10753 Macatawa Drive Holland, MI 49424

Macatawa Bank Corporation Reports Third Quarter Earnings
Files Lawsuit to Recover Previously Reported Loan Loss

Holland, Michigan, October 15, 2007 — Macatawa Bank Corporation today announced net income for the third quarter of 2007.

Net income for the quarter was $2.46 million, or $0.14 per diluted share, compared to net income of $6.01 million, or $0.35 per diluted share, for the third quarter of 2006. Net income for the first nine months of 2007 totaled $11.88 million, or $0.68 per diluted share, compared to net income of $16.99 million, or $0.98 per diluted share, for the nine months ended September 30, 2006.

“This is proving to be a challenging year for financial institutions across the country, and Macatawa Bank Corporation is no exception,” commented Ben Smith, Chairman and CEO. “These results are not where we want them to be. The third quarter of 2006 was the single best quarter in the history of the Company, which makes the year-over-year comparison particularly disappointing.”

The Company’s third-quarter 2007 earnings are lower than anticipated because it made extra provisions for loan losses related to residential land development loans. This type of loan is utilized by developers to build housing communities, and many of these developments are underperforming. The residential real estate market throughout the country has declined. In Michigan, this decline is compounded by continued softness in the State’s economy.

The provision for loan losses was $3.6 million for the quarter compared to $490,000 for the third quarter of 2006. The Company’s non-performing loans increased to $48.7 million and represent about 2.8 percent of total loans at September 30, 2007. The majority of the increase was in loans to residential land developers.

“We felt it was fiscally prudent to increase our loan-loss provision for the third quarter because of these challenging market conditions,” Mr. Smith said. “It’s important to note that residential development loans are small relative to our overall portfolio, accounting for approximately 14 percent of our loans. The remaining 86 percent of the Company’s loan portfolio, which includes commercial, industrial, retail and individual mortgages, continues to perform well.”

Macatawa Bank has also filed a lawsuit to recover approximately $4.7 million in commercial loans to Grand Rapids resident Michael Vorce and two of his businesses. The lawsuit, which was filed today, October 15, in Kent County Circuit Court, alleges breach of contract, fraud and unjust enrichment against Vorce in connection to loans that he and his business entities obtained from the bank and then failed to repay.

“We believe these loans were falsely secured with collateral that does not exist,” said Phil Koning, President. “For the past seven months, Macatawa Bank has led a group of affected banks in collection efforts to mitigate our losses.

“We reported these impaired loans in our fourth-quarter and year-end financial results, taking a one-time charge against earnings that was recorded entirely in 2006. At that time, we told our shareholders and employees that we would aggressively seek to recover these funds. In addition to our ongoing collection efforts, today’s lawsuit, which is also asking the courts for interest and attorneys’ fees is another step in that direction.”

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Macatawa Bank 3Q Results / page 2 of 3

Third quarter net interest income totaled $15.8 million, a decrease of $1.2 million compared to the third quarter of 2006. The decrease in net interest income was primarily from a decline in the net interest margin partially offset by an increase in average earning assets. Average earning assets grew by 5% or $93.0 million from the third quarter of 2006 to the third quarter of 2007. The net interest margin was 3.20% for the quarter, down 12 basis points from 3.32% for the second quarter of 2007 and 42 basis points from 3.62% for the third quarter of 2006.

On a consecutive quarter basis, the decline was primarily from a decrease in the yield on loans related to rising balances of non-performing loans. The cost of funds has remained flat for the last two quarters. The recent 50 basis point cut in the Federal funds and prime rates will have a negative impact on net interest income in the near term, although over a full twelve month period the overall impact on earnings is expected to be neutral. The Company’s variable rate loan portfolio exceeds the level of variable rate funding, but the fixed rate funding portfolio that reprices over the next twelve months will offset this excess.

Non-interest income was $4.0 million for the third quarter of 2007, an increase of $528,000 or 15% compared to the third quarter of 2006. The Company continues to grow its non-interest revenue across the majority of its service delivery channels. Trust revenue grew $392,000 and revenue from deposit, investment and card services grew as well, more than offsetting lower gains on sales of loans.

Non-interest expense was $12.7 million for the quarter as compared to $11.3 million for the third quarter of 2006. The increases in salaries and benefits, occupancy and furniture and equipment primarily relate to operating costs associated with the new Asset Management Services group and the opening of four new facilities since the beginning of the year. Despite these significant investments for the future, the Company has been able to successfully manage these overhead components within a tight range. The $867,000 increase in other expense is primarily related to increases in legal and other carrying costs associated with non-performing assets and an increase of $249,000 in FDIC assessments. The additional FDIC assessments relate to a change by the FDIC in their charges for all banks effective January 1.

Total assets increased $62.0 million and total loans increased $54.0 million since September 30, 2006. Since the beginning of the year, total assets and total loans have grown $27.9 million and $24.9, respectively. Total deposits decreased $110.8 million since September 30, 2006 and $145.6 million since December 31, 2006. One of the Company’s institutional depositors withdrew approximately $104 million during the quarter. The withdrawals were associated with planned distributions and the depositor remains an excellent customer for the Company.

The Company has also reduced its holdings of deposits generated from out-of-market brokers during the year. Brokered deposits have declined $90.1 million since December 31, 2006. Accordingly, growth from deposits within the Company’s markets has been approximately $45 million since the beginning of the year. The Company remained well-capitalized at September 30, 2007 with a total risk-based capital ratio of 10.9%.

“Macatawa Bank Corporation has always been conservative in our approach to loan-loss reserves. This philosophy, in combination with our strong financial foundation and solid balance sheet, will sustain us through this challenging time. Macatawa Bank Corporation remains confident in the long-term economic health of West Michigan. We are a well-capitalized financial institution committed to the growth and vitality of our community,” concluded Mr. Smith.

Conference Call

Macatawa Bank Corporation will hold its quarterly earnings conference call on Tuesday, October 16, 2007, 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.

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Macatawa Bank 3Q Results / page 3 of 3

About Macatawa Bank

Headquartered in Holland, Michigan, Macatawa Bank Corporation is the parent company for Macatawa Bank. Through its banking subsidiary, the Corporation 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 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
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)