Mackinac Financial To Acquire Peninsula Financial Corp. - Quick Facts

(RTTNews) - Mackinac Financial Corp. (MFNC) said its Directors along with the Directors of Peninsula Financial Corporation, the holding company for Peninsula Bank, announced the execution of a definitive agreement for Mackinac to acquire Peninsula in a cash & stock transaction for a fixed $13.285 million purchase of $10.50 million of equity.

The company said Shareholders of Peninsula will also receive a special dividend immediately prior to close of any equity greater than $10.50 million as specified in the merger agreement.

Mackinac said it anticipates the transaction to be immediately accretive to earnings per share for 2014 with increasing accretion estimated for 2015 of $.24 and 2016 of $.35. Operating savings resulting from economies of scale and increased efficiencies are initially projected to be approximately 35% and are expected to be fully realized in the 2015 fiscal year. The Tangible Book Value earn back for Mackinac is currently expected to be about 3 years or less.

Under the terms of the merger agreement, shareholders of Peninsula will receive a mix of shares of Mackinac common stock and cash for each share of Peninsula common stock, with the mix depending on cash/stock elections made by each Peninsula shareholder, provided that the aggregate cash consideration will not exceed 35% of the total merger consideration.

It is noted that the transaction is expected to close late in the 3rd Quarter or early 4th Quarter of 2014 and the total transaction expenses are estimated to be about $2.0 million on an after-tax basis.