Southern Michigan Bancorp, Inc. announced that it has completed the private placement of $30 million in fixed-to-floating rate subordinated notes due April 16, 2031 (the “Notes”) to certain qualified institutional buyers and accredited investors. Southern intends to use the net proceeds from this placement for retirement of existing debt, support organic growth, and for general corporate purposes. The Notes have been structured to qualify as Tier 2 capital for Southern for regulatory purposes and will bear interest at a fixed rate of 3.75% per annum until April 16, 2026. For the remainder of the term, the subordinated notes, which mature on April 16, 2031, will bear interest at a rate equal to 3-month Secured Overnight Financing Rate (“SOFR”) plus 302 basis points. The subordinated notes are redeemable by the Company at its option, in whole or in part, on or after June 30, 2026, or in whole or in part from time to time under certain other circumstances.