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): August 9, 2012
SOUTHERN MICHIGAN BANCORP, INC.
(Exact Name of Registrant as
Specified in 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:
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)).
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Item 7.01. |
Regulation FD Disclosure. |
On August 9, 2012, Southern Michigan Bancorp, Inc. mailed to its shareholders the letter 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.
Forward-Looking Statements
The letter 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 "continue", "opportunity", "beginning", "signs", "emerging", "may", "ultimately", "remainder", "beyond", "likely", "explore" and variations of such words and similar expressions. 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 loan demand, the future impact of current and future laws and regulations, and the impact of our initiatives to increase efficiencies. All statements with references to future time periods are forward-looking. Management's determination of the provision and allowance for loan losses and other accounting estimates involves judgments that are inherently forward-looking. 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. 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, 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.
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Item 9.01. |
Financial Statements and Exhibits. |
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(d) |
Exhibits: |
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99.1 |
Letter mailed August 9, 2012. |
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 thereunto duly authorized.
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Date: August 9, 2012 |
SOUTHERN MICHIGAN BANCORP, INC. |
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By |
/s/ Danice L. Chartrand |
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Danice L. Chartrand |
EXHIBIT INDEX
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Exhibit |
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99.1 |
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Letter mailed August 9, 2012. |
EXHIBIT 99.1
To Our Shareholders:
I am pleased to report that Southern Michigan Bancorp, Inc. posted another quarter of solid results. Net income for the second quarter of 2012 was $1,027,000, or $.43 per share, compared with second quarter 2011 net income of $762,000, or $.33 per share. For the first six months of 2012, Southern earned $2,029,000, or $.86 per share, compared with $1,510,000, or $.65 per share, for the same six-month period a year ago.
Southern's success through the first six months of 2012 was driven largely by our management team's strategic focus on developing high quality small business lending relationships throughout our four-county primary service area. The results of those initiatives led to an increase in our commercial loan portfolio of $16 million during the most recent quarter, with total commercial loans exceeding $261 million at June 30, 2012. Net interest income for the first six months of 2012 grew by 10.6 percent to $8.4 million, compared with $7.6 million for the first six months of 2011.
Many of our customers have taken advantage of historically low interest rates to refinance their home mortgages. Gains on sales of mortgage loans grew substantially, totaling $878,000 for the first six months of 2012, compared with $522,000 for the same period a year ago. In addition, we are seeing modest improvement in purchases and sales of existing homes and in new home construction.
As of June 30, 2012, total assets were $503.9 million compared with $481.3 million as of June 30, 2011. Southern's annualized return on average assets for the first six months of 2012 was .78 percent compared with .61 percent for the same period a year ago. The annualized return on average equity for the first six months of 2012 improved to 7.66 percent compared with 6.17 percent for the same six-month period last year.
The strength and consistency of Southern's financial condition and performance is particularly noteworthy given the continued headwinds of an uncertain economy, burdensome regulations and escalating costs. During its June meeting, the board of directors approved an increase in the quarterly dividend from $.07 per share to $.09 per share. The board continues to evaluate dividend payout levels based on various performance criteria, including operating results and capital levels.
I will close on a personal note. In July, all of us in the Southern Family were deeply saddened by the sudden passing of Dave Clow, our Senior Vice President and Head of Commercial Lending. Dave joined Southern in 2004 as the Senior Commercial Lending Officer. He was a thoughtful mentor, an outstanding colleague and respected by peers throughout the banking industry. Most importantly, Dave was a wonderful friend to many within the bank and community. He will be missed and fondly remembered.
Sincerely,
/s/ John H. Castle
John H. Castle
Chairman and Chief Executive Officer