Macatawa Bank Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Cover
- Document and Entity Information
Financial Statements
Notes to Financial Statements
Accounting Policies
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
Notes Tables
Notes Details

FEDERAL INCOME TAXES (Tables)

v3.23.1

FEDERAL INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2023

FEDERAL INCOME TAXES [Abstract]

Income Tax Expense

Income tax expense was as follows (dollars in thousands):

	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
Current	$	2,825	$	935
Deferred		150		456
	$	2,975	$	1,391

Difference between Financial Statement Tax Expense and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income

The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands):

	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
Statutory rate		21	%		21	%
Statutory rate applied to income before taxes	$	3,146		$	1,552
Deduct
Tax-exempt interest income		(147	)		(154	)
Bank-owned life insurance		(42	)		(50	)
Other, net		18			43
	$	2,975		$	1,391

Deferred Tax Assets and Liabilities

The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands):

	March 31, 2023			December 31, 2022
Deferred tax assets
Allowance for loan losses	$	3,527		$	3,210
Net deferred loan fees		—			—
Nonaccrual loan interest		12			12
Valuation allowance on other real estate owned		—			—
Unrealized loss on securities available for sale and transferred to held to maturity		6,980			8,394
Other		297			257
Gross deferred tax assets		10,816			11,873
Valuation allowance		—			—
Total net deferred tax assets		10,816			11,873
Deferred tax liabilities
Depreciation		(1,104	)		(1,098	)
Net deferred loan fees		(20	)		(309	)
Prepaid expenses		(309	)		(21	)
Other		(912	)		(733	)
Gross deferred tax liabilities		(2,345	)		(2,161	)
Net deferred tax asset	$	8,471		$	9,712

- References

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
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