HOLLAND — Costs from the COVID-19 pandemic lowered Macatawa Bank Corp.’s most recent quarterly earnings.
Holland-based Macatawa Bank (Nasdaq: MCBC) on Thursday reported third quarter net income of $7.1 million, or 21 cents per diluted share. That compared with $8.2 million in net income, or 24 cents per diluted share, in the third quarter of 2019.
The quarterly results include a $500,000 provision for loan losses.
President and CEO Ron Haan said he was “pleased to report solid profitability for the third quarter of 2020, despite the challenges of operating during a continuing worldwide pandemic.”
“The COVID-19 pandemic has continued to have a significant impact on our community, but the company has again proven resilient and consistent in serving the financial needs of our customers and our community,” Haan said in Macatawa’s earnings release. “We will continue to experience challenges relating to the impact of COVID-19 on our customers and our business. We have actively worked with our borrowers to provide payment relief where possible while protecting the company’s position.”
Macatawa Bank provided short-term loan modifications on $337.2 million in loans through the third quarter of 2020. About 75 percent of the loans were either paid off or have returned to their normal loan payment terms as of Sept. 30, Haan said.
“Our capital levels significantly exceed regulatory requirements, and we believe our strong balance sheet should provide the strength and stability to weather these difficult times,” he said.
Through three quarters of 2020, Macatawa Bank recorded $21.1 million in net income, or 62 cents per diluted share, versus $23.8 million, or 70 cents per diluted share, in the first nine months of 2019.
Macatawa Bank has 26 offices in Ottawa, Kent and northern Allegan counties with total assets of $2.50 billion in $2.17 billion in total deposits.