Company: ISBA
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000842517-25-000135
Chunk: 104

Company: ISABELLA BANK CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 104
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5 totaled $4,096, or $0.55 per diluted share, compared to $3,476 or $0.46 per diluted share, in the same quarter of 2024.

Net income for the year-to-date period of 2025 was $8,980, or $1.21 per diluted share, compared with $6,612, or $0.88 per diluted share, in the same period of 2024. Adjusted net income was $8,350, or $1.13 per diluted share, compared with $6,553, or $0.87 per diluted share, for the respective periods.

Net interest income was $15,129 in the second quarter of 2025 and $13,550 in the same quarter of 2024, representing 3.14% and 2.82% of earning assets, or NIM on an FTE basis, respectively. The book yield from securities was 2.38% and 2.17% during the second quarters of 2025 and 2024, respectively. Our yield on loans expanded to 5.71% in the second quarter 2025, up from 5.50% in the same quarter of 2024. The expansion in loan yields was a result of higher rates on new loans and variable rate commercial loans that continue to reprice. At the end of the second quarter 2025, approximately 38% of commercial loans were fixed at rates that are lower than current market. Most of those fixed rate loans will contractually reprice to variable rates over the next four years. Our cost of interest-bearing liabilities in the second quarter 2025 decreased to 2.24% from 2.38% in the second quarter 2024 due to reductions to rates in the money market and certificate of deposit products. NIM is expected to continue to expand as loans reprice and the cost of interest-bearing liabilities stabilizes.

For the first six months of 2025, net interest income was $29,654 compared with $26,792 in the same period of 2024. The comparison of NIM and yield on interest earning assets for the six months ending June 30, 2025 were 3.10% and 4.78%, respectively, compared to 2.81% and 4.54%, respectively, for the same period in 2024. The yield on loans expanded to 5.72%, from 5.45%, and