COLDWATER, Mich., Oct. 28, 2026 (GLOBE NEWSWIRE) — Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced third quarter 2026 net income of $3,274,000, or $0.70 per share, an increase of $255,000, or 8.45%, compared to net income of $3,019,000, or $0.65 per share, for the third quarter of 2025. For the first nine months of 2026, Southern earned $9,667,000, or $2.06 per share, an increase of $364,000, or 3.91%, compared to net income of $9,303,000, or $2.01 per share, for the same nine-month period one year ago. 

Southern’s annualized return on average assets was 0.76% and 0.79% for the nine-month periods ended September 30, 2026, and September 30, 2025, respectively. The annualized return on average equity was 10.25% for the first nine months of 2026 compared to 11.00% for the first nine months of 2025. The tax equivalent net interest margin was 3.33% for the nine months of 2026 compared to 3.21% for the same period of 2025.

The allowance for credit losses totaled $14,270,000, or 1.14% of loans on September 30, 2026. Net loan charge-offs totaled $1,650,000 for the first nine months of 2026, compared to $29,000 for the first nine months of 2025. Non-performing assets as a percentage of total assets were 0.28% as of September 30, 2026, and 0.96% as of December 31, 2025. 

John H. Castle, Chairman and Interim Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “Third-quarter earnings were solid, and we made significant progress in reducing non-performing assets. We also achieved record levels of both deposits and total assets at quarter-end. As we shared in our press release, John Waldron has resigned as President and CEO of Southern Michigan Bancorp effective October 7, 2026. I am returning as Interim CEO alongside Kurt Miller as Interim President, while we search for a new CEO and President. Even though Kurt and I retired in August 2024, we have continued to hold leadership positions on the Board and actively advise the bank’s strategic direction. We both look forward to overseeing Southern’s day-to-day operations throughout the search process.”

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)
  September 30,
2026		   December 31,
2025		  
ASSETS            
Cash and cash equivalents $ 153,466   $ 110,126  
Certificates of deposit in other banks   4,500     250  
Securities available for sale, at fair value   150,240     156,220  
Securities held-to-maturity, at amortized cost   64,377     62,471  
             
Loans held-for-sale   949     214  
Loans, net of allowance for credit losses of $14,270 – 2026, $15,553 – 2025   1,240,961     1,257,855  
Premises and equipment, net   25,536     25,188  
Net cash surrender value of life insurance   36,749     28,506  
Goodwill   13,422     13,422  
Other intangible assets, net   48     75  
Other real estate owned   1,610     3,689  
Other assets   39,158     32,461  
TOTAL ASSETS $ 1,731,016   $ 1,690,477  
             
LIABILITIES            
Deposits:            
Non-interest bearing $ 243,100   $ 224,171  
Interest bearing   1,207,825     1,192,627  
Total deposits   1,450,925     1,416,798  
             
Securities sold under agreements to repurchase and overnight borrowings   1,139     1,390  
Accrued expenses and other liabilities   22,479     18,118  
Other borrowings   97,900     97,900  
Subordinated debentures   34,843     34,791  
Total liabilities   1,607,286     1,568,997  
             
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 – 4,648,932 shares in 2026,
4,623,734 shares in 2025		   11,618     11,555  
Additional paid-in capital   13,710     13,621  
Retained earnings   114,010     106,716  
Accumulated other comprehensive loss   (15,608 )   (10,412 )
Total shareholders’ equity   123,730     121,480  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,731,016   $ 1,690,477  
             
             

SOUTHERN MICHIGAN BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except per share data)

  Three Months Ended
September 30,		   Nine Months Ended
September 30,		  
  2026   2025   2026   2025  
Interest income:                        
Loans, including fees $ 19,519   $ 18,681   $ 58,828   $ 53,724  
Federal funds sold and balances with banks   1,009     726     2,539     2,492  
Securities:                        
Taxable   1,398     1,468     4,156     4,405  
Tax-exempt   439     394     1,271     1,089  
Total interest income   22,365     21,269     66,794     61,710  
                         
Interest expense:                        
Deposits   7,469     7,731     22,535     22,587  
Other   1,679     1,452     4,715     4,037  
Total interest expense   9,148     9,183     27,250     26,624  
Net interest income   13,217     12,086     39,544     35,086  
Provision for credit losses   –     1,200     758     1,864  
Net interest income after provision for credit losses   13,217     10,886     38,786     33,222  
                         
Non-interest income:                        
Service charges on deposit accounts   473     423     1,345     1,226  
Trust fees   1,053     820     2,950     2,345  
Net gains on loan sales   235     250     683     744  
Earnings on life insurance assets   283     227     838     805  
ATM and debit card fee income   492     478     1,440     1,406  
Gain on sale of fixed assets   –     220     40     220  
Other   217     200     648     602  
Total non-interest income   2,753     2,618     7,944     7,348  
                         
Non-interest expense:                        
Salaries and employee benefits   6,684     5,992     19,460     17,985  
Occupancy, net   680     651     2,003     1,837  
Equipment   533     474     1,569     1,462  
Professional and outside services   563     507     1,746     1,555  
Software maintenance   796     718     2,304     2,067  
ATM expenses   255     270     738     742  
Printing, postage, and supplies   100     112     338     345  
Telecommunication expenses   92     75     251     223  
Loss on other real estate owned   830     –     2,519     –  
Other   1,501     1,180     4,220     3,311  
Total non-interest expense   12,034     9,979     35,148     29,527  
INCOME BEFORE INCOME TAXES   3,936     3,525     11,582     11,043  
Federal income tax provision   662     506     1,915     1,740  
NET INCOME $ 3,274   $ 3,019   $ 9,667   $ 9,303  
                         
Basic Earnings Per Common Share $ 0.70   $ 0.65   $ 2.08   $ 2.02  
Diluted Earnings Per Common Share   0.70     0.65     2.06     2.01  
Dividends Declared Per Common Share   0.17     0.16     0.51     0.48   


CONTACT:
John H. Castle, Chairman and Interim CEO
(517) 279-5500

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Southern Michigan Bancorp, Inc.