Isabella Bank Corporation Reports Second Quarter 2024 Results
SECOND QUARTER 2024 HIGHLIGHTS (compared to second quarter 2023, unless otherwise stated)
- Total loans grew by an annualized rate of 5%
- 4.58% earning asset yield, compared to 4.11%
- 7% increase in wealth management income
- 0.07% 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
"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."
FINANCIAL CONDITION (
Total assets remained steady at
Securities available-for-sale decreased
Total loans grew
The allowance for credit losses decreased
Total deposits were
The level of total deposits resulted in a funding gap that was filled with short-duration Federal Home Loan bank advances. The Bank continues to have robust liquidity levels and capital. As of
Tangible book value per share was
RESULTS OF OPERATIONS
(
Net interest margin was 2.83%, up from 2.78% last quarter and was 3.11% a year ago. The decrease from a year ago primarily was driven by a higher cost of funds. The book yield from securities was 2.23% and 2.26% during second quarter 2024 and 2023, respectively. The yield includes the effect of the investment of excess cash in shorter term
The provision for credit losses was
Noninterest income was
Noninterest expenses were
About the Corporation
For more information about
Forward-Looking Statements
This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled "Risk Factors" and "Forward Looking Statements" set forth in
Non-GAAP Financial Measures
This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in
Table Index |
Consolidated Financial Schedules (Unaudited) |
A |
Selected Financial Data |
B |
Consolidated Balance Sheets |
C |
Consolidated Statements of Income |
D |
Consolidated Statements of Income |
E |
Average Yields and Costs |
F |
Average Balances |
G |
Asset Quality Analysis |
H |
Consolidated Loan and Deposit Analysis |
I |
Reconciliation of Non-GAAP Financial Measures |
SELECTED FINANCIAL DATA (UNAUDITED) |
|||||||||
(Dollars in thousands except per share amounts) |
|||||||||
|
|||||||||
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
PER SHARE |
|
|
|
|
|
|
|
|
|
Basic earnings |
$ 0.47 |
|
$ 0.42 |
|
$ 0.51 |
|
$ 0.59 |
|
$ 0.62 |
Diluted earnings |
0.46 |
|
0.42 |
|
0.51 |
|
0.58 |
|
0.61 |
Dividends |
0.28 |
|
0.28 |
|
0.28 |
|
0.28 |
|
0.28 |
Book value (1) |
27.06 |
|
26.80 |
|
27.04 |
|
24.71 |
|
25.13 |
Tangible book value (1) |
20.60 |
|
20.35 |
|
20.59 |
|
18.27 |
|
18.69 |
Market price (1) |
18.20 |
|
19.40 |
|
21.50 |
|
21.05 |
|
20.50 |
Common shares outstanding (1) |
7,474,016 |
|
7,488,101 |
|
7,485,889 |
|
7,490,557 |
|
7,496,826 |
Average number of diluted common shares outstanding |
7,494,828 |
|
7,507,739 |
|
7,526,514 |
|
7,570,374 |
|
7,567,527 |
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
Return on average total assets |
0.67 % |
|
0.61 % |
|
0.74 % |
|
0.86 % |
|
0.91 % |
Return on average shareholders' equity |
6.94 % |
|
6.16 % |
|
8.05 % |
|
9.24 % |
|
9.47 % |
Return on average tangible shareholders' equity |
9.14 % |
|
8.07 % |
|
10.82 % |
|
12.37 % |
|
12.58 % |
Net interest margin yield (fully taxable equivalent) (2) |
2.83 % |
|
2.78 % |
|
2.85 % |
|
3.02 % |
|
3.11 % |
Efficiency ratio (2) |
73.93 % |
|
74.84 % |
|
68.41 % |
|
70.56 % |
|
67.90 % |
Net loan to deposit ratio (1) |
79.46 % |
|
74.46 % |
|
77.53 % |
|
74.71 % |
|
77.06 % |
Shareholders' equity to total assets (1) |
9.82 % |
|
9.75 % |
|
9.83 % |
|
8.74 % |
|
9.23 % |
Tangible shareholders' equity to tangible assets (1) |
7.65 % |
|
7.58 % |
|
7.66 % |
|
6.61 % |
|
7.03 % |
ASSETS UNDER MANAGEMENT |
|
|
|
|
|
|
|
|
|
Assets managed by Isabella Wealth (1) |
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
Nonaccrual loans (1) |
$ 994 |
|
$ 1,283 |
|
$ 982 |
|
$ 520 |
|
$ 414 |
Foreclosed assets (1) |
629 |
|
579 |
|
406 |
|
509 |
|
405 |
Net loan charge-offs (recoveries) |
393 |
|
46 |
|
381 |
|
(254) |
|
(3) |
Net loan charge-offs (recoveries) to average loans outstanding |
0.03 % |
|
0.00 % |
|
0.03 % |
|
(0.02) % |
|
0.00 % |
Nonperforming loans to gross loans (1) |
0.07 % |
|
0.09 % |
|
0.08 % |
|
0.04 % |
|
0.04 % |
Nonperforming assets to total assets (1) |
0.08 % |
|
0.09 % |
|
0.07 % |
|
0.05 % |
|
0.05 % |
Allowance for credit losses to gross loans (1) |
0.95 % |
|
0.98 % |
|
0.97 % |
|
0.96 % |
|
0.96 % |
CAPITAL RATIOS (1) |
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
8.83 % |
|
8.80 % |
|
8.76 % |
|
8.77 % |
|
8.70 % |
Common equity tier 1 capital |
12.37 % |
|
12.36 % |
|
12.54 % |
|
12.43 % |
|
12.39 % |
Tier 1 risk-based capital |
12.37 % |
|
12.36 % |
|
12.54 % |
|
12.43 % |
|
12.39 % |
Total risk-based capital |
15.29 % |
|
15.31 % |
|
15.52 % |
|
15.39 % |
|
15.37 % |
|
(1) At end of period |
(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I |
A
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||||
(Dollars in thousands) |
|||||||||
|
|||||||||
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and demand deposits due from banks |
$ 22,690 |
|
$ 22,987 |
|
$ 25,628 |
|
$ 48,862 |
|
$ 25,584 |
Fed Funds sold and interest bearing balances |
869 |
|
2,231 |
|
8,044 |
|
67,017 |
|
4,296 |
Total cash and cash equivalents |
23,559 |
|
25,218 |
|
33,672 |
|
115,879 |
|
29,880 |
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities, at fair value |
505,646 |
|
517,585 |
|
528,148 |
|
516,897 |
|
530,497 |
|
12,762 |
|
12,762 |
|
12,762 |
|
12,762 |
|
12,762 |
Mortgage loans held-for-sale |
637 |
|
366 |
|
— |
|
105 |
|
362 |
|
|
|
|
|
|
|
|
|
|
Loans |
1,381,636 |
|
1,365,508 |
|
1,349,463 |
|
1,334,674 |
|
1,334,402 |
Less allowance for credit losses |
13,095 |
|
13,390 |
|
13,108 |
|
12,767 |
|
12,833 |
Net loans |
1,368,541 |
|
1,352,118 |
|
1,336,355 |
|
1,321,907 |
|
1,321,569 |
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
27,843 |
|
27,951 |
|
27,639 |
|
26,960 |
|
26,383 |
Bank-owned life insurance policies |
34,382 |
|
34,131 |
|
33,892 |
|
33,654 |
|
33,433 |
|
48,283 |
|
48,284 |
|
48,284 |
|
48,285 |
|
48,285 |
Other assets |
38,486 |
|
39,161 |
|
38,216 |
|
42,041 |
|
39,277 |
Total assets |
$ 2,060,139 |
|
$ 2,057,576 |
|
$ 2,058,968 |
|
$ 2,118,490 |
|
$ 2,042,448 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Demand deposits |
$ 412,193 |
|
$ 413,272 |
|
$ 428,505 |
|
$ 445,043 |
|
$ 458,845 |
Interest bearing demand deposits |
338,329 |
|
349,401 |
|
320,737 |
|
363,558 |
|
335,922 |
Savings |
603,328 |
|
639,491 |
|
628,079 |
|
628,795 |
|
606,644 |
Certificates of deposit |
368,449 |
|
366,143 |
|
346,374 |
|
332,078 |
|
313,537 |
Total deposits |
1,722,299 |
|
1,768,307 |
|
1,723,695 |
|
1,769,474 |
|
1,714,948 |
Federal funds purchased and repurchase agreements |
44,194 |
|
42,998 |
|
46,801 |
|
52,330 |
|
37,102 |
|
45,000 |
|
— |
|
40,000 |
|
65,000 |
|
55,000 |
Subordinated debt, net of unamortized issuance costs |
29,380 |
|
29,357 |
|
29,335 |
|
29,312 |
|
29,290 |
Total borrowed funds |
118,574 |
|
72,355 |
|
116,136 |
|
146,642 |
|
121,392 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
17,017 |
|
16,240 |
|
16,735 |
|
17,251 |
|
17,677 |
Total liabilities |
1,857,890 |
|
1,856,902 |
|
1,856,566 |
|
1,933,367 |
|
1,854,017 |
Shareholders' equity |
|
|
|
|
|
|
|
|
|
Common stock |
126,126 |
|
126,656 |
|
127,323 |
|
127,680 |
|
126,278 |
Shares to be issued for deferred compensation obligations |
3,951 |
|
3,890 |
|
3,693 |
|
3,641 |
|
5,395 |
Retained earnings |
99,808 |
|
98,318 |
|
97,282 |
|
95,533 |
|
93,175 |
Accumulated other comprehensive income (loss) |
(27,636) |
|
(28,190) |
|
(25,896) |
|
(41,731) |
|
(36,417) |
Total shareholders' equity |
202,249 |
|
200,674 |
|
202,402 |
|
185,123 |
|
188,431 |
Total liabilities and shareholders' equity |
$ 2,060,139 |
|
$ 2,057,576 |
|
$ 2,058,968 |
|
$ 2,118,490 |
|
$ 2,042,448 |
B
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|||
(Dollars in thousands except per share amounts) |
|||
|
|||
|
Six Months Ended June 30 |
||
|
2024 |
|
2023 |
Interest income |
|
|
|
Loans |
$ 36,920 |
|
$ 30,820 |
Available-for-sale securities |
5,688 |
|
6,267 |
|
304 |
|
135 |
Federal funds sold and other |
556 |
|
868 |
Total interest income |
43,468 |
|
38,090 |
Interest expense |
|
|
|
Deposits |
14,476 |
|
6,938 |
Federal funds purchased and repurchase agreements |
642 |
|
320 |
|
1,026 |
|
270 |
Subordinated debt, net of unamortized issuance costs |
532 |
|
532 |
Total interest expense |
16,676 |
|
8,060 |
Net interest income |
26,792 |
|
30,030 |
Provision for credit losses |
562 |
|
237 |
Net interest income after provision for credit losses |
26,230 |
|
29,793 |
Noninterest income |
|
|
|
Service charges and fees |
4,174 |
|
4,025 |
Wealth management fees |
1,987 |
|
1,767 |
Earnings on bank-owned life insurance policies |
496 |
|
452 |
Net gain on sale of mortgage loans |
101 |
|
123 |
Other |
318 |
|
530 |
Total noninterest income |
7,076 |
|
6,897 |
Noninterest expenses |
|
|
|
Compensation and benefits |
13,985 |
|
13,150 |
Occupancy and equipment |
5,325 |
|
5,208 |
Other professional services |
1,040 |
|
1,092 |
ATM and debit card fees |
956 |
|
809 |
|
532 |
|
461 |
Other |
3,733 |
|
4,017 |
Total noninterest expenses |
25,571 |
|
24,737 |
Income before income tax expense |
7,735 |
|
11,953 |
Income tax expense |
1,123 |
|
2,002 |
Net income |
$ 6,612 |
|
$ 9,951 |
Earnings per common share |
|
|
|
Basic |
$ 0.88 |
|
$ 1.32 |
Diluted |
0.88 |
|
1.31 |
Cash dividends per common share |
0.56 |
|
0.56 |
C
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|||||||||
(Dollars in thousands except per share amounts) |
|||||||||
|
|||||||||
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
Loans |
$ 18,863 |
|
$ 18,057 |
|
$ 17,580 |
|
$ 17,270 |
|
15,931 |
Available-for-sale securities |
2,804 |
|
2,884 |
|
2,926 |
|
2,963 |
|
3,047 |
|
158 |
|
146 |
|
129 |
|
91 |
|
71 |
Federal funds sold and other |
263 |
|
293 |
|
421 |
|
161 |
|
446 |
Total interest income |
22,088 |
|
21,380 |
|
21,056 |
|
20,485 |
|
19,495 |
Interest expense |
|
|
|
|
|
|
|
|
|
Deposits |
7,313 |
|
7,163 |
|
6,399 |
|
5,015 |
|
4,109 |
Federal funds purchased and repurchase agreements |
321 |
|
321 |
|
357 |
|
284 |
|
171 |
|
638 |
|
388 |
|
422 |
|
617 |
|
270 |
Subordinated debt, net of unamortized issuance costs |
266 |
|
266 |
|
266 |
|
267 |
|
266 |
Total interest expense |
8,538 |
|
8,138 |
|
7,444 |
|
6,183 |
|
4,816 |
Net interest income |
13,550 |
|
13,242 |
|
13,612 |
|
14,302 |
|
14,679 |
Provision for credit losses |
170 |
|
392 |
|
684 |
|
(292) |
|
196 |
Net interest income after provision for credit losses |
13,380 |
|
12,850 |
|
12,928 |
|
14,594 |
|
14,483 |
Noninterest income |
|
|
|
|
|
|
|
|
|
Service charges and fees |
2,128 |
|
2,046 |
|
2,212 |
|
2,060 |
|
2,047 |
Wealth management fees |
1,048 |
|
939 |
|
932 |
|
858 |
|
981 |
Earnings on bank-owned life insurance policies |
253 |
|
243 |
|
239 |
|
229 |
|
226 |
Net gain on sale of mortgage loans |
67 |
|
34 |
|
85 |
|
109 |
|
56 |
Other |
112 |
|
206 |
|
48 |
|
158 |
|
294 |
Total noninterest income |
3,608 |
|
3,468 |
|
3,516 |
|
3,414 |
|
3,604 |
Noninterest expenses |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
6,970 |
|
7,015 |
|
6,116 |
|
6,639 |
|
6,561 |
Occupancy and equipment |
2,619 |
|
2,706 |
|
2,554 |
|
2,535 |
|
2,606 |
Other professional services |
527 |
|
513 |
|
576 |
|
672 |
|
557 |
ATM and debit card fees |
487 |
|
469 |
|
487 |
|
471 |
|
409 |
|
280 |
|
252 |
|
233 |
|
228 |
|
233 |
Other |
2,012 |
|
1,721 |
|
1,949 |
|
2,113 |
|
2,173 |
Total noninterest expenses |
12,895 |
|
12,676 |
|
11,915 |
|
12,658 |
|
12,539 |
Income before income tax expense |
4,093 |
|
3,642 |
|
4,529 |
|
5,350 |
|
5,548 |
Income tax expense |
612 |
|
511 |
|
726 |
|
937 |
|
918 |
Net income |
$ 3,481 |
|
$ 3,131 |
|
$ 3,803 |
|
$ 4,413 |
|
$ 4,630 |
Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ 0.47 |
|
$ 0.42 |
|
$ 0.51 |
|
$ 0.59 |
|
$ 0.62 |
Diluted |
0.46 |
|
0.42 |
|
0.51 |
|
0.58 |
|
0.61 |
Cash dividends per common share |
0.28 |
|
0.28 |
|
0.28 |
|
0.28 |
|
0.28 |
D
AVERAGE YIELDS AND COSTS (UNAUDITED)
The following schedules present yield and daily average amounts outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. For analytical purposes, interest income is reported on a fully taxable equivalent (FTE) basis using a federal income tax rate of 21%.
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
INTEREST EARNING ASSETS |
|
|
|
|
|
|
|
|
|
Loans (1) |
5.49 % |
|
5.36 % |
|
5.25 % |
|
5.21 % |
|
4.90 % |
Available-for-sale securities |
2.23 % |
|
2.25 % |
|
2.25 % |
|
2.25 % |
|
2.26 % |
|
4.95 % |
|
4.58 % |
|
4.07 % |
|
2.85 % |
|
2.23 % |
Fed funds sold |
5.48 % |
|
5.69 % |
|
5.76 % |
|
5.51 % |
|
4.70 % |
Other |
7.49 % |
|
4.65 % |
|
6.25 % |
|
3.65 % |
|
7.16 % |
Total interest earning assets |
4.58 % |
|
4.45 % |
|
4.38 % |
|
4.30 % |
|
4.11 % |
INTEREST BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
Interest bearing demand deposits |
0.39 % |
|
0.48 % |
|
0.63 % |
|
0.28 % |
|
0.22 % |
Savings |
2.16 % |
|
2.10 % |
|
1.78 % |
|
1.45 % |
|
1.18 % |
Certificates of deposit |
3.99 % |
|
3.82 % |
|
3.63 % |
|
3.23 % |
|
2.73 % |
Federal funds purchased and repurchase agreements |
3.16 % |
|
3.16 % |
|
2.85 % |
|
2.44 % |
|
1.93 % |
|
5.61 % |
|
5.60 % |
|
5.69 % |
|
5.55 % |
|
5.29 % |
Subordinated debt, net of unamortized issuance costs |
3.62 % |
|
3.63 % |
|
3.63 % |
|
3.65 % |
|
3.63 % |
Total interest bearing liabilities |
2.37 % |
|
2.27 % |
|
2.13 % |
|
1.79 % |
|
1.41 % |
Net yield on interest earning assets (FTE) (2) |
2.83 % |
|
2.78 % |
|
2.85 % |
|
3.02 % |
|
3.11 % |
|
|
|
|
|
|
|
|
|
|
Net interest spread |
2.21 % |
|
2.18 % |
|
2.25 % |
|
2.51 % |
|
2.70 % |
|
(1) Includes loans held-for-sale and nonaccrual loans |
(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I |
E
AVERAGE BALANCES (UNAUDITED) |
|||||||||
(Dollars in thousands) |
|||||||||
|
|||||||||
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
INTEREST EARNING ASSETS |
|
|
|
|
|
|
|
||
Loans (1) |
$ 1,375,523 |
|
$ 1,348,749 |
|
$ 1,340,271 |
|
$ 1,325,455 |
|
$ 1,300,593 |
Available-for-sale securities (2) |
545,827 |
|
557,030 |
|
564,068 |
|
572,038 |
|
583,652 |
|
12,762 |
|
12,762 |
|
12,762 |
|
12,762 |
|
12,762 |
Fed funds sold |
7 |
|
7 |
|
13 |
|
13 |
|
4 |
Other (3) |
14,054 |
|
25,210 |
|
26,823 |
|
17,638 |
|
24,902 |
Total interest earning assets |
1,948,173 |
|
1,943,758 |
|
1,943,937 |
|
1,927,906 |
|
1,921,913 |
NONEARNING ASSETS |
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
(13,431) |
|
(13,100) |
|
(12,780) |
|
(12,937) |
|
(12,759) |
Cash and demand deposits due from banks |
23,931 |
|
24,018 |
|
23,244 |
|
25,287 |
|
24,807 |
Premises and equipment |
27,999 |
|
28,022 |
|
27,444 |
|
26,629 |
|
26,401 |
Other assets |
80,539 |
|
84,059 |
|
71,592 |
|
74,244 |
|
80,374 |
Total assets |
$ 2,067,211 |
|
$ 2,066,757 |
|
$ 2,053,437 |
|
$ 2,041,129 |
|
$ 2,040,736 |
INTEREST BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
Interest bearing demand deposits |
$ 342,931 |
|
$ 345,842 |
|
$ 317,996 |
|
$ 342,175 |
|
$ 348,341 |
Savings |
613,601 |
|
633,904 |
|
634,529 |
|
595,372 |
|
628,673 |
Certificates of deposit |
366,440 |
|
357,541 |
|
338,852 |
|
324,399 |
|
303,117 |
Federal funds purchased and repurchase agreements |
40,593 |
|
40,623 |
|
50,049 |
|
46,574 |
|
35,495 |
|
45,510 |
|
27,692 |
|
29,674 |
|
44,429 |
|
20,404 |
Subordinated debt, net of unamortized issuance costs |
29,365 |
|
29,342 |
|
29,320 |
|
29,298 |
|
29,275 |
Total interest bearing liabilities |
1,438,440 |
|
1,434,944 |
|
1,400,420 |
|
1,382,247 |
|
1,365,305 |
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
Demand deposits |
411,282 |
|
412,228 |
|
446,747 |
|
451,123 |
|
462,953 |
Other liabilities |
16,755 |
|
16,151 |
|
17,302 |
|
16,802 |
|
16,906 |
Shareholders' equity |
200,734 |
|
203,434 |
|
188,958 |
|
190,957 |
|
195,572 |
Total liabilities and shareholders' equity |
$ 2,067,211 |
|
$ 2,066,757 |
|
$ 2,053,427 |
|
$ 2,041,129 |
|
$ 2,040,736 |
|
(1) Includes loans held-for-sale and nonaccrual loans |
(2) Average balances for available-for-sale securities are based on amortized cost |
(3) Includes average interest-bearing deposits with other banks, net of |
F
ASSET QUALITY ANALYSIS (UNAUDITED) |
|||||||||
(Dollars in thousands) |
|||||||||
|
|||||||||
The following table outlines quarter-to-date asset quality analysis as of, and for the three-month periods ended: |
|||||||||
|
|||||||||
|
|
|
|
|
|
|
|
|
|
NONPERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ 271 |
|
$ 567 |
|
$ 491 |
|
$ 17 |
|
$ 17 |
Commercial real estate |
— |
|
234 |
|
— |
|
— |
|
— |
Agricultural |
167 |
|
189 |
|
205 |
|
208 |
|
218 |
Residential real estate |
556 |
|
293 |
|
286 |
|
295 |
|
179 |
Consumer |
— |
|
— |
|
— |
|
— |
|
— |
Total nonaccrual loans |
994 |
|
1,283 |
|
982 |
|
520 |
|
414 |
Accruing loans past due 90 days or more |
15 |
|
— |
|
87 |
|
— |
|
133 |
Total nonperforming loans |
1,009 |
|
1,283 |
|
1,069 |
|
520 |
|
547 |
Foreclosed assets |
629 |
|
579 |
|
406 |
|
509 |
|
405 |
Debt securities |
12 |
|
12 |
|
12 |
|
77 |
|
77 |
Total nonperforming assets |
$ 1,650 |
|
$ 1,874 |
|
$ 1,487 |
|
$ 1,106 |
|
$ 1,029 |
Nonperforming loans to gross loans |
0.07 % |
|
0.09 % |
|
0.08 % |
|
0.04 % |
|
0.04 % |
Nonperforming assets to total assets |
0.08 % |
|
0.09 % |
|
0.07 % |
|
0.05 % |
|
0.05 % |
Allowance for credit losses as a % of nonaccrual loans |
1,317.40 % |
|
1,043.65 % |
|
1,334.83 % |
|
2,455.19 % |
|
3,099.76 % |
ALLOWANCE FOR CREDIT LOSSES |
|
|
|
|
|
|
|
|
|
Allowance at beginning of period |
$ 13,390 |
|
$ 13,108 |
|
$ 12,767 |
|
$ 12,833 |
|
$ 12,640 |
Charge-offs |
527 |
|
191 |
|
452 |
|
179 |
|
92 |
Recoveries |
134 |
|
145 |
|
71 |
|
433 |
|
95 |
Net loan charge-offs (recoveries) |
393 |
|
46 |
|
381 |
|
(254) |
|
(3) |
Provision for credit losses - loans |
98 |
|
328 |
|
722 |
|
(320) |
|
190 |
Allowance at end of period |
$ 13,095 |
|
$ 13,390 |
|
$ 13,108 |
|
$ 12,767 |
|
$ 12,833 |
Allowance for credit losses to gross loans |
0.95 % |
|
0.98 % |
|
0.97 % |
|
0.96 % |
|
0.96 % |
NET LOAN CHARGE-OFFS (RECOVERIES) |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ 334 |
|
$ (2) |
|
$ 242 |
|
$ (41) |
|
$ (4) |
Commercial real estate |
(29) |
|
(6) |
|
(3) |
|
(3) |
|
(10) |
Agricultural |
— |
|
(2) |
|
(6) |
|
— |
|
2 |
Residential real estate |
(19) |
|
(63) |
|
(14) |
|
(266) |
|
(25) |
Consumer |
107 |
|
119 |
|
162 |
|
56 |
|
34 |
Total |
$ 393 |
|
$ 46 |
|
$ 381 |
|
$ (254) |
|
$ (3) |
Net (recoveries) charge-offs (Quarter to Date |
0.03 % |
|
0.00 % |
|
0.03 % |
|
(0.02) % |
|
0.00 % |
Net (recoveries) charge-offs (Year to Date |
0.12 % |
|
0.00 % |
|
0.03 % |
|
(0.02) % |
|
0.00 % |
DELINQUENT AND NONACCRUAL LOANS |
|
|
|
|
|
|
|
|
|
Accruing loans 30-89 days past due |
$ 1,484 |
|
$ 7,938 |
|
$ 3,895 |
|
$ 715 |
|
$ 3,132 |
Accruing loans past due 90 days or more |
15 |
|
— |
|
87 |
|
— |
|
133 |
Total accruing past due loans |
1,499 |
|
7,938 |
|
3,982 |
|
715 |
|
3,265 |
Nonaccrual loans |
994 |
|
1,283 |
|
982 |
|
520 |
|
414 |
Total past due and nonaccrual loans |
$ 2,493 |
|
$ 9,221 |
|
$ 4,964 |
|
$ 1,235 |
|
$ 3,679 |
G
CONSOLIDATED LOAN AND DEPOSIT ANALYSIS (UNAUDITED) |
|||||||||||
(Dollars in thousands) |
|||||||||||
|
|||||||||||
Loan Analysis |
|||||||||||
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
Annualized |
Commercial and industrial |
$ 238,245 |
|
$ 226,281 |
|
$ 209,738 |
|
$ 195,814 |
|
$ 194,914 |
|
21.15 % |
Commercial real estate |
547,005 |
|
561,123 |
|
564,244 |
|
566,639 |
|
564,254 |
|
(10.06) % |
Advances to mortgage brokers |
39,300 |
|
29,688 |
|
18,541 |
|
24,807 |
|
39,099 |
|
129.51 % |
Agricultural |
94,996 |
|
93,695 |
|
99,994 |
|
99,233 |
|
96,689 |
|
5.55 % |
Total commercial loans |
919,546 |
|
910,787 |
|
892,517 |
|
886,493 |
|
894,956 |
|
3.85 % |
Residential real estate |
365,188 |
|
356,658 |
|
356,418 |
|
348,196 |
|
343,474 |
|
9.57 % |
Consumer |
96,902 |
|
98,063 |
|
100,528 |
|
99,985 |
|
95,972 |
|
(4.74) % |
Gross loans |
$ 1,381,636 |
|
$ 1,365,508 |
|
$ 1,349,463 |
|
$ 1,334,674 |
|
$ 1,334,402 |
|
4.72 % |
|
|||||||||||
Deposit Analysis |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
Annualized |
Noninterest bearing demand deposits |
$ 412,193 |
|
$ 413,272 |
|
$ 428,505 |
|
$ 445,043 |
|
$ 458,845 |
|
(1.04) % |
Interest bearing demand deposits |
338,329 |
|
349,401 |
|
320,737 |
|
363,558 |
|
335,922 |
|
(12.68) % |
Savings |
603,328 |
|
639,491 |
|
628,079 |
|
628,795 |
|
606,644 |
|
(22.62) % |
Certificates of deposit |
368,449 |
|
366,143 |
|
346,374 |
|
332,078 |
|
313,537 |
|
2.52 % |
Total deposits |
$ 1,722,299 |
|
$ 1,768,307 |
|
$ 1,723,695 |
|
$ 1,769,474 |
|
$ 1,714,948 |
|
(10.41) % |
H
|
||||||||||
(Dollars in thousands) |
||||||||||
|
||||||||||
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses |
|
$ 12,895 |
|
$ 12,676 |
|
$ 11,915 |
|
$ 12,658 |
|
$ 12,539 |
Amortization of acquisition intangibles |
|
1 |
|
— |
|
1 |
|
— |
|
1 |
Core noninterest expense |
(A) |
$ 12,894 |
|
$ 12,676 |
|
$ 11,914 |
|
$ 12,658 |
|
$ 12,538 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 13,550 |
|
$ 13,242 |
|
$ 13,612 |
|
$ 14,302 |
|
$ 14,679 |
Tax equivalent adjustment for net interest margin |
|
237 |
|
246 |
|
246 |
|
250 |
|
255 |
Net interest income (FTE) |
(B) |
13,787 |
|
13,488 |
|
13,858 |
|
14,552 |
|
14,934 |
Noninterest income |
|
3,608 |
|
3,468 |
|
3,516 |
|
3,414 |
|
3,604 |
Tax equivalent adjustment for efficiency ratio |
|
53 |
|
51 |
|
50 |
|
48 |
|
47 |
Core revenue (FTE) |
|
17,448 |
|
17,007 |
|
17,424 |
|
18,014 |
|
18,585 |
Nonrecurring items |
|
|
|
|
|
|
|
|
|
|
Net gains on sale of available-for-sale securities |
|
— |
|
— |
|
— |
|
— |
|
66 |
Net gains (losses) on foreclosed assets |
|
6 |
|
69 |
|
8 |
|
75 |
|
53 |
Total nonrecurring items |
|
6 |
|
69 |
|
8 |
|
75 |
|
119 |
Adjusted core revenue |
(C) |
$ 17,442 |
|
$ 16,938 |
|
$ 17,416 |
|
$ 17,939 |
|
$ 18,466 |
Efficiency ratio |
(A/C) |
73.93 % |
|
74.84 % |
|
68.41 % |
|
70.56 % |
|
67.90 % |
Average earning assets |
(D) |
1,948,173 |
|
1,943,758 |
|
1,943,937 |
|
1,927,906 |
|
1,921,913 |
Net yield on interest earning assets (FTE) |
(B/D) |
2.83 % |
|
2.78 % |
|
2.85 % |
|
3.02 % |
|
3.11 % |
I
View original content:https://www.prnewswire.com/news-releases/isabella-bank-corporation-reports-second-quarter-2024-results-302207187.html
SOURCE