2020DART FINANCIAL CORPORATION

96th ANNUAL REPORT

Fast

& Reliable Relat

ionsh

ip B

anking

•DART FINANCIAL CORPORATION

Our Niche is to provide Fast & Reliable Relationship Banking.

Throughout Dart Bank’s ninety-six year history, the one thing that has never changed is our

promise to provide fast and reliable relationship banking. We kept that promise, even through the

challenging events of 2020. Our commercial team worked swiftly to provide 646 loans through the

Paycheck Protection Program, helping local businesses and their employees. In 2020, our mortgage

team assisted over 3,400 homeowners with the purchase of a new home and/or refinance.

Together, our Dart Bank family successfully delivered fast and reliable relationship banking.

Our investments in new

technology gave our

customers the ability to bank

anytime, anywhere.

When our communities

needed us most, our banking

lobbies stayed open, ready to

assist with banking needs.

Dart Bank proudly supports

the strong relationships we

continue to build within our

communities.

Fast Reliable Relationship Banking

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Our Niche . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Letter to Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Five-Year Comparative Balance Sheets . . . . . . . . . . . . . . . . . . . . .

Five-Year Comparative Statements of Income . . . . . . . . . . . . . .

Dart Bankers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dart Bank Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Board of Directors / Our Values . . . . . . . . . . . . . . . . . . . . . . . . . .

2020 Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFC

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Our primary purposes are to meet the financial needs of our banking communities, protect and increase the value of stockholders’ investments

and serve the community in financial and non-financial ways.

OUR MISSION

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TABLE OF CONTENTS

96TH ANNUAL REPORT

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Last year was an eventful year for your bank as we made our way through a global pandemic. We led with the bank’s timeless values of Integrity, Engagement, Forward Thinking and Caring as our compass. These values made decision making straightforward and allowed the bank to care for our employees and customers, while delivering financial results for our shareholders. We accomplished a record year in every area of our bank while serving customers when they needed us the most. We did these things the way we have been doing them for over ninety-six years, by building mutually beneficial relationships. We are continuing to build your bank into something that is not only a great financial investment, but also something that you can have a pride of ownership in, knowing you are part of something that is making a difference in this world. We continually evaluate everything within the bank and are confident in our employees, management, systems, and financial strength of Dart Bank to be able to manage through prosperous, as well as difficult times.

Non-interest income increased 129.6% over last year and was largely responsible for the upsurge in net profit. Net profit for 2020 was $9,802,000, producing earnings per share of $8.54. This is reflective of the best year on a net income and earnings per share basis in the bank’s ninety-six year history. The largest source of these revenues derive from mortgage banking fees. The majority of these fees are from the selling and servicing of residential mortgage loans into the secondary market. In 2020, our mortgage bankers assisted over 3,400 homeowners with the purchase of a new home and/or refinance of their existing mortgage. With over 3,400 loans and over $700 million dollars in loan volume, 2020 was a record year for Dart Bank.

Loans in 2020 increased by almost $170 million and deposits increased by almost $124 million. Most of this loan growth was attributed to SBA Paycheck Protection Program Loans (PPP Loans) which the bank participated in to help businesses and their employees. The deposit growth is reflective of all areas of the bank, including individual, commercial and specialty banking customers. Overall, total assets grew roughly $132 million during 2020.

Additionally, in 2020 the bank experienced significant growth within the specialty banking division. This division was established in collaboration with our regulators, the FDIC and the State of Michigan to help serve our communities and the entire state of Michigan by banking select, legal and licensed marijuana-related businesses. This line of business requires an advanced level of compliance standards that have been developed and adopted in collaboration with our regulators.

The value of each of your shares, as determined by CAMELS Consulting Group, LLC, was $44.20 as of 2020 year-end. This represents a 9.4% increase over the prior year period. Dividends paid during the year were $1.25 per share and represented the highest level of dividends paid in Dart Bank’s history. In recent years, significant steps have been taken to increase the liquidity in the trading of shares of Dart stock. Examples include a stronger effort in marketing of the bank through our Investor Relations Representative, the Dividend Reinvestment Plan, the 2018 Share Repurchase Initiative, and funding the employee profit sharing plan with Dart shares. The Board of Directors continue to evaluate ways to enhance the liquidity of your holdings, and you can expect to hear more on this subject in 2021.

LETTER TO SHAREHOLDERS

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John GrettenbergerChairman of the Board

William HufnagelPresident/CEO

The cover of this year’s annual report features Dart Bank’s niche: Fast and Reliable Relationship Banking. With the bank’s investment in our people, technology and management operating systems, we had the opportunity to not only deliver on that niche, but also grow. When COVID hit in March, we swiftly executed a pandemic plan to keep our employees and customers safe, while also keeping our lobbies open to serve those that needed us. With the hard work and dedication of our staff, we quickly secured PPP loans for our customers in a timely manner. Through this process, we gained a number of new customers who were not being similarly supported by their banks and credit unions. In addition, Dart Bank opened a loan production office in Lake Orion, Michigan to serve within that community. Keeping with our new tradition, the Annual Meeting of Shareholders will be held at the Mason Headquarters, located at 368 S. Park Street, Mason, MI on Tuesday, April 27, 2021, beginning at 6:30 p.m. We will have a live stream option available in the event you cannot attend in person, or based on COVID restrictions. The Board of Directors and members of management look forward to meeting you and answering your questions. We thank you for all of your support and look forward to continuing to serve you at your bank.

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(as of December 31)FIVE - YEAR COMPARATIVE BALANCE SHEETS

(as of December 31)

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FIVE - YEAR COMPARATIVE STATEMENTS OF INCOME

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Jennifer Abend

Lisa Ackerly

Brennan Andrews

Emily Anomanni

Bill Armstrong Jr

Shannon Arnett

Rachel Bakken

Amanda Barber

Shadd Barnes

Jessica Barrett

Stefani Bertrand

Liberty Bleicher

Michael Bleicher

John Blossey

Kayla Bollis

Amber Boyce

Danielle Boyle

Carrie Breslin

Barbara Brevick

Colleen Briggs

Lauren Bromley

Karen Brook

Kyle Brooks

Jennifer Brunner

Danielle Bull

Jeri Calabrese

Michelle Carpenter

Faye Christoff

Ben Clark

Emma Clark

Aron Clark

Bryan Clark

Debbie Collins

Elizabeth Cooper-Rigg

Leia Cooper-Rigg

Scott Cornell

Doug Crips

Lori Crooks

Andrea Daniel

Jamie Davis

Megan Desrochers

Kaleb Dodson

Jill Dunn

(and their years of service)Luisa Ellena

David Farhat

Sam Fata

Nathan Feldpausch

Dana Ferguson

Paige Ferguson

Janice Floria

Dylan Fox

Sandy Giancotti

Nicole Girth

Adam Goss

Bella Hadley

Angie Harcus

Kim Harless

Hunter Hawes

Jena Hazlewood

Kathe Heaslip

Dawn Hendrickson

Brittany Hertz

Jeff Hicks

Mark Howe

Bill Hufnagel

Hollie Husted

Connie Ireland

Aj Jakus

Sara James

Renee Jerisk

Erica Johnson

Linda Jones

Michael Joseph

Joe Joseph

Marc Jurcisin

Maria Kane

Tammy Kennon

Devin Lavengood

Brittany Lawe

Marie Lazarus

Dawn Lindsey

Emily Lindstrom

Kathy Lorenz

Adam Lott

Kelcy Love

Lin Lupinski

Bobbie Maas

Debra Mack

Madison Maloney

Keagin Malott

Judy Mason

Amanda Mayes

Vicie McClung

Eric McLear

Tom McLinden

Kelly Merritt

Cathy Miller

Becky Moore

Delany Morris

John Morris

Jonathon Mykala

Spencer Mykala

Jon Mykala

Kate Nickels

Nana Ntiamoah

Cameron O Connor-Lowe

Ashley O Neil

Karen Oatley

Tara Owens

Sheila Pawlowski

Nicole Perry

Sandi Petherbridge

Luca Porco

Amy Powers

Denise Powers

Pamela Pudvan

Jill Raab

Sally Rae

Kassie Rhodes

Jessica Rieke

Ben Robbins

Kayla Robbins

Tammy Robinson

Will Robinson

Lindsey Rodriguez

Jennifer Ross

Lori Ross

Patty Ruedisueli

Michelle Rushford

Jennifer Salazar

Greg Salisbury

Lori Sallek

Emma Sambaer

Joe Sambaer

Jerry Sambaer

Tim Sambaer

Emily Seykora

Maureen Sheahon

Amy Sheppard

Jason Sheridan

Anna Shipman

Cassandra Short

Jessica Smith

Jessica Soldan

Alisha Sorensen

Abbie Speer

Amber Spencer

Karla Spoor

Ron Sprayman

Ken Stump

Crystal Styka

Jordan Thurston

Dom Todd

Mary Tressel

Ivy Truitt

Chris Trumble

Mike Unkovich

Terrell Wade

Tamica Walker

Lori Wallace

Heather Walters

Melissa Walton

Cameron Weaver

Tim Weaver

Ethan Webster

Susan Webster

Autumn Welk

Katie Wilkinson

Steve Willemin

Cody Witter

Jessica Wright

Dustyn Wynecoop

Jim Young

Taylor Zietlow

Susan Zivic

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8

5

3

2

23

1

11

2

8

1

20

5

2

12

7

1

4

4

6

2

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DART BANKERS

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DART BANK MANAGEMENT TEAM

Brennan AndrewsMARKETING DIRECTOR

Stefani BertrandMORTGAGE LOAN MANAGER

John BlosseyVICE PRESIDENT/CHIEF CREDIT OFFICER

Colleen BriggsASSISTANT VICE PRESIDENT/CONSUMER LENDER/ COMMUNITY RELATIONS OFFICER/CRA

Danielle BullVICE PRESIDENT/CONTROLLER

Michelle CarpenterVICE PRESIDENT/BUSINESS SERVICES-INVESTOR RELATIONS OFFICER

Bryan ClarkSR. VICE PRESIDENT/MORTGAGE BANKING

Debbie CollinsEMPLOYEE AND PROCESS DEVELOPMENT MANAGER

Leia Cooper-RiggRECRUITING AND ENGAGEMENT

Scott CornellVICE PRESIDENT/IT OFFICER

Andrea DanielSECONDARY SYSTEMS MANAGER

Jamie DavisCREDIT OFFICER

Luisa EllenaCONTACT CENTER MANAGER

David FarhatQUALITY ASSURANCE MANAGER

Dana FergusonVICE PRESIDENT/DEPOSIT AND PAYMENTS STRATEGIST

Adam GossVICE PRESIDENT/COMMERCIAL RELATIONSHIP MANAGER

Kim HarlessVICE PRESIDENT/TREASURY MANAGEMENT OFFICER

Jeff HicksVICE PRESIDENT/COMMERCIAL RELATIONS OFFICER

Mark HoweVICE PRESIDENT/COMMERCIAL RELATIONSHIP MANAGER

William HufnagelPRESIDENT & CEO

Joe JosephSR. VICE PRESIDENT/MORTGAGE BANKER

Devin LavengoodVICE PRESIDENT/COMMERCIAL RELATIONSHIP MANAGER

Debra MackSR. VICE PRESIDENT/SPECIALTY BANKING MANAGER

Becky MooreDEPOSIT OPERATIONS MANAGER

John MorrisVICE PRESIDENT/COMMERCIAL RELATIONSHIP MANAGER

Karen OatleyOFFICE MANAGER

Tara OwensVICE PRESIDENT/RISK OFFICER

Nicole PerryASSISTANT VICE PRESIDENT/TREASURY MANAGEMENT OFFICER

Sandi PetherbridgeLOAN OPERATIONS ASSISTANT MANAGER

Jill RaabLOAN DOCUMENTATION MANAGER

Sally RaeEXECUTIVE VICE PRESIDENT/COMMUNITY BANK ADMINISTRATOR

Kassie RhodesVICE PRESIDENT/COMMERCIAL RELATIONSHIP MANAGER

Jerry SambaerVICE PRESIDENT/CHIEF FINANCIAL OFFICER

Tim SambaerCOO/MORTGAGE BANKING

Karla SpoorSR. VICE PRESIDENT/HUMAN RESOURCES DIRECTOR

Crystal StykaQUALITY CONTROL & POST CLOSE MANAGER

Mary TresselSPECIAL ASSETS OFFICER

Tamica WalkerMORTGAGE CLOSING MANAGER

Susan WebsterVICE PRESIDENT/LOAN OPERATIONS OFFICER

Autumn WelkTRAINING AND DEVELOPMENT SPECIALIST

Jessica WrightOFFICE MANAGER

Jim YoungOFFICE MANAGER

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DART BANK VALUES

INTEGRITY • ENGAGED • FORWARD THINKING • CARING

BOARD OF DIRECTORS

Peter A. Kubacki

Kira Carter-Robertson

Blake D. Mulder

John O. Grettenberger CHAIRMAN

Melanie S. Dart VICE CHAIRMAN

William J. Hufnagel PRESIDENT/CEO

Michelle Gallagher

Eric Brogan

Mark S. Henne

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Holt Community Food Bank

Holy Cross Services

Hospice of Lansing Stoneleigh Residence

Lansing Christian School

Lansing Parks & Recreating

Lansing Promise

Mason Area Chamber of Commerce

Mason Promise

Mason Public Schools Athletics

McLaren Greater Lansing Foundation

Mid-Michigan Recovery Service

Muscular Dystrophy Association

New World Flood

Oak Park YMCA

Old News Boys

South Lansing/Holt Rotary

Southside Community Kitchen

Sparrow Foundation

St. Thomas Aquinas

St. Vincent Catholic Charities

The City Rescue Mission of Lansing

The Davies Project

Tri County Office on Aging

Youth Haven

Alzheimer’s Association

American Cancer Society

American Red Cross

Boys and Girls Club of Lansing

Capital Area Community Services

Capital Area District Library

Capital Area Humane Society

Care Free Medical

CASA for Kids, Inc

Child and Family Charities

Chosen Vision

Dr. Martin Luther King Jr. Commission

Eaton Community Palliative Care

Eaton Rapids Medical Center

Ele’s Place

EVE

Grand Ledge Chamber of Commerce

Grand Ledge Stuff the Bus

Greater Lansing Business Monthly

Greater Lansing Food Bank

Habitat for Humanity

Haven House

Highfields

Historical Society of Michigan

We are proud to support the following organizations:

(Partial List)

2020 DONATIONS

Frandor HLC500 N. HomerLansing, MI 48912(517) 853-5100

Chelsea HLC134 W. Middle Street Suite HChelsea, MI 48118(734) 433-0922

Cascade HLC6504 28th St SE Suite S1Grand Rapids, MI 49506(616) 954-2932

Ann Arbor HLC1310 S. Main StreetAnn Arbor, MI 48104(734) 545-7701

Mason368 S. Park StreetMason, MI 48854(517) 676-3661

Holt/S. Lansing2469 N. Cedar StreetHolt, MI 48842(517) 694-5083

Grand Ledge1020 Charlevoix DriveGrand Ledge, MI 48837(517) 622-3278

Frandor500 N. HomerLansing, MI 48912(517) 679-5200

dartbank.com

Lake Orion HLC214 S. Broadway Suite #200Lake Orion, MI 48362(248) 287-8030