Business
Isabella Bank Corporation Announces Second Quarter 2023 Earnings
Growth in loans, Isabella Wealth during Q2; results remain strong despite interest rate headwinds MT. PLEASANT, Mich., July 21, 2023 /PRNewswire/ -- Isabella
About this update from Isabella Bank Corporation
[{"type":"text","content":"Growth in loans, Isabella Wealth during Q2; results remain strong despite interest rate headwinds\nMT. PLEASANT, Mich., July 21, 2023 /PRNewswire/ -- Isabella Bank Corporation (the \"Corporation\") (OTCQX: ISBA) has reported net income of $4.6 million for the second quarter of 2023 and $10 million for the six-month period ended June 30, 2023. Earnings per common share were $0.62 for the second quarter of 2023 and $1.32 for the first half of the year.\nSecond Quarter 2023 Highlights:\nLoans grew $64 million, or 5%, during the quarter.Interest income improved 21%, compared to second quarter of 2022.Assets managed by Isabella Wealth grew more than $22 million, or 4%, during the quarter.Shareholders earned a cash dividend of $0.28 per share, with an annualized dividend yield of 5.46%, as of June 30, 2023.\"Our financial performance remains strong despite the challenges our industry faces with current interest rate dynamics,\" said Jae A. Evans, President and Chief Executive Officer. \"Competition for deposits was strong during the quarter, leading to continued pressure on our net interest margin and a decline in deposits. Despite this decline, our liquidity position remains strong. \n\"We are safeguarding the long-term success of the bank with strategic decisions and initiatives that will enhance shareholder value and the customer experience. One such action, for which planning began last year, is our first move into Bay County. The upcoming opening of our Bay City loan production office (LPO) is a great opportunity for us to assist individuals and businesses throughout the area with their loan needs,\" Evans said. \"The continued growth of our footprint demonstrates our ongoing commitment to customers and communities as a leading, independent community bank.\"\nOperating Results\nNet income: Net income for second quarter 2023 was $4.6 million, compared to $5.3 million in the second quarter of 2022. Net income for the first six months of the year was $10 million, remaining stable year over year. Interest income continued to improve in the second quarter and nearly offset the increase in interest expense due to rising rates on deposits.\nNet interest income: Net interest income for second quarter 2023 decreased $248,000 compared to the second quarter of 2022. For the first six months of the year, net interest income increased $1.6 mi...