Macatawa reported net income available to common shares of $835,000, or $0.05 per diluted share, for the fourth quarter 2010, compared to a net loss available to common shares of $9.2 million, or $0.52 per diluted share, for the fourth quarter 2009 and net income of $703,000 for the third quarter 2010. For the full year 2010, the Company's net loss available to common shares totaled $17.9 million, down from a net loss of $66.5 million for the same period in 2009.

"We are pleased with our fourth quarter profit and the progress we believe we have made in 2010," said Richard L. Postma, Chairman of Macatawa Bank Corporation. "Our results continued to reflect the process improvements and disciplined approach we began to implement in 2009. The fourth quarter of 2010 represented our third consecutive quarter of profitability, along with continued improvements in several key capital and performance metrics. These are important achievements in our continued efforts to build accountability, confidence and performance in Macatawa Bank. We must continue to focus on improvement of the Bank's capital ratios, further reduction of non-performing loans and increasing sales of other-real-estate-owned. Through the collective efforts of the Board of Directors, management and our employees, we intend to continue to move the Bank toward a position of sustained profitability in order to serve West Michigan as a strong community bank."

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Macatawa Bank Corporation 4Q Results / page 2 of 5

Over the last year, under the direction of the Board of Directors and Chairman Richard Postma, the Company has navigated a difficult banking environment and critical transition period. Under this leadership, the Bank improved business and banking principles, added experienced personnel, and bolstered the Bank's risk management functions by adding key individuals in its Special Assets and Loan Review groups. The Bank added a new Chief Credit Officer and implemented new and more disciplined lending and loan risk management policies and new procedures for loan administration and loan review. The Company also added two new directors in the fourth quarter 2010. Each of these directors brings expertise in financial and accounting matters, further strengthening the Board of Directors. Macatawa continued its focus on reducing nonperforming loans during the fourth quarter 2010 by accelerating workout strategies with some of its more stressed loan customers.

Operating Results

Net interest income for the fourth quarter 2010 totaled $12.3 million, a decrease of $153,000 from the third quarter 2010 and a decrease of $1.1 million from the fourth quarter 2009. Net interest margin was 3.38 percent, up 16 basis points from 3.22 percent on a consecutive quarter basis and up 34 basis points from 3.04 percent in the fourth quarter 2009. The fourth quarter 2010 net interest margin was positively impacted by the continued payoff of higher-cost wholesale funds.

Average interest earning assets for the fourth quarter 2010 declined $92.2 million from the third quarter 2010 and declined $346.0 million from the fourth quarter 2009, negatively impacting net interest income. The decline in assets reflected the Bank's continued focus on capital ratio maintenance, liquidity improvement, and reduction in credit exposure within certain segments of its loan portfolio. While the size of the balance sheet has decreased, the underlying profitability of the earning assets has improved as evidenced by the increase in net interest margin.

Non-interest income of $4.5 million for the fourth quarter 2010 was up $782,000 from the third quarter 2010, and up $992,000 from the fourth quarter 2009. The comparative increase was primarily due to increased gains on sales of mortgage loans, a $574,000 gain in the fourth quarter 2010 on the sale of a property that had been held for branch expansion, and income recognized on leases of other-real-estate-owned.

Non-interest expense was $15.6 million for the fourth quarter 2010, compared to $14.9 million for the third quarter 2010 and $15.9 million for the fourth quarter 2009. In the most recent quarter, costs associated with the administration and disposition of problem loans and non-performing assets were $4.2 million, compared to $3.2 million in the third quarter 2010 and $3.7 million in the fourth quarter 2009. This increase was primarily due to further write-downs in the carrying value of other-real-estate-owned. FDIC insurance assessments remained elevated at $1.0 million in the most recent quarter compared to $1.2 million in the third quarter 2010 and $1.0 million in the fourth quarter 2009, as a result of higher assessment rates implemented by the FDIC.

When excluding nonperforming asset costs and FDIC assessments, non-interest expense was $10.3 million for the most recent quarter, down from $10.5 million in the third quarter 2010 and $11.3 million in the fourth quarter 2009. Salaries and employee benefits were down $210,000 in the fourth quarter 2010 compared to the third quarter 2010 and down $476,000 from the prior year quarter as a result of a reduction in overall staffing levels due to the Company scaling its operations to respond to the impact of the prolonged economic weakness.

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Macatawa Bank Corporation 4Q Results / page 3 of 5

Asset Quality

The provision for loan losses of $400,000 for the fourth quarter 2010 declined 27 percent from $550,000 in the third quarter 2010, and declined approximately 98 percent from $21.6 million in the fourth quarter 2009. Net charge-offs were $5.2 million compared to $4.6 million for the third quarter 2010 and $15.0 million for the fourth quarter 2009.

The allowance for loan losses of $47.4 million was 3.90 percent of total loans at December 31, 2010, compared with 4.08 percent at September 30, 2010 and 3.62 percent at December 31, 2009. The loan loss reserve coverage to nonperforming loans increased to 62.9 percent of non-performing loans at December 31, 2010, compared to 61.8 percent at September 30, 2010 and 52.6 percent at December 31, 2009.

At December 31, 2010, the Company's non-performing loans were $75.4 million, the lowest level since the fourth quarter of 2007, representing 6.19 percent of total loans. This compares to $84.4 million (6.61 percent of total loans) at September 30, 2010 and $103.9 million (6.88% of total loans) at December 31, 2009. However, other-real-estate-owned is higher at $58.0 million as of December 31, 2010 compared to $54.0 million at September 30, 2010 and $37.2 million at December 31, 2009. These balances have increased as our problem loans have migrated through the normal collection process. Sales of other-real-estate-owned continued to improve as compared to 2009, with the Bank disposing of $16.8 million in real estate during 2010, compared to $7.5 million for the same period in 2009. The total of nonperforming loans and other-real-estate-owned has decreased by $7.8 million from December 31, 2009 to December 31, 2010.

A break-down of non-performing loans is shown in the table below.

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Macatawa Bank Corporation 4Q Results / page 4 of 5

Balance Sheet, Liquidity and Capital

Total assets were $1.58 billion at December 31, 2010, a decrease of $253 million from $1.83 billion at December 31, 2009. Total loans were $1.2 billion at December 31, 2010, down $294 million from $1.51 billion at December 31, 2009.

Commercial loans decreased by $238.7 million representing the majority of the decrease in total loans since December 31, 2009. The commercial real estate portfolio was reduced by $127.1 million as the Company continued its efforts to reduce exposure in these segments. Commercial and industrial loans declined by $92.8 million due, in part, to a general decline in business activity. Of the decline in commercial real estate loans, $57.5 million of the decrease was in loans to residential developers, the portfolio that has caused the majority of stress within the Company's loan portfolio.

The composition of the commercial loan portfolio is shown in the table below:

The reduction in loans since year-end 2009 allowed the Company to reduce wholesale funding during 2010, including out-of-market deposits acquired through brokers, by $158.4 million and other borrowed funds by $92.7 million. Total deposits were $1.28 billion at December 31, 2010, down $139.7 million from $1.42 billion at December 31, 2009, primarily from the run-off of brokered deposits. Customer deposit accounts remain fully insured to the highest levels available under the FDIC insurance programs.

At December 31, 2010, two of the three regulatory capital ratios for Macatawa Bank, including the tier one risk-based capital ratio and the tier one leverage capital ratio, were maintained at levels in excess of those ordinarily required to be categorized as "well capitalized" under applicable regulatory capital guidelines, but the Bank did not have capital at levels required by its Consent Order. At December 31, 2010, the Bank's total risk-based capital ratio of 9.68 percent was below the 10.0 percent minimum ordinarily required to be categorized as "well capitalized" and below the 11.0 percent minimum required by the Consent Order, but this ratio has improved since March 31, 2010 when it was 8.14 percent. Because the Bank is subject to the Consent Order, it cannot be categorized as "well capitalized" regardless of actual capital levels. The Bank needed $17.2 million of additional qualifying capital to comply with the Consent Order at December 31, 2010, compared to $43.2 million at March 31, 2010.

Mr. Postma concluded, "through a combination of improving earnings, effective balance sheet management and disciplined administration of non performing assets, we have improved the Bank's total risk-based capital ratio since its low-point at March 31, 2010. The amount of additional qualifying capital needed to comply with the Consent Order has been reduced from $43.2 million at March 31, 2010 to $17.2 million at December 31, 2010. Our goal remains to return to "well-capitalized" status, and we continue to work closely with regulators in our efforts to comply with the terms of the Consent Order."

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About Macatawa Bank / page 5 of 5

Headquartered in Holland, Michigan, Macatawa Bank Corporation is the parent company for Macatawa Bank. Through its banking subsidiary, the Company offers a full range of banking, investment and trust services to individuals, businesses, and governmental entities from a network of 26 full service branches located in communities in Kent County, Ottawa County, and northern Allegan County. Services include commercial, consumer and real estate financing, business and personal deposit services, ATM's and Internet banking services, trust and employee benefit plan services, and various investment services. The Company emphasizes its local management team and decision making, along with providing customers excellent service and superior financial products.

(Dollars in thousands except per share information)

(Dollars in thousands except per share information)