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Southern Michigan Bank & Trust

Coldwater, MI · Cert 5019 · Southern Michigan Bcorp Inc.

State charter, non-member · FDIC · 20 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks $1B-$10B in assets3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks $1B-$10B in assets (n=322 to 328). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

10

Q2 2024Q2 2026peer median (50)

Asset Quality

31

Q2 2024Q2 2026peer median (50)

Profitability

30

Q2 2024Q2 2026peer median (50)

Liquidity

77

Q2 2024Q2 2026peer median

Efficiency

20

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Southern Michigan Bank & Trust

Coldwater, MI · Cert 5019 · Southern Michigan Bcorp Inc.

State charter, non-member · FDIC · 20 branches

Q2 2026

$1.7BAssets
$1.3BLoans
$1.4BDeposits
$155.7MEquity
Loan mix
86%RE $1.1B14%C&I $0.2B0%Consumer $0.0BQ3 2024Q2 2026
Deposit mix
82%Interest-bearing $1.2B18%Noninterest $0.3BQ3 2024Q2 2026

Market Position · Battle Creek, MI · 2026 SOD (annual) · 20.8% share · #3 of 10 inst. · $0.3B of $1.3B

47.4% Branch
20.8% Calhoun
25.8% St. Joseph
3.2% Kalamazoo

Executive Summary

  • Earnings: ROA of 0.85%, down 11 bps year over year; NIM at 3.23%.
  • Asset quality: problem loans at 0.92% of loans (+91 bps YoY), with net charge-offs at 0.13%.
  • Capital: tier 1 leverage ratio of 9.04%, down 1 bps from a year ago.
  • Funding: loans stand at 90.99% of deposits as of Q2 2026.

Return on Assets (YTD, annualized)

0.85%-11 bps YoY

Net Interest Margin (YTD, annualized)

3.23%+19 bps YoY

Efficiency Ratio (YTD, annualized)

69.33%+324 bps YoY

Tier 1 Leverage Ratio

9.04%-1 bps YoY

NIM

5.07%Q2 ’245.14%Q2 ’255.22%Q2 ’26+7%+6%

Non-interest income vs. expense

2.38%Q2 ’242.39%Q2 ’252.51%Q2 ’26-2%+17%

Year to date, annualized, through each quarter.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.79%0.80%0.93%0.96%0.93%0.91%0.85%0.85%-11 bps
Return on Equity8.99%9.14%10.55%10.83%10.54%10.25%9.57%9.43%-140 bps
Net Interest Margin2.83%2.87%2.94%3.05%3.02%2.99%3.10%3.23%+19 bps
Efficiency Ratio69.85%70.37%67.01%66.10%65.30%65.18%67.44%69.33%+324 bps
Non-Interest Burden1.79%1.84%1.76%1.80%1.75%1.73%1.89%2.10%+30 bps
Growth
Asset Growth (YoY)5.77%6.12%5.91%7.99%10.42%13.03%9.16%7.09%-89 bps
Loan Growth (YoY)4.42%7.80%7.48%11.18%13.36%13.98%14.86%7.06%-412 bps
Deposit Growth (YoY)6.09%8.28%8.77%8.33%10.22%13.03%8.61%7.14%-118 bps
Asset Quality
Nonperforming Loans / Loans0.08%0.08%0.06%0.01%1.02%0.98%0.90%0.92%+91 bps
Net Charge-Offs / Loans0.00%0.00%0.00%0.00%0.00%0.00%0.25%0.13%+13 bps
Allowance / Loans1.14%1.14%1.12%1.11%1.17%1.22%1.17%1.19%+9 bps
Allowance Coverage of NPLs15.0x14.0x18.4x178.7x1.1x1.2x1.3x1.3x-177.4x
Capital
Tier 1 Leverage Ratio8.92%9.13%8.99%9.05%9.01%8.95%8.79%9.04%-1 bps
Total Risk-Based Capital12.58%12.61%12.43%12.23%12.42%12.23%12.03%9.04%-319 bps
Equity / Assets8.85%8.94%8.79%8.97%8.76%8.87%8.90%9.26%+29 bps
Liquidity & Funding
Loans / Deposits85.29%88.74%86.08%91.06%87.72%89.49%91.03%90.99%-7 bps
Liquid Assets / Assets10.86%7.61%10.20%6.94%10.54%9.19%7.84%8.14%+120 bps
CRE / Total Capitaln/an/an/an/a542%540%550%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Southern Michigan Bank & Trust

Coldwater, MI · Cert 5019 · Peer group: banks $1B-$10B in assets (n=322-328) · Southern Michigan Bcorp Inc.

State charter, non-member · FDIC · 20 branches

Q2 2026

$1.7BAssets
$1.3BLoans
$1.4BDeposits
$155.7MEquity

Executive Summary

  • Strongest standing: net interest margin outperforms 37% of banks $1B-$10B in assets (rank 208 of 328).
  • Widest gap: total risk-based capital ratio trails 100% of banks $1B-$10B in assets (rank 327 of 328).
  • Overall: at or above the peer median on 0 of 9 directional measures.

Return on Assets

0.85%

Rank 259 of 328

Net Interest Margin

3.23%

Rank 208 of 328

Efficiency Ratio

69.39%

Rank 262 of 328

Equity / Assets

9.26%

Rank 236 of 328

Non-interest income vs. expense

$6.9M$42.7MINCOMEEXPENSE
Unfavorable gap of $35.7M · efficiency ratio beats 20% of banks $1B-$10B in assets
Bank 69.39%Peer median 59.6%Q2 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRank8-Qtr TrendPeer Position
Earnings
Return on Assets0.85%0.91%1.22%1.52%Beats 21%259 / 328
Return on Equity9.23%8.43%11.45%14.43%Beats 31%227 / 328
Net Interest Margin3.23%3.03%3.45%3.83%Beats 37%208 / 328
Efficiency Ratio69.39%51.61%59.56%67.53%Beats 20%262 / 328
Asset Quality
Nonperforming Loans / Loans0.92%0.24%0.51%1.03%Beats 28%234 / 322
Net Charge-Offs / Loans0.07%0.01%0.03%0.10%Beats 34%215 / 322
Capital
Tier 1 Capital Ratio9.04%11.75%13.15%15.47%Beats 1%326 / 328
Total Risk-Based Capital Ratio9.04%12.63%14.15%16.46%Beats 0%327 / 328
Equity / Assets9.26%9.15%10.33%12.01%Beats 28%236 / 328
Liquidity & Funding
Loans / Deposits90.99%76.63%87.92%95.36%61st pctl126 / 323
Loans / Assets75.99%65.18%74.15%79.98%58th pctl139 / 328
Brokered Deposits / Depositsn/aNot reported for this institution