It's been a tough few years for banks in general, but the latest quarterly results from Mackinac Financial Corporation show some bright spots.
Mackinac Financial is the holding company for Manistique-based mBank. For the first quarter of 2011, it announced an income of $256,000, which was a big drop compared to last year at this time, when the quarterly result was a $3.5 million net income.
However, it's not as drastic as it seems, because in the first quarter of 2010, the income included a $3.5 million deferred tax benefit.
Nonperforming assets continue to be a chunk of the financial corporation's ledgers, totaling a little more than $15 million in the first quarter of 2011, but it's an improvement over last quarter. Since the end of 2010, nonperforming assets have been reduced by a little more than $1 million.
And, a very positive result for mBank came in the category of deposit growth, which was $25 million this quarter, of which $17.7 million was in transactional accounts.
Finally, loan pricing has been consistent, with a steady lineup of new loans throughout the quarter, which mBank president Kelly George says should help the company do even better in the second quarter, particularly with Small Business Association and U.S. Department of Agriculture loans.
"We expect our margin to improve as we progress through the year with increased funding of new loans and further repayment of maturing brokered deposits," says George. "Our first quarter new loan production was satisfactory given the seasonality of our business where the first quarter routinely is the slowest."
The strongest loan production region for mBank was in the Upper Peninsula, where $11.4 million in new loans and mortgages were approved. The bank has seven locations in the U.P., three in the northern Lower Peninsula and one in Oakland County.
Writer: Sam Eggleston
Source: Kelly George, mBank
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