Business
Isabella Bank Corporation Reports Second Quarter 2025 Results
MOUNT PLEASANT, MI / ACCESS Newswire / July 24, 2025 / Isabella Bank Corporation (Nasdaq:ISBA) ("Isabella" or the "Company") reported second quarter 2025 net
About this update from Isabella Bank Corporation
[{"type":"text","content":"MOUNT PLEASANT, MI / ACCESS Newswire / July 24, 2025 / Isabella Bank Corporation (Nasdaq:ISBA) (\"Isabella\" or the \"Company\") reported second quarter 2025 net income of $5.0 million, or $0.68 per diluted share, compared to $3.5 million, or $0.46 per diluted share, in the same quarter of 2024. Core net income (non-GAAP) in the second quarter of 2025 totaled $4.1 million, or $0.55 per diluted share, compared to $3.5 million, or $0.46 per diluted share, for the same quarter of 2024.SECOND QUARTER 2025 HIGHLIGHTS (as of or for the three months ended June 30, 2025, compared to the second quarter of 2024, unless otherwise noted)Return on average assets (ROA) of 0.96%, up from 0.68%; core ROA (non-GAAP) of 0.79%, up from 0.68%Total loan growth from the first quarter of 2025 of 9%, annualizedTotal deposit growth from the first quarter of 2025 of 11%, annualizedNet interest margin, fully taxable equivalent (\"NIM\") (non-GAAP) of 3.14%, up from 2.82%Noninterest income up 4% from the first quarter of 2025Nonperforming loans to total loans of 0.09%\"It was a very good second quarter with improvements across most of our performance metrics,\" said Isabella's Chief Executive Officer, Jerome Schwind. \"Our financial performance centered on growth in NIM, loans, and deposits.\"NIM increased as expected, expanding 8 basis points over the prior quarter with earning assets continuing to reprice on stable cost of funds. Loan growth was driven by the commercial loan portfolio, based on our pipeline in the first quarter and the continued concentrated efforts in this business line. The increase in total deposits was highlighted by an $89 million increase in non-maturity deposits, which mostly was due to a large deposit from a not-for-profit entity that is expected to be used by the customer by the end of the year. While short-term, this deposit is another example of our strong relationships with the communities we serve. As previously announced, the Bank also recovered the entire overdraft charge-off that occurred during the third quarter of 2024. This recovery positively affected the provision for credit losses for the quarter.\"Our teams continue to focus on the profitability of our operations and initiatives to enhance and grow non-interest income, and I am proud of their dedication throughout this process,\" Schwind said. \"Our teams embrace o...