NasdaqCM:MFNC

Stock Analysis Report

Executive Summary

Mackinac Financial Corporation operates as the bank holding company for mBank that provides commercial and retail banking products and services in the United States.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Mackinac Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.0%

MFNC

2.9%

US Banks

0.07%

US Market


1 Year Return

-0.9%

MFNC

8.6%

US Banks

8.9%

US Market

Return vs Industry: MFNC underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: MFNC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

MFNCIndustryMarket
7 Day2.0%2.9%0.07%
30 Day-0.9%3.4%-0.3%
90 Day0.5%2.1%-1.6%
1 Year2.5%-0.9%11.8%8.6%11.3%8.9%
3 Year46.8%33.4%54.8%44.1%46.3%36.8%
5 Year71.8%46.1%70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

How volatile is Mackinac Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mackinac Financial undervalued compared to its fair value and its price relative to the market?

12.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MFNC ($15.71) is trading above our estimate of fair value ($12.01)

Significantly Below Fair Value: MFNC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MFNC is poor value based on its PE Ratio (12.7x) compared to the Banks industry average (12.6x).

PE vs Market: MFNC is good value based on its PE Ratio (12.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MFNC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MFNC is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

  • Explore potentially undervalued companies in the Banks industry.

Future Growth

How is Mackinac Financial forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFNC's forecast earnings growth (11.6% per year) is above the savings rate (2.7%).

Earnings vs Market: MFNC's earnings (11.6% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: MFNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MFNC's revenue (4.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MFNC's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFNC's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Mackinac Financial performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MFNC's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: MFNC's earnings growth over the past year (231.3%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: MFNC earnings growth over the past year (231.3%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: MFNC's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: MFNC's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate MFNC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Mackinac Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MFNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: MFNC's debt is covered by short term assets (assets are 1.628300x debt).


Financial Institutions Analysis

Asset Level: MFNC's level of assets compared to its equity is low.

Allowance for Bad Loans: MFNC has a sufficient allowance for bad loans.

Low Risk Liabilities: MFNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: MFNC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MFNC's loans are broadly funded by customer deposits.

Level of Bad Loans: MFNC has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

What is Mackinac Financial's current dividend yield, its reliability and sustainability?

3.06%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MFNC's dividend (3.06%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MFNC's dividend (3.06%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, MFNC has been paying a dividend for less than 10 years.

Growing Dividend: MFNC's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.8%), MFNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MFNC's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

What is the CEO of Mackinac Financial's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Paul Tobias (68yo)

14.8yrs

Tenure

US$573,264

Compensation

Mr. Paul D. Tobias has been the Chairman and Chief Executive Officer at Mackinac Financial Corporation since December 16, 2004. Mr. Tobias has been the Chairman of mBank since December 16, 2004. He is a ve ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD573.26K) is below average for companies of similar size in the US market ($USD1.22M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

51yo

Average Age

Experienced Management: MFNC's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

13.8yrs

Average Tenure

66yo

Average Age

Experienced Board: MFNC's board of directors are seasoned and experienced ( 13.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$13,84421 Mar 19
Jesse Deering
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares875
Max PriceUS$15.85
SellUS$14,91010 Dec 18
Dennis Bittner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,100
Max PriceUS$13.55
SellUS$31,00307 Nov 18
Dennis Bittner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$15.50

Ownership Breakdown


Management Team

  • Paul Tobias (68yo)

    Chairman & CEO

    • Tenure: 14.8yrs
    • Compensation: US$573.26k
  • Kelly George (51yo)

    President & Director

    • Tenure: 13.8yrs
    • Compensation: US$576.51k
  • Jesse Deering (39yo)

    Executive VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$332.09k
  • Jason Rolling

    Senior VP and Branch Sales & Administration Officer of mBank

    • Tenure: 4.8yrs
  • Mike Slaght

    Vice President of mBank and Commercial Banking Officer of mBank

    • Tenure: 0yrs
  • Trisha Demars

    Assistant VP & Senior Deposit Operations Specialist of mBank

    • Tenure: 0yrs
  • Cathy Bolm

    VP & Mortgage Loan Officer of mBank

    • Tenure: 7.4yrs
  • Elena Dritsas

    Assistant VP & Branch Sales Manager of Mbank

    • Tenure: 5.1yrs
  • Clay Peterson

    Executive VP & MD of Retail Banking and Western UP & Wisconsin Market Executive of mBank

    • Tenure: 0yrs

Board Members

  • Bud Aspatore (76yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$55.50k
  • Dennis Bittner (70yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$48.00k
  • Paul Tobias (68yo)

    Chairman & CEO

    • Tenure: 14.8yrs
    • Compensation: US$573.26k
  • Kelly George (51yo)

    President & Director

    • Tenure: 13.8yrs
    • Compensation: US$576.51k
  • Randolph Paschke (69yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$49.00k
  • Rob Orley (63yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$46.50k
  • David Steinhardt (51yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$49.50k
  • Lewis Patterson (79yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$50.00k
  • Joe Garea (64yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$47.00k
  • Bob Mahaney (60yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$49.25k

Company Information

Mackinac Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mackinac Financial Corporation
  • Ticker: MFNC
  • Exchange: NasdaqCM
  • Founded: 1974
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$168.737m
  • Shares outstanding: 10.74m
  • Website: https://www.bankmbank.com

Number of Employees


Location

  • Mackinac Financial Corporation
  • 130 South Cedar Street
  • Manistique
  • Michigan
  • 49854
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFNCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDFeb 2000

Biography

Mackinac Financial Corporation operates as the bank holding company for mBank that provides commercial and retail banking products and services in the United States. It offers interest bearing and non-inte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:51
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.