at both June 30, 2008 and 2007. Total loans increased $41 million since June 30, 2007, primarily in consumer mortgages, to $1.77 billion at June 30, 2008. Within the commercial loan portfolio, there continues to be a shift in mix from commercial real estate loans to commercial and industrial loans, the company reported.    

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