Mackinac Financial (MFNC) 8-K/A Financial Statements and Exhibits

Exhibit 99.1

First Federal of Northern Michigan Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheet

(in thousands)

	March 31, 2018			December 31, 2017
	(Unaudited)
ASSETS
Cash and cash equivalents:
Cash on hand and due from banks	$	5,185		$	7,862
Overnight deposits with FHLB	—			527
Total cash and cash equivalents	5,185			8,389
Deposits held in other financial institutions	3,714			3,714
Securities available for sale	95,137			98,839
Securities held to maturity	650			650
Loans held for sale	—			430
Loans receivable, net of allowance for loan losses of $1,733,692 and $1,833,403 as of March 31, 2018 and December 31, 2017, respectively	188,593			191,503
Federal Home Loan Bank stock, at cost	1,636			1,636
Premises and equipment	5,253			5,552
Foreclosed real estate and other repossessed assets	602			652
Accrued interest receivable	1,054			1,033
Intangible assets	593			635
Deferred tax asset	1,842			1,690
Originated mortgage servicing rights	398			418
Bank owned life insurance	5,160			5,125
Other assets	646			981
Total assets	$	310,463		$	321,247
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits	$	261,769		$	270,307
Advances from Federal Home Loan Bank	15,099			16,648
Accrued expenses and other liabilities	1,400			1,350
Total liabilities	278,268			288,305
Stockholders’ equity:
Common stock ($0.01 par value 20,000,000 shares authorized 4,034,675 shares issued)	40			40
Additional paid-in capital	28,264			28,264
Retained earnings	8,822			8,612
Treasury stock at cost (307,750 shares)	(2,964		)	(2,964		)
Accumulated other comprehensive loss	(1,967		)	(1,010		)
Total stockholders’ equity	32,195			32,942
Total liabilities and stockholders’ equity	$	310,463		$	321,247

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First Federal of Northern Michigan Bancorp, Inc. and Subsidiaries

Consolidated Statement of Income and Comprehensive Income

(in thousands)

	For the Three Months
	Ended March 31,
	2018			2017
	(Unaudited)
Interest income:
Interest and fees on loans	$	2,225		$	2,126
Interest and dividends on investments
Taxable	350			393
Tax-exempt	18			23
Interest on mortgage-backed securities	205			255
Total interest income	2,798			2,797
Interest expense:
Interest on deposits	224			245
Interest on borrowings	61			62
Total interest expense	285			307
Net interest income	2,513			2,490
Provision for loan losses	(84		)	87
Net interest income after provision for loan losses	2,597			2,403
Non-interest income:
Service charges and other fees	209			220
Mortgage banking activities	91			100
Net gain (loss) on sale of premises and equipment, real estate owned and other repossessed assets	4			8
Net gain (loss) on sale of investment securities	—			18
Other	280			46
Total non-interest income	584			392
Non-interest expense:
Compensation and employee benefits	1,599			1,396
FDIC Insurance Premiums	31			38
Advertising	32			38
Occupancy	277			296
Amortization of intangible assets	42			48
Service bureau charges	137			129
Professional services	291			106
Collection activity	4			27
Real estate owned  & other repossessed assets	6			36
Other	262			291
Total non-interest expense	2,681			2,405
Income before income tax expense	500			390
Income tax expense	104			—
Net Income	$	396		$	390
Other Comprehensive Income:
Unrealized gain on investment securities - available for sale securities - net of tax	$	(957	)	$	373
Reclassification adjustment for gains realized in earnings - net of tax	—			(12		)
Comprehensive Income	$	(561	)	$	763
Per share data:
Net Income per share
Basic	$	0.11		$	0.10
Weighted average number of shares outstanding
Basic	3,726,925			3,726,925
Dividends paid per common share	$	0.05		$	0.04

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