Southern Michigan Bancorp, Inc. Announces Third Quarter 2025 Earnings

Rhea-AI Summary

Southern Michigan Bancorp (OTC Pink: SOMC) reported Q3 2025 net income of $3.02M ($0.65 per share), up 16.7% versus Q3 2024. For the nine months ended Sept 30, 2025, net income was $9.303M ($2.01 per share), a 20.0% increase year-over-year. Total assets rose to $1.665B from $1.497B at Dec 31, 2024, while loans net of ACL were $1.214B and total deposits were $1.395B at Sept 30, 2025.

Key ratios: annualized ROA (nine months) 0.79%, annualized ROE 11.00%, and tax-equivalent net interest margin 3.21% (nine months). Allowance for credit losses was $14.41M (1.17% of loans); non-performing loans were 1.03% of loans at Sept 30, 2025. The company operates 18 offices across six counties.

Positive

• Q3 net income +16.7% to $3.019M
• Nine-month net income +20.0% to $9.303M
• Total assets +11.3% from $1.496B to $1.665B
• Total deposits +11.5% from $1.252B to $1.395B
• Loans +10.0% to $1.214B (net of allowance)

Negative

• Non-performing loans rose from 0.08% (Dec 31, 2024) to 1.03% (Sept 30, 2025)
• Provision for credit losses (nine months) increased from $0.661M to $1.864M
• Non-interest expense +11.3% for the nine months to $29.527M
• Other borrowings increased from $82.9M to $97.9M

COLDWATER, Mich., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced third quarter 2025 net income of $3,019,000, or $0.65 per share, an increase of $433,000, or 16.70%, compared to net income of $2,586,000, or $0.57 per share, for the third quarter of 2024. For the first nine months of 2025, Southern earned $9,303,000, or $2.01 per share, an increase of $1,552,000, or 20.0%, compared to net income of $7,751,000, or $1.70 per share, for the same nine-month period one year ago.

The annualized return on average assets for the nine-month periods ended September 30, 2025, and September 30, 2024, was 0.79% and 0.70%, respectively. The annualized return on average equity was 11.00% for the first nine months of 2025 compared to 10.18% for the first nine months of 2024. The tax equivalent net interest margin for the nine-month period ending September 30, 2025 was 3.21% compared to 2.94% 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. Our ongoing commitment to expanding our markets and investing in our team led to record levels in loans, deposits, and total assets at quarter end.”

The allowance for credit losses totaled $14,410,000, or 1.17% of loans on September 30, 2025. Net loan charge-offs totaled $29,000 for the first nine months of 2025, compared to $20,000 for the first nine months of 2024. Non-performing loans as a percentage of total loans were 1.03% as of September 30, 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)
		September 30, 2025				December 31, 2024
ASSETS
Cash and cash equivalents		$	127,565			$	73,737
Federal funds sold			250				259
Securities available for sale, at fair value			156,020				159,320
Securities held-to-maturity, at amortized cost			63,702				60,454
Loans held-for-sale			559				995
Loans, net of allowance for credit losses of $14,410 – 2025, $12,782 - 2024			1,214,376				1,103,652
Premises and equipment, net			25,039				25,600
Net cash surrender value of life insurance			28,277				23,139
Goodwill			13,422				13,422
Other intangible assets, net			84				111
Other assets			35,803				35,866
TOTAL ASSETS		$	1,665,097			$	1,496,555
LIABILITIES
Deposits:
Non-interest bearing		$	225,670			$	223,583
Interest bearing			1,169,262				1,028,212
Total deposits			1,394,932				1,251,795
Securities sold under agreements to repurchase and overnight borrowings			1,109				1,560
Accrued expenses and other liabilities			18,604				18,355
Other borrowings			97,900				82,900
Subordinated debentures			34,774				34,722
Total liabilities			1,547,319				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 – 4,625,601 shares in 2025, 4,577,107 shares in 2024			11,560				11,438
Additional paid-in capital			13,503				13,438
Retained earnings			104,543				97,462
Accumulated other comprehensive loss			(11,828	)			(15,115	)
Total shareholders’ equity			117,778				107,223
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,665,097			$	1,496,555

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,
	2025				2024				2025				2024
Interest income:
Loans, including fees	$	18,681			$	16,444			$	53,724			$	47,748
Federal funds sold and balances with banks		726				1,313				2,492				3,630
Securities:
Taxable		1,468				1,465				4,405				4,512
Tax-exempt		394				309				1,089				904
Total interest income		21,269				19,531				61,710				56,794
Interest expense:
Deposits		7,731				7,567				22,587				21,655
Other		1,452				1,571				4,037				4,701
Total interest expense		9,183				9,138				26,624				26,356
Net interest income		12,086				10,393				35,086				30,438
Provision for credit losses		1,200				425				1,864				661
Net interest income after provision for credit losses		10,886				9,968				33,222				29,777
Non-interest income:
Service charges on deposit accounts		423				439				1,226				1,270
Trust fees		820				741				2,345				2,041
Net gains on loan sales		250				181				744				419
Earnings on life insurance assets		227				169				805				498
ATM and debit card fee income		478				465				1,406				1,356
Gain on sale of fixed assets		220				-				220				-
Other		200				177				602				608
Total non-interest income		2,618				2,172				7,348				6,192
Non-interest expense:
Salaries and employee benefits		5,992				5,528				17,985				16,154
Occupancy, net		651				519				1,837				1,515
Equipment		474				400				1,462				1,233
Professional and outside services		507				530				1,555				1,575
Software maintenance		718				626				2,067				1,817
ATM expenses		270				229				742				629
Printing, postage, and supplies		112				124				345				413
Telecommunication expenses		75				75				223				240
Other		1,180				972				3,311				2,958
Total non-interest expense		9,979				9,003				29,527				26,534
INCOME BEFORE INCOME TAXES		3,525				3,137				11,043				9,435
Federal income tax provision		506				551				1,740				1,684
NET INCOME	$	3,019			$	2,586			$	9,303			$	7,751
Basic Earnings Per Common Share	$	0.65			$	0.57			$	2.02			$	1.70
Diluted Earnings Per Common Share		0.65				0.57				2.01				1.70
Dividends Declared Per Common Share		0.16				0.15				0.48				0.45

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

FAQ

What were Southern Michigan Bancorp (SOMC) Q3 2025 earnings per share?

Q3 2025 basic and diluted EPS were $0.65 per share.

How did SOMC's nine-month 2025 net income compare to 2024?

Nine-month 2025 net income was $9.303M, a 20.0% increase versus $7.751M in 2024.

What were Southern Michigan Bancorp's total assets and deposits at Sept 30, 2025?

Total assets were $1.665B and total deposits were $1.395B as of Sept 30, 2025.

Did SOMC report changes in credit metrics for Q3 2025?

Yes. Allowance for credit losses was $14.41M (1.17% of loans) and non-performing loans were 1.03% of loans at Sept 30, 2025.

How did SOMC's net interest margin perform for the nine months ended Sept 30, 2025?

The tax-equivalent net interest margin for the nine-month period was 3.21%.

What dividend did Southern Michigan Bancorp declare in Q3 2025?

Dividends declared per common share for the quarter were $0.16.