Northern Michigan Bank & Trust

Escanaba, MI · Cert 32436

FDIC · 7 branches

Q3 2017

$261.8MAssets

$175.4MLoans

$222.9MDeposits

$35.4MEquity

Loan mix

Deposit mix

NIM

Earnings: ROA of 1.12%, down 10 bps year over year; NIM at 3.95%.
Asset quality: problem loans at 2.22% of loans (+222 bps YoY), with net charge-offs at 0.04%.

Return on Assets (quarter, annualized)

1.12%-10 bps YoY

Net Interest Margin (quarter, annualized)

3.95%-27 bps YoY

Efficiency Ratio (quarter, annualized)

69.37%+294 bps YoY

Tier 1 Leverage Ratio

9.53%+34 bps YoY

Discrete quarter, annualized.

Metric	Q3 2016	Q4 2016	Q1 2017	Q2 2017	Q3 2017	YoY Δ	Trend
Earnings
Return on Assets	1.22%	0.92%	0.91%	0.97%	1.12%	-10 bps
Return on Equity	9.10%	6.86%	6.72%	7.20%	8.31%	-79 bps
Net Interest Margin	4.23%	4.01%	3.89%	3.95%	3.95%	-27 bps
Efficiency Ratio	66.43%	72.07%	70.88%	72.11%	69.37%	+294 bps
Non-Interest Burden	2.48%	2.60%	2.35%	2.56%	2.44%	-5 bps
Growth
Asset Growth (YoY)	3.13%	3.96%	-0.52%	3.75%	4.23%	+110 bps
Loan Growth (YoY)	3.61%	0.42%	0.33%	0.59%	4.84%	+122 bps
Deposit Growth (YoY)	-2.54%	-1.60%	-1.38%	3.70%	4.35%	+688 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	1.45%	1.72%	2.22%	+222 bps
Net Charge-Offs / Loans	0.25%	0.08%	0.08%	0.06%	0.04%	-21 bps
Allowance / Loans	0.20%	0.28%	0.41%	0.46%	0.51%	+30 bps
Allowance Coverage of NPLs	n/a	n/a	0.3x	0.3x	0.2x	n/a
Capital
Tier 1 Leverage Ratio	9.19%	9.55%	9.60%	9.65%	9.53%	+34 bps
Total Risk-Based Capital	11.47%	12.42%	12.38%	13.06%	13.19%	+171 bps
Equity / Assets	13.55%	13.35%	13.69%	13.37%	13.52%	-3 bps
Liquidity & Funding
Loans / Deposits	78.33%	76.68%	77.84%	76.47%	78.70%	+37 bps
Liquid Assets / Assets	0.55%	0.55%	0.75%	0.87%	1.64%	+109 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a