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Honor Bank

Honor, MI · Cert 8165 · Honor Bcorp Inc.

State charter, non-member · FDIC · 8 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B 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 under $1B in assets (n=581 to 629). 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

30

Q2 2024Q2 2026peer median (50)

Asset Quality

53

Q2 2024Q2 2026peer median (50)

Profitability

72

Q2 2024Q2 2026peer median (50)

Liquidity

43

Q2 2024Q2 2026peer median

Efficiency

66

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

Honor Bank

Honor, MI · Cert 8165 · Honor Bcorp Inc.

State charter, non-member · FDIC · 8 branches

Q2 2026

$442.7MAssets
$359.4MLoans
$384.1MDeposits
$41.5MEquity
Loan mix
85%RE $287.5M14%C&I $48.8M0%Consumer $0.8MQ2 2025Q2 2026
Deposit mix
70%Interest-bearing $270.0M30%Noninterest $114.1MQ2 2025Q2 2026

NIM

4.80%Q2 ’245.11%Q2 ’255.32%Q2 ’26+2%+8%

Non-interest income vs. expense

2.67%Q2 ’242.72%Q2 ’252.80%Q2 ’26+4%+5%

Market Position · Traverse City, MI · 2026 SOD (annual) · 6.0% share · #6 of 13 inst. · $0.3B of $4.8B

40.4% Benzie
3.2% Grand Traverse
19.0% Manistee
3.9% Wexford

Executive Summary

  • Earnings: ROA of 1.34%, up 15 bps year over year; NIM at 3.96%.
  • Asset quality: problem loans at 0.32% of loans (+19 bps YoY), with net charge-offs at 0.01%.
  • Capital: tier 1 leverage ratio of 9.77%, up 27 bps from a year ago.
  • Funding: loans stand at 93.58% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.34%+15 bps YoY

Net Interest Margin (YTD, annualized)

3.96%+30 bps YoY

Efficiency Ratio (YTD, annualized)

62.03%-215 bps YoY

Tier 1 Leverage Ratio

9.77%+27 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.19%1.23%1.19%1.43%1.34%+15 bps
Return on Equity12.84%13.25%12.70%14.66%13.94%+110 bps
Net Interest Margin3.66%3.66%3.72%3.98%3.96%+30 bps
Efficiency Ratio64.19%63.06%61.17%62.59%62.03%-215 bps
Non-Interest Burden2.14%2.08%2.03%2.30%2.25%+11 bps
Growth
Asset Growth (YoY)6.23%2.92%0.72%0.78%5.10%-112 bps
Loan Growth (YoY)6.12%4.75%3.51%2.76%7.18%+107 bps
Deposit Growth (YoY)3.85%2.14%0.12%1.05%4.42%+57 bps
Asset Quality
Nonperforming Loans / Loans0.13%0.18%0.20%0.17%0.32%+19 bps
Net Charge-Offs / Loans-0.02%-0.02%-0.01%0.04%0.01%+3 bps
Allowance / Loans1.25%1.25%1.55%1.50%1.45%+20 bps
Allowance Coverage of NPLs9.7x7.1x7.9x8.6x4.6x-5.1x
Capital
Tier 1 Leverage Ratio9.51%9.49%9.31%9.85%9.77%+27 bps
Total Risk-Based Capital13.01%13.09%13.15%13.53%12.60%-40 bps
Equity / Assets9.38%9.37%9.62%9.94%9.36%-1 bps
Liquidity & Funding
Loans / Deposits91.17%86.71%89.46%91.29%93.58%+241 bps
Liquid Assets / Assets12.81%12.79%12.15%11.99%10.92%-189 bps
CRE / Total Capitaln/a482%476%468%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

Honor Bank

Honor, MI · Cert 8165 · Peer group: banks under $1B in assets (n=581-629) · Honor Bcorp Inc.

State charter, non-member · FDIC · 8 branches

Q2 2026

$442.7MAssets
$359.4MLoans
$384.1MDeposits
$41.5MEquity

Executive Summary

  • Strongest standing: return on equity outperforms 78% of banks under $1B in assets (rank 141 of 629).
  • Widest gap: tier 1 capital ratio trails 73% of banks under $1B in assets (rank 462 of 629).
  • Overall: at or above the peer median on 5 of 9 directional measures.

Return on Assets

1.29%

Rank 209 of 629

Net Interest Margin

3.96%

Rank 183 of 629

Efficiency Ratio

62.03%

Rank 212 of 629

Equity / Assets

9.36%

Rank 442 of 629

Non-interest income vs. expense

$2.3M$11.9MINCOMEEXPENSE
Unfavorable gap of $9.5M · efficiency ratio beats 66% of banks under $1B in assets
Bank 62.03%Peer median 67.8%Q2 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.29%0.60%1.01%1.45%Beats 67%209 / 629
Return on Equity13.75%5.38%9.30%13.28%Beats 78%141 / 629
Net Interest Margin3.96%3.03%3.54%4.05%Beats 71%183 / 629
Efficiency Ratio62.03%58.35%67.79%79.08%Beats 66%212 / 629
Asset Quality
Nonperforming Loans / Loans0.32%0.09%0.46%1.20%Beats 57%253 / 581
Net Charge-Offs / Loans0.01%n/a0.01%0.06%Beats 48%305 / 581
Capital
Tier 1 Capital Ratio11.35%11.24%13.84%18.77%Beats 27%462 / 629
Total Risk-Based Capital Ratio12.60%11.58%14.43%19.66%Beats 34%413 / 629
Equity / Assets9.36%9.09%10.65%13.80%Beats 30%442 / 629
Liquidity & Funding
Loans / Deposits93.58%67.24%80.90%93.48%75th pctl147 / 594
Loans / Assets81.18%53.31%67.71%78.15%84th pctl103 / 629
Brokered Deposits / Depositsn/aNot reported for this institution