HOLLAND, Mich., Jan. 31, 2013 (GLOBE NEWSWIRE) -- Macatawa Bank Corporation (Nasdaq:MCBC) today announced its results for the fourth quarter and full year of 2012, continuing its trend of improvement in key operating metrics and financial performance.
- Earnings of $21.2 million in the fourth quarter of 2012 and $35.5 million for the full year of 2012 were significantly higher than for the same periods in the prior year
- Earnings were positively impacted by reversal of the deferred tax asset valuation allowance of $18.9 million in the fourth quarter of 2012
- Net loan growth for the fourth quarter, the first quarterly increase in total loans since the fourth quarter of 2008
- Continued improvement in loan portfolio quality
- Strong retail banking results – growth in core deposits and high mortgage loan origination volumes
- Risk-based regulatory capital ratios at their highest levels in the Company's history and comfortably above the minimums to be categorized as "well capitalized" under applicable regulatory capital guidelines
- Significant reduction in costs associated with nonperforming assets – down 32% from the fourth quarter of 2011 and down 36% for the full year 2012 compared to 2011, although such costs continue to be elevated
Macatawa reported net income available to common shares of $21.2 million, or $0.78 per diluted share, in the fourth quarter of 2012 compared to net income available to common shares of $1.1 million, or $0.04 per diluted share, for the fourth quarter of 2011. For the full year of 2012, the Company reported net income available to common shares of $35.5 million, or $1.31 per diluted share, compared to net income available to common shares of $5.8 million, or $0.26 per diluted share, for the same period in 2011.
"The Company's results for the fourth quarter and the full year of 2012 reflect solid improvement in our core business performance enhanced by favorable one-time events," said Richard L. Postma, Chairman of the Board of the Company. "Large recoveries throughout the year of previously charged-off loans and a large loan prepayment fee led to significant increases in earnings in 2012. The reversal of our deferred tax asset ("DTA") valuation allowance added $18.9 million in earnings in the fourth quarter. The DTA allowance reversal was particularly important as it would not have been possible without the significant improvement in our three-year cumulative earnings results. These one-time events are all very positive and reflect hard work by the Macatawa employees."