The directors of Mackinac Financial Corp., the holding company for Manistique-based mBank, today announced the consummation of its all-cash acquisition of Lincoln Community Bank in Merrill, Wis. The total cash consideration was $8.5 million.
Lincoln was immediately consolidated into mBank, and both branches were today opened as mBank locations. The acquired assets equate to about $60 million, loans of about $40 million, and core deposits of about $52 million. The transaction will increase Mackinac’s post-transaction assets to an estimated $1.32 billion and balance sheet loans to about $1.1 billion. The acquisition was first announced in June.
mBank plans to close Lincoln’s Gleason, Wis. office at the end of the year. It will remain open and fully operational until the closure occurs. The addition of the single acquired office, following the Gleason closing, will increase mBank’s total branches to 30.
“On behalf of the entire Mackinac board of directors, staff, and management, we would like to extend a sincere welcome to all Lincoln clients and employees,” says Kelly W. George, president of Mackinac and president and CEO of mBank. “Our primary objective will be to provide professional, secure, and flexible banking products and services to all customers as we look to deepen our banking relationships with current clients and actively work to attract new ones.
“mBank also looks forward to becoming an active corporate citizen within the Merrill market and assisting with various municipal, educational, charitable, and business development organizations to help make a positive difference within the communities. We also are excited that current President Clyde Nelson will remain with the company as the Merrill market executive prior to his retirement.”
Mackinac anticipates that inclusive of acquisition-related expenses, the transaction will be breakeven in 2018 and accretive to earnings per share beginning immediately in 2019.
Operating efficiencies are targeted to be fully phased in by the end of 2018, which includes the anticipated completion of the data system conversion scheduled for early November. The Tangible Book Value earn back for Mackinac is currently expected to be about two years or less.
“We are proud to become a partner with a high-quality community-banking organization such as mBank, whose community-focused culture reflects our values, and many of their markets mirror our Merrill community so well,” says Nelson. “The added scale of mBank will allow for the expansion and enhancements of current product and service offerings for clients to help make banking more convenient, and more opportunities for our small businesses to access capital for growth.”
Mackinac was advised by Piper Jaffray and the law firm of Honigman Miller in Detroit. Lincoln was advised by Hovde Group LLC and the law firm of Ballard Spahr.
“We are very pleased to expand our presence into northcentral Wisconsin by partnering with another long-standing, community-minded financial institution,” says Paul D. Tobias, chairman and CEO of Mackinac, and chairman of mBank. “Strategically, the proximity to our current footprint complements our Eagle River market and allows us to add scale in that region to enhance our franchise value and presence.”
In other acquisition news, San Jose, Calif.’s Cisco today announced it has completed the acquisition of Ann Arbor’s Duo Security for $2.35 billion in cash and assumed equity awards for all of Duo’s outstanding shares, warrants, and equity incentives on a fully-diluted basis.
Duo is a privately held company and a provider of unified access security and multi-factor authentication delivered through the cloud. Duo’s solution verifies the identity of users and health of their devices before granting them access to applications, helping to prevent cybersecurity breaches.
Dug Song, CEO and co-founder of Duo, and his team are joining Cisco’s networking and security business, which is led by David Goeckeler, executive vice president and general manager.