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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2005

OR

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number: 000-25927

MACATAWA BANK CORPORATION
(Exact name of issuer as specified in its charter)

Michigan
(State of other jurisdiction of
incorporation or organization) 		38-3391345
(I.R.S. Employer
Identification No.)

10753 Macatawa Drive, Holland, Michigan 49424
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (616) 820-1444

_________________

Indicate by check whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes __x__ No _____

Indicate by check whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes __x__ No_____

The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 8,863,079 shares of the Company’s Common Stock (no par value) were outstanding as of May 5, 2005.

INDEX

Page
Number
Part I Financial Information:  
 
                  Item 1 
                  Consolidated Financial Statements  3  
                  Notes to Consolidated Financial Statements  8  
 
                  Item 2 
                  Management's Discussion and Analysis of 
                  Financial Condition and Results of Operations  17  
 
                  Item 3 
                  Quantitative and Qualitative Disclosures 
                  About Market Risk  24  
 
                  Item 4 
                  Controls and Procedures  25  
 
Part II Other Information: 
 
                  Item 1 
                  Legal Proceedings  25  
 
                  Item 2 
                  Changes in Securities and Use of Proceeds  27  
 
                  Item 3 
                  Defaults Upon Senior Securities  27  
 
                  Item 4 
                  Submission of Matters to a Vote of Security Holders  27  
 
                  Item 5 
                  Other Information  27  
 
                  Item 6 
                  Exhibits  27  
 
Signatures  28  

2

Part I Financial Information
Item 1.

MACATAWA BANK CORPORATION
CONSOLIDATED BALANCE SHEETS
As of March 31, 2005 (unaudited) and December 31, 2004

(dollars in thousands except share data) March 31,
2005		 December 31,
2004
ASSETS      
   Cash and due from banks  $      34,303   $      31,711  
 
   Securities available for sale  153,986   137,249  
   Securities held to maturity  2,550   2,552  
   Federal Home Loan Bank stock  12,359   12,239  
   Loans held for sale  3,158   3,150  
   Total loans  1,425,781   1,396,387  
   Allowance for loan losses  (19,534 ) (19,251 )
   1,406,247   1,377,136  
   Premises and equipment - net  45,897   45,784  
   Accrued interest receivable  7,282   6,395  
   Goodwill  23,915   23,915  
   Acquisition intangibles  2,239   2,347  
   Bank-owned life insurance  20,320   20,157  
   Other assets  9,213   9,971  
      Total assets  $ 1,721,469   $ 1,672,606  
LIABILITIES AND SHAREHOLDERS' EQUITY 
  Deposits 
      Noninterest-bearing  $    134,663   $    149,104  
      Interest-bearing  1,227,169   1,202,412  
         Total  1,361,832   1,351,516  
 
  Federal funds purchased  14,789   22,131  
  Federal Home Loan Bank advances  167,563   123,985  
  Long-term debt  41,238   41,238  
  Accrued expenses and other liabilities  5,879   4,662  
          Total liabilities  1,591,301   1,543,532  
   Shareholders' equity 
     Preferred stock, no par value, 500,000 shares authorized; 
         no shares issued and outstanding 
     Common stock, no par value, 20,000,000 shares authorized; 
         8,855,633 shares and 8,823,902 issued and outstanding as of 
         March 31, 2005 and December 31, 2004, respectively  124,843   124,389  
     Retained earnings  7,485   4,277  
     Accumulated other comprehensive income (loss)  (2,160 ) 408  
        Total shareholders' equity  130,168   129,074  
   Total liabilities and shareholders' equity  $ 1,721,469   $ 1,672,606  

        See accompanying notes to consolidated financial statements

3

MACATAWA BANK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Three Month Periods Ended March 31, 2005 and 2004
(unaudited)

(dollars in thousands) Three Months
Ended
March 31, 2005 		Three Months
Ended
March 31, 2004
Interest income        
   Loans, including fees  $21,559   $15,994  
   Securities  1,501   1,194  
   FHLB Stock  129   111  
   Other  9   6  
      Total interest income  23,198   17,305  
Interest expense 
   Deposits  6,325   4,404  
   Other  2,029   1,509  
      Total interest expense  8,354   5,913  
Net interest income  14,844   11,392  
Provision for loan losses  900   1,225  
Net interest income after 
  provision for loan losses  13,944   10,167  
Noninterest income 
   Service charges and fees  724   651  
   Gain on sales of loans  559   529  
   Trust fees  715   738  
   Other  675   380  
      Total noninterest income  2,673   2,298  
Noninterest expense 
   Salaries and benefits  5,405   4,487  
   Occupancy of premises  842   699  
   Furniture and equipment  703   677  
   Legal and professional fees  187   52  
   Marketing and promotion  391   286  
   Supplies  135   143  
   Data processing fees  385   251  
   Other  1,914   1,662  
      Total noninterest expenses  9,962   8,257  
Income before income tax expense  6,655   4,208  
Income tax expense  2,120   1,342  
Net income  $  4,535   $  2,866  
Basic earnings per share  $.45 $.28  
Diluted earnings per share  .44 .28
Cash dividends per share  .13 .10

        See accompanying notes to consolidated financial statements

4

MACATAWA BANK CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Three Month Periods Ended March 31, 2005 and 2004
(unaudited)

(dollars in thousands) Common
Stock		 Retained
Earnings		 Accumulated
Other
Comprehensive
Income		 Total
Shareholders
Equity
 
Balance, January 1, 2004   $ 114,568   $ 5,300   $ 2,032   $ 121,900  
Net income for three months ended March 31, 2004      2,866       2,866  
Other comprehensive income (loss), net of tax: 
   Net change in unrealized gain (loss) on securities          478   478  
   Net change in unrealized gain (loss) on derivative 
     instruments          534   534  
     Comprehensive income            3,878
Issued 14,647 shares for stock option exercises  121           121  
Cash dividends at $.10 per share    (1,036 )   (1,036 )
Balance, March 31, 2004  $ 114,689   $ 7,130   $ 3,044   $ 124,863  
Balance, January 1, 2005  $ 124,389   $ 4,277   $ 408   $ 129,074  
 
Net income for three months ended March 31, 2005      4,535       4,535  
 
Other comprehensive income (loss), net of tax: 
   Net change in unrealized gain (loss) on securities          (1,491 ) (1,491 )
   Net change in unrealized gain (loss) on derivative 
     instruments          (1,077 ) (1,077 )
        Comprehensive income              1,967  
Issued 31,731shares for stock option exercises (net of 
     990 shares exchanged and including $41 of tax  454           454  
     benefit) 
Cash dividends at $.13 per share      (1,327 )     (1,327 )
Balance, March 31, 2005  $ 124,843   $ 7,485   $(2,160 ) $ 130,168  

        See accompanying notes to consolidated financial statements

5

MACATAWA BANK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Month Periods Ended March 31, 2005 and 2004
(unaudited)

(dollars in thousands) Three Months
Ended
March 31, 2005 		Three Months
Ended
March 31, 2004
Cash flows from operating activities      
   Net income  $     4,535   $   2,866  
   Adjustments to reconcile net income to net 
      cash from operating activities: 
         Depreciation and amortization  808   763  
         Provision for loan losses  900   1,225  
         Origination of loans for sale  (32,128 ) (35,362 )
         Proceeds from sales of loans originated for sale  32,615   35,580  
         Gain on sales of loans  (559 ) (529 )
   Net change in: 
          Accrued interest receivable and other assets  (706 ) (2,397 )
          Bank-owned life insurance  (163 ) ---  
          Accrued expenses and other liabilities  2,640   4,126  
               Net cash from operating activities  7,942   6,272  
 
Cash flows from investing activities 
   Loan originations and payments, net  (31,147 ) (67,496 )
   Purchases of securities available for sale  (26,060 ) (22,466 )
   Maturities and calls of securities available for sale  6,989   9,500  
   Principal paydowns on securities  17   173  
   Additions to premises and equipment  (787 ) (1,807 )
        Net cash used in investing activities  (50,988 ) (82,096 )
 
Cash flows from financing activities 
   Net increase (decrease) in deposits  10,316   (123 )
   Net increase (decrease) in short term borrowings  (7,342 ) 26,083  
   Proceeds from Federal Home Loan Bank advances  140,000   25,000  
   Repayments of Federal Home Loan Bank advances  (96,422 ) (24,860 )
   Proceeds from long-term debt and other borrowings  ---   21,583  
   Cash dividends paid  (1,327 ) (1,036 )
   Proceeds from exercises of stock options  413   121  
        Net cash from financing activities  45,638   46,768  
Net change in cash and cash equivalents  2,592   (29,056 )
Cash and cash equivalents at beginning of period  31,711   60,047  
Cash and cash equivalents at end of period  $   34,303   $ 30,991  

        See accompanying notes to consolidated financial statements

6

MACATAWA BANK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
Three Month Periods Ended March 31, 2005 and 2004
(unaudited)

(dollars in thousands) Three Months
Ended
March 31, 2005 		Three Months
Ended
March 31, 2004
 
Supplemental cash flow information      
         Interest paid  $8,021   $6,140  
         Income taxes paid  ---   ---  
 
Supplemental noncash disclosures: 
         Transfers from loans to other real estate  1,200   ---  

        See accompanying notes to consolidated financial statements

7

MACATAWA BANK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Macatawa Bank, and its wholly-owned subsidiary, Macatawa Bank Mortgage Company; and Macatawa Investment Services, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company also owns all of the common stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company per FASB Interpretation No. 46.

Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month periods ended March 31, 2005, are not necessarily indicative of the results that may be expected for the year ending December 31, 2005. For further information, refer to the consolidated financial statements and footnotes thereto included in Macatawa Bank Corporation’s (the “Company”) 2004 Annual Report containing financial statements for the year ended December 31, 2004.

All per share amounts and average shares outstanding have been adjusted for all periods presented to reflect the 15% stock dividend to be distributed on May 27, 2005, and the 5% stock dividend distributed on May 28, 2004.

Stock Compensation: Employee compensation expense under stock option plans is reported using the intrinsic value method. No compensation cost related to stock options was recognized during the three month periods ended March 31, 2005 and 2004, as all options granted had an exercise price equal to or greater than the market price of the underlying common stock at date of grant. Had compensation cost for stock options been measured using the fair value method, net income and basic and diluted earnings per share would have been the pro forma amounts indicated below (dollars in thousands). The pro forma effect may increase in the future if more options are granted.

(dollars in thousands) Three Months
Ended
March 31, 2005 		Three Months
Ended
March 31, 2004
Net income as reported   $      4,535   $      2,866  
Stock-based compensation cost, net of tax  (59 ) (70 )
  Pro forma net income  4,476   2,796  
 
Basic earnings per share as reported  .45 .33
Pro forma basic earnings per share  .44 .32
 
Diluted earnings per share as reported  .44 .32
Pro forma diluted earnings per share  .43 .31

8

MACATAWA BANK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recently-Issued Standards Not Yet Adopted:

FAS 123, Revised, requires all public companies to record compensation cost for stock options provided to employees in return for employee service. The cost is measured at the fair value of the options when granted, and this cost is expensed over the employee service period, which is normally the vesting period of the options. As amended, this will apply to awards granted or modified beginning with the first quarter of 2006. Compensation cost will also be recorded for prior option grants that vest after the date of adoption. The effect on results of operations will depend on the level of future option grants and the calculation of the fair value of the options granted at such future date, as well as the vesting periods provided, and so cannot currently be predicted. Existing options that will vest after the adoption date are not expected to result in significant additional compensation expense. There will be no significant effect on financial position as total equity will not change.

NOTE 2 — SECURITIES

The amortized cost and fair values of securities at year-end were as follows (dollars in thousands):

Amortized
Cost 		Gross
Unrealized
Gains 		Gross
Unrealized
Losses 		Fair
Values
March 31, 2005          
Available for Sale: 
     U.S. Treasury and federal 
       agency securities  $110,427   $    202   $  (2,048 ) $108,581  
     State and municipal bonds  45,149   642   (386 ) 45,405  
   $155,576   $    844   $  (2,434 ) $153,986  
Held to Maturity: 
     State and municipal bonds  $    2,550   $      89   $    ---   $    2,639  
   $    2,550   $      89   $    ---   $    2,639  
December 31, 2004 
Available for Sale: 
     U.S. Treasury and federal 
       agency securities  $  91,394   $    447   $      (442 ) $  91,399  
     State and municipal bonds  45,152   907   (209 ) 45,850