Southern Michigan Bancorp, Inc. Announces Third Quarter 2017 Earnings

COLDWATER, Mich., Oct. 26, 2017 /PRNewswire/ -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced third quarter 2017 net income of $1,743,000, or $0.75 per share, compared to net income of $1,658,000, or $0.69 per share, for the third quarter of 2016.  Southern earned $4,682,000, or $1.97 per share, for the nine-month period ended September 30, 2017 compared to $4,430,000, or $1.84 per share, for the same nine-month period a year ago.   

John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, "We are pleased to report Southern's expansion into the Kalamazoo market in 2016 has resulted in record high loan, deposit and total asset footings at September 30, 2017.   Balance sheet growth has led to record earnings for the third quarter and nine month period of 2017."   

Total consolidated assets at September 30, 2017 were $712.3 million, exceeding $700.0 million for the first time in Company history.  This compared to $641.5 million at December 31, 2016.  Loans totaled $500.8 million at September 30, 2017, $51.0 million more than year end 2016.  

Growth in the loan portfolio resulted in Southern providing $175,000 for loan losses during the third quarter of 2017.  The allowance for loan losses totaled $5,013,000, or 1.00% of loans at September 30, 2017.  This compared to $100,000 of provision for loan losses for the nine-month period ending September 30, 2016. Net charge offs totaled $4,000, or annualized 0.0% of loans, for the nine-month period ending September 30, 2017 compared to net charges offs of $484,000, or 0.15% of loans annualized, for the same period of 2016.   

The annualized return on average assets for the nine-month periods ended September 30, 2017 and 2016 was 0.94% and 0.98%, respectively.  The annualized return on average equity was 8.82% for the first nine months of 2017 compared to 8.45% for the same period of 2016.  The tax equivalent net interest margin for the nine-month periods ending September 30, 2017 and 2016 was 3.79% and 3.80%, respectively.

Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust.  It operates 15 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.

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SOURCE Southern Michigan Bancorp, Inc.