In the summer of 1995, the only banking institutions available to Ann Arbor and Ypsilanti residents were from outside the area. A group of prominent business people led by our Chairman of the Board, Bill Martin, decided to change that by organizing a local bank. The applications for a new bank charter and for deposit insurance were both filed that summer. The banking office at 125 S. Fifth Avenue in downtown Ann Arbor was purchased from Comerica Bank. Six million dollars of initial capital was raised in the local community from businesses and professionals and regulatory approval was granted.

On January 16, 1996 Bank of Ann Arbor opened its doors with 15 employees and one location. By the end of 1998, our staff had grown to 40 and assets surpassed $113 million.

Late in 1997, Bank of Ann Arbor opened a full service Trust Department with a team of individuals uniquely qualified to meet the wealth management and investment needs of our clients.

In 1999, we added 8,000 square feet to our downtown Ann Arbor location to meet the space needs for our growing trust, mortgage and commercial lending teams. We also added electronic banking services for businesses and expanded our ATM network.

The year 2001 saw the opening of our first branches. In February, Bank of Ann Arbor opened an office in the Traver Village Shopping Center at the corner of Nixon and Plymouth Roads on the northeast side of Ann Arbor. This office featured extended banking hours and a drive-up ATM. In April, 2001 the Bank opened a downtown Ypsilanti office on East Michigan Avenue in a newly renovated historical building in order to bring community banking to Ypsilanti.

In the fall of 2002 the Bank launched the Technology Industry Group to focus on the unique needs of the region's ever-growing technology and life science business community.

At the beginning of 2003, we opened a premier banking center at the corner of Stadium and Liberty in Ann Arbor. The new building replaced a string of failed restaurants and dramatically improved the look of the neighborhood. This branch has enjoyed significant growth over the years and trails only our Ellsworth Road and downtown banking centers in terms of total deposits.

In July, 2004 Tim Marshall joined the bank as our new President. In January, 2005 Tim added the title of CEO and became Bank of Ann Arbor's President and CEO. Despite a slowing economy assets grew to $464 million with trust assets under management increasing to $370 million. In October of 2005, construction began on a 17,000 square foot, state-of-the-art branch at Ellsworth and Airport Roads on Ann Arbor's southeast side. We continued to add experienced bankers to our team bringing our count to over 80 employees.

Our tenth anniversary in January, 2006 was the beginning of one of the most challenging years in the Bank's history. The Federal Reserve increased interest rates 17 times in a row negatively affecting the Bank's margin and earnings. Anticipating a continued challenging economy, our management team began to aggressively reduce operating expenses and implement new tools to manage credit and asset/liability risk effectively. A focus on quality lending opportunities and core deposit growth allowed Bank of Ann Arbor to record a very respectable net profit. In March, 2006 the Bank launched a marketing campaign that sums up what we do in one four-letter word: Help. "Bank of Ann Arbor Helps" is more than an ad slogan; it truly reflects the attitude of our team toward our clients and community.

Our Ellsworth office opened in the fall of 2006 and included customer friendly features like sit-down teller stations, a community room for meetings, a coffee bar and comfortable library-like sitting area with a fireplace.

In 2007, in spite of the continued weak economy and financial crisis faced by the banking industry, Bank of Ann Arbor remained profitable and assets grew to $475 million with trust assets under management surpassing $563 million. Technological improvements for the year included EasyDeposit, which allows commercial clients to make bank deposits without coming to the bank. Bank of Ann Arbor's "Helps" campaign won an Excellence in Advertising designation from Independent Banker magazine.

2008 presented one financial challenge after another, each seemingly greater than the last. Our bottom line: Bank of Ann Arbor was nicely profitable while the industry struggled in the throes of the Great Recession. Our state-of-the-art products and services included online deposit account opening, mobile banking from cell phones, continued growth of our remote deposit product, EasyDeposit, improvements in our online mortgage application system and the introduction of free business bill pay.

Bank of Ann Arbor created and launched Sonic Lunch, a weekly summer outdoor concert series in downtown Ann Arbor's Liberty Plaza in 2008 as an example of our strong support of the arts in our community. We sought help from other community partners including Ann Arbor's 107one as our media partner and Perich Advertising and Design as our branding and creative partner. We have continued Bank of Ann Arbor's Sonic Lunch on an annual basis and it has become an Ann Arbor tradition in a short period of time.

Despite the continued challenges the banking industry faced in 2009, Bank of Ann Arbor weathered the storm significantly better than most financial institutions. While many reduced staff, closed offices and eliminated benefits, we added nine new full-time experienced banking professionals. The year ended with $542 million in assets and trust assets under management of $633 million for a total surpassing $1.1 billion. Most importantly, earnings improved for Bank of Ann Arbor over the 2008 earnings during a year when over 40% of Michigan banks lost money.

In 2010, deposits grew to record levels, reaching $609 million, a 31% increase over 2009. The Trust and Investment area continued an impressive growth trend by finishing the year with nearly $670 million in assets under administration. Our sales and operations staff worked hard to deliver exceptional customer service despite little downtime and lots of regulatory changes to stay on top of throughout the year.

In Washtenaw County, Bank of Ann Arbor deposits grew by a greater degree than any other bank in Ypsilanti, and all but one of the other 16 banks in Ann Arbor. In fact, most of our competitors lost market share in 2010.

In May 2010 with the assistance of the FDIC, Bank of Ann Arbor acquired the deposits and most of the assets of New Liberty Bank in nearby Plymouth, Michigan. This became our first office outside of Washtenaw County, fittingly located at 1333 W. Ann Arbor Road in Plymouth and was completed without the need to raise additional capital.

Bank of Ann Arbor's continued strong performance throughout the economic downturn reflects our disciplined focus on the fundamentals, a strong credit culture, and the unwavering support of our shareholders, clients and communities that we serve. Our strong financial performance has enabled us to help more people and more businesses in more ways.

In 2011, more people and businesses moved their money to Bank of Ann Arbor than ever before. $77 million in deposits were added, for a total of $686 million. The FDIC, in its annual deposit survey, ranked Bank of Ann Arbor the fourth largest bank in Ann Arbor—up from seventh in 2010—thanks to our year-over-year increase in deposits.

We finished 2011 with an asset level exceeding $774 million, while many competitors shrank or retreated from the market altogether. Since 2010, bank assets increased by more than $230 million, or nearly 43%.

In addition to experiencing higher levels of interest income, our Trust and Investment Management Group and Retail Mortgage Department continued to generate exceptional levels of noninterest income in 2011. The Trust and Investment area funded over $36 million in new investments to manage. And for the third consecutive year, our mortgage team completed approximately $100 million in new residential mortgage loans. Earnings per share reached $7.55, up from $5.90 in 2010, resulting in return on shareholders' equity of approximately 13%. This put us in the top 10% of all banks across the country.

We used social media—most notably, Facebook and Twitter—to a significantly greater degree to enhance our relationships with both clients and prospective clients. Our first Facebook application, the Sweet 15 Local Charity Drive, was launched in early 2011 to mark the bank's 15th anniversary and served to bolster our long-time support of the area's nonprofit community. Through Sweet 15, our Facebook community grew from just a few hundred fans to over 16,000 in just 60 days. We cordially welcomed thousands of new friends into the Bank of Ann Arbor community, many of who have ties to very worthwhile local charities.

The success of Sweet 15 garnered national attention, too. It was highlighted at the national banking conference of Fiserv, the bank's core processing system; featured on the cover of Michigan Banker magazine; and earned the 2011 Community Bank Service Award from the Independent Community Bankers Association, a national organization supporting our industry.

Bank of Ann Arbor's strong financial performance continued in 2012, setting new records in deposits, assets, and net income. Deposits grew by 16%, up $107 million from the previous year. This growth in deposits fueled a growth in total assets to a record-level $891 million. Total assets have climbed by nearly $349 million or 64% since 2009. This performance is noteworthy as it is being delivered in a less than robust economy.

In 2012 we celebrated the successful completion of our fifth annual Bank of Ann Arbor Sonic Lunch program, a free summer concert series in Liberty Plaza. The attendance was at record-levels all summer highlighted by two epic performances from Mitch Ryder and Mayer Hawthorne who performed to a standing room only crowd at the Michigan Theater due to inclement weather. As we have done since the inception of the bank, the bank remains strongly committed to supporting the arts, culture, and health and human service needs in the communities we serve. Our list of nonprofit organizations that we assist now exceeds 200 organizations.

In January 2013, Bank of Ann Arbor acquired Ervin Leasing, a privately held national equipment lease and finance company founded in 1978 and headquartered in Ann Arbor, Michigan. To help Ervin grow the Bank supplied state of the art technology, a stable funding source and sales management resources. After an intensive eight-month branding evaluation we renamed this wholly owned subsidiary, UniFi Equipment Finance.

2013 was another outstanding year for Bank of Ann Arbor as we achieved our fourth consecutive year of record-level performance including a move to the second largest bank in Ann Arbor as measured by deposit market share. In addition, American Banker magazine named Bank of Ann Arbor as one of the Best Banks to Work for, finishing number 20 out of over 7,000 U.S. banks. Financial Management Consulting Group, which rates banks in the Midwest, named Bank of Ann Arbor the #1 performing bank in Michigan during 2013. Lastly, Crain's Detroit Business put Bank of Ann Arbor on their Honor Roll of healthiest employers in Michigan and Washtenaw County recognized the bank as a healthy workplace.

We added another location in early 2013 by transforming an empty, dated building into our newest state-of-the-art banking facility in downtown Saline. With the sale of another local community bank to an out-of-state bank in 2014, we will be the only community bank with a local office serving the Saline community.

In 2014 we began the process to completely remodel the downtown office and add over 8,300 square feet of additional space and staff moved in to the new section of the building in June of 2015. Our continued growth has fueled the need for additional space. We continue to invest in the future of the communities we serve.

As the Bank approaches $1 billion in assets, Bank of Ann Arbor is committed today to the same purpose for which it was founded in 1996. We remain locally owned and fiercely independent.

During 2014, the bank is a combined company of nearly $1.9 billion as the Trust and Investment area has grown to over $930 million in assets under administration and the bank has grown to over $950 million in assets with seven locations and 176 employees. Through our many years of growth and through the economic crisis, the Bank of Ann Arbor remained profitable and never lost its focus on our core values. Our growth is a reflection of what we strive to do each and every day: Help the businesses and families of Washtenaw County, and Plymouth, achieve their financial goals and help make all of the communities that we serve be a better place to live, work, and play.

Continued growth from new business and expanding existing relationships pushed deposits above $1 billion and total assets to $1.2 billion. We are now the second largest bank in Ann Arbor - only 3.5% behind Chase - with nearly 14% of market share in deposits.

For the second time in the last three years, the American Bankers Association deemed Bank of Ann Arbor one of the U.S.'s Top 50 Best Banks to Work For in 2015. We were also recognized by the Independent Community Bankers of America as one of the Top 50 Community Bank Leaders in Social Media; three of our team members were included in the Top 25 Community Bank Influencers on Twitter.

Our culture has also been positively influenced by our nationally recognized wellness program. Crain's Detroit Business magazine included Bank of Ann Arbor on its list of Healthiest Employers in Southeast Michigan. Jim Miller, our human resources director, was a speaker at a national wellness conference in which many prestigious companies participated, including Disney, American Airlines, Pfizer, and others.

In 2016, we're celebrating our 20-year anniversary. This milestone includes a new Bank of Ann Arbor logo, the design of which represents the approachable personalities of all of our team members, our brand's youthful spirit, and the entire bank's focus on the future.

In the summer of 2016 an extensive renovation and expansion of our main office at 125 South Fifth Avenue was completed. For downtown Ann Arbor, this is a significant investment in a prime piece of real estate.

We continue to work on the acquisition of the Bank of Birmingham. In order to complete the transaction, the bank needs the approval of the Federal Reserve, FDIC, and state of Michigan. We are diligently working through this process and anticipate, once all of the approvals are secured, a closing early in the first quarter of 2017. The management teams of both banks are simultaneously working closely together to formulate plans for continued and higher levels of success as a merged organization. There is a great deal of excitement at both banks as we look towards 2017 and beyond.