Southern Michigan Bancorp, Coldwater, which operates three slightly different “Southern Michigan Bank” brands, earned $1.8 million in the second quarter compared to $2.3 million for the second quarter of 2019. The $825 million bank group was also buoyed by an injection of PPP funds.
“During these challenging times created by the COVID-19 pandemic, we provided temporary relief to both our commercial and retail customers by modifying over 350 loans since the start of the pandemic,” John H. Castle, chair and CEO, told investors. “In addition, we were able to process 660 Paycheck Protection Program loans during the second quarter totaling more than $75 million. The ability of our customers to retain jobs was vital to the sustainability of those businesses, as well as for the employees and their families. PPP also allowed us to positively impact many other businesses from within and outside of our market area as well.
“This program resulted in significant loan and deposit growth during the second quarter. During the remainder of this year we will be working with these customers as they apply for PPP loan forgiveness.”