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Macatawa Bank earns $2.6M in 2Q13
Holland-based Macatawa Bank Corp. has released its earnings for the second quarter of 2013.
Macatawa Bank (NASDAQ: MCBC) reported second-quarter earnings Thursday of $2.6 million, 10 cents per diluted share, or $3.8 million before taxes compared to $3.2 million before taxes in the same quarter last year.
Management said the growth in earnings was due to significant reduction in costs associated with non-performing assets — down 59 percent from a year ago, while total non-performing assets decreased by $24.3 million, or 30 percent.
“The company's results for the second quarter 2013 reflect improved performance,” said Richard L. Postma, chairman of the Macatawa board. “Once again, our earnings on a pre-tax, pre-provision-for-loan-losses basis were better this quarter compared to the second quarter of the prior year.”
For the first six months of 2013, the bank reported earnings of $5.1 million, or 19 cents per diluted share, compared to $7.7 million, or 28 cents, for the same period in 2012.
The bank also reported continued strengthening in loan portfolio quality, with a decrease in non-performing loans from a year ago, improvement in weighted average grade of commercial loans and continued low past-due loan levels. The net charge-off of bad loans totaled $239,000 for the quarter, and there were net-loan recoveries in two of the last four quarters.
The bank said its strong retail banking results were marked by continued high mortgage loan origination volumes, and capital continued to grow, with ratios at their highest level in company history.