COLDWATER, Mich., Oct 31, 2008 /PRNewswire-FirstCall via COMTEX/ -- Southern Michigan Bancorp, Inc. (OTC Bulletin Board: SOMC.OB) announced after deductions proceeds of $1,571,000 or $0.69 per diluted share, for the nine months ended September 30, 2008. This compares to $3,129,000, or $1.76 per diluted share, for the nine months ended September 30, 2007.
Southern's nett takings for the three months ended September 30, 2008, was $21,000, or $0.01 per diluted share, compared to $1,082,000, or $0.61 per diluted share, for the same three month era a year ago. (Logo: http://www.newscom.com/cgi-bin/prnh/20070619/CLTU100LOGO ) John H. Castle, Chairman & Chief Executive Officer, stated, "Over the hold out 90 days, we have witnessed unprecedented forcefulness in the economic and credence markets as reflected by current legislation enacted by Congress and progressing reports by the media.
Southern has avoided many of the issues affecting the broader market, such as sub-prime loans, mortgage-backed securities and investments in Fannie Mae and Freddie Mac stock. However, Southern is not safe to the bumping of these infuriating times, as criminal and non-accrual loans have increased in both the commercial and consumer portfolios." Castle continued, "While it is farcical to describe the size or duration of the issues that in due course have stalled the economy, we find credible that our stable creditation way of life and violent lending standards have positioned us to rise above the modish faith cycle." Non-performing loans totaled $10,449,000 at September 30, 2008, or 3.1% of whole loans.
This was an bourgeon of $1,131,000 from June 30, 2008. The third station advance in non-performing loans resulted pre-eminently from loans being placed on non-accrual eminence during the period. The countenancing for allowance losses grew to $6,987,000, or 2.07% of all-out loans, at September 30, 2008, from $5,608,000, or 1.66% of sum loans at the erstwhile accommodate end and $5,156,000 or 1.53%, at year end 2007.
In the third shelter of 2008, requirement for accommodation losses was $1,580,000 compared to $800,000 at the rear favour and $145,000 in the third mercifulness of 2007. On a year-to-date basis, Southern's equipment for credit losses totaled $2,730,000 versus $345,000 a year ago. Over half of the 2008 spread in the demand for advance losses relates to a isolated elephantine commercial honour in the automotive industry. The term for loan losses resulted from management's trimonthly rating of the loan portfolio using a methodology that estimates the mass of tribute losses possible within the loan portfolio based on a issue of factors, including drubbing & delinquency trends, stream commercial conditions, loan grades and concentrations. The Company and its subsidiary banks proceed to be "well capitalized" under regulatory fine requirements. Southern's 4.43% return investment partition line for the nine month patch ending September 30, 2008 remained flourishing when compared to peers and was somewhat flavourless compared to the June 30, 2008 six month days of 4.41%. However, Southern's strainer weight side declined from the 4.86% reported for the nine month years ending September 30, 2007.
The slump is attributable to the declining amount conditions as well as the U-turn of incite reciprocal to loans placed on non-accrual status. Financial results for 2008 were influenced by the object of FNB Financial on December 1, 2007. In accordance with the buy structure of accounting, FNB's results of operations were included in Southern's consolidated statements of gain from the fixture of acquisition. As a outcome of the merger, Southern recorded additional web loans of $76.8 million, securities of $40.2 million and additional deposits of $118.6 million at the era of the acquisition. Southern Michigan Bancorp, Inc. is a two bank holding company.
Its subsidiary banks are Southern Michigan Bank & Trust and FNB Financial. Its 19 offices throughout southern Michigan accord a wide-ranging pigeon-hole of consumer, task and copiousness governance services throughout the region. For more information, cheer afflict our website, www.smb-t.com. This hug unfetter contains forward-looking statements that are based on management's beliefs, assumptions, flow expectations, estimates and projections about the fiscal services industry, the economy, and Southern Michigan Bancorp, Inc. Forward-looking statements are identifiable by words or phrases such as "believe" or "continue" and other comparable words or expressions.
Accounting estimates, such as the exception and excuse for loan losses, are inherently forward-looking. There can be no coolness that tomorrow's loan losses will be reduced to the amounts estimated. The prospective capacity of changes in the pecuniary and accept markets and the nationalist and regional husbandry on the banking industry, generally, and Southern Michigan Bancorp, Inc., specifically, are also inherently uncertain.
Additional low-down about factors that may adversely pretend the matters addressed in forward-looking statements are contained in Southern's reports filed with the Securities and Exchange Commission. Other hazard factors persist and green endanger factors may become known at any time. Investors should not pinpoint undue trust on forward-looking statements as predictions of tomorrow results.
Southern undertakes no charge to update or rewrite any forward-looking statements to display developments or report obtained after the obsolescent of this mash release.
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