Macatawa Bank Corporation Annual report pursuant to Section 13 and 15(d)

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) (Tables)

12 Months Ended

Dec. 31, 2022

CONDENSED BALANCE SHEETS

	2022		2021
ASSETS
Cash and cash equivalents	$	8,092	$	7,831
Investment in Bank subsidiary		238,697		245,942
Investment in other subsidiaries		—		—
Other assets		249		249
Total assets	$	247,038	$	254,022

LIABILITIES AND SHAREHOLDERS’ EQUITY
Long-term debt		—		—
Other liabilities		—		17
Total liabilities	$	—		17
Total shareholders’ equity		247,038		254,005
Total liabilities and shareholders’ equity	$	247,038	$	254,022

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	2022			2021
INCOME
Dividends from subsidiaries	$	11,913		$	33,118
Other		—			—
Total income		11,913			33,118
EXPENSE
Interest expense		—			319
Other expense		801			822
Total expense		801			1,141
Income before income tax and equity in undistributed earnings of subsidiaries		11,112			31,977
Equity in undistributed earnings of subsidiaries		23,445			(3,211	)
Income before income tax		34,557			28,766
Income tax benefit		(174	)		(248	)
Net income	$	34,731		$	29,014
Comprehensive income	$	3,452		$	24,503

CONDENSED STATEMENTS OF CASH FLOWS

	2022			2021
Cash flows from operating activities
Net income	$	34,731		$	29,014
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed earnings of subsidiaries		(23,445	)		3,211
Stock compensation expense		114			89
Change in other assets		—			(41	)
Change in other liabilities		(17	)		(135	)
Net cash from operating activities		11,383			32,138
Cash flows from investing activities
Investment in subsidiaries		—			—
Net cash from investing activities		—			—
Cash flows from financing activities
Repayment of other borrowings		—			(20,000	)
Cash dividends paid		(10,915	)		(10,895	)
Repurchases of shares		(207	)		(130	)
Net cash from financing activities		(11,122	)		(31,025	)
Net change in cash and cash equivalents		261			1,113
Cash and cash equivalents at beginning of year		7,831			6,718
Cash and cash equivalents at end of year	$	8,092		$	7,831