BUSINESS COMBINATIONS (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of unaudited proforma results

Proforma Mackinac Financial Combined with Eagle River and Niagara

	Nine months ended		Year Ended
	September 30, 2016		December 31, 2015
Net interest income	$	26,833	$	35,492
Noninterest income		3,744		5,533
Noninterest expense		25,431		30,691
Net income		3,396		7,117
Net income per diluted share	$	.54		1.13

Eagle

Schedule of disclosure of goodwill in a business combination

The table below highlights the allocation of the purchase price (dollars in thousands, except per share data):

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		948
Bank owned life insurance		4,132
Other assets		323
Total assets		124,697
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				8,898
Goodwill			$	1,839

Niagara Bancorporation

Schedule of disclosure of goodwill in a business combination

The table below highlights the allocation of the purchase price (dollars in thousands, except per share data):

Purchase Price:
Eagle shares outstanding		4,354
Price per share/Cash price	$	1,682.36
Total purchase price			$	7,325
Net assets acquired:
Cash and cash equivalents	$	9,778
Securities available for sale		21,491
FRB & FHLB Stock		287
Total Loans		32,660
Allowance for loan losses		(358)
Valuation mark   -  ASC 310-30, nonperforming		(353)
-  ASC 310-20, performing		(600)
Allowance for loan loss reversal		358
Premises and equipment		926
Other real estate owned		450
Valuation mark		(149)
Deposit based intangible		300
Mortgage servicing rights		87
Deferred tax benefit - book for valuation marks		273
Deferred tax benefit		124
Bank owned life insurance		1,109
Other assets		302
Total assets		66,685
Non-interest bearing deposits		5,396
Interest bearing deposits		53,788
Total deposits		59,184
Other liabilities		226
Total liabilities		59,410
Net assets acquired				7,275
Goodwill			$	50