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.

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