Huron Valley Bancorp : Announces Q1 2023 Results

FOR IMMEDIATE RELEASE	Sheri Miles
	Public Relations Director
	248-684-9626

Huron Valley Bancorp, Inc. Reports Q1 Results for 2023

Milford, Michigan - Huron Valley Bancorp, Inc., (HVLM) the parent company for Huron Valley State Bank, announced earnings for the first quarter ending March 31, 2023. Net Income for the first quarter totaled $560,000, an increase of $273,000, or a 95% increase over the $287,000 earned during the three months ended March 31, 2022. Earnings per share were $0.65 during the quarter, up $0.32 per share over Q1 2022. The significant increase in earnings is the result of a 5.00% increase in the Fed Funds rate initiated by the FED during the last 12 months. The resulting Return on Assets (ROA) and Return on Equity (ROE) for the first quarter of 2023 was 0.98% and 12.30%, compared to 0.40% and 6.72% for the first quarter of 2022. The net interest margin continued to improve during the first quarter at 3.84%, up from 2.89% during the first quarter of 2022.

The balance sheet grew 3.2% during the first quarter with total assets of $235,367,000 as of 3/31/23. This was driven by a 3.1% increase in total deposits which finished the quarter at $214,223,000. Total Loans were relatively flat for the quarter, as new loan closings were offset with loan paydowns, and loan payoffs from customers selling their businesses. The bank remains in a strong liquidity position with over $59,000,000 in cash at the end of the quarter, and ready access to lines of credit for potential additional liquidity needs. Our securities portfolio is well positioned with approximately $22,000.000 invested with an average duration of 2.7 years.

"The bank had a strong start to 2023 as our favorable liquidity position allowed us to take advantage of increasing interest rates," said Jack J. Shubitowski, President & CEO. "Deposits remain relatively stable, and growing, and over 65% of our total deposits are fully insured".

130 South Milford Road, Milford, MI 48381

248.684.9626

The bank has once again been recognized as a superior 5-Star rated bank by BauerFinancial, Inc. of Coral Gables, Florida, the nation's leading bank rating and research firm. To earn this rating Huron Valley State Bank must report strong capital levels and have a solid loan portfolio with negligible levels of delinquent loans. Its 5-Star Superior rating of Huron Valley State Bank denotes the highest level of strength and performance that a bank can receive.

Certain statements in this announcement contain forward-looking statements that are based on management's expectations, estimates, projections and Assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates," and variations of these words and similar expressions are intended to identify forward-looking statements. Forwarding looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors.

All forward looking statements speak only as of the date of this press release. All subsequent written and oral forward-looking statements attributable to the company or any person acting on the Corporation's behalf are qualified by the cautionary statements in this press release. The Corporation does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

Headquartered in Milford, Huron Valley Bancorp, Inc. is the parent company of Huron Valley State Bank. The Bank offers a full range of checking and savings accounts, certificates of deposit, consumer loans, commercial loans and other financial services. The Milford branch is located at 130 S. Milford Rd. in Milford.

Call [phone]. The Highland branch is located at 2920 E. Highland Rd. in Highland. Call [phone]. The common stock of Huron Valley Bancorp, Inc. is listed on the NASDAQ Global Market System under the symbol "HVLM"

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130 South Milford Road, Milford, MI 48381

248.684.9626

Quarterly Comparison

Huron Valley Bancorp, Inc. (Unaudited)

	1st Qtr	1st Qtr	1st Qtr	Year to	Year to	Year to
Int Income	2023	2022	2021	Date 2023	Date 2022	Date 2021
2,763	1,693	1,751	2,763	1,693	1,751
Int Expense	570	67	122	570	67	122
Net Int Income	2,193	1,626	1,629	2,193	1,626	1,629
Provision for Loan Losses	30	30	90	30	30	90
Net Int Inc after PLLL	2,163	1,596	1,539	2,163	1,596	1,539
Non Int Income	119	126	141	119	126	141
Non Int Expense	1,573	1,359	1,093	1,573	1,359	1,093
Net Inc Before Tax	709	363	587	709	363	587
Fed Inc Tax	149	76	123	149	76	123
Net Income	560	287	464	560	287	464
# of Days	90	90	90	90	90	90
Average Loans	151,251	137,215	156,612	151,251	137,215	156,612
Average Deposits	210,825	218,582	181,279	210,825	218,582	181,279
Average Equity	18,458	17,363	15,764	18,458	17,363	15,764
Average Assets	231,620	237,782	199,389	231,620	237,782	199,389
Return on Avg Assets	0.98%	0.49%	0.95%	0.98%	0.49%	0.95%
Return on Avg Equity	12.30%	6.72%	11.97%	12.30%	6.72%	11.97%
Earnings per Share	$0.65	$0.33	$0.53	$0.65	$0.33	$0.53
Loan to Deposits Ratio	71.74%	62.78%	86.39%	71.74%	62.78%	86.39%
Capital Ratio	7.97%	7.30%	7.91%	7.97%	7.30%	7.91%
Efficiency Ratio	68.04%	77.57%	61.75%	68.04%	77.57%	61.75%
Net Interest Margin (Huron Valley State Bank)	3.84%	2.89%	3.48%	3.84%	2.89%	3.48%

Quarterly Comparison
HVSB 2022 - 2023 (000's)	HVBI	HVBI	HVBI	HVBI		HVBI	HVBI	HVBI	HVBI
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr
	2022	2022	2022	2022	YTD Total	2023	2023	2023	2023	YTD Total
Int Income	1,693	1,821	2,240	2,672	8,426	2,763				2,763
Int Expense	67	67	137	340	611	570				570
Net Int Income	1,626	1,754	2,103	2,332	7,815	2,193	0	0	0	2,193

Provision	I	30	30	30	30	120	30			0	30
Net Int Inc after PLLL		1,596	1,724	2,073	2,302	7,695	2,163	0	0	2,163
Non Int Income		126	126	137	130	519	119				119
Non Int Expense		1,359	1,352	1,433	1,557	5,701	1,573				1,573
Net Inc Before Tax		363	498	777	875	2,513	709				709
Fed Inc Tax		76	105	163	182	526	149				149
Net Income		287	393	614	693	1,987	560	0	0	0	560
# of Days		90	91	92	92	365	90				90
Average	Loans		137,215	137,406	138,737	142,834	139,063	151,251				151,251
Average	Deposits		218,582	223,383	224,326	225,351	222,933	210,825				210,825
Average	Equity		17,363	17,235	17,341	17,877	17,455	18,458				18,458
Average Assets		237,782	242,353	243,435	244,670	242,083	231,620				231,620
Return on Avg Assets		0.49%	0.65%	1.00%	1.12%	0.82%	0.98%				0.98%
Return on Avg Equity		6.72%	9.15%	14.05%	15.38%	11.38%	12.30%				12.30%
Earnings	per Share		$0.33	$0.45	$0.71	$0.80	$2.29	$0.65				$0.65
Loan to Deposits Ratio		62.78%	61.51%	61.85%	63.38%	62.38%	71.74%				71.74%
Capital Ratio		7.30%	7.11%	7.12%	7.31%	7.21%	7.97%				7.97%

Capital Ratio w/o SBLF

Efficiency Ratio