Business
Isabella Bank Corporation Announces Third Quarter 2020 Earnings
Strategy Delivers Increased Liquidity and Capital MT. PLEASANT, Mich., Oct. 22, 2020 /PRNewswire/ -- Isabella Bank Corporation (the "Corporation") (OTCQX:
About this update from Isabella Bank Corporation
[{"type":"text","content":"Strategy Delivers Increased Liquidity and Capital\n\n\nMT. PLEASANT, Mich., Oct. 22, 2020 /PRNewswire/ -- Isabella Bank Corporation (the \"Corporation\") (OTCQX: ISBA) released its earnings results for the third quarter of 2020. The Corporation reported net income of $4.4 million and earnings per common share of $0.55 for the third quarter of 2020.\n\"For the first time in the history of the Corporation, we came very close to reaching a milestone of $2 billion in assets this quarter,\" stated Jae A. Evans, President and Chief Executive Officer of the Corporation. \"While we continue to assist our customers and communities through these challenging times,\" he added, \"our focus on growing the organization, improving key financial metrics and maintaining strong credit quality, remains a priority to achieve our long term strategic goals. Our high levels of liquidity and capital put us in a position to meet the uncertain economic challenges on the horizon.\"\nThird quarter 2020 highlights include:\nRecord assets of $1.97 billion Loan payment deferrals decreased 67.8% to $98.7 million, or 7.6% of gross loans Deposit growth of $54.4 million, or 4% Noninterest income increased $786,000, or 24%, compared to the third quarter of 2019Net Income\nNet income for the third quarter of 2020 and nine-month period ended September 30, 2020 was $4.4 million and $11.6 million, respectively. Net income for the third quarter of 2019 and nine-month period ended September 30, 2019 was $4.4 million and $12.1 million, respectively.\nNet interest income decreased by $114,000 for the third quarter compared to the same period in 2019. For the three months ended September 30, 2020, provision for loan losses increased by $323,000 compared to the same period last year as a result of increased economic and environmental risk factors, predominantly driven by the COVID-19 pandemic. Third quarter 2020 noninterest income increased $786,000 from the same period in 2019, mainly as a result of net gain on the sale of mortgage loans. Third quarter 2020 noninterest expense increased $330,000 from the same period last year primarily due to a $440,000 FDIC assessment credit recognized during the third quarter of 2019.\nIn the first quarter of 2020, the Federal Reserve Bank reduced short-term interest rates 150 basis points. This decline in interest rates largely drove a ...