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April 22 , 2021 A MACATAWA BANK® M Macatawa Bank Corporation Reports First Quarter 2021 Results HOLLAND , Mich . , April 22 , 2021 ( GLOBE NEWSWIRE ) -- Macatawa Bank Corporation ( NASDAQ : MCBC ) , the holding company for Macatawa Bank ( collectively , the " Company " ) , today announced its results for the first quarter 2021 . • Net income of $ 7.8 million in first quarter 2021 versus $ 6.4 million in first quarter 2020 - up 21 % • No provision for loan losses taken in the first quarter 2021 versus $ 700,000 taken in the first quarter 2020 • Net interest margin decreased 92 basis points to 2.33 % for the first quarter 2021 compared to the first quarter 2020 reflecting a significant increase in on - balance sheet liquidity and previous decreases in the federal funds rate • Growth in non - interest income of $ 1.5 million ( 32 % ) from first quarter 2020 driven by increased gains on sales of mortgage loans • Loan portfolio balances down by $ 12.4 million ( 1 % ) from first quarter 2020 • Deposit balances up by $ 682.6 million ( 40 % ) from first quarter 2020 • Capital and liquidity levels increased further during the quarter and remain strong The Company reported net income of $ 7.8 million , or $ 0.23 per diluted share , in the first quarter 2021 compared to $ 6.4 million , or $ 0.19 per diluted share , in the first quarter 2020 . " We are pleased to report good results for the first quarter of 2021 despite continuing challenges posed by the COVID - 19 pandemic , ” said Ronald L. Haan , President and CEO of the Company . " We remain focused on serving the financial needs of our customers and our community as evidenced by our continuing participation in the Small Business Administration's Paycheck Protection Program ( PPP ) after Congress approved a third round of lending under the program . We originated 747 additional PPP loans totaling $ 96.9 million in the first quarter 2021. The loans were distributed to many local small businesses in order to protect jobs and allow continued paychecks to employees in those companies . Despite a challenging environment , we produced $ 7.8 million in earnings for the first quarter of 2021. Mortgage gains in the first quarter of 2021 were over three times the level achieved in the same period a year ago and offset much of the reduction in net interest income caused by the decrease in market interest rates in 2020. Our asset quality has been resilient and , as a result , no provision for loan losses was necessary in the first quarter of 2021 . Those items , coupled with our disciplined approach to managing our expenses caused the 21 percent increase in net income in the first quarter of 2021 compared to the first quarter of 2020. " Mr. Haan concluded : " 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 . In the meantime , we are working to further support the