UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 24, 2011
Southern Michigan Bancorp, Inc.
(Exact Name of Registrant as
Specified in its Charter)
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Michigan |
000-49722 |
38-2407501 |
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51 West Pearl Street |
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Registrant's telephone number, including area code: (517) 279-5500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 |
Results of Operations and Financial Condition. |
On October 24, 2011, Southern Michigan Bancorp, Inc. issued the press release furnished with this Report as Exhibit 99.1, which is here incorporated by reference. This Report and the Exhibit are furnished to, and not filed with, the Commission.
Item 9.01 |
Financial Statements and Exhibits. |
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(d) |
Exhibits: |
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99.1 |
Press Release, dated October 24, 2011. This Exhibit is furnished to, and not filed with, the Commission. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: |
October 24, 2011 |
SOUTHERN MICHIGAN BANCORP, INC. |
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/s/ Danice L. Chartrand |
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Danice L. Chartrand |
EXHIBIT INDEX
Exhibit Number |
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Document |
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99.1 |
Southern Michigan Bancorp, Inc. Press Release, dated October 24, 2011. This Exhibit is furnished to, and not filed with, the Commission. |
EXHIBIT 99.1
SOUTHERN MICHIGAN BANCORP, INC.
51 West Pearl Street
Coldwater, Michigan 49036
FOR IMMEDIATE RELEASE
CONTACT: John H. Castle, CEO
(517) 279-5500
SOUTHERN MICHIGAN BANCORP, INC. ANNOUNCES THIRD QUARTER 2011 EARNINGS
Coldwater, Michigan, October 24, 2011: Southern Michigan Bancorp, Inc. (OTCBB: SOMC.OB) announced third quarter net income of $887,000, or $0.38 per diluted share, for the three months ended September 30, 2011. This compares to net income of $870,000, or $0.38 per diluted share, for the three months ended September 30, 2010. Southern's net income for the nine months ended September 30, 2011, was $2,397,000, or $1.03 per diluted share, compared to net income of $2,375,000, or $1.03 per diluted share, for the same nine month period a year ago.
Total consolidated assets at September 30, 2011 were $515.4 million compared to $493.9 million at December 31, 2010.
Southern provided $375,000 for loan losses during the third quarter of 2011 compared to a $425,000 provision for the third quarter of 2010. Net charge offs totaled $379,000 during the third quarter of 2011 compared to $423,000 in the third quarter of 2010. For the nine month period ended September 30, 2011, net charge offs totaled $1,171,000 compared to $1,122,000 for the same nine month period in 2010. Loan delinquencies decreased 26 basis points to 2.27% at September 30, 2011 as compared to 2.53% at September 30, 2010.
The annualized return on average assets for the nine month periods ended September 30, 2011 and 2010 was 0.64% and 0.67%, respectively. The annualized return on average equity was 6.46% for the first nine months of 2011 compared to 6.76% for the same period of 2010.
John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, "I am pleased with the commercial loan growth of $8 million during the third quarter of 2011. Based on the volume in our commercial loan pipeline, additional growth is expected during the fourth quarter. In addition, the momentum from cost savings initiatives is noticeably impacting our results."
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.
***
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," "momentum," "future," and other similar words or phrases. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to future growth and profitability and the future effect of cost saving measures. Management's determination of the provision and allowance for loan losses, the appropriate carrying value of intangible assets (including goodwill, mortgage servicing rights and deferred tax assets) and other real estate owned, and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involves judgments that are inherently forward-looking. Management's assumptions regarding pension and other post retirement plans involve judgments that are inherently forward-looking. Our ability to sell other-real-estate owned at its carrying value or at all, successfully implement new programs and initiatives, increase efficiencies, respond to declines in collateral values and credit quality, maintain our current level of deposits and other sources of funding, and improve profitability is not entirely within our control and is not assured. The future effect of changes in the real estate, 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 or forecasted in such forward-looking statements. We undertake no obligation to update or revise our forward-looking statements to reflect developments that occur or information obtained after the date of this report.
Risk factors include, but are not limited to, the risk factors described in "Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2010. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.
SOUTHERN MICHIGAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data)
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September 30, |
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December 31, |
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ASSETS |
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Cash and cash equivalents |
$ |
72,224 |
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$ |
78,833 |
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Federal funds sold |
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265 |
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275 |
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Securities available for sale |
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85,890 |
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59,228 |
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Loans held for sale |
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930 |
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2,637 |
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Loans, net of allowance for loan losses of $5,398 - 2011 ($5,694 - 2010) |
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308,228 |
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303,830 |
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Premises and equipment, net |
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12,498 |
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12,599 |
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Accrued interest receivable |
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2,416 |
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2,107 |
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Net cash surrender value of life insurance |
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10,216 |
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9,965 |
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Goodwill |
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13,422 |
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13,422 |
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Other intangible assets, net |
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1,751 |
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2,005 |
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Other assets |
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7,521 |
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8,979 |
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TOTAL ASSETS |
$ |
515,361 |
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$ |
493,880 |
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LIABILITIES |
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Deposits: |
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Non-interest bearing |
$ |
61,468 |
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$ |
59,942 |
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Interest bearing |
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367,793 |
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349,959 |
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Total deposits |
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429,261 |
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409,901 |
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Securities sold under agreements to repurchase and overnight borrowings |
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16,166 |
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15,027 |
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Accrued expenses and other liabilities |
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3,956 |
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4,476 |
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Other borrowings |
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8,495 |
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10,079 |
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Subordinated debentures |
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5,155 |
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5,155 |
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Common stock subject to repurchase obligation in Employee |
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Stock Ownership Plan, shares outstanding - 112,002 in 2011 |
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(107,627 shares in 2010) |
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1,344 |
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1,399 |
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Total liabilities |
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464,377 |
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446,037 |
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SHAREHOLDERS' EQUITY |
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Preferred stock, 100,000 shares authorized; none issued or outstanding |
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- |
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- |
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Common stock, $2.50 par value: |
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Authorized - 4,000,000 shares |
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Issued - 2,358,599 shares in 2011 (2,340,717 shares in 2010) |
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Outstanding (other than ESOP shares) - 2,246,597 shares in 2011 |
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Additional paid-in capital |
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18,173 |
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18,033 |
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Retained earnings |
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26,736 |
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24,692 |
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Accumulated other comprehensive income (loss), net |
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661 |
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(168 |
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Unearned Employee Stock Ownership Plan shares |
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(202 |
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(297 |
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Total shareholders' equity |
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50,984 |
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47,843 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
515,361 |
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$ |
493,880 |
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SOUTHERN MICHIGAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
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Three Months Ended |
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Nine Months Ended |
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2011 |
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2010 |
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2011 |
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2010 |
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Interest income: |
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Loans, including fees |
$ |
4,512 |
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$ |
4,878 |
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$ |
13,359 |
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$ |
14,427 |
Securities: |
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Taxable |
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164 |
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151 |
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473 |
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474 |
Tax-exempt |
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237 |
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178 |
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671 |
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580 |
Other |
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31 |
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42 |
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129 |
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99 |
Total interest income |
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4,944 |
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5,249 |
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14,632 |
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15,580 |
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Interest expense: |
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Deposits |
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771 |
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928 |
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2,418 |
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2,863 |
Other |
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146 |
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172 |
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453 |
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515 |
Total interest expense |
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917 |
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1,100 |
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2,871 |
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3,378 |
Net interest income |
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4,027 |
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4,149 |
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11,761 |
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12,202 |
Provision for loan losses |
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375 |
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425 |
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875 |
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775 |
Net interest income after provision for loan losses |
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3,652 |
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3,724 |
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10,886 |
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11,427 |
Non-interest income: |
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Service charges on deposit accounts |
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489 |
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652 |
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1,568 |
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1,834 |
Trust fees |
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284 |
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244 |
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852 |
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740 |
Net gains on security calls and sales |
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2 |
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- |
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4 |
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207 |
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Net gains on loan sales |
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309 |
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403 |
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831 |
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684 |
Earnings on life insurance assets |
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87 |
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93 |
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251 |
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243 |
Gain on life insurance proceeds |
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- |
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- |
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- |
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156 |
Income from loan servicing |
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98 |
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79 |
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323 |
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242 |
Brokerage income |
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76 |
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49 |
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170 |
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168 |
ATM and debit card fee income |
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263 |
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235 |
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755 |
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660 |
Other |
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113 |
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83 |
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276 |
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242 |
Total non-interest income |
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1,721 |
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1,838 |
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5,030 |
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5,176 |
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Non-interest expense: |
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Salaries and employee benefits |
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2,378 |
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2,529 |
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7,262 |
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7,467 |
Occupancy, net |
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230 |
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324 |
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939 |
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1,068 |
Equipment |
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158 |
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229 |
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565 |
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|
683 |
Printing, postage and supplies |
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139 |
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146 |
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382 |
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437 |
Telecommunication expenses |
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74 |
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107 |
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271 |
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281 |
Professional and outside services |
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253 |
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160 |
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673 |
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|
685 |
FDIC assessments |
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101 |
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157 |
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376 |
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|
473 |
Software maintenance |
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110 |
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94 |
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325 |
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302 |
Amortization of other intangibles |
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85 |
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87 |
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254 |
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262 |
Expenses relating to OREO property |
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32 |
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|
203 |
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|
384 |
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ATM expenses |
|
93 |
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|
81 |
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|
267 |
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|
246 |
Other |
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545 |
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482 |
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1,365 |
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1,387 |
Total non-interest expense |
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4,238 |
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4,428 |
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12,882 |
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13,675 |
INCOME BEFORE INCOME TAXES |
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1,135 |
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1,134 |
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3,034 |
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2,928 |
Federal income tax provision |
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248 |
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264 |
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|
637 |
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|
553 |
NET INCOME |
$ |
887 |
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$ |
870 |
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$ |
2,397 |
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$ |
2,375 |
Basic Earnings Per Common Share |
$ |
0.38 |
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$ |
0.38 |
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$ |
1.03 |
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$ |
1.03 |
Diluted Earnings Per Common Share |
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0.38 |
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0.38 |
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1.03 |
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1.03 |
Dividends Declared Per Common Share |
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0.05 |
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0.05 |
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0.15 |
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0.15 |