Nicolet Bankshares in Green Bay, Wis. and Manistique’s Mackinac Financial Corp. Monday announced a merger agreement in which Nicolet will acquire Mackinac and its wholly owned banking subsidiary, mBank.
Based on the financial results as of Dec. 31, 2020 the combined company will have pro forma total assets of $6.1 billion, deposits of $5.2 billion, and loans of $3.9 billion. Mackinac would represent about 25 percent of the combined company’s year-end assets.
“We want to offer two initial thoughts when it comes to the question of what’s next,” says Mike Daniels, president and CEO of Nicolet. “First, we know that scale and efficiencies matter in community banking today. Our customers continue to tell and show us that convenience no longer means a branch on every corner.
“Second, we understand that actions speak louder than words. We want the communities to know that we are committed to realizing the promise of this acquisition. After the transaction is complete, people will see a strong community bank focused on keeping decisions local.”
Under the terms of the agreement, Mackinac shareholders will have the right to receive 0.22 shares of Nicolet’s common stock and $4.64 for each share of common stock of Mackinac Financial Corp. with total consideration to consist of about 80 percent stock and 20 percent cash.
Based on the closing price of Nicolet’s common stock of $84.40 on April 9, the implied per share purchase price is $23.21 with an aggregate transaction value of about $248 million.
The estimated transaction value is a 1.69 multiple of Mackinac’s tangible book value as of Dec. 31 and equates to about 18.3 times Mackinac’s 2020 earnings per share.
“On behalf of our board of directors, I am pleased to announce our merger into the Nicolet family,” says Paul Tobias, chairman and CEO of Mackinac. “We have found a strategic partner that is a true community bank with deep commitments to the markets we serve. The market cultures of our respective organizations mesh well, and the greater lending access will strengthen our value to current and prospective customers. This deal represents a fair transaction that unlocks shareholder value for us both.”
After the merger, Tobias will join the board of directors of Nicolet Bankshares and Nicolet National Bank. All customer-facing employees of Mackinac are expected to stay on in the same capacity.
The transaction has been unanimously approved by the boards of directors of both companies and is subject to Mackinac and Nicolet shareholder approval, regulatory approval, and other customary closing conditions. It is expected to close in the third quarter of 2021.
Nicolet was founded in 2000 and operates branches in northeast and central Wisconsin, as well as Michigan’s upper peninsula.
Mackinac’s principal subsidiary is mBank, which has 28 branch locations: 10 in the upper peninsula, 10 in the northern lower peninsula, one in Oakland County, and seven in northern Wisconsin. It offers commercial lending and treasury management for small and mid-sized businesses as well as personal and business deposit products and consumer loans.
In October 2018, Mackinac acquired Lincoln Community Bank in Wisconsin.
Check out DBusiness’ latest list of the Largest Banks and Thrifts in Metro Detroit here.