Macatawa Bank Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Loans (Tables)

Note 3 - Loans (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	June 30, 2023			December 31, 2022
Commercial and industrial	$	489,273		$	441,716

Commercial real estate:
Residential developed		4,437			7,234
Unsecured to residential developers		—			—
Vacant and unimproved		37,577			36,270
Commercial development		94			103
Residential improved		111,621			112,791
Commercial improved		260,394			259,281
Manufacturing and industrial		145,490			121,924
Total commercial real estate		559,613			537,603
Consumer:
Residential mortgage		165,221			139,148
Unsecured		113			121
Home equity		54,568			56,321
Other secured		2,788			2,839
Total consumer		222,690			198,429
Total loans		1,271,576			1,177,748
Allowance for credit losses		(17,109	)		(15,285	)
	$	1,254,467		$	1,162,463

Financing Receivable, Allowance for Credit Loss [Table Text Block]

Three months ended June 30, 2023	Commercial and Industrial			Commercial Real Estate		Consumer			Unallocated			Total
Beginning balance	$	7,124		$	6,770	$	2,818		$	82		$	16,794
Charge-offs		—			—		(22	)		—			(22	)
Recoveries		7			3		27			—			37
Provision for credit losses (1)		(120	)		155		276			(11	)		300
Ending Balance	$	7,011		$	6,928	$	3,099		$	71		$	17,109

Three months ended June 30, 2022	Commercial and Industrial			Commercial Real Estate			Consumer			Unallocated			Total
Beginning balance	$	5,329		$	7,071		$	2,153		$	63		$	14,616
Charge-offs		(38	)		—			(22	)		—			(60	)
Recoveries		5			38			32			—			75
Provision for credit losses (1)		(40	)		(87	)		153			(26	)		—
Ending Balance	$	5,256		$	7,022		$	2,316		$	37		$	14,631

Six months ended June 30, 2023	Commercial and Industrial		Commercial Real Estate			Consumer			Unallocated		Total
Beginning balance, prior to adoption of ASU 2016-03	$	5,596	$	7,180		$	2,458		$	51	$	15,285
Impact of adoption of ASU 2016-03		1,299		(212	)		389			—		1,476
Charge-offs		—		—			(43	)		—		(43	)
Recoveries		16		6			69			—		91
Provision for credit losses (1)		100		(46	)		226			20		300
Ending Balance	$	7,011	$	6,928		$	3,099		$	71	$	17,109

Six months ended June 30, 2022	Commercial and Industrial			Commercial Real Estate			Consumer			Unallocated		Total
Beginning balance	$	5,176		$	8,051		$	2,633		$	29	$	15,889
Charge-offs		(38	)		—			(57	)		—		(95	)
Recoveries		10			271			56			—		337
Provision for credit losses (1)		108			(1,300	)		(316	)		8		(1,500	)
Ending Balance	$	5,256		$	7,022		$	2,316		$	37	$	14,631

Gross Charge-offs by Portfolio Segment and Origination Year [Table Text Block]

	Term Loans By Origination Year
June 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total


Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial development		—		—		—		—		—		—		—		—
Commercial improved		—		—		—		—		—		—		—		—
Manufacturing and industrial		—		—		—		—		—		—		—		—
Residential development		—		—		—		—		—		—		—		—
Residential improved		—		—		—		—		—		—		—		—
Vacant and unimproved		—		—		—		—		—		—		—		—
Total commercial		—		—		—		—		—		—		—		—

Residential mortgage		—		—		—		—		—		—		—		—
Consumer unsecured		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		43		43
Total consumer		—		—		—		—		—		—		43		43

Total loans		—		—		—		—		—		—		43		43

Schedule of Collateral Dependent Loans [Table Text Block]

	Collateral Type
June 30, 2023	Real Estate		Other		Allowance Allocated

Commercial and industrial	$	584	$	—	$	—
Commercial real estate:
Residential developed		—		—		—
Unsecured to residential developers		—		—		—
Vacant and unimproved		—		—		—
Commercial development		—		—		—
Residential improved		29		—		—
Commercial improved		299		—		2
Manufacturing and industrial		—		—		—
		328		—		2
Consumer
Residential mortgage		—		—		—
Unsecured		—		—		—
Home equity		—		—		—
Other secured		—		—		—
Consumer		—		—		—
Total	$	912	$	—	$	2

Allowance For Credit Losses And Recorded Investment In Loans By Portfolio Segment [Table Text Block]

December 31, 2022	Commercial and Industrial		Commercial Real Estate		Consumer		Unallocated		Total
Allowance for credit losses:
Ending allowance attributable to loans:
Individually reviewed for impairment	$	55	$	20	$	220	$	—	$	295
Collectively evaluated for impairment		5,541		7,160		2,238		51		14,990
Total ending allowance balance	$	5,596	$	7,180	$	2,458	$	51	$	15,285
Loans:
Individually reviewed for impairment	$	3,603	$	518	$	2,886	$	—	$	7,007
Collectively evaluated for impairment		438,113		537,085		195,543		—		1,170,741
Total ending loans balance	$	441,716	$	537,603	$	198,429	$	—	$	1,177,748

Loans individually evaluated for impairment by class of loans [Table Text Block]

December 31, 2022	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Year-To-Date Average Recorded Investment
With no related allowance recorded:
Commercial and industrial	$	3,278	$	3,278	$	—	$	2,338
Commercial real estate:
Residential improved		31		31		—		33
		31		31		—		33
Consumer		—		—		—		—
Total with no related allowance recorded	$	3,309	$	3,309	$	—	$	2,371

With an allowance recorded:
Commercial and industrial	$	325	$	325	$	55	$	365
Commercial real estate:
Commercial improved		307		307		9		313
Manufacturing and industrial		180		180		11		185
		487		487		20		498
Consumer:
Residential mortgage		2,653		2,653		202		2,619
Unsecured		29		29		2		29
Home equity		204		204		16		234
		2,886		2,886		220		2,882
Total with an allowance recorded	$	3,698	$	3,698	$	295	$	3,745
Total	$	7,007	$	7,007	$	295	$	6,116

Financing Receivable, Nonaccrual [Table Text Block]

June 30, 2023	Nonaccrual with No Allowance		Nonaccrual with Allowance		Total Nonaccrual		Over 90 days Accruing		Total Nonperforming Loans
Commercial and industrial	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Residential developed		—		—		—		—		—
Unsecured to residential developers		—		—		—		—		—
Vacant and unimproved		—		—		—		—		—
Commercial development		—		—		—		—		—
Residential Improved		—		—		—		—		—
Commercial improved		—		—		—		—		—
Manufacturing and industrial		—		—		—		—		—
		—		—		—		—		—
Consumer:
Residential mortgage		—		72		72		—		72
Unsecured		—		—		—		—		—
Home equity		—		—		—		—		—
Other secured		—		—		—		—		—
		—		72		72		—		72
Total	$	—	$	72	$	72	$	—	$	72

December 31, 2022	Nonaccrual with No Allowance		Nonaccrual with Allowance		Total Nonaccrual		Over 90 days Accruing		Total Nonperforming Loans
Commercial and industrial	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Residential developed		—		—		—		—		—
Unsecured to residential developers		—		—		—		—		—
Vacant and unimproved		—		—		—		—		—
Commercial development		—		—		—		—		—
Residential improved		—		—		—		—		—
Commercial improved		—		—		—		—		—
Manufacturing and industrial		—		—		—		—		—
		—		—		—		—		—
Consumer:
Residential mortgage		—		78		78		—		78
Unsecured		—		—		—		—		—
Home equity		—		—		—		—		—
Other secured		—		—		—		—		—
		—		78		78		—		78
Total	$	—	$	78	$	78	$	—	$	78

Financing Receivable, Past Due [Table Text Block]

June 30, 2023	30-90 Days		Greater Than 90 Days		Total Past Due		Loans Not Past Due		Total
Commercial and industrial	$	—	$	—	$	—	$	489,273	$	489,273
Commercial real estate:
Residential developed		—		—		—		4,437		4,437
Unsecured to residential developers		—		—		—		—		—
Vacant and unimproved		—		—		—		37,577		37,577
Commercial development		—		—		—		94		94
Residential improved		—		—		—		111,621		111,621
Commercial improved		—		—		—		260,394		260,394
Manufacturing and industrial		—		—		—		145,490		145,490
		—		—		—		559,613		559,613
Consumer:
Residential mortgage		—		71		71		165,150		165,221
Unsecured		—		—		—		113		113
Home equity		87		—		87		54,481		54,568
Other secured		—		—		—		2,788		2,788
		87		71		158		222,532		222,690
Total	$	87	$	71	$	158	$	1,271,418	$	1,271,576

December 31, 2022	30-90 Days		Greater Than 90 Days		Total Past Due		Loans Not Past Due		Total
Commercial and industrial	$	—	$	—	$	—	$	441,716	$	441,716
Commercial real estate:
Residential developed		—		—		—		7,234		7,234
Unsecured to residential developers		—		—		—		—		—
Vacant and unimproved		—		—		—		36,270		36,270
Commercial development		—		—		—		103		103
Residential improved		—		—		—		112,791		112,791
Commercial improved		71		—		71		259,210		259,281
Manufacturing and industrial		—		—		—		121,924		121,924
		71		—		71		537,532		537,603
Consumer:
Residential mortgage		—		77		77		139,071		139,148
Unsecured		—		—		—		121		121
Home equity		24		—		24		56,297		56,321
Other secured		—		—		—		2,839		2,839
		24		77		101		198,328		198,429
Total	$	95	$	77	$	172	$	1,177,576	$	1,177,748

Financing Receivable, Modified [Table Text Block]

	June 30, 2023
	Number of Loans		Outstanding Recorded Balance		Percentage to Total Loans
Commercial and industrial		3	$	288		0.06	%
Commercial real estate		3		501		0.09	%
Consumer		33		2,850		1.28	%
		39	$	3,639		0.29	%

	June 30, 2023
Accruing - nonaccrual at modification	$	—
Accruing - accruing at modification		3,639
Accruing - upgraded to accruing after six consecutive payments		—
	$	3,639

Financing Receivable Credit Quality Indicators [Table Text Block]

	Term Loans Amortized Cost Basis By Origination Year and Risk Grades
June 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving		Total
Commercial
Commercial and industrial
Grades 1-3	$	38,229	$	60,629	$	17,597	$	6,062	$	13,584	$	40,524	$	75,039	$	251,664
Grade 4		34,073		44,956		24,579		18,044		8,718		27,865		74,597		232,832
Grade 5		—		330		68		48		84		—		3,586		4,116
Grade 6		—		10		34		—		—		32		585		661
Grade 7-8		—		—		—		—		—		—		—		—
	$	72,302	$	105,925	$	42,278	$	24,154	$	22,386	$	68,421	$	153,807	$	489,273
Commercial development
Grades 1-3	$	—	$	94	$	—	$	—	$	—	$	—	$	—	$	94
Grade 4		—		—		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—		—		—
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	—	$	94	$	—	$	—	$	—	$	—	$	—	$	94
Commercial improved
Grades 1-3	$	10,855	$	22,493	$	50,283	$	18,553	$	14,127	$	17,113	$	6,894	$	140,318
Grade 4		6,290		34,306		19,195		32,803		17,600		2,802		1,080		114,076
Grade 5		273		32		—		16		2,195		3,135		50		5,701
Grade 6		—		—		299		—		—		—		—		299
Grade 7-8		—		—		—		—		—		—		—		—
	$	17,418	$	56,831	$	69,777	$	51,372	$	33,922	$	23,050	$	8,024	$	260,394
Manufacturing and industrial
Grades 1-3	$	6,697	$	27,465	$	4,621	$	8,148	$	4,305	$	3,897	$	350	$	55,483
Grade 4		17,524		26,618		13,864		7,773		5,721		13,765		1,610		86,875
Grade 5		173		—		—		—		—		316		—		489
Grade 6		—		—		—		—		—		2,643		—		2,643
Grade 7-8		—		—		—		—		—		—		—		—
	$	24,394	$	54,083	$	18,485	$	15,921	$	10,026	$	20,621	$	1,960	$	145,490
Residential development
Grades 1-3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Grade 4		256		2,018		1,143		—		—		—		1,020		4,437
Grade 5		—		—		—		—		—		—		—		—
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	256	$	2,018	$	1,143	$	—	$	—	$	—	$	1,020	$	4,437
Residential improved
Grades 1-3	$	4,590	$	9,457	$	1,410	$	9,172	$	255	$	5,336	$	394	$	30,614
Grade 4		999		560		31,454		1,952		7,163		15,576		23,275		80,979
Grade 5		—		—		28		—		—		—		—		28
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	5,589	$	10,017	$	32,892	$	11,124	$	7,418	$	20,912	$	23,669	$	111,621
Vacant and unimproved
Grades 1-3	$	460	$	4,441	$	8,310	$	7,042	$	—	$	97	$	—	$	20,350
Grade 4		1,711		2,506		2,813		8,162		160		113		425		15,890
Grade 5		1,337		—		—		—		—		—		—		1,337
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	3,508	$	6,947	$	11,123	$	15,204	$	160	$	210	$	425	$	37,577

Total Commercial
Grades 1-3	$	60,831	$	124,579	$	82,221	$	48,977	$	32,271	$	66,967	$	82,677	$	498,523
Grade 4		60,853		110,964		93,048		68,734		39,362		60,121		102,007		535,089
Grade 5		1,783		362		96		64		2,279		3,451		3,636		11,671
Grade 6		—		10		333		—		—		2,675		585		3,603
Grade 7-8		—		—		—		—		—		—		—		—
	$	123,467	$	235,915	$	175,698	$	117,775	$	73,912	$	133,214	$	188,905	$	1,048,886

December 31, 2022		1		2		3		4		5		6		7		8	Total
Commercial and industrial	$	15,040	$	21,451	$	175,762	$	220,987	$	8,309	$	167	$	—	$	—	$	441,716

Commercial real estate:
Residential developed		—		—		—		7,234		—		—		—		—		7,234
Unsecured to residential developers		—		—		—		—		—		—		—		—		—
Vacant and unimproved		—		1,231		18,406		16,633		—		—		—		—		36,270
Commercial development		—		—		103		—		—		—		—		—		103
Residential improved		—		—		25,585		87,176		30		—		—		—		112,791
Commercial improved		—		17,802		83,769		151,641		5,762		307		—		—		259,281
Manufacturing & industrial		—		11,422		32,977		73,566		1,646		2,313		—		—		121,924
	$	15,040	$	51,906	$	336,602	$	557,237	$	15,747	$	2,787	$	—	$	—	$	979,319

	Term Loans Amortized Cost Basis By Origination Year
June 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving		Total
Retail
Residential mortgage
Performing	$	36,055	$	41,784	$	26,777	$	10,181	$	5,059	$	30,898	$	14,395	$	165,149
Nonperforming		—		—		—		—		—		72		—		72
	$	36,055	$	41,784	$	26,777	$	10,181	$	5,059	$	30,970	$	14,395	$	165,221
Consumer unsecured
Performing	$	—	$	—	$	—	$	12	$	14	$	87	$	—	$	113
Nonperforming		—		—		—		—		—		—		—		—
	$	—	$	—	$	—	$	12	$	14	$	87	$	—	$	113
Home equity
Performing	$	131	$	803	$	227	$	478	$	228	$	2,209	$	50,492	$	54,568
Nonperforming		—		—		—		—		—		—		—		—
	$	131	$	803	$	227	$	478	$	228	$	2,209	$	50,492	$	54,568
Other
Performing	$	742	$	872	$	645	$	295	$	70	$	164	$	—	$	2,788
Nonperforming		—		—		—		—		—		—		—		—
	$	742	$	872	$	645	$	295	$	70	$	164	$	—	$	2,788

Total Retail	$	36,928	$	43,459	$	27,649	$	10,966	$	5,371	$	33,430	$	64,887	$	222,690

December 31, 2022	Residential Mortgage		Consumer Unsecured		Home Equity		Consumer Other
Performing	$	139,071	$	121	$	56,321	$	2,839
Nonperforming		77		—		—		—
Total	$	139,148	$	121	$	56,321	$	2,839