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Press Release
SOUTHERN MICHIGAN BANCORP, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2007 EARNINGS
February 20, 2008
Coldwater, Michigan, February 20, 2008: Southern Michigan Bancorp, Inc. (OTCBB: SOMC.OB) reported a 3.1% increase in net income for the full year 2007 compared to 2006, marking the fourth consecutive year of record earnings. Net income for 2007 increased to $4,133,000, or $2.28 per share, compared to net income for 2006 of $4,009,000 or $2.26 per share. Return on average assets and average equity for 2007 were 1.18% and 12.72%, respectively, compared with 1.25% and 14.54%, respectively, in 2006. Net income for the three months ending December 31, 2007 was $1,004,000, down 3.2% from $1,037,000 for the same period in 2006.
Balance sheet comparisons to 2006 are affected by the acquisition of FNB Financial Corporation on December 1, 2007. The inclusion of FNB Financial increased assets by $148 million as of December 31, 2007. Total consolidated assets at December 31, 2007 were $480.2 million, compared to $329.9 million at December 31, 2006, an increase of $150.3 million or 45.6%. Shareholders’ equity during the same period increased from $28.5 million to $44.2 million, or 55.1%.
John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “We are pleased to report record earnings in a difficult market where many banks are experiencing significant declines in earnings. We continue to make good progress integrating the systems of Southern Michigan Bank & Trust and FNB Financial.”
Southern Michigan Bancorp, Inc. is a two bank holding company headquartered in Coldwater, Michigan with 19 branches within Branch, Calhoun, Cass, Hillsdale and St. Joseph Counties which provide a broad range of consumer, business and wealth management services throughout the region.
SOUTHERN MICHIGAN BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
December 31, |
|
December 31, |
||
|
|
|
|
||
|
(In thousands, except share data) |
||||
ASSETS |
|
|
|
|
|
Cash and due from banks |
$ |
14,470 |
|
$ |
9,369 |
Federal funds sold |
|
6,449 |
|
|
10,429 |
Securities available for sale |
|
77,515 |
|
|
35,602 |
Loans held for sale, net of valuation allowance of $0 in 2007 |
|
624 |
|
|
- |
Loans, net of allowance for loan losses of $5,156 (2006 - $3,302) |
|
330,822 |
|
|
249,523 |
Premises and equipment, net |
|
13,335 |
|
|
8,665 |
Accrued interest receivable |
|
3,387 |
|
|
2,506 |
Net cash surrender value of life insurance |
|
10,015 |
|
|
7,502 |
Goodwill |
|
13,422 |
|
|
620 |
Other intangible assets |
|
3,091 |
|
|
- |
Other assets |
|
7,048 |
|
|
5,675 |
TOTAL ASSETS |
$ |
480,178 |
|
$ |
329,891 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing |
$ |
57,027 |
|
$ |
42,281 |
Interest bearing |
|
342,142 |
|
|
240,228 |
Total deposits |
|
399,169 |
|
|
282,509 |
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
5,077 |
|
|
4,440 |
Securities sold under agreements to repurchase |
|
9,776 |
|
|
184 |
Other borrowings |
|
14,753 |
|
|
6,973 |
Subordinated debentures |
|
5,155 |
|
|
5,155 |
Total liabilities |
|
433,930 |
|
|
299,261 |
|
|
|
|
|
|
Common stock subject to repurchase obligation in Employee |
|
|
|
|
|
Stock Ownership Plan, shares outstanding - 92,203 in 2007 |
|
|
|
|
|
(89,122 in 2006) |
|
2,029 |
|
|
2,148 |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Preferred stock, 100,000 shares authorized; none issued or outstanding |
|
|
|
|
|
Common stock, $2.50 par value per share: |
|
|
|
|
|
Authorized--4,000,000 shares |
|
- |
|
|
- |
Issued--2,307,924 shares in 2007 (2006 – 1,769,248) |
|
|
|
|
|
Outstanding (other than ESOP shares)-2,215,721 shares in 2007 |
|
|
|
|
|
Additional paid-in capital |
|
17,087 |
|
|
5,446 |
Retained earnings |
|
21,629 |
|
|
19,021 |
Accumulated other comprehensive income/(loss), net |
|
122 |
|
|
(42 |
Unearned Employee Stock Ownership Plan shares |
|
(103 |
) |
|
(143 |
Unearned restricted stock compensation |
|
(55 |
) |
|
- |
Total shareholders' equity |
|
44,219 |
|
|
28,482 |
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
480,178 |
|
$ |
329,891 |
SOUTHERN MICHIGAN BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
2007 |
|
2006 |
|
2007 |
|
2006 |
||||
|
(In thousands, except per share amounts) |
||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
5,599 |
|
$ |
5,056 |
|
$ |
20,756 |
|
$ |
19,475 |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
535 |
|
|
265 |
|
|
1,648 |
|
|
1,018 |
Tax-exempt |
|
187 |
|
|
140 |
|
|
648 |
|
|
555 |
Other |
|
36 |
|
|
107 |
|
|
492 |
|
|
406 |
Total interest income |
|
6,357 |
|
|
5,568 |
|
|
23,544 |
|
|
21,454 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,032 |
|
|
1,731 |
|
|
7,758 |
|
|
6,083 |
Other |
|
321 |
|
|
211 |
|
|
880 |
|
|
876 |
Total interest expense |
|
2,353 |
|
|
1,942 |
|
|
8.638 |
|
|
6,959 |
Net Interest Income |
|
4,004 |
|
|
3,626 |
|
|
14.906 |
|
|
14,495 |
Provision for loan losses |
|
400 |
|
|
250 |
|
|
745 |
|
|
500 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
3,604 |
|
|
3,376 |
|
|
14,161 |
|
|
13,995 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
584 |
|
|
467 |
|
|
1,990 |
|
|
1,838 |
Trust fees |
|
235 |
|
|
188 |
|
|
791 |
|
|
709 |
Net gains on loan sales |
|
73 |
|
|
168 |
|
|
390 |
|
|
627 |
Earnings on life insurance assets |
|
85 |
|
|
95 |
|
|
286 |
|
|
272 |
Other |
|
262 |
|
|
273 |
|
|
811 |
|
|
659 |
Total non-interest income |
|
1,239 |
|
|
1,191 |
|
|
4,268 |
|
|
4,105 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
2,028 |
|
|
1,965 |
|
|
7,652 |
|
|
7,041 |
Occupancy, net |
|
255 |
|
|
155 |
|
|
954 |
|
|
766 |
Equipment |
|
272 |
|
|
209 |
|
|
839 |
|
|
756 |
Printing, postage and supplies |
|
116 |
|
|
86 |
|
|
378 |
|
|
373 |
Advertising and marketing |
|
58 |
|
|
88 |
|
|
237 |
|
|
284 |
Professional and outside services |
|
241 |
|
|
170 |
|
|
747 |
|
|
951 |
Other |
|
574 |
|
|
478 |
|
|
2,053 |
|
|
2,429 |
Total non-interest expense |
|
3,544 |
|
|
3,151 |
|
|
12,860 |
|
|
12,600 |
INCOME BEFORE INCOME TAXES |
|
1,299 |
|
|
1,416 |
|
|
5,569 |
|
|
5,500 |
Federal income taxes |
|
295 |
|
|
379 |
|
|
1,436 |
|
|
1,491 |
NET INCOME |
$ |
1,004 |
|
$ |
1,037 |
|
$ |
4,133 |
|
$ |
4,009 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
$ |
.52 |
|
$ |
.59 |
|
$ |
2.29 |
|
$ |
2.27 |
Diluted Earnings Per Common Share |
$ |
.52 |
|
$ |
.59 |
|
$ |
2.28 |
|
$ |
2.26 |
Dividends Declared Per Common Share |
$ |
.20 |
|
$ |
.20 |
|
$ |
.80 |
|
$ |
.78 |
Copyright © 2009 Southern Michigan Bank & Trust, Member FDIC, All Rights Reserved