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)

9 Months Ended

Sep. 30, 2023

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

	September 30,			December 31,
	2023			2022
Commercial and industrial	$	488,224		$	441,716

Commercial real estate:
Residential developed		5,040			7,234
Unsecured to residential developers		800			—
Vacant and unimproved		37,084			36,270
Commercial development		89			103
Residential improved		116,407			112,791
Commercial improved		257,673			259,281
Manufacturing and industrial		150,192			121,924
Total commercial real estate		567,285			537,603
Consumer:
Residential mortgage		180,420			139,148
Unsecured		113			121
Home equity		51,798			56,321
Other secured		3,450			2,839
Total consumer		235,781			198,429
Total loans		1,291,290			1,177,748
Allowance for credit losses		(17,001	)		(15,285	)
	$	1,274,289		$	1,162,463

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

	Commercial
	and			Commercial
Three months ended September 30, 2023	Industrial			Real Estate		Consumer			Unallocated			Total
Beginning balance	$	7,011		$	6,928	$	3,099		$	71		$	17,109
Charge-offs		—			—		(41	)		—			(41	)
Recoveries		8			50		25			—			83
Provision for credit losses (1)		(398	)		114		177			(43	)		(150	)
Ending Balance	$	6,621		$	7,092	$	3,260		$	28		$	17,001

	Commercial
	and			Commercial
Nine months ended September 30, 2023	Industrial			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		—			—			(84	)		—			(84	)
Recoveries		24			56			94			—			174
Provision for credit losses (1)		(298	)		68			403			(23	)		150
Ending Balance	$	6,621		$	7,092		$	3,260		$	28		$	17,001

	Commercial
	and		Commercial
Three months ended September 30, 2022	Industrial		Real Estate			Consumer			Unallocated			Total
Beginning balance	$	5,256	$	7,022		$	2,316		$	37		$	14,631
Charge-offs		—		—			(46	)		—			(46	)
Recoveries		175		5			56			—			236
Provision for credit losses (1)		179		(147	)		(14	)		(18	)		—
Ending Balance	$	5,610	$	6,880		$	2,312		$	19		$	14,821

	Commercial
	and			Commercial
Nine months ended September 30, 2022	Industrial			Real Estate			Consumer			Unallocated			Total
Beginning balance	$	5,176		$	8,051		$	2,633		$	29		$	15,889
Charge-offs		(38	)		—			(103	)		—			(141	)
Recoveries		185			276			112			—			573
Provision for credit losses (1)		287			(1,447	)		(330	)		(10	)		(1,500	)
Ending Balance	$	5,610		$	6,880		$	2,312		$	19		$	14,821

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

	*Term Loans By Origination Year*
													*Revolving*
September 30, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*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		—		—		—		—		—		—		84		84
Total consumer		—		—		—		—		—		—		84		84

Total loans		—		—		—		—		—		—		84		84

Schedule of Collateral Dependent Loans [Table Text Block]

	Collateral Type
					Allowance
September 30, 2023	Real Estate		Other		Allocated

Commercial and industrial	$	584	$	—	$	—
Commercial real estate:
Residential developed		—		—		—
Unsecured to residential developers		—		—		—
Vacant and unimproved		—		—		—
Commercial development		—		—		—
Residential improved		27		—		—
Commercial improved		296		—		—
Manufacturing and industrial		546		—		—
		869		—		—
Consumer
Residential mortgage		—		—		—
Unsecured		—		—		—
Home equity		—		—		—
Other secured		—		—		—
Consumer		—		—		—
Total	$	1,453	$	—	$	—

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

	Commercial
	and		Commercial
December 31, 2022	Industrial		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]

	Unpaid						Year-To-Date
	Principal		Recorded		Allowance		Average Recorded
December 31, 2022	Balance		Investment		Allocated		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]

							Over 90		Total
	Nonaccrual with		Nonaccrual with				days		Nonperforming
September 30, 2023	No Allowance		Allowance		Total Nonaccrual		Accruing		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		—		1		1		—		1
Unsecured		—		—		—		—		—
Home equity		—		—		—		—		—
Other secured		—		—		—		—		—
		—		1		1		—		1
Total	$	—	$	1	$	1	$	—	$	1

							Over 90		Total
	Nonaccrual with		Nonaccrual with				days		Nonperforming
December 31, 2022	No Allowance		Allowance		Total Nonaccrual		Accruing		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]

	30-90		Greater Than		Total		Loans Not
September 30, 2023	Days		90 Days		Past Due		Past Due		Total
Commercial and industrial	$	—	$	—	$	—	$	488,224	$	488,224
Commercial real estate:
Residential developed		—		—		—		5,040		5,040
Unsecured to residential developers		—		—		—		800		800
Vacant and unimproved		—		—		—		37,084		37,084
Commercial development		—		—		—		89		89
Residential improved		—		—		—		116,407		116,407
Commercial improved		—		—		—		257,673		257,673
Manufacturing and industrial		—		—		—		150,192		150,192
		—		—		—		567,285		567,285
Consumer:
Residential mortgage		—		—		—		180,420		180,420
Unsecured		—		—		—		113		113
Home equity		—		—		—		51,798		51,798
Other secured		—		—		—		3,450		3,450
		—		—		—		235,781		235,781
Total	$	—	$	—	$	—	$	1,291,290	$	1,291,290

	30-90		Greater Than		Total		Loans Not
December 31, 2022	Days		90 Days		Past Due		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]

	September 30, 2023
			Outstanding		Percentage to
	Number of		Recorded		Total
	Loans		Balance		Loans
Commercial and industrial		3	$	266		0.05	%
Commercial real estate		3		493		0.09	%
Consumer		31		2,690		1.14	%
		37	$	3,449		0.27	%

	September 30,
	2023
Accruing - nonaccrual at modification	$	—
Accruing - accruing at modification		3,449
Accruing - upgraded to accruing after six consecutive payments		—
	$	3,449

Financing Receivable Credit Quality Indicators [Table Text Block]

	*Term Loans Amortized Cost Basis By Origination Year and Risk Grades*
September 30, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving*		*Total*
Commercial
Commercial and industrial
Grades 1-3	$	42,102	$	56,819	$	16,680	$	5,488	$	12,718	$	41,434	$	66,332	$	241,573
Grade 4		55,344		40,840		22,181		14,968		7,699		24,553		72,555		238,140
Grade 5		—		415		59		284		72		1,232		5,820		7,882
Grade 6		584		—		20		—		—		25		—		629
Grade 7-8		—		—		—		—		—		—		—		—
	$	98,030	$	98,074	$	38,940	$	20,740	$	20,489	$	67,244	$	144,707	$	488,224
Residential development
Grades 1-3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Grade 4		399		612		679		—		—		—		3,350		5,040
Grade 5		—		—		—		—		—		—		—		—
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	399	$	612	$	679	$	—	$	—	$	—	$	3,350	$	5,040
Unsecured to residential developers
Grades 1-3	$	—	$	—	$	—	$	—	$	—	$	800	$	—	$	800
Grade 4		—		—		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—		—		—
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	—	$	—	$	—	$	—	$	—	$	800	$	—	$	800
Vacant and unimproved
Grades 1-3	$	449	$	4,842	$	8,144	$	6,874	$	—	$	83	$	150	$	20,542
Grade 4		1,548		2,498		2,671		7,987		157		110		239		15,210
Grade 5		1,332		—		—		—		—		—		—		1,332
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	3,329	$	7,340	$	10,815	$	14,861	$	157	$	193	$	389	$	37,084
Commercial development
Grades 1-3	$	—	$	89	$	—	$	—	$	—	$	—	$	—	$	89
Grade 4		—		—		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—		—		—
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	—	$	89	$	—	$	—	$	—	$	—	$	—	$	89
Residential improved
Grades 1-3	$	4,635	$	12,320	$	1,359	$	8,797	$	251	$	5,225	$	789	$	33,376
Grade 4		974		553		33,253		1,795		7,092		15,454		23,882		83,003
Grade 5		—		—		28		—		—		—		—		28
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	5,609	$	12,873	$	34,640	$	10,592	$	7,343	$	20,679	$	24,671	$	116,407
Commercial improved
Grades 1-3	$	12,533	$	22,410	$	51,324	$	19,385	$	14,513	$	15,695	$	8,582	$	144,442
Grade 4		6,353		34,017		16,729		31,082		16,674		2,080		443		107,378
Grade 5		269		26		—		—		2,164		3,098		—		5,557
Grade 6		—		—		296		—		—		—		—		296
Grade 7-8		—		—		—		—		—		—		—		—
	$	19,155	$	56,453	$	68,349	$	50,467	$	33,351	$	20,873	$	9,025	$	257,673
Manufacturing and industrial
Grades 1-3	$	7,062	$	35,006	$	5,425	$	6,672	$	4,240	$	3,824	$	880	$	63,109
Grade 4		16,712		26,539		12,692		7,603		5,641		13,138		1,665		83,990
Grade 5		170		—		—		—		—		305		—		475
Grade 6		—		—		—		—		—		2,618		—		2,618
Grade 7-8		—		—		—		—		—		—		—		—
	$	23,944	$	61,545	$	18,117	$	14,275	$	9,881	$	19,885	$	2,545	$	150,192

Total Commercial
Grades 1-3	$	66,781	$	131,486	$	82,932	$	47,216	$	31,722	$	67,061	$	76,733	$	503,931
Grade 4		81,330		105,059		88,205		63,435		37,263		55,335		102,134		532,761
Grade 5		1,771		441		87		284		2,236		4,635		5,820		15,274
Grade 6		584		—		316		—		—		2,643		—		3,543
Grade 7-8		—		—		—		—		—		—		—		—
	$	150,466	$	236,986	$	171,540	$	110,935	$	71,221	$	129,674	$	184,687	$	1,055,509

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*
September 30, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving*		*Total*
Retail
Residential mortgage
Performing	$	57,860	$	40,375	$	26,324	$	9,800	$	4,936	$	29,136	$	11,989	$	180,420
Nonperforming		—		—		—		—		—		—		—		—
	$	57,860	$	40,375	$	26,324	$	9,800	$	4,936	$	29,136	$	11,989	$	180,420
Consumer unsecured
Performing	$	—	$	—	$	—	$	12	$	13	$	—	$	88	$	113
Nonperforming		—		—		—		—		—		—		—		—
	$	—	$	—	$	—	$	12	$	13	$	—	$	88	$	113
Home equity
Performing	$	256	$	701	$	223	$	461	$	219	$	1,989	$	47,949	$	51,798
Nonperforming		—		—		—		—		—		—		—		—
	$	256	$	701	$	223	$	461	$	219	$	1,989	$	47,949	$	51,798
Other
Performing	$	1,658	$	745	$	607	$	251	$	50	$	139	$	—	$	3,450
Nonperforming		—		—		—		—		—		—		—		—
	$	1,658	$	745	$	607	$	251	$	50	$	139	$	—	$	3,450

Total Retail	$	59,774	$	41,821	$	27,154	$	10,524	$	5,218	$	31,264	$	60,026	$	235,781

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