CORRECTED - CORRECTED-UPDATE 1-Macatawa Q3 profit beats analysts' estimate
(Corrects paragraph 5 to clarify net interest income fell $1 million, not $1)
* Q3 EPS $0.11 vs estimate $0.07
* Loan-loss provision falls to $2.4 mln from $3.6 mln (Recasts, adds details) Oct 20 (Reuters) - Macatawa Bank Corp (MCBC.O) posted third-quarter profit that beat analysts' estimates, helped by a fall in provision for bad loans.
The community bank earned $1.9 million, or 11 cents a share, for the quarter, compared with $2.5 million, or 14 cents a share, a year earlier.
Analysts expected a profit of 7 cents a share, excluding special items, according to Reuters Estimates.
Provision for loan losses fell to $2.4 million from $3.6 million.
Net interest income decreased $1 million to $14.8 million and net interest margin fell to 2.98 percent from 3.20 percent for the prior-year quarter.
Non-performing loans increased $7.6 million to $86.4 million sequentially.
The company expects the recent 50 basis point reduction in the prime rate to hurt near-term results, but said corresponding declines in cost of funds should offset this decline over time.
On Sept. 29, Macatawa Bank 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.
Shares of the Holland, Michigan-based company closed at $5.73 Monday on the Nasdaq. (Reporting by Amiteshwar Singh in Bangalore; Editing by Amitha Rajan)
