10753 Macatawa Drive Holland, Michigan 49424
NEWS RELEASE
NASDAQ STOCK MARKET: FOR RELEASE: DATE:	MCBC Immediate April 24, 2014

	●	Net income increased to $2.6 million in the first quarter 2014 from $2.5 million in the first quarter 2013
	●	Resumed payment of quarterly cash dividends - $0.02 per share paid on March 28, 2014 to shareholders of record on March 7, 2014
	●	Strong loan collection results exemplified by net recoveries once again – net recoveries of $585,000 for the first quarter 2014, net recoveries in four of the previous five quarters
	●	Net interest margin improvement in the first quarter 2014 compared to the first quarter 2013 and the fourth quarter 2013
	●	Decrease in mortgage banking activity – gains on sales down consistent with industry-wide declines
	●	Further expense reductions – total non-interest expense decreased by $412,000 for the first quarter 2014 compared to the first quarter 2013

 

Dollars in 000s		March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013				March 31, 2013
Commercial Real Estate		$	6,299			$	5,706			$	4,934			$	5,701			$	4,673
Commercial and Industrial			8,077				5,625				4,240				4,081				8,781
Total Commercial Loans			14,376				11,331				9,174				9,782				13,454
Residential Mortgage Loans			762				639				639				619				298
Consumer Loans			410				365				407				373				422
Total Non-Performing Loans		$	15,548			$	12,335			$	10,220			$	10,774			$	14,174
Residential Developer Loans (a)		$	2,205			$	2,591			$	2,651			$	2,723			$	2,265

(a)	Represents the amount of loans to residential developers secured by single family residential property which is included in non-performing commercial loans secured by real estate.

Dollars in 000s		March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013				March 31, 2013
Non-Performing Loans		$	15,548			$	12,335			$	10,220			$	10,774			$	14,174
Other Repossessed Assets			42				40				---				---				22
Other Real Estate Owned			34,035				36,796				42,796				45,845				51,593
Total Non-Performing Assets		$	49,625			$	49,171			$	53,016			$	56,619			$	65,789

Dollars in 000s		March 31, 2014				December 31, 2013				September 30, 2013				June 30, 2013				March 31, 2013
Construction and Development		$	84,875			$	86,413			$	86,824			$	81,841			$	88,670
Other Commercial Real Estate			378,322				385,927				395,108				397,814				408,860
Commercial Loans Secured by       Real Estate			463,197				472,340				481,932				479,655				497,530
Commercial and Industrial			271,924				274,099				253,216				242,759				259,145
Total Commercial Loans		$	735,121			$	746,439			$	735,148			$	722,414			$	756,675
Residential Developer Loans (a)		$	33,970			$	35,164			$	39,886			$	41,903			$	45,598

(a)	Represents the amount of loans to residential developers secured by single family residential property which is included in commercial loans secured by real estate.

 

 

CAUTIONARY STATEMENT: This press release contains forward-looking statements that are based on management's current beliefs, expectations, assumptions, estimates, plans and intentions. Forward-looking statements are identifiable by words or phrases such as "expect", "may", "will", "initiative," "continue," "improving," "efforts," "focus," "future," "strategies," "pave the way," "poised for growth" and other similar words or phrases. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to trends in our key operating metrics and financial performance, future levels of earnings and profitability, future levels of earning assets, our ability to further reduce nonperforming asset levels and related expenses and strategies to enhance shareholder value. The declaration and payment of future dividends to common shareholders will be considered by the Board of Directors in its discretion and will depend on a number of factors, including our financial condition and anticipated profitability. All statements with references to future time periods are forward-looking. Management's determination of the provision and allowance for loan losses, the appropriate carrying value of intangible assets (including deferred tax assets) and other real estate owned and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involves judgments that are inherently forward-looking. Our ability to sell other real estate owned at its carrying value or at all, utilize our deferred tax asset, successfully implement new programs and initiatives, increase efficiencies, maintain our current level of deposits and other sources of funding, maintain liquidity, respond to declines in collateral values and credit quality, improve profitability, and produce consistent core earnings is not entirely within our control and is not assured. The future effect of changes in the real estate, financial and credit markets and the national and regional economy on the banking industry, generally, and Macatawa Bank Corporation, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extend, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed in or implied by such forward-looking statements. Macatawa Bank Corporation does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.     Risk factors include, but are not limited to, the risk factors described in "Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2013. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.