Courtesy: Mackinac Financial Corporation
MANISTIQUE, Mich. December 5, 2014 – The Directors of Mackinac Financial Corporation [Nasdaq: MFNC] (Mackinac), the holding company for mBank, announced Friday the consummation of the merger of Peninsula Financial Corporation (Peninsula), the holding company for Peninsula Bank, with and into Mackinac with Mackinac as the surviving corporation.
Following the closing of the merger, Peninsula Bank was consolidated into mBank and all branches will open as mBank locations on Monday, December 8, 2014.
The transaction increases mBank’s position as the largest bank (asset size) headquartered in the Upper Peninsula of Michigan with post-transaction assets estimated at approximately $740 million and balance sheet loans of $600 million. With the inclusion of the secondary market service retained sold loans of $300 million, total loans under management are expected to be approximately $900 million. Combined core deposits are expected to total approximately $500 million.
“On behalf of the entire mBank Board of Directors, staff, and management, we feel privileged to extend a sincere welcome to all Peninsula Bank clients, employees, and stockholders.” said Kelly W. George, mBank President and CEO. “With similar customer-centric cultures and complementary business philosophies, it was a natural fit for our two community-focused organizations to come together. With the increased Marquette County footprint, we will be able to offer an even more convenient and comprehensive banking experience and a strong line of products and services for all our clients. The Peninsula Bank customers and staff are valued additions to mBank’s longtime Upper Peninsula presence,” continued George. “We will continue to provide the best-in-class financial services experience that both mBank and Peninsula Bank customers are accustomed to.”
mBank anticipates that the transaction, with the majority of projected cost saves already implemented, will be immediately accretive to earnings. Peninsula’s data processing platform is expected to be converted to the mBank platform in March, 2015.
“We believe our patience and diligence in selecting the right partner is being rewarded with what we view as a very good transaction in the Peninsula acquisition” commented Paul D. Tobias, Chairman of Mackinac and mBank. “Strategically, the combination of these two institutions meets financial accretion targets, complements a very important Upper Peninsula market for us and is also in line with our company’s long term growth and value creation plan.”
mBank does not currently plan to close any Peninsula Bank branches following the transaction. Combined with mBank’s current seven Upper Peninsula locations, the acquisition nearly doubles mBank’s Upper Peninsula presence to 13 total branches and increases the number of total branches in Michigan from 11 to 17.
Mackinac was advised by River Branch Capital LLC and the law firm of Honigman Miller Schwartz and Cohn LLP.
Further information about the transaction and new customer resources can be found at www.bankmbank.com or by visiting a local mBank location.