Sturgis Bancorp Inc. Announces Strong Financial Performance and Maintains Record Dividend

In a series of announcements on July 24, 2025, Sturgis Bancorp Inc., the holding company for Sturgis Bank & Trust Company, has shared positive financial results and reaffirmed its commitment to shareholder returns. The company, which operates through various subsidiaries including Oakleaf Financial Services, Oak Mortgage, Ayres/Oak Insurance, and Oak Title Services, continues to serve families and small businesses across Michigan with a comprehensive suite of financial services.

Quarterly Dividend Declaration

Sturgis Bancorp Inc. declared a quarterly cash dividend of $0.17 per common share, payable on September 15, 2025, to stockholders of record as of August 15, 2025. This dividend maintains the highest level in the company’s history, reflecting its strong financial position and commitment to returning value to shareholders. The announcement was echoed across multiple financial news platforms, including OTC Markets and Stock Titan, highlighting the company’s consistent dividend policy.

Financial Highlights for Q2 2025

The company reported robust financial results for the second quarter of 2025. Key highlights include:

  • Net Income: Sturgis Bancorp achieved a net income of $1.6 million, demonstrating solid profitability.
  • Earnings Per Share: The earnings per share stood at $0.76, indicating strong earnings performance.
  • Net Interest Margin: The net interest margin grew to 3.62%, marking an increase of 11 basis points from the previous quarter and 44 basis points year over year. This growth is a testament to the bank’s strategic focus on enhancing its core deposit gathering and reducing reliance on wholesale funds.
  • Asset Growth: Total assets increased to $985 million, with deposits rising by $40.0 million to $882 million. This growth in deposits underscores the bank’s ability to attract and retain customer funds.
  • Capital Ratios: The bank maintained strong capital ratios, exceeding “well capitalized” requirements, with Tier 1 leverage capital at 8.00%.

Strategic Initiatives and Outlook

Jason J. Hyska, Chief Executive Officer of Sturgis Bancorp, expressed satisfaction with the bank’s performance, noting the solid quarter driven by core earnings growth and strategic initiatives aimed at decreasing wholesale funds and increasing core deposit gathering. The bank’s focus on these areas is evident in both its net interest margin and deposit growth year to date.

Conclusion

Sturgis Bancorp Inc.’s recent announcements reflect a company that is not only financially robust but also strategically focused on sustainable growth and shareholder value. With a strong balance sheet, a commitment to maintaining its record dividend, and strategic initiatives aimed at enhancing its financial performance, Sturgis Bancorp is well-positioned for continued success in the competitive financial services industry.