COLDWATER, Mich., Sept. 20, 2016 /PRNewswire/ -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced that its board of directors approved a quarterly cash dividend of $0.20 per share payable October 21, 2016 to shareholders of record as of October 7, 2016. The $0.20 per share dividend is an increase of $0.02 per share, or 11.1%, over the July 2016 cash dividend payment. The new annualized cash dividend rate of $0.80 per share represents a dividend yield of 3.04% based on the current market price of $26.30 per share.
John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "In determining the appropriate level of shareholder dividends, Southern's board of directors considers various balance sheet and performance metrics, including recent and prospective operating performance, capital levels, payout ratios, and other company-wide risks. We are pleased that our current level of earnings supports a second increase in the dividend this year, while still maintaining a payout ratio that allows us to generate capital to support continued loan growth."
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, providing a broad range of consumer, business and wealth management services throughout the region. For more information, please visit the Southern Michigan Bank & Trust website, www.smb-t.com.
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. Although we currently expect to continue to pay a quarterly cash dividend, each future dividend will be considered and declared by the board of directors in its discretion. Whether the board of directors continues to declare dividends depends on a number of factors, including our future financial condition and profitability. Forward-looking statements are based upon current beliefs and expectations and involve substantial risks, uncertainties and assumptions ("risk factors"), which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. We undertake no obligation to update or revise our forward-looking statements to reflect developments that occur or information obtained after the date of this report.
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SOURCE Southern Michigan Bancorp, Inc.