Mackinac Financial Corp. has completed its acquisition of First Federal of Northern Michigan Bancorp Inc.
First Federal's subsidiary, Alpena, Mich.-based First Federal of Northern Michigan, has merged into Manistique, Mich.-based mBank, a subsidiary of Mackinac Financial.
Each First Federal common share was exchanged for 0.576 of a Mackinac common share. Based on an assumed Mackinac per-share price of $15.67, the aggregate value of the stock consideration is about $33.6 million.
A special cash dividend of $8 million will also be distributed to First Federal shareholders on May 25.
Total consideration to First Federal shareholders in connection with the deal would equate to $41.6 million, based on the assumed value of Mackinac common shares. The deal will increase Mackinac's post-transaction assets to an estimated $1.3 billion and balance sheet loans to roughly $1 billion. According to the release, mBank plans to consolidate First Federal of Northern Michigan's Gaylord office into mBank's Gaylord location on June 18.
Pursuant to a previous nomination, former First Federal Chairman Martin Thomson is expected to be officially appointed to the Mackinac board on May 30 during the next Mackinac board meeting.
As of March 31, First Federal of Northern Michigan had $309.6 million in assets, while mBank had $982.4 million in assets.
