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)

3 Months Ended

Mar. 31, 2014

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)
March 31, 2014
U.S. Treasury and federal agency securities	$	62,559		$	---	$	62,559	$	---
U.S. Agency MBS and CMOs		18,897			---		18,897		---
Tax-exempt state and municipal bonds		31,482			---		31,482		---
Taxable state and municipal bonds		25,889			---		25,889		---
Corporate bonds and other debt securities		13,026			---		13,026		---
Other equity securities		1,474			---		1,474		---
Loans held for sale		194			---		194		---
Interest rate swaps		132			---		---		132
Interest rate swaps		(132	)		---		---		(132	)

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	)

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)
March 31, 2014
Impaired loans	$	21,891	$	---	$	---	$	21,891
Other real estate owned		27,095		---		---		27,095

December 31, 2013
Impaired loans	$	22,403	$	---	$	---	$	22,403
Other real estate owned		29,711		---		---		29,711

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 March 31, 2014 and December 31, 2013 (dollars in thousands).

	Level in	March 31, 2014						December 31, 2013
	Fair Value	Carrying			Fair			Carrying			Fair
	Hierarchy	Amount			Value			Amount			Value
Financial assets
Cash and due from banks	Level 1	$	34,615		$	34,615		$	38,714		$	38,714
Cash equivalents	Level 2		92,668			92,668			118,178			118,178
Interest-bearing time deposits in other financial institutions	Level 2		32,500			32,466			25,000			25,003
Securities held to maturity	Level 3		19,175			19,143			19,248			19,278
FHLB stock			11,236		NA				11,236		NA
Loans, net	Level 2		987,837			979,068			999,176			990,084
Bank owned life insurance	Level 3		27,671			27,671			27,517			27,517
Accrued interest receivable	Level 2		3,511			3,511			3,231			3,231

Financial liabilities
Deposits	Level 2		(1,216,778	)		(1,217,640	)		(1,249,734	)		(1,250,886	)
Other borrowed funds	Level 2		(88,774	)		(89,227	)		(89,991	)		(90,321	)
Long-term debt	Level 2		(41,238	)		(35,091	)		(41,238	)		(35,098	)
Subordinated debt	Level 2		---			---			---			---
Accrued interest payable	Level 2		(314	)		(314	)		(308	)		(308	)

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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Reference 10: http://www.xbrl.org/2003/role/presentationRef

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Reference 12: http://www.xbrl.org/2003/role/presentationRef

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+ Details