Mackinac Financial Corporation Launches Asset-Based Lending Subsidiary

Mackinac Financial Corporation Launches Asset-Based Lending Subsidiary 
Mackinac Commercial Credit Offers Small- to Medium-Sized Businesses
Innovative Options for Working Capital 
BIRMINGHAM, MI -- (Marketwired) -- 09/20/13 --  Mackinac Financial
Corporation (NASDAQ: MFNC) announced today the formation of Mackinac
Commercial Credit LLC (MCC), a wholly owned subsidiary of the holding
company. MCC will provide working capital to small- to medium-sized
companies through a variety of alternative financing methods,
including asset-based lending and factoring.  
"We created MCC as a non-bank subsidiary to complement mBank and
expand our offering to provide more financing options for companies
that are not yet eligible for traditional bank financing," said Paul
Tobias, chairman and CEO of Mackinac Financial Corporation. "With
experienced personnel in place and a well-built credit and operations
infrastructure, MCC is also set-up to provide excellent margins and
returns to MFNC shareholders." 
Driven by a leadership team with more than 20 years of proven
experience in these financing approaches, the organization opened its
full-service office for business in Birmingham on Sept. 10. "We are
fortunate to have Don Barr, a veteran industry leader at the helm,"
added Tobias. "His history of accomplishment in this arena includes
creating a culture of focused professionals that know how to provide
their customers with efficient financing solutions at a time of
need."  
Don Barr brings 40 years of traditional banking and asset-based
lending experience to MCC. Most recently, as president of a
successful commercial credit organization, he oversaw all aspects of
the startup and was the sole signatory on all loan approvals. Under
his leadership, the organization covered the Midwest, Texas markets
and the Southeast and produced significant returns to shareholders
during his tenure. 
"My successes coupled with a seasoned support team and the backing
from the well-respected and proven management team at Mackinac
Financial Corporation will translate well in building this business
-- so that others can build theirs," said Don Barr. 
MFNC has invested $3 million in this subsidiary and MCC has secured a
$25 million line of credit, without recourse to MFNC, from Wells
Fargo Capital
 Finance, part of Wells Fargo & Company (NYSE: WFC) to
fund its loan and purchased receivable portfolio. "We are pleased to
have earned the confidence of Wells Fargo Commercial Finance unit, a
recognized US leader in providing financing to commercial finance
companies," said Tobias. "As we expand this line of business, we will
be exploring our options for supplemental capitalization." 
MCC is currently seeking loan and purchased receivable opportunities
from growing or challenged businesses with strong future potential
for success. Industries include medical, staffing companies, and
light manufacturing businesses. Loan or asset purchase requests
should be directed to Don Barr at dbarr@mackinaccredit.com.  
About Mackinac Financial Corporation
 Mackinac Financial Corporation
is a registered bank holding company formed under the Bank Holding
Company Act of 1956 with assets of $550 million and whose common
stock is traded on the NASDAQ stock market as "MFNC." The principal
subsidiary of the Corporation is mBank. Headquartered in Manistique,
Michigan, mBank has 11 branch locations; seven in the Upper
Peninsula, three in the Northern Lower Peninsula and one in Oakland
County, Michigan. The Corporation's banking services include
commercial lending and treasury management products and services
geared toward small to mid-sized businesses, as well as a full array
of personal and business deposit products and consumer loans. 
Forward-Looking Statements 
This release contains certain forward-looking statements. Words such
as "anticipates," "believes," "estimates," "expects," "intends,"
"should," "will," and variations of such words and similar
expressions are intended to identify forward-looking statements: as
defined by the Private Securities Litigation Reform Act of 1995.
These statements reflect management's current beliefs as to expected
outcomes of future events and are not guarantees of future
performance. These statements involve certain risks, uncertainties
and assumptions that are difficult to predict with regard to timing,
extent, likelihood, and degree of occurrence. Therefore, actual
results and outcomes may materially differ from what may be expressed
or forecasted in such forward-looking statements. Factors that could
cause a difference include among others: changes in the national and
local economies or market conditions; changes in interest rates and
banking regulations; the impact of competition from traditional or
new sources; and the possibility that anticipated cost savings and
revenue enhancements from mergers and acquisitions, bank
consolidations, branch closings and other sources may not be fully
realized at all or within specified time frames as well as other
risks and uncertainties including but not limited to those detailed
from time to time in filings of the Company with the Securities and
Exchange Commission. These and other factors may cause decisions and
actual results to differ materially from current expectations.
Mackinac Financial Corporation undertakes no obligation to revise,
update, or clarify forward-looking statements to reflect events or
conditions after the date of this release. 
Contact: 
Paul D. Tobias
(248) 290-5901 
ptobias@bankmbank.com
www.bankmbank.com