Southern Michigan Bancorp, Inc. Announces Third Quarter 2024 Earnings
Rhea-AI Summary
Southern Michigan Bancorp (SOMC) reported Q3 2024 net income of $2,586,000 ($0.57 per share), down from $2,767,000 ($0.61 per share) in Q3 2023. For the first nine months of 2024, earnings were $7,751,000 ($1.70 per share) compared to $8,468,000 ($1.86 per share) in 2023. The bank surpassed $1.5 billion in total assets, with loans at $1.084 billion and deposits at $1.266 billion. The allowance for credit losses was $12,363,000 (1.14% of loans). Return on average assets decreased to 0.70% from 0.84%, while return on equity declined to 10.18% from 12.42%. Net interest margin dropped to 2.94% from 3.18%.
Positive
- Total assets exceeded $1.5 billion milestone
- Strong asset quality with low non-performing loans ratio of 0.08%
- Minimal net loan charge-offs of $20,000 for first nine months
Negative
- Q3 2024 EPS decreased to $0.57 from $0.61 YoY
- Nine-month net income declined 8.5% YoY to $7,751,000
- Net interest margin contracted to 2.94% from 3.18%
- Return on equity decreased to 10.18% from 12.42%
News Market Reaction – SOMC
In the trading session that priced this news, SOMC gained 0.57%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
COLDWATER, Mich., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced third quarter net income of
John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “For the first time, our bank has surpassed
As of September 30, 2024, total loans and deposits grew during the first nine months totaling
The allowance for credit losses totaled
The annualized return on average assets for the nine-month periods ended September 30, 2024 and September 30, 2023 was
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) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 121,022 | $ | 71,620 | ||||
| Federal funds sold | 264 | 1,468 | ||||||
| Securities available for sale, at fair value | 160,771 | 169,740 | ||||||
| Securities held-to-maturity, at amortized cost | 60,129 | 61,600 | ||||||
| Loans held-for-sale | 871 | 169 | ||||||
| Loans, net of allowance for credit losses of | 1,071,234 | 1,024,720 | ||||||
| Premises and equipment, net | 23,406 | 23,114 | ||||||
| Net cash surrender value of life insurance | 22,970 | 22,472 | ||||||
| Goodwill | 13,422 | 13,422 | ||||||
| Other intangible assets, net | 120 | 147 | ||||||
| Other assets | 36,314 | 26,323 | ||||||
| TOTAL ASSETS | $ | 1,510,523 | $ | 1,414,795 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Non-interest bearing | $ | 219,072 | $ | 226,178 | ||||
| Interest bearing | 1,047,024 | 931,793 | ||||||
| Total deposits | 1,266,096 | 1,157,971 | ||||||
| Securities sold under agreements to repurchase and overnight borrowings | 1,688 | 1,738 | ||||||
| Accrued expenses and other liabilities | 17,996 | 15,703 | ||||||
| Other borrowings | 82,900 | 106,900 | ||||||
| Subordinated debentures | 34,705 | 34,653 | ||||||
| Total liabilities | 1,403,385 | 1,316,965 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Preferred stock, 100,000 shares authorized; none issued or outstanding | - | - | ||||||
| Common stock, | ||||||||
| Authorized - 10,000,000 shares | ||||||||
| Issued and outstanding – 4,563,995 shares in 2024, 4,533,637 shares in 2023 | 11,406 | 11,330 | ||||||
| Additional paid-in capital | 13,225 | 13,126 | ||||||
| Retained earnings | 95,498 | 89,808 | ||||||
| Accumulated other comprehensive loss | (12,991 | ) | (16,434 | ) | ||||
| Total shareholders’ equity | 107,138 | 97,830 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,510,523 | $ | 1,414,795 | ||||
| Southern Michigan Bancorp, Inc. condensed consolidated statements of income (unaudited) | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 16,444 | $ | 14,563 | $ | 47,748 | $ | 39,579 | ||||
| Federal funds sold and balances with banks | 1,313 | 786 | 3,630 | 2,360 | ||||||||
| Securities: | ||||||||||||
| Taxable | 1,465 | 1,567 | 4,512 | 4,655 | ||||||||
| Tax-exempt | 309 | 315 | 904 | 961 | ||||||||
| Total interest income | 19,531 | 17,231 | 56,794 | 47,555 | ||||||||
| Interest expense: | ||||||||||||
| Deposits | 7,567 | 5,777 | 21,655 | 14,516 | ||||||||
| Other | 1,571 | 1,519 | 4,701 | 3,389 | ||||||||
| Total interest expense | 9,138 | 7,296 | 26,356 | 17,905 | ||||||||
| Net interest income | 10,393 | 9,935 | 30,438 | 29,650 | ||||||||
| Provision for credit losses | 425 | 25 | 661 | 950 | ||||||||
| Net interest income after provision for credit losses | 9,968 | 9,910 | 29,777 | 28,700 | ||||||||
| Non-interest income: | ||||||||||||
| Service charges on deposit accounts | 439 | 422 | 1,270 | 1,248 | ||||||||
| Trust fees | 741 | 629 | 2,041 | 1,787 | ||||||||
| Net gains on loan sales | 181 | 71 | 419 | 186 | ||||||||
| Earnings on life insurance assets | 169 | 157 | 498 | 456 | ||||||||
| ATM and debit card fee income | 465 | 452 | 1,356 | 1,339 | ||||||||
| Other | 177 | 197 | 608 | 644 | ||||||||
| Total non-interest income | 2,172 | 1,928 | 6,192 | 5,660 | ||||||||
| Non-interest expense: | ||||||||||||
| Salaries and employee benefits | 5,528 | 5,356 | 16,154 | 14,751 | ||||||||
| Occupancy, net | 519 | 429 | 1,515 | 1,397 | ||||||||
| Equipment | 400 | 404 | 1,233 | 1,063 | ||||||||
| Professional and outside services | 530 | 443 | 1,575 | 1,473 | ||||||||
| Software maintenance | 626 | 568 | 1,817 | 1,639 | ||||||||
| ATM expenses | 229 | 195 | 629 | 602 | ||||||||
| Printing, postage, and supplies | 124 | 97 | 413 | 318 | ||||||||
| Telecommunication expenses | 75 | 88 | 240 | 268 | ||||||||
| Other | 972 | 869 | 2,958 | 2,525 | ||||||||
| Total non-interest expense | 9,003 | 8,449 | 26,534 | 24,036 | ||||||||
| INCOME BEFORE INCOME TAXES | 3,137 | 3,389 | 9,435 | 10,324 | ||||||||
| Federal income tax provision | 551 | 622 | 1,684 | 1,856 | ||||||||
| NET INCOME | $ | 2,586 | $ | 2,767 | $ | 7,751 | $ | 8,468 | ||||
| Basic Earnings Per Common Share | $ | 0.57 | $ | 0.61 | $ | 1.70 | $ | 1.86 | ||||
| Diluted Earnings Per Common Share | 0.57 | 0.61 | 1.70 | 1.86 | ||||||||
| Dividends Declared Per Common Share | 0.15 | 0.14 | 0.45 | 0.42 | ||||||||
