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Bank of Ann Arbor

Ann Arbor, MI · Cert 34120 · Arbor Bcorp Inc.

State charter, non-member · FDIC · 18 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks $1B-$10B in assets3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks $1B-$10B in assets (n=322 to 328). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

74

Q2 2024Q2 2026peer median (50)

Asset Quality

55

Q2 2024Q2 2026peer median (50)

Profitability

82

Q2 2024Q2 2026peer median (50)

Liquidity

57

Q2 2024Q2 2026peer median

Efficiency

89

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Bank of Ann Arbor

Ann Arbor, MI · Cert 34120 · Arbor Bcorp Inc.

State charter, non-member · FDIC · 18 branches

Q2 2026

$3.5BAssets
$2.7BLoans
$2.8BDeposits
$499.0MEquity
Loan mix
71%RE $1.7B28%C&I $0.7B1%Consumer $0.0BQ3 2024Q2 2026
Deposit mix
70%Interest-bearing $2.0B30%Noninterest $0.9BQ3 2024Q2 2026

Market Position · Ann Arbor, MI · 2026 SOD (annual) · 13.4% share · #2 of 15 inst. · $1.6B of $12.0B

13.4% Washtenaw
13.6% Livingston
0.5% Oakland
0.3% Wayne

Executive Summary

  • Earnings: ROA of 1.98%, up 25 bps year over year; NIM at 4.15%.
  • Asset quality: problem loans at 0.27% of loans (+11 bps YoY), with net charge-offs at 0.08%.
  • Capital: tier 1 leverage ratio of 13.17%, up 91 bps from a year ago.
  • Funding: loans stand at 93.77% of deposits as of Q2 2026.

Return on Assets (YTD, annualized)

1.98%+25 bps YoY

Net Interest Margin (YTD, annualized)

4.15%+19 bps YoY

Efficiency Ratio (YTD, annualized)

44.40%-238 bps YoY

Tier 1 Leverage Ratio

13.17%+91 bps YoY

NIM

5.30%Q2 ’245.45%Q2 ’255.42%Q2 ’26+4%+5%

Non-interest income vs. expense

2.20%Q2 ’242.11%Q2 ’252.12%Q2 ’26-6%-5%

Year to date, annualized, through each quarter.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.69%1.58%1.69%1.73%1.79%1.72%1.91%1.98%+25 bps
Return on Equity12.85%11.94%12.47%12.71%13.10%12.47%13.28%13.82%+111 bps
Net Interest Margin3.82%3.88%3.94%3.96%3.94%4.09%4.17%4.15%+19 bps
Efficiency Ratio49.77%52.67%47.44%46.78%46.40%50.85%44.49%44.40%-238 bps
Non-Interest Burden1.59%1.76%1.53%1.52%1.49%1.74%1.47%1.45%-7 bps
Growth
Asset Growth (YoY)2.34%3.16%6.64%4.88%4.73%4.87%2.63%6.31%+143 bps
Loan Growth (YoY)6.32%4.95%4.04%5.75%5.72%7.64%5.41%-1.19%-694 bps
Deposit Growth (YoY)2.14%1.59%6.21%8.17%5.20%5.49%1.38%6.89%-128 bps
Asset Quality
Nonperforming Loans / Loans0.07%0.20%0.18%0.16%0.25%0.26%0.35%0.27%+11 bps
Net Charge-Offs / Loans-0.05%-0.04%0.06%0.04%0.10%0.08%0.04%0.08%+3 bps
Allowance / Loans1.09%1.12%1.18%1.19%1.19%1.16%1.22%1.23%+5 bps
Allowance Coverage of NPLs16.4x5.7x6.5x7.2x4.8x4.5x3.5x4.5x-2.8x
Capital
Tier 1 Leverage Ratio11.70%12.05%11.89%12.26%12.22%12.91%12.86%13.17%+91 bps
Total Risk-Based Capital13.26%13.46%13.67%13.67%14.15%14.33%14.69%15.42%+175 bps
Equity / Assets13.39%13.55%13.48%13.75%14.03%14.24%14.45%14.27%+51 bps
Liquidity & Funding
Loans / Deposits95.52%97.40%94.84%101.44%95.99%99.38%98.61%93.77%-767 bps
Liquid Assets / Assets10.02%9.06%9.81%6.85%8.49%7.88%7.20%12.20%+535 bps
CRE / Total Capitaln/an/an/an/a356%344%340%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Bank of Ann Arbor

Ann Arbor, MI · Cert 34120 · Peer group: banks $1B-$10B in assets (n=322-328) · Arbor Bcorp Inc.

State charter, non-member · FDIC · 18 branches

Q2 2026

$3.5BAssets
$2.7BLoans
$2.8BDeposits
$499.0MEquity

Executive Summary

  • Strongest standing: return on assets outperforms 91% of banks $1B-$10B in assets (rank 30 of 328).
  • Widest gap: net charge-offs / loans trails 61% of banks $1B-$10B in assets (rank 199 of 322).
  • Overall: at or above the peer median on 8 of 9 directional measures.

Return on Assets

1.92%

Rank 30 of 328

Net Interest Margin

4.15%

Rank 46 of 328

Efficiency Ratio

44.72%

Rank 36 of 328

Equity / Assets

14.27%

Rank 31 of 328

Non-interest income vs. expense

$22.6M$71.4MINCOMEEXPENSE
Unfavorable gap of $48.8M · efficiency ratio beats 89% of banks $1B-$10B in assets
Bank 44.72%Peer median 59.6%Q2 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRank8-Qtr TrendPeer Position
Earnings
Return on Assets1.92%0.91%1.22%1.52%Beats 91%30 / 328
Return on Equity13.44%8.43%11.45%14.43%Beats 68%106 / 328
Net Interest Margin4.15%3.03%3.45%3.83%Beats 86%46 / 328
Efficiency Ratio44.72%51.61%59.56%67.53%Beats 89%36 / 328
Asset Quality
Nonperforming Loans / Loans0.27%0.24%0.51%1.03%Beats 71%95 / 322
Net Charge-Offs / Loans0.05%0.01%0.03%0.10%Beats 39%199 / 322
Capital
Tier 1 Capital Ratio14.27%11.75%13.15%15.47%Beats 65%115 / 328
Total Risk-Based Capital Ratio15.42%12.63%14.15%16.46%Beats 67%109 / 328
Equity / Assets14.27%9.15%10.33%12.01%Beats 91%31 / 328
Liquidity & Funding
Loans / Deposits93.77%76.63%87.92%95.36%70th pctl96 / 323
Loans / Assets76.23%65.18%74.15%79.98%60th pctl132 / 328
Brokered Deposits / Depositsn/aNot reported for this institution