Despite raising capital three times in the last 12 months, Macatawa Bank Corp. in Holland, Mich., needs more capital because of mounting losses.

Macatawa, which has assets of $1.98 billion, said Friday that it swung to a $20.9 million loss in the third quarter from a profit of $1.9 million a year earlier. The loss narrowed from $30.4 million in the second quarter, but it caused the total risk-based capital ratio at Macatawa's bank unit to fall from 10.2% on June 30 to 9.3% on Sept. 30. That is considered only adequate under regulatory standards; an institution is considered well capitalized if the ratio is 10% or higher.

Macatawa said it "continues to explore alternatives to increase its capital, including efforts to obtain either private capital in the form of common stock, preferred stock and subordinated debt or to obtain capital through public markets."

In the third quarter, Macatawa provisioned $21.6 million, nearly 10 times the amount a year earlier. The ratio of nonperforming assets to total assets at the end of the quarter was 6.15%, up 177 basis points from the same time last year.

The company raised $31 million in the fourth quarter of 2008 and another $6 million in this year's second and third quarters.

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