MANISTIQUE — Nicolet National Bank, headquartered in Green Bay, Wis., will expand its reach into Michigan with the acquisition of Mackinac Financial Corp., parent company of mBank, for a mix of cash and stock valued at $248 million.

“The acquisition of mBank is an important step in Nicolet’s planned growth,” said Mike Daniels, president and CEO of Nicolet National Bank. “This deal is not about expanded geographies but rather about the characteristics of the communities we will serve. Together we will combine two organizations that understand the positive impact that a strong community bank can make. We look forward to becoming an integral part of the Upper Peninsula and northern Michigan.”

Manistique-based mBank currently operates 28 branches, most of which are concentrated in the Upper Peninsula and northern Michigan. It also operates seven branches in northern Wisconsin, several of which it absorbed via acquisitions in the past five years.

The company acquired First National Bank of Eagle River in January 2016, First National Bank of Niagara in May 2016 and Lincoln Community Bank in June 2018.

Eagle River is the only community where Nicolet and mBank both have branches. Nicolet said it intends to close its location at 325 W. Pine St. and move operations into mBank’s branch at 400 E. Wall St.

“On behalf of our board of directors, I am pleased to announce our merger into the Nicolet family,” said Paul Tobias, chairman and CEO of Mackinac. “We have found a strategic partner that is a true community bank with deep commitments to the markets we serve. The market cultures of our respective organizations mesh well, and the greater lending access will strengthen our value to current and prospective customers. This deal represents a fair transaction that unlocks shareholder value for us both.”

Nicolet will give mBank customers access to wealth management services that mBank does not provide, while Nicolet’s size — with roughly three times the assets mBank has under management — will allow mBank to provide larger loans to businesses, said Kelly George, mBank president and CEO.

Under the deal, Mackinac Financial stockholders will receive 0.22 shares of Nicolet stock and a cash payment of $4.64 per share of Mackinac Financial stock. The cash amount was based on Nicolet’s share price of $84.40 when stock markets closed April 9.

The acquisition has been approved by the companies’ boards of directors, but still is subject to regulatory approval and shareholder votes. Pending approvals, executives at both banks expect to complete the deal in the third quarter.

Combined, the two banks would have assets of $6.1 billion, deposits of $5.2 billion and loans of $3.9 billion, with mBank accounting for about 25% of Nicolet’s year-end assets.

This will be Nicolet’s fifth acquisition in the past six years, the Green Bay Press-Gazette reported.