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Isabella Bank Corporation Announces First Quarter 2020 Results
Capital and Liquidity in Position of Strength MT. PLEASANT, Mich., April 23, 2020 /PRNewswire/ -- Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA)
About this update from Isabella Bank Corporation
[{"type":"text","content":"Capital and Liquidity in Position of Strength\n\n\nMT. PLEASANT, Mich., April 23, 2020 /PRNewswire/ -- Isabella Bank Corporation (the \"Corporation\") (OTCQX: ISBA) released its earnings results for the first quarter of 2020. The Corporation reported net income of $3.1 million and earnings per common share of $0.39 for the first quarter of 2020.\n\"First and foremost, our thoughts and prayers go out to everyone as we navigate the challenges created by COVID-19,\" stated Jae A. Evans, President and Chief Executive Officer of the Corporation. \"At Isabella Bank Corporation, we have a history of assisting our customers and communities in a time of need and today is no different. We are doing everything we can to help those we serve get through this crisis.\"\n\"As we share our results of the first quarter of 2020,\" he added, \"you can rest assured that Isabella Bank Corporation has strong capital and liquidity positions to weather this crisis.\"\nFirst quarter 2020 highlights include:\nAnnualized cash dividend yield of 6.0% Deposit growth of $8.2 million Grew noninterest income $508,000, or 20.4% compared to the first quarter of 2019 Limited noninterest expense increase to 1.3% compared to the first quarter of 2019Net Income\nNet income for the first quarter of 2020 was $3.1 million compared to $3.5 million in the first quarter of 2019. A combination of reduced interest rates and loan volume drove a $280,000 decrease in interest income for the first three months of 2020 compared to the first quarter of 2019. Interest expense on deposits and borrowings decreased $93,000 for the three-month period ended March 31, 2020 compared to the same period in 2019 primarily due to reduced interest rates. Net interest income decreased by $187,000 for the first quarter compared to the same period in 2019. The provision for loan losses increased by $754,000 for the three-month period ended March 31, 2020 from the same period in 2019, as the result of increased economic and environmental risk factors, primarily driven by COVID-19, and an increase in impaired loan reserves. Noninterest income increased $508,000 during the first quarter compared to the same period in 2019, largely due to a gain from the redemption of a corporate insurance policy. Noninterest expenses for the first three months of 2020 modestly exceeded the same period in 2019 by $14...