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Huron Valley Bancorp, Inc. Reports Q3 Results for 2016

Milford, Michigan – Third quarter net income was $280,000 or $0.34 per share, compared to $231,000 or $0.28 per share for Q3 2015. Year-to-date net income for 2016 was $724,000 or $0.88 per share, compared with 2015's $734,000 or $0.89 per share. The slight decrease in year-to-date net income is the result of increased expenses related to the repayment of the SBLF Preferred Stock in January 2016 and ongoing interest expense associated with the new debt, and stock transaction-related expenses. In addition, net interest margin is down based on the prevailing lower interest rate market over the last 12 months, yet it still remains above 4.0%. The significant increase in return on average equity (ROAE) of 11.38% for the quarter, reflects lower capital in 2016 due to the repayment of the SBLF Preferred Stock.

As of 9/30/2016

  • Q3 net income $280,000 or $0.34 per share, (Q3 2015 was $231,000 or $0.28 per share)
  • After tax return on average equity (ROAE) was 11.38% for the quarter, compared to 8.01% for Q3 2015
  • Return on average assets (ROAA) was 0.88% for the quarter, compared to 0.84% in Q3 2015
  • Efficiency ratio at 69.29% for the quarter, compared to 69.31% for Q3 2015
  • Net interest margin at 4.02% for the quarter, compared to 4.27% for Q3 2015
  • Total assets $125,543,000 (12% increase from Q3 2015)
  • Total loans $110,652,000 (13% increase from Q3 2015)
  • Total deposits $112,845,000 (13% increase from Q3 2015)
  • Past due loans over 30 days at 0.2% of total loans
  • Continued 5 star rating from BauerFinancial, Inc.

Deposit and asset growth remains strong with growth in demand deposits, savings, and certificates of deposits. The Bancorp's total assets ended the quarter at $125,543,000, an increase in 13% from the Q3 2015. Loan activity has slowed from previous years, yet still represents good core growth at 4.6% year-to date and 13.0% year-over year. Asset quality remains strong at only 0.20% past due loans over 30 days.

Recently released deposit rankings for commercial banks show Huron Valley State Bank is ranked highest in market share of deposits for all banks in the Milford market (Source: FDIC Summary of Deposits as of 6/30/16). "The market share results are a combination of the strong commitment from the board and management team, the hard work and dedication from our employees, and doing what we do best, serving the community," said Jack Shubitowski, President and CEO.

The bank has once again been recognized as a superior 5-Star rated bank by BauerFinancial, Inc. of Coral Gables, Florida, the nation's leading bank rating and research firm. To earn this rating Huron Valley State Bank must report strong capital levels and have a solid loan portfolio with negligible levels of delinquent loans. Its 5-Star Superior rating of Huron Valley State Bank denotes the highest level of strength and performance that a bank can receive.

Certain statements in this announcement contain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates," and variations of these words and similar expressions are intended to identify forward-looking statements. Forwarding looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors.

All forward looking statements speak only as of the date of this press release. All subsequent written and oral forward-looking statements attributable to the company or any person acting on the Corporation's behalf are qualified by the cautionary statements in this press release. The Corporation does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

Headquartered in Milford, Huron Valley Bancorp, Inc. is the parent company of Huron Valley State Bank. The Bank offers a full range of checking and savings accounts, certificates of deposit, consumer loans, commercial loans and other financial services. The Milford branch is located at 130 S. Milford Rd. in Milford. Call (248) 684-9626. The Highland branch is located at 2920 E. Highland Rd. in Highland. Call (248) 887-9900. The common stock of Huron Valley Bancorp, Inc. is listed on the NASDAQ Global Market System under the symbol "HVLM".

Awarded June 2014

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