As used in this report, the terms "we," "us," "our," "Macatawa" and "Company" mean Macatawa Bank Corporation and its subsidiaries, unless the context indicates another meaning. The term "Bank" means Macatawa Bank.
Macatawa Bank Corporation is a Michigan corporation, incorporated in 1997, and is a registered bank holding company. It wholly-owns Macatawa Bank, Macatawa Statutory Trust I and Macatawa Statutory Trust II. Macatawa Bank is a Michigan chartered bank with depository accounts insured by the FDIC. The Bank operates twenty-six branch offices and a lending and operational service facility, providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. Macatawa Statutory Trusts I and II are grantor trusts and have issued $20.0 million each of pooled trust preferred securities. These trusts are not consolidated in our Consolidated Financial Statements. For further information regarding consolidation, see the Notes to the Consolidated Financial Statements.
At December 31, 2018, we had total assets of $1.98 billion, total loans of $1.41 billion, total deposits of $1.68 billion and shareholders' equity of $190.9 million. We recognized net income of $26.4 million in 2018 compared to net income of $16.3 million in 2017. Earnings in 2017 were reduced by $2.5 million to record the impact of tax reform enacted in 2017 on the value of the Company's net deferred tax assets. Earnings before income tax in 2018 and 2017 improved over their respective previous years through growth in total revenue, primarily net interest income, while holding noninterest expenses flat. As of December 31, 2018, the Company's and the Bank's risk-based regulatory capital ratios were significantly above those required under the regulatory standards and the Bank continued to be categorized as "well capitalized" at December 31, 2018.