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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

$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 14 bps year over year; NIM at 3.34%.
  • Asset quality: problem loans at 0.92% of loans (+91 bps YoY), with net charge-offs at 0.01%.
  • 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 (quarter, annualized)

0.85%-14 bps YoY

Net Interest Margin (quarter, annualized)

3.34%+14 bps YoY

Efficiency Ratio (quarter, annualized)

71.31%+606 bps YoY

Tier 1 Leverage Ratio

9.04%-1 bps YoY

NIM

5.10%Q2 ’245.32%Q2 ’255.30%Q2 ’26+12%+4%

Non-interest income vs. expense

2.37%Q2 ’242.46%Q2 ’252.53%Q2 ’26+3%+23%

Discrete quarter, annualized.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.78%0.84%0.93%0.99%0.89%0.83%0.85%0.85%-14 bps
Return on Equity8.86%9.49%10.55%11.10%10.03%9.40%9.57%9.32%-179 bps
Net Interest Margin2.89%2.97%2.94%3.20%3.12%3.11%3.10%3.34%+14 bps
Efficiency Ratio68.90%71.84%67.01%65.26%63.78%64.86%67.44%71.31%+606 bps
Non-Interest Burden1.80%1.95%1.76%1.86%1.74%1.79%1.89%2.30%+43 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%0.01%0.25%0.01%0 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