Mackinac Financial Corporation to acquire Lincoln Community Bank (Wisconsin)
June 07 2018 - 4:07PM
The Directors of Mackinac Financial Corporation (Nasdaq:MFNC)
(Mackinac), the holding company for mBank, and the Directors of
Lincoln Community Bank (Lincoln) today announced the execution of a
definitive agreement for Mackinac to acquire Lincoln for $8.50
million in cash. Post-transaction assets of MFNC are estimated to
be approximately $1.40 billion and gross balance sheet loans of
roughly $1.05 billion.
“We are extremely pleased to be able to partner
with another long-standing community-focused institution in the
State of Wisconsin for our next transaction,” said Kelly W. George,
mBank President and CEO and President of Mackinac. “The increased
footprint will allow us to offer an even more expansive banking
experience to the Northern Central Wisconsin markets. We will look
to expand current client relationships and move forward in
developing new customers in a region where the business ecologies
are quite similar to our other Wisconsin and Upper Peninsula of
Michigan markets. From the entire mBank staff, management, and
Board of Directors, we look forward to working with everyone at
Lincoln and making a positive corporate impact for all
constituencies within your communities. More details of the
transaction will be forthcoming in the next few weeks via the mBank
website, mailings, and within the branch offices.”
Lincoln Community Bank currently operates two
(2) banking centers, one each in Merrill and Gleason, WI. As
of March 31, 2018, Lincoln had total assets of approximately $65
million, loans of $40 million and deposits of $58 million. Combined
with mBank's current 23 branches in Michigan and 6 branches in
Wisconsin, the acquisition will increase total branches from 29 to
31.
“As with our previous two Wisconsin acquisitions
in 2016, this transaction is a good strategic fit for the company,”
commented Paul D. Tobias, Chairman and CEO of Mackinac and Chairman
of mBank. “The branch locations and market cultures complement our
current footprint and will move us closer to larger commerce
centers in the region. The economics of the deal meet the key
metrics we require as a Board and management team as
well.”
The transaction is expected to close late in the
third quarter of 2018. The transaction remains subject to approval
by federal and state regulatory authorities as well as the
satisfaction of other customary closing conditions provided in the
purchase agreement. The purchase agreement also provides that
Lincoln will be consolidated into mBank.
Mackinac was advised by Piper Jaffray and the
law firm of Honigman Miller Schwartz and Cohn LLP. Lincoln was
advised by Hovde Group, LLC and the law firm of Ballard Spahr,
LLP.
About Mackinac Financial Corporation &
mBank Mackinac Financial Corporation is a registered bank
holding company formed under the Bank Holding Company Act of 1956
whose common stock is traded on the NASDAQ stock market as “MFNC”.
The principal subsidiary company is mBank. Headquartered in
Manistique, MI, mBank has a total of 29 branch locations throughout
Michigan and Northern Wisconsin and current assets in excess of
$1.3 billion. The company’s banking services include commercial
lending, asset-based lending, treasury management products,
services geared toward small to mid-sized businesses and a full
array of personal and business deposit products, consumer loans,
mobile banking, online banking and bill pay.
About Lincoln Community BankLincoln Community
Bank, headquartered in Merrill, WI, was founded in 1897. With
two branches located in Merrill and Gleason, Lincoln currently has
total assets of $65.1 million. The company’s banking services
include commercial and residential lending, as well as a full array
of personal and business deposit products, consumer loans, mobile
banking, online banking and bill pay.
Forward-Looking StatementsThis
release contains forward-looking statements within the meaning of
the “Safe-Harbor” provisions of the Private Securities Litigation
Reform Act of 1995 regarding Mackinac's outlook or expectations
with respect to the acquisition of Lincoln, including expected cost
savings, expected transaction-related and integration expenses and
the impact of the transaction on Mackinac's future performance.
Words and phrases such as "growth," "anticipates," "estimates,"
"expect," "plan," "approximately," “allows,” "should," "will," and
variations of such words and phrases or similar expressions are
intended to identify such forward-looking statements. Such
statements are based upon current beliefs and expectations and
involve substantial risks and uncertainties which could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements. These statements are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions ("risk factors") that are difficult
to predict with regard to timing, extent, likelihood and degree of
occurrence. Therefore, actual results and outcomes may materially
differ from what may be expressed or forecasted in such
forward-looking statements. Mackinac undertakes no obligation to
update, amend or clarify forward-looking statements, whether as a
result of new information, future events or otherwise.
Risk factors relating to both the transaction and the
integration of Lincoln into Mackinac after closing include, without
limitation:
- The anticipated cost savings and strategic gains expected from
the transaction may be significantly harder or take longer to
achieve than expected or may not be achieved in their entirety as a
result of unexpected factors or events;
- The integration of Lincoln's business and operations into
Mackinac, which will include conversion of Lincoln's operating
systems and procedures, may take longer than anticipated or be more
costly than anticipated or have unanticipated adverse results
relating to Lincoln's or Mackinac's existing businesses;
- Mackinac's ability to achieve anticipated results from the
transaction is dependent on the state of the economic and financial
markets going forward. Specifically, Mackinac may incur more credit
losses from Lincoln’s loan portfolio than expected and deposit
attrition may be greater than expected.
Risk factors also include, but are not limited to, the risk
factors described under "Risk Factors" in Mackinac's Annual Report
on Form 10-K filed with the Securities and Exchange Commission on
March 15, 2018. These and other factors are representative of the
risk factors that may emerge and could cause a difference between
an ultimate actual outcome and a preceding forward-looking
statement.
Contacts:
Paul D. Tobias Chairman & CEO Mackinac Financial Corporation
& Chairman mBank
Birmingham, MI (248)
290–5901ptobias@bankmbank.com
Kelly W. GeorgePresident, Mackinac Financial
Corporation & President & CEO,
mBank Manistique, MI (906)
341-7140kgeorge@bankmbank.com
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