Isabella Bank Corporation reported a net income of $3.949 million, or $0.53 per diluted share, for the first quarter of 2025, marking a 26.2% increase from the $3.131 million, or $0.42 per diluted share, recorded in the same period of 2024. The bank's net interest income rose to $14.525 million, up from $13.242 million year-over-year, driven by an increase in loan yields, which expanded to 5.71% from 5.38%. The bank's net interest margin (NIM) also improved to 3.06% from 2.79%, reflecting a favorable shift in the interest rate environment and a recovery of contractual interest from nonaccruing loans.
Total assets increased to $2.103 billion as of March 31, 2025, up from $2.086 billion at the end of 2024. This growth was primarily attributed to a $38.681 million increase in interest-bearing cash and a $24.011 million rise in available-for-sale (AFS) securities, which totaled $513.040 million. However, gross loans decreased to $1.368 billion from $1.424 billion, largely due to a significant reduction in advances to mortgage brokers. Core loans, excluding these advances, grew by $4.218 million, with notable increases in commercial real estate and commercial and industrial loan portfolios.
The bank's allowance for credit losses (ACL) decreased to $12.735 million from $12.895 million, reflecting improved historical loss experience and recoveries from previously charged-off loans. Nonaccrual loans also declined to $173, down from $282 at the end of 2024. The bank reported a credit of $107 in the provision for credit losses for the quarter, contrasting with a provision of $392 in the same quarter of the previous year. The overall credit quality of the loan portfolio remains strong, with no significant negative trends observed.
In terms of operational developments, Isabella Bank's total deposits increased by $50.849 million to $1.798 billion, driven by growth in interest-bearing demand, money market, and savings deposits. The bank's equity also rose to $215.556 million, compared to $210.276 million at the end of 2024, with a tangible book value per share of $22.58. Looking ahead, the bank anticipates continued growth in core loan portfolios and a stable interest rate environment, which should support further improvements in profitability and asset quality.
About ISABELLA BANK Corp
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