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

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS (LOSS) PER COMMON SHARE

EARNINGS (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2011

Earnings (Loss) Per Common Share [Abstract]

NOTE 8 - EARNINGS (LOSS) PER COMMON SHARE

A reconciliation of the numerators and denominators of basic and diluted earnings (loss) per common share for the three month periods ended September 30, 2011 and 2010 are as follows (dollars in thousands, except per share data):

	Three Months Ended September 30, 2011		Three Months Ended September 30, 2010		Nine Months Ended September 30, 2011		Nine Months Ended September 30, 2010

Net income (loss)	$	1,052	$	703	$	4,743	$	(18,689	)
Dividends declared on preferred shares		---		---		---		---
Net income (loss) available to common shares	$	1,052	$	703	$	4,743	$	(18,689	)

Weighted average shares outstanding, including participating stock awards - Basic		27,082,823		17,677,284		21,276,467		17,688,545

Dilutive potential common shares:
Stock options		---		---		---		---
Conversion of preferred stock		---		---		---		---
Stock warrants		---		---		---		---
Weighted average shares outstanding - Diluted		27,082,823		17,677,284		21,276,467		17,688,545

Basic earnings (loss) per common share	$	0.04	$	0.04	$	0.22	$	(1.06	)
Diluted earnings (loss) per common share (1)	$	0.04	$	0.04	$	0.22	$	(1.06	)

(1)	For any period in which a loss is recorded, the assumed exercise of stock options would have an anti-dilutive impact on loss per share and thus are ignored in the diluted per common share calculation.

Stock options for 692,919 and 704,590 shares of common stock for the three and nine month periods ended September 30, 2011, respectively, were not considered in computing diluted earnings per share because they were antidilutive. Stock options for 748,921 shares of common stock for both the three and nine month periods ended September 30, 2010, respectively, were not considered in computing diluted earnings per common share because they were antidilutive. Potential common shares associated with convertible preferred stock and stock warrants were excluded from dilutive potential common shares as they were antidilutive.