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

Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities
Net income	$ 10,473us-gaap_NetIncomeLoss	$ 9,549us-gaap_NetIncomeLoss	$ 35,490us-gaap_NetIncomeLoss
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	3,139	3,067	2,970
Stock compensation expense	338us-gaap_ShareBasedCompensation	160us-gaap_ShareBasedCompensation	9us-gaap_ShareBasedCompensation
Tax effect of vested stock awards	63	0	0
Provision for loan losses	(3,350)us-gaap_ProvisionForLoanAndLeaseLosses	(4,250)us-gaap_ProvisionForLoanAndLeaseLosses	(7,100)us-gaap_ProvisionForLoanAndLeaseLosses
Origination of loans for sale	(73,516)	(107,988)	(140,151)
Proceeds from sales of loans originated for sale	75,023	116,757	135,929
Net gains on mortgage loans	(1,939)us-gaap_GainLossOnSaleOfMortgageLoans	(2,554)us-gaap_GainLossOnSaleOfMortgageLoans	(2,882)us-gaap_GainLossOnSaleOfMortgageLoans
Gain on sales of securities	(75)	(120)	(73)
Write-down of other real estate	1,623us-gaap_ImpairmentOfRealEstate	2,922us-gaap_ImpairmentOfRealEstate	5,236us-gaap_ImpairmentOfRealEstate
Net (gain) loss on sales of other real estate	(624)	(1,098)	59
Loss on disposal of fixed assets	0	0	89
Change in net deferred tax asset	2,849	4,150	(18,858)
FHLB Advance prepayment penalty	0	0	322
Change in accrued interest receivable and other assets	1,555	124	2,149
Earnings in bank-owned life insurance	(678)us-gaap_BankOwnedLifeInsuranceIncome	(713)us-gaap_BankOwnedLifeInsuranceIncome	(847)us-gaap_BankOwnedLifeInsuranceIncome
Change in accrued expenses and other liabilities	1,737	(3,694)	1,153
Net cash from operating activities	16,618	16,312	13,495
Cash flows from investing activities
Loan originations and payments, net	(79,524)	7,741	8,657
Change in interest-bearing deposits in other financial institutions	5,000	(25,000)	0
Purchases of securities available for sale	(43,882)	(42,594)	(115,248)
Purchases of securities held to maturity	(25,225)	(19,732)	(4,000)
Purchase FHLB stock	(2,519)	0	0
Proceeds from:
Maturities and calls of securities available for sale	22,528	13,159	40,042
Sales of securities available for sale	10,936	5,241	4,595
Principal paydowns on securities	3,642mcbc_PrincipalPaydownsOnSecurities	6,100mcbc_PrincipalPaydownsOnSecurities	3,884mcbc_PrincipalPaydownsOnSecurities
Sales of other real estate	12,487	16,501	18,729
Sale of FHLB stock	2,517	0	0
Additions to premises and equipment	(1,766)	(2,407)	(707)
Net cash from investing activities	(95,806)	(40,991)	(44,048)
Cash flows from financing activities
Change in deposits	56,591us-gaap_IncreaseDecreaseInDeposits	(36,527)us-gaap_IncreaseDecreaseInDeposits	70,972us-gaap_IncreaseDecreaseInDeposits
Repayments of other borrowed funds and subordinated debt	(1,884)us-gaap_RepaymentsOfLongTermDebt	(3,481)us-gaap_RepaymentsOfLongTermDebt	(57,103)us-gaap_RepaymentsOfLongTermDebt
Proceeds from issuance of common stock	4	0	0
Cash retained (paid) related to tax impact of vested stock awards	(63)	0	0
Cash dividends paid	(2,689)us-gaap_PaymentsOfDividends	0us-gaap_PaymentsOfDividends	0us-gaap_PaymentsOfDividends
Common stock issuance costs	(102)us-gaap_PaymentsOfStockIssuanceCosts	0us-gaap_PaymentsOfStockIssuanceCosts	0us-gaap_PaymentsOfStockIssuanceCosts
Repurchase shares for taxes withheld on vested restricted stock	(106)	(45)	0
Cash paid in preferred stock exchange	0mcbc_CashPaidInPreferredStockExchange	(4,734)mcbc_CashPaidInPreferredStockExchange	0mcbc_CashPaidInPreferredStockExchange
Net cash from financing activities	51,751	(44,787)	13,869
Net change in cash and cash equivalents	(27,437)	(69,466)	(16,684)
Cash and cash equivalents at beginning of period	156,892	226,358	243,042
Cash and cash equivalents at end of period	129,455	156,892	226,358
Supplemental cash flow information
Interest paid	5,615us-gaap_InterestPaid	11,886us-gaap_InterestPaid	8,473us-gaap_InterestPaid
Income taxes paid	90us-gaap_IncomeTaxesPaid	120us-gaap_IncomeTaxesPaid	275us-gaap_IncomeTaxesPaid
Supplemental noncash disclosures:
Transfers from loans to other real estate	4,932us-gaap_TransferOfOtherRealEstate	3,539us-gaap_TransferOfOtherRealEstate	9,168us-gaap_TransferOfOtherRealEstate
Security settlement	0mcbc_SecuritiesPurchasedNotSettled	1,626mcbc_SecuritiesPurchasedNotSettled	1,626mcbc_SecuritiesPurchasedNotSettled
Conversion of 300 shares of Preferred Series B to 50,000 shares of common stock	0	300	0
Exchange of 31,290 shares of Preferred Series A to 5,973,519 shares of common stock	0	30,604	0
Exchange of 2,300 shares of Preferred Series B to 457,159 shares of common stock	$ 0	$ 2,260	$ 0