Nicolet expanding in Michigan with proposed purchase of Mackinac

Nicolet Bankshares in Green Bay, Wis., has agreed to buy Mackinac Financial in Manistique, Mich.

The $4.6 billion-asset Nicolet said in a press release Monday that it will pay $248 million in cash and stock for the $1.5 billion-asset Mackinac. The deal, which is expected to close in the third quarter, priced Mackinac at 169% of its tangible book value.

Mackinac has $1.1 billion of loans and $1.3 billion of deposits.

The acquisition “represents a unique and sizeable opportunity to expand Nicolet’s franchise across a greater Northern footprint, while at the same time, being highly accretive to long-term shareholder value,” Bob Atwell, the company’s chairman and CEO, said in the release.

“It also opens up the possibility for future expansion into the state of Michigan, if and when the opportunity arises,” Atwell added.

Nicolet said it expects the deal to be 14% accretive to its 2022 earnings per share. It should take about two years for the company to earn back the estimated 5% dilution to its tangible book value.

Nicolet plans to cut about 30% of Mackinac’s annual noninterest expenses. The company expects to incur about $20 million of merger-related expenses.

Paul Tobias, Mackinac’s chairman and CEO, will join Nicolet’s board.

Bryan Cave Leighton Paisner advised Nicolet, while Hovde Group provided the company’s board with a fairness opinion. Piper Sandler and Honigman advised Mackinac.

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