Sturgis Bancorp, Inc. Reports Financial Results for Full-Year 2025

Rhea-AI Summary

Sturgis Bancorp (OTCQX:STBI) reported full-year 2025 net income of $7.46 million and EPS of $3.45, versus $2.84 million and $1.32 in 2024. Total assets reached $998.7 million and Tier 1 leverage capital was 8.11%, above well-capitalized standards. Quarterly 4Q25 net income was $2.01 million with EPS $0.93. Book value per share rose to $29.17 ($25.07 tangible). The bank reversed $383,000 to the allowance for credit losses in 2025 and paid subordinated debentures in full by year-end.

Positive

• Full-year net income rose to $7.46M from $2.84M (2025)
• Full-year EPS increased to $3.45 from $1.32 (2025)
• Net interest income after provision up 40.65% to $32.96M (2025)
• Tier 1 leverage capital at 8.11%, above well-capitalized requirements
• Book value per share increased to $29.17 (4Q25)
• Subordinated debentures paid in full as of 4Q25

Negative

• Quarterly net income fell 14.8% QoQ to $2.01M in 4Q25
• Quarterly EPS declined 14.7% QoQ to $0.93 in 4Q25
• Noninterest expenses rose 14.35% QoQ to $9.01M in 4Q25

STURGIS, MI / ACCESS Newswire / February 26, 2026 / Sturgis Bancorp, Inc. (OTCQX:STBI) today reported for the fourth quarter and full-year 2025:

Tier 1 Capital

The Bank maintained strong capital ratios, exceeding well capitalized requirements, with Tier 1 leverage capital at 8.11%.

Key Quarterly Highlights

• Net income was $2.0 million.

• Earnings per share of $0.93.

• Paid dividend of $0.17 per share.

• Total assets remained at $999 million.

• Deposits decreased to $885 million.

Key Full-Year Highlights

• Net income was $7.5 million.

• Earnings per share of $3.45.

• Quarterly dividends totaled $0.68 per share for the year.

• Total assets increased by $42.3 million during the year.

• Deposits increased by $70.8 million during the year.

From Jason J. Hyska, Sturgis Bancorp, Inc. Chief Executive Officer

"The Bank ended 2025 on a very positive note. Overall, non-brokered deposit growth of $118 million with reduced reliance on wholesale funds helped the Bank to increase tax equivalent net interest margin by 37 basis points and grow core relationships across our footprint. This resulted in a Bank ROA of 0.92%. Relationship banking is still the core tenant of the Bank's Strategic Plan, and our employees remain focused on growing core relationships into 2026. The Bank is looking forward to 2026 as we continue to develop our newer markets."

Quarterly Income Statement Highlights

• Net income for the quarter (4Q25) was $2.0 million, decreasing from last quarter's (3Q25) $2.4 million net income, while equaling the net income of $2.0 million for the same quarter of the prior year (4Q24). The decrease from 3Q25 was substantially due to increases in noninterest expenses.

• Earnings per share were $0.93 for 4Q25, $1.09 for 3Q25, and $0.91 for 4Q24.

• Net interest income after the provision for credit losses was $8.8 million during 4Q25, a 4.93% increase from 3Q25's $8.4 million. This also is a 16.05% increase from 4Q24's $7.6 million. The change from the same quarter a year ago was primarily due to:

  • Interest and dividend income of $12.7 million in 4Q25, compared to $12.1 million in 4Q24; and

  • Interest expense of $4.2 million in 4Q25, compared to $4.7 million in 4Q24.

• Tax equivalent net interest margin increased to 3.66% for 4Q25 from 3.54% for 3Q25, and from 3.33% for 4Q24.

• During 4Q25, there was a reversal of the allowance for credit losses of $279,000, due to annual historic loss updates, qualitative factor adjustments, and lower specific reserves. There were also reversals of the allowance of $62,000 and $216,000 during 3Q25 and 4Q24, respectively.

• Noninterest income totaled $2.7 million during 4Q25, a 10.54% increase from 3Q25's $2.4 million, and a 12.49% increase from 4Q24's $2.4 million. These fluctuations were primarily due to:

  • Investment brokerage commission income of $829,000; $759,000; and $697,000 for 4Q25, 3Q25, and 4Q24, respectively; and

  • Other income of $406,000; $23,000; and $16,000 for 4Q25, 3Q25, and 4Q24, respectively.

    • $310,000 of the 4Q25 other income were the gains recognized from selling an office building and a rental property.

• Noninterest expenses totaled $9.0 million during 4Q25, a 14.35% increase from 3Q25's $7.9 million, and a 17.40% increase from 4Q24's $7.7 million. These fluctuations were primarily due to:

  • Compensation and benefits in 4Q25 were $5.1 million, compared to $4.9 million for 3Q25, and $4.2 million for 4Q24. Most of this difference was due to typical wage increases along with a year-end one-time bonus for achieving certain strategic goals.

Full-Year Income Statement Highlights

• Net income for 2025 was $7.5 million, compared to $2.8 million for 2024, as further discussed below.

• Earnings per share were $3.45 for 2025 and $1.32 for 2024.

• Net interest income after the provision for credit losses was $33.0 million for 2025, a 40.65% increase from 2024's $23.4 million. This increase was due to:

  • Interest and fee income on loans increased $2.2 million to $44.8 million in 2025 compared to $42.5 million in 2024;

  • Interest expense on borrowed funds decreased $1.7 million to $1.9 million in 2025 from $3.6 million in 2024; and

  • During 2025, $383,000 was booked as a reversal to the allowance for credit losses, compared to $4.6 million provided to the allowance for credit losses for 2024. This decrease was primarily due to:

    • A one-time charge-off of one customer's loans totaling $5.5 million occurred in 1Q24.

• Noninterest income totaled $9.5 million for 2025, compared to $10.1 million for 2024. This is a 5.97% decrease. This decrease was primarily due to:

  • Recording $1.1 million in 2024 for gain on termination of interest rate swaps, while having no such gain in 2025; and

  • Increases in other areas for 2025 compared to 2024 were $400,000 for investment brokerage commission income and $200,000 for other income items.

• Noninterest expenses totaled $33.2 million in 2025, compared to $30.4 million in 2024. This is a 9.52% increase. This increase was primarily comprised of:

  • Compensation and benefits expense of $19.8 million in 2025, compared to $17.7 million in 2024; and

  • Occupancy and equipment expense of $4.7 million in 2025, compared to $4.3 million in 2024.

Balance Sheet Highlights

• Total assets increased to $999 million as of the end of 4Q25, nearly identical to the end of 3Q25's $999 million, and a 4.42% increase from the end of 4Q24's $956 million. This net increase from the prior year was comprised of:

  • Cash and cash equivalents ended 4Q25 at $41.4 million, compared to $46.0 million as of the end of 3Q25, and $20.8 million as of the end of 4Q24.

  • Debt securities - available-for-sale increased to $85.6 million as of the end of 4Q25, compared to $77.1 million as of the end of 3Q25, and $77.1 million as of the end of 4Q24.

  • Net loans ended 4Q25 at $780 million, compared to $781 million as of the end of 3Q25, and $768 million as of the end of 4Q24.

  • Real estate owned ended 4Q25 at $804,000, compared to $485,000 as of the end of 3Q25, and $152,000 as of the end of 4Q24.

• Total deposits as of the end of 4Q25 were $885 million, compared to $894 million as of the end of 3Q25, and $814 million as of the end of 4Q24. These net increases were comprised of:

  • Noninterest-bearing deposits increased to $166 million as of the end of 4Q25, from $163 million as of the end of 3Q25, and $158 million as of the end of 4Q24; and

  • Interest-bearing deposits decreased to $719 million as of the end of 4Q25, from $732 million as of the end of 3Q25, while increasing from $656 million as of the end of 4Q24.

    • Due to growth in other deposit areas, brokered certificates of deposit have been reduced by $47.0 million since 2024.

• Borrowed funds increased to $30.7 million as of the end of 4Q25, from $15.7 million as of the end of 3Q25, while decreasing from $61.1 million as of the end of 4Q24.

• Subordinated debentures were paid in full as of the end of 4Q25 after having balances of $15.0 and $14.9 million as of the end of 3Q25 and 4Q24, respectively.

• Total equity at the end of 4Q25 was $63.2 million, compared to $61.3 million as of the end of 3Q25, and $55.4 million as of the end of 4Q24.

• Book value per share was $29.17 ($25.07 tangible) at the end of 4Q25, compared to $28.29 ($24.15 tangible) as of the end of 3Q25, and $25.66 ($21.51 tangible) as of the end of 4Q24.

About Sturgis Bancorp, Inc.

Sturgis Bancorp, Inc. is the holding company for Sturgis Bank & Trust Company (the Bank), and its subsidiaries: Oakleaf Financial Services, Ayres/Oak Insurance, and Oak Title Services. The Bank provides a full array of trust, commercial, and consumer banking services from banking centers in: Sturgis, Bangor, Bronson, Centreville, Climax, Colon, Marshall, Niles, Portage, South Haven, St. Joseph, Three Rivers, and White Pigeon, Michigan. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Ayres/Oak Insurance offers various competitive commercial and consumer insurance products. Oak Title Services offers commercial and consumer title insurance services.

Forward-Looking Statements

This release contains statements that constitute forward-looking statements. These statements appear in several places in this release and include statements regarding intent, belief, outlook, objectives, efforts, estimates, or expectations of Sturgis Bancorp, Inc. (Bancorp), primarily with respect to future events and the future financial performance of Bancorp. Any such forward-looking statements are not guarantees of future events or performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements. Factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement include, but are not limited to, changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; government and regulatory policy changes; the outcome of any pending or future litigation and contingencies; trends in consumer behavior and ability to repay loans; and changes in the world, national, and local economies. Bancorp undertakes no obligation to update, amend, or clarify forward-looking statements as a result of new information, future events, or otherwise. The numbers presented herein are unaudited.

For additional information, visit our website at www.sturgis.bank.

Sturgis Bancorp, Inc. Contacts

• Jason J. Hyska, CEO & President, or Brian P. Hoggatt, CFO - (269) 651-9345

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Dollar amounts in thousands except per share data)

		Three Months Ended
		Dec 31,				Sep 30,				Dec 31,
		2025				2025				2024
		4Q25				3Q25				4Q24
Interest and dividend income
Loans, including fees		$	11,369			$	11,258			$	10,981
Taxable securities			1,074				1,174				827
Tax-exempt securities			38				38				38
Dividend income on securities			208				210				224
Total interest and dividend income			12,689				12,680				12,070
Interest expense
Deposits			3,803				4,006				3,956
Borrowed funds			384				368				763
Total interest expense			4,187				4,374				4,719
Net interest income			8,502				8,306				7,351
Credit loss expense (reversal)			(279	)			(62	)			(216	)
Net interest income, after credit loss expense (reversal)			8,781				8,368				7,567
Noninterest income
Service charges on deposits and other fees			339				352				337
Interchange income			364				402				336
Investment brokerage commission income			829				759				697
Mortgage banking activities			392				463				262
Trust fee income			122				93				115
Earnings on cash value of bank-owned life insurance			116				109				541
Gain on sale of real estate owned, net			-				31				2
Proportionate net income from unconsolidated subsidiaries			130				208				92
Other income			406				23				16
Total noninterest income			2,698				2,440				2,398
Noninterest expenses
Compensation and benefits			5,134				4,880				4,212
Occupancy and equipment			1,291				1,180				1,103
Interchange expenses			219				207				203
Data processing			345				361				425
Professional services			192				122				165
Advertising			308				158				190
FDIC premiums			209				170				187
Other expenses			1,307				796				1,185
Total noninterest expenses			9,005				7,874				7,670
Income before income taxes			2,474				2,934				2,295
Income tax expense			464				575				330
Net income		$	2,010			$	2,359			$	1,965
Earnings per share		$	0.93			$	1.09			$	0.91
Dividends per share		$	0.17			$	0.17			$	0.17

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Dollar amounts in thousands except per share data)

		Full-Year Ended
		Dec 31,				Dec 31,
		2025				2024
Interest and dividend income
Loans, including fees		$	44,779			$	42,534
Taxable securities			3,886				3,298
Tax-exempt securities			153				177
Dividend income on securities			839				733
Total interest and dividend income			49,657				46,742
Interest expense
Deposits			15,178				15,170
Borrowed funds			1,902				3,553
Total interest expense			17,080				18,723
Net interest income			32,577				28,019
Credit loss expense (reversal)			(383	)			4,585
Net interest income, after credit loss expense (reversal)			32,960				23,434
Noninterest income
Service charges on deposits and other fees			1,344				1,372
Interchange income			1,447				1,369
Investment brokerage commission income			2,988				2,578
Mortgage banking activities			1,616				1,823
Trust fee income			448				465
Earnings on cash value of bank-owned life insurance			437				867
Gain on sale of real estate owned, net			32				77
Gain on termination of interest rate swap			-				1,070
Proportionate net income from unconsolidated subsidiaries			550				365
Other income			614				92
Total noninterest income			9,476				10,078
Noninterest expenses
Compensation and benefits			19,755				17,680
Occupancy and equipment			4,740				4,260
Interchange expenses			806				708
Data processing			1,433				1,319
Professional services			636				580
Advertising			939				827
FDIC premiums			714				741
Other expenses			4,219				4,239
Total noninterest expenses			33,242				30,354
Income before income taxes			9,194				3,158
Income tax expense			1,737				323
Net income		$	7,457			$	2,835
Earnings per share		$	3.45			$	1.32
Dividends per share		$	0.68			$	0.68

CONSOLIDATED BALANCE SHEETS
(Unaudited - Dollar amounts in thousands except per share data)

		Dec 31,				Sep 30,				Dec 31,
		2025				2025				2024
		4Q25				3Q25				4Q24
ASSETS
Cash and cash equivalents
Cash and due from financial institutions		$	10,645			$	12,289			$	10,628
Other short-term investments			30,753				33,703				10,174
Total cash and cash equivalents			41,398				45,992				20,802
Debt securities available-for-sale			85,605				77,111				77,072
Debt securities held-to-maturity			18,256				18,490				19,442
Federal Home Loan Bank stock			9,786				9,786				9,786
Loans held for sale			4,603				5,784				3,658
Loans, net of allowance for credit losses of $9,012; $9,271; and $9,289 at 4Q25; 3Q25; and 4Q24, respectively			779,923				781,236				768,430
Mortgage servicing rights			3,055				3,125				3,121
Real estate owned, net			804				485				152
Premises and equipment, net			18,661				19,485				18,708
Goodwill			5,834				5,834				5,834
Bank-owned life insurance			15,839				15,723				15,402
Accrued interest receivable			3,428				3,619				3,405
Other assets			11,472				12,285				10,577
Total assets		$	998,664			$	998,955			$	956,389
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing		$	166,052			$	162,894			$	157,782
Interest-bearing			718,602				731,570				656,077
Total deposits			884,654				894,464				813,859
Federal Home Loan Bank advances and other borrowings			30,681				15,680				61,100
Subordinated debentures			-				14,980				14,919
Accrued interest payable			1,850				1,912				2,600
Other liabilities			18,223				10,644				8,502
Total liabilities			935,408				937,680				900,980
Stockholders' equity
Common stock - $1 par value: authorized - 9,000,000 shares;
issued and outstanding - 2,168,491 shares at 4Q25;
2,165,691 shares at 3Q25; and 2,159,191 shares at 4Q24			2,168				2,166				2,159
Additional paid-in capital			8,867				8,817				8,699
Retained earnings			59,385				57,743				53,398
Accumulated other comprehensive income (loss)			(7,164	)			(7,451	)			(8,847	)
Total stockholders' equity			63,256				61,275				55,409
Total liabilities and stockholders' equity		$	998,664			$	998,955			$	956,389

SOURCE: Sturgis Bancorp, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Sturgis Bancorp (STBI) full-year 2025 earnings and EPS?

Sturgis Bancorp reported full-year 2025 net income of $7.46 million and EPS of $3.45. According to the company, results reflect higher net interest income and a reversal to the allowance for credit losses versus 2024.

How did Sturgis Bancorp (STBI) perform in 4Q25 compared to 3Q25?

4Q25 net income was $2.01 million and EPS $0.93, down versus 3Q25. According to the company, increases in noninterest expenses and seasonal items drove the quarter-over-quarter decline.

What drove the 40.65% increase in net interest income for STBI in 2025?

The increase resulted from higher loan interest and lower borrowed-fund costs, producing $32.96 million after credit loss reversals. According to the company, loan yields and reduced interest on borrowed funds were key drivers.

Did Sturgis Bancorp (STBI) change its capital or debt position in 2025?

Yes. Tier 1 leverage capital was 8.11% and subordinated debentures were paid in full by year-end. According to the company, these moves strengthened capital structure and reduced long-term obligations.

What happened to Sturgis Bancorp (STBI) noninterest expenses in 4Q25?

Noninterest expenses rose to $9.01 million in 4Q25, a 14.35% increase QoQ. According to the company, higher compensation, year-end bonuses, and other operating costs drove the increase.

How did deposits and assets change for Sturgis Bancorp (STBI) in 2025?

Total assets reached $998.7 million and total deposits were $884.7 million at 4Q25. According to the company, deposit composition shifted with reduced brokered CDs and growth in core non-brokered deposits.