SOMC Southern Michigan Bancorp, Inc.

OBB
$31.49

Southern Michigan Bancorp, Inc. Announces First Quarter 2026 Earnings

Wednesday, April 29, 2026 · 7:40 AM ET GlobeNewswire

COLDWATER, Mich., April 29, 2026 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced first quarter 2026 net income of $3,306,000, or $0.71 per share, an increase of $260,000, or 8.5%, compared to net income of $3,046,000, or $0.66 per share, for the first quarter of 2025.

John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “First quarter 2026 earnings were solid. We achieved record levels of loans, deposits and total assets as of March 31, 2026.”   

The annualized return on average assets for the three-month periods ended March 31, 2026, and March 31, 2025, was 0.77% and 0.79%, respectively. The annualized return on average equity was 10.65% for the first quarter of 2026 compared to 11.11% for the first quarter of 2025. The tax equivalent net interest margin for the three-month period ending March 31, 2026 was 3.26% compared to 3.08% for the same period of 2025.

The allowance for credit losses totaled $15,268,000, or 1.17% of loans on March 31, 2026. Net loan charge-offs totaled $817,000 for the first quarter of 2026, compared to $2,000 for the first quarter of 2025. Non-performing loans as a percentage of total loans were 0.90% as of March 31, 2026, and 0.98% as of December 31, 2025.  

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 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,
2026		  December 31,
2025		 
ASSETS       
Cash and cash equivalents$87,820  $110,376 
Securities available for sale, at fair value 156,249   156,220 
Securities held-to-maturity, at amortized cost 61,690   62,471 
Loans held-for-sale 914   214 
Loans, net of allowance for credit losses of $15,268 – 2026, $15,553 - 2025 1,291,403   1,257,855 
Premises and equipment, net 25,270   25,188 
Net cash surrender value of life insurance 32,439   28,506 
Goodwill 13,422   13,422 
Other intangible assets, net 66   75 
Other real estate owned 3,689   3,689 
Other assets 32,709   32,461 
TOTAL ASSETS$1,705,671  $1,690,477 
        
LIABILITIES       
Deposits:       
Non-interest bearing$233,583  $224,171 
Interest bearing 1,197,498   1,192,627 
Total deposits 1,431,081   1,416,798 
        
Securities sold under agreements to repurchase and overnight borrowings 1,118   1,390 
Accrued expenses and other liabilities 17,762   18,118 
Other borrowings 97,900   97,900 
Subordinated debentures 34,809   34,791 
Total liabilities 1,582,670   1,568,997 
        
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 – 4,658,113 shares in 2026,
4,623,734 shares in 2025		 11,641   11,555 
Additional paid-in capital 13,615   13,621 
Retained earnings 109,229   106,716 
Accumulated other comprehensive loss (11,484)  (10,412)
Total shareholders’ equity 123,001   121,480 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$1,705,671  $1,690,477 



Southern Michigan Bancorp, Inc.
condensed consolidated statements of income (unaudited)

(In thousands, except per share data) 
 Three Months Ended
March 31,		 
 2026  2025 
Interest income:       
Loans, including fees$19,166  $16,775 
Securities:       
Taxable 1,358   1,408 
Tax-exempt 411   317 
Other 964   1,000 
Total interest income 21,899   19,500 
        
Interest expense:       
Deposits 7,657   7,302 
Other 1,419   1,285 
Total interest expense 9,076   8,587 
Net interest income 12,823   10,913 
Provision for credit losses 758   164 
Net interest income after provision for credit losses 12,065   10,749 
        
Non-interest income:       
Service charges on deposit accounts 436   406 
Trust fees 931   738 
Net gains on loan sales 197   220 
Earnings on life insurance assets 278   372 
ATM and debit card fee income 451   443 
Other 211   189 
Total non-interest income 2,504   2,368 
        
Non-interest expense:       
Salaries and employee benefits 6,385   5,773 
Occupancy, net 679   615 
Equipment 500   486 
Professional and outside services 538   452 
Software maintenance 739   658 
ATM expenses 232   236 
Printing, postage, and supplies 118   128 
Telecommunication expenses 73   73 
Other 1,343   1,030 
Total non-interest expense 10,607   9,451 
INCOME BEFORE INCOME TAXES 3,962   3,666 
Federal income tax provision 656   620 
NET INCOME$3,306  $3,046 
        
Basic Earnings Per Common Share$0.71  $0.66 
Diluted Earnings Per Common Share 0.71   0.66 
Dividends Declared Per Common Share 0.17   0.16 
        

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/253d8ac8-1be8-475a-868c-ca6266362d14


CONTACT:  John R. Waldron, President and CEO(517) 279-5500

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Southern Michigan Bank and Trust, Coldwater Main Office

Southern Michigan Bank and Trust, Coldwater Main Office
Source: Southern Michigan Bancorp, Inc.
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