Isabella Bank Corp reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period.

For the three months ended September 30, 2024, net income was $3,281,000, a decrease from $4,413,000 in the same period of 2023. Basic earnings per share fell to $0.44 from $0.59. Adjusted net income, excluding a significant charge-off of $1,622, was $4,559, compared to $4,354 in the prior year. For the nine months, net income totaled $9,893,000, down from $14,364,000 in 2023, with basic earnings per share decreasing from $1.91 to $1.32.

Total interest income for the third quarter increased to $23,341,000 from $20,485,000 year-over-year, while net interest income rose slightly to $14,488,000 from $14,302,000. However, net interest income after provision for credit losses decreased to $13,542,000 from $14,594,000. The provision for credit losses for the quarter was $946,000, compared to a credit of $292,000 in Q3 2023. Noninterest income also saw a modest increase to $3,528,000 from $3,414,000, while noninterest expenses rose to $13,228,000 from $12,658,000.

As of September 30, 2024, total assets increased to $2,106,901,000 from $2,058,968,000 at year-end 2023, driven by a 5.5% growth in loans, which reached $1,424,283,000. Total deposits rose to $1,781,832,000, up from $1,723,695,000, with significant growth in retail certificates of deposit. Shareholders' equity increased to $212,985,000 from $202,402,000, reflecting a rise in tangible book value per share to $22.14 from $20.59.

The company’s allowance for credit losses (ACL) decreased to $12,635,000 from $13,108,000, attributed to improved historical loss experience. Nonaccrual loans also saw a decline, totaling $547,000 compared to $926,000 at the end of 2023.

In terms of strategic developments, Isabella Bank Corp engaged in share repurchases totaling 124,969 shares for $2,419,000 during the first nine months of 2024. The company maintained strong capital ratios, with a Common Equity Tier 1 capital of $181,981,000, representing 12.08% against a minimum requirement of 7.00%.

Overall, while Isabella Bank Corp experienced growth in assets and deposits, profitability metrics reflected challenges, particularly in net income and earnings per share, compared to the previous fiscal period.