Exhibit 99.1

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED  CONSOLIDATED BALANCE SHEET

SEPTEMBER 30, 2014

(all amounts are in thousands, except per share data, unless otherwise indicated)

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2014

(all amounts are in thousands, except per share data, unless otherwise indicated)

NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSILDATED FINANCIAL INFORMATION

Note A—Basis of Presentation

The unaudited pro forma condensed consolidated financial information and explanatory notes show the impact on the historical financial condition and results of operations of Mackinac resulting from the Peninsula acquisition under the acquisition method of accounting. Under the acquisition method of accounting, the assets and liabilities of Peninsula were recorded by Mackinac at fair value as of the date the transaction was completed. The unaudited pro forma condensed consolidated statement of financial condition combines the historical financial information of Mackinac and Peninsula as of September 30, 2014, and assumes that the Merger was completed on that date. The unaudited pro forma condensed consolidated statements of operations for the nine month period ended September 30, 2014 gives effect to the Merger as if the transaction had been completed on January 1, 2014.

Since the transaction is recorded using the acquisition method of accounting, all loans are recorded at fair value, including adjustments for credit quality, and no allowance for credit losses is carried over to Mackinac’s balance sheet. In addition, certain nonrecurring costs associated with the Merger such as potential severance, professional fees, legal fees and conversion-related expenditures are expensed as incurred and not reflected in the unaudited pro forma condensed consolidated statements of operations.

While the recording of the acquired loans at their fair value will impact the prospective determination of the provision for loan and lease losses and the allowance for loan and lease losses, for purposes of the unaudited pro forma condensed consolidated statement of operations for the year ended September 30, 2014, Mackinac assumed no adjustments to the historical amount of Peninsula’s provision for loan losses. If such adjustments were estimated, there could be a reduction, which could be significant, to the historical amounts of Peninsula’s provision for loan losses presented.

Note B—Estimated Annual Cost Savings

Mackinac expects to realize cost savings and operational efficiencies from the Merger. These cost savings are reflected in the unaudited pro forma condensed consolidated financial information, but there can be no assurance the will be achieved in the amount, manner or timing currently contemplated.

Note C—Pro Forma Adjustments

The following pro forma adjustments have been reflected in the unaudited pro forma condensed consolidated financial information. All adjustments are based on current assumptions and valuations, which are subject to change.

(a)                                 Other liabilities were adjusted to reflect expensing of approximately $2.536 million of non-recurring merger related expenses that were incurred by Mackinac and Peninsula prior to closing.  The related tax effect of approximately $.642 million is reflected as an increase to other assets.  The non-recurring merger expenses consist of investment banking fees, legal fees, accounting fees, registration fees, contract termination fees, etc.  These expenses are not included in the Pro Forma Condensed Consolidated Income Statements because they are not expected to have a continuing impact on the combined entity.

(b)                                 Based on Mackinac’s initial evaluation of the acquired portfolio of loans, a fair value adjustment of $5.078 million was recorded, which includes both an interest rate component and a credit component.  The impact of the adjustment was an increase to interest income by approximately $.711 million for the nine months ended September 30, 2014.

(c)                                  The allowance for loan losses was adjusted to reflect the reversal of Peninsula’s recorded allowance.  Purchased loans acquired in a business combination are required to be recorded at fair value, and the recorded allowance for loan losses may not be carried over.

(d)                                 Fair value adjustment to the net book value of other real estate owned by Peninsula is $.600 million based on Mackinac’s initial evaluation of the portfolio.

(e)                                  Fair value adjustment to the net book value of investments owned by Peninsula is $.140 million.

(f)                                   Fair value adjustment to the net book value of fixed assets owned by Peninsula is $.120 million.

(g)                                  The adjustment of approximately $.951 million reflects deferred taxes associated with the adjustments to record the assets and liabilities of Peninsula at fair value using Mackinac’s statutory rate of 34%.

(h)                                 Based on Mackinac’s initial evaluation of core deposits, the identified core deposit intangible of $1.206 million will be amortized on a straight line basis over an estimated useful life of 10 years.  The amortization expense associated with the core deposit intangible was an increase to non-interest expense of $.091 million for the nine months ended September 30, 2014.

(i)                                     Goodwill of $4.134 million was generated as a result of the total purchase price and net assets acquired.  See the schedule below, “Pro Forma Allocation of Purchase Price” for the allocation of the purchase price to net assets acquired.  The adjustment has no impact on the Pro Forma Condensed Consolidated Income Statements.

(j)                                    Net impact to equity of transaction costs and purchase accounting adjustments.

(k)                                 Reflection on pre-close special dividend paid with excess capital by Peninsula to its shareholders.

(l)                                     To record the increase in borrowings at MFNC to finance the payment to those of Peninsula’s shareholders who elected for cash consideration.  This is estimated at 35% of shares outstanding at a per share price of $46.13.

(m)                             Common stock and additional paid in capital, retained earnings, and accumulated other comprehensive income were adjusted to reverse Peninsula’s historical stockholders’ equity balances to reflect the stock consideration issued, $7.934 million.  See the schedule below, “Pro Forma Allocation of Purchase Price,” for the allocation of the purchase price to net assets acquired.  The adjustment has no impact on the Pro Forma Condensed Consolidated Income Statements.

(n)                                 Accumulated other comprehensive income was adjusted to reverse Peninsula’s historical accumulated other comprehensive income balance.

(o)                                 Basic and weighted average common shares outstanding were adjusted to reverse Peninsula’s basic shares outstanding and to record shares of Mackinac’s stock issued to effect the transaction.

(p)                                 Represents interest expense related to cash consideration in the transaction.

(q)                                 Represents operational efficiencies and cost reductions created with the transaction that reduce salaries and benefits, data processing costs, and other overhead expenses.

(r)                                    Represents tax impact of pro forma income statement adjustments for the nine months ended September 30, 2014.

PRO FORMA ALLOCATION OF PURCHASE PRICE

(dollars in thousands, except per share data)