Michigan Heritage Bank

Financials

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Michigan Heritage Bank

28300 Orchard Lake Road
Farmington Hills, MI 48334

FDIC Certificate #: 34369 Bank Charter Class: SM

*Definition*	*Dollar figures in thousands*	Michigan Heritage Bank Farmington Hills, MI June 30, 2006	Michigan Heritage Bank Farmington Hills, MI June 30, 2005
All Summary Information
Assets and Liabilities
1	Total employees (full-time equivalent)	41	42
2	Total assets	171,269	164,065
3	Cash and due from depository institutions	1,966	1,696
4	Interest-bearing balances	30	37
5	Securities	25,334	25,780
6	Federal funds sold & reverse repurchase agreements	84	420
7	Net loans & leases	137,185	128,610
8	Loan loss allowance	1,524	1,337
9	Trading account assets	0	0
10	Bank premises and fixed assets	880	1,044
11	Other real estate owned	691	2,476
12	Goodwill and other intangibles	0	0
13	All other assets	5,129	4,039
14	Life insurance assets	1,340	N/A
15	Total liabilities and capital	171,269	164,065
16	Total liabilities	154,788	148,385
17	Total deposits	143,993	140,808
18	Interest-bearing deposits	135,292	131,690
19	Deposits held in domestic offices	143,993	140,808
20	% insured (estimated)	59.33%	83.44%
21	Federal funds purchased & repurchase agreements	0	0
22	Trading liabilities	0	0
23	Other borrowed funds	8,000	5,000
24	Subordinated debt	0	0
25	All other liabilities	2,795	2,577
26	Equity capital	16,481	15,680
27	Perpetual preferred stock	0	0
28	Common stock	3,000	3,000
29	Surplus	9,820	9,820
30	Undivided profits	3,661	2,860
	Memoranda:
31	Noncurrent loans and leases	928	1,687
32	Income earned, not collected on loans	1,462	1,113
33	Earning assets	162,633	154,847
34	Long-term assets (5+ years)	11,975	16,815
35	Average Assets, year-to-date	173,435	163,980
36	Average Assets, quarterly	171,669	164,140
37	Volatile liabilities	68,860	59,402
38	Insider loans	0	0
39	FHLB advances	8,000	5,000
40	Loans and leases held for sale	0	262
41	Unused loan commitments	25,331	40,872
42	Tier 1 (core) capital	16,844	15,719
43	Total risk weighted assets	150,523	142,104
44	Total unused commitments	25,331	40,872
45	Restructured Loans and leases	84	478
46	Quarterly mutual fund sales	0	0
47	Derivatives	0	0
	Past due and nonaccrual assets
	Fiduciary and related services
Income and Expense		*(Year-to-date)*	*(Year-to-date)*
48	Number of institutions reporting	1	1
49	Total interest income	6,414	5,687
50	Total interest expense	2,825	2,136
51	Net interest income	3,589	3,551
52	Provision for loan and lease losses	0	97
53	Total noninterest income	279	439
54	Fiduciary activities	0	0
55	Service charges on deposit accounts	18	19
56	Trading account gains & fees	0	0
57	Additional noninterest income	261	420
58	Total noninterest expense	3,089	3,146
59	Salaries and employee benefits	1,502	1,531
60	Premises and equipment expense	487	397
61	Additional noninterest expense	1,100	1,218
62	Pre-tax net operating income	779	747
63	Securities gains (losses)	-2	0
64	Applicable income taxes	249	239
65	Income before extraordinary items	528	508
66	Extraordinary gains - net	0	0
67	Net income	528	508
68	Net charge-offs	42	797
69	Cash dividends	0	200
70	Sale, conversion, retirement of capital stock, net	0	0
71	Net operating income	529	508
	Memo:
Performance and Condition Ratios
72	% of unprofitable institutions	N/A	N/A
73	% of institutions with earnings gains	N/A	N/A
Helvetica> Performance Ratios (%, annualized)		*(Year-to-date)*	*(Year-to-date)*
74	Yield on earning assets	7.78%	7.32%
75	Cost of funding earning assets	3.43%	2.75%
76	Net interest margin	4.35%	4.57%
77	Noninterest income to earning assets	0.34%	0.56%
78	Noninterest expense to earning assets	3.75%	4.05%
79	Net operating income to assets	0.61%	0.62%
80	Return on assets (ROA)	0.61%	0.62%
81	Pretax return on assets	0.90%	0.91%
82	Return on equity (ROE)	6.48%	6.54%
83	Retained earnings to average equity (YTD only)	6.48%	3.97%
84	Net charge-offs to loans	0.06%	1.21%
85	Credit loss provision to net charge-offs	0	12.17%
86	Earnings coverage of net loan charge-offs (x)	18.55	1.06
87	Efficiency ratio	79.86%	78.85%
88	Assets per employee ($ millions)	4.18	3.91
89	Cash dividends to net income (YTD only)	0	39.37%
	Condition Ratios (%)
90	Loss allowance to loans	1.10%	1.03%
91	Loss allowance to noncurrent loans	164.22%	79.25%
92	Noncurrent assets plus other real estate owned to assets	0.95%	2.54%
93	Noncurrent loans to loans	0.67%	1.30%
94	Net loans and leases to deposits	95.27%	91.34%
95	Net loans and leases to core deposits	167.03%	154.20%
96	Equity capital to assets	9.62%	9.56%
97	Core capital (leverage) ratio	9.85%	9.57%
98	Tier 1 risk-based capital ratio	11.19%	11.06%
99	Total risk-based capital ratio	12.20%	12.00%
	Memoranda:
100	Average assets	173,435	163,980
101	Average earning assets	164,874	155,436
102	Average equity	16,285	15,532
103	Average loans	140,278	Helvetica>131,196

Definition	Demographic Information	November 9, 2006	June 30, 2006	June 30, 2005
1
2	Bank Holding Company (Regulatory Top Holder)	See Note!	MICHIGAN HERITAGE BANCORP, INC.	MICHIGAN HERITAGE BANCORP, INC.
3	Certificate#
4	Federal Reserve ID Number
5	Institution Name	Michigan Heritage Bank	Michigan Heritage Bank	Michigan Heritage Bank
6	City,State,Zip	Farmington Hills, MI, 48334	Farmington Hills, MI, 48334	Farmington Hills, MI, 48334
7	Number of Domestic Offices		4	4
8	Number of Foreign Offices		0	0
9	Interstate Offices		No	No
10	Summary Of Deposits		June 30, 2005	June 30, 2005
11	Current List of Total Offices	Offices
12	Asset Concentration Hierarchy	Commercial Lending Specialization	Commercial Lending Specialization	Commercial Lending Specialization
13	Subchapter S Corporation		No	No
14	County	Oakland	Oakland	Oakland
15	Metropolitan Statistical Area	Detroit, MI	Detroit, MI	Detroit, MI
16	Established Date	March 10, 1997	March 10, 1997	March 10, 1997
17	Date of Deposit Insurance	March 10, 1997	March 10, 1997	March 10, 1997
18	Last Structure Change Process Date	November 3, 2006
19	Last Structure Change Effective Date	March 31, 2006
20	Ownership Type		Stock	Stock
21	Directly Owned by Another Bank?(CERT)		No	No
22	Trust Powers Granted	No	No	No
23	Bank Charter Class	Federal Reserve Member	Federal Reserve Member	Federal Reserve Member
24	Regulator	FED	FED	FED
25	Insurance fund membership	DIF	DIF	BIF
26	FDIC Quarterly Banking Profile Region	Chicago	Chicago	Chicago
27	FDIC Geographic Region	Chicago	Chicago	Chicago
28	FDIC Supervisory Region	Chicago	CHICAGO	CHICAGO
29	FDIC Field Office	Detroit	Detroit	Detroit
30	Federal Reserve District	Chicago	Chicago	Chicago
31	Office of the Comptroller of the Currency District	Central	Central	Central
32	Office of Thrift Supervision Region	Southeast	Southeast	Southeast
33	Primary Web Address	http://www.miheritage.com:80/	NA	NA