Isabella Bank Corporation Reports Fourth Quarter and 2025 Annual Earnings
Rhea-AI Summary
Isabella Bank Corporation (Nasdaq:ISBA) reported 2025 net income of $18.9M ($2.56 diluted EPS), up from $13.9M in 2024, and Q4 2025 net income of $4.7M ($0.64). Key 2025 highlights: loans grew by $112.8M, total deposits rose $72.6M, NIM improved to 3.16%, AUM reached $707M, and tangible book value per share rose to $25.01.
Total assets were $2.2B, AFS securities fair value was $497.8M with reduced unrealized losses, ACL was $13.7M, and the company repurchased 156,957 shares at an average ~$30.
Positive
- Net income growth of 36% year-over-year (2025 vs 2024)
- Tangible book value per share increased to $25.01 from $21.82 (+14.6%)
Negative
- Income tax expense rose to $5.2M in 2025 from $2.5M in 2024 (ETR 22% vs 15%)
- Noninterest expenses increased by $2.8M year-over-year
- One-time tax-related charges totaling $1.137M in 2025 (deferred tax asset write-off $942k; BOLI tax $195k)
News Market Reaction
On the day this news was published, ISBA gained 0.24%, reflecting a mild positive market reaction. This price movement added approximately $816K to the company's valuation, bringing the market cap to $341M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ISBA slipped 0.46% while peers showed mixed moves: FUNC -0.93%, MBCN -0.35%, PKBK -0.45%, TSBK -0.33%, and LCNB +1.02%. This points to stock-specific trading rather than a unified regional bank move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 05 | CFO appointment | Positive | -2.9% | New CFO with 30+ years experience to lead financial strategy. |
| Nov 20 | Dividend declaration | Positive | +2.1% | Announced Q4 2025 dividend of $0.28 per share with 2.77% yield. |
| Oct 27 | Q3 2025 earnings | Positive | -1.0% | Reported higher Q3 net income, improved NIM, and asset growth. |
| Oct 09 | Director appointment | Positive | +2.6% | Added experienced tax and finance executive to boards. |
| Aug 28 | Dividend announcement | Positive | +0.2% | Declared Q3 2025 $0.28 dividend with 3.29% annualized yield. |
Recent news often sees modest reactions, with leadership and dividend updates slightly positive and earnings/news sometimes met with mild selling.
Over the past six months, Isabella Bank’s news flow has focused on governance, earnings, and shareholder returns. Board and executive appointments on Oct 6, 2025 and Jan 5, 2026 highlighted efforts to deepen financial and tax expertise. Regular dividends of $0.28 per share underscored a continuing capital return policy. Q3 2025 earnings on Oct 27, 2025 showed higher net income, deposits of $1.93B, NIM of 3.15%, and tangible book value growth. Today’s strong 2025 earnings build on that trajectory of gradual balance sheet expansion and profitability gains.
Market Pulse Summary
This announcement highlights a strong 2025 for Isabella Bank, with net income of $18.9M, diluted EPS of $2.56, and loan growth of $99M. Net interest margin improved to 3.16%, while credit quality remained solid, with nonperforming loans at 0.30%. Deposits and wealth management assets also grew. Historically, earnings and dividend news have produced only modest stock reactions, so investors may focus on sustained margin trends, credit performance, and balance sheet growth in upcoming periods.
Key Terms
net interest margin financial
available-for-sale ("AFS") securities financial
allowance for credit losses financial
bank-owned life insurance financial
nonaccrual loans financial
effective tax rate financial
AI-generated analysis. Not financial advice.
MOUNT PLEASANT, MI / ACCESS Newswire / February 5, 2026 / Isabella Bank Corporation (Nasdaq:ISBA) ("Isabella" or the "Company") reported net income of
2025 HIGHLIGHTS
Loans, excluding advances to mortgage brokers, grew
$99 million , or7% Isabella Wealth assets under management increased
$49 million , or7% , to$707 million Total deposits increased
$73 million , or4% Net income growth of
36% from 2024Net interest margin ("NIM") improved to
3.16% , up from2.90% in 2024Credit quality was strong, with a ratio of nonperforming loans to total loans of
0.30% at December 31, 2025
"Isabella Bank Corporation had an outstanding 2025, driven by growth across our markets and increases in our loans, deposits, and wealth management services," said CEO Jerome Schwind. "During the year, we also launched initiatives to strengthen our noninterest income, which are already contributing positive results. We continue to attract new customers while remaining focused on our current customers," he added.
"We uplisted our stock to the Nasdaq in May, and have seen significant volume and price growth since then," Schwind added. "Together, our strong financial results and stock performance position us well as we enter 2026."
FINANCIAL CONDITION
Total assets were
AFS securities at fair value were
Loans were
During the year, the commercial real estate and commercial and industrial portfolios grew
The allowance for credit losses ("ACL") was
BOLI assets were
Total deposits were
Total equity was
RESULTS OF OPERATIONS
Net income in the fourth quarter of 2025 was
Net interest income was
Net interest income was
The provision for credit losses in the fourth quarter of 2025 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 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) 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 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 |
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 | Year Ended | |||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | December 31 | December 31 | ||||||||||||||||||||||
PER SHARE | ||||||||||||||||||||||||||||
Basic earnings | $ | 0.64 | $ | 0.71 | $ | 0.68 | $ | 0.53 | $ | 0.54 | $ | 2.56 | $ | 1.86 | ||||||||||||||
Diluted earnings | 0.64 | 0.71 | 0.68 | 0.53 | 0.54 | 2.56 | 1.86 | |||||||||||||||||||||
Dividends | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 1.12 | 1.12 | |||||||||||||||||||||
Book value (1) | 31.60 | 30.94 | 29.95 | 29.10 | 28.32 | 31.60 | 28.32 | |||||||||||||||||||||
Tangible book value (1) (2) | 25.01 | 24.37 | 23.39 | 22.58 | 21.82 | 25.01 | 21.82 | |||||||||||||||||||||
Market price (1) | 50.00 | 35.25 | 30.15 | 23.59 | 25.99 | 50.00 | 25.99 | |||||||||||||||||||||
Common shares outstanding (1) (3) | 7,322,207 | 7,350,567 | 7,361,684 | 7,408,010 | 7,424,893 | 7,322,207 | 7,424,893 | |||||||||||||||||||||
Average number of diluted common shares outstanding (3) | 7,345,610 | 7,371,652 | 7,398,109 | 7,432,162 | 7,451,718 | 7,385,862 | 7,482,374 | |||||||||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||||||||||
Return on average total assets | 0.85 | % | 0.94 | % | 0.96 | % | 0.77 | % | 0.76 | % | 0.88 | % | 0.67 | % | ||||||||||||||
Return on average shareholders' equity | 8.04 | % | 9.28 | % | 9.19 | % | 7.48 | % | 7.47 | % | 8.51 | % | 6.73 | % | ||||||||||||||
Return on average tangible shareholders' equity (2) | 10.16 | % | 11.83 | % | 11.78 | % | 9.65 | % | 9.66 | % | 10.87 | % | 8.78 | % | ||||||||||||||
Net interest margin yield (fully taxable equivalent) (1) | 3.28 | % | 3.15 | % | 3.14 | % | 3.06 | % | 2.98 | % | 3.16 | % | 2.90 | % | ||||||||||||||
Efficiency ratio (2) | 65.02 | % | 67.62 | % | 72.14 | % | 72.39 | % | 71.20 | % | 69.11 | % | 73.01 | % | ||||||||||||||
Loan to deposit ratio (1) | 84.43 | % | 74.36 | % | 75.57 | % | 76.07 | % | 81.48 | % | 84.43 | % | 81.48 | % | ||||||||||||||
Shareholders' equity to total assets (1) | 10.47 | % | 10.06 | % | 10.23 | % | 10.25 | % | 10.08 | % | 10.47 | % | 10.08 | % | ||||||||||||||
Tangible shareholders' equity to tangible assets (1) | 8.47 | % | 8.10 | % | 8.17 | % | 8.14 | % | 7.95 | % | 8.47 | % | 7.95 | % | ||||||||||||||
ASSETS UNDER MANAGEMENT | ||||||||||||||||||||||||||||
Wealth assets under management (1) | 707,118 | 679,724 | 678,959 | 656,617 | 658,042 | 707,118 | 658,042 | |||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||
Nonaccrual loans (1) | 4,578 | 3,443 | 1,164 | 173 | 282 | 4,578 | 282 | |||||||||||||||||||||
Foreclosed assets (1) | 938 | 1,018 | 667 | 649 | 544 | 938 | 544 | |||||||||||||||||||||
Net loan charge-offs (recoveries) | 34 | 74 | (1,432 | ) | (52 | ) | 102 | (1,376 | ) | 1,900 | ||||||||||||||||||
Net loan charge-offs (recoveries) to average loans outstanding | 0.00 | % | 0.01 | % | (0.10 | )% | 0.00 | % | 0.01 | % | (0.10 | )% | 0.14 | % | ||||||||||||||
Nonperforming loans to total loans (1) | 0.30 | % | 0.24 | % | 0.09 | % | 0.01 | % | 0.02 | % | 0.30 | % | 0.02 | % | ||||||||||||||
Nonperforming assets to total assets (1) | 0.25 | % | 0.20 | % | 0.09 | % | 0.04 | % | 0.04 | % | 0.25 | % | 0.04 | % | ||||||||||||||
Allowance for credit losses to loans (1) | 0.89 | % | 0.92 | % | 0.93 | % | 0.93 | % | 0.91 | % | 0.89 | % | 0.91 | % | ||||||||||||||
CAPITAL RATIOS (1) | ||||||||||||||||||||||||||||
Tier 1 leverage | 8.84 | % | 8.71 | % | 9.04 | % | 8.96 | % | 8.86 | % | 8.84 | % | 8.86 | % | ||||||||||||||
Common equity tier 1 capital | 11.73 | % | 12.37 | % | 12.46 | % | 12.58 | % | 12.21 | % | 11.73 | % | 12.21 | % | ||||||||||||||
Tier 1 risk-based capital | 11.73 | % | 12.37 | % | 12.46 | % | 12.58 | % | 12.21 | % | 11.73 | % | 12.21 | % | ||||||||||||||
Total risk-based capital | 14.41 | % | 15.20 | % | 15.34 | % | 15.50 | % | 15.06 | % | 14.41 | % | 15.06 | % | ||||||||||||||
(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
A
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and demand deposits due from banks | $ | 22,935 | $ | 32,124 | $ | 34,246 | $ | 28,786 | $ | 22,830 | ||||||||||
Fed Funds sold and interest bearing balances due from banks | 3,106 | 129,177 | 74,308 | 40,393 | 1,712 | |||||||||||||||
Total cash and cash equivalents | 26,041 | 161,301 | 108,554 | 69,179 | 24,542 | |||||||||||||||
Available-for-sale securities, at fair value | 497,791 | 511,970 | 500,560 | 513,040 | 489,029 | |||||||||||||||
Federal Home Loan Bank stock | 5,600 | 5,600 | 5,600 | 5,600 | 12,762 | |||||||||||||||
Mortgage loans held-for-sale | 423 | 737 | 55 | 127 | 242 | |||||||||||||||
Loans | 1,536,364 | 1,431,905 | 1,397,513 | 1,367,724 | 1,423,571 | |||||||||||||||
Less allowance for credit losses | 13,727 | 13,149 | 12,977 | 12,735 | 12,895 | |||||||||||||||
Net loans | 1,522,637 | 1,418,756 | 1,384,536 | 1,354,989 | 1,410,676 | |||||||||||||||
Premises and equipment | 29,000 | 28,659 | 28,171 | 28,108 | 27,659 | |||||||||||||||
Cash surrender value of bank-owned life insurance policies | 46,133 | 45,651 | 45,774 | 45,833 | 34,882 | |||||||||||||||
Goodwill and other intangible assets | 48,282 | 48,282 | 48,282 | 48,282 | 48,283 | |||||||||||||||
Other assets | 33,541 | 38,698 | 34,636 | 37,429 | 38,166 | |||||||||||||||
Total assets | $ | 2,209,448 | $ | 2,259,654 | $ | 2,156,168 | $ | 2,102,587 | $ | 2,086,241 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Demand deposits | $ | 426,342 | $ | 421,027 | $ | 493,477 | $ | 404,194 | $ | 416,373 | ||||||||||
Interest bearing demand deposits | 266,187 | 248,666 | 223,376 | 243,939 | 237,548 | |||||||||||||||
Money market deposits | 436,631 | 558,212 | 446,845 | 473,138 | 423,883 | |||||||||||||||
Savings | 280,429 | 292,899 | 289,746 | 286,399 | 281,665 | |||||||||||||||
Certificates of deposit | 410,065 | 404,798 | 395,932 | 390,239 | 387,591 | |||||||||||||||
Total deposits | 1,819,654 | 1,925,602 | 1,849,376 | 1,797,909 | 1,747,060 | |||||||||||||||
Short-term borrowings | 68,000 | 62,022 | 43,208 | 47,310 | 53,567 | |||||||||||||||
Federal Home Loan Bank advances | 45,000 | - | - | - | 30,000 | |||||||||||||||
Subordinated debt, net of unamortized issuance costs | 29,514 | 29,492 | 29,469 | 29,447 | 29,424 | |||||||||||||||
Total borrowed funds | 142,514 | 91,514 | 72,677 | 76,757 | 112,991 | |||||||||||||||
Other liabilities | 15,884 | 15,118 | 13,615 | 12,365 | 15,914 | |||||||||||||||
Total liabilities | 1,978,052 | 2,032,234 | 1,935,668 | 1,887,031 | 1,875,965 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Common stock | 123,204 | 124,284 | 124,607 | 125,547 | 126,224 | |||||||||||||||
Shares to be issued for deferred compensation obligations | 2,366 | 2,373 | 2,331 | 2,508 | 2,383 | |||||||||||||||
Retained earnings | 113,849 | 111,172 | 107,949 | 104,940 | 103,024 | |||||||||||||||
Accumulated other comprehensive loss | (8,023 | ) | (10,409 | ) | (14,387 | ) | (17,439 | ) | (21,355 | ) | ||||||||||
Total shareholders' equity | 231,396 | 227,420 | 220,500 | 215,556 | 210,276 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,209,448 | $ | 2,259,654 | $ | 2,156,168 | $ | 2,102,587 | $ | 2,086,241 | ||||||||||
B
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | December 31 | December 31 | ||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||
Loans | $ | 21,669 | $ | 20,583 | $ | 19,832 | $ | 19,348 | $ | 20,145 | $ | 81,432 | $ | 77,295 | ||||||||||||||
Available-for-sale securities | 3,048 | 2,994 | 3,032 | 2,643 | 2,656 | 11,717 | 11,093 | |||||||||||||||||||||
Federal Home Loan Bank stock | 63 | 70 | 125 | 160 | 168 | 418 | 640 | |||||||||||||||||||||
Federal funds sold and other | 498 | 1,235 | 253 | 482 | 200 | 2,468 | 950 | |||||||||||||||||||||
Total interest income | 25,278 | 24,882 | 23,242 | 22,633 | 23,169 | 96,035 | 89,978 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 7,380 | 8,012 | 7,391 | 7,463 | 7,583 | 30,246 | 29,690 | |||||||||||||||||||||
Short-term borrowings | 587 | 441 | 324 | 341 | 413 | 1,693 | 1,439 | |||||||||||||||||||||
Federal Home Loan Bank advances | 317 | - | 132 | 38 | 352 | 487 | 1,949 | |||||||||||||||||||||
Subordinated debt | 266 | 267 | 266 | 266 | 266 | 1,065 | 1,065 | |||||||||||||||||||||
Total interest expense | 8,550 | 8,720 | 8,113 | 8,108 | 8,614 | 33,491 | 34,143 | |||||||||||||||||||||
Net interest income | 16,728 | 16,162 | 15,129 | 14,525 | 14,555 | 62,544 | 55,835 | |||||||||||||||||||||
Provision (reversal) for credit losses | 434 | 209 | (1,099 | ) | (107 | ) | 376 | (563 | ) | 1,884 | ||||||||||||||||||
Net interest income after provision for credit losses | 16,294 | 15,953 | 16,228 | 14,632 | 14,179 | 63,107 | 53,951 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Service charges and fees | 2,461 | 2,352 | 2,071 | 1,974 | 2,186 | 8,858 | 8,275 | |||||||||||||||||||||
Wealth management fees | 1,110 | 1,074 | 1,084 | 979 | 1,051 | 4,247 | 4,041 | |||||||||||||||||||||
Earnings on bank-owned life insurance policies | 485 | 468 | 300 | 372 | 259 | 1,625 | 1,007 | |||||||||||||||||||||
Net gain on sale of mortgage loans | 65 | 38 | 47 | 30 | 75 | 180 | 213 | |||||||||||||||||||||
Other | 323 | 376 | 184 | 173 | 401 | 1,056 | 1,040 | |||||||||||||||||||||
Total noninterest income | 4,444 | 4,308 | 3,686 | 3,528 | 3,972 | 15,966 | 14,576 | |||||||||||||||||||||
Noninterest expenses | ||||||||||||||||||||||||||||
Compensation and benefits | 7,532 | 7,630 | 7,496 | 7,383 | 7,340 | 30,041 | 28,576 | |||||||||||||||||||||
Occupancy and equipment | 2,663 | 2,628 | 2,650 | 2,600 | 2,554 | 10,541 | 10,524 | |||||||||||||||||||||
Other professional services | 815 | 851 | 863 | 711 | 584 | 3,240 | 2,212 | |||||||||||||||||||||
ATM and debit card fees | 575 | 595 | 555 | 486 | 516 | 2,211 | 1,975 | |||||||||||||||||||||
Marketing | 547 | 514 | 469 | 459 | 458 | 1,989 | 1,712 | |||||||||||||||||||||
FDIC insurance premiums | 339 | 271 | 267 | 303 | 309 | 1,180 | 1,132 | |||||||||||||||||||||
Memberships and subscriptions | 276 | 272 | 272 | 247 | 239 | 1,067 | 928 | |||||||||||||||||||||
Other losses | 142 | 47 | 339 | 115 | 209 | 643 | 1,117 | |||||||||||||||||||||
Other | 1,032 | 1,177 | 834 | 995 | 1,121 | 4,038 | 3,953 | |||||||||||||||||||||
Total noninterest expenses | 13,921 | 13,985 | 13,745 | 13,299 | 13,330 | 54,950 | 52,129 | |||||||||||||||||||||
Income before income tax expense | 6,817 | 6,276 | 6,169 | 4,861 | 4,821 | 24,123 | 16,398 | |||||||||||||||||||||
Income tax expense | 2,127 | 1,036 | 1,138 | 912 | 825 | 5,213 | 2,509 | |||||||||||||||||||||
Net income | $ | 4,690 | $ | 5,240 | $ | 5,031 | $ | 3,949 | $ | 3,996 | $ | 18,910 | $ | 13,889 | ||||||||||||||
Earnings per common share | ||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.71 | $ | 0.68 | $ | 0.53 | $ | 0.54 | $ | 2.56 | $ | 1.86 | ||||||||||||||
Diluted | 0.64 | 0.71 | 0.68 | 0.53 | 0.54 | 2.56 | 1.86 | |||||||||||||||||||||
Cash dividends per common share | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 1.12 | 1.12 | |||||||||||||||||||||
C
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 | ||||||||||||||||||||||||||||||||||||
December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
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) | $ | 1,493,654 | $ | 21,669 | 5.74 | % | $ | 1,409,928 | $ | 20,583 | 5.78 | % | $ | 1,412,578 | $ | 20,145 | 5.67 | % | ||||||||||||||||||
AFS securities (2) | 515,050 | 3,186 | 2.47 | % | 517,286 | 3,138 | 2.42 | % | 522,733 | 2,869 | 2.18 | % | ||||||||||||||||||||||||
Federal Home Loan Bank stock | 5,600 | 63 | 4.54 | % | 5,600 | 70 | 4.95 | % | 12,762 | 168 | 5.24 | % | ||||||||||||||||||||||||
Fed funds sold | 9 | - | 3.86 | % | 186 | 2 | 4.35 | % | 8 | - | 4.59 | % | ||||||||||||||||||||||||
Other (3) | 28,344 | 498 | 6.88 | % | 123,183 | 1,233 | 3.92 | % | 15,905 | 200 | 5.00 | % | ||||||||||||||||||||||||
Total interest earning assets | 2,042,657 | 25,416 | 4.94 | % | 2,056,183 | 25,026 | 4.83 | % | 1,963,986 | 23,382 | 4.74 | % | ||||||||||||||||||||||||
NONEARNING ASSETS | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (13,213 | ) | (13,057 | ) | (12,598 | ) | ||||||||||||||||||||||||||||||
Cash and demand deposits due from banks | 23,239 | 25,591 | 22,800 | |||||||||||||||||||||||||||||||||
Premises and equipment | 29,009 | 28,313 | 27,773 | |||||||||||||||||||||||||||||||||
Other assets | 117,201 | 109,692 | 92,608 | |||||||||||||||||||||||||||||||||
Total assets | $ | 2,198,893 | $ | 2,206,722 | $ | 2,094,569 | ||||||||||||||||||||||||||||||
INTEREST BEARING LIABILITIES | ||||||||||||||||||||||||||||||||||||
Interest bearing demand deposits | $ | 249,809 | 211 | 0.34 | % | $ | 234,105 | 144 | 0.24 | % | $ | 232,271 | 212 | 0.36 | % | |||||||||||||||||||||
Money market deposits | 449,129 | 2,900 | 2.56 | % | 534,127 | 3,533 | 2.63 | % | 436,235 | 2,970 | 2.71 | % | ||||||||||||||||||||||||
Savings | 282,306 | 498 | 0.70 | % | 289,442 | 560 | 0.77 | % | 276,856 | 446 | 0.64 | % | ||||||||||||||||||||||||
Certificates of deposit | 408,861 | 3,771 | 3.66 | % | 399,781 | 3,775 | 3.75 | % | 386,871 | 3,955 | 4.07 | % | ||||||||||||||||||||||||
Short-term borrowings | 67,521 | 587 | 3.45 | % | 52,700 | 441 | 3.32 | % | 50,862 | 413 | 3.22 | % | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 30,163 | 317 | 4.12 | % | - | - | - | % | 28,261 | 352 | 4.88 | % | ||||||||||||||||||||||||
Subordinated debt, net of unamortized issuance costs | 29,500 | 266 | 3.61 | % | 29,477 | 267 | 3.61 | % | 29,410 | 266 | 3.62 | % | ||||||||||||||||||||||||
Total interest bearing liabilities | 1,517,289 | 8,550 | 2.24 | % | 1,539,632 | 8,720 | 2.25 | % | 1,440,766 | 8,614 | 2.38 | % | ||||||||||||||||||||||||
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||
Demand deposits | 432,038 | 428,144 | 425,116 | |||||||||||||||||||||||||||||||||
Other liabilities | 18,182 | 14,976 | 15,775 | |||||||||||||||||||||||||||||||||
Shareholders' equity | 231,384 | 223,970 | 212,912 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,198,893 | $ | 2,206,722 | $ | 2,094,569 | ||||||||||||||||||||||||||||||
Net interest income (FTE) | $ | 16,866 | $ | 16,306 | $ | 14,768 | ||||||||||||||||||||||||||||||
Net yield on interest earning assets (FTE) | 3.28 | % | 3.15 | % | 2.98 | % | ||||||||||||||||||||||||||||||
(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.
D
AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED) (continued)
(Dollars in thousands)
Year Ended | ||||||||||||||||||||||||
December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
Average Balance | Tax Equivalent Interest | Average Yield/Rate | Average Balance | Tax Equivalent Interest | Average Yield/Rate | |||||||||||||||||||
INTEREST EARNING ASSETS | ||||||||||||||||||||||||
Loans (1) | $ | 1,416,079 | $ | 81,432 | 5.75 | % | $ | 1,385,287 | $ | 77,295 | 5.58 | % | ||||||||||||
AFS securities (2) | 520,284 | 12,361 | 2.38 | % | 540,433 | 12,023 | 2.22 | % | ||||||||||||||||
Federal Home Loan Bank stock | 6,934 | 418 | 6.03 | % | 12,762 | 640 | 5.01 | % | ||||||||||||||||
Fed funds sold | 52 | 2 | 4.37 | % | 7 | - | 5.19 | % | ||||||||||||||||
Other (3) | 54,982 | 2,466 | 4.49 | % | 17,430 | 950 | 5.45 | % | ||||||||||||||||
Total interest earning assets | 1,998,331 | 96,679 | 4.84 | % | 1,955,919 | 90,908 | 4.65 | % | ||||||||||||||||
NONEARNING ASSETS | ||||||||||||||||||||||||
Allowance for credit losses | (13,132 | ) | (13,061 | ) | ||||||||||||||||||||
Cash and demand deposits due from banks | 23,690 | 24,165 | ||||||||||||||||||||||
Premises and equipment | 28,400 | 27,915 | ||||||||||||||||||||||
Other assets | 109,142 | 86,073 | ||||||||||||||||||||||
Total assets | $ | 2,146,431 | $ | 2,081,011 | ||||||||||||||||||||
INTEREST BEARING LIABILITIES | ||||||||||||||||||||||||
Interest bearing demand deposits | $ | 240,220 | 817 | 0.34 | % | $ | 237,086 | 754 | 0.32 | % | ||||||||||||||
Money market deposits | 473,394 | 12,219 | 2.58 | % | 443,251 | 12,407 | 2.80 | % | ||||||||||||||||
Savings | 286,134 | 2,140 | 0.75 | % | 279,544 | 1,600 | 0.57 | % | ||||||||||||||||
Certificates of deposit | 398,040 | 15,070 | 3.79 | % | 371,750 | 14,929 | 4.02 | % | ||||||||||||||||
Short-term borrowings | 51,430 | 1,693 | 3.29 | % | 45,124 | 1,439 | 3.19 | % | ||||||||||||||||
Federal Home Loan Bank advances | 11,301 | 487 | 4.31 | % | 35,464 | 1,949 | 5.50 | % | ||||||||||||||||
Subordinated debt, net of unamortized issuance costs | 29,466 | 1,065 | 3.61 | % | 29,376 | 1,065 | 3.62 | % | ||||||||||||||||
Total interest bearing liabilities | 1,489,985 | 33,491 | 2.25 | % | 1,441,595 | 34,143 | 2.37 | % | ||||||||||||||||
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Demand deposits | 418,225 | 416,927 | ||||||||||||||||||||||
Other liabilities | 15,896 | 16,088 | ||||||||||||||||||||||
Shareholders' equity | 222,325 | 206,401 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,146,431 | $ | 2,081,011 | ||||||||||||||||||||
Net interest income (FTE) | $ | 63,188 | $ | 56,765 | ||||||||||||||||||||
Net yield on interest earning assets (FTE) | 3.16 | % | 2.90 | % | ||||||||||||||||||||
(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.
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||
Commercial and industrial (4) | $ | 220,450 | $ | 218,132 | $ | 207,719 | $ | 205,172 | $ | 200,623 | ||||||||||
Commercial real estate (4) | 639,758 | 626,642 | 614,383 | 596,282 | 591,718 | |||||||||||||||
Advances to mortgage brokers | 76,676 | 5,056 | 3,005 | 3,015 | 63,080 | |||||||||||||||
Agricultural | 102,109 | 97,794 | 96,842 | 94,359 | 99,694 | |||||||||||||||
Total commercial loans | 1,038,993 | 947,624 | 921,949 | 898,828 | 955,115 | |||||||||||||||
Residential real estate | 427,880 | 412,056 | 398,668 | 387,348 | 380,872 | |||||||||||||||
Consumer | 69,491 | 72,225 | 76,896 | 81,548 | 87,584 | |||||||||||||||
Loans | $ | 1,536,364 | $ | 1,431,905 | $ | 1,397,513 | $ | 1,367,724 | $ | 1,423,571 | ||||||||||
(4) Certain amounts reported as commercial and industrial loans have been reclassified as commercial real estate loans to conform to the December 31, 2025 presentation
E
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands except per share amounts and ratios)
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | December 31 | December 31 | |||||||||||||||||||||||||
Loans | $ | 1,536,364 | $ | 1,431,905 | $ | 1,397,513 | $ | 1,367,724 | $ | 1,423,571 | $ | 1,536,364 | $ | 1,423,571 | |||||||||||||||||
Advances to mortgage brokers | 76,676 | 5,056 | 3,005 | 3,015 | 63,080 | 76,676 | 63,080 | ||||||||||||||||||||||||
Adjusted loans | $ | 1,459,688 | $ | 1,426,849 | $ | 1,394,508 | $ | 1,364,709 | $ | 1,360,491 | $ | 1,459,688 | $ | 1,360,491 | |||||||||||||||||
Total shareholders' equity | $ | 231,396 | $ | 227,420 | $ | 220,500 | $ | 215,556 | $ | 210,276 | $ | 231,396 | $ | 210,276 | |||||||||||||||||
Goodwill and other intangible assets | 48,282 | 48,282 | 48,282 | 48,282 | 48,283 | 48,282 | 48,283 | ||||||||||||||||||||||||
Tangible equity | (A) | 183,114 | 179,138 | 172,218 | 167,274 | 161,993 | 183,114 | 161,993 | |||||||||||||||||||||||
Common shares outstanding (1) | (B) | 7,322,207 | 7,350,567 | 7,361,684 | 7,408,010 | 7,424,893 | 7,322,207 | 7,424,893 | |||||||||||||||||||||||
Tangible book value per share | (A/B) | $ | 25.01 | $ | 24.37 | $ | 23.39 | $ | 22.58 | $ | 21.82 | $ | 25.01 | $ | 21.82 | ||||||||||||||||
Noninterest expenses | $ | 13,921 | $ | 13,985 | $ | 13,745 | $ | 13,299 | $ | 13,330 | $ | 54,950 | $ | 52,129 | |||||||||||||||||
Amortization of acquisition intangibles | - | - | - | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
Adjusted noninterest expense | (C) | $ | 13,921 | $ | 13,985 | $ | 13,745 | $ | 13,298 | $ | 13,329 | $ | 54,949 | $ | 52,128 | ||||||||||||||||
Net interest income | $ | 16,728 | $ | 16,162 | $ | 15,129 | $ | 14,525 | $ | 14,555 | $ | 62,544 | $ | 55,835 | |||||||||||||||||
Tax equivalent adjustment for net interest margin | 138 | 144 | 178 | 184 | 213 | 644 | 930 | ||||||||||||||||||||||||
Net interest income (FTE) | 16,866 | 16,306 | 15,307 | 14,709 | 14,768 | 63,188 | 56,765 | ||||||||||||||||||||||||
Noninterest income | 4,444 | 4,308 | 3,686 | 3,528 | 3,972 | 15,966 | 14,576 | ||||||||||||||||||||||||
Tax equivalent adjustment for efficiency ratio | 102 | 98 | 63 | 78 | 54 | 341 | 211 | ||||||||||||||||||||||||
Adjusted revenue (FTE) | 21,412 | 20,712 | 19,056 | 18,315 | 18,794 | 79,495 | 71,552 | ||||||||||||||||||||||||
Net gains (losses) on foreclosed assets | 3 | 31 | 3 | (55 | ) | 74 | (18 | ) | 153 | ||||||||||||||||||||||
Adjusted revenue | (D) | $ | 21,409 | $ | 20,681 | $ | 19,053 | $ | 18,370 | $ | 18,720 | $ | 79,513 | $ | 71,399 | ||||||||||||||||
Efficiency ratio | (C/D) | 65.02 | % | 67.62 | % | 72.14 | % | 72.39 | % | 71.20 | % | 69.11 | % | 73.01 | % | ||||||||||||||||
(1) Whole shares.
F
SOURCE: Isabella Bank Corporation
View the original press release on ACCESS Newswire
FAQ
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