STURGIS, MI / ACCESS Newswire / July 13, 2026 / Sturgis Bancorp, Inc. (OTCQX:STBI) today reported for the second quarter of 2026:
Tier 1 Capital
The Bank maintained strong capital ratios, exceeding well capitalized requirements, with Tier 1 leverage capital at 8.63%.
Key Quarterly Highlights
Net income was $2.5 million.
Earnings per share of $1.16.
Paid dividend of $0.18 per share.
Total assets increased to $1.03 billion.
From Jason J. Hyska, Sturgis Bancorp, Inc. Chief Executive Officer
"The Bank had a solid second quarter. Earnings growth and tax equivalent net interest margin are up in 2Q26 compared to 2Q25, while credit quality remains on solid footing. The Bank continues to operate cautiously in the growing uncertain economic environment. The focus of the Bank for 2026 remains relationship banking with an emphasis on expanding service offerings to existing customers across the Bank's footprint."
Quarterly Income Statement Highlights
Net income for the quarter (2Q26) was $2.5 million, an increase from both last quarter's (1Q26) $1.9 million and from the same quarter of the prior year's (2Q25) $1.6 million.
Earnings per share were $1.16 for 2Q26, $0.88 for 1Q26, and $0.76 for 2Q25.
Tax equivalent net interest margin increased to 3.77% for 2Q26 from 3.70% for 1Q26, and from 3.64% for 2Q25.
Net interest income after the provision for credit losses was $9.5 million during 2Q26, an 11.13% increase from 1Q26's $8.5 million. This was a 19.03% increase from 2Q25's $7.9 million. These fluctuations were primarily due to:
Total interest and dividend income of $12.8 million in 2Q26, compared to $12.7 million in 1Q26, and $12.3 million in 2Q25.
A reversal of the provision for credit loss of ($688,000) in 2Q26, compared to provision for credit loss expense of $121,000 in 1Q26, and $117,000 in 2Q25. The 2Q26 reversal was substantially related to a $40.1 million sale of residential mortgages.
Noninterest income totaled $2.1 million during 2Q26, a 9.59% decrease from 1Q26's $2.3 million. This was a 2.54% decrease from 2Q25's $2.2 million.
Mortgage banking activities were $242,000 in 2Q26, compared to $340,000 in 1Q26; and
Proportionate net income from unconsolidated subsidiaries was $78,000 in 2Q26, compared to $233,000 in 1Q26.
Noninterest expenses totaled $8.4 million during 2Q26, a 0.49% decrease from 1Q26's $8.5 million. This was a 4.14% increase from 2Q25's $8.1 million. The increase in 2Q26 from 1Q26 was primarily due to:
Compensation and benefits in 2Q26 were $5.0 million, compared to $4.8 million for 2Q25. Most of this difference is attributable to typical wage increases.
Year-to-Date Income Statement Highlights
Net income for the first six months of 2026 (YTD 2026) was $4.4 million compared to $3.1 million for the first six months of 2025 (YTD 2025).
Earnings per share were $2.04 for YTD 2026 and $1.43 for YTD 2025.
Tax equivalent net interest margin was 3.73% for YTD 2026 and 3.58% for YTD 2025.
Net interest income after the provision for credit losses was $18.0 million for YTD 2026, a 13.59% increase from YTD 2025's $15.8 million. This increase was primarily due to:
Total interest and dividend income of $25.5 million for YTD 2026, compared to $24.3 million for YTD 2025.
A reversal of the provision for credit loss of ($566,000) for YTD 2026, compared to a reversal of the provision for credit loss of ($41,000) for YTD 2025.
Noninterest income totaled $4.4 million for YTD 2026, a 2.37% increase from YTD 2025's $4.3 million.
Noninterest expenses totaled $16.9 million for YTD 2026, a 3.16% increase from YTD 2025's $16.4 million. This increase was primarily due to:
Compensation and benefits of $10.1 million for YTD 2026, compared to $9.7 million for YTD 2026. Most of this difference is attributable to typical wage increases.
Balance Sheet Highlights
Total assets increased to $1.03 billion at the end of 2Q26, a 1.47% increase from the end of 1Q26's $1.01 billion, and a 4.54% increase from the end of 2Q25's $985 million.
Loans, net of allowance for credit losses decreased to $755 million at the end of 2Q26, compared to $786 million at the end of 1Q26 and $778 million at the end of 2Q25. This decrease was due to the aforementioned $40.1 million sale of residential mortgages. The sale enhanced the Bank's interest rate risk profile.
Total deposits decreased to $893 million at the end of 2Q26, compared to $908 million at the end of 1Q26, while deposits increased compared to $882 million at the end of 2Q25.
Subordinated debentures were paid in full as of the end of 4Q25, while having a balance of $15.0 million at the end of 2Q25.
Total equity at the end of 2Q26 was $66.8 million, compared to $64.7 million at the end of 1Q26, and $58.5 million at the end of 2Q25.
Book value per share was $30.73 ($26.41 tangible) at the end of 2Q26, compared to $29.78 ($25.68 tangible) at the end of 1Q26, and $27.06 ($22.93 tangible) at the end of 2Q25.
About Sturgis Bancorp, Inc.
Sturgis Bancorp, Inc. is the holding company for Sturgis Bank & Trust Company (the Bank), and its subsidiaries: Oakleaf Financial Services, 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. 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 www.sturgis.bank.
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, | 2026 2026 2025 | 2Q26 1Q26 2Q25 | Interest and dividend income | Loans, including fees $ 11,356 $ 11,220 $ 11,221 | Taxable securities 1,200 1,273 811 | Tax-exempt securities 39 38 38 | Dividend income on securities 203 208 210 | Total interest and dividend income 12,798 12,739 12,280 | Interest expense | Deposits 3,543 3,698 3,707 | Borrowed funds 490 413 514 | Total interest expense 4,033 4,111 4,221 | Net interest income 8,765 8,628 8,059 | Credit loss expense (reversal) (688 ) 121 117 | Net interest income, after credit loss expense (reversal) 9,453 8,507 7,942 | Noninterest income | Service charges on deposits and other fees 338 358 334 | Interchange income 405 332 364 | Investment brokerage commission income 814 787 702 | Mortgage banking activities 242 340 311 | Trust fee income 50 69 135 | Earnings on cash value of bank-owned life insurance 117 115 107 | Proportionate net income from unconsolidated subsidiaries 78 233 41 | Other income 64 98 169 | Total noninterest income 2,108 2,332 2,163 | Noninterest expenses | Compensation and benefits 4,991 5,083 4,758 | Occupancy and equipment 1,187 1,240 1,137 | Interchange expenses 201 202 198 | Data processing 184 172 378 | Professional services 165 176 133 | Advertising 285 240 255 | FDIC premiums 193 178 159 | Other expenses 1,213 1,170 1,067 | Total noninterest expenses 8,419 8,461 8,085 | Income before income taxes 3,142 2,378 2,020 | Income tax expense 621 466 378 | Net income $ 2,521 $ 1,912 $ 1,642 | Earnings (loss) per share $ 1.16 $ 0.88 $ 0.76 | Dividends per share $ 0.18 $ 0.18 $ 0.17 |
CONSOLIDATED STATEMENTS OF INCOME | (Unaudited - Amounts in thousands, except share and per share data) | Six Months Ended | Jun 30, Jun 30, | 2026 2025 | 2Q26 2Q25 | Interest and dividend income | Loans, including fees $ 22,576 $ 22,151 | Taxable securities 2,473 1,637 | Tax-exempt securities 77 77 | Dividend income on securities 411 423 | Total interest and dividend income 25,537 24,288 | Interest expense | Deposits 7,241 7,367 | Borrowed funds 902 1,151 | Total interest expense 8,143 8,518 | Net interest income 17,394 15,770 | Credit loss expense (reversal) (566 ) (41 ) | Net interest income, after credit loss expense (reversal) 17,960 15,811 | Noninterest income | Service charges on deposits and other fees 696 653 | Interchange income 737 680 | Investment brokerage commission income 1,601 1,400 | Mortgage banking activities 583 761 | Trust fee income 119 234 | Earnings on cash value of bank-owned life insurance 232 212 | Gain on sale of real estate owned, net - 1 | Proportionate net income from unconsolidated subsidiaries 312 212 | Other income 161 185 | Total noninterest income 4,441 4,338 | Noninterest expenses | Compensation and benefits 10,074 9,741 | Occupancy and equipment 2,427 2,268 | Interchange expenses 403 380 | Data processing 356 727 | Professional services 341 322 | Advertising 526 473 | FDIC premiums 371 335 | Other expenses 2,383 2,118 | Total noninterest expenses 16,881 16,364 | Income before income taxes 5,520 3,785 | Income tax expense 1,087 697 | Net income (loss) $ 4,433 $ 3,088 | Earnings (loss) per share $ 2.04 $ 1.43 | Dividends per share $ 0.36 $ 0.34 |
CONSOLIDATED BALANCE SHEETS | (Unaudited - Amounts in thousands, except share and per share data) | Jun 30, Mar 31, Jun 30, | 2026 2026 2025 | 2Q26 1Q26 2Q25 | ASSETS | Cash and cash equivalents | Cash and due from financial institutions $ 11,292 $ 11,908 $ 12,688 | Other short-term investments 53,856 41,677 26,295 | Total cash and cash equivalents 65,148 53,585 38,983 | Debt securities available-for-sale 112,577 84,910 76,546 | Debt securities held-to-maturity 17,832 18,058 18,748 | Federal Home Loan Bank stock 9,786 9,786 9,786 | Loans held for sale 5,256 3,806 3,725 | Loans, net of allowance for credit losses of $8,435; $9,075; | and $9,254 at 2Q26; 1Q26; and 2Q25, respectively 755,118 785,920 777,728 | Mortgage servicing rights 3,567 3,084 3,103 | Real estate owned, net 4,068 821 335 | Premises and equipment, net 18,222 18,488 19,629 | Goodwill 5,834 5,834 5,834 | Bank-owned life insurance 16,071 15,953 15,614 | Accrued interest receivable 3,604 3,709 3,690 | Other assets 12,676 10,917 11,282 | Total assets $ 1,029,759 $ 1,014,871 $ 985,003 | LIABILITIES AND STOCKHOLDERS' EQUITY | Liabilities | Deposits | Noninterest-bearing $ 175,449 $ 164,883 $ 164,532 | Interest-bearing 717,465 743,498 717,923 | Total deposits 892,914 908,381 882,455 | Federal Home Loan Bank advances and other borrowings 56,620 30,687 15,680 | Subordinated debentures - - 14,959 | Accrued interest payable 2,165 1,776 2,039 | Other liabilities 11,256 9,363 11,325 | Total liabilities 962,955 950,207 926,458 | Stockholders' equity | Common stock - $1 par value: authorized - 9,000,000 shares; | issued and outstanding - 2,173,791 shares at 2Q26; | 2,171,041 shares at 1Q26; and 2,163,691 shares at 2Q25 2,174 2,171 2,164 | Additional paid-in capital 8,993 8,926 8,776 | Retained earnings 63,037 60,907 55,751 | Accumulated other comprehensive (loss) (7,400 ) (7,340 ) (8,146 ) | Total stockholders' equity 66,804 64,664 58,545 | Total liabilities and stockholders' equity $ 1,029,759 $ 1,014,871 $ 985,003 |
SOURCE: Sturgis Bancorp, Inc.
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