Exhibit 99

PRESS RELEASE

For Release:		May 4, 2011
Nasdaq:		MFNC
Contact:		Investor Relations at (888) 343-8147
Website:		www.bankmbank.com

MACKINAC FINANCIAL CORPORATION
REPORTS FIRST QUARTER 2011 RESULTS

(Manistique, Michigan) — Mackinac Financial Corporation (Nasdaq: MFNC), the bank holding company for mBank (the “Bank”) today announced first quarter 2011 income of $.256 million or $.07 per share compared to net income of $3.526 million, or $1.03 per share for the first quarter of 2010. Operating results for the first quarter of 2010 included the recognition of a $3.500 million deferred tax benefit related to NOL carry-forwards. The Corporation’s primary asset, mBank, recorded net income of $.529 million

Some highlights for the quarter included:

•

Nonperforming assets at the end of the first quarter of 2011 totaled $15.045 million, a reduction of $1.080 million from 2010 year end balances.

•

In the first quarter of 2011, the corporation did not record a provision for loan losses as compared to the $.900 million provision recorded in the first quarter of 2010.

•

ORE write-downs/gains and losses of $.467 million

•

Core deposit growth of $25.024 million primarily in transactional accounts, accounting for $17.743 million of this growth.

•

A stable and improving net interest margin of 3.92% for the quarter.

•

SBA/USDA loan sale premium income of $.236 million with a solid pipeline of new loans for sale entering into the second quarter which should enable the company to exceed first quarter totals. We still see premium pricing in the 108% to 110% range on these transactions.

Margin Analysis

Net interest margin in the first quarter of 2011 increased to $4.141 million, 3.92%, compared to $4.022 million, or 3.51%, in the first quarter of 2010. The interest margin increase was largely due to decreased funding costs. Kelly W. George, President and Chief Executive Officer of mBank, stated, “In the first quarter of 2011, we experienced continued margin improvement from decreased rates on deposit funding, increases in low cost transactional accounts, and also our disciplined loan pricing, which can include floor rates with regard to variable rate 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.”

Loans and Non-performing Assets

Total loans at March 31, 2011 were $374.609 million, a .72% decrease from the $377.311 million at March 31, 2010 and down $8.477 million from year-end 2010 total loans of $383.086 million. George stated, “Loan growth in the first quarter was impacted by normal principal reduction and pay-downs. The $8.477 million in reductions included $2.384 million in SBA loan sales, and the move of $.800 million of nonperforming loans to OREO, along with a reduction of $1.4 million on another nonperforming loan relationship that was sold. Our first quarter new loan production was satisfactory given the seasonality of our business where the first quarter routinely is the slowest. In the first quarter, we had $16.8 million of production occurring in all regions, including $4.9 million in secondary market mortgage production. Our strongest region was the Upper Peninsula with $11.4 million total production.

The decrease in nonperforming assets in the first quarter is the result of aggressive remediation of nonperforming assets, problem borrowers and related workout programs. George, commenting on credit quality, stated “We continue to aggressively market our OREO properties and believe our aggressive write-downs reflect current market values, and will result in sales later this year. We remain highly focused on overall asset quality metrics given the still challenging overall Michigan economy but believe that things have begun to stabilize. We are encouraged by our Texas Ratio of 24.96% for the quarter, which is among the lowest of the 15 largest public banks headquartered in Michigan.”

Deposits

Total deposits of $400.783 million at March 31, 2011 were down 1.09% from deposits of $405.212 million on March 31, 2010 due to decreased levels of brokered deposits, which declined from $138.812 million on March 31, 2010, to $63.342 million on March 31, 2011. First quarter 2011 deposits were up $14.004 million from year-end 2010 deposits of $386.779 million. The overall increase in deposits for the first quarter of 2011 is comprised of a decrease in noncore deposits of $11.020 million which was offset with increased core deposits of $25.024 million. George, commenting on the increased core deposits, stated, “In the first quarter of 2011, we continued to grow core deposits at a steady rate. We will remain focused on this as a primary strategic objective to reduce our overall dependency on wholesale funding sources for future margin improvements and decreased regulatory costs.”

Noninterest Income/Expense

Noninterest income, at $.577 million in the first quarter of 2011, decreased $.230 million from the first quarter 2010 level of $.807 million. Noninterest income in the first quarter of 2010 includes $.215 million of security gains which the Corporation does not consider recurring or core earnings provider. The other most significant decrease for the 2011 first quarter was fees on deposit accounts, due mostly to lower overdraft fees in 2011, a trend that appears to be industry wide given heightened regulatory scrutiny, pending regulations and customers being more aware and diligent in managing their accounts.

Noninterest expense totaled $4.059 million in the first quarter of 2011, an increase of $.430 million, or 11.85% from the first quarter of 2010. Increased expenses in the first quarter continue to reflect the added cost of aggressive nonperforming asset remediation, along with an increase in FDIC insurance premiums of $.063 million. The expenses related to nonperforming assets were primarily write-downs and gains/losses on OREO of $.467 million. The Corporation continues to look for ways to control costs and remains below peer level in terms of salary and benefits and total operating expenses as a percentage of total assets.

Assets and Capital

Total assets of the Corporation at March 31, 2011 were $492.790 million, down 1.92% from the $502.427 million reported at March 31, 2010. First quarter 2011 total assets were up 2.94% from the $478.696 million of total assets at year-end 2010. Common Shareholders’ equity at March 31, 2011 totaled $43.340 million, or $12.67 per share, compared to $48.160 million, or $14.08 per share on March 31, 2010. The Corporation and the Bank are both “well-capitalized” with Tier 1 Capital at the Corporation of 9.70% and 8.54% at the Bank.

Paul D. Tobias, Chairman and Chief Executive Officer, concluded, “We believe that 2011 will be the year where MFNC begins to demonstrate the earning capability of the franchise as the credit environment and our credit metrics improve. In the 2011 first quarter we experienced good growth in core deposits. We expect good loan growth for the remainder of 2011, which will translate into fee income from sales of SBA/USDA loans, along with good balance sheet growth to enhance our net

interest margin. We have also begun to explore the merits of the Small Business Loan Fund as an inexpensive temporary source of capital and a source of repayment of our TARP funding.”

Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $490 million and whose common stock is traded on the NASDAQ stock market as “MFNC.” The principal subsidiary of the Corporation is mBank. Headquartered in Manistique, Michigan, mBank has 11 branch locations; seven in the Upper Peninsula, three in the Northern Lower Peninsula and one in Oakland County, Michigan. The Company’s banking services include commercial lending and treasury management products and services geared toward small to mid-sized businesses, as well as a full array of personal and business deposit products and consumer loans.

Forward-Looking Statements

This release contains certain forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “should,” “will,” and variations of such words and similar expressions are intended to identify forward-looking statements: as defined by the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current beliefs as to expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could cause a difference include among others: changes in the national and local economies or market conditions; changes in interest rates and banking regulations; the impact of competition from traditional or new sources; and the possibility that anticipated cost savings and revenue enhancements from mergers and acquisitions, bank consolidations, branch closings and other sources may not be fully realized at all or within specified time frames as well as other risks and uncertainties including but not limited to those detailed from time to time in filings of the Company with the Securities and Exchange Commission. These and other factors may cause decisions and actual results to differ materially from current expectations. Mackinac Financial Corporation undertakes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

						For The Period Ended
		March 31,				December 31,				March 31,
		2011				2010				2010
		(Unaudited)								(Unaudited)
Selected Financial Condition Data (at end of period):
Assets		$	492,790			$	478,696			$	502,427
Loans			374,609				383,086				377,311
Investment securities			37,543				33,860				36,841
Deposits			400,783				386,779				405,212
Borrowings			36,069				36,069				36,140
Common shareholders’ equity			43,340				43,176				48,160
Total shareholders’ equity			54,097				53,882				58,722
Selected Statements of Income Data:
Net interest income		$	4,141			$	16,385			$	4,022
Income (Loss) before taxes and preferred dividend			659				(3,918	)			300
Net income (Loss)			256				(1,160	)			3,526
Income (Loss) per common share — Basic			.07				(0.34	)			1.03
Income (Loss) per common share — Diluted			.07				(0.34	)			1.03
Weighted average shares outstanding			3,419,736				3,419,736				3,419,736
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin			3.92	%			3.66	%			3.51	%
Efficiency ratio			75.73				72.57				78.12
Return on average assets			.22				(0.23	)			2.81
Return on average common equity			2.40				(2.54	)			32.08
Return on average total equity			1.92				(2.06	)			25.95
Average total assets		$	478,861			$	502,993			$	508,495
Average common shareholders’ equity			43,147				45,568				44,577
Average total shareholders’ equity			53,870				56,171				55,109
Average loans to average deposits ratio			98.27	%			94.36	%			92.93	%
Common Share Data (at end of period):
Market price per common share		$	6.02			$	4.58			$	4.72
Book value per common share		$	12.67			$	12.63			$	14.08
Common shares outstanding			3,419,736				3,419,736				3,419,736
Other Data (at end of period):
Allowance for loan losses		$	6,184			$	6,613			$	4,737
Non-performing assets		$	15,045			$	16,125			$	17,619
Allowance for loan losses to total loans			1.65	%			1.73	%			1.26	%
Non-performing assets to total assets			3.05	%			3.37	%			3.51	%
Texas Ratio			24.96	%			26.66	%			27.75	%
Number of:
Branch locations			11				11				10
FTE Employees			108				110				103

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

		March 31,				December 31,				March 31,
		2011				2010				2010
(Dollars in thousands)		(Unaudited)								(Unaudited)
ASSETS
Cash and due from banks		$	41,715			$	22,719			$	19,359
Federal funds sold			12,000				12,000				36,000
Cash and cash equivalents			53,715				34,719				55,359
Interest-bearing deposits in other financial institutions			734				713				700
Securities available for sale			37,543				33,860				36,841
Federal Home Loan Bank stock			3,423				3,423				3,794
Loans:
Commercial			287,760				297,047				296,271
Mortgage			81,404				80,756				76,996
Installment			5,445				5,283				4,044
Total Loans			374,609				383,086				377,311
Allowance for loan losses			(6,184	)			(6,613	)			(4,737	)
Net loans			368,425				376,473				372,574
Premises and equipment			9,715				9,660				10,060
Other real estate held for sale			5,081				5,562				7,723
Other assets			14,154				14,286				15,376
TOTAL ASSETS		$	492,790			$	478,696			$	502,427
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest bearing deposits		$	39,269			$	41,264			$	30,356
NOW, money market, checking			154,420				134,703				109,374
Savings			17,691				17,670				20,675
CDs< $100,000			104,258				96,977				75,822
CDs> $100,000			21,803				22,698				30,173
Brokered			63,342				73,467				138,812
Total deposits			400,783				386,779				405,212
Borrowings:
Federal Home Loan Bank			35,000				35,000				35,000
Other			1,069				1,069				1,140
Total borrowings			36,069				36,069				36,140
Other liabilities			1,841				1,966				2,353
Total liabilities			438,693				424,814				443,705
Shareholders’ equity:
Preferred stock — No par value:
Authorized 500,000 shares, 11,000 shares issued and outstanding			10,757				10,706				10,562
Common stock and additional paid in capital — No par value
Authorized — 18,000,000 shares
Issued and outstanding — 3,419,736 shares			43,525				43,525				43,502
Accumulated earnings (deficit)			(705	)			(961	)			3,724
Accumulated other comprehensive income			520				612				934
Total shareholders’ equity			54,097				53,882				58,722
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	492,790			$	478,696			$	502,427

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

		Three Months Ended
		March 31,
		2011				2010
(Dollars in thousands except per share data)		(Unaudited)				(Unaudited)
INTEREST INCOME:
Interest and fees on loans:
Taxable		$	5,136			$	5,191
Tax-exempt			42				52
Interest on securities:
Taxable			282				397
Tax-exempt			7				7
Other interest income			33				40
Total interest income			5,500				5,687
INTEREST EXPENSE:
Deposits			1,219				1,457
Borrowings			140				208
Total interest expense			1,359				1,665
Net interest income			4,141				4,022
Provision for loan losses			—				900
Net interest income after provision for loan losses			4,141				3,122
OTHER INCOME:
Service fees			217				223
Net security gains			—				215
Income from loans sold			314				316
Other			46				53
Total other income			577				807
OTHER EXPENSE:
Salaries and employee benefits			1,824				1,720
Occupancy			365				345
Furniture and equipment			194				194
Data processing			176				189
Professional service fees			153				173
Loan and deposit			179				268
ORE writedowns and (gains) losses on sale			467				147
FDIC insurance assessment			285				222
Telephone			51				47
Advertising			88				72
Other			277				252
Total other expense			4,059				3,629
Income before provision for income taxes			659				300
Provision for (benefit of) income taxes			214				(3,411	)
NET INCOME		$	445			$	3,711
Preferred dividend and accretion of discount			189				185
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$	256			$	3,526
INCOME PER COMMON SHARE:
Basic		$	.07			$	1.03
Diluted		$	.07			$	1.03

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
LOAN PORTFOLIO AND CREDIT QUALITY

(Dollars in thousands)

Loan Portfolio Balances (at end of period):

		March 31,				December 31,				March 31,
		2011				2010				2010
Commercial Loans
Real estate — operators of nonresidential buildings		$	58,132			$	58,114			$	49,753
Hospitality and tourism			35,016				37,737				44,820
Operators of nonresidential buildings			17,091				16,598				13,170
Real estate — operators of nonresidential buildings			15,518				15,857				21,529
Other			138,565				135,411				138,964
Total Commercial Loans			264,322				263,717				268,236
1-4 family residential real estate			75,663				75,074				70,087
Consumer			5,445				5,283				4,044
Construction
Commercial			23,438				33,330				28,035
Consumer			5,741				5,682				6,909
Total Loans		$	374,609			$	383,086			$	377,311

Credit Quality (at end of period):

		March 31,				December 31,				March 31,
		2011				2010				2010
Nonperforming Assets :
Nonaccrual loans		$	9,859			$	5,921			$	9,027
Loans past due 90 days or more			—				—				—
Restructured loans			105				4,642				869
Total nonperforming loans			9,964				10,563				9,896
Other real estate owned			5,081				5,562				7,723
Total nonperforming assets		$	15,045			$	16,125			$	17,619
Nonperforming loans as a % of loans			2.66	%			2.76	%			2.62	%
Nonperforming assets as a % of assets			3.05	%			3.37	%			3.51	%
Reserve for Loan Losses:
At period end		$	6,184			$	6,613			$	4,737
As a % of loans			1.65	%			1.73	%			1.26	%
As a % of nonperforming loans			62.06	%			62.61	%			47.87	%
As a % of nonaccrual loans			62.72	%			111.69	%			52.48	%
Texas ratio			24.96	%			26.66	%			27.75	%
Charge-off Information (year to date):
Average loans		$	380,066			$	384,347			$	84,640
Net charge-offs			429				5,112				1,389
Charge-offs as a % of average loans			.11	%			1.33	%			.36	%

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS

		QUARTER ENDED
		(Unaudited)
		March 31,				December 31,				September 30,				June 30,				March 31,
		2011				2010				2010				2010				2010
BALANCE SHEET (Dollars in thousands)
Total loans		$	374,609			$	383,086			$	382,727			$	384,839			$	377,311
Allowance for loan losses			(6,184	)			(6,613	)			(5,437	)			(6,371	)			(4,737	)
Total loans, net			368,425				376,473				377,290				378,468				372,574
Intangible assets			—				—				—				—				—
Total assets			492,790				478,696				499,006				500,774				502,427
Core deposits			315,638				290,614				287,055				271,026				236,227
Noncore deposits (1)			85,145				96,165				117,469				134,758				168,985
Total deposits			400,783				386,779				404,524				405,784				405,212
Total borrowings			36,069				36,069				36,069				36,140				36,140
Common shareholders’ equity			43,340				43,176				45,329				45,621				48,160
Total shareholders’ equity			54,097				53,882				55,987				56,231				58,722
Total shares outstanding			3,419,736				3,419,736				3,419,736				3,419,736				3,419,736
AVERAGE BALANCES (Dollars in thousands)
Assets		$	478,861			$	488,320			$	512,335			$	502,942			$	508,495
Loans			380,066				385,296				385,268				382,169				384,640
Deposits			386,743				393,266				416,847				405,449				413,897
Common equity			43,147				44,339				46,041				47,542				44,577
Equity			53,870				55,015				56,668				57,889				55,109
INCOME STATEMENT (Dollars in thousands)
Net interest income		$	4,141			$	4,276			$	4,064			$	4,023			$	4,022
Provision for loan losses			—				1,800				1,000				2,800				900
Net interest income after provision			4,141				2,476				3,064				1,223				3,122
Total other income			577				747				648				593				807
Total other expense			4,059				4,037				3,601				5,330				3,629
Income before taxes			659				(814	)			111				(3,514	)			300
Provision for (benefit of) income taxes			214				1,093				30				(1,212	)			(3,411	)
Net income			445				(1,907	)			81				(2,302	)			3,711
Preferred dividend expense			189				185				185				186				185
Net income (loss) available to common shareholders		$	256			$	(2,092	)		$	(104	)		$	(2,488	)		$	3,526
PER SHARE DATA
Earnings		$	.07			$	(.61	)		$	(.03	)		$	(.73	)		$	1.03
Book value per common share			12.67				12.63				13.26				13.34				14.08
Market value, closing price			6.02				4.58				5.10				6.50				4.72
ASSET QUALITY RATIOS
Nonperforming loans/total loans			2.66	%			2.76	%			2.94	%			2.87	%			2.62	%
Nonperforming assets/total assets			3.05				3.37				3.41				3.34				3.51
Allowance for loan losses/total loans			1.65				1.73				1.42				1.66				1.26
Allowance for loan losses/nonperforming loans			62.06				62.61				48.34				57.69				47.87
Texas ratio (2)			24.96				26.66				27.68				26.71				27.76
PROFITABILITY RATIOS
Return on average assets			.22	%			(1.70	)%			(.08	)%			(1.98	)%			2.81	%
Return on average common equity			2.40				(18.72	)			(.90	)			(20.99	)			32.08
Return on average equity			1.92				(15.09	)			(.73	)			(17.24	)			25.95
Net interest margin			3.92				3.88				3.69				3.56				3.51
Efficiency ratio			75.73				65.05				75.98				76.04				78.12
Average loans/average deposits			98.27				97.97				92.42				94.26				92.93
CAPITAL ADEQUACY RATIOS
Tier 1 leverage ratio			9.70	%			9.25	%			9.22	%			9.38	%			9.85	%
Tier 1 capital to risk weighted assets			11.61				11.36				11.73				11.65				12.48
Total capital to risk weighted assets			12.86				12.62				12.98				12.91				13.69
Average equity/average assets			11.25				11.27				11.06				11.51				10.84
Tangible equity/tangible assets			11.25				11.27				11.06				11.51				10.84

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS