(Mark One):

[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the fiscal year ended December 31, 2010

OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from ___________ to ___________

Commission file number: 000-25927

     A.  Full title of the plan and the address of the plan, if different from that of the issuer named below: Macatawa Bank 401(k) Plan

     B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Macatawa Bank Corporation, 10753 Macatawa Drive, Holland, Michigan 49424

PAGE

Report of Independent Registered Public Accounting Firm

1

Financial Statements for the Years Ended December 31, 2010 and 2009

     Statements of Net Assets Available for Benefits

2

     Statements of Changes in Net Assets Available for Benefits

3

     Notes to Financial Statements

4-13

Supplementary Information as of December 31, 2010

     Form 5500 Schedule H, Line 4i - Schedule of Assets (Held at End of Year)

14

Note:

All other schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

/s/ Rehmann Robson, P.C.

REHMANN ROBSON, P.C.

December 31

2010

2009

ASSETS

Investments at fair value

     Mutual funds

$

12,796,245

$

13,976,404

     Money market funds

378,030

616,734

     Macatawa Bank Corporation common stock

934,288

389,854

Total investments at fair value

14,108,563

14,982,992

Receivables

     Notes receivable from participants

275,017

359,282

     Accrued dividends receivable

1,795

33,590

Total receivables

276,812

392,872

Cash

5,163

-

Total assets

14,390,538

15,375,864

LIABILITIES

Due to brokers

5,167

-

Net assets available for benefits

$

14,385,371

$

15,375,864

Year Ended December 31

2010

2009

Additions to net assets attributed to

     Investment income

          Dividend income

$

166,129

$

202,361

          Interest income

570

2,101

     Total investment income

166,699

204,462

     Contributions

          Participant

979,218

1,352,640

          Employer

-

718,995

          Rollover

113,836

28

     Total contributions

1,093,054

2,071,663

     Interest income - notes receivable from participants

12,056

8,982

Total additions

1,271,809

2,285,107

Deductions from net assets attributed to

     Benefits paid to participants

4,562,778

1,980,917

     Administrative expenses

6,675

5,475

Total deductions

4,569,453

1,986,392

Net appreciation in fair value of investments

2,307,151

2,965,098

Net (decrease) increase

(990,493

)

3,263,813

Net assets available for benefits

     Beginning of year

15,375,864

12,112,051

     End of year

$

14,385,371

$

15,375,864

1.

DESCRIPTION OF THE PLAN AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following description of the Macatawa Bank 401(k) Plan (the "Plan") provides only general information. Participants should refer to the Plan agreement, or Summary Plan Description, for a more complete description of the Plan's provisions.

Description of the Plan

General

The Plan is a defined contribution plan covering all full-time employees of Macatawa Bank Corporation ("Plan Sponsor", "Employer", or "Corporation") who have attained the age of 21 or older. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA").

Contributions

Participants may defer and contribute annual compensation, as defined in the Plan, up to the maximum amount allowed by the Internal Revenue Code. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants may also contribute rollover amounts representing distributions from other qualified defined benefit or defined contribution plans. In 2009, the Plan elected safe harbor status. Under this status, the Plan's Sponsor contributed a safe harbor match in an amount equal to 100% of the first 3% and 50% of the second 3% of base compensation that a participant contributes to the Plan. Effective January 1, 2010, the Plan Sponsor has temporarily discontinued safe harbor status and elected to suspend all matching contributions. Participants direct the investment of contributions into various investment options offered by the Plan. The Plan currently offers mutual funds, a money market fund and Macatawa Bank Corporation common stock as investment options for participants. Contributions are subject to certain limitations.

Participant Accounts

Each participant's account is credited with the participant's contribution, the Employer's matching contribution, when made, and an allocation of Plan earnings and charged with an allocation of administrative expenses, as applicable. Allocations are based on the ratio of each participant's earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.

Vesting

Participants are immediately vested in employee deferral and employer matching contributions, plus actual investment earnings thereon.

Notes Receivable from Participants

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their account balance. The notes receivable are secured by the balance in the participant's account and bear interest at the prime rate plus 1% (effective rate of 4.25% at December 31, 2010) established at the time of the execution of the note receivable, which is commensurate with local prevailing rates as determined quarterly by the Plan Administrator. Principal and interest is paid to the Plan ratably through payroll deductions.

Payment of Benefits

On termination of service due to death, disability or retirement, a participant is required to receive a lump-sum amount equal to the value of his or her vested interest in his or her account as defined by the Plan agreement. For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution. In-service withdrawal of account balances may be elected by active participants who have reached 59½ years of age. Effective January 1, 2009, the Plan was amended to permit withdrawals by active participants only in amounts necessary to satisfy financial hardship as defined by the Plan agreement.

Administrative Expenses

The Plan's administrative expenses, including salaries, accounting, legal, recordkeeping and trust services are paid by the Plan Sponsor and qualify as party-in-interest transactions, which are exempt from prohibited transaction rules. An administrative fee is charged to those participants electing to receive a distribution and an annual administrative fee is charged to those participants who have terminated service from the Corporation but continue to maintain an account balance in the Plan. There is also an administrative service fee is charged to the individual participants account at the time a note receivable is issued.

Summary of Significant Accounting Policies

Basis of Accounting

The financial statements of the Plan are prepared using the accrual method of accounting.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Investment Valuation and Income Recognition

Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 3 for a description of fair value measurements.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation in aggregate fair value includes the Plan's unrealized gains and losses on investments bought and sold as well as those held during the year.

Management fees and operating expenses charged to the Plan related to investments in mutual funds are deducted from income earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a direct reduction of net appreciation or an addition to net depreciation in the aggregate fair value of such investments.

Notes Receivable from Participants

Notes receivable from participants are measured at their unpaid principal balance plus any accrued unpaid interest. Delinquent notes receivable, if any, from participants are reclassified as distributions based upon the terms of the Plan agreement.

Payment of Benefits

Benefits are recorded when paid.

New Accounting Pronouncements

In September 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") 2010-25, Reporting Loans to Participants by Defined Contribution Pension Plans. ASU 2010-25 requires participant loans to be measured at their unpaid principal balance plus any accrued but unpaid interest and to be classified as notes receivable from participants. Previously, participant loans were measured at fair value and classified as investments. Accordingly, participant loans have been reclassified from investments to "notes receivable from participants" on the accompanying 2009 statement of net assets available for benefits; interest income from participant loans has also been reclassified and is presented separately as "interest income - notes receivable from participants" in the 2009 statement of changes in net assets available for benefits.

In January 2010, the FASB issued ASU 2010-06, Improving Disclosures about Fair Value Measurements. ASU 2010-06 amended ASC 820, Fair Value Measurements and Disclosures, to clarify certain existing fair value disclosures and to require a number of additional disclosures. The guidance in ASU 2010-06 clarified that disclosures should be presented separately for each "class" of assets and liabilities measured at fair value and provided guidance on how to determine the appropriate classes of assets and liabilities to be presented. ASU 2010-06 also clarified the requirement for entities to disclose information about both the valuation techniques and inputs used in estimating Level 2 and Level 3 fair value measurements. In addition, ASU 2010-06

introduced new requirements to disclose the amounts (on a gross basis) and reasons for any significant transfers between Levels 1, 2, and 3 of the fair value hierarchy and to present information regarding the purchases, sales, issuances, and settlements of Level 3 assets and liabilities on a gross basis. With the exception of the requirement to present changes in Level 3 measurements on a gross basis, which is delayed until 2011, the guidance in ASU 2010-06 is effective for reporting periods beginning after December 15, 2009. The adoption of ASU 2010-06 did not have an effect on the amount of the Plan's net assets available for benefits or its changes in net assets available for benefits, since these additional requirements are related to the fair value measurement disclosures (see Note 3).

2.

INVESTMENTS

Investments representing 5% or more of the Plan's net assets available for benefits are identified as follows at December 31:

2010

2009

Investments at fair value as determined by

   quoted market price

      Mutual funds

         Dodge and Cox Stock Fund

$

1,818,683

$

1,774,452

         Fidelity Spartan U.S. Equity Index Fund

1,666,432

1,771,608

         Neuberger Berman Genesis Investor Fund

1,474,086

1,481,460

         Columbia Acorn Fund

1,418,372

1,348,900

         Janus Overseas Fund

1,314,220

1,426,182

         T. Rowe Price Growth Stock Fund

932,961

1,325,838

         Vanguard Mid Cap Index Fund

720,042

*

         T. Rowe Price Mid-Cap Fund

*

798,198

      Common stock

         Macatawa Bank Corporation

934,288

*

         Other investments less than 5% of the

         Plan's net assets available for benefit

3,829,479

5,056,354

Total

$

14,108,563

$

14,982,992

*Investment did not represent more than 5% of the Plan's net assets available for benefits at end of year.

The Plan's investments (including unrealized gains and losses on investments bought and sold, as well as those held during the year) appreciated (depreciated) in value as follows for the years ended December 31:

2010

2009

Investments at fair value

   Macatawa Bank Corporation common stock

$

472,208

$

(160,604

)

   Mutual funds

1,834,943

3,125,702

Net appreciation

$

2,307,151

$

2,965,098

3.

FAIR VALUE MEASUREMENTS

The FASB Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, establishes the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy under FASB ASC 820 are described as follows:

Level 1:

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

Level 2:

Inputs to the valuation methodology include:

•

quoted prices for similar assets or liabilities in active markets;

•

quoted prices for identical or similar assets or liabilities in inactive markets;

•

inputs other than quoted prices that are observable for the asset or liability; and

•

inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3:

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurements. Valuation techniques used are required to maximize the use of observable inputs and minimize the use of unobservable inputs.

The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in such methodologies used at December 31, 2010 and 2009.

Mutual funds: Shares held in mutual funds are valued at the net asset value ("NAV") of shares held by the Plan at year end. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities then divided by the number of shares outstanding.

Money market fund: Shares held in money market funds are comprised of government, bank and commercial debt securities with individual maturities of 12 months or less. The composition of securities is structured to maintain a value of $1 per share.

Common stock: Macatawa Bank Corporation common stock is valued at the closing price reported in the active market in which the individual securities are traded.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31:

2010

Level 1

Level 2

Level 3

Total

Mutual funds

   Fixed income

      Intermediate government

$

400,903

$

-

$

-

$

400,903

      Short-term bond

187,455

-

-

187,455

      Long-term bond

79,846

-

-

79,846

   Equity

      Small blend

1,474,087

-

-

1,474,087

      Small growth

41,796

-

-

41,796

      Small value

62,962

-

-

62,962

      Mid-cap blend

720,042

-

-

720,042

      Mid-cap growth

2,029,241

-

-

2,029,241

      Mid-cap value

6,784

-

-

6,784

      Large blend

1,666,432

-

-

1,666,432

      Large growth

932,961

-

-

932,961

      Large value

1,818,683

-

-

1,818,683

      Moderate allocation

639,745

-

-

639,745

      Aggressive allocation

271,071

-

-

271,071

      Conservative allocation

145,101

145,101

      Target date 2015-2029

280,312

-

-

280,312

      Target date 2030 plus

326,563

-

-

326,563

      Foreign large blend

125,356

-

-

125,356

      Foreign large growth

1,314,220

-

-

1,314,220

      Foreign large value

272,685

-

-

272,685

Total mutual funds

12,796,245

-

-

12,796,245

Money market fund

-

378,030

-

378,030

Macatawa Bank Corporation

   common stock

      Financial institution

934,288

-

-

934,288

Total investments at fair

   value

$

13,730,533

$

378,030

$

-

$

14,108,563

2009

Level 1

Level 2

Level 3

Total

Mutual funds

   Fixed income

      Short-term bond

$

404,629

$

-

$

-

$

404,629

      Long-term bond

74,251

-

-

74,251

      Intermediate government

672,073

-

-

672,073

   Equity

      Small blend

1,481,460

-

-

1,481,460

      Small growth

53,558

-

-

53,558

      Small value

18,790

-

-

18,790

      Mid-cap blend

630,543

-

-

630,543

      Mid-cap growth

2,147,099

-

-

2,147,099

      Mid-cap value

186,848

-

-

186,848

      Large blend

2,127,759

-

-

2,127,759

      Large growth

1,325,838

-

-

1,325,838

      Large value

1,774,452

-

-

1,774,452

      Moderate allocation

557,650

-

-

557,650

      Conservative allocation

144,112

-

-

144,112

      Target date 2015-2029

231,862

-

-

231,862

      Target date 2030 plus

214,836

-

-

214,836

      Foreign large blend

159,643

-

-

159,643

      Foreign large growth

1,426,182

-

-

1,426,182

      Foreign large value

344,819

-

-

344,819

Total mutual funds

13,976,404

-

-

13,976,404

Money market fund

-

616,734

-

616,734

Macatawa Bank Corporation

   common stock

      Financial institution

389,854

-

-

389,854

Total investments at fair

   value

$

14,366,258

$

616,734

$

-

$

14,982,992

4.

RELATED PARTY TRANSACTIONS

Parties-in-interest are defined under Department of Labor (DOL) regulations as any fiduciary of the Plan, and any party rendering service to the Plan, the employer, and certain others. Certain Plan investments are held in shares of common stock of the Plan sponsor, or funds managed by Northern Trust Corporation and, therefore, these transactions qualify as party-in-interest. The Plan's investment in Northern Trust Money Market Fund and Macatawa Bank Corporation common stock as of December 31, 2010 and 2009, represent party-in-interest investment transactions.

Macatawa Bank Corporation, through its trust department, serves as trustee, custodian, and record keeper for the Plan. Therefore, all transactions between the Plan and Macatawa Bank Corporation constitute party-in-interest transactions. The 226,769 and 186,533 shares of Macatawa Bank Corporation common stock held by the Plan as of December 31, 2010 and 2009, represent approximately 1.28% and 1.07% of the Corporation's total outstanding shares of common stock, respectively.

No cash dividends were paid to the Plan by Macatawa Bank Corporation during 2010 and 2009. Fees paid to the trust department of Macatawa Bank Corporation for administrative expenses were $6,675 and $5,475 in 2010 and 2009, respectively.

5.

INCOME TAX STATUS

The Corporation's Board of Directors adopted the Macatawa Bank Prototype 401(k) plan document. The plan document has received, from the Internal Revenue Service, an opinion letter dated March 31, 2008, stating that the written form of the underlying prototype plan is qualified under Section 401(a) of the Internal Revenue Code (the "Code") and that any employer adopting this form of the Plan will be considered to have a plan qualified under Sections 401(a) of the Code. The Plan is required to operate in conformity with the Code to maintain its qualification. The Plan's administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes the Plan is qualified and the related trust is tax exempt.

Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability or asset if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the applicable taxing authorities. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2010, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the financial statements. The Plan may be subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan Administrator believes the Plan is no longer subject to income tax examinations for years prior to 2007.

6.

PLAN TERMINATION

The Plan Sponsor has the right under the Plan to discontinue its contributions at any time and did so temporarily effective January 1, 2010, as discussed in Note 1. The Plan Sponsor has not expressed any intent to terminate the Plan subject to the provisions of ERISA.

7.

RISKS AND UNCERTAINTIES

The Plan invests in various mutual funds with underlying assets consisting of a combination of stocks, bonds, fixed income securities and other investment securities, a money market fund and in shares of Macatawa Bank Corporation common stock. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the fair values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statements of net assets available for benefits and the statements of changes in net assets available for benefits.

8.

RECONCILIATION OF FINANCIAL STATEMENTS TO SCHEDULE H OF FORM 5500

The following is a reconciliation of investments at fair value reported in these financial statements to the amounts reported on Schedule H to the Form 5500 at December 31:

2010

2009

Investments at fair value reported in these

   financial statements

$

14,108,563

$

14,982,992

Notes receivable from participants

275,017

359,282

Investments reported on Schedule H to

   Form 5500

$

14,383,580

$

15,342,274

The following is a reconciliation of interest income from investments reported in these financial statements for the years ended December 31 to the amounts reported on Schedule H to Form 5500:

2010

2009

Interest income from reported in these

   financial statements

$

570

$

2,101

Interest income - notes receivable from

   participants

12,056

8,982

Interest income reported on Schedule H

   to Form 5500

$

12,626

$

11,083

Participant loans are recorded on the Schedule H to the Form 5500 as an investment, while participant loans are reported as "notes receivable from participants" in the caption receivables in the accompanying financial statements. Additionally, interest income from participant loans is reported on the Schedule H to the Form 5500 as investment income, while interest income from participant loans are reported as "interest income - notes receivable from participants" in the accompanying financial statements. See Note 1.

9.

SUBSEQUENT EVENT

Subsequent to December 31, 2010, the market value of the shares held in Macatawa Bank Corporation common stock decreased from $4.12 per share as of December 31, 2010, to $2.24 per share as of close of business on June 15, 2011.

MACATAWA BANK 401(k) PLAN
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2010
PLAN #001
EIN 38-3378283

(a)

(b) Identity
of Issue, Borrower,
Lessor, or Similar Party

(c) Description of Investment
Including Maturity Date, Rate of
Interest, Collateral, Par or Maturity Value

(e)
Current
Value

Mutual funds

   Dodge and Cox Funds

Dodge and Cox Stock Fund, 16,877 shares

$   1,818,683

*

   Fidelity Investments

Spartan U.S. Equity Index Fund, 37,464 shares

1,666,432

   Neuberger Berman

Neuberger Berman Genesis Investor Fund, 44,373 shares

1,474,087

   Columbia

Columbia Acorn Fund, 46,981 shares

1,418,372

   Janus

Janus Overseas Fund, 25,952 shares

1,314,220

   T. Rowe Price

T. Rowe Price Growth Stock Fund, 29,019 shares

932,961

   Vanguard

Vanguard Mid-Cap Index Fund, 35,452 shares

720,042

   T. Rowe Price

T. Rowe Price Mid Cap Fund, 10,436 shares

610,869

*

   Fidelity Investments

Government Income Fund, 38,437 shares

400,903

   Value Line Mutual Funds

Value Line Income & Growth Fund, 42,536 shares

359,862

   T. Rowe Price

T. Rowe Price 2020 Retirement Fund, 17,050 shares

280,312

   T. Rowe Price

T. Rowe Price PS Balanced Fund, 14,707 shares

279,883

   Dodge and Cox Funds

Dodge & Cox International Stock Fund, 7,636 shares

272,685

   T. Rowe Price

T. Rowe Price PS Growth Fund, 11,831 shares

271,071

   T. Rowe Price

T. Rowe Price 2030 Retirement Fund, 11,143 shares

192,561

   Vanguard

Vanguard Short-term Investment, 17,405 shares

187,455

   T. Rowe Price

T. Rowe Price PS Income Fund, 9,046 shares

145,101

   UMB Scout

Scout International Fund, 3,671 shares

118,879

   T. Rowe Price

T. Rowe Price 2040 Retirement Fund, 5,442 shares

94,800

   Vanguard

Vanguard Long-term Bond Index Fund, 6,631 shares

79,846

   Allianz Fund

Allianz Small Cap Value Fund, 2,209 shares

62,962

   Royce

Royce Value Plus Service Fund, 3,091 shares

41,796

   T. Rowe Price

T. Rowe Price 2050 Retirement Fund, 4024 shares

39,202

   Ridgeworth Investments

Ridgeworth Mid Cap Value Equity, 571 shares

6,784

   American Funds

American Funds EuroPacific Fund R5, 156 shares

6,477

Total mutual funds

12,796,245

Money market fund

*

   Northern Trust Corporation

Diversified Assets Money Market Fund, 378,030 shares

378,030

Common stock

*

   Macatawa Bank Corporation

226,769 shares of common stock

934,288

Total investments at fair value

14,108,563

*

Notes receivable from

   participants

Loans, maturity 1 to 5 years, interest rates of 4.25%,

collateral - participant account balances

275,017

Total investments

$  14,383,580

The following exhibits are filed as part of this report:

23.1

Consent of Independent Registered Public Accounting Firm

MACATAWA BANK 401(k) PLAN

Dated:  June 17, 2011

By:

/s/ Jon W. Swets

Jon W. Swets

Chief Financial Officer

23.1

Consent of Independent Registered Public Accounting Firm