Mackinac Financial Corporation Completes the Redemption of Remaining TARP Stock
MANISTIQUE, MI -- (Marketwired) -- 01/02/14 -- Mackinac Financial
Corporation (NASDAQ: MFNC), the bank holding company for mBank (the
"Bank"), today announced that on December 31, 2013, it completed the
redemption of its remaining 4,000 shares of outstanding Series A
fixed rate cumulative preferred stock.
The shares were originally issued to the U.S. Department of Treasury
under the TARP Capital Purchase Program and subsequently sold by the
Treasury to private investors. Following completion of the
redemption, no shares of the preferred stock remain outstanding.
The redemption price for the preferred shares was the stated
liquidation preference amount of $1,000 per shares, plus and accrued
and unpaid dividends, a total cost of $4.026 million, which was
funded with a combination of a dividend to the Corporation of
retained earnings from mBank, its wholly owned bank subsidiary and
borrowing from the Corporation's revolving line of credit. Following
the completion of the redemption, the capital ratios of the
Corporation and the Bank continue to exceed regulatory standards to
be categorized as well-capitalized.
Mackinac Financial Corporation is a registered bank holding company
formed under the Bank Holding Company Act of 1956 with assets in
excess 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
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 Corporation 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.
Ernie R. Krueger
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