July 18, 2017
Dear Shareholders and Friends, Ladies and Gentlemen,
We are pleased to present to you selected financial highlights of Huron Community Financial Services, Inc.
(HCFSI) and Huron Community Bank (HCB) for the period ending June 30, 2017.
HCFSI (In Thousands)
Net Income for our holding company through June 30, 2017 was $747 as compared to $676 for the same
period last year. Return on Average Equity was 6.10% and Return on Average Assets was 0.76% compared to
5.70% and 0.72% respectively at June 30, 2016. Book value of your common stock is $44.15 and Earnings per
Share are $1.33. At June 30, 2017 the share-holder equity is $24,740.
HCB (In Thousands)
Net Income through the end of the second quarter 2017 was $818 compared to $718 for the same period last
year. June 30, 2017 Return on Average Equity was 7.11% with Return on Average Assets of 0.84% compared
to 6.44% and 0.77% respectively at June 30, 2016. Total assets at the end of the second quarter were
$193,859 versus $183,283 in 2016. Total loans ended the second quarter at $142,807 while total deposits
were $160,846.
Year to Date Financial Performance
The second quarter continues to show a solid start for our bank. Second quarter results for net income were
ahead of both budget forecast and actual year over year. The improved performance is a result of the contin-
ued growth we are experiencing in our loan portfolio, growth in our investment portfolio, and a decrease in
operating expenses. Total outstanding loans at the end of June 2017 were $142.8 million compared to $138.4
million at June 2016 month end.
Loan demand in all three sectors, commercial, residential, and consumer has been steady over the first two
quarters of this year. As the “community bank” leader in the area, we continue to add new quality relation-
ships throughout our market place and beyond. We have worked closely with our clients to improve our
delivery channels and enhance the Huron Community Bank brand. In the third quarter of this year, our Loan
Production Office in West Branch will be converted to a full service bank branch. It will feature a 24 hour
deposit automation machine, a full service personal banking staff, and access to our full array of loan and
deposit products. On a national level we’ve seen the Federal Reserve increase rates twice in 2017, without
much impact on the markets. The pundits are somewhat split on when and if they will raise them again before
year end, but rest assured your community banking professionals are prepared.
Cash Dividend Declared
Your Board of Directors declared a cash dividend of $0.28 per share to shareholders of record at July 5, 2017.
This represents the 94th consecutive quarter in which a cash dividend has been paid to our shareholders. The
dividend was paid on July 14, 2017. If you are not already enrolled in our dividend reinvestment program I
would encourage you to do so. It is a great way to increase investment in the bank!
As always I encourage you to reach out to me if you should have any questions or concerns. We appreciate
your continued support and investment in HCFSI/HCB and “Community Banking” as we continue to make a
difference in people’s lives.
The ladies and gentlemen of HCB thank you for your support and welcome your comments.
Sincerely,
Jeff Loomis
301N
ew
man
Street, P
.O. B
ox 3
12, East T
awas, M
ichig
an 4
8730
Ad
dre
ss Service
Req
ueste
d
PR
SR
T S
TD
U
.S. P
OS
TA
GE
P
AID
EA
ST
TA
WA
S, M
I P
ER
MIT
NO
. 3
48730
Harrisville Office 423 East Main Street Harrisville, MI 48740
(989) 724-6719 (989) 724-6755 FAX
East Tawas Office 301 Newman Street
East Tawas, MI 48730 (989) 362-6700
(989) 362-8982 FAX
Tawas City Office 410 East Lake Street Tawas City, MI 48763
(989) 362-8671 (989) 362-3743 FAX
Oscoda Office 5077 North US-23 Oscoda, MI 48750
(989) 739-9125 (989) 739-0370 FAX
AuGres Office 3150 East Huron
AuGres, MI 48703 (989) 876-8068
(989) 876-6599 FAX
Lincoln Office 327 Traverse Bay Road
Lincoln, MI 48742 (989) 736-6727
(989) 736-3451 FAX
HCFSI Consolidated Balance Sheet (000's Omitted)
HCFSI Consolidated Report of Income (000's Omitted)
Huron Community Bank Financial Highlights
HURON COMMUNITY FINANCIAL SERVICES, INC.
BOARD OF DIRECTORS
Alan J. Stephenson, Chairman Wayne D. Bigelow, Vice Chairman
Thomas B. Huck
David H. Cook Matthew W. Buresh
Mark D. Elliott
Gary J. Thibault Jeffrey B Loomis
DIRECTORS EMERITUS Richard M. Harris Earl T. O'Loughlin Howard C. Look
Robert D. Hodges Monty L. Kruttlin
Robert M. Beneson
West Branch Office 2210 South M76
West Branch, MI 48661 (989) 343-1050
(989) 343-0811 (FAX)
(Unaudited) (Unaudited)
ASSETS 6/30/2017 6/30/2016
Cash & Due From Banks $ 11,023 $ 6,001
Investment Securities 30,698 29,595
Total Loans 142,807 138,352
Allowance for Loan Loss (1,934) (1,883)
Net Loans 140,873 136,469
Bank Premises & Equipment 2,676 2,735
Accrued Interest Receivable 474 424
Intangible Assets 405 405
Other Assets 8,958 8,911
TOTAL ASSETS $ 195,108 $ 184,540
LIABILITIES & EQUITY
Total Deposits $ 160,837 $ 151,954
Repurchase Agreements 4,955 5,411
FHLB Borrowings 0 0
Other Liabilities 4,574 3,280
TOTAL LIABILITIES 170,367 160,644
Common Stock 560 556
Surplus 17,690 17,504
Retained Earnings 6,264 5,468
Unrealized Gain(Loss) Inv. Sec. AFS 227 367
TOTAL SHAREHOLDERS EQUITY 24,740 23,896
TOTAL LIABILITIES & EQUITY $ 195,108 $ 184,540
(Unaudited) (Unaudited)
Six Months Ended 6/30/2017 6/30/2016
Interest on Loans $ 3,221 $ 3,094
Interest on Investments 330 307
TOTAL INTEREST INCOME 3,551 3,401
INTEREST EXPENSE 200 193
NET INTEREST INCOME 3,351 3,208
Fees on Loans 222 185
Other Income 494 527
Total Other Operating Income 716 711
Salaries and Benefits (net) 1,648 1,544
Fixed Expense 423 434
Variable Expense 858 879
Loan Loss Provision 60 83
Loss (Gain) on Assets 45 85
Other Operating Expense 3,033 3,024
NET INCOME BEFORE INCOME TAXES 1,034 895
FEDERAL INCOME TAXES 287 219
NET INCOME $ 747 $ 676
Basic Earnings Per Share $ 1.33 $ 1.21
Book Value Per Share $ 44.15 $ 42.95
Cash Dividends Declared Per Share $ 0.56 $ 0.54
(Unaudited) (Unaudited)
PROFITABILITY 6/30/2017 6/30/2016
Net Income (In thousands) $ 818 $ 718
Return on Assets - Year-to-date annualized 0.84% 0.77%
Return on Equity - Year-to-date annualized 7.11% 6.44%
Net Interest Margin - Year-to-date annualized 3.73% 3.73%
SELECTED BALANCES (In Thou-sands)
Total Assets $ 193,859 $ 183,283
Total Loans $ 142,807 $ 138,352
Total Deposits $ 160,846 $ 151,957
Stockholder's Equity $ 23,510 $ 22,677
Top Related