Southern Michigan Bancorp, Inc. Announces First Quarter 2024 Earnings
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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.