Business
Isabella Bank Corporation Announces Strong Second Quarter 2021 Earnings
Successful $30 million subordinated debt offering complete MT. PLEASANT, Mich., July 23, 2021 /PRNewswire/ -- Isabella Bank Corporation (the "Corporation")
About this update from Isabella Bank Corporation
[{"type":"text","content":"Successful $30 million subordinated debt offering complete\n\n\nMT. PLEASANT, Mich., July 23, 2021 /PRNewswire/ -- Isabella Bank Corporation (the \"Corporation\") (OTCQX: ISBA) released its earnings results for the second quarter of 2021. The Corporation reported net income of $4.6 million for the second quarter and $10 million for the first six months of 2021, both increased compared to the same periods a year ago. Earnings per common share were $0.58 in the second quarter and $1.26 for the first half of the year, up from the same periods of 2020 at $0.53 and $0.91, respectively.\nHighlights include:\nCompleted a $30 million private placement of subordinated notes with an initial interest rate of 3.25%. Net interest income — $12.7 million in the second quarter of 2021. Interest expense initiatives reduced costs by 45.9%, or $1.6 million, compared to the same period in 2020. Noninterest expense controls continue to benefit the Corporation. Loan payment deferrals, to provide short-term relief to customers, continued to decline as customers resumed contractual payments. As of June 30, 2021, loan deferrals totaled just 0.3% of gross loans.\"We delivered another strong financial quarter following our record performance from the previous quarter,\" said Jae A. Evans, President and Chief Executive Officer of the Corporation. \"Here at Isabella Bank, we continue to be a resource to our customers in a recovering economy. We facilitated over 950 PPP loans for a total of $99.5 million in 2020, and funded another 845 PPP loans for a total of $54.6 million this year. We also assisted customers by removing selected deposit account related charges and fees in day-to-day banking and temporarily waiving others.\"\nOn June 2, 2021, the Corporation completed a private placement of $30 million in fixed-to-floating rate notes due in 2031. The subordinated notes will initially bear a fixed interest rate of 3.25% until June 15, 2026, after which time until maturity, the notes convert to a floating rate instrument. The notes, issued to institutional investors, are structured to qualify as Tier 2 capital under regulatory guidelines. The Corporation expects to use proceeds from issuance of the notes for general corporate purposes, including potential repurchases of common stock and merger and acquisition activity.\n\"We are strengthening our ability to ...