10753 Macatawa Drive Holland, MI 49424

Holland, Michigan — Macatawa Bank Corporation Reports 15% Increase in First Quarter Earnings

Macatawa Bank Corporation today announced net income for the first quarter of 2006. Net income for the quarter was $5.22 million, or a 15% increase over first quarter 2005 net income of $4.54 million. Diluted earnings per share totaled $0.50 for the quarter compared to $0.44 for the first quarter of 2005. The results for the first quarter represent a 1.11% ROA and a 14.34% ROE, both improvements over the first quarter of last year.

Mr. Smith commented, “Our strong results reflect our continued focus on developing and expanding relationships within our markets. This unwavering commitment to our customers and communities in Western Michigan allowed total assets to grow to over $1.9 billion as of March 31, 2006. Our success is directly attributable to the passion and determination of our people. It’s their ability to understand and react to the needs of our customers that make the difference.” The growth in total assets for the quarter was led by a $42.3 million increase in total loans, funded primarily by a $34.8 million increase in deposits.

First quarter net interest income totaled $16.3 million, an increase of $1.5 million or 10%, as compared to the first quarter of 2005. The improvement in net interest income was driven primarily by an increase in average earning assets. Average earning assets grew by 11% or $175.4 million from $1.57 billion for the first quarter of 2005 to $1.74 billion for the first quarter of 2006. The net interest margin declined slightly from 3.84% for the first quarter of 2005 to 3.78% for the first quarter of 2006. Over the past few quarters, the net interest margin has stabilized into a relatively narrow range, consistent with the Company’s move to a more balanced sensitivity to interest rate changes.

An increase in non-interest income also contributed to the increase in earnings for the quarter. Non-interest income was $3.2 million for the first quarter of 2006, an increase of $521,000 over the first quarter of 2005. Increases in financial service offerings to customers, including trust, brokerage and deposit services, more than offset a decline in gains on the sale of mortgage loans.

Non-interest expense increased to $11.1 million for the quarter as compared to $10.0 million for the first quarter of 2005. Salaries and benefits increased by $595,000 primarily related to additional staffing in each line of business and in support departments consistent with growth of the Bank. All remaining categories, including occupancy, furniture and equipment and other expense, also increased moderately during the quarter consistent with growth of the Bank.

The provision for loan losses was $700,000 for the quarter, down from $900,000 from the first quarter of 2005. “While achieving solid growth in our loan portfolios, our asset quality was exceptional,” commented Mr. Smith. Annualized net charge-offs were only 0.08% of average loans for the quarter, down from 0.18% for the first quarter of 2005. Non-performing assets to total assets remained relatively stable and were 0.36% at March 31, 2006 compared to 0.32% at March 31, 2005. The allowance for loan losses represents 1.35% of total loans at March 31, 2006.

Total assets increased $182.50 million from March 31, 2005 to $1.90 billion at March 31, 2006. Over the same twelve month period, total loans increased $163.36 million to $1.59 billion and total deposits increased $180.74 million to $1.54 billion at March 31, 2006. The Company remained well-capitalized at March 31, 2006, with a total risk-based capital ratio of 11.06%.

During the quarter, the Company took key steps in further strengthening its presence in the greater Grand Rapids market. On the West side of Grand Rapids, a second branch location in Jenison is expected to open in May. In addition, the Company is near to closing on two properties on the Southeast side of Grand Rapids. “All of these locations offer significant retail and commercial business opportunities and will provide greater convenience to existing customers,” commented Mr. Smith.

“The West Michigan economy remains impacted by its significant manufacturing base. Slow improvement has taken place, and it appears that business activity is increasing, especially in recent weeks. At Macatawa, we feel our business model positions us very well to address current economic conditions and we remain optimistic for continued success throughout 2006,” concluded Mr. Smith.

Conference Call

Macatawa Bank Corporation will hold its quarterly earnings conference call on Tuesday, April 18, 2006, 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 23 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 future level of other revenue sources. 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
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MACATAWA BANK CORPORATION
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