Macatawa Restates Earnings
Macatawa Bank Corp. filed an amended report with the Securities and Exchange Commission today restating its earnings for the second quarter ended June 30. The company amended its 10-Q financial statements in regard to an additional $17.2 million in loan charge-offs, a corresponding $15 million in loan loss provisions, and $850,000 in losses on foreclosed properties that were deemed to have existed as of June 30.
Additional provisions and losses result in a $10.3 million decrease in earnings for both the first three months and the first six months of the year. Macatawa’s second quarter earnings on an after-tax basis declined from $2.2 million in earnings to $8.1 million in net losses. Earnings for the first half of the year declined from $4.6 million in earnings to $5.7 million in net losses.
According to the company, the additional provisions and losses are a result of continued weakness in the bank’s portfolio of real estate loans. In connection with the restatement, Macatawa has re-evaluated the effectiveness of its internal controls over financial reporting, the company told the SEC.
Macatawa will hold its third-quarter conference call at 10 a.m. on Monday. BJX