ACCESS Newswire
Sturgis Bancorp, Inc. Reports Financial Results for First Quarter 2025
Sturgis Bancorp, Inc.
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STURGIS, MI / ACCESS Newswire / April 28, 2025 / Sturgis Bancorp, Inc. (OTCQX:STBI) today reported for the first quarter of 2025:

Key Quarterly Highlights

  • Net income was $1.4 million.

  • Earnings per share of $0.67.

  • Net interest margin grew to 3.51%. This is an increase of 19 basis points quarter over quarter, and 34 basis points year over year.

  • Paid dividend of $0.17 per share.

  • Total assets increased to $959 million.

  • Deposits increased to $842 million.

  • The Bank maintained strong capital ratios, exceeding "well capitalized" requirements, with Tier 1 leverage capital at 7.96%.

From Jason J. Hyska, Sturgis Bancorp, Inc. Chief Executive Officer

"The Bank enjoyed a solid first quarter with increases in the margin and a reduction in wholesale funds. We continue to develop relationship banking with a focus on becoming the bank of choice for our new and existing clients. Our success is a testament to our dedicated staff who continue to promote the Bank and ask for business."

"The Bank is cautiously optimistic about the remainder of 2025. There are many economic unknowns currently and we will continue to prudently maneuver as those changes occur."

Quarterly Income Statement Highlights

  • Net income for the quarter (1Q25) was $1.4 million, down from last quarter's (4Q24) $2.0 million net income, while up from the net loss of $(2.0 million) for the same quarter of the prior year (1Q24).

    • The decrease in net income from 4Q24 was due to increases in compensation and benefits.

    • The increase in net income from 1Q24 was due to the net effect of the following fluctuations:

      • A decrease in credit loss expense, increasing net income by $4.8 million;

      • A decrease in noninterest income; reducing net income by $1.0 million; and

      • An increase in compensation and benefits, reducing net income by $400,000.

  • Earnings (loss) per share were $0.67 for 1Q25, $0.91 for 4Q24, and $(0.92) for 1Q24.

  • Net interest income was $7.7 million during 1Q25, a 4.90% increase from 4Q24's $7.4 million. This also is a 13.50% increase from 1Q24's $6.8 million net interest income. The change from the same quarter a year ago was primarily due to interest and dividend income of $12.0 million in 1Q25, compared to $11.2 million in 1Q24.

  • Net interest margin increased to 3.51% for 1Q25 from 3.32% for 4Q24 and 3.17% for 1Q24.

  • During 1Q25, there was a reversal of the allowance for credit losses of $158,000, due to annual historic loss updates, qualitative factor adjustments, and lower required reserves. During 4Q24, there was also a reversal of the allowance of $216,000, while $4.7 million was provided to the allowance for credit losses in 1Q24.

  • Noninterest income totaled $2.2 million during 1Q25, a 9.33% decrease from 4Q24's $2.4 million, and a 30.15% decrease from for 1Q24's $3.1 million.

    • The decrease from 4Q24 was due to lower earnings on bank-owned life insurance.

    • The fluctuation from 1Q24 was primarily due to a gain on termination of interest rate swaps of $1.1 million in 1Q24 with no such gains recognized in 1Q25.

  • Noninterest expenses totaled $8.3 million during 1Q25, an 8.06% increase from 4Q24's $7.7 million, and a 5.86% increase from 1Q24's $7.8 million. These increases were primarily the result of increases in compensation and benefits. Compensation and benefits were $5.0 million in 1Q25, compared to $4.2 million in 4Q24, and $4.6 million in 1Q24.

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