Southern Michigan Bancorp, Inc. Announces Third Quarter 2024 Earnings
COLDWATER, Mich., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC:SOMC) announced third quarter net income of $2,586,000, or $0.57 per share, compared to net income of $2,767,000, or $0.61 per share, for the third quarter of 2023. For the first nine months of 2024, Southern earned $7,751,000 or $1.70 per share, compared with $8,468,000 or $1.86 per share, for the same nine-month period one year ago.
John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "For the first time, our bank has surpassed $1.5 billion in total assets, a significant milestone that reflects our ongoing growth and expansion across all markets. 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. Our focus on disciplined growth strategies has positioned us well, even amid challenges. As we navigate the shifting economic landscape, we are confident in our capacity to sustain momentum and further strengthen our balance sheet."
As of September 30, 2024, total loans and deposits grew during the first nine months totaling $1.084 billion and $1.266 billion, respectively.
The allowance for credit losses totaled $12,363,000, or 1.14% of loans on September 30, 2024. Net loan charge-offs totaled $20,000 for the first nine months of 2024, compared to net charge-offs of 7,000 for the first nine months of 2023. Non-performing loans as a percentage of total loans were 0.08% on September 30, 2024 compared to 0.09% on December 31, 2023.
The annualized return on average assets for the nine-month periods ended September 30, 2024 and September 30, 2023 was 0.70% and 0.84% respectively. The annualized return on average equity was 10.18% for the first nine months of 2024 compared to 12.42% for the first nine months of 2023. The tax equivalent net interest margin for the nine-month periods ending September 30, 2024 and 2023 was 2.94% and 3.18%, 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)
September 30,2024
December 31,2023
ASSETS
Cash and cash equivalents
$
121,022
$
71,620
Federal funds sold
264
1,468
Securities available for sale, at fair value
160,771
169,740
Securities held-to-maturity, at amortized cost
60,129
61,600
Loans held-for-sale
871
169
Loans, net of allowance for credit losses of $12,363, 2024, $11,697 - 2023
1,071,234
1,024,720
Premises and equipment, net
23,406
23,114
Net cash surrender value of life insurance
22,970
22,472
Goodwill
13,422
13,422
Other intangible assets, net
120
147
Other assets
36,314
26,323
TOTAL ASSETS
$
1,510,523
$
1,414,795
LIABILITIES
Deposits:
Non-interest bearing
$
219,072
$
226,178
Interest bearing
1,047,024
931,793
Total deposits
1,266,096
1,157,971
Securities sold under agreements to repurchase and overnight borrowings
1,688
1,738
Accrued expenses and other liabilities
17,996
15,703
Other borrowings
82,900
106,900
Subordinated debentures
34,705
34,653
Total liabilities
1,403,385
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, 4,563,995 shares in 2024,4,533,637 shares in 2023
