COLDWATER, Mich., July 24, 2024 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced second quarter net income of $2,488,000, or $0.55 per share, compared to net income of $2,696,000, or $0.59 per share, for the second quarter of 2023. For the first six months of 2024, Southern earned $5,166,000 or $1.14 per share, compared with $5,701,000 or $1.25 per share, for the same six-month period one year ago.

John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “Earnings were lower due to continued net interest margin compression in this higher interest rate environment and our overhead increased as we continued our expansion.”

As of June 30, 2024, total consolidated assets grew to $1.459 billion compared to $1.415 billion on December 31, 2023. Likewise, total loans and deposits also grew during the first six months totaling $1.072 billion and $1.205 billion, respectively, on June 30, 2024.

The allowance for credit losses totaled $11,922,000, or 1.11% of loans on June 30, 2024. Net loan charge-offs totaled $11,000 for the first six months of 2024, compared to net recoveries of $3,000 for the first six months of 2023. Non-performing loans as a percentage of total loans were .08% on June 30, 2024 compared to 0.09% on December 31, 2023.

The annualized return on average assets for the six-month periods ended June 30, 2024 and June 30, 2023 was .71% and 0.86% respectively. The annualized return on average equity was 10.34% for the first six months of 2024 compared to 12.63% for the first six months of 2023. The tax equivalent net interest margin for the six-month period ending June 30, 2024 and 2023 was 2.94% and 3.25%, respectively.

Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 17 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.