Southern Michigan Bancorp, Inc. Announces Third Quarter 2025 Earnings

Core Insights - Southern Michigan Bancorp, Inc. reported a net income of $3,019,000 for Q3 2025, representing a 16.70% increase from $2,586,000 in Q3 2024 [1] - For the first nine months of 2025, net income reached $9,303,000, a 20.0% increase compared to $7,751,000 in the same period of 2024 [1] Financial Performance - The annualized return on average assets improved to 0.79% for the nine months ended September 30, 2025, up from 0.70% for the same period in 2024 [2] - The annualized return on average equity increased to 11.00% in the first nine months of 2025, compared to 10.18% in the first nine months of 2024 [2] - The tax equivalent net interest margin rose to 3.21% for the nine-month period ending September 30, 2025, compared to 2.94% for the same period in 2024 [2] Operational Highlights - The company achieved record levels in loans, deposits, and total assets by the end of the quarter, as stated by the CEO [3] - The allowance for credit losses was $14,410,000, or 1.17% of loans, as of September 30, 2025 [3] - Non-performing loans as a percentage of total loans increased to 1.03% as of September 30, 2025, from 0.08% as of December 31, 2024 [3] Balance Sheet Overview - Total assets reached $1,665,097,000 as of September 30, 2025, compared to $1,496,555,000 as of December 31, 2024 [6][7] - Total deposits increased to $1,394,932,000 in September 2025, up from $1,251,795,000 in December 2024 [7] - Shareholders' equity rose to $117,778,000 as of September 30, 2025, compared to $107,223,000 at the end of 2024 [7] Income Statement Summary - Total interest income for Q3 2025 was $21,269,000, compared to $19,531,000 in Q3 2024 [8][9] - Net interest income after provision for credit losses was $10,886,000 for Q3 2025, up from $9,968,000 in Q3 2024 [9] - Non-interest income totaled $2,618,000 for Q3 2025, compared to $2,172,000 in Q3 2024 [9]