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Southern Michigan Bancorp

OTCPK:SOMC
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SOMC
OTCPK
$86M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Southern Michigan Bancorp, Inc. operates as the bank holding company for Southern Michigan Bank & Trust that provides a range of commercial banking services to individuals, businesses, institutions, and governmental agencies primarily in the southern Michigan communities. The last earnings update was 89 days ago. More info.


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SOMC Share Price and Events
7 Day Returns
0.1%
OTCPK:SOMC
-1.1%
US Banks
-1.2%
US Market
1 Year Returns
1.1%
OTCPK:SOMC
-6.5%
US Banks
3.4%
US Market
SOMC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Southern Michigan Bancorp (SOMC) 0.1% 1.6% -3.8% 1.1% 44.8% 93%
US Banks -1.1% 2.7% -0.4% -6.5% 45.1% 45.5%
US Market -1.2% 0.7% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • SOMC outperformed the Banks industry which returned -6.5% over the past year.
  • SOMC underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
SOMC
Industry
5yr Volatility vs Market

SOMC Value

 Is Southern Michigan Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Southern Michigan Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Southern Michigan Bancorp.

OTCPK:SOMC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $30.32 * 8.8%
$2.66
Book Value of Equity per Share Median Book Value from the past 5 years. $30.32
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:SOMC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.597 (1 + (1- 21%) (54.76%))
0.903
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.903 * 5.96%)
8.11%

Discounted Cash Flow Calculation for OTCPK:SOMC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Southern Michigan Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

OTCPK:SOMC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.8% – 8.11%) * $30.32)
$0.20
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.20 / (8.11% - 2.73%)
$3.74
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $30.32 + $3.74
$34.07
OTCPK:SOMC Discount to Share Price
Calculation Result
Value per share (USD) From above. $34.07
Current discount Discount to share price of $37.15
= -1 x ($37.15 - $34.07) / $34.07
-9.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Southern Michigan Bancorp is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Southern Michigan Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Southern Michigan Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:SOMC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.57
OTCPK:SOMC Share Price ** OTCPK (2019-07-17) in USD $37.15
United States of America Banks Industry PE Ratio Median Figure of 594 Publicly-Listed Banks Companies 12.72x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Southern Michigan Bancorp.

OTCPK:SOMC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OTCPK:SOMC Share Price ÷ EPS (both in USD)

= 37.15 ÷ 3.57

10.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Southern Michigan Bancorp is good value based on earnings compared to the US Banks industry average.
  • Southern Michigan Bancorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Southern Michigan Bancorp's expected growth come at a high price?
Raw Data
OTCPK:SOMC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
4.1%per year
United States of America Banks Industry PEG Ratio Median Figure of 271 Publicly-Listed Banks Companies 1.2x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Southern Michigan Bancorp, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Southern Michigan Bancorp's assets?
Raw Data
OTCPK:SOMC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $33.39
OTCPK:SOMC Share Price * OTCPK (2019-07-17) in USD $37.15
United States of America Banks Industry PB Ratio Median Figure of 594 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,247 Publicly-Listed Companies 1.79x
OTCPK:SOMC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OTCPK:SOMC Share Price ÷ Book Value per Share (both in USD)

= 37.15 ÷ 33.39

1.11x

* Primary Listing of Southern Michigan Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Southern Michigan Bancorp is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess Southern Michigan Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Southern Michigan Bancorp has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SOMC Future Performance

 How is Southern Michigan Bancorp expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Southern Michigan Bancorp, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Southern Michigan Bancorp expected to grow at an attractive rate?
  • Southern Michigan Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Southern Michigan Bancorp's earnings growth is positive but not above the United States of America market average.
  • Unable to compare Southern Michigan Bancorp's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OTCPK:SOMC Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:SOMC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 4.1%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 1.8%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:SOMC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:SOMC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 32 8
2018-12-31 31 12 8
2018-09-30 31 7
2018-06-30 30 7
2018-03-31 29 6
2017-12-31 29 7 5
2017-09-30 28 6
2017-06-30 28 6
2017-03-31 27 6
2016-12-31 27 8 6
2016-09-30 26 6
2016-06-30 26 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Southern Michigan Bancorp's earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Southern Michigan Bancorp is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:SOMC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Southern Michigan Bancorp Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:SOMC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.57
2018-12-31 3.52
2018-09-30 3.06
2018-06-30 2.82
2018-03-31 2.49
2017-12-31 2.30
2017-09-30 2.66
2017-06-30 2.61
2017-03-31 2.56
2016-12-31 2.54
2016-09-30 2.34
2016-06-30 2.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Southern Michigan Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Southern Michigan Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Southern Michigan Bancorp has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SOMC Past Performance

  How has Southern Michigan Bancorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Southern Michigan Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Southern Michigan Bancorp's year on year earnings growth rate has been positive over the past 5 years.
  • Southern Michigan Bancorp's 1-year earnings growth exceeds its 5-year average (42.7% vs 9.5%)
  • Southern Michigan Bancorp's earnings growth has exceeded the US Banks industry average in the past year (42.7% vs 37.7%).
Earnings and Revenue History
Southern Michigan Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Southern Michigan Bancorp Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:SOMC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 31.87 8.24 19.86
2018-12-31 31.49 8.13 19.60
2018-09-30 31.13 7.04 19.19
2018-06-30 30.28 6.50 18.75
2018-03-31 29.45 5.78 18.43
2017-12-31 28.86 5.42 18.00
2017-09-30 28.16 6.35 17.35
2017-06-30 27.64 6.26 16.88
2017-03-31 27.15 6.17 16.34
2016-12-31 26.93 6.10 16.08
2016-09-30 26.45 5.62 15.95
2016-06-30 26.34 5.49 15.96
2016-03-31 26.84 5.97 16.04
2015-12-31 25.88 5.81 15.72
2015-09-30 26.38 5.86 15.69
2015-06-30 26.11 5.63 15.70
2015-03-31 25.08 4.90 15.28
2014-12-31 24.91 4.79 15.20
2014-09-30 24.80 4.70 15.08
2014-06-30 24.63 4.61 15.14
2014-03-31 24.58 4.55 15.29
2013-12-31 24.25 4.50 15.46
2013-09-30 24.09 4.51 15.33
2013-06-30 23.76 4.46 14.99
2013-03-31 23.21 4.40 14.61
2012-12-31 23.01 4.35 14.40
2012-09-30 23.09 4.19 14.22

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Southern Michigan Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Southern Michigan Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Southern Michigan Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Southern Michigan Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Southern Michigan Bancorp has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SOMC Health

 How is Southern Michigan Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Southern Michigan Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Southern Michigan Bancorp Company Filings, last reported 3 months ago.

OTCPK:SOMC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 77.29 47.09 87.26
2018-12-31 75.53 49.00 55.81
2018-09-30 73.49 48.81 81.10
2018-06-30 71.83 54.81 37.28
2018-03-31 70.06 47.03 31.31
2017-12-31 70.04 58.61 35.91
2017-09-30 70.31 57.92 59.20
2017-06-30 68.93 46.77 23.65
2017-03-31 71.57 28.18 40.36
2016-12-31 70.13 28.67 34.81
2016-09-30 70.86 28.21 41.03
2016-06-30 69.82 26.81 33.00
2016-03-31 68.97 26.51 40.20
2015-12-31 67.77 31.10 20.43
2015-09-30 63.62 32.43 37.15
2015-06-30 62.06 28.65 17.69
2015-03-31 60.88 29.86 23.75
2014-12-31 63.16 29.80 15.62
2014-09-30 59.40 17.67 16.08
2014-06-30 58.56 24.03 19.97
2014-03-31 57.56 19.10 66.57
2013-12-31 56.83 23.63 12.69
2013-09-30 56.04 23.73 46.48
2013-06-30 55.36 19.59 33.53
2013-03-31 55.31 20.43 49.87
2012-12-31 54.64 22.33 14.26
2012-09-30 54.33 23.78 44.34
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Southern Michigan Bancorp has an acceptable proportion of non-loan assets held.
  • Southern Michigan Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at Southern Michigan Bancorp are broadly funded by customer deposits.
  • Southern Michigan Bancorp's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Southern Michigan Bancorp has a low allowance for bad loans.
  • Southern Michigan Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Southern Michigan Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Southern Michigan Bancorp has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SOMC Dividends

 What is Southern Michigan Bancorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.48%
Current annual income from Southern Michigan Bancorp dividends.
If you bought $2,000 of Southern Michigan Bancorp shares you are expected to receive $50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Southern Michigan Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Southern Michigan Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:SOMC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 480 Stocks 3.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:SOMC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-09 0.920 2.472
2019-03-27 0.880 2.299
2018-12-19 0.880 2.321
2018-09-26 0.880 2.231
2018-05-11 0.880 2.303
2018-03-21 0.840 2.307
2017-12-19 0.840 2.203
2017-09-19 0.840 2.432
2017-05-15 0.840 2.501
2017-03-21 0.800 2.344
2016-12-20 0.800 2.485
2016-09-21 0.800 2.947
2016-06-21 0.720 2.770
2016-03-23 0.720 2.820
2015-12-22 0.640 2.547
2015-09-23 0.640 2.589
2015-05-08 0.640 2.739
2015-03-24 0.600 2.686
2014-12-29 0.600 2.708
2014-09-23 0.600 2.948
2014-05-09 0.600 3.172
2014-03-24 0.520 2.909
2013-12-24 0.520 2.973
2013-09-25 0.520 3.097
2013-06-18 0.480 2.795
2013-03-19 0.480 2.712
2012-12-31 0.480 2.808
2012-11-14 0.360 2.363
2012-11-05 0.360 2.603
2012-06-20 0.360 2.602
2012-03-20 0.280 2.068
2011-12-20 0.280 2.399
2011-09-27 0.200 1.705
2011-06-21 0.200 1.617
2011-03-22 0.200 1.640
2010-12-17 0.200 1.585
2010-09-24 0.200 1.621
2010-06-17 0.200 1.702
2010-03-17 0.200 1.827
2009-12-21 0.200 1.987
2009-09-17 0.200 2.186
2009-07-06 0.200 2.591
2009-03-24 0.200 2.999
2008-12-17 0.800 11.854
2008-09-18 0.800 7.200

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Southern Michigan Bancorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Southern Michigan Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Southern Michigan Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Southern Michigan Bancorp has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SOMC Management

 What is the CEO of Southern Michigan Bancorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Castle
COMPENSATION $405,248
AGE 62
TENURE AS CEO 17 years
CEO Bio

Mr. John H. Castle has been a Director of Southern Michigan Bancorp, Inc. (“Southern”) and Southern Michigan Bank & Trust (“Southern Michigan Bank”) since 2002. Mr. Castle is Chairman of the Board and Chief Executive Officer of Southern and Southern Michigan Bank. He serves on the Kellogg Community College Audit Committee and the Economic Development Corporation of the City of Coldwater. Mr. Castle formerly served as Chairman of the Kellogg Community College Foundation, Chairman of the Community Health Center Foundation, now known as ProMedica Coldwater Regional Hospital Foundation, Trustee of the Community Health Center of Branch County, now known as ProMedica Coldwater Regional Hospital, Chairman of the City of Coldwater Downtown Development Authority and Treasurer of the Branch Area Food Pantry.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • Insufficient data for John to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Southern Michigan Bancorp management team in years:

17
Average Tenure
62
Average Age
  • The average tenure for the Southern Michigan Bancorp management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Castle

TITLE
Chairman & CEO
COMPENSATION
$405K
AGE
62
TENURE
17 yrs

Kurt Miller

TITLE
President
COMPENSATION
$335K
AGE
63
TENURE
17 yrs

Danice Chartrand

TITLE
Senior VP
COMPENSATION
$197K
AGE
52
TENURE
16.5 yrs

Jaylen Johnson

TITLE
Executive VP & Secretary
COMPENSATION
$116K
AGE
76

Jamie Clark

TITLE
Director
AGE
48

Rick Feller

TITLE
VP of Retail Loans

Nick Grabowski

TITLE
Executive VP & Head of Lending

Steve Todd

TITLE
Vice President of Commercial Loans - Southern Michigan Bank & Trust

Trisha Clark

TITLE
VP of Risk Mgmt & Risk Mgmt Officer of Southern Michigan Bank & Trust

Eric Romzek

TITLE
Head of IT - Southern Michigan Bank & Trust and First VP of IT - Southern Michigan Bank & Trust
Board of Directors Tenure

Average tenure and age of the Southern Michigan Bancorp board of directors in years:

17.3
Average Tenure
66.5
Average Age
  • The average tenure for the Southern Michigan Bancorp board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

John Castle

TITLE
Chairman & CEO
COMPENSATION
$405K
AGE
62
TENURE
17 yrs

Kurt Miller

TITLE
President
COMPENSATION
$335K
AGE
63
TENURE
17.5 yrs

Jamie Clark

TITLE
Director
AGE
48
TENURE
4.6 yrs

Ken Cole

TITLE
Director
COMPENSATION
$19K
AGE
70
TENURE
21.5 yrs

Rick Hooker

TITLE
Director
COMPENSATION
$18K
AGE
67
TENURE
28.5 yrs

Gary Hart

TITLE
Director
COMPENSATION
$18K
AGE
66
TENURE
14.6 yrs

Freeman Riddle

TITLE
Director
COMPENSATION
$17K
AGE
86
TENURE
37.5 yrs

Greg Hull

TITLE
Honorary Director
COMPENSATION
$18K
AGE
71

Tom Kolassa

TITLE
Honorary Director
COMPENSATION
$17K
AGE
72

Donald Labrecque

TITLE
Director and Director of Southern Michigan Bank & Trust
COMPENSATION
$18K
AGE
61
TENURE
14.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Southern Michigan Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Southern Michigan Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SOMC News

Simply Wall St News

SOMC Company Info

Description

Southern Michigan Bancorp, Inc. operates as the bank holding company for Southern Michigan Bank & Trust that provides a range of commercial banking services to individuals, businesses, institutions, and governmental agencies primarily in the southern Michigan communities. Its deposit products include interest and non-interest checking, passbook savings, and various types of money market accounts; time, savings, and demand deposits; and certificates of deposit. The company also provides home mortgages, equity loans, and personal loans; business loans, such as lines of credit, term loans, commercial real estate loans, agriculture loans, letters of credit, small business administration loans, and capital access loans; industrial, construction, real estate, and inventory loans; and consumer lending products comprising direct and indirect loans to purchasers of residential real property and consumer goods. In addition, it offers trust and investment services that include investment management, trustee, individual retirement account rollovers and retirement plan, institutional and personal custody, estate settlement, wealth management, estate and wealth transfer planning assistance, charitable gift planning assistance, and cash management custody services; and safe deposit box and automated teller machine services. Further, the company provides online and mobile banking, bill pay, e-statements, health savings account, business succession planning, life insurance, and remote deposit capture services, as well as payroll, prepaid, gift, and credit cards. It operates through a network of 14 banking offices located in Battle Creek, Camden, Centreville, Coldwater, Constantine, Hillsdale, Marshall, Mendon, Portage, Tekonsha, Three Rivers, and Union City, Michigan. The company was founded in 1871 and is based in Coldwater, Michigan.

Details
Name: Southern Michigan Bancorp, Inc.
SOMC
Exchange: OTCPK
Founded: 1871
$85,990,287
2,314,678
Website: http://www.smb-t.com
Address: Southern Michigan Bancorp, Inc.
51 West Pearl Street,
PO Box 309,
Coldwater,
Michigan, 49036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OTCPK SOMC Common Stock Pink Sheets LLC US USD 18. Aug 1995
Number of employees
Current staff
Staff numbers
0
Southern Michigan Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 02:16
End of day share price update: 2019/07/17 00:00
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.