##### Table of Contents





SECURITIES AND EXCHANGE
COMMISSION

Washington, D.C. 20549





FORM 10-Q







|x | Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended June 30, 2011

OR



| ̈ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from              to

Commission File No. 333-169432





Wolverine Bancorp, Inc.

(Exact name of registrant as specified in its charter)







|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Maryland                                                       |  | 27-3939016                             
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification Number)
|                                                               | 
|5710 Eastman Avenue, Midland, Michigan                         |  | 48640                                  
|(Address of Principal Executive Offices)                       |  | Zip Code                               

(989) 631-4280

(Registrants telephone number)

N/A

(Former name or former address, if changed since last report)





Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90
days.    YES  x    NO   ̈.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule
405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    YES   ̈    NO   ̈.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated
filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one)



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    YES   ̈    NO  x

The number of shares outstanding of the Registrants common stock, $0.01 per share, as of August 11, 2011, was 2,507,500.









---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

Index



|                              |  |                                                                                                                                 |  |      |    | 
|----------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                              |  |                                                                                                                                 |  | Page |   
|                             
|Part I. Financial Information | 
|                              |  |                                                                                                                                
|Item 1.                       |  | Condensed Consolidated Financial Statements                                                                                     |  |      |    | 
|                              |  |                                                                                                                                
|                              |  | Condensed Consolidated Balance Sheets as of June 30, 2011 (unaudited) and December 31, 2010                                     |  |      | 1  | 
|                              |  |                                                                                                                                
|                              |  | Condensed Consolidated Statements of Operations for the Three Months and Six Months Ended June 30, 2011 and 2010 (unaudited)    |  |      | 2  | 
|                              |  |                                                                                                                                
|                              |  | Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2011 and 2010 (unaudited)                     |  |      | 3  | 
|                              |  |                                                                                                                                
|                              |  | Condensed Consolidated Statement of Changes in Stockholders Equity for the Six Months Ended June 30, 2011 and 2010 (unaudited) |  |      | 4  | 
|                              |  |                                                                                                                                
|                              |  | Notes to Condensed Consolidated Financial Statements (unaudited)                                                                |  |      | 5  | 
|                              |  |                                                                                                                                
|Item 2.                       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                           |  |      | 22 | 
|Item 3.                       |  | Quantitative and Qualitative Disclosures about Market Risk                                                                      |  |      | 29 | 
|Item 4.                       |  | Controls and Procedures                                                                                                         |  |      | 29 | 
|                             
|Part II. Other Information    | 
|                              |  |                                                                                                                                
|Item 1.                       |  | Legal Proceedings                                                                                                               |  |      | 29 | 
|Item 1A.                      |  | Risk Factors                                                                                                                    |  |      | 29 | 
|Item 2.                       |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                     |  |      | 29 | 
|Item 3.                       |  | Defaults upon Senior Securities                                                                                                 |  |      | 29 | 
|Item 4.                       |  | [Reserved]                                                                                                                      |  |      | 29 | 
|Item 5.                       |  | Other Information                                                                                                               |  |      | 29 | 
|Item 6.                       |  | Exhibits                                                                                                                        |  |      | 30 | 
|                              |  | Signature Page                                                                                                                  |  |      | 31 | 



---

##### Table of Contents

Part I. Financial Information

Item 1. Financial Statements

Wolverine Bancorp, Inc.

Condensed Consolidated Balance Sheets

(Dollars in Thousands)



|                                                              |  |              |         |   |                  |   |         | 
|------------------------------------------------------------- |  | ------------ | ------- | - | ---------------- | - | ------- | 
|                                                              |  | June 30,2011 |         |   | December 31,2010 |  
|                                                              |  | (Unaudited)  |         |   |                  |  
|Assets                                                        |  |              |         |   |                  |   |         | 
|Cash and due from banks                                       |  | $            | 484     |   |                  | $ | 386     | 
|Interest-earning demand deposits                              |  |              | 21,321  |   |                  |   | 48,550  | 
|                                                              |  |              |         |   |                  |   |         | 
|Cash and cash equivalents                                     |  |              | 21,805  |   |                  |   | 48,936  | 
|Interest-earning time deposits                                |  |              | 25,881  |   |                  |   | 14,931  | 
|Held to maturity securities                                   |  |              | 315     |   |                  |   | 388     | 
|Loans held for sale                                           |  |              | 341     |   |                  |   | 748     | 
|Loans, net of allowance for loan losses of $10,138 and $9,775 |  |              | 243,221 |   |                  |   | 233,291 | 
|Premises and equipment, net                                   |  |              | 1,537   |   |                  |   | 1,644   | 
|Federal Home Loan Bank stock                                  |  |              | 4,391   |   |                  |   | 4,609   | 
|Real estate owned                                             |  |              | 1,992   |   |                  |   | 2,375   | 
|Accrued interest receivable                                   |  |              | 861     |   |                  |   | 851     | 
|Other assets                                                  |  |              | 5,421   |   |                  |   | 6,433   | 
|                                                              |  |              |         |   |                  |   |         | 
|                                                              |  |             
|Total assets                                                  |  | $            | 305,765 |   |                  | $ | 314,206 | 
|                                                              |  |              |         |   |                  |   |         | 
|                                                              |  |             
|Liabilities and Retained Earnings                             |  |              |         |   |                  |   |         | 
|                                                              |  |             
|Liabilities                                                   |  |              |         |   |                  |   |         | 
|Deposits                                                      |  | $            | 167,251 |   |                  | $ | 174,692 | 
|Federal Home Loan Bank advances                               |  |              | 71,827  |   |                  |   | 76,795  | 
|Stock conversion related liabilities                          |  |              |        |   |                  |   | 19,108  | 
|Interest payable and other liabilities                        |  |              | 2,513   |   |                  |   | 1,667   | 
|                                                              |  |              |         |   |                  |   |         | 
|Total liabilities                                             |  |              | 241,592 |   |                  |   | 272,262 | 
|                                                              |  |             
|Commitments and Contingencies                                 |  |              |         |   |                  |   |         | 
|                                                              |  |             
|Stockholders Equity                                          |  |              |         |   |                  |   |         | 
|                                                              |  |             
|Common Stock, $0.01 par value per share:                      |  |              |         |   |                  |   |         | 
|Issued and outstanding  2,507,500                            |  | $            | 25      |   |                  | $ |        | 
|Additional paid-in capital                                    |  |              | 23,765  |   |                  |   |        | 
|Unearned employee stock ownership plan (ESOP)                 |  |              | (2,006  | ) |                  |   |        | 
|Retained earnings                                             |  |              | 42,390  |   |                  |   | 41,944  | 
|                                                              |  |              |         |   |                  |   |         | 
|                                                              |  |             
|Total stockholders equity                                    |  |              | 64,174  |   |                  |   | 41,944  | 
|                                                              |  |              |         |   |                  |   |         | 
|                                                              |  |             
|Total liabilities and stockholders equity                    |  | $            | 305,765 |   |                  | $ | 314,206 | 
|                                                              |  |              |         |   |                  |   |         | 

The accompanying notes are an integral part of these condensed financial statements.



1



---

##### Table of Contents

Wolverine Bancorp, Inc.

Condensed Consolidated Statements of Operations

(Dollars in Thousands, except per share data)



|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|--------------------------------------------------- |  | --------------------------- | ----- |  | ------------------------- | - | ------ | ---- |  | - | ----- |  |  | - | ------ | -
|                                                    |  | Three Months Ended
June 30, |       |  | Six Months Ended
June 30, |  
|                                                    |  | 2011                        |       |  | 2010                      |   |        | 2011 |  |   | 2010  | 
|                                                    |  | (Unaudited)                 |       |  | (Unaudited)               |  
|                                                    |  |                             |       | 
|Interest and Dividend Income                        |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|Loans                                               |  | $                           | 3,518 |  |                           | $ | 3,639  |      |  | $ | 7,015 |  |  | $ | 7,296  |  
|Investment securities and other                     |  |                             | 81    |  |                           |   | 160    |      |  |   | 186   |  |  |   | 328    |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|Total interest and dividend income                  |  |                             | 3,599 |  |                           |   | 3,799  |      |  |   | 7,201 |  |  |   | 7,624  |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Interest Expense                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|Deposits                                            |  |                             | 464   |  |                           |   | 828    |      |  |   | 973   |  |  |   | 1,664  |  
|Borrowings                                          |  |                             | 840   |  |                           |   | 1,050  |      |  |   | 1,650 |  |  |   | 2,129  |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|Total interest expense                              |  |                             | 1,304 |  |                           |   | 1,878  |      |  |   | 2,623 |  |  |   | 3,793  |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Net Interest Income                                 |  |                             | 2,295 |  |                           |   | 1,921  |      |  |   | 4,578 |  |  |   | 3,831  |  
|                                                    |  |                             |       | 
|Provision for Loan Losses                           |  |                             | 400   |  |                           |   | 3,180  |      |  |   | 760   |  |  |   | 3,480  |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Net Interest Income After Provision for Loan Losses |  |                             | 1,895 |  |                           |   | (1,259 | )    |  |   | 3,818 |  |  |   | 351    |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Noninterest Income                                  |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|Service charges and fees                            |  |                             | 64    |  |                           |   | 63     |      |  |   | 122   |  |  |   | 129    |  
|Net gain on loan sales                              |  |                             | 80    |  |                           |   | 123    |      |  |   | 216   |  |  |   | 213    |  
|Gross income on real estate owned                   |  |                             | 35    |  |                           |   |       |      |  |   | 92    |  |  |   |       |  
|Loan fees earned                                    |  |                             | 53    |  |                           |   | 58     |      |  |   | 119   |  |  |   | 98     |  
|Net gain on sale of real estate owned               |  |                             | 20    |  |                           |   |       |      |  |   | 75    |  |  |   |       |  
|Other                                               |  |                             | 45    |  |                           |   | 34     |      |  |   | 117   |  |  |   | 70     |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|Total noninterest income                            |  |                             | 297   |  |                           |   | 278    |      |  |   | 741   |  |  |   | 510    |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Noninterest Expense                                 |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|Salaries and employee benefits                      |  |                             | 870   |  |                           |   | 3,843  |      |  |   | 1,722 |  |  |   | 4,782  |  
|Net occupancy and equipment expense                 |  |                             | 187   |  |                           |   | 188    |      |  |   | 370   |  |  |   | 373    |  
|Information technology expense                      |  |                             | 67    |  |                           |   | 57     |      |  |   | 118   |  |  |   | 116    |  
|Federal deposit insurance corporation premiums      |  |                             | 72    |  |                           |   | 72     |      |  |   | 142   |  |  |   | 142    |  
|Professional and services fees                      |  |                             | 134   |  |                           |   | 76     |      |  |   | 288   |  |  |   | 176    |  
|Other real estate owned expense                     |  |                             | 148   |  |                           |   | 68     |      |  |   | 546   |  |  |   | 104    |  
|Loan legal expense                                  |  |                             | 31    |  |                           |   | 117    |      |  |   | 76    |  |  |   | 156    |  
|Loss on wire transfer fraud                         |  |                             |      |  |                           |   | 356    |      |  |   |      |  |  |   | 356    |  
|Other                                               |  |                             | 312   |  |                           |   | 287    |      |  |   | 617   |  |  |   | 554    |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|Total noninterest expense                           |  |                             | 1,821 |  |                           |   | 5,064  |      |  |   | 3,879 |  |  |   | 6,759  |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Income Before Income Tax                            |  |                             | 371   |  |                           |   | (6,045 | )    |  |   | 680   |  |  |   | (5,898 | )
|                                                    |  |                             |       | 
|Provision for Income Taxes                          |  |                             | 127   |  |                           |   | (2,051 | )    |  |   | 234   |  |  |   | (2,000 | )
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Net Income (loss)                                   |  | $                           | 244   |  |                           | $ | (3,994 | )    |  | $ | 446   |  |  | $ | (3,898 | )
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Earnings Per Share:                                 |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Basic                                               |  | $                           | 0.11  |  |                           |   | N/A    |      |  | $ | 0.17  |  |  |   | N/A    |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  
|                                                    |  |                             |       | 
|Diluted                                             |  | $                           | 0.11  |  |                           |   | N/A    |      |  | $ | 0.17  |  |  |   | N/A    |  
|                                                    |  |                             |       |  |                           |   |        |      |  |   |       |  |  |   |        |  

The accompanying notes are an integral part of these condensed financial statements.



2



---

##### Table of Contents

Wolverine Bancorp, Inc.

Condensed Consolidated Statement of Cash Flows

(Dollars in Thousands)



|                                                                             |  |                          |         |   |      |   |         |  
|---------------------------------------------------------------------------- |  | ------------------------ | ------- | - | ---- | - | ------- | -
|                                                                             |  | Six Months EndedJune 30, |        
|                                                                             |  | 2011                     |         |   | 2010 |  
|                                                                             |  | (Unaudited)              |        
|                                                                             |  |                         
|Operating Activities                                                         |  |                          |         |   |      |   |         |  
|Net income                                                                   |  | $                        | 446     |   |      | $ | (3,898  | )
|Items not requiring (providing) cash                                         |  |                          |         |   |      |   |         |  
|Depreciation                                                                 |  |                          | 107     |   |      |   | 124     |  
|Provision for loan losses                                                    |  |                          | 760     |   |      |   | 3,480   |  
|Writedowns of other real estate                                              |  |                          | 328     |   |      |   | 50      |  
|Amortization of Federal Home Loan Bank advances                              |  |                          | 33      |   |      |   | (238    | )
|Deferred income taxes                                                        |  |                          | 135     |   |      |   | (1,566  | )
|Gain on real estate owned                                                    |  |                          | (75     | ) |      |   |        |  
|Loans originated for sale                                                    |  |                          | (11,427 | ) |      |   | (11,266 | )
|Proceeds from loans sold                                                     |  |                          | 12,050  |   |      |   | 11,125  |  
|Gain on sale of loans, net                                                   |  |                          | (216    | ) |      |   | (213    | )
|Gain on sale of premises or equipment                                        |  |                          | (31     | ) |      |   |        |  
|Changes in                                                                   |  |                          |         |   |      |   |         |  
|Interest receivable and other assets                                         |  |                          | 866     |   |      |   | (292    | )
|Interest payable and other liabilities                                       |  |                          | 846     |   |      |   | 3,893   |  
|                                                                             |  |                          |         |   |      |   |         |  
|Net cash provided by operating activities                                    |  |                          | 3,822   |   |      |   | 1,199   |  
|                                                                             |  |                          |         |   |      |   |         |  
|                                                                             |  |                         
|Investing Activities                                                         |  |                          |         |   |      |   |         |  
|Net change in interest-bearing deposits                                      |  |                          | (10,950 | ) |      |   | (10,271 | )
|Proceeds from calls, maturities and pay-downs of held to maturity securities |  |                          | 73      |   |      |   | 1,032   |  
|Net change in loans                                                          |  |                          | (11,642 | ) |      |   | 3,871   |  
|Redemption of FHLB stock                                                     |  |                          | 219     |   |      |   |        |  
|Proceeds from sale of premises and equipment                                 |  |                          | 64      |   |      |   |        |  
|Proceeds from sale of real estate owned                                      |  |                          | 1,082   |   |      |   | 321     |  
|Purchase of premises and equipment                                           |  |                          | (33     | ) |      |   | (3      | )
|                                                                             |  |                          |         |   |      |   |         |  
|Net cash used in investing activities                                        |  |                          | (21,187 | ) |      |   | (5,050  | )
|                                                                             |  |                          |         |   |      |   |         |  
|                                                                             |  |                         
|Financing Activities                                                         |  |                          |         |   |      |   |         |  
|Net change in demand deposits, money market, checking and savings accounts   |  |                          | 2,083   |   |      |   | 14,978  |  
|Net change in certificates of deposit                                        |  |                          | (9,525  | ) |      |   | (5,973  | )
|Proceeds from stock conversion                                               |  |                          | 2,676   |   |      |   |        |  
|Proceeds from Federal Home Loan Bank advances                                |  |                          |        |   |      |   | 10,000  |  
|Repayment of Federal Home Loan Bank advances                                 |  |                          | (5,000  | ) |      |   | (15,000 | )
|                                                                             |  |                          |         |   |      |   |         |  
|Net cash provided by (used in) financing activities                          |  |                          | (9,766  | ) |      |   | 4,005   |  
|                                                                             |  |                          |         |   |      |   |         |  
|                                                                             |  |                         
|Increase (Decrease) in Cash and Cash Equivalents                             |  |                          | (27,131 | ) |      |   | 154     |  
|                                                                             |  |                         
|Cash and Cash Equivalents, Beginning of Period                               |  |                          | 48,936  |   |      |   | 23,324  |  
|                                                                             |  |                          |         |   |      |   |         |  
|                                                                             |  |                         
|Cash and Cash Equivalents, End of Period                                     |  | $                        | 21,805  |   |      | $ | 23,478  |  
|                                                                             |  |                          |         |   |      |   |         |  
|                                                                             |  |                         
|Supplemental Disclosures of Cash Flows Information                           |  |                          |         |   |      |   |         |  
|Interest paid                                                                |  | $                        | 2,660   |   |      | $ | 3,816   |  
|Income taxes paid                                                            |  |                          |        |   |      |   |        |  
|Loans transferred to real estate owned                                       |  |                          | 953     |   |      |   | 797     |  

The accompanying notes are an integral part of these condensed financial statements.



3



---

##### Table of Contents

Wolverine Bancorp, Inc.

Condensed Consolidated Statement of Changes in Stockholders Equity (Unaudited)

(Dollars in Thousands, except share data)



|                                                                    |  |             |    |  |                           |   |        |                     |  |   |                  |   |  |                          |        |  |  |   |        | 
|------------------------------------------------------------------- |  | ----------- | -- |  | ------------------------- | - | ------ | ------------------- |  | - | ---------------- | - |  | ------------------------ | ------ |  |  | - | ------ | 
|                                                                    |  | CommonStock |    |  | AdditionalPaid-in Capital |   |        | UnearnedESOP Shares |  |   | RetainedEarnings |   |  | TotalStockholdersEquity |       
|Balances at January 1, 2011                                         |  | $           |   |  |                           | $ |       |                     |  | $ |                 |   |  | $                        | 41,944 |  |  | $ | 41,944 | 
|Six months ended June 30, 2011                                      |  |             |    |  |                           |   |        |                     |  |   |                  |   |  |                          |        |  |  |   |        | 
|                                                                    |  |             |    |  |                          
|Net income                                                          |  |             |   |  |                           |   |       |                     |  |   |                 |   |  |                          | 446    |  |  |   | 446    | 
|                                                                    |  |             |    |  |                          
|Issuance of 2,507,500 shares of common stock, net of offering costs |  |             | 25 |  |                           |   | 23,765 |                     |  |   | (2,006           | ) |  |                          |       |  |  |   | 21,784 | 
|                                                                    |  |             |    |  |                           |   |        |                     |  |   |                  |   |  |                          |        |  |  |   |        | 
|Balances at June 30, 2011                                           |  | $           | 25 |  |                           | $ | 23,765 |                     |  | $ | (2,006           | ) |  | $                        | 42,390 |  |  | $ | 64,174 | 
|                                                                    |  |             |    |  |                           |   |        |                     |  |   |                  |   |  |                          |        |  |  |   |        | 

The accompanying notes are an integral part of these condensed financial statements.



4



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



|Note 1: | Basis of Presentation
|------- | ---------------------

The unaudited condensed consolidated financial statements of Wolverine Bancorp, Inc. (the Company), the holding company of
Wolverine Bank (the Bank), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) believed
necessary for a fair presentation have been included. The condensed consolidated balance sheet of us as of December 31, 2010 has been derived from the audited consolidated balance sheet of the Bank as of that date. Operating results for the six
month period ended June 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011. These consolidated financial statements should be read in conjunction with the audited financial
statements and notes thereto filed as part of our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 31, 2011.



|Note 2: | Plan of Conversion and Change in Corporate Form
|------- | -----------------------------------------------

On January 19, 2011, the Bank converted to a stock savings bank and established the Company, as the parent holding company of the
Bank. In connection with the conversion, 2,507,500 shares of the Companys common stock were issued at $10.00 per share for total gross offering proceeds of $25.1 million. Expenses related to the offering were approximately $1.3
million. In addition, the Banks Board of Directors adopted an employee stock ownership plan (ESOP) which subscribed for 8% of the common stock sold in the offering, for a total of $2.0 million. The Company is incorporated under the laws
of the State of Maryland and owns all of the outstanding common stock of the Bank.

The common stock began trading on the NASDAQ Capital
Market on January 20, 2011 under the symbol WBKC.

In accordance with Office of Thrift Supervision (OTS)
regulations, at the time of the completion of the Banks mutual to stock conversion, the Bank substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of
eligible account holders and supplemental eligible account holders who continue to maintain their accounts at the Bank after conversion. The liquidation account will be reduced annually to the extent that eligible account holders and supplemental
eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holders or and supplemental eligible account holders interest in the liquidation account. In the event of a
complete liquidation of the Bank, and only in such event, each account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. We may not pay
dividends if those dividends would reduce equity capital below the required liquidation account amount.



5



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



|Note 3: | Accounting Developments
|------- | -----------------------

In April, 2011, FASB issued ASU No. 2011-02, intended to provide additional guidance to assist creditors in
determining whether a restructuring of a receivable meets the criteria to be considered a troubled debt restructuring. The amendments in this ASU are effective for the first interim or annual period beginning on or after June 15, 2011, and are
to be applied retrospectively to the beginning of the annual period of adoption. As a result of applying these amendments, an entity may identify receivables that are newly considered impaired. Early adoption is permitted. We intend to adopt the
methodologies prescribed by this ASU by the date required, and we are continuing to evaluate the impact of adoption of this ASU.

In April, 2011, FASB issued ASU No. 2011-03. The amendments in this ASU remove from the assessment of effective control the criterion
relating to the transferors ability to repurchase or redeem financial assets on substantially the agreed terms, even in the event of default by the transferee. The amendments in this ASU also eliminate the requirement to demonstrate that the
transferor possesses adequate collateral to fund substantially all the cost of purchasing replacement financial assets.

The
guidance in this ASU is effective for the first interim or annual period beginning on or after December 15, 2011. The guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the
effective date. Early adoption is not permitted. We will adopt the methodologies prescribed by this ASU by the date required, and we do not anticipate that the ASU will have a material effect on our financial position or results of operations.

In May, 2011, FASB issued ASU No. 2011-04. The amendments in this ASU generally represent clarifications of Topic 820,
but also include some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This ASU results in common principles and requirements for measuring fair value
and for disclosing information about fair value measurements in accordance with U.S. GAAP and IFRSs.

The amendments in this
ASU are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted. We will adopt the methodologies
prescribed by this ASU by the date required, and we do not anticipate that the ASU will have a material effect on our financial position or results of operations.

In June, 2011, FASB issued ASU No. 2011-05. Under the amendments in this ASU, an entity has the option to present the total of comprehensive income, the components of net income, and the components
of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income,
each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This ASU eliminates the option to present the components of other comprehensive income as part of the
statement of changes in stockholders equity. The amendments in this ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income.



6



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



The amendments in this ASU should be applied retrospectively. For public entities, the
amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted, because compliance with the amendments is already permitted. The amendments do not require any
transition disclosures. Due to the recency of this pronouncement, we are evaluating its timing of adoption of ASU 2011-05, but will adopt the ASU retrospectively by the due date.



|Note 4: | Securities
|------- | ----------

The amortized cost and approximate fair values of securities are as follows:



|                             |  |               |     |  |                      |   |   |                       |  |   |                       |  |  |   |     | 
|---------------------------- |  | ------------- | --- |  | -------------------- | - | - | --------------------- |  | - | --------------------- |  |  | - | --- | 
|                             |  | AmortizedCost |     |  | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |  |   | ApproximateFair Value | 
|Held to Maturity Securities: |  |               |     |  |                      |   |   |                       |  |   |                       |  |  |   |     | 
|June 30, 2011                |  |               |     |  |                      |   |   |                       |  |   |                       |  |  |   |     | 
|Municipals                   |  | $             | 315 |  |                      | $ |  |                       |  | $ |                      |  |  | $ | 315 | 
|                             |  |               |     |  |                      |   |   |                       |  |   |                       |  |  |   |     | 
|                             |  |               |     | 
|December 31, 2010            |  |               |     |  |                      |   |   |                       |  |   |                       |  |  |   |     | 
|Municipals                   |  | $             | 388 |  |                      | $ |  |                       |  | $ |                      |  |  | $ | 388 | 
|                             |  |               |     |  |                      |   |   |                       |  |   |                       |  |  |   |     | 

The amortized cost and fair value of securities at June 30, 2011 and December 31, 2010, by
contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.



|                  |  |               |     |  |                   |   |     |               |  |   |           |  |  |   |     | 
|----------------- |  | ------------- | --- |  | ----------------- | - | --- | ------------- |  | - | --------- |  |  | - | --- | 
|                  |  | June 30, 2011 |     |  | December 31, 2010 |  
|                  |  | AmortizedCost |     |  | FairValue         |   |     | AmortizedCost |  |   | FairValue | 
|                  |  |               |     | 
|Within one year   |  | $             |    |  |                   | $ |    |               |  | $ |          |  |  | $ |    | 
|One to five years |  |               |    |  |                   |   |    |               |  |   |          |  |  |   |    | 
|Five to ten years |  |               | 315 |  |                   |   | 315 |               |  |   | 388       |  |  |   | 388 | 
|After ten years   |  |               |    |  |                   |   |    |               |  |   |          |  |  |   |    | 
|                  |  |               |     |  |                   |   |     |               |  |   |           |  |  |   |     | 
|                  |  |               |     | 
|Totals            |  | $             | 315 |  |                   | $ | 315 |               |  | $ | 388       |  |  | $ | 388 | 
|                  |  |               |     |  |                   |   |     |               |  |   |           |  |  |   |     | 

There were no sales of securities during the three months ended June 30, 2011 and 2010.



7



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



|Note 5: | Loans and Allowance for Loan Losses
|------- | -----------------------------------

Categories of loans include:



|                                               |  |              |         |  |                  |   |         | 
|---------------------------------------------- |  | ------------ | ------- |  | ---------------- | - | ------- | 
|                                               |  | June 30,2011 |         |  | December 31,2010 |  
|                                               |  |             
|Real Estate                                    |  |              |         |  |                  |   |         | 
|One-to four-family                             |  | $            | 76,340  |  |                  | $ | 76,801  | 
|Home equity                                    |  |              | 14,119  |  |                  |   | 12,252  | 
|Commercial mortgage loans                      |  |              |         |  |                  |   |         | 
|Commercial real estate                         |  |              | 85,331  |  |                  |   | 84,172  | 
|Multifamily                                    |  |              | 45,273  |  |                  |   | 37,485  | 
|Land                                           |  |              | 15,132  |  |                  |   | 16,071  | 
|Construction                                   |  |              | 15,607  |  |                  |   | 13,126  | 
|Commercial Non-mortgage                        |  |              | 9,342   |  |                  |   | 10,434  | 
|Consumer                                       |  |              | 1,419   |  |                  |   | 1,229   | 
|                                               |  |              |         |  |                  |   |         | 
|Total loans                                    |  |              | 262,563 |  |                  |   | 251,570 | 
|                                               |  |             
|Less                                           |  |              |         |  |                  |   |         | 
|Net deferred loan fees, premiums and discounts |  |              | 392     |  |                  |   | 345     | 
|Undisbursed portion of loans                   |  |              | 8,812   |  |                  |   | 8,159   | 
|Allowance for loan losses                      |  |              | 10,138  |  |                  |   | 9,775   | 
|                                               |  |              |         |  |                  |   |         | 
|                                               |  |             
|Net loans                                      |  | $            | 243,221 |  |                  | $ | 233,291 | 
|                                               |  |              |         |  |                  |   |         | 

Activity in the allowance for loan losses was as follows:



|                                                                    |  |                          |        |   |      |   |        | 
|------------------------------------------------------------------- |  | ------------------------ | ------ | - | ---- | - | ------ | 
|                                                                    |  | Six Months EndedJune 30, |       
|                                                                    |  | 2011                     |        |   | 2010 |  
|                                                                    |  |                         
|Balance, beginning of period                                        |  | $                        | 9,775  |   |      | $ | 6,507  | 
|Provision charged to expense                                        |  |                          | 760    |   |      |   | 3,480  | 
|Losses charged off, net of recoveries of $12 and $394, respectively |  |                          | (397   | ) |      |   | 188    | 
|                                                                    |  |                          |        |   |      |   |        | 
|                                                                    |  |                         
|Balance, end of period                                              |  | $                        | 10,138 |   |      | $ | 10,175 | 
|                                                                    |  |                          |        |   |      |   |        | 

In determining the appropriate level of allowance for loan loss, we analyze various components of our
portfolio. The following components are analyzed: all substandard loans on an individual basis; all loans that are designated special mention or closely monitored; loans not classified according to purpose or collateral type; and overdrawn deposit
account balances.

We also factor in historical loss experience and qualitative considerations, including trends in charge
offs and recoveries; trends in delinquencies and impaired/classified loans; effects of credit concentrations; changes in underwriting standards and loan review system; experience in lending staff; current industry conditions; and current market
conditions.



8



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



In instances where risk and loss exposure is clearly identified with a particular asset,
a specific valuation allowance will be established or the asset or a portion of the asset will be charged off.

The following
tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2011 and December 31, 2010:



|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|----------------------------------------------------- |  | --------- | ------ | - | ---------- | - | ------ | --------------------- |  | - | ----------- | - |  | ---- | ------ | - | ------------ | - | ------ | ---------------------- |  | - | -------- | - |  | ----- | ----- | - |  | - | ----- | - |  | - | ------- | -
|Loan Class                                            |  | 1-4Family |        |   | HomeEquity |   |        | CommercialReal Estate |  |   | Multifamily |   |  | Land |        |   | Construction |   |        | CommercialNon-Mortgage |  |   | Consumer |   |  | Total |      
|Year to date analysis                                 |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Allowance for loan losses:                            |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Balance, beginning of year                            |  | $         | 2,079  |   |            | $ | 313    |                       |  | $ | 3,914       |   |  | $    | 1,765  |   |              | $ | 1,036  |                        |  | $ | 367      |   |  | $     | 269   |   |  | $ | 32    |   |  | $ | 9,775   |  
|Provision charged to expense                          |  |           | (71    | ) |            |   | 24     |                       |  |   | 58          |   |  |      | 129    |   |              |   | 648    |                        |  |   | 22       |   |  |       | (49   | ) |  |   | (1    | ) |  |   | 760     |  
|Losses charged off                                    |  |           | (39    | ) |            |   |       |                       |  |   | (369        | ) |  |      |       |   |              |   |       |                        |  |   |         |   |  |       |      |   |  |   | (1    | ) |  |   | (409    | )
|Recoveries                                            |  |           | 2      |   |            |   |       |                       |  |   | 5           |   |  |      |       |   |              |   | 1      |                        |  |   |         |   |  |       |      |   |  |   | 4     |   |  |   | 12      |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Balance, end of period                                |  | $         | 1,971  |   |            | $ | 337    |                       |  | $ | 3,608       |   |  | $    | 1,894  |   |              | $ | 1,685  |                        |  | $ | 389      |   |  | $     | 220   |   |  | $ | 34    |   |  | $ | 10,138  |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Ending Balance: individually evaluated for impairment |  | $         | 174    |   |            | $ | 5      |                       |  | $ | 1,601       |   |  | $    | 829    |   |              | $ | 1,329  |                        |  | $ | 21       |   |  | $     |      |   |  | $ |      |   |  | $ | 3,959   |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Ending balance: collectively evaluated for impairment |  | $         | 1,797  |   |            | $ | 332    |                       |  | $ | 2,007       |   |  | $    | 1,065  |   |              | $ | 356    |                        |  | $ | 368      |   |  | $     | 220   |   |  | $ | 34    |   |  | $ | 6,179   |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Loans:                                                |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Ending Balance                                        |  | $         | 76,340 |   |            | $ | 14,119 |                       |  | $ | 85,331      |   |  | $    | 45,273 |   |              | $ | 15,132 |                        |  | $ | 15,607   |   |  | $     | 9,342 |   |  | $ | 1,419 |   |  | $ | 262,563 |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Ending Balance: individually evaluated for impairment |  | $         | 3,075  |   |            | $ | 266    |                       |  | $ | 6,853       |   |  | $    | 9,734  |   |              | $ | 8,962  |                        |  | $ | 92       |   |  | $     | 378   |   |  | $ |      |   |  | $ | 29,360  |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Ending Balance: collectively evaluated for impairment |  | $         | 73,265 |   |            | $ | 13,853 |                       |  | $ | 78,478      |   |  | $    | 35,539 |   |              | $ | 6,170  |                        |  | $ | 15,515   |   |  | $     | 8,964 |   |  | $ | 1,419 |   |  | $ | 233,203 |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|                                                      |  |           |        |   |            |   |        |                       | 
|Loan Class                                            |  | 1-4Family |        |   | HomeEquity |   |        | CommercialReal Estate |  |   | Multifamily |   |  | Land |        |   | Construction |   |        | CommercialNon-Mortgage |  |   | Consumer |   |  | Total |      
|Quarter to date analysis                              |  |           |        |  
|Allowance for loan losses:                            |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Balance, beginning of quarter                         |  | $         | 2,010  |   |            | $ | 311    |                       |  | $ | 3,661       |   |  | $    | 1,913  |   |              | $ | 1,141  |                        |  | $ | 405      |   |  | $     | 262   |   |  | $ | 29    |   |  | $ | 9,732   |  
|Provision charged to expense                          |  |           | (41    | ) |            |   | 26     |                       |  |   | (55         | ) |  |      | (19    | ) |              |   | 544    |                        |  |   | (16      | ) |  |       | (42   | ) |  |   | 3     |   |  |   | 400     |  
|Losses charged off                                    |  |           |       |   |            |   |       |                       |  |   | (2          | ) |  |      |       |   |              |   |       |                        |  |   |         |   |  |       |      |   |  |   |      |   |  |   | (2      | )
|Recoveries                                            |  |           | 2      |   |            |   |       |                       |  |   | 4           |   |  |      |       |   |              |   |       |                        |  |   |         |   |  |       |      |   |  |   | 2     |   |  |   | 8       |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  
|Balance, end of period                                |  | $         | 1,971  |   |            | $ | 337    |                       |  | $ | 3,608       |   |  | $    | 1,894  |   |              | $ | 1,685  |                        |  | $ | 389      |   |  | $     | 220   |   |  | $ | 34    |   |  | $ | 10,138  |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |   |              |   |        |                        |  |   |          |   |  |       |       |   |  |   |       |   |  |   |         |  



9



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|----------------------------------------------------- |  | --------- | ------ | - | ---------- | - | ------ | --------------------- |  | - | ----------- | - |  | ---- | ------ |  | ------------ | - | ------ | ---------------------- |  | - | -------- |  |  | ----- | ------ |  |  | - | ----- | - |  | - | ------- | -
|Loan Class                                            |  | 1-4Family |        |   | HomeEquity |   |        | CommercialReal Estate |  |   | Multifamily |   |  | Land |        |  | Construction |   |        | CommercialNon-Mortgage |  |   | Consumer |  |  | Total |       
|As of December 31, 2010                               |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Allowance for loan losses:                            |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Balance, beginning of year                            |  | $         | 1,246  |   |            | $ | 161    |                       |  | $ | 3,019       |   |  | $    | 949    |  |              | $ | 838    |                        |  | $ | 129      |  |  | $     | 148    |  |  | $ | 17    |   |  | $ | 6,507   |  
|Provision charged to expense                          |  |           | 812    |   |            |   | 152    |                       |  |   | 2,263       |   |  |      | 816    |  |              |   | 80     |                        |  |   | 228      |  |  |       | 121    |  |  |   | 19    |   |  |   | 4,491   |  
|Losses charged off                                    |  |           | (33    | ) |            |   |       |                       |  |   | (1,597      | ) |  |      |       |  |              |   | (109   | )                      |  |   |         |  |  |       |       |  |  |   | (7    | ) |  |   | (1,746  | )
|Recoveries                                            |  |           | 54     |   |            |   |       |                       |  |   | 229         |   |  |      |       |  |              |   | 227    |                        |  |   | 10       |  |  |       |       |  |  |   | 3     |   |  |   | 523     |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Balance, end of year                                  |  | $         | 2,079  |   |            | $ | 313    |                       |  | $ | 3,914       |   |  | $    | 1,765  |  |              | $ | 1,036  |                        |  | $ | 367      |  |  | $     | 269    |  |  | $ | 32    |   |  | $ | 9,775   |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Ending Balance: individually evaluated for impairment |  | $         | 108    |   |            | $ |       |                       |  | $ | 1,798       |   |  | $    | 819    |  |              | $ | 633    |                        |  | $ | 21       |  |  | $     |       |  |  | $ |      |   |  | $ | 3,379   |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Ending balance: collectively evaluated for impairment |  | $         | 1,971  |   |            | $ | 313    |                       |  | $ | 2,116       |   |  | $    | 946    |  |              | $ | 403    |                        |  | $ | 346      |  |  | $     | 269    |  |  | $ | 32    |   |  | $ | 6,396   |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Loans:                                                |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Ending Balance                                        |  | $         | 76,801 |   |            | $ | 12,252 |                       |  | $ | 84,172      |   |  | $    | 37,485 |  |              | $ | 16,071 |                        |  | $ | 13,126   |  |  | $     | 10,434 |  |  | $ | 1,229 |   |  | $ | 251,570 |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Ending Balance: individually evaluated for impairment |  | $         | 2,798  |   |            | $ | 210    |                       |  | $ | 9,075       |   |  | $    | 9,048  |  |              | $ | 8,067  |                        |  | $ | 231      |  |  | $     |       |  |  | $ |      |   |  | $ | 29,429  |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  
|Ending Balance: collectively evaluated for impairment |  | $         | 74,003 |   |            | $ | 12,042 |                       |  | $ | 75,097      |   |  | $    | 28,437 |  |              | $ | 8,004  |                        |  | $ | 12,895   |  |  | $     | 10,434 |  |  | $ | 1,229 |   |  | $ | 222,141 |  
|                                                      |  |           |        |   |            |   |        |                       |  |   |             |   |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |  |   |       |   |  |   |         |  

Consistent with regulatory guidance, charge offs on all loan segments are taken when specific loans, or
portions thereof, are considered uncollectible. Our policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined.

For all loan portfolio segments except one-to-four family residential loans and consumer loans, we promptly charge off loans, or portions thereof, when available information confirms that specific loans
are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the
borrowers ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge off is recorded when a loss has been confirmed by an updated appraisal or other appropriate
valuation of the collateral.

We charge off one-to-four family residential and consumer loans, or portions thereof, when we
reasonably determine the amount of the loss. We adhere to timeframes established by applicable regulatory guidance which provides for the charge off of one-to-four family first and junior lien mortgages to the net realizable value less costs to sell
when the loan is 180 days past due, charge off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency
thresholds for which we can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off.



10



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



The following table presents the credit risk profile of our loan portfolio based on
rating category and payment activity as of June 30, 2011 and December 31, 2010:



|                         |  |            |        |  |             |   |        |                       |  |   |             |  |  |      |        |  |      |   |        |      |  |   |        |  |  |   |        |  |  |   |        | 
|------------------------ |  | ---------- | ------ |  | ----------- | - | ------ | --------------------- |  | - | ----------- |  |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | - | ------ |  |  | - | ------ | 
|                         |  | 1-4 Family |        |  | Home Equity |   |        | Commercial RealEstate |  |   | Multifamily | 
|                         |  | 2011       |        |  | 2010        |   |        | 2011                  |  |   | 2010        |  |  | 2011 |        |  | 2010 |   |        | 2011 |  |   | 2010   | 
|Pass                     |  | $          | 68,357 |  |             | $ | 68,831 |                       |  | $ | 13,814      |  |  | $    | 11,982 |  |      | $ | 58,333 |      |  | $ | 56,335 |  |  | $ | 26,445 |  |  | $ | 20,017 | 
|Pass (Closely Monitored) |  |            | 4,650  |  |             |   | 4,494  |                       |  |   |            |  |  |      | 17     |  |      |   | 8,645  |      |  |   | 9,284  |  |  |   | 6,886  |  |  |   | 10,716 | 
|Special Mention          |  |            | 589    |  |             |   | 492    |                       |  |   | 39          |  |  |      | 43     |  |      |   | 10,453 |      |  |   | 10,433 |  |  |   | 6,408  |  |  |   | 1,701  | 
|Substandard              |  |            | 2,744  |  |             |   | 2,984  |                       |  |   | 266         |  |  |      | 210    |  |      |   | 7,900  |      |  |   | 8,120  |  |  |   | 5,534  |  |  |   | 5,051  | 
|Doubtful                 |  |            |       |  |             |   |       |                       |  |   |            |  |  |      |       |  |      |   |       |      |  |   |       |  |  |   |       |  |  |   |       | 
|Loss                     |  |            |       |  |             |   |       |                       |  |   |            |  |  |      |       |  |      |   |       |      |  |   |       |  |  |   |       |  |  |   |       | 
|                         |  |            |        |  |             |   |        |                       |  |   |             |  |  |      |        |  |      |   |        |      |  |   |        |  |  |   |        |  |  |   |        | 
|                         |  | $          | 76,340 |  |             | $ | 76,801 |                       |  | $ | 14,119      |  |  | $    | 12,252 |  |      | $ | 85,331 |      |  | $ | 84,172 |  |  | $ | 45,273 |  |  | $ | 37,485 | 
|                         |  |            |        |  |             |   |        |                       |  |   |             |  |  |      |        |  |      |   |        |      |  |   |        |  |  |   |        |  |  |   |        | 



|                         |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |      |   |       |      |  |   |        |  |  |      |       |  |      |   |       |  |  |   |         |  |  |   |         | 
|------------------------ |  | ---- | ------ |  | ------------ | - | ------ | ---------------------- |  | - | -------- |  |  | ----- | ------ |  | ---- | - | ----- | ---- |  | - | ------ |  |  | ---- | ----- |  | ---- | - | ----- |  |  | - | ------- |  |  | - | ------- | 
|                         |  | Land |        |  | Construction |   |        | CommercialNon-Mortgage |  |   | Consumer |  |  | Total |       
|                         |  | 2011 |        |  | 2010         |   |        | 2011                   |  |   | 2010     |  |  | 2011  |        |  | 2010 |   |       | 2011 |  |   | 2010   |  |  | 2011 |       |  | 2010 |  
|Pass                     |  | $    | 4,149  |  |              | $ | 4,130  |                        |  | $ | 15,240   |  |  | $     | 12,895 |  |      | $ | 7,970 |      |  | $ | 9,041  |  |  | $    | 1,412 |  |      | $ | 1,199 |  |  | $ | 195,720 |  |  | $ | 184,430 | 
|Pass (Closely Monitored) |  |      | 1,149  |  |              |   | 2,902  |                        |  |   | 275      |  |  |       |       |  |      |   | 812   |      |  |   | 1,203  |  |  |      | 7     |  |      |   | 30    |  |  |   | 22,424  |  |  |   | 28,646  | 
|Special Mention          |  |      | 872    |  |              |   | 1,105  |                        |  |   |         |  |  |       |       |  |      |   | 182   |      |  |   | 190    |  |  |      |      |  |      |   |      |  |  |   | 18,543  |  |  |   | 13,964  | 
|Substandard              |  |      | 8,962  |  |              |   | 7,934  |                        |  |   | 92       |  |  |       | 231    |  |      |   | 378   |      |  |   |       |  |  |      |      |  |      |   |      |  |  |   | 25,876  |  |  |   | 24,530  | 
|Doubtful                 |  |      |       |  |              |   |       |                        |  |   |         |  |  |       |       |  |      |   |      |      |  |   |       |  |  |      |      |  |      |   |      |  |  |   |        |  |  |   |        | 
|Loss                     |  |      |       |  |              |   |       |                        |  |   |         |  |  |       |       |  |      |   |      |      |  |   |       |  |  |      |      |  |      |   |      |  |  |   |        |  |  |   |        | 
|                         |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |      |   |       |      |  |   |        |  |  |      |       |  |      |   |       |  |  |   |         |  |  |   |         | 
|                         |  | $    | 15,132 |  |              | $ | 16,071 |                        |  | $ | 15,607   |  |  | $     | 13,126 |  |      | $ | 9,342 |      |  | $ | 10,434 |  |  | $    | 1,419 |  |      | $ | 1,229 |  |  | $ | 262,563 |  |  | $ | 251,570 | 
|                         |  |      |        |  |              |   |        |                        |  |   |          |  |  |       |        |  |      |   |       |      |  |   |        |  |  |      |       |  |      |   |       |  |  |   |         |  |  |   |         | 

We categorize loans into risk categories based on relevant information about the ability of borrowers to
service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. This analysis
is performed during the loan approval process and is updated as circumstances warrant.

The Pass asset quality rating
encompasses assets that have performed as expected. These assets generally do not have delinquency or servicing issues. Loans assigned this rating include loans to borrowers possessing solid credit quality with acceptable risk. Borrowers in
these grades are differentiated from higher grades on the basis of size (capital and/or revenue), leverage, asset quality, stability of the industry or specific market area and quality/coverage of collateral. These borrowers generally have a
history of consistent earnings and reasonable leverage.



11



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



The Closely Monitored asset quality rating encompasses assets that have been brought to
the attention of management and may, if not corrected, warrant a more serious quality rating by management. These assets are usually in the first phase of a deficiency situation and may possess similar criteria as Special Mention assets. This grade
includes pass grade loans to borrowers which require special monitoring because of deteriorating financial results, declining credit ratings, decreasing cash flow, increasing leverage, marginal collateral coverage or industry stress that
has resulted or may result in a changing overall risk profile.

The Special Mention asset quality rating encompasses assets
that have potential weaknesses that deserve managements close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institutions credit position at some
future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. This grade is intended to include loans to borrowers whose credit quality has clearly
deteriorated and where risk of further decline is possible unless active measures are taken to correct the situation. Weaknesses are considered potential at this state and are not yet fully defined.

The Substandard asset quality rating encompasses assets that are inadequately protected by the current net worth and paying capacity of
the obligor or of the collateral pledged, if any; assets having a well-defined weakness(es) based upon objective evidence; assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected; or the
possibility that liquidation will not be timely. Loans categorized in this grade possess a well defined credit weakness and the likelihood of repayment from the primary source is uncertain. Significant financial deterioration has occurred and
very close attention is warranted to ensure the full repayment without loss. Collateral coverage may be marginal and the accrual of interest has been suspended.

The Doubtful asset quality rating encompasses assets that have all of the weaknesses of those classified as Substandard. In addition, these weaknesses make collection or liquidation in full, on the
basis of currently existing facts, conditions and values, highly questionable and improbable.

The Loss asset quality rating
encompasses assets that are considered uncollectible and of such little value that their continuance as assets of the bank is not warranted. A loss classification does not mean that an asset has no recovery or salvage value; instead, it means that
it is not practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be realized in the future.



12



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



The following table is a summary of our past due and non-accrual loans as of
June 30, 2011 and December 31, 2010:



|                         |  |                   |       |  |                    |   |       |                    |  |   |            |  |  |              |        |  |         |   |        |                       |  |   |                             |  |  |   |         |  |  |   |   | 
|------------------------ |  | ----------------- | ----- |  | ------------------ | - | ----- | ------------------ |  | - | ---------- |  |  | ------------ | ------ |  | ------- | - | ------ | --------------------- |  | - | --------------------------- |  |  | - | ------- |  |  | - | - | 
|As of June 30, 2011:     |  | 30-59Days PastDue |       |  | 60-89 DaysPast Due |   |       | Greaterthan 90Days |  |   | Nonaccrual |  |  | TotalPastDue |        |  | Current |   |        | Total LoansReceivable |  |   | TotalLoans>90Days &Accruing | 
|1-4 Family               |  | $                 | 778   |  |                    | $ | 206   |                    |  | $ |           |  |  | $            | 1,211  |  |         | $ | 2,195  |                       |  | $ | 74,145                      |  |  | $ | 76,340  |  |  | $ |  | 
|Home Equity              |  |                   |      |  |                    |   |      |                    |  |   |           |  |  |              | 206    |  |         |   | 206    |                       |  |   | 13,913                      |  |  |   | 14,119  |  |  |   |  | 
|Commercial Real Estate   |  |                   | 1,145 |  |                    |   | 1,281 |                    |  |   |           |  |  |              | 3,180  |  |         |   | 5,606  |                       |  |   | 79,725                      |  |  |   | 85,331  |  |  |   |  | 
|Multifamily              |  |                   | 4,236 |  |                    |   |      |                    |  |   |           |  |  |              |       |  |         |   | 4,236  |                       |  |   | 41,037                      |  |  |   | 45,273  |  |  |   |  | 
|Land                     |  |                   |      |  |                    |   |      |                    |  |   |           |  |  |              | 8,823  |  |         |   | 8,823  |                       |  |   | 6,309                       |  |  |   | 15,132  |  |  |   |  | 
|Construction             |  |                   |      |  |                    |   |      |                    |  |   |           |  |  |              | 92     |  |         |   | 92     |                       |  |   | 15,515                      |  |  |   | 15,607  |  |  |   |  | 
|Commercial Non-Mortgage  |  |                   |      |  |                    |   |      |                    |  |   |           |  |  |              |       |  |         |   |       |                       |  |   | 9,342                       |  |  |   | 9,342   |  |  |   |  | 
|Consumer                 |  |                   |      |  |                    |   |      |                    |  |   |           |  |  |              |       |  |         |   |       |                       |  |   | 1,419                       |  |  |   | 1,419   |  |  |   |  | 
|                         |  |                   |       |  |                    |   |       |                    |  |   |            |  |  |              |        |  |         |   |        |                       |  |   |                             |  |  |   |         |  |  |   |   | 
|Total                    |  | $                 | 6,159 |  |                    | $ | 1,487 |                    |  | $ |           |  |  | $            | 13,512 |  |         | $ | 21,158 |                       |  | $ | 241,404                     |  |  | $ | 262,563 |  |  | $ |  | 
|                         |  |                   |       |  |                    |   |       |                    |  |   |            |  |  |              |        |  |         |   |        |                       |  |   |                             |  |  |   |         |  |  |   |   | 
|                         |  |                   |       |  |                    |   |       |                   
|As of December 31, 2010: |  | 30-59Days PastDue |       |  | 60-89 DaysPast Due |   |       | Greaterthan 90Days |  |   | Nonaccrual |  |  | TotalPastDue |        |  | Current |   |        | Total LoansReceivable |  |   | TotalLoans>90Days &Accruing | 
|1-4 Family               |  | $                 | 129   |  |                    | $ | 598   |                    |  | $ |           |  |  | $            | 1,118  |  |         | $ | 1,845  |                       |  | $ | 74,956                      |  |  | $ | 76,801  |  |  | $ |  | 
|Home Equity              |  |                   |      |  |                    |   | 115   |                    |  |   |           |  |  |              | 76     |  |         |   | 191    |                       |  |   | 12,061                      |  |  |   | 12,252  |  |  |   |  | 
|Commercial Real Estate   |  |                   | 83    |  |                    |   | 97    |                    |  |   |           |  |  |              | 4,051  |  |         |   | 4,231  |                       |  |   | 79,941                      |  |  |   | 84,172  |  |  |   |  | 
|Multifamily              |  |                   |      |  |                    |   | 4,266 |                    |  |   |           |  |  |              |        |  |         |   | 4,266  |                       |  |   | 33,219                      |  |  |   | 37,485  |  |  |   |  | 
|Land                     |  |                   | 54    |  |                    |   |      |                    |  |   |           |  |  |              | 2,069  |  |         |   | 2,123  |                       |  |   | 13,948                      |  |  |   | 16,071  |  |  |   |  | 
|Construction             |  |                   |      |  |                    |   |      |                    |  |   |           |  |  |              | 92     |  |         |   | 92     |                       |  |   | 13,034                      |  |  |   | 13,126  |  |  |   |  | 
|Commercial Non-Mortgage  |  |                   |      |  |                    |   |      |                    |  |   |           |  |  |              |       |  |         |   |       |                       |  |   | 10,434                      |  |  |   | 10,434  |  |  |   |  | 
|Consumer                 |  |                   |      |  |                    |   |      |                    |  |   |           |  |  |              |       |  |         |   |       |                       |  |   | 1,229                       |  |  |   | 1,229   |  |  |   |  | 
|                         |  |                   |       |  |                    |   |       |                    |  |   |            |  |  |              |        |  |         |   |        |                       |  |   |                             |  |  |   |         |  |  |   |   | 
|Total                    |  | $                 | 266   |  |                    | $ | 5,076 |                    |  | $ |           |  |  | $            | 7,406  |  |         | $ | 12,748 |                       |  | $ | 238,822                     |  |  | $ | 251,570 |  |  | $ |  | 
|                         |  |                   |       |  |                    |   |       |                    |  |   |            |  |  |              |        |  |         |   |        |                       |  |   |                             |  |  |   |         |  |  |   |   | 

Nonaccrual Loan and Past Due Loans. The accrual of interest is discontinued on all loan classes at the
time the loan is 90 days past due unless the credit is well-secured and in process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The
entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date



13



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



All interest accrued but not collected for loans that are placed on nonaccrual or
charged off is reversed against interest income. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to
accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. We generally require a period of satisfactory
performance of not less than six months before returning a nonaccrual loan to accrual status.

A loan is considered impaired,
in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable we will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the
loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a
reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Interest income on loans individually classified as impaired is recognized on a cash basis after
all past due and current principal payments have been made.



14



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



The following tables present impaired loans without a specific valuation allowance for
the period ended June 30, 2011:



|                                         |  |                 |        |  |                        |   |        |                   |  |   |                    |  |  |                    |        |  |                   |   |        |                   |  |   |     |  |  |   |     | 
|---------------------------------------- |  | --------------- | ------ |  | ---------------------- | - | ------ | ----------------- |  | - | ------------------ |  |  | ------------------ | ------ |  | ----------------- | - | ------ | ----------------- |  | - | --- |  |  | - | --- | 
|As of June 30, 2011                      |  | RecordedBalance |        |  | UnpaidPrincipalBalance |   |        | SpecificAllowance |  |   | QTD AverageBalance |  |  | YTD AverageBalance |        |  | QTDInterestIncome |   |        | YTDInterestIncome | 
|Loans w/o a specific valuation allowance |  |                 |        |  |                        |   |        |                   |  |   |                    |  |  |                    |        |  |                   |   |        |                   |  |   |     |  |  |   |     | 
|1-4 Family                               |  | $               | 1,449  |  |                        | $ | 1,449  |                   |  | $ |                   |  |  | $                  | 1,768  |  |                   | $ | 1,777  |                   |  | $ | 21  |  |  | $ | 43  | 
|Home Equity                              |  |                 | 151    |  |                        |   | 151    |                   |  |   |                   |  |  |                    | 129    |  |                   |   | 145    |                   |  |   | 2   |  |  |   | 4   | 
|Commercial Real Estate                   |  |                 | 614    |  |                        |   | 614    |                   |  |   |                   |  |  |                    | 2,144  |  |                   |   | 1,072  |                   |  |   | 33  |  |  |   | 63  | 
|Multifamily                              |  |                 | 92     |  |                        |   | 92     |                   |  |   |                   |  |  |                    |       |  |                   |   |       |                   |  |   |    |  |  |   |    | 
|Land                                     |  |                 | 7      |  |                        |   | 7      |                   |  |   |                   |  |  |                    | 15     |  |                   |   | 83     |                   |  |   |    |  |  |   |    | 
|Construction                             |  |                 |       |  |                        |   |       |                   |  |   |                   |  |  |                    |       |  |                   |   | 35     |                   |  |   |    |  |  |   |    | 
|Commercial Non-Mortgage                  |  |                 | 378    |  |                        |   | 378    |                   |  |   |                   |  |  |                    | 126    |  |                   |   | 63     |                   |  |   | 3   |  |  |   | 6   | 
|Consumer                                 |  |                 |       |  |                        |   |       |                   |  |   |                   |  |  |                    |       |  |                   |   |       |                   |  |   |    |  |  |   |    | 
|Loans w/ a specific valuation allowance  |  |                 |        |  |                        |   |        |                   |  |   |                    |  |  |                    |        |  |                   |   |        |                   |  |   |     |  |  |   |     | 
|1-4 Family                               |  | $               | 1,626  |  |                        | $ | 1,626  |                   |  | $ | 174                |  |  | $                  | 1,312  |  |                   | $ | 1,222  |                   |  | $ | 29  |  |  | $ | 39  | 
|Home Equity                              |  |                 | 115    |  |                        |   | 115    |                   |  |   | 5                  |  |  |                    | 120    |  |                   |   | 93     |                   |  |   | 1   |  |  |   | 2   | 
|Commercial Real Estate                   |  |                 | 6,239  |  |                        |   | 6,239  |                   |  |   | 1,601              |  |  |                    | 5,409  |  |                   |   | 5,810  |                   |  |   | 55  |  |  |   | 99  | 
|Multifamily                              |  |                 | 9,642  |  |                        |   | 9,642  |                   |  |   | 829                |  |  |                    | 9,743  |  |                   |   | 9,424  |                   |  |   | 148 |  |  |   | 238 | 
|Land                                     |  |                 | 8,955  |  |                        |   | 8,955  |                   |  |   | 1,329              |  |  |                    | 8,218  |  |                   |   | 8,006  |                   |  |   | 104 |  |  |   | 181 | 
|Construction                             |  |                 | 92     |  |                        |   | 92     |                   |  |   | 21                 |  |  |                    | 92     |  |                   |   | 127    |                   |  |   | 1   |  |  |   | 2   | 
|Commercial Non-Mortgage                  |  |                 |       |  |                        |   |       |                   |  |   |                   |  |  |                    |       |  |                   |   |       |                   |  |   |    |  |  |   |    | 
|Consumer                                 |  |                 |       |  |                        |   |       |                   |  |   |                   |  |  |                    |       |  |                   |   |       |                   |  |   |    |  |  |   |    | 
|Total                                    |  |                 |        |  |                        |   |        |                   |  |   |                    |  |  |                    |        |  |                   |   |        |                   |  |   |     |  |  |   |     | 
|1-4 Family                               |  | $               | 3,075  |  |                        | $ | 3,075  |                   |  | $ | 174                |  |  | $                  | 3,080  |  |                   | $ | 2,999  |                   |  | $ | 50  |  |  | $ | 82  | 
|Home Equity                              |  |                 | 266    |  |                        |   | 266    |                   |  |   | 5                  |  |  |                    | 249    |  |                   |   | 238    |                   |  |   | 3   |  |  |   | 7   | 
|Commercial Real Estate                   |  |                 | 6,853  |  |                        |   | 6,853  |                   |  |   | 1,601              |  |  |                    | 7,553  |  |                   |   | 6,882  |                   |  |   | 88  |  |  |   | 161 | 
|Multifamily                              |  |                 | 9,734  |  |                        |   | 9,734  |                   |  |   | 829                |  |  |                    | 9,743  |  |                   |   | 9,424  |                   |  |   | 148 |  |  |   | 238 | 
|Land                                     |  |                 | 8,962  |  |                        |   | 8,962  |                   |  |   | 1,329              |  |  |                    | 8,233  |  |                   |   | 8,089  |                   |  |   | 104 |  |  |   | 181 | 
|Construction                             |  |                 | 92     |  |                        |   | 92     |                   |  |   | 21                 |  |  |                    | 92     |  |                   |   | 162    |                   |  |   | 1   |  |  |   | 2   | 
|Commercial Non-Mortgage                  |  |                 | 378    |  |                        |   | 378    |                   |  |   |                   |  |  |                    | 126    |  |                   |   | 63     |                   |  |   | 3   |  |  |   | 6   | 
|Consumer                                 |  |                 |       |  |                        |   |       |                   |  |   |                   |  |  |                    |       |  |                   |   |       |                   |  |   |    |  |  |   |    | 
|                                         |  |                 | 29,360 |  |                        |   | 29,360 |                   |  |   | 3,959              |  |  |                    | 29,076 |  |                   |   | 27,857 |                   |  |   | 397 |  |  |   | 677 | 



15



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



The following tables present impaired loans without a specific valuation allowance for
the period ended December 31, 2010:



|                                          |  |                  |        |  |                         |   |        |                   |  |   |       | 
|----------------------------------------- |  | ---------------- | ------ |  | ----------------------- | - | ------ | ----------------- |  | - | ----- | 
|                                          |  | Recorded Balance |        |  | Unpaid PrincipalBalance |   |        | SpecificAllowance | 
|Loans w/o a specific valuation allowance  |  |                  |        |  |                         |   |        |                   |  |   |       | 
|1-4 Family                                |  | $                | 1,577  |  |                         | $ | 1,577  |                   |  | $ |      | 
|Home Equity                               |  |                  | 210    |  |                         |   | 210    |                   |  |   |      | 
|Commercial Real Estate                    |  |                  | 2,260  |  |                         |   | 2,260  |                   |  |   |      | 
|Multifamily                               |  |                  |       |  |                         |   |       |                   |  |   |      | 
|Land                                      |  |                  | 282    |  |                         |   | 282    |                   |  |   |      | 
|Construction                              |  |                  | 140    |  |                         |   | 140    |                   |  |   |      | 
|Commercial Non-Mortgage                   |  |                  |       |  |                         |   |       |                   |  |   |      | 
|Consumer                                  |  |                  |       |  |                         |   |       |                   |  |   |      | 
|Loans with a specific valuation allowance |  |                  |        |  |                         |   |        |                   |  |   |       | 
|1-4 Family                                |  | $                | 1,221  |  |                         | $ | 1,221  |                   |  | $ | 108   | 
|Home Equity                               |  |                  |       |  |                         |   |       |                   |  |   |      | 
|Commercial Real Estate                    |  |                  | 6,815  |  |                         |   | 6,815  |                   |  |   | 1,798 | 
|Multifamily                               |  |                  | 9,048  |  |                         |   | 9,048  |                   |  |   | 819   | 
|Land                                      |  |                  | 7,785  |  |                         |   | 7,785  |                   |  |   | 633   | 
|Construction                              |  |                  | 91     |  |                         |   | 91     |                   |  |   | 21    | 
|Commercial Non-Mortgage                   |  |                  |       |  |                         |   |       |                   |  |   |      | 
|Consumer                                  |  |                  |       |  |                         |   |       |                   |  |   |      | 
|Total impaired loans                      |  |                  |        |  |                         |   |        |                   |  |   |       | 
|1-4 Family                                |  | $                | 2,798  |  |                         | $ | 2,798  |                   |  | $ | 108   | 
|Home Equity                               |  |                  | 210    |  |                         |   | 210    |                   |  |   |      | 
|Commercial Real Estate                    |  |                  | 9,075  |  |                         |   | 9,075  |                   |  |   | 1,798 | 
|Multifamily                               |  |                  | 9,048  |  |                         |   | 9,048  |                   |  |   | 819   | 
|Land                                      |  |                  | 8,067  |  |                         |   | 8,067  |                   |  |   | 633   | 
|Construction                              |  |                  | 231    |  |                         |   | 231    |                   |  |   | 21    | 
|Commercial Non-Mortgage                   |  |                  |       |  |                         |   |       |                   |  |   |      | 
|Consumer                                  |  |                  |       |  |                         |   |       |                   |  |   |      | 
|                                          |  |                  |        |  |                         |   |        |                   |  |   |       | 
|Total                                     |  | $                | 29,429 |  |                         | $ | 29,429 |                   |  | $ | 3,379 | 
|                                          |  |                  |        |  |                         |   |        |                   |  |   |       | 



16



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Dollars in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



The risk characteristics of each loan portfolio segment are as follows:

1-4 Family, Home Equity, and Consumer

With respect to residential loans that are secured by 1-4 family residences and are primarily owner occupied, we generally establish a maximum loan-to-value ratio and require PMI if that ratio is
exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are typically secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as
small installment loans. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by
changes in property values on residential properties.

Home equity loans secured by second mortgages have greater risk than
one- to four-family residential mortgage loans secured by first mortgages. We face the risk that the collateral will be insufficient to compensate us for loan losses and costs of foreclosure. When customers default on their loans, we attempt to
foreclose on the property and resell the property as soon as possible to minimize foreclosure and carrying costs. However, the value of the collateral may not be sufficient to compensate us for the

amount of the unpaid loan and we may be unsuccessful in recovering the remaining balance from those customers. Particularly with respect
to our home equity loans, decreases in real estate values could adversely affect the value of property used as collateral for our loans.

Consumer and other loans generally have greater risk compared to longer-term loans secured by improved, owner-occupied real estate, particularly consumer loans that are secured by rapidly depreciable
assets, such as automobiles. In these cases, any repossessed collateral for a defaulted loan may not provide an adequate source of repayment of the outstanding loan balance. As a result, consumer loan collections are dependent on the borrowers
continuing financial stability and thus are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy.

Commercial real estate and multi-family

Commercial real estate and
multi-family loans generally have greater credit risk than the owner-occupied one- to four-family residential mortgage loans that we originate for retention in our loan portfolio. Repayment of these loans generally depends, in large part, on
sufficient income from the property securing the loan or the borrowers business to cover operating expenses and debt service. These types of loans typically involve larger loan balances to single borrowers or groups of related borrowers
compared to one- to four-family residential mortgage loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or
the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many
of our commercial real estate loans have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination.

Construction and land

Construction loans include those for one- to
four-family residential properties and commercial properties, including multifamily loans and commercial mixed-use buildings and homes built by developers on speculation. Construction loans for one- to four-family residential properties
are originated with a maximum loan to value ratio of 70% and are generally interest-only loans during the construction period which typically does not exceed nine months. Construction loans for commercial real estate are made in
accordance with a schedule reflecting the cost of construction, and are generally limited to a 70% loan-to-completed appraised value ratio. For all construction loans, we generally require that a commitment for permanent financing be in place prior
to closing the construction loan.

Repayment of one-to four-family residential property loans is primarily dependent on the
personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment of commercial property loans and homes built by developers on speculation is normally expected from the
propertys eventual rental income, income from the borrowers operations, the personal resources of the guarantor, or the sale of the subject property. Generally, before making a commitment to fund a construction loan, we require an
appraisal of the property by a state-certified or state-licensed appraiser. We review and inspect properties before disbursement of funds during the term of the construction loan.

Construction financing generally involves greater credit risk than long-term financing on improved, owner-occupied real estate. Risk of
loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at



17



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Dollars in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost is inaccurate, we may be required to
advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project is inaccurate, the borrower may hold a property with a value that is
insufficient to assure full repayment of the construction loan upon the sale of the property. Construction loans also expose us to the risk that improvements will not be completed on time in accordance with specifications and projected costs. In
addition, the ultimate sale or rental of the property may not occur as anticipated.

Commercial non-mortgage

Commercial non-mortgage loans generally have a greater credit risk than residential mortgage loans. Unlike residential
mortgage loans, which generally are made on the basis of the borrowers ability to make repayment from his or her employment and other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial
non-mortgage loans are of higher risk and typically are made on the basis of the borrowers ability to make repayment from the cash flow of the borrowers business. As a result, the availability of funds for the repayment of commercial
non-mortgage loans may be substantially dependent on the success of the business itself. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the
business.

As of June 30, 2011 and December 31, 2010, we had $99,556 and $89,406 of loans outstanding to lessors of rental
properties including $65,114 and $61,377 of residential and $34,442 and $28,029 of nonresidential properties.

Interest of $677
and $690 was recognized on average impaired loans of $27,857 and $15,105 for the six months June 30, 2011 and 2010, respectively. Cash collected on interest on impaired loans through June 30, 2011 and 2010 was $589 and $616, respectively.



|Note 6: | Disclosures About Fair Value of Assets and Liabilities
|------- | ------------------------------------------------------

ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:



|        |  |                                                                                                                                                                                                                                                                                                      
|------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Level 1 |  | Quoted prices in active markets for identical assets or liabilities.                                                                                                                                                                                                                                 
|        | 
|Level 2 |  | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
|        | 
|Level 3 |  | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities                                                                                                                                                       

Following is a description of the valuation methodologies used for assets measured at fair value on a
nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets under the valuation hierarchy. We have no assets or liabilities measured at fair value on a recurring basis and
no liabilities measured at fair value on a nonrecurring basis.

Impaired Loans (Collateral Dependent)

Loans for which it is probable that we will not collect all principal and interest due according to contractual terms
are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized.
This method generally requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value.

Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method.

Real Estate Owned

The fair value of our real estate owned is determined using Level 3 inputs which include current and prior appraisals and estimated costs to sell.



18



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Dollars in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



The following table presents the fair value measurements of assets and liabilities
recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2011 and December 31, 2010:



|                  |  |           |        |  |                                                           |   |   |                                            |  |   |                                        |  |  |   |        | 
|----------------- |  | --------- | ------ |  | --------------------------------------------------------- | - | - | ------------------------------------------ |  | - | -------------------------------------- |  |  | - | ------ | 
|                  |  |           |        |  | Fair Value Measurements Using                             |  
|                  |  | FairValue |        |  | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | Significant OtherObservableInputs(Level 2) |  |   | SignificantUnobservableInputs(Level 3) | 
|                  |  |           |        | 
|June 30, 2011     |  |           |        |  |                                                           |   |   |                                            |  |   |                                        |  |  |   |        | 
|Impaired loans    |  | $         | 9,764  |  |                                                           | $ |  |                                            |  | $ |                                       |  |  | $ | 9,764  | 
|Real estate owned |  | $         | 332    |  |                                                           | $ |  |                                            |  | $ |                                       |  |  | $ | 332    | 
|                  |  |           |        | 
|December 31, 2010 |  |           |        |  |                                                           |   |   |                                            |  |   |                                        |  |  |   |        | 
|Impaired loans    |  | $         | 20,988 |  |                                                           | $ |  |                                            |  | $ |                                       |  |  | $ | 20,988 | 

The following table presents estimated fair values of our financial instruments recognized in the
accompanying consolidated balance sheets at amounts other than fair value. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties.
Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, we do not know whether the fair values shown below represent values at which the respective financial
instruments could be sold individually or in the aggregate.



|                                        |  |                |         |  |                   |   |         |                |  |   |           |  |  |   |         | 
|--------------------------------------- |  | -------------- | ------- |  | ----------------- | - | ------- | -------------- |  | - | --------- |  |  | - | ------- | 
|                                        |  | June 30, 2011  |         |  | December 31, 2010 |  
|                                        |  | CarryingAmount |         |  | FairValue         |   |         | CarryingAmount |  |   | FairValue | 
|                                        |  |                |         | 
|Financial assets                        |  |                |         |  |                   |   |         |                |  |   |           |  |  |   |         | 
|Cash and cash equivalents               |  | $              | 21,805  |  |                   | $ | 21,805  |                |  | $ | 48,936    |  |  | $ | 48,936  | 
|Interest-earning time deposits          |  |                | 25,881  |  |                   |   | 25,881  |                |  |   | 14,931    |  |  |   | 14,931  | 
|Held to maturity securities             |  |                | 315     |  |                   |   | 315     |                |  |   | 388       |  |  |   | 388     | 
|Loans held for sale                     |  |                | 341     |  |                   |   | 343     |                |  |   | 748       |  |  |   | 754     | 
|Loans, net of allowance for loan losses |  |                | 243,221 |  |                   |   | 248,514 |                |  |   | 233,291   |  |  |   | 237,704 | 
|Federal Home Loan Bank stock            |  |                | 4,391   |  |                   |   | 4,391   |                |  |   | 4,609     |  |  |   | 4,609   | 
|Interest receivable                     |  |                | 861     |  |                   |   | 861     |                |  |   | 851       |  |  |   | 851     | 
|                                        |  |                |         | 
|Financial liabilities                   |  |                |         |  |                   |   |         |                |  |   |           |  |  |   |         | 
|Deposits                                |  |                | 167,251 |  |                   |   | 168,322 |                |  |   | 174,692   |  |  |   | 177,089 | 
|Federal Home Loan Bank advances         |  |                | 71,827  |  |                   |   | 76,474  |                |  |   | 76,795    |  |  |   | 83,337  | 
|Stock conversion related liabilities    |  |                |        |  |                   |   |        |                |  |   | 19,108    |  |  |   | 19,108  | 
|Interest payable                        |  |                | 264     |  |                   |   | 264     |                |  |   | 301       |  |  |   | 301     | 

The following methods and assumptions were used to estimate the fair value of all other financial
instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value.



19



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



Cash and Cash Equivalents, Interest-Earning Time Deposits, Federal Home Loan Bank
Stock, Interest Receivable, Stock Conversion Related Liabilities and Interest Payable

The carrying amount approximates
fair value.

Held to Maturity Securities

Fair values equal quoted market prices, if available. If quoted market prices are not available, fair value is estimated based on quoted
market prices of similar securities.

Loans Held for Sale

Fair value is estimated using quoted market prices from the secondary market.

Loans

The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining
maturities. Loans with similar characteristics were aggregated for purposes of the calculations.

Deposits

Deposits include demand deposits, savings accounts, checking accounts and certain money market deposits. The carrying
amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities.

Federal Home Loan Bank Advances

Rates currently available to us for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt.

Commitments to Originate Loans, Letters of Credit and Lines of Credit

Loan commitments and letters-of-credit generally have short-term, variable rate features and contain clauses which limit our exposure to
changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value.



20



---

##### Table of Contents

Wolverine Bancorp, Inc.

Form 10-Q

(Table Amounts in Thousands)

Notes to Condensed Consolidated Interim Financial Statements (Unaudited)



|Note 7: | Earnings Per Share
|------- | ------------------



|                                                   |  |                                 |       |   |                               |   |       |  
|-------------------------------------------------- |  | ------------------------------- | ----- | - | ----------------------------- | - | ----- | -
|                                                   |  | Three Months EndedJune 30, 2011 |       |   | Six Months EndedJune 30, 2011 |  
|Basic and diluted                                  |  |                                 |       |   |                               |   |       |  
|Earnings:                                          |  |                                 |       |   |                               |   |       |  
|Net Income (1)                                     |  | $                               | 244   |   |                               | $ | 386   |  
|                                                   |  |                                 |       |   |                               |   |       |  
|                                                   |  |                                
|Shares (1):                                        |  |                                 |       |   |                               |   |       |  
|Weighted average common shares outstanding         |  |                                 | 2,507 |   |                               |   | 2,507 |  
|Less: Average unallocated ESOP shares              |  |                                 | (201  | ) |                               |   | (201  | )
|                                                   |  |                                 |       |   |                               |   |       |  
|Average shares                                     |  |                                 | 2,306 |   |                               |   | 2,306 |  
|                                                   |  |                                 |       |   |                               |   |       |  
|                                                   |  |                                
|Net income per common share, basic and diluted (1) |  | $                               | 0.11  |   |                               | $ | 0.17  |  
|                                                   |  |                                 |       |   |                               |   |       |  



|(1) | Calculated from January 20, 2011, the effective date of the conversion and stock offering, to the period end.
|--- | -------------------------------------------------------------------------------------------------------------



|Note 8: | Subsequent Events
|------- | -----------------

On July 19, 2011, we received $165,000 in full settlement of an insurance claim made under our financial institution
bond. The $165,000 will be reported as taxable income in the third quarter. This settlement relates to an expense we incurred in connection with an external wire transfer in June 2010. This external wire transfer was previously disclosed in our
Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on March 30, 2011.



21



---

##### Table of Contents

|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

General

Managements discussion and analysis of the financial
condition and results of operations at and for three and six months ended June 30, 2011 and 2010 is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read
in conjunction with the unaudited financial statements and the notes thereto, appearing on Part I, Item 1 of this quarterly report on Form 10-Q.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly
Report contains forward-looking statements, which can be identified by the use of words such as estimate, project, believe, intend, anticipate, plan, seek,
expect, will, may and words of similar meaning. These forward-looking statements include, but are not limited to:



| |  |  | statements of our goals, intentions and expectations;
| | - |  | -----------------------------------------------------



| |  |  | statements regarding our business plans, prospects, growth and operating strategies;
| | - |  | ------------------------------------------------------------------------------------



| |  |  | statements regarding the asset quality of our loan and investment portfolios; and
| | - |  | ---------------------------------------------------------------------------------



| |  |  | estimates of our risks and future costs and benefits.
| | - |  | -----------------------------------------------------

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of
which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to
update any forward-looking statements after the date of this quarterly report.

The following factors, among others, could
cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:



| |  |  | general economic conditions, either nationally or in our market areas, that are worse than expected;
| | - |  | ----------------------------------------------------------------------------------------------------



| |  |  | competition among depository and other financial institutions;
| | - |  | --------------------------------------------------------------



| |  |  | changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;
| | - |  | -------------------------------------------------------------------------------------------------------------------



| |  |  | adverse changes in the securities markets;
| | - |  | ------------------------------------------



| |  |  | changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our ability to enter new markets successfully and capitalize on growth opportunities;
| | - |  | -------------------------------------------------------------------------------------



| |  |  | our ability to successfully integrate acquired entities, if any;
| | - |  | ----------------------------------------------------------------



| |  |  | changes in consumer spending, borrowing and savings habits;
| | - |  | -----------------------------------------------------------



22



---

##### Table of Contents

| |  |  | changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the
Securities and Exchange Commission and the Public Company Accounting Oversight Board;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | changes in our organization, compensation and benefit plans;
| | - |  | ------------------------------------------------------------



| |  |  | changes in our financial condition or results of operations that reduce capital; and
| | - |  | ------------------------------------------------------------------------------------



| |  |  | changes in the financial condition or future prospects of issuers of securities that we owns.
| | - |  | ---------------------------------------------------------------------------------------------

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results
indicated by these forward-looking statements.

Critical Accounting Policies

There are no material changes to the critical accounting policies disclosed in Wolverine Bancorp, Inc.s Annual Report on Form 10-K
as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(3) on March 31, 2011.

Comparison of
Financial Condition at June 30, 2011 and December 31, 2010

Total assets decreased $8.4 million, or 2.7%, to
$305.8 million at June 30, 2011 from $314.2 million at December 31, 2010. The decrease was primarily the result of a decrease in cash and cash equivalents, offset by an increase in interest-earning time deposits and net loans.

Cash and cash equivalents decreased $27.1 million, or 55.4%, to $21.8 million at June 30, 2011 from $48.9 million at
December 31, 2010, and interest-earning time deposits increased $11.0 million, or 73.8%, to $25.9 million at June 30, 2011 from $14.9 million at December 31, 2010. The net decrease in cash and cash equivalents and in interest-earning
time deposits was primarily the result of paying off maturing FHLB advances, funding new loan originations and maturing certificate of deposits from our deposit portfolio. The majority of these certificates were originated under our three-year
guaranteed upward re-pricing certificate of deposit product with interest rates reflecting the higher market interest rate environment at the time that these deposits were originated.

Net loans increased $9.9 million, or 4.2%, to $243.2 million at June 30, 2011 from $233.3 million at December 31, 2010 as our
multifamily loans increased $7.8 million, or 20.8%, to $45.3 million at June 30, 2011 from $37.5 million at December 31, 2010. Additionally, construction loans increased by $2.5 million, or 19.1%, to $15.6 million at June 30, 2011
from $13.1 million at December 31, 2010.

Securities held to maturity, consisting of one municipal security at
June 30, 2011 and at December 31, 2010, decreased $73,000, or 18.8%, to $315,000 at June 30, 2011 from $388,000 at December 31, 2010 due to paydowns.

Real estate owned decreased $383,000, or 16.0%, to $2.0 million at June 30, 2011 from $2.4 million at December 31, 2010. The decrease in real estate owned resulted from new foreclosures of
$983,000, primarily composed of three commercial mortgage properties totaling $638,000, offset by write-downs of $328,000 and sales of $1.0 million. Of the $1.0 million in sales of real estate owned, $854,000 came from one relationship foreclosed on
in late 2010.

Other assets, consisting primarily of prepaid FDIC assessments and deferred federal taxes, decreased $1.0
million, or 15.6%, to $5.4 million at June 30, 2011, from $6.4 million at December 31, 2010. The decrease was primarily attributable to recognition of $1.3 million of conversion related expenses previously held in an other
asset account.



23



---

##### Table of Contents

Deposits decreased $7.4 million, or 4.2%, to $167.3 million at June 30, 2011 from
$174.7 million at December 31, 2010. Certificates of deposit decreased $9.6 million, or 11.0%, to $77.5 million at June 30, 2011 from $87.1 million at December 31, 2010. Our core deposits (consisting of interest-bearing and
noninterest-bearing checking accounts, money market accounts and savings accounts) increased $2.2 million, or 2.5%, to $89.8 million at June 30, 2011 from $87.6 million at December 31, 2010. The increase in our core deposits resulted
primarily from continuing to build relationships with our existing customers as well as our marketing efforts for new customers.

Federal Home Loan Bank advances decreased $5.0 million to $71.8 million at June 30, 2011 from $76.8 million at December 31, 2010 as a result of paying off a maturing advance.

Total stockholders equity increased $22.3 million, or 53.2%, to $64.2 million at June 30, 2011 from $41.9 million at
December 31, 2010. The increase resulted from our initial public offering net proceeds of $21.8 million which closed on January 19, 2011, and net income of $446,000 during the six months ended June 30, 2011. The gross proceeds were
$25.1 million which were netted against an unearned ESOP of $2.0 million and offering expenses of $1.3 million.

Comparison of Operating
Results for the Three Months Ended June 30, 2011 and 2010

General.We recorded net income of $244,000
for the three months ended June 30, 2011 compared to net loss of $4.0 million for the three months ended June 30, 2010. Net interest income increased $374,000 to $2.3 million for the three months ended June 30, 2011 from $1.9 million
for the three months ended June 30, 2010, and other noninterest income increased $19,000 to $297,000 for the three months ended June 30, 2011 from $278,000 for the year earlier period.

Interest and Dividend Income.Interest and dividend income decreased $200,000, or 5.3%, to $3.6 million for the three
months ended June 30, 2011 from $3.8 million for the three months ended June 30, 2010, as the average balance of interest-earning assets decreased $8.4 million to $297.3 million for the three months ended June 30, 2011 from $305.7
million for the three months ended June 30, 2010, and the average yield on interest-earning assets decreased 13 basis points to 4.84% during the 2011 period from 4.97% during the 2010 period. The decrease in our average yield on
interest-earning assets was due primarily to the general decline in market interest rates as well as low-yielding cash and cash equivalents.

The biggest component decrease in average interest-earning assets was in the other interest-earning assets category, consisting of interest-earning overnight funds and time deposits, which decreased $10.3
million, or 16.8%, to $51.1 million for the three months ended June 30, 2011 from $61.4 million for the three months ended June 30, 2010. The average yield on this investment type decreased 43 basis points from 0.82% to 0.39%, resulting in
a $76,000 decrease in interest income from other interest-earning assets to $50,000 for the three months ended June 30, 2011 from $126,000 for the three months ended June 30, 2010. This was offset by an increase in average net loans, which
increased $2.8 million, or 1.2%, to $241.3 million for the three months ended June 30, 2011 from $238.5 million for the three months ended June 30, 2010. Additionally, the average balance of securities held-to-maturity decreased $754,000,
or 68.5%, to $322,000 for the June 30, 2011 period from $1.1 million for the June 30, 2010 period.

Interest income
on loans decreased $121,000, or 3.4%, to $3.5 million for the three months ended June 30, 2011 from $3.6 million for the three months ended June 30, 2010, as the average yield on loans decreased 27 basis points to 5.83% for the three
months ended June 30, 2011 from 6.10% for the three months ended June 30, 2010 reflecting the lower market interest rate environment, and the average balance of loans increased $2.8 million, or 1.2%, to $241.3 million for the three months
ended June 30, 2011 from $238.5 million for the three months ended June 30, 2010.



24



---

##### Table of Contents

Interest income on investment securities and other interest-earning assets, and dividends on
FHLB of Indianapolis stock decreased $79,000, or 49.4%, to $81,000 for the three months ended June 30, 2011 from $160,000 for the three months ended June 30, 2010. The decrease was primarily attributable to a decrease in the average
balance of other interest-earning assets, consisting of interest-earning overnight funds and time deposits. The average balance for the quarter ended June 30, 2010 of other interest-earning assets was $61.4 million, compared to the average
balance June 30, 2011 of $51.1 million. This represents a decrease of $10.3 million or 16.8%.

Interest Expense.Interest expense decreased $574,000, or 30.2%, to $1.3 million for the three months ended June 30, 2011 from $1.9 million for the three months ended June 30, 2010, as the average balance of interest-bearing liabilities decreased
$24.6 million, or 9.2%, to $241.4 million for the three months ended June 30, 2011 from $266.0 million for the three months ended June 30, 2010, and the average rate we paid on these liabilities decreased 66 basis points to 2.16% from
2.82%. The biggest component decrease was in interest expense on certificates of deposit which decreased $361,000, or 49.0%, to $375,000 for the three months ended June 30, 2011 from $736,000 for the three months ended June 30, 2010. This
resulted from a $23.8 million decrease in the average balance of certificates of deposits to $79.2 million for the three months ended June 30, 2011 from $103.0 million for the three months ended June 30, 2010. The yield on certificates of
deposit decreased 96 basis points to 1.90% for the 2011 period from 2.86% for the 2010 period.

The average balance of our
core deposits, consisting of checking accounts, money market accounts and savings accounts, increased $15.5 million, or 20.7%, to $90.4 million for the three months ended June 30, 2011 from $74.9 million for the three months ended June 30,
2010. However, the interest on core deposits decreased $3,000 to $89,000 for the 2011 period from $92,000 for the 2010 period.

Interest expense on borrowed funds, consisting entirely of Federal Home Loan Bank advances, decreased by $210,000, or 19.1%, to $840,000
for the three months ended June 30, 2011 from $1.1 million for the three months ended June 30, 2010, as our average balance of these borrowings decreased $16.3 million and the average rate paid decreased 9 basis points to 4.68% from 4.77%.

Net Interest Income.Net interest income increased $374,000, or 19.7%, to $2.3 million for the three months
ended June 30, 2011 from $1.9 million for the three months ended June 30, 2010, as our average net interest-earning assets increased to $55.9 million from $39.7 million, our net interest rate spread increased 53 basis points to 2.68% from
2.15% and our net interest margin increased 54 basis points to 2.98% from 2.44%. The increases in our net interest rate spread and net interest margin reflected the paying off of our maturing, higher interest rate FHLB advances and managing the
maturities of higher interest rate certificates of deposit, offset by our ongoing interest rate risk strategy of selling in the secondary market long-term, fixed-rate one- to four-family residential mortgage loans during the current low interest
rate environment.

Provision for Loan Losses.Based on our analysis of the factors described in Critical
Accounting Policies  Allowance for Loan Losses, in the December 31, 2010 10-K, we recorded a provision for loan losses of $400,000 for the three months ended June 30, 2011 and a provision for loan losses of $3.2 million for the
three months ended June 30, 2010. We have continued with additional provisions in 2011 because of elevated levels of non-performing assets, delinquencies and classified assets, as well as continued concerns about the Michigan economy, elevated
levels of unemployment, and declining collateral values. At June 30, 2011, non-performing loans totaled $14.6 million, or 6.0% of total loans, as compared to $10.7 million, or 4.5% of total loans, at June 30, 2010. The allowance for loan
losses to total loans receivable remains at historically elevated levels of 4.0% at June 30, 2011 and December 31, 2010.



25



---

##### Table of Contents

The increase in non-performing loans was primarily due to one loan relationship of $5.6
million that was moved to non-performing status as of June 30, 2011. Each of the loans within this relationship has been classified as substandard since 2009; however the loans were performing until this quarter.

Of the $5.6 million loan relationship, approximately 50% is collateralized by developed commercial land and approximately 50% is
collateralized by developed residential single-family lots and three single-family homes built on speculation. The entire relationship is cross collateralized and all of these properties are located within Michigan.

All loans rated substandard are specifically reviewed for impairment at least quarterly. After conducting the quarterly impairment
analysis, the specific allowance for to this relationship was increased from $90,000 to $500,000 as of June 30, 2011. We have maintained regular communications with the borrower regarding monthly payments and financial performance, with the goal of
reaching a mutually beneficial workout strategy. Overall, management continues to focus on resolving nonperforming assets and improving asset quality. In addition to our collections department personnel, in working out loans we continue to involve
business development officers and, on significant assets, underwriters and senior management.

The allowance for loan losses
as a percentage of non-performing loans decreased to 69.2% at June 30, 2011 from 94.8% at June 30, 2010. As discussed earlier our non-performing loans increased by $3.9 million from June 30, 2010 to June 30, 2011. To the best of our
knowledge, we have provided for all losses that are both probable and reasonable to estimate at June 30, 2011 and 2010.

Noninterest Income.Noninterest income increased by $19,000, or 6.8%, to $297,000 for the three months ended June 30,
2011 from $278,000 for the three months ended June 30, 2010. The increase was primarily attributable to an increase in gross rental income on real estate owned of $35,000 due to increased volume on foreclosed rental properties and the net gain
on the sale of real estate owned of $20,000, offset by a decrease of $43,000 in gain on sale of mortgage loans.

Noninterest Expense. Noninterest expense decreased $3.3 million, or 64.7%, to $1.8 million for the three months ended
June 30, 2011 from $5.1 million for the three months ended June 30, 2010. This was primarily attributable to a $3.0 million decrease in salaries and related expenses due to a $3.2 million charge we incurred in June 2010 in connection with
the freezing and funding of our multi-employer defined benefit pension plan. We also had a decrease of $331,000 in other expenses resulting primarily from a $356,000 expense we incurred in connection with an external wire transfer fraud in 2010. An
increase of $80,000 in real estate operations due to increased volume of legal and maintenance expenses on foreclosed rental properties during the quarter ended June 30, 2011, was offset by a decrease in loan legal expenses of $86,000.

Income Tax Expense (Benefit). We recorded a $127,000 income tax expense for the three months ended
June 30, 2011 compared to a $(2.1 million) income tax benefit for the 2010 period, reflecting the income of $371,000 before income tax expense during the three months ended June 30, 2011 versus loss before income tax of $6.0 million for
the three months ended June 30, 2010. Our effective tax expense rate was 34.3% for the three months ended June 30, 2011 compared to an effective tax benefit rate of (33.9)% for the three months ended June 30, 2010.

Comparison of Operating Results for the Six Months Ended June 30, 2011 and 2010

General.We recorded net income of $446,000 for the six months ended June 30, 2011 compared to net loss of $3.9 million
for the six months ended June 30, 2010. Net interest income increased $747,000 to $4.5 million for the six months ended June 30, 2011 from $3.8 million for the six months ended June 30, 2010, and other noninterest income increased
$231,000 to $741,000 for the six months ended June 30, 2011 from $510,000 for the year earlier period.

Interest
and Dividend Income.Interest and dividend income decreased $423,000, or 5.6%, to $7.2 million for the six months ended June 30, 2011 from $7.6 million for the six months ended June 30, 2010, as the average balance of
interest-earning assets decreased $8.3 million to $298.0 million for the six months ended June 30, 2011 from $306.3 million for the six months ended June 30, 2010, and the average yield on interest-earning assets decreased 15 basis points
to 4.83% during the 2011 period from 4.98% during the 2010 period. The decrease in our average yield on interest-earning assets was due primarily to the general decline in market interest rates as well as low-yielding cash and cash equivalents.

The biggest component decrease in average interest-earning assets was in the other interest-earning assets category,
consisting of interest-earning overnight funds and time deposits, which decreased $6.4 million, or 10.6% to $54.2 million for the six months ended June 30, 2011 from $60.6 million for the six months ended June 30, 2010. The average yield
on this investment type decreased 40 basis points from 0.85% to 0.45%, resulting in a $135,000 decrease in interest income from other interest-earning assets to $122,000 for the six months ended June 30, 2011 from $257,000 for the six months
ended June 30, 2010. Additionally, the average balance of securities held-to-maturity decreased $924,000, or 77.0%, to $324,000 for the June 30, 2011 period from $1.2 million for the June 30, 2010 period, and the average net loans
decreased $874,000, or 0.4%, to $238.9 million for the six months ended June 30, 2011 from $239.8 million for the six months ended June 30, 2010.



26



---

##### Table of Contents

Interest income on loans decreased $281,000, or 3.8%, to $7.0 million for the six months
ended June 30, 2011 from $7.3 million for the six months ended June 30, 2010, as the average yield on loans decreased 22 basis points to 5.87% for the six months ended June 30, 2011 from 6.09% for the six months ended June 30,
2010 reflecting the lower market interest rate environment, and the average balance of loans decreased $857,000, or 0.4%, to $238.9 million for the six months ended June 30, 2011 from $239.8 million for the six months ended June 30, 2010.

Interest income on investment securities and other interest-earning assets, and dividends on FHLB of Indianapolis stock
decreased $142,000, or 43.3%, to $186,000 for the six months ended June 30, 2011 from $328,000 for the six months ended June 30, 2010. This decrease was primarily attributable to a decrease in the average balance of other interest-earning
assets, consisting of interest-earning overnight funds, and time deposits and a decrease in the weighted average yield paid on these interest-earning assets. The average balance as of June 30, 2010 of other interest-earning assets was $60.6
million, compared to the average balance for the six months ended June 30, 2011 of $54.2 million. This decrease of $6.4 million represents a decrease of 10.6%. The weighted average yield paid on these interest-earning assets decreased 35 basis
points to 0.63% for the 2011 period from 0.98% for the 2010 period.

Interest Expense.Interest expense
decreased $1.2 million, or 31.6%, to $2.6 million for the six months ended June 30, 2011 from $3.8 million for the six months ended June 30, 2010, as the average balance of interest-bearing liabilities decreased $23.9 million, or 9.0%, to
$242.7 million for the six months ended June 30, 2011 from $266.6 million for the six months ended June 30, 2010. The average rate we paid on these liabilities decreased 69 basis points to 2.16% from 2.85%. The biggest component decrease
was in interest expense on certificates of deposit which decreased $702,000, or 46.8%, to $786,000 for the six months ended June 30, 2011 from $1.5 million for the six months ended June 30, 2010. This resulted from a $23.1 million decrease
in the average balance of certificates of deposits to $80.5 million for the six months ended June 30, 2011 from $103.6 million for the six months ended June 30, 2010. The yield on certificates of deposit decreased 92 basis points to 1.95%
for the 2011 period from 2.87% for the 2010 period.

The average balance of our core deposits, consisting of checking
accounts, money market accounts and savings accounts, increased $16.3 million, or 22.0%, to $90.4 million for the six months ended June 30, 2011 from $74.1 million for the six months ended June 30, 2010. Correspondingly, the interest on
core deposits increased $11,000 to $187,000 for the 2011 period from $176,000 for the 2010 period.

Interest expense on
borrowed funds, consisting entirely of Federal Home Loan Bank advances, decreased by $479,000, or 22.8%, to $1.7 million for the six months ended June 30, 2011 from $2.1 million for the six months ended June 30, 2010, as our average
balance of these borrowings decreased $17.1 million and the average rate paid decreased 19 basis points to 4.60% from 4.79%.

Net Interest Income.Net interest income increased $747,000, or 19.7%, to $4.6 million for the six months ended
June 30, 2011 from $3.8 million for the six months ended June 30, 2010, as our net interest-earning assets increased to $55.4 million from $39.7 million, our net interest rate spread increased 54 basis points to 2.67% from 2.13% and our
net interest margin increased 53 basis points to 2.96% from 2.43%. The increases in our net interest rate spread and net interest margin reflected the paying off of our maturing, higher interest rate FHLB advances and managing the maturities of
higher interest rate certificates of deposit, offset by our ongoing interest rate risk strategy of selling in the secondary market long-term, fixed-rate one- to four-family residential mortgage loans during the current low interest rate environment.

Provision for Loan Losses.Based on our analysis of the factors described in Critical Accounting Policies
 Allowance for Loan Losses, in the December 31, 2010 10-K, we recorded a provision for loan losses of $760,000 for the six months ended June 30, 2011 and a provision for loan



27



---

##### Table of Contents

losses of $3.5 million for the six months ended June 30, 2010. We have continued with additional provisions in 2011 because of elevated levels of non-performing assets, delinquencies and
classified assets, as well as continued concerns about the Michigan economy, elevated levels of unemployment, and declining collateral values. At June 30, 2011, non-performing loans totaled $14.6 million, or 6.0% of total loans, as compared to
$10.7 million, or 4.5% of total loans, at June 30, 2010. The allowance for loan losses to total loans receivable remains at historically elevated levels of 4.0% at June 30, 2011 and December 31, 2010. The increase in non-performing
loans was primarily due to one loan relationship of $5.6 million that was moved to non-performing stats as of June 30, 2011. The primary collateral for this relationship consists of residential and commercial development land. Each of the loans
within this relationship has been classified as substandard since 2009; however, it had been a performing relationship until this quarter. After conducting the quarterly impairment analysis, the specific allowance attributable to this relationship
was increased from $90,000 to $500,000 as of June 30, 2011.

The allowance for loan losses as a percentage of
non-performing loans decreased to 69.2% at June 30, 2011 from 94.8% at June 30, 2010. To the best of our knowledge, we have provided for all losses that are both probable and reasonable to estimate at June 30, 2011 and 2010.

Noninterest Income. Noninterest income increased by $231,000, or 45.3%, to $741,000 for the six months ended
June 30, 2011 from $510,000 for the six months ended June 30, 2010. The increase was primarily attributable to an increase in gross rental income on real estate owned of $92,000 due to increased volume on foreclosed rental properties, an
increase in the net gain on the sale of real estate owned of $75,000, and a $31,000 gain on the sale of a fixed asset recognized in 2011.

Noninterest Expense. Noninterest expense decreased $2.9 million, or 42.6%, to $3.9 million for the six months ended June 30, 2011 from $6.8 million for the six months ended
June 30, 2010, primarily attributable to a $3.0 million decrease in salaries and related expenses due to a $3.2 million charge we incurred in June 2010 in connection with the freezing and funding of our multi-employer defined benefit pension
plan. We also had a decrease of $293,000 in other expenses resulting primarily from a $356,000 expense we incurred in connection with an external wire transfer fraud in 2010, offset by an increase in the 2011 period of $442,000 in real estate
operations due to increased volume of legal and maintenance expenses on foreclosed rental properties.

Income Tax
Expense (Benefit). We recorded a $234,000 income tax expense for the six months ended June 30, 2011 compared to a $(2.0 million) income tax benefit for the 2010 period, reflecting the income of $680,000 before income tax expense during
the six months ended June 30, 2011 versus loss before income tax of $5.9 million for the six months ended June 30, 2010. Our effective tax expense rate was 34.4% for the six months ended June 30, 2011 compared to an effective tax
benefit rate of (33.9)% for the six months ended June 30, 2010.

Asset Quality

Real estate owned totaled $2.0 million, or 0.7% of total assets, at June 30, 2011 as compared to $1.0 million, or 0.3% of total
assets, at June 30, 2010. The largest relationship as of June 30, 2011 comprised $305,000, or 15.3% which decreased to $608,000 from March 31, 2011 due to property sales.

Non-performing assets totaled $16.6 million, or 5.4% of total assets, at June 30, 2011 as compared to $11.7 million, or 3.8% of
total assets, at June 30, 2010. The largest substandard relationship as of June 30, 2011 has a total balance of $5.6 million with a specific allowance of $500,000. Of the $25.9 million loans rated substandard, approximately $10.8 million
are performing.

At June 30, 2011, we had 18 loans, totaling $6.1 million, for which we had temporarily extended the
maturities while working on the loan renewal process. During the renewal process, the borrowers continue repayment according to the original loan terms which are at market interest rates. Of these loans, two loans totaling $875,000 were
classified as substandard and four loans, totaling $590,000, were considered special mention. At June 30, 2011, none of these loans was considered a troubled debt restructuring, and all of these loans were considered performing at June 30,
2011.



28



---

##### Table of Contents

Hiring of Executive Vice President

In June 2011, we hired an Executive Vice President to oversee the commercial and retail business development and marketing teams. The
position also includes responsibility for expanding customer banking relationships and improving our growth and profitability.



|ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk
|------- | ----------------------------------------------------------

Not applicable, as the Registrant is a smaller reporting company.



|ITEM 4. | Controls and Procedures
|------- | -----------------------

An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer and
the and Chief Operating Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of March 31,
2011. Based on that evaluation, our management, including the Chief Executive Officer and the Chief Operating Officer and Treasurer, concluded that our disclosure controls and procedures were effective.

During the quarter ended June 30, 2011, there have been no changes in our internal controls over financial reporting that have
materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

Part II  Other Information

Item 1. Legal Proceedings

We are subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these
legal actions is not expected to have a material adverse effect on our financial condition or results of operations.

ITEM 1A. Risk Factors

Not applicable, as the Registrant is a smaller reporting company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds



| | (a) | There were no sales of unregistered securities during the period covered by this Report.
| | --- | ----------------------------------------------------------------------------------------



| | (b) | Not applicable.
| | --- | ---------------



| | (c) | There were no issuer repurchases of securities during the period covered by this Report.
| | --- | ----------------------------------------------------------------------------------------

Item 3. Defaults Upon Senior Securities

None.

Item 4. [Reserved]

Item 5. Other Information

None.



29



---

##### Table of Contents

Item 6. Exhibits



|     |  |                                                                                                                               
|---- |  | ------------------------------------------------------------------------------------------------------------------------------
|31.1 |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                            
|     | 
|31.2 |  | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                            
|     | 
|32   |  | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



30



---

##### Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.



|                      |  |                                      
|--------------------- |  | -------------------------------------
|                      |  | WOLVERINE BANCORP, INC.              
|                      | 
|Date: August 12, 2011 |  | /s/ David H. Dunn                    
|                      |  | David H. Dunn                        
|                      |  | President and Chief Executive Officer
|                      | 
|Date: August 12, 2011 |  | /s/ Rick A. Rosinski                 
|                      |  | Rick A. Rosinski                     
|                      |  | Chief Operating Officer and Treasurer



31