Isabella Bank Corporation Announces Strong Fourth Quarter and 2021 Earnings
Record assets, loans and net income of $19.5 million in 2021; EPS jumps 81%
MT. PLEASANT, Mich., Feb. 10, 2022 /PRNewswire/ -- Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) has released positive earnings results for the fourth quarter and year ended December 31, 2021. The Corporation reported net income of $4.8 million for the quarter and a record $19.5 million for the year. Both figures reflect increases over the same periods a year ago. Earnings per common share were $0.63 in the fourth quarter and $2.48 for the year 2021, also increases from the same periods of 2020.
2021 Highlights:
- Net income in 2021 reached a record $19.5 million, increasing 79%, compared to 2020.
- Net interest income in 2021 improved by $2.4 million compared to 2020, enabled by interest expense declining $6.4 million.
- Total assets reached a record $2 billion and total assets under management reached a record $2.8 billion at the end of 2021.
- Loans increased $62.7 million, or 5.1%, reaching a record $1.3 billion during 2021, driven by growth in the commercial and residential mortgage loan portfolios.
- Deposits increased $144 million, or 9.2%, during 2021, largely the result of new customer accounts, Paycheck Protection Program (PPP) loans, and government stimulus funds.
- Successful subordinated debt issuance of $30 million at a rate of 3.25%.
- Completion of a tender offer during the fourth quarter, resulting in the Corporation purchasing 5% of outstanding shares at $27.00 per share for a total of $10.7 million.
"Our successful subordinated debt issuance in 2021 aligns with our strategic initiatives to deliver long-term shareholder value," said Jae A. Evans, President and Chief Executive Officer. "A portion of the proceeds from the issuance were used for our subsequent tender offer, and the remaining proceeds may be used to support continued stock repurchases and expansion activity.
"Our successful Dutch auction tender offer reduced ISBA shares outstanding and will likely improve several key metrics for shareholders," Evans said. "Our ongoing stock repurchase plan and this tender offer both align with our ongoing commitment to improve shareholder value.
"Overall, we continue to grow our customer base through trusted, quality service as an independent, community bank," Evans said. "Our 2021 results, which set multiple records, are a testament to our continued focus on meeting the needs of our customers while pursuing strategic initiatives that benefit our shareholders, customers and communities over the long-term."
Operating Results
Net income: Net income for the fourth quarter 2021 was $4.8 million, compared to a net loss of $723,000 in 2020. For the year ended December 31, 2021, net income was $19.5 million, compared to $10.9 million in 2020.
Net interest income, fourth quarter 2021: Net interest income for fourth quarter 2021 decreased $70,000 compared to the same period in 2020. While interest income declined $1.4 million due to continued low interest rates, interest expense also decreased $1.3 million, or 45.2%, largely due to a reduction in higher-cost borrowings over the last year. Provision for loan losses decreased $175,000 compared to 2020 and was the result of improvement in credit quality.
Net interest income: Net interest income for the year ended December 31, 2021 increased $2.4 million, or 4.7%, compared to the same period in 2020. Lower interest rates and a reduction in higher-cost borrowing benefited the Corporation with a $6.4 million, or 46.4%, decrease in interest expense during 2021. The decrease in interest expense outpaced a gross interest income decline of $4.1 million during 2021 caused by the lower interest rates and a pause in advances to mortgage brokers. The provision for loan losses also contributed to a positive net interest income result through a $2.2 million decrease compared to 2020, as a result of continued strong credit quality.
Noninterest income and expenses, fourth quarter 2021: Noninterest income decreased $511,000 compared to the fourth quarter of 2020, driven by a reduction in gain on sale of loans. Noninterest expenses for the quarter decreased $7.4 million, attributed to a $7.6 million cost to extinguish $100 million of FHLB advances during the fourth quarter of 2020.
Noninterest income and expenses: Noninterest income of $13.8 million for the year ended December 31, 2021 decreased $601,000 compared to 2020. While service charges and fees increased $1.1 million when compared to the previous year, 2020 also included an additional $1.0 million related to gain on sale of loans and $620,000 related to gains from redemption of corporate owned life insurance policies. Noninterest expenses decreased for the year ended December 31, 2021 by $7.5 million compared to 2020, tied to the $100 million FHLB debt extinguishment in 2020.
Net yield on interest earning assets: The Corporation's fully taxable equivalent net yield on interest earning assets was 2.86% and 2.87% for the fourth quarter and year ended 2021, respectively, compared to 3.04% and 2.96% for the same periods in 2020. The net yield for 2021 reflected a full year's impact of the decline in interest rates that occurred in the first half of 2020.
Balance Sheet
Assets: Total assets were $2.0 billion and assets under management were $2.8 billion as of December 31, 2021, both record levels. Assets under management include loans sold and serviced of $278.8 million and investment and trust assets managed by Isabella Wealth of $516.2 million, in addition to assets on the consolidated balance sheet. Assets under management increased $124.5 million, or 4.6%, compared to December 31, 2020. Isabella Wealth also reached record levels during 2021 and increased 16.3% during the year.
Loans: During 2021, total loans increased $62.7 million and totaled a record $1.3 billion at December 31, 2021. As customer demand increased, along with advances to mortgage brokers, the commercial loan portfolio increased $50.8 million, or 6.7%, during 2021. Competition for agricultural loans continued to be strong in 2021 and the portfolio declined $6.5 million during the year. Residential mortgage loans increased $18.8 million, or 6.1%, during 2021, while consumer loans recorded a slight decline.
Deposits: Total deposits were a record $1.7 billion as of December 31, 2021, an increase of $144 million, or 9.2%, since December 31, 2020. Growth in 2021 was largely the result of new customer accounts, funding from PPP loans, and government stimulus funds.
Capital: The Bank is considered a "well-capitalized" institution, as its capital ratios exceeded the minimum designated requirements. As of December 31, 2021, the Bank's Tier 1 Leverage Ratio was 8.54%, Tier 1 Capital Ratio was 12.91% and Total Capital Ratio was 13.60%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.
Dividend: During the fourth quarter of 2021, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation's closing stock price of $25.50 as of December 31, 2021, the annualized cash dividend yield was 4.24%.
About the Corporation
Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.
For more information about Isabella Bank Corporation, visit the investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).
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 Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||
(Dollars in thousands) |
|||
December 31 |
December 31 |
||
ASSETS |
|||
Cash and cash equivalents |
|||
Cash and demand deposits due from banks |
$ 25,563 |
$ 31,296 |
|
Interest bearing balances due from banks |
79,767 |
215,344 |
|
Total cash and cash equivalents |
105,330 |
246,640 |
|
Available-for-sale securities, at fair value |
490,601 |
339,228 |
|
Mortgage loans available-for-sale |
1,735 |
2,741 |
|
Loans |
|||
Commercial |
807,439 |
756,686 |
|
Agricultural |
93,955 |
100,461 |
|
Residential real estate |
326,361 |
307,543 |
|
Consumer |
73,282 |
73,621 |
|
Gross loans |
1,301,037 |
1,238,311 |
|
Less allowance for loan and lease losses |
9,103 |
9,744 |
|
Net loans |
1,291,934 |
1,228,567 |
|
Premises and equipment |
24,419 |
25,140 |
|
Corporate owned life insurance policies |
32,472 |
28,292 |
|
Equity securities without readily determinable fair values |
17,383 |
17,383 |
|
Goodwill and other intangible assets |
48,302 |
48,331 |
|
Accrued interest receivable and other assets |
19,982 |
21,056 |
|
TOTAL ASSETS |
$ 2,032,158 |
$ 1,957,378 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Deposits |
|||
Noninterest bearing |
$ 448,352 |
$ 375,395 |
|
Interest bearing demand deposits |
364,563 |
302,444 |
|
Certificates of deposit under $250 and other savings |
818,841 |
781,286 |
|
Certificates of deposit over $250 |
78,583 |
107,192 |
|
Total deposits |
1,710,339 |
1,566,317 |
|
Borrowed funds |
|||
Federal funds purchased and repurchase agreements |
50,162 |
68,747 |
|
Federal Home Loan Bank advances |
20,000 |
90,000 |
|
Subordinated debt, net of unamortized issuance costs |
29,158 |
— |
|
Total borrowed funds |
99,320 |
158,747 |
|
Accrued interest payable and other liabilities |
11,451 |
13,726 |
|
Total liabilities |
1,821,110 |
1,738,790 |
|
Shareholders' equity |
|||
Common stock — no par value 15,000,000 shares authorized; issued and outstanding |
129,052 |
142,247 |
|
Shares to be issued for deferred compensation obligations |
4,545 |
4,183 |
|
Retained earnings |
75,592 |
64,460 |
|
Accumulated other comprehensive income |
1,859 |
7,698 |
|
Total shareholders' equity |
211,048 |
218,588 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 2,032,158 |
$ 1,957,378 |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|||||||
(Dollars in thousands except per share amounts) |
|||||||
Three Months Ended December 31 |
Year Ended December 31 |
||||||
2021 |
2020 |
2021 |
2020 |
||||
Interest income |
|||||||
Loans, including fees |
$ 12,776 |
$ 13,997 |
$ 51,410 |
$ 54,102 |
|||
Available-for-sale securities |
|||||||
Taxable |
1,391 |
1,302 |
4,920 |
5,214 |
|||
Nontaxable |
684 |
880 |
3,077 |
3,830 |
|||
Federal funds sold and other |
190 |
223 |
706 |
1,026 |
|||
Total interest income |
15,041 |
16,402 |
60,113 |
64,172 |
|||
Interest expense |
|||||||
Deposits |
1,079 |
1,850 |
5,442 |
8,884 |
|||
Borrowings |
|||||||
Federal funds purchased and repurchase |
13 |
14 |
53 |
36 |
|||
Federal Home Loan Bank advances |
209 |
994 |
1,302 |
4,905 |
|||
Subordinated debt, net of unamortized issuance |
266 |
— |
615 |
— |
|||
Total interest expense |
1,567 |
2,858 |
7,412 |
13,825 |
|||
Net interest income |
13,474 |
13,544 |
52,701 |
50,347 |
|||
Provision for loan losses |
81 |
256 |
(518) |
1,665 |
|||
Net interest income after provision for |
13,393 |
13,288 |
53,219 |
48,682 |
|||
Noninterest income |
|||||||
Service charges and fees |
2,125 |
1,855 |
7,614 |
6,544 |
|||
Wealth management fees |
797 |
701 |
3,071 |
2,578 |
|||
Net gain on sale of mortgage loans |
235 |
1,063 |
1,694 |
2,716 |
|||
Earnings on corporate owned life insurance policies |
223 |
197 |
800 |
755 |
|||
Gains from redemption of corporate owned life |
121 |
18 |
271 |
891 |
|||
Net income (loss) on joint venture investment |
— |
269 |
— |
577 |
|||
Other |
107 |
16 |
372 |
362 |
|||
Total noninterest income |
3,608 |
4,119 |
13,822 |
14,423 |
|||
Noninterest expenses |
|||||||
Compensation and benefits |
6,056 |
6,009 |
23,749 |
23,772 |
|||
Furniture and equipment |
1,413 |
1,469 |
5,462 |
5,787 |
|||
Occupancy |
935 |
889 |
3,661 |
3,557 |
|||
Loss on extinguishment of debt |
— |
7,643 |
— |
7,643 |
|||
Other |
2,793 |
2,628 |
10,822 |
10,474 |
|||
Total noninterest expenses |
11,197 |
18,638 |
43,694 |
51,233 |
|||
Income before federal income tax |
5,804 |
(1,231) |
23,347 |
11,872 |
|||
Federal income tax expense |
1,010 |
(508) |
3,848 |
987 |
|||
NET INCOME |
$ 4,794 |
$ (723) |
$ 19,499 |
$ 10,885 |
|||
Earnings per common share |
|||||||
Basic |
$ 0.63 |
$ (0.10) |
$ 2.48 |
$ 1.37 |
|||
Diluted |
$ 0.63 |
$ (0.10) |
$ 2.45 |
$ 1.34 |
|||
Cash dividends per common share |
$ 0.27 |
$ 0.27 |
$ 1.08 |
$ 1.08 |
|||
AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED)
(Dollars in thousands)
The following schedules present the daily average amount outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. These schedules also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a fully taxable equivalent (FTE) basis using a federal income tax rate of 21%. Loans in nonaccrual status, for the purpose of the following computations, are included in the average loan balances. Federal Reserve Bank (FRB) and Federal Home Loan Bank (FHLB) restricted equity holdings are included in other interest earning assets.
Three Months Ended |
|||||||||||
December 31, 2021 |
December 31, 2020 |
||||||||||
Average Balance |
Tax Equivalent Interest |
Average Yield / Rate |
Average Balance |
Tax Equivalent Interest |
Average Yield / Rate |
||||||
INTEREST EARNING ASSETS |
|||||||||||
Loans |
$ 1,226,192 |
$ 12,776 |
4.17% |
$ 1,258,775 |
$ 13,997 |
4.45% |
|||||
Taxable investment securities |
383,175 |
1,391 |
1.45% |
205,522 |
1,302 |
2.53% |
|||||
Nontaxable investment securities |
104,115 |
889 |
3.42% |
134,026 |
1,200 |
3.58% |
|||||
Fed funds sold |
9 |
— |
0.01% |
3 |
— |
—% |
|||||
Other |
199,605 |
190 |
0.38% |
227,920 |
223 |
0.39% |
|||||
Total earning assets |
1,913,096 |
15,246 |
3.19% |
1,826,246 |
16,722 |
3.66% |
|||||
NONEARNING ASSETS |
|||||||||||
Allowance for loan losses |
(9,082) |
(9,603) |
|||||||||
Cash and demand deposits due from banks |
28,852 |
28,606 |
|||||||||
Premises and equipment |
24,534 |
25,656 |
|||||||||
Accrued income and other assets |
109,238 |
119,230 |
|||||||||
Total assets |
$ 2,066,638 |
$ 1,990,135 |
|||||||||
INTEREST BEARING LIABILITIES |
|||||||||||
Interest bearing demand deposits |
$ 367,130 |
$ 48 |
0.05% |
$ 285,731 |
$ 94 |
0.13% |
|||||
Savings deposits |
584,475 |
157 |
0.11% |
487,014 |
148 |
0.12% |
|||||
Time deposits |
306,817 |
874 |
1.14% |
383,436 |
1,608 |
1.68% |
|||||
Federal funds purchased and repurchase agreements |
60,508 |
13 |
0.09% |
49,427 |
14 |
0.11% |
|||||
Federal Home Loan Bank advances |
40,543 |
209 |
2.06% |
174,728 |
994 |
2.28% |
|||||
Subordinated debt, net of unamortized issuance costs |
29,143 |
266 |
3.65% |
— |
— |
—% |
|||||
Total interest bearing liabilities |
1,388,616 |
1,567 |
0.45% |
1,380,336 |
2,858 |
0.83% |
|||||
NONINTEREST BEARING LIABILITIES |
|||||||||||
Demand deposits |
449,766 |
370,042 |
|||||||||
Other |
12,002 |
16,446 |
|||||||||
Shareholders' equity |
216,254 |
223,311 |
|||||||||
Total liabilities and shareholders' equity |
$ 2,066,638 |
$ 1,990,135 |
|||||||||
Net interest income (FTE) |
$ 13,679 |
$ 13,864 |
|||||||||
Net yield on interest earning assets (FTE) |
2.86% |
3.04% |
|||||||||
Year Ended |
|||||||||||
December 31, 2021 |
December 31, 2020 |
||||||||||
Average Balance |
Tax Equivalent Interest |
Average Yield / Rate |
Average Balance |
Tax Equivalent Interest |
Average Yield / Rate |
||||||
INTEREST EARNING ASSETS |
|||||||||||
Loans |
$ 1,208,141 |
$ 51,410 |
4.26% |
$ 1,236,169 |
$ 54,102 |
4.38% |
|||||
Taxable investment securities |
297,357 |
4,920 |
1.65% |
229,468 |
5,214 |
2.27% |
|||||
Nontaxable investment securities |
117,997 |
4,235 |
3.59% |
140,665 |
5,189 |
3.69% |
|||||
Fed funds sold |
5 |
— |
0.02% |
4 |
— |
0.06% |
|||||
Other |
255,246 |
706 |
0.28% |
142,717 |
1,026 |
0.72% |
|||||
Total earning assets |
1,878,746 |
61,271 |
3.26% |
1,749,023 |
65,531 |
3.75% |
|||||
NONEARNING ASSETS |
|||||||||||
Allowance for loan losses |
(9,396) |
(8,837) |
|||||||||
Cash and demand deposits due from banks |
29,139 |
24,987 |
|||||||||
Premises and equipment |
24,760 |
25,846 |
|||||||||
Accrued income and other assets |
109,625 |
118,195 |
|||||||||
Total assets |
$ 2,032,874 |
$ 1,909,214 |
|||||||||
INTEREST BEARING LIABILITIES |
|||||||||||
Interest bearing demand deposits |
$ 345,015 |
$ 216 |
0.06% |
$ 262,188 |
$ 357 |
0.14% |
|||||
Savings deposits |
558,102 |
616 |
0.11% |
456,088 |
1,212 |
0.27% |
|||||
Time deposits |
336,094 |
4,610 |
1.37% |
387,881 |
7,315 |
1.89% |
|||||
Federal funds purchased and repurchase agreements |
57,453 |
53 |
0.09% |
35,518 |
36 |
0.10% |
|||||
Federal Home Loan Bank advances |
69,342 |
1,302 |
1.88% |
210,451 |
4,905 |
2.33% |
|||||
Subordinated debt, net of unamortized issuance costs |
17,000 |
615 |
3.62% |
— |
— |
—% |
|||||
Total interest bearing liabilities |
1,383,006 |
7,412 |
0.54% |
1,352,126 |
13,825 |
1.02% |
|||||
NONINTEREST BEARING LIABILITIES |
|||||||||||
Demand deposits |
416,247 |
320,820 |
|||||||||
Other |
12,858 |
15,613 |
|||||||||
Shareholders' equity |
220,763 |
220,655 |
|||||||||
Total liabilities and shareholders' equity |
$ 2,032,874 |
$ 1,909,214 |
|||||||||
Net interest income (FTE) |
$ 53,859 |
$ 51,706 |
|||||||||
Net yield on interest earning assets (FTE) |
2.87% |
2.96% |
|||||||||
SELECTED FINANCIAL DATA (UNAUDITED) |
|||||
(Dollars in thousands except per share amounts) |
|||||
Year Ended |
|||||
December 31 |
December 31 |
December 31 |
|||
PER SHARE |
|||||
Basic earnings |
$ 2.48 |
$ 1.37 |
$ 1.65 |
||
Diluted earnings |
$ 2.45 |
$ 1.34 |
$ 1.61 |
||
Dividends |
$ 1.08 |
$ 1.08 |
$ 1.05 |
||
Tangible book value |
$ 21.61 |
$ 21.29 |
$ 20.45 |
||
Quoted market value |
|||||
High |
$ 29.00 |
$ 24.50 |
$ 24.80 |
||
Low |
$ 19.45 |
$ 15.60 |
$ 22.01 |
||
Close (1) |
$ 25.50 |
$ 19.57 |
$ 24.31 |
||
Common shares outstanding (1) |
7,532,641 |
7,997,247 |
7,910,804 |
||
Average number of common shares outstanding |
7,853,398 |
7,959,705 |
7,909,794 |
||
Average number of diluted common shares outstanding |
7,965,961 |
8,106,091 |
8,095,042 |
||
PERFORMANCE RATIOS |
|||||
Return on average total assets |
0.96% |
0.57% |
0.72% |
||
Return on average shareholders' equity |
8.83% |
4.93% |
6.25% |
||
Return on average tangible shareholders' equity |
11.31% |
6.34% |
8.17% |
||
Net interest margin yield (FTE) |
2.87% |
2.96% |
3.07% |
||
ASSETS UNDER MANAGEMENT (1) |
|||||
Loans sold with servicing retained |
$ 278,844 |
$ 301,377 |
$ 259,375 |
||
Assets managed by Isabella Wealth |
$ 516,243 |
$ 443,967 |
$ 436,181 |
||
Total assets under management |
$ 2,827,245 |
$ 2,702,722 |
$ 2,509,754 |
||
ASSET QUALITY (1) |
|||||
Nonaccrual status loans |
$ 1,245 |
$ 5,313 |
$ 6,535 |
||
Performing troubled debt restructurings |
$ 25,276 |
$ 22,200 |
$ 21,194 |
||
Foreclosed assets |
$ 211 |
$ 527 |
$ 456 |
||
Net loan charge-offs (recoveries) |
$ 123 |
$ (140) |
$ 466 |
||
Nonperforming loans to gross loans |
0.10% |
0.43% |
0.55% |
||
Nonperforming assets to total assets |
0.08% |
0.31% |
0.40% |
||
Allowance for loan and lease losses to gross loans |
0.70% |
0.79% |
0.67% |
||
CAPITAL RATIOS (1) |
|||||
Shareholders' equity to assets |
10.39% |
11.17% |
11.59% |
||
Tier 1 leverage |
7.97% |
8.37% |
9.01% |
||
Common equity tier 1 capital |
12.07% |
12.97% |
12.56% |
||
Tier 1 risk-based capital |
12.07% |
12.97% |
12.56% |
||
Total risk-based capital |
14.94% |
13.75% |
13.18% |
||
(1) At end of period |
SUPPLEMENTAL BALANCE SHEET DATA (UNAUDITED) |
|||||||||
(Dollars in thousands) |
|||||||||
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|||||
Commercial |
$ 807,439 |
$ 757,993 |
$ 723,888 |
$ 725,540 |
$ 756,686 |
||||
Agricultural |
93,955 |
93,782 |
95,197 |
91,629 |
100,461 |
||||
Residential real estate |
326,361 |
321,620 |
312,567 |
305,909 |
307,543 |
||||
Consumer |
73,282 |
75,163 |
75,011 |
72,840 |
73,621 |
||||
Gross loans |
$ 1,301,037 |
$ 1,248,558 |
$ 1,206,663 |
$ 1,195,918 |
$ 1,238,311 |
||||
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|||||
Noninterest bearing demand deposits |
$ 448,352 |
$ 430,950 |
$ 428,410 |
$ 404,710 |
$ 375,395 |
||||
Interest bearing demand deposits |
364,563 |
374,137 |
326,971 |
328,440 |
302,444 |
||||
Savings deposits |
596,662 |
572,136 |
549,134 |
555,688 |
505,497 |
||||
Certificates of deposit |
297,696 |
312,027 |
326,214 |
331,413 |
358,165 |
||||
Brokered certificates of deposit |
— |
— |
— |
14,029 |
14,029 |
||||
Internet certificates of deposit |
3,066 |
3,066 |
5,777 |
9,301 |
10,787 |
||||
Total deposits |
$ 1,710,339 |
$ 1,692,316 |
$ 1,636,506 |
$ 1,643,581 |
$ 1,566,317 |
||||
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|||||
U.S. Treasury |
$ 209,703 |
$ 192,069 |
$ 132,593 |
$ 29,371 |
$ — |
||||
States and political subdivisions |
121,205 |
128,689 |
130,960 |
140,329 |
143,656 |
||||
Auction rate money market preferred |
3,242 |
3,246 |
3,260 |
3,224 |
3,237 |
||||
Mortgage-backed securities |
56,148 |
62,030 |
68,155 |
75,835 |
88,652 |
||||
Collateralized mortgage obligations |
92,301 |
100,767 |
109,294 |
116,865 |
101,983 |
||||
Corporate |
8,002 |
7,583 |
4,192 |
1,700 |
1,700 |
||||
Available-for-sale securities, at |
$ 490,601 |
$ 494,384 |
$ 448,454 |
$ 367,324 |
$ 339,228 |
||||
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|||||
Federal Home Loan Bank advances |
$ 20,000 |
$ 60,000 |
$ 70,000 |
$ 90,000 |
$ 90,000 |
||||
Securities sold under agreements to |
50,162 |
67,519 |
62,274 |
51,967 |
68,747 |
||||
Subordinated debt, net of unamortized |
29,158 |
29,136 |
29,121 |
— |
— |
||||
Total borrowed funds |
$ 99,320 |
$ 156,655 |
$ 161,395 |
$ 141,967 |
$ 158,747 |
||||
SUPPLEMENTAL STATEMENTS OF INCOME DATA (UNAUDITED) |
|||||||
(Dollars in thousands) |
|||||||
Three Months Ended December 31 |
Year Ended December 31 |
||||||
2021 |
2020 |
2021 |
2020 |
||||
Service charges and fees |
|||||||
ATM and debit card fees |
$ 1,318 |
$ 1,043 |
$ 4,600 |
$ 3,723 |
|||
Service charges and fees on deposit accounts |
621 |
474 |
2,139 |
1,847 |
|||
Freddie Mac servicing fee |
175 |
149 |
747 |
625 |
|||
Net OMSR income (loss) |
(56) |
123 |
(184) |
44 |
|||
Other fees for customer services |
67 |
66 |
312 |
305 |
|||
Total service charges and fees |
2,125 |
1,855 |
7,614 |
6,544 |
|||
Wealth management fees |
797 |
701 |
3,071 |
2,578 |
|||
Net gain on sale of mortgage loans |
235 |
1,063 |
1,694 |
2,716 |
|||
Earnings on corporate owned life insurance policies |
223 |
197 |
800 |
755 |
|||
Gains from redemption of corporate owned life insurance policies |
121 |
18 |
271 |
891 |
|||
Net income (loss) on joint venture investment |
— |
269 |
— |
577 |
|||
Other |
107 |
16 |
372 |
362 |
|||
Total noninterest income |
$ 3,608 |
$ 4,119 |
$ 13,822 |
$ 14,423 |
|||
Three Months Ended December 31 |
Year Ended December 31 |
||||||
2021 |
2020 |
2021 |
2020 |
||||
Compensation and benefits |
$ 6,056 |
$ 6,009 |
$ 23,749 |
$ 23,772 |
|||
Furniture and equipment |
1,413 |
1,469 |
5,462 |
5,787 |
|||
Occupancy |
935 |
889 |
3,661 |
3,557 |
|||
Loss on extinguishment of debt |
— |
7,643 |
— |
7,643 |
|||
Other |
|||||||
Audit, consulting, and legal fees |
513 |
488 |
2,066 |
1,836 |
|||
ATM and debit card fees |
458 |
417 |
1,810 |
1,441 |
|||
Marketing costs |
256 |
200 |
939 |
877 |
|||
Memberships and subscriptions |
215 |
194 |
877 |
740 |
|||
Loan underwriting fees |
221 |
248 |
849 |
825 |
|||
Donations and community relations |
253 |
157 |
705 |
723 |
|||
Director fees |
198 |
168 |
703 |
695 |
|||
FDIC insurance premiums |
161 |
153 |
690 |
612 |
|||
All other |
518 |
603 |
2,183 |
2,725 |
|||
Total other noninterest expenses |
2,793 |
2,628 |
10,822 |
10,474 |
|||
Total noninterest expenses |
$ 11,197 |
$ 18,638 |
$ 43,694 |
$ 51,233 |
|||
SOURCE Isabella Bank Corporation
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