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Macatawa Bank

Nasdaq:MCBC
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCBC
Nasdaq
$340M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Macatawa Bank Corporation operates as the bank holding company for Macatawa Bank that provides commercial and consumer banking and trust services. The last earnings update was 86 days ago. More info.


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MCBC Share Price and Events
7 Day Returns
-0.9%
NasdaqGS:MCBC
-1.1%
US Banks
-1.2%
US Market
1 Year Returns
-20.4%
NasdaqGS:MCBC
-6.5%
US Banks
3.4%
US Market
MCBC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Macatawa Bank (MCBC) -0.9% -1.7% -4.7% -20.4% 33.1% 109.2%
US Banks -1.1% 2.8% -0.5% -6.5% 45.1% 45.5%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • MCBC underperformed the Banks industry which returned -6.5% over the past year.
  • MCBC underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
MCBC
Industry
5yr Volatility vs Market

Value

 Is Macatawa Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Macatawa Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Macatawa Bank.

NasdaqGS:MCBC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $6.53 * 10.2%
$0.66
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $6.53
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MCBC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.596 (1 + (1- 21%) (30.11%))
0.824
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.824 * 5.96%)
7.64%

Discounted Cash Flow Calculation for NasdaqGS:MCBC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Macatawa Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:MCBC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.2% – 7.64%) * $6.53)
$0.16
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.16 / (7.64% - 2.73%)
$3.35
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $6.53 + $3.35
$9.88
NasdaqGS:MCBC Discount to Share Price
Calculation Result
Value per share (USD) From above. $9.88
Current discount Discount to share price of $9.98
= -1 x ($9.98 - $9.88) / $9.88
-1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Macatawa Bank is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Macatawa Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Macatawa Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MCBC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.83
NasdaqGS:MCBC Share Price ** NasdaqGS (2019-07-19) in USD $9.98
United States of America Banks Industry PE Ratio Median Figure of 594 Publicly-Listed Banks Companies 12.73x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Macatawa Bank.

NasdaqGS:MCBC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MCBC Share Price ÷ EPS (both in USD)

= 9.98 ÷ 0.83

12.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Macatawa Bank is good value based on earnings compared to the US Banks industry average.
  • Macatawa Bank is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Macatawa Bank's expected growth come at a high price?
Raw Data
NasdaqGS:MCBC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
4.8%per year
United States of America Banks Industry PEG Ratio Median Figure of 270 Publicly-Listed Banks Companies 1.19x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:MCBC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.01x ÷ 4.8%

2.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Macatawa Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Macatawa Bank's assets?
Raw Data
NasdaqGS:MCBC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.82
NasdaqGS:MCBC Share Price * NasdaqGS (2019-07-19) in USD $9.98
United States of America Banks Industry PB Ratio Median Figure of 594 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGS:MCBC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MCBC Share Price ÷ Book Value per Share (both in USD)

= 9.98 ÷ 5.82

1.72x

* Primary Listing of Macatawa Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Macatawa Bank is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Macatawa Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Macatawa Bank has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Macatawa Bank expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Macatawa Bank expected to grow at an attractive rate?
  • Macatawa Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Macatawa Bank's earnings growth is positive but not above the United States of America market average.
  • Macatawa Bank's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MCBC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MCBC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 4.8%
NasdaqGS:MCBC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.6%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 1.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MCBC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MCBC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 87 31 2
2019-12-31 83 30 2
NasdaqGS:MCBC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 79 31 28
2018-12-31 77 30 26
2018-09-30 75 26 22
2018-06-30 74 26 20
2018-03-31 72 25 18
2017-12-31 71 23 16
2017-09-30 70 22 18
2017-06-30 70 17 18
2017-03-31 69 17 17
2016-12-31 68 17 16
2016-09-30 68 20 15
2016-06-30 67 22 14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Macatawa Bank's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Macatawa Bank's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MCBC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Macatawa Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MCBC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.88 0.94 0.82 3.00
2019-12-31 0.85 0.89 0.83 3.00
NasdaqGS:MCBC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.83
2018-12-31 0.78
2018-09-30 0.63
2018-06-30 0.58
2018-03-31 0.52
2017-12-31 0.48
2017-09-30 0.54
2017-06-30 0.53
2017-03-31 0.50
2016-12-31 0.47
2016-09-30 0.45
2016-06-30 0.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Macatawa Bank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Macatawa Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Macatawa Bank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Macatawa Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Macatawa Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Macatawa Bank has delivered over 20% year on year earnings growth in the past 5 years.
  • Macatawa Bank's 1-year earnings growth exceeds its 5-year average (60.7% vs 36.7%)
  • Macatawa Bank's earnings growth has exceeded the US Banks industry average in the past year (60.7% vs 38.2%).
Earnings and Revenue History
Macatawa Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Macatawa Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MCBC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 78.86 28.27 37.11
2018-12-31 76.68 26.38 36.94
2018-09-30 75.42 21.53 37.02
2018-06-30 73.55 19.55 36.80
2018-03-31 71.81 17.59 36.48
2017-12-31 70.71 16.29 36.17
2017-09-30 70.18 18.21 36.31
2017-06-30 69.62 17.93 36.32
2017-03-31 68.54 16.92 36.33
2016-12-31 67.67 15.95 36.56
2016-09-30 67.99 15.38 36.02
2016-06-30 66.62 13.98 36.06
2016-03-31 65.87 13.45 35.96
2015-12-31 65.37 12.79 35.89
2015-09-30 63.05 11.57 35.89
2015-06-30 62.55 11.14 35.44
2015-03-31 61.92 10.67 34.81
2014-12-31 60.96 10.47 34.49
2014-09-30 60.79 -7.19 33.98
2014-06-30 61.01 -7.71 33.94
2014-03-31 61.46 -7.86 34.12
2013-12-31 61.67 -8.03 33.97
2013-09-30 61.73 28.55 33.87
2013-06-30 65.40 32.90 33.32
2013-03-31 66.79 33.48 33.10
2012-12-31 70.19 35.49 33.87
2012-09-30 70.00 15.34 32.72

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Macatawa Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Macatawa Bank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Macatawa Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Macatawa Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Macatawa Bank has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Macatawa Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Macatawa Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Macatawa Bank Company Filings, last reported 3 months ago.

NasdaqGS:MCBC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 197.97 102.29 145.04
2018-12-31 190.85 101.94 164.98
2018-09-30 183.98 111.64 183.58
2018-06-30 179.71 107.31 144.93
2018-03-31 175.38 121.97 130.91
2017-12-31 172.99 133.55 155.56
2017-09-30 173.46 113.71 160.24
2017-06-30 170.18 124.42 145.66
2017-03-31 166.15 144.41 114.13
2016-12-31 162.24 125.91 84.70
2016-09-30 162.25 126.61 58.95
2016-06-30 158.46 147.48 126.33
2016-03-31 155.24 137.28 95.80
2015-12-31 151.98 138.20 197.09
2015-09-30 149.73 138.00 144.35
2015-06-30 146.84 138.26 161.76
2015-03-31 145.58 138.30 154.30
2014-12-31 142.52 129.49 144.58
2014-09-30 140.47 129.43 119.63
2014-06-30 138.09 130.18 150.63
2014-03-31 135.19 130.14 159.92
2013-12-31 132.52 131.32 177.57
2013-09-30 135.51 131.23 238.86
2013-06-30 133.25 133.55 182.45
2013-03-31 132.91 133.55 174.33
2012-12-31 130.51 134.71 221.82
2012-09-30 109.43 134.71 234.25
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Macatawa Bank has an acceptable proportion of non-loan assets held.
  • Macatawa Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Macatawa Bank are broadly funded by customer deposits.
  • Macatawa Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Macatawa Bank has a sufficient allowance for bad loans.
  • Macatawa Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Macatawa Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Macatawa Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Macatawa Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.81%
Current annual income from Macatawa Bank dividends. Estimated to be 3.21% next year.
If you bought $2,000 of Macatawa Bank shares you are expected to receive $56 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Macatawa Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Macatawa Bank's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MCBC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 479 Stocks 3.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MCBC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.35 2.00
2019-12-31 0.30 2.00
NasdaqGS:MCBC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-29 0.280 2.724
2019-01-28 0.280 2.706
2018-10-29 0.280 2.815
2018-07-30 0.240 2.021
2018-04-30 0.240 2.008
2018-01-29 0.240 2.326
2017-10-30 0.200 1.997
2017-07-31 0.200 2.036
2017-05-01 0.160 1.694
2017-01-30 0.160 1.611
2016-10-31 0.120 1.253
2016-08-01 0.120 1.518
2016-05-02 0.120 1.676
2016-02-01 0.120 1.914
2015-10-26 0.120 2.094
2015-07-27 0.120 2.305
2015-04-27 0.120 2.276
2015-02-02 0.080 1.498
2014-10-27 0.080 1.519
2014-07-28 0.080 1.610
2014-04-28 0.080 1.594
2014-02-24 0.080 1.559
2010-04-29 0.000 0.000
2010-03-30 0.000 0.000
2010-01-28 0.000 0.000
2009-10-30 0.000 0.000
2009-08-10 0.000 0.000
2009-07-20 0.000 0.000
2009-05-08 0.000 0.000
2009-04-20 0.000 0.000
2009-03-11 0.000 0.000
2009-01-26 0.000 0.000
2008-11-10 0.000 0.000
2008-10-20 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Macatawa Bank has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Macatawa Bank only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Macatawa Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Macatawa Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Macatawa Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Macatawa Bank has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Macatawa Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ron Haan
COMPENSATION $556,854
AGE 65
TENURE AS CEO 10.4 years
CEO Bio

Mr. Ronald L. Haan also known as Ron, has been the Chief Executive Officer and President of Macatawa Bank Corp. since August 2009. Mr. Haan has been the President and Chief Executive Officer of Macatawa Bank, a subsidiary of Macatawa Bank Corp. since August 2009. He has been in banking since 1975 working in various capacities. Mr. Haan served as Secretary and Treasurer of Macatawa Bank Corp. since February 2009. He served as an Interim Chief Executive Officer of Macatawa Bank Corp. since August 12, 2009. Mr. Haan served as Interim Chairman, President and Chief Executive Officer of Macatawa Bank, a subsidiary of Macatawa Bank Corp. since August 12, 2009. He served as Executive Vice President of Macatawa Bank from September 1, 2005 to August 12, 2009. He served as Executive Vice President of Macatawa Bank Corp., until August 12, 2009. He served as Co-Chief Executive of Macatawa Bank Corp. since February 09, 2009. He served as the President, Chief Operating Officer and Secretary of AmeriBank Federal Savings Bank and Ottawa Financial Corp. since January 1, 1989. He served as the President of O.S. Services Inc. He served as an Assistant Secretary of AmeriBank and Senior Vice President and Assistant Secretary of Ottawa Financial Corp. Prior to joining Ottawa Financial Corporation in February 1996, he served as an Executive Vice President of AmeriBank Federal Savings Bank since 1989 and its Chief Financial Officer since February 1990. Since December 1990, he served as the Chief Administrative Officer of AmeriBank Federal Savings Bank. He was employed by MetroBanc Federal Savings Bank of Grand Rapids, Michigan, from 1978 to 1987 as Vice President and from 1987 to 1989 at Comerica Bank, Grand Rapids, Michigan, as Vice President and Regional Manager. Mr. Haan has over 30 years of banking experience with extensive operational and management expertise. Most of his experience has been in locally-owned and managed institutions in West Michigan leading up to serving as President of AmeriBank until it was acquired by Fifth Third Bank in December, 2000. Prior to September 2005, he served as an Executive Vice President of Fifth Third Bank. He served as the Chairman of the Board of AmeriPlan Financial Services Inc. and Macatawa Bank. He has been a Director of Macatawa Bank Corp., since February 09, 2009. He has been a Director of Macatawa Bank since 2009. He served as a Director of Ottawa Financial Corporation since 1996 and its subsidiary Ameribank since December 1990. In addition to banking experience, he has also served in his community by serving as a director of Pine Rest Christian Mental Health, the Barnabas Foundation, Grand Rapids Christian School Association and CRC Loan Fund, Inc. He received his BA in business administration from Calvin College.

CEO Compensation
  • Ron's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ron's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Macatawa Bank management team in years:

10.4
Average Tenure
53
Average Age
  • The average tenure for the Macatawa Bank management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ron Haan

TITLE
President
COMPENSATION
$557K
AGE
65
TENURE
10.4 yrs

Jon Swets

TITLE
Senior VP
COMPENSATION
$306K
AGE
54
TENURE
17 yrs

Craig Hankinson

TITLE
Chief Operating Officer
COMPENSATION
$368K
AGE
51
TENURE
2.4 yrs

Jill Walcott

TITLE
Senior VP & Chief Retail Banking Officer
COMPENSATION
$276K
AGE
52
TENURE
17.5 yrs

Michael Shollack

TITLE
Senior VP & Chief Technology Officer

Jodi Sevigny

TITLE
Senior VP & Chief Marketing Officer

Sandra Holzgen

TITLE
Senior VP & Chief Human Resources Officer
TENURE
1.9 yrs

Lynda Logan

TITLE
Senior VP & Chief Risk Officer

Jason Birchmeier

TITLE
VP & Chief Credit Officer

Timothy Doyle

TITLE
Senior VP & Chief Commercial Banking Officer
Board of Directors Tenure

Average tenure and age of the Macatawa Bank board of directors in years:

8.8
Average Tenure
65
Average Age
  • The tenure for the Macatawa Bank board of directors is about average.
Board of Directors

Rich Postma

TITLE
Chairman of the Board
AGE
68
TENURE
9.8 yrs

Ron Haan

TITLE
President
COMPENSATION
$557K
AGE
65

Tom Rosenbach

TITLE
Independent Director
COMPENSATION
$46K
AGE
63
TENURE
8.8 yrs

Doug Padnos

TITLE
Independent Director
COMPENSATION
$44K
AGE
65
TENURE
9.9 yrs

Birgit Klohs

TITLE
Independent Director
COMPENSATION
$40K
AGE
67
TENURE
8.8 yrs

Chuck Geenen

TITLE
Director
COMPENSATION
$43K
AGE
60
TENURE
8.8 yrs

Bob Herr

TITLE
Independent Director
COMPENSATION
$47K
AGE
73
TENURE
8.8 yrs

Michael Le Roy

TITLE
Independent Director
COMPENSATION
$41K
AGE
51
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • Macatawa Bank individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. May 19 Sell Charles Geenen Individual 09. May 19 09. May 19 -1,900 $10.78 $-20,466
06. May 19 Sell Jill Walcott Individual 03. May 19 03. May 19 -15,000 $10.37 $-155,000
03. May 19 Buy Timothy Doyle Individual 01. May 19 03. May 19 500 $10.27 $5,128
03. May 19 Sell Jill Walcott Individual 01. May 19 02. May 19 -5,656 $10.28 $-58,115
12. Feb 19 Sell Jill Walcott Individual 11. Feb 19 12. Feb 19 -2,818 $10.12 $-28,427
08. Feb 19 Buy Robert Herr Individual 08. Feb 19 08. Feb 19 150 $10.12 $1,517
07. Feb 19 Sell Jill Walcott Individual 05. Feb 19 05. Feb 19 -1,100 $10.21 $-11,231
X
Management checks
We assess Macatawa Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Macatawa Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's What Macatawa Bank Corporation's (NASDAQ:MCBC) P/E Ratio Is Telling Us

We'll look at Macatawa Bank Corporation's (NASDAQ:MCBC) P/E ratio and reflect on what it tells us about the company's share price. … View our latest analysis for Macatawa Bank How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Macatawa Bank: P/E of 12.28 = $10.2 ÷ $0.83 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Could The Macatawa Bank Corporation (NASDAQ:MCBC) Ownership Structure Tell Us Something Useful?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of US$347m, Macatawa Bank is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Macatawa Bank NasdaqGS:MCBC Ownership Summary, June 24th 2019 What Does The Institutional Ownership Tell Us About Macatawa Bank? … Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Simply Wall St -

Does Macatawa Bank Corporation's (NASDAQ:MCBC) CEO Pay Reflect Performance?

According to our data, Macatawa Bank Corporation has a market capitalization of US$347m, and pays its CEO total annual compensation worth US$557k. … A first glance this seems like a real positive for shareholders, since Ron Haan is paid less than the average total compensation paid by similar sized companies. … It looks like Macatawa Bank Corporation pays its CEO less than similar sized companies.

Simply Wall St -

Shareholders Are Thrilled That The Macatawa Bank (NASDAQ:MCBC) Share Price Increased 107%

For example, the Macatawa Bank Corporation (NASDAQ:MCBC) share price has soared 107% in the last half decade. … During the five years of share price growth, Macatawa Bank moved from a loss to profitability. … We can see that the Macatawa Bank share price is up 46% in the last three years.

Simply Wall St -

Only 4 Days Left Before Macatawa Bank Corporation (NASDAQ:MCBC) Will Be Trading Ex-Dividend

To qualify for the dividend check of US$0.07 per share, investors must have owned the shares prior to 13 May 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Has it paid dividend every year without dramatically reducing payout in the past?

Simply Wall St -

Does Macatawa Bank Corporation (NASDAQ:MCBC) Have A Place In Your Dividend Portfolio?

Today we'll take a closer look at Macatawa Bank Corporation (NASDAQ:MCBC) from a dividend investor's perspective. … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … With a 2.6% yield and a five-year payment history, investors probably think Macatawa Bank looks like a reliable dividend stock.

Simply Wall St -

Should We Worry About Macatawa Bank Corporation's (NASDAQ:MCBC) P/E Ratio?

We'll show how you can use Macatawa Bank Corporation's (NASDAQ:MCBC) P/E ratio to inform your assessment of the investment opportunity. … Macatawa Bank has a P/E ratio of 13.06, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Do Insiders Own Shares In Macatawa Bank Corporation (NASDAQ:MCBC)?

Macatawa Bank is not a large company by global standards. … Our analysis of the ownership of the company, below, shows that. … See our latest analysis for Macatawa Bank

Simply Wall St -

How Should Investors React To Macatawa Bank Corporation's (NASDAQ:MCBC) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Ron Haan's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Macatawa Bank Corporation has a market cap of US$366m, and is paying total annual CEO compensation of US$523k.

Simply Wall St -

Is Macatawa Bank Corporation (NASDAQ:MCBC) Over-Exposed To Risk?

As a small-cap bank with a market capitalisation of US$345m, Macatawa Bank Corporation’s (NASDAQ:MCBC) profit and value are directly affected by economic growth. … Since the level of risky assets held by the bank impacts the attractiveness of it as an investment, I will take you through three metrics that are insightful proxies for risk. … Check out our latest analysis for Macatawa Bank

Simply Wall St -

Company Info

Description

Macatawa Bank Corporation operates as the bank holding company for Macatawa Bank that provides commercial and consumer banking and trust services. The company accepts various deposits, such as checking accounts, savings accounts, time deposits, regular and money market savings accounts, certificates of deposit, and demand deposits. Its loan products include commercial and industrial loans comprising loans to finance operations and equipment; commercial real estate loans, which consist of construction and development, and multi-family and other non-residential real estate loans; retail loans, such as residential mortgage loans; and consumer loans, including automobile loans, home equity lines of credit and installment loans, home improvement loans, deposit account loans, and other loans for household and personal purposes. The company also offers ATM and debit card processing, cash management, and trust and brokerage services. It serves individuals, businesses, associations, churches, nonprofit organizations, financial institutions, and government authorities through 26 branch offices, as well as a lending and operation service facility in Kent County, Ottawa County, and northern Allegan County, Michigan. Macatawa Bank Corporation was founded in 1997 and is headquartered in Holland, Michigan.

Details
Name: Macatawa Bank Corporation
MCBC
Exchange: NasdaqGS
Founded: 1997
$339,756,096
34,043,697
Website: http://www.macatawabank.com
Address: Macatawa Bank Corporation
10753 Macatawa Drive,
Holland,
Michigan, 49424,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MCBC Common Stock Nasdaq Global Select US USD 02. Apr 1998
Number of employees
Current staff
Staff numbers
332
Macatawa Bank employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 23:43
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/07
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.