The annualized return on average assets for the years ended December 31, 2025, and December 31, 2024, was 0.77% and 0.71%, respectively. The annualized return on average equity for the years ended December 31, 2025 and December 31, 2024, was 10.64% and 10.07%, respectively. The tax equivalent net interest margin for the year ended December 31, 2025 was 3.22% compared to 2.98% for the same period of 2024.
John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "We are pleased to announce another solid quarter of earnings and growth. For 2025, we achieved loan growth of 14.1%, deposit growth of 13.2% and total asset growth of 13.0%."
The allowance for credit losses totaled $15,553,000, or 1.22% of loans on December 31, 2025. Net loan charge-offs totaled $53,000 for 2025, compared to $28,000 for 2024. Non-performing loans as a percentage of total loans were 0.98% as of December 31, 2025, and 0.08% as of December 31, 2024.
Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 18 offices within Branch, Calhoun, Hillsdale, Jackson, 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 credit losses and other accounting estimates, such as the carrying value of goodwill, other real estate owned, mortgage servicing rights and the fair value of investment securities, involves judgments that are inherently forward-looking. 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, extent, 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 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)
December 31,2025
December 31,2024
ASSETS
Cash and cash equivalents
$
109,498
$
73,737
Federal funds sold
878
259
Securities available for sale, at fair value
156,220
159,320
Securities held-to-maturity, at amortized cost
62,471
60,454
Loans held-for-sale
214
995
Loans, net of allowance for credit losses of $15,553, 2025, $12,782 - 2024
1,257,855
1,103,652
Premises and equipment, net
25,188
25,600
Net cash surrender value of life insurance
28,506
23,139
Goodwill
13,422
13,422
Other intangible assets, net
75
111
Other real estate owned
3,689
-
Other assets
32,461
35,866
TOTAL ASSETS
$
1,690,477
$
1,496,555
LIABILITIES
Deposits:
Non-interest bearing
$
224,171
$
223,583
Interest bearing
1,192,627
1,028,212
Total deposits
1,416,798
1,251,795
Securities sold under agreements to repurchase and overnight borrowings
1,390
1,560
Accrued expenses and other liabilities
18,118
