Southern Michigan Bancorp, Inc. Announces Fourth Quarter and Full Year 2025 Earnings

SMBT Jackson Summit Township Branch

COLDWATER, Mich., Feb. 17, 2026 (GLOBE NEWSWIRE) — Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced fourth quarter 2025 net income of $2,912,000, or $0.62 per share, an increase of $262,000, or 9.9%, compared to net income of $2,650,000, or $0.57 per share, for the fourth quarter of 2024. Southern earned $12,215,000, or $2.63 per share, for the year ended December 31, 2025, an increase of $1,813,000, or 17.4%, compared to net income of $10,402,000, or $2.28 per share, for the same period of 2024.

The annualized return on average assets for the years ended December 31, 2025, and December 31, 2024, was 0.77% and 0.71%, respectively. The annualized return on average equity for the years ended December 31, 2025 and December 31, 2024, was 10.64% and 10.07%, respectively. The tax equivalent net interest margin for the year ended December 31, 2025 was 3.22% compared to 2.98% for the same period of 2024.

John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “We are pleased to announce another solid quarter of earnings and growth. For 2025, we achieved loan growth of 14.1%, deposit growth of 13.2% and total asset growth of 13.0%.”

The allowance for credit losses totaled $15,553,000, or 1.22% of loans on December 31, 2025. Net loan charge-offs totaled $53,000 for 2025, compared to $28,000 for 2024. Non-performing loans as a percentage of total loans were 0.98% as of December 31, 2025, and 0.08% as of December 31, 2024.

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)

	December 31, 2025			December 31, 2024
ASSETS
Cash and cash equivalents	$	109,498		$	73,737
Federal funds sold		878			259
Securities available for sale, at fair value		156,220			159,320
Securities held-to-maturity, at amortized cost		62,471			60,454
Loans held-for-sale		214			995
Loans, net of allowance for credit losses of $15,553 – 2025, $12,782 – 2024		1,257,855			1,103,652
Premises and equipment, net		25,188			25,600
Net cash surrender value of life insurance		28,506			23,139
Goodwill		13,422			13,422
Other intangible assets, net		75			111
Other real estate owned		3,689			–
Other assets		32,461			35,866
TOTAL ASSETS	$	1,690,477		$	1,496,555

LIABILITIES
Deposits:
Non-interest bearing	$	224,171		$	223,583
Interest bearing		1,192,627			1,028,212
Total deposits		1,416,798			1,251,795

Securities sold under agreements to repurchase and overnight borrowings		1,390			1,560
Accrued expenses and other liabilities		18,118			18,355
Other borrowings		97,900			82,900
Subordinated debentures		34,791			34,722
Total liabilities		1,568,997			1,389,332

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 – 4,623,734 shares in 2025, 4,577,107 shares in 2024		11,555			11,438
Additional paid-in capital		13,621			13,438
Retained earnings		106,716			97,462
Accumulated other comprehensive loss		(10,412	)		(15,115	)
Total shareholders’ equity		121,480			107,223
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,690,477		$	1,496,555

Securities available for sale, at fair value

Securities held-to-maturity, at amortized cost

Loans, net of allowance for credit losses of $15,553 – 2025, $12,782 – 2024

Premises and equipment, net

Net cash surrender value of life insurance

Other intangible assets, net

Securities sold under agreements to repurchase and overnight borrowings

Accrued expenses and other liabilities

Preferred stock, 100,000 shares authorized; none issued or outstanding

Common stock, $2.50 par value:

Authorized – 10,000,000 shares

Issued and outstanding – 4,623,734 shares in 2025, 4,577,107 shares in 2024

Additional paid-in capital

Accumulated other comprehensive loss

Total shareholders’ equity

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

SOUTHERN MICHIGAN BANCORP, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands, except per share data)

	Three Months Ended December 31,				Year Ended December 31,
	2025		2024		2025		2024
Interest income:
Loans, including fees	$	19,052	$	16,628	$	72,776	$	64,376
Federal funds sold and balances with banks		823		999		3,314		4,629
Securities:
Taxable		1,404		1,376		5,810		5,889
Tax-exempt		410		318		1,498		1,222
Total interest income		21,689		19,321		83,398		76,116

Interest expense:
Deposits		7,847		7,358		30,434		29,013
Other		1,447		1,315		5,484		6,016
Total interest expense		9,294		8,673		35,918		35,029
Net interest income		12,395		10,648		47,480		41,087
Provision for credit losses		1,332		353		3,196		1,014
Net interest income after provision for credit losses		11,063		10,295		44,284		40,073

Non-interest income:
Service charges on deposit accounts		443		422		1,669		1,692
Trust fees		876		704		3,221		2,744
Net gains on loan sales		395		253		1,139		672
Earnings on life insurance assets		229		170		833		667
Gain from life insurance		–		–		202		–
ATM and debit card fee income		476		462		1,882		1,818
Other		230		289		831		898
Total non-interest income		2,649		2,300		9,777		8,491

Non-interest expense:
Salaries and employee benefits		6,161		6,233		24,146		22,388
Occupancy, net		601		540		2,438		2,054
Equipment		553		425		2,015		1,658
Professional and outside services		575		581		2,130		2,156
Software maintenance		774		635		2,841		2,452
ATM expenses		235		212		976		841
Printing, postage, and supplies		123		97		468		510
Telecommunication expenses		91		73		314		313
Other		1,251		1,096		4,342		4,053
Total non-interest expense		10,364		9,892		39,670		36,425
INCOME BEFORE INCOME TAXES		3,348		2,703		14,391		12,139
Federal income tax provision		436		53		2,176		1,737
NET INCOME	$	2,912	$	2,650	$	12,215	$	10,402

Basic Earnings Per Common Share	$	0.63	$	0.57	$	2.65	$	2.28
Diluted Earnings Per Common Share		0.62		0.57		2.63		2.28
Dividends Declared Per Common Share		0.16		0.15		0.64		0.60

Three Months EndedDecember 31,

Federal funds sold and balances with banks

Provision for credit losses

Net interest income after provision for credit losses

Service charges on deposit accounts

Earnings on life insurance assets

ATM and debit card fee income

Salaries and employee benefits

Professional and outside services

Printing, postage, and supplies

Telecommunication expenses

Total non-interest expense

INCOME BEFORE INCOME TAXES

Federal income tax provision

Basic Earnings Per Common Share

Diluted Earnings Per Common Share

Dividends Declared Per Common Share

A photo accompanying this announcement is available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/832ed605-5584-4b45-b447-75d83a032fe1

CONTACT: CONTACT: John R. Waldron, President and CEO (517) 279-5500