Announces a 50% Increase in Annual Dividend from $.20 to $.30 per Share.
Manistique, Michigan – Mackinac Financial Corporation (Nasdaq: MFNC), the bank holding company for mBank (the “Bank”), today announced third quarter 2014 income of $.886 million or $.16 per share compared to net income available to common shareholders of $.846 million, or $.15 per share for the third quarter of 2013. Operating results for the first nine months of 2014 totaled $2.352 million or $.43 per share compared to $2.719 million or $.49 per share for the same period in 2013.
The consolidated operating results for 2014 were impacted by costs associated with several strategic initiatives. The Corporation incurred $.461 million of expenses related to acquisition initiatives and also recorded an after tax loss from the asset based lending subsidiary of $.379 million. The combination of these two initiatives had a negative after tax impact of $.683 million, or $.12 per share. Weighted average shares totaled 5,532,966 shares for the nine month period in 2014 and 5,540,200 shares in the 2014 third quarter compared to 5,559,108 shares for the nine month period and 5,562,835 shares in the third quarter of 2013.
The Corporation’s subsidiary, mBank, recorded net income of $3.654 million for the first nine months of this year compared to $3.820 million for the same period in 2013. The largest adverse variance from 2013 results was noninterest income due to a reduced level of fees and gains on the sale of loans from secondary market mortgage lending of $.326 million as a result of the national mortgage refinance slowdown.
Total assets of the Corporation at September 30, 2014 were $613.943 million, up 8.10% from the $567.917 million reported at September 30, 2013 and up 7.18 % from the $572.800 million of total assets at year-end 2013. The Corporation and the Bank are both “well-capitalized”.
Key highlights for the first nine months of 2014 results include:
Increased annual dividend by 50%, from $.20 to $.30 per share
Credit quality remains strong with a Texas Ratio of 6.27% compared to 9.56% one year ago, and nonperforming assets of $4.538 million, a $2.343 million reduction from a year earlier.
Healthy new loan growth, with nine-month production of $141 million and balance sheet growth of $35 million.
Continued core deposit procurement, up $28 million from year end primarily in lower cost transactional accounts to augment funding of loan growth.
Margin is steady at 4.20%, with solid growth in interest income from $15.773 million in the first nine months of 2013 to $17.138 million in the 2014 nine month period, an 8.7% increase.
The pending acquisition of Peninsula Bank, a 127-year old, $132 million asset bank headquartered in the Upper Peninsula with six banking locations in Marquette County remains on schedule for a close in early December, subject to Peninsula shareholder approval. With the expected consummation of this transaction, total assets of the Corporation will reach close to $750 million and good earnings accretion in 2015 remains projected as noted in our original press release on the transaction from July of this year.
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