Business
Isabella Bank Corporation Announces Fourth Quarter and 2020 Earnings
Strategic elimination of debt lowers quarterly earnings; core business results remain strong MT. PLEASANT, Mich., Feb. 17, 2021 /PRNewswire/ -- Isabella Bank
About this update from Isabella Bank Corporation
[{"type":"text","content":"Strategic elimination of debt lowers quarterly earnings; core business results remain strong\n\n\nMT. PLEASANT, Mich., Feb. 17, 2021 /PRNewswire/ -- Isabella Bank Corporation (the \"Corporation\") (OTCQX: ISBA) released its earnings results for the fourth quarter and year ended December 31, 2020. Driven by the cost of eliminating $100 million of Federal Home Loan Bank debt, the Corporation reported a loss of $723,000 for the fourth quarter of 2020. For the year, net income was $10.9 million and earnings per common share was $1.37.\nThe elimination of $100 million of Federal Home Loan Bank debt, resulting in a one-time noninterest expense of $7.6 million, will lower future annual interest expenses by $2.8 million. The move was one of two essential actions the Corporation took in the fourth quarter as part of a five-year strategic plan to improve financial performance metrics of its core businesses. The other — the sale of its membership interest in Corporate Settlement Solutions, LLC (\"CSS\") in the fourth quarter — resulted in a $394,000 reduction in noninterest income.\nFourth quarter 2020 and the year also included several achievements:\nTotal deposits increased $252.5 million in 2020. Gain on loans sold increased $2.1 million (318%) in 2020 as new mortgages sold grew $75.2 million. Loan growth reached $51.7 million in 2020. COVID-19 related loan payment deferrals decreased 94.2% in the fourth quarter.\"The strategic actions taken in the fourth quarter of 2020 are measures, which we identified when implemented, would improve our overall financial performance. The ongoing stability and strength of our core business, as evidenced by the growth in our mortgage, commercial, and consumer loan portfolios, combined with our focus on controlling non-interest expenses, will be beneficial for future periods,\" said Jae A. Evans, President and Chief Executive Officer of the Corporation.\n\"This year showed our true strength and role as a full-service banking institution as customers adjusted to circumstances brought on by the pandemic. We served businesses in our communities by helping them through government loan processes, along with 90-day loan deferrals. By the fourth quarter, most of these customers were back on a regular payment plan. This is good news, not just for them and the Bank, but also for our communities.\"\nNet Income\nT...