Exhibit 99
PRESS RELEASE
| For Release: | August 10, 2010 | |
| Nasdaq: | MFNC | |
| Contact: | Investor Relations at (888) 343-8147 | |
| Website: | www.bankmbank.com |
MACKINAC FINANCIAL CORPORATION
REPORTS SECOND QUARTER AND SIX MONTHS 2010 RESULTS
REPORTS SECOND QUARTER AND SIX MONTHS 2010 RESULTS
(Manistique, Michigan) — Mackinac Financial Corporation (Nasdaq: MFNC), the bank holding company for mBank (the “Bank”) today announced a second quarter 2010 loss of $2.488 million or $.73 per share compared to net income of $.461 million, or $.13 per share for the second quarter of 2009. Net income for the first six months of 2010 totaled $1.038 million, or $.30 per share, compared to $.551 million, or $.16 per share, for the same period in 2009. The second quarter results include a provision for loan losses of $2.800 million and $1.800 million of write-downs of OREO properties. Operating results for the six month period in 2010 include a $3.700 million provision, the $1.800 million OREO write-downs, and a $3.500 million deferred tax benefit. Total shareholders’ equity at June 30, 2010 totaled $56.231 million, compared to $53.939 million on June 30, 2009, an increase of $2.292 million, or 4.25%. Book value of common shareholders’ equity was $13.34 per share at June 30, 2010 compared to $12.55 per share at June 30, 2009.
Income before tax, and excluding the loan loss provisions and OREO write-downs for the second quarter of 2010 amounted to $1.086 million compared to $1.020 million in 2009 while the 2010 six month adjusted income would total $2.286 million compared to $1.667 million in 2009. Outside of the credit items impacting this quarter, the company continues to gain positive momentum in terms of its core earning asset base with a sound balance sheet structure, coupled with strong core deposit growth which has been a central focus of this year’s business initiatives. Core deposits totaled $271.026 million at June 30, 2010 a 29.2% increase from 2009 year end core deposits of $209.828 million.
The larger loan loss provisions, along with the OREO write-downs, primarily reflect the continued deterioration of a few large existing nonperforming credit relationships in Southeast Michigan and two smaller relationships which emerged this year. In addition, a portion of the provision was to increase the general allowance for loan losses, which stands at 1.65% at June 30, 2010, in recognition of the remaining adverse economic factors associated with the stagnant and depressed commercial real estate markets in many metropolitan areas such as Southeast Michigan. The OREO write-down includes a $1.4 million adjustment on a vacant parcel of land in Southeast Michigan which has decreased in value by more than 75% since the inception of the credit relationship in 2006.
Nonperforming assets at the end of the second quarter of 2010 totaled $16.719 million, 3.34% of total assets, a reduction of $4.322 million from 2009 year end balances of $21.041 million. Kelly George, President and Chief Executive Officer of mBank, commented, “We are working aggressively to reduce our nonperforming asset
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levels. We expect additional reductions in future periods, including a third quarter reduction resulting from a forward contract sale of a $3.2 million commercial property. Nonaccrual loans represent 2.87% of total loans and loan delinquencies greater than 30 days have remained stable and continue to reside below peer levels and manageable. The company’s Texas Ratio remained satisfactory at 26.71%. We will continue our timely and aggressive efforts in the identification and resolution of nonperforming assets which should result in more normalized loan loss provisions and lowered credit related costs in future periods.”
Loans at June 30, 2010 totaled $384.839 million, a 3.45% increase from the $372.004 million at June 30, 2009, and were relatively unchanged from 2009 year end balances of $384.310 million. Mr. George stated, “Given the current economic environment, and competitive requirements for loan pricing and credit quality, we are pleased with current year to date production which totaled $36.0 million, 75% of this production originated in the Upper Peninsula. We continue to see loan opportunities, not only in the Upper Peninsula, but also in Lower Michigan and our current pipeline is promising. A part of our success in loan production is attributed to our expertise with the SBA and USDA loan guarantee programs. These programs benefit us with new loan opportunities along with a secondary source of balance sheet liquidity and the potential for significant fee income when the guaranteed portion is sold. Thus far in 2010 we have sold $5.8 million of these loan balances and recognized $.449 million in gains.”
Total assets of the Corporation at June 30, 2010 were $500.774 million, down $5.530 million, or 1.09% from the $506.304 million in total assets reported at June 30, 2009 and down $14.603 million, or 2.83%, from total assets of $515.377 million at year-end 2009. Asset totals at June 30, 2010 reflect the decrease of $11.571 million in securities.
Total deposits of $405.784 were lower than deposit totals reported at June 30, 2009 of $413.152 million and 2009 year-end deposits of $421.389 million. The decreased deposit level was due entirely to lower levels of brokered deposits, a very positive initiative given the current regulatory climate for this type of funding source, which totaled $111.106 million at June 30, 2010 compared to $175.176 million at 2009 year end and $184.805 million at June 30, 2009.
Noninterest income, totaled $.593 million in the second quarter of 2010, compared to $.439 million in the same period in 2009. Noninterest income for the six month period in 2010 amounted to $1.400 million compared to $.830 million in 2009. The increase in noninterest income for 2010 is primarily due to gains that were recognized for SBA loan sales. The Corporation also recognized $.215 million in gains from the sale of securities which was recorded in the first quarter of 2010. Noninterest expense totaled $5.331 million in the second quarter, an increase of $1.860 million from the second quarter of 2009. This increase stems primarily from the $1.800 million of OREO write-downs recorded in the 2010 second quarter. On a year to date basis 2010 noninterest expense totaled $8.959 million, an increase of $2.249 million when compared to the six months ended June 30, 2009. The increase in expenses is primarily attributed to costs associated with nonperforming assets which were $2.1 million higher in 2010 and included the OREO write-down.
MFNC Chairman and CEO Paul Tobias concluded, “We remain focused on increasing shareholder value. The loss for the second quarter is disappointing but a momentary setback in our forward progress towards increased profitability. Our core earnings are increasing. We continue to look for opportunities that will enhance the franchise value including FDIC assisted transactions along with traditional acquisitions that will be accretive to earnings and additive to our core deposit objectives.”
Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $500 million and whose common stock is traded on the NASDAQ stock market as “MFNC.” The principal subsidiary of the Corporation is mBank. Headquartered in Manistique, Michigan, mBank has 11 branch locations; seven in the Upper Peninsula, three in the Northern Lower Peninsula and one in Oakland County, Michigan. The Company’s banking services include commercial
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lending and treasury management products and services geared toward small to mid-sized businesses, as well as a full array of personal and business deposit products and consumer loans.
Forward-Looking Statements
This release contains certain forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “should,” “will,” and variations of such words and similar expressions are intended to identify forward-looking statements: as defined by the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current beliefs as to expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions 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. Factors that could cause a difference include among others: changes in the national and local economies or market conditions; changes in interest rates and banking regulations; the impact of competition from traditional or new sources; and the possibility that anticipated cost savings and revenue enhancements from mergers and acquisitions, bank consolidations, branch closings and other sources may not be fully realized at all or within specified time frames as well as other risks and uncertainties including but not limited to those detailed from time to time in filings of the Company with the Securities and Exchange Commission. These and other factors may cause decisions and actual results to differ materially from current expectations. Mackinac Financial Corporation undertakes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.
7
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
SELECTED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
| For The Period Ended | ||||||||||||
| June 30, | December 31, | June 30, | ||||||||||
| 2010 | 2009 | 2009 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
Selected Financial Condition Data (at end of period): | ||||||||||||
| Assets | $ | 500,774 | $ | 515,377 | $ | 506,304 | ||||||
| Loans | 384,839 | 384,310 | 372,004 | |||||||||
| Investment securities | 34,942 | 46,513 | 95,620 | |||||||||
| Deposits | 405,784 | 421,389 | 413,152 | |||||||||
| Borrowings | 36,140 | 36,140 | 36,210 | |||||||||
| Shareholders’ Equity | 56,231 | 55,299 | 53,939 | |||||||||
Selected Statements of Income Data(six months and year ended): | ||||||||||||
| Net interest income | $ | 8,045 | $ | 16,287 | $ | 7,546 | ||||||
| Provision for loan losses | 3,700 | 3,700 | 700 | |||||||||
| Income (Loss) before taxes and preferred dividend | (3,214 | ) | 3,536 | 967 | ||||||||
| Net income | 1,038 | 1,907 | 551 | |||||||||
| Income per common share - Basic | .30 | .56 | .16 | |||||||||
| Income per common share - Diluted | .30 | .56 | .16 | |||||||||
Three Months Ended: | ||||||||||||
| Net interest income | $ | 4,023 | $ | 4,431 | $ | 4,051 | ||||||
| Income (Loss) before taxes and preferred dividend | (3,514 | ) | (16 | ) | 870 | |||||||
| Net income (Loss) | (2,488 | ) | (180 | ) | 461 | |||||||
| Income (Loss) per common share - Basic | (0.73 | ) | (.05 | ) | .13 | |||||||
| Income (Loss) per common share - Diluted | (0.73 | ) | (.05 | ) | .13 | |||||||
| Weighted average shares outstanding | 3,419,736 | 3,419,736 | 3,419,736 | |||||||||
Selected Financial Ratios and Other Data (six months and year ended): | ||||||||||||
Performance Ratios: | ||||||||||||
| Net interest margin | 3.53 | % | 3.59 | % | 3.47 | % | ||||||
| Efficiency ratio | 77.08 | 73.37 | 79.25 | |||||||||
| Return on average assets | .41 | .39 | .23 | |||||||||
| Return on average common equity | 3.70 | 3.77 | 2.42 | |||||||||
| Average total assets | $ | 505,703 | $ | 493,652 | $ | 473,074 | ||||||
| Average total common shareholders’ equity | $ | 56,506 | $ | 50,531 | $ | 45,856 | ||||||
| Average loans to average deposits ratio | 93.59 | % 92.99 | % | 95.90 | % | |||||||
Common Share Data (at end of period): | ||||||||||||
| Market price per common share | $ | 6.50 | $ | 4.64 | $ | 4.50 | ||||||
| Book value per common share | $ | 13.34 | $ | 13.10 | $ | 12.55 | ||||||
| Common shares outstanding | 3,419,736 | 3,419,736 | 3,419,736 | |||||||||
Other Data (at end of period): | ||||||||||||
| Allowance for loan losses | $ | 6,371 | $ | 5,225 | $ | 4,119 | ||||||
| Non-performing assets | $ | 16,719 | $ | 21,041 | $ | 14,825 | ||||||
| Allowance for loan losses to total loans | 1.66 | % 1.36 | % | 1.11 | % | |||||||
| Non-performing assets to total assets | 3.34 | % 4.08 | % | 2.93 | % | |||||||
| Texas Ratio* | 26.71 | % 34.77 | % | 25.54 | % | |||||||
| Number of: | ||||||||||||
| Branch locations | 11 | 10 | 11 | |||||||||
| FTE Employees | 105 | 100 | 102 | |||||||||
| * | Texas Ratio: Non-performing Assets divided by Total Equity plus Allowance for Loan Losses |
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MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | June 30, | ||||||||||
| (Dollars in thousands) | 2010 | 2009 | 2009 | |||||||||
| (unaudited) | (unaudited) | |||||||||||
ASSETS | ||||||||||||
| Cash and due from banks | $ | 39,165 | $ | 18,433 | $ | 12,189 | ||||||
| Federal funds sold | 12,000 | 27,000 | — | |||||||||
| Cash and cash equivalents | 51,165 | 45,433 | 12,189 | |||||||||
| Interest-bearing deposits in other financial institutions | 678 | 678 | 618 | |||||||||
| Securities available for sale | 34,942 | 46,513 | 95,620 | |||||||||
| Federal Home Loan Bank stock | 3,794 | 3,794 | 3,794 | |||||||||
| Loans: | ||||||||||||
| Commercial | 302,228 | 305,670 | 296,392 | |||||||||
| Mortgage | 78,428 | 74,350 | 71,777 | |||||||||
| Installment | 4,183 | 4,290 | 3,835 | |||||||||
| Total Loans | 384,839 | 384,310 | 372,004 | |||||||||
| Allowance for loan losses | (6,371 | ) | (5,225 | ) | (4,119 | ) | ||||||
| Net loans | 378,468 | 379,085 | 367,885 | |||||||||
| Premises and equipment | 10,085 | 10,165 | 11,064 | |||||||||
| Other real estate held for sale | 5,676 | 5,804 | 4,950 | |||||||||
| Other assets | 15,966 | 23,905 | 10,184 | |||||||||
TOTAL ASSETS | $ | 500,774 | $ | 515,377 | $ | 506,304 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| LIABILITIES: | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest bearing deposits | $ | 41,434 | $ | 35,878 | $ | 33,368 | ||||||
| NOW, money market, checking | 118,909 | 95,790 | 75,974 | |||||||||
| Savings | 20,110 | 18,207 | 21,411 | |||||||||
| CDs<$100,000 | 90,573 | 59,953 | 72,139 | |||||||||
| CDs>$100,000 | 23,652 | 36,385 | 25,455 | |||||||||
| Brokered | 111,106 | 175,176 | 184,805 | |||||||||
| Total deposits | 405,784 | 421,389 | 413,152 | |||||||||
| Borrowings: | ||||||||||||
| Federal Home Loan Bank | 35,000 | 35,000 | 35,000 | |||||||||
| Other | 1,140 | 1,140 | 1,210 | |||||||||
| Total borrowings | 36,140 | 36,140 | 36,210 | |||||||||
| Other liabilities | 2,619 | 2,549 | 3,003 | |||||||||
| Total liabilities | 444,543 | 460,078 | 452,365 | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 56,231 | 55,299 | 53,939 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 500,774 | $ | 515,377 | $ | 506,304 | ||||||
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MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (Dollars in thousands except per share data) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
INTEREST INCOME: | ||||||||||||||||
| Interest and fees on loans: | ||||||||||||||||
| Taxable | $ | 5,227 | $ | 5,104 | $ | 10,418 | $ | 10,106 | ||||||||
| Tax-exempt | 47 | 84 | 99 | 174 | ||||||||||||
| Interest on securities: | ||||||||||||||||
| Taxable | 356 | 673 | 753 | 1,132 | ||||||||||||
| Tax-exempt | 7 | 3 | 14 | 4 | ||||||||||||
| Other interest income | 37 | 14 | 77 | 16 | ||||||||||||
| Total interest income | 5,674 | 5,878 | 11,361 | 11,432 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
| Deposits | 1,439 | 1,566 | 2,896 | 3,344 | ||||||||||||
| Borrowings | 212 | 261 | 420 | 542 | ||||||||||||
| Total interest expense | 1,651 | 1,827 | 3,316 | 3,886 | ||||||||||||
| Net interest income | 4,023 | 4,051 | 8,045 | 7,546 | ||||||||||||
| Provision for loan losses | 2,800 | 150 | 3,700 | 700 | ||||||||||||
| Net interest income after provision for loan losses | 1,223 | 3,901 | 4,345 | 6,846 | ||||||||||||
OTHER INCOME: | ||||||||||||||||
| Service fees | 252 | 271 | 474 | 514 | ||||||||||||
| Net security gains | — | — | 215 | — | ||||||||||||
| Net gains on sale of secondary market loans | 276 | 84 | 575 | 142 | ||||||||||||
| Other | 65 | 84 | 136 | 174 | ||||||||||||
| Total other income | 593 | 439 | 1,400 | 830 | ||||||||||||
OTHER EXPENSES: | ||||||||||||||||
| Salaries and employee benefits | 1,781 | 1,561 | 3,501 | 3,158 | ||||||||||||
| Occupancy | 345 | 355 | 690 | 733 | ||||||||||||
| Furniture and equipment | 197 | 222 | 391 | 411 | ||||||||||||
| Data processing | 205 | 224 | 394 | 444 | ||||||||||||
| Professional service fees | 161 | 144 | 334 | 297 | ||||||||||||
| Loan and deposit | 2,239 | 512 | 2,856 | 773 | ||||||||||||
| Telephone | 45 | 46 | 92 | 89 | ||||||||||||
| Advertising | 72 | 80 | 144 | 158 | ||||||||||||
| Other | 285 | 326 | 557 | 646 | ||||||||||||
| Total other expenses | 5,330 | 3,470 | 8,959 | 6,709 | ||||||||||||
| Income (Loss) before provision for income taxes | (3,514 | ) | 870 | (3,214 | ) | 967 | ||||||||||
| Provision for (benefit of) income taxes | (1,212 | ) | 271 | (4,623 | ) | 278 | ||||||||||
NET INCOME (LOSS) | (2,302 | ) | 599 | 1,409 | 689 | |||||||||||
Preferred dividend expense | 186 | 138 | 371 | 138 | ||||||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ | (2,488 | ) | $ | 461 | $ | 1,038 | $ | 551 | |||||||
INCOME (LOSS) PER COMMON SHARE: | ||||||||||||||||
| Basic | $ | (0.73 | ) | $ | .13 | $ | .30 | $ | .16 | |||||||
| Diluted | $ | (0.73 | ) | $ | .13 | $ | .30 | $ | .16 | |||||||
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MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
LOAN PORTFOLIO AND CREDIT QUALITY
LOAN PORTFOLIO AND CREDIT QUALITY
(Dollars in thousands)
Loan Portfolio Balances (at end of period):
| June 30, | December 31, | June 30, | ||||||||||
| 2010 | 2009 | 2009 | ||||||||||
Commercial Loans | ||||||||||||
| Real estate — operators of nonresidential buildings | $ | 50,000 | $ | 48,689 | $ | 44,087 | ||||||
| Hospitality and tourism | 43,883 | 45,315 | 35,033 | |||||||||
| Commercial construction | 27,219 | 24,591 | 26,125 | |||||||||
| Real estate agents and managers | 20,727 | 24,242 | 24,614 | |||||||||
| Other | 160,399 | 162,833 | 166,533 | |||||||||
| Total Commercial Loans | 302,228 | 305,670 | 296,392 | |||||||||
| 1-4 family residential real estate and construction | 78,428 | 74,350 | 71,777 | |||||||||
| Consumer | 4,183 | 4,290 | 3,835 | |||||||||
| Total Loans | $ | 384,839 | $ | 384,310 | $ | 372,004 | ||||||
Credit Quality (at end of period):
| June 30, | December 31, | June 30, | ||||||||||
| 2010 | 2009 | 2009 | ||||||||||
Nonperforming Assets : | ||||||||||||
| Nonaccrual loans | $ | 10,174 | $ | 14,368 | $ | 9,283 | ||||||
| Loans past due 90 days or more | — | — | — | |||||||||
| Restructured loans | 869 | 869 | 592 | |||||||||
| Total nonperforming loans | 11,043 | 15,237 | 9,875 | |||||||||
| Other real estate owned | 5,676 | 5,804 | 4,950 | |||||||||
| Total nonperforming assets | $ | 16,719 | $ | 21,041 | $ | 14,825 | ||||||
| Nonperforming loans as a % of loans | 2.87 | % | 3.96 | % | 2.65 | % | ||||||
| Nonperforming assets as a % of assets | 3.34 | % | 4.08 | % | 2.93 | % | ||||||
Reserve for Loan Losses: | ||||||||||||
| At period end | $ | 6,371 | $ | 5,225 | $ | 4,119 | ||||||
| As a % of average loans | 1.66 | % | 1.39 | % | 1.11 | % | ||||||
| As a % of nonperforming loans | 57.69 | % | 34.29 | % | 41.71 | % | ||||||
| As a % of nonaccrual loans | 62.62 | % | 36.37 | % | 44.37 | % | ||||||
Charge-off Information (year to date): | ||||||||||||
| Average loans | 383,398 | 374,796 | 371,278 | |||||||||
| Net charge-offs | 2,554 | 2,752 | 858 | |||||||||
| Charge-offs as a % of average loans | .67 | % | .73 | % | .23 | % | ||||||
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MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
QUARTERLY FINANCIAL HIGHLIGHTS
| QUARTER ENDED | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2010 | 2010 | 2009 | 2009 | 2009 | ||||||||||||||||
BALANCE SHEET(Dollars in thousands) | ||||||||||||||||||||
| Total loans | $ | 384,839 | $ | 377,311 | $ | 384,310 | $ | 384,100 | $ | 372,004 | ||||||||||
| Allowance for loan losses | (6,371 | ) | (4,737 | ) | (5,225 | ) | (4,081 | ) | (4,119 | ) | ||||||||||
| Total loans, net | 378,468 | 372,574 | 379,085 | 380,019 | 367,885 | |||||||||||||||
| Intangible assets | — | — | — | — | 6 | |||||||||||||||
| Total assets | 500,774 | 502,427 | 515,377 | 513,180 | 506,304 | |||||||||||||||
| Core deposits | 271,026 | 236,227 | 209,828 | 200,541 | 202,892 | |||||||||||||||
Noncore deposits(1) | 134,758 | 168,985 | 211,561 | 218,040 | 210,260 | |||||||||||||||
| Total deposits | 405,784 | 405,212 | 421,389 | 418,581 | 413,152 | |||||||||||||||
| Total borrowings | 36,140 | 36,140 | 36,140 | 36,140 | 36,210 | |||||||||||||||
| Total shareholders’ equity | 56,231 | 58,722 | 55,299 | 55,766 | 53,939 | |||||||||||||||
| Total shares outstanding | 3,419,736 | 3,419,736 | 3,419,736 | 3,419,736 | 3,419,736 | |||||||||||||||
| �� | ||||||||||||||||||||
AVERAGE BALANCES(Dollars in thousands) | ||||||||||||||||||||
| Assets | $ | 502,942 | $ | 508,495 | $ | 514,102 | $ | 513,687 | $ | 491,205 | ||||||||||
| Loans | 382,169 | 384,640 | 386,203 | 370,310 | 371,609 | |||||||||||||||
| Deposits | 405,449 | 413,897 | 418,280 | 419,102 | 401,510 | |||||||||||||||
| Equity | 57,889 | 55,109 | 55,665 | 54,594 | 49,855 | |||||||||||||||
INCOME STATEMENT(Dollars in thousands) | ||||||||||||||||||||
| Net interest income | $ | 4,023 | $ | 4,022 | $ | 4,431 | $ | 4,310 | $ | 4,051 | ||||||||||
| Provision for loan losses | 2,800 | 900 | 2,300 | 700 | 150 | |||||||||||||||
| Net interest income after provision | 1,223 | 3,122 | 2,131 | 3,610 | 3,901 | |||||||||||||||
| Total noninterest income | 593 | 807 | 1,503 | 2,418 | 439 | |||||||||||||||
| Total noninterest expense | 5,330 | 3,629 | 3,650 | 3,443 | 3,470 | |||||||||||||||
| Income (Loss) before taxes | (3,514 | ) | 300 | (16 | ) | 2,585 | 870 | |||||||||||||
| Provision for (benefit of) income taxes | (1,212 | ) | (3,411 | ) | (22 | ) | 864 | 271 | ||||||||||||
| Preferred dividend expense | 186 | 185 | 186 | 185 | 138 | |||||||||||||||
| Net income (loss) available to common shareholders | $ | (2,488 | ) | $ | 3,526 | $ | (180 | ) | $ | 1,536 | $ | 461 | ||||||||
PER SHARE DATA | ||||||||||||||||||||
| Earnings (Losses) - basic | $ | (.73 | ) | $ | 1.03 | $ | (.05 | ) | $ | .45 | $ | .13 | ||||||||
| Earnings (Losses)- diluted | (.73 | ) | 1.03 | (.05 | ) | .45 | .13 | |||||||||||||
| Book value per common share | 13.34 | 14.08 | 13.10 | 13.25 | 12.55 | |||||||||||||||
| Market value, closing price | 6.50 | 4.72 | 4.64 | 4.10 | 4.50 | |||||||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
| Nonperforming loans/total loans | 2.87 | % 2.62 | % | 3.96 | % | 3.00 | % | 2.65 | % | |||||||||||
| Nonperforming assets/total assets | 3.34 | 3.51 | 4.08 | 3.38 | 2.93 | |||||||||||||||
| Allowance for loan losses/total loans | 1.66 | 1.26 | 1.36 | 1.06 | 1.11 | |||||||||||||||
| Allowance for loan losses/nonperforming loans | 57.69 | 47.87 | 34.29 | 35.40 | 41.71 | |||||||||||||||
Texas Ratio(2) | 26.71 | 27.76 | 34.77 | 28.99 | 25.54 | |||||||||||||||
PROFITABILITY RATIOS | ||||||||||||||||||||
| Return on average assets | (1.98 | ) | % 2.81 | % | (.14 | )% | 1.19 | % | .38 | % | ||||||||||
| Return on average equity | (17.24 | ) | 25.95 | (1.28 | ) | 11.16 | 3.71 | |||||||||||||
| Net interest margin | 3.56 | 3.51 | 3.74 | 3.66 | 3.58 | |||||||||||||||
| Efficiency ratio | 76.04 | 78.12 | 71.03 | 70.09 | 76.55 | |||||||||||||||
| Average loans/average deposits | 94.26 | 92.93 | 92.33 | 88.36 | 92.55 | |||||||||||||||
CAPITAL ADEQUACY RATIOS | ||||||||||||||||||||
| Tier 1 leverage ratio | 9.38 | % 9.85 | % | 9.75 | % | 9.74 | % | 9.65 | % | |||||||||||
| Tier 1 capital to risk weighted assets | 11.65 | 12.48 | 11.92 | 12.18 | 11.94 | |||||||||||||||
| Total capital to risk weighted assets | 12.91 | 13.69 | 13.17 | 13.19 | 13.00 | |||||||||||||||
| Average equity/average assets | 11.51 | 10.84 | 10.83 | 10.63 | 10.15 | |||||||||||||||
| Tangible equity/tangible assets | 11.51 | 10.84 | 10.83 | 10.87 | 10.65 | |||||||||||||||
| (1) | Noncore deposits includes Internet CDs, brokered deposits and CDs greater than $100,000 | |
| (2) | Texas Ratio: Nonperforming Assets divided by Total Equity plus Allowance for Loan Losees |
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MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
QUARTERLY FINANCIAL HIGHLIGHTS
LOAN PORTFOLIO BALANCES | TRANSACTIONALACCOUNT DEPOSITS | |
 |  | |
| NET INTEREST MARGIN | EFFICIENCY RATIO | |
 |  | |
COMMON SHARE DATA
BOOK VERSUS MARKET VALUE
BOOK VERSUS MARKET VALUE
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