Business
Isabella Bank Corporation Announces Third Quarter 2023 Earnings
Growth in core loans and deposits; pricing competition continues MT. PLEASANT, Mich., Oct. 19, 2023 /PRNewswire/ -- Isabella Bank Corporation (the
About this update from Isabella Bank Corporation
[{"type":"text","content":"Growth in core loans and deposits; pricing competition continues\nMT. PLEASANT, Mich., Oct. 19, 2023 /PRNewswire/ -- Isabella Bank Corporation (the \"Corporation\") (OTCQX: ISBA) has reported net income of $4.4 million for the third quarter of 2023 and $14.4 million for the nine-month period ended September 30, 2023. Earnings per common share were $0.59 for the third quarter of 2023 and $1.91 for the first nine months of the year.\n\nThird Quarter 2023 Highlights:\nCore loan portfolio grew $14.6 million as borrowing demand remained steady.Deposits grew $54.5 million, or 3.2%, despite strong pricing competition in the market.Wealth management fees increased 26.4% compared to the third quarter of 2022.Shareholders earned a cash dividend of $0.28 per share, with an annualized dividend yield of 5.32%, as of September 30, 2023.\"Our financial results for the third quarter are strong despite the continued pressure of rising interest rates and economic uncertainty,\" said Jae A. Evans, President and Chief Executive Officer. \"Competition for deposits continued during the third quarter, leading to increased deposit rates and pressure on our net interest margin. We've benefited from core and non-core loan growth which has mitigated some of this pressure.\n\"We remain focused on the long-term success of the bank with strategic decisions and initiatives designed to enhance shareholder value and the customer experience,\" Evans added. \"We are pleased to have recently opened a new loan and wealth office in downtown Bay City, expanding our physical presence to Bay County. In addition, a new full-service branch in Saginaw opened earlier this year. The continued, steady growth of our footprint demonstrates our commitment to customers and communities as a leading, independent community bank.\"\nOperating Results\nNet income: Net income for the third quarter of 2023 was $4.4 million, compared to $5.9 million in the third quarter of 2022. Net income for the first nine months of the year was $14.4 million, compared to $15.9 million for the same period in 2022. Interest income continued to improve in the third quarter, but fell short of the growth in interest expense due to rising rates on deposits and increased borrowings.\nNet interest income: Net interest income for the third quarter of 2023 decreased by $1.5 million compared to the third quarte...