MT. PLEASANT, MI / ACCESS Newswire / October 27, 2025 / Isabella Bank Corporation (Nasdaq:ISBA) (“Isabella” or the “Company”) reported net income of $5.2 million for the third quarter 2025 and $14.2 million for the nine months ended September 30, 2025. Earnings per diluted share were $0.71 for the third quarter 2025 and $1.92 for the first nine months of 2025.
THIRD QUARTER 2025 HIGHLIGHTS
Core loans grew $32 million, or 2%
Total deposits grew $76 million, or 4%
Net interest income increased 11.6% compared to third quarter 2024
Net interest margin (“NIM”) was 3.15%, up from 2.96% during the third quarter of 2024
Strong credit quality, with a ratio of nonperforming loans to total loans of 0.24% as of September 30, 2025
“Our strong third quarter results were driven by continued expansion in core loans and deposits,” said Isabella’s Chief Executive Officer, Jerome Schwind. “Earning assets continued to reprice with low and stable funding costs, generating NIM growth,” he added.
“Our loan growth this year has been driven by the commercial and residential mortgage loan portfolios. Our deposit growth includes larger deposits from not-for-profit entities and while some of our deposit growth is considered short-term, we continue to build new relationships across our geographic footprint.
“We also launched initiatives to strengthen noninterest revenue through fee-based income during the quarter, which coupled with noninterest expense control, have contributed to our overall financial performance.
“Our stock trading volume and price remain robust since uplisting our shares to the Nasdaq Capital Market earlier this year,” Schwind added. “Our financial results and stock performance position us well for growth and to continue to deliver long-term value to our shareholders.”
FINANCIAL CONDITION (as of September 30, 2025, compared to December 31, 2024, unless otherwise noted)
Total assets were $2.3 billion as of September 30, 2025, up $173.4 million, primarily due to an increase of $127.5 million in interest bearing cash balances, $22.9 million in available-for-sale (“AFS”) securities, and $10.8 million in the value of bank-owned life insurance (“BOLI”) policies.
AFS securities at fair value were $512 million as of September 30, 2025, increasing $11.4 million during the third quarter and $22.9 million compared to December 31, 2024. The increase during the year was largely driven by purchases of $62.1 million and an improvement in unrealized losses of $13.9 million, partially offset by amortizations and maturities totaling $53.1 million. Net unrealized losses on securities totaled $12.6 million as of September 30, 2025, compared to $26.5 million at December 31, 2024. Net unrealized losses as a percentage of total AFS securities decreased to 2% from 5%, primarily due to the treasury portfolio rapidly approaching maturity.
Total loans were $1.4 billion at the end of the third quarter, increasing $34.4 million during the third quarter and $8.3 million since December 31, 2024. While core loans have grown $66.4 million during 2025, advances to mortgage brokers decreased $58 million due to lower participation demand from the counterparty.
During the year, the commercial and industrial and commercial real estate portfolios grew $17.5 million and $34.9 million, respectively. Residential mortgages increased $31.2 million since year-end 2024 with $13.4 million of growth in the third quarter on construction drawdowns and seasonal patterns. Most residential originations were adjustable-rate products, which are retained on the balance sheet rather than sold in the secondary market. The consumer loan portfolio declined $15.4 million as loans continue to roll off amid decreasing demand, competition, and an adherence to credit quality standards.
The allowance for credit losses (“ACL”) increased $172 thousand during the third quarter and $254 thousand since December 31, 2024, reaching $13.1 million as of September 30, 2025. The increase for each period reflects core loan growth, offset by improvement in historical loss experience driven by the recovery of previously charged-off loans during the year. Nonaccrual loan balances increased $2.3 million during the quarter to $3.4 million, primarily due to the downgrade of one commercial real estate loan to nonaccrual status during the quarter. Past due and accruing accounts between 30 to 89 days, as a percentage of total loans, was 0.03% compared to 0.40% at December 31, 2024. Overall credit quality remains strong.
BOLI assets were $45.7 million at September 30, 2025, an increase of $10.8 million from December 31, 2024. The growth was mostly driven by a $10.6 million investment of new policies in a separate account product at the beginning of January. During the year, over $13 million of existing general account policies were surrendered and/or exchanged and the funds were redeployed into a separate account BOLI. The separate account BOLI policies are expected to have higher yields than general account policies.
Total deposits were $1.93 billion at September 30, 2025, increasing $76.2 million during the third quarter and $178.5 million since December 31, 2024. Money market deposits have increased $134.3 million during the year, with a large portion related to one relationship with large deposits that is expected to be withdrawn by the customer by the end of the year. Consumer demand for retail certificates of deposit accounts continues based on the current elevated market interest rate environment, resulting in a $17.2 million increase during the year.
Total equity was $227.4 million, or $30.94 per share, at September 30, 2025 compared to $210.3 million, or $28.32 per share, at year-end 2024. Tangible book value per share was $24.37 as of September 30, 2025, compared to $21.82 on December 31, 2024. Net unrealized losses in the AFS securities portfolio reduced tangible book value per share by $1.36 and $2.82 for the respective periods. Share repurchases totaled 19,096 during the third quarter and 122,502 during the first nine months of 2025 at an average price of approximately $32.00 and $26.60, respectively.
RESULTS OF OPERATIONS (Comparison of the three and nine months ended September 30, 2025, and 2024, unless otherwise noted)
Net income in the third quarter of 2025 was $5.2 million, or $0.71 per diluted share, compared with $3.3 million, or $0.44 per diluted share, in the same quarter 2024. Net income for the year-to-date period of 2025 was $14.2 million, or $1.92 per diluted share, compared with $9.9 million, or $1.32 per diluted share, in the same period of 2024.
Net interest income was $16.2 million in the third quarter of 2025 and $14.5 million in the same quarter of 2024, representing 3.15% and 2.96% of earning assets, or NIM, respectively. The book yield from securities was 2.42% and 2.17% during the third quarters of 2025 and 2024, respectively. The yield on loans expanded to 5.78% in the third quarter 2025, up from 5.72% in the same quarter of 2024. The expansion in loan yields was primarily due to higher rates on new loans and variable rate commercial loans that continue to reprice. The cost of interest-bearing liabilities in the third quarter of 2025 decreased to 2.25% from 2.42% in the third quarter of 2024 due to reductions to rates in the money market and certificate of deposit products. NIM is expected to continue to expand as loans reprice and the cost of interest-bearing liabilities stabilizes.
For the first nine months of 2025, net interest income was $45.8 million compared with $41.3 million in the same period of 2024. The comparison of NIM and yield on interest earning assets for the nine months ended September 30, 2025 were 3.12% and 4.80%, respectively, compared to 2.87% and 4.62%, respectively, for the same period in 2024. The yield on loans expanded to 5.75%, from 5.55%, and the cost of interest-bearing liabilities decreased to 2.25% from 2.36% for the first nine months of 2025 and 2024, respectively. The explanations for the improvement in NIM are consistent with those provided in the year-over-year three month comparison above.
The provision for credit losses in the third quarter of 2025 was $209 thousand, which reflects a $172 thousand increase in the ACL on loans, net charge offs totaling $74 thousand, and an increase in the reserve for unfunded commitments. The provision for loan losses in the same period of 2024 was $946 thousand, reflecting growth in core loans, unfunded commitments, and $1.8 million in charge offs. The increase in charge offs was related to overdrawn deposit accounts from a single customer. The year-to-date provision for credit loss was a credit of $1.0 million, as compared to a provision of $1.5 million in the third quarter 2024. Recoveries during 2025 totaled $2.1 million, of which $1.6 million was related to the overdrawn deposit accounts from a single customer charged off during the third quarter of 2024. The $1.6 million charge off and subsequent recovery, net of tax, impacted diluted earnings per share by $0.17 in 2024 and $0.16 in 2025.
Noninterest income for the three months ended September 30, 2025 and 2024 was $4.3 million and $3.5 million, respectively. Service charges and fees increased $219 thousand and was mostly the result of profitability initiatives designed to increase fee income. Wealth management fees grew $71 thousand due to growth in assets under management throughout the year. Earnings on BOLI policies increased $216 thousand over the prior year quarter due to new investments in a separate account BOLI, which was offset in part by a one-time expense of $120 thousand due to restructuring charges. Noninterest income during the third quarter of 2025 also includes a $163 thousand gain on the redemption of a BOLI policy. For the first nine months of 2025, noninterest income was $11.5 million, compared to $10.6 million in the same period of 2024. Increases in service charges and fees, wealth management fees, earnings on BOLI policies, and other income for the nine-month comparison are the same as the three-month comparison.
Noninterest expenses for the three-month period ended September 30, 2025 increased $757 thousand compared to the same period in 2024. Compensation and benefit expenses increased $379 thousand reflecting annual merit increases in 2025, incentives, and higher medical insurance claims compared to the third quarter of 2024. Other professional services increased $263 thousand primarily due to an increase in outsourced services. For the first nine months of 2025, noninterest expenses were $41.0 million, compared to $38.8 million in the same period of 2024. Compensation and benefits increased $1.3 million for the same reasons as the three-month comparison. Other professional service fees increased $797 thousand principally due to $173 thousand of profitability initiative costs, $168 thousand in legal fees related to our uplisting of the Company’s shares of common stock from the OTCQX market to the Nasdaq Capital Market, and an increased reliance on outsourced professional services.
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 http://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) the impacts related to or resulting from uncertainty 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 or other external events, including as a result of in 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) the receipt of required regulatory approvals; (xviii) changes in tax laws; (xix) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xx) potential costs related to the impacts of climate change; (xxi) current or future litigation, regulatory examinations or other legal and/or regulatory actions; and (xxii) 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, http://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 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 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
Average Balances, Interest Rate, and Net Interest Income
F
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
Nine Months Ended
September 30
2025
June 30
2025
March 31
2025
December 31
2024
September 30
2024
September 30
2025
September 30
2024
PER SHARE
Basic earnings
$
0.71
$
0.68
$
0.53
$
0.54
$
0.44
$
1.93
$
1.32
Diluted earnings
0.71
0.68
0.53
0.54
0.44
1.92
1.32
Dividends
0.28
0.28
0.28
0.28
0.28
0.84
0.84
Book value (1)
30.94
29.95
29.10
28.32
28.63
30.94
28.63
Tangible book value (1) (2)
24.37
23.39
22.58
21.82
22.14
24.37
22.14
Market price (1)
35.25
30.15
23.59
25.99
21.21
35.25
21.21
Common shares outstanding (1) (3)
7,350,567
7,361,684
7,408,010
7,424,893
7,438,720
7,350,567
7,438,720
Average number of diluted common shares outstanding (3)
7,371,652
7,398,109
7,432,162
7,451,718
7,473,184
7,399,441
7,492,404
PERFORMANCE RATIOS
Return on average total assets
0.94
%
0.96
%
0.77
%
0.76
%
0.62
%
0.89
%
0.64
%
Return on average shareholders’ equity
9.28
%
9.19
%
7.48
%
7.47
%
6.26
%
8.67
%
6.47
%
Return on average tangible shareholders’ equity (1)
11.83
%
11.78
%
9.65
%
9.66
%
8.15
%
11.12
%
8.48
%
Net interest margin yield (fully taxable equivalent) (1)
3.15
%
3.14
%
3.06
%
2.98
%
2.96
%
3.12
%
2.87
%
Efficiency ratio
67.51
%
70.53
%
71.73
%
71.08
%
72.30
%
69.80
%
73.65
%
Gross loan to deposit ratio (1)
74.36
%
75.57
%
76.07
%
81.48
%
79.93
%
74.36
%
79.93
%
Shareholders’ equity to total assets (1)
10.06
%
10.23
%
10.25
%
10.08
%
10.11
%
10.06
%
10.11
%
Tangible shareholders’ equity to tangible assets (1)
8.10
%
8.17
%
8.14
%
7.95
%
8.00
%
8.10
%
8.00
%
ASSETS UNDER MANAGEMENT
Wealth assets undermanagement (1)
679,724
678,959
656,617
658,042
679,858
679,724
679,858
ASSET QUALITY
Nonaccrual loans (1)
3,443
1,164
173
282
547
3,443
547
Foreclosed assets (1)
1,018
667
649
544
546
1,018
546
Net loan charge-offs (recoveries)
74
(1,432
)
(52
)
102
1,359
(1,410
)
1,798
Net loan charge-offs (recoveries) to average loans outstanding
0.01
%
(0.10)
%
0.00
%
0.01
%
0.10
%
(0.10)
%
0.13
%
Nonperforming loans to gross loans (1)
0.24
%
0.09
%
0.01
%
0.02
%
0.04
%
0.24
%
0.04
%
Nonperforming assets to total assets (1)
0.20
%
0.09
%
0.04
%
0.04
%
0.06
%
0.20
%
0.06
%
Allowance for credit losses to gross loans (1)
0.92
%
0.93
%
0.93
%
0.91
%
0.89
%
0.92
%
0.89
%
CAPITAL RATIOS (1)
Tier 1 leverage
8.71
%
9.04
%
8.96
%
8.86
%
8.77
%
8.71
%
8.77
%
Common equity tier 1 capital
12.37
%
12.46
%
12.58
%
12.21
%
12.08
%
12.37
%
12.08
%
Tier 1 risk-based capital
12.37
%
12.46
%
12.58
%
12.21
%
12.08
%
12.37
%
12.08
%
Total risk-based capital
15.20
%
15.34
%
15.50
%
15.06
%
14.90
%
15.20
%
14.90
%
(1) At end of period.
(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table F
(3) Whole shares
[B] CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
September 30
2025
June 30
2025
March 31
2025
December 31
2024
September 30
2024
ASSETS
Cash and demand deposits due from banks
$
32,124
$
34,246
$
28,786
$
22,830
$
27,019
Fed Funds sold and interest bearing balances due from banks
129,177
74,308
40,393
1,712
359
Total cash and cash equivalents
161,301
108,554
69,179
24,542
27,378
Available-for-sale securities, at fair value
511,970
500,560
513,040
489,029
506,806
Federal Home Loan Bank stock
5,600
5,600
5,600
12,762
12,762
Mortgage loans held-for-sale
737
55
127
242
504
Loans
1,431,905
1,397,513
1,367,724
1,423,571
1,424,283
Less allowance for credit losses
13,149
12,977
12,735
12,895
12,635
Net loans
1,418,756
1,384,536
1,354,989
1,410,676
1,411,648
Premises and equipment
28,659
28,171
28,108
27,659
27,674
Cash surrender value of bank-owned life insurance policies
45,651
45,774
45,833
34,882
34,625
Goodwill and other intangible assets
48,282
48,282
48,282
48,283
48,283
Other assets
38,698
34,636
37,429
38,166
37,221
Total assets
$
2,259,654
$
2,156,168
$
2,102,587
$
2,086,241
$
2,106,901
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Demand deposits
$
421,027
$
493,477
$
404,194
$
416,373
$
421,493
Interest bearing demand deposits
248,666
223,376
243,939
237,548
228,902
Money market deposits
558,212
446,845
473,138
423,883
471,745
Savings
292,899
289,746
286,399
281,665
276,095
Certificates of deposit
404,798
395,932
390,239
387,591
383,597
Total deposits
1,925,602
1,849,376
1,797,909
1,747,060
1,781,832
Short-term borrowings
62,022
43,208
47,310
53,567
52,434
Federal Home Loan Bank advances
–
–
–
30,000
15,000
Subordinated debt, net of unamortized issuance costs
29,492
29,469
29,447
29,424
29,402
Total borrowed funds
91,514
72,677
76,757
112,991
96,836
Other liabilities
15,118
13,615
12,365
15,914
15,248
Total liabilities
2,032,234
1,935,668
1,887,031
1,875,965
1,893,916
Shareholders’ equity
Common stock
124,284
124,607
125,547
126,224
125,218
Shares to be issued for deferred compensation obligations
2,373
2,331
2,508
2,383
3,981
Retained earnings
111,172
107,949
104,940
103,024
101,065
Accumulated other comprehensive loss
(10,409
)
(14,387
)
(17,439
)
(21,355
)
(17,279
)
Total shareholders’ equity
227,420
220,500
215,556
210,276
212,985
Total liabilities and shareholders’ equity
$
2,259,654
$
2,156,168
$
2,102,587
$
2,086,241
$
2,106,901
[C] CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
Three Months Ended
Nine Months Ended
September 30
2025
June 30
2025
March 31
2025
December 31
2024
September 30
2024
September 30
2025
September 30
2024
Interest income
Loans
$
20,583
$
19,832
$
19,348
$
20,145
$
20,230
$
59,763
$
57,150
Available-for-sale securities
2,994
3,032
2,643
2,656
2,749
8,669
8,437
Federal Home Loan Bank stock
70
125
160
168
168
355
472
Federal funds sold and other
1,235
253
482
200
194
1,970
750
Total interest income
24,882
23,242
22,633
23,169
23,341
70,757
66,809
Interest expense
Deposits
8,012
7,391
7,463
7,583
7,631
22,866
22,107
Short-term borrowings
441
324
341
413
384
1,106
1,026
Federal Home Loan Bank advances
–
132
38
352
571
170
1,597
Subordinated debt
267
266
266
266
267
799
799
Total interest expense
8,720
8,113
8,108
8,614
8,853
24,941
25,529
Net interest income
16,162
15,129
14,525
14,555
14,488
45,816
41,280
Provision (reversal) for credit losses
209
(1,099
)
(107
)
376
946
(997
)
1,508
Net interest income after provision for credit losses
15,953
16,228
14,632
14,179
13,542
46,813
39,772
Noninterest income
Service charges and fees
2,352
2,071
1,974
2,186
2,133
6,397
6,089
Wealth management fees
1,074
1,084
979
1,051
1,003
3,137
2,990
Earnings on bank-owned life insurance policies
468
300
372
259
252
1,140
748
Net gain on sale of mortgage loans
38
47
30
75
37
115
138
Other
376
184
173
401
103
733
639
Total noninterest income
4,308
3,686
3,528
3,972
3,528
11,522
10,604
Noninterest expenses
Compensation and benefits
7,630
7,496
7,383
7,340
7,251
22,509
21,236
Occupancy and equipment
2,628
2,650
2,600
2,554
2,645
7,878
7,970
Other professional services
851
863
711
584
588
2,425
1,628
ATM and debit card fees
595
555
486
516
503
1,636
1,459
Marketing
514
469
459
458
403
1,442
1,254
FDIC insurance premiums
271
267
303
309
291
841
823
Other losses
47
339
115
209
347
501
908
Other
1,449
1,106
1,242
1,360
1,200
3,797
3,521
Total noninterest expenses
13,985
13,745
13,299
13,330
13,228
41,029
38,799
Income before income tax expense
6,276
6,169
4,861
4,821
3,842
17,306
11,577
Income tax expense
1,036
1,138
912
825
561
3,086
1,684
Net income
$
5,240
$
5,031
$
3,949
$
3,996
$
3,281
$
14,220
$
9,893
Earnings per common share
Basic
$
0.71
$
0.68
$
0.53
$
0.54
$
0.44
$
1.93
$
1.32
Diluted
0.71
0.68
0.53
0.54
0.44
1.92
1.32
Cash dividends per common share
0.28
0.28
0.28
0.28
0.28
0.84
0.84
[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 21%. Loans in nonaccrual status, for the purpose of the following computations, are included in the average loan balances. Federal Reserve Bank (“FRB”) restricted equity holdings are included in other interest earning assets.
Three Months Ended
September 30, 2025
June 30, 2025
September 30, 2024
AverageBalance
TaxEquivalentInterest
AverageYield /Rate
AverageBalance
TaxEquivalentInterest
AverageYield /Rate
AverageBalance
TaxEquivalentInterest
AverageYield /Rate
INTEREST EARNING ASSETS
Loans (1)
$
1,409,928
$
20,583
5.78
%
$
1,388,684
$
19,832
5.71
%
$
1,403,810
$
20,230
5.72
%
AFS securities (2)
517,286
3,172
2.42
%
534,352
3,210
2.38
%
536,379
2,981
2.17
%
Federal Home Loan Bank stock
5,600
70
4.95
%
5,600
125
8.94
%
12,762
168
5.26
%
Fed funds sold
186
2
4.35
%
6
–
3.83
%
4
–
5.36
%
Other (3)
123,183
1,233
3.92
%
20,487
253
4.92
%
14,597
194
5.18
%
Total interest earning assets
2,056,183
25,060
4.83
%
1,949,129
23,420
4.81
%
1,967,552
23,573
4.75
%
NONEARNING ASSETS
Allowance for credit losses
(13,057
)
(13,369
)
(13,125
)
Cash and demand deposits due from banks
25,591
22,026
25,903
Premises and equipment
28,313
28,306
27,868
Other assets
109,692
106,595
87,002
Total assets
$
2,206,722
$
2,092,687
$
2,095,200
INTEREST BEARING LIABILITIES
Interest bearing demand deposits
$
234,105
144
0.24
%
$
236,076
220
0.37
%
$
232,018
161
0.28
%
Money market deposits
534,127
3,533
2.63
%
449,110
2,857
2.55
%
451,216
3,148
2.77
%
Savings
289,442
560
0.77
%
286,434
544
0.76
%
274,828
423
0.61
%
Certificates of deposit
399,781
3,775
3.75
%
395,450
3,770
3.82
%
375,936
3,899
4.13
%
Short-term borrowings
52,700
441
3.32
%
41,661
324
3.11
%
48,304
384
3.17
%
Federal Home Loan Bank advances
–
–
–
%
11,539
132
4.53
%
40,435
571
5.52
%
Subordinated debt, net of unamortized issuance costs
29,477
267
3.61
%
29,455
266
3.61
%
29,388
267
3.62
%
Total interest bearing liabilities
1,539,632
8,720
2.25
%
1,449,725
8,113
2.24
%
1,452,125
8,853
2.42
%
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand deposits
428,144
409,262
418,973
Other liabilities
14,976
14,158
15,658
Shareholders’ equity
223,970
219,542
208,444
Total liabilities and shareholders’ equity
$
2,206,722
$
2,092,687
$
2,095,200
Net interest income (FTE)
$
16,340
$
15,307
$
14,720
Net yield on interest earning assets (FTE) (4)
3.15
%
3.14
%
2.96
%
(1) Includes loans held-for-sale and nonaccrual loans
(2) Average balances for available-for-sale securities are based on amortized cost
(3) Includes average interest-bearing deposits with other banks, net of Federal Reserve daily cash letter.
[E] AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED) (continued)
(Dollars in thousands)
Nine Months Ended
September 30, 2025
September 30, 2024
Average Balance
Tax Equivalent Interest
Average Yield/Rate
Average Balance
Tax Equivalent Interest
Average Yield/Rate
INTEREST EARNING ASSETS
Loans (1)
$
1,389,936
$
59,763
5.75
%
$
1,376,122
$
57,150
5.55
%
AFS securities (2)
522,049
9,210
2.34
%
546,376
9,153
2.23
%
Federal Home Loan Bank stock
7,384
355
6.41
%
12,762
472
4.93
%
Fed funds sold
66
2
4.35
%
6
–
5.35
%
Other (3)
63,959
1,968
3.92
%
17,941
750
5.49
%
Total interest earning assets
1,983,394
71,298
4.80
%
1,953,207
67,525
4.62
%
NONEARNING ASSETS
Allowance for credit losses
(13,104
)
(13,216
)
Cash and demand deposits due from banks
23,844
24,623
Premises and equipment
28,195
27,962
Other assets
106,430
83,878
Total assets
$
2,128,759
$
2,076,454
INTEREST BEARING LIABILITIES
Interest bearing demand deposits
$
236,989
606
0.34
%
$
238,703
542
0.30
%
Money market deposits
481,571
9,319
2.59
%
445,604
9,437
2.83
%
Savings
287,425
1,642
0.76
%
280,447
1,154
0.55
%
Certificates of deposit
394,395
11,299
3.83
%
366,672
10,974
4.00
%
Short-term borrowings
46,008
1,106
3.21
%
43,197
1,026
3.18
%
Federal Home Loan Bank advances
4,945
170
4.53
%
37,883
1,597
5.54
%
Subordinated debt, net of unamortized issuance costs
29,455
799
3.61
%
29,365
799
3.63
%
Total interest bearing liabilities
1,480,788
24,941
2.25
%
1,441,871
25,529
2.36
%
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand deposits
413,568
414,179
Other liabilities
15,131
16,183
Shareholders’ equity
219,272
204,221
Total liabilities and shareholders’ equity
$
2,128,759
$
2,076,454
Net interest income (FTE)
$
46,357
$
41,996
Net yield on interest earning assets (FTE) (4)
3.12
%
2.87
%
(1) Includes loans held-for-sale and nonaccrual loans (loan summary below)
(2) Average balances for available-for-sale securities are based on amortized cost
(3) Includes average interest-bearing deposits with other banks, net of Federal Reserve daily cash letter.
September 30
2025
June 30
2025
March 31
2025
December 31
2024
September 30
2024
Commercial and industrial (4)
$
218,132
$
207,719
$
205,172
$
200,623
$
197,372
Commercial real estate (4)
626,642
614,383
596,282
591,718
590,255
Advances to mortgage brokers
5,056
3,005
3,015
63,080
76,187
Agricultural
97,794
96,842
94,359
99,694
96,794
Total commercial loans
947,624
921,949
898,828
955,115
960,608
Residential real estate
412,056
398,668
387,348
380,872
369,846
Consumer
72,225
76,896
81,548
87,584
93,829
Gross loans
$
1,431,905
$
1,397,513
$
1,367,724
$
1,423,571
$
1,424,283
(4) Certain amounts reported as commercial and industrial loans have been reclassified as commercial real estate loans to conform to the September 30, 2025 presentation
[F] RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands except per share amounts and ratios)
September 30
2025
June 30
2025
March 31
2025
December 31
2024
September 30
2024
Gross loans
$
1,431,905
$
1,397,513
$
1,367,724
$
1,423,571
$
1,424,283
Advances to mortgage brokers
5,056
3,005
3,015
63,080
76,187
Core loans
$
1,426,849
$
1,394,508
$
1,364,709
$
1,360,491
$
1,348,096
Total shareholders’ equity
$
227,420
$
220,500
$
215,556
$
210,276
$
212,985
Goodwill and other intangible assets
48,282
48,282
48,282
48,283
48,283
Tangible equity(A)
179,138
172,218
167,274
161,993
164,702
Common shares outstanding (1)(B)
7,350,567
7,361,684
7,408,010
7,424,893
7,438,720
Tangible book value per share(A/B)
24.37
23.39
22.58
21.82
22.14
(1) Whole shares.
SOURCE: Isabella Bank Corporation
View the original press release on ACCESS Newswire:
© 2025 ACCESS Newswire
Read more on FinanzNachrichten.de
