$ISBA

ISABELLA BANK CORP

CIK:0000842517|SEC Filings

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income
Loans, including fees	$ 22,607	$ 19,832	$ 44,071	$ 39,180
AFS securities
Taxable	2,902	2,513	5,391	4,616
Nontaxable	470	519	969	1,059
FHLB stock	64	125	139	285
Federal funds sold and other	173	253	775	735
Total interest income	26,216	23,242	51,345	45,875
Interest expense
Deposits	6,778	7,391	13,890	14,854
Short-term borrowings	1,007	324	1,743	665
FHLB advances	43	132	176	170
Subordinated debt	304	266	570	532
Total interest expense	8,132	8,113	16,379	16,221
Net interest income	18,084	15,129	34,966	29,654
Provision for (reversal of) credit losses	895	(1,099)	1,499	(1,206)
Net interest income after provision for credit losses	17,189	16,228	33,467	30,860
Noninterest income
Service charges and fees	2,440	1,936	4,717	3,810
Wealth management fees	1,216	1,084	2,324	2,063
Increase in the cash surrender value of BOLI	434	300	882	672
Net gain on sale of mortgage loans	15	47	48	77
Other	270	319	765	592
Total noninterest income	4,375	3,686	8,736	7,214
Noninterest expenses
Compensation and benefits	8,147	7,496	16,075	14,879
Occupancy and equipment	2,890	2,650	5,730	5,250
Other professional services	807	863	1,822	1,574
ATM and debit card fees	629	555	1,187	1,041
Marketing	514	469	1,020	928
FDIC insurance premiums	288	267	594	570
Merger-related expenses	505	0	505	0
Other	1,606	1,445	3,115	2,802
Total noninterest expenses	15,386	13,745	30,048	27,044
Income before income tax expense	6,178	6,169	12,155	11,030
Income tax expense	1,137	1,138	2,122	2,050
Net income	$ 5,041	$ 5,031	$ 10,033	$ 8,980
Earnings per common share
Basic (in dollars per share)	$ 0.69	$ 0.68	$ 1.37	$ 1.21
Diluted (in dollars per share)	0.69	0.68	1.37	1.21
Cash dividends per common share (in dollars per share)	$ 0.28	$ 0.28	$ 0.56	$ 0.56

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net income	$ 10,033	$ 8,980
Reconciliation of net income to net cash provided by operating activities
Provision for (reversal of) credit losses	1,499	(1,206)
Depreciation	1,141	1,072
Net amortization of AFS securities	181	543
Net gain on sale of mortgage loans	(48)	(77)
Increase in the cash surrender value of BOLI, net of expenses	(874)	(667)
Gains from redemption of BOLI policies	(137)	0
Share-based payment awards	219	222
Origination of loans HFS	(2,028)	(3,018)
Proceeds from loan sales	2,089	3,282
Net changes in:
Other assets	(212)	1,781
Other liabilities	(381)	1,513
Net cash provided by operating activities	11,482	12,425
Investing activities
Proceeds from maturities, calls and prepayments of AFS securities	121,763	47,819
Purchases of AFS securities	(64,366)	(51,000)
Net change in loans HFI	(54,153)	27,053
Purchases of premises and equipment	(945)	(1,584)
Purchases of BOLI policies	0	(10,225)
Proceeds from redemption of BOLI policies	541	0
Proceeds from sale of FHLB stock	0	7,162
Proceeds from sales of foreclosed assets	396	118
Low income housing tax credit investments	(40)	(3,767)
Net cash provided by investing activities	3,196	15,576
Financing activities
Net increase (decrease) in deposits	(9,741)	102,316
Net increase (decrease) in short-term borrowings	48,012	(10,359)
Net (decrease) in FHLB advances	(45,000)	(30,000)
Cash dividends paid on common stock	(4,038)	(4,055)
Proceeds from issuance of common stock	12,448	759
Common stock repurchased	(626)	(2,650)
Net cash provided by financing activities	1,055	56,011
Increase (decrease) in cash and cash equivalents	15,733	84,012
Cash and cash equivalents at beginning of period	26,041	24,542
Cash and cash equivalents at end of period	41,774	108,554
Supplemental cash flows information
Interest paid	16,595	16,335
Federal income taxes paid	3,810	400
Supplemental noncash information
Transfers of loans to foreclosed assets	98	293
Transfers of foreclosed assets to premises and equipment	$ 90	$ 0

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Total cash and cash equivalents	$ 41,774	$ 26,041
Marketable securities AFS (amortized cost of $450,111 and $507,689, respectively)	439,289	497,791
Mortgage loans HFS	410	423
Loans
Loans held for investment	1,589,672	1,536,364
Allowance for credit losses	(14,479)	(13,727)
Loans, net	1,575,193	1,522,637
FHLB stock, at cost	5,600	5,600
Premises and equipment	28,894	29,000
Cash surrender value of BOLI	46,603	46,133
Goodwill and other intangible assets	48,282	48,282
Other assets	33,596	33,541
Total assets	2,219,641	2,209,448
Liabilities
Noninterest bearing demand deposits	414,018	426,342
Interest bearing demand deposits	252,149	266,187
Money market deposits	453,478	436,631
Savings	300,867	280,429
Certificates of deposit	389,401	410,065
Total deposits	1,809,913	1,819,654
Short-term borrowings	116,012	68,000
FHLB advances	0	45,000
Subordinated debt, net of unamortized issuance costs	29,559	29,514
Other liabilities	15,453	15,884
Total liabilities	1,970,937	1,978,052
Shareholders’ equity
Common stock — no par value, 15,000,000 shares authorized: issued and outstanding 7,628,809 shares at June 30, 2026 and 7,322,207 shares at December 31, 2025	135,079	123,204
Shares to be issued for deferred compensation obligations	2,532	2,366
Retained earnings	119,844	113,849
Accumulated other comprehensive loss	(8,751)	(8,023)
Total shareholders’ equity	248,704	231,396
Total liabilities and shareholders’ equity	$ 2,219,641	$ 2,209,448