Level One Bancorp (FRMEP) 8-K/A Consolidated Financial Statements

Exhibit 99.2

ANN ARBOR BANCORP, INC.

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2019

Table of Contents

		Page
1	Consolidated Balance Sheets as of December 31, 2019 (unaudited) and 2018 (audited).	2
2	Consolidated Statements of Income for the years ended December 31, 2019 (unaudited) and 2018 (audited).	3
3	Consolidated Statements of Shareholders' Equity for the years ended December 31, 2019 (unaudited) and 2018 (audited).	4

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ANN ARBOR BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)	December 31, 2019			December 31, 2018
Assets	(unaudited)			(audited)
Cash and cash equivalents	$	38,480		$	7,685
Securities available-for-sale	47,403			56,147
Federal Home Loan Bank stock	923			923
Mortgage loans held for sale, at fair value	1,676			1,281
Loans held for investment	222,079			234,775
Less: Allowance for loan losses	(1,660		)	(1,793		)
Net loans	220,419			232,982
Premises and equipment, net	3,183			3,345
Bank owned life insurance	5,563			5,429
Other assets	2,349			2,041
Total assets	$	319,996		$	309,833
Liabilities
Deposits:
Noninterest-bearing demand deposits	$	76,416		$	73,532
Interest-bearing demand deposits	188,083			178,603
Total deposits	264,499			252,135
Borrowings	15,000			20,500
Other liabilities	762			396
Total liabilities	280,261			273,031
Shareholders' equity
Common stock and surplus	20,184			20,449
Retained earnings	19,125			16,922
Accumulated other comprehensive income (loss), net of tax	426			(569		)
Total shareholders' equity	39,735			36,802
Total liabilities and shareholders' equity	$	319,996		$	309,833

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ANN ARBOR BANCORP, INC.

CONSOLIDATED STATEMENT OF INCOME

	For the year ended December 31,
(In thousands, except per share data)	2019		2018
Interest income	(unaudited)		(audited)
Loans, including fees	$	12,480	$	11,606
Securities:
Taxable	735		740
Tax-exempt	510		624
Federal funds sold and other	427		246
Total interest income	14,152		13,216
Interest Expense
Deposits	2,563		1,722
Borrowed funds	421		309
Total interest expense	2,984		2,031
Net interest income	11,168		11,185
Provision expense for loan losses	375		225
Net interest income after provision for loan losses	10,793		10,960
Noninterest income
Service charges and other income	758		717
Net gain on sale of loans	1,346		1,054
Net gain on sale of securities	192		60
Total noninterest income	2,296		1,831
Noninterest expense
Salary and employee benefits	5,410		5,026
Occupancy and equipment expense	1,168		1,112
Marketing expense	113		131
Outside services expense	1,376		465
FDIC insurance expense	21		86
Other general and administrative expenses	1,385		956
Total noninterest expense	9,473		7,776
Income before income taxes	3,616		5,015
Income tax provision	667		876
Net income	$	2,949	$	4,139

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ANN ARBOR BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Dollar in thousands)	Common Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Shareholders' Equity
Balance at December 31, 2017 (audited)	$	19,626		$	13,672		$	(151	)	$	33,147
Net income				4,139						4,139
Other comprehensive loss							(418		)	(418		)
Deferred shares plan	73									73
Dividends paid				(889		)				(889		)
Stock options exercised	700									700
Restricted stock issued to employees	32									32
Stock-based compensation expense	18									18
Balance at December 31, 2018 (audited)	$	20,449		$	16,922		$	(569	)	$	36,802
Net income				2,949						2,949
Other comprehensive income							995			995
Deferred shares plan payout	(470		)							(470		)
Dividends paid				(704		)				(704		)
Market value adjustment of equity investments due to adoption of ASU 2016-01				(42		)				(42		)
Stock options exercised	170									170
Restricted stock issued to employees	34									34
Stock-based compensation expense	1									1
Balance at December 31, 2019 (unaudited)	$	20,184		$	19,125		$	426		$	39,735

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