MFNC Mackinac Financial Corp.

Mackinac Financial Corp. is a bank holding company, which engages in the provision of commercial banking services through its subsidiary, mBank. It offers loan and deposit products. Its services include customary retail and commercial banking services, including checking and savings accounts, time deposits, interest bearing transaction accounts, safe deposit facilities, real estate mortgage lending, commercial lending, commercial and governmental lease financing, and direct and indirect consumer financing. The company was founded on December 16, 1974 and is headquartered in Manistique, MI.

Company profile

Ticker

MFNC

Exchange

NASDAQ

Website

www.bankmbank.com

CEO

Paul Davison Tobias

Incorporated in

Michigan

Location

Michigan

Fiscal year end

Dec 31

Sector

Finance > Regional Banks

Industry (SEC)

State Commercial Banks

Bank Of New York Mellon • Northern Trust • M&T Bank • Popular • State Street • Citizens Financial • Iberiabank • Fifth Third Bancorp • Great Western Bancorp • Bank of Hawaii ...

Former names

First Manistique Corp, North Country Financial Corp

SEC CIK

0000036506

Corporate docs

Articles of Incorporation & Bylaws

IRS number

382062816

MFNC stock data

S&P 500

1M 1Y 2Y 5Y

FINRA relative short interest over last month (20 trading days) ?

Investment data

Data from SEC filings

Securities sold

Number of investors

Company financial data Financial data

Chart MFNC financial data

Quarter (USD)	Dec 19	Sep 19	Jun 19	Mar 19
Revenue	389K	383K	408K	406K
Net income	3.3M	3.72M	3.67M	3.17M
Diluted EPS	0.31	0.35	0.34	0.3
Net profit margin	847%	971%	899%	780%
Net change in cash	-33.1M	22.23M	3.73M	-7.19M
Cash on hand	49.83M	82.92M	60.69M	56.96M

Annual (USD)	Dec 19	Dec 18	Dec 17	Dec 16
Revenue	1.59M	1.44M	1.06M
Net income	13.85M	8.37M	5.48M	4.48M
Diluted EPS	1.29	0.94	0.87	0.72
Net profit margin	873%	581%	519%
Net change in cash	-14.33M	26.73M	-9.33M	21.75M
Cash on hand	49.83M	64.16M	37.43M	46.76M

Financial data from company earnings reports

Recent insider trades

MFNC insider ownership history Insider history

Date	Owner	Security	Transaction	Code	$Price	#Shares	$Value	#Remaining
24 Mar 20	Steinhardt David Russ	Common Stock	Buy	Aquire P	8.7934	346	3.04K	15,994
24 Mar 20	Steinhardt David Russ	Common Stock	Buy	Aquire P	7.5865	2,614	19.83K	15,648
23 Mar 20	Steinhardt David Russ	Common Stock	Buy	Aquire P	7.3634	1,034	7.61K	13,034
19 Mar 20	Steinhardt David Russ	Common Stock	Buy	Aquire P	9.9995	10,000	100K	12,000
12 Mar 20	Mahaney Robert Edward II	Common Stock	Buy	Aquire P	11.5	2,562	29.46K	28,982
13 Feb 20	Paul Davison Tobias	Common Stock	Grant	Aquire A	0	16,000	0	95,367
13 Feb 20	Kelly W George	Common Stock	Grant	Aquire A	0	20,000	0	92,500

Data from 3, 4 and 5 filings. Stock values as filed, not updated for current price.

Institutional ownership Q4 2019

MFNC institutional ownership history Ownership history

13F holders	Current	Prev Q	Change
Total holders	0	0	NaN%
Opened positions	0	0	NaN%
Closed positions	0	0	NaN%
Increased positions	0	0	NaN%
Reduced positions	0	0	NaN%

13F shares	Current	Prev Q	Change
Total value	0	0	–
Total shares	0	0	–
Total puts	0	0	–
Total calls	0	0	–
Total put/call ratio	–	–	–

Largest owners	Shares	Value	Change

Largest transactions	Shares	Bought/sold	Change

Data from 13F filings. Stock values as filed, not updated for current price. Long positions only.

Financial report summary

Risks

If the allowance for loan losses is not sufficient to cover actual loan losses, our earnings could decrease.
We may need to raise additional capital in the future, but that capital may not be available when it is needed.
If the Corporation is unable to increase its share of deposits in the markets that its bank operates within, it may accept out-of-market and brokered deposits, the costs of which may be higher than expected.
Volatility and disruptions in global capital and credit markets may adversely impact our business, financial condition and results of operations.
The Corporation is subject to extensive regulation that could limit or restrict its activities.
We may make or be required to make further increases in our provision for loan losses and to charge off additional loans in the future, which could adversely affect our results of operations.
Our adjustable-rate loans may expose us to increased default risks.
Changing interest rates may decrease the Corporation’s earnings and asset values.
Mackinac faces strong competition from other financial institutions, financial services companies and other organizations offering services similar to those offered by it, which could result in Mackinac not being able to sustain or grow its loan and deposit businesses.
Our business could be adversely affected due to risks related to our recent acquisitions and the subsequent integration of the acquired businesses.
Our ability to use net operating loss carryovers to reduce future tax payments may be limited or restricted.
We may not be able to utilize technology to efficiently and effectively develop, market, and deliver new products and services to our customers.
Operational difficulties, failure of technology infrastructure or information security incidents could adversely affect Our business and operations.
Changes in customer behavior may adversely impact our business, financial condition and results of operations.
Our ability to maintain and expand customer relationships may differ from expectations.
The trading price of our common stock may be subject to significant fluctuations and volatility.

Management Discussion

The Corporation reported net income available to common shareholders of $13.850 million in 2019, compared to $8.367 million in 2018. The 2018 results included expenses related to the acquisitions of FFNM and Lincoln, which had a collective after-tax impact of $2.461 million on earnings.
Net interest income is the Corporation’s primary source of core earnings. Net interest income represents the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing funding sources. Net interest revenue is the Corporation’s principal source of revenue, representing 90.06% of total revenue in 2019. The Corporation’s net interest income is impacted by economic and competitive factors that influence rates, loan demand, and the availability of funding.
Net interest income on a taxable equivalent basis increased $6.800 million from $47.400 million in 2018 to $54.200 million in 2019. In 2019, there were three 25 basis point rate decreases to the federal funds rate. There were four 25 basis point rate increases to the federal funds rate in 2018. The Corporation experienced an increase of 25 basis points in the overall rates on earning assets from 5.24% in 2018 to 5.49% in 2019. Interest bearing funding sources increased by 19 basis points, from .98% in 2018 to 1.17% in 2019. The combination of these effective rate changes resulted in an increase in the taxable equivalent net interest margin from 4.46% in 2018 to 4.60% in 2019.

Content analysis ?

Positive
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Constraining
Legalese
Litigous
Readability	H.S. freshman Bad

New words: adherence, burden, CBLR, CECL, condensed, ecperienced, Emmet, fewer, FR, inclusive, openin, parallel, payout, refine, removing, small, software, team, threshold, timeline, timetable, vendor, voted

Removed: achieved, combined, comparative, demanding, depict, determinable, enumerated, excluded, forma, fourth, identification, illustrative, orderly, Patterson, pro, promised, restrictive, retrospectively, Subtopic, unaudited

From filing 10-K 2019 FY