UPDATE 1-Macatawa restates Q2 net income to a loss on charges

(Recasts; adds details, share movement) Sept 29 (Reuters) - Macatawa Bank Corp (MCBC.O) restated its reported second-quarter earnings to a loss as it recorded more loan loss provisions and losses on foreclosed properties, and said it plans to temporarily suspend dividend, sending its shares down as much as 12 percent.

The Holland, Michigan-based community bank said it will record a charge of $15 million in loan loss provisions and $878,000 in losses on foreclosed properties for the latest-reported second quarter.

The additional provisions and losses will lower second-quarter earnings by $10.3 million, to a net loss of $8.1 million from a net income of $2.2 million, the company said.

The company plans to temporarily suspend its dividend and to realize about $9 million in savings in the first year.

Macatawa Bank also said it would raise capital which is expected to conclude during the fourth quarter.

The company said its credit exposure was primarily in residential development loans and that it does not have any exposure to subprime mortgage loans, or to Fannie Mae and Freddie Mac equity securities or mortgage-backed securities.

Shares of the company were trading down 64 cents at $8.49 in Monday morning on Nasdaq. They touched a low of $8.01 earlier in the session. (Reporting by Supantha Mukherjee in Bangalore; Editing by Amitha Rajan)