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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

$3.5BAssets
$2.7BLoans
$2.8BDeposits
$499.0MEquity
Loan mix
71%RE $1.7B28%C&I $0.7B1%Consumer $0.0BQ2 2025Q2 2026
Deposit mix
70%Interest-bearing $2.0B30%Noninterest $0.9BQ2 2025Q2 2026

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%

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.

Financial Results

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

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.73%1.79%1.72%1.91%1.98%+25 bps
Return on Equity12.71%13.10%12.47%13.28%13.82%+111 bps
Net Interest Margin3.96%3.94%4.09%4.17%4.15%+19 bps
Efficiency Ratio46.78%46.40%50.85%44.49%44.40%-238 bps
Non-Interest Burden1.52%1.49%1.74%1.47%1.45%-7 bps
Growth
Asset Growth (YoY)4.88%4.73%4.87%2.63%6.31%+143 bps
Loan Growth (YoY)5.75%5.72%7.64%5.41%-1.19%-694 bps
Deposit Growth (YoY)8.17%5.20%5.49%1.38%6.89%-128 bps
Asset Quality
Nonperforming Loans / Loans0.16%0.25%0.26%0.35%0.27%+11 bps
Net Charge-Offs / Loans0.04%0.10%0.08%0.04%0.08%+3 bps
Allowance / Loans1.19%1.19%1.16%1.22%1.23%+5 bps
Allowance Coverage of NPLs7.2x4.8x4.5x3.5x4.5x-2.8x
Capital
Tier 1 Leverage Ratio12.26%12.22%12.91%12.86%13.17%+91 bps
Total Risk-Based Capital13.67%14.15%14.33%14.69%15.42%+175 bps
Equity / Assets13.75%14.03%14.24%14.45%14.27%+51 bps
Liquidity & Funding
Loans / Deposits101.44%95.99%99.38%98.61%93.77%-767 bps
Liquid Assets / Assets6.85%8.49%7.88%7.20%12.20%+535 bps
CRE / Total Capitaln/a356%344%340%n/an/a