Mackinac Financial (MFNC) 8-K Regulation FD Disclosure

Exhibit 99.1

MACKINAC FINANCIAL CORPORATION

NONPERFORMING ASSETS AS OF DECEMBER 31, 2007

The attached schedule provides added disclosure relative to the nonperforming assets of Mackinac Financial Corporation as of December 31, 2007.

This schedule shows the detail of nonperforming assets categorized by type of loan/collateral. The nonperforming assets are also categorized by origination date defined as “Pre-Recap” or “Post-Recap.” The “Pre-Recap” time period refers to loan originations prior to the recapitalization of Mackinac Financial Corporation, which occurred in December 2004. The “Post-Recap” is defined as loans originated by the new management team subsequent to the recapitalization.

The schedule also shows the relative geographical regions of the nonperforming assets, all of which pertain to the State of Michigan.

MACKINAC FINANCIAL CORPORATION
NONPERFORMING ASSET ANALYSIS(dollars in thousands)
AT DECEMBER 31, 2007

			WHEN		APPRAISED		ESTIMATED		(DEFICIENCY)			SBA		RESERVE		PERSONAL	ESTIMATED
COLLATERAL TYPE	BALANCE		ORIGINATED	STATUS	VALUE		LIQUIDATION VALUE		SURPLUS			GUARANTEE		ALLOCATION		GUARANTEE	NET EXPOSURE
NONPERFORMING ASSETS
NONACCRUAL LOANS
Motel / Hotel	$	1,698	Pre-recap	Nonaccr/Litigation	$	1,000	$	623	$	(1,075	)	$	435	$	730	N/A	$	90
1-4 Family		281	Pre-recap	Nonaccrual		366		276		(5	)		0		11	N/A		6
1-4 Family		64	Pre-recap	Nonaccr/Litigation		163		56		(8	)		0		0	N/A		(8	)
Land		37	Pre-recap	Nonaccrual		130		88		51			0		0	N/A		51
Land Development / Condo		1,042	Post-recap	Nonaccr/Litigation		1,600		1,040		(2	)		0		400	YES		398
1-4 Family		176	Post-recap	Nonaccr/Bankrupcy		222		100		(76	)		0		78	YES		2
SUBTOTAL NONACCRUAL LOANS		3,298				3,481		2,183		(1,115	)		435		1,219			539
>90 DAYS PAST DUE LOANS
Cabins / Land		619	Pre-recap	Active / Litigation		1,089		637		18			0		100	YES		118
1-4 Family		90	Pre-recap	Active		106		85		(5	)		0		1	N/A		(4	)
Business — Liquor License		1	Pre-recap	Active / Litigation		47		6		5			0		0	YES		5
SUBTOTAL > 90 DAYS PAST DUE LOANS		710				1,242		728		18			0		101			119
OTHER REAL ESTATE OWNED
Cabins / Land		291	Pre-recap	OREO		325		234		(57	)		0		60	N/A		3
Downtown Store Frontage		63	Pre-recap	Nonaccrual; Redemption		40		32		(31	)		0		25	N/A		(6	)
1-4 Family		20	Pre-recap	Nonaccrual; Redemption		13		10		(10	)		0		10	N/A		0
Land Development		511	Post-recap	OREO		682		546		35			0		0	N/A		35
Equipment Storage Building		264	Post-recap	Nonaccrual; Redemption		310		209		(55	)		0		90	N/A		35
Downtown Store Frontage / 2 / 1-4 Family		77	Post-recap	OREO		96		77		0			0		0	N/A		0
SUBTOTAL OTHER REAL ESTATE OWNED		1,226				1,466		1,108		(118	)		0		185			67
SUBTOTAL“ PRE-RECAP” NONPERFORMING ASSETS		3,164				3,279		2,047		(1,117	)		435		937			255
SUBTOTAL “POST-RECAP” NONPERFORMING ASSETS		2,070				2,910		1,972		(98	)		0		568			470
TOTAL NONPERFORMING ASSETS	$	5,234			$	6,189	$	4,019		($1,215	)	$	435	$	1,505		$	725