Isabella Bank Corporation Reports Second Quarter 2024 Results
MT. PLEASANT, Mich., July 25, 2024 /PRNewswire/ — Isabella Bank Corporation (OTCQX: ISBA) (the “Company”) reported second quarter 2024 net income of $3.5 million, or $0.46 per diluted share, compared to $4.6 million or $0.61 per diluted share in the same quarter of 2023.
SECOND QUARTER 2024 HIGHLIGHTS (compared to second quarter 2023, unless otherwise stated)
Total loans grew by an annualized rate of 5%4.58% earning asset yield, compared to 4.11%7% increase in wealth management income0.07% ratio in nonperforming loans to total loans
“We are pleased the negative trend in net interest margin over the past several quarters has reversed, and we gained five basis points over the first quarter of 2024,” said Isabella Bank Corporation’s Chief Executive Officer Jerome Schwind. “The repricing of earning assets and continued loan growth have expanded yields beyond the growth of our cost of funds.
“While total commercial loans grew 1% during the quarter,” he added, “we have a strong loan pipeline going into the third quarter. Given commercial loan growth prospects and the continued repricing of our book of business, we see a stronger second half of 2024, regardless of how interest rates change.”
FINANCIAL CONDITION (June 30, 2024 compared to March 31, 2024)
Total assets remained steady at $2.06 billion. Loan growth during the second quarter was offset by lower cash and security balances and was primarily funded by security amortization and Federal Home Loan Bank borrowings.
Securities available-for-sale decreased $11.9 million to $505.6 million at the end of second quarter 2024 due to municipal maturities and principal paydowns on mortgage-related securities. This was offset in part by a smaller unrealized loss on the total portfolio during the period. Net losses on securities totaled $34 million and $34.8 million at the end of the second and first quarter, respectively. Unrealized losses represent 6% of total available-for-sale securities in both periods and will continue to decrease as bonds approach their maturity dates over the next three years.
Total loans grew $16.1 million to $1.38 billion at the end of second quarter 2024, led by residential loans, adding $8.5 million in balances due to a slowing of prepayments on steady new volume. Total commercial loans grew $8.8 million due to higher advances to mortgage brokers. The commercial pipeline remains strong.
The allowance for credit losses decreased $295,000 to $13.1 million at the end of second quarter 2024. A majority of the decrease was due to a few nonaccrual commercial loans that were settled at book value with specific allowances totaling $212,000. Nonaccrual loan balances decreased $289,000 for the same reason. Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.11% compared to 0.58% at the end of first quarter 2024. The decrease is mostly the result of higher past due balances at the end of March due to a group of residential loans that typically make payments about 30 days in arrears, which become overdue when the 31st day lands on a business day. Overall, credit quality remains strong, with no negative trends.
Total deposits were $1.72 billion at the end of the second quarter, a decline of 2.6% or $46.0 million from the last quarter. However, demand for retail certificates of deposit accounts (CDs) continues due to the rate environment, resulting in a $2.3 million increase during the second quarter.
The level of total deposits resulted in a funding gap that was filled with short-duration Federal Home Loan bank advances. The Bank continues to have robust liquidity levels and capital. As of June 30, 2024, the Bank had $754 million of unencumbered sources of liquidity and strong capital ratios; the Tier 1 Leverage Ratio was 8.83%, Tier 1 risk-based capital was 12.37%, and Total risk-based capital was 15.29%.
Tangible book value per share was $20.60 as of June 30, 2024, compared to $20.35 on March 31, 2024. Net unrealized losses on available-for-sale securities reduced tangible book value per share by $3.60 and $3.67 for the respective periods.
RESULTS OF OPERATIONS (June 30, 2024 to June 30, 2023 quarterly comparison)
Net interest margin was 2.83%, up from 2.78% last quarter and was 3.11% a year ago. The decrease from a year ago primarily was driven by a higher cost of funds. The book yield from securities was 2.23% and 2.26% during second quarter 2024 and 2023, respectively. The yield includes the effect of the investment of excess cash in shorter term U.S. Treasury securities following the COVID pandemic in 2021 and 2022. These securities will mature over the next 6 to 30 months, and the proceeds are expected to be reinvested in market rate loans and securities, or to pay off borrowed funds. The yield on loans expanded to 5.49% in second quarter 2024, up from 4.90% in the same quarter of 2023. The expansion in loan yields is a result of higher rates on new loans and fixed rate commercial loans that have and will continue repricing to variable rates. Cost of interest-bearing liabilities increased to 2.37% from 1.41% in second quarter 2024 due to several interest rate hikes throughout 2023.
The provision for credit losses was $170,000 in the second quarter 2024 and $196,000 for the same period in 2023. The provision for the current year quarter reflects growth in residential loans and a $72,000 increase due to higher unfunded commitments.
Noninterest income was $3.6 million in both the second quarter of 2024 and 2023. Customer service fees grew $81,000 based on a higher number of transactional accounts. Wealth management income increased $67,000, or 7%, due to higher assets under management (AUM). AUM increased $54.3 million over the last year driven by growth in new accounts and higher security valuations.
Noninterest expenses were $12.9 million in second quarter 2024 compared to $12.5 million in second quarter 2023. Compensation and benefit expenses increased $409,000 and reflect annual merit increases and medical claim adjustments totaling $190,000. Higher card usage drove a $78,000 increase in ATM and debit card fees.
About the Corporation
Isabella Bank Corporation (OTCQX: 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. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.com).
Forward-Looking Statements
This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled “Risk Factors” and “Forward Looking Statements” set forth in Isabella Bank Corporation’s filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission’s Public Reference facilities and from its website at www.sec.gov.
Non-GAAP Financial Measures
This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. A reconciliation of non-GAAP financial measures to GAAP measures is provided in this release.
Table Index
Consolidated Financial Schedules (Unaudited)
A
Selected Financial Data
B
Consolidated Balance Sheets
C
Consolidated Statements of Income
D
Consolidated Statements of Income
E
Average Yields and Costs
F
Average Balances
G
Asset Quality Analysis
H
Consolidated Loan and Deposit Analysis
I
Reconciliation of Non-GAAP Financial Measures
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands except per share amounts)
Three Months Ended
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
PER SHARE
Basic earnings
$ 0.47
$ 0.42
$ 0.51
$ 0.59
$ 0.62
Diluted earnings
0.46
0.42
0.51
0.58
0.61
Dividends
0.28
0.28
0.28
0.28
0.28
Book value (1)
27.06
26.80
27.04
24.71
25.13
Tangible book value (1)
20.60
20.35
20.59
18.27
18.69
Market price (1)
18.20
19.40
21.50
21.05
20.50
Common shares outstanding (1)
7,474,016
7,488,101
7,485,889
7,490,557
7,496,826
Average number of diluted common shares outstanding
7,494,828
7,507,739
7,526,514
7,570,374
7,567,527
PERFORMANCE RATIOS
Return on average total assets
0.67 %
0.61 %
0.74 %
0.86 %
0.91 %
Return on average shareholders’ equity
6.94 %
6.16 %
8.05 %
9.24 %
9.47 %
Return on average tangible shareholders’ equity
9.14 %
8.07 %
10.82 %
12.37 %
12.58 %
Net interest margin yield (fully taxable equivalent) (2)
2.83 %
2.78 %
2.85 %
3.02 %
3.11 %
Efficiency ratio (2)
73.93 %
74.84 %
68.41 %
70.56 %
67.90 %
Net loan to deposit ratio (1)
79.46 %
74.46 %
77.53 %
74.71 %
77.06 %
Shareholders’ equity to total assets (1)
9.82 %
9.75 %
9.83 %
8.74 %
9.23 %
Tangible shareholders’ equity to tangible assets (1)
7.65 %
7.58 %
7.66 %
6.61 %
7.03 %
ASSETS UNDER MANAGEMENT
Assets managed by Isabella Wealth (1)
$ 647,850
$ 660,645
$ 641,027
$ 590,666
$ 593,530
ASSET QUALITY
Nonaccrual loans (1)
$ 994
$ 1,283
$ 982
$ 520
$ 414
Foreclosed assets (1)
629
579
406
509
405
Net loan charge-offs (recoveries)
393
46
381
(254)
(3)
Net loan charge-offs (recoveries) to average loans outstanding
0.03 %
0.00 %
0.03 %
(0.02) %
0.00 %
Nonperforming loans to gross loans (1)
0.07 %
0.09 %
0.08 %
0.04 %
0.04 %
Nonperforming assets to total assets (1)
0.08 %
0.09 %
0.07 %
0.05 %
0.05 %
Allowance for credit losses to gross loans (1)
0.95 %
0.98 %
0.97 %
0.96 %
0.96 %
CAPITAL RATIOS (1)
Tier 1 leverage
8.83 %
8.80 %
8.76 %
8.77 %
8.70 %
Common equity tier 1 capital
12.37 %
12.36 %
12.54 %
12.43 %
12.39 %
Tier 1 risk-based capital
12.37 %
12.36 %
12.54 %
12.43 %
12.39 %
Total risk-based capital
15.29 %
15.31 %
15.52 %
15.39 %
15.37 %
(1) At end of period
(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I
A
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
ASSETS
Cash and demand deposits due from banks
$ 22,690
$ 22,987
$ 25,628
$ 48,862
$ 25,584
Fed Funds sold and interest bearing balances
due from banks
869
2,231
8,044
67,017
4,296
Total cash and cash equivalents
23,559
25,218
33,672
115,879
29,880
Available-for-sale securities, at fair value
505,646
517,585
528,148
516,897
530,497
Federal Home Loan Bank stock
12,762
12,762
12,762
12,762
12,762
Mortgage loans held-for-sale
637
366
—
105
362
Loans
1,381,636
1,365,508
1,349,463
1,334,674
1,334,402
Less allowance for credit losses
13,095
13,390
13,108
12,767
12,833
Net loans
1,368,541
1,352,118
1,336,355
1,321,907
1,321,569
Premises and equipment
27,843
27,951
27,639
26,960
26,383
Bank-owned life insurance policies
34,382
34,131
33,892
33,654
33,433
Goodwill and other intangible assets
48,283
48,284
48,284
48,285
48,285
Other assets
38,486
39,161
38,216
42,041
39,277
Total assets
$ 2,060,139
$ 2,057,576
$ 2,058,968
$ 2,118,490
$ 2,042,448
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Demand deposits
$ 412,193
$ 413,272
$ 428,505
$ 445,043
$ 458,845
Interest bearing demand deposits
338,329
349,401
320,737
363,558
335,922
Savings
603,328
639,491
628,079
628,795
606,644
Certificates of deposit
368,449
366,143
346,374
332,078
313,537
Total deposits
1,722,299
1,768,307
1,723,695
1,769,474
1,714,948
Federal funds purchased and repurchase agreements
44,194
42,998
46,801
52,330
37,102
Federal Home Loan Bank advances
45,000
—
40,000
65,000
55,000
Subordinated debt, net of unamortized issuance costs
29,380
29,357
29,335
29,312
29,290
Total borrowed funds
118,574
72,355
116,136
146,642
121,392
Other liabilities
17,017
16,240
16,735
17,251
17,677
Total liabilities
1,857,890
1,856,902
1,856,566
1,933,367
1,854,017
Shareholders’ equity
Common stock
126,126
126,656
127,323
127,680
126,278
Shares to be issued for deferred compensation obligations
3,951
3,890
3,693
3,641
5,395
Retained earnings
99,808
98,318
97,282
95,533
93,175
Accumulated other comprehensive income (loss)
(27,636)
(28,190)
(25,896)
(41,731)
(36,417)
Total shareholders’ equity
202,249
200,674
202,402
185,123
188,431
Total liabilities and shareholders’ equity
$ 2,060,139
$ 2,057,576
$ 2,058,968
$ 2,118,490
$ 2,042,448
B
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
Six Months Ended
June 30
2024
2023
Interest income
Loans
$ 36,920
$ 30,820
Available-for-sale securities
5,688
6,267
Federal Home Loan Bank stock
304
135
Federal funds sold and other
556
868
Total interest income
43,468
38,090
Interest expense
Deposits
14,476
6,938
Federal funds purchased and repurchase agreements
642
320
Federal Home Loan Bank advances
1,026
270
Subordinated debt, net of unamortized issuance costs
532
532
Total interest expense
16,676
8,060
Net interest income
26,792
30,030
Provision for credit losses
562
237
Net interest income after provision for credit losses
26,230
29,793
Noninterest income
Service charges and fees
4,174
4,025
Wealth management fees
1,987
1,767
Earnings on bank-owned life insurance policies
496
452
Net gain on sale of mortgage loans
101
123
Other
318
530
Total noninterest income
7,076
6,897
Noninterest expenses
Compensation and benefits
13,985
13,150
Occupancy and equipment
5,325
5,208
Other professional services
1,040
1,092
ATM and debit card fees
956
809
FDIC insurance premiums
532
461
Other
3,733
4,017
Total noninterest expenses
25,571
24,737
Income before income tax expense
7,735
11,953
Income tax expense
1,123
2,002
Net income
$ 6,612
$ 9,951
Earnings per common share
Basic
$ 0.88
$ 1.32
Diluted
0.88
1.31
Cash dividends per common share
0.56
0.56
C
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
Three Months Ended
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
Interest income
Loans
$ 18,863
$ 18,057
$ 17,580
$ 17,270
15,931
Available-for-sale securities
2,804
2,884
2,926
2,963
3,047
Federal Home Loan Bank stock
158
146
129
91
71
Federal funds sold and other
263
293
421
161
446
Total interest income
22,088
21,380
21,056
20,485
19,495
Interest expense
Deposits
7,313
7,163
6,399
5,015
4,109
Federal funds purchased and repurchase agreements
321
321
357
284
171
Federal Home Loan Bank advances
638
388
422
617
270
Subordinated debt, net of unamortized issuance costs
266
266
266
267
266
Total interest expense
8,538
8,138
7,444
6,183
4,816
Net interest income
13,550
13,242
13,612
14,302
14,679
Provision for credit losses
170
392
684
(292)
196
Net interest income after provision for credit losses
13,380
12,850
12,928
14,594
14,483
Noninterest income
Service charges and fees
2,128
2,046
2,212
2,060
2,047
Wealth management fees
1,048
939
932
858
981
Earnings on bank-owned life insurance policies
253
243
239
229
226
Net gain on sale of mortgage loans
67
34
85
109
56
Other
112
206
48
158
294
Total noninterest income
3,608
3,468
3,516
3,414
3,604
Noninterest expenses
Compensation and benefits
6,970
7,015
6,116
6,639
6,561
Occupancy and equipment
2,619
2,706
2,554
2,535
2,606
Other professional services
527
513
576
672
557
ATM and debit card fees
487
469
487
471
409
FDIC insurance premiums
280
252
233
228
233
Other
2,012
1,721
1,949
2,113
2,173
Total noninterest expenses
12,895
12,676
11,915
12,658
12,539
Income before income tax expense
4,093
3,642
4,529
5,350
5,548
Income tax expense
612
511
726
937
918
Net income
$ 3,481
$ 3,131
$ 3,803
$ 4,413
$ 4,630
Earnings per common share
Basic
$ 0.47
$ 0.42
$ 0.51
$ 0.59
$ 0.62
Diluted
0.46
0.42
0.51
0.58
0.61
Cash dividends per common share
0.28
0.28
0.28
0.28
0.28
D
AVERAGE YIELDS AND COSTS (UNAUDITED)
The following schedules present yield and daily average amounts outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. For analytical purposes, interest income is reported on a fully taxable equivalent (FTE) basis using a federal income tax rate of 21%. Federal Reserve Bank restricted equity holdings are included in other interest earning assets.
Three Months Ended
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
INTEREST EARNING ASSETS
Loans (1)
5.49 %
5.36 %
5.25 %
5.21 %
4.90 %
Available-for-sale securities
2.23 %
2.25 %
2.25 %
2.25 %
2.26 %
Federal Home Loan Bank stock
4.95 %
4.58 %
4.07 %
2.85 %
2.23 %
Fed funds sold
5.48 %
5.69 %
5.76 %
5.51 %
4.70 %
Other
7.49 %
4.65 %
6.25 %
3.65 %
7.16 %
Total interest earning assets
4.58 %
4.45 %
4.38 %
4.30 %
4.11 %
INTEREST BEARING LIABILITIES
Interest bearing demand deposits
0.39 %
0.48 %
0.63 %
0.28 %
0.22 %
Savings
2.16 %
2.10 %
1.78 %
1.45 %
1.18 %
Certificates of deposit
3.99 %
3.82 %
3.63 %
3.23 %
2.73 %
Federal funds purchased and repurchase agreements
3.16 %
3.16 %
2.85 %
2.44 %
1.93 %
Federal Home Loan Bank advances
5.61 %
5.60 %
5.69 %
5.55 %
5.29 %
Subordinated debt, net of unamortized issuance costs
3.62 %
3.63 %
3.63 %
3.65 %
3.63 %
Total interest bearing liabilities
2.37 %
2.27 %
2.13 %
1.79 %
1.41 %
Net yield on interest earning assets (FTE) (2)
2.83 %
2.78 %
2.85 %
3.02 %
3.11 %
Net interest spread
2.21 %
2.18 %
2.25 %
2.51 %
2.70 %
(1) Includes loans held-for-sale and nonaccrual loans
(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I
E
AVERAGE BALANCES (UNAUDITED)
(Dollars in thousands)
Three Months Ended
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
INTEREST EARNING ASSETS
Loans (1)
$ 1,375,523
$ 1,348,749
$ 1,340,271
$ 1,325,455
$ 1,300,593
Available-for-sale securities (2)
545,827
557,030
564,068
572,038
583,652
Federal Home Loan Bank stock
12,762
12,762
12,762
12,762
12,762
Fed funds sold
7
7
13
13
4
Other (3)
14,054
25,210
26,823
17,638
24,902
Total interest earning assets
1,948,173
1,943,758
1,943,937
1,927,906
1,921,913
NONEARNING ASSETS
Allowance for credit losses
(13,431)
(13,100)
(12,780)
(12,937)
(12,759)
Cash and demand deposits due from banks
23,931
24,018
23,244
25,287
24,807
Premises and equipment
27,999
28,022
27,444
26,629
26,401
Other assets
80,539
84,059
71,592
74,244
80,374
Total assets
$ 2,067,211
$ 2,066,757
$ 2,053,437
$ 2,041,129
$ 2,040,736
INTEREST BEARING LIABILITIES
Interest bearing demand deposits
$ 342,931
$ 345,842
$ 317,996
$ 342,175
$ 348,341
Savings
613,601
633,904
634,529
595,372
628,673
Certificates of deposit
366,440
357,541
338,852
324,399
303,117
Federal funds purchased and repurchase agreements
40,593
40,623
50,049
46,574
35,495
Federal Home Loan Bank advances
45,510
27,692
29,674
44,429
20,404
Subordinated debt, net of unamortized issuance costs
29,365
29,342
29,320
29,298
29,275
Total interest bearing liabilities
1,438,440
1,434,944
1,400,420
1,382,247
1,365,305
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand deposits
411,282
412,228
446,747
451,123
462,953
Other liabilities
16,755
16,151
17,302
16,802
16,906
Shareholders’ equity
200,734
203,434
188,958
190,957
195,572
Total liabilities and shareholders’ equity
$ 2,067,211
$ 2,066,757
$ 2,053,427
$ 2,041,129
$ 2,040,736
(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
F
ASSET QUALITY ANALYSIS (UNAUDITED)
(Dollars in thousands)
The following table outlines quarter-to-date asset quality analysis as of, and for the three-month periods ended:
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
NONPERFORMING ASSETS
Commercial and industrial
$ 271
$ 567
$ 491
$ 17
$ 17
Commercial real estate
—
234
—
—
—
Agricultural
167
189
205
208
218
Residential real estate
556
293
286
295
179
Consumer
—
—
—
—
—
Total nonaccrual loans
994
1,283
982
520
414
Accruing loans past due 90 days or more
15
—
87
—
133
Total nonperforming loans
1,009
1,283
1,069
520
547
Foreclosed assets
629
579
406
509
405
Debt securities
12
12
12
77
77
Total nonperforming assets
$ 1,650
$ 1,874
$ 1,487
$ 1,106
$ 1,029
Nonperforming loans to gross loans
0.07 %
0.09 %
0.08 %
0.04 %
0.04 %
Nonperforming assets to total assets
0.08 %
0.09 %
0.07 %
0.05 %
0.05 %
Allowance for credit losses as a % of nonaccrual loans
1,317.40 %
1,043.65 %
1,334.83 %
2,455.19 %
3,099.76 %
ALLOWANCE FOR CREDIT LOSSES
Allowance at beginning of period
$ 13,390
$ 13,108
$ 12,767
$ 12,833
$ 12,640
Charge-offs
527
191
452
179
92
Recoveries
134
145
71
433
95
Net loan charge-offs (recoveries)
393
46
381
(254)
(3)
Provision for credit losses – loans
98
328
722
(320)
190
Allowance at end of period
$ 13,095
$ 13,390
$ 13,108
$ 12,767
$ 12,833
Allowance for credit losses to gross loans
0.95 %
0.98 %
0.97 %
0.96 %
0.96 %
NET LOAN CHARGE-OFFS (RECOVERIES)
Commercial and industrial
$ 334
$ (2)
$ 242
$ (41)
$ (4)
Commercial real estate
(29)
(6)
(3)
(3)
(10)
Agricultural
—
(2)
(6)
—
2
Residential real estate
(19)
(63)
(14)
(266)
(25)
Consumer
107
119
162
56
34
Total
$ 393
$ 46
$ 381
$ (254)
$ (3)
Net (recoveries) charge-offs (Quarter to Date
annualized to average loans)
0.03 %
0.00 %
0.03 %
(0.02) %
0.00 %
Net (recoveries) charge-offs (Year to Date
annualized to average loans)
0.12 %
0.00 %
0.03 %
(0.02) %
0.00 %
DELINQUENT AND NONACCRUAL LOANS
Accruing loans 30-89 days past due
$ 1,484
$ 7,938
$ 3,895
$ 715
$ 3,132
Accruing loans past due 90 days or more
15
—
87
—
133
Total accruing past due loans
1,499
7,938
3,982
715
3,265
Nonaccrual loans
994
1,283
982
520
414
Total past due and nonaccrual loans
$ 2,493
$ 9,221
$ 4,964
$ 1,235
$ 3,679
G
CONSOLIDATED LOAN AND DEPOSIT ANALYSIS (UNAUDITED)
(Dollars in thousands)
Loan Analysis
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
Annualized
Growth %
Quarter to Date
Commercial and industrial
$ 238,245
$ 226,281
$ 209,738
$ 195,814
$ 194,914
21.15 %
Commercial real estate
547,005
561,123
564,244
566,639
564,254
(10.06) %
Advances to mortgage brokers
39,300
29,688
18,541
24,807
39,099
129.51 %
Agricultural
94,996
93,695
99,994
99,233
96,689
5.55 %
Total commercial loans
919,546
910,787
892,517
886,493
894,956
3.85 %
Residential real estate
365,188
356,658
356,418
348,196
343,474
9.57 %
Consumer
96,902
98,063
100,528
99,985
95,972
(4.74) %
Gross loans
$ 1,381,636
$ 1,365,508
$ 1,349,463
$ 1,334,674
$ 1,334,402
4.72 %
Deposit Analysis
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
Annualized
Growth %
Quarter to Date
Noninterest bearing demand deposits
$ 412,193
$ 413,272
$ 428,505
$ 445,043
$ 458,845
(1.04) %
Interest bearing demand deposits
338,329
349,401
320,737
363,558
335,922
(12.68) %
Savings
603,328
639,491
628,079
628,795
606,644
(22.62) %
Certificates of deposit
368,449
366,143
346,374
332,078
313,537
2.52 %
Total deposits
$ 1,722,299
$ 1,768,307
$ 1,723,695
$ 1,769,474
$ 1,714,948
(10.41) %
H
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)
Three Months Ended
June 30
2024
March 31
2024
December 31
2023
September 30
2023
June 30
2023
Noninterest expenses
$ 12,895
$ 12,676
$ 11,915
$ 12,658
$ 12,539
Amortization of acquisition intangibles
1
—
1
—
1
Core noninterest expense
(A)
$ 12,894
$ 12,676
$ 11,914
$ 12,658
$ 12,538
Net interest income
$ 13,550
$ 13,242
$ 13,612
$ 14,302
$ 14,679
Tax equivalent adjustment for net interest margin
237
246
246
250
255
Net interest income (FTE)
(B)
13,787
13,488
13,858
14,552
14,934
Noninterest income
3,608
3,468
3,516
3,414
3,604
Tax equivalent adjustment for efficiency ratio
53
51
50
48
47
Core revenue (FTE)
17,448
17,007
17,424
18,014
18,585
Nonrecurring items
Net gains on sale of available-for-sale securities
—
—
—
—
66
Net gains (losses) on foreclosed assets
6
69
8
75
53
Total nonrecurring items
6
69
8
75
119
Adjusted core revenue
(C)
$ 17,442
$ 16,938
$ 17,416
$ 17,939
$ 18,466
Efficiency ratio
(A/C)
73.93 %
74.84 %
68.41 %
70.56 %
67.90 %
Average earning assets
(D)
1,948,173
1,943,758
1,943,937
1,927,906
1,921,913
Net yield on interest earning assets (FTE)
(B/D)
2.83 %
2.78 %
2.85 %
3.02 %
3.11 %
I
View original content:https://www.prnewswire.com/news-releases/isabella-bank-corporation-reports-second-quarter-2024-results-302207187.html
SOURCE Isabella Bank Corporation
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