Keep in mind we have to hold to get the special dividend so dont rush to sell FFNM. We also own MFNC and this looks to be a good deal for them so we may just take the offer.
- The merger will include 7 full service banking locations of First Federal of Northern Michigan (following the previously announced sale of the Oscoda location to a third party), approximately $320 million in assets and $283 million in deposits, primarily all core deposits. Combined offices will equate to 30 banking centers.
- The transaction is expected to close in the 2nd Quarter of 2018.
- Anticipated results include earnings per share accretion of 8.0% in 2018 (exclusive of deal costs) and an expected tangible book value earn back period of 3 years or less.
- The transaction is the 4th strategic expansion by Mackinac since late 2014.
MANISTIQUE, Mich. and ALPENA, Mich., Jan. 16, 2018 (GLOBE NEWSWIRE) -- The Directors of Mackinac Financial Corporation (MFNC) (Mackinac), the holding company for mBank, and the Directors of First Federal of Northern Michigan Bancorp, Inc. (FFNM) (FFNM), the holding company for First Federal of Northern Michigan today announced the execution of a definitive agreement for Mackinac to acquire FFNM through an all-stock merger of FFNM with and into a subsidiary of Mackinac. FFNM shareholders will receive .576 shares of Mackinac common stock for each share of FFNM common stock. The aggregate value of the stock consideration, based on an assumed price of Mackinac shares of $15.75, is $33.8 million. MFNC expects to issue approximately 2.15 million shares to FFNM shareholders in connection with the transaction. Under the terms of the agreement, shareholders of FFNM will also receive a special cash dividend immediately prior to close of $8.0 million subject to maintenance of a minimum ...