Southern Michigan Bancorp, Inc. Announces Second Quarter 2026 Earnings
Rhea-AI Summary
Southern Michigan Bancorp (OTC Pink: SOMC) reported second quarter 2026 net income of $3.09 million, or $0.66 per share, down 4.7% from $3.24 million, or $0.70 per share, in Q2 2025. For the first six months of 2026, net income was $6.39 million, or $1.37 per share, up 1.7% from $6.28 million, or $1.36 per share, a year earlier.
According to Southern Michigan Bancorp, annualized return on average assets for the six months ended June 30, 2026 was 0.75% versus 0.81% in 2025, and return on equity was 10.24% versus 11.31%. The tax‑equivalent net interest margin improved to 3.35% from 3.20%. Results included a $1.69 million loss on other real estate owned in Q2 2026 and no provision for credit losses in the quarter. At June 30, 2026, total assets were $1.68 billion, loans were $1.26 billion net, deposits were $1.40 billion, and shareholders’ equity was $126.25 million. The allowance for credit losses was $15.25 million, or 1.20% of loans, and non‑performing loans were 0.92% of total loans.
Positive
- Year-to-date 2026 net income up 1.7% to $6.39 million
- Tax-equivalent net interest margin up to 3.35% from 3.20%
- Net interest income for six months up to $26.33 million from $23.00 million
- Non-interest income for six months up to $5.19 million from $4.73 million
- Shareholders’ equity increased to $126.25 million from $121.48 million
- Non-performing loans ratio declined to 0.92% from 0.98%
Negative
- Q2 2026 net income down 4.7% to $3.09 million
- Annualized ROA declined to 0.75% from 0.81% year-to-date
- Annualized ROE declined to 10.24% from 11.31% year-to-date
- Net loan charge-offs rose to $837,000 from $15,000 year-to-date
- Recorded $1.69 million loss on other real estate owned in Q2 2026
- Total deposits decreased to $1.40 billion from $1.42 billion
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COLDWATER, Mich., July 29, 2026 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced second quarter 2026 net income of
The annualized return on average assets for the six-month periods ended June 30, 2026, and June 30, 2025, was
John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “Southern delivered a solid first half of 2026, with year-to-date earnings exceeding the prior year period despite the impact of a
The allowance for credit losses totaled
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) | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 81,175 | $ | 110,126 | ||||
| Certificates of deposit in other banks | 2,250 | 250 | ||||||
| Securities available for sale, at fair value | 154,086 | 156,220 | ||||||
| Securities held-to-maturity, at amortized cost | 71,622 | 62,471 | ||||||
| Loans held-for-sale | 2,153 | 214 | ||||||
| Loans, net of allowance for credit losses of | 1,260,401 | 1,257,855 | ||||||
| Premises and equipment, net | 25,714 | 25,188 | ||||||
| Net cash surrender value of life insurance | 32,716 | 28,506 | ||||||
| Goodwill | 13,422 | 13,422 | ||||||
| Other intangible assets, net | 57 | 75 | ||||||
| Other real estate owned | 2,000 | 3,689 | ||||||
| Other assets | 36,938 | 32,461 | ||||||
| TOTAL ASSETS | $ | 1,682,534 | $ | 1,690,477 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Non-interest bearing | $ | 246,954 | $ | 224,171 | ||||
| Interest bearing | 1,152,927 | 1,192,627 | ||||||
| Total deposits | 1,399,881 | 1,416,798 | ||||||
| Securities sold under agreements to repurchase and overnight borrowings | 787 | 1,390 | ||||||
| Accrued expenses and other liabilities | 22,892 | 18,118 | ||||||
| Other borrowings | 97,900 | 97,900 | ||||||
| Subordinated debentures | 34,826 | 34,791 | ||||||
| Total liabilities | 1,556,286 | 1,568,997 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Preferred stock, 100,000 shares authorized; none issued or outstanding | ||||||||
| Common stock, | ||||||||
| Authorized - 10,000,000 shares | ||||||||
| Issued and outstanding – 4,650,974 shares in 2026, 4,623,734 shares in 2025 | 11,623 | 11,555 | ||||||
| Additional paid-in capital | 13,375 | 13,621 | ||||||
| Retained earnings | 111,526 | 106,716 | ||||||
| Accumulated other comprehensive loss | (10,276 | ) | (10,412 | ) | ||||
| Total shareholders’ equity | 126,248 | 121,480 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,682,534 | $ | 1,690,477 | ||||
Southern Michigan Bancorp, Inc.
condensed consolidated statements of income (unaudited)
| (In thousands, except per share data) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 20,143 | $ | 18,268 | $ | 39,309 | $ | 35,043 | ||||
| Federal funds sold and balances with banks | 566 | 766 | 1,530 | 1,766 | ||||||||
| Securities: | ||||||||||||
| Taxable | 1,400 | 1,530 | 2,757 | 2,937 | ||||||||
| Tax-exempt | 421 | 377 | 832 | 695 | ||||||||
| Total interest income | 22,530 | 20,941 | 44,428 | 40,441 | ||||||||
| Interest expense: | ||||||||||||
| Deposits | 7,409 | 7,553 | 15,066 | 14,856 | ||||||||
| Other | 1,617 | 1,301 | 3,035 | 2,585 | ||||||||
| Total interest expense | 9,026 | 8,854 | 18,101 | 17,441 | ||||||||
| Net interest income | 13,504 | 12,087 | 26,327 | 23,000 | ||||||||
| Provision for credit losses | - | 500 | 758 | 664 | ||||||||
| Net interest income after provision for credit losses | 13,504 | 11,587 | 25,569 | 22,336 | ||||||||
| Non-interest income: | ||||||||||||
| Service charges on deposit accounts | 436 | 397 | 872 | 803 | ||||||||
| Trust fees | 965 | 786 | 1,896 | 1,525 | ||||||||
| Net gains on loan sales | 251 | 274 | 449 | 494 | ||||||||
| Earnings on life insurance assets | 277 | 207 | 555 | 578 | ||||||||
| ATM and debit card fee income | 497 | 484 | 948 | 928 | ||||||||
| Other | 261 | 213 | 471 | 402 | ||||||||
| Total non-interest income | 2,687 | 2,361 | 5,191 | 4,730 | ||||||||
| Non-interest expense: | ||||||||||||
| Salaries and employee benefits | 6,392 | 6,220 | 12,777 | 11,993 | ||||||||
| Occupancy, net | 643 | 571 | 1,322 | 1,186 | ||||||||
| Equipment | 537 | 501 | 1,036 | 988 | ||||||||
| Professional and outside services | 645 | 596 | 1,183 | 1,048 | ||||||||
| Software maintenance | 768 | 691 | 1,508 | 1,349 | ||||||||
| ATM expenses | 251 | 236 | 483 | 472 | ||||||||
| Printing, postage, and supplies | 120 | 104 | 238 | 232 | ||||||||
| Telecommunication expenses | 86 | 76 | 159 | 148 | ||||||||
| Loss on other real estate owned | 1,689 | - | 1,689 | - | ||||||||
| Other | 1,376 | 1,101 | 2,719 | 2,131 | ||||||||
| Total non-interest expense | 12,507 | 10,096 | 23,114 | 19,547 | ||||||||
| INCOME BEFORE INCOME TAXES | 3,684 | 3,852 | 7,646 | 7,519 | ||||||||
| Federal income tax provision | 597 | 614 | 1,253 | 1,235 | ||||||||
| NET INCOME | $ | 3,087 | $ | 3,238 | $ | 6,393 | $ | 6,284 | ||||
| Basic Earnings Per Common Share | $ | 0.66 | $ | 0.70 | $ | 1.38 | $ | 1.36 | ||||
| Diluted Earnings Per Common Share | 0.66 | 0.70 | 1.37 | 1.36 | ||||||||
| Dividends Declared Per Common Share | 0.17 | 0.16 | 0.34 | 0.32 | ||||||||
CONTACT: John R. Waldron, President and CEO (517) 279-5500