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COLDWATER, Mich., April 24, 2019 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced first quarter net income increased 6.5% to $1,920,000, compared to net income of $1,802,000, for the first quarter of 2018. Earnings per share for the first quarter of 2019 increased 6.4% to $0.83 per share, compared to $0.78 per share, for the first quarter of 2018.
John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “We are pleased to report strong overall results for the first quarter of 2019. Earnings grew 6.5% year over year, and we experienced solid loan and deposit growth which resulted in record high balance sheet footings for loans, deposits and total assets.”
Total consolidated assets at March 31, 2019 were $785.8 million compared to $738.8 million at December 31, 2018.
As a result of loan growth, Southern provided $150,000 for loan losses during the first quarter of 2019, raising the allowance for loan losses to $5,264,000, or 0.96% of loans. This compared to no provision for loan losses during the first quarter of 2018. The allowance for loan losses totaled $4,993,000, or 0.93% of loans at March 31, 2018. Net charge-offs totaled $3,000 for the first quarter of 2019, compared to $16,000 during the first quarter of 2018.
The annualized return on average assets for the three-month period ended March 31, 2019 and March 31, 2018 was 1.01%. The annualized return on average equity was 10.03% for the first quarter of 2019 compared to 10.26% for the first quarter of 2018. The tax equivalent net interest margin for the three-month period ending March 31, 2019 was 3.72% compared to 3.79% for the same period of 2018.
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,” “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)|
|Cash and cash equivalents||$||87,083||$||54,741|
|Federal funds sold||172||1,065|
|Securities available for sale||98,637||101,439|
|Loans held for sale||1,001||-|
|Loans, net of allowance for loan losses of $5,264 - 2019 ($5,117 - 2018)||543,202||526,857|
|Premises and equipment, net||14,198||14,296|
|Accrued interest receivable||3,515||3,294|
|Net cash surrender value of life insurance||15,782||15,685|
|Other intangible assets, net||318||327|
|Securities sold under agreements to repurchase and overnight borrowings||13,681||15,342|
|Accrued expenses and other liabilities||9,441||8,414|
|Preferred stock, 100,000 shares authorized; none issued or outstanding||-||-|
|Common stock, $2.50 par value:|
|Authorized - 4,000,000 shares|
|Issued and outstanding – 2,321,678 shares in 2019 (2,315,505 shares in 2018)||5,798||5,783|
|Additional paid-in capital||15,135||15,246|
|Accumulated other comprehensive loss, net||(467||)||(1,301||)|
|Unearned Employee Stock Ownership Plan shares||(554||)||(173||)|
|Total shareholders’ equity||77,290||75,527|
|TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY||$||785,840||$||738,831|
SOUTHERN MICHIGAN BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
|Three Months Ended March 31,|
|201 9||201 8|
|Loans, including fees||$||6,845||$||6,338|
|Total interest income||7,836||6,983|
|Total interest expense||1,456||902|
|Net interest income||6,380||6,081|
|Provision for loan losses||150||-|
|Net interest income after provision for loan losses||6,230||6,081|
|Service charges on deposit accounts||486||382|
|Net gains on loan sales||87||131|
|Earnings on life insurance assets||97||95|
|ATM and debit card fee income||319||339|
|Total non-interest income||1,680||1,446|
|Salaries and employee benefits||3,397||3,157|
|Printing, postage and supplies||105||122|
|Professional and outside services||316||322|
|Amortization of other intangibles||9||6|
|Total non-interest expense||5,651||5,400|
|INCOME BEFORE INCOME TAXES||2,259||2,127|
|Federal income tax provision||339||325|
|Basic Earnings Per Common Share||$||0.83||$||0.78|
|Diluted Earnings Per Common Share||$||0.83||$||0.78|
|Dividends Declared Per Common Share||$||0.22||$||0.21|
CONTACT: John H. Castle, CEO (517) 279-5500