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Isabella Bank Corporation Announces First Quarter 2022 Earnings
Solid start to 2022 with net income of $4.7 million MT. PLEASANT, Mich., April 21, 2022 /PRNewswire/ -- Isabella Bank Corporation (the "Corporation") (OTCQX:
About this update from Isabella Bank Corporation
[{"type":"text","content":"Solid start to 2022 with net income of $4.7 million\nMT. PLEASANT, Mich., April 21, 2022 /PRNewswire/ -- Isabella Bank Corporation (the \"Corporation\") (OTCQX: ISBA) has released solid earnings results for the first quarter of 2022. The Corporation reported net income of $4.7 million and earnings per common share of $0.63.\nFirst quarter 2022 highlights include:\nNet interest income improved, compared to first quarter 2021, as interest expense declined 39%.Credit quality remained strong, with nonperforming loans representing only 0.06% of gross loans.Deposits grew $53.8 million, or 3.1% compared to December 31, 2021, largely driven by new customer accounts.Shareholders earned a cash dividend of $0.27 per share, with an annualized dividend yield of 4.18%, as of March 31, 2022.\"We have started the year with solid financial results for the first quarter,\" said Jae A. Evans, President & CEO. \"As we look ahead, there are concerns about the impact inflation and events in other parts of the world may have on the financial services industry. However, as the Federal Reserve considers additional interest rate hikes throughout 2022 and beyond, we expect the yield on loans and investments to rise, enhancing the Bank's net interest margin.\n\"Amidst this uncertainty, our longstanding focus remains the same - invest in our communities, and in advanced technology that enhances the customer experience while actively pursuing strategies that reward our shareholders with an attractive dividend,\" Evans added.\nOperating Results\nNet income: Net income for the first quarter 2022 was $4.7 million, compared to $5.4 million in the first quarter of 2021, largely as the result of changes in loan provision and mortgage originations, as described below.\nNet interest income: Net interest income for first quarter 2022 increased $278,000 compared to the same period in 2021. While interest income declined $528,000 due to low interest rates and a decrease in the Paycheck Protection Program fee income, interest expense also decreased $806,000, or 38.6%, largely due to a reduction in higher-cost borrowings over the last year. During the first quarter, a $37,000 provision for loan losses expense was recorded, compared to a $523,000 provision reversal in the first quarter 2021 as our initial concerns over potential credit quality issues related to the onset ...