COLDWATER, Mich., July 26, 2016 /PRNewswire/ -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced second quarter 2016 net income of $1,398,000, or $0.58 per share, compared to net income of $1,880,000, or $0.79 per share, for the second quarter of 2015. Southern earned $2,772,000, or $1.15 per share, for the six-month period ended June 30, 2016 compared to $3,089,000, or $1.29 per share, for the same six-month period a year ago.
During the second quarter of 2015 Southern recorded $555,000 of tax free income from death benefits on bank owned life insurance policies. Excluding this income, net income for the three and six-month periods ended June 30, 2015 totaled $1,325,000 and $2,534,000, respectively. Comparing results for the periods without the life insurance proceeds, our 2016 earnings increased 5.51% and 9.39% over results from the same three and six month periods in 2015.
Total consolidated assets at June 30, 2016 were $598.9 million compared to $582.8 million at December 31, 2015.
Southern provided $100,000 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. This compared to $150,000 of provision for loan losses expense for the same six-month period of 2015. Net charge offs totaled $457,000 or annualized 0.22% of loans for the six-month period ending June 30, 2016. Non-performing asset totals as of June 30, 2016 were $3.4 million, a decrease of $3.1 million, or 48%, from $6.5 million as of June 30, 2015.
The annualized return on average assets for the six-month periods ended June 30, 2016 and 2015 was 0.93% and 1.11%, respectively. The annualized return on average equity was 7.99% for the first six months of 2016 compared to 10.03% for the same period of 2015. The tax equivalent net interest margin for the six-month periods ending June 30, 2016 and 2015 was 3.83% and 3.92%, respectively.
John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, "We continue to be pleased with our financial results. We remain committed to optimum performance for our shareholders."
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. Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)
June 30, 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
$4,916 - 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 – 2,405,412 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. Condensed Consolidated Statements Of Income (Unaudited)
(In thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
Loans, including fees
Federal funds sold and
balances with banks
Total interest income
Total interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses