Isabella Bank Corporation Reports Strong First Quarter 2026 Earnings
Rhea-AI Summary
Isabella Bank Corporation (Nasdaq:ISBA) reported Q1 2026 net income of $5.0 million, or $0.68 per diluted share, up from $3.9 million, or $0.53, in Q1 2025. Total assets were $2.3 billion and loans grew to $1.6 billion. NIM improved to 3.33% and deposits rose $40.2 million.
Credit metrics remained strong: nonperforming loans were 0.28% of loans and the ACL was $14.0 million.
AI-generated analysis. Not financial advice.
Positive
- Net income +26% year-over-year to $5.0M
- Net interest margin improved to 3.33%
- Loans grew $22.6M to $1.6B
- Total deposits +$40.2M to $1.9B
- Tangible book value per share $25.32
Negative
- Noninterest expenses increased to $14.7M
- Provision for credit losses of $604,000
- Net unrealized AFS losses $10.6M reduced TBV
News Market Reaction – ISBA
On the day this news was published, ISBA declined 4.35%, reflecting a moderate negative market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $14M from the company's valuation, bringing the market cap to $302.36M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ISBA gained 4.52% while key regional bank peers were mostly negative (e.g., MBCN -2.58%, LCNB -0.66%, PKBK -0.33%), with only FUNC up 2.80%, suggesting a stock-specific response to earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 27 | Q3 2025 earnings | Positive | -1.0% | Q3 2025 net income growth, higher NIM, deposits near $1.93B. |
| Jul 24 | Q2 2025 earnings | Positive | -0.7% | Strong Q2 2025 results with higher net income and improved NIM. |
| Apr 17 | Q1 2025 earnings | Positive | +5.3% | Q1 2025 net income up year over year and margin expansion. |
| Jan 30 | Q4 2024 earnings | Neutral | +0.0% | Q4 2024 income slightly higher; full-year 2024 earnings below 2023. |
| Oct 24 | Q3 2024 earnings | Neutral | +1.2% | Q3 2024 income lower, but strong loan and deposit growth reported. |
Earnings releases are typically positive but have often seen flat-to-negative next-day moves, with 2 divergences and 3 aligned or muted reactions.
Over the past five earnings releases from Oct 2024 to Oct 2025, Isabella Bank has reported consistent loan and deposit growth, improving net interest margin and generally solid credit quality. Net income has trended higher in 2025 versus 2024, and tangible book value per share has steadily increased. Price reactions around these earnings have mostly been modest, with some negative moves despite upbeat results. Today’s Q1 2026 report, with higher net income and margin expansion, continues that pattern of operational improvement.
Historical Comparison
Across five prior earnings releases, ISBA’s average next-day move was about 0.95%. Today’s 4.52% post-earnings move sits above that typical reaction range.
Earnings releases since late 2024 show progressing loan and deposit growth, improving net interest margin, and generally stable credit quality, with rising net income through 2025 into early 2026.
Regulatory & Risk Context
An effective S-3 shelf dated Apr 16, 2026 registers up to $75,000,000 of various securities for potential future issuance, with proceeds designated for general corporate purposes. No usage has been recorded yet.
Market Pulse Summary
This announcement reports higher Q1 2026 net income of $5.0M and EPS of $0.68, alongside NIM expansion to 3.33%, loan and deposit growth, and stable credit metrics with nonperforming loans at 0.28%. Compared with prior earnings releases, it extends a trend of improving profitability and tangible book value. Investors may watch future credit quality, balance-sheet mix, and any use of the new $75,000,000 shelf registration to gauge longer-term impact.
Key Terms
net interest margin financial
available-for-sale ("AFS") securities financial
allowance for credit losses ("ACL") financial
bank-owned life insurance ("BOLI") financial
nonaccrual loans financial
effective tax rate (ETR) financial
AI-generated analysis. Not financial advice.
MT. PLEASANT, MICHIGAN / ACCESS Newswire / April 23, 2026 / Isabella Bank Corporation (Nasdaq:ISBA) ("Isabella" or the "Company") reported net income of
FIRST QUARTER 2026 HIGHLIGHTS
Loans, excluding advances to mortgage brokers, grew
$27.2 million Total deposits increased
$40.2 million Net income grew
26% compared to first quarter 2025Net interest margin ("NIM") improved to
3.33% , up from3.06% in first quarter 2025Credit quality remained strong, with a ratio of nonperforming loans to total loans of
0.28% at March 31, 2026
"Isabella Bank Corporation delivered strong results in the first quarter, driven by loan and deposit growth across our markets," said CEO Jerome Schwind. "Initiatives implemented over the past year continue to drive noninterest income. Our initiatives this year remain focused on our commitment to provide products and services that attract new customers while continuing to fully support our current customers," he added.
"We are pleased with our stock performance after uplisting to the Nasdaq in May 2025. As expected, the lift in both volume and price has carried into 2026," Schwind added.
FINANCIAL CONDITION
Total assets were
Available-for-sale ("AFS") securities at fair value were
Loans were
In first quarter 2026, the commercial real estate and residential mortgage portfolios increased by
The allowance for credit losses ("ACL") was
Total deposits were
Total equity was
RESULTS OF OPERATIONS
Net income in first quarter 2026 was
Net interest income was
The provision for credit losses in first quarter 2026 was
Noninterest income was
Noninterest expenses were
Income tax expense was
About Isabella Bank Corporation
Isabella Bank Corporation (Nasdaq:ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.
For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.
Contact
Lori Peterson, Director of Marketing
Phone: 989-779-6333 Fax: 989-775-5501
Available Information
The Company maintains an Internet web site at ir.isabellabank.com/overview. The Company makes available, free of charge, on its web site the Company's annual reports, quarterly earnings reports, and other press releases.
The Company routinely posts important information for investors on its website (www.isabellabank.com and, more specifically, under the News tab at ir.isabellabank.com/news). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the "SEC"). Accordingly, investors should monitor the Company's web site, in addition to following the Company's press releases, SEC filings, public conference calls, presentations and webcasts.
The information contained on, or that may be accessed through, the Company's website is not incorporated by reference into, and is not a part of, this document.
Forward-Looking Statements
Information in this press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. We intend such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result", "expect", "could", "may", "plan", "believe", "estimate", "anticipate", "strategy", "trend", "forecast", "outlook", "project", "intend", "assume", "outcome", "continue", "remain", "potential", "opportunity", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Factors that could cause such differences include, but are not limited to: (i) the impact on us or our customers of a decline in general economic conditions, and any regulatory responses thereto; (ii) slower economic growth rates or potential recession in the United States and our market areas; (iii) uncertainty or perceived instability in the banking industry as a whole; (iv) increased competition for deposits among traditional and nontraditional financial services companies, and related changes in deposit customer behavior; (v) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; (vi) the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; (vii) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; (viii) changes in unemployment rates in the United States and our market areas; (ix) adverse changes in customer spending, borrowing and savings habits; (x) declines in commercial real estate values and prices; (xi) a deterioration of the credit rating for the United States long-term sovereign debt or the impact of uncertain or changing political conditions, including federal government shutdowns and uncertainty regarding United States fiscal debt, deficit and budget matters; (xii) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (xiii) severe weather, natural disasters, acts of war or terrorism, geopolitical instability, domestic civil unrest or other external events, including as a result of the policies of the current U.S. presidential administration or Congress; (xiv) in the impact of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; (xv) competition and market expansion opportunities; (xvi) changes in non-interest expenditures or in the anticipated benefits of such expenditures; (xvii) changes in accounting principles and standards, including those related to loan loss recognition under the current expected credit loss, or CECL, methodology; (xviii) the receipt of required regulatory approvals; (xix) changes in tax laws; (xx) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xxi) potential costs related to the impacts of climate change; (xxii) current or future litigation, regulatory examinations or other legal and/or regulatory actions; and (xxiii) changes in applicable laws and regulations. These forward-looking statements are based on current information and/or management's good faith belief as to future events. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding risks and uncertainties to which the Company's business and future financial performance are subject is contained in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of such documents, and other documents the Company files or furnishes with the SEC from time to time, which are available on the SEC's website, www.sec.gov. Due to these and other possible uncertainties and risks, the Company cautions you not to unduly rely on forward-looking statements. The inclusion of this forward-looking information should not be construed as a representation by the Company or by any person that the future events, plans or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company believes these non-GAAP financial measures provide both management and investors with a more complete understanding of the Company's financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.
We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.
A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.
Table Index | Consolidated Financial Schedules (Unaudited) |
A | Selected Financial Data |
B | Consolidated Balance Sheets |
C | Consolidated Statements of Income |
D | Average Balances, Interest Rate, and Net Interest Income |
E | Reconciliation of Non-GAAP Financial Measures |
A
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands except per share amounts and ratios)
The following table outlines selected financial data as of, and for the:
Three Months Ended | ||||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
PER SHARE | ||||||||||||||||||||
Basic earnings | $ | 0.68 | $ | 0.64 | $ | 0.71 | $ | 0.68 | $ | 0.53 | ||||||||||
Diluted earnings | 0.68 | 0.64 | 0.71 | 0.68 | 0.53 | |||||||||||||||
Dividends | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||||
Book value (1) | 31.90 | 31.60 | 30.94 | 29.95 | 29.10 | |||||||||||||||
Tangible book value (1) (2) | 25.32 | 25.01 | 24.37 | 23.39 | 22.58 | |||||||||||||||
Market price (1) | 45.67 | 50.00 | 35.25 | 30.15 | 23.59 | |||||||||||||||
Common shares outstanding (1) (3) | 7,333,319 | 7,322,207 | 7,350,567 | 7,361,684 | 7,408,010 | |||||||||||||||
Average number of diluted common shares outstanding (3) | 7,329,058 | 7,345,610 | 7,371,652 | 7,398,109 | 7,432,162 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average total assets | 0.91 | % | 0.85 | % | 0.94 | % | 0.96 | % | 0.77 | % | ||||||||||
Return on average shareholders' equity | 8.58 | % | 8.04 | % | 9.28 | % | 9.19 | % | 7.48 | % | ||||||||||
Return on average tangible shareholders' equity (2) | 10.79 | % | 10.16 | % | 11.83 | % | 11.78 | % | 9.65 | % | ||||||||||
Net interest margin yield (fully taxable equivalent) (1) | 3.33 | % | 3.28 | % | 3.15 | % | 3.14 | % | 3.06 | % | ||||||||||
Efficiency ratio (2) | 68.50 | % | 65.02 | % | 67.62 | % | 72.14 | % | 72.39 | % | ||||||||||
Loan to deposit ratio (1) | 83.82 | % | 84.43 | % | 74.36 | % | 75.57 | % | 76.07 | % | ||||||||||
Shareholders' equity to total assets (1) | 10.39 | % | 10.47 | % | 10.06 | % | 10.23 | % | 10.25 | % | ||||||||||
Tangible shareholders' equity to tangible assets (1) | 8.43 | % | 8.47 | % | 8.10 | % | 8.17 | % | 8.14 | % | ||||||||||
ASSETS UNDER MANAGEMENT | ||||||||||||||||||||
Wealth assets under management (1) | 701,510 | 707,118 | 679,724 | 678,959 | 656,617 | |||||||||||||||
ASSET QUALITY | ||||||||||||||||||||
Nonaccrual loans (1) | 4,418 | 4,578 | 3,443 | 1,164 | 173 | |||||||||||||||
Foreclosed assets (1) | 573 | 938 | 1,018 | 667 | 649 | |||||||||||||||
Net loan charge-offs (recoveries) | 253 | 34 | 74 | (1,432 | ) | (52 | ) | |||||||||||||
Net loan charge-offs (recoveries) to average loans outstanding | 0.02 | % | 0.00 | % | 0.01 | % | (0.10 | %) | 0.00 | % | ||||||||||
Nonperforming loans to total loans (1) | 0.28 | % | 0.30 | % | 0.24 | % | 0.09 | % | 0.01 | % | ||||||||||
Nonperforming assets to total assets (1) | 0.22 | % | 0.25 | % | 0.20 | % | 0.09 | % | 0.04 | % | ||||||||||
Allowance for credit losses to loans (1) | 0.90 | % | 0.89 | % | 0.92 | % | 0.93 | % | 0.93 | % | ||||||||||
CAPITAL RATIOS (1) | ||||||||||||||||||||
Tier 1 leverage | 8.89 | % | 8.84 | % | 8.71 | % | 9.04 | % | 8.96 | % | ||||||||||
Common equity tier 1 capital | 11.71 | % | 11.73 | % | 12.37 | % | 12.46 | % | 12.58 | % | ||||||||||
Tier 1 risk-based capital | 11.71 | % | 11.73 | % | 12.37 | % | 12.46 | % | 12.58 | % | ||||||||||
Total risk-based capital | 14.01 | % | 14.41 | % | 15.20 | % | 15.34 | % | 15.50 | % | ||||||||||
(1) At end of period
(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table E
(3) Whole shares
B
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and demand deposits due from banks | $ | 23,896 | $ | 22,935 | $ | 32,124 | $ | 34,246 | $ | 28,786 | ||||||||||
Federal funds sold and interest bearing balances due from banks | 26,209 | 3,106 | 129,177 | 74,308 | 40,393 | |||||||||||||||
Total cash and cash equivalents | 50,105 | 26,041 | 161,301 | 108,554 | 69,179 | |||||||||||||||
Marketable securities available-for-sale (amortized cost of | 492,744 | 497,791 | 511,970 | 500,560 | 513,040 | |||||||||||||||
Mortgage loans held-for-sale | 360 | 423 | 737 | 55 | 127 | |||||||||||||||
Loans held for investment | 1,558,941 | 1,536,364 | 1,431,905 | 1,397,513 | 1,367,724 | |||||||||||||||
Less allowance for credit losses | 14,014 | 13,727 | 13,149 | 12,977 | 12,735 | |||||||||||||||
Net loans | 1,544,927 | 1,522,637 | 1,418,756 | 1,384,536 | 1,354,989 | |||||||||||||||
Federal Home Loan Bank stock, at cost | 5,600 | 5,600 | 5,600 | 5,600 | 5,600 | |||||||||||||||
Premises and equipment | 29,064 | 29,000 | 28,659 | 28,171 | 28,108 | |||||||||||||||
Cash surrender value of bank-owned life insurance policies | 46,173 | 46,133 | 45,651 | 45,774 | 45,833 | |||||||||||||||
Goodwill and other intangible assets | 48,282 | 48,282 | 48,282 | 48,282 | 48,282 | |||||||||||||||
Other assets | 34,701 | 33,541 | 38,698 | 34,636 | 37,429 | |||||||||||||||
Total assets | $ | 2,251,956 | $ | 2,209,448 | $ | 2,259,654 | $ | 2,156,168 | $ | 2,102,587 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Noninterest bearing deposits | $ | 411,216 | $ | 426,342 | $ | 421,027 | $ | 493,477 | $ | 404,194 | ||||||||||
Interest bearing demand deposits | 263,954 | 266,187 | 248,666 | 223,376 | 243,939 | |||||||||||||||
Money market deposits | 477,544 | 436,631 | 558,212 | 446,845 | 473,138 | |||||||||||||||
Savings | 300,732 | 280,429 | 292,899 | 289,746 | 286,399 | |||||||||||||||
Certificates of deposit | 406,399 | 410,065 | 404,798 | 395,932 | 390,239 | |||||||||||||||
Total deposits | 1,859,845 | 1,819,654 | 1,925,602 | 1,849,376 | 1,797,909 | |||||||||||||||
Short-term borrowings | 113,530 | 68,000 | 62,022 | 43,208 | 47,310 | |||||||||||||||
Federal Home Loan Bank advances | - | 45,000 | - | - | - | |||||||||||||||
Subordinated debt, net of unamortized issuance costs | 29,537 | 29,514 | 29,492 | 29,469 | 29,447 | |||||||||||||||
Total borrowed funds | 143,067 | 142,514 | 91,514 | 72,677 | 76,757 | |||||||||||||||
Other liabilities | 15,083 | 15,884 | 15,118 | 13,615 | 12,365 | |||||||||||||||
Total liabilities | 2,017,995 | 1,978,052 | 2,032,234 | 1,935,668 | 1,887,031 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Common stock | 123,251 | 123,204 | 124,284 | 124,607 | 125,547 | |||||||||||||||
Shares to be issued for deferred compensation obligations | 2,522 | 2,366 | 2,373 | 2,331 | 2,508 | |||||||||||||||
Retained earnings | 116,790 | 113,849 | 111,172 | 107,949 | 104,940 | |||||||||||||||
Accumulated other comprehensive loss | (8,602 | ) | (8,023 | ) | (10,409 | ) | (14,387 | ) | (17,439 | ) | ||||||||||
Total shareholders' equity | 233,961 | 231,396 | 227,420 | 220,500 | 215,556 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,251,956 | $ | 2,209,448 | $ | 2,259,654 | $ | 2,156,168 | $ | 2,102,587 | ||||||||||
C
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
Three Months Ended | ||||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
Interest income | ||||||||||||||||||||
Loans, including fees | $ | 21,464 | $ | 21,669 | $ | 20,583 | $ | 19,832 | $ | 19,348 | ||||||||||
Available-for-sale securities | ||||||||||||||||||||
Taxable | 2,489 | 2,539 | 2,478 | 2,513 | 2,103 | |||||||||||||||
Nontaxable | 499 | 509 | 516 | 519 | 540 | |||||||||||||||
Federal Home Loan Bank stock, at cost | 75 | 63 | 70 | 125 | 160 | |||||||||||||||
Federal funds sold and other | 602 | 498 | 1,235 | 253 | 482 | |||||||||||||||
Total interest income | 25,129 | 25,278 | 24,882 | 23,242 | 22,633 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 7,112 | 7,380 | 8,012 | 7,391 | 7,463 | |||||||||||||||
Short-term borrowings | 736 | 587 | 441 | 324 | 341 | |||||||||||||||
Federal Home Loan Bank advances | 133 | 317 | - | 132 | 38 | |||||||||||||||
Subordinated debt | 266 | 266 | 267 | 266 | 266 | |||||||||||||||
Total interest expense | 8,247 | 8,550 | 8,720 | 8,113 | 8,108 | |||||||||||||||
Net interest income | 16,882 | 16,728 | 16,162 | 15,129 | 14,525 | |||||||||||||||
Provision (reversal) for credit losses | 604 | 434 | 209 | (1,099 | ) | (107 | ) | |||||||||||||
Net interest income after provision for credit losses | 16,278 | 16,294 | 15,953 | 16,228 | 14,632 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Service charges and fees | 2,372 | 2,461 | 2,352 | 2,071 | 1,974 | |||||||||||||||
Wealth management fees | 1,108 | 1,110 | 1,074 | 1,084 | 979 | |||||||||||||||
Income from bank-owned life insurance policies | 448 | 485 | 468 | 300 | 372 | |||||||||||||||
Net gain on sale of mortgage loans | 33 | 65 | 38 | 47 | 30 | |||||||||||||||
Other | 400 | 323 | 376 | 184 | 173 | |||||||||||||||
Total noninterest income | 4,361 | 4,444 | 4,308 | 3,686 | 3,528 | |||||||||||||||
Noninterest expenses | ||||||||||||||||||||
Compensation and benefits | 7,928 | 7,532 | 7,630 | 7,496 | 7,383 | |||||||||||||||
Occupancy and equipment | 2,840 | 2,663 | 2,628 | 2,650 | 2,600 | |||||||||||||||
Other professional services | 1,015 | 815 | 851 | 863 | 711 | |||||||||||||||
ATM and debit card fees | 558 | 575 | 595 | 555 | 486 | |||||||||||||||
Marketing | 506 | 547 | 514 | 469 | 459 | |||||||||||||||
FDIC insurance premiums | 306 | 339 | 271 | 267 | 303 | |||||||||||||||
Other | 1,509 | 1,450 | 1,496 | 1,445 | 1,357 | |||||||||||||||
Total noninterest expenses | 14,662 | 13,921 | 13,985 | 13,745 | 13,299 | |||||||||||||||
Income before income tax expense | 5,977 | 6,817 | 6,276 | 6,169 | 4,861 | |||||||||||||||
Income tax expense | 985 | 2,127 | 1,036 | 1,138 | 912 | |||||||||||||||
Net income | $ | 4,992 | $ | 4,690 | $ | 5,240 | $ | 5,031 | $ | 3,949 | ||||||||||
Earnings per common share | ||||||||||||||||||||
Basic | $ | 0.68 | $ | 0.64 | $ | 0.71 | $ | 0.68 | $ | 0.53 | ||||||||||
Diluted | 0.68 | 0.64 | 0.71 | 0.68 | 0.53 | |||||||||||||||
Cash dividends per common share | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||||
D
AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED)
(Dollars in thousands)
The following schedules present the daily average amount outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. These schedules also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a fully tax equivalent ("FTE") basis using a federal income tax rate of
Three Months Ended | ||||||||||||||||||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||||||||||||||
Average Balance | Tax Equivalent Interest | Average Yield / Rate | Average Balance | Tax Equivalent Interest | Average Yield / Rate | Average Balance | Tax Equivalent Interest | Average Yield / Rate | ||||||||||||||||||||
INTEREST EARNING ASSETS | ||||||||||||||||||||||||||||
Loans (1) | $ | 1,501,654 | $ | 21,464 | 5.78 | % | $ | 1,493,654 | $ | 21,669 | 5.74 | % | $ | 1,370,765 | $ | 19,348 | 5.71 | % | ||||||||||
AFS securities (2) (3) | 498,254 | 3,126 | 2.52 | % | 515,050 | 3,186 | 2.47 | % | 514,479 | 2,827 | 2.20 | % | ||||||||||||||||
Federal Home Loan Bank stock, at cost | 5,600 | 75 | 5.36 | % | 5,600 | 63 | 4.54 | % | 11,011 | 160 | 5.82 | % | ||||||||||||||||
Federal funds sold | 7 | - | 3.54 | % | 9 | - | 3.86 | % | 4 | - | 4.32 | % | ||||||||||||||||
Other (4) | 64,190 | 602 | 3.75 | % | 28,344 | 498 | 6.88 | % | 47,374 | 482 | 4.06 | % | ||||||||||||||||
Total interest earning assets (3) | 2,069,705 | 25,267 | 4.94 | % | 2,042,657 | 25,416 | 4.94 | % | 1,943,633 | 22,817 | 4.75 | % | ||||||||||||||||
NONEARNING ASSETS | ||||||||||||||||||||||||||||
Allowance for credit losses | (13,680 | ) | (13,213 | ) | (12,884 | ) | ||||||||||||||||||||||
Cash and demand deposits due from banks | 23,113 | 23,239 | 23,899 | |||||||||||||||||||||||||
Premises and equipment | 29,110 | 29,009 | 27,962 | |||||||||||||||||||||||||
Other assets | 116,639 | 117,201 | 102,927 | |||||||||||||||||||||||||
Total assets | $ | 2,224,887 | $ | 2,198,893 | $ | 2,085,537 | ||||||||||||||||||||||
INTEREST BEARING LIABILITIES | ||||||||||||||||||||||||||||
Interest bearing demand deposits | $ | 266,101 | 294 | 0.45 | % | $ | 249,809 | 211 | 0.34 | % | $ | 240,860 | 242 | 0.41 | % | |||||||||||||
Money market deposits | 464,438 | 2,719 | 2.37 | % | 449,129 | 2,900 | 2.56 | % | 460,663 | 2,929 | 2.58 | % | ||||||||||||||||
Savings | 291,413 | 488 | 0.68 | % | 282,306 | 498 | 0.70 | % | 286,364 | 538 | 0.76 | % | ||||||||||||||||
Certificates of deposit | 407,483 | 3,611 | 3.59 | % | 408,861 | 3,771 | 3.66 | % | 387,820 | 3,754 | 3.93 | % | ||||||||||||||||
Short-term borrowings | 86,885 | 736 | 3.44 | % | 67,521 | 587 | 3.45 | % | 43,563 | 341 | 3.18 | % | ||||||||||||||||
Federal Home Loan Bank advances | 13,444 | 133 | 3.96 | % | 30,163 | 317 | 4.12 | % | 3,333 | 38 | 4.53 | % | ||||||||||||||||
Subordinated debt, net of unamortized issuance costs | 29,522 | 266 | 3.61 | % | 29,500 | 266 | 3.61 | % | 29,433 | 266 | 3.62 | % | ||||||||||||||||
Total interest bearing liabilities | 1,559,286 | 8,247 | 2.14 | % | 1,517,289 | 8,550 | 2.24 | % | 1,452,036 | 8,108 | 2.26 | % | ||||||||||||||||
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Demand deposits | 411,011 | 432,038 | 403,024 | |||||||||||||||||||||||||
Other liabilities | 18,653 | 18,182 | 16,265 | |||||||||||||||||||||||||
Shareholders' equity | 235,937 | 231,384 | 214,212 | |||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,224,887 | $ | 2,198,893 | $ | 2,085,537 | ||||||||||||||||||||||
Net interest income (FTE) (5) | $ | 17,020 | $ | 16,866 | $ | 14,709 | ||||||||||||||||||||||
Net yield on interest earning assets (FTE) (5) | 3.33 | % | 3.28 | % | 3.06 | % | ||||||||||||||||||||||
(1) Includes loans held-for-sale and nonaccrual loans
(2) Average balances for available-for-sale securities are based on amortized cost
(3) Includes FTE adjustments of
(4) Includes average interest bearing deposits with other banks, net of Federal Reserve daily cash letter
(5) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table E
E
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands except per share amounts and ratios)
Three Months Ended | ||||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
Loans | $ | 1,558,941 | $ | 1,536,364 | $ | 1,431,905 | $ | 1,397,513 | $ | 1,367,724 | ||||||||||
Advances to mortgage brokers | 72,083 | 76,676 | 5,056 | 3,005 | 3,015 | |||||||||||||||
Adjusted loans | $ | 1,486,858 | $ | 1,459,688 | $ | 1,426,849 | $ | 1,394,508 | $ | 1,364,709 | ||||||||||
Total shareholders' equity | $ | 233,961 | $ | 231,396 | $ | 227,420 | $ | 220,500 | $ | 215,556 | ||||||||||
Goodwill and other intangible assets | 48,282 | 48,282 | 48,282 | 48,282 | 48,282 | |||||||||||||||
Tangible equity | (A) | 185,679 | 183,114 | 179,138 | 172,218 | 167,274 | ||||||||||||||
Common shares outstanding (1) | (B) | 7,333,319 | 7,322,207 | 7,350,567 | 7,361,684 | 7,408,010 | ||||||||||||||
Tangible book value per share | (A/B) | $ | 25.32 | $ | 25.01 | $ | 24.37 | $ | 23.39 | $ | 22.58 | |||||||||
Noninterest expenses | $ | 14,662 | $ | 13,921 | $ | 13,985 | $ | 13,745 | $ | 13,299 | ||||||||||
Amortization of acquisition intangibles | - | - | - | - | 1 | |||||||||||||||
Adjusted noninterest expense | (C) | $ | 14,662 | $ | 13,921 | $ | 13,985 | $ | 13,745 | $ | 13,298 | |||||||||
Net interest income | $ | 16,882 | $ | 16,728 | $ | 16,162 | $ | 15,129 | $ | 14,525 | ||||||||||
Tax equivalent adjustment for net interest margin | 138 | 138 | 144 | 178 | 184 | |||||||||||||||
Net interest income (FTE) | 17,020 | 16,866 | 16,306 | 15,307 | 14,709 | |||||||||||||||
Noninterest income | 4,361 | 4,444 | 4,308 | 3,686 | 3,528 | |||||||||||||||
Tax equivalent adjustment for BOLI | 94 | 102 | 98 | 63 | 78 | |||||||||||||||
Adjusted revenue (FTE) | 21,475 | 21,412 | 20,712 | 19,056 | 18,315 | |||||||||||||||
Net gains (losses) on foreclosed assets | 70 | 3 | 31 | 3 | (55 | ) | ||||||||||||||
Adjusted revenue | (D) | $ | 21,405 | $ | 21,409 | $ | 20,681 | $ | 19,053 | $ | 18,370 | |||||||||
Efficiency ratio | (C/D) | 68.50 | % | 65.02 | % | 67.62 | % | 72.14 | % | 72.39 | % | |||||||||
(1) Whole shares
SOURCE: Isabella Bank Corporation
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