Mackinac Financial to acquire Lincoln Community Bank
MANISTIQUE — The Directors of Mackinac Financial Corporation [Nasdaq: MFNC] (Mackinac), the holding company for mBank, and the Directors of Lincoln Community Bank (Lincoln) announced the execution of a definitive agreement for Mackinac to acquire Lincoln for $8.50 million in cash. Post-transaction assets
of MFNC are estimated to be approximately $1.40 billion and gross balance sheet loans of roughly $1.05 billion.
“We are extremely pleased to be able to partner with another long-standing community-focused institution in the State of Wisconsin for our next transaction,” said Kelly W. George, mBank President and CEO and President of Mackinac. “The increased footprint will allow us to offer an even more expansive banking experience to the Northern Central Wisconsin markets. We will look to expand current client relationships and move forward in developing new customers in a region where the business ecologies are quite similar to our other Wisconsin and Upper Peninsula of Michigan markets. From the entire mBank staff, management, and Board of Directors, we look forward to working with everyone at Lincoln and making a positive corporate impact for all constituencies within your communities. More details of the transaction will be forthcoming in the next few weeks via the mBank website, mailings, and within the branch offices.”
Lincoln Community Bank currently operates two (2) banking centers, one each in Merrill and Gleason, Wis.,. As of March 31, Lincoln had total assets of approximately $65 million, loans of $40 million and deposits of $58 million. Combined with mBank’s current 23 branches in Michigan and six branches in Wisconsin, the acquisition will increase total branches from 29 to 31.
“As with our previous two Wisconsin acquisitions in 2016, this transaction is a good strategic fit for the company” commented Paul D. Tobias, Chairman and CEO of Mackinac and Chairman of mBank. “The branch locations and market cultures complement our current footprint and will move us closer to larger commerce centers in the region. The economics of the deal meet the key metrics we require as a Board and management team as well.”
The transaction is expected to close late in the third quarter of 2018. The transaction remains subject to approval by federal and state regulatory authorities as well as the satisfaction of other customary closing conditions provided in the purchase agreement. The purchase agreement also provides that Lincoln will be consolidated into mBank.
Mackinac was advised by Piper Jaffray and the law firm of Honigman Miller Schwartz and Cohn LLP. Lincoln was advised by Hovde Group, LLC and the law firm of Ballard Spahr, LLP.