Southern Michigan Bancorp, Inc. Announces Second Quarter 2025 Earnings

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COLDWATER, Mich., July 23, 2025 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced second quarter 2025 net income of $3,238,000, or $0.70 per share, an increase of $750,000, or 30.14%, compared to net income of $2,488,000, or $0.55 per share, for the second quarter of 2024. For the first six months of 2025, Southern earned $6,284,000, or $1.36 per share, an increase of $1,118,000, or 21.64%, compared to net income of $5,166,000, or $1.14 per share, for the same six-month period one year ago.

The annualized return on average assets for the six-month periods ended June 30, 2025, and June 30, 2024, was 0.81% and 0.71%, respectively. The annualized return on average equity was 11.31% for the first six months of 2025 compared to 10.34% for the first six months of 2024. The tax equivalent net interest margin for the six-month period ending June 30, 2025 was 3.20% compared to 2.94% for the same period of 2024.

John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "We are pleased to report another solid quarter. Our earnings trend remained positive, and credit quality remained strong. Our continued investment in market expansion and staff translated into record loans and total assets at quarter end.”  

The allowance for credit losses totaled $13,224,000, or 1.11% of loans on June 30, 2025. Net loan charge-offs totaled $15,000 for the first six months of 2025, compared to $11,000 for the first six months of 2024. Non-performing loans as a percentage of total loans were 0.01% as of June 30, 2025, and 0.08% as of December 31, 2024.  

Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 18 offices within Branch, Calhoun, Hillsdale, Jackson, Kalamazoo and St. Joseph Counties providing a broad range of consumer, business and wealth management services throughout the region.

This press release contains forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and Southern Michigan Bancorp, Inc. Forward-looking statements are identifiable by words or phrases such as "expected,” "begin,” and other similar words or expressions. All statements with reference to a future time period are forward-looking. Management’s determination of the provision and allowance for credit losses and other accounting estimates, such as the carrying value of goodwill, other real estate owned, mortgage servicing rights and the fair value of investment securities, involves judgments that are inherently forward-looking. The future effect of changes in the financial and credit markets and the national and regional economy on the banking industry, generally, and Southern Michigan Bancorp, Inc., specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed in or implied by such forward-looking statements. Southern Michigan Bancorp, Inc., does not update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

SOUTHERN MICHIGAN BANCORP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share data)        June 30,

2025  December 31,

2024 ASSETS       Cash and cash equivalents$59,176  $73,737 Federal funds sold 257   259 Securities available for sale, at fair value 160,961   159,320 Securities held-to-maturity, at amortized cost 68,398   60,454 Loans held-for-sale 180   995 Loans, net of allowance for credit losses of $13,224 - 2025, $12,782 - 2024 1,180,162   1,103,652 Premises and equipment, net 25,502   25,600 Net cash surrender value of life insurance 28,050   23,139 Goodwill 13,422   13,422 Other intangible assets, net 93   111 Other assets 35,062   35,866 TOTAL ASSETS$1,571,263  $1,496,555         LIABILITIES        Deposits:       Non-interest bearing$233,369  $223,583 Interest bearing 1,070,746   1,028,212 Total deposits 1,304,115   1,251,795         Securities sold under agreements to repurchase and overnight borrowings 818   1,560 Accrued expenses and other liabilities 19,962   18,355 Other borrowings 97,900   82,900 Subordinated debentures 34,756   34,722 Total liabilities 1,457,551   1,389,332         SHAREHOLDERS’ EQUITY       Preferred stock, 100,000 shares authorized; none issued or outstanding -   - Common stock, $2.50 par value:       Authorized - 10,000,000 shares       Issued and outstanding - 4,627,809 shares in 2025, 4,577,107 shares in 2024 11,565   11,438 Additional paid-in capital 13,769   13,438 Retained earnings 102,264   97,462 Accumulated other comprehensive loss (13,886)  (15,115)Total shareholders’ equity 113,712   107,223 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$1,571,263  $1,496,555          Southern Michigan Bancorp, Inc.

condensed consolidated statements of income (unaudited)

(In thousands, except per share data)

 Three Months Ended

June 30,  Six Months Ended

June 30,  2025  2024  2025  2024 Interest income:               Loans, including fees$18,268  $15,838  $35,043  $31,304 Federal funds sold and balances with banks 766   1,058   1,766   2,317 Securities:               Taxable 1,530   1,565   2,937   3,048 Tax-exempt 377   296   695   595 Total interest income 20,941   18,757   40,441   37,264                 Interest expense:               Deposits 7,553   7,269   14,856   14,088