STOCK TITAN
  1. Home
  2. Sec-filings
  3. ISBA
  4. [8-K] ISABELLA BANK CORP Reports Material Event

Isabella Bank (Nasdaq: ISBA) lifts margin, grows loans in Q2 2026

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Isabella Bank Corporation reported second quarter 2026 net income of $5.0 million, or $0.69 per diluted share, matching the prior-year quarter, while net income for the first six months rose to $10.0 million, or $1.37 per diluted share. Net interest income increased to $18.1 million, and net interest margin expanded to 3.54% from 3.14% a year earlier, reflecting higher loan yields and lower funding costs. Noninterest income grew to $4.4 million, led by higher service charges, wealth management fees, and earnings on bank-owned life insurance.

On the balance sheet, total assets were $2.2 billion and loans reached $1.6 billion, up $53.3 million since year-end, while deposits were $1.8 billion and the loan-to-deposit ratio rose to 87.83%. Asset quality remained solid but mixed, with nonaccrual loans increasing to $7.8 million and net charge-offs of $384,000, though past-due loans stayed very low. Shareholders’ equity rose to $248.7 million (book value $32.60 per share) aided by an at-the-market stock offering that added $11.7 million of equity. The company also signed a merger agreement with Grand River Commerce, Inc. and was added to the Russell 2000 Index.

Positive

  • None.

Negative

  • None.

Filing Explained

By June 30, 2026, the ATM offering had issued 303,371 shares, increasing equity by $11.7 million and diluting existing ownership absent offsets.

Under Item 2.02, this Form 8-K furnishes Isabella Bank’s second-quarter results and reports that its at-the-market offering had issued $11.7 million of equity through 303,371 shares by June 30, 2026. The supported current state is issuance of those shares, which increases the share base for existing common holders.

An at-the-market program permits gradual sales of new shares at prevailing market prices. Because additional shares increase the total count, the disclosed issuance reduces an existing holder’s percentage ownership absent offsetting changes.

Common shares outstanding were 7,628,809 at June 30, 2026, versus 7,322,207 at December 31, 2025. The Grand River transaction remains proposed; the filing identifies timing, closing conditions, regulatory approvals, and Grand River shareholder approval as milestones still affecting completion.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income Q2 2026 $5.0 million Three months ended June 30, 2026
Diluted EPS Q2 2026 $0.69 per share Three months ended June 30, 2026
Net interest margin Q2 2026 3.54% Fully tax-equivalent basis, versus 3.14% in Q2 2025
Total assets $2.2 billion As of June 30, 2026
Loans held for investment $1.6 billion As of June 30, 2026; up $53.3 million since December 31, 2025
Total deposits $1.8 billion As of June 30, 2026; down $9.7 million from year-end 2025
Total shareholders’ equity $248.7 million As of June 30, 2026; book value $32.60 per share
Loan-to-deposit ratio 87.83% At June 30, 2026
net interest margin (NIM) financial
"Net interest margin (NIM) improved to 3.54%, up from 3.14%."
Net interest margin (NIM) measures how much profit a bank or lending business makes from its core activity of borrowing and lending: it’s the difference between interest earned on loans and investments and interest paid to depositors and lenders, expressed as a percentage of the assets that earn interest. Think of it like a store’s markup on goods — a higher NIM means the lender keeps more on each dollar it intermediates, so investors use it to judge profitability and sensitivity to interest-rate changes.
allowance for credit losses (ACL) financial
"The allowance for credit losses (ACL) increased $752,000 to $14.5 million."
Allowance for credit losses (ACL) is an accounting reserve banks and lenders set aside to cover loans and other receivables that may not be repaid. Think of it as a cushion or rainy-day fund that reduces reported assets to reflect expected losses; when the cushion grows, it can signal rising borrower trouble or more conservative accounting, and when it shrinks, it may boost reported profits and capital. Investors watch ACL to judge a lender’s risk exposure, earnings quality, and capital strength.
tangible book value per share financial
"Tangible book value per share (non-GAAP) was $26.27 as of June 30, 2026."
Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.
efficiency ratio financial
"Efficiency ratio (2) | 67.84% | 68.50% | 65.02% | 67.62%."
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
bank-owned life insurance (BOLI) financial
"Earnings on bank-owned life insurance (BOLI) policies increased $134,000."
at-the-market stock offering financial
"Launched a successful at-the-market stock offering, increasing equity by $11.7 million."
An at-the-market stock offering is a way for a company to raise cash by selling newly issued shares directly into the open market at the current trading price over time, rather than all at once. Investors should care because it provides flexible funding with potentially lower immediate price pressure, but it also gradually reduces each existing share’s slice of ownership and can affect market supply and share price.
Net income (Q2 2026) $5.0 million compared with $5.0 million in second quarter 2025
Diluted EPS (Q2 2026) $0.69 compared with $0.68 in second quarter 2025
Net income (six months 2026) $10.0 million compared with $9.0 million for the six months ended June 30, 2025
Net interest income (six months 2026) $35.0 million compared with $29.7 million for the six months ended June 30, 2025
Net interest margin (six months 2026) 3.43% compared with 3.10% for the six months ended June 30, 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

How did Isabella Bank (ISBA) perform financially in the second quarter of 2026?
Isabella Bank reported net income of $5.0 million, or $0.69 per diluted share, for second quarter 2026. For the first six months of 2026, net income was $10.0 million, or $1.37 per diluted share, compared with $9.0 million and $1.21 a year earlier.

What was Isabella Bank’s (ISBA) net interest margin in Q2 2026?
Net interest margin was 3.54% on a fully tax-equivalent basis in second quarter 2026, up from 3.14% a year earlier. Net interest income rose to $18.1 million for the quarter, driven by higher loan yields and lower costs on interest-bearing liabilities.

What asset quality metrics did Isabella Bank (ISBA) report for June 30, 2026?
Nonaccrual loans totaled $7.8 million, and nonperforming loans were 0.49% of total loans at June 30, 2026. Net loan charge-offs were $384,000 for the quarter, and past due but accruing loans (30–89 days) were just 0.06% of total loans.

What capital and book value levels did Isabella Bank (ISBA) report?
Shareholders’ equity was $248.7 million, or $32.60 book value per share, at June 30, 2026. Tangible book value per share (non-GAAP) was $26.27, and the tangible shareholders’ equity to tangible assets ratio stood at 9.23% at period-end.

What strategic actions did Isabella Bank (ISBA) highlight in this quarter?
The company signed a merger agreement with Grand River Commerce, Inc. and Grand River Bank and completed an at-the-market stock offering that increased equity by $11.7 million. Isabella Bank was also added to the Russell 2000 Index during the quarter.
0000842517false00008425172026-07-232026-07-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 23, 2026
ISABELLA BANK CORPORATION
(Exact name of registrant as specified in its charter)
 
Michigan000-18415 38-2830092
(State or other jurisdiction
of incorporation)		(Commission
File Number)		 (IRS Employer
Identification No.)
401 North Main StreetMt. PleasantMichigan 48858-1649
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (989) 772-9471
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-l2)
☐Pre-commencement communications pursuant to Rule l4d-2(b) under the Exchange Act (17 CFR 240.l4d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.l3e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)		Name of each exchange on which registered
Common stock, no par value per shareISBA
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition.
On July 23, 2026, Isabella Bank Corporation issued a press release announcing its financial results for the quarter ended June 30, 2026.
A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor will any of such information be deemed incorporated by reference into any filing made by the registrant under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit
No.		Description
99.1
Press release issued by Isabella Bank Corporation, dated July 23, 2026
104Cover page interactive data file - the cover page XBRL tags are embedded within the inline XBRL document

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 ISABELLA BANK CORPORATION
Dated: July 23, 2026 By: /s/ Gerald J. Ritzert
  Gerald J. Ritzert, Chief Financial Officer


Exhibit 99.1
logo.jpg
Isabella Bank Corporation Reports Second Quarter 2026 Earnings
MT. PLEASANT, MICHIGAN — July 23, 2026 — Isabella Bank Corporation (Nasdaq: ISBA) (“Isabella” or the “Company”) reported net income of $5.0 million, or $0.69 per diluted share, for the second quarter 2026 compared to $5.0 million, or $0.68 per diluted share, for the second quarter 2025.
SECOND QUARTER 2026 HIGHLIGHTS
•Loans grew $30.7 million during the quarter
•Net interest margin (NIM) improved to 3.54%, up from 3.14% in second quarter 2025
•Merger agreement signed with Grand River Commerce, Inc. and its banking subsidiary, Grand River Bank
•Launched a successful at-the-market stock offering, increasing equity by $11.7 million
•Added to the Russell 2000® Index
“Isabella Bank Corporation had another strong quarter, driven by continued loan growth and margin expansion,” said CEO Jerome Schwind. “We also had a series of important events during the quarter aligned with our long-term strategy that will fuel our continued disciplined growth.
“We announced an agreement to acquire Grand River Commerce and Grand River Bank,” Schwind added. “We believe this acquisition will enable us to enter the fast-growing Grand Rapids market with a strong portfolio and customer base. We look forward to welcoming the customers of Grand River Bank to the Isabella Bank family upon completion of the proposed transaction.
“We also launched a successful at-the-market offering of our common stock and were added to the Russell 2000® Index in June. In May, we celebrated one year of being listed on Nasdaq by ringing the closing bell,” he added.
FINANCIAL CONDITION (June 30, 2026 to December 31, 2025 comparison)
Total assets increased $10.2 million, or 0.5%, to $2.2 billion as of June 30, 2026. This increase was primarily due to an increase of $53.3 million in loans and an increase of $15.7 million in cash and cash equivalents. These increases were offset by a $58.5 million decline in available-for-sale (AFS) securities.
The AFS securities portfolio decreased $58.5 million, or 11.8%, to $439.3 million as of June 30, 2026. The decrease was a result of maturities and principal paydowns of $121.8 million, offset by $64.4 million in purchases. Net unrealized losses on AFS securities were $10.8 million as of June 30, 2026, compared to $9.9 million at December 31, 2025. Net unrealized losses as a percentage of the amortized cost of AFS securities were consistent compared to December 31, 2025, at 2%.
Loans increased $53.3 million, or 3.5%, to $1.6 billion as of June 30, 2026, primarily by growth in the commercial real estate and residential real estate portfolios of $33.5 million and $22.1 million, respectively. 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 continues to decrease amid declining demand, competition, and adherence to credit quality standards.
The allowance for credit losses (ACL) increased $752,000, or 5.5%, to $14.5 million as of June 30, 2026. The increase is due to loan growth and an increase in loss rates driven by loans charged off during the year. Nonaccrual loans were $7.8 million as of June 30, 2026 compared to $4.6 million at December 31, 2025. Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.06% at June 30, 2026, compared to 0.44% at year-end 2025.
Total deposits decreased $9.7 million, or 0.5%, to $1.8 billion as of June 30, 2026. The decline was a result of a $20.7 million decline in certificates of deposit, a $14.0 million decline in interest bearing demand deposits, and a $12.3 million decline in noninterest bearing demand deposits. These declines were offset by a $20.4 million increase in savings deposits and a $16.8 million increase in money market accounts.


Total equity was $248.7 million, or $32.60 per share, at June 30, 2026 compared to $231.4 million, or $31.60 per share, as of December 31, 2025. The increase in total equity is primarily due to the issuance of 303,371 shares as part of the previously announced at-the-market stock offering, increasing total equity by $11.7 million. Tangible book value per share (non-GAAP) was $26.27 as of June 30, 2026, compared to $25.01 as of December 31, 2025. Net unrealized losses in the AFS securities portfolio reduced tangible book value per share (non-GAAP) by $1.14 and $1.09 for the respective periods.
RESULTS OF OPERATIONS (for the three and six months ended June 30, 2026, and 2025, unless otherwise noted)
Net income for the three months ended June 30, 2026 was $5.0 million, or $0.69 per diluted share, compared with $5.0 million, or $0.68 per diluted share, for the three months ended June 30, 2025. Net income for the six months ended June 30, 2026 was $10.0 million, or $1.37 per diluted share, compared with $9.0 million, or $1.21 per diluted share, for the six months ended June 30, 2025.
Net interest income was $18.1 million for the three months ended June 30, 2026 and $15.1 million for the three months ended June 30, 2025, representing 3.54% and 3.14% of earning assets, or NIM on a fully tax equivalent basis (non-GAAP), respectively. The book yield from securities was 2.82% and 2.38% for the three months ended June 30, 2026 and 2025, respectively. The yield on loans increased to 5.86% for the three months ended June 30, 2026 from 5.71% for the three months ended June 30, 2025. The increase 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 for the three months ended June 30, 2026 decreased to 2.09% from 2.24% for the three months ended June 30, 2025 primarily due to lower rates on money market and certificate of deposit products.
Net interest income was $35.0 million for the six months ended June 30, 2026 and $29.7 million for the six months ended June 30, 2025, representing 3.43% and 3.10% of earning assets, or NIM on a fully tax equivalent basis (non-GAAP), respectively. The book yield from securities was 2.67% and 2.31% for the six months ended June 30, 2026 and 2025, respectively. The yield on loans increased to 5.82% for the six months ended June 30, 2026 from 5.72% for the six months ended June 30, 2025. The increase 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 for the six months ended June 30, 2026 decreased to 2.12% from 2.25% for the six months ended June 30, 2025 primarily due to lower rates on money market and certificate of deposit products.
The provision for credit losses was $895,000 for the three months ended June 30, 2026, driven by a $465,000 increase in the ACL on loans and net charge offs totaling $384,000. The provision for credit losses for the three months ended June 30, 2025 was a credit of $1.1 million, which reflects $1.4 million in net recoveries, offset by a $242,000 increase in the ACL on loans and an increase in the reserve for unfunded commitments. Recoveries of $1.6 million during second quarter 2025 were related to overdrawn deposit accounts from a single customer that were charged off during the third quarter of 2024.
The provision for credit losses was $1.5 million for the six months ended June 30, 2026, as compared to a credit of $1.2 million for the six months ended June 30, 2025. Net charge offs for the six months ended June 30, 2026 totaled $637,000, while there were net recoveries of $1.5 million for the six months ended June 30, 2025.
Noninterest income for the three months ended June 30, 2026 and 2025 was $4.4 million and $3.7 million, respectively. Service charges and fees increased $479,000 as a result of internal initiatives designed to align fees with the market. Earnings on bank-owned life insurance (BOLI) policies increased $134,000 compared to second quarter 2025 due to additional investments in a separate account BOLI in 2025. Wealth management fees grew $132,000 due to growth in assets under management since second quarter 2025.
Noninterest income for the six months ended June 30, 2026 and 2025 was $8.7 million and $7.2 million, respectively. Service charges and fees increased $877,000 as a result of internal initiatives designed to align fees with the market. Wealth management fees grew $261,000 due to growth in assets under management. Earnings on BOLI policies increased $210,000 due to additional investments in a separate account BOLI in 2025. Other noninterest income in 2026 includes a $137,000 gain related to a death benefit from a BOLI policy.
Noninterest expenses for the three months ended June 30, 2026 and 2025 were $15.4 million and $13.7 million, respectively. Compensation and benefit expenses increased $651,000, reflecting annual merit increases, incentives, and higher medical insurance claims. Occupancy and equipment increased $240,000 and merger-related expenses of $505,000 were included in noninterest expenses in second quarter 2026.
Noninterest expenses for the six months ended June 30, 2026 and 2025 were $30.0 million and $27.0 million, respectively. Compensation and benefit expenses increased $1.2 million for the same reasons as the quarterly comparison. Occupancy and equipment expenses increased $480,000 and merger-related expenses during second quarter 2026 totaled $505,000.


Income tax expense for both of the three months ended June 30, 2026 and 2025 was $1.1 million, while the effective tax rate (ETR) was 18% for both periods. Income tax expense for both of the six months ended June 30, 2026 and 2025 was $2.1 million, while the ETR was 17% for the six months ended June 30, 2026 and 19% for the six months ended June 30, 2025. The ETR in the first six months of 2025 included a one-time tax expense totaling $166,000 due to the taxes owed from the lifetime earnings on BOLI policies that were surrendered during first quarter 2025. Excluding the one-time charge, the ETR was 17% for the first six months of 2025.
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. The Company intends 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) uncertainty or perceived instability in the banking industry as a whole; (ii) increased competition for deposits among traditional and nontraditional financial services companies, and related changes in deposit customer behavior; (iii) the persistent inflationary pressures in the United States, and its impact on market interest rates, the labor market, the economy as a whole, and credit quality; (iv) elevated asset prices; (iv) the Company’s ability to effectively execute its expansion strategy and manage its growth, including identifying and consummating suitable acquisitions; (v) risks relating to the proposed acquisition of of Grand River including, without limitation: the timing of consummation of the proposed transaction between Isabella and Grand River; the risk that any condition to closing of the proposed acquisition may not be satisfied or waived; the risk that the Merger may not be completed at all; the diversion of management time on issues related to the proposed acquisition; the expected impact of the proposed acquisition and on the combined entities’ operations, financial condition, and financial results; the businesses of Isabella and Grand River may not be combined successfully, or such combination may take longer to accomplish than expected; the cost savings from the proposed acquisition may not be fully realized or may take longer to realize than expected; operating costs, customer loss and business disruption following the proposed acquisition, including adverse effects on relationships with employees, may be greater than expected; the risk of deposit and customer attrition; increased competitive pressures on solicitations of customers by competitors; regulatory approvals of the proposed acquisition may not be obtained, or adverse conditions may be imposed in connection with regulatory approvals of the proposed acquisition; and the risk that the Grand River shareholders may not approve the proposed acquisition; (vi) risks associated with concentrations of the Company’s business in market areas, loans secured by real estate, and public funds deposits as a percentage of total deposits; (vii) adverse changes in customer spending, borrowing, and savings habits; (viii) risks associated with the Company’s commercial loan portfolio and agricultural loan portfolio; (ix) risks related to the significant amount of credit that the Company has extended to a limited number of borrowers and in a limited geographic area; (x) damage to the Company’s reputation resulting from adverse publicity, regulatory actions, litigation, operational failures, and the failure to meet client expectations and other facts; (xi) the Company’s ability to keep pace with technological change or difficulties that may experienced when implementing new technologies; (xii) cybersecurity risk, including cyber incidents or other failures, disruptions or breaches of the Company’s operational or security systems or infrastructure, or those of third-party vendors or other service providers, including as a result of a cyber-attack; (xiii) costs and effects of litigation, investigations or similar matters to which the Company may be subject; (xiv) natural disasters, severe weather, acts of god, military conflicts (including the conflicts in the Middle East, the possible expansion of such conflicts and potential geopolitical and economic consequences), acts of terrorism, domestic civil unrest, geopolitical instability, public health outbreaks (such as coronavirus), other international or domestic calamities, and other events beyond the Company’s control, including as a result of in the policies of the current U.S. presidential administration or Congress; (xv) the impacts 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; (xvi) compliance with


governmental and regulatory requirements, including the Dodd-Frank Act Wall Street Reform and Consumer Protection Act, Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, and others relating to banking, consumer protection, securities and tax matters; (xvii) changes in accounting principles and standards; (xviii) changes in the laws, rules, regulations, interpretations or policies that apply to the Company’s business and operations, and any additional regulations, or repeals that may be forthcoming as a result thereof, which could cause the Company to incur additional costs and adversely affect the Company’s business environment, operations and financial results; and (xix) the Company’s ability to navigate the uncertain impacts of current and future governmental monetary and fiscal policies, including the current and future policies of the Board of Governors of the Federal Reserve System and as a result of initiatives of the Trump administration. These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although the Company believes the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding risks and uncertainties to which the Company’s business and future financial performance are subject is contained in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents the Company files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Due to these and other possible uncertainties and risks, the Company cautions you not to unduly rely on forward-looking statements. The inclusion of this forward-looking information should not be construed as a representation by the Company or by any person that the future events, plans or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Any forward-looking statement speaks only as to the date on which it is made, and the Company undertakes no obligation to update any forward-looking statement to reflect developments occurring after the statement is made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company believes these non-GAAP financial measures provide both management and investors with a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.
The Company classifies 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 the 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 IndexConsolidated Financial Schedules (Unaudited)
ASelected Financial Data
BConsolidated Balance Sheets
CConsolidated Statements of Income
D
Average Balances, Interest Rate, and Net Interest Income
E
Average Balances, Interest Rate, and Net Interest Income (continued)
F
Reconciliation of Non-GAAP Financial Measures


SELECTED FINANCIAL DATA (UNAUDITED)
The following table outlines selected financial data as of, and for the:
Three Months EndedSix Months Ended
(dollars in thousands, except per share amounts)June 30,
2026		March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		June 30,
2026		June 30,
2025
PER SHARE
Basic earnings$0.69$0.68$0.64$0.71$0.68$1.37 $1.21 
Diluted earnings0.690.680.640.710.681.37 1.21 
Dividends0.280.280.280.280.280.56 0.56 
Book value (1)
32.6031.9031.6030.9429.9532.60 29.95 
Tangible book value (1) (2)
26.2725.3225.0124.3723.3926.27 23.39 
Market price (1)
39.5045.6750.0035.2530.1539.50 30.15 
Common shares outstanding (1) (3)
7,628,8097,333,3197,322,2077,350,5677,361,6847,628,8097,361,684
Average number of diluted common shares outstanding (3)
7,337,3787,329,0587,345,6107,371,6527,398,1097,332,0787,413,974
PERFORMANCE RATIOS
Return on average total assets0.91%0.91%0.85%0.94%0.96%0.91%0.87%
Return on average shareholders’ equity8.50%8.58%8.04%9.28%9.19%8.54%8.35%
Return on average tangible shareholders’ equity (2)
10.66%10.79%10.16%11.83%11.78%10.72%10.74%
Net interest margin yield (fully taxable equivalent) (1) (2)
3.54%3.33%3.28%3.15%3.14%3.43%3.10%
Efficiency ratio (2)
67.84%68.50%65.02%67.62%72.14%68.16%72.26%
Loan to deposit ratio (1)
87.83%83.82%84.43%74.36%75.57%87.83%75.57%
Shareholders’ equity to total assets (1)
11.20%10.39%10.47%10.06%10.23%11.20%10.23%
Tangible shareholders’ equity to tangible assets (1)
9.23%8.43%8.47%8.10%8.17%9.23%8.17%
ASSETS UNDER MANAGEMENT
Wealth assets under
management (1)
750,840701,510707,118679,724678,959750,840678,959
ASSET QUALITY
Nonaccrual loans (1)
7,7904,4184,5783,4431,1647,790 1,164 
Foreclosed assets (1)
6205739381,018667620 667 
Net loan charge-offs (recoveries)3842533474(1,432)637 (1,484)
Net loan charge-offs (recoveries) to average loans outstanding0.02%0.02%0.00%0.01%(0.10%)0.04%(0.11%)
Nonperforming loans to total loans (1)
0.49%0.28%0.30%0.24%0.09%0.49%0.09%
Nonperforming assets to total assets (1)
0.38%0.22%0.25%0.20%0.09%0.38%0.09%
Allowance for credit losses to loans (1)
0.91%0.90%0.89%0.92%0.93%0.91%0.93%
CAPITAL RATIOS (1)
Tier 1 leverage9.59%8.89%8.84%8.71%9.04%9.59%9.04%
Common equity tier 1 capital12.34%11.71%11.73%12.37%12.46%12.34%12.46%
Tier 1 risk-based capital12.34%11.71%11.73%12.37%12.46%12.34%12.46%
Total risk-based capital14.63%14.01%14.41%15.20%15.34%14.63%15.34%
(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)June 30,
2026		March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025
ASSETS
Cash and cash equivalents$41,774 $50,105 $26,041 $161,301 $108,554 
Marketable securities available-for-sale, at fair value439,289 492,744 497,791 511,970 500,560 
Mortgage loans held-for-sale410 360 423 737 55 
Commercial and industrial231,590 225,369 220,450 218,132 207,719 
Commercial real estate673,271 660,643 639,758 626,642 614,383 
Advances to mortgage brokers75,159 72,083 76,676 5,056 3,005 
Agricultural97,462 96,969 102,109 97,794 96,842 
Residential real estate449,992 438,333 427,880 412,056 398,668 
Consumer62,198 65,544 69,491 72,225 76,896 
Loans held for investment1,589,672 1,558,941 1,536,364 1,431,905 1,397,513 
Allowance for credit losses14,479 14,014 13,727 13,149 12,977 
Loans, net1,575,193 1,544,927 1,522,637 1,418,756 1,384,536 
Federal Home Loan Bank stock, at cost5,600 5,600 5,600 5,600 5,600 
Premises and equipment28,894 29,064 29,000 28,659 28,171 
Cash surrender value of bank-owned life insurance policies46,603 46,173 46,133 45,651 45,774 
Goodwill and other intangible assets48,282 48,282 48,282 48,282 48,282 
Other assets33,596 34,701 33,541 38,698 34,636 
Total assets$2,219,641 $2,251,956 $2,209,448 $2,259,654 $2,156,168 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Noninterest bearing demand deposits$414,018 $411,216 $426,342 $421,027 $493,477 
Interest bearing demand deposits252,149 263,954 266,187 248,666 223,376 
Money market deposits453,478 477,544 436,631 558,212 446,845 
Savings300,867 300,732 280,429 292,899 289,746 
Certificates of deposit389,401 406,399 410,065 404,798 395,932 
Total deposits1,809,913 1,859,845 1,819,654 1,925,602 1,849,376 
Short-term borrowings116,012 113,530 68,000 62,022 43,208 
Federal Home Loan Bank advances— — 45,000 — — 
Subordinated debt, net of unamortized issuance costs29,559 29,537 29,514 29,492 29,469 
Total borrowed funds145,571 143,067 142,514 91,514 72,677 
Other liabilities15,453 15,083 15,884 15,118 13,615 
Total liabilities1,970,937 2,017,995 1,978,052 2,032,234 1,935,668 
Shareholders’ equity
Common stock135,079 123,251 123,204 124,284 124,607 
Shares to be issued for deferred compensation obligations2,532 2,522 2,366 2,373 2,331 
Retained earnings119,844 116,790 113,849 111,172 107,949 
Accumulated other comprehensive loss(8,751)(8,602)(8,023)(10,409)(14,387)
Total shareholders’ equity248,704 233,961 231,396 227,420 220,500 
Total liabilities and shareholders’ equity$2,219,641 $2,251,956 $2,209,448 $2,259,654 $2,156,168 
B

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 Three Months EndedSix Months Ended
(dollars in thousands, except per share amounts)June 30,
2026		March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		June 30,
2026		June 30,
2025
Interest income
Loans, including fees$22,607 $21,464 $21,669 $20,583 $19,832 $44,071 $39,180 
Available-for-sale securities
Taxable2,902 2,489 2,539 2,478 2,513 5,391 4,616 
Nontaxable470 499 509 516 519 969 1,059 
Federal Home Loan Bank stock, at cost64 75 63 70 125 139 285 
Federal funds sold and other173 602 498 1,235 253 775 735 
Total interest income26,216 25,129 25,278 24,882 23,242 51,345 45,875 
Interest expense
Deposits6,778 7,112 7,380 8,012 7,391 13,890 14,854 
Short-term borrowings1,007 736 587 441 324 1,743 665 
Federal Home Loan Bank advances43 133 317 — 132 176 170 
Subordinated debt304 266 266 267 266 570 532 
Total interest expense8,132 8,247 8,550 8,720 8,113 16,379 16,221 
Net interest income18,084 16,882 16,728 16,162 15,129 34,966 29,654 
Provision for (reversal of) credit losses895 604 434 209 (1,099)1,499 (1,206)
Net interest income after provision for credit losses17,189 16,278 16,294 15,953 16,228 33,467 30,860 
Noninterest income
Service charges and fees2,550 2,372 2,461 2,352 2,071 4,922 4,045 
Wealth management fees1,216 1,108 1,110 1,074 1,084 2,324 2,063 
Income from bank-owned life insurance policies434 448 485 468 300 882 672 
Net gain on sale of mortgage loans15 33 65 38 47 48 77 
Other160 400 323 376 184 560 357 
Total noninterest income4,375 4,361 4,444 4,308 3,686 8,736 7,214 
Noninterest expenses
Compensation and benefits8,147 7,928 7,532 7,630 7,496 16,075 14,879 
Occupancy and equipment2,890 2,840 2,663 2,628 2,650 5,730 5,250 
Other professional services807 1,015 815 851 863 1,822 1,574 
ATM and debit card fees629 558 575 595 555 1,187 1,041 
Marketing514 506 547 514 469 1,020 928 
FDIC insurance premiums288 306 339 271 267 594 570 
Merger-related expenses505 — — — — 505 — 
Other1,606 1,509 1,450 1,496 1,445 3,115 2,802 
Total noninterest expenses15,386 14,662 13,921 13,985 13,745 30,048 27,044 
Income before income tax expense6,178 5,977 6,817 6,276 6,169 12,155 11,030 
Income tax expense1,137 985 2,127 1,036 1,138 2,122 2,050 
Net income$5,041 $4,992 $4,690 $5,240 $5,031 $10,033 $8,980 
Earnings per common share
Basic$0.69 $0.68 $0.64 $0.71 $0.68 $1.37 $1.21 
Diluted0.69 0.68 0.64 0.71 0.68 1.37 1.21 
Cash dividends per common share0.28 0.28 0.28 0.28 0.28 0.56 0.56 
C

AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED)
The following schedules present the daily average amount outstanding for each major category of interest earning assets, nonearning 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
June 30, 2026March 31, 2026June 30, 2025
(dollars in thousands)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)
$1,544,323$22,607 5.86%$1,501,654 $21,464 5.78%$1,388,684 $19,832 5.71%
AFS securities (2)
Taxable432,520 2,902 2.69%430,376 2,489 2.35%461,483 2,513 2.18%
Nontaxable (3)
63,607 600 3.78%67,878 637 3.81%72,869 697 3.84%
Federal Home Loan Bank stock, at cost5,600 64 4.55%5,600 75 5.36%5,600 125 8.94%
Federal funds sold2 — 3.67%7 — 3.54%6 — 3.83%
Other (4)
18,079 173 3.81%64,190 602 3.75%20,487 253 4.92%
Total interest earning assets (3)
2,064,131 26,346 5.12%2,069,705 25,267 4.94%1,949,129 23,420 4.81%
NONEARNING ASSETS
Allowance for credit losses(14,078)(13,680)(13,369)
Cash and demand deposits due from banks22,544 23,113 22,026 
Premises and equipment29,086 29,110 28,306 
Other assets116,913 116,639 106,595 
Total assets$2,218,596 $2,224,887 $2,092,687 
INTEREST BEARING LIABILITIES
Interest bearing demand deposits$257,088 205 0.32%$266,101 294 0.45%$236,076 220 0.37%
Money market deposits452,737 2,625 2.33%464,438 2,719 2.37%449,110 2,857 2.55%
Savings302,375 503 0.67%291,413 488 0.68%286,434 544 0.76%
Certificates of deposit396,481 3,445 3.49%407,483 3,611 3.59%395,450 3,770 3.82%
Short-term borrowings115,713 1,007 3.49%86,885 736 3.44%41,661 324 3.11%
Federal Home Loan Bank advances4,396 43 3.86%13,444 133 3.96%11,539 132 4.53%
Subordinated debt, net of unamortized issuance costs
29,545 304 4.11%29,522 266 3.61%29,455 266 3.61%
Total interest bearing liabilities1,558,335 8,132 2.09%1,559,286 8,247 2.14%1,449,725 8,113 2.24%
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand deposits404,805 411,011 409,262 
Other liabilities17,462 18,653 14,158 
Shareholders’ equity237,994 235,937 219,542 
Total liabilities and shareholders’ equity$2,218,596 $2,224,887 $2,092,687 
Net interest income (FTE) (5)
$18,214 $17,020 $15,307 
Net yield on interest earning assets (FTE) (5)
3.54%3.33%3.14%
(1) Includes loans held-for-sale and nonaccrual loans
(2) Average balances for available-for-sale (AFS) securities are based on amortized cost
(3) Includes FTE adjustments of $130,000, $138,000, and $178,000, respectively
(4) Includes average interest bearing deposits with other banks, net of Federal Reserve daily cash letter
(5) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table F
D

Six Months Ended
June 30, 2026June 30, 2025
(dollars in thousands)Average BalanceTax Equivalent InterestAverage Yield/RateAverage BalanceTax Equivalent InterestAverage Yield/Rate
INTEREST EARNING ASSETS
Loans (1)
$1,523,109 $44,071 5.82%$1,379,774 $39,180 5.72%
AFS securities (2)
Taxable431,452 5,391 2.52%449,919 4,616 2.07%
Nontaxable (3)
65,731 1,237 3.80%74,551 1,421 3.84%
Federal Home Loan Bank stock, at cost5,600 139 4.95%8,291 285 6.89%
Federal funds sold5 — 3.57%5 — 4.03%
Other (4)
41,006 775 3.76%33,856 735 4.32%
Total interest earning assets (3)
2,066,903 51,613 5.03%1,946,396 46,237 4.78%
NONEARNING ASSETS
Allowance for credit losses(13,881)(13,127)
Cash and demand deposits due from banks22,825 22,956 
Premises and equipment29,098 28,134 
Other assets116,776 104,770 
Total assets$2,221,721 $2,089,129 
INTEREST BEARING LIABILITIES
Interest bearing demand deposits$261,570 499 0.38%$238,455 462 0.39%
Money market deposits458,556 5,344 2.35%454,855 5,786 2.56%
Savings296,925 991 0.67%286,399 1,082 0.76%
Certificates of deposit401,952 7,056 3.54%391,657 7,524 3.87%
Short-term borrowings101,378 1,743 3.47%42,607 665 3.15%
Federal Home Loan Bank advances8,895 176 3.93%7,459 170 4.53%
Subordinated debt, net of unamortized issuance costs
29,534 570 3.86%29,444 532 3.62%
Total interest bearing liabilities1,558,810 16,379 2.12%1,450,876 16,221 2.25%
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand deposits407,890 406,160 
Other liabilities18,051 15,200 
Shareholders’ equity236,970 216,893 
Total liabilities and shareholders’ equity$2,221,721 $2,089,129 
Net interest income (FTE) (5)
$35,234 $30,016 
Net yield on interest earning assets (FTE) (5)
3.43%3.10%
(1) Includes loans held-for-sale and nonaccrual loans
(2) Average balances for available-for-sale (AFS) securities are based on amortized cost
(3) Includes FTE adjustments of $268,000 and $362,000, respectively
(4) Includes average interest bearing deposits with other banks, net of Federal Reserve daily cash letter
(5) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table F
E

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
Three Months EndedSix Months Ended
(dollars in thousands, except per share amounts)June 30,
2026		March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		June 30,
2026		June 30,
2025
Loans$1,589,672$1,558,941$1,536,364$1,431,905$1,397,513$1,589,672 $1,397,513 
Advances to mortgage brokers75,15972,08376,6765,0563,00575,159 3,005 
Adjusted loans$1,514,513$1,486,858$1,459,688$1,426,849$1,394,508$1,514,513 $1,394,508 
Total shareholders’ equity$248,704$233,961$231,396$227,420$220,500$248,704$220,500
Goodwill and other intangible assets48,28248,28248,28248,28248,28248,282 48,282 
Tangible equity(A)200,422185,679183,114179,138172,218200,422 172,218 
Common shares outstanding (1)
(B)7,628,8097,333,3197,322,2077,350,5677,361,6847,628,809 7,361,684 
Tangible book value per share(A/B)$26.27$25.32$25.01$24.37$23.39$26.27 $23.39 
Noninterest expenses$15,386$14,662$13,921$13,985$13,745$30,048 $27,044 
Amortization of acquisition intangibles—————— 1 
Adjusted noninterest expense(C)$15,386$14,662$13,921$13,985$13,745$30,048 $27,043 
Net interest income$18,084$16,882$16,728$16,162$15,129$34,966 $29,654 
Tax equivalent adjustment for net interest margin130138138144178268 362 
Net interest income (FTE)18,21417,02016,86616,30615,30735,234 30,016 
Noninterest income4,3754,3614,4444,3083,6868,736 7,214 
Tax equivalent adjustment for BOLI91941029863185 141 
Adjusted revenue (FTE)22,68021,47521,41220,71219,05644,155 37,371 
Net gains (losses) on foreclosed assets—70331370 (52)
Adjusted revenue(D)$22,680$21,405$21,409$20,681$19,053$44,085 $37,423 
Efficiency ratio(C/D)67.84%68.50%65.02%67.62%72.14%68.16%72.26%
(1) Whole shares
F

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

4 documents

Press Releases

Other Documents