HOLLAND, Mich., Oct. 28, 2010 (GLOBE NEWSWIRE) -- Macatawa Bank Corporation (Nasdaq:MCBC) today announced its second consecutive quarter of profitability and improvements in several key capital and operational ratios in the third quarter 2010. The Company's results for the quarter included:
- Net income of $703,000, compared to a loss of $20.9 million in the same quarter of last year
- Improvement in asset quality metrics
- Non-performing loans down 13 percent compared to second quarter 2010
- Net charge-offs of $4.6 million, down 27 percent from second quarter 2010 ($6.3 million), down 66 percent from first quarter 2010 ($13.6 million), down 59 percent from the third quarter 2009 ($11.2 million)
- Provision for loan losses of $550,000, down from $21 million in third quarter 2009
- Continued year-over-year improvement in net interest margin, now at 3.22 percent
- Solid improvement in capital ratios – remain categorized as "adequately capitalized" under applicable regulatory capital requirements
- Stronger on-balance sheet liquidity
- Deposit accounts remain insured by the FDIC up to the maximum amount permitted by law
Macatawa reported net income available to common shares of $703,000, or $0.04 per diluted share, for the third quarter 2010, compared to a net loss available to common shares of $20.9 million, or $1.18 per diluted share, for the third quarter 2009 and net income of $1.7 million, or $0.10 per diluted share, for the second quarter 2010. For the first nine months of 2010, the Company's net loss available to common shares totaled $18.7 million, compared to a net loss of $57.3 million for the same period in 2009.
"We are pleased to have achieved two consecutive quarters of profitability and improvements in several capital and performance metrics," said Richard L. Postma, Chairman of Macatawa Bank Corporation. "These results are the product of hard and focused work by our people and the disciplined approach we continue to implement across the Company. But to be clear, two profitable quarters are only a beginning. We recognize that the results from the two most recent quarters are preceded by six consecutive quarters of high net losses. We must continue to focus our efforts to build accountability, confidence and performance in Macatawa Bank. Our goal remains to return to 'well-capitalized' status, and we continue to work closely with regulators in our efforts to comply with the terms of our consent order. We remain committed to doing the things necessary to achieve sustained profitability in order to serve West Michigan as a strong community bank. There is much work yet to be done."