Contact Information: Contact: Investor Relations (888) 343-8147 Website: www.bankmbank.com
mBank Agrees to Sell Its Ripley Branch
| Source: Mackinac Financial Corporation
MANISTIQUE, MI--(Marketwire - August 1, 2007) - On July 27, 2007, mBank, an FDIC-insured
bank wholly owned by Mackinac Financial Corporation (NASDAQ : MFNC ), entered
into a definitive Purchase and Assumption Agreement with The Miners State
Bank of Iron River, Michigan, for the sale of mBank's branch in Ripley.
The Asset Purchase and Assumption Agreement calls for Miners State Bank of
Iron River, Michigan to purchase the branch building and assume
approximately $10,800,000 of deposits associated with mBank's branch in
Ripley. mBank will retain the loans associated with the branch. The
transaction is subject to regulatory approval and is expected to close in
the fourth quarter of 2007.
Kelly W. George, President and CEO of mBank, said, "We entered into this
transaction after much deliberation. We are exiting this market because of
our concern for the long-term growth prospects, staffing considerations,
and the relatively high costs associated with raising deposits in this
branch. We are reviewing other potential opportunities to deploy assets
into more of the commercial hub communities within the Upper Peninsula,
which better fits our overall strategic direction. The economics of the
deal made sense from both companies' perspectives and provided an adequate
overall price on this facility for the shareholders of MFNC."
Paul D. Tobias, Chairman of MFNC, commented, "The sale of the Ripley branch
office is in line with our overall strategic plan, which focuses on market
potential for core deposit and loan growth in order to maximize shareholder
value. We continuously evaluate all of our markets and the performance of
branch offices in order to determine if we are efficiently allocating our
capital resources."
Mackinac Financial Corporation is a registered bank holding company which
owns mBank. The Bank has 13 offices: nine 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 checking and savings accounts, time deposits,
interest bearing transaction accounts, safe deposit facilities, real estate
mortgage lending, and direct and indirect consumer financing.