Exhibit 99
PRESS RELEASE
| For Release: | May 4, 2011 | |
| Nasdaq: | MFNC | |
| Contact: | Investor Relations at (888) 343-8147 | |
| Website: | www.bankmbank.com |
MACKINAC FINANCIAL CORPORATION
REPORTS FIRST QUARTER 2011 RESULTS
REPORTS FIRST QUARTER 2011 RESULTS
(Manistique, Michigan) — Mackinac Financial Corporation (Nasdaq: MFNC), the bank holding company for mBank (the “Bank”) today announced first quarter 2011 income of $.256 million or $.07 per share compared to net income of $3.526 million, or $1.03 per share for the first quarter of 2010. Operating results for the first quarter of 2010 included the recognition of a $3.500 million deferred tax benefit related to NOL carry-forwards. The Corporation’s primary asset, mBank, recorded net income of $.529 million
Some highlights for the quarter included:
| • | Nonperforming assets at the end of the first quarter of 2011 totaled $15.045 million, a reduction of $1.080 million from 2010 year end balances. |
| • | In the first quarter of 2011, the corporation did not record a provision for loan losses as compared to the $.900 million provision recorded in the first quarter of 2010. |
| • | ORE write-downs/gains and losses of $.467 million |
| • | Core deposit growth of $25.024 million primarily in transactional accounts, accounting for $17.743 million of this growth. |
| • | A stable and improving net interest margin of 3.92% for the quarter. |
| • | SBA/USDA loan sale premium income of $.236 million with a solid pipeline of new loans for sale entering into the second quarter which should enable the company to exceed first quarter totals. We still see premium pricing in the 108% to 110% range on these transactions. |
Margin Analysis
Net interest margin in the first quarter of 2011 increased to $4.141 million, 3.92%, compared to $4.022 million, or 3.51%, in the first quarter of 2010. The interest margin increase was largely due to decreased funding costs. Kelly W. George, President and Chief Executive Officer of mBank, stated, “In the first quarter of 2011, we experienced continued margin improvement from decreased rates on deposit funding, increases in low cost transactional accounts, and also our disciplined loan pricing, which can include floor rates with regard to variable rate loans. We expect our margin to improve as we progress through the year with increased funding of new loans and further repayment of maturing brokered deposits.”
Loans and Non-performing Assets
Total loans at March 31, 2011 were $374.609 million, a .72% decrease from the $377.311 million at March 31, 2010 and down $8.477 million from year-end 2010 total loans of $383.086 million. George stated, “Loan growth in the first quarter was impacted by normal principal reduction and pay-downs. The $8.477 million in reductions included $2.384 million in SBA loan sales, and the move of $.800 million of nonperforming loans to OREO, along with a reduction of $1.4 million on another nonperforming loan relationship that was sold. Our first quarter new loan production was satisfactory given the seasonality of our business where the first quarter routinely is the slowest. In the first quarter, we had $16.8 million of production occurring in all regions, including $4.9 million in secondary market mortgage production. Our strongest region was the Upper Peninsula with $11.4 million total production.
The decrease in nonperforming assets in the first quarter is the result of aggressive remediation of nonperforming assets, problem borrowers and related workout programs. George, commenting on credit quality, stated “We continue to aggressively market our OREO properties and believe our aggressive write-downs reflect current market values, and will result in sales later this year. We remain highly focused on overall asset quality metrics given the still challenging overall Michigan economy but believe that things have begun to stabilize. We are encouraged by our Texas Ratio of 24.96% for the quarter, which is among the lowest of the 15 largest public banks headquartered in Michigan.”
Deposits
Total deposits of $400.783 million at March 31, 2011 were down 1.09% from deposits of $405.212 million on March 31, 2010 due to decreased levels of brokered deposits, which declined from $138.812 million on March 31, 2010, to $63.342 million on March 31, 2011. First quarter 2011 deposits were up $14.004 million from year-end 2010 deposits of $386.779 million. The overall increase in deposits for the first quarter of 2011 is comprised of a decrease in noncore deposits of $11.020 million which was offset with increased core deposits of $25.024 million. George, commenting on the increased core deposits, stated, “In the first quarter of 2011, we continued to grow core deposits at a steady rate. We will remain focused on this as a primary strategic objective to reduce our overall dependency on wholesale funding sources for future margin improvements and decreased regulatory costs.”
Noninterest Income/Expense
Noninterest income, at $.577 million in the first quarter of 2011, decreased $.230 million from the first quarter 2010 level of $.807 million. Noninterest income in the first quarter of 2010 includes $.215 million of security gains which the Corporation does not consider recurring or core earnings provider. The other most significant decrease for the 2011 first quarter was fees on deposit accounts, due mostly to lower overdraft fees in 2011, a trend that appears to be industry wide given heightened regulatory scrutiny, pending regulations and customers being more aware and diligent in managing their accounts.
Noninterest expense totaled $4.059 million in the first quarter of 2011, an increase of $.430 million, or 11.85% from the first quarter of 2010. Increased expenses in the first quarter continue to reflect the added cost of aggressive nonperforming asset remediation, along with an increase in FDIC insurance premiums of $.063 million. The expenses related to nonperforming assets were primarily write-downs and gains/losses on OREO of $.467 million. The Corporation continues to look for ways to control costs and remains below peer level in terms of salary and benefits and total operating expenses as a percentage of total assets.
Assets and Capital
Total assets of the Corporation at March 31, 2011 were $492.790 million, down 1.92% from the $502.427 million reported at March 31, 2010. First quarter 2011 total assets were up 2.94% from the $478.696 million of total assets at year-end 2010. Common Shareholders’ equity at March 31, 2011 totaled $43.340 million, or $12.67 per share, compared to $48.160 million, or $14.08 per share on March 31, 2010. The Corporation and the Bank are both “well-capitalized” with Tier 1 Capital at the Corporation of 9.70% and 8.54% at the Bank.
Paul D. Tobias, Chairman and Chief Executive Officer, concluded, “We believe that 2011 will be the year where MFNC begins to demonstrate the earning capability of the franchise as the credit environment and our credit metrics improve. In the 2011 first quarter we experienced good growth in core deposits. We expect good loan growth for the remainder of 2011, which will translate into fee income from sales of SBA/USDA loans, along with good balance sheet growth to enhance our net
interest margin. We have also begun to explore the merits of the Small Business Loan Fund as an inexpensive temporary source of capital and a source of repayment of our TARP funding.”
Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $490 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 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.
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
| For The Period Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
Selected Financial Condition Data (at end of period): | ||||||||||||
| Assets | $ | 492,790 | $ | 478,696 | $ | 502,427 | ||||||
| Loans | 374,609 | 383,086 | 377,311 | |||||||||
| Investment securities | 37,543 | 33,860 | 36,841 | |||||||||
| Deposits | 400,783 | 386,779 | 405,212 | |||||||||
| Borrowings | 36,069 | 36,069 | 36,140 | |||||||||
| Common shareholders’ equity | 43,340 | 43,176 | 48,160 | |||||||||
| Total shareholders’ equity | 54,097 | 53,882 | 58,722 | |||||||||
Selected Statements of Income Data: | ||||||||||||
| Net interest income | $ | 4,141 | $ | 16,385 | $ | 4,022 | ||||||
| Income (Loss) before taxes and preferred dividend | 659 | (3,918 | ) | 300 | ||||||||
| Net income (Loss) | 256 | (1,160 | ) | 3,526 | ||||||||
| Income (Loss) per common share — Basic | .07 | (0.34 | ) | 1.03 | ||||||||
| Income (Loss) per common share — Diluted | .07 | (0.34 | ) | 1.03 | ||||||||
| Weighted average shares outstanding | 3,419,736 | 3,419,736 | 3,419,736 | |||||||||
Selected Financial Ratios and Other Data: | ||||||||||||
Performance Ratios: | ||||||||||||
| Net interest margin | 3.92 | % | 3.66 | % | 3.51 | % | ||||||
| Efficiency ratio | 75.73 | 72.57 | 78.12 | |||||||||
| Return on average assets | .22 | (0.23 | ) | 2.81 | ||||||||
| Return on average common equity | 2.40 | (2.54 | ) | 32.08 | ||||||||
| Return on average total equity | 1.92 | (2.06 | ) | 25.95 | ||||||||
| Average total assets | $ | 478,861 | $ | 502,993 | $ | 508,495 | ||||||
| Average common shareholders’ equity | 43,147 | 45,568 | 44,577 | |||||||||
| Average total shareholders’ equity | 53,870 | 56,171 | 55,109 | |||||||||
| Average loans to average deposits ratio | 98.27 | % | 94.36 | % | 92.93 | % | ||||||
Common Share Data (at end of period): | ||||||||||||
| Market price per common share | $ | 6.02 | $ | 4.58 | $ | 4.72 | ||||||
| Book value per common share | $ | 12.67 | $ | 12.63 | $ | 14.08 | ||||||
| Common shares outstanding | 3,419,736 | 3,419,736 | 3,419,736 | |||||||||
Other Data (at end of period): | ||||||||||||
| Allowance for loan losses | $ | 6,184 | $ | 6,613 | $ | 4,737 | ||||||
| Non-performing assets | $ | 15,045 | $ | 16,125 | $ | 17,619 | ||||||
| Allowance for loan losses to total loans | 1.65 | % | 1.73 | % | 1.26 | % | ||||||
| Non-performing assets to total assets | 3.05 | % | 3.37 | % | 3.51 | % | ||||||
| Texas Ratio | 24.96 | % | 26.66 | % | 27.75 | % | ||||||
| Number of: | ||||||||||||
| Branch locations | 11 | 11 | 10 | |||||||||
| FTE Employees | 108 | 110 | 103 | |||||||||
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | March 31, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
| (Dollars in thousands) | (Unaudited) | (Unaudited) | ||||||||||
ASSETS | ||||||||||||
| Cash and due from banks | $ | 41,715 | $ | 22,719 | $ | 19,359 | ||||||
| Federal funds sold | 12,000 | 12,000 | 36,000 | |||||||||
| Cash and cash equivalents | 53,715 | 34,719 | 55,359 | |||||||||
| Interest-bearing deposits in other financial institutions | 734 | 713 | 700 | |||||||||
| Securities available for sale | 37,543 | 33,860 | 36,841 | |||||||||
| Federal Home Loan Bank stock | 3,423 | 3,423 | 3,794 | |||||||||
| Loans: | ||||||||||||
| Commercial | 287,760 | 297,047 | 296,271 | |||||||||
| Mortgage | 81,404 | 80,756 | 76,996 | |||||||||
| Installment | 5,445 | 5,283 | 4,044 | |||||||||
| Total Loans | 374,609 | 383,086 | 377,311 | |||||||||
| Allowance for loan losses | (6,184 | ) | (6,613 | ) | (4,737 | ) | ||||||
| Net loans | 368,425 | 376,473 | 372,574 | |||||||||
| Premises and equipment | 9,715 | 9,660 | 10,060 | |||||||||
| Other real estate held for sale | 5,081 | 5,562 | 7,723 | |||||||||
| Other assets | 14,154 | 14,286 | 15,376 | |||||||||
TOTAL ASSETS | $ | 492,790 | $ | 478,696 | $ | 502,427 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| LIABILITIES: | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest bearing deposits | $ | 39,269 | $ | 41,264 | $ | 30,356 | ||||||
| NOW, money market, checking | 154,420 | 134,703 | 109,374 | |||||||||
| Savings | 17,691 | 17,670 | 20,675 | |||||||||
| CDs< $100,000 | 104,258 | 96,977 | 75,822 | |||||||||
| CDs> $100,000 | 21,803 | 22,698 | 30,173 | |||||||||
| Brokered | 63,342 | 73,467 | 138,812 | |||||||||
| Total deposits | 400,783 | 386,779 | 405,212 | |||||||||
| Borrowings: | ||||||||||||
| Federal Home Loan Bank | 35,000 | 35,000 | 35,000 | |||||||||
| Other | 1,069 | 1,069 | 1,140 | |||||||||
| Total borrowings | 36,069 | 36,069 | 36,140 | |||||||||
| Other liabilities | 1,841 | 1,966 | 2,353 | |||||||||
| Total liabilities | 438,693 | 424,814 | 443,705 | |||||||||
| Shareholders’ equity: | ||||||||||||
| Preferred stock — No par value: | ||||||||||||
| Authorized 500,000 shares, 11,000 shares issued and outstanding | 10,757 | 10,706 | 10,562 | |||||||||
| Common stock and additional paid in capital — No par value | ||||||||||||
| Authorized — 18,000,000 shares | ||||||||||||
Issued and outstanding —3,419,736 shares | 43,525 | 43,525 | 43,502 | |||||||||
| Accumulated earnings (deficit) | (705 | ) | (961 | ) | 3,724 | |||||||
| Accumulated other comprehensive income | 520 | 612 | 934 | |||||||||
| Total shareholders’ equity | 54,097 | 53,882 | 58,722 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 492,790 | $ | 478,696 | $ | 502,427 | ||||||
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
| (Dollars in thousands except per share data) | (Unaudited) | (Unaudited) | ||||||
INTEREST INCOME: | ||||||||
| Interest and fees on loans: | ||||||||
| Taxable | $ | 5,136 | $ | 5,191 | ||||
| Tax-exempt | 42 | 52 | ||||||
| Interest on securities: | ||||||||
| Taxable | 282 | 397 | ||||||
| Tax-exempt | 7 | 7 | ||||||
| Other interest income | 33 | 40 | ||||||
| Total interest income | 5,500 | 5,687 | ||||||
INTEREST EXPENSE: | ||||||||
| Deposits | 1,219 | 1,457 | ||||||
| Borrowings | 140 | 208 | ||||||
| Total interest expense | 1,359 | 1,665 | ||||||
| Net interest income | 4,141 | 4,022 | ||||||
| Provision for loan losses | — | 900 | ||||||
| Net interest income after provision for loan losses | 4,141 | 3,122 | ||||||
OTHER INCOME: | ||||||||
| Service fees | 217 | 223 | ||||||
| Net security gains | — | 215 | ||||||
| Income from loans sold | 314 | 316 | ||||||
| Other | 46 | 53 | ||||||
| Total other income | 577 | 807 | ||||||
OTHER EXPENSE: | ||||||||
| Salaries and employee benefits | 1,824 | 1,720 | ||||||
| Occupancy | 365 | 345 | ||||||
| Furniture and equipment | 194 | 194 | ||||||
| Data processing | 176 | 189 | ||||||
| Professional service fees | 153 | 173 | ||||||
| Loan and deposit | 179 | 268 | ||||||
| ORE writedowns and (gains) losses on sale | 467 | 147 | ||||||
| FDIC insurance assessment | 285 | 222 | ||||||
| Telephone | 51 | 47 | ||||||
| Advertising | 88 | 72 | ||||||
| Other | 277 | 252 | ||||||
| Total other expense | 4,059 | 3,629 | ||||||
| Income before provision for income taxes | 659 | 300 | ||||||
| Provision for (benefit of) income taxes | 214 | (3,411 | ) | |||||
NET INCOME | $ | 445 | $ | 3,711 | ||||
Preferred dividend and accretion of discount | 189 | 185 | ||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 256 | $ | 3,526 | ||||
INCOME PER COMMON SHARE: | ||||||||
| Basic | $ | .07 | $ | 1.03 | ||||
| Diluted | $ | .07 | $ | 1.03 | ||||
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):
| March 31, | December 31, | March 31, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
Commercial Loans | ||||||||||||
| Real estate — operators of nonresidential buildings | $ | 58,132 | $ | 58,114 | $ | 49,753 | ||||||
| Hospitality and tourism | 35,016 | 37,737 | 44,820 | |||||||||
| Operators of nonresidential buildings | 17,091 | 16,598 | 13,170 | |||||||||
| Real estate — operators of nonresidential buildings | 15,518 | 15,857 | 21,529 | |||||||||
| Other | 138,565 | 135,411 | 138,964 | |||||||||
| Total Commercial Loans | 264,322 | 263,717 | 268,236 | |||||||||
| 1-4 family residential real estate | 75,663 | 75,074 | 70,087 | |||||||||
| Consumer | 5,445 | 5,283 | 4,044 | |||||||||
| Construction | ||||||||||||
| Commercial | 23,438 | 33,330 | 28,035 | |||||||||
| Consumer | 5,741 | 5,682 | 6,909 | |||||||||
| Total Loans | $ | 374,609 | $ | 383,086 | $ | 377,311 | ||||||
Credit Quality (at end of period):
| March 31, | December 31, | March 31, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
Nonperforming Assets : | ||||||||||||
| Nonaccrual loans | $ | 9,859 | $ | 5,921 | $ | 9,027 | ||||||
| Loans past due 90 days or more | — | — | — | |||||||||
| Restructured loans | 105 | 4,642 | 869 | |||||||||
| Total nonperforming loans | 9,964 | 10,563 | 9,896 | |||||||||
| Other real estate owned | 5,081 | 5,562 | 7,723 | |||||||||
| Total nonperforming assets | $ | 15,045 | $ | 16,125 | $ | 17,619 | ||||||
| Nonperforming loans as a % of loans | 2.66 | % | 2.76 | % | 2.62 | % | ||||||
| Nonperforming assets as a % of assets | 3.05 | % | 3.37 | % | 3.51 | % | ||||||
Reserve for Loan Losses: | ||||||||||||
| At period end | $ | 6,184 | $ | 6,613 | $ | 4,737 | ||||||
| As a % of loans | 1.65 | % | 1.73 | % | 1.26 | % | ||||||
| As a % of nonperforming loans | 62.06 | % | 62.61 | % | 47.87 | % | ||||||
| As a % of nonaccrual loans | 62.72 | % | 111.69 | % | 52.48 | % | ||||||
| Texas ratio | 24.96 | % | 26.66 | % | 27.75 | % | ||||||
Charge-off Information (year to date): | ||||||||||||
| Average loans | $ | 380,066 | $ | 384,347 | $ | 84,640 | ||||||
| Net charge-offs | 429 | 5,112 | 1,389 | |||||||||
| Charge-offs as a % of average loans | .11 | % | 1.33 | % | .36 | % | ||||||
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
QUARTERLY FINANCIAL HIGHLIGHTS
| QUARTER ENDED | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
BALANCE SHEET(Dollars in thousands) | ||||||||||||||||||||
| Total loans | $ | 374,609 | $ | 383,086 | $ | 382,727 | $ | 384,839 | $ | 377,311 | ||||||||||
| Allowance for loan losses | (6,184 | ) | (6,613 | ) | (5,437 | ) | (6,371 | ) | (4,737 | ) | ||||||||||
| Total loans, net | 368,425 | 376,473 | 377,290 | 378,468 | 372,574 | |||||||||||||||
| Intangible assets | — | — | — | — | — | |||||||||||||||
| Total assets | 492,790 | 478,696 | 499,006 | 500,774 | 502,427 | |||||||||||||||
| Core deposits | 315,638 | 290,614 | 287,055 | 271,026 | 236,227 | |||||||||||||||
Noncore deposits(1) | 85,145 | 96,165 | 117,469 | 134,758 | 168,985 | |||||||||||||||
| Total deposits | 400,783 | 386,779 | 404,524 | 405,784 | 405,212 | |||||||||||||||
| Total borrowings | 36,069 | 36,069 | 36,069 | 36,140 | 36,140 | |||||||||||||||
| Common shareholders’ equity | 43,340 | 43,176 | 45,329 | 45,621 | 48,160 | |||||||||||||||
| Total shareholders’ equity | 54,097 | 53,882 | 55,987 | 56,231 | 58,722 | |||||||||||||||
| Total shares outstanding | 3,419,736 | 3,419,736 | 3,419,736 | 3,419,736 | 3,419,736 | |||||||||||||||
AVERAGE BALANCES(Dollars in thousands) | ||||||||||||||||||||
| Assets | $ | 478,861 | $ | 488,320 | $ | 512,335 | $ | 502,942 | $ | 508,495 | ||||||||||
| Loans | 380,066 | 385,296 | 385,268 | 382,169 | 384,640 | |||||||||||||||
| Deposits | 386,743 | 393,266 | 416,847 | 405,449 | 413,897 | |||||||||||||||
| Common equity | 43,147 | 44,339 | 46,041 | 47,542 | 44,577 | |||||||||||||||
| Equity | 53,870 | 55,015 | 56,668 | 57,889 | 55,109 | |||||||||||||||
INCOME STATEMENT(Dollars in thousands) | ||||||||||||||||||||
| Net interest income | $ | 4,141 | $ | 4,276 | $ | 4,064 | $ | 4,023 | $ | 4,022 | ||||||||||
| Provision for loan losses | — | 1,800 | 1,000 | 2,800 | 900 | |||||||||||||||
| Net interest income after provision | 4,141 | 2,476 | 3,064 | 1,223 | 3,122 | |||||||||||||||
| Total other income | 577 | 747 | 648 | 593 | 807 | |||||||||||||||
| Total other expense | 4,059 | 4,037 | 3,601 | 5,330 | 3,629 | |||||||||||||||
| Income before taxes | 659 | (814 | ) | 111 | (3,514 | ) | 300 | |||||||||||||
| Provision for (benefit of) income taxes | 214 | 1,093 | 30 | (1,212 | ) | (3,411 | ) | |||||||||||||
| Net income | 445 | (1,907 | ) | 81 | (2,302 | ) | 3,711 | |||||||||||||
| Preferred dividend expense | 189 | 185 | 185 | 186 | 185 | |||||||||||||||
| Net income (loss) available to common shareholders | $ | 256 | $ | (2,092 | ) | $ | (104 | ) | $ | (2,488 | ) | $ | 3,526 | |||||||
PER SHARE DATA | ||||||||||||||||||||
| Earnings | $ | .07 | $ | (.61 | ) | $ | (.03 | ) | $ | (.73 | ) | $ | 1.03 | |||||||
| Book value per common share | 12.67 | 12.63 | 13.26 | 13.34 | 14.08 | |||||||||||||||
| Market value, closing price | 6.02 | 4.58 | 5.10 | 6.50 | 4.72 | |||||||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
| Nonperforming loans/total loans | 2.66 | % | 2.76 | % | 2.94 | % | 2.87 | % | 2.62 | % | ||||||||||
| Nonperforming assets/total assets | 3.05 | 3.37 | 3.41 | 3.34 | 3.51 | |||||||||||||||
| Allowance for loan losses/total loans | 1.65 | 1.73 | 1.42 | 1.66 | 1.26 | |||||||||||||||
| Allowance for loan losses/nonperforming loans | 62.06 | 62.61 | 48.34 | 57.69 | 47.87 | |||||||||||||||
Texas ratio(2) | 24.96 | 26.66 | 27.68 | 26.71 | 27.76 | |||||||||||||||
PROFITABILITY RATIOS | ||||||||||||||||||||
| Return on average assets | .22 | % | (1.70 | )% | (.08 | )% | (1.98 | )% | 2.81 | % | ||||||||||
| Return on average common equity | 2.40 | (18.72 | ) | (.90 | ) | (20.99 | ) | 32.08 | ||||||||||||
| Return on average equity | 1.92 | (15.09 | ) | (.73 | ) | (17.24 | ) | 25.95 | ||||||||||||
| Net interest margin | 3.92 | 3.88 | 3.69 | 3.56 | 3.51 | |||||||||||||||
| Efficiency ratio | 75.73 | 65.05 | 75.98 | 76.04 | 78.12 | |||||||||||||||
| Average loans/average deposits | 98.27 | 97.97 | 92.42 | 94.26 | 92.93 | |||||||||||||||
CAPITAL ADEQUACY RATIOS | ||||||||||||||||||||
| Tier 1 leverage ratio | 9.70 | % | 9.25 | % | 9.22 | % | 9.38 | % | 9.85 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 11.61 | 11.36 | 11.73 | 11.65 | 12.48 | |||||||||||||||
| Total capital to risk weighted assets | 12.86 | 12.62 | 12.98 | 12.91 | 13.69 | |||||||||||||||
| Average equity/average assets | 11.25 | 11.27 | 11.06 | 11.51 | 10.84 | |||||||||||||||
| Tangible equity/tangible assets | 11.25 | 11.27 | 11.06 | 11.51 | 10.84 | |||||||||||||||
| (1) | Noncore deposits includes Internet CDs, brokered deposits 100,000 and CDs greater than $100,000 |
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
QUARTERLY FINANCIAL HIGHLIGHTS
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