Southern Michigan Bancorp, Inc. Announces Second Quarter 2025 Earnings

Core Insights - Southern Michigan Bancorp, Inc. reported a net income of $3,238,000 for Q2 2025, reflecting a 30.14% increase from $2,488,000 in Q2 2024, with earnings per share rising from $0.55 to $0.70 [1] - For the first half of 2025, net income reached $6,284,000, up 21.64% from $5,166,000 in the same period of 2024, with earnings per share increasing from $1.14 to $1.36 [1] Financial Performance - The annualized return on average assets improved to 0.81% for the first six months of 2025, compared to 0.71% for the same period in 2024 [2] - The annualized return on average equity increased to 11.31% in H1 2025 from 10.34% in H1 2024 [2] - The tax equivalent net interest margin rose to 3.20% for the six months ending June 30, 2025, compared to 2.94% for the same period in 2024 [2] Credit Quality and Loan Performance - The allowance for credit losses was $13,224,000, representing 1.11% of loans as of June 30, 2025 [3] - Net loan charge-offs for the first half of 2025 totaled $15,000, up from $11,000 in the same period of 2024 [3] - Non-performing loans as a percentage of total loans decreased to 0.01% as of June 30, 2025, down from 0.08% as of December 31, 2024 [3] Company Overview - Southern Michigan Bancorp, Inc. is a bank holding company and the parent of Southern Michigan Bank & Trust, operating 18 offices across several counties [4] Balance Sheet Highlights - Total assets increased to $1,571,263,000 as of June 30, 2025, from $1,496,555,000 at the end of 2024 [6][7] - Total deposits rose to $1,304,115,000 in June 2025, compared to $1,251,795,000 in December 2024 [7] - Total shareholders' equity increased to $113,712,000 as of June 30, 2025, from $107,223,000 at the end of 2024 [7] Income Statement Summary - Total interest income for the first half of 2025 was $40,441,000, up from $37,264,000 in the same period of 2024 [8] - Total non-interest income increased to $4,730,000 in H1 2025, compared to $4,020,000 in H1 2024 [9] - Net income before income taxes for the first half of 2025 was $7,519,000, compared to $6,299,000 in the same period of 2024 [9]