--- title: "Southern Michigan Bancorp, Inc. Announces Fourth Quarter and Full Year 2025 Earnings | SOMC Stock News" type: "News" locale: "en" url: "https://longbridge.com/en/news/276125132.md" description: "Southern Michigan Bancorp, Inc. reported a fourth quarter 2025 net income of $2.91 million, up 9.9% from the previous year. For the full year, net income reached $12.22 million, a 17.4% increase. The annualized return on average assets rose to 0.77%, while return on average equity increased to 10.64%. The bank experienced loan growth of 14.1% and deposit growth of 13.2%. Non-performing loans were 0.98% of total loans as of December 31, 2025. The company operates 18 offices across several counties in Michigan, providing various financial services." datetime: "2026-02-17T04:40:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276125132.md) - [en](https://longbridge.com/en/news/276125132.md) - [zh-HK](https://longbridge.com/zh-HK/news/276125132.md) --- # Southern Michigan Bancorp, Inc. Announces Fourth Quarter and Full Year 2025 Earnings | SOMC Stock News COLDWATER, Mich., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced fourth quarter 2025 net income of $2,912,000, or $0.62 per share, an increase of $262,000, or 9.9%, compared to net income of $2,650,000, or $0.57 per share, for the fourth quarter of 2024. Southern earned $12,215,000, or $2.63 per share, for the year ended December 31, 2025, an increase of $1,813,000, or 17.4%, compared to net income of $10,402,000, or $2.28 per share, for the same period of 2024. 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 18,355 Other borrowings 97,900 82,900 Subordinated debentures 34,791 34,722 Total liabilities 1,568,997 1,389,332 **SHAREHOLDERS’ EQUITY** Preferred stock, 100,000 shares authorized; none issued or outstanding – – Common stock, $2.50 par value: Authorized – 10,000,000 shares Issued and outstanding – 4,623,734 shares in 2025, 4,577,107 shares in 2024 11,555 11,438 Additional paid-in capital 13,621 13,438 Retained earnings 106,716 97,462 Accumulated other comprehensive loss (10,412 ) (15,115 ) **Total shareholders’ equity** 121,480 107,223 **TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY** $ 1,690,477 $ 1,496,555 ** SOUTHERN MICHIGAN BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)** (In thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 **Interest income:** Loans, including fees $ 19,052 $ 16,628 $ 72,776 $ 64,376 Federal funds sold and balances with banks 823 999 3,314 4,629 Securities: Taxable 1,404 1,376 5,810 5,889 Tax-exempt 410 318 1,498 1,222 **Total interest income** 21,689 19,321 83,398 76,116 **Interest expense:** Deposits 7,847 7,358 30,434 29,013 Other 1,447 1,315 5,484 6,016 **Total interest expense** 9,294 8,673 35,918 35,029 Net interest income 12,395 10,648 47,480 41,087 **Provision for credit losses** 1,332 353 3,196 1,014 Net interest income after provision for credit losses 11,063 10,295 44,284 40,073 **Non-interest income:** Service charges on deposit accounts 443 422 1,669 1,692 Trust fees 876 704 3,221 2,744 Net gains on loan sales 395 253 1,139 672 Earnings on life insurance assets 229 170 833 667 Gain from life insurance – – 202 – ATM and debit card fee income 476 462 1,882 1,818 Other 230 289 831 898 **Total non-interest income** 2,649 2,300 9,777 8,491 **Non-interest expense:** Salaries and employee benefits 6,161 6,233 24,146 22,388 Occupancy, net 601 540 2,438 2,054 Equipment 553 425 2,015 1,658 Professional and outside services 575 581 2,130 2,156 Software maintenance 774 635 2,841 2,452 ATM expenses 235 212 976 841 Printing, postage, and supplies 123 97 468 510 Telecommunication expenses 91 73 314 313 Other 1,251 1,096 4,342 4,053 **Total non-interest expense** 10,364 9,892 39,670 36,425 **INCOME BEFORE INCOME TAXES** 3,348 2,703 14,391 12,139 **Federal income tax provision** 436 53 2,176 1,737 **NET INCOME** $ 2,912 $ 2,650 $ 12,215 $ 10,402 **Basic Earnings Per Common Share** $ 0.63 $ 0.57 $ 2.65 $ 2.28 **Diluted Earnings Per Common Share** 0.62 0.57 2.63 2.28 **Dividends Declared Per Common Share** 0.16 0.15 0.64 0.60 A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/832ed605-5584-4b45-b447-75d83a032fe1 CONTACT: John R. 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