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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 301Newman Street, P.O. Box 312, East Tawas, Michigan 48730 Address Service Requested PRSRT STD U.S. POSTAGE PAID EAST TAWAS, MI PERMIT NO. 3 48730
