Southern Michigan Bancorp, Inc. (Parent Company Only) Financial Information

12 Months Ended

Dec. 31, 2012

Southern Michigan Bancorp, Inc. (Parent Company Only) Financial Information [Abstract]

SOUTHERN MICHIGAN BANCORP, INC. (PARENT COMPANY ONLY) FINANCIAL INFORMATION

NOTE Q – SOUTHERN MICHIGAN BANCORP, INC. (PARENT COMPANY ONLY) FINANCIAL INFORMATION

Condensed financial statements of Southern Michigan Bancorp, Inc. follow (in thousands):

Balance Sheets	December 31,
	2012		2011
Assets
Cash and cash equivalents	$	218	$	404
Investment in subsidiary bank		60,053		57,947
Investment in non banking subsidiary		186		188
Premises and equipment, net		813		844
Other assets		910		778
Total Assets	$	62,180	$	60,161
Liabilities and Shareholders’ Equity
Dividends payable	$	285	$	165
Other liabilities		40		46
Other borrowings		—		1,634
Subordinated debentures		5,155		5,155
Common stock subject to repurchase obligation in ESOP		2,065		1,296
Shareholders’ equity		54,635		51,865
Total Liabilities and Shareholders’ Equity	$	62,180	$	60,161

Statements of Income	Year ended December 31,
	2012			2011			2010
Dividends from subsidiary bank	$	2,254		$	1,437		$	1,358
Interest income		7			16			25
Interest expense		(228	)		(266	)		(300	)
Rental income from subsidiary bank		137			137			137
Other expenses		(344	)		(310	)		(290	)
		1,826			1,014			930
Federal income tax credit		(146	)		(144	)		(146	)
		1,972			1,158			1,076
Equity in net income, less dividends received from:
Subsidiary bank		2,380			2,245			2,023
Non-banking subsidiary		(2	)		(1	)		(1	)
Net Income	$	4,350		$	3,402		$	3,098

Statements of Cash Flows	Year ended December 31,
	2012			2011			2010
Operating Activities
Net income	$	4,350		$	3,402		$	3,098
Adjustments to reconcile net income to net cash from operating activities:
Equity in net income, less dividends received from:
Subsidiary bank		(2,380	)		(2,245	)		(2,023	)
Non-banking subsidiary		2			1			1
Stock option and restricted stock grant compensation expense		203			168			154
Depreciation		31			32			32
Net change in obligation under ESOP		134			128			140
Other, net		(138	)		(84	)		(224	)
Net cash from operating activities		2,202			1,402			1,178
Financing Activities
Repayments of other borrowings		(1,634	)		(1,211	)		(644	)
Cash dividends paid		(760	)		(470	)		(467	)
Stock options exercised		6			—			—
Net cash from financing activities		(2,388	)		(1,681	)		(1,111	)
Net change in cash and cash equivalents		(186	)		(279	)		67
Beginning cash and cash equivalents		404			683			616
Ending cash and cash equivalents	$	218		$	404		$	683