Southern Michigan Bancorp, Inc. Announces Second Quarter 2017 Earnings

COLDWATER, Mich., July 28, 2017 /PRNewswire/ -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced second quarter 2017 net income of $1,493,000, or $0.63 per share, compared to net income of $1,398,000, or $0.58 per share, for the second quarter of 2016.  Southern earned $2,939,000, or $1.22 per share, for the six-month period ended June 30, 2017 compared to $2,772,000, or $1.15 per share, for the same six-month period a year ago.   

Total consolidated assets at June 30, 2017 were $664.9 million compared to $641.5 million at December 31, 2016. 

No provision for loan losses was required during the first six months of 2017.  The allowance for loan losses was $4,897,000, or 1.00% of loans at June 30, 2017.  This compared to $100,000 provision for loan losses during the six month period ended June 30, 2016 resulting in an allowance for loan losses of $4,916,000, or 1.18% of loans.  Net recoveries totaled $112,000 for the second quarter of 2017, compared to net charge offs of $266,000 for the second quarter of 2016.  For the six month period ending June 30, 2017, net recoveries totaled $55,000, compared to net charge offs of $457,000 for the first six months of 2016.  Non-performing asset totals as of June 30, 2017 were $2.6 million, just .39% of total assets. 

The annualized return on average assets for the six-month periods ended June 30, 2017 and 2016 was 0.90% and 0.93%, respectively.  The annualized return on average equity was 8.28% for the first six months of 2017 compared to 7.99% for the same period of 2016.  The tax equivalent net interest margin for the six-month periods ending June 30, 2017 and 2016 was 3.80% and 3.83%, respectively.

John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, "We are pleased with our second quarter and year to date results.  Commercial loan growth and continued strong asset quality both positively contributed to the 6% increase in profitability for the first half of 2017."

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.