Isabella Bank Corp(ISBA) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $5.2 million, or $0.71 per diluted share, compared to $3.3 million, or $0.44 per diluted share in Q3 2024[15]. - Basic earnings per share for Q3 2025 increased to $0.71, up 4.41% from $0.68 in Q2 2025 and 61.36% from $0.44 in Q3 2024[32]. - Diluted earnings per share for Q3 2025 also rose to $0.71, reflecting the same growth trends as basic earnings[32]. - Net income for the quarter was $5,240 million, compared to $5,031 million in the previous quarter, reflecting an increase of 4.2%[36]. - Earnings per common share increased to $0.71, up from $0.68 in the previous quarter, representing a growth of 4.4%[36]. Assets and Liabilities - Total assets increased to $2.3 billion, up $173.4 million from December 31, 2024, driven by a $127.5 million rise in interest-bearing cash balances[6]. - Total liabilities increased to $2,032,234 million, up from $1,935,668 million in the previous quarter, a rise of 5.0%[34]. - Total assets increased to $2,259,654 million as of September 30, 2025, up from $2,156,168 million in the previous quarter, representing a growth of 4.8%[34]. - Total assets increased to $2,206,722 thousand as of September 30, 2025, from $2,095,200 thousand a year earlier[38]. Loans and Deposits - Total loans reached $1.4 billion, increasing by $34.4 million during Q3 2025, with core loans growing by $32 million, or 2%[9]. - Total deposits grew to $1.93 billion, up $76.2 million in Q3 2025 and $178.5 million since December 31, 2024[13]. - Total deposits rose to $1,925,602 million, an increase from $1,849,376 million in the previous quarter, reflecting a growth of 4.1%[34]. - Core loans reached $1,426,849 thousand as of September 30, 2025, up from $1,348,096 thousand a year earlier[41]. Income and Margins - Net interest income for Q3 2025 was $16.2 million, representing an 11.6% increase compared to Q3 2024[9]. - Noninterest income for Q3 2025 was $4.3 million, an increase from $3.5 million in Q3 2024, driven by profitability initiatives[20]. - Total interest income for the quarter was $24,882 million, compared to $23,242 million in the previous quarter, marking an increase of 7.1%[36]. - Net interest income after provision for credit losses was $15,953 million, slightly down from $16,228 million in the previous quarter, a decrease of 1.7%[36]. - The net yield on interest earning assets (FTE) improved to 3.15% for the three months ended September 30, 2025, from 2.96% a year ago[40]. Equity and Capital - Total equity increased to $227.4 million, or $30.94 per share, compared to $210.3 million, or $28.32 per share at year-end 2024[14]. - Shareholders' equity rose to $223,970 thousand as of September 30, 2025, compared to $208,444 thousand in the same period last year[38]. - The tangible book value per share increased to $24.37 in Q3 2025, up from $23.39 in Q2 2025, indicating growth in shareholder equity[32]. - Tangible book value per share increased to $24.37 as of September 30, 2025, compared to $22.14 a year ago[41]. Credit Quality - The allowance for credit losses (ACL) reached $13.1 million, reflecting a $172 thousand increase during Q3 2025[11]. - Nonaccrual loans increased to $3,443 thousand in Q3 2025 from $1,164 thousand in Q2 2025, highlighting a significant rise in asset quality concerns[32]. - The provision for credit losses was $209 million, compared to a reversal of $1,099 million in the previous quarter, indicating a shift in credit quality assessment[36]. Operational Efficiency - The efficiency ratio improved to 67.51% in Q3 2025, compared to 70.53% in Q2 2025, indicating better operational efficiency[32]. - The return on average total assets for Q3 2025 was 0.94%, slightly down from 0.96% in Q2 2025 but up from 0.62% in Q3 2024[32]. Non-GAAP Measures - Non-GAAP financial measures are utilized to provide a more comprehensive understanding of the company's financial performance, supplementing GAAP measures[28]. - The company acknowledges that not all companies use the same calculations for non-GAAP measures, which may affect comparability[29]. - A reconciliation of non-GAAP financial measures to GAAP measures is provided, ensuring transparency in financial reporting[30].