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

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) (Tables)

12 Months Ended

Dec. 31, 2013

	2013		2012
ASSETS
Cash and cash equivalents	$	1,910	$	9,787
Investment in Bank subsidiary		167,292		164,127
Investment in other subsidiaries		1,504		1,654
Other assets		3,272		2,532
Total assets	$	173,978	$	178,100

LIABILITIES AND SHAREHOLDERS' EQUITY
Subordinated debt		---		1,650
Long-term debt		41,238		41,238
Other liabilities		218		4,705
Total liabilities		41,456		47,593
Total shareholders' equity		132,522		130,507
Total liabilities and shareholders' equity	$	173,978	$	178,100

	2013			2012			2011
INCOME
Dividends from subsidiaries	$	5,179		$	---		$	---
Other		---			---			---
Total income		5,179			---			---
EXPENSE
Interest expense		1,563			1,719			1,598
Other expense		575			555			588
Total expense		2,138			2,274			2,186
Income (loss) before income tax and equity in undistributed earnings of subsidiaries		3,041			(2,274	)		(2,186	)
Equity in undistributed earnings of subsidiaries		5,770			35,338			8,015
Income before income tax		8,811			33,064			5,829
Income tax benefit		(738	)		(2,426	)		---
Net income	$	9,549		$	35,490		$	5,829
Net income (loss) available to common shares	$	(8,026	)	$	35,490		$	5,829
Comprehensive income	$	6,634		$	36,072		$	6,196

	2013			2012			2011
Cash flows from operating activities
Net income	$	9,549		$	35,490		$	5,829
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed earnings of subsidiaries		(5,770	)		(35,338	)		(8,015	)
(Increase) decrease in other assets		(740	)		(2,424	)		428
Increase (decrease) in other liabilities		(4,487	)		1,524			1,395
Net cash from operating activities		(1,448	)		(748	)		(363	)
Cash flows from investing activities
Investment in subsidiaries		---			---			(10,000	)
Net cash from investing activities		---			---			(10,000	)
Cash flows from investing activities
Proceeds from issuance of subordinated note and conversion to common stock		---			---			1,000
Proceeds from issuance of common stock		---			---			19,319
Redemption of subordinated debt		(1,650	)		---			---
Repurchases of shares		(45	)		---			---
Cash paid in preferred stock exchange		(4,734	)		---			---
Net cash from financing activities		(6,429	)		---			20,319
Net change in cash and cash equivalents		(7,877	)		(748	)		9,956
Cash and cash equivalents at beginning of year		9,787			10,535			579
Cash and cash equivalents at end of year	$	1,910		$	9,787		$	10,535

Supplemental noncash disclosures:
Conversion of subordinated note to 491,830 shares of common stock	$	---		$	---		$	1,003
Conversion of 300 shares of Preferred Series B to 50,000 shares of common stock		300			---			---
Exchange of 31,290 shares of Preferred Series A to 5,973,519 shares of common stock		30,604			---			---
Exchange of 2,300 shares of Preferred Series B to 457,159 shares of common stock		2,260			---			---