It is the mission of Bank of Ann Arbor to be a dynamic, growing and sustainable community bank that is the premier financial institution within the markets
it operates; it will be owned by individuals in its markets, managed locally, and responsive to the needs of its communities. The Bank will serve and
partner with its customers and communities to achieve their financial goals through high quality products delivered by energized employees and through
community service comprised of donations, time, and leadership. Our shareholders will achieve superior long-term value; our employees are valued and
will work in a culture that invests in their development and rewards their positive contributions.
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
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 whom 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
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 will begin the process to completely remodel the downtown office and add over 8,300 square feet of additional space. 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.
Bank of Ann Arbor is a wholly owned subsidiary of Arbor Bancorp, Inc., a locally owned and managed financial service
holding company. No stock is available for sale or purchase at this time. Current shareholders may contact us at
734-662-1600 for further information.
Code of Conduct
The Bank of Ann Arbor Board of Director's Code of Conduct
is available for review.