COLDWATER, MI (WTVB) - Southern Michigan Bancorp, Inc. (OTCQB: SOMC) announced second quarter 2013 net income of $1,079,000, or $0.45 per share, compared to net income of $1,027,000, or $0.43 per share, for the second quarter of 2012. Southern’s net income for the six month period ended June 30, 2013, was $2,134,000, or $0.89 per share, compared to net income of $2,029,000, or $0.86 per share, for the same six month period a year ago.
Total consolidated assets at June 30, 2013 were $522.3 million compared to $528.9 million at December 31, 2012.
Southern provided $175,000 for loan losses during the second quarter of 2013 resulting in an allowance for loan losses of $5,594,000, or 1.52% of loans at June 30, 2013. This compared to $475,000 of provision for loan losses expense for the second quarter of 2012. Net recoveries totaled $187,000 during the second quarter of 2013, compared to net charge-offs of $833,000 during the second quarter of 2012. For the six month period ended June 30, 2013, net charge offs totaled $261,000, or annualized 0.14% of loans, compared to $946,000 for the same six month period of 2012.
The annualized return on average assets for the six month periods ended June 30, 2013 and 2012 was 0.80% and 0.78%, respectively. The annualized return on average equity was 7.65% for the first six months of 2013 compared to 7.66% for the same period of 2012. The tax equivalent net interest margin for the six month periods ending June 30, 2013 and 2012 was 3.76% and 3.74%, respectively.
John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, “We continue to be pleased with our financial performance. The 5.2% increase in year over year earnings is especially gratifying considering the core processing conversion costs of $462,000 incurred during the year. We look forward to the benefits our company and customers will see from the new system. ”
Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 15 branches within Branch, Calhoun, Hillsdale and St. Joseph Counties, providing a broad range of consumer, business and wealth management services throughout the region.
(release courtesy Southern Michigan Bank and Trust)