COLDWATER, Mich., April 26, 2016 /PRNewswire/ -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) reported net income of $1,374,000, or $0.57 per share, for the quarter ended March 31, 2016. This compared to net income of $1,209,000, or $0.50 per share, for the first quarter of 2015.
John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "We are pleased with our first quarter financial performance. The 13.6% increase in year over year earnings positions us well for 2016. During the first quarter of 2016 we increased our quarterly shareholder dividend to $0.18 per share, a $0.02 per share increase over the January 22, 2016 dividend of $0.16 per share."
Total consolidated assets at March 31, 2016 were $598.9 million compared to $582.8 million at December 31, 2015.
Southern provided $100,000 for loan losses during the first quarter of 2016 resulting in an allowance for loan losses of $5,182,000, or 1.23% of loans. This compared to $75,000 provision for loan losses during the first quarter of 2015. The allowance for loan losses was $5,144,000, or 1.26% of loans at March 31, 2015. Net charge-offs totaled $191,000 for the first quarter of 2016, compared to $108,000 during the first quarter of 2015.Total delinquent loans decreased to 0.60% of total loans as of March 31, 2016, down from 1.13% as of December 31, 2015.
The annualized return on average assets for the three month period ended March 31, 2016 was 0.93% compared to 0.87% for the first quarter of 2015. The annualized return on average equity was 7.96% for the first quarter of 2016 compared to 7.56% for the first quarter of 2015. The tax equivalent net interest margin for the three month period ending March 31, 2016 was 3.90% compared to 3.93% for the same period of 2015.
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.
SOUTHERN MICHIGAN BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data)
March 31, 2016
December 31, 2015
Cash and cash equivalents
Federal funds sold
Securities available for sale
Loans held for sale
Loans, net of allowance for loan losses of $5,182 - 2016 ($5,273 - 2015)
Premises and equipment, net
Accrued interest receivable
Net cash surrender value of life insurance
Other intangible assets, net
Securities sold under agreements to repurchase and overnight borrowings
Accrued expenses and other liabilities
Preferred stock, 100,000 shares authorized; none issued or outstanding
Common stock, $2.50 par value:
Authorized - 4,000,000 shares
Issued and outstanding - 2,417,561 shares in 2016 (2,406,508 shares in 2015)
Additional paid-in capital
Accumulated other comprehensive income, net
Unearned Employee Stock Ownership Plan shares
Total shareholders' equity
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
SOUTHERN MICHIGAN BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
Three Months Ended March 31,
Loans, including fees
Total interest income
Total interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Service charges on deposit accounts
Net gains on security calls and sales
Net gains on loan sales
Earnings on life insurance assets
ATM and debit card fee income
Total non-interest income
Salaries and employee benefits
Printing, postage and supplies
Professional and outside services
Loan related expenses
Loss on sale or write down of other real estate owned