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First State Bank of Michigan

Decatur, MI · Cert 12893 · GTSB Financial Inc.

State charter, Fed member · FED · 2 branches

Q2 2026

$87.8MAssets
$63.8MLoans
$71.6MDeposits
$14.9MEquity
Loan mix
44%RE $22.1M53%C&I $26.7M4%Consumer $1.9MQ2 2025Q2 2026
Deposit mix
74%Interest-bearing $53.2M26%Noninterest $18.4MQ2 2025Q2 2026

NIM

4.15%Q2 ’245.30%Q2 ’255.26%Q2 ’26+44%-25%

Non-interest income vs. expense

3.15%Q2 ’245.83%Q2 ’254.70%Q2 ’26+94%-19%

Market Position · Traverse City, MI · 2026 SOD (annual) · 0.0% share · #13 of 13 inst. · $0.0B of $4.8B

9.6% Van Buren
0.0% Grand Traverse

Executive Summary

  • Earnings: ROA of -1.32%, up 17 bps year over year; NIM at 3.54%.
  • Asset quality: problem loans at 0.88% of loans (-22 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 13.89%, down 726 bps from a year ago.
  • Funding: loans stand at 89.16% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

-1.32%+17 bps YoY

Net Interest Margin (YTD, annualized)

3.54%-116 bps YoY

Efficiency Ratio (YTD, annualized)

128.47%+731 bps YoY

Tier 1 Leverage Ratio

13.89%-726 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets-1.48%-1.48%-1.48%-1.35%-1.32%+17 bps
Return on Equity-5.95%-6.00%-6.33%-7.23%-7.28%-133 bps
Net Interest Margin4.70%4.49%4.31%3.49%3.54%-116 bps
Efficiency Ratio121.15%120.87%119.92%126.37%128.47%+731 bps
Non-Interest Burden5.63%5.38%5.14%4.44%4.57%-107 bps
Growth
Asset Growth (YoY)15.88%20.95%35.04%30.61%40.97%+2,509 bps
Loan Growth (YoY)7.11%20.46%67.04%95.30%114.69%+10,759 bps
Deposit Growth (YoY)7.63%15.72%46.95%37.94%54.98%+4,735 bps
Asset Quality
Nonperforming Loans / Loans1.09%1.61%1.97%1.09%0.88%-22 bps
Net Charge-Offs / Loans0.09%0.05%0.03%0.00%0.00%-9 bps
Allowance / Loans1.34%1.31%1.23%1.19%0.95%-38 bps
Allowance Coverage of NPLs1.2x0.8x0.6x1.1x1.1x-0.1x
Capital
Tier 1 Leverage Ratio21.15%19.53%18.30%14.74%13.89%-726 bps
Total Risk-Based Capital21.15%19.53%18.30%14.74%13.89%-726 bps
Equity / Assets25.48%24.10%19.24%18.20%16.95%-852 bps
Liquidity & Funding
Loans / Deposits64.36%69.04%67.80%76.75%89.16%+2,480 bps
Liquid Assets / Assets32.31%28.58%29.72%22.32%11.80%-2,051 bps
CRE / Total Capitaln/a43.51%44.63%42.78%n/an/a