HOLLAND — Macatawa Bank Corp. recorded lower fourth quarter earnings that partly resulted from reduced fee income as fewer federal Paycheck Protection Program loans were forgiven.
The Holland-based Macatawa Bank (Nasdaq: MCBC) reported $6.2 million in net income for the final quarter of 2021, or 18 cents per diluted share. That compares to $8.9 million in net income, or 26 cents per diluted share, in the fourth quarter of 2020.
Macatawa during the quarter received forgiveness payments from the U.S. Small Business Administration for 245 loans with balances totaling $36.7 million. The bank in the prior third quarter of 2021 received forgiveness disbursements on 909 loans for $92.4 million.
Net interest income for the fourth quarter included $1.2 million in amortized fees from forgiven PPP loans, which compares to $2.8 million in the prior third quarter and $3.2 million in the fourth quarter of 2020.
For the full year, Macatawa Bank had $29 million in net income, or 85 cents per diluted share, versus $30.1 million, or 88 cents per diluted share, in 2020.
“Despite a challenging environment, we produced strong earnings for the fourth quarter of 2021 and for the year. Our asset quality is strong and as we have managed our balance sheet to be asset-sensitive, we are very well-positioned to benefit from the rising interest rate environment that we expect in 2022,” President and CEO Ron Haan said in an earnings release this week. “We look forward to building on our fourth quarter momentum and seizing more opportunities to strategically deploy the excess funds our customers have entrusted us with.”
Macatawa Bank has 26 offices in Ottawa, Kent and Allegan counties with $2.92 billion in total assets at the end of 2021.