- Net income for Southern Michigan Bancorp (SOMC, Financial) surged 13.7% year-over-year to $3,046,000 in Q1 2025.
- Earnings per share rose to $0.66 from $0.59 year-over-year.
- Credit quality remained solid with non-performing loans reduced to 0.06% of total loans.
Southern Michigan Bancorp, Inc. (SOMC) reported strong financial results for the first quarter of 2025. The company's net income reached $3,046,000, or $0.66 per share, reflecting a 13.7% increase compared to $2,678,000, or $0.59 per share, in the same period of 2024. Notably, the tax equivalent net interest margin improved to 3.08% from 2.95% year-over-year.
Key performance indicators showed positive trends, with return on average assets rising to 0.79% from 0.73%, and return on average equity increasing to 11.11% from 10.80% year-over-year. The company's credit quality remained robust, as non-performing loans were reduced to 0.06% of total loans as of March 31, 2025, down from 0.08% at the end of 2024.
The provision for credit losses was noted at $12,780,000, representing 1.12% of loans, while net loan charge-offs were lowered to $2,000 in Q1 2025 from $10,000 in Q1 2024. Additionally, Southern Michigan Bancorp declared a dividend of $0.16 per common share for the first quarter of 2025, up from $0.15 in the previous year.
John R. Waldron, President and CEO of Southern Michigan Bancorp, Inc., emphasized the company's continued investment in market expansion and staffing, which has led to record levels of loans, deposits, and total assets as of March 31, 2025.
