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

COLDWATER, Mich., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced third quarter 2022 net income of $3,613,000, or $0.79 per share, compared to net income of $3,138,000, or $0.69 per share, for the third quarter of 2021. Southern earned $9,907,000, or $2.18 per share, for the nine-month period ending September 30, 2022 compared to $9,235,000, or $2.02 per share, for the same nine-month period a year ago.

Consolidated assets at September 30, 2022 totaled $1.243 billion compared to $1.161 billion at December 31, 2021.   Loan totals grew 11.1%, from December 31, 2021 levels of $741.4 million to $823.4 million. Deposits totaled $1.092 billion at September 30, 2022, an increase of $117.6 million or 12.1%, 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 our third quarter 2022 results which reflect continued loan growth, strong asset quality and record profitability. Net income for the third quarter increased 15.1% over third quarter 2021; loans totaled $823.4 million at the end of the third quarter, growing $90.1 million, or 12.3% compared to September 30, 2021; and loan delinquencies total just 0.16% of gross loans as of September 30, 2022. Additional loan growth is expected during the fourth quarter of 2022 as we continue to expand in the Jackson market and approved loans in the commercial pipeline fund.”

The allowance for loan losses totaled $9,331,000, or 1.13% of loans at September 30, 2022. Net loan recoveries totaled $11,000 for the first nine months of 2022, compared to net loan recoveries of $40,000 during the first nine months of 2021. No provision for loan loss expense was required during the first nine months of 2022. This contrasts with $1,050,000 of provision for loan loss expense during the first nine months of 2021.

The annualized return on average assets for the nine-month periods ending September 30, 2022 and 2021 was 1.09% and 1.13%, respectively. The annualized return on average equity was 15.14% for the first nine months of 2022 compared to 13.02% for the first nine months of 2021. The tax equivalent net interest margins for the nine-month periods ending September 30, 2022 and 2021 was 3.25% and 3.27%, 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, and a loan production office Jackson 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,” “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, 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.
Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except share data)

Southern Michigan Bancorp, Inc.
condensed consolidated statements of income (unaudited )
(In thousands, except per share data)

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