Huron Valley Bancorp : Announces Q3 2021 Results

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

Huron Valley Bancorp, Inc. Reports Q3 Results for 2021

Milford, Michigan - Huron Valley Bancorp, Inc., (HVLM) the parent company for Huron Valley State Bank, announced earnings for the third quarter ending September 30, 2021. Earnings for the third quarter 2021 totaled $518,000, an increase of $117,000 from the $401,000 earned during the three months ended September 30, 2020. Earnings per share was $0.60 during the quarter, up $0.14, or 30.4% over Q3 2020. The primary driver for earnings was an $109,000 increase in Net Interest Income resulting from loan fees generated from the Paycheck Protection Program (PPP) and a reduction in the Allowance for Loan Losses from $150,000 during Q3 2020 to $30,000 in Q3 2021. Despite continuing economic uncertainty, the bank's asset quality remains sound and the allowance for loan losses is 1.23% of the total loan portfolio, and 1.40% excluding PPP loans, which are 100% guaranteed by the Small Business Administration.

The balance sheet has expanded significantly in the last year, with total average assets for the third quarter of 2021 at $230,660,000. This represents an increase of 15.7% year to date 2021 and 19.7% over the third quarter 2020. The expansion in assets reflects a marked increase in consumer and business deposits driven by stimulus programs, and restricted consumer spending. Loans have decreased $10 million since the 3rd quarter 2020 mainly due to PPP loan forgiveness by the Small Business Administration. The quality of the loan portfolio remains high with no past due or nonaccrual loans on September 30, 2021.

Other financial items of note for Q3 2021 are return on average assets is 0.89% up from 0.83% at Q3 2020 and return on average equity of 12.28%, up 15.3% from the 10.65% at Q2 2020, both due to stronger earnings with PPP fee income. Net interest margin (NIM) continues to lag in 2021 due to the FED's rapid rate reduction in the first half of 2020, with the year to date NIM at 3.33% in 2021, down from 3.71% in the same nine months in 2020.

130 South Milford Road, Milford, MI 48381

248.684.9626

"Huron Valley State Bank continues to see unprecedented growth", said Jack J. Shubitowski, President & CEO. "Assets have grown 45.3%, Loans 9.7%, Deposits 49.2% and Capital 20.9% since year end 2019, all while maintaining superior loan quality and helping our customers and community through these difficult times".

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)

	3rd Qtr	3rd Qtr	3rd Qtr		Year to	Year to	Year to
	2021	2020	2019		Date 2021	Date 2020	Date 2019
Int Income	1,833	1,843	1,882	5,412	5,454	5,483
Int Expense	94	213	309		321	725	898
Net Int Income	1,739	1,630	1,573	5,091	4,729	4,585
Provision for Loan Losses	30	150	30		210	480	90
Net Int Inc after PLLL	1,709	1,480	1,543	4,881	4,249	4,495
Non Int Income	159	130	154	479	389	410
Non Int Expense	1,212	1,102	1,113	3,509	3,301	3,306
Net Inc Before Tax	656	508	564	1,851	1,337	1,599
Fed Inc Tax	138	107	113		389	281	320
Net Income	518	401	451	1,462	1,056	1,279
# of Days	92	92	92	273	274	273
Average Loans	147,785	157,565	134,728	154,112	149,067	132,288
Average Deposits	211,724	174,812	141,262	196,332	158,955	137,865
Average Equity	16,742	14,973	13,381	16,246	14,535	12,908
Average Assets	230,660	192,650	157,920	214,849	176,120	154,054
Return on Avg Assets	0.89%	0.83%	1.13%	0.91%	0.80%	1.11%
Return on Avg Equity	12.28%	10.65%	13.37%	12.03%	9.70%	13.25%
Earnings per Share	$0.60	$0.46	$0.52	$1.68	$1.22	$1.49
Loan to Deposits Ratio	69.80%	90.13%	95.37%	78.50%	93.78%	95.95%
Capital Ratio	7.26%	7.88%	8.47%	7.56%	8.25%	8.38%
Efficiency Ratio	63.86%	62.61%	65.61%	63.00%	64.50%	66.19%
Net Interest Margin (Huron Valley State Bank)	3.13%	3.52%	4.21%	3.33%	3.71%	4.25%