The new location on Riley Street, just east of U.S. 31 in Holland Township, will give Macatawa Bank seven locations in the core Holland-Zeeland area. The new north side location’s opening will complete the five-year-old bank’s branch strategy for the market at a time when a half-dozen new offices are planned in Kent County within two years.
“That will pretty much do it in this market and then we’ll concentrate on Grand Rapids,” Macatawa Bank Chairman and CEO Ben Smith said.
“We’ll pretty much have ringed the Holland area and we’re situated right where we want to be here,” Smith said.
Any future branch activity locally will consist of upgrading or replacing the existing downtown Holland office, he said.
Elsewhere, the Holland-based Macatawa Bank, a year after acquiring the former Grand Bank in downtown Grand Rapids, plans to open three branches this year in Kent County, where it presently has four locations. The bank will target the opening of another three Kent County locations during 2004, Smith said.
Macatawa Bank, which opened its first office in downtown Zeeland in late 1997, has 17 bank branches in southern Ottawa County, northwestern Allegan County and Kent County.
The nearing of the end of developing the Holland-Zeeland area branch network, and stepping up efforts in Kent County, comes as Macatawa Bank’s financial performance breaks records.
The first quarter saw Macatawa Bank post record earnings and strong gains in assets, deposits and loans. The corporation of late has also seen its share price trade at an all-time high and last month issued a 5 percent stock dividend to shareholders.
“Everything seemed to go very well,” Smith said of the bank’s first quarter performance.
Despite the sluggish economy and low interest rates that are pressuring margins, Macatawa Bank reported record first quarter earnings of $2.8 million, or 35 cents per share, up 86 percent from the $1.5 million, or 28 cents per share, during the same period a year earlier.
The quarter saw Macatawa Bank’s assets increase 2.8 percent, from $1.17 billion as of Dec. 31 to $1.2 billion on March 31, and loans grow 5.6 percent, from $961 million to $1.01 billion.
Deposits rose 4.8 percent during the quarter, from $920.8 million to $965.5 million.
Macatawa Bank could have grown at an even faster rate if the economic conditions were better, Smith said.
During the second quarter, Macatawa Bank plans to intensify efforts on trust and brokerage services. The corporation will create a separate trust and brokerage company by the end of the quarter in order to “foster continued service and product improvements to better meet the needs of our customers, and should allow us to respond more readily to opportunities these businesses will provide for us in the upcoming years.”
1Q 2003: $2.8 million, 35 cents EPS
1Q 2002: $1.5 million, 28 cents EPS
1Q 2003: $1.20 billion
4Q 2002: $1.17 billion
1Q 2003: $1.01 billion
4Q 2002: $961 million
1Q 2003: $965.5 million
4Q 2002: $920.8 million