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Macatawa Bank Corporation (MCBC)
9.20 0.00 (0.00%)
After hours: 4:00PM EST
Chart Events
Performance Outlook
| Previous Close | 9.07 |
| Open | 9.02 |
| Bid | 8.60 x 800 |
| Ask | 9.21 x 1100 |
| Day's Range | 9.02 - 9.24 |
| 52 Week Range | 6.01 - 10.38 |
| Volume | 69,165 |
| Avg. Volume | 85,740 |
| Market Cap | 314.617M |
| Beta (5Y Monthly) | 0.82 |
| PE Ratio (TTM) | 10.45 |
| EPS (TTM) | 0.88 |
| Earnings Date | Apr 21, 2021 - Apr 26, 2021 |
| Forward Dividend & Yield | 0.32 (3.53%) |
| Ex-Dividend Date | Feb 09, 2021 |
| 1y Target Est | 8.75 |
Fair Value
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- Simply Wall St.
If You Had Bought Macatawa Bank (NASDAQ:MCBC) Shares Five Years Ago You'd Have Earned 47% Returns
The main point of investing for the long term is to make money. Furthermore, you'd generally like to see the share...
- GlobeNewswire
Macatawa Bank Corporation Declares Quarterly Dividend
HOLLAND, Mich., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Macatawa Bank Corporation (Nasdaq: MCBC) (the "Company" or "Macatawa") today announced that its Board of Directors has declared a quarterly cash dividend of $0.08 per share on its common stock to be paid on February 25, 2021 to shareholders of record on February 10, 2021. Despite the economic challenges posed by the COVID-19 pandemic, Macatawa has continued to perform well. This dividend reflects the strong financial condition and earnings performance of the Company. About Macatawa Bank CorporationMacatawa Bank Corporation is the bank holding company for its wholly-owned subsidiary bank, Macatawa Bank. Headquartered in Holland, Mich., Macatawa Bank offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities from a network of 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties. The bank is recognized for its local management team and decision making, along with providing customers excellent service, a rewarding experience and superior financial products. Macatawa Bank has been recognized for the past ten consecutive years as one of “West Michigan’s 101 Best and Brightest Companies to Work For”. For more information, visit www.macatawabank.com. CAUTIONARY STATEMENT: This press release contains forward-looking statements that are based on management's current beliefs, expectations, assumptions, estimates, plans and intentions. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. The declaration and payment of each future dividend to common shareholders will be considered by the Board of Directors in its discretion and will depend on a number of factors, including our financial condition, liquidity, profits, anticipated profitability and economic conditions within our markets. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed in or implied by such forward-looking statements. Macatawa Bank Corporation does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. Risk factors include, but are not limited to, the risk factors described in "Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2019 and in “Item 1A – Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement. CONTACT: Contact: Jon Swets, CFO 616-494-7645
- GlobeNewswire
Macatawa Bank Corporation Reports Fourth Quarter and Full Year 2020 Results
HOLLAND, Mich., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for Macatawa Bank (collectively, the “Company”), today announced its results for the fourth quarter and full year of 2020. Net income of $9.0 million in fourth quarter 2020 versus $8.2 million in fourth quarter 2019 – up 10%Full year 2020 net income of $30.2 million versus $32.0 million in 2019 – down just 6% despite COVID-19 pandemic challengesProvision for loan losses of $800,000 in the fourth quarter 2020 versus no provision in the fourth quarter 2019, due to additional qualitative allocations for effects of COVID-19 pandemic on economic conditionsNet interest margin increased 26 basis points to 2.69% during the fourth quarter 2020 primarily due to unamortized fees recognized upon forgiveness of $113.5 million of Paycheck Protection Program (“PPP”) loans in the quarterGrowth in non-interest income of $2.0 million (39%) from fourth quarter 2019 driven by increased gains on sales of mortgage loansLoan portfolio balances up by $43.7 million (3%) from fourth quarter 2019, driven by PPP loansOver 99% of loan balances modified under CARES Act have returned to contractual terms at December 31, 2020Core deposit balances up by $545.3 million (31%) from fourth quarter 2019Capital and liquidity levels increased further during the quarter and remain strong The Company reported net income of $9.0 million, or $0.26 per diluted share, in the fourth quarter 2020 compared to $8.2 million, or $0.24 per diluted share, in the fourth quarter 2019. For the full year 2020, the Company reported net income of $30.2 million, or $0.88 per diluted share, compared to $32.0 million, or $0.94 per diluted share, for the same period in 2019. "We are pleased to report solid profitability for the fourth quarter of 2020 and for the full year 2020,” said Ronald L. Haan, President and CEO of the Company. “The COVID-19 pandemic has continued to have a significant impact on our community, but the Company has again proven resilient and consistent in serving the financial needs of our customers and our community. We were active participants in the Small Business Administration’s Paycheck Protection Program (PPP) and originated 1,738 PPP loans totaling $346.7 million in 2020. The loans were distributed to many local small businesses in order to protect jobs and allow continued paychecks to employees in those companies. The SBA distributed $113.5 million in forgiveness disbursements related to these PPP loans during the fourth quarter 2020. We are participating in this program again in 2021 as reauthorized by Congress. Despite a challenging environment, we produced $9.0 million in earnings for the fourth quarter and $30.2 million for the full year 2020. Mortgage gains in the fourth quarter of 2020 were over three times the level achieved a year ago and offset much of the reduction in net interest income caused by the decrease in market interest rates in 2020. An increase in provision for loan losses was the primary reason for the reduction in net income in the full year 2020 compared to 2019, as we increased our allowance for loan losses due to effects of the COVID-19 pandemic on economic conditions.” Mr. Haan concluded: "We continue to monitor challenges relating to the impact of COVID-19 on our customers and our business. We have actively worked with our borrowers to provide payment relief where possible, and over 99 percent of the balance of loans that had been modified during the COVID-19 pandemic have either paid off or have returned to their contractual loan payment terms. We look forward to further supporting the communities we serve through additional PPP lending, and we believe our strong balance sheet should provide the strength and stability to weather the remainder of these difficult times.” Operating ResultsNet interest income for the fourth quarter 2020 totaled $16.5 million, an increase of $1.8 million from the third quarter 2020 and an increase of $838,000 from the fourth quarter 2019. Net interest margin for the fourth quarter 2020 was 2.69 percent, up 26 basis points from the third quarter 2020, and down 55 basis points from the fourth quarter 2019. Net interest income for the fourth quarter 2020 benefitted from amortization of $3.2 million in fees from loans issued under the PPP in the second and third quarters of 2020. These fees are amortized over the loans’ contractual maturity, which is 24 months or 60 months, as applicable. Upon SBA forgiveness, the remaining unamortized fees are recognized into interest income. At December 31, 2020, the Company had approved and received forgiveness disbursements from the SBA on 765 loans with balances totaling $113.5 million. The Company expects the related fee income amortization to continue to be elevated in the first quarter of 2021 as the SBA continues to process the larger, more complex, forgiveness applications, which will positively impact net interest income. Net interest margin was negatively impacted in the fourth quarter 2020 versus the third quarter 2020 by carrying significantly higher balances of federal funds sold due to the seasonal increase in deposits from municipal customers typically experienced. These balances, which earn only 10 basis points in interest, increased by $106.3 million, on average, from the third quarter 2020 and caused an 11 basis point decrease in net interest margin in the fourth quarter 2020. The most significant factor in the 55 basis point decrease in net interest margin from the fourth quarter 2019 to the fourth quarter 2020 was the impact of the 225 basis point decrease in the federal funds rate. Floor rates established by the Company on its variable rate loans over recent years served to soften the negative impact on net interest income of these federal funds rate decreases. Without these floors, net interest income for the quarter would have been lower than stated by approximately $1.0 million. Average interest earning assets for the fourth quarter 2020 increased $41.7 million from the third quarter 2020 and were up $526.4 million from the fourth quarter 2019. Increases in deposit balances, including seasonal municipal deposits and business customers holding higher balances at year end, accounted for the increase from third quarter 2020. Non-interest income increased $980,000 in the fourth quarter 2020 compared to the third quarter 2020 and increased $2.0 million from the fourth quarter 2019. Gains on sales of mortgage loans in the fourth quarter 2020 were up $886,000 compared to the third quarter 2020 and were up $1.7 million from the fourth quarter 2019. The Company originated $36.2 million in mortgage loans for sale in the fourth quarter 2020 compared to $40.8 million in the third quarter 2020 and $28.6 million in the fourth quarter 2019. Deposit service charges were up $86,000 in the fourth quarter 2020 compared to the third quarter 2020 and were down $74,000 compared to the fourth quarter 2019. These fees are lower than in recent years due to lower overdraft fees as customers have generally retained higher deposit balances due to uncertainty related to the COVID-19 pandemic. Non-interest expense was $12.0 million for the fourth quarter 2020, compared to $11.5 million for the third quarter 2020 and $10.6 million for the fourth quarter 2019. The largest component of non-interest expense was salaries and benefit expenses. Salaries and benefit expenses were up $113,000 compared to the third quarter 2020 and were up $809,000 compared to the fourth quarter 2019. The increases compared to the fourth quarter 2019 were due to a combination of factors, including a higher level of salary and other compensation from staffing changes and merit increases, increased bonus accrual and variable based compensation from higher mortgage production and a higher level of medical insurance expense. The table below identifies the primary components of the changes in salaries and benefits between periods. Dollars in 000s Q4 2020 toQ3 2020 Q4 2020ToQ4 2019 Salaries and other compensation $70 $259 Salary deferral from commercial loans (31) (27)Bonus accrual 152 320 Mortgage production – variable comp 51 129 401k matching contributions (30) (4)Medical insurance costs (99) 132 Total change in salaries and benefits $113 $809 Nonperforming asset expenses remained low in the fourth quarter 2020 at just $12,000 compared to $25,000 in the third quarter 2020 and $139,000 in the fourth quarter 2019. FDIC assessment expense was $194,000 in the fourth quarter 2020 and $131,000 in the third quarter 2020. There was no FDIC assessment expense in the fourth quarter 2019 as the FDIC assessment credits fully covered the assessment in that quarter. All of the Company’s FDIC assessment credits had been applied by the second quarter 2020, so expense increased in the last three quarters of 2020. Data processing expenses were up $287,000 in the fourth quarter 2020 compared to the third quarter 2020 and were up $295,000 compared to the fourth quarter 2019 due to online banking conversion related expenses incurred in the fourth quarter 2020. Other categories of non-interest expense were relatively flat compared to the third quarter 2020 and the fourth quarter 2019 due to a continued focus on expense management. Federal income tax expense was $1.8 million for the fourth quarter 2020 compared to $1.6 million for the third quarter 2020 and $1.9 million for the fourth quarter 2019. Federal income tax expense for the fourth quarter 2020 benefitted from the reversal of $92,000 deferred tax valuation allowance at the end of 2020. The effective tax rate was 16.8 percent for the fourth quarter 2020, compared to 18.5 percent for the third quarter 2020 and 19.2 percent for the fourth quarter 2019. Asset QualityA provision for loan losses of $800,000 was recorded in the fourth quarter 2020 compared to $500,000 in the third quarter 2020 and no provision taken in the fourth quarter 2019. Net loan recoveries for the fourth quarter 2020 were $50,000, compared to third quarter 2020 net loan recoveries of $203,000 and fourth quarter 2019 net loan recoveries of $55,000. At December 31, 2020, the Company had experienced net loan recoveries in twenty-two of the past twenty-four quarters. Total loans past due on payments by 30 days or more amounted to $581,000 at December 31, 2020, up slightly from $524,000 at September 30, 2020 and up from $405,000 at December 31, 2019. Delinquency as a percentage of total loans was 0.04 percent at December 31, 2020, well below the Company’s peer level. The allowance for loan losses of $17.4 million was 1.22 percent of total loans at December 31, 2020, compared to 1.07 percent of total loans at September 30, 2020, and 1.24 percent at December 31, 2019. The ratio at December 31, 2020 and at September 30, 2020 includes the PPP loans originated in the second and third quarters, which are fully guaranteed by the SBA and receive no allowance allocation. The ratio at December 31, 2020 and September 30, 2020 excluding PPP loans was 1.45 percent and 1.38 percent, respectively. The coverage ratio of allowance for loan losses to nonperforming loans continued to be strong and significantly exceeded 1-to-1 coverage at 33-to-1 as of December 31, 2020. The CARES Act enacted in the first quarter of 2020 allowed the Company to provide payment relief to borrowers that were current on their loan terms at December 31, 2019 without being required to identify those loans as troubled debt restructurings. The Company granted 733 of these modifications with principal balances totaling $337.2 million in 2020, the large majority of which were granted an interest only period of 90 days. Some borrowers were granted an additional 90 day modification. At December 31, 2020, over 99 percent of the modifications granted had expired and the loans were back to their contractual terms. The table below shows the number of loans and balances that were under such modifications as of the end of the quarter for the dates indicated. Dollars in 000s Number ofCOVID-19Modifications Balance ofCOVID-19ModificationsMarch 31, 2020 176 $87,917June 30, 2020 599 297,269September 30, 2020 26 79,894December 31, 2020 6 2,018 At December 31, 2020, the Company's nonperforming loans were $533,000, representing 0.04 percent of total loans. This compares to $195,000 (0.01 percent of total loans) at September 30, 2020 and $203,000 (0.01 percent of total loans) at December 31, 2019. Other real estate owned and repossessed assets were $2.5 million at December 31, 2020, compared to $2.6 million at September 30, 2020 and $2.7 million at December 31, 2019. Total non-performing assets, including other real estate owned and nonperforming loans, were $3.1 million, or 0.12 percent of total assets, at December 31, 2020. Total nonperforming assets, including other real estate owned and nonperforming loans, decreased by $119,000 from December 31, 2019 to December 31, 2020. A break-down of non-performing loans is shown in the table below. Dollars in 000s Dec 31, 2020 Sept 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Commercial Real Estate $438 $97 $2,857 $5,908 $98 Commercial and Industrial --- --- --- 1,211 --- Total Commercial Loans 438 97 2,857 7,119 98 Residential Mortgage Loans 95 98 100 103 105 Consumer Loans --- --- --- 8 --- Total Non-Performing Loans $533 $195 $2,957 $7,230 $203 A break-down of non-performing assets is shown in the table below. Dollars in 000s Dec 31, 2020 Sept 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Non-Performing Loans $533 $195 $2,957 $7,230 $203 Other Repossessed Assets --- --- --- --- --- Other Real Estate Owned 2,537 2,624 2,624 2,626 2,748 Total Non-Performing Assets $3,070 $2,819 $5,581 $9,856 $2,951 Balance Sheet, Liquidity and Capital Total assets were $2.64 billion at December 31, 2020, an increase of $133.3 million from $2.51 billion at September 30, 2020 and an increase of $573.3 million from $2.07 billion at December 31, 2019. Assets were elevated at December 31, 2020 and September 30, 2020 due to customers holding a higher level of deposits during the COVID-19 pandemic, including unused balances from PPP loan proceeds, particularly in the third quarter 2020. Total loans were $1.43 billion at December 31, 2020, a decrease of $113.0 million from $1.54 billion at September 30, 2020 and an increase of $43.7 million from $1.39 billion at December 31, 2019. Commercial loans increased by $119.6 million from December 31, 2019 to December 31, 2020, partially offset by a decrease of $61.5 million in the residential mortgage portfolio, and a decrease of $14.4 million in the consumer loan portfolio. Commercial real estate loans decreased by $46.3 million, commercial and industrial loans decreased by $63.2 million and PPP loans increased by $229.1 million, net of SBA forgiveness received, during the same period. The composition of the commercial loan portfolio is shown in the table below: Dollars in 000s Dec 31, 2020 Sept 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Construction and Development $118,665 $121,578 $127,094 $135,648 $134,710 Other Commercial Real Estate 433,508 437,345 442,862 457,003 463,748 Commercial Loans Secured by Real Estate 552,173 558,923 569,956 592,651 598,458 Commercial and Industrial 436,331 413,702 405,093 527,590 499,572 Paycheck Protection Program 229,079 339,216 335,668 --- --- Total Commercial Loans $1,217,583 $1,311,841 $1,310,717 $1,120,241 $1,098,030 Total deposits were $2.30 billion at December 31, 2020, up $128.0 million, or 6 percent, from $2.22 billion at September 30, 2020 and were up $545.3 million, or 31 percent, from $1.75 billion at December 31, 2019. Demand deposits were up $153.8 million in the fourth quarter 2020 compared to the third quarter 2020 and were up $490.5 million compared to the fourth quarter 2019. Money market deposits and savings deposits were down $14.3 million from the third quarter 2020 and were up $102.5 million from the fourth quarter 2019. Certificates of deposit were down $11.4 million at December 31, 2020 compared to September 30, 2020 and were down $47.7 million compared to December 31, 2019 as customers reacted to changes in market interest rates. As deposit rates have dropped, the Company has experienced some shifting between deposit types and, overall, deposit customers are holding higher levels of liquid deposit balances in the low interest rate environment and due to uncertainty related to the COVID-19 pandemic. The Company continues to be successful at attracting and retaining core deposit customers. Customer deposit accounts remain insured to the highest levels available under FDIC deposit insurance. The Company's total risk-based regulatory capital ratio at December 31, 2020 was higher than the ratios at both September 30, 2020 and December 31, 2019. Macatawa Bank’s risk-based regulatory capital ratios continue to be at levels comfortably above those required to be categorized as “well capitalized” under applicable regulatory capital guidelines. As such, the Bank was categorized as "well capitalized" at December 31, 2020. About Macatawa BankHeadquartered in Holland, Mich., Macatawa Bank offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities from a network of 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties. The bank is recognized for its local management team and decision making, along with providing customers excellent service, a rewarding experience and superior financial products. Macatawa Bank has been recognized for ten years as “West Michigan’s 101 Best and Brightest Companies to Work For”. For more information, visit www.macatawabank.com. CAUTIONARY STATEMENT: This press release contains forward-looking statements that are based on management's current beliefs, expectations, assumptions, estimates, plans and intentions. Forward-looking statements are identifiable by words or phrases such as “anticipates,” "believe," "expect," "may," "should," "will," ”intend,” "continue," "improving," "additional," "focus," "forward," "future," "efforts," "strategy," "momentum," "positioned," and other similar words or phrases. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to risks and uncertainties related to, and the impact of, the global coronavirus (COVID-19) pandemic on the business, financial condition and results of operations of our company and our customers, trends in our key operating metrics and financial performance, future levels of earnings and profitability, future levels of earning assets, future asset quality, future growth, and future net interest margin. All statements with references to future time periods are forward-looking. Management's determination of the provision and allowance for loan losses, the appropriate carrying value of intangible assets (including deferred tax assets) and other real estate owned and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involves judgments that are inherently forward-looking. Our ability to sell other real estate owned at its carrying value or at all, reduce non-performing asset expenses, utilize our deferred tax asset, successfully implement new programs and initiatives, increase efficiencies, maintain our current level of deposits and other sources of funding, maintain liquidity, respond to declines in collateral values and credit quality, improve profitability, and produce consistent core earnings is not entirely within our control and is not assured. The future effect of changes in the real estate, financial and credit markets and the national and regional economy on the banking industry, generally, and Macatawa Bank Corporation, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed in or implied by such forward-looking statements. Macatawa Bank Corporation does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. Risk factors include, but are not limited to, the risk factors described in “Part II, Item 1A – Risk Factors” in our Quarterly Report on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020 and in "Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2019. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement. MACATAWA BANK CORPORATIONCONSOLIDATED FINANCIAL SUMMARY(Unaudited)(Dollars in thousands except per share information) Quarterly Twelve Months Ended 4th Qtr 3rd Qtr 4th Qtr December 31EARNINGS SUMMARY 2020 2020 2019 2020 2019 Total interest income$17,401 $15,822 $18,435 $67,224 $75,942 Total interest expense 888 1,148 2,760 5,687 12,455 Net interest income 16,513 14,674 15,675 61,537 63,487 Provision for loan losses 800 500 - 3,000 (450)Net interest income after provision for loan losses 15,713 14,174 15,675 58,537 63,937 NON-INTEREST INCOME Deposit service charges 1,073 987 1,147 4,030 4,415 Net gains on mortgage loans 2,432 1,546 697 6,477 2,347 Trust fees 957 921 999 3,758 3,812 Other 2,610 2,638 2,246 9,711 9,154 Total non-interest income 7,072 6,092 5,089 23,976 19,728 NON-INTEREST EXPENSE Salaries and benefits 6,593 6,480 5,784 25,530 24,679 Occupancy 971 1,026 940 3,955 3,994 Furniture and equipment 974 967 823 3,678 3,420 FDIC assessment 194 131 - 400 239 Problem asset costs, including losses and (gains) 12 25 139 115 253 Other 3,222 2,904 2,957 12,047 11,639 Total non-interest expense 11,966 11,533 10,643 45,725 44,224 Income before income tax 10,819 8,733 10,121 36,788 39,441 Income tax expense 1,822 1,613 1,949 6,623 7,462 Net income$8,997 $7,120 $8,172 $30,165 $31,979 Basic earnings per common share$0.26 $0.21 $0.24 $0.88 $0.94 Diluted earnings per common share$0.26 $0.21 $0.24 $0.88 $0.94 Return on average assets 1.39% 1.12% 1.59% 1.27% 1.59%Return on average equity 15.24% 12.29% 15.27% 13.19% 15.66%Net interest margin (fully taxable equivalent) 2.69% 2.43% 3.24% 2.75% 3.38%Efficiency ratio 50.74% 55.54% 51.26% 53.47% 53.14% BALANCE SHEET DATA December 31 September 30 December 31Assets 2020 2020 2019 Cash and due from banks $31,480 $28,294 $31,942 Federal funds sold and other short-term investments 752,256 504,706 240,508 Debt securities available for sale 236,832 229,928 225,249 Debt securities held to maturity 79,468 91,394 82,720 Federal Home Loan Bank Stock 11,558 11,558 11,558 Loans held for sale 5,422 3,508 3,294 Total loans 1,429,331 1,542,335 1,385,627 Less allowance for loan loss 17,408 16,558 17,200 Net loans 1,411,923 1,525,777 1,368,427 Premises and equipment, net 43,254 43,733 43,417 Bank-owned life insurance 42,516 42,368 42,156 Other real estate owned 2,537 2,624 2,748 Other assets 24,780 24,828 16,751 Total Assets $2,642,026 $2,508,718 $2,068,770 Liabilities and Shareholders' Equity Noninterest-bearing deposits $809,437 $738,471 $482,499 Interest-bearing deposits 1,489,150 1,432,108 1,270,795 Total deposits 2,298,587 2,170,579 1,753,294 Other borrowed funds 70,000 70,000 60,000 Long-term debt 20,619 20,619 20,619 Other liabilities 12,977 13,655 17,388 Total Liabilities 2,402,183 2,274,853 1,851,301 Shareholders' equity 239,843 233,865 217,469 Total Liabilities and Shareholders' Equity $2,642,026 $2,508,718 $2,068,770 MACATAWA BANK CORPORATIONSELECTED CONSOLIDATED FINANCIAL DATA(Unaudited)(Dollars in thousands except per share information) Quarterly Year to Date 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 2020 2020 2020 2020 2019 2020 2019 EARNINGS SUMMARY Net interest income $16,513 $14,674 $15,047 $15,303 $15,675 $61,537 $63,487 Provision for loan losses 800 500 1,000 700 - 3,000 (450)Total non-interest income 7,072 6,092 5,854 4,959 5,089 23,976 19,728 Total non-interest expense 11,966 11,533 10,504 11,722 10,643 45,725 44,224 Federal income tax expense 1,822 1,613 1,759 1,429 1,949 6,623 7,462 Net income $8,997 $7,120 $7,638 $6,411 $8,172 $30,165 $31,979 Basic earnings per common share $0.26 $0.21 $0.22 $0.19 $0.24 $0.88 $0.94 Diluted earnings per common share $0.26 $0.21 $0.22 $0.19 $0.24 $0.88 $0.94 MARKET DATA Book value per common share $7.01 $6.86 $6.72 $6.56 $6.38 $7.01 $6.38 Tangible book value per common share $7.01 $6.86 $6.72 $6.56 $6.38 $7.01 $6.38 Market value per common share $8.37 $6.53 $7.82 $7.12 $11.13 $8.37 $11.13 Average basic common shares 34,154,820 34,109,901 34,108,982 34,106,719 34,080,275 34,120,275 34,056,200 Average diluted common shares 34,154,820 34,109,901 34,108,982 34,106,719 34,080,275 34,120,275 34,056,200 Period end common shares 34,197,519 34,101,320 34,114,901 34,107,995 34,103,542 34,197,519 34,103,542 PERFORMANCE RATIOS Return on average assets 1.39% 1.12% 1.31% 1.27% 1.59% 1.27% 1.59%Return on average equity 15.24% 12.29% 13.50% 11.63% 15.27% 13.19% 15.66%Net interest margin (fully taxable equivalent) 2.69% 2.43% 2.74% 3.25% 3.24% 2.75% 3.38%Efficiency ratio 50.74% 55.54% 50.26% 57.85% 51.26% 53.47% 53.14%Full-time equivalent employees (period end) 328 327 335 331 325 328 325 ASSET QUALITY Gross charge-offs $22 $24 $4,183 $39 $33 $4,268 $279 Net charge-offs/(recoveries) $(50) $(203) $4,034 $(989) $(55) $2,792 $(774)Net charge-offs to average loans (annualized) -0.01% -0.05% 1.03% -0.29% -0.02% 0.19% -0.06%Nonperforming loans $533 $195 $2,957 $7,230 $203 $533 $203 Other real estate and repossessed assets $2,537 $2,624 $2,624 $2,626 $2,748 $2,537 $2,748 Nonperforming loans to total loans 0.04% 0.01% 0.19% 0.52% 0.01% 0.04% 0.01%Nonperforming assets to total assets 0.12% 0.11% 0.23% 0.49% 0.14% 0.12% 0.14%Allowance for loan losses $17,408 $16,558 $15,855 $18,889 $17,200 $17,408 $17,200 Allowance for loan losses to total loans 1.22% 1.07% 1.01% 1.35% 1.24% 1.22% 1.24%Allowance for loan losses to total loans (excluding PPP loans) 1.45% 1.38% 1.29% 1.35% 1.24% 1.45% 1.24%Allowance for loan losses to nonperforming loans 3266.04% 8491.28% 536.19% 261.26% 8472.91% 3266.04% 8472.91% CAPITAL Average equity to average assets 9.11% 9.07% 9.68% 10.93% 10.42% 9.62% 10.17%Common equity tier 1 to risk weighted assets (Consolidated) 15.79% 15.30% 14.92% 13.43% 13.46% 15.79% 13.45%Tier 1 capital to average assets (Consolidated) 9.89% 9.78% 10.49% 11.90% 11.49% 9.89% 11.49%Total capital to risk-weighted assets (Consolidated) 18.29% 17.74% 17.30% 15.81% 15.78% 18.29% 15.77%Common equity tier 1 to risk weighted assets (Bank) 16.67% 16.18% 15.81% 14.23% 14.26% 16.67% 14.25%Tier 1 capital to average assets (Bank) 9.63% 9.52% 10.21% 11.56% 11.15% 9.63% 11.15%Total capital to risk-weighted assets (Bank) 17.84% 17.28% 16.87% 15.39% 15.33% 17.84% 15.32%Common equity to assets 9.08% 9.32% 9.36% 11.01% 10.52% 9.08% 10.51%Tangible common equity to assets 9.08% 9.32% 9.36% 11.01% 10.52% 9.08% 10.51% END OF PERIOD BALANCES Total portfolio loans $1,429,331 $1,542,335 $1,562,688 $1,395,341 $1,385,627 $1,429,331 $1,385,627 Earning assets 2,510,882 2,376,943 2,316,213 1,912,400 1,943,356 2,510,882 1,943,356 Total assets 2,642,026 2,508,718 2,451,148 2,031,090 2,068,770 2,642,026 2,068,770 Deposits 2,298,587 2,170,579 2,118,291 1,705,380 1,753,294 2,298,587 1,753,294 Total shareholders' equity 239,843 233,865 229,338 223,580 217,469 239,843 217,469 AVERAGE BALANCES Total portfolio loans $1,481,054 $1,542,838 $1,571,544 $1,384,465 $1,377,051 $1,495,068 $1,372,905 Earning assets 2,457,746 2,416,072 2,216,193 1,897,236 1,931,333 2,247,850 1,887,101 Total assets 2,590,875 2,554,198 2,338,888 2,017,823 2,055,398 2,376,523 2,008,302 Deposits 2,249,679 2,215,509 2,007,258 1,701,994 1,727,946 2,044,643 1,692,935 Total shareholders' equity 236,127 231,702 226,288 220,538 214,112 228,692 204,191 CONTACT: Contact: Jon Swets, CFO 616-494-7645
