Southern Michigan Bancorp, Inc. Announces Fourth Quarter and Full Year 2024 Earnings

Rhea-AI Summary

Southern Michigan Bancorp (SOMC) reported Q4 2024 net income of $2.65 million ($0.57 per share), up from $2.44 million ($0.54 per share) in Q4 2023. However, full-year 2024 earnings decreased to $10.40 million ($2.28 per share) from $10.91 million ($2.40 per share) in 2023.

The bank's total assets reached $1.5 billion, with loans growing to $1.116 billion and deposits reaching $1.252 billion. The allowance for credit losses was $12.78 million (1.14% of loans). Non-performing loans remained stable at 0.08% of total loans.

Key performance metrics showed some decline: return on average assets fell to 0.71% from 0.80%, return on average equity decreased to 10.07% from 11.94%, and the tax equivalent net interest margin dropped to 2.98% from 3.16% year-over-year.

Positive

• Q4 2024 net income increased to $2.65M from $2.44M YoY
• Total assets grew to $1.5B with loan portfolio reaching $1.116B
• Non-performing loans remained low at 0.08%
• Strong deposit base at $1.252B

Negative

• Full-year 2024 earnings declined to $10.40M from $10.91M YoY
• Return on average assets decreased to 0.71% from 0.80%
• Return on average equity fell to 10.07% from 11.94%
• Net interest margin declined to 2.98% from 3.16%

COLDWATER, Mich., Feb. 14, 2025 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced fourth quarter net income of $2,650,000, or $0.57 per share, compared to net income of $2,437,000, or $0.54 per share, for the fourth quarter of 2023. Southern earned $10,402,000 or $2.28 per share, for the year ended December 31, 2024, compared with $10,905,000 or $2.40 per share, for the same period one year ago.

John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “2024 was another solid year with total assets reaching approximately $1.5 billion. During the year ended December 31, 2024, total loans and deposits grew to $1.116 billion and $1.252 billion, respectively. 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.”

The allowance for credit losses totaled $12,782,000, or 1.14% of loans on December 31, 2024, compared to $11,697,000, or 1.13% on December 31, 2023. Net loan charge-offs totaled $27,000 for 2024, compared to $15,000 for 2023. Non-performing loans as a percentage of total loans were 0.08% on December 31, 2024 and December 31, 2023.

The annualized return on average assets for the years ended December 31, 2024, and December 31, 2023, was 0.71% and 0.80%, respectively. The annualized return on average equity was 10.07% for 2024 compared to 11.94% for 2023. The tax equivalent net interest margin for the years ending December 31, 2024, and 2023 was 2.98% and 3.16%, 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)
			December 31, 2024			December 31, 2023
ASSETS
Cash and cash equivalents			$	73,737		$	71,620
Federal funds sold				259			1,468
Securities available for sale, at fair value				159,320			169,740
Securities held-to-maturity, at amortized cost				60,454			61,600
Loans held-for-sale				995			169
Loans, net of allowance for credit losses of $12,782 – 2024, $11,697 - 2023				1,103,652			1,024,720
Premises and equipment, net				25,600			23,114
Net cash surrender value of life insurance				23,139			22,472
Goodwill				13,422			13,422
Other intangible assets, net				111			147
Other assets				35,866			26,323
TOTAL ASSETS			$	1,496,555		$	1,414,795
LIABILITIES
Deposits:
Non-interest bearing			$	223,583		$	226,178
Interest bearing				1,028,212			931,793
Total deposits				1,251,795			1,157,971
Securities sold under agreements to repurchase and overnight borrowings				1,560			1,738
Accrued expenses and other liabilities				18,355			15,703
Other borrowings				82,900			106,900
Subordinated debentures				34,722			34,653
Total liabilities				1,389,332			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 – 4,577,107 shares in 2024, 4,533,637 shares in 2023				11,438			11,330
Additional paid-in capital				13,438			13,126
Retained earnings				97,462			89,808
Accumulated other comprehensive loss				(15,115	)		(16,434	)
Total shareholders’ equity				107,223			97,830
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	1,496,555		$	1,414,795

SOUTHERN MICHIGAN BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Interest income:
Loans, including fees	$	16,628		$	15,308		$	64,376		$	54,887
Federal funds sold and balances with banks		999			766			4,629			3,125
Securities:
Taxable		1,376			1,635			5,889			6,291
Tax-exempt		318			304			1,222			1,265
Total interest income		19,321			18,013			76,116			65,568
Interest expense:
Deposits		7,358			6,077			29,013			20,593
Other		1,315			1,606			6,016			4,995
Total interest expense		8,673			7,683			35,029			25,588
Net interest income		10,648			10,330			41,087			39,980
Provision for credit losses		353			-			1,014			950
Net interest income after provision for credit losses		10,295			10,330			40,073			39,030
Non-interest income:
Service charges on deposit accounts		422			422			1,692			1,670
Trust fees		704			632			2,744			2,419
Net gains on loan sales		253			119			672			305
Earnings on life insurance assets		170			161			667			617
ATM and debit card fee income		462			447			1,818			1,786
Other		289			296			898			941
Total non-interest income		2,300			2,077			8,491			7,738
Non-interest expense:
Salaries and employee benefits		6,233			5,836			22,388			20,586
Occupancy, net		540			416			2,054			1,813
Equipment		425			385			1,658			1,449
Professional and outside services		581			770			2,156			2,243
Software maintenance		635			608			2,452			2,247
ATM expenses		212			201			841			803
Printing, postage, and supplies		97			118			510			437
Telecommunication expenses		73			109			313			376
Other		1,096			940			4,053			3,466
Total non-interest expense		9,892			9,383			36,425			33,420
INCOME BEFORE INCOME TAXES		2,703			3,024			12,139			13,348
Federal income tax provision		53			587			1,737			2,443
NET INCOME	$	2,650		$	2,437		$	10,402		$	10,905
Basic Earnings Per Common Share	$	0.57		$	0.54		$	2.28		$	2.40
Diluted Earnings Per Common Share		0.57			0.54			2.28			2.40
Dividends Declared Per Common Share		0.15			0.14			0.60			0.56

FAQ

What was SOMC's earnings per share for full-year 2024?

Southern Michigan Bancorp reported earnings of $2.28 per share for the full year 2024.

How did SOMC's Q4 2024 performance compare to Q4 2023?

SOMC's Q4 2024 net income increased to $2.65 million ($0.57 per share) from $2.44 million ($0.54 per share) in Q4 2023.

What was SOMC's loan portfolio size at the end of 2024?

SOMC's total loans reached $1.116 billion by December 31, 2024.

How did SOMC's asset quality metrics perform in 2024?

Asset quality remained strong with non-performing loans at 0.08% of total loans and an allowance for credit losses of 1.14%.

What was SOMC's deposit base at the end of 2024?

SOMC's total deposits reached $1.252 billion as of December 31, 2024.