UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 18, 2004

MACATAWA BANK CORPORATION
(Exact name of Registrant as specified in its charter)

616 820-1444
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if changed Since Last Report)

[__] Written communications pursuant to Rule 425 under the Section Act (17 CFR 230.425).
[__] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
[__] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).
[__] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Item 2.02

Results of Operations and Financial Condition.

On October 18, 2004, Macatawa Bank Corporation issued a press release announcing results for the third quarter ended September 30, 2004. A copy of the press release is attached as Exhibit 99.

The information in this Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

MACATAWA BANK CORPORATION 10753 Macatawa Drive Holland, MI 49424

NEWS RELEASE

Holland, Michigan - Macatawa Bank Corporation Reports Third Quarter Results.

Macatawa Bank Corporation today announced net income for the third quarter of 2004. Net income totaled $2.12 million, or $0.24 per diluted share, as compared to third quarter 2003 net income of $3.06 million, or $0.34 per diluted share. As previously announced in the SEC Form 8-K on October 8, 2004, the results for the third quarter of 2004 include a charge against earnings of $2.3 million ($1.5 million after-tax, or $0.17 per share) for a loss associated with a loan to a commercial borrower that has become impaired under unusual circumstances. “While we are disappointed with this loan loss, we remain confident in our business model and we continue to experience great success in both our growth and core earnings performance,” said Ben Smith, Chairman and CEO. Net income for the nine months ended September 30, 2004 was $8.33 million, or $0.93 per diluted share, compared to $8.81 million, or $0.99 per diluted share, for the same period in the prior year.

For the quarter, core deposits grew by a record $164 million as a result of both seasonal increases for business customers and success in attracting large depositors. Total loans were also up by a record $72.6 million for the quarter, or 23% on an annualized basis. “The quality and commitment of our people continue to be at the heart of the exceptional growth we have experienced in both core deposits and loans,” said Mr. Smith. “Our focus on expanding the convenience of our branch network while maintaining the highest quality customer service continues to provide new and exciting growth opportunities,” Mr. Smith added.

Earnings for the quarter were positively impacted by a significant increase in net interest income. Net interest income for the third quarter totaled $13.6 million, an increase of 25% as compared to the 2003 quarter. The increase was driven primarily by significant growth in average earning assets of $309.9 million, or 26%, to $1.48 billion for the third quarter of 2004. The effect of the growth in earning assets was slightly offset by a five basis point decline in the net interest margin to 3.66% for the current quarter. On a consecutive quarter basis, the net interest margin increased four basis points from 3.62% for the second quarter of 2004. The positive impact to the yield on loans of the two 25 basis point increases in short-term interest rates that occurred during the quarter were slightly offset by a corresponding increase in the rates paid on certain deposit account types. “We have now seen two consecutive quarters of improvement in our net interest margin and if short-term rates continue to rise, we expect this improvement to continue in future quarters,” stated Mr. Smith.

Non-interest income totaled $2.3 million for the third quarter of 2004 as compared to $2.8 million for the same quarter of 2003. Gains on the sales of mortgage loans for the third quarter of 2004 were $340,000 compared to $1.3 million for the same period in 2003. For the first nine months of 2004, gains on loan sales were down approximately 50% when compared to the same period in the prior year. The general rise in mortgage rates since the prior year, when rates were at historic lows, has resulted in a corresponding decline in mortgage loan refinancing volume. The decline in gains on mortgage loan sales was partially offset by an increase in deposit service charges and other income.

The provision for loan losses increased to $3.9 million for the quarter from $1.0 million for the third quarter of 2003 primarily related to the $2.3 million special provision taken this quarter. The remaining increase was largely related to the strong loan growth experienced during the quarter.

Non-interest expense increased to $8.9 million for the quarter as compared to $8.1 million for the third quarter of 2003. Salaries and benefits increased by $532,000 primarily reflecting an increase in staffing for the five new full-service branches and for the lending, trust and investment service departments that has occurred in the past twelve months. Despite the increase over the prior year quarter, non-interest expense remained flat on a consecutive quarter basis. The efficiency ratio improved to 56.25% for the quarter compared to 59.11% for the same quarter in 2003 and 58.31% for the second quarter of 2004. “Our revenue growth has begun to consistently exceed our non-interest expense increases. We are seeing the benefits of the investments we have made in our people and in our infrastructure,” Mr. Smith commented.

Total assets ended the quarter at $1.62 billion, an increase of $318 million, or 24% since September 30, 2003. Total deposits increased $323 million, or 32%, and total loans increased $272 million, or 25%, during the same time period. The Company’s total risk-based capital ratio was 11.1% at September 30, 2004, remaining well-capitalized under regulatory capital standards.

The unfavorable changes in asset quality ratios for the quarter reflect the effects of the loan to the commercial borrower for which the special provision for loan losses was taken. After recording a $2.8 million charge-off for this borrower, the remaining balance of $3.1 million was added to non-performing loans. Non-performing loans to total loans was 0.56% at September 30, 2004 compared to 0.29% at September 30, 2003 and annualized net charge-offs to average loans were 0.96% for the quarter compared to 0.16% for the third quarter of 2003. The allowance for loan losses represents 1.37% of total loans at September 30, 2004. Commenting on asset quality, Mr. Smith stated, “Despite the impact of this unusual commercial loan situation, our asset quality remains solid. We remain confident in the strength of our credit culture and our ability to maintain high asset quality in the future.”

Concluding on the prospects for the future, Mr. Smith stated, “We continue to experience positive momentum in both our growth and earnings and we are excited about our opportunities for the remainder of 2004.”

Conference Call
Macatawa Bank Corporation will hold its quarterly earnings conference call on Tuesday, October 19, 2004, at 10:00 A.M. Persons who wish to access the call may do so via the Internet by visiting www.macatawabank.com and clicking on the webcast link in the Investor Information section. It may also be accessed by logging on to www.streetevents.com . A replay of the call will be available for 30 days following the call.

Headquartered in Holland, Michigan, Macatawa Bank Corporation is the parent company for Macatawa Bank and Macatawa Investment Services. Through its subsidiaries, the Corporation offers a full range of banking, investment and trust services to individuals, businesses, and governmental entities from a network of 22 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 Corporation emphasizes its local management team and decision making, along with providing customers excellent service and superior financial products.

“CAUTIONARY STATEMENT: This press release contains certain forward-looking statements that involve risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting our operations, markets, products, services, and pricing. These statements include, among others, statements related to future growth and funding sources, future profitability levels, the effects on earnings of changes in interest rates and the ability to maintain high asset quality. Annualized growth rates are not intended to imply future growth at those rates. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Further information concerning our business, including additional factors that could materially affect our financial results, is included in our filings with the Securities and Exchange Commission.”

MACATAWA BANK CORPORATION
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)

(Dollars in thousands except per share information)

MACATAWA BANK CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)

(Dollars in thousands except per share information)