CNB Community Bancorp, Inc.

Transcription

1 CNB Community Bancorp, Inc. bank holding company of: Company Profile Investor Consideration May 2015

2 Disclaimer This presentation contains or incorporates by reference forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act ), Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act ) and the Private Securities Litigation Reform Act of These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as may, could, should, will, would, believe, anticipate, estimate, expect, intend, plan, project, is confident that, and similar expressions that are intended to identify these forward-looking statements. These forward-looking statements involve risk and uncertainty and a variety of factors, which are in many instances beyond our control and could cause our actual results and experiences to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. We assume no obligation to update or revise forward-looking statements. Page 2

3 Table of Contents Executive Summary Company Overview Corporate Strategy Financial Highlights Page 3

4 Executive Summary Corporate Profile CNB Community Bancorp, Inc. ( CNB or the Company ) is the bank holding company of Hillsdale County National Bank (the Bank ). Headquartered in Hillsdale, MI, the Company offers banking products and services to the local communities it serves in Hillsdale, Jackson, Calhoun, and Lenawee counties. CNB At A Glance CNB Geographic Footprint Headquarters Hillsdale, MI Established 1934 Assets $524.8 million Loans, net $381.9 million Deposits $468.3 million Consolidated Equity / BV per Share $40.7 million / $19.89 Traverse City Key Major Cities CNB Branches (12) LTM Return on Average Assets 0.79% LTM Return on Average Equity 9.8% Cost of Funds * 0.22% Net Interest Margin * 3.94% Efficiency Ratio * 69.41% Grand Rapids Lansing Loans / Deposits 81.55% NPAs (excl. TDRs)/Assets * 0.85% Shares Outstanding 2,046,981 Kalamazoo Jackson Ann Arbor Detroit Note: Financial data as of March 31, 2015 except where otherwise noted LTM stands for Last Twelve Months * Denotes bank level information Page 4

5 Executive Summary CNB Market Share State of Michigan # of Branches Total Deposits ($000) Market Share (% ) Rank Institution Michigan 1 Flagstar Bancorp Inc ,856, Chemical Financial Corp ,003, Talmer Bancorp Inc. 54 2,745, Mercantile Bank Corp. 54 2,319, Independent Bank Corp. 72 1,941, Macatawa Bank Corp. 30 1,218, Isabella Bank Corporation 27 1,063, MBT Financial Corp. 24 1,051, Lake Michigan Financial Corp , Arbor Bancorp Inc , Mackinac Financial Corp , Level One Bancorp Inc , First State Financial Corp , First National Bancshares Inc , Keweenaw Financial Corporation , Southern Michigan Bancorp Inc , Crestmark Bancorp Inc , ChoiceOne Financial Services , CNB Community Bancorp Inc , Northstar Financial Group Inc , Total For Institutions In Michigan 2, ,934,749 Primary Markets # of Branches Total Deposits ($000) Market Share (% ) Rank Institution Hillsdale County 1 CNB Community Bancorp Inc , Flagstar Bancorp Inc. 1 64, Fifth Third Bancorp (OH) 1 55, Southern Michigan Bancorp Inc. 2 45, Century Financial Corp. 1 17, Monarch Community Bancorp Inc 1 15, Total For Institutions In Hillsdale ,524 Jackson County 1 Flagstar Bancorp Inc , Comerica Inc. (TX) , FirstMerit Corp. (OH) 7 328, CNB Community Bancorp Inc , Fifth Third Bancorp (OH) 3 79, Old National Bancorp (IN) 3 51, OSB Community Bank 2 40, Farmers State Bank of Munith 2 38, Independent Bank Corp. 1 21, PNC Financial Services Group (PA) 1 17, Total For Institutions In Jackson 45 1,534,560 CNB is the 19 th largest bank headquartered in the State of Michigan The Company has the top market share in its primary market of Hillsdale, and is the fourth largest bank in its secondary market of Jackson Note: Deposit information taken from SNL Financial as of June 30, Michigan total includes all deposits in state of Michigan, including out of state banks Page 5

6 Executive Summary Investment Considerations 19 th largest bank headquartered in Michigan with focus on local communities it serves #1 in deposit market share (greater than 53%) in Hillsdale County and #4 market share in Jackson County, which has more than 160,000 residents and a median household income of $44,432 Experienced management team and board of directors, with vast knowledge of local markets The Bank has been a model of consistent positive earnings Dividend payout has remained consistent year over year and the Company is focused on building shareholder value and returning a share of profits to the shareholders Robust core deposit base (89.8% of total deposits) and transaction accounts (43.7% of total deposits) at the bank are evidence of strong customer relationships in the community Very low cost of funds 0.22% as of March 31, 2015 Trust and investment services division augments traditional loan interest income with supplemental noninterest income and fee revenue generation Focus on long-term success of its shareholders, customers, and employees Strong credit quality is heavily tied to the Bank s conservative underwriting processes Page 6

7 Table of Contents Executive Summary Company Overview Corporate Strategy Financial Highlights Page 7

8 Company Overview Corporate History On March 19, 1934, roughly fifty courageous and committed business people put up personal monies to invest and capitalize County National Bank. The initial $60,000 investment has grown to over $39,000,000, truly an entrepreneurial success story for our free enterprise system. Beyond the growth of the initial investment, CNB's role in promoting commerce and prosperity to our local communities has been historic, and our past and present shareholders can take pride in their important role in this story. In April of 1991, the bank acquired the Hudson office of Standard Federal Bank. Four more offices were acquired from Republic Bank in 1997 in Litchfield, Somerset Center, Hanover, and Spring Arbor. Growth continued in 1999 with the acquisition of the Homer office of Citizens Bank. In 2001, the decision was made to bring the community banking concept to the Jackson market. In April of 2001, the CNB office was opened on Cortland Street in downtown Jackson in refurbished space that had been part of the Jacobson's Store for the Home. Following the positive reception and success of the downtown office, construction of a second Jackson office on Wisner Street was completed in Located in the heart of Jackson's major retail area, the Wisner Street office provides a full-range of banking services. In June of 2006, County National Bank's Hudson office moved to the new Market House Plaza on Railroad Street. The shopping plaza houses several businesses, utilizing the one-stop shopping approach. This brand-new beautiful banking facility offers a full complement of products and services including drive-up service, expanded hours, and convenient ATM. Then in August of 2007, the bank opened a third Jackson office at a great location in the new Summit Center at the corner of Horton and Weatherwax Roads. This newest full-service facility boasts a beautiful décor including walls adorned with pictures relating to the nearby Ella Sharp Museum. County National Bank is proud to serve the communities of South Central Michigan, providing financial products and services in 11 full-service offices and 16 ATMs. Since 1934 CNB has been committed to superior customer service, technological innovation, and a tradition of community banking. Page 8

9 Company Overview Branch Network Main St. Spring Arbor Wisner St. - Jackson Cortland Ave. - Jackson Horton Rd. - Jackson Main St. - Homer Main St. - Hanover Jonesville St. - Litchfield Chicago Rd. Somerset Chicago St. - Jonesville Lewis St. - Hillsdale Howell St. - Hillsdale Railroad St. - Hudson Page 9

10 Company Overview Executive Management Team Craig S. Connor President & Chief Executive Officer Related Work Experience Joined CNB in 1993 as the Senior Loan Officer. Prior to CNB, Craig held positions at two other community banks located in southern Michigan; Litchfield State Savings Bank and Adrian State Bank. He has been active on several local boards over the course of his career, including the Hillsdale Community Health Center, Hillsdale County Senior Services Center, Hillsdale Chamber of Commerce, and the Hillsdale Board of Public Utilities. Additionally, he was elected to the Michigan Bankers Associate (MBA) Board in May of 2012, and participates in several committees. John R. Waldron Senior Vice President & Senior Loan Officer Related Work Experience Joined CNB in 2002 as a Commercial Loan Officer. Prior to CNB, John spent 10 years with the Office of the Comptroller of the Currency (OCC) as a National Bank Examiner specializing in Capital Markets and Asset Management. In his current position as the Senior Loan Officer, he oversees the Bank s loan portfolio, loan operations, policies, and compliance. John is active in the MBA Senior Lender Forum, and locally is involved with the Jackson Symphony Orchestra, the Ella Sharp Museum, and Jackson Public Schools. Sharon L. Burns Vice President & Chief Financial Officer Related Work Experience Joined CNB in 2010 as a 2 nd Vice President and controller. Prior to CNB, Sharon spent 4 years with Rehmann Robson CPAs as a staff associate specializing in financial institution taxation and internal controls, and 6 years with Spring Arbor University in various capacities. Her current position at CNB is responsible for financial reporting, accounting and budgeting for the Bank. Sharon is a licensed Certified Public Accountant through the State of Michigan, is a member of the MBA Chief Financial Officer Forum, and is locally involved in her church, her children s school and community organizations in Hillsdale, Jackson and Lenawee counties. She is currently a board member of the Hillsdale Exchange Club. Page 10

11 Company Overview Executive Management Team Mary P. Marshall Vice President & Senior Trust Officer Related Work Experience Joined CNB in 2006 as the Senior Trust Officer. Prior to CNB, Mary s previous experience includes over eleven years of pension consultant, retail finance and trust officer experience. She is a Certified Trust Financial Advisor through the Cannon Financial Institute, a CSA-Certified Senior Advisor, and has a Life and Health Insurance License. Mary is a former President of the HGCC Women s Association. Scott E. Evans Vice President & Senior Mortgage Officer Related Work Experience Joined CNB in 2008 as the Senior Mortgage Officer. Prior to CNB, Scott s previous experience includes 28 years in banking as a teller, proof operator, branch manager, commercial lender, branch administrator and retail banking administrator with Bank of Lenawee. He was appointed as the project manager to start a new bank for Pavilion Bancorp, Bank of Washtenaw, where he was the EVP/COO for that organization. Scott is also a Grassroots contact banker with the MBA. Kelly D. Jensen Vice President & Branch Administrator Related Work Experience Joined CNB in 2000 as a Branch Officer. Prior to CNB, Kelly s banking career began in 1976 and he has held a number of positions in the banking industry. His current position is administrator of the 12 offices with all branch officers, managers, management trainee staff and facilities under his direct report. He is a member of the MBA Branch Administrators Forum. Kelly serves as President of the Exchange Club of Jackson, Treasurer for the Together We Can Make a Difference House, and is a member of the Trinity Wesleyan Church where he leads music ministry. Page 11

12 Company Overview Board of Directors John Barrett President Eagle Funeral Homes, Inc. Board member since 2010 President of the Hillsdale County Community Foundation Board, member of the Hillsdale Elks Lodge #1575, Jonesville Rotary Club, and Knights of Columbus Former Board member of the Hillsdale County Chamber of Commerce Craig Connor President & CEO CNB Community Bancorp, Inc. and Hillsdale County National Bank Board member since 2004 Over 35 years of banking experience in southern Michigan, including multiple lending disciplines Active on several Hillsdale community boards and with the Michigan Bankers Association Joseph Dunigan President Dunigan Brothers, Inc. (Construction) Board member since 2013 Member of the Jackson Catholic Area School Board and Liberty Township Planning Board Past President of the Associated Underground Contractors of Michigan and served on the former City Bank and Trust Board of Directors, Citizens Bank Advisory Board, and Lumen Christi High School Board Judy Gabriele Director of Development Hillsdale Community Health Center (HCHC) Board member since 2003 Past President and current member of the Hillsdale Exchange Club, as well as a member of the Hillsdale College Women Commissioners and the Hillsdale Women s Club Currently serves on the advisory committee for the Hillsdale County Work Force Development and Technology Center Page 12

13 Company Overview Board of Directors John Jack Lovinger Attorney Parker, Hayes, & Lovinger, P.C. Board member since 2003 Currently serves on the Board of Key Opportunities Previously served on the boards of Hillsdale County United Way, Will Carleton Public School Academy, Hillsdale County Senior Services Center, and the Elders of the First Presbyterian Church of Hillsdale Stephen Maddalena General Manager Kentwood Office Furniture Board member since 2000 Director of the Western Golf Association and the Evans Scholarship Fund in Chicago David Pope Chairman Powers Clothing, Inc. Board member since 1981 Secretary/Treasurer of the Jonesville Business Association, former President of the Hillsdale County Community Foundation Board and previously served on the Jonesville Community Schools Board of Education Claude Rowley President Rowley Inc. (Construction) Board member since 1995 Served 18 years on the Hudson Schools Board of Education and current President of the William G. Thompson Foundation, the Hudson Foundation, and the Hudson Education Foundation Steven Wells Chairman Wells Equipment Sales, Inc. Board member since 1995 Currently a charter member of the Litchfield Exchange Club, charter Board member of the Hillsdale County Community Foundation, and member of the Litchfield School Improvement Committee Page 13

14 Company Overview Local Community Involvement CNB s employees and directors are deeply vested in the communities they reside, often times serving on boards and committees of community development associations, foundations, and school districts. Below are a few of the organizations that representatives of CNB have participated in. Page 14

15 Table of Contents Executive Summary Company Overview Corporate Strategy Financial Highlights Page 15

16 Corporate Strategy Strategic Overview Mission Statement County National Bank will sustain its deep commitment to the community and to its tradition of excellence in all aspects of Banking. CNB will continue to provide outstanding customer service and solid financial performance. The current strategic plan identifies several key priorities for CNB Community Bancorp, Inc. for a three-year period. The Capital management process is robust as the Bank balances shareholder expected returns on equity, dividends paid, and capital needed to fund the many growth opportunities. CNB monitors and maintains appropriate capital levels based on the risk profile of the Bank. Organic growth of the Bank in its existing primary markets, as well as the adjacent markets, is a priority. CNB plans to grow Bank assets and also off-balance sheet assets, such as trust and investment assets and sold and serviced loan assets. Management succession planning for senior and middle management is reviewed regularly and updated annually. CNB is committed to developing and retaining a talented and professional staff. Annually, CNB allocates a substantial amount for staff training and development. Each Bank Director has an established educational fund to be used for outside training and/or industry conferences. The Bank strives to maintain a high regulatory rating from their regulator, the Office of the Comptroller of Currency ( OCC ), and works to utilize best practices when it comes to enterprise risk management. It is CNB s goal to expand existing customer relationships, building the number of accounts each customer has with the Bank. The Company accomplishes this by providing excellent customer service, word of mouth referrals, and having competitive products, that meet customer s needs. CNB has a long range technology plan which is updated annually. Recently, the Bank upgraded all of our ATM s and just introduced mobile banking to the online banking customers. CNB continues to place a high priority on cyber security and the safety of customer information. Page 16

17 Table of Contents Executive Summary Company Overview Corporate Strategy Financial Highlights Page 17

18 Financial Highlights Consolidated Income Statement ($ in 000s) For the Year Ended December 31, Year to Date Last Twelve Months /31/2015 3/31/2015 Interest income $16,638 $18,871 $17,225 $16,513 $17,057 $17,904 $17,953 $18,096 $18,701 $4,886 $18,944 Interest expense 4,461 6,113 4,867 3,600 2,480 1,974 1,607 1,391 1, ,050 Net interest income 12,177 12,758 12,358 12,913 14,577 15,930 16,346 16,705 17,615 4,629 17,894 Provision for loan losses ,579 1,945 1,915 1, , ,256 Net interest income after provision 11,907 12,357 11,697 11,334 12,632 14,015 15,101 16,061 16,439 4,376 16,638 Noninterest income 3,858 3,844 3,826 5,077 4,257 4,345 5,242 5,275 5,065 1,140 5,064 Noninterest expense 11,490 11,786 13,038 12,770 12,775 13,402 15,122 15,712 16,024 4,056 16,171 Income before income taxes 4,275 4,415 2,485 3,641 4,114 4,958 5,221 5,624 5,480 1,460 5,531 Income taxes 1,413 1, ,252 1,184 1,523 1,509 1,676 1, ,559 Net income $2,862 $3,069 $1,531 $2,389 $2,930 $3,435 $3,712 $3,948 $3,967 $1,047 $3,972 Earnings per share $1.40 $1.51 $0.77 $1.20 $1.47 $1.71 $1.84 $1.95 $1.95 $0.51 $1.95 Dividends per share $0.86 $0.90 $0.91 $1.00 $0.82 $0.84 $0.86 $0.86 $0.86 $0.32 $0.86 Dividend payout ratio 61.4% 59.6% 118.2% 83.3% 55.8% 49.1% 46.7% 44.1% 44.1% 62.7% 44.1% Return on equity 10.2% 10.4% 5.1% 8.1% 9.9% 11.1% 11.3% 11.3% 10.7% 10.4% 9.8% CNB has a consistent stream of interest and noninterest income that allows for predictable profitability and a consistent dividend stream to its shareholders CNB has averaged a 60.5% dividend payout ratio since 2006, with a median of 52.5% The Company has achieved double digit returns on equity each of the last 4 years, effectively managing its growth prospects and shareholder returns Page 18

19 Financial Highlights Profitability Metrics Net Interest Margin & Efficiency Ratio* Net Interest Margin 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 69.37% 69.37% 69.09% 70.62% 67.51% 65.53% 69.15% 70.43% 70.96% 69.41% 4.92% 4.74% 4.56% 4.40% 4.73% 4.70% 4.35% 4.03% 3.98% 3.94% YTD 3/31/2015 Efficiency Ratio 80.00% 70.00% 60.00% 50.00% 40.00% Net Interest Margin Efficiency Ratio Earnings & Dividends Per Share Earnings & Dividends Per Share $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $ % 59.6% 118.2% 83.3% 55.8% Dividend Payout Ratio $1.40 $1.51 $1.47 $1.20 $1.84 $1.95 $1.95 $1.95 $0.86 $0.90 $0.77 $0.91 $1.00 $0.82 $1.71 $0.84 $0.86 $0.86 $0.86 $ % 46.7% 44.1% 44.1% 44.1% LTM 3/31/2015 Earnings Per Share Dividends Per Share Dividend Payout Ratio 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% * Note: Net interest margin and efficiency ratio is at the bank level Page 19

20 Financial Highlights Consolidated Balance Sheet ($ in 000s) For the Year Ended December 31, As of March 31, Assets Cash and due from banks $15,281 $19,518 $17,308 $31,103 $21,270 $33,446 $70,298 $51,127 $45,087 $88,612 Federal funds sold 6,609 12, , Securities - Available for sale 19,582 23,952 18,748 25,543 23,878 19,332 35,433 40,285 36,317 35,709 Loans held for sale 1, ,316 1,519 1, Loans, net 226, , , , , , , , , ,914 Other assets 12,550 13,169 12,685 14,730 14,411 19,798 19,019 18,026 18,324 18,060 Total assets $282,373 $302,935 $303,140 $330,356 $346,947 $382,271 $443,214 $451,140 $482,245 $524,811 Liabilities and Shareholders' Equity Noninterest-bearing deposits $38,742 $39,194 $36,904 $46,814 $49,199 $60,037 $72,323 $74,122 $95,972 $92,120 Interest-bearing deposits 200, , , , , , , , , ,227 Total deposits 239, , , , , , , , , ,347 FHLB advances 11,577 13,077 16,050 13,490 10,328 22,531 15,495 14,700 14,700 14,850 Line of credit note payable Accrued expenses and other liabilities 2,125 2, ,639 1,764 1, ,408 1, Total liabilities 252, , , , , , , , , ,100 Total shareholders' equity 29,396 30,037 28,877 29,600 30,942 32,772 34,954 37,181 39,645 40,711 Total liabilities and shareholders' equity $282,373 $302,935 $303,140 $330,356 $346,947 $382,271 $443,214 $451,140 $482,245 $524,811 Book value per share $14.40 $14.88 $14.55 $14.88 $15.50 $16.35 $17.31 $18.30 $19.37 $19.89 CNB has grown its balance sheet by $242 million since 2006, an absolute growth rate of 85.9% and a compound annual growth rate of 8.0% Page 20

21 Financial Highlights Book Value and Dividends Per Share Book Value Per Share $20.00 $18.00 $0.86 $16.00 $14.00 $12.00 $14.40 $0.90 $0.91 $1.00 $14.88 $14.55 $14.88 Dividend Per Share $1.20 $1.00 $0.82 $0.84 $0.86 $0.86 $0.86 $0.86 $0.80 $19.37 $19.89 $0.60 $18.30 $17.31 $16.35 $0.40 $15.50 $0.20 $ /31/2015 $0.00 Book value per share Dividends per share The Company has consistently increased its book value per share over the past 9 years, while still maintaining a strong dividend to its shareholders CNB has boosted its book value per share by $5.49 since 2006 for a compound annual growth rate of 4.1% and an overall growth rate of 38.1% Since 2006, the Company has achieved an annualized return of approximately 7.5% (book value accretion plus dividend payout), which outperformed other bank indexes during that same time frame (as an example, the SNL Micro Cap Index returned approximately -5.5% annually during the same time period) * Note: 2015 dividend per share of $0.86 is the anticipated annualized dividend. $0.32 has been paid through May 31, Page 21

22 Financial Highlights Loans & Deposits Loan Composition 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 9.6% 9.9% 10.3% 10.4% 7.2% 3.4% 7.9% 6.2% 4.8% 4.0% 17.4% 14.1% 16.3% 16.1% 16.8% 29.6% 29.3% 29.3% 28.3% 30.9% 38.8% 38.5% 39.4% 40.6% 41.1% Note: Other loans include farm, agricultural, construction, and multifamily loans. March 31, 2015 Loan Breakdown CNB s loan portfolio is very well diversified and not primarily tied to any one lending sector Other Consumer Commercial & Industrial Commercial Real Estate 1-4 Family Residential Commercial & Industrial, 18.0% Commercial Real Estate, 30.2% Consumer, 3.5% Other, 0.0% 1-4 Family Residential, 41.4% Deposit Composition 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 6.2% 4.7% 3.8% 2.9% 2.4% 19.4% 19.4% 15.1% 13.5% 11.0% 17.3% 16.3% 16.5% 16.3% 18.5% 22.4% 23.3% 35.8% 34.1% Note: Information shown is at the bank level. 24.5% 27.1% 30.0% 39.3% 40.2% 40.2% CD's greater than $250,000 CD's less than $250,000 Noninterest Bearing Accounts Other Transaction Accounts Money Market & Savings Accounts March 31, 2015 Deposit Breakdown CD's less than $250,000, 9.6% Noninterest Bearing Accounts, 14.1% Other Transaction Accounts, 29.6% CD's greater than $250,000, 2.7% CNB maintains over 45,000 customer deposit accounts and has no dominant concentration Money Market & Savings Accounts, 44.0% Page 22

23 Financial Highlights Loan Loss Provisions and Net Charge Offs $ in 000s $2,500 $2,000 $1,945 $1,915 $1,500 $1,000 $500 $1,579 $748 $551 $1,098 $1,355 $1,245 $644 $406 $1,176 $1,116 $254 $237 $ Q Provision Expense Net Charge Offs CNB maintains a conservative approach to its loan portfolio, adequately provisioning for loan losses on a regular basis and most often times having to charge off less than provision Page 23

24 Financial Highlights Capitalization Leverage & Total Risk Based Capital Ratios 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 12.64% 12.74% 12.06% 11.99% 12.11% 12.03% 12.12% 8.57% 8.50% 8.14% 7.88% 7.87% 7.85% 7.71% Q Leverage Ratio Total Risk Based Capital Ratio Tangible Common Equity/Tangible Assets 9.00% 8.50% 8.00% 7.50% 7.00% 6.50% 6.00% 5.50% 5.00% 8.48% 8.44% 8.11% 7.77% 7.74% 7.45% 7.32% Q Note: Information shown is at the bank level Page 24

25 Contact Information Hillsdale County National Bank Main Office: One South Howell St. Hillsdale, MI P: (517) Toll Free: (888) Contacts: Craig S. Connor President & CEO P: (517) Mary P. Marshall VP & Senior Trust Officer P: (517) John R. Waldron Senior VP & Senior Loan Officer P: (517) Sharon L. Burns VP & CFO P: (517) Page 25