COLDWATER, Mich., Feb. 14, 2025 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced fourth quarter net income of $2,650,000, or $0.57 per share, compared to net income of $2,437,000, or $0.54 per share, for the fourth quarter of 2023. Southern earned $10,402,000 or $2.28 per share, for the year ended December 31, 2024, compared with $10,905,000 or $2.40 per share, for the same period one year ago.
John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "2024 was another solid year with total assets reaching approximately $1.5 billion. During the year ended December 31, 2024, total loans and deposits grew to $1.116 billion and $1.252 billion, respectively. While our earnings continue to be impacted by the current interest rate environment, we remain encouraged by the strength of our core deposits and our ability to maintain asset quality."
The allowance for credit losses totaled $12,782,000, or 1.14% of loans on December 31, 2024, compared to $11,697,000, or 1.13% on December 31, 2023. Net loan charge-offs totaled $27,000 for 2024, compared to $15,000 for 2023. Non-performing loans as a percentage of total loans were 0.08% on December 31, 2024 and December 31, 2023.
The annualized return on average assets for the years ended December 31, 2024, and December 31, 2023, was 0.71% and 0.80%, respectively. The annualized return on average equity was 10.07% for 2024 compared to 11.94% for 2023. The tax equivalent net interest margin for the years ending December 31, 2024, and 2023 was 2.98% and 3.16%, respectively.
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, extend, 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 undertake to 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) | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 73,737 | $ | 71,620 | ||||
| Federal funds sold | 259 | 1,468 | ||||||
| Securities available for sale, at fair value | 159,320 | 169,740 | ||||||
| Securities held-to-maturity, at amortized cost | 60,454 | 61,600 | ||||||
| Loans held-for-sale | 995 | 169 | ||||||
| Loans, net of allowance for credit losses of $12,782 - 2024, $11,697 - 2023 | 1,103,652 | 1,024,720 | ||||||
| Premises and equipment, net | 25,600 | 23,114 | ||||||
| Net cash surrender value of life insurance | 23,139 | 22,472 | ||||||
| Goodwill | 13,422 | 13,422 | ||||||
| Other intangible assets, net | 111 | 147 | ||||||
| Other assets | 35,866 | 26,323 | ||||||
| TOTAL ASSETS | $ | 1,496,555 | $ | 1,414,795 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Non-interest bearing | $ | 223,583 | $ | 226,178 | ||||
| Interest bearing | 1,028,212 | 931,793 | ||||||
| Total deposits | 1,251,795 | 1,157,971 | ||||||
| Securities sold under agreements to repurchase and overnight borrowings | 1,560 | 1,738 | ||||||
| Accrued expenses and other liabilities | 18,355 | 15,703 | ||||||
| Other borrowings | 82,900 | 106,900 | ||||||
| Subordinated debentures | 34,722 | 34,653 | ||||||
| Total liabilities | 1,389,332 | 1,316,965 | ||||||
| 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 - 4,577,107 shares in 2024, 4,533,637 shares in 2023 | 11,438 | 11,330 | ||||||
| Additional paid-in capital | 13,438 | 13,126 | ||||||
| Retained earnings | 97,462 | 89,808 | ||||||
| Accumulated other comprehensive loss | (15,115 | ) | (16,434 | ) | ||||
| Total shareholders' equity | 107,223 | 97,830 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,496,555 | $ | 1,414,795 | ||||
| SOUTHERN MICHIGAN BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 16,628 | $ | 15,308 | $ | 64,376 | $ | 54,887 | ||||
| Federal funds sold and balances with banks | 999 | 766 | 4,629 | 3,125 | ||||||||
| Securities: | ||||||||||||
| Taxable | 1,376 | 1,635 | 5,889 | 6,291 | ||||||||
| Tax-exempt | 318 | 304 | 1,222 | 1,265 | ||||||||
| Total interest income | 19,321 | 18,013 | 76,116 | 65,568 | ||||||||
| Interest expense: | ||||||||||||
| Deposits | 7,358 | 6,077 | 29,013 | 20,593 | ||||||||
| Other | 1,315 | 1,606 | 6,016 | 4,995 | ||||||||
| Total interest expense | 8,673 | 7,683 | 35,029 | 25,588 | ||||||||
| Net interest income | 10,648 | 10,330 | 41,087 | 39,980 | ||||||||
| Provision for credit losses | 353 | - | 1,014 | 950 | ||||||||
| Net interest income after provision for credit losses | 10,295 | 10,330 | 40,073 | 39,030 | ||||||||
| Non-interest income: | ||||||||||||
| Service charges on deposit accounts | 422 | 422 | 1,692 | 1,670 | ||||||||
| Trust fees | 704 | 632 | 2,744 | 2,419 | ||||||||
| Net gains on loan sales | 253 | 119 | 672 | 305 | ||||||||
| Earnings on life insurance assets | 170 | 161 | 667 | 617 | ||||||||
| ATM and debit card fee income | 462 | 447 | 1,818 | 1,786 | ||||||||
| Other | 289 | 296 | 898 | 941 | ||||||||
| Total non-interest income | 2,300 | 2,077 | 8,491 | 7,738 | ||||||||
| Non-interest expense: | ||||||||||||
| Salaries and employee benefits | 6,233 | 5,836 | 22,388 | 20,586 | ||||||||
| Occupancy, net | 540 | 416 | 2,054 | 1,813 | ||||||||
| Equipment | 425 | 385 | 1,658 | 1,449 | ||||||||
| Professional and outside services | 581 | 770 | 2,156 | 2,243 | ||||||||
| Software maintenance | 635 | 608 | 2,452 | 2,247 | ||||||||
| ATM expenses | 212 | 201 | 841 | 803 | ||||||||
| Printing, postage, and supplies | 97 | 118 | 510 | 437 | ||||||||
| Telecommunication expenses | 73 | 109 | 313 | 376 | ||||||||
| Other | 1,096 | 940 | 4,053 | 3,466 | ||||||||
| Total non-interest expense | 9,892 | 9,383 | 36,425 | 33,420 | ||||||||
| INCOME BEFORE INCOME TAXES | 2,703 | 3,024 | 12,139 | 13,348 | ||||||||
| Federal income tax provision | 53 | 587 | 1,737 | 2,443 | ||||||||
| NET INCOME | $ | 2,650 | $ | 2,437 | $ | 10,402 | $ | 10,905 | ||||
| Basic Earnings Per Common Share | $ | 0.57 | $ | 0.54 | $ | 2.28 | $ | 2.40 | ||||
| Diluted Earnings Per Common Share | 0.57 | 0.54 | 2.28 | 2.40 | ||||||||
| Dividends Declared Per Common Share | 0.15 | 0.14 | 0.60 | 0.56 | ||||||||
