mBank has bright 3Q results

mBank has been in the news a lot lately, for its move to step in and support Manistique Papers by buying its debt and funding a restart of the paper mills that employ so many in Manistique--not coincidentally, mBank's hometown.

mBank president and CEO Kelly George had this to say about the impact of the partnership with Manistique Papers on the company.

"We at mBank are very proud that we were able to boldly provide the financial support and expertise to a vital member of our local community to save hundreds of jobs and to help rehabilitate the paper mill, a long standing member of our business community. I believe that this is the essence of real community banking; providing local banking services and financial expertise to foster economic development in order to preserve and create employment opportunities, keeping our communities vibrant and strong with a good quality of life for all."

The bank's third quarter results reflect its community spirit by returning it in kind -- mBank's holding company, Mackinac Financial Corporation, had an income of  $707,000 for the quarter, a nice improvement over last year's third quarter, which saw a loss of $104,000.

The last nine months' financials, also released this week, are brighter as well; the company showed a net income of $1.57 million over the first nine months of 2011, compared to a net income of $934,000 over the same period in 2010.

Some highlights of the bank's most recent reports include SBA and USDA loan income of $1.47 million. The bank says the loans have become a major revenue source for the company, as it makes small business lending a priority.

The bank also saw improved net interest margins over the quarter and nine months, as well as increased deposits. Loan losses also were down by more than half, at $400,000 versus the $1 million in loan losses in the third quarter of 2010.

The bank also noted in its report that it began operating its solely-owned title company to support its mortgage lending processes in September, offering title services for commercial and retail properties, which should provide another income line.

One of mBank's locations, inside the Menards store in Escanaba, is also moving to a free-standing traditional office which is planned to open in the second quarter of 2012, due to loan and deposit growth at the location.

Writer: Sam Eggleston
Source: Kelly George, mBank

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