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

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) (Tables)

12 Months Ended

Dec. 31, 2014

	2014		2013
ASSETS
Cash and cash equivalents	$	2,544	$	1,910
Investment in Bank subsidiary		177,312		167,292
Investment in other subsidiaries		1,491		1,504
Other assets		2,599		3,272
Total assets	$	183,946	$	173,978

LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt		41,238		41,238
Other liabilities		189		218
Total liabilities		41,427		41,456
Total shareholders' equity		142,519		132,522
Total liabilities and shareholders' equity	$	183,946	$	173,978

	2014			2013			2012
INCOME
Dividends from subsidiaries	$	4,139		$	5,179		$	---
Other		---			---			---
Total income		4,139			5,179			---
EXPENSE
Interest expense		1,311			1,563			1,719
Other expense		611			575			555
Total expense		1,922			2,138			2,274
Income (loss) before income tax and equity in undistributed earnings of subsidiaries		2,217			3,041			(2,274	)
Equity in undistributed earnings of subsidiaries		7,592			5,770			35,338
Income before income tax		9,809			8,811			33,064
Income tax benefit		(664	)		(738	)		(2,426	)
Net income	$	10,473		$	9,549		$	35,490
Net income (loss) available to common shares	$	10,473		$	(8,026	)	$	35,490
Comprehensive income	$	12,489		$	6,634		$	36,072

	2014			2013			2012
Cash flows from operating activities
Net income	$	10,473		$	9,549		$	35,490
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed earnings of subsidiaries		(7,592	)		(5,770	)		(35,338	)
Stock compensation expense		2			---			---
Change in other assets		673			(740	)		(2,424	)
Change in other liabilities		(29	)		(4,487	)		1,524
Net cash from operating activities		3,527			(1,448	)		(748	)
Cash flows from investing activities
Investment in subsidiaries		---			---			---
Net cash from investing activities		---			---			---
Cash flows from investing activities
Proceeds from issuance of common stock		4			---			---
Cash dividends paid		(2,689	)		---			---
Common stock issuance costs		(102	)		---			---
Redemption of subordinated debt		---			(1,650	)		---
Repurchases of shares		(106	)		(45	)		---
Cash paid in preferred stock exchange		---			(4,734	)		---
Net cash from financing activities		(2,893	)		(6,429	)		---
Net change in cash and cash equivalents		634			(7,877	)		(748	)
Cash and cash equivalents at beginning of year		1,910			9,787			10,535
Cash and cash equivalents at end of year	$	2,544		$	1,910		$	9,787

Supplemental noncash disclosures:
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			---