Southern Michigan Bancorp, Inc. Announces Fourth Quarter and Full Year 2025 Earnings

Rhea-AI Summary

Southern Michigan Bancorp (OTC Pink: SOMC) reported 2025 net income of $12.215M ($2.63/share), up 17.4% from 2024. Q4 2025 net income was $2.912M ($0.62/share), up 9.9% year-over-year. Key metrics: ROAA 0.77%, ROAE 10.64%, tax-equivalent NIM 3.22%.

The company recorded loan growth of 14.1%, deposit growth of 13.2%, total asset growth of 13.0%, allowance for credit losses at 1.22% of loans, and non-performing loans of 0.98% at year-end.

Positive

• Net income +17.4% for full-year 2025 to $12.215M
• Q4 2025 net income +9.9% to $2.912M
• Loan growth +14.1% in 2025
• Deposit growth +13.2% in 2025
• Tax-equivalent NIM improved to 3.22% (2025)

Negative

• Non-performing loans rose to 0.98% from 0.08% year-over-year
• Allowance for credit losses at 1.22% of loans (Dec 31, 2025)
• Net loan charge-offs increased to $53,000 in 2025 from $28,000 in 2024

COLDWATER, Mich., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced fourth quarter 2025 net income of $2,912,000, or $0.62 per share, an increase of $262,000, or 9.9%, compared to net income of $2,650,000, or $0.57 per share, for the fourth quarter of 2024. Southern earned $12,215,000, or $2.63 per share, for the year ended December 31, 2025, an increase of $1,813,000, or 17.4%, compared to net income of $10,402,000, or $2.28 per share, for the same period of 2024.

The annualized return on average assets for the years ended December 31, 2025, and December 31, 2024, was 0.77% and 0.71%, respectively. The annualized return on average equity for the years ended December 31, 2025 and December 31, 2024, was 10.64% and 10.07%, respectively. The tax equivalent net interest margin for the year ended December 31, 2025 was 3.22% compared to 2.98% for the same period of 2024.

John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “We are pleased to announce another solid quarter of earnings and growth. For 2025, we achieved loan growth of 14.1%, deposit growth of 13.2% and total asset growth of 13.0%.”

The allowance for credit losses totaled $15,553,000, or 1.22% of loans on December 31, 2025. Net loan charge-offs totaled $53,000 for 2025, compared to $28,000 for 2024. Non-performing loans as a percentage of total loans were 0.98% as of December 31, 2025, and 0.08% as of December 31, 2024.

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 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, 2025			December 31, 2024
ASSETS
Cash and cash equivalents			$	109,498		$	73,737
Federal funds sold				878			259
Securities available for sale, at fair value				156,220			159,320
Securities held-to-maturity, at amortized cost				62,471			60,454
Loans held-for-sale				214			995
Loans, net of allowance for credit losses of $15,553 – 2025, $12,782 - 2024				1,257,855			1,103,652
Premises and equipment, net				25,188			25,600
Net cash surrender value of life insurance				28,506			23,139
Goodwill				13,422			13,422
Other intangible assets, net				75			111
Other real estate owned				3,689			-
Other assets				32,461			35,866
TOTAL ASSETS			$	1,690,477		$	1,496,555
LIABILITIES
Deposits:
Non-interest bearing			$	224,171		$	223,583
Interest bearing				1,192,627			1,028,212
Total deposits				1,416,798			1,251,795
Securities sold under agreements to repurchase and overnight borrowings				1,390			1,560
Accrued expenses and other liabilities				18,118			18,355
Other borrowings				97,900			82,900
Subordinated debentures				34,791			34,722
Total liabilities				1,568,997			1,389,332
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 – 4,623,734 shares in 2025, 4,577,107 shares in 2024				11,555			11,438
Additional paid-in capital				13,621			13,438
Retained earnings				106,716			97,462
Accumulated other comprehensive loss				(10,412	)		(15,115	)
Total shareholders’ equity				121,480			107,223
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	1,690,477		$	1,496,555

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,
		2025			2024			2025			2024
Interest income:
Loans, including fees		$	19,052		$	16,628		$	72,776		$	64,376
Federal funds sold and balances with banks			823			999			3,314			4,629
Securities:
Taxable			1,404			1,376			5,810			5,889
Tax-exempt			410			318			1,498			1,222
Total interest income			21,689			19,321			83,398			76,116
Interest expense:
Deposits			7,847			7,358			30,434			29,013
Other			1,447			1,315			5,484			6,016
Total interest expense			9,294			8,673			35,918			35,029
Net interest income			12,395			10,648			47,480			41,087
Provision for credit losses			1,332			353			3,196			1,014
Net interest income after provision for credit losses			11,063			10,295			44,284			40,073
Non-interest income:
Service charges on deposit accounts			443			422			1,669			1,692
Trust fees			876			704			3,221			2,744
Net gains on loan sales			395			253			1,139			672
Earnings on life insurance assets			229			170			833			667
Gain from life insurance			–			–			202			–
ATM and debit card fee income			476			462			1,882			1,818
Other			230			289			831			898
Total non-interest income			2,649			2,300			9,777			8,491
Non-interest expense:
Salaries and employee benefits			6,161			6,233			24,146			22,388
Occupancy, net			601			540			2,438			2,054
Equipment			553			425			2,015			1,658
Professional and outside services			575			581			2,130			2,156
Software maintenance			774			635			2,841			2,452
ATM expenses			235			212			976			841
Printing, postage, and supplies			123			97			468			510
Telecommunication expenses			91			73			314			313
Other			1,251			1,096			4,342			4,053
Total non-interest expense			10,364			9,892			39,670			36,425
INCOME BEFORE INCOME TAXES			3,348			2,703			14,391			12,139
Federal income tax provision			436			53			2,176			1,737
NET INCOME		$	2,912		$	2,650		$	12,215		$	10,402
Basic Earnings Per Common Share		$	0.63		$	0.57		$	2.65		$	2.28
Diluted Earnings Per Common Share			0.62			0.57			2.63			2.28
Dividends Declared Per Common Share			0.16			0.15			0.64			0.60

A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/832ed605-5584-4b45-b447-75d83a032fe1

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

FAQ

What were Southern Michigan Bancorp (SOMC) full-year 2025 earnings and EPS?

Southern Michigan Bancorp reported $12.215 million net income for 2025, or $2.63 per share. According to the company, this represents a 17.4% increase versus 2024, reflecting higher net income and improved margins.

How did SOMC perform in Q4 2025 compared with Q4 2024?

SOMC reported Q4 2025 net income of $2.912 million, or $0.62 per share, a 9.9% increase year-over-year. According to the company, gains were driven by stronger loan and deposit growth and margin expansion.

What loan and deposit growth did Southern Michigan Bancorp report for 2025 (SOMC)?

The company reported 14.1% loan growth and 13.2% deposit growth for 2025. According to the company, both metrics contributed to 13.0% total asset growth and supported higher net income and margins.

Did SOMC's margins improve in 2025 and what was the NIM?

Yes — the tax-equivalent net interest margin rose to 3.22% in 2025 from 2.98% in 2024. According to the company, margin expansion supported year-over-year net income growth and higher return metrics.

Are there credit-quality concerns in Southern Michigan Bancorp's 2025 results (SOMC)?

Credit metrics weakened: non-performing loans increased to 0.98% from 0.08% year-over-year, and net charge-offs rose to $53,000. According to the company, the allowance for credit losses was $15.553 million (1.22% of loans) at year-end.