Mackinac Financial Corporation
Computation of the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
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| Three Months |
| For the Years Ended December 31, |
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| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
| 2013 |
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Earnings: |
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Net income before taxes |
| $ | 1,945 |
| $ | 11,018 |
| $ | 6,766 |
| $ | 7,929 |
| $ | 2,829 |
| $ | 5,534 |
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Interest expense (total) |
| 1,746 |
| 6,438 |
| 4,885 |
| 4,393 |
| 4,142 |
| 4,124 |
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Preferred dividends |
| — |
| — |
| — |
| — |
| — |
| 308 |
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Amortization of financing costs |
| — |
| — |
| — |
| — |
| — |
| — |
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Total earnings |
| $ | 3,691 |
| $ | 17,456 |
| $ | 11,651 |
| $ | 12,322 |
| $ | 6,971 |
| $ | 9,966 |
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Combined fixed charges: |
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Interest expense (excluding deposits) |
| $ | 510 |
| $ | 2,077 |
| $ | 1,563 |
| $ | 1,142 |
| $ | 924 |
| $ | 656 |
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Preferred dividends |
| — |
| — |
| — |
| — |
| — |
| 308 |
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Amortization of financing costs |
| — |
| — |
| — |
| — |
| — |
| — |
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Combined fixed charges excluding deposit interest |
| 510 |
| 2,077 |
| 1,563 |
| 1,142 |
| 924 |
| 964 |
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Interest expense on deposits |
| 1,236 |
| 4,361 |
| 3,322 |
| 3,251 |
| 3,218 |
| 3,468 |
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Total combined fixed charges |
| $ | 1,746 |
| $ | 6,438 |
| $ | 4,885 |
| $ | 4,393 |
| $ | 4,142 |
| $ | 4,432 |
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Ratios of Earnings to Combined Fixed Charged and Preferred Stock Dividends(1): |
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Excluding interest in deposits |
| 7.24 | X | 8.40 | X | 7.45 | X | 10.79 | X | 7.54 | X | 10.34 |
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Including interest on deposits |
| 2.11 | X | 2.71 | X | 2.39 | X | 2.80 | X | 1.68 | X | 2.25 |
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(1) Earnings have been calculated by adding combined fixed charges to consolidated income before provision for income taxes. The earnings calculation gives effect to fixed charges in each period presented. Combined fixed charges consist of interest expense (including/excluding interest on deposits) and preferred stock dividends. For all periods, we computed the ratios of earnings to combined fixed charges and preferred stock dividends by dividing earnings by combined fixed charges.
