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                                  EXHIBIT 99.1

                              STURGIS BANCORP, INC.
                                 (the "Company")


CHARTER


AUDIT COMMITTEE

The Audit Committee is a committee of the Board of Directors.

PURPOSE & COMPOSITION

This charter details the composition, roles and responsibilities of the Audit
Committee. The Board of Directors shall appoint at least three directors who are
independent of the Company's Management and have no relationships that could
interfere with their independence and execution of the Committee's
responsibilities to the Board of Directors. At least one member must have
expertise in accounting or other aspects of financial management and all members
are expected to be financially literate or to gain such literacy after
appointment. The Committee shall review this charter annually and receive
approval for its continued use (and any recommended amendments) from the Board
of Directors.

STATEMENT OF POLICY

The Audit Committee shall provide assistance to the Board of Directors in
fulfilling their oversight responsibility to the shareholders, potential
shareholders, the investment community, and others relating to the Company's
financial statements and the financial reporting process, the systems of
internal accounting and financial controls, the internal audit function, the
annual independent audit of the Company's financial statements, and the legal
compliance and ethics programs as established by Management and the Board. In so
doing, it is the responsibility of the Committee to maintain free and open
communication between the Committee, independent auditors, the internal
auditors, and Management of the Company. In discharging its oversight role, the
Committee is empowered to investigate any matter brought to its attention with
full access to all books, records, facilities, and personnel of the Company and
the power to retain outside counsel, or other experts for this purpose.

RESPONSIBILITIES

The primary responsibility of the Audit Committee is to oversee the Company's
financial reporting process on behalf of the Board and report the results of
their activities to the Board. While the Audit Committee has the
responsibilities and powers set forth in this Charter, it is not the duty of the
Audit Committee to plan or conduct audits or to determine that the Company's
financial statements are complete and accurate and are in accordance with
generally accepted accounting principles. Management is responsible for
preparing the Company's financial

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statements, and the independent auditors are responsible for auditing those
financial statements. It is not the duty of the Audit Committee to conduct
investigations, to resolve disagreements, if any, between Management and the
independent auditor, or to assure compliance with laws and regulations and the
Company's Code of Conduct.

The Committee, in carrying out its responsibilities, believes its policies and
procedures should remain flexible, in order to best react to changing conditions
and circumstances. The Committee should take appropriate actions to set the
overall corporate "tone" for quality financial reporting, sound business risk
practices, and ethical behavior.

PROCESSES

The following shall be the principal recurring processes of the Audit Committee
in carrying out its oversight responsibilities. The processes are set forth as a
guide with the understanding that the Committee may supplement them as
appropriate.

The Committee shall have a clear understanding with Management and the
independent auditors that the independent auditors are ultimately accountable to
the Board and the Audit Committee, as representatives of the Company's
shareholders. The Committee shall be directly responsible for the appointment
and termination (subject, if applicable, to shareholder ratification),
compensation, and oversight of the work of the independent auditors. The
Committee shall discuss with the auditors their independence from Management and
the Company shall consider the compatibility of non-audit services with the
auditors' independence. Annually, the Committee shall review and recommend to
the Board the selection of the Company's independent auditors, subject to
shareholders' approval.

The Committee shall discuss with the internal auditors and the independent
auditors the overall scope and plans for their respective audits, including the
adequacy of staffing and compensation. Also, the Committee shall discuss with
Management, the internal auditors, and the independent auditors the adequacy and
effectiveness of the accounting and financial controls, including the Company's
system to monitor and manage business risk, and legal and ethical compliance
programs, including the Company's Code of Conduct. Further, the Committee shall
meet separately with the internal auditors and the independent auditors, with
and without Management present, to discuss the results of their examinations and
will provide sufficient opportunity for the internal auditors and the
independent auditors to meet privately with the members of the Committee.

The Committee shall review the interim financial statements with Management and
the independent auditors prior to the filing of the Company's Quarterly Report
on Form 10-Q. Also, the Committee shall discuss the results of the quarterly
review and any other matters required to be communicated to the Committee by the
independent auditors under generally accepted auditing standards. The Chair of
the Committee may represent the entire committee for the purposes of this
review.

The committee shall review with Management and the independent auditors the
financial statements to be included in the Company's Annual Report on Form 10-K
(or the annual report to

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shareholders if distributed prior to the filing of Form 10-K), including their
judgment about the quality, not just the acceptability, of accounting
principles, the reasonableness of significant judgments, and the clarity of the
disclosures in the financial statements. Also, the Committee shall discuss the
results of the annual audit and any other matters required to be communicated to
the Committee by the independent auditors under generally accepted auditing
standards.

The Committee has established procedures for the receipt, retention, and
treatment of complaints received by the issuer regarding accounting, internal
accounting controls, or auditing matters, and the confidential, anonymous
submission by employees of the issuer of concerns regarding questionable
accounting or auditing matters.