Sturgis Bancorp, Inc. Reports Financial Results for First Quarter 2026

STURGIS, MI / ACCESS Newswire / April 22, 2026 / Sturgis Bancorp, Inc. (OTCQX:STBI) today reported for the first quarter of 2026:

Tier 1 Capital
The Bank maintained strong capital ratios, exceeding well capitalized requirements, with Tier 1 leverage capital at 8.08%.

Key Quarterly Highlights

• Net income was $1.9 million.

• Earnings per share of $0.88.

• Paid dividend of $0.18 per share.

• Total assets increased to $1.0 billion.

• Deposits increased to $908 million.

From Jason J. Hyska, Sturgis Bancorp, Inc. Chief Executive Officer
"The Bank had a solid first quarter. Earnings growth and tax equivalent net interest margin are up in 1Q26 compared to 1Q25, while credit quality remains on solid footing. 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 (1Q26) was $1.9 million, a decrease from last quarter's (4Q25) $2.0 million, while increasing from the same quarter of the prior year's (1Q25) $1.4 million.

• Earnings per share were $0.88 for 1Q26, $0.93 for 4Q25, and $0.67 for 1Q25.

• Tax equivalent net interest margin increased to 3.70% for 1Q26 from 3.66% for 4Q25, and from 3.53% for 1Q25.

• Net interest income after the provision for credit losses was $8.5 million during 1Q26, a 3.13% decrease from 4Q25's $8.8 million. This was an 8.10% increase from 1Q25's $7.9 million. These fluctuations were primarily due to:

  • Credit loss expense of $121,000 in 1Q26, compared to a reversal of the provision for credit loss of ($279,000) in 4Q25; and

  • Total interest and dividend income of $12.7 million in 1Q26, compared to $12.0 million in 1Q25.

• Noninterest income totaled $2.3 million during 1Q26, a 13.55% decrease from 4Q25's $2.7 million. This was a 7.25% increase from 1Q25's $2.2 million. The decrease in 1Q26 from the prior quarter was primarily due to:

  • The sale of real estate at a gain of $311,000 recognized in 4Q25, reported as a component of other income, while there were no such sales in 1Q26.

• Noninterest expenses totaled $8.5 million during 1Q26, a 6.03% decrease from 4Q25's $9.0 million. This was a 2.20% increase from 1Q25's $8.3 million. The decrease in 1Q26 from the prior quarter was primarily due to:

  • Data processing costs of $172,000 in 1Q26, compared to $345,000 in 4Q25 as the result of renegotiated service contracts.

Balance Sheet Highlights

• Total assets increased to $1.0 billion at the end of 1Q26. This was a 1.62% increase from the end of 4Q25's balance of $999 million and a 5.80% increase from the end of 1Q25's balance of $959 million. These increases were primarily due to:

  • Cash and cash equivalents increased to $53.6 million at the end of 1Q26, compared to $41.4 million at the end of 4Q25, and $28.6 million at the end of 1Q25; and

  • Loans, net of allowance ended 1Q26 at $786 million, compared to $780 million at the end of 4Q25, and $764 million at the end of 1Q25.

• Total deposits increased to $908 million at the end of 1Q26, compared to $885 million at the end of 4Q25, and $842 million at the end of 1Q25.

• Subordinated debentures were paid in full as of the end of 4Q25, while having a balance of $14.9 million at the end of 1Q25.

• Total equity at the end of 1Q26 was $64.7 million, compared to $63.3 million at the end of 4Q25, and $57.2 million at the end of 1Q25.

• Book value per share was $29.78 ($25.68 tangible) at the end of 1Q26, compared to $29.17 ($25.07 tangible) at the end of 4Q25, and $26.47 ($22.31 tangible) at the end of 1Q25.

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 - [phone]

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Amounts in thousands, except share and per share data)

		Three Months Ended
		Mar 31,				Dec 31,				Mar 31,
		2026				2025				2025
		1Q26				4Q25				1Q25
Interest and dividend income
Loans, including fees		$	11,220			$	11,369			$	10,931
Taxable securities			1,273				1,074				826
Tax-exempt securities			38				38				39
Dividend income on securities			208				208				212
Total interest and dividend income			12,739				12,689				12,008
Interest expense
Deposits			3,698				3,803				3,661
Borrowed funds			413				384				636
Total interest expense			4,111				4,187				4,297
Net interest income			8,628				8,502				7,711
Credit loss expense (reversal)			121				(279	)			(158	)
Net interest income, after credit loss expense (reversal)			8,507				8,781				7,869
Noninterest income
Service charges on deposits and other fees			358				339				319
Interchange income			332				364				316
Investment brokerage commission income			787				829				699
Mortgage banking activities			340				392				450
Trust fee income			69				122				98
Earnings on cash value of bank-owned life insurance			115				116				105
Gain on sale of real estate owned, net			-				-				1
Proportionate net income from unconsolidated subsidiaries			233				130				171
Other income			98				406				15
Total noninterest income			2,332				2,698				2,174
Noninterest expenses
Compensation and benefits			5,083				5,134				4,983
Occupancy and equipment			1,240				1,291				1,131
Interchange expenses			202				219				182
Data processing			172				345				348
Professional services			176				192				189
Advertising			240				308				218
FDIC premiums			178				209				176
Other expenses			1,170				1,307				1,051
Total noninterest expenses			8,461				9,005				8,278
Income before income taxes			2,378				2,474				1,765
Income tax expense			466				464				319
Net income		$	1,912			$	2,010			$	1,446
Earnings per share		$	0.88			$	0.93			$	0.67
Dividends per share		$	0.18			$	0.17			$	0.17

CONSOLIDATED BALANCE SHEETS
(Unaudited - Dollar amounts in thousands except per share data)

		Mar 31,				Dec 31,				Mar 31,
		2026				2025				2025
		1Q26				4Q25				1Q25
ASSETS
Cash and cash equivalents
Cash and due from financial institutions		$	11,908			$	10,645			$	12,248
Other short-term investments			41,677				30,753				16,349
Total cash and cash equivalents			53,585				41,398				28,597
Debt securities available-for-sale			84,910				85,605				76,938
Debt securities held-to-maturity			18,058				18,256				19,066
Federal Home Loan Bank stock			9,786				9,786				9,786
Loans held for sale			3,806				4,603				2,442
Loans, net of allowance for credit losses of $9,075, $9,012,
and $9,108 at 1Q26, 4Q25, and 1Q25, respectively			785,920				779,923				764,100
Mortgage servicing rights			3,084				3,055				3,163
Real estate owned, net			821				804				333
Premises and equipment, net			18,488				18,661				19,440
Goodwill			5,834				5,834				5,834
Bank-owned life insurance			15,953				15,839				15,507
Accrued interest receivable			3,709				3,428				3,539
Other assets			10,917				11,472				10,456
Total assets		$	1,014,871			$	998,664			$	959,201
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing		$	164,883			$	166,052			$	160,600
Interest-bearing			743,498				718,602				681,880
Total deposits			908,381				884,654				842,480
Federal Home Loan Bank advances and other borrowings			30,687				30,681				34,680
Subordinated debentures			-				-				14,939
Accrued interest payable			1,776				1,850				1,928
Other liabilities			9,363				18,223				7,959
Total liabilities			950,207				935,408				901,986
Stockholders' equity
Common stock - $1 par value: authorized - 9,000,000 shares;
issued and outstanding - 2,171,041 shares at 1Q26,
2,168,491 shares at 4Q25, and 2,161,441 shares at 1Q25			2,171				2,168				2,161
Additional paid-in capital			8,926				8,867				8,737
Retained earnings			60,907				59,385				54,478
Accumulated other comprehensive income (loss)			(7,340	)			(7,164	)			(8,161	)
Total stockholders' equity			64,664				63,256				57,215
Total liabilities and stockholders' equity		$	1,014,871			$	998,664			$	959,201

SOURCE: Sturgis Bancorp, Inc.

View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/sturgis-bancorp-inc.-reports-financial-results-for-first-quarter-202-1159967