Isabella Bank Corporation Reports First Quarter 2024 Results
Loan, Deposit and Wealth Asset Growth continue in 2024
MT. PLEASANT, Mich., April 18, 2024 /PRNewswire/ -- Isabella Bank Corporation (OTCQX: ISBA) (the "Company") reported first quarter 2024 net income of $3.1 million or $0.42 per diluted share compared to $5.3 million or $0.70 per diluted share in the same quarter of 2023.
FIRST QUARTER 2024 HIGHLIGHTS (compared to first quarter 2023, unless otherwise stated)
- Total commercial loan growth of 8% annualized, compared to 0.4%
- Earning asset yield of 4.45%, compared to 3.89%
- Wealth management income increased 19%
- Nonperforming loans to total loans ratio of 0.09%
"Earnings declined year-over-year because of continued interest rate pressure. However, the bank recorded positive results in loans, deposits and wealth management assets as a result of continuing to attract new customers while retaining strong loyalty among our current customers," according to Chief Executive Officer Jerome Schwind. "We've also maintained excellent liquidity and strong credit quality among loan customers, factors that fuel our underlying strength and resilience during continued high interest rates.
"As previously announced, the corporation paid a quarterly cash dividend of $0.28 per share of common stock, which continues to provide an attractive dividend yield for shareholders."
FINANCIAL CONDITION (March 31, 2024 compared to December 31, 2023)
Total assets were $2.06 billion at the end of both the first quarter 2024 and year-end 2023, primarily due to loan growth, which were offset by lower balances in cash and securities. Excess cash, security amortization, and strong deposit growth provided the funding for loan growth and borrowing payoffs during the quarter.
Total loans grew $16 million to $1.37 billion at the end of first quarter 2024. Total commercial loans, which include advances to mortgage brokers and agricultural loans, increased $18.3 million as the Company selectively expanded its book of business across many industries, but most notably in construction and real estate sectors. Residential loan volume remained stable during the quarter as originations kept pace with paydowns, as well as a few sales in the secondary market. Demand for mortgages remains low given prevailing market rates, housing prices and low inventory.
Securities available for sale decreased $10.6 million to $517.6 million at the end of the first quarter 2024, primarily due to amortization from collateralized mortgage obligations and higher unrealized losses on the total portfolio. Unrealized losses on securities totaled $34.8 million, or 6.3% of the portfolio, at the end of the first quarter 2024 versus $31.8 million at year-end 2023, reflecting an increase in market rates.
The allowance for credit losses increased $282 thousand to $13.4 million at the end of the first quarter 2024 due to loan growth and specific reserves on a few small commercial loans whose credit ratings were downgraded. Nonaccruing loans increased $301 thousand to $1.3 million, principally due to one commercial credit that is expected to be settled in the near-term. Past due accounts between 30 to 89 days as a percentage of total loans was 0.62% during the first quarter 2024, compared to 0.31% at year-end 2023. The increase primarily is due to a group of customers that typically make payments about 30 days in arrears, which becomes overdue when the 31st day lands on a business day. Accordingly, the increase is not believed to be an indication of deteriorating credit quality. Overall, credit quality remains strong, and there are not any negative trends.
Total deposits increased $44.6 million to $1.77 billion at the end of the first quarter 2024. Demand for retail certificates of deposits (CDs) continues based on the rate environment, resulting in a $19.8 million increase in the balance during the quarter. Other interest-bearing deposits increased $40.1 million, which underscores strong relationships the bank continues to build in the communities in which it serves. Demand deposits decreased $15.2 million, which is consistent in seasonal trends in the markets. Additionally, the strong inflow of deposits provided the opportunity to payoff $40.0 million of higher cost Federal Home Loan Bank advances during the quarter.
The Company's tangible book value per share was $20.35 as of March 31, 2024, compared to $20.59 on December 31, 2023. Unrealized losses on securities, net of taxes, reduced tangible book value per share by $3.67 and $3.36 at the end of those respective periods.
The Bank is considered a "well-capitalized" institution, as its capital ratios exceeded the minimum designated requirements. As of March 31, 2024, the Bank's Tier 1 Leverage Ratio was 8.61%, Tier 1 Capital Ratio was 12.10%, and Total Capital Ratio was 13.05% — well above the minimum requirements of 5.0%, 8.0%, and 10.0%, respectively.
RESULTS OF OPERATIONS (March 31, 2024 to March 31, 2023 quarterly comparison)
Net interest margin was 2.78% compared to 3.22% in the first quarter 2023. The decrease was primarily driven by a higher cost of funds. The book yield from securities was 2.25% and 2.29% at March 31, 2024 and 2023. The yield includes the effect of the investment of excess cash in shorter term US treasury securities following the COVID pandemic in 2021 and 2022. As a result, these securities will mature over the next 2 to 5 years, and the proceeds are expected to be reinvested in market rate loans and securities. The yield on loans expanded to 5.36% in the first quarter 2024, up from 4.70% in the same quarter of 2023. Approximately 46% of commercial loans are fixed at rates that are lower than current market rates but will contractually reprice to variable rates over the next 3 to 5 years which will improve the overall yield on earning assets. Costs of interest-bearing liabilities increased to 2.27% from 0.95% in the first quarter 2023, reflecting a higher level of retail CDs and overall deposit relationship pricing.
The provision for credit losses was $392 thousand in the first quarter of 2024 and was $41 thousand in the same quarter of 2023. The change was largely due to loan growth and a few specific reserves on commercial loans that were downgraded in the first quarter of 2024.
Noninterest income was $3.5 million in the first quarter 2024, up 5% as compared to the same quarter 2023. Customer service fees grew by $68 thousand to $2.0 million as compared to the same quarter of 2023 on a higher number of transactional accounts. Wealth management income increased by $153 thousand to $939 thousand from the prior year quarter due to an increase of $89.2 million in assets under management (AUM). Wealth AUM increased by $19.6 million to $660.6 million from $641.0 million as of fourth quarter 2023 primarily due to new accounts and higher security valuations in the first quarter 2024.
Noninterest expense was $12.7 million in the first quarter 2024 compared to $12.2 million in the first quarter 2023. Compensation and benefit expenses increased $426 thousand from the comparative quarter in 2023. The increase reflects annual merit increases and medical claim adjustments totaling $225 thousand.
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 its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.
For more information about Isabella Bank Corporation, visit the Investor Relations 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 investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.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) |
|||
March 31 |
December 31 |
||
ASSETS |
|||
Cash and cash equivalents |
|||
Cash and demand deposits due from banks |
$ 22,987 |
$ 25,628 |
|
Fed Funds sold and interest bearing balances due from banks |
2,231 |
8,044 |
|
Total cash and cash equivalents |
25,218 |
33,672 |
|
Available-for-sale securities, at fair value |
517,585 |
528,148 |
|
Mortgage loans available-for-sale |
366 |
— |
|
Loans |
1,365,508 |
1,349,463 |
|
Less allowance for credit losses |
13,390 |
13,108 |
|
Net loans |
1,352,118 |
1,336,355 |
|
Premises and equipment |
27,951 |
27,639 |
|
Bank owned life insurance policies |
34,131 |
33,892 |
|
Equity securities without readily determinable fair values |
15,848 |
15,848 |
|
Goodwill and other intangible assets |
48,284 |
48,284 |
|
Accrued interest receivable and other assets |
36,075 |
35,130 |
|
TOTAL ASSETS |
$ 2,057,576 |
$ 2,058,968 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Deposits |
|||
Noninterest bearing |
$ 413,272 |
$ 428,505 |
|
Interest bearing demand deposits |
349,401 |
320,737 |
|
Certificates of deposit under $250 and other savings |
881,528 |
857,768 |
|
Certificates of deposit over $250 |
124,106 |
116,685 |
|
Total deposits |
1,768,307 |
1,723,695 |
|
Borrowed funds |
|||
Federal funds purchased and repurchase agreements |
42,998 |
46,801 |
|
Federal Home Loan Bank advances |
— |
40,000 |
|
Subordinated debt, net of unamortized issuance costs |
29,357 |
29,335 |
|
Total borrowed funds |
72,355 |
116,136 |
|
Accrued interest payable and other liabilities |
16,240 |
16,735 |
|
Total liabilities |
1,856,902 |
1,856,566 |
|
Shareholders' equity |
|||
Common stock — no par value 15,000,000 shares authorized; issued and outstanding |
126,656 |
127,323 |
|
Shares to be issued for deferred compensation obligations |
3,890 |
3,693 |
|
Retained earnings |
98,318 |
97,282 |
|
Accumulated other comprehensive income (loss) |
(28,190) |
(25,896) |
|
Total shareholders' equity |
200,674 |
202,402 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 2,057,576 |
$ 2,058,968 |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|||
(Dollars in thousands except per share amounts) |
|||
Three Months Ended March 31 |
|||
2024 |
2023 |
||
Interest income |
|||
Loans, including fees |
$ 18,057 |
$ 14,889 |
|
Available-for-sale securities |
|||
Taxable |
2,258 |
2,502 |
|
Nontaxable |
626 |
718 |
|
Federal funds sold and other |
439 |
486 |
|
Total interest income |
21,380 |
18,595 |
|
Interest expense |
|||
Deposits |
7,163 |
2,829 |
|
Borrowings |
|||
Federal funds purchased and repurchase agreements |
321 |
149 |
|
Federal Home Loan Bank advances |
388 |
— |
|
Subordinated debt, net of unamortized issuance costs |
266 |
266 |
|
Total interest expense |
8,138 |
3,244 |
|
Net interest income |
13,242 |
15,351 |
|
Provision for credit losses |
392 |
41 |
|
Net interest income after provision for credit losses |
12,850 |
15,310 |
|
Noninterest income |
|||
Service charges and fees |
2,046 |
1,978 |
|
Wealth management fees |
939 |
786 |
|
Earnings on bank owned life insurance policies |
243 |
226 |
|
Net gain on sale of mortgage loans |
34 |
67 |
|
Other |
206 |
236 |
|
Total noninterest income |
3,468 |
3,293 |
|
Noninterest expenses |
|||
Compensation and benefits |
7,015 |
6,589 |
|
Furniture and equipment |
1,675 |
1,597 |
|
Occupancy |
1,031 |
1,005 |
|
Other |
2,955 |
3,007 |
|
Total noninterest expenses |
12,676 |
12,198 |
|
Income before federal income tax expense |
3,642 |
6,405 |
|
Federal income tax expense |
511 |
1,084 |
|
NET INCOME |
$ 3,131 |
$ 5,321 |
|
Earnings per common share |
|||
Basic |
$ 0.42 |
$ 0.70 |
|
Diluted |
$ 0.42 |
$ 0.70 |
|
Cash dividends per common share |
$ 0.28 |
$ 0.28 |
|
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 restricted equity holdings are included in other interest earning assets.
Three Months Ended |
|||||||||||
March 31, 2024 |
March 31, 2023 |
||||||||||
Average Balance |
Tax Equivalent Interest |
Average Yield / Rate |
Average Balance |
Tax Equivalent Interest |
Average Yield / Rate |
||||||
INTEREST EARNING ASSETS |
|||||||||||
Loans (1) |
$ 1,348,749 |
$ 18,057 |
5.36 % |
$ 1,268,269 |
$ 14,889 |
4.70 % |
|||||
Taxable investment securities |
467,974 |
2,228 |
1.90 % |
504,889 |
2,471 |
1.96 % |
|||||
Nontaxable investment securities |
89,056 |
902 |
4.05 % |
106,240 |
1,021 |
3.84 % |
|||||
Fed funds sold |
7 |
— |
5.69 % |
17 |
— |
4.50 % |
|||||
Other |
37,972 |
439 |
4.62 % |
60,583 |
486 |
3.21 % |
|||||
Total earning assets |
1,943,758 |
21,626 |
4.45 % |
1,939,998 |
18,867 |
3.89 % |
|||||
NONEARNING ASSETS |
|||||||||||
Allowance for credit losses |
(13,100) |
(12,660) |
|||||||||
Cash and demand deposits due from |
24,018 |
25,039 |
|||||||||
Premises and equipment |
28,022 |
25,864 |
|||||||||
Accrued income and other assets |
84,059 |
71,063 |
|||||||||
Total assets |
$ 2,066,757 |
$ 2,049,304 |
|||||||||
INTEREST BEARING LIABILITIES |
|||||||||||
Interest bearing demand deposits |
$ 345,842 |
413 |
0.48 % |
$ 379,717 |
146 |
0.15 % |
|||||
Savings deposits |
633,904 |
3,333 |
2.10 % |
645,987 |
1,466 |
0.91 % |
|||||
Time deposits |
357,541 |
3,417 |
3.82 % |
267,463 |
1,217 |
1.82 % |
|||||
Federal funds purchased and |
40,623 |
321 |
3.16 % |
39,709 |
149 |
1.50 % |
|||||
Federal Home Loan Bank advances |
27,692 |
388 |
5.60 % |
— |
— |
— % |
|||||
Subordinated debt, net of |
29,342 |
266 |
3.63 % |
29,253 |
266 |
3.64 % |
|||||
Total interest bearing liabilities |
1,434,944 |
8,138 |
2.27 % |
1,362,129 |
3,244 |
0.95 % |
|||||
NONINTEREST BEARING |
|||||||||||
Demand deposits |
412,228 |
486,491 |
|||||||||
Other |
16,151 |
13,094 |
|||||||||
Shareholders' equity |
203,434 |
187,590 |
|||||||||
Total liabilities and shareholders' |
$ 2,066,757 |
$ 2,049,304 |
|||||||||
Net interest income (FTE) |
$ 13,488 |
$ 15,623 |
|||||||||
Net yield on interest earning |
2.78 % |
3.22 % |
|||||||||
(1) |
Includes loans and mortgage loans available-for-sale |
SELECTED FINANCIAL DATA (UNAUDITED) |
|||||||||
(Dollars in thousands except per share amounts) |
|||||||||
Three Months Ended |
|||||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|||||
PER SHARE |
|||||||||
Basic earnings |
$ 0.42 |
$ 0.51 |
$ 0.59 |
$ 0.62 |
$ 0.70 |
||||
Diluted earnings |
$ 0.42 |
$ 0.51 |
$ 0.58 |
$ 0.61 |
$ 0.70 |
||||
Dividends |
$ 0.28 |
$ 0.28 |
$ 0.28 |
$ 0.28 |
$ 0.28 |
||||
Tangible book value (1) |
$ 20.35 |
$ 20.59 |
$ 18.27 |
$ 18.69 |
$ 19.24 |
||||
Quoted market value |
|||||||||
High |
$ 21.74 |
$ 22.00 |
$ 23.00 |
$ 26.00 |
$ 25.10 |
||||
Low |
$ 18.25 |
$ 19.75 |
$ 19.61 |
$ 19.13 |
$ 22.08 |
||||
Market price (1) |
$ 19.40 |
$ 21.50 |
$ 21.05 |
$ 20.50 |
$ 24.80 |
||||
Common shares outstanding (1) |
7,488,101 |
7,485,889 |
7,490,557 |
7,496,826 |
7,540,015 |
||||
Average number of common shares |
7,493,334 |
7,492,532 |
7,495,168 |
7,498,584 |
7,556,585 |
||||
Average number of diluted common |
7,507,739 |
7,526,514 |
7,570,374 |
7,567,527 |
7,634,417 |
||||
PERFORMANCE RATIOS |
|||||||||
Return on average total assets |
0.61 % |
0.74 % |
0.86 % |
0.91 % |
1.04 % |
||||
Return on average shareholders' equity |
6.16 % |
8.05 % |
9.24 % |
9.47 % |
11.35 % |
||||
Return on average tangible |
8.07 % |
10.82 % |
12.37 % |
12.58 % |
15.28 % |
||||
Net interest margin yield (FTE) |
2.78 % |
2.85 % |
3.02 % |
3.11 % |
3.22 % |
||||
ASSETS UNDER MANAGEMENT (1) |
|||||||||
Loans sold with servicing retained |
$ 244,829 |
$ 248,756 |
$ 252,176 |
$ 254,934 |
$ 259,512 |
||||
Assets managed by Isabella Wealth |
$ 660,645 |
$ 641,027 |
$ 590,666 |
$ 593,530 |
$ 571,453 |
||||
Total assets under management |
$ 2,963,050 |
$ 2,948,751 |
$ 2,961,332 |
$ 2,890,912 |
$ 2,915,589 |
||||
ASSET QUALITY (1) |
|||||||||
Nonaccrual loans |
$ 1,283 |
$ 982 |
$ 520 |
$ 414 |
$ 488 |
||||
Foreclosed assets |
$ 579 |
$ 406 |
$ 509 |
$ 405 |
$ 414 |
||||
Net loan charge-offs (recoveries) |
$ 46 |
$ 381 |
$ (254) |
$ (3) |
$ (9) |
||||
Nonperforming loans to gross loans |
0.09 % |
0.08 % |
0.04 % |
0.04 % |
0.04 % |
||||
Nonperforming assets to total assets |
0.09 % |
0.07 % |
0.05 % |
0.05 % |
0.05 % |
||||
Allowance for credit losses to gross loans |
0.98 % |
0.97 % |
0.96 % |
0.96 % |
0.99 % |
||||
CAPITAL RATIOS (1) |
|||||||||
Shareholders' equity to assets |
9.75 % |
9.83 % |
8.74 % |
9.23 % |
9.27 % |
||||
Tier 1 leverage |
8.80 % |
8.76 % |
8.77 % |
8.70 % |
8.58 % |
||||
Common equity tier 1 capital |
12.36 % |
12.54 % |
12.43 % |
12.39 % |
12.71 % |
||||
Tier 1 risk-based capital |
12.36 % |
12.54 % |
12.43 % |
12.39 % |
12.71 % |
||||
Total risk-based capital |
15.31 % |
15.52 % |
15.39 % |
15.37 % |
15.77 % |
||||
(1) |
At end of period |
SELECTED FINANCIAL DATA (UNAUDITED) |
|||||
(Dollars in thousands except per share amounts) |
|||||
Three Months Ended |
|||||
March 31 |
March 31 |
March 31 |
|||
PER SHARE |
|||||
Basic earnings |
$ 0.42 |
$ 0.70 |
$ 0.63 |
||
Diluted earnings |
$ 0.42 |
$ 0.70 |
$ 0.62 |
||
Dividends |
$ 0.28 |
$ 0.28 |
$ 0.27 |
||
Tangible book value (1) |
$ 20.35 |
$ 19.24 |
$ 19.56 |
||
Quoted market value |
|||||
High |
$ 21.74 |
$ 25.10 |
$ 26.00 |
||
Low |
$ 18.25 |
$ 22.08 |
$ 24.50 |
||
Market price (1) |
$ 19.40 |
$ 24.80 |
$ 25.85 |
||
Common shares outstanding (1) |
7,488,101 |
7,540,015 |
7,542,758 |
||
Average number of common shares outstanding |
7,493,334 |
7,556,585 |
7,533,711 |
||
Average number of diluted common shares outstanding |
7,507,739 |
7,634,417 |
7,639,688 |
||
PERFORMANCE RATIOS |
|||||
Return on average total assets |
0.61 % |
1.04 % |
0.92 % |
||
Return on average shareholders' equity |
6.16 % |
11.35 % |
9.02 % |
||
Return on average tangible shareholders' equity |
8.07 % |
15.28 % |
11.72 % |
||
Net interest margin yield (FTE) |
2.78 % |
3.22 % |
2.86 % |
||
ASSETS UNDER MANAGEMENT (1) |
|||||
Loans sold with servicing retained |
$ 244,829 |
$ 259,512 |
$ 275,556 |
||
Assets managed by Isabella Wealth |
$ 660,645 |
$ 571,453 |
$ 501,829 |
||
Total assets under management |
$ 2,963,050 |
$ 2,915,589 |
$ 2,838,318 |
||
ASSET QUALITY (1) |
|||||
Nonaccrual loans |
$ 1,283 |
$ 488 |
$ 747 |
||
Foreclosed assets |
$ 579 |
$ 414 |
$ 187 |
||
Net loan charge-offs (recoveries) |
$ 46 |
$ (9) |
$ (64) |
||
Nonperforming loans to gross loans |
0.09 % |
0.04 % |
0.06 % |
||
Nonperforming assets to total assets |
0.09 % |
0.05 % |
0.05 % |
||
Allowance for credit losses to gross loans |
0.98 % |
0.99 % |
0.76 % |
||
CAPITAL RATIOS (1) |
|||||
Shareholders' equity to assets |
9.75 % |
9.27 % |
9.50 % |
||
Tier 1 leverage |
8.80 % |
8.58 % |
8.12 % |
||
Common equity tier 1 capital |
12.36 % |
12.71 % |
12.83 % |
||
Tier 1 risk-based capital |
12.36 % |
12.71 % |
12.83 % |
||
Total risk-based capital |
15.31 % |
15.77 % |
15.84 % |
||
(1) |
At end of period |
SUPPLEMENTAL BALANCE SHEET DATA (UNAUDITED) |
|||||||||
(Dollars in thousands) |
|||||||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|||||
Commercial and industrial |
$ 226,281 |
$ 209,738 |
$ 195,814 |
$ 194,914 |
$ 189,185 |
||||
Commercial real estate |
561,123 |
564,244 |
566,639 |
564,254 |
566,410 |
||||
Advances to mortgage brokers |
29,688 |
18,541 |
24,807 |
39,099 |
— |
||||
Agricultural |
93,695 |
99,994 |
99,233 |
96,689 |
94,760 |
||||
Residential real estate |
356,658 |
356,418 |
348,196 |
343,474 |
336,186 |
||||
Consumer |
98,063 |
100,528 |
99,985 |
95,972 |
84,110 |
||||
Gross loans |
$ 1,365,508 |
$ 1,349,463 |
$ 1,334,674 |
$ 1,334,402 |
$ 1,270,651 |
||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|||||
Noninterest bearing demand deposits |
$ 413,272 |
$ 428,505 |
$ 445,043 |
$ 458,845 |
$ 478,829 |
||||
Interest bearing demand deposits |
349,401 |
320,737 |
363,558 |
335,922 |
383,602 |
||||
Savings deposits |
639,491 |
628,079 |
628,795 |
606,644 |
662,495 |
||||
Certificates of deposit |
366,143 |
346,374 |
332,078 |
313,537 |
288,602 |
||||
Internet certificates of deposit |
— |
— |
— |
— |
— |
||||
Total deposits |
$ 1,768,307 |
$ 1,723,695 |
$ 1,769,474 |
$ 1,714,948 |
$ 1,813,528 |
||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|||||
U.S. Treasury |
$ 214,226 |
$ 214,801 |
$ 209,182 |
$ 209,353 |
$ 212,086 |
||||
States and political subdivisions |
90,470 |
92,876 |
89,773 |
95,242 |
108,719 |
||||
Auction rate money market preferred |
3,013 |
2,931 |
2,570 |
2,637 |
2,716 |
||||
Mortgage-backed securities |
31,044 |
32,815 |
32,923 |
35,532 |
37,797 |
||||
Collateralized mortgage obligations |
171,831 |
177,775 |
175,630 |
180,996 |
200,252 |
||||
Corporate |
7,001 |
6,950 |
6,819 |
6,737 |
7,080 |
||||
Available-for-sale securities, at |
$ 517,585 |
$ 528,148 |
$ 516,897 |
$ 530,497 |
$ 568,650 |
||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|||||
Securities sold under agreements to |
$ 42,998 |
$ 46,801 |
$ 52,330 |
$ 37,102 |
$ 31,995 |
||||
Federal Home Loan Bank advances |
— |
40,000 |
65,000 |
55,000 |
— |
||||
Subordinated debt, net of unamortized |
29,357 |
29,335 |
29,312 |
29,290 |
29,267 |
||||
Total borrowed funds |
$ 72,355 |
$ 116,136 |
$ 146,642 |
$ 121,392 |
$ 61,262 |
||||
SUPPLEMENTAL STATEMENTS OF INCOME DATA (UNAUDITED) |
|||
(Dollars in thousands) |
|||
Three Months Ended March 31 |
|||
2024 |
2023 |
||
Service charges and fees |
|||
ATM and debit card fees |
$ 1,215 |
$ 1,160 |
|
Service charges and fees on deposit accounts |
614 |
611 |
|
Freddie Mac servicing fee |
150 |
159 |
|
Net mortgage servicing rights income (loss) |
(37) |
(36) |
|
Other fees for customer services |
104 |
84 |
|
Total service charges and fees |
2,046 |
1,978 |
|
Wealth management fees |
939 |
786 |
|
Earnings on corporate owned life insurance policies |
243 |
226 |
|
Net gain on sale of mortgage loans |
34 |
67 |
|
Other |
206 |
236 |
|
Total noninterest income |
$ 3,468 |
$ 3,293 |
|
Three Months Ended March 31 |
|||
2024 |
2023 |
||
Compensation and benefits |
$ 7,015 |
$ 6,589 |
|
Furniture and equipment |
1,675 |
1,597 |
|
Occupancy |
1,031 |
1,005 |
|
Other |
|||
Audit, consulting, and legal fees |
513 |
535 |
|
ATM and debit card fees |
469 |
400 |
|
FDIC insurance premiums |
252 |
228 |
|
Marketing costs |
244 |
245 |
|
Memberships and subscriptions |
228 |
240 |
|
Loan underwriting fees |
183 |
215 |
|
Donations and community relations |
182 |
184 |
|
Director fees |
176 |
204 |
|
All other |
708 |
756 |
|
Total other noninterest expenses |
2,955 |
3,007 |
|
Total noninterest expenses |
$ 12,676 |
$ 12,198 |
|
SOURCE Isabella Bank Corporation
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