July 25, 2024

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)

Selected Financial Data

Consolidated Balance Sheets

Consolidated Statements of Income

Average Yields and Costs

Average Balances

Asset Quality Analysis

Consolidated Loan and Deposit Analysis

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

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

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 %

Nonperforming assets to total assets (1)

0.08 %

0.09 %

0.07 %

0.05 %

Allowance for credit losses to gross loans (1)

0.95 %

0.98 %

0.97 %

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

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

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

48,285

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

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

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

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

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

357

284

171

Federal Home Loan Bank advances

638

388

422

617

270

Subordinated debt, net of unamortized issuance costs

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

109

Other

112

206

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

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 %

2.26 %

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 %

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 %

3.65 %

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

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

Fed funds sold

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

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

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

—

133

Total nonperforming loans

1,009

1,283

1,069

520

547

Foreclosed assets

629

579

406

509

405

Debt securities

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 %

Nonperforming assets to total assets

0.08 %

0.09 %

0.07 %

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

Recoveries

134

145

433

Net loan charge-offs (recoveries)

393

381

(254)

(3)

Provision for credit losses – loans

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 %

NET LOAN CHARGE-OFFS (RECOVERIES)

Commercial and industrial

$ 334

$ (2)

$ 242

$ (41)

$ (4)

Commercial real estate

(29)

(6)

(3)

(10)

Agricultural

—

(2)

(6)

—

Residential real estate

(19)

(63)

(14)

(266)

(25)

Consumer

107

119

162

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

—

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

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) %

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

—

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

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

Core revenue (FTE)

17,448

17,007

17,424

18,014

18,585

Nonrecurring items

Net gains on sale of available-for-sale securities

—

Net gains (losses) on foreclosed assets

Total nonrecurring items

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 %

View original content:https://www.prnewswire.com/news-releases/isabella-bank-corporation-reports-second-quarter-2024-results-302207187.html

SOURCE Isabella Bank Corporation

Isabella Bank Corporation Reports Second Quarter 2024 Results

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Isabella Bank Corporation Reports Second Quarter 2024 Results

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