Isabella Bank Corporation Announces Strong Second Quarter 2021 Earnings

Successful $30 million subordinated debt offering complete

News provided by

Isabella Bank Corporation

Jul 23, 2021, 11:12 ET

MT. PLEASANT, Mich., July 23, 2021 /PRNewswire/ -- Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) released its earnings results for the second quarter of 2021. The Corporation reported net income of $4.6 million for the second quarter and $10 million for the first six months of 2021, both increased compared to the same periods a year ago.  Earnings per common share were $0.58 in the second quarter and $1.26 for the first half of the year, up from the same periods of 2020 at $0.53 and $0.91, respectively.

Highlights include:

  • Completed a $30 million private placement of subordinated notes with an initial interest rate of 3.25%.
  • Net interest income — $12.7 million in the second quarter of 2021. Interest expense initiatives reduced costs by 45.9%, or $1.6 million, compared to the same period in 2020.
  • Noninterest expense controls continue to benefit the Corporation.
  • Loan payment deferrals, to provide short-term relief to customers, continued to decline as customers resumed contractual payments. As of June 30, 2021, loan deferrals totaled just 0.3% of gross loans.

"We delivered another strong financial quarter following our record performance from the previous quarter," said Jae A. Evans, President and Chief Executive Officer of the Corporation. "Here at Isabella Bank, we continue to be a resource to our customers in a recovering economy. We facilitated over 950 PPP loans for a total of $99.5 million in 2020, and funded another 845 PPP loans for a total of $54.6 million this year. We also assisted customers by removing selected deposit account related charges and fees in day-to-day banking and temporarily waiving others."

On June 2, 2021, the Corporation completed a private placement of $30 million in fixed-to-floating rate notes due in 2031. The subordinated notes will initially bear a fixed interest rate of 3.25% until June 15, 2026, after which time until maturity, the notes convert to a floating rate instrument. The notes, issued to institutional investors, are structured to qualify as Tier 2 capital under regulatory guidelines. The Corporation expects to use proceeds from issuance of the notes for general corporate purposes, including potential repurchases of common stock and merger and acquisition activity.

"We are strengthening our ability to increase our presence while we continue to manage operating costs," Evans said. "We also remain committed to increasing earnings and shareholder value through growth in our loan portfolio and Isabella Wealth."

Operating Results

Net income: Net income for the second quarter 2021 was $4.6 million, compared to $4.2 million in the second quarter of 2020. For the first six months of 2021, net income was $10 million, compared to $7.3 million in the same period of 2020.

Net interest income: Net interest income for the first six months of 2021 increased by $1.6 million compared to the same period in 2020. Fees related to the U.S. Small Business Administration's Paycheck Protection Program ("PPP") have contributed significantly to interest income in 2021; however, fewer total loans and an interest rate decline led to a $2.1 million decrease in interest income when comparing the first two quarters of 2021 to 2020. Conversely, the reduction in interest rates, as well as reduced reliance on higher-cost borrowings, led to a $3.7 million decrease in interest expense on deposits and borrowings.

Noninterest income and expenses: Net gains on sold mortgage loans along with service charges and fees accounted for much of a $603,000 increase in noninterest income for the first six months of 2021 when compared to the same period in 2020. Noninterest expenses declined $333,000 for the first six months of 2021 compared to 2020, reflecting management's continued focus on reducing operating expenses.

Net yield on interest earning assets: The Corporation's fully taxable equivalent net yield on interest earning assets was 2.88% for the first six months of 2021 compared to 2.95% in the first six months of 2020. The Corporation's banking subsidiary, Isabella Bank (the "Bank"), implemented strategic programs focused on improving the net yield on interest-earning assets, such as  enhanced pricing related to loans and reduced reliance on higher-cost borrowed funds and brokered deposits. These efforts have helped, although the current interest rate environment has had a negative impact on the yield of interest-earning assets. Future improvement is expected at a gradual pace.

Balance Sheet

Assets: Total assets and assets under management were $2 billion and $2.8 billion as of June 30, 2021, respectively. Assets under management include loans sold and serviced of $290 million and investment and trust assets managed by Isabella Wealth of $493 million, in addition to assets on our consolidated balance sheet. Assets under management are up $243 million, or 9.4%, compared to June 30, 2020. Market improvement and growth in new client assets managed by Isabella Wealth, as well as growth in deposits, account for this increase.

Loans: Loans outstanding as of June 30, 2021, totaled $1.2 billion. Approximately $62 million of PPP loans are included in the commercial loan balance. During the first six months of 2021, gross loans declined $31.6 million, largely driven by a decrease in advances to mortgage brokers, which also is included in the commercial loan portfolio.  Credit quality indicators remained strong and economic factors continued to improve in the second quarter.

Deposits: Total deposits were $1.64 billion as of June 30, 2021, an increase of $70.2 million since December 31, 2020. Since June 2020, total deposits have increased 13.6%. The increase of deposits is the result of funds from PPP loans, customers receiving stimulus checks, and attracting new customers.

Liquidity

The Corporation's liquidity position remains strong as evidenced by its $797 million of cash and available funds as of June 30, 2021. This total is comprised of $248.2 million in cash and cash equivalents, $248.8 million in available lines of credit and approximately $300 million in unencumbered investment securities.

Capital

The Bank is designated as a "well capitalized" institution, as its capital ratios exceeded the minimum requirements for this designation. As of June 30, 2021, the Bank's Tier 1 Leverage Ratio was 8.3%, Tier 1 Capital Ratio was 13.5% and Total Capital Ratio was 14.2%. From a consolidated perspective, the Corporation's Tier 1 Leverage Ratio was 8.5%, Tier 1 Capital Ratio was 13.8% and Total Capital Ratio was 17.0% as of June 30, 2021. 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 second quarter of 2021, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation's closing stock price of $23.00 as of June 30, 2021, the annualized cash dividend yield was 4.70%.

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 118 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 actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "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.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)



June 30
2021


December 31
2020

ASSETS




Cash and cash equivalents




Cash and demand deposits due from banks

$

29,549



$

31,296


Interest bearing balances due from banks

218,640



215,344


Total cash and cash equivalents

248,189



246,640


Available-for-sale securities, at fair value

448,454



339,228


Mortgage loans available-for-sale

1,189



2,741


Loans




Commercial

723,888



756,686


Agricultural

95,197



100,461


Residential real estate

312,567



307,543


Consumer

75,011



73,621


Gross loans

1,206,663



1,238,311


Less allowance for loan and lease losses

9,360



9,744


Net loans

1,197,303



1,228,567


Premises and equipment

24,463



25,140


Corporate owned life insurance policies

28,238



28,292


Equity securities without readily determinable fair values

17,383



17,383


Goodwill and other intangible assets

48,317



48,331


Accrued interest receivable and other assets

17,871



21,056


TOTAL ASSETS

$

2,031,407



$

1,957,378


LIABILITIES AND SHAREHOLDERS' EQUITY




Deposits




Noninterest bearing

$

428,410



$

375,395


Interest bearing demand deposits

326,971



302,444


Certificates of deposit under $250 and other savings

796,173



781,286


Certificates of deposit over $250

84,952



107,192


Total deposits

1,636,506



1,566,317


Borrowed funds




Federal funds purchased and repurchase agreements

62,274



68,747


Federal Home Loan Bank advances

70,000



90,000


Subordinated debt, net of unamortized issuance costs

29,121



—


Total borrowed funds

161,395



158,747


Accrued interest payable and other liabilities

12,516



13,726


Total liabilities

1,810,417



1,738,790


Shareholders' equity




Common stock — no par value 15,000,000 shares authorized; issued and outstanding
7,946,658 shares (including 82,474 shares held in the Rabbi Trust) in 2021 and 7,997,247
shares (including 59,162 shares held in the Rabbi Trust) in 2020

140,694



142,247


Shares to be issued for deferred compensation obligations

4,368



4,183


Retained earnings

70,204



64,460


Accumulated other comprehensive income

5,724



7,698


Total shareholders' equity

220,990



218,588


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

2,031,407



$

1,957,378


INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share amounts)



Three Months Ended 

 June 30


Six Months Ended 

 June 30


2021


2020


2021


2020

Interest income








Loans, including fees

$

12,504



$

13,297



$

25,601



$

26,551


Available-for-sale securities








Taxable

1,140



1,352



2,305



2,841


Nontaxable

803



986



1,668



2,039


Federal funds sold and other

193



234



356



639


Total interest income

14,640



15,869



29,930



32,070


Interest expense








Deposits

1,444



2,247



3,112



5,038


Borrowings








Federal funds purchased and repurchase
agreements

11



7



27



15


Federal Home Loan Bank advances

389



1,311



794



2,711


Subordinated debt, net of unamortized issuance costs

83



—



83



—


Total interest expense

1,927



3,565



4,016



7,764


Net interest income

12,713



12,304



25,914



24,306


Provision for loan losses

31



105



(492)



893


Net interest income after provision for
loan losses

12,682



12,199



26,406



23,413


Noninterest income








Service charges and fees

1,830



1,386



3,525



2,739


Wealth management fees

806



656



1,502



1,228


Net gain on sale of mortgage loans

375



466



1,120



617


Earnings on corporate owned life insurance policies

190



189



376



371


Gains from redemption of corporate owned life insurance policies

4



349



150



873


Other

110



200



174



416


Total noninterest income

3,315



3,246



6,847



6,244


Noninterest expenses








Compensation and benefits

5,700



5,793



11,577



11,662


Furniture and equipment

1,327



1,431



2,700



2,892


Occupancy

915



912



1,860



1,779


Other

2,553



2,564



5,175



5,312


Total noninterest expenses

10,495



10,700



21,312



21,645


Income before federal income tax
expense

5,502



4,745



11,941



8,012


Federal income tax expense

881



558



1,922



761


NET INCOME

$

4,621



$

4,187



$

10,019



$

7,251


Earnings per common share








Basic

$

0.58



$

0.53



$

1.26



$

0.91


Diluted

$

0.57



$

0.52



$

1.24



$

0.90


Cash dividends per common share

$

0.27



$

0.27



$

0.54



$

0.54


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


June 30, 2021


June 30, 2020


Average
Balance


Tax
Equivalent
Interest


Average
Yield /
Rate


Average
Balance


Tax
Equivalent
Interest


Average
Yield /
Rate

INTEREST EARNING ASSETS












Loans

$

1,200,998



$

12,504



4.16

%


$

1,241,856



$

13,297



4.28

%

Taxable investment securities

281,245



1,140



1.62

%


237,769



1,352



2.27

%

Nontaxable investment securities

122,514



1,117



3.65

%


141,229



1,333



3.78

%

Fed funds sold

3



—



0.01

%


12



—



0.04

%

Other

265,227



193



0.29

%


111,702



234



0.84

%

   Total earning assets

1,869,987



14,954



3.20

%


1,732,568



16,216



3.74

%

NONEARNING ASSETS












Allowance for loan losses

(9,326)







(8,769)






Cash and demand deposits due from banks

28,629







20,389






Premises and equipment

24,826







25,854






Accrued income and other assets

106,780







120,444






   Total assets

$

2,020,896







$

1,890,486






INTEREST BEARING LIABILITIES












Interest bearing demand deposits

$

330,586



$

45



0.05

%


$

249,735



$

86



0.14

%

Savings deposits

550,145



149



0.11

%


447,416



257



0.23

%

Time deposits

347,155



1,250



1.44

%


387,636



1,904



1.96

%

Federal funds purchased and repurchase agreements

52,239



11



0.08

%


31,036



7



0.09

%

Federal Home Loan Bank advances

84,725



389



1.84

%


222,802



1,311



2.35

%

Subordinated debt, net of unamortized issuance costs

9,551



83



3.48

%


—



—



—

%

   Total interest bearing liabilities

1,374,401



1,927



0.56

%


1,338,625



3,565



1.07

%

NONINTEREST BEARING LIABILITIES












Demand deposits

412,600







317,035






Other

12,478







15,355






Shareholders' equity

221,417







219,471






   Total liabilities and shareholders' equity

$

2,020,896







$

1,890,486






Net interest income (FTE)



$

13,027







$

12,651




Net yield on interest earning assets (FTE)





2.79

%






2.92

%



Six Months Ended


June 30, 2021


June 30, 2020


Average
Balance


Tax
Equivalent
Interest


Average
Yield /
Rate


Average
Balance


Tax
Equivalent
Interest


Average
Yield /
Rate

INTEREST EARNING ASSETS












Loans

$

1,201,344



$

25,601



4.26

%


$

1,204,961



$

26,551



4.41

%

Taxable investment securities

236,099



2,305



1.95

%


244,783



2,841



2.32

%

Nontaxable investment securities

127,157



2,311



3.63

%


146,799



2,751



3.75

%

Fed funds sold

3



—



0.01

%


6



—



0.07

%

Other

280,083



356



0.25

%


101,000



639



1.27

%

   Total earning assets

1,844,686



30,573



3.31

%


1,697,549



32,782



3.86

%

NONEARNING ASSETS












Allowance for loan losses

(9,574)







(8,368)






Cash and demand deposits due from banks

28,787







20,972






Premises and equipment

24,987







26,052






Accrued income and other assets

109,898







115,615






   Total assets

$

1,998,784







$

1,851,820






INTEREST BEARING LIABILITIES












Interest bearing demand deposits

$

322,931



$

122



0.08

%


$

242,448



$

169



0.14

%

Savings deposits

540,776



298



0.11

%


437,025



891



0.41

%

Time deposits

357,466



2,692



1.51

%


396,178



3,978



2.01

%

Federal funds purchased and repurchase agreements

53,187



27



0.10

%


30,980



15



0.10

%

Federal Home Loan Bank advances

87,348



794



1.82

%


231,264



2,711



2.34

%

Subordinated debt, net of unamortized issuance costs

4,665



83



3.56

%


—



—



—

%

   Total interest bearing liabilities

1,366,373



4,016



0.59

%


1,337,895



7,764



1.16

%

NONINTEREST BEARING LIABILITIES












Demand deposits

397,959







281,638






Other

13,311







14,747






Shareholders' equity

221,141







217,540






   Total liabilities and shareholders' equity

$

1,998,784







$

1,851,820






Net interest income (FTE)



$

26,557







$

25,018




Net yield on interest earning assets (FTE)





2.88

%






2.95

%

SELECTED FINANCIAL DATA (UNAUDITED)

(Dollars in thousands except per share amounts)



Three Months Ended


June 30
2021


March 31
2021


December 31
2020


September 30
2020


June 30
2020

PER SHARE










Basic earnings (loss)

$

0.58



$

0.68



$

(0.10)



$

0.55



$

0.53


Diluted earnings (loss)

$

0.57



$

0.67



$

(0.10)



$

0.54



$

0.52


Dividends

$

0.27



$

0.27



$

0.27



$

0.27



$

0.27


Tangible book value

$

21.73



$

21.35



$

21.29



$

21.75



$

21.52


Quoted market value










   High

$

23.90



$

22.50



$

21.95



$

19.00



$

19.50


   Low

$

21.00



$

19.45



$

15.73



$

15.75



$

15.60


   Close (1)

$

23.00



$

21.75



$

19.57



$

16.74



$

18.25


Common shares outstanding (1)

7,946,658



7,958,883



7,997,247



8,007,901



7,977,019


Average number of common shares outstanding

7,944,455



7,969,462



8,006,144



7,966,811



7,924,318


Average number of diluted common shares outstanding

8,063,164



8,088,524



8,133,157



8,111,283



8,068,748


PERFORMANCE RATIOS










Return on average total assets

0.91

%


1.09

%


(0.15)

%


0.90

%


0.89

%

Return on average shareholders' equity

8.35

%


9.78

%


(1.30)

%


7.78

%


7.63

%

Return on average tangible shareholders' equity

10.69

%


12.53

%


(1.63)

%


9.93

%


9.81

%

Net interest margin yield (FTE)

2.79

%


2.98

%


3.04

%


2.89

%


2.92

%

ASSETS UNDER MANAGEMENT (1)










Loans sold with servicing retained

$

290,033



$

298,514



$

301,377



$

289,524



$

263,332


Assets managed by Isabella Wealth

$

493,287



$

454,459



$

443,967



$

403,730



$

395,214


Total assets under management

$

2,814,727



$

2,768,405



$

2,702,722



$

2,664,951



$

2,571,773


ASSET QUALITY (1)










Nonaccrual status loans

$

3,329



$

4,532



$

5,313



$

4,946



$

5,319


Performing troubled debt restructurings

$

26,785



$

28,947



$

22,200



$

23,257



$

20,536


Foreclosed assets

$

365



$

384



$

527



$

651



$

776


Net loan charge-offs (recoveries)

$

(58)



$

(50)



$

18



$

(113)



$

(75)


Nonperforming loans to gross loans

0.28

%


0.38

%


0.43

%


0.38

%


0.42

%

Nonperforming assets to total assets

0.19

%


0.26

%


0.31

%


0.30

%


0.33

%

Allowance for loan and lease losses to gross loans

0.78

%


0.78

%


0.79

%


0.73

%


0.69

%

CAPITAL RATIOS (1)










Shareholders' equity to assets

10.88

%


10.83

%


11.17

%


11.29

%


11.50

%

Tier 1 leverage

8.46

%


8.56

%


8.37

%


8.76

%


8.86

%

Common equity tier 1 capital

13.81

%


13.77

%


12.97

%


12.90

%


12.90

%

Tier 1 risk-based capital

13.81

%


13.77

%


12.97

%


12.90

%


12.90

%

Total risk-based capital

17.00

%


14.54

%


13.75

%


13.64

%


13.60

%

(1) At end of period


Six Months Ended


June 30
2021


June 30
2020


June 30
2019

PER SHARE






Basic earnings

$

1.26



$

0.91



$

0.97


Diluted earnings

$

1.24



$

0.90



$

0.95


Dividends

$

0.54



$

0.54



$

0.52


Tangible book value

$

21.73



$

21.52



$

20.17


Quoted market value






   High

$

23.90



$

24.50



$

24.50


   Low

$

19.45



$

15.60



$

22.25


   Close (1)

$

23.00



$

18.25



$

23.25


Common shares outstanding (1)

7,946,658



7,977,019



7,918,494


Average number of common shares outstanding

7,956,889



7,927,298



7,895,610


Average number of diluted common shares outstanding

8,075,763



8,081,475



8,084,965


PERFORMANCE RATIOS






Return on average total assets

1.00

%


0.78

%


0.85

%

Return on average shareholders' equity

9.06

%


6.67

%


7.58

%

Return on average tangible shareholders' equity

11.61

%


4.30

%


9.73

%

Net interest margin yield (FTE)

2.88

%


2.95

%


3.04

%

ASSETS UNDER MANAGEMENT (1)






Loans sold with servicing retained

$

290,033



$

263,332



$

257,062


Assets managed by Isabella Wealth

$

493,287



$

395,214



$

487,180


Total assets under management

$

2,814,727



$

2,571,773



$

2,568,834


ASSET QUALITY (1)






Nonaccrual status loans

$

3,329



$

5,319



$

8,107


Performing troubled debt restructurings

$

26,785



$

20,536



$

20,310


Foreclosed assets

$

365



$

776



$

513


Net loan charge-offs (recoveries)

$

(108)



$

(45)



$

193


Nonperforming loans to gross loans

0.28

%


0.42

%


0.70

%

Nonperforming assets to total assets

0.19

%


0.33

%


0.49

%

Allowance for loan and lease losses to gross loans

0.78

%


0.69

%


0.68

%

CAPITAL RATIOS (1)






Shareholders' equity to assets

10.88

%


11.50

%


11.41

%

Tier 1 leverage

8.46

%


8.86

%


9.03

%

Common equity tier 1 capital

13.81

%


12.90

%


12.43

%

Tier 1 risk-based capital

13.81

%


12.90

%


12.43

%

Total risk-based capital

17.00

%


13.60

%


13.06

%

(1) At end of period

SUPPLEMENTAL BALANCE SHEET DATA (UNAUDITED)

(Dollars in thousands)



June 30
2021


March 31
2021


December 31
2020


September 30
2020


June 30
2020

Commercial

$

723,888



$

725,540



$

756,686



$

821,102



$

799,632


Agricultural

95,197



91,629



100,461



102,263



103,162


Residential real estate

312,567



305,909



307,543



304,559



307,926


Consumer

75,011



72,840



73,621



75,384



73,665


Gross loans

$

1,206,663



$

1,195,918



$

1,238,311



$

1,303,308



$

1,284,385




June 30
2021


March 31
2021


December 31
2020


September 30
2020


June 30
2020

Noninterest bearing demand deposits

$

428,410



$

404,710



$

375,395



$

353,082



$

340,321


Interest bearing demand deposits

326,971



328,440



302,444



287,809



263,567


Savings deposits

549,134



555,688



505,497



474,483



458,167


Certificates of deposit

326,214



331,413



358,165



354,210



352,118


Brokered certificates of deposit

—



14,029



14,029



14,029



14,029


Internet certificates of deposit

5,777



9,301



10,787



11,482



12,476


Total deposits

$

1,636,506



$

1,643,581



$

1,566,317



$

1,495,095



$

1,440,678




June 30
2021


March 31
2021


December 31
2020


September 30
2020


June 30
2020

U.S. Treasury

$

132,593



$

29,371



$

—



$

—



$

—


States and political subdivisions

130,960



140,329



143,656



148,401



146,785


Auction rate money market preferred

3,260



3,224



3,237



3,194



2,979


Mortgage-backed securities

68,155



75,835



88,652



104,165



119,029


Collateralized mortgage obligations

109,294



116,865



101,983



107,294



111,621


Corporate

4,192



1,700



1,700



—



—


Available-for-sale securities, at fair value

$

448,454



$

367,324



$

339,228



$

363,054



$

380,414




June 30
2021


March 31
2021


December 31
2020


September 30
2020


June 30
2020

Federal Home Loan Bank advances

$

70,000



$

90,000



$

90,000



$

205,000



$

205,000


Securities sold under agreements to repurchase without stated maturity dates

62,274



51,967



68,747



33,349



31,268


Subordinated debt, net of unamortized issuance costs

29,121



—



—



—



—


Total borrowed funds

$

161,395



$

141,967



$

158,747



$

238,349



$

236,268


SUPPLEMENTAL STATEMENTS OF INCOME DATA (UNAUDITED)

(Dollars in thousands)



Three Months Ended June 30


Six Months Ended June 30


2021


2020


2021


2020

Service charges and fees








ATM and debit card fees

$

1,127



$

883



$

2,126



$

1,677


Service charges and fees on deposit accounts

481



350



917



937


Freddie Mac servicing fee

181



155



395



314


Net OMSR income (loss)

(68)



(89)



(100)



(350)


Other fees for customer services

109



87



187



161


Total service charges and fees

1,830



1,386



3,525



2,739


Wealth management fees

806



656



1,502



1,228


Net gain on sale of mortgage loans

375



466



1,120



617


Earnings on corporate owned life insurance policies

190



189



376



371


Gains from redemption of corporate owned life insurance policies

4



349



150



873


All other

110



200



174



416


Total noninterest income

$

3,315



$

3,246



$

6,847



$

6,244




Three Months Ended June 30


Six Months Ended June 30


2021


2020


2021


2020

Compensation and benefits

$

5,700



$

5,793



$

11,577



$

11,662


Furniture and equipment

1,327



1,431



2,700



2,892


Occupancy

915



912



1,860



1,779


Other








Audit, consulting, and legal fees

452



498



888



931


ATM and debit card fees

462



328



879



651


Marketing costs

238



265



447



468


Memberships and subscriptions

217



159



428



358


Loan underwriting fees

200



212



390



378


FDIC insurance premiums

129



144



360



300


Director fees

180



177



339



359


Donations and community relations

108



105



254



435


All other

567



676



1,190



1,432


Total other noninterest expenses

2,553



2,564



5,175



5,312


Total noninterest expenses

$

10,495



$

10,700



$

21,312



$

21,645


SOURCE Isabella Bank Corporation