Sturgis Bancorp, Inc. Reports Financial Results for Second Quarter 2025
Sturgis Bancorp (OTCQX:STBI) reported strong Q2 2025 financial results with net income of $1.6 million, up from $1.4 million in Q1 2025 and $1.3 million in Q2 2024. The bank achieved earnings per share of $0.76 and maintained a quarterly dividend of $0.17 per share.
Key performance metrics include net interest margin growth to 3.62%, an increase in total assets to $985 million, and deposit growth of $40.0 million to $882 million. The bank successfully reduced wholesale funding, with FHLB advances and brokered CDs decreasing by $45.4 million and $17.0 million year-to-date, respectively. The institution maintains strong capital ratios with Tier 1 leverage capital at 8.00%.
Sturgis Bancorp (OTCQX:STBI) ha riportato solidi risultati finanziari nel secondo trimestre 2025 con un utile netto di 1,6 milioni di dollari, in aumento rispetto a 1,4 milioni nel primo trimestre 2025 e 1,3 milioni nel secondo trimestre 2024. La banca ha registrato un utile per azione di 0,76 dollari e ha mantenuto un dividendo trimestrale di 0,17 dollari per azione.
I principali indicatori di performance includono una crescita del margine di interesse netto al 3,62%, un aumento degli attivi totali a 985 milioni di dollari e una crescita dei depositi di 40,0 milioni di dollari, raggiungendo 882 milioni. La banca ha ridotto con successo il finanziamento all鈥檌ngrosso, con un calo degli anticipi FHLB e dei certificati di deposito negoziati rispettivamente di 45,4 milioni e 17,0 milioni di dollari da inizio anno. L鈥檌stituto mantiene solidi rapporti patrimoniali con un capitale Tier 1 leverage all鈥�8,00%.
Sturgis Bancorp (OTCQX:STBI) report贸 s贸lidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 1,6 millones de d贸lares, superior a los 1,4 millones del primer trimestre de 2025 y a los 1,3 millones del segundo trimestre de 2024. El banco logr贸 un beneficio por acci贸n de 0,76 d贸lares y mantuvo un dividendo trimestral de 0,17 d贸lares por acci贸n.
Las m茅tricas clave de desempe帽o incluyen un crecimiento del margen de inter茅s neto al 3,62%, un aumento de los activos totales a 985 millones de d贸lares y un crecimiento de dep贸sitos de 40,0 millones de d贸lares, alcanzando 882 millones. El banco redujo con 茅xito el financiamiento mayorista, con avances FHLB y certificados de dep贸sito negociados disminuyendo en 45,4 millones y 17,0 millones de d贸lares respectivamente en lo que va del a帽o. La instituci贸n mantiene s贸lidos 铆ndices de capital con un capital de apalancamiento Tier 1 del 8,00%.
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欤检殧 靹标臣 歆�響滊電� 靾滌澊鞛愲歆勳澊 3.62%搿� 歃濌皜頄堦碃, 齑濎瀽靷办潃 9鞏� 8,500毵� 雼煬搿� 電橃棃鞙茧┌, 鞓堦笀鞚� 4,000毵� 雼煬 歃濌皜頃� 8鞏� 8,200毵� 雼煬鞐� 雼枅鞀惦媹雼�. 鞚�頄夓潃 霃勲Г 鞛愱笀 臁半嫭鞚� 靹标车鞝侅溂搿� 欷勳榾鞙茧┌, FHLB 靹犼笁旮堦臣 欷戧皽 CD臧� 臧侁皝 鞐办磮 雽�牍� 4,540毵� 雼煬鞕� 1,700毵� 雼煬 臧愳唽頄堨姷雼堧嫟. 旮瓣磤鞚� Tier 1 霠堧矂毽 鞛愲掣 牍勳湪 8.00%搿� 臧曤牓頃� 鞛愲掣 牍勳湪鞚� 鞙犾頃橁碃 鞛堨姷雼堧嫟.
Sturgis Bancorp (OTCQX:STBI) a publi茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025 avec un revenu net de 1,6 million de dollars, en hausse par rapport 脿 1,4 million au premier trimestre 2025 et 1,3 million au deuxi猫me trimestre 2024. La banque a r茅alis茅 un b茅n茅fice par action de 0,76 dollar et a maintenu un dividende trimestriel de 0,17 dollar par action.
Les indicateurs cl茅s de performance incluent une croissance de la marge d鈥檌nt茅r锚t nette 脿 3,62%, une augmentation des actifs totaux 脿 985 millions de dollars et une croissance des d茅p么ts de 40,0 millions de dollars, atteignant 882 millions. La banque a r茅ussi 脿 r茅duire le financement de gros, avec des avances FHLB et des certificats de d茅p么t n茅goci茅s en baisse de 45,4 millions et 17,0 millions de dollars respectivement depuis le d茅but de l鈥檃nn茅e. L鈥檌nstitution maintient des ratios de capital solides avec un ratio de capital de levier Tier 1 脿 8,00%.
Sturgis Bancorp (OTCQX:STBI) meldete starke Finanzergebnisse f眉r das zweite Quartal 2025 mit einem Nettoeinkommen von 1,6 Millionen US-Dollar, gegen眉ber 1,4 Millionen im ersten Quartal 2025 und 1,3 Millionen im zweiten Quartal 2024. Die Bank erzielte ein Gewinn je Aktie von 0,76 US-Dollar und behielt eine viertelj盲hrliche Dividende von 0,17 US-Dollar je Aktie bei.
Wichtige Leistungskennzahlen umfassen ein Wachstum der Nettomarge auf 3,62%, eine Steigerung der Gesamtaktiva auf 985 Millionen US-Dollar und ein Einlagenwachstum von 40,0 Millionen US-Dollar auf 882 Millionen. Die Bank konnte die Wholesale-Finanzierung erfolgreich reduzieren, wobei die FHLB-Vorsch眉sse und vermittelte CDs im Jahresverlauf um 45,4 Millionen bzw. 17,0 Millionen US-Dollar zur眉ckgingen. Das Institut h盲lt weiterhin starke Kapitalquoten mit einer Tier 1 Hebelkapitalquote von 8,00%.
- Net income increased to $1.6 million in Q2 2025, up from $1.4 million in Q1 2025
- Net interest margin improved to 3.62%, up 44 basis points year over year
- Total deposits grew by $40.0 million to $882 million
- Successfully reduced wholesale funding dependence with FHLB advances down $45.4 million YTD
- Strong capital position maintained with Tier 1 leverage ratio at 8.00%
- Noninterest expenses increased 10.80% year-over-year to $8.1 million
- Noninterest income decreased 18.34% year-to-date compared to 2024
- Noninterest-bearing deposits decreased from $169 million in Q2 2024 to $165 million
STURGIS, MI / / July 24, 2025 / Sturgis Bancorp, Inc. (OTCQX:STBI) today reported for the second quarter of 2025:
Key Highlights
Net income was
$1.6 million .Earnings per share of
$0.76 .Net interest margin grew to
3.62% . This is an increase of 11 basis points quarter over quarter, and 44 basis points year over year.Paid dividend of
$0.17 per share.Total assets increased to
$985 million .Deposits increased by
$40.0 million to$882 million .FHLB advances and brokered CDs decreased by
$45.4 million and$17.0 million year-to-date, respectively.The Bank maintained strong capital ratios, exceeding "well capitalized" requirements, with Tier 1 leverage capital at
8.00% .
From Jason J. Hyska, Sturgis Bancorp, Inc. Chief Executive Officer
"The Bank enjoyed another solid quarter with core earnings growing and a focus on the Strategic initiative to decrease wholesale funds and increase core deposit gathering. That is evident in both our NIM and our deposit growth year to date. The focus on relationship banking continues to highlight the Bank's areas of growth and positions us positively for the remainder of 2025. We remain cautiously optimistic about the future as there are still many economic uncertainties in the current environment."
Quarterly Income Statement Highlights
Net income for the quarter (2Q25) was
$1.6 million , up from last quarter's (1Q25)$1.4 million net income and up from$1.3 million net income for the same quarter of the prior year (2Q24).The increase in net income from 1Q25 was due to a decrease in compensation and benefits.
The increase in net income from 2Q24 was due to the net effect of the following fluctuations:
An increase in net interest income, increasing net income by
$1.2 million ;An increase in compensation and benefits, reducing net income by
$418,000 ; andAn increase in other noninterest expenses, reducing net income by
$370,000.
Earnings per share were
$0.76 for 2Q25,$0.67 for 1Q25, and$0.60 for 2Q24.Net interest income was
$7.9 ($7.94 2) million during 2Q25, a0.93% increase from 1Q25's$7.9 ($7.86 9) million. This was also an18.98% increase from 2Q24's$6.7 million .The increase in net interest from 2Q24 was due to the following fluctuations:
An increase in total interest and dividend income of
$740,000 ; andA decrease in total interest expense of
$479,000.
Net interest margin increased to
3.62% for 2Q25 from3.51% for 1Q25 and3.18% for 2Q24.During 2Q25,
$117,000 was provided to the allowance for credit losses, based on historic loss updates, qualitative factor adjustments and required reserves. During 1Q25, there was a reversal of the allowance of$158,000 , while$165,000 was provided to the allowance for credit losses in 2Q24.Noninterest income has stayed relatively constant with
$2.2 million recorded each quarter for 2Q25, 1Q25, and 2Q24.Noninterest expenses totaled
$8.1 million during 2Q25, a2.34% decrease from 1Q25's$8.3 million , and a10.80% increase from 2Q24's$7.3 million . These changes were primarily the result of fluctuations in compensation and benefits. Compensation and benefits were$4.8 million in 2Q25, compared to$5.0 million in 1Q25, and$4.3 million in 2Q24.
Year-to-Date Income Statement Highlights
Net income for the first six months of 2025 (YTD 2025) was
$3.1 million , compared to a net loss of$(673,000) for the first six months of 2024 (YTD 2024), as further discussed below.Earnings (loss) per share were
$1.43 for YTD 2025 and$(0.31) for YTD 2024.Net interest income was
$15.8 million for YTD 2025, a15.67% increase from YTD 2024's$13.6 million . This increase was due to:Total interest and dividend income of
$24.3 million for YTD 2025, compared to$22.7 million for YTD 2024; andTotal interest expense of
$8.5 million for YTD 2025, compared to$9.1 million for YTD 2024.
There has been a reversal of the allowance for credit losses of
$41,000 for YTD 2025, while$4.8 million was provided to the allowance for credit losses in YTD 2024. This difference is primarily due to a one-time charge-off of one customer's loans totaling$5.5 million which occurred in 1Q24.Noninterest income totaled
$4.3 million for YTD 2025, compared to$5.3 million for YTD 2024. This is an18.34% decrease. This difference was primarily due to a$1.1 million gain on termination of interest rate swaps in YTD 2024, with no such gains or losses on termination of interest rate swaps in YTD 2025.Noninterest expenses totaled
$16.4 million for YTD 2025, compared to$15.1 million for YTD 2024. This is an8.27% increase. This increase was due to:Compensation and benefits of
$9.7 million for YTD 2025, compared to$8.9 million for YTD 2024; andOther noninterest expenses totaled
$6.6 million for YTD 2025, compared to$6.2 million for YTD 2024.
Balance Sheet Highlights
Total assets increased to
$985 million as of the end of 2Q25, a2.69% increase from the end of 1Q25's$959 million , and a4.52% increase from the end of 2Q24's$942 million . These increases were comprised of:Cash and cash equivalents ended 2Q25 at
$39.0 million , compared to$28.6 million at the end of 1Q25, and$21.1 million at the end of 2Q24; andNet loans ended 2Q25 at
$778 million , compared to$764 million at the end of 1Q25, and$753 million at the end of 2Q24.
Total deposits at the end of 2Q25 were
$882 million , compared to$842 million at the end of 1Q25, and$800 million at the end of 2Q24. These increases were comprised of:Noninterest-bearing deposits increased to
$165 million at the end of 2Q25, from$161 million at the end of 1Q25, while decreasing from the end of 2Q24's balance of$169 million ; andInterest-bearing deposits increased to
$718 million at the end of 2Q25, from$682 million at the end of 1Q25, and$631 million at the end of 2Q24.
Borrowed funds decreased to
$15.7 million as of the end of 2Q25, from$34.7 million as of the end of 1Q25, and$65.0 million as of the end of 2Q24.Total equity at the end of 2Q25 was
$58.5 million , compared to$57.2 million at the end of 1Q25, and$53.5 million at the end of 2Q24.Book value per share was
$27.06 ($22.93 t angible) at the end of 2Q25, compared to$26.47 ($22.31 t angible) at the end of 1Q25, and$24.81 ($20.66 t angible) at the end of 2Q24.
About Sturgis Bancorp, Inc.
Sturgis Bancorp, Inc. is the holding company for Sturgis Bank & Trust Company (the Bank), and its subsidiaries: Oakleaf Financial Services, Oak Mortgage, Ayres/Oak Insurance, and Oak Title Services. The Bank provides a full array of trust, commercial, and consumer banking services from banking centers in: Sturgis, Bangor, Bronson, Centreville, Climax, Colon, Marshall, Niles, Portage, South Haven, St. Joseph, Three Rivers, and White Pigeon, Michigan. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Oakleaf Mortgage offers residential mortgages in all markets of the Bank. Ayres/Oak Insurance offers various competitive commercial and consumer insurance products. Oak Title Services offers commercial and consumer title insurance services.
Forward-Looking Statements
This release contains statements that constitute forward-looking statements. These statements appear in several places in this release and include statements regarding intent, belief, outlook, objectives, efforts, estimates, or expectations of Sturgis Bancorp, Inc. (Bancorp), primarily with respect to future events and the future financial performance of Bancorp. Any such forward-looking statements are not guarantees of future events or performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements. Factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement include, but are not limited to, changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; government and regulatory policy changes; the outcome of any pending or future litigation and contingencies; trends in consumer behavior and ability to repay loans; and changes in the world, national, and local economies. Bancorp undertakes no obligation to update, amend, or clarify forward-looking statements as a result of new information, future events, or otherwise. The numbers presented herein are unaudited.
For additional information, visit our website at .
Sturgis Bancorp, Inc. Contacts
Jason J. Hyska, CEO & President, or Brian P. Hoggatt, CFO - (269) 651-9345
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Amounts in thousands, except share and per share data)
Three Months Ended | ||||||||||||
Jun 30, | Mar 31, | Jun 30, | ||||||||||
Interest and dividend income | ||||||||||||
Loans (including fees) | $ | 11,221 | $ | 10,931 | $ | 10,524 | ||||||
Investment securities: | ||||||||||||
Taxable | 811 | 826 | 804 | |||||||||
Tax-exempt | 38 | 39 | 39 | |||||||||
Dividends | 210 | 212 | 172 | |||||||||
Total interest and dividend income | 12,280 | 12,008 | 11,539 | |||||||||
Interest expense | ||||||||||||
Deposits | 3,707 | 3,661 | 3,777 | |||||||||
Borrowed funds | 514 | 636 | 922 | |||||||||
Total interest expense | 4,221 | 4,297 | 4,699 | |||||||||
Net interest income | 8,059 | 7,711 | 6,840 | |||||||||
Credit loss expense (benefit) | 117 | (158 | ) | 165 | ||||||||
Net interest income, after credit loss expense | 7,942 | 7,869 | 6,675 | |||||||||
Noninterest income | ||||||||||||
Service charges on deposits and other fees | 334 | 319 | 345 | |||||||||
Interchange income | 364 | 316 | 350 | |||||||||
Investment brokerage commission income | 702 | 699 | 641 | |||||||||
Mortgage banking activitives | 311 | 450 | 487 | |||||||||
Trust fee income | 135 | 98 | 166 | |||||||||
Earnings on cash value of bank-owned life insurance | 107 | 105 | 108 | |||||||||
Gain on sale of real estate owned, net | - | 1 | 26 | |||||||||
Proportionate net income from unconsolidated subsidiaries | 41 | 171 | 61 | |||||||||
Other income | 169 | 15 | 15 | |||||||||
Total noninterest income | 2,163 | 2,174 | 2,199 | |||||||||
Noninterest expenses | ||||||||||||
Compensation and benefits | 4,758 | 4,983 | 4,340 | |||||||||
Occupancy and equipment | 1,137 | 1,131 | 1,029 | |||||||||
Data processing | 378 | 348 | 287 | |||||||||
Interchange expenses | 198 | 182 | 166 | |||||||||
Professional services | 133 | 189 | 120 | |||||||||
Advertising | 255 | 218 | 213 | |||||||||
FDIC premiums | 159 | 176 | 197 | |||||||||
Other expenses | 1,067 | 1,051 | 945 | |||||||||
Total noninterest expenses | 8,085 | 8,278 | 7,297 | |||||||||
Income (loss) before income tax expense (benefit) | 2,020 | 1,765 | 1,577 | |||||||||
Income tax expense (benefit) | 378 | 319 | 280 | |||||||||
Net income (loss) | $ | 1,642 | $ | 1,446 | $ | 1,297 | ||||||
Earnings (loss) per share | $ | 0.76 | $ | 0.67 | $ | 0.60 | ||||||
Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Amounts in thousands, except share and per share data)
Six Months Ended | ||||||||
Jun 30, | Jun 30, | |||||||
Interest and dividend income | ||||||||
Loans (including fees) | $ | 22,151 | $ | 20,734 | ||||
Investment securities: | ||||||||
Taxable | 1,637 | 1,565 | ||||||
Tax-exempt | 77 | 100 | ||||||
Dividends | 423 | 319 | ||||||
Total interest and dividend income | 24,288 | 22,718 | ||||||
Interest expense | ||||||||
Deposits | 7,367 | 7,526 | ||||||
Borrowed funds | 1,151 | 1,558 | ||||||
Total interest expense | 8,518 | 9,084 | ||||||
Net interest income | 15,770 | 13,634 | ||||||
Credit loss expense (benefit) | (41 | ) | 4,828 | |||||
Net interest income, after credit loss expense | 15,811 | 8,806 | ||||||
Noninterest income | ||||||||
Service charges on deposits and other fees | 653 | 680 | ||||||
Interchange income | 680 | 658 | ||||||
Investment brokerage commission income | 1,400 | 1,235 | ||||||
Mortgage banking activities | 761 | 973 | ||||||
Trust fee income | 234 | 253 | ||||||
Earnings on cash value of bank-owned life insurance | 212 | 215 | ||||||
Gain on sale of real estate owned, net | 1 | 28 | ||||||
Gain on termination of interest rate swap | - | 1,070 | ||||||
Proportionate net income from unconsolidated subsidiaries | 212 | 174 | ||||||
Other income | 185 | 26 | ||||||
Total noninterest income | 4,338 | 5,312 | ||||||
Noninterest expenses | ||||||||
Compensation and benefits | 9,741 | 8,909 | ||||||
Occupancy and equipment | 2,268 | 2,093 | ||||||
Data processing | 727 | 577 | ||||||
Interchange expenses | 380 | 332 | ||||||
Professional services | 322 | 290 | ||||||
Advertising | 473 | 413 | ||||||
FDIC premiums | 335 | 378 | ||||||
Other expenses | 2,118 | 2,122 | ||||||
Total noninterest expenses | 16,364 | 15,114 | ||||||
Income (loss) before income tax expense (benefit) | 3,785 | (996 | ) | |||||
Income tax expense (benefit) | 697 | (323 | ) | |||||
Net income (loss) | $ | 3,088 | $ | (673 | ) | |||
Earnings (loss) per share | $ | 1.43 | $ | (0.31 | ) | |||
Dividends per share | $ | 0.34 | $ | 0.34 | ||||
CONSOLIDATED BALANCE SHEETS
(Unaudited - Amounts in thousands, except share and per share data)
Jun 30, | Mar 31, | Jun 30, | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 12,688 | $ | 12,248 | $ | 9,518 | ||||||
Other short-term investments | 26,295 | 16,349 | 11,612 | |||||||||
Total cash and cash equivalents | 38,983 | 28,597 | 21,130 | |||||||||
Securities - available-for-sale | 76,546 | 76,938 | 79,101 | |||||||||
Securities - held-to-maturity | 18,748 | 19,066 | 20,310 | |||||||||
Federal Home Loan Bank stock | 9,786 | 9,786 | 8,563 | |||||||||
Loans held for sale | 3,725 | 2,442 | 2,445 | |||||||||
Loans, net of allowance for credit losses of | ||||||||||||
and | 777,728 | 764,100 | 752,756 | |||||||||
Premises and equipment, net | 19,629 | 19,440 | 18,700 | |||||||||
Goodwill | 5,834 | 5,834 | 5,834 | |||||||||
Mortgage servicing rights | 3,103 | 3,163 | 3,110 | |||||||||
Bank-owned life insurance | 15,614 | 15,507 | 16,047 | |||||||||
Accrued interest receivable | 3,690 | 3,539 | 3,439 | |||||||||
Other assets | 11,617 | 10,789 | 10,984 | |||||||||
Total assets | $ | 985,003 | $ | 959,201 | $ | 942,419 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Liabilities | ||||||||||||
Deposits | ||||||||||||
Noninterest-bearing | $ | 164,532 | $ | 160,600 | $ | 169,000 | ||||||
Interest-bearing | 717,923 | 681,880 | 631,394 | |||||||||
Total deposits | 882,455 | 842,480 | 800,394 | |||||||||
Federal Home Loan Bank advances and other borrowings | 15,680 | 34,680 | 65,000 | |||||||||
Subordinated debentures | 14,959 | 14,939 | 14,877 | |||||||||
Accrued interest payable | 2,039 | 1,928 | 1,870 | |||||||||
Other liabilities | 11,325 | 7,959 | 6,821 | |||||||||
Total liabilities | 926,458 | 901,986 | 888,962 | |||||||||
Stockholders' equity | ||||||||||||
Common stock - | ||||||||||||
issued and outstanding - 2,163,691 shares at 2Q25; | ||||||||||||
2,161,441 shares at 1Q25; and 2,154,691 shares at 2Q24 | 2,164 | 2,161 | 2,155 | |||||||||
Additional paid-in capital | 8,776 | 8,737 | 8,624 | |||||||||
Retained earnings | 55,751 | 54,478 | 50,624 | |||||||||
Accumulated other comprehensive (loss) | (8,146 | ) | (8,161 | ) | (7,946 | ) | ||||||
Total stockholders' equity | 58,545 | 57,215 | 53,457 | |||||||||
Total liabilities and stockholders' equity | $ | 985,003 | $ | 959,201 | $ | 942,419 | ||||||
SOURCE: Sturgis Bancorp, Inc.
View the original on ACCESS Newswire
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