BUILT ON STRENGTH. WELL PLACED FOR THE

Built on
strength.
well placed
for the
future.
2 013 Annual Report
Financial Corporation
Letter to our sharehoLders
on behalf of the Board of directors, we are pleased to
present the 2013 annual report to the shareholders of
range financial corporation, the holding company for
range Bank.
range Bank was chartered in 1887 and during 2013 we
celebrated 126 years in business. Many things have
changed since we first opened our doors but one thing
that has held steady is our unwavering commitment to
serving our customers and helping them achieve their
financial goals. we are proud of our history and feel that
we are well placed to continue growing and strengthening
our bank well into the future. our assets continue to grow
and as of december 31, 2013 were over $281 million. in
addition we manage $263 million in sold loans as well as
business sweep accounts, and trust and wealth
Management assets bringing our total assets under
management to $544 million.
i am pleased to report that the financial performance of
our corporation for 2013 was strong with net income of
$2,132,000. this marks the fifth consecutive year that net
income has exceeded $2 million. the top priority of range
financial corporation continues to be maintaining strong
asset quality. additionally, we are proud of the growth
and earnings we have maintained through the economic
challenges of the last several years. these results would
not have been possible without the commitment of our
highly experienced, hard working staff and the stewardship
of your Board of directors.
we are very happy with all that we have accomplished in
2013 and feel that the long-term strategic changes we
have made to address our space needs will position us
well for the growth we anticipate in the future. on March
18, 2013 we opened our new 4,200 square-foot branch
office in negaunee. we were also successful in closing the
sale of our negaunee Main office to the YMca and feel
this change will be positive for the negaunee community.
it has also been exciting to see the progress we have
made on our new headquarters located in downtown
Marquette. we are proud to be the only bank located in
Marquette that also has its headquarters in Marquette.
our new headquarters houses our executive offices and
trust and wealth Management department along with
teller, new account services and the home Mortgage
services department as well as our administrative
departments. the only remaining area to be renovated is
the commercial lending area which will be completed
sometime in 2014.
in the less than two years since they began operations,
our trust and wealth Management department has made
excellent progress. assets have grown to over $30 million,
well exceeding our expectations. we’re confident that
providing an unbiased, non-commissioned approach to
investing, along with providing a personal touch, is what
makes us unique. we encourage you to call danny
dawidowski at 906-226-4043 and discuss how our trust
and wealth Management team can help you with your
estate planning and investment goals.
as always, we hope to see you at our annual meeting of
shareholders to be held on May 20, 2014. please note
that we have changed the meeting location to the Masonic
Building in downtown Marquette. we will provide
transportation for our west-end shareholders through
checker Bus. the departure time from negaunee will be
scheduled to allow enough time to tour our new
headquarters prior to the start of the meeting. please
look for additional details in your annual Meeting notice.
it has been a pleasure to serve our shareholders during
2013. on behalf or our directors, management and staff, i
thank you for your continued support. if you have any
questions or comments, please feel free to contact me at
[email protected] or 906-228-8041.
sincerely,
Kenneth a. palmer
chairman, president & chief executive officer
ExEcutivE
managEmEnt
tEam
chucK MunK
community president
dickinson county
Kenneth a. palMer
roxanne M. daust
tiMothY J. Baroni
chairman, president & ceo
executive Vice president
community president
copper country
terrY l. Jutila
dannY M. dawidowsKi
John c. frost
senior Vice president &
chief credit officer
senior Vice president
trust & wealth Management
Vice president &
chief financial officer
unwaivering Commitment
Many things have changed since we first opened our doors in 1887, but one thing that has held
steady is our unwaivering commitment to serving our customers and helping them achieve their
financial goals. the recent investment of our headquarters in downtown Marquette shows strength
in our company and our continuing efforts to better serve the people of the upper peninsula. we
are grateful for our customers’ enduring loyalty and we are honored to be an integral part of the
communities we serve.
strong in all the
right places
range Bank is built on the dedication and
experience of our people. we strive to do the
right thing for our customers and it shows.
range Bank is an upper Peninsula leader in a
number of ways, but there are three areas in
which we excel. as our customers will tell you,
our mortgage Lending, Business Banking, and trust
and wealth management teams are exceptional.
strong in trust &
strong in
weaLth management
Business Banking
Our trust & Wealth management
professionals have the dedication,
experience, and knowledge to help
families navigate their financial future.
Our customers have told us that our
approach to providing an un-biased,
non-commissioned approach to investing
along with providing the personal touch
is what makes us unique. trust & Wealth
management is the newest addition to
our product and service line-up and has
enhanced our long-standing tradition
of providing superior financial services
to the people who live and work in the
communities we serve.
a growing number of upper Peninsula
businesses bank with Range Bank.
that’s because we offer the resources
of a larger bank along with a thorough
understanding of local needs and
challenges. the professionals on our
business banking team average 23
years of banking experience. Our
business bankers are trusted advisors
who are accessible, knowledgeable,
and provide one-on-one service to
business clients of all sizes. all loan
decisions are made locally, and with
locations throughout the central and
western upper Peninsula, we’re right
where local companies need us.
strong in
mortgage Lending
Range Bank has been helping
upper Peninsula families make
homeownership a reality for 126
years. Service is a top priority and
all mortgage decisions are made
locally by professionals who live in
the community and understand local
needs. Range Bank is also committed
to servicing our mortgages after closing
so customers can call us anytime. We
believe that home ownership is the key
to building strong communities. that is
why we have made it a priority to build
exceptionally strong mortgage teams
throughout the markets we serve.
Brian Syrjala, Vice President & Mortgage Business
Development Officer
Angie Knauss, Vice President & Mortgage Loan Officer
strong in Community
community has always been important to the people of the upper Peninsula. and, from
the day we opened our doors 126 years ago, community has been important to us. Strong
communities enrich lives, support business, and provide a sense of continuity. Helping to
build stronger communities is always a good investment. Here are just a few of the local
events and programs that we support:
• United Way
• Evergreen Award
• YMCA
• NMU Foundation
• Bay Cliff
• Superior Health Foundation
• Great Lake Center for Youth Development
• Big Brothers Big Sisters
• Beacon House
• Calumet Theater
• Pine Mountain Music Festival
• Dial Help
• Keweenaw Community Foundation
• Dickinson Area Community Foundation
• XTERRA
• Marquette Rail Jam
strong in future
We’re proud of our heritage, and
we’re focused on our future. Our new
headquarters, new negaunee office,
our expert teams, and our involvement
in strengthening the communities we
serve all add up to a bank that is moving
forward — a bank that is ready for
whatever the future brings.
Negaunee office ribbon cutting
Asset growth
deposit growth
$281,016,000
300,000,000
$246,411,000
250,000,000
250,000,000
200,000,000
$152,377,000
$177,882,000
200,000,000
150,000,000
150,000,000
100,000,000
dec dec dec dec dec dec dec dec dec dec dec
dec dec dec dec dec dec dec dec dec dec dec
03 04 05 06 07 08 09 10
11
12
LoAn growth
160,000,000
11
12
13
book VALue
$172,082,000
180,000,000
03 04 05 06 07 08 09 10
13
$154.03
160
140
$124,247,000
120
140,000,000
100
120,000,000
$79.82
80
100,000,000
60
dec dec dec dec dec dec dec dec dec dec dec
03 04 05 06 07 08 09 10
11
12
dec dec dec dec dec dec dec dec dec dec dec
13
03 04 05 06 07 08 09 10
11
12
13
net income growth
$2,132,000
250,000,000
FINANCIALLY
STRONG AND
WELL POSITIONED
FOR THE FUTURE.
$1,713,000
200,000,000
150,000,000
100,000,000
dec dec dec dec dec dec dec dec dec dec dec
03 04 05 06 07 08 09 10
11
12
13
combined stAtement of condition (unAudited)
As of December 31,
Assets
Cash and due from banks
Investment securities
Held to maturity
Available for sale (stated at fair value)
Federal funds sold and securities
Purchased under agreements to resell
Loans, net of unearned income
Allowance for possible loan loss
Loans, net
Bank premises, furniture and equipment
Real estate owned other than bank premises
Goodwill
All other assets
Total Assets
2013
2012
12,854,000
44,764,000
82,085,000
172,082,000
(2,029,000)
170,053,000
10,867,000
76,000
1,772,000
3,309,000
$281,016,000
59,751,000
157,622,000
(1,971,000)
155,651,000
8,910,000
161,000
1,772,000
3,049,000
$274,058,000
246,411,000
126,253,000
120,158,000
6,989,000
$253,400,000
239,767,000
113,886,000
125,882,000
6,587,000
$246,355,000
180,000
4,917,000
22,473,000
46,000
180,000
4,961,000
21,202,000
1,360,000
$27,616,000
$27,703,000
$281,016,000
$274,058,000
$1,179,000
$1,555,830
Liabilities
Total deposits
Total demand deposits
Total time and savings deposits
All other liabilities
Total Liabilities (excluding subordinated notes and debentures)
Equity Capital
Common stock ($1 par value)
1,000,000 shares authorized, 179,286 shares outstanding
Capital in excess of par
Retained earnings
Unrealized gain (loss) on securities available for sale
Total Equity Capital
Total Liabilities and Equity Capital
Memo Item: Standby Letters of Credit
ASC 820 VAluAtion – SeCuritieS Footnote
Y to Y
DATe
No.
PAR
Book
MARkeT
12/31/13
226
80,620,384
82,114,789
82,189,129
GAIN/LoSS
74,340
12/31/12
190
54,851,462
56,174,240
58,367,907
2,193,667
CHANGe
36
25,768,922
25,940,549
23,821,222
(2,119,327)
Book-PAR CHANGe
171,627
combined stAtement of income
As of December 31,
2013
2012
9,356,000
10,476,000
895,000
921,000
816,000
951,000
11,172,000
12,243,000
Interest expense on deposits
Interest expense on borrowings
Total Interest Expense
1,193,000
94,000
1,287,000
1,336,000
322,000
1,658,000
Net interest income
Provision for loan losses
Net Interest Income After Provision for Loan Losses
9,885,000
(270,000)
9,615,000
10,585,000
(330,000)
10,255,000
378,000
1,690,000
2,068,000
424,000
1,019,000
1,443,000
Salaries and employee benefits
occupancy
other operating expenses
Total Operating Expenses
5,264,000
931,000
2,996,000
9,191,000
5,003,000
798,000
2,942,000
8,743,000
Income before provision for income taxes
Provision for income taxes
Income before other gains and losses
Security gains (losses)
extraordinary gains (losses)
Net Income
2,492,000
(537,000)
1,955,000
177,000
2,955,000
(659,000)
2,296,000
153,000
2,132,000
2,449,000
2013
2012
11.89
13.64
Interest Income
Interest and fees on loans
Interest on investment securities:
Taxable
Tax-exempt
other interest income
Total Interest Income
Interest Expense
Other Income
Service charges
other operating income
Total Other Income
Operating Expenses
Earnings Per Common Share
5 YeAr summArY
(in thousands of dollars, except per share data)
2013
2012
2011
2010
2009
$281,016
246,411
170,053
82,085
27,616
$274,058
239,767
155,651
59,751
27,703
$266,485
228,137
155,136
60,283
25,704
$254,217
214,874
153,600
70,104
23,442
$242,345
199,237
159,792
59,507
22,349
2013
2012
2011
2010
2009
13,417
10,748
537
2,132
0.77%
7.28%
13,839
10,731
659
2,449
0.89%
8.61%
13,473
10,800
568
2,105
0.80%
8.09%
$14,107
11,434
518
2,155
0.83%
8.76%
$15,590
12,238
811
2,541
1.04%
10.95%
2013
2012
2011
2010
2009
$11.89
4.80
$154.03
$13.64
4.80
$154.26
$11.89
4.60
$145.15
$12.22
4.20
$132.91
$14.23
4.20
$125.15
As of December 31,
At Year End
Total assets
Total deposits
Net loans
Investments
Capital funds
Earnings
operating income
operating expense
Income tax expense
Net income
Return on average assets
Return on average equity
Per Share Data
Net income
Cash dividends
Book value
reconciLiAtion of eQuitY cApitAL Accounts
Balance, as of December 31, 2012
Net income
Cash dividends declared, $4.80 per share
Issuance of shares
Acquisition of shares outstanding
Change in unrealized gain (loss) on
securities available-for-sale, net of
applicable deferred income taxes
Balance, as of December 31, 2013
Unrealized Gain
(Loss) on Securities
Available for Sale
Common
Stock
Retained
earnings
$5,141,485
$21,201,729
2,131,763
(860,563)
$1,360,073
$27,703,287
2,131,763
(860,563)
166,257
(210,504)
(1,313,982)
$46,091
(1,313,982)
$27,616,258
166,257
(210,504)
$5,097,238
$22,472,929
Total
Stockholders’
equity
reconciLiAtion of reserVe for bAd debt
As of December 31,
Balance beginning of period
Recoveries credited to reserve
Provision for possible loan losses
Losses charged to reserve
Balance End of Period
2013
$1,971,000
22,000
270,000
(234,000)
$2,029,000
2012
$1,976,000
136,000
330,000
(471,000)
$1,971,000
range financial corporation
range BanK, n.a.
Kenneth a. palmer, chairman, president & ceo
peter w. frazier, chairman, fraco, inc.
anita a. Johns, holiday travel Vacations
allen l. Koskey, retired, Koskey funeral home
anthony n. Kroncich, cpa, president, Kroncich & associates
peter a. lafreniere, dds, dental practice
John f. Marshall, retired, lake superior & ishpeming
railroad co.
John f. pillote, M.d., retired, physician
paul r. symons, president, symons hardware
william c. Verrette, owner/director, champion, inc.
Karl a. weber, partner, plunkett & cooney law firm
Kenneth a. palmer, chairman, president & ceo
peter w. frazier, chairman, fraco, inc.
anita a. Johns, holiday travel Vacations
allen l. Koskey, retired, Koskey funeral home
anthony n. Kroncich, cpa, president, Kroncich & associates
Janet r. Kuru, retired ceo, range Bank – copper country
peter a. lafreniere, dds, dental practice
anthony p. locatelli, co-owner, locatelli construction co.
John f. Marshall, retired, lake superior & ishpeming
railroad co.
John f. pillote, M.d., retired, physician
Bruce a. rukkila, cpa, Ma, cVa, cepa, owner, rukkila
negro and associates, certified public accountants, pc
paul r. symons, president, symons hardware
stephen d. Vairo, president, calumet electronics corp.
william c. Verrette, owner/director, champion, inc.
Karl a. weber, partner, plunkett & cooney law firm
Board of direCtors
offiCers
Kenneth a. palmer, chairman, president & ceo
roxanne M. daust, Vice president
John c. frost, treasurer
John w. lenten, secretary
linda M. turri, assistant secretary
Board of direCtors
offiCers
Kenneth a. palmer, chairman, president & ceo
roxanne M. daust, executive Vice president
timothy J. Baroni, community Bank president
copper country
charles d. Munk, community Bank president
dickinson county
terry l. Jutila, senior Vice president & chief credit officer
danny M. dawidowski, senior Vice president
trust & wealth Management
John c. frost, Vice president & chief financial officer
charlotte l. gaudreau, Vice president
Kelly l. Jandron, Vice president
angela M. Knauss, Vice president
John w. lenten, cpa, Vice president
James p. Markham, Jr., Vice president
sally l. shaver, Vice president
Brian l. syrjala, Vice president
Kristy M. sibilsky, Vice president
christopher h. deroche, Vice president
Kelli J. hendrickson, assistant Vice president
linda M. turri, assistant Vice president
glenn a. Johnson, compliance officer
cheryl l. o’Brien, Branch Manager and loan officer
christopher J. gobert, Branch Manager and loan officer
Michelle M. Mclaughlin, senior credit analyst
Kimberley s. Kaura, Branch Manager and loan officer
Kristin d. Knapp, Branch Manager and loan officer
corporate office
range financial corporation
100 north front street
Marquette, Mi 49855
(906) 226-1025
rangebank.com
Marquette countY
copper countY
dicKinson countY
Marquette headquarters
negaunee
Marquette, Mcclellan avenue
Marquette, third street
Marquette township
harvey
Koski Korners
calumet avenue
houghton
lake linden
Kingsford
quinnesec
range Bank is a wholly-owned
subsidiary of range financial
corporation and is locally owned and
managed to best serve the needs of
the families and businesses in the
communities it serves.