Macatawa Bank Corp. credits higher net interest income, federal tax reform and cost control for a 17.5 percent increase in earnings for the second quarter.
Despite strong business optimism and continued economic expansion, bankers say they still see their West Michigan business clients taking a cautious approach to debt.
A lower federal corporate tax rate contributed to higher earnings for West Michigan community banks that reported quarterly results this week.
Here is the MiBiz Growth Report for March 5, 2018:
• M&A: After nearly doubling the business over the last two and a half years, the private equity owners of Action Fabricators Inc. decided the market timing was right to find a partner to take the company to the next level. Last week, Chattanooga, Tenn.-based River Associates Investments LLC announced it had sold the Grand Rapids-based manufacturer of adhesive-backed products for the automotive and medical device industry to Boyd Corp. of Modesto, Calif. Terms of the deal were not disclosed. Action Fabricators grew revenues from around $45 million in 2015 to nearly $80 million at the time of the sale. President and CEO Jon Rudolph and the rest of the management team will stay on with the new owners. Boyd is a portfolio company of San Francisco-based Genstar Capital. Milwaukee, Wis.-based Robert W. Baird & Co. represented Action Fabricators in the deal.
Macatawa Bank Corp. recorded higher earnings for 2017, despite a decline in net income for the fourth quarter from having to revalue a deferred tax asset after federal tax reform late in the year.
While inventory remains constrained, the value of commercial real estate transactions continues to gather momentum in West Michigan.
Macatawa Bank Corp. recorded strong earnings growth for the second quarter.
Over the past decade, many small business owners put off expansions or capital equipment purchases for as long as they could.
After opening its first West Michigan office late last year, Level One Bank has brought on veteran commercial banker Doug Kohlbeck as a senior vice president.