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Bank of Ann Arbor Financial Condition Overview
Current Quarterly Statement of Condition | 2007 Annual Report10 Things You Need to Know About Bank of Ann Arbor & the Banking Industry
President's Letter - October 2, 2008
As evidenced in all of the important bank performance categories below, Bank of Ann Arbor is well positioned to weather the economic downturn. Bank of Ann Arbor helps by staying financially healthy. Read our 2007 Annual Report to learn more.
Capital
Bank of Ann Arbor is considered a "well-capitalized" institution which is the highest designation provided by the FDIC. Our capital-to-asset ratio, at September 30, 2008, was 64% above the level needed to be considered a well-capitalized institution by the FDIC. All of our other capital ratios evaluated by the FDIC are similarly in the "well-capitalized" category.
Profitability
Bank of Ann Arbor continues to be profitable. The Bank posted earnings of $3.8 million in net income in 2007. Earnings through September 30, 2008 were $2,200,000.
Liquidity
The liquidity position of the bank remains excellent with a total basic surplus of over $89 million or 18.6% of total assets as of June 30, 2008. Our liquidity position is rated "low risk" by the Darling Consulting Group which completes an analysis on a quarterly basis for Bank of Ann Arbor as well as over 275 banks in the country.
Asset Size
Bank of Ann Arbor had combined bank and trust assets in excess of $1.0 billion at September 30, 2008.
Asset Quality
Bank of Ann Arbor does not have any sub-prime mortgage investments in its investment portfolio. Our mortgage department has always focused on providing conventional mortgage products to borrowers with the financial means to enjoy home ownership without difficulty. Comparing ourselves to all other banks in Michigan, our non-current assets to total assets at June 30, 2008 for Bank of Ann Arbor was 1.79%, which compares favorably to the Michigan bank average of 2.77%.
FDIC Insurance coverage
DDeposits in Bank of Ann Arbor are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor and for retirement accounts. This provides added protection to Bank customers. Mutual fund accounts and many other investments do not offer this protection.
Summary
In summary, as a local bank we enjoy doing business in our community, where we continue to make substantial contributions to make this a better place in which to live. This allows us the opportunity to have an in-depth knowledge of the market and a thorough understanding of the importance of a strong business relationship within our community. Our Board of Directors is actively involved in oversight and have a substantial financial stake in the success of the bank with an ownership, in combination with former directors and the senior management team, of over 40%. In addition, as of the end of September, our directors as a group have in excess of $8 million on deposit at the bank. The solid ownership percentage and substantial deposit level are an indication of the strong commitment and confidence our directors have in the financial strength of Bank of Ann Arbor.
Bank of Ann Arbor is profitable, well-capitalized, and maintains a solid liquidity position. Most importantly, you can contact us via phone, e-mail, or in-person to discuss our financial performance with knowledgeable representatives and even the CEO of Bank of Ann Arbor.
If you have any questions or want to learn more, feel free to contact us at 734-662-1600. Or read our 2007 Annual Report.
