BUSINESS COMBINATIONS (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations

Schedule of disclosure of goodwill in a business combination

The table below highlights the allocation of the purchase price (dollars in thousands):

Purchase Price:
Eagle shares outstanding		85,776
Price per share/Cash price	$	145.73
Total purchase price			$	12,500
Reimbursement of termination fees				(1,763)
Cash consideration			$	10,737
Net assets acquired:
Cash and cash equivalents	$	10,600
Securities available for sale		24,046
Valuation mark		(750)
FRB & FHLB Stock		575
Total Loans		84,138
Allowance for loan losses		(611)
Valuation mark   -  ASC 310-30, nonperforming		(1,563)
-  ASC 310-20, performing		(1,700)
Allowance for loan loss reversal		611
Premises and equipment		1,931
Other real estate owned		1,795
Valuation mark		(891)
Deposit based intangible		993
Mortgage servicing rights		120
Deferred tax benefit - book for valuation marks		1,419
Bank owned life insurance		4,132
Other assets		323
Total assets		125,168
Non-interest bearing deposits		22,349
Interest bearing deposits		82,165
Total deposits		104,514
FHLB Borrowings		11,000
Other liabilities		285
Total liabilities		115,799
Net assets acquired				9,369
Goodwill			$	1,368

Schedule of unaudited proforma results

Proforma Mackinac Financial Combined with Eagle River

	Six months ended		Year Ended
	June 30, 2016		December 31, 2015
Net interest income	$	16,846	$	33,001
Noninterest income		1,856		4,705
Noninterest expense		13,912		28,076
Net income		3,304		5,988
Net income per diluted share	$	.53		.95