Macatawa Bank has posted a net loss of $4.14m, or $0.30 per diluted share, for the first quarter ended march 31, 2009, compared to a net income of $2.44m, or $0.14 per diluted share, for the first quarter of 2008.
Net interest income for the first quarter of 2009 totaled $12.8m, a decrease of $1.9m compared to the first quarter of 2008.
Average earning assets declined by $11.4m from the first quarter of 2008 to the first quarter of 2009. The net interest margin was 2.66% for the first quarter of 2009, down 33 basis points from 2.99% for the first quarter of 2008.
Ron Haan, co-CEO of Macatawa Bank, said: We continue to respond appropriately by increasing reserves to offset continuing signs of weakness in our real estate portfolios. We believe this approach is prudent and will allow us to maximise opportunities when our local economy recovers.
The Michigan economy remains in transition. While we continue to see signs of gradual improvement, there are still significant inventories of unsold homes and lots in the market and it will take time for these inventories to be absorbed. The depth of this economic downturn has clearly been longer than normal.
