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Isabella Bank Q3 2026 earnings rise to $6.6M

Net interest margin reached 3.71%, while third-quarter net income included $657,000 of after-tax merger-related expenses.

Filing Impact
(High)
Filing Sentiment

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Form Type
8-K

Rhea-AI Filing Summary

Isabella Bank Corporation (ISBA) reported third-quarter 2026 net income of $6.6 million, or $0.86 per diluted share, compared with $5.2 million and $0.71 a year earlier. Net interest income was $19.4 million versus $16.2 million, and net interest margin was 3.71%, compared with 3.15%. Net income included $657,000 of after-tax expenses related to the proposed Grand River acquisition.

All required regulatory and shareholder approvals for the acquisition of Grand River Commerce, Inc. and Grand River Bank had been received; it was expected to close November 2, 2026, subject to satisfaction or waiver of customary closing conditions. At September 30, 2026, total deposits were $1.9 billion and total assets were $2.2 billion. The company issued 322,685 shares as part of its ongoing at-the-market stock offering, increasing total equity by $12.5 million, net of expenses.

Net income for the first nine months of 2026 was $16.6 million, compared with $14.2 million in 2025; net interest income was $54.3 million versus $45.8 million. Nonaccrual loans were $7.5 million at September 30, 2026, compared with $4.6 million at December 31, 2025.

2 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 0 points

How the balance works

Positive

  • Moderate pointThird-quarter net income: $6.6 million, versus $5.2 million in 2025.
  • Moderate pointThird-quarter net interest income: $19.4 million, versus $16.2 million in 2025.

Negative

  • None.

Filing Explained

At September 30, 2026, Isabella Bank reported $21.7 million of unrealized losses on available-for-sale securities, up from $9.9 million at December 31, 2025; these losses reduced tangible book value by $2.26 per share, versus $1.09 per share at year-end.

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, or exhibit attachments filed with this report.
Net income $6.6 million Third quarter 2026; compared with $5.2 million in third quarter 2025
Diluted earnings per share $0.86 Third quarter 2026; compared with $0.71 in third quarter 2025
Net interest income $19.4 million Third quarter 2026; compared with $16.2 million in third quarter 2025
Net interest margin 3.71% Third quarter 2026; compared with 3.15% in third quarter 2025
After-tax merger-related expenses $657,000 Third quarter 2026
Total assets $2.2 billion As of September 30, 2026
Nonaccrual loans $7.5 million As of September 30, 2026; compared with $4.6 million at December 31, 2025
Net interest margin financial
"Net interest margin (NIM) improved to 3.71%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Nonaccrual loans financial
"Nonaccrual loans were $7.5 million"
Nonaccrual loans are loans a lender has stopped counting toward interest income because the borrower is overdue or unlikely to pay; the lender only records cash payments received and may set aside extra funds to cover potential losses. For investors, a rising number or amount of nonaccrual loans signals weaker credit quality, lower future interest revenue and larger potential write-downs — similar to pausing expected subscription income when many customers stop paying.
Allowance for credit losses financial
"The allowance for credit losses (ACL) increased"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Tangible book value per share financial
"Tangible book value per share (non-GAAP) was $25.78"
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.
At-the-market stock offering financial
"as part of the ongoing at-the-market stock offering"
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 $6.6 million Compared with $5.2 million in third quarter 2025
Diluted earnings per share $0.86 Compared with $0.71 in third quarter 2025
Net interest income $19.4 million Compared with $16.2 million in third quarter 2025
Net interest margin 3.71% Compared with 3.15% in third quarter 2025

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did ISBA earn in the third quarter of 2026?
Isabella Bank Corporation reported net income of $6.6 million, or $0.86 per diluted share, for third quarter 2026, compared with $5.2 million, or $0.71 per diluted share, in third quarter 2025. The quarter included $657,000 of after-tax expenses related to the proposed acquisition.

When is ISBA's Grand River acquisition expected to close?
The acquisition of Grand River Commerce, Inc. and Grand River Bank was expected to close on November 2, 2026, subject to satisfaction or waiver of customary closing conditions. Required regulatory and shareholder approvals had been received.

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

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Available on EDGAR Accepted by SEC EDGAR
0000842517false00008425172026-10-292026-10-29

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): October 29, 2026
ISABELLA BANK CORPORATION
(Exact name of registrant as specified in its charter)
 
Michigan000-1841538-2830092
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
401 North Main StreetMt. PleasantMichigan48858-1649
(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 October 29, 2026, Isabella Bank Corporation issued a press release announcing its financial results for the quarter ended September 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 October 29, 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: October 29, 2026By:/s/ Gerald J. Ritzert
Gerald J. Ritzert, Chief Financial Officer


Exhibit 99.1
logoa.jpg
Isabella Bank Corporation Reports Record Third Quarter 2026 Earnings
MT. PLEASANT, MICHIGAN — October 29, 2026 — Isabella Bank Corporation (Nasdaq: ISBA) (“Isabella” or the “Company”) reported net income of $6.6 million, or $0.86 per diluted share, for the third quarter 2026 compared to $5.2 million, or $0.71 per diluted share, for the third quarter 2025.
THIRD QUARTER 2026 HIGHLIGHTS
•Record net income of $6.6 million, which included after-tax expenses of $657,000 related to the proposed acquisition of Grand River Commerce, Inc.
•Net interest margin (NIM) improved to 3.71%, up from 3.15% in third quarter 2025
•All required regulatory and shareholder approvals received to complete the Grand River acquisition, which is expected to close on November 2, 2026, subject to the satisfaction or waiver of customary closing conditions
“Isabella Bank Corporation reported a record quarter of net income, supported by continued expansion in our net interest margin,” said President and CEO Jerome Schwind. “We are pleased with the increase in deposit balances, which further strengthens the Corporation’s funding position. Overall, the quarter reflected positive earnings momentum.
“We also have received required regulatory and shareholder approvals to complete the acquisition of Grand River Commerce and Grand River Bank,” Schwind added. “This is a key milestone and the transaction is on track for our anticipated November 2, 2026 close. Importantly, this merger supports our disciplined growth strategy by expanding our customer base and presence in West Michigan. We are keenly focused on a smooth integration and clear communication with customers and employees to assure continued strong customer service.”
FINANCIAL CONDITION (September 30, 2026 to December 31, 2025 comparison)
Total assets increased $31.1 million, or 1.4%, to $2.2 billion as of September 30, 2026. This increase was primarily due to an increase of $112.5 million in cash and cash equivalents, offset by an $88.3 million decline in available-for-sale (AFS) securities.
The AFS securities portfolio decreased $88.3 million, or 17.7%, to $409.5 million as of September 30, 2026. The decrease was a result of maturities and principal paydowns of $177.1 million, offset by $100.7 million in purchases. Net unrealized losses on AFS securities were $21.7 million as of September 30, 2026, compared to $9.9 million at December 31, 2025. Net unrealized losses as a percentage of the amortized cost of AFS securities increased to 5.0%, compared to 1.9% at December 31, 2025.
Loans decreased $556,000 to $1.5 billion as of September 30, 2026. The commercial real estate and residential real estate loan portfolios grew $29.9 million and $29.7 million, respectively, but were offset by declines in advances to mortgage brokers and consumer loans of $39.0 million and $10.6 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, continued competition, and disciplined adherence to credit quality standards.
The allowance for credit losses (ACL) increased $671,000, or 4.9%, to $14.4 million as of September 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 $7.5 million as of September 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 0.10% at September 30, 2026, compared to 0.44% at year-end 2025.
Total deposits increased $73.0 million, or 4.0%, to $1.9 billion as of September 30, 2026. The increase was a result of a $141.8 million increase in money market accounts and a $11.1 million increase in savings deposits. These increases were offset by a $51.3 million decline in certificates of deposit, a $16.6 million decline in noninterest bearing demand deposits, and a $12.1 million decline in interest bearing demand deposits.



Total equity was $245.6 million, or $32.09 per share, at September 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 322,685 shares as part of the ongoing at-the-market stock offering, increasing total equity by $12.5 million, net of expenses. Tangible book value per share (non-GAAP) was $25.78 as of September 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 $2.26 and $1.09 for the respective periods.
RESULTS OF OPERATIONS (for the three and nine months ended September 30, 2026, and 2025, unless otherwise noted)
Net income for the three months ended September 30, 2026 was $6.6 million, or $0.86 per diluted share, compared with $5.2 million, or $0.71 per diluted share, for the three months ended September 30, 2025. Net income for the nine months ended September 30, 2026 was $16.6 million, or $2.24 per diluted share, compared with $14.2 million, or $1.92 per diluted share, for the nine months ended September 30, 2025. Net income for the three and nine month periods ended September 30, 2026 included after-tax merger-related expenses of $657,000 and $1.1 million, respectively.
Net interest income was $19.4 million for the three months ended September 30, 2026 and $16.2 million for the three months ended September 30, 2025, representing 3.71% and 3.15% of interest earning assets, or NIM on a fully tax equivalent basis (non-GAAP), respectively. The book yield from securities was 3.20% and 2.42% for the three months ended September 30, 2026 and 2025, respectively. The yield on loans increased to 5.95% for the three months ended September 30, 2026 from 5.78% for the three months ended September 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 September 30, 2026 decreased to 2.08% from 2.25% for the three months ended September 30, 2025 primarily due to lower rates on money market and certificate of deposit products.
Net interest income was $54.3 million for the nine months ended September 30, 2026 and $45.8 million for the nine months ended September 30, 2025, representing 3.53% and 3.12% of earning assets, or NIM on a fully tax equivalent basis (non-GAAP), respectively. The book yield from securities was 2.83% and 2.34% for the nine months ended September 30, 2026 and 2025, respectively. The yield on loans increased to 5.88% for the nine months ended September 30, 2026 from 5.75% for the nine months ended September 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 nine months ended September 30, 2026 decreased to 2.10% from 2.25% for the nine months ended September 30, 2025 primarily due to lower rates on money market and certificate of deposit products.
The provision for credit losses was $50,000 for the three months ended September 30, 2026, as a result of net charge offs totaling $207,000, offset by an $81,000 decrease in the ACL on loans and a decrease in the reserve for unfunded commitments. The provision for credit losses for the three months ended September 30, 2025 was $209,000, which reflects a $172,000 increase in the ACL and net charge offs totaling $74,000, offset by a decrease in the reserve for unfunded commitments.
The provision for credit losses was $1.5 million for the nine months ended September 30, 2026, as compared to a credit of $1.0 million for the nine months ended September 30, 2025. Net charge offs for the nine months ended September 30, 2026 totaled $844,000, while there were net recoveries of $1.4 million for the nine months ended September 30, 2025.
Noninterest income for the three months ended September 30, 2026 and 2025 was $4.6 million and $4.3 million, respectively. Service charges and fees increased $202,000 and wealth management fees increased $94,000 due to growth in assets under management since second quarter 2025.
Noninterest income for the nine months ended September 30, 2026 and 2025 was $13.3 million and $11.5 million, respectively. Service charges and fees increased $1.1 million, wealth management fees increased $355,000 due to growth in assets under management, and earnings on bank-owned life insurance (BOLI) policies increased $220,000 due to additional investments in a separate account BOLI. Other noninterest income included gains of $137,000 and $163,000 related to death benefits from BOLI policies for the nine months ended September 30, 2026 and 2025, respectively.
Noninterest expenses for the three months ended September 30, 2026 and 2025 were $15.6 million and $14.0 million, respectively. Compensation and benefit expenses increased $867,000, reflecting annual merit increases, incentives, and higher medical insurance claims. Occupancy and equipment increased $156,000 and merger-related expenses were $672,000.
Noninterest expenses for the nine months ended September 30, 2026 and 2025 were $45.7 million and $41.0 million, respectively. Compensation and benefit expenses increased $2.1 million for the same reasons as the quarterly comparison. Occupancy and equipment expenses increased $636,000 and merger-related expenses were $1.2 million.
Income tax expense for the three months ended September 30, 2026 and 2025 was $1.6 million and $1.0 million, respectively. The effective tax rate (ETR) for the same periods was 20% and 17%, respectively. Income tax expense for the nine months ended September 30, 2026 and 2025 was $3.8 million and $3.1 million, respectively. The ETR was 18% for both the nine


months ended September 30, 2026 and 2025. The ETR in the first nine months of 2026 included the impact of certain non-deductible merger-related expenses. The ETR in the first nine months of 2025 included a one-time tax expense related to the lifetime earnings on BOLI policies that were surrendered.
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 chartered 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; (v) risks related to rising interest rates; (vi) the Company’s ability to effectively execute its expansion strategy and manage its growth, including identifying and consummating suitable acquisitions; (vii) risks relating to the proposed acquisition 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; and increased competitive pressures on solicitations of customers by competitors; (viii) 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; (ix) adverse changes in customer sentiment, spending, borrowing, and savings habits; (x) risks associated with the Company’s commercial loan portfolio and agricultural loan portfolio; (xi) 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; (xii) 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; (xiii) the Company’s ability to keep pace with technological change or difficulties that may experienced when implementing new technologies; (xiv) 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; (xv) costs and effects of litigation, investigations or similar matters to which the Company may be subject; (xvi) 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; (xvii) 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; (xviii) 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; (xix) changes in accounting principles and standards; (xx) 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 (xxi) 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 EndedNine Months Ended
(dollars in thousands, except per share amounts)September 30,
2026		June 30,
2026		March 31,
2026		December 31,
2025		September 30,
2025		September 30,
2026		September 30,
2025
PER SHARE
Basic earnings$0.86$0.69$0.68$0.64$0.71$2.24 $1.93 
Diluted earnings0.860.690.680.640.712.24 1.92 
Dividends0.280.280.280.280.280.84 0.84 
Book value (1)
32.0932.6031.9031.6030.9432.09 30.94 
Tangible book value (1) (2)
25.7826.2725.3225.0124.3725.78 24.37 
Market price (1)
37.4739.5045.6750.0035.2537.47 35.25 
Common shares outstanding (1) (3)
7,653,4987,628,8097,333,3197,322,2077,350,5677,653,4987,350,567
Average number of diluted common shares outstanding (3)
7,642,8877,337,3787,329,0587,345,6107,371,6527,432,6277,399,441
PERFORMANCE RATIOS
Return on average total assets1.17%0.91%0.91%0.85%0.94%1.00%0.89%
Return on average shareholders’ equity10.43%8.50%8.58%8.04%9.28%9.20%8.67%
Return on average tangible shareholders’ equity (2)
12.90%10.66%10.79%10.16%11.83%11.49%11.12%
Net interest margin yield (fully taxable equivalent) (1) (2)
3.71%3.54%3.33%3.28%3.15%3.53%3.12%
Efficiency ratio (2)
64.74%67.84%68.50%65.02%67.62%66.95%70.61%
Loan to deposit ratio (1)
81.15%87.83%83.82%84.43%74.36%81.15%74.36%
Shareholders’ equity to total
assets (1)
10.96%11.20%10.39%10.47%10.06%10.96%10.06%
Tangible shareholders’ equity to tangible assets (1)
9.00%9.23%8.43%8.47%8.10%9.00%8.10%
ASSETS UNDER MANAGEMENT
Wealth assets under
management (1)
745,954750,840701,510707,118679,724745,954679,724
ASSET QUALITY
Nonaccrual loans (1)
7,4877,7904,4184,5783,4437,487 3,443 
Foreclosed assets (1)
6476205739381,018647 1,018 
Net loan charge-offs (recoveries)2073842533474844 (1,410)
Net loan charge-offs (recoveries) to average loans outstanding0.01%0.02%0.02%0.00%0.01%0.06%(0.10%)
Nonperforming loans to total
loans (1)
0.49%0.49%0.28%0.30%0.24%0.49%0.24%
Nonperforming assets to total assets (1)
0.36%0.38%0.22%0.25%0.20%0.36%0.20%
Allowance for credit losses to loans (1)
0.94%0.91%0.90%0.89%0.92%0.94%0.92%
CAPITAL RATIOS (1)
Tier 1 leverage9.71%9.59%8.89%8.84%8.71%9.71%8.71%
Common equity tier 1 capital12.96%12.34%11.71%11.73%12.37%12.96%12.37%
Tier 1 risk-based capital12.96%12.34%11.71%11.73%12.37%12.96%12.37%
Total risk-based capital15.29%14.63%14.01%14.41%15.20%15.29%15.20%
(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)September 30,
2026		June 30,
2026		March 31,
2026		December 31,
2025		September 30,
2025
ASSETS
Cash and cash equivalents$138,540 $41,774 $50,105 $26,041 $161,301 
Marketable securities available-for-sale, at fair value409,541 439,289 492,744 497,791 511,970 
Mortgage loans held-for-sale303 410 360 423 737 
Commercial and industrial212,538 231,590 225,369 220,450 218,132 
Commercial real estate669,632 673,271 660,643 639,758 626,642 
Advances to mortgage brokers37,636 75,159 72,083 76,676 5,056 
Agricultural99,493 97,462 96,969 102,109 97,794 
Residential real estate457,613 449,992 438,333 427,880 412,056 
Consumer58,896 62,198 65,544 69,491 72,225 
Loans held for investment1,535,808 1,589,672 1,558,941 1,536,364 1,431,905 
Allowance for credit losses14,398 14,479 14,014 13,727 13,149 
Loans, net1,521,410 1,575,193 1,544,927 1,522,637 1,418,756 
Federal Home Loan Bank stock, at cost5,600 5,600 5,600 5,600 5,600 
Premises and equipment28,858 28,894 29,064 29,000 28,659 
Cash surrender value of bank-owned life insurance policies51,253 46,603 46,173 46,133 45,651 
Goodwill and other intangible assets48,282 48,282 48,282 48,282 48,282 
Other assets36,728 33,596 34,701 33,541 38,698 
Total assets$2,240,515 $2,219,641 $2,251,956 $2,209,448 $2,259,654 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Noninterest bearing demand deposits$409,729 $414,018 $411,216 $426,342 $421,027 
Interest bearing demand deposits254,116 252,149 263,954 266,187 248,666 
Money market deposits578,454 453,478 477,544 436,631 558,212 
Savings291,508 300,867 300,732 280,429 292,899 
Certificates of deposit358,801 389,401 406,399 410,065 404,798 
Total deposits1,892,608 1,809,913 1,859,845 1,819,654 1,925,602 
Short-term borrowings57,874 116,012 113,530 68,000 62,022 
Federal Home Loan Bank advances— — — 45,000 — 
Subordinated debt, net of unamortized issuance costs29,581 29,559 29,537 29,514 29,492 
Total borrowed funds87,455 145,571 143,067 142,514 91,514 
Other liabilities14,867 15,453 15,083 15,884 15,118 
Total liabilities1,994,930 1,970,937 2,017,995 1,978,052 2,032,234 
Shareholders’ equity
Common stock136,115 135,079 123,251 123,204 124,284 
Shares to be issued for deferred compensation obligations2,494 2,532 2,522 2,366 2,373 
Retained earnings124,341 119,844 116,790 113,849 111,172 
Accumulated other comprehensive loss(17,365)(8,751)(8,602)(8,023)(10,409)
Total shareholders’ equity245,585 248,704 233,961 231,396 227,420 
Total liabilities and shareholders’ equity$2,240,515 $2,219,641 $2,251,956 $2,209,448 $2,259,654 
B

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months EndedNine Months Ended
(dollars in thousands, except per share amounts)September 30,
2026		June 30,
2026		March 31,
2026		December 31,
2025		September 30,
2025		September 30,
2026		September 30,
2025
Interest income
Loans, including fees$22,986 $22,607 $21,464 $21,669 $20,583 $67,057 $59,763 
Available-for-sale securities
Taxable2,939 2,902 2,489 2,539 2,478 8,330 7,094 
Nontaxable452 470 499 509 516 1,421 1,575 
Federal Home Loan Bank stock, at cost58 64 75 63 70 197 355 
Federal funds sold and other1,082 173 602 498 1,235 1,857 1,970 
Total interest income27,517 26,216 25,129 25,278 24,882 78,862 70,757 
Interest expense
Deposits6,835 6,778 7,112 7,380 8,012 20,725 22,866 
Short-term borrowings806 1,007 736 587 441 2,549 1,106 
Federal Home Loan Bank advances— 43 133 317 — 176 170 
Subordinated debt503 304 266 266 267 1,073 799 
Total interest expense8,144 8,132 8,247 8,550 8,720 24,523 24,941 
Net interest income19,373 18,084 16,882 16,728 16,162 54,339 45,816 
Provision for (reversal of) credit losses50 895 604 434 209 1,549 (997)
Net interest income after provision for credit losses19,323 17,189 16,278 16,294 15,953 52,790 46,813 
Noninterest income
Service charges and fees2,429 2,440 2,277 2,353 2,227 7,146 6,037 
Wealth management fees1,168 1,216 1,108 1,110 1,074 3,492 3,137 
Income from bank-owned life insurance policies478 434 448 485 468 1,360 1,140 
Net gain on sale of mortgage loans65 15 33 65 38 113 115 
Other426 270 495 431 501 1,191 1,093 
Total noninterest income4,566 4,375 4,361 4,444 4,308 13,302 11,522 
Noninterest expenses
Compensation and benefits8,497 8,147 7,928 7,532 7,630 24,572 22,509 
Occupancy and equipment2,784 2,890 2,840 2,663 2,628 8,514 7,878 
Other professional services745 807 1,015 815 851 2,567 2,425 
ATM and debit card fees573 629 558 575 595 1,760 1,636 
Marketing458 514 506 547 514 1,478 1,442 
FDIC insurance premiums297 288 306 339 271 891 841 
Merger-related expenses672 505 — — — 1,177 — 
Other1,622 1,606 1,509 1,450 1,496 4,737 4,298 
Total noninterest expenses15,648 15,386 14,662 13,921 13,985 45,696 41,029 
Income before income tax expense8,241 6,178 5,977 6,817 6,276 20,396 17,306 
Income tax expense1,636 1,137 985 2,127 1,036 3,758 3,086 
Net income$6,605 $5,041 $4,992 $4,690 $5,240 $16,638 $14,220 
Earnings per common share
Basic$0.86 $0.69 $0.68 $0.64 $0.71 $2.24 $1.93 
Diluted0.86 0.69 0.68 0.64 0.71 2.24 1.92 
Cash dividends per common share0.28 0.28 0.28 0.28 0.28 0.84 0.84 
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
September 30, 2026June 30, 2026September 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)
$1,528,503$22,986 5.95%$1,544,323 $22,607 5.86%$1,409,928 $20,583 5.78%
AFS securities (2)
Taxable378,202 2,939 3.08%432,520 2,902 2.69%448,112 2,478 2.19%
Nontaxable (3)
61,210 578 3.75%63,607 600 3.78%69,174 660 3.79%
Federal Home Loan Bank stock, at cost5,600 58 4.18%5,600 64 4.55%5,600 70 4.95%
Federal funds sold3 — 3.91%2 — 3.67%186 2 4.35%
Other (4)
113,704 1,082 3.72%18,079 173 3.81%123,183 1,233 3.92%
Total interest earning assets (3)
2,087,222 27,643 5.26%2,064,131 26,346 5.12%2,056,183 25,026 4.83%
NONEARNING ASSETS
Allowance for credit losses(14,471)(14,078)(13,057)
Cash and demand deposits due from banks24,854 22,544 25,591 
Premises and equipment28,802 29,086 28,313 
Other assets120,411 116,913 109,692 
Total assets$2,246,818 $2,218,596 $2,206,722 
INTEREST BEARING LIABILITIES
Interest bearing demand deposits$264,269 199 0.30%$257,088 205 0.32%$234,105 144 0.24%
Money market deposits503,054 3,030 2.39%452,737 2,625 2.33%534,127 3,533 2.63%
Savings288,515 456 0.63%302,375 503 0.67%289,442 560 0.77%
Certificates of deposit374,370 3,150 3.34%396,481 3,445 3.49%399,781 3,775 3.75%
Short-term borrowings94,938 806 3.37%115,713 1,007 3.49%52,700 441 3.32%
Federal Home Loan Bank advances— — 0.00%4,396 43 3.86%— — 0.00%
Subordinated debt, net of unamortized issuance costs
29,567 503 6.82%29,545 304 4.11%29,477 267 3.61%
Total interest bearing liabilities1,554,713 8,144 2.08%1,558,335 8,132 2.09%1,539,632 8,720 2.25%
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand deposits420,649 404,805 428,144 
Other liabilities20,103 17,462 14,976 
Shareholders’ equity251,353 237,994 223,970 
Total liabilities and shareholders’ equity$2,246,818 $2,218,596 $2,206,722 
Net interest income (FTE) (5)
$19,499 $18,214 $16,306 
Net yield on interest earning assets (FTE) (5)
3.71%3.54%3.15%
(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 $126,000, $130,000, and $144,000, 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

Nine Months Ended
September 30, 2026September 30, 2025
(dollars in thousands)Average BalanceTax Equivalent InterestAverage Yield /RateAverage BalanceTax Equivalent InterestAverage Yield /Rate
INTEREST EARNING ASSETS
Loans (1)
$1,524,924 $67,057 5.88%$1,389,936 $59,763 5.75%
AFS securities (2)
Taxable413,508 8,330 2.69%449,310 7,094 2.11%
Nontaxable (3)
64,207 1,815 3.78%72,739 2,081 3.83%
Federal Home Loan Bank stock, at cost5,600 197 4.70%7,384 355 6.41%
Federal funds sold4 — 3.64%66 2 4.35%
Other (4)
65,505 1,857 3.74%63,959 1,968 3.92%
Total interest earning assets (3)
2,073,748 79,256 5.11%1,983,394 71,263 4.80%
NONEARNING ASSETS
Allowance for credit losses(14,079)(13,104)
Cash and demand deposits due from banks23,509 23,844 
Premises and equipment28,998 28,195 
Other assets118,002 106,430 
Total assets$2,230,178 $2,128,759 
INTEREST BEARING LIABILITIES
Interest bearing demand deposits$262,479 698 0.36%$236,989 606 0.34%
Money market deposits473,552 8,374 2.36%481,571 9,319 2.59%
Savings294,090 1,447 0.66%287,425 1,642 0.76%
Certificates of deposit392,657 10,206 3.48%394,395 11,299 3.83%
Short-term borrowings99,208 2,549 3.43%46,008 1,106 3.21%
Federal Home Loan Bank advances5,897 176 3.93%4,945 170 4.53%
Subordinated debt, net of unamortized issuance costs
29,545 1,073 4.84%29,455 799 3.61%
Total interest bearing liabilities1,557,428 24,523 2.10%1,480,788 24,941 2.25%
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand deposits412,190 413,568 
Other liabilities18,752 15,131 
Shareholders’ equity241,808 219,272 
Total liabilities and shareholders’ equity$2,230,178 $2,128,759 
Net interest income (FTE) (5)
$54,733 $46,322 
Net yield on interest earning assets (FTE) (5)
3.53%3.12%
(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 $394,000 and $506,000, 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 EndedNine Months Ended
(dollars in thousands, except per share amounts)September 30,
2026		June 30,
2026		March 31,
2026		December 31,
2025		September 30,
2025		September 30,
2026		September 30,
2025
Loans$1,535,808$1,589,672$1,558,941$1,536,364$1,431,905$1,535,808 $1,431,905 
Advances to mortgage brokers37,63675,15972,08376,6765,05637,636 5,056 
Adjusted loans$1,498,172$1,514,513$1,486,858$1,459,688$1,426,849$1,498,172 $1,426,849 
Total shareholders’ equity$245,585$248,704$233,961$231,396$227,420$245,585$227,420
Goodwill and other intangible assets48,28248,28248,28248,28248,28248,282 48,282 
Tangible equity(A)197,303200,422185,679183,114179,138197,303 179,138 
Common shares outstanding (1)
(B)7,653,4987,628,8097,333,3197,322,2077,350,5677,653,498 7,350,567 
Tangible book value per share(A/B)$25.78$26.27$25.32$25.01$24.37$25.78 $24.37 
Noninterest expenses$15,648$15,386$14,662$13,921$13,985$45,696 $41,029 
Amortization of acquisition intangibles—————— 1 
Adjusted noninterest expense(C)$15,648$15,386$14,662$13,921$13,985$45,696 $41,028 
Net interest income$19,373$18,084$16,882$16,728$16,162$54,339 $45,816 
Tax equivalent adjustment for net interest margin126130138138144394 506 
Net interest income (FTE)19,49918,21417,02016,86616,30654,733 46,322 
Noninterest income4,5664,3754,3614,4444,30813,302 11,522 
Tax equivalent adjustment for bank-owned life insurance policies101919410298286 239 
Adjusted revenue (FTE)24,16622,68021,47521,41220,71268,321 58,083 
Net gains (losses) on foreclosed assets(3)—7033167 (21)
Adjusted revenue(D)$24,169$22,680$21,405$21,409$20,681$68,254 $58,104 
Efficiency ratio(C/D)64.74%67.84%68.50%65.02%67.62%66.95%70.61%
(1) Whole shares
F

Source: View Original Filing on SEC EDGAR

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