YEARS
2017 Annual Report
Board of Directors
1 Steven H. Rivera
DO, MBA, FACEP
Managing Partner,
Independent Emergency Physicians, PC
President Medical Staff, Ascension Providence
and Providence Park Hospitals
2 Mark J. Herman
President & COO
ANYI Management Company
3 Barbara E. Allushuski
President & CEO
Blue Heron Talent, LLC
4 Victor L. Ansara
President & CEO
Ansara Restaurant Group, Inc.
5 Stefan Wanczyk
President & CEO
Utica Enterprises, Inc.
6 Patrick J. Fehring
President & CEO
Level One Bank
7 Shukri W. David
MD, MBA, FACC, Physician Chair,
Heart & Vascular Center of Excellence
St. John Providence Health System
8 Michael A. Brillati
CEO
Salus Group
9 Thomas A. Fabbri
President & CEO
Aaro Companies
10 James Bellinson
Managing Director
Riverstone Communities
4
1
3
5
7
8
10
2
6
9
To Our Shareholders
I am pleased to report 2017 was another successful year of quality growth for Level
One Bank. We achieved strong financial results with solid loan and deposit growth,
received several local and national awards, opened a new banking center and
celebrated our 10-year anniversary.
Our Net Income was $9.8 million in 2017, a modest decline from 2016 due primarily
to the 2017 tax reform. Although this negatively impacted earnings in 2017, we will
see benefits from reduced tax rates starting in 2018 and beyond. Total Assets grew
15% to $1.3 billion in 2017. We continued strong growth in our commercial and
consumer portfolios, surpassing $1.0 billion in loans in the fourth quarter.
We were recognized by S&P Global in 2017 as one of the best-performing
community banks in the nation, ranking 35th among other banks our size. We
were also proud to be recognized for workplace excellence by American Banker
Magazine as one of the ‘Best Banks to Work For’ in the country.
Patrick J. Fehring, President & CEO
Our Grand Rapids office had a very successful 2017 with outstanding loan and deposit results in its first year. In July, we
opened a beautiful new banking center in Bloomfield Hills, our twelfth banking center overall and second in the Bloomfield
Hills community. I am pleased to report this banking center is also off to a great start.
It’s hard to imagine we started Level One Bank just 10 years ago. As I reflect on our first decade in business, I am ever
thankful for the shareholders, team members, clients and communities who believed in us from the very beginning. We
would not be the Bank we are today without your tremendous support.
Throughout this report, you will see many of the accomplishments and milestones we have reached together over the last
10 years. Among all our achievements, something I am most proud of is the culture we have created here. Our core values
are authentic and truly unique to the DNA of Level One Bank. Passion, humility, hard work, and relationships, to name a
few, make up the same DNA that carried us through the early days of starting the Bank. It is this same set of values that
continues to drive us into the exciting future ahead.
We remain committed to quality growth and profitability as we look ahead to 2018 and beyond. Thank you for your
continued support and unwavering commitment to Level One Bank.
Sincerely,
Patrick J. Fehring
President & CEO
Executive Team
From left to right: Lani Barrett, EVP, Chief Human Resources Officer; Gregory A. Wernette, EVP, Chief Lending Officer; David C. Walker, EVP, Chief Financial Officer and Treasurer;
Patrick J. Fehring, Chairman, President and Chief Executive Officer; Eva Scurlock, EVP, Risk Management Officer; Timothy R. Mackay, EVP, Consumer Banking Officer
Our 10-year anniversary celebration included more than 200 team members in 2017.
Annual Report 2017 | 1
2017 – Year in Review
ONE
TWO
First Quarter
• Launched a commercial
banking division in Grand
Rapids to complement our
retail, mortgage and small
business divisions
• Celebrated a grand
opening event for our
new Grand Rapids office
Second Quarter
• Ranked among the nation’s
‘Top 100 Best-Performing
Community Banks’ our
size by S&P Global
Market Intelligence
THREE
Third Quarter
• Opened a new banking center
in Bloomfield Hills
• Named one of the ‘Best Banks
to Work For’ in the nation by
American Banker Magazine for
the second consecutive year
• Honored for the fifth straight year as
one of Metro Detroit’s ‘Best & Brightest
Companies to Work For’
• Recognized in Inc. Magazine’s list
of ‘5,000 Fastest Growing Private
Companies in America’ for the third time
FOUR
Fourth Quarter
• Celebrated Level One Bank’s
10-year anniversary with
team members, clients and
the community
• Exceeded the milestone of
$1.0 billion in total loans
Sustained
Quality Growth
In 2017, we further established our brand and presence in
Southeast Michigan and West Michigan alike. After opening our
first Grand Rapids office at the end of 2016, we held a ribbon-
cutting ceremony and celebrated our entry into West Michigan
with local clients and community leaders in January 2017. During
the first quarter, we also launched our commercial banking
division in Grand Rapids, which includes a comprehensive team of
commercial lenders and treasury management professionals. The
Grand Rapids location serves as our full-service banking hub in
West Michigan, offering personal banking, mortgage banking and
business banking services.
We continued to expand our footprint in Oakland County with the
opening of a new banking center in Bloomfield Hills during the
third quarter of 2017. The full-service banking center is located
at the corner of a highly-traveled intersection and conveniently
located next to prevalent shopping centers and restaurants. The
office features an open floor plan with conversation rooms, new
technology, and a large conference room that offers meeting
space for local community groups and organizations.
Our full-service banking center in Grand Rapids.
Our newest banking center in Bloomfield Hills.
Annual Report 2017 | 2
We were honored to receive a number of prestigious awards in
2017, including those that recognized our Bank’s culture and human
resources practices. For the second year in a row, American Banker
Magazine selected Level One Bank as one of the ‘Best Banks to Work
For’ in the country and for the fifth year in a row, we were named one
of Metro Detroit’s ‘101 Best & Brightest Companies to Work For’. We
are committed to maintaining a superior workplace environment
that attracts and retains top industry talent.
The Grand Opening of our
newest banking center
in Bloomfield Hills in 2017.
Annual Report 2017 | 3
Reflecting on Our First 10 Years
2007 - 2017
OFFICES
COMMUNITY IMPACT
Level One Bank’s headquarters in Farmington Hills.
Our first 10 years in business has been exciting to say the least. Characterized by rapid growth and extraordinary results,
it’s not surprising that today Level One Bank is one of the ‘Fastest Growing Private Companies in America’ according to
Inc. Magazine and one of the ‘Best-Performing Community Banks’ in the nation as recognized by S&P Global.
Since the beginning, our strategies for growth have been aggressive, with robust organic growth supplemented by
acquisitions. As banks were closing due to the strain of the economic climate, we sought timely opportunities to acquire
local banks - Michigan Heritage Bank in 2009 and Paramount Bank in 2010. We grew quickly in size and strength with the
addition of new banking centers, new clients and new team members.
In 2011, with a solid foundation established in commercial banking and treasury management, we began to enhance our
core business model with the addition of our Residential Mortgage and Small Business Lending divisions. In 2012, we
consolidated our banking operations into a new headquarters building to prepare for future growth. We grew organically
from 2012 – 2014 as we opened de novo banking centers, expanded our product offerings, invested in technology,
infrastructure and talent, and established a strong brand identity and reputation in our marketplace.
In 2015, we opened our first Mortgage Loan
Production Office in Ann Arbor and acquired Lotus
Bank. Soon after, in 2016, we acquired Bank of
Michigan propelling us over $1.0 billion in assets
and more than 200 team members. We continued
our growth trajectory in 2016 with the opening of
a new banking center in downtown Detroit and our
expansion into West Michigan.
In 2017, we opened our 12th banking center and
celebrated a significant milestone - our 10-year
anniversary. It is truly remarkable how far we’ve
come in 10 years, and we’re not done yet. Profitable
growth and expansion remain an important part
of our strategy moving forward, and we look
forward to sharing more milestones with you
in the years to come.
The Grand Opening of our first banking center in 2007.
1
headquarters
12
banking centers
ACQUISITIONS
1
mortgage
production
office
acquired
banks
4
$1 Million
150
dollars
donated
non-profits
supported
TEAM MEMBERS
235
currently
employed
AWARDS RECEIVED
2x American Banker’s
Best Banks to Work For
5x 101 Best Places to
Work in Metro Detroit
3x Inc. 5000 Fastest
Growing Private Companies
in America
3x Standard & Poor’s
Best Performing
Community Bank
1x Michigan
Top 50 Companies
to Watch
4x SBA
Export Lender
of the Year
2x SBA
Community
Lender of the Year
FUN FACTS
THEN
& NOW
U.S. Prime Rate
7.25%
13,265
Dow Jones Industrial Average
24,719
4.50%
December 2007
December 2017
Annual Report 2017 | 4
Annual Report 2017 | 5
Making an Impact:
Investing in Local Communities
Through leadership, financial support and volunteerism, Level One team
members are actively engaged and making an impact in the communities
we serve. Since our founding, we have contributed over one million dollars
and countless hours to local organizations and individuals in need. While our
community outreach efforts span far and wide, we primarily focus on financial
literacy, affordable housing and community development initiatives.
In 2017, we continued our partnership with Habitat for Humanity of Oakland
County, Macomb County and Detroit. We developed a customized loan program
for low-to-moderate income borrowers purchasing homes from Habitat for
Humanity that offers reduced costs and below-market fixed interest rates. With
this specialized loan, Level One Bank was able to help numerous Habitat for
Humanity families become homeowners in 2017.
We are pleased to provide a number of grant opportunities to qualifying low-to-
moderate income individuals to help make home ownership more affordable. Our
grant programs include money for down-payment assistance, existing home
repairs, and accessibility modifications for seniors and those with disabilities.
“In 2017, we facilitated over $400,000 in grant
money throughout Southeast Michigan and
Grand Rapids, helping nearly 50 families.”
Our team members are passionate about lending their financial expertise
to the community. As such, we regularly volunteer with local adult and youth
organizations to teach various financial literacy and homebuyer education
classes. Classes range from banking basics and credit building to preparation for
first-time homebuyers and buying a car. We continued our partnership in 2017
with Operation HOPE, Wayne State University and TechTown Detroit to offer free
credit counseling and money management classes to nearly 600 individuals in
the Detroit area.
The Harris family moved into their first home with the help
of Habitat for Humanity and Level One Bank.
The Glovell family, along with friends and supporters, celebrates their new Habitat for Humanity
home with the help of a grant from Level One Bank used for down-payment assistance.
Level One team members get their hands dirty as they volunteer
with Habitat for Humanity.
“We regularly volunteer
with local adult and
youth organizations to
teach various financial
literacy and homebuyer
education classes.”
Level One team members lead a credit-building
workshop at Southwest Solutions.
Level One team members regularly volunteer with Read to a Child Detroit.
Annual Report 2017 | 6
Level One’s mortgage team teaches students about the mortgage loan process and how to prepare
for buying a home.
Annual Report 2017 | 7
Client Spotlight
One reimburses customers for fees charged at
non-Level One ATMs. “It’s nice when you don’t
have to make a special trip to your own bank’s
ATMs. It’s the little things.”
Atkins is a licensed attorney with over eight
years of experience. She serves as a Managing
Attorney at The Probate Pro in Royal Oak where
she focuses primarily on estate planning and
probate related issues.
Amber Atkins is a long-time and loyal client
of Level One Bank. After moving her personal
accounts from the frustrations of a big bank,
Atkins has an appreciation for the personalized
service she receives from Level One. “It makes
such a big difference. You don’t feel like just
another account,” she explained.
Atkins notes conveniences like Online Banking,
Bill Pay and Mobile Banking as reasons she loves
Level One. “I do most of my banking online now.
I can deposit checks with the mobile app and
pay my bills online. The online services are very
user-friendly,” she explained. Atkins particularly
enjoys the fee-free ATM network in which Level
Dr. Robert Standring was a medical resident when he began the search for his first home. As a young
professional earning a resident’s wage and bearing the burden of medical school debt, obtaining
financing for a home was no easy task. He shopped around other banks and mortgage companies
before choosing Level One Bank. “Their rates were competitive and they offered a more personal
approach. I have someone I can call any time, day or night, and they know me and my practice. It’s so
refreshing,” explained Dr. Standring.
Level One Bank was able to offer a zero down-payment option through their Physician Loan program
to accommodate Dr. Standring’s unique situation. “They took a gamble on me when I was just getting
started in my career.” Today, Dr. Standring is a Board Certified Otolaryngologist at Ear, Nose and Throat
Consultants in Southfield, Michigan where he treats disorders of the ear, nose and throat and related
problems of the head and neck. He added, “I can’t speak highly enough of my loan officer, Brad Donnelly,
and the whole mortgage process. Everything Level One Bank did was so smooth. I always had paperwork
on time and when I needed it.”
When Nigam Tripathi moved his commercial
accounts to Level One Bank, he immediately
noticed a difference in treatment. “People are
very friendly compared to the other banks I’ve
worked with,” he explained. Tripathi appreciates
how down-to-earth the Level One team is
at all levels of the organization, from the
administration to upper management, and from
the Grand Rapids office to the headquarters in
Farmington Hills. “It’s unique. It’s something you
don’t see walking into a commercial bank. That’s
key to me,” he added.
Since 2010, Tripathi has started five successful
businesses in Michigan, including three
manufacturing companies, a real estate company
and a capital holding company: WL Molding, WPI,
PlasTechs, Jhamin and TCH. Tripathi’s strong
relationship with his commercial banker in Grand
Rapids, Doug Kohlbeck, led to the refinancing of
various lines of credit and equipment financing
through Level One. When asked about his decision
to switch to Level One, Tripathi said, “I am very, very
happy.”
Amber Atkins
The Probate Pro
Dr. Robert Standring, MD
Ear, Nose and Throat
Consultants P.C.
Nigam Tripathi
WL Molding, WPI, PlasTechs,
Jhamin, and TCH
Annual Report 2017 | 8
Ira Harris
Habitat for Humanity
Homeowner
Ira Harris and her family purchased and moved into their
first home with the help of Habitat for Humanity Detroit and
Level One Bank. Harris was looking for a place of her own when
she heard about the Habitat for Humanity program.
As a mortgage partner for Habitat for Humanity, Level One
Bank originated Harris’s mortgage loan and worked with
her throughout the entire mortgage process to get her to
the closing table on time. When asked about her experience
working with Level One, Harris said, “It was great. They had
my back every step of the way. They were loyal to me
and my family.”
Harris was especially thankful for the responsiveness and
dependability of her loan officer, Kendra Merriman. “Even if
she wasn’t in the office or if it was after hours, she always
responded back to me right away. Whatever questions
I had were answered and everything stayed on track
and got approved.”
Michael T. Kulka, P.E.
PM Environmental
When PM Environmental was seeking a new banking relationship,
the company’s Founder and CEO, Michael Kulka, turned to his team
of trusted CPAs and advisors to guide him through the process. They
recommended working with a community bank. “It wasn’t about who
had the cheapest rate. It was about who was best for my company,”
Kulka explained.
Kulka was impressed by Level One Bank’s ability to turn around a
decision quickly, providing an answer in a couple of days while other
banks needed a couple of weeks. Even more important to Kulka was
Level One Bank’s relationship-centered approach. “The ability to sit
one-on-one with a senior executive to review financials was a huge
plus,” he noted. “Level One Bank knew me intimately, like other banks
couldn’t. We had a personal relationship. They were the best choice
because they know me the best.”
PM Environmental is an environmental risk expert with over 25 years of
experience in consulting and managing a wide variety of environmental,
engineering, industrial hygiene, energy and development projects
through 18 regional offices across the country.
Anita’s Kitchen is a family-owned Lebanese
restaurant that originally started in 1980 in
Farmington Hills. After opening a location in
downtown Ferndale nearly 10 years ago, Anita’s
Kitchen became a local favorite in the community.
The restaurant is conveniently located next door
to Level One Bank’s Ferndale office. “It’s great to
be able to walk two doors down and get all of our
banking taken care of,” explained Joe Wegrzyn,
Co-owner of Anita’s Kitchen. “We use Level
One Bank whenever we can, whether it’s for the
business or for personal banking.”
With the help of Level One Bank’s small business
lending team, Joe and his wife Jennifer are now
expanding their operations to include AKtakeaway
- a fast-casual restaurant in downtown Detroit,
and WonderBlue LLC - a commissary kitchen
that will serve as the main supply hub for their
restaurants. AKtakeaway and WonderBlue LLC
are both slated to open in 2018.
“From day one, it was a big sigh of relief to know
that Level One Bank was going to bring this thing
to life,” said Joe Wegryzn. “Whether financing
our business ventures or our family home,
there has always been a sense of trust and
comfort with Level One.”
Annual Report 2017 | 9
Joe and Jennifer Wegrzyn
Anita’s Kitchen
CONSOLIDATED BALANCE SHEETS
December 31, 2017 and 2016
(Dollars in thousands, except share data)
ASSETS
Cash and cash equivalents
Securities available-for-sale
Federal Home Loan Bank stock
Mortgage loans held for sale, at fair value
Loans:
Originated loans
Acquired loans
Total loans
Less: Allowance for loan losses
Net loans
Premises and equipment
Goodwill
Other intangible assets, net
Bank-owned life insurance
Income tax benefit
Other assets
Total assets
LIABILITIES
Deposits:
Noninterest-bearing demand deposits
Interest-bearing demand deposits
Money market and savings deposits
Time deposits
Total deposits
Borrowings
Subordinated notes
Other liabilities
Total liabilities
Shareholders’ equity
Common stock:
Authorized - 20,000,000 shares at 12/31/2017 and 12/31/2016
Issued and outstanding - 6,435,461 shares at 12/31/2017 and
6,350,532 shares at 12/31/2016
Retained earnings
Accumulated other comprehensive loss, net of tax
Total shareholders’ equity
Total liabilities and shareholders’ equity
2017
$ 63,661
150,969
8,303
4,548
920,895
114,028
1,034,923
(11,713)
1,023,210
13,435
9,387
667
11,542
3,102
12,467
$1,301,291
$ 324,923
62,644
289,363
443,452
1,120,382
47,833
14,844
10,272
1,193,331
59,511
49,232
(783)
107,960
$ 1,301,291
2016
$ 19,116
100,533
5,828
9,860
803,572
149,821
953,393
(11,089)
942,304
15,719
9,387
901
11,214
5,137
7,532
$1,127,531
$ 280,779
60,472
284,249
299,424
924,924
82,645
14,786
8,605
1,030,960
58,306
39,391
(1,126)
96,571
$1,127,531
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Years ended December 31, 2017, 2016 and 2015
(Dollars in thousands)
Preferred
Stock
Common
Stock
Retained
Earnings
Accumulated Other
Comprehensive
Income (Loss)
Total
Shareholders’
Equity
BALANCE AT JANUARY 1, 2015
$11,287
$ 57,501
$15,929
$ (296)
$ 84,421
Net income
Other comprehensive income (loss)
Exercise of stock options (2,835 shares), including tax benefit
Preferred stock dividends
Preferred stock redemption
Stock-based compensation expense
-
-
-
-
(11,287)
-
-
-
25
-
-
114
12,528
-
-
(112)
-
-
-
(55)
-
-
-
-
12,528
(55)
25
(112)
(11,287)
114
BALANCE AT DECEMBER 31, 2015
$ -
$ 57,640
$28,345
$ (351)
$ 85,634
Net income
Other comprehensive income (loss)
Exercise of stock options (27,008 shares), including tax benefit
Tax benefit from restricted stock vesting
Stock-based compensation expense
-
-
-
-
-
-
-
300
2
364
11,046
-
-
-
-
-
(775)
-
-
-
11,046
(775)
300
2
364
BALANCE AT DECEMBER 31, 2016
$ -
$58,306
$39,391
$(1,126)
$ 96,571
Net income
Other comprehensive income (loss)
Exercise of stock options (57,506 shares), including tax benefit
Stock-based compensation expense, net of shares net settled
-
-
-
-
-
-
605
600
9,841
-
-
-
-
343
-
-
9,841
343
605
600
BALANCE AT DECEMBER 31, 2017
$ -
$59,511
$49,232
$ (783)
$107,960
Annual Report 2017 | 10
Annual Report 2017 | 11
CONSOLIDATED STATEMENTS OF INCOME
Years ended December 31, 2017, 2016 and 2015
(In thousands, except per share data)
Net Interest Margin
Interest income
Originated loans, including fees
Acquired loans, including fees
Securities:
Taxable
Tax exempt
Federal funds sold and other
Total interest income
Interest Expense
Deposits
Borrowed funds
Subordinated notes
Total interest expense
Net interest income
Provision for loan losses
Net interest income after provision
for loan losses
Noninterest income
Service charges on deposits
Net gain on sale of securities
Net gain on sale of residential mortgage loans
Net gain on sale of commercial loans
Gain on FDIC loss share agreement termination
Other charges and fees
Total noninterest income
Noninterest expense
Salary and employee benefits
Occupancy and equipment expense
Professional service fees
Acquisition and due diligence fees
Marketing expense
Printing and supplies expense
Data processing expense
Other expense
Total noninterest expense
Income before income taxes
Income tax provision
Net income
Less: Preferred stock dividends
Net income allocated to common
shareholders
Earnings per common share:
Basic
Diluted
Average common shares outstanding - basic
Average common shares outstanding - diluted
2017
2016
2015
$39,812
12,231
$33,771
$26,978
16,956
11,762
1,746
955
863
55,607
6,267
797
1,014
8,078
47,529
1,416
1,431
1,674
441
304
674
247
52,903
41,335
4,499
3,512
318
1,015
5,832
47,071
3,925
252
28
3,792
37,543
1,359
46,113
43,146
36,184
2,543
208
1,698
146
-
1,907
6,502
21,555
4,208
2,314
-
930
477
1,912
4,655
36,051
16,564
6,723
9,841
-
1,885
926
2,249
-
-
1,347
6,407
972
280
1,701
92
3,117
1,052
7,214
17,978
14,663
3,370
1,189
2,684
806
468
2,023
3,889
32,407
17,146
6,100
11,046
-
2,792
892
722
567
349
1,350
3,553
24,888
18,510
5,982
12,528
112
The Company’s loans are its main revenue engine, and the loan yield
increased more than the cost of funds increased, resulting in the
Company’s net interest margin of 4.2%.
Noninterest Expense/Average Assets
Offsetting net interest revenue is noninterest expense (e.g., salaries,
occupancy, data processing, etc.) In 2017, this increased primarily due
to higher salary and employee benefits resulting from an increase of 23 FTE
employees (portion of which related to opening of Grand Rapids Branch).
(Thousand)
Net Income
Net income was strong at $9.8 million in 2017.
$ 9,841
$11,046
$12,416
Return on Average Assets
$ 1.54
$ 1.49
6,388
6,610
$ 1.74
$ 1.69
6,341
6,549
$
1.97
$
1.92
6,307
6,463
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2017, 2016 and 2015 (Dollars in thousands)
(Million)
Total Assets
Cash flows from operating activities
Net income
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation
Amortization of core deposit intangibles
Stock-based compensation expense,
net of shares net settled
Provision for loan losses
Discount on acquired SBA/USDA retained loans
Net securities premium amortization
Net gain on sales of securities
Originations of loans held for sale
Proceeds from sales of loans originated for sale
Net gain on sales of loans
Net accretion on acquired
purchase credit impaired loans
Writedowns on other real estate owned
Gain on sale of other real estate owned
Increase in cash surrender value of life insurance
Net (increase)/decrease in accrued interest
receivable and other assets
Net increase/(decrease) in accrued interest
payable and other liabilities
Net cash from operating activities
Cash flows from investing activities
Net increase in loans
Principal payments on securities available-for-sale
Purchases of securities available-for-sale
Purchases of Bank Owned Life Insurance
Purchases of FHLB Stock
Additions to premises and equipment
Proceeds from:
Redemption of FHLB Stock
Sale of securities available-for-sale
Sale of other real estate owned
Net cash from/(used) in acquisition
Net cash used in investing activities
2017
2016
2015
$ 9,841
$ 11,046
$ 12,528
1,369
234
1,445
233
1,026
154
600
1,416
-
871
(208)
(64,184)
69,753
(1,844)
364
3,925
133
608
(926)
(78,950)
74,995
(2,249)
114
1,359
33
864
(280)
(58,245)
59,622
(1,793)
(5,340)
-
(237)
(328)
(8,412)
-
(35)
(181)
(6,960)
105
(181)
(100)
(1,519)
(4,658)
4,952
1,725
12,149
2,865
203
(1,454)
11,744
(75,780)
8,850
(74,225)
-
(2,475)
(913)
(89,466)
12,900
(91,041)
(7,520)
(1,536)
(3,066)
-
14,803
885
-
(128,855)
-
93,427
116
2,458
(83,728)
Cash flows from financing activities
195,458
Net increase in deposits
Repayment of Federal Home Loan Bank (FHLB) advances (348,500)
314,000
Issuances of FHLB advances
(1,826)
Change in short term borrowings
1,514
Increase in secured borrowing
-
Proceeds from issuance of subordinated notes
-
Preferred stock dividends
Redemption of preferred stock
-
Proceeds from exercised stock
options, including tax benefit
Net cash from financing activities
Net change in cash and cash equivalents
Beginning cash and cash equivalents
Ending cash and cash equivalents
605
161,251
44,545
19,116
$ 63,661
46,170
(16,600)
65,000
(8,265)
-
-
-
-
300
86,605
3,080
16,036
$ 19,116
Supplemental disclosure of cash flow information:
Interest paid
Income taxes paid
Transfer from premises and equipment to other assets
Transfer of loans held for sale to loans held for investment
Transfer from loans to other real estate owned
$ 7,427 $ 5,864
1,200
-
-
258
4,625
1,793
1,587
385
(109,972)
12,610
(68,072)
-
-
(1,050)
313
50,801
714
(965)
(115,621)
145,358
(37,000)
35,000
(43,798)
-
14,733
(112)
(11,287)
25
102,919
(958)
16,994
$ 16,036
$ 3,603
1,050
-
-
399
Organic growth drove an increase in assets of 15% during 2017.
(Million)
Total Loans
Loan growth contributed to 47% of total asset growth during 2017.
Uncovered Net Charge Offs / Average Assets
Credit quality remains excellent with a .07% loss rate in 2017.
Annual Report 2017 | 12
Annual Report 2017 | 13
The Company’s net income as percent of assets was 0.82% in 2017.
Non-cash transactions:
Increase in assets and liabilities in acquisitions:
Assets acquired - Bank of Michigan (2016),
Lotus Bank (2015)
Liabilities assumed - Bank of Michigan (2016),
Lotus Bank (2015)
-
114,442
111,428
-
102,762
98,906
Corporate Office
32991 Hamilton Court
Farmington Hills, MI 48334
248-737-0300
Banking Center Locations
Birmingham
1732 West Maple Road
Birmingham, MI 48009
248-723-4800
Bloomfield
6450 Telegraph Road
Bloomfield Hills, MI 48301
248-406-8905
Bloomfield
37100 Woodward Avenue
Bloomfield Hills, MI 48304
248-530-7401
Mortgage Loan
Production Office
2750 South State Street
Ann Arbor, MI 48104
734-794-5225
Farmington Hills
30095 Northwestern Highway
Farmington Hills, MI 48334
248-865-1300
Grand Rapids
2355 Burton Street SE
Grand Rapids, MI 49506
616-827-4400
Farmington Hills
31000 Northwestern Highway
Farmington Hills, MI 48334
248-538-7600
Northville
20550 Haggerty Road
Northville, MI 48167
248-380-6590
Farmington Hills
30201 Orchard Lake Road
Farmington Hills, MI 48334
248-737-1110
Novi
44350 W. 12 Mile Road
Novi, MI 48377
248-735-1000
Detroit
1420 Washington Boulevard
Detroit, MI 48226
313-309-9980
Ferndale
22635 Woodward Avenue
Ferndale, MI 48220
248-414-6500
Sterling Heights
43683 Schoenherr Road
Sterling Heights, MI 48313
586-412-1800
Member FDIC
888-880-5663 | contact@levelonebank.com
www.LevelOneBank.com