Macatawa Restates Earnings

October 17, 2008
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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

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