John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "First quarter 2026 earnings were solid. We achieved record levels of loans, deposits and total assets as of March 31, 2026."
The annualized return on average assets for the three-month periods ended March 31, 2026, and March 31, 2025, was 0.77% and 0.79%, respectively. The annualized return on average equity was 10.65% for the first quarter of 2026 compared to 11.11% for the first quarter of 2025. The tax equivalent net interest margin for the three-month period ending March 31, 2026 was 3.26% compared to 3.08% for the same period of 2025.
The allowance for credit losses totaled $15,268,000, or 1.17% of loans on March 31, 2026. Net loan charge-offs totaled $817,000 for the first quarter of 2026, compared to $2,000 for the first quarter of 2025. Non-performing loans as a percentage of total loans were 0.90% as of March 31, 2026, and 0.98% as of December 31, 2025.
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 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)
March 31,2026
December 31,2025
ASSETS
Cash and cash equivalents
$
87,820
$
110,376
Securities available for sale, at fair value
156,249
156,220
Securities held-to-maturity, at amortized cost
61,690
62,471
Loans held-for-sale
914
214
Loans, net of allowance for credit losses of $15,268, 2026, $15,553 - 2025
1,291,403
1,257,855
Premises and equipment, net
25,270
25,188
Net cash surrender value of life insurance
32,439
28,506
Goodwill
13,422
13,422
Other intangible assets, net
66
75
Other real estate owned
3,689
3,689
Other assets
32,709
32,461
TOTAL ASSETS
$
1,705,671
$
1,690,477
LIABILITIES
Deposits:
Non-interest bearing
$
233,583
$
224,171
Interest bearing
1,197,498
1,192,627
Total deposits
1,431,081
1,416,798
