MFNC Mackinac Financial Corp.

Risks

• If the allowance for loan losses is not sufficient to cover actual loan losses, Mackinac’s earnings could decrease.
• Mackinac may need to raise additional capital in the future, but that capital may not be available when it is needed.
• If Mackinac 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 Mackinac’s business, financial condition and results of operations.
• Mackinac is subject to extensive regulation that could limit or restrict its activities.
• Mackinac may make or be required to make further increases in its provision for loan losses and to charge off additional loans in the future, which could adversely affect the results of operations.
• Mackinac’s adjustable-rate loans may expose it to increased default risks.
• Changing interest rates may decrease Mackinac’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.
• Mackinac’s ability to use net operating loss carryovers to reduce future tax payments may be limited or restricted.
• Mackinac may not be able to utilize technology to efficiently and effectively develop, market, and deliver new products and services to its customers.
• Operational difficulties, failure of technology infrastructure or information security incidents could adversely affect Mackinac’s business and operations.
• Changes in customer behavior may adversely impact Mackinac’s business, financial condition and results of operations.
• Mackinac’s ability to maintain and expand customer relationships may differ from expectations.
• The trading price of Mackinac’s common stock may be subject to significant fluctuations and volatility.