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

SOURCE: Sturgis Bancorp, Inc.