Mackinac Financial Completes Stock Redemption
Mackinac Financial Corp., the bank holding company for mBank, announced that on December 31, 2013, it completed the redemption of its remaining 4,000 shares of outstanding Series A fixed rate cumulative preferred stock.
The redemption price for the preferred shares was the stated liquidation preference amount of $1,000 per shares, plus and accrued and unpaid dividends, a total cost of $4.026 million, which was funded with a combination of a dividend to the corporation of retained earnings from mBank, its wholly owned bank subsidiary and borrowing from the corporation’s revolving line of credit.
Following the completion of the redemption, the capital ratios of the corporation and the bank continue to exceed regulatory standards to be categorized as well-capitalized.
The shares were originally issued to the U.S. Department of Treasury under the TARP Capital Purchase Program and subsequently sold by the Treasury to private investors. Following completion of the redemption, no shares of the preferred stock remain outstanding.