Huron Valley Bancorp : 2021 Annual Audit

Huron Valley Bancorp, Inc. and Subsidiary

Consolidated Financial Report

December 31, 2021

Huron Valley Bancorp, Inc. and Subsidiary
Contents
Independent Auditor's Report	1-2
Consolidated Financial Statements
Balance Sheet	3
Statement of Operations	4
Statement of Comprehensive Income	5
Statement of Changes in Stockholders' Equity	6
Statement of Cash Flows	7
Notes to Consolidated Financial Statements	8-26

Independent Auditor's Report

To the Board of Directors

Huron Valley Bancorp, Inc. and Subsidiary

Opinion

We have audited the consolidated financial statements of Huron Valley Bancorp, Inc. and Subsidiary (the "Corporation"), which comprise the consolidated balance sheet as of December 31, 2021 and 2020 and the related consolidated statements of operations, comprehensive income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2021 and 2020 and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audits of the Consolidated Financial Statements section of our report. We are required to be independent of the Corporation and to meet our ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued.

Auditor's Responsibilities for the Audits of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that audits conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

To the Board of Directors

Huron Valley Bancorp, Inc. and Subsidiary

In performing audits in accordance with GAAS, we:

•

Exercise professional judgment and maintain professional skepticism throughout the audits.

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

•

Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Corporation's internal control. Accordingly, no such opinion is expressed.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

•

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

February 18, 2022

Huron Valley Bancorp, Inc. and Subsidiary

Consolidated Balance Sheet

December 31, 2021 and 2020 (000s omitted, except per share data)

2021

2020

Assets

Cash and due from banks Federal funds sold

Total cash and cash equivalents

$

84,156 $ 32,080

734 2,631

84,890 34,711

Investment securities - Available for sale (Note 3) Federal Home Loan Bank stock

Loans held for sale

Loans - Net of allowance for loan losses of $1,833 and $1,593 as of

December 31, 2021 and 2020, respectively (Note 4)

Premises and equipment - Net (Note 5)

Deferred tax asset (Note 9)

Other assets

Total assets

Liabilities

Deposits:

Non-interest bearing Interest bearing

Total deposits (Note 6)

Borrowings (Note 7) Accrued and other liabilities

Total liabilities

Stockholders' Equity

Common stock - No par value

Liabilities and Stockholders' Equity

Authorized - 2,500,000 shares at December 31, 2021 and 2020; Issued and outstanding - 868,204 shares at December 31, 2021 and 2020

Restricted stock - Unearned compensation Retained earnings

Accumulated other comprehensive (loss) income

Total stockholders' equity

Total liabilities and stockholders' equity

See notes to consolidated financial statements.

9,063 2,542

192 180

150 176

137,557 149,218

4,292 4,354

340 332

589 757

$

237,073 $ 192,270

$

108,674 $ 72,365

109,258 102,011

217,932 174,376

1,550 2,125

154

193

219,636 176,694

7,847 7,847

(25) (55)

9,725 7,749

(110) 35

17,437 15,576

$

237,073 $ 192,270