HOLLAND — Macatawa Bank Corp. reported higher earnings for the first quarter as gains on mortgages tripled from a year earlier and more than offset lower interest income.
The Holland-based Macatawa Bank (Nasdaq: MCBC) on Thursday reported nearly $7.8 million in net income, or 23 cents per diluted share, for the first three months of 2021. That compares to net income of $6.4 million, or 19 cents per diluted share, in the first quarter of 2020.
The quarter included $2 million in fees from 747 loans totaling $96.9 million made during the first quarter under the federal government’s Paycheck Protection Program, as well as no quarterly loan loss provision.
“We continue to monitor challenges relating to the impact of COVID-19 on our customers and our business. We are encouraged by the distribution of vaccines and additional economic stimulus and look forward to eventually returning to a more normal operating environment,” President and CEO Ronald Haan said in a statement. “In the meantime, we are working to further support the communities we serve and believe our strong balance sheet should provide the strength and stability to weather the remainder of these difficult times.”
Macatawa Bank commercial loans increased by $66.4 million from a year earlier to total $1.18 billion, as total PPP loans of $253.8 million over the last year offset declines in other areas. Total loans dipped by $12.4 million to $1.38 billion.
Macatawa Bank has 26 offices in Ottawa, Kent and Allegan counties with $2.73 billion in total assets. The bank had total deposits of $2.38 billion at the end of the first quarter, an increase of $682.6 million, or 40 percent, from a year earlier.