Southern Michigan Bancorp (OTCMKTS:SOMC) said that its loan loss allowance has been reduced to $75,000 in the fourth quarter from $100,000 in the prior year quarter. Similarly, for the year 2014, its loan loss allowance was reduced to 1.26% of loans or $400,000. In comparison, the company’s loan losses allowance was 1.46% of loans or $750,000 in the previous year. The company attributed the drop in loan losses provision to a fall in net charge-offs besides a drop in delinquencies compensated by commercial loan portfolio growth.
Southern Michigan Bancorp (OTCMKTS:SOMC) reported net income of $1.25 million for the fourth quarter, up 7.9% from $1.16 million in the year-ago quarter. Its earnings also rose 4.1% to 51 cents a share from 41 cents a share in the prior year quarter.
The company’s total interest income rose 2.3% to $5.16 million from $5.04 million in the previous year quarter. However, its total non-interest income dipped 9.6% to $1.66 million from $1.84 million in the same quarter last year.
Southern Michigan Bancorp (OTCMKTS:SOMC) said that its total consolidated assets were $543.3 million at the end of the year 2014, up from $539.5 million at the end of December 2013. Similarly, its total loans grew 6.2% to $410.1 million from the prior year period.
Full Year Results
The company reported net income of $4.79 million, up 6.5% from $4.5 million in the previous year. Its earnings also advanced 5.85% to $1.99 a share from $1.88 a share in the prior year.
While total interest income rose 2% to $20.32 million from $19.93 million, its total non-interest income slipped 8.7% to $6.61 million from $7.24 million in 2013.
Southern Michigan Bancorp (OTCMKTS:SOMC)’s CEO, John Castle, said that the loan growth it witnessed in the planned expansion of its market footprint in Kalamazoo would allow it to deliver solid financial results. It extended its market presence during the fall of 2014. The company’s cash and cash equivalents remained at $15.37 million.