SOMC - Southern Michigan Bancorp Inc. Announces Second Quarter 2022 Earnings

COLDWATER, Mich., July 27, 2022 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced second quarter 2022 net income of $3,361,000, or $0.74 per share, compared to net income of $3,009,000, or $0.66 per share, for the second quarter of 2021. Southern earned $6,294,000, or $1.39 per share, for the six-month period ending June 30, 2022 compared to $6,097,000, or $1.33 per share, for the same six-month period a year ago.

Total consolidated assets at June 30, 2022 totaled $1.183 billion compared to $1.161 billion at December 31, 2021. Loan totals grew 6.5%, from December 31, 2021 levels of $741.4 million to $789.6 million. Deposits totaled $1,030.9 million at June 30, 2022, an increase of $56.5 million or 5.8%, as compared to year end 2021.

John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, “We are pleased to report record earnings for both the second quarter and six-month period of 2022. Positive contributions to income came from growth in the loan portfolio, continued strong credit quality, as well as increased interest rates. Additional loan growth is expected during the second half of 2022 as we look to expand into the Jackson market and approved loans in the commercial pipeline fund.”

The allowance for loan losses totaled $9,317,000, or 1.18% of loans at June 30, 2022. Net loan losses totaled $3,000 for the first six months of 2022, compared to net loan recoveries of $40,000 during the first six months of 2021. Asset quality remains strong with loan delinquencies totaling just 0.17% of gross loans on June 30, 2022. No provision for loan loss expense was required during the first six months of 2022. This contrasts with $400,000 of provision for loan loss expense during the first six months of 2021.

The annualized return on average assets for the six-month periods ending June 30, 2022 and 2021 was 1.04% and 1.13%, respectively. The annualized return on average equity was 14.03% for the first six months of 2022 compared to 13.12% for the first six months of 2021. The tax equivalent net interest margins for the six-month periods ending June 30, 2022 and 2021 was 3.13% and 3.16%, respectively.

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, 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,” “anticipated,” 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.

CONTACT: John H. Castle, CEO(517) 279-5500