Isabella Bank Corporation Announces Fourth Quarter and 2023 Earnings

Net interest income, fourth quarter 2023: Net interest income for the fourth quarter 2023 declined $2.7 million, or 16%, compared to the fourth quarter of 2022.  Interest income increased $3.1 million, or 17.5%, driven by core loan growth, while continued interest rate pressure was the primary cause of a $5.8 million increase in interest expense over the same period in 2022.

Net interest income, year-end 2023: Net interest income for the year ended December 31, 2023 decreased $2.5 million, or 4.2%, compared to 2022.  Rising interest rates and growth in core loans led to a $13.8 million, or 21%, increase in gross interest income during 2023, compared to 2022.  At the same time, rising interest rates on deposits and an increase in borrowings led to a $16.4 million increase in interest expense for 2023, compared to 2022.

Noninterest income and expenses, fourth quarter 2023: Noninterest income increased $244,000 compared to the fourth quarter of 2022, primarily driven by wealth management fees and ATM and debit card income.  Noninterest expenses for the quarter were essentially unchanged in comparison to the fourth quarter of 2022.

Noninterest income and expenses, year-end 2023: Noninterest income for the year ended December 31, 2023 increased $161,000 compared to 2022.  The increase was driven by wealth management fees and ATM and debit card fee income, offset by a decrease in mortgage servicing rights and gain on sale of loans, as residential mortgages sold to the secondary market declined.   Noninterest expense increased $2.5 million compared to 2022, primarily the result of increased compensation, equipment expense, other losses, and FDIC insurance premiums.

Net yield on interest earning assets: The Corporation's fully taxable equivalent net yield on interest earning assets was 2.85% and 3.05% for the fourth quarter and year ended December 31, 2023, respectively, compared to 3.43% and 3.18% for the same periods in 2022.  To maintain a competitive edge in the rising interest rate environment, rates on several deposit products began to increase in the fourth quarter of 2022 and continued throughout 2023.  Over the last year, the level of borrowings increased to fund loan growth.  These factors have negatively impacted the net yield on interest earning assets slowing its rate of growth.

Balance Sheet

Assets: Total assets were $2.06 billion and assets under management were $2.95 billion as of December 31, 2023.  Managed assets included loans sold and serviced of $249 million as well as $641 million in investment and trust assets managed by our wealth business.

Loans: Loans outstanding as of December 31, 2023 totaled $1.35 billion, growing $85.3 million since December 31, 2022.  Credit quality remained strong, as evidenced by total past due and nonaccrual loans which were 0.37% of gross loans as of December 31, 2023.

Deposits: Deposits were $1.72 billion as of December 31, 2023, declining $20.6 million, or 1.2%, since December 31, 2022.  A decline in demand deposits was driven by contraction in money supply as the Federal Reserve Bank pulled money out of the banking system.

Capital: The Bank continues to be considered a "well-capitalized" institution, as its capital ratios exceeded the minimum designated requirements.  As of December 31, 2023, the Bank's Tier 1 Leverage Ratio was 8.71%, Tier 1 Capital Ratio was 12.48% and Total Capital Ratio was 13.42%, compared to minimum requirements to be considered well capitalized of 5.0%, 8.0% and 10.0%, respectively.

Dividend: The Corporation paid a $0.28 per common share cash dividend for the fourth quarter of 2023. Total cash dividends paid for the year ended December 31, 2023 totaled $1.12, a 2.75% increase over dividends paid in 2022.  Based on the Corporation's closing stock price of $21.50 as of December 29, 2023, the annualized cash dividend yield was 5.21%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years.  The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
	December 31 2023		December 31 2022
ASSETS
Cash and cash equivalents
Cash and demand deposits due from banks	$           25,628		$           27,420
Fed Funds sold and interest bearing balances due from banks	8,044		11,504
Total cash and cash equivalents	33,672		38,924
Available-for-sale securities, at fair value	528,148		580,481
Mortgage loans available-for-sale	—		379
Loans	1,349,463		1,264,173
Less allowance for credit losses	13,108		9,850
Net loans	1,336,355		1,254,323
Premises and equipment	27,639		25,553
Corporate owned life insurance policies	33,892		32,988
Equity securities without readily determinable fair values	15,848		15,746
Goodwill and other intangible assets	48,284		48,287
Accrued interest receivable and other assets	35,130		33,586
TOTAL ASSETS	$      2,058,968		$      2,030,267
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest bearing	$         428,505		$         494,346
Interest bearing demand deposits	320,737		372,155
Certificates of deposit under $250 and other savings	857,768		810,642
Certificates of deposit over $250	116,685		67,132
Total deposits	1,723,695		1,744,275
Borrowed funds
Federal funds purchased and repurchase agreements	46,801		57,771
Federal Home Loan Bank advances	40,000		—
Subordinated debt, net of unamortized issuance costs	29,335		29,245 Werbung Mehr Nachrichten zur ISABELLA BANK CP Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 20.07.24 - Boersify Merck Aktie: Kursrückgang trotz positiver Prognosen 20.07.24 - Börse-Global Covestro Aktie: Schwankungen trotz positiver Prognosen 20.07.24 - Boersia.de Amazon Aktie: Technologieriese auf Wachstumskurs Jahrhundertchance    Wenn die FDA dies genehmigt, könnte das Wunder für diese kleine Aktie bedeuten! weiterlesen» Anzeige wo-site-teaser-box-17592_site-teaser-box_2024-07-20_09%253A00%253A00_2024-07-21_09%253A00%253A59