10753 Macatawa Drive Holland, MI 49424

Macatawa Bank Corporation Reports 2nd Quarter Results

Holland, Michigan, July 14, 2008 — Macatawa Bank Corporation today announced its results for the second quarter of 2008.

Net income amounted to $2.17 million, or $0.13 per diluted share, for the 2^nd quarter of 2008 compared to net income of $4.59 million, or $0.26 per diluted share, for the same period in 2007. Net income for the first six months of 2008 totaled $4.61 million, or $0.27 per diluted share, compared to net income of $9.43 million, or $0.54 per diluted share, for the six months ended June 30, 2007. The Company recorded loan loss provisions of $3.5 million in the 2^nd quarter of 2008. The elevated loan loss provision led to the reduced earnings for the current quarter when compared to the prior year.

“As we move through 2008, local, regional and national banks continue to report significant loan losses and contingent capital plans to respond to the struggling economy and the shift occurring within the credit markets. Although we are not immune to the impact this is having on bank loan portfolios, Macatawa remains profitable, well capitalized and sufficiently reserved for possible future loan losses,” commented Ben Smith, Chairman and CEO. Although elevated, the Company’s loan loss provision continues to moderate since the fourth quarter of last year. “We remain intensely focused upon improving loan quality,” added Mr. Smith. The Company’s loan loss reserve remained flat since the first quarter at 1.80% of total loans at June 30, 2008.

Second quarter net interest income totaled $15.1 million, a decrease of $1.2 million compared to the second quarter of 2007. 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 $13.4 million from the second quarter of 2007 to the second quarter of 2008. The net interest margin was 3.06% for the quarter, down 26 basis points from 3.32% for the second quarter of 2007. Only 6 of the 26 basis point decline in the net interest margin over the last twelve months related to the impact of Federal funds rate cuts. The remaining margin decline was associated with higher balances of non-performing assets.

However, on a consecutive quarter basis the net interest margin of 3.06% was an improvement by seven basis points from 2.99% for the first quarter of 2008. The Company was able to improve its net interest margin despite significant interest rate cuts by the Federal Reserve. The increase was primarily because the costs of funds declined faster than the yield on assets despite the 225 basis point cuts in the Federal funds and prime rates that have occurred since the beginning of the year. The combination of deposit repricing, the rollover of time deposits and the repositioning of other borrowings within the lower rate environment are the reasons for the decline in the costs of funds. This stability in net interest margin indicates that the Company has a well balanced interest rate risk position.

Non-interest income was $5.1 million for the second quarter of 2008, an increase of $1.0 million compared to the second quarter of 2007. The increase includes approximately $412,000 and $243,000, respectively, of gains on the sale of securities and the termination of certain borrowings. The Company chose to execute these transactions to support its shift to a more balanced sensitivity to future interest rate changes.

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Macatawa Bank 2Q Results / page 2 of 3

The Company also experienced growth in noninterest income across many service offerings. Increases in revenues from deposit services, investment services, ATM and debit card processing and reverse mortgages offset slight declines in trust income and gains on mortgage loans sold. The decline in the stock market was the primary reason for the decrease in trust income, and rising mortgage rates associated with corrections in the housing market have caused the decrease in gains on mortgage loans sold. “Despite these market headwinds, we are encouraged by our momentum within each of our lines of business,” stated Mr. Smith.

Non-interest expense was $13.6 million for the quarter as compared to $12.6 million for the second quarter of 2007. The $530,000 increase in salaries and benefits relates to general staff additions and merit increases since the prior year. The staff additions were in varied positions throughout the Company including risk management, credit administration and problem asset departments, and selective sales personnel to support growth in deposits and commercial and industrial lending. The $353,000 increase in other expense includes increases in costs associated with administration and disposition of non-performing assets, FDIC insurance premium assessments and third party processing costs from increased customer usage of ATM and debit cards. Costs associated with administration and disposition of non-performing assets amounted to $662,000 in the current quarter compared to $231,000 for the second quarter of 2007. The Company has been able to manage costs in other areas to offset these increases.

Total assets were $2.12 billion at both June 30, 2008 and 2007. Total loans increased $41.0 million since June 30, 2007, primarily in consumer mortgages, to $1.77 billion at June 30, 2008. Within the commercial loan portfolio, there continues to be a shift in mix from commercial real estate loans to commercial and industrial loans.

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

Commercial real estate loans declined $41.2 million while commercial and industrial loans grew by $12.2 million since June 30, 2007. Loans for the development or sale of 1-4 family residential properties were $242.9 million at June 30, 2008. Of this total, approximately $31.9 million is secured by vacant land, $132.8 million is secured by developed residential land and $78.2 million is secured by 1-4 family properties held for speculative purposes.

The Company’s non-performing loans increased $4.6 million to $80.2 million since the prior quarter and represent about 4.54% of total loans at June 30, 2008. The increase was largely from loans already identified on the Company’s internal watch list. Loans to residential developers comprise the majority of the balance in non-performing loans. Management believes non-performing loans are either well collateralized or adequately reserved.

A breakdown of non-performing assets is shown in the table below:

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Macatawa Bank 2Q Results / page 3 of 3

Loans for the development or sale of 1-4 family residential properties that were in a non-performing status were approximately $62.9 million or 78% of non-performing loans at June 30, 2008 compared to $57.4 million or 78% of total non-performing loans at December 31, 2007.

Total deposits grew $80.5 million since December 31, 2007 to $1.60 billion at June 30, 2008. Approximately $41 million of the growth was from deposits generated within the Company’s markets while the remaining $39.2 million was from deposits generated through brokers. The growth in deposits allowed the Company to reduce its other borrowing levels since the beginning of the year.

Since June 30, 2007, total deposits declined by $57.7 million. The decline was primarily attributed to one of the Company’s institutional depositors whose balances decreased by $140 million during the last twelve months. The withdrawals were associated with planned distributions and the depositor remains an excellent customer for the Company. Excluding the impact of these withdrawals, deposits have grown by approximately $82 million since June 30, 2007.

The Company remained well-capitalized at June 30, 2008 with a total risk-based capital ratio of 10.7%. “The Macatawa franchise remains strong. We are committed to West Michigan, continually positioning ourselves for its ultimate recovery,” concluded Mr. Smith.

Conference Call

Macatawa Bank Corporation will hold its quarterly earnings conference call on Tuesday, July 15, 2008, 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.

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)