Macatawa Bank reports Q1 EPS 29c, consensus 30c

Net interest margin of 3.26% in first quarter 2024 versus 3.44% in first quarter 2023 and 3.28% in fourth quarter 2023. Reports book value per share $8.53. The Company’s total risk-based regulatory capital ratio at March 31, 2024 was consistent with the ratio at December 31, 2023 and March 31, 2023. Macatawa Bank’s risk-based regulatory capital ratios continue to be at levels considerably above those required to be categorized as “well capitalized” under applicable regulatory capital guidelines. “We are pleased to report strong profitability and balance sheet results for the first quarter 2024,” said Jon Swets, President and CEO of the Company. “We have started the year right where we left off with continued loan portfolio growth and maintained our excellent asset quality. On the funding side of the balance sheet we continue to see a slowing of the shift in our deposits to higher interest bearing types. We believe our balance sheet is well positioned in the current environment. In addition to the $331.4 million of overnight funds we have at the end of the first quarter, we have over $270 million of investment securities maturing over the next twelve months. Over $100 million of that total is expected to mature in the second quarter 2024. Deploying those funds into loans or even additional overnight funds will be accretive to our interest income. Our liquidity, high level of capital, and excellent asset quality put us in a good position to seize loan growth opportunities in our markets.”