Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for media industry professionals · Friday, March 29, 2024 · 699,674,123 Articles · 3+ Million Readers

Southern Michigan Bancorp, Inc. Announces First Quarter 2018 Earnings

COLDWATER, Mich., April 24, 2018 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink:SOMC) announced first quarter net income increased 24.6% to $1,802,000, compared to net income of $1,446,000, for the first quarter of 2017.  First quarter 2018 earnings per share increased 32.2% to $0.78 per share, compared to $0.59 per share, for the first quarter of 2017.

John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “We are pleased with our first quarter financial results.  Earnings grew 10.5% year over year excluding the benefit of tax reform.  Strong core earnings were fueled by $83.1 million of year over year loan growth and continued strong credit quality in the portfolio.”  

Total consolidated assets at March 31, 2018 were $719.2 million compared to $712.3 million at December 31, 2017.    

No provision for loan losses was required during the first quarter of 2018.  The allowance for loan losses was $4,993,000, or 0.93% of loans at March 31, 2018.  Net charge-offs totaled $16,000 for the first quarter of 2018, compared to $57,000 during the first quarter of 2017.  Total delinquent loans decreased to 0.25% of total loans as of March 31, 2018, down from 0.38% as of March 31, 2017. 

The annualized return on average assets for the three month period ended March 31, 2018 was 1.01% compared to 0.89% for the first quarter of 2017.  The annualized return on average equity was 10.26% for the first quarter of 2018 compared to 8.11% for the first quarter of 2017.  The tax equivalent net interest margin for the three month period ending March 31, 2018 was 3.79% compared to 3.75% for the same period of 2017.

Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust.  It operates 14 branches within Branch, Calhoun, Hillsdale, Kalamazoo and St. Joseph Counties, and a loan production office in Steuben County, 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 loan losses and other accounting estimates, such as the carrying value of goodwill, other real estate owned and mortgage servicing rights and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment), involves judgments that are inherently forward-looking.  There can be no assurance that future loan losses will be limited to the amounts estimated.  Our ability sell other real estate owned at its carrying value or at all, successfully implement new programs and initiatives, increase efficiencies, maintain our current level of deposits and other sources of funding, respond to declines in collateral values and credit quality, and improve profitability is not entirely within our control and is not assured.  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. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
(In thousands, except share data)
  March 31,
2018
  December 31,
2017
 
ASSETS            
Cash and cash equivalents $ 29,636   $ 17,421  
Federal funds sold   1,669     18,492  
Securities available for sale   102,062     105,184  
Loans held for sale   564     515  
Loans, net of allowance for loan losses of  $4,993 - 2018 ($5,009 - 2017)   531,625     518,438  
Premises and equipment, net   14,291     14,265  
Accrued interest receivable   3,277     3,211  
Net cash surrender value of life insurance   15,391     14,796  
Goodwill   13,422     13,422  
Other intangible assets, net   354     -  
Other assets   6,936     6,601  
TOTAL ASSETS $ 719,227   $ 712,345  
             
LIABILITIES            
Deposits:            
Non-interest bearing $ 124,948   $ 129,098  
Interest bearing   470,237     448,046  
Total deposits   595,185     577,144  
             
Securities sold under agreements to repurchase and overnight borrowings   12,629     13,950  
Accrued expenses and other liabilities   6,953     6,559  
Other borrowings   29,250     39,500  
Subordinated debentures   5,155     5,155  
Total liabilities   649,172     642,308  
             
SHAREHOLDERS’ EQUITY            
Preferred stock, 100,000 shares authorized; none issued or outstanding   -     -  
Common stock, $2.50 par value:            
Authorized - 4,000,000 shares            
Issued and outstanding – 2,320,737 shares in 2018 (2,316,779 shares in 2017)   5,796     5,787  
Additional paid-in capital   14,841     15,415  
Retained earnings   51,059     49,747  
Accumulated other comprehensive loss, net   (1,362 )   (613 )
Unearned Employee Stock Ownership Plan shares   (279 )   (299 )
Total shareholders’ equity   70,055     70,037  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 719,227   $ 712,345  
 


     
SOUTHERN MICHIGAN BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
(In thousands, except per share data)
 
  Three Months Ended March 31,  
  2018   2017  
             
Interest income:            
Loans, including fees $ 6,338   $ 5,244  
Securities:            
Taxable   327     298  
Tax-exempt   231     231  
Other   87     47   
Total interest income   6,983     5,820  
             
Interest expense:            
Deposits   591     361  
Other   311     138  
Total interest expense   902     499  
Net interest income   6,081     5,321  
Provision for loan losses   -     -  
Net interest income after provision for loan losses   6,081     5,321  
             
Non-interest income:            
Service charges on deposit accounts   382     395  
Trust fees   484     367  
Net gains on loan sales   131     138  
Earnings on life insurance assets   95     96  
ATM and debit card fee income   339     335  
Other   15     241  
Total non-interest income   1,446     1,572  
Non-interest expense:            
Salaries and employee benefits   3,157     2,889  
Occupancy, net   397     355  
Equipment   272     246  
Printing, postage and supplies   122     118  
Telecommunication expenses   73     76  
Professional and outside services   322     302  
Software maintenance   367     293  
ATM expenses   143     142  
Amortization of other intangibles   6     57  
Other   541     490  
Total non-interest expense   5,400     4,968  
INCOME BEFORE INCOME TAXES   2,127     1,925  
Federal income tax provision   325     479  
NET INCOME $ 1,802   $ 1,446  
Basic Earnings Per Common Share $ 0.78   $ 0.59  
Diluted Earnings Per Common Share $ 0.78   $ 0.59  
Dividends Declared Per Common Share $ 0.21   $ 0.20  
 
CONTACT:  
                    John H. Castle, CEO
                    (517) 279-5500

Primary Logo

Powered by EIN News


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release