HOLLAND, Mich., July 29, 2010 (GLOBE NEWSWIRE) -- Macatawa Bank Corporation (Nasdaq:MCBC) today announced a return to profitability and improvements in several key capital and operational ratios in the second quarter 2010. The Company's results for the quarter included:
- Pre-tax net income of $3.1 million
- After-tax net income of $1.7 million, compared to a loss of $30.4 million in the same quarter of last year
- Net charge-offs of $6.3 million, down 54 percent from the first quarter 2010 ($13.6 million), 72 percent less than the second quarter 2009 ($22.1 million)
- Sixth consecutive quarter of improvement in net interest margin – now at 3.29 percent
- Solid improvement in capital ratios – remained categorized as "adequately capitalized" under applicable regulatory capital requirements
- Deposit accounts remain insured by the FDIC up to the maximum amount permitted by law
Macatawa reported net income available to common shares of $1.7 million, or $0.10 per diluted share, for the second quarter 2010, compared to a net loss available to common shares of $31.3 million, or ($1.82) per diluted share, for the second quarter 2009 and a net loss of $21.1 million for the first quarter 2010. For the first half of 2010, the Company's net loss available to common shares totaled $19.4 million in 2010 compared to $36.4 million for the same period in 2009.
"Eight months ago, in an extremely challenging environment, we began an all out effort to instill business discipline and sound banking principles throughout the entire organization," said Richard L. Postma, Chairman of Macatawa Bank Corporation. "The second quarter results and our first profitable period in almost two years, coupled with improvements in nearly every key capital and performance metric, certainly are positive steps, but we still have a great deal of work to do to return the Company to financial health."