8-K

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): July 27, 2012

Southern Michigan Bancorp, Inc.
(Exact Name of Registrant as
Specified in its Charter)

Michigan
(State or Other Jurisdiction
of Incorporation) 000-49722
(Commission
File Number) 38-2407501
(IRS Employer
Identification No.)

51 West Pearl Street
Coldwater, MI
(Address of Principal Executive Offices)
49036
(Zip Code)

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 July 27, 2012, 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.
	(d)	Exhibits:
		99.1	Press Release, dated July 27, 2012. This Exhibit is furnished to, and not filed with, the Commission.

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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:	July 27, 2012	SOUTHERN MICHIGAN BANCORP, INC.
		/s/ Danice L. Chartrand
		Danice L. Chartrand Senior Vice President, Chief Financial Officer, Secretary, and Treasurer

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EXHIBIT INDEX

Exhibit Number	Document
99.1	Southern Michigan Bancorp, Inc. Press Release, dated July 27, 2012. This Exhibit is furnished to, and not filed with, the Commission.

EX-99.1

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 SECOND QUARTER 2012 EARNINGS

Coldwater, Michigan, July 27, 2012: Southern Michigan Bancorp, Inc. (OTCBB: SOMC.OB) announced second quarter 2012 net income of $1,027,000, or $0.43 per share, compared to net income of $762,000, or $0.33 per share, for the second quarter of 2011. Southern's net income for the six months ended June 30, 2012, was $2,029,000, or $0.86 per share, compared to net income of $1,510,000, or $0.65 per share, for the same six month period a year ago.

Total consolidated assets at June 30, 2012 were $503.9 million compared to $509.2 million at December 31, 2011.

Southern provided $475,000 for loan losses during the second quarter of 2012 resulting in an allowance for loan losses of $5,167,000, or 1.48% of loans, at June 30, 2012. This compared to $375,000 of provision for loan losses expense for the second quarter of 2011. Net charge-offs totaled $833,000 during the second quarter of 2012, compared to $549,000 during the second quarter of 2011.

For the six month period ended June 30, 2012, net charge offs totaled $946,000 compared to $792,000 for the same six month period in 2011. Specific reserves on impaired loans decreased $387,000 during the first six months of 2012 resulting in a lower provision for loan losses.

Net interest income for the six months ended June 30, 2012 totaled $8.4 million, an increase of $803,000 or 10.6%, as compared to $7.6 million for the same six month period of 2011.

The annualized return on average assets for the six month periods ended June 30, 2012 and 2011 was 0.78% and 0.61%, respectively. The annualized return on average equity was 7.66% for the first six months of 2012 compared to 6.17% for the same period of 2011.

John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, "For the second quarter of 2012, we are pleased to report continued improvement in our financial performance. As expected, loan balances increased $16.3 million during the second quarter of 2012, contributing to higher net interest income. Non-interest income also increased as continued low rates on longer term mortgage products resulted in an increase in net gains on loan sales."

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. Management's determination of the provision and allowance for loan losses and other accounting estimates, such as the carrying value of goodwill, other real estate owned and mortgage servicing rights 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. There can be no assurance that future loan losses will be limited to the amounts estimated. Our ability sell other real estate owned at its carrying value or at all, successfully implement new programs and initiatives, increase efficiencies, maintain our current level of deposits and other sources of funding, respond to declines in collateral values and credit quality, and improve profitability is not entirely within our control and is not assured. 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, extend, 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 undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

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, 2011. 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.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data)

	June 30, 2012			December 31, 2011
ASSETS
Cash and cash equivalents	$	34,772		$	42,185
Federal funds sold		253			287
Securities available for sale		76,054			90,344
Loans held for sale		1,624			1,088
Loans, net of allowance for loan losses of $5,167 - 2012 ($5,412 - 2011)		344,041			327,392
Premises and equipment, net		12,392			12,546
Accrued interest receivable		1,826			2,148
Net cash surrender value of life insurance		10,480			10,312
Goodwill		13,422			13,422
Other intangible assets, net		1,504			1,666
Other assets		7,499			7,830
TOTAL ASSETS	$	503,867		$	509,220
LIABILITIES
Deposits:
Non-interest bearing	$	69,591		$	61,930
Interest bearing		347,956			358,581
Total deposits		417,547			420,511
Securities sold under agreements to repurchase and overnight borrowings		14,214			18,074
Accrued expenses and other liabilities		4,558			4,568
Other borrowings		7,448			7,751
Subordinated debentures		5,155			5,155
Common stock subject to repurchase obligation in Employee
Stock Ownership Plan, shares outstanding - 119,594 in 2012
(115,170 shares in 2011)		1,644			1,296
Total liabilities		450,566			457,355
SHAREHOLDERS' EQUITY
Preferred stock, 100,000 shares authorized; none issued or outstanding		-			-
Common stock, $2.50 par value:
Authorized - 4,000,000 shares
Issued - 2,376,204 shares in 2012 (2,358,599 shares in 2011)
Outstanding (other than ESOP shares) - 2,256,610 shares in 2012           (2,243,429 shares in 2011)		5,642			5,609
Additional paid-in capital		17,991			18,278
Retained earnings		29,223			27,576
Accumulated other comprehensive income, net		548			571
Unearned Employee Stock Ownership Plan shares		(103	)		(169	)
Total shareholders' equity		53,301			51,865
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	503,867		$	509,220

SOUTHERN MICHIGAN BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Interest income:
Loans, including fees	$	4,629	$	4,334	$	9,140	$	8,704
Federal funds sold and balances with banks		31		47		57		98
Securities:
Taxable		63		171		219		309
Tax-exempt		246		218		488		434
Total interest income		4,969		4,770		9,904		9,545
Interest expense:
Deposits		587		803		1,248		1,647
Other		129		148		262		307
Total interest expense		716		951		1,510		1,954
Net interest income		4,253		3,819		8,394		7,591
Provision for loan losses		475		375		700		500
Net interest income after provision for loan losses		3,778		3,444		7,694		7,091
Non-interest income:
Service charges on deposit accounts		413		568		807		1,079
Trust fees		263		293		561		568
Net gains on security calls and sales		-		-		3		2
Net gains on loan sales		476		205		878		522
Earnings on life insurance assets		80		84		168		164
Brokerage income		49		46		103		94
ATM and debit card fee income		292		257		564		492
Other		127		124		281		237
Total non-interest income		1,700		1,577		3,365		3,158
Non-interest expense:
Salaries and employee benefits		2,267		2,294		4,688		4,741
Occupancy, net		277		336		560		709
Equipment		217		204		409		407
Printing, postage and supplies		105		102		244		243
Telecommunication expenses		61		98		157		197
Professional and outside services		280		199		536		420
FDIC assessments		100		110		200		275
Software maintenance		120		110		231		215
Amortization of other intangibles		81		84		162		169
Expenses relating to OREO property		74		86		202		131
ATM expenses		109		92		210		174
Other		451		344		825		669
Total non-interest expense		4,142		4,059		8,424		8,350
INCOME BEFORE INCOME TAXES		1,336		962		2,635		1,899
Federal income tax provision		309		200		606		389
NET INCOME	$	1,027	$	762	$	2,029	$	1,510
Basic Earnings Per Common Share	$	0.43	$	0.33	$	0.86	$	0.65
Diluted Earnings Per Common Share		0.43		0.33		0.86		0.65
Dividends Declared Per Common Share		0.09		0.05		0.16		0.10