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     101  0 Kommentare Southern Michigan Bancorp, Inc. Announces Third Quarter 2020 Earnings

    COLDWATER, Mich., Oct. 28, 2020 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced third quarter 2020 net income of $2,018,000, or $0.88 per share, compared to net income of $2,540,000, or $1.10 per share, for the third quarter of 2019. Southern earned $5,362,000, or $2.33 per share, for the nine-month period ended September 30, 2020 compared to $6,786,000, or $2.94 per share, for the same nine-month period a year ago.    

    Total consolidated assets at September 30, 2020 were $934.6 million. This compared to $809.7 million at December 31, 2019.   Loan totals grew from December 31, 2019 levels of $562.9 million to $625.0 million. Deposits increased to $779.8 million at September 30, 2020, an increase of $124.0 million or 18.9 percent, from $655.8 million at year end 2019.

    The allowance for loan losses was $7,424,000, or 1.19% of loans at September 30, 2020 and $5,184,000, or 0.92% of loans at December 31, 2019. Excluding SBA guaranteed PPP loans the allowance at September 30 was 1.35% of gross loans. Net charge offs totaled $12,000 for the third quarter of 2020, compared to net charge offs of $36,000 for the third quarter of 2019. For the nine-month period ending September 30, 2020, net charge offs totaled $10,000, compared to net charge offs of $146,000 for the same period of 2019. Southern provided $500,000 for loan losses during the third quarter of 2020, bringing the nine-month total to $2,250,000. For the first nine months of 2019, $150,000 of loan loss provision was recorded.

    John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, “We are encouraged that all loan customers coming out of their COVID-19 related deferrals are making payments as agreed. Our credit quality metrics remain outstanding with total non-performing assets just 0.46 percent of total assets. However, due to continued economic weakness and uncertainty surrounding COVID-19, an additional $500,000 was prudently added to the allowance for loan loss during the third quarter. We remain focused on taking appropriate actions for our customers, employees and shareholders during these tumultuous times.”

    The annualized return on average assets for the nine-month periods ended September 30, 2020 and 2019 was 0.81% and 1.16%, respectively. The annualized return on average equity was 8.20% for the first nine months of 2020 compared to 11.43% for the same period of 2019. The tax equivalent net interest margin for the nine-month periods ended September 30, 2020 and 2019 was 3.26% and 3.70%, respectively.

    Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 13 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 to 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)
      September 30,
    2020
      December 31,
    2019
     
    ASSETS            
    Cash and cash equivalents $ 76,478   $ 68,723  
    Federal funds sold   257     265  
    Securities available for sale   177,793     123,436  
    Loans held for sale   1,778     1,171  
    Loans, net of allowance for loan losses of $7,424 - 2020 ($5,184 – 2019)   617,576     557,680  
    Premises and equipment, net   13,851     14,515  
    Accrued interest receivable   5,426     3,380  
    Net cash surrender value of life insurance   15,918     15,633  
    Goodwill   13,422     13,422  
    Other intangible assets, net   264     291  
    Other assets   11,830     11,200  
    TOTAL ASSETS $ 934,593   $ 809,716  
                 
    LIABILITIES            
    Deposits :            
    Non-interest bearing $ 189,309   $ 136,430  
    Interest bearing   590,486     519,332  
    Total deposits   779,795     655,762  
               
    Securities sold under agreements to repurchase and overnight borrowings   19,047     15,401  
    Accrued expenses and other liabilities   13,221     12,553  
    Other borrowings   26,750     37,500  
    Subordinated debentures   5,155     5,155  
    Total liabilities   843,968     726,371  
                 
    SHAREHOLDERS’ EQUITY            
    Preferred stock, 100,000 shares authorized; none issued or outstanding   -     -  
    Common stock, $2.50 par value:            
    Authorized - 5,000,000 shares            
    Issued and outstanding – 2,311,307 shares in 2020 (2,314,878 shares in 2019)   5,773     5,781  
    Additional paid-in capital   15,491     15,521  
    Retained earnings   66,248     62,484  
    Accumulated other comprehensive income/(loss), net   3,453     (52 )
    Unearned Employee Stock Ownership Plan shares   (340 )   (389 )
    Total shareholders’ equity   90,625     83,345  
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 934,593   $ 809,716  
                 


     
    SOUTHERN MICHIGAN BANCORP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    (In thousands, except per share data)
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2020   2019   2020   2019
    Interest income:                      
    Loans, including fees $ 6,988   $ 7,091   $ 21,175   $ 21,114
    Federal funds sold and balances with banks   25     425     281     1,187
    Securities:                      
    Taxable   565     640     1,839     1,487
    Tax-exempt   175     120     460     515
    Total interest income   7,753     8,276     23,755     24,303
                           
    Interest expense:                      
    Deposits   936     1,349     3,225     3,797
    Other   249     342     870     963
    Total interest expense   1,185     1,691     4,095     4,760
    Net interest income   6,568     6,585     19,660     19,543
    Provision for loan losses   500     -     2,250     150
    Net interest income after provision for loan losses   6,068     6,585     17,410     19,393
                           
    Non-interest income:                      
    Service charges on deposit accounts   322     526     1,039     1,509
    Trust fees   514     525     1,535     1,541
    Net gains on loan sales   966     257     1,753     437
    Earnings on life insurance assets   96     152     285     346
    ATM and debit card fee income   421     387     1,149     1,067
    Net securities gains   -     159     -     366
    Other   142     175     406     483
    Total non-interest income   2,461     2,181     6,167     5,749
                           
    Non-interest expense:                      
    Salaries and employee benefits   3,856     3,410     10,423     10,239
    Occupancy, net   395     339     1,167     1,053
    Equipment   290     339     880     870
    Printing, postage and supplies   90     118     302     323
    Telecommunication expenses   112     108     362     303
    Professional and outside services   373     387     1,109     1,077
    Software maintenance   384     427     1,152     1,227
    ATM expenses   152     139     440     383
    Other   509     488     1,391     1,574
    Total non-interest expense   6,161     5,755     17,226     17,049
    INCOME BEFORE INCOME TAXES   2,368     3,011     6,351     8,093
    Federal income tax provision   350     471     989     1,307
    NET INCOME $ 2,018   $ 2,540   $ 5,362   $ 6,786
                           
    Basic Earnings Per Common Share $ 0.88   $ 1.10   $ 2.33   $ 2.95
    Diluted Earnings Per Common Share   0.88     1.10     2.33     2.94
    Dividends Declared Per Common Share   0.23     0.23     0.69     0.68
                           
    CONTACT: CONTACT:  John H. Castle, CEO
    (517) 279-5500



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    Southern Michigan Bancorp, Inc. Announces Third Quarter 2020 Earnings COLDWATER, Mich., Oct. 28, 2020 (GLOBE NEWSWIRE) - Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced third quarter 2020 net income of $2,018,000, or $0.88 per share, compared to net income of $2,540,000, or $1.10 per share, for the third …