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

Annual report pursuant to Section 13 and 15(d)

Note 3 - Loans and Allowance for Credit Losses (Tables)

Note 3 - Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

	2023			2022
Commercial and industrial	$	506,974		$	441,716

Commercial real estate:
Residential developed		5,809			7,234
Unsecured to residential developers		800			—
Vacant and unimproved		39,534			36,270
Commercial development		84			103
Residential improved		123,875			112,791
Commercial improved		260,188			259,281
Manufacturing and industrial		154,809			121,924
Total commercial real estate		585,099			537,603

Consumer
Residential mortgage		189,818			139,148
Unsecured		129			121
Home equity		53,039			56,321
Other secured		3,327			2,839
Total consumer		246,313			198,429

Total loans		1,338,386			1,177,748
Allowance for credit losses		(17,442	)		(15,285	)
	$	1,320,944		$	1,162,463

Financing Receivable, Allowance for Credit Loss [Table Text Block]

2023	Commercial and Industrial			Commercial Real Estate			Consumer			Unallocated			Total
Beginning balance	$	5,596		$	7,180		$	2,458		$	51		$	15,285
Impact of adoption of ASU 2016-03		1,299			(212	)		389			—			1,476
Charge-offs		—			—			(116	)		—			(116	)
Recoveries		33			100			114			—			247
Provision for credit losses (1)		(57	)		96			530			(19	)		550
Ending Balance	$	6,871		$	7,164		$	3,375		$	32		$	17,442

2022	Commercial and Industrial			Commercial Real Estate			Consumer			Unallocated		Total
Beginning balance	$	5,176		$	8,051		$	2,633		$	29	$	15,889
Charge-offs		(38	)		—			(126	)		—		(164	)
Recoveries		191			300			194			—		685
Provision for credit losses (1)		267			(1,171	)		(243	)		22		(1,125	)
Ending Balance	$	5,596		$	7,180		$	2,458		$	51	$	15,285

Gross Charge-offs by Portfolio Segment and Origination Year [Table Text Block]

	*Term Loans By Origination Year*
													*Revolving*
December 31, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Loans*		*Total*


Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial development		—		—		—		—		—		—		—		—
Commercial improved		—		—		—		—		—		—		—		—
Manufacturing and industrial		—		—		—		—		—		—		—		—
Residential development		—		—		—		—		—		—		—		—
Residential improved		—		—		—		—		—		—		—		—
Vacant and unimproved		—		—		—		—		—		—		—		—
Total commercial		—		—		—		—		—		—		—		—

Residential mortgage		—		—		—		—		—		—		—		—
Consumer unsecured		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		116		116
Total consumer		—		—		—		—		—		—		116		116

Total loans	$	—	$	—	$	—	$	—	$	—	$	—	$	116	$	116

Schedule of Collateral Dependent Loans [Table Text Block]

	Collateral Type
					Allowance
December 31, 2023	Real Estate		Other		Allocated

Commercial and industrial	$	—	$	—	$	—
Commercial real estate:
Residential developed		—		—		—
Unsecured to residential developers		—		—		—
Vacant and unimproved		—		—		—
Commercial development		—		—		—
Residential improved		26		—		—
Commercial improved		292		—		17
Manufacturing and industrial		1,136		—		—
		1,454		—		17
Consumer
Residential mortgage		—		—		—
Unsecured		—		—		—
Home equity		—		—		—
Other secured		—		—		—
Consumer		—		—		—
Total	$	1,454	$	—	$	17

Allowance For Credit Losses And Recorded Investment In Loans By Portfolio Segment [Table Text Block]

December 31, 2022	Commercial and Industrial		Commercial Real Estate		Consumer		Unallocated		Total
Allowance for credit losses:
Ending allowance attributable to loans:
Individually reviewed for impairment	$	55	$	20	$	220	$	—	$	295
Collectively evaluated for impairment		5,541		7,160		2,238		51		14,990
Total ending allowance balance	$	5,596	$	7,180	$	2,458	$	51	$	15,285

Loans:
Individually reviewed for impairment	$	3,603	$	518	$	2,886	$	—	$	7,007
Collectively evaluated for impairment		438,113		537,085		195,543		—		1,170,741
Total ending loans balance	$	441,716	$	537,603	$	198,429	$	—	$	1,177,748

Loans individually evaluated for impairment by class of loans [Table Text Block]

December 31, 2022	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Year-To-Date Average Recorded Investment
With no related allowance recorded:
Commercial and industrial	$	3,278	$	3,278	$	—	$	2,338

Commercial real estate:
Residential improved		31		31		—		33
		31		31		—		33

Consumer		—		—		—		—
Total with no related allowance recorded	$	3,309	$	3,309	$	—	$	2,371

With an allowance recorded:
Commercial and industrial	$	325	$	325	$	55	$	365

Commercial real estate:
Commercial improved		307		307		9		313
Manufacturing and industrial		180		180		11		185
		487		487		20		498
Consumer:
Residential mortgage		2,653		2,653		202		2,619
Unsecured		29		29		2		29
Home equity		204		204		16		234
		2,886		2,886		220		2,882
Total with an allowance recorded	$	3,698	$	3,698	$	295	$	3,745
Total	$	7,007	$	7,007	$	295	$	6,116

Financing Receivable, Nonaccrual [Table Text Block]

December 31, 2023	Nonaccrual with No Allowance		Nonaccrual with Allowance		Total Nonaccrual		Over 90 days Accruing		Total Nonperforming Loans
Commercial and industrial	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Residential developed		—		—		—		—		—
Unsecured to residential developers		—		—		—		—		—
Vacant and unimproved		—		—		—		—		—
Commercial development		—		—		—		—		—
Residential improved		—		—		—		—		—
Commercial improved		—		—		—		—		—
Manufacturing and industrial		—		—		—		—		—
		—		—		—		—		—
Consumer:
Residential mortgage		—		1		1		—		1
Unsecured		—		—		—		—		—
Home equity		—		—		—		—		—
Other secured		—		—		—		—		—
		—		1		1		—		1
Total	$	—	$	1	$	1	$	—	$	1

December 31, 2022	Nonaccrual		Nonaccrual		Nonaccrual		Over 90 days Accruing		Total Nonperforming Loans
Commercial and industrial	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Residential developed		—		—		—		—		—
Unsecured to residential developers		—		—		—		—		—
Vacant and unimproved		—		—		—		—		—
Commercial development		—		—		—		—		—
Residential improved		—		—		—		—		—
Commercial improved		—		—		—		—		—
Manufacturing and industrial		—		—		—		—		—
		—		—		—		—		—
Consumer:
Residential mortgage		—		78		78		—		78
Unsecured		—		—		—		—		—
Home equity		—		—		—		—		—
Other secured		—		—		—		—		—
		—		78		78		—		78
Total	$	—	$	78	$	78	$	—	$	78

Financing Receivable, Past Due [Table Text Block]

December 31, 2023	30-90 Days		Greater Than 90 Days		Total Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	506,974	$	506,974

Commercial real estate:
Residential developed		—		—		—		5,809		5,809
Unsecured to residential developers		—		—		—		800		800
Vacant and unimproved		—		—		—		39,534		39,534
Commercial development		—		—		—		84		84
Residential improved		—		—		—		123,875		123,875
Commercial improved		—		—		—		260,188		260,188
Manufacturing and industrial		—		—		—		154,809		154,809
		—		—		—		585,099		585,099
Consumer:
Residential mortgage		44		—		44		189,774		189,818
Unsecured		—		—		—		129		129
Home equity		—		—		—		53,039		53,039
Other secured		—		—		—		3,327		3,327
		44		—		44		246,269		246,313
Total	$	44	$	—	$	44	$	1,338,342	$	1,338,386

December 31, 2022	30-90 Days		Greater Than 90 Days		Total Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	441,716	$	441,716

Commercial real estate:
Residential developed		—		—		—		7,234		7,234
Unsecured to residential developers		—		—		—		—		—
Vacant and unimproved		—		—		—		36,270		36,270
Commercial development		—		—		—		103		103
Residential improved		—		—		—		112,791		112,791
Commercial improved		71		—		71		259,210		259,281
Manufacturing and industrial		—		—		—		121,924		121,924
		71		—		71		537,532		537,603
Consumer:
Residential mortgage		—		77		77		139,071		139,148
Unsecured		—		—		—		121		121
Home equity		24		—		24		56,297		56,321
Other secured		—		—		—		2,839		2,839
		24		77		101		198,328		198,429
Total	$	95	$	77	$	172	$	1,177,576	$	1,177,748

Financing Receivable, Modified [Table Text Block]

	December 31, 2023
	Number of Loans		Outstanding Recorded Balance		Percentage to Total Loans
Commercial and industrial		2	$	244		0.02	%
Commercial real estate		3		485		0.04	%
Consumer		31		2,584		0.19	%
		36	$	3,313		0.25	%

	2023
Accruing - nonaccrual at modification	$	—
Accruing - accruing at modification		3,313
Accruing - upgraded to accruing after six consecutive payments		—
	$	3,313

Financing Receivable Credit Quality Indicators [Table Text Block]

	*Term Loans Amortized Cost Basis By Origination Year and Risk Grades*
December 31, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving*		*Total*
Commercial and industrial
Grades 1-3	$	44,605	$	50,019	$	14,727	$	4,795	$	11,941	$	33,652	$	64,840	$	224,579
Grade 4		83,219		41,778		18,081		12,245		1,954		42,601		70,902		270,780
Grade 5		—		1,254		49		269		2		1,559		8,459		11,592
Grade 6		—		—		5		—		—		18		—		23
Grade 7-8		—		—		—		—		—		—		—		—
	$	127,824	$	93,051	$	32,862	$	17,309	$	13,897	$	77,830	$	144,201	$	506,974
Residential development
Grades 1-3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Grade 4		887		102		—		—		—		—		4,820		5,809
Grade 5		—		—		—		—		—		—		—		—
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	887	$	102	$	—	$	—	$	—	$	—	$	4,820	$	5,809
Unsecured to residential developers
Grades 1-3	$	—	$	—	$	—	$	—	$	—	$	—	$	800	$	800
Grade 4		—		—		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—		—		—
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	—	$	—	$	—	$	—	$	—	$	—	$	800	$	800
Vacant and unimproved
Grades 1-3	$	928	$	7,118	$	9,694	$	6,703	$	—	$	70	$	520	$	25,033
Grade 4		2,961		1,315		729		7,811		154		—		207		13,177
Grade 5		1,324		—		—		—		—		—		—		1,324
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	5,213	$	8,433	$	10,423	$	14,514	$	154	$	70	$	727	$	39,534
Commercial development
Grades 1-3	$	—	$	84	$	—	$	—	$	—	$	—	$	—	$	84
Grade 4		—		—		—		—		—		—		—		—
Grade 5		—		—		—		—		—		—		—		—
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	—	$	84	$	—	$	—	$	—	$	—	$	—	$	84
Residential improved
Grades 1-3	$	5,708	$	13,755	$	1,235	$	8,408	$	248	$	4,511	$	719	$	34,584
Grade 4		2,106		545		34,461		1,173		7,021		15,188		28,771		89,265
Grade 5		—		—		26		—		—		—		—		26
Grade 6		—		—		—		—		—		—		—		—
Grade 7-8		—		—		—		—		—		—		—		—
	$	7,814	$	14,300	$	35,722	$	9,581	$	7,269	$	19,699	$	29,490	$	123,875
Commercial improved
Grades 1-3	$	13,475	$	19,837	$	49,452	$	18,894	$	11,866	$	11,526	$	4,851	$	129,901
Grade 4		11,627		34,347		20,551		30,722		24,118		2,033		1,754		125,152
Grade 5		—		22		—		—		1,761		3,060		—		4,843
Grade 6		—		—		292		—		—		—		—		292
Grade 7-8		—		—		—		—		—		—		—		—
	$	25,102	$	54,206	$	70,295	$	49,616	$	37,745	$	16,619	$	6,605	$	260,188
Manufacturing and industrial
Grades 1-3	$	8,005	$	41,463	$	5,742	$	6,417	$	4,261	$	3,756	$	802	$	70,446
Grade 4		16,604		26,292		12,028		7,412		5,467		12,924		350		81,077
Grade 5		167		—		—		—		—		295		—		462
Grade 6		232		—		—		—		—		2,592		—		2,824
Grade 7-8		—		—		—		—		—		—		—		—
	$	25,008	$	67,755	$	17,770	$	13,829	$	9,728	$	19,567	$	1,152	$	154,809

Total Commercial
Grades 1-3	$	72,721	$	132,276	$	80,850	$	45,217	$	28,316	$	53,515	$	72,532	$	485,427
Grade 4		117,404		104,379		85,850		59,363		38,714		72,746		106,804		585,260
Grade 5		1,491		1,276		75		269		1,763		4,914		8,459		18,247
Grade 6		232		—		297		—		—		2,610		—		3,139
Grade 7-8		—		—		—		—		—		—		—		—
	$	191,848	$	237,931	$	167,072	$	104,849	$	68,793	$	133,785	$	187,795	$	1,092,073

December 31, 2022	1		2		3		4		5		6		7		8		Total
Commercial and industrial	$	15,040	$	21,451	$	175,762	$	220,987	$	8,309	$	167	$	—	$	—	$	441,716

Commercial real estate:
Residential developed		—		—		—		7,234		—		—		—		—		7,234
Unsecured to residential developers		—		—		—		—		—		—		—		—		—
Vacant and unimproved		—		1,231		18,406		16,633		—		—		—		—		36,270
Commercial development		—		—		103		—		—		—		—		—		103
Residential improved		—		—		25,585		87,176		30		—		—		—		112,791
Commercial improved		—		17,802		83,769		151,641		5,762		307		—		—		259,281
Manufacturing & industrial		—		11,422		32,977		73,566		1,646		2,313		—		—		121,924
	$	15,040	$	51,906	$	336,602	$	557,237	$	15,747	$	2,787	$	—	$	—	$	979,319

	*Term Loans Amortized Cost Basis By Origination Year*
December 31, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving*		*Total*

Residential mortgage
Performing	$	71,574	$	39,537	$	25,400	$	9,588	$	4,868	$	27,510	$	11,341	$	189,818
Nonperforming		—		—		—		—		—		—		—		—
	$	71,574	$	39,537	$	25,400	$	9,588	$	4,868	$	27,510	$	11,341	$	189,818
Consumer unsecured
Performing	$	—	$	—	$	—	$	11	$	13	$	—	$	105	$	129
Nonperforming		—		—		—		—		—		—		—		—
	$	—	$	—	$	—	$	11	$	13	$	—	$	105	$	129
Home equity
Performing	$	518	$	661	$	217	$	451	$	209	$	1,866	$	49,117	$	53,039
Nonperforming		—		—		—		—		—		—		—		—
	$	518	$	661	$	217	$	451	$	209	$	1,866	$	49,117	$	53,039
Other
Performing	$	1,752	$	658	$	545	$	220	$	32	$	120	$	—	$	3,327
Nonperforming		—		—		—		—		—		—		—		—
	$	1,752	$	658	$	545	$	220	$	32	$	120	$	—	$	3,327

Total Retail	$	73,844	$	40,856	$	26,162	$	10,270	$	5,122	$	29,496	$	60,563	$	246,313

December 31, 2022	Residential Mortgage		Consumer Unsecured		Home Equity		Consumer Other
Performing	$	139,071	$	121	$	56,321	$	2,839
Nonperforming		77		—		—		—
Total	$	139,148	$	121	$	56,321	$	2,839