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 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.
On January 16, 1996 Bank of Ann Arbor opened its doors with 15 employees and one location.
Bank of Ann Arbor's rapid growth necessitated two additional stock offerings in the first three years totaling $5.4 million with both of these offerings
sold only to customers of the bank. The offerings sold out quickly.
Late in 1997, Bank of Ann Arbor opened a full service Trust Department in response to the strong demand from our clients.
By the end of 1998, our staff had grown to 40 along with assets of $113 million.
In 1999, we added 8,000 square feet to our downtown Ann Arbor location to meet the space needs for our growing mortgage and commercial lending teams. We
also added electronic banking services for businesses and expanded our ATM network.
Our five year anniversary in 2000 saw us hitting the $186 million asset mark with over $143 million in assets under management by our Trust and Investment
The year 2001 saw the opening of our first branches. In February, an office opened 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 our downtown Ypsilanti office opened on
East Michigan Avenue in a newly renovated historical building in order to bring community banking to Ypsilanti.
Our third banking office opened in the late spring of 2002 on Washtenaw Avenue, across from the busy Arborland shopping center. In the fall of 2002, the
Bank launched the Technology Industry Group to focus on the unique needs of the region's growing technology and life science business community. Also in
2002 we teamed up with a pair of experienced mortgage professionals to launch our Wholesale Mortgage Division.
At the beginning of 2003, our much-anticipated office at the corner of Stadium and Liberty in Ann Arbor opened. The new building replaced a string of failed
restaurants and dramatically improved the look of the corner. A refinance boom started for our mortgage team with the dramatic drop of home loan rates.
June 2004 saw the start of the yield curve flattening with the Federal Reserve increasing short-term interest rates over the next 17 consecutive meetings.
Bank of Ann Arbor launched a Private Banking group to provide dedicated services to area professionals. Together our local Mortgage team and Wholesale
Division closed over $415 million in loans, taking advantage of the continued low mortgage rates.
In January 2005, Timothy G. Marshall became Bank of Ann Arbor's President and CEO. Despite a slowing economy assets grew to $464 million with trust assets
under management of $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. Focus on quality lending opportunities
and core deposit growth ended the year with a very respectable net profit. In March an integrated marketing campaign launched 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 for cold winter days.
In 2007, when "sub-prime loans" and "weak Michigan economy" became some of the most overused words, Bank of Ann Arbor continued to perform well especially
when compared to our peers around Michigan and the nation. 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 profitable. Our
state-of-the-art products and services include 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 along with community partners Ann Arbor Chamber, annarbor's 107one and Perich Advertising and Design, created and launched Sonic Lunch, a
weekly outdoor concert series in downtown Ann Arbor's Liberty Plaza.
Despite the challenges the banking industry faced in 2009, Bank of Ann Arbor weathered the storm better than most financial institutions. While many reduced
staff, closed offices and eliminated benefits, we added nine new full-time experienced banking professionals. Our mortgage teams continued to benefit from
the low rate environment closing over $800 million in loans. The year ended with $542 in assets and trust assets under management of $633 million for a total
of over $1.1 billion. Most importantly, earnings improved over the 2008 earnings performance 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. Trust and investment has continued an impressive growth trend by
finishing the year with nearly $670 million in assets under administration. And with mortgage loan originations at high levels throughout the year, 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
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 of 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 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.
Financial success also provides a valuable competitive edge, since many financial institutions in southeast Michigan with less than stellar financial
results have been under intense scrutiny from the FDIC and other regulatory agencies.
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 ranked Bank of Ann Arbor the fourth largest bank in the area—up from seventh in 2010—thanks to our year-over-year increase in deposits.
We finished the year with an asset level exceeding $774 million, while many competitors shrank or retreated from the market altogether. Since 2010, bank
assets have 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. 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 puts us in the top 10% of all banks across the country.
Due to the ever-growing compliance requirements set forth by our regulators, Bank of Ann Arbor decided in late 2011 to exit the wholesale mortgage lending
market and closed Bank of Ann Arbor Wholesale.
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
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% to $107
million. 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%
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.
Bank of Ann Arbor hosted Charles Evans, President and CEO of the Federal Reserve Bank of Chicago and a member of the Federal Open Market Committee, in
September 2012 for an economic update. His visit came five days after the FOMC announced QE3, a major monetary policy stimulus designed to bring down the
high unemployment rate. Nearly 300, including reporters from the national financial media attended the presentation.
For the third consecutive year, the Bank of Ann Arbor team set new records for earnings, deposits, and assets in 2012. Despite the less-than-robust
economy, deposits grew by $107 million to finish the year at $793 million, making Bank of Ann Arbor the third largest bank in Ann Arbor as reported by the
FDIC. Strong deposit growth provided the fuel for our commercial team to make more loans to help more businesses in our community grow. And with that our
total assets hit $891 million at December 31, 2012, growing by $117 million. In addition, our residential mortgage and trust teams all finished the year
at record levels of fee income.
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.
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
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.