trending Market Intelligence /marketintelligence/en/news-insights/trending/xwkrb-zg35rczuuaeavurq2 content esgSubNav
In This List

Mackinac Financial buying Lincoln Community Bank for $8.5M in cash

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Mackinac Financial buying Lincoln Community Bank for $8.5M in cash

Manistique, Mich.-based Mackinac Financial Corp. agreed to acquire Merrill, Wis.-based Lincoln Community Bank for $8.5 million in cash. As part of the deal, Lincoln will be merged into mBank, a unit of Mackinac Financial.

As of March 31, Lincoln had about $65 million in total assets. The company also had $40 million in loans and $58 million in deposits. After deal completion, Mackinac Financial is expected to have about $1.40 billion in assets and $1.05 billion in gross loans.

Additionally, the acquisition will increase Mackinac Financial's total branches to 31 from 29.

For comparison, SNL valuations for bank and thrift targets in the Midwest region between June 7, 2017, and June 7, 2018, averaged 161.83% of book, 169.45% of tangible book and had a median of 20.57x last-12-months earnings, on an aggregate basis.

SNL also calculates the deal value to be 123.10% of common equity and tangible common equity and 12.72x earnings, on an aggregate basis. It is also 13.05% of assets and 14.63% of deposits. The tangible book premium-to-core deposits ratio is 2.95%.

Mackinac Financial, as a result of the deal, will expand in Lincoln County, Wis., by two branches to be ranked third with a 13.12% share of approximately $402.6 million in total market deposits.

The transaction, which remains subject to regulatory approval, is anticipated to close late in the third quarter.

Mackinac was advised by Piper Jaffray and the law firm Honigman Miller Schwartz and Cohn LLP, while Lincoln was advised by Hovde Group LLC and the law firm Ballard Spahr LLP.

To use S&P Global Market Intelligence's branch analytics tools to compare market overlap, click here. To create custom maps, click here.

SNL is an offering of S&P Global Market Intelligence.

SNL Image