HOLLAND — Earnings at Macatawa Bank Corp. declined for the first quarter, largely from higher a loan-loss provision because of the COVID-19 pandemic.
The Holland-based Macatawa Bank (Nasdaq: MCBC) on Thursday afternoon reported quarterly net income of $6.4 million, or 19 cents per diluted share, down from $7.6 million, or 22 cents per diluted share, in the same period a year earlier.
The bank attributed much of the earnings decline to an increase in the loan-loss provision to $700,000, up significantly from $250,000 in the first quarter of 2019. Interest and non-interest income declined as well.
“There are challenges ahead relating to the impact of COVID-19 on our customers and our business. We expect to see increased delinquencies and loan losses. However, we believe we have taken appropriate steps to position the bank to weather these challenges by proactively seeking to help our customers, bolstering our allowance for loan losses, maintaining strong capital and holding ample on-balance sheet liquidity,” President and CEO Ron Haan said in a statement. “Our disciplined approach to lending and balance sheet management allowed us to mitigate some of the unprecedented challenges we faced beginning toward the end of the first quarter of 2020 due to the COVID-19 pandemic.”
Macatawa Bank reported that it submitted and earned approval for more than 1,200 applications totaling more than $300 million in loans to the U.S. Small Business Administration’s Paycheck Protection Program.
Macatawa Bank has 26 offices in Ottawa, Kent and Allegan counties with $2.03 billion in total assets at the end of the first quarter.