Manistique, Michigan – Mackinac Financial Corporation (Nasdaq: MFNC) (the “Corporation”), the bank holding company for mBank, today announced third quarter 2017 net income of $2.093 million, or $.33 per share, compared to net income of $1.778 million or $.28 per share for the third quarter of 2016. Net income for the first nine months of 2017 totaled $5.499 million, or $.88 per share, compared to $2.785 million, or $.45 per share, for the same period in 2016. Total assets of the Corporation at September 30, 2017 totaled $1.015 billion, compared to $959.121 million at September 30, 2016. Weighted average shares for 2017 totaled 6,286,772 compared to 6,226,900 shares in the same period of 2016.
The period-to-period comparison above includes the effect of the Corporation’s April 2016 acquisition of First National Bank of Eagle River (“Eagle River”) and August 2016 acquisition of Niagara Bancorporation (“Niagara”). In connection with these acquisitions, the Corporation had aggregate GAAP pre-tax transaction related expenses totaling $2.928 million recorded in the second and third quarters of 2016. These costs, largely associated with the early termination of the Eagle River data processing system in June, reduced the reported nine-month 2016 income by $1.932 million, or $.31 per share, on an after- tax basis. The adjusted 2016 nine-month net income (exclusive of the transaction related expenses) equates to $4.718 million, or $.76 per share. The transaction expense impact in the third quarter of 2016 was $237 thousand, or $.04 per share, the exclusion of which results in adjusted net income $2.015 million, or $.32 per share, for the quarter.
Highlights for the first nine months of 2017 include:
- mBank, the Corporation’s subsidiary bank, recorded nine-month net income of $6.543 million compared to $3.953 million in 2016. Excluding $2.512 million of transaction related expenses ($1.658 million after tax), net income was $5.611 million for the first nine months of 2016. The adjusted year-over-year increase equates to 17%.
- Total shareholder equity increased $4.364 million year-over-year from $78.285 million in September 2016 to $82.649 million in 2017.
- Total interest income was $32.985 million through September 2017 compared to $27.398 million for the same period in 2016, a 20% increase.
- Net interest margin remains solid, at 4.21%. Net interest income increased from $23.980 million in 2016 to $28.274 million in 2017, an 18% increase.
- Credit quality remains strong with a Texas Ratio of 9.34% as of September 30, 2017.