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Mackinac Financial to Acquire Wisconsin-Based Lincoln Community Bank
Wednesday 13 June 2018

13 June 2018 - Directors of Michigan, US-based Mackinac Financial Corp. (NASDAQ: MFNC), the holding company for mBank, and the directors of Wisconsin, US-based Lincoln Community Bank has executive an agreement for Mackinac to acquire Lincoln for USD 8.50m in cash, the company said.

Post-transaction assets of MFNC are estimated to be approximately USD 1.40bn and gross balance sheet loans of roughly USD 1.05bn.

The transaction is expected to close late in 3Q18. 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.

This purchase agreement also provides that Lincoln will be consolidated into mBank.

Mackinac said the increased footprint will allow the company to offer a more expansive banking experience to the Northern Central Wisconsin markets.

Lincoln Community Bank currently operates two (2) banking centres, one each in Merrill and Gleason, WI. As of March 31, 2018, Lincoln had total assets of approximately USD 65m, loans of USD 40m and deposits of USD 58m. Combined with mBank's current 23 branches in Michigan and 6 branches in Wisconsin, the acquisition will increase total branches from 29 to 31.

Mackinac Financial Corp. is a registered bank holding company formed under the Bank Holding company Act of 1956.

The principal subsidiary company is mBank. mBank has a total of 29 branch locations throughout Michigan and Northern Wisconsin and current assets in excess of USD 1.3bn.

Lincoln Community Bank's services include commercial and residential lending, as well as a full array of personal and business deposit products, consumer loans, mobile banking, online banking and bill pay.

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.
Date Published: 13/06/2018
Target: Lincoln Community Bank
Country: USA
Deal Size: 8.5m (USD)
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Buyer: Mackinac Financial Corp
Buyer Advisor: Piper Jaffray , Honigman Miller Schwartz and Cohn