Macatawa Bank revised results
HOLLAND — Macatawa Bank Corp. (Nasdaq:MCBC) filed its report on Form 10-Q for the quarter ended June 30, 2009, with the Securities and Exchange Commission.
For the second quarter of 2009, the company revised its results compared to those announced in a press release July 20, 2009. This revision arises from additional provisions for loan losses due to real estate appraisals of collateral for certain loans received by the company between the July 20, 2009, release and the date of filing the Form 10-Q for the quarter ended June 30, 2009. As required by accounting principles, the company has recorded this charge against earnings and revised the financial statements included with the press release.
The company reported a net loss of $30.4 million in the Form 10-Q for the second quarter of 2009 as compared to a loss of $18.6 in its press release. For the first six months of 2009, the company reported a net loss of $34.5 million in the Form 10-Q as compared to a net loss of $22.7 million in its press release.
"Subsequent to issuing our press release on July 20, 2009, we received additional appraisals and other information that required us to make adjustments to the provision for loan losses, said Ronald L. Haan, co-CEO of Macatawa Bank Corp., said in a news release. “Accounting principles require that values of certain assets be marked to an exit price as if it was sold on the date of the report. In the current rapidly changing real estate market, valuation estimates are difficult, yet continue to reflect declines in value. The additional provisions for loan losses are unrealized losses that are management's best estimate of the inherent probable losses in the portfolio. Actual losses will ultimately be determined by future events that will likely be linked to the future condition of the general economy and real estate markets."
Shareholders' equity at quarter end, June 30, 2009, was $116.6 million. The company and its wholly owned subsidiary, Macatawa Bank, continue to maintain capital levels in excess of regulatory minimums for well capitalized bank holding companies and banks.