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Isabella Bank Corporation Reports Second Quarter 2024 Results
MT. PLEASANT, Mich., July 25, 2024 /PRNewswire/ -- Isabella Bank Corporation (OTCQX: ISBA) (the "Company") reported second quarter 2024 net income of $3.5
About this update from Isabella Bank Corporation
[{"type":"text","content":"MT. PLEASANT, Mich., July 25, 2024 /PRNewswire/ -- Isabella Bank Corporation (OTCQX: ISBA) (the \"Company\") reported second quarter 2024 net income of $3.5 million, or $0.46 per diluted share, compared to $4.6 million or $0.61 per diluted share in the same quarter of 2023.\n\nSECOND QUARTER 2024 HIGHLIGHTS (compared to second quarter 2023, unless otherwise stated)\nTotal loans grew by an annualized rate of 5%4.58% earning asset yield, compared to 4.11%7% increase in wealth management income0.07% ratio in nonperforming loans to total loans\"We are pleased the negative trend in net interest margin over the past several quarters has reversed, and we gained five basis points over the first quarter of 2024,\" said Isabella Bank Corporation's Chief Executive Officer Jerome Schwind. \"The repricing of earning assets and continued loan growth have expanded yields beyond the growth of our cost of funds.\n\"While total commercial loans grew 1% during the quarter,\" he added, \"we have a strong loan pipeline going into the third quarter. Given commercial loan growth prospects and the continued repricing of our book of business, we see a stronger second half of 2024, regardless of how interest rates change.\" \nFINANCIAL CONDITION (June 30, 2024 compared to March 31, 2024)\nTotal assets remained steady at $2.06 billion. Loan growth during the second quarter was offset by lower cash and security balances and was primarily funded by security amortization and Federal Home Loan Bank borrowings.\nSecurities available-for-sale decreased $11.9 million to $505.6 million at the end of second quarter 2024 due to municipal maturities and principal paydowns on mortgage-related securities. This was offset in part by a smaller unrealized loss on the total portfolio during the period. Net losses on securities totaled $34 million and $34.8 million at the end of the second and first quarter, respectively. Unrealized losses represent 6% of total available-for-sale securities in both periods and will continue to decrease as bonds approach their maturity dates over the next three years.\nTotal loans grew $16.1 million to $1.38 billion at the end of second quarter 2024, led by residential loans, adding $8.5 million in balances due to a slowing of prepayments on steady new volume. Total commercial loans grew $8.8 million due to higher advances to mortgage broke...