Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced second quarter 2015 net income of $1,880,000, or $0.79 per share, compared to net income of $1,146,000, or $0.48 per share, for the second quarter of 2014. Southern’s net income for the six month period ended June 30, 2015 increased 37.4% to $3,089,000, or $1.29 per share, compared to net income of $2,248,000, or $0.93 per share, for the same six month period a year ago.
During the second quarter of 2015 Southern recorded $555,000 of tax free income from death benefits on bank owned life insurance policies. Excluding this income, net income for the three and six month periods ended June 30, 2015 totaled $1,325,000 and $2,534,000, respectively, an increase of 15.62% and 12.72% over the respective three and six month prior year periods.
During the second quarter of 2015 the Board of Directors authorized the termination of the previously frozen defined benefit pension plan. Southern recorded $625,000 of pension expense through June 30, 2015 to ensure the plan will be fully funded as of the anticipated termination date of September 1, 2015.
Total consolidated assets at June 30, 2015 were $557.0 million compared to $543.3 million at December 31, 2014.
Southern provided $150,000 for loan losses during the six month period ended June 30, 2015 resulting in an allowance for loan losses of $5,196,000, or 1.26% of loans. This compared to $225,000 of provision for loan losses expense for the same six month period of 2014. Net charge offs totaled $131,000 or annualized 0.06% of loans for the six month period ending June 30, 2015, compared to $227,000 for the same six month period of 2014.
The annualized return on average assets for the six month periods ended June 30, 2015 and 2014 was 1.11% and 0.81%, respectively. The annualized return on average equity was 10.03% for the first six months of 2015 compared to 7.74% for the same period of 2014. The tax equivalent net interest margin for the six month periods ending June 30, 2015 and 2014 was 3.92% and 3.79%, respectively.
John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, “We are pleased to report strong core earnings, heightened mortgage lending activity and favorable asset quality metrics which are contributing to our overall success.”
Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 14 branches within Branch, Calhoun, Hillsdale and St. Joseph Counties, and a loan production office in Steuben County, providing a broad range of consumer, business and wealth management services throughout the region.
(courtesy Southern Michigan Bank and Trust)
