SMB&T Press Release June 17, 2008

Press Release

Southern Michigan Ranked in Top 200 by U.S. Banker for 3 – Year Average ROE

June 17, 2008

Coldwater, Michigan June 17, 2008—Southern Michigan Bancorp, Inc. was ranked among the top 200 publicly traded community banks in the United States, according to SNL Financial data cited in the June 2008 edition of US Banker Magazine. US Banker, a leading financial trade publication, ranked more than 1,100 community banks nationwide by their three-year average return on equity (ROE) as of December 31, 2007. Of the top 200 community banks identified in the US Banker article, Southern ranks 138th with a 14.02 percent three year average ROE.

The US Banker article “In Careful Pursuit of Growth” states that “They avoided the enticements of subprime mortgages. They controlled expenses and capitalizations. As a result, community banks on this year’s Top 200 list, based on three-year average return on equity, maintained remarkably high return on earnings, despite a financial-market tailspin in the second half of 2007.”

“We are proud that, for the second year in a row, Southern was cited for providing excellent financial returns for its shareholders,” Chairman and Chief Executive Officer John H. Castle said. “Our board and management group remain focused on delivering superior shareholder value.”

Southern is a two bank holding company headquartered in Coldwater, Michigan, with total assets of $480.4 million, total deposits of $400.4 million, and total shareholders’ equity of $45.2 million as of March 31, 2008. Its subsidiary banks, Southern Michigan Bank & Trust and FNB Financial, operate 19 offices throughout southern Michigan that provide a broad range of consumer, business, and wealth management services. For more information, please visit our website, www.smb-t.com.