#United States #financial results #Mt. Pleasant #Q4 2024 #Isabella Bank

Isabella Bank Corporation Reports Strong Fourth Quarter Earnings for 2024

In a recent announcement, Isabella Bank Corporation (OTCQX: ISBA) revealed its financial performance for the fourth quarter of 2024, showcasing an impressive net income of $4.0 million, equating to $0.54 per diluted share. This marks a notable increase from the $3.8 million or $0.51 per diluted share reported during the same period last year. Furthermore, the core earnings, a non-GAAP measure, reached $3.9 million, corresponding to $0.52 per diluted share, signifying steady growth compared to $3.8 million, or $0.50 per diluted share, in Q4 2023.

For the entire fiscal year 2024, the corporation saw a net income of $13.9 million, translating to $1.86 per diluted share, compared to $18.2 million or $2.40 per diluted share in 2023. Core earnings for 2024 stood at $15.0 million or $2.01 per diluted share, reflecting a decrease from the previous year's $18.0 million or $2.37 per diluted share.

Fourth Quarter Highlights

• - Return on Assets (ROA) was reported at 0.76%, slightly above the 0.73% witnessed in Q4 2023.
• - Core loan growth exhibited a 4% annualized increase, down from a 6% growth rate in the prior year.
• - Net interest margin improved to 2.99%, an increase from 2.83% in Q4 2023.
• - Growth in noninterest income was significant at 13%, contrasting sharply with the 3% growth seen in the previous year.
• - Net loan charge-offs remained minimal, reported at just 0.01% of average loans, compared to 0.03% in the last quarter of the previous year.

Jerome Schwind, the Chief Executive Officer of Isabella Bank, commented on the quarter's results, emphasizing the importance of core operations and the steady earnings momentum. Schwind stated, "We have maintained a stringent credit culture while continuing to grow our core loans. Looking ahead to 2025, we anticipate a favorable environment for repricing low fixed-rate loans to variable rates."

Financial Condition Updates

As of December 31, 2024, the total assets for Isabella Bank Corporation stood at $2.1 billion, a slight decline of $20.7 million primarily attributed to a stable loan portfolio and lesser valuations in available-for-sale securities. The total loans remained steady at approximately $1.42 billion. Notably, residential loans increased by $11 million, complemented by a $4.3 million rise in commercial and industrial loans, while advances to mortgage brokers saw a decline.

The banking institution's ability to manage its credit risk is reflected in the allowance for credit losses, which grew by $260 thousand to reach $12.9 million at the end of Q4 2024. This increase was mainly due to the growth of core loans and a few commercial loans that were rated as needing exceptional monitoring. The nonaccrual loans decreased to $282 thousand by the end of the quarter, indicating a healthy credit quality.

Despite a decline in total deposits, attributed to seasonal outflows from businesses and municipalities, certificates of deposit grew by $4 million thanks to favorable rate offerings, affirming the bank's competitive standing in attracting customer investments.

Recognition

In terms of customer-driven recognition, Isabella Bank has recently garnered several accolades. It was awarded the title of Best Bank in Isabella County by The Morning Sun People's Choice Awards in September 2024. In December 2024, it gained a similar recognition from the Midland Daily News as the Best Bank in Midland County, and just this January, the Pioneer honored it as the Best Bank in Mecosta County.

Amidst a challenging economic environment, Isabella Bank Corporation continues to demonstrate resilience and a commitment to delivering long-term value to its stakeholders. With a proactive approach to enhancing noninterest income in the latter half of 2025, the bank is well-positioned to navigate the future with confidence. For more insights on their services, you can visit their website at www.isabellabank.com.