Southern Michigan Bancorp, Inc. Announces First Quarter 2017 Earnings

COLDWATER, Mich., April 25, 2017 /PRNewswire/ -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) reported net income of $1,446,000, or $0.59 per share, for the quarter ended March 31, 2017. This compared to net income of $1,374,000, or $0.57 per share, for the first quarter of 2016.    

John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "We are pleased to report continued improvement in our financial performance.  First quarter net income increased 5.2% compared to the first quarter of 2016.  Loans increased $31.5 million year over year. Additional loan growth is expected throughout 2017 as approved loans in the commercial loan pipeline fund."  

Total consolidated assets at March 31, 2017 were $649.7 million compared to $641.5 million at December 31, 2016.    

No provision for loan losses was required during the first quarter of 2017.  The allowance for loan losses was $4,785,000, or 1.06% of loans at March 31, 2017.  This compared to $100,000 provision for loan losses during the first quarter of 2016.  The allowance for loan losses was $4,842,000, or 1.08% of loans at March 31, 2016.  Net charge-offs totaled $57,000 for the first quarter of 2017, compared to $191,000 during the first quarter of 2016.  Total delinquent loans decreased to 0.38% of total loans as of March 31, 2017, down from 0.52% as of December 31, 2016. 

The annualized return on average assets for the three month period ended March 31, 2017 was 0.89% compared to 0.93% for the first quarter of 2016.  The annualized return on average equity was 8.11% for the first quarter of 2017 compared to 7.96% for the first quarter of 2016.  The tax equivalent net interest margin for the three month period ending March 31, 2017 was 3.75% compared to 3.90% for the same period of 2016.

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. 

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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.

SOURCE Southern Michigan Bancorp, Inc.