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Isabella Bank Corporation Reports First Quarter 2025 Results
MT. PLEASANT, Mich., April 17, 2025 /PRNewswire/ -- Isabella Bank Corporation (OTCQX: ISBA) (the "Company" or "we") reported first quarter 2025 net income of
About this update from Isabella Bank Corporation
[{"type":"text","content":"MT. PLEASANT, Mich., April 17, 2025 /PRNewswire/ -- Isabella Bank Corporation (OTCQX: ISBA) (the \"Company\" or \"we\") reported first quarter 2025 net income of $3.9 million, or $0.53 per diluted share, compared to $3.1 million, or $0.42 per diluted share in the same quarter of 2024. The non-GAAP measure of core earnings in the first quarter 2025 totaled $4.3 million, or $0.57 per diluted share, compared to $3.1 million, or $0.41 per diluted share for the same quarter of 2024.\n\nFIRST QUARTER 2025 HIGHLIGHTS (compared to first quarter 2024, unless otherwise stated)\nReturn on assets (ROA) of 0.77%, up from 0.61%Commercial & industrial loan growth of 7%, annualizedNon-maturity deposit growth of 14%, annualizedNet interest margin of 3.06%, up from 2.79%Annualized net loan recoveries to average loans of 0.02%, compared to net charge-offs of 0.01%\"The Company had a strong first quarter as we expanded net interest margin (NIM), increased fee-based income and continued to improve credit quality,\" said Jerome Schwind, Chief Executive Officer. \"NIM has continued an upward trend since the first quarter of 2024 because of earning asset repricing and a lower cost of funds.\n\"In addition, our credit quality remains strong, and we have a successful history of collecting even when loans are charged off. In the first quarter, we recovered a significant amount of contractual interest related to nonperforming loans, which improved NIM by four basis points. Additionally, in the first week of April, we fully recovered a $1.6 million overdraft charge that was incurred in the third quarter of 2024. All loans to the overdrawn customer have been paid in full. Our ability to recover funds is a testament to our disciplined approach to credit quality and the strong relationships that we build in the communities we serve.\"\nSchwind said the company also executed a strategy during the quarter to restructure a large portion of our bank-owned life insurance policies into a higher-yielding separate account. \"While some new policies were added and accretive in the first quarter,\" he said, \"the full transition and impact is expected by the third quarter 2025. We also have completed a study of all other components of fee-based income, and revenue enhancements are expected to launch by the end of the third quarter 2025.\n\"We are pleased with our start ...