Southern Michigan Bancorp, Inc. Announces First Quarter 2024 Earnings
April 24, 2024 at 06:00 am EDT
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COLDWATER, Mich., April 24, 2024 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced first quarter net income of $2,678,000, or $0.59 per share, compared to net income of $3,005,000, or $0.66 per share, for the first quarter of 2023.
John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “Earnings were lower due to net interest margin compression in this higher interest rate environment and our overhead increased as we continued our expansion. Total assets, loans and deposits all reached record highs.”
As of March 31, 2024, total consolidated assets grew to $1.479 billion compared to $1.415 billion on December 31, 2023. Likewise, total loans and deposits also grew during the quarter totaling $1.058 billion and $1.211 billion, respectively, on March 31, 2024.
The allowance for credit losses totaled $11,687,000, or 1.10% of loans on March 31, 2024. Net loan charge-offs totaled $10,000 for the first quarter of 2024, compared to $0 during the first quarter of 2023. Delinquent and non-accrual loans as a percentage of gross loans were 0.11% on March 31, 2024 compared to 0.10% on December 31, 2023.
The annualized return on average assets for the three-month periods ended March 31, 2024 and March 31, 2023 were 0.73% and 0.93% respectively. The annualized return on average equity was 10.80% for the first quarter of 2024 compared to 13.68% for the first quarter of 2023. The tax equivalent net interest margin for the three-month period ending March 31, 2024 was 2.95% compared to 3.31% for the same period of 2023.
Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 15 branches within Branch, Calhoun, Hillsdale, Jackson, Kalamazoo and St. Joseph Counties, and a loan production office in Jackson County, 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)
March 31, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
122,869
$
71,620
Federal funds sold
252
1,468
Securities available for sale, at fair value
163,210
169,740
Securities held-to-maturity, at amortized cost
60,864
61,600
Loans held-for-sale
683
169
Loans, net of allowance for credit losses of $11,687 - 2024 ($11,697 - 2023)
1,046,787
1,024,720
Premises and equipment, net
22,087
23,114
Net cash surrender value of life insurance
22,636
22,472
Goodwill
13,422
13,422
Other intangible assets, net
138
147
Other assets
25,908
26,323
TOTAL ASSETS
$
1,478,856
$
1,414,795
LIABILITIES
Deposits:
Non-interest bearing
$
204,748
$
226,178
Interest bearing
1,005,768
931,793
Total deposits
1,210,516
1,157,971
Securities sold under agreements to repurchase and overnight borrowings
1,824
1,738
Accrued expenses and other liabilities
15,044
15,703
Other borrowings
116,900
106,900
Subordinated debentures
34,670
34,653
Total liabilities
1,378,954
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 – 4,521,106 shares in 2024 (4,533,637 shares in 2023)
11,298
11,330
Additional paid-in capital
13,131
13,126
Retained earnings
91,794
89,808
Accumulated other comprehensive loss, net
(16,321
)
(16,434
)
Total shareholders’ equity
99,902
97,830
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
1,478,856
$
1,414,795
SOUTHERN MICHIGAN BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
Three Months Ended March 31,
2024
2023
Interest income:
Loans, including fees
$
15,466
$
11,853
Securities:
Taxable
1,483
1,527
Tax-exempt
299
329
Other
1,259
624
Total interest income
18,507
14,333
Interest expense:
Deposits
6,819
3,767
Other
1,627
660
Total interest expense
8,446
4,427
Net interest income
10,061
9,906
Provision for credit losses
-
275
Net interest income after provision for credit losses
Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust (The Bank). The Bank operates about 18 branches within Branch, Calhoun, Hillsdale, Jackson, Kalamazoo, and St. Joseph counties, providing a range of consumer, business, and wealth management services throughout the region. Its business, which it conducts primarily through the Bank, is concentrated in a single industry segment, commercial banking. The Bank offers a variety of deposit, payment, credit, and other financial services to all types of customers. The Bankâs commercial lending covers categories, such as business, industrial, agricultural, construction, inventory, and real estate. It offers trust and investment services, which include investment management, trustee services, and others. It also owns Southern Michigan Bancorp Capital Trust I, SMB Risk Management, Inc., and 27 Marshall Street, LLC. The Bank wholly owns SMB Financial Services, Inc.