Mackinac Financial (MFNC) in Manistique, Mich., has agreed to buy Peninsula Financial in Ishpeming, Mich.

The $584 million-asset Mackinac will pay $13.3 million in cash and stock for the $132 million-asset Peninsula. The transaction is expected to close late in the third quarter or early in the fourth quarter.

"Our approach over the past couple of years has been to grow organically through core banking activities with good loans and deposits and remain opportunistic with regard to acquisitions," Paul Tobias, Mackinac's chairman, said in a press release Friday. "We believe our patience and diligence has been rewarded with this opportunity."

Mackinac said the deal should start adding to its earnings this year. The acquisition is expected to boost next year's earnings by 24 cents a share and 2016 profit by 35 cents a share.

Mackinac was advised by River Branch Capital and Honigman Miller Schwartz and Cohn. Peninsula was advised by Wipfli and Godfrey & Kahn.

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