SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

_________________

FORM 11-K

ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. [NO FEE REQUIRED]

For the fiscal year ended December 31, 2006

OR

[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED].

For the transition period from ______________ to _______________

Commission file number            000-25927      

A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Macatawa Bank 401(k) Plan

B. Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:

MACATAWA BANK CORPORATION
10753 Macatawa Drive
Holland, Michigan 49424


MACATAWA BANK
401(k) PLAN

TABLE OF CONTENTS


        PAGE
 

Report of Independent Registered Public Accounting Firm
     
1
 
   
Financial Statements for the Years Ended December 31, 2006 and 2005    
   
     Statements of Net Assets Available for Benefits    2  
   
     Statements of Changes in Net Assets Available for Benefits    3  
   
     Notes to Financial Statements    4- 9
   
Supplementary Information for the Year Ended December 31, 2006    
   
     Schedule H, Line 4i - Schedule of Assets (Held at End of Year)    10  

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

June 25, 2007

Audit Committee
Macatawa Bank 401(k) Plan
Holland, Michigan

We have audited the accompanying statements of net assets available for benefits of the Macatawa Bank 401(k) Plan (the “Plan”) as of December 31, 2006 and 2005, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Macatawa Bank 401(k) Plan as of December 31, 2006 and 2005, and the changes in net assets available for plan benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The December 31, 2006 supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic 2006 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2006 financial statements taken as a whole.

/s/ Rehmann Robson

Grand Rapids, MI

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MACATAWA BANK
401(k) PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS


December 31

2006 2005


                                 ASSETS            
Investments, at fair value   
   Mutual funds   $ 14,251,132   $ 11,307,679  
   Money market funds    319,416    -  
   Macatawa Bank Corporation common stock    1,302,111    1,272,463  
   Participant loans    535    1,949  


   
Total investments, at fair value       15,873,194     12,582,091  


   
Receivables   
   Employee contributions    5,480    -  
   Accrued dividends    4,603    37,894  


   
Total receivables       10,083     37,894  


   
Cash, non-interest bearing    37,283    31,841  


   
Total assets       15,920,560     12,651,826  


   
                              LIABILITIES   
Excess contributions payable    -    12,363  
Due to broker for securities sold    -    7,683  


   
Total liabilities       -     20,046  


   
Net assets available for benefits     $ 15,920,560   $ 12,631,780  


The accompanying notes are an integral part of these financial statements.

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MACATAWA BANK
401(k) PLAN

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS


Year Ended December 31

2006 2005


             
Additions to net assets attributed to    
   Net investment income (loss)   
     Net appreciation in aggregate fair value of  
          mutual funds   $ 847,037   $ 547,375  
     Net (depreciation) appreciation in fair value of  
          Macatawa Bank Corporation common stock    (114,125 )  232,550  
     Dividend and interest income    863,868    356,867  


   
   Total net investment income       1,596,780     1,136,792  


   
   Contributions   
     Participants'    1,368,335    1,173,877  
     Employers'    690,911    613,080  
     Rollovers    536,656    646,283  


   
   Total contributions       2,595,902     2,433,240  


   
Total additions       4,192,682     3,570,032  


   
Deductions from net assets attributed to   
   Benefits paid to participants    903,902    739,240  
   Refunds of excess contributions    -    12,363  


   
Total deductions       903,902     751,603  


   
Net increase       3,288,780     2,818,429  
   
Net assets available for benefits   
   Beginning of year    12,631,780    9,813,351  


   
   End of year     $ 15,920,560   $ 12,631,780  


The accompanying notes are an integral part of these financial statements.

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MACATAWA BANK 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS


1. DESCRIPTION OF THE PLAN AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following description of the Macatawa Bank 401(k) Plan (the “Plan”) provides only general information. Participants should refer to the Plan agreement, or Summary Plan Description for a more complete description of the Plan’s provisions.

Description of the Plan

  General

  The Plan is a defined contribution plan covering all full-time employees of Macatawa Bank Corporation (“Plan Sponsor” or “Corporation”) who have attained the age of 21 or older. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).

  Contributions

  Participants may contribute annual compensation, as defined in the Plan, up to the maximum amount allowed by the Internal Revenue Code. Participants who have attained age 50 before the Plan year are eligible to make catch-up contributions. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. The Plan’s Sponsor contributes an amount equal to 100% of the first 3% and 50% of the second 3% of base compensation that a participant contributes to the Plan. Participants direct the investment of contributions into various investment options offered by the Plan. The Plan currently offers 16 mutual funds, a money market fund and shares of Macatawa Bank Corporation common stock as investment options for participants. Contributions are subject to certain limitations.

  Contributions received from participants for 2005 are net of payments of $12,363 made in 2006 to certain active participants to return to them excess deferral contributions as required to satisfy the relevant nondiscrimination provisions of the Plan. That amount is also included in the Plan’s statement of net assets available for benefits as excess contributions payable at December 31, 2005.

  Participant Accounts

  Each participant’s account is credited with the participant’s contribution, the Plan Sponsor match, and an allocation of Plan earnings. Plan earnings are allocated based on the ratio of each participant’s account balance to the total account balance. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

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MACATAWA BANK 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS


  Vesting

  Participants are immediately vested in employee deferral and employer matching contributions, plus actual earnings thereon.

  Participant Loans

  Participant loans, although not permitted by the terms of the current Plan, result from participant rollovers from predecessor employer plans. The loans are collateralized by the balance in the participant’s account and bear interest at annual rate of 5.75%, with expected maturities through March 2007. Principal and interest is collected ratably through payroll deductions.

  Payment of Benefits

  On termination of service due to death, disability or retirement, a participant may elect to receive a lump-sum amount equal to the value of his or her vested account as defined by the Plan agreement. For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution.

  Administrative Expenses

  The Plan’s administrative expenses, including salaries, accounting, legal, recordkeeping, and trust services are paid by the Plan Sponsor and qualify as party-in-interest transactions, which are exempt from prohibited transaction rules.

Summary of Significant Accounting Policies

  Basis of Accounting

  The financial statements of the Plan are prepared using the accrual method of accounting.

  Use of Estimates

  The preparation of financial statements in conformity with generally accepted accounting principles requires the Plan’s Advisory Committee to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

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MACATAWA BANK 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS


  Investment Valuation and Income Recognition

  Mutual funds and shares of Macatawa Bank Corporation common stock are stated at fair value, based upon quoted market prices. Money market fund investment and participant loans are reported at cost, which approximates fair value.

  Unrealized appreciation or depreciation in the aggregate fair value of mutual fund investments and shares of Macatawa Bank Corporation common stock represents the net change in the difference between aggregate fair value and the cost of investments, including reinvestment of earnings. The realized gain or loss on sale of investments is the difference between the proceeds received and the average costs of investments sold.

  Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

  Management fees and operating expenses charged to the Plan for investments in mutual funds are deducted from income earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of net appreciation or an addition to net depreciation in the aggregate fair value of such investments.

  Payment of Benefits

  Benefits are recorded when paid.

2. INVESTMENTS

Investments representing 5% or more of the Plan’s net assets available for benefits are as follows at December 31:

2006 2005


             
         Investments at fair value as determined by    
         quoted market price   
         Mutual Funds  
                Dodge and Cox Stock Fund   $ 2,417,930   $ 1,532,603  
                Fidelity Diversified International Fund    1,823,804    1,160,029  
                Neuberger Berman Genesis Investor Fund    1,529,522    1,286,158  
                Fidelity Spartan U.S. Equity Index Fund    1,521,005    1,544,289  
                Columbia Acorn Fund    1,346,459    926,958  
                Fidelity Dividend Growth Fund    1,336,877    1,227,429  
                Fidelity Government Income Fund    -    672,391  
         Common Stock  
                Macatawa Bank Corporation    1,302,111    1,272,463  

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MACATAWA BANK 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS


3. RELATED PARTY TRANSACTIONS

Parties-in-interest are defined under Department of Labor (DOL) regulations as any fiduciary of the Plan, any party rendering service to the Plan, the employer, and certain others. Certain Plan investments are held in shares of common stock of the Plan sponsor, or managed by Northern Trust Corporation and, therefore, these transactions qualify as party-in-interest. The Plan’s investment in participant loans and Macatawa Bank Corporation common stock as of December 31, 2006 and 2005 represent party-in-interest investment transactions.

Macatawa Bank Corporation, through its trust department, serves as trustee, custodian, and recordkeeper for the Plan. Therefore, all transactions between the Plan and Macatawa Bank constitute party-in-interest transactions. The 61,247 and 34,977 shares of Macatawa Bank Corporation common stock held by the Plan as of December 31, 2006 and 2005 represent approximately 0.38% and 0.34% of the Corporation’s total outstanding shares of common stock, respectively.

Cash dividends of $31,996 and $18,743 were paid to the Plan by Macatawa Bank Corporation during 2006 and 2005, respectively, based on shares of common stock held by the Plan on the dates of declaration. This dividend income is included as dividends in the Statements of Changes in Net Assets Available for Benefits. A stock dividend equal to 5% and 15% of the outstanding shares of common stock was declared and paid by Macatawa Bank Corporation in 2006 and 2005, respectively. As a result of this stock dividend, Macatawa Bank Corporation issued 2,106 and 3,711 additional shares of Macatawa Bank Corporation common stock to the Plan as of December 31, 2006 and 2005, which were recorded by the Plan at the aggregate fair value of the shares of $68,024 and $123,058, respectively, on the record dates in each year.

4. INCOME TAX STATUS

The Corporation’s Board of Directors adopted the Macatawa Bank Prototype 401(k) plan document. The plan document has received an opinion letter from the Internal Revenue Service dated January 12, 2004, stating that the written form of the underlying prototype plan is qualified under Section 401(a) of the Internal Revenue Code (the “Code”) and that any employer adopting this form of the Plan will be considered to have a plan qualified under Sections 401(a) of the Code. The Plan is required to operate in conformity with the Code to maintain its qualification. The Plan’s administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes the Plan is qualified and the related trust is tax exempt.

-7-


MACATAWA BANK 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS


5. PLAN TERMINATION

Although it has not expressed any intent to do so, the Plan Sponsor has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.

6. RISKS AND UNCERTAINTIES

The Plan provides for investment options in a money market fund, various mutual funds and in shares of Macatawa Bank Corporation common stock. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits.

7. RECONCILIATION OF FINANCIAL STATEMENTS TO SCHEDULE H OF FORM 5500

Refunds of excess contributions represent amounts owed to highly compensated individuals as a result of IRS nondiscrimination testing. This amount is accrued as a plan liability for financial statement reporting purposes but recorded only when paid in the Form 5500.

The following is a reconciliation of net assets available for benefits reported in these financial statements to the amounts reported on Form 5500 at December 31, 2005:

         
               Net assets available for benefits reported  
                   in these financial statements   $ 12,631,780  
               Refunds of excess contributions    12,363  

   
               Net assets available for benefits reported on    
                   the Form 5500     $ 12,644,143  

-8-


MACATAWA BANK 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS


The following is a reconciliation of change in net assets available for benefits reported in these financial statements to the amounts reported in the Form 5500 at December 31:

2006 2005


             
               Net increase in assets available for benefits  
                   reported in these financial statements   $ 3,288,780   $ 2,818,429  
               Refunds of excess contributions    (12,363 )  12,363  


   
               Net increase in assets available for benefits    
                   reported in the Form 5500     $ 3,276,417   $ 2,830,792  


*  *  *  *  *

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SUPPLEMENTARY INFORMATION


MACATAWA BANK
401(k) PLAN

SCHEDULE H, LINE 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)

DECEMBER 31, 2006

PLAN # 001
EIN 38-3378283


(a) (b) Identity
of Issue, Borrower,
Lessor, or Similar Party
(c) Description of Investment
Including Maturity Date, Rate of
Interest, Collateral, Par or Maturity Value
(e)
Current
Value




                     
      Mutual funds   
        Dodge and Cox Funds   Dodge and Cox Stock Fund, 15,756 shares   $ 2,417,930  
        Fidelity Investments   Diversified International Fund, 49,359 shares    1,823,804  
         Neuberger Berman Genesis Investor Fund,  
        Neuberger Berman        45,849 shares    1,529,522  
        Fidelity Investments   Spartan U.S. Equity Index Fund 30,311 shares    1,521,005  
        Columbia   Columbia Acorn Fund, 45,320 shares    1,346,459  
        Fidelity Investments   Dividend Growth Fund, 42,199 shares    1,336,877  
        Fidelity Investments   Government Income Fund, 74,732 shares    750,305  
        Vanguard   Vanguard Mid-Cap Index Fund, 33,996 shares    672,447  
        Federated   Kaufman Fund, 112,425 shares    636,326  
        Value Line Mutual Funds   Value Line Income & Growth Fund, 64,996 shares    556,757  
        T. Rowe Price International   T. Rowe Price PS Balanced Fund, 19,631 shares    393,801  
        American Fund   American Funds AMCAP R5 Fund, 19,583 shares    393,034  
        T. Rowe Price International   T. Rowe Price PS Growth Fund, 11,642 shares    295,237  
        T. Rowe Price International   T. Rowe Price PS Income Fund, 15,829 shares    250,737  
        T. Rowe Price International   T. Rowe Price Growth Stock Fund, 5,808 shares    183,696  
        Wells Fargo   Wells Fargo Opportunity Fund, 3,439 shares    143,195  

   
             14,251,132  
        Money market funds   
     *     Northern Trust   Money Market Fund, 319,416 shares    319,416  
        Common stock   
     *     Macatawa Bank Corporation   Common stock, 61,247 shares    1,302,111  
        Loans   


    *     
     Participant loans   Maturing in March 2007 with annualized interest
rate of 5.75% collateralized by participants
account balances
    

535
 

   
   Total Investments        $ 15,873,194  

(*)     An asterisk in this column identifies a person known to be a party-in-interest.

-10-


SIGNATURES

        The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees of the Macatawa Bank Corporation 401(k) Plan have caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.








Dated: June 26, 2007
MACATAWA BANK CORPORATION


By: /s/ Thomas DeWitt
      ——————————————
      Thomas DeWitt

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EXHIBIT INDEX

Exhibit No. Description

23.1 Consent of Independent Registered Public Accounting Firm

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