Sturgis Bancorp, Inc. announced its financial results for the second quarter of 2026, showcasing significant growth in net income and maintaining robust capital ratios despite ongoing economic uncertainties.
The bank reported net income of $2.5 million for Q2 2026, representing an increase from $1.9 million in the previous quarter and from $1.6 million during the same period last year. Earnings per share improved to $1.16, up from $0.88 in Q1 2026 and $0.76 in Q2 2025.
Total assets climbed to $1.03 billion, reflecting a 1.47% increase from Q1 2026 and a 4.54% rise compared to Q2 2025. This growth positions Sturgis Bancorp favorably in the competitive banking sector.
While the bank showed strong performance indicators, it reported a decrease in loans, which fell to $755 million due to a $40.1 million sale of residential mortgages. This sale was part of a strategy to enhance the bank's interest rate risk profile.
Additionally, total deposits decreased to $893 million, down from $908 million in Q1 2026 but up from $882 million in Q2 2025. Sturgis Bancorp's management remains cautious as it navigates the uncertain economic landscape, focusing on enhancing customer relationships and expanding service offerings.
Noninterest expenses for the quarter totaled $8.4 million, showing a slight decline from the previous quarter, while compensation and benefits grew to $5.0 million, primarily due to standard wage increases.
Jason J. Hyska, CEO of Sturgis Bancorp, reported a solid performance in Q2 2026 and emphasized the importance of maintaining credit quality amidst changing economic conditions. The bank is committed to relationship banking and expanding its service options across its operational footprint in Michigan.
For the second quarter of 2026, Sturgis Bancorp, Inc. reported earnings per share of $1.16, an increase compared to $0.88 for the first quarter of 2026 and $0.76 for the second quarter of 2025.
In the second quarter of 2026, Sturgis Bancorp, Inc. reported net income of $2.5 million, which was an increase from $1.9 million in the first quarter of 2026 and from $1.6 million in the second quarter of 2025.
Sturgis Bancorp, Inc. maintained strong capital ratios in the second quarter of 2026, with Tier 1 leverage capital at 8.63%, exceeding the well-capitalised requirements.
As of the end of the second quarter of 2026, Sturgis Bancorp, Inc. reported total assets of $1.03 billion and total deposits of $893 million, showing a decrease in deposits from $908 million at the end of the first quarter of 2026.
Sturgis Bancorp, Inc. reported noninterest income of $2.1 million for the second quarter of 2026, representing a 9.59% decrease from the prior quarter's $2.3 million and a 2.54% decrease from the same quarter in 2025.
In the second quarter of 2026, compensation and benefits expenses amounted to $5.0 million, a slight increase from the previous first quarter, contributing to a total noninterest expense of $8.4 million, which was relatively stable compared to the first quarter.
Sturgis Bancorp, Inc. noted potential risks in its forward-looking statements, including changes in interest rates, competition, regulatory changes, and economic conditions that could impact future financial performance.
Sturgis Bancorp, Inc. is the holding company for Sturgis Bank & Trust Company and its subsidiaries, which include Oakleaf Financial Services, Ayres/Oak Insurance, and Oak Title Services.