Isabella Bank Corporation Announces Third Quarter 2023 Earnings

News provided by

Isabella Bank Corporation

Oct 19, 2023, 18:35 ET

Growth in core loans and deposits; pricing competition continues

MT. PLEASANT, Mich., Oct. 19, 2023 /PRNewswire/ -- Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) has reported net income of $4.4 million for the third quarter of 2023 and $14.4 million for the nine-month period ended September 30, 2023.  Earnings per common share were $0.59 for the third quarter of 2023 and $1.91 for the first nine months of the year.

Third Quarter 2023 Highlights:

  • Core loan portfolio grew $14.6 million as borrowing demand remained steady.

  • Deposits grew $54.5 million, or 3.2%, despite strong pricing competition in the market.

  • Wealth management fees increased 26.4% compared to the third quarter of 2022.

  • Shareholders earned a cash dividend of $0.28 per share, with an annualized dividend yield of 5.32%, as of September 30, 2023.

"Our financial results for the third quarter are strong despite the continued pressure of rising interest rates and economic uncertainty," said Jae A. Evans, President and Chief Executive Officer.  "Competition for deposits continued during the third quarter, leading to increased deposit rates and pressure on our net interest margin.  We've benefited from core and non-core loan growth which has mitigated some of this pressure.

"We remain focused on the long-term success of the bank with strategic decisions and initiatives designed to enhance shareholder value and the customer experience," Evans added.  "We are pleased to have recently opened a new loan and wealth office in downtown Bay City, expanding our physical presence to Bay County.  In addition, a new full-service branch in Saginaw opened earlier this year.  The continued, steady growth of our footprint demonstrates our commitment to customers and communities as a leading, independent community bank."

Operating Results

Net income: Net income for the third quarter of 2023 was $4.4 million, compared to $5.9 million in the third quarter of 2022.  Net income for the first nine months of the year was $14.4 million, compared to $15.9 million for the same period in 2022.  Interest income continued to improve in the third quarter, but fell short of the growth in interest expense due to rising rates on deposits and increased borrowings.

Net interest income: Net interest income for the third quarter of 2023 decreased by $1.5 million compared to the third quarter of 2022.  For the first nine months of the year, net interest income increased by $123,000 compared to the same period in 2022.  Rising interest rates and loan growth led to an increase in gross interest income of $3.5 million and $10.7 million for the third quarter and first nine months of 2023, compared to the same periods in 2022.  Conversely, rising interest rates on deposits and an increase in borrowings led to a $5.0 million and $10.6 million increase in interest expense for the third quarter and first nine months of 2023, compared to the same periods in 2022.

Noninterest income and expenses: Noninterest income was $3.4 million for the third quarter of 2023 versus $3.3 million for the third quarter of 2022.  For the first nine months of 2023, noninterest income decreased $83,000 compared to the same period in 2022, driven by a $574,000 reduction in mortgage servicing rights income and a $336,000 decline in the gain on the sale of mortgage loans, offset largely by a $408,000, or 18.4%, increase in wealth management fees.  Noninterest expenses increased $741,000 during the third quarter of 2023 and $2.5 million for the nine-month period ended September 30, 2023 in comparison to the same periods in 2022.  The increase was the result of increased compensation, equipment expense, FDIC insurance premiums, and other losses.

Net yield on interest earning assets: The Corporation's fully taxable equivalent net yield on interest earning assets was 3.02% and 3.12% for the three and nine months ended September 30, 2023, compared to 3.28% and 3.10% for the same periods in 2022.  While the third quarter of 2023 fell in comparison to the same period in 2022, net yield for the first nine months of 2023 improved through strategic initiatives - such as the reduced reliance on higher-cost borrowed funds and brokered deposits - that were implemented in prior periods in anticipation of rising interest rates.  To maintain a competitive edge in a rising interest rate environment, the Bank increased most of its deposit rates beginning in the fourth quarter of 2022 and in recent periods, increased the level of borrowings to fund loan growth.  As a result, this has negatively impacted the net yield on interest earning assets and further increases could slow the rate of improvement in the net yield on interest earning assets.

Balance Sheet

Assets: Total assets were $2.1 billion and assets under management were $3 billion as of September 30, 2023.  Managed assets include loans sold and serviced of $252 million as well as $591 million in investment and trust assets managed by Isabella Wealth.  Investment and trust assets increased $77 million, or 14.9%, since December 31, 2022.

Loans: Loans outstanding as of September 30, 2023 totaled $1.3 billion.  Core loans increased $14.6 million during the third quarter and rose $45.7 million compared to December 31, 2022.  This reflects growth in the commercial and consumer portfolios.  In addition, the Bank resumed its engagement in a mortgage participation program in the second quarter, with loans outstanding of $24.8 million as of September 30, 2023.  Adherence to strong underwriting standards are reflected in the continued low levels of total past due and nonaccrual loans, which were $1.2 million, or 0.09% of total loans, at the end of the period.

Deposits: Total deposits were $1.8 billion as of September 30, 2023, an increase of $25.2 million, or 1.4%, since December 31, 2022.  Strong pricing competition within the industry continues. 

Capital: The Bank is considered a "well-capitalized" institution, as its capital ratios exceeded the minimum designated requirements.  As of September 30, 2023, the Bank's Tier 1 Leverage Ratio was 8.97%, Tier 1 Capital Ratio was 12.75%, and Total Capital Ratio was 13.67%. 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 third quarter of 2023, the Corporation paid a $0.28 per common share cash dividend. Based on the Corporation's closing stock price of $21.05 as of September 29, 2023, the annualized cash dividend yield was 5.32%.

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 120 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 31 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 firms include Renmark Financial Communications, Inc. (www.renmarkfinancial.com) and 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)



September 30

2023


December 31

2022

ASSETS




Cash and cash equivalents




Cash and demand deposits due from banks

$           48,862


$           27,420

Fed Funds sold and interest bearing balances due from banks

67,017


11,504

Total cash and cash equivalents

115,879


38,924

Available-for-sale securities, at fair value

516,897


580,481

Mortgage loans available-for-sale

105


379

Loans

1,334,674


1,264,173

Less allowance for credit losses

12,767


9,850

Net loans

1,321,907


1,254,323

Premises and equipment

26,960


25,553

Corporate owned life insurance policies

33,654


32,988

Equity securities without readily determinable fair values

15,848


15,746

Goodwill and other intangible assets

48,285


48,287

Accrued interest receivable and other assets

38,955


33,586

TOTAL ASSETS

$      2,118,490


$      2,030,267

LIABILITIES AND SHAREHOLDERS' EQUITY




Deposits




Noninterest bearing

$         445,043


$         494,346

Interest bearing demand deposits

363,558


372,155

Certificates of deposit under $250 and other savings

853,991


810,642

Certificates of deposit over $250

106,882


67,132

Total deposits

1,769,474


1,744,275

Borrowed funds




Federal funds purchased and repurchase agreements

52,330


57,771

Federal Home Loan Bank advances

65,000


—

Subordinated debt, net of unamortized issuance costs

29,312


29,245

Total borrowed funds

146,642


87,016

Accrued interest payable and other liabilities

17,251


12,766

Total liabilities

1,933,367


1,844,057

Shareholders' equity




Common stock — no par value 15,000,000 shares authorized; issued and outstanding
7,490,557 shares (including 136,694 shares held in the Rabbi Trust) in 2023 and
7,559,421 shares (including 154,879 shares held in the Rabbi Trust) in 2022

127,680


128,651

Shares to be issued for deferred compensation obligations

3,641


5,005

Retained earnings

95,533


89,748

Accumulated other comprehensive income (loss)

(41,731)


(37,194)

Total shareholders' equity

185,123


186,210

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$      2,118,490


$      2,030,267

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)



Three Months Ended 

 September 30


Nine Months Ended 

 September 30


2023


2022


2023


2022

Interest income








Loans, including fees

$           17,270


$             13,563


$           48,090


$           39,120

Available-for-sale securities








Taxable

2,327


2,209


7,211


5,851

Nontaxable

636


726


2,019


2,090

Federal funds sold and other

252


521


1,255


822

Total interest income

20,485


17,019


58,575


47,883

Interest expense








Deposits

5,015


908


11,953


2,698

Borrowings








Federal funds purchased and repurchase
agreements

284


9


604


26

Federal Home Loan Bank advances

617


33


887


152

Subordinated debt, net of unamortized issuance
costs

267


266


799


798

Total interest expense

6,183


1,216


14,243


3,674

Net interest income

14,302


15,803


44,332


44,209

Provision for credit losses

(292)


18


(55)


540

Net interest income after provision for
credit losses

14,594


15,785


44,387


43,669

Noninterest income








Service charges and fees

2,060


2,122


6,085


6,615

Wealth management fees

858


679


2,625


2,217

Earnings on corporate owned life insurance policies

229


223


681


655

Net gain on sale of mortgage loans

109


174


232


568

Other

158


54


688


339

Total noninterest income

3,414


3,252


10,311


10,394

Noninterest expenses








Compensation and benefits

6,639


6,369


19,789


18,480

Furniture and equipment

1,612


1,490


4,822


4,382

Occupancy

923


918


2,921


2,813

Other

3,484


3,140


9,863


9,223

Total noninterest expenses

12,658


11,917


37,395


34,898

Income before federal income tax
expense

5,350


7,120


17,303


19,165

Federal income tax expense

937


1,233


2,939


3,249

NET INCOME

$              4,413


$               5,887


$           14,364


$           15,916

Earnings per common share








Basic

$                0.59


$                 0.78


$                1.91


$                2.11

Diluted

$                0.58


$                 0.77


$                1.89


$                2.08

Cash dividends per common share

$                0.28


$                 0.27


$                0.84


$                0.81

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


September 30, 2023


September 30, 2022


Average

Balance


Tax

Equivalent

Interest


Average

Yield /

Rate


Average

Balance


Tax

Equivalent

Interest


Average

Yield /

Rate

INTEREST EARNING ASSETS












Loans (1)

$    1,325,455


$         17,270


5.21 %


$    1,256,723


$         13,563


4.32 %

Taxable investment securities

478,846


2,298


1.92 %


490,751


2,190


1.79 %

Nontaxable investment securities

93,192


915


3.93 %


110,058


1,002


3.64 %

Fed funds sold

13


—


5.51 %


16


—


1.98 %

Other

30,400


252


3.32 %


101,687


521


2.05 %

Total earning assets

1,927,906


20,735


4.30 %


1,959,235


17,276


3.53 %

NONEARNING ASSETS












Allowance for credit losses

(12,937)






(9,691)





Cash and demand deposits due from
banks

25,287






24,875





Premises and equipment

26,629






24,475





Accrued income and other assets

74,244






78,151





Total assets

$    2,041,129






$    2,077,045

















INTEREST BEARING LIABILITIES












Interest bearing demand deposits

$       342,175


242


0.28 %


$       381,282


64


0.07 %

Savings deposits

595,372


2,156


1.45 %


642,916


270


0.17 %

Time deposits

324,399


2,617


3.23 %


262,628


574


0.87 %

Federal funds purchased and
repurchase agreements

46,574


284


2.44 %


49,267


9


0.07 %

Federal Home Loan Bank advances

44,429


617


5.55 %


6,739


33


1.96 %

Subordinated debt, net of
unamortized issuance costs

29,298


267


3.65 %


29,211


266


3.64 %

Total interest bearing liabilities

1,382,247


6,183


1.79 %


1,372,043


1,216


0.35 %

NONINTEREST BEARING LIABILITIES












Demand deposits

451,123






497,215





Other

16,802






13,627





Shareholders' equity

190,957






194,160





Total liabilities and shareholders'
equity

$    2,041,129






$    2,077,045





Net interest income (FTE)



$         14,552






$         16,060



Net yield on interest earning
assets (FTE)





3.02 %






3.28 %

(1) Includes loans and mortgage loans available-for-sale






Nine Months Ended


September 30, 2023


September 30, 2022


Average

Balance


Tax

Equivalent

Interest


Average

Yield /

Rate


Average

Balance


Tax

Equivalent

Interest


Average

Yield /

Rate

INTEREST EARNING ASSETS












Loans (1)

$    1,298,316


$         48,090


4.94 %


$    1,251,206


$         39,120


4.17 %

Taxable investment securities

489,782


7,125


1.94 %


462,675


5,795


1.67 %

Nontaxable investment securities

99,014


2,882


3.88 %


107,041


2,934


3.65 %

Fed funds sold

11


—


5.06 %


8


—


1.69 %

Other

42,767


1,255


3.91 %


113,847


822


0.96 %

Total earning assets

1,929,890


59,352


4.10 %


1,934,777


48,671


3.35 %

NONEARNING ASSETS












Allowance for credit losses

(12,786)






(9,372)





Cash and demand deposits due from
banks

25,043






24,843





Premises and equipment

26,300






24,401





Accrued income and other assets

75,239






87,989





Total assets

$    2,043,686






$    2,062,638

















INTEREST BEARING LIABILITIES












Interest bearing demand deposits

$       356,608


582


0.22 %


$       379,952


170


0.06 %

Savings deposits

623,157


5,471


1.17 %


628,823


600


0.13 %

Time deposits

298,535


5,900


2.64 %


275,586


1,928


0.93 %

Federal funds purchased and
repurchase agreements

40,707


604


1.98 %


48,119


26


0.07 %

Federal Home Loan Bank advances

21,685


887


5.45 %


10,513


152


1.93 %

Subordinated debt, net of
unamortized issuance costs

29,275


799


3.64 %


29,189


798


3.65 %

Total interest bearing liabilities

1,369,967


14,243


1.39 %


1,372,182


3,674


0.36 %

NONINTEREST BEARING
LIABILITIES












Demand deposits

466,725






475,373





Other

15,619






15,242





Shareholders' equity

191,375






199,841





Total liabilities and shareholders'
equity

$    2,043,686






$    2,062,638





Net interest income (FTE)



$         45,109






$         44,997



Net yield on interest earning
assets (FTE)





3.12 %






3.10 %

(1) Includes loans and mortgage loans available-for-sale 

SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands except per share amounts)



Three Months Ended


September 30

2023


June 30

2023


March 31

2023


December 31

2022


September 30

2022

PER SHARE










Basic earnings

$            0.59


$            0.62


$            0.70


$            0.84


$           0.78

Diluted earnings

$            0.58


$            0.61


$            0.70


$            0.83


$           0.77

Dividends

$            0.28


$            0.28


$            0.28


$            0.28


$           0.27

Tangible book value

$          18.27


$          18.69


$          19.24


$          18.25


$         16.96

Quoted market value










High

$          23.00


$          26.00


$          25.10


$          24.02


$         24.95

Low

$          19.61


$          19.13


$          22.08


$          21.00


$         21.39

Close (1)

$          21.05


$          20.50


$          24.80


$          23.50


$         21.40

Common shares outstanding (1)

7,490,557


7,496,826


7,540,015


7,559,421


7,564,348

Average number of common shares
outstanding

7,495,168


7,498,584


7,556,585


7,564,405


7,555,333

Average number of diluted common
shares outstanding

7,570,374


7,567,527


7,634,417


7,648,152


7,650,950

PERFORMANCE RATIOS










Return on average total assets

0.86 %


0.91 %


1.04 %


1.24 %


1.13 %

Return on average shareholders' equity

9.24 %


9.47 %


11.35 %


14.01 %


12.13 %

Return on average tangible
shareholders' equity

12.37 %


12.58 %


15.28 %


19.14 %


16.15 %

Net interest margin yield (FTE)

3.02 %


3.11 %


3.22 %


3.43 %


3.28 %

ASSETS UNDER MANAGEMENT (1)










Loans sold with servicing retained

$      252,176


$      254,934


$      259,512


$      264,206


$     268,879

Assets managed by Isabella Wealth

$      590,666


$      593,530


$      571,453


$      513,918


$     464,136

Total assets under management

$  2,961,332


$  2,890,912


$  2,915,589


$  2,808,391


$ 2,796,992

ASSET QUALITY (1)










Nonaccrual loans

$             520


$             414


$             488


$             457


$            580

Foreclosed assets

$             509


$             405


$             414


$             439


$            240

Net loan charge-offs (recoveries)

$           (254)


$                (3)


$                (9)


$           (230)


$               41

Nonperforming loans to gross loans

0.04 %


0.04 %


0.04 %


0.04 %


0.05 %

Nonperforming assets to total assets

0.05 %


0.05 %


0.05 %


0.05 %


0.04 %

Allowance for credit losses to gross loans

0.96 %


0.96 %


0.99 %


0.78 %


0.78 %

CAPITAL RATIOS (1)










Shareholders' equity to assets

8.74 %


9.23 %


9.27 %


9.17 %


8.56 %

Tier 1 leverage

8.77 %


8.70 %


8.58 %


8.61 %


8.44 %

Common equity tier 1 capital

12.43 %


12.39 %


12.71 %


12.91 %


12.92 %

Tier 1 risk-based capital

12.43 %


12.39 %


12.71 %


12.91 %


12.92 %

Total risk-based capital

15.39 %


15.37 %


15.77 %


15.79 %


15.85 %

(1) At end of period

SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands except per share amounts)



Nine Months Ended


September 30

2023


September 30

2022


September 30

2021

PER SHARE






Basic earnings

$            1.91


$            2.11


$            1.85

Diluted earnings

$            1.89


$            2.08


$            1.82

Dividends

$            0.84


$            0.81


$            0.81

Tangible book value

$          18.27


$          16.96


$          21.87

Quoted market value






High

$          26.00


$          26.25


$          26.74

Low

$          19.13


$          21.39


$          19.45

Close (1)

$          21.05


$          21.40


$          26.03

Common shares outstanding (1)

7,490,557


7,564,348


7,926,610

Average number of common shares
outstanding

7,517,680


7,544,909


7,948,578

Average number of diluted common
shares outstanding

7,591,664


7,647,117


8,065,252

PERFORMANCE RATIOS






Return on average total assets

0.94 %


1.03 %


0.97 %

Return on average shareholders' equity

10.01 %


10.62 %


8.82 %

Return on average tangible
shareholders' equity

13.39 %


14.01 %


11.28 %

Net interest margin yield (FTE)

3.12 %


3.10 %


2.87 %

ASSETS UNDER MANAGEMENT (1)






Loans sold with servicing retained

$      252,176


$      268,879


$      285,392

Assets managed by Isabella Wealth

$      590,666


$      464,136


$      491,784

Total assets under management

$  2,961,332


$  2,796,992


$  2,859,877

ASSET QUALITY (1)






Nonaccrual loans

$             520


$             580


$          3,077

Foreclosed assets

$             509


$             240


$             348

Net loan charge-offs (recoveries)

$           (266)


$              (34)


$                52

Nonperforming loans to gross loans

0.04 %


0.05 %


0.25 %

Nonperforming assets to total assets

0.05 %


0.04 %


0.18 %

Allowance for credit losses to gross
loans

0.96 %


0.78 %


0.73 %

CAPITAL RATIOS (1)






Shareholders' equity to assets

8.74 %


8.56 %


10.64 %

Tier 1 leverage

8.77 %


8.44 %


8.37 %

Common equity tier 1 capital

12.43 %


12.92 %


13.07 %

Tier 1 risk-based capital

12.43 %


12.92 %


13.07 %

Total risk-based capital

15.39 %


15.85 %


16.03 %

(1) At end of period

SUPPLEMENTAL BALANCE SHEET DATA (UNAUDITED)
(Dollars in thousands)



September 30

2023


June 30

2023


March 31

2023


December 31

2022


September 30

2022

Commercial and industrial

$         195,814


$         194,914


$         189,185


$         178,428


$         180,124

Commercial real estate

566,639


564,254


566,410


566,012


552,399

Advances to mortgage brokers

24,807


39,099


—


—


1,484

Agricultural

99,233


96,689


94,760


104,985


97,527

Residential real estate

348,196


343,474


336,186


336,694


330,232

Consumer

99,985


95,972


84,110


78,054


74,385

Gross loans

$      1,334,674


$      1,334,402


$      1,270,651


$      1,264,173


$      1,236,151






















September 30

2023


June 30

2023


March 31

2023


December 31

2022


September 30

2022

Noninterest bearing demand deposits

$         445,043


$         458,845


$         478,829


$         494,346


$         510,127

Interest bearing demand deposits

363,558


335,922


383,602


372,155


368,537

Savings deposits

628,795


606,644


662,495


625,734


651,129

Certificates of deposit

331,829


313,288


288,103


251,541


260,741

Internet certificates of deposit

249


249


499


499


499

Total deposits

$      1,769,474


$      1,714,948


$      1,813,528


$      1,744,275


$      1,791,033






















September 30

2023


June 30

2023


March 31

2023


December 31

2022


September 30

2022

U.S. Treasury

$         209,182


$         209,353


$         212,086


$         208,701


$         206,791

States and political subdivisions

89,773


95,242


108,719


117,512


114,000

Auction rate money market preferred

2,570


2,637


2,716


2,342


2,479

Mortgage-backed securities

32,923


35,532


37,797


39,070


41,042

Collateralized mortgage obligations

175,630


180,996


200,252


205,728


209,720

Corporate

6,819


6,737


7,080


7,128


7,201

Available-for-sale securities, at
fair value

$         516,897


$         530,497


$         568,650


$         580,481


$         581,233






















September 30

2023


June 30

2023


March 31

2023


December 31

2022


September 30

2022

Securities sold under agreements to
repurchase without stated maturity dates

$           52,330


$           37,102


$           31,995


$           57,771


$           52,479

Federal Home Loan Bank advances

65,000


55,000


—


—


—

Subordinated debt, net of unamortized
issuance costs

29,312


29,290


29,267


29,245


29,225

Total borrowed funds

$         146,642


$         121,392


$           61,262


$           87,016


$           81,704

SUPPLEMENTAL STATEMENTS OF INCOME DATA (UNAUDITED)
(Dollars in thousands)



Three Months Ended September 30


Nine Months Ended September 30


2023


2022


2023


2022

Service charges and fees








ATM and debit card fees

$               1,250


$               1,212


$               3,654


$               3,507

Service charges and fees on deposit accounts

598


673


1,797


1,913

Freddie Mac servicing fee

154


168


475


506

Net mortgage servicing rights income (loss)

(20)


—


(97)


477

Other fees for customer services

78


69


256


212

Total service charges and fees

2,060


2,122


6,085


6,615

Wealth management fees

858


679


2,625


2,217

Earnings on corporate owned life insurance policies

229


223


681


655

Net gain on sale of mortgage loans

109


174


232


568

Other

158


54


688


339

Total noninterest income

$               3,414


$               3,252


$             10,311


$             10,394










Three Months Ended September 30


Nine Months Ended September 30


2023


2022


2023


2022

Compensation and benefits

$               6,639


$               6,369


$             19,789


$             18,480

Furniture and equipment

1,612


1,490


4,822


4,382

Occupancy

923


918


2,921


2,813

Other








Audit, consulting, and legal fees

672


595


1,764


1,749

ATM and debit card fees

471


543


1,280


1,485

Marketing costs

398


209


883


812

Other losses

198


93


770


409

Memberships and subscriptions

259


230


729


654

Donations and community relations

252


239


692


665

FDIC insurance premiums

228


138


689


394

Loan underwriting fees

206


243


637


640

Director fees

179


210


581


598

All other

621


640


1,838


1,817

Total other noninterest expenses

3,484


3,140


9,863


9,223

Total noninterest expenses

$             12,658


$             11,917


$             37,395


$             34,898

SOURCE Isabella Bank Corporation