Southern Michigan Bancorp Inc. (OTCBB: SOMC) today announced its net income for the three month period ended March 31, 2008. The company stated that the results were affected by the acquisition of FNB Financial on December 1, 2007. The company posted net income of $1.2 million, or 52 cents basic and diluted earnings per share, as compared to $978,000, or 55 cents basic and diluted earnings per share, for the same period of 2007.
Following the purchase method of accounting, FNB’s results were included in Southern’s consolidated statements of income from the date of acquisition. Southern recorded additional net loans of $76.8 million, securities of $40.2 million and additional deposits of $118.6 million at the time of the acquisition.
“While we are pleased with our first quarter results, we remain cautious about the balance of 2008. Like many other financial institutions, Southern has felt the impact of the weakened economy on consumers as delinquencies and losses in our mortgage loan portfolio have increased. The decline in local real estate values compounds the problem consumers and financial institutions are facing,” John H. Castle, chairman and CEO of Southern Michigan Bancorp stated in the press release.
Southern Michigan Bancorp is a two bank holding company, owner of Southern Michigan Bank & Trust and FNB Financial. The company operates 19 offices in southern Michigan, providing various consumer, business and wealth management services throughout the region.
Let us hear your thoughts below: