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

Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE (Tables)

FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2013

Assets measured at fair value on a recurring basis

Assets measured at fair value on a recurring basis are summarized below (in thousands):

	Fair		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable		Significant Unobservable Inputs
	Value		(Level 1)		Inputs (Level 2)		(Level 3)
September 30, 2013
U.S. Treasury and federal agency securities	$	52,488	$	---	$	52,488	$	---
U.S. Agency MBS and CMOs		18,602		---		18,602		---
Tax-exempt state and municipal bonds		24,565		---		24,565		---
Taxable state and municipal bonds		27,861		---		27,861		---
Corporate bonds and other debt securities		10,435		---		10,435		---
Other equity securities		1,488		---		1,488		---
Loans held for sale		2,983		---		2,983		---

December 31, 2012
U.S. Treasury and federal agency securities	$	42,564	$	---	$	42,564	$	---
U.S. Agency MBS and CMOs		23,761		---		23,761		---
Tax-exempt state and municipal bonds		20,793		---		20,793		---
Taxable state and municipal bonds		27,296		---		27,296		---
Corporate bonds		7,526		---		7,526		---
Other equity securities		1,557		---		1,557		---
Loans held for sale		8,130		---		8,130		---

Assets measured at fair value on a non-recurring basis

Assets measured at fair value on a non-recurring basis are summarized below (in thousands):

	Fair		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable		Significant Unobservable Inputs
	Value		(Level 1)		Inputs (Level 2)		(Level 3)
September 30, 2013
Impaired loans	$	24,087	$	---	$	---	$	24,087
Other real estate owned		34,564		---		---		34,564

December 31, 2012
Impaired loans	$	34,668	$	---	$	---	$	34,668
Other real estate owned		41,594		---		---		41,594

Carrying amounts and estimated fair values of financial instruments, not previously presented

The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at September 30, 2013 and December 31, 2012 (dollars in thousands).

	Level in	September 30, 2013						December 31, 2012
	Fair Value	Carrying			Fair			Carrying			Fair
	Hierarchy	Amount			Value			Amount			Value
Financial assets
Cash and due from banks	Level 1	$	35,592		$	35,592		$	33,556		$	33,556
Cash equivalents	Level 2		178,263			178,263			192,802			192,802
Interest-bearing time deposits in other financial institutions	Level 2		25,000			25,000			---			---
Securities held to maturity	Level 3		18,995			19,444			4,300			4,301
FHLB stock			11,236		NA				11,236		NA
Loans, net	Level 2		983,434			976,296			993,941			999,619
Bank owned life insurance	Level 3		27,343			27,343			26,804			26,804
Accrued interest receivable	Level 2		3,250			3,250			3,411			3,411

Financial liabilities
Deposits	Level 2		(1,288,041	)		(1,289,388	)		(1,286,261	)		(1,285,819	)
Other borrowed funds	Level 2		(89,991	)		(90,513	)		(91,822	)		(95,213	)
Long-term debt	Level 2		(41,238	)		(35,099	)		(41,238	)		(30,463	)
Subordinated debt	Level 2		---			---			(1,650	)		(1,650	)
Accrued interest payable	Level 2		(7,903	)		(7,903	)		(4,858	)		(4,858	)

Off-balance sheet credit-related items
Loan commitments			---			---			---			---

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References + Details

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

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-Publisher FASB

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Reference 11: http://www.xbrl.org/2003/role/presentationRef

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-Publisher FASB

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details