(Manistique, Michigan) – Mackinac Financial Corporation (Nasdaq: MFNC) (the “Corporation”), the bank holding company for mBank, today announced first quarter 2018 income of $1.54 million, or $.24 per share, compared to net income of $1.73 million, or $.28 per share, for the first quarter of 2017. As expected, the 2018 first quarter results were impacted by expenses related to the acquisition of First Federal of Northern Michigan (FFNM) that was announced January 16, 2018. In connection with the acquisition, the Corporation had GAAP pre-tax transaction related expenses totaling $189 thousand. Additionally, the Corporation consolidated two southeast Michigan offices during the first quarter that will create long-term cost efficiencies but required a one-time pre-tax early lease termination expense of $64 thousand. These one-time costs reduced the reported net income for the quarter by $200 thousand, on an after-tax basis. The adjusted net income for the first quarter of 2018 (exclusive of the transaction related expenses and the lease termination expense) would equate to $1.74 million, or $.28 per share.
Total assets of the Corporation at March 31, 2018 were $983.93 million compared to $976.64 million at March 31, 2017. Shareholders’ equity at March 31, 2018 totaled $81.86 million, compared to $80.01 million on March 31, 2017. The tangible book value per share equated to $11.73 on March 31, 2018 compared to $11.47 per share a year ago. Weighted average shares outstanding totaled 6,304,203 shares in the 2018 first quarter compared to 6,270,034 for the same period in 2017.
Subject to both MFNC and FFNM shareholder approvals, the company is expecting to close the transaction on May 18, 2018. Special shareholder meetings of each company to facilitate the requisite votes are scheduled for May 10, 2018. All required regulatory approvals have been attained.
mBank, the Corporation’s primary asset, recorded net income of $2.05 million in the first quarter of 2018, compared to $2.06 million, in 2017. Combined acquisition-related and lease termination expenses totaled $99 thousand at the bank level, with an after-tax impact of $78 thousand. Adjusted core net income (exclusive of the expenses noted above) for first quarter 2018 was $2.13 million.