Macatawa Bank Corp. in Holland, Mich., said its banking subsidiary has entered into a formal agreement with regulators that requires higher-than-typical capital ratios and orders the bank to clean up its asset portfolio.

The $1.8 billion-asset Macatawa said the Feb. 22 agreement with the Federal Deposit Insurance Corp. and the Michigan Office of Financial and Insurance Regulation requires an 8% leverage ratio and an 11% total risk-based capital ratio. The bank is also required to charge off all classified assets identified in its last exam by the Federal Deposit Insurance Corp.

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