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

Annual report pursuant to Section 13 and 15(d)

FAIR VALUE (Tables)

FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 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 Inputs		Significant Unobservable Inputs
	Value			(Level 1)		(Level 2)		(Level 3)
December 31, 2013
U.S. Treasury and federal agency securities	$	54,439		$	---	$	54,439	$	---
U.S. Agency MBS and CMOs		19,365			---		19,365		---
Tax-exempt state and municipal bonds		26,849			---		26,849		---
Taxable state and municipal bonds		26,328			---		26,328		---
Corporate bonds and other debt securities		11,212			---		11,212		---
Other equity securities		1,466			---		1,466		---
Loans held for sale		1,915			---		1,915		---
Interest rate swaps		94			---		---		94
Interest rate swaps		(94	)		---		---		(94	)

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		---
Interest rate swaps		---			---		---		---
Interest rate swaps		---			---		---		---

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 Inputs		Significant Unobservable Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2013
Impaired loans	$	22,403	$	---	$	---	$	22,403
Other real estate owned		29,711		---		---		29,711

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 year end (dollars in thousands).

	Level in	2013							2012
	Fair Value	Carrying			Fair				Carrying			Fair
	Hierarchy	Amount			Value				Amount			Value
Financial assets
Cash and due from banks	Level 1	$	38,714			$	38,714		$	33,556			$	33,556
Cash equivalents	Level 2		118,178				118,178			192,802				192,802
Interest-bearing time deposits in other financial institutions	Level 2		25,000				25,003			---				---
Securities held to maturity	Level 3		19,248				19,278			4,300				4,301
FHLB stock			11,236		NA					11,236		NA
Loans, net	Level 2		999,176				990,084			993,941				999,619
Bank owned life insurance	Level 3		27,517				27,517			26,804				26,804
Accrued interest receivable	Level 2		3,231				3,231			3,411				3,411

Financial liabilities
Deposits	Level 2		(1,249,734	)			(1,250,886	)		(1,286,261	)			(1,285,819	)
Other borrowed funds	Level 2		(89,111	)			(90,321	)		(91,822	)			(95,213	)
Long-term debt	Level 2		(41,238	)			(35,098	)		(41,238	)			(30,463	)
Subordinated debt	Level 2		---				---			(1,650	)			(1,650	)
Accrued interest payable	Level 2		(308	)			(308	)		(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).

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- 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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-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