# EDGAR Filing Document

**Accession Number:** 0000842517
**File Stem:** 0000842517-23-000022
**Filing Date:** 2023-2
**Character Count:** 39012
**Document Hash:** 23805fc3a99ae9cde3346a33b6e923d6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000842517-23-000022.hdr.sgml**: 20230209

**ACCESSION NUMBER**: 0000842517-23-000022

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230209

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230209

**DATE AS OF CHANGE**: 20230209

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ISABELLA BANK Corp
- **CENTRAL INDEX KEY:** 0000842517
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 382830092
- **STATE OF INCORPORATION:** MI
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-18415
- **FILM NUMBER:** 23607409

**BUSINESS ADDRESS:**
- **STREET 1:** 401 NORTH MAIN STREET
- **CITY:** MT PLEASANT
- **STATE:** MI
- **ZIP:** 48858
- **BUSINESS PHONE:** 9897729471

**MAIL ADDRESS:**
- **STREET 1:** 401 NORTH MAIN STREET
- **CITY:** MT PLEASANT
- **STATE:** MI
- **ZIP:** 48858

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ISABELLA BANK CORP
- **DATE OF NAME CHANGE:** 20080602

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IBT BANCORP INC /MI/
- **DATE OF NAME CHANGE:** 19920703

?xml version="1.0" ? isba-20230209

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 9, 2023**

**ISABELLA BANK CORPORATION**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Michigan** | **000-18415** | **38-2830092** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

---

| | | | |
|:---|:---|:---|:---|
| **401 North Main Street** | **Mt. Pleasant** | **Michigan** | **48858-1649** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (989) 772-9471**

**Not Applicable**

**(Former name or former address, if changed since last report.)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-l2)

☐ Pre-commencement communications pursuant to Rule l4d-2(b) under the Exchange Act (17 CFR 240.l4d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.l3e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class TradingSymbol(s) Name of each exchange on which registered <br> <u>None</u> <u>N/A</u> <u>N/A</u>

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Section 2 - Financial Information**

**Item 2.02 Results of Operations and Financial Condition.**

On February 9, 2023, Isabella Bank Corporation issued a press release announcing its results of for the quarter and year ended December 31, 2022.

A copy of the press release is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

The information in this Item 2.02 of Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing made by the registrant under the Securities Act of 1933, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.

**Section 9 - Financial Statements and Exhibits**

**Item 9.01 Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits:

---

| | |
|:---|:---|
| Exhibit<br>No. | Description |
| <u>[99.1](earningsrelease_20221231xe.htm)</u> | <u>[Press release issued February 9, 2023](earningsrelease_20221231xe.htm)</u> |
| 104 | Cover page interactive data file - the cover page XBRL tags are embedded within the inline XBRL document |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | ISABELLA BANK CORPORATION | ISABELLA BANK CORPORATION |
| Dated: | &nbsp;&nbsp;&nbsp;February 9, 2023 | By: | /s/ Jae A. Evans |
|  |  |  | Jae A. Evans, President & CEO |

---

------

**INDEX TO EXHIBITS**

---

| | |
|:---|:---|
| Exhibit<br>No. | Description |
| <u>[99.1](earningsrelease_20221231xe.htm)</u> | <u>[Press release issued February 9, 2023](earningsrelease_20221231xe.htm)</u> |
| 104 | Cover page interactive data file - the cover page XBRL tags are embedded within the inline XBRL document |

---

## Exhibit 99.1

**Exhibit 99.1**

**For Immediate Release**

Isabella Bank Corporation

401 North Main Street

Mt. Pleasant, MI 48858-1649

**FOR MORE INFORMATION CONTACT:**

Trish Tomczak, Director of Marketing

Phone: 989-779-6333 Fax: 989-775-5501

**Strong Fourth Quarter Caps Record Year for Isabella Bank Corporation**

*Record Net Income and EPS in 2022; EPS up 19% over 2021*

Mt. Pleasant, Michigan, February 9, 2023 — Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) reported record net income, net interest income and earnings per share for the year ended December 31, 2022. Fourth quarter net income was $6.3 million, surpassing $4.8 million for the same period in 2021, resulting in net income of $22.2 million in 2022, up 14% from $19.5 million reported in 2021. Earnings per common share were $0.84 in the fourth quarter and $2.95 for the year, above the $0.63 and $2.48 reported for the same periods a year ago, respectively.

"Isabella Bank had another outstanding year, driven by solid growth across our geographic and business portfolios and a favorable interest rate environment," said Jae A. Evans, President & CEO. "We are seeing the results of implementing our strategic plan, which led to increased market share in several markets, by investing in digital technology and new offerings."

Additional 2022 highlights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total deposits increased $33.9 million in 2022, or 2%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Fourth quarter net interest income rose $2.8 million, or 21%, over the same period in 2021, and net interest income was $7.8 million in 2022, up 15% from 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Net yield on interest earning assets reached 3.43% in the fourth quarter, up from 2.86% for the same period in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Asset quality also improved, with nonperforming loans at 0.04% of total loans, compared to 0.10% at the end of 2021.

"We are attracting new customers, while also expanding our offerings with current customers," Evans added. "This is possible because of our outstanding Isabella Bank team. We remain committed to growing with our customers and communities, just as we have since 1903. Our reputation as a strong, reliable and community-focused bank will not change, even as we continue to evolve to provide the services our customers and communities want and need."

------

**Operating Results**

**Net income:** Fourth quarter 2022 net income increased 31.9% compared to the same period in 2021. For the year ended December 31, 2022, net income was $22.2 million, compared to $19.5 million in 2021.

**Net interest income, fourth quarter 2022:** Net interest income for the fourth quarter 2022 improved by $2.8 million, or 21%, compared to the fourth quarter of 2021. Interest income increased $2.9 million, or 19.1%, driven largely by rising interest rates.

**Net interest income:** Net interest income for the year ended December 31, 2022 increased $7.8 million to $60.5 million, up 14.8% compared to 2021. While Paycheck Protection Program loan fees declined, rising interest rates and growth in available-for-sale securities led to a $5.7 million, or 9.5%, increase in gross interest income for the year ended December 31, 2022, compared to 2021. The Corporation continued to benefit from the significant reduction in its higher-cost borrowings — a strategic move that commenced in 2019 and contributed to a $2.1 million, or 28.3%, decrease in interest expense on deposits and borrowings for the year ended December 31, 2022, when compared to 2021. The provision for loan loss in 2022 was $483,000 compared to a $518,000 provision reversal in 2021, when concerns over potential credit quality issues related to the pandemic did not materialize.

**Noninterest income and expenses, fourth quarter 2022:** Noninterest income decreased $336,000 compared to the fourth quarter of 2021, primarily driven by a reduction in gain on sale of mortgage loans. Noninterest expenses for the quarter increased $725,000, attributed to increased compensation, equipment, and loan underwriting expenses.

**Noninterest income and expenses:** Noninterest income for the year ended December 31, 2022 decreased $156,000 compared to 2021. Gain on sale of mortgages decreased $1.1 million, as demand for residential mortgage originations declined due to the rising interest rate environment. This was offset by an increase in service charges and fees of $1.1 million, with $619,000 of the increase related to mortgage servicing rights. Noninterest expense increased $3.1 million in 2022 compared to 2021, primarily the result of increased compensation, other losses, and donations and community relations expenses.

**Net yield on interest earning assets:** The Corporation's fully taxable equivalent net yield on interest earning assets was 3.43% and 3.18% for the fourth quarter and year ended 2022, respectively, compared to 2.86% and 2.87% for the same periods in 2021. The marked improvement is a result of strategies that positioned the Bank to benefit in a rising interest rate environment, including a reduced reliance on higher-cost borrowed funds and brokered deposits.

**Balance Sheet**

**Assets:** Total assets were $2.03 billion and assets under management were $2.81 billion as of December 31, 2022. Managed assets included loans sold and serviced of $264.2 million as well as $513.9 million in investment and trust assets managed by Isabella Wealth.

------

**Loans:** Loans outstanding as of December 31, 2022 totaled $1.26 billion. Core loan growth improved $35.1 million, or 2.9%, primarily due to commercial loan growth. Gross loans declined $36.9 million since December 31, 2021 due to a decrease of $72 million in advances to mortgage brokers, which are included in the commercial loan portfolio but are not considered a component of the Bank's core lending business. While the Bank has experienced fluctuations in credit quality indicators in recent periods, credit quality remained strong, as evidenced by total past due and nonaccrual loans being just 0.88% of gross loans as of December 31, 2022. Additionally, nonperforming loans at year end 2022 declined to $457,000, or 0.04% of total loans, compared to $1.3 million, or 0.10%, at December 31, 2021.

**Deposits:** Growth in accounts from new customers drove total deposits to $1.74 billion as of December 31, 2022, an increase of $33.9 million, or 2.0%, since December 31, 2021. A large percentage of this increase came in the form of demand deposits which helps to minimize total interest expense and reduce overall cost of funds.

**Capital:** Due to an increase in short-term and intermediate-term benchmark interest rates, unrealized losses related to available-for-sale securities increased significantly during 2022. As a result, shareholders' equity has declined, negatively impacting tangible book value. The Bank continues to be **c**onsidered a "well-capitalized" institution, as its capital ratios exceeded the minimum designated requirements. As of December 31, 2022, the Bank's Tier 1 Leverage Ratio was 9.36%, Tier 1 Capital Ratio was 14.07% and Total Capital Ratio was 14.80%. 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:** The Corporation paid a $0.28 per common share cash dividend for the fourth quarter of 2022, an increase of 3.7% compared to fourth quarter of 2021. Total cash dividends paid for the year ended December 31, 2022 totaled $1.09. Based on the Corporation's closing stock price of $23.50 as of December 31, 2022, the annualized cash dividend yield was 4.77%.

**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 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 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 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 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)

---

| | | |
|:---|:---|:---|
| | December 31<br>2022 | December 31<br>2021 |
| **ASSETS** |  |  |
| Cash and cash equivalents |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and demand deposits due from banks | $27420 | $25563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fed Funds sold and interest bearing balances due from banks | 11504 | 79767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total cash and cash equivalents** | **38924** | **105330** |
| Available-for-sale securities, at fair value | 580481 | 490601 |
| Mortgage loans available-for-sale | 379 | 1735 |
| Loans |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 740920 | 807439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agricultural | 104314 | 93955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | 340885 | 326361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer | 78054 | 73282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross loans** | **1264173** | **1301037** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less allowance for loan and lease losses | 9850 | 9103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loans** | **1254323** | **1291934** |
| Premises and equipment | 25553 | 24419 |
| Corporate owned life insurance policies | 32988 | 32472 |
| Equity securities without readily determinable fair values | 15746 | 17383 |
| Goodwill and other intangible assets | 48287 | 48302 |
| Accrued interest receivable and other assets | 33586 | 19982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $**2030267** | $**2032158** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Deposits |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noninterest bearing | $494346 | $448352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest bearing demand deposits | 372155 | 364563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit under $250 and other savings | 810642 | 818841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit over $250 | 67132 | 78583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total deposits** | **1744275** | **1710339** |
| Borrowed funds |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds purchased and repurchase agreements | 57771 | 50162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances |  | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt, net of unamortized issuance costs | 29245 | 29158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total borrowed funds** | **87016** | **99320** |
| Accrued interest payable and other liabilities | 12766 | 11451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **1844057** | **1821110** |
| Shareholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,559,421 shares (including 154,879 shares held in the Rabbi Trust) in 2022 and 7,532,641 shares (including 105,654 shares held in the Rabbi Trust) in 2021 | 128651 | 129052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares to be issued for deferred compensation obligations | 5005 | 4545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 89748 | 75592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (37194) | 1859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | **186210** | **211048** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**2030267** | $**2032158** |

---

------

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)**

(Dollars in thousands except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended <br> December 31 | Three Months Ended <br> December 31 | Year Ended <br>December 31 | Year Ended <br>December 31 |
| | 2022 | 2021 | 2022 | 2021 |
| **Interest income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, including fees | $14163 | $12776 | $53283 | $51410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 2512 | 1391 | 8363 | 4920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nontaxable | 718 | 684 | 2808 | 3077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold and other | 522 | 190 | 1344 | 706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total interest income** | **17915** | **15041** | **65798** | **60113** |
| **Interest expense** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 1323 | 1079 | 4021 | 5442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds purchased and repurchase agreements | 53 | 13 | 79 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances |  | 209 | 152 | 1302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt, net of unamortized issuance costs | 267 | 266 | 1065 | 615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total interest expense** | **1643** | **1567** | **5317** | **7412** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | **16272** | **13474** | **60481** | **52701** |
| Provision for loan losses | (57) | 81 | 483 | (518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income after provision for loan losses** | **16329** | **13393** | **59998** | **53219** |
| **Noninterest income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service charges and fees | 2115 | 2125 | 8730 | 7614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wealth management fees | 788 | 797 | 3005 | 3071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings on corporate owned life insurance policies | 229 | 223 | 884 | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on sale of mortgage loans | 63 | 235 | 631 | 1694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains from redemption of corporate owned life insurance policies |  | 121 | 57 | 271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 77 | 107 | 359 | 372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest income** | **3272** | **3608** | **13666** | **13822** |
| **Noninterest expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation and benefits | 6407 | 6056 | 24887 | 23749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furniture and equipment | 1624 | 1413 | 6006 | 5462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 878 | 935 | 3691 | 3661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 3013 | 2793 | 12236 | 10822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest expenses** | **11922** | **11197** | **46820** | **43694** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income before federal income tax expense** | **7679** | **5804** | **26844** | **23347** |
| Federal income tax expense | 1357 | 1010 | 4606 | 3848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET INCOME** | $**6322** | $**4794** | $**22238** | $**19499** |
| **Earnings per common share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Basic** | $**0.84** | $**0.63** | $**2.95** | $**2.48** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Diluted** | $**0.83** | $**0.63** | $**2.91** | $**2.45** |
| **Cash dividends per common share** | $**0.28** | $**0.27** | $**1.09** | $**1.08** |

---

------

**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 | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
| | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| | Average<br>Balance | Tax<br>Equivalent<br>Interest | Average<br>Yield /<br>Rate | Average<br>Balance | Tax<br>Equivalent<br>Interest | Average<br>Yield /<br>Rate |
| INTEREST EARNING ASSETS |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $1244972 | $14163 | 4.55% | $1226192 | $12776 | 4.17% |
| &nbsp;&nbsp;&nbsp;Taxable investment securities | 520139 | 2499 | 1.92% | 383175 | 1391 | 1.45% |
| &nbsp;&nbsp;&nbsp;Nontaxable investment securities | 107508 | 999 | 3.72% | 104115 | 889 | 3.42% |
| &nbsp;&nbsp;&nbsp;Fed funds sold | 14 |  | 4.00% | 9 |  | 0.01% |
| &nbsp;&nbsp;&nbsp;Other | 56142 | 522 | 3.72% | 199605 | 190 | 0.38% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 1928775 | 18183 | 3.77% | 1913096 | 15246 | 3.19% |
| NONEARNING ASSETS |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for loan losses | (9792) |  |  | (9082) |  |  |
| &nbsp;&nbsp;&nbsp;Cash and demand deposits due from banks | 24312 |  |  | 28852 |  |  |
| &nbsp;&nbsp;&nbsp;Premises and equipment | 25382 |  |  | 24534 |  |  |
| &nbsp;&nbsp;&nbsp;Accrued income and other assets | 63553 |  |  | 109238 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2032230 |  |  | $2066638 |  |  |
| INTEREST BEARING LIABILITIES |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest bearing demand deposits | $358809 | $104 | 0.12% | $367130 | $48 | 0.05% |
| &nbsp;&nbsp;&nbsp;Savings deposits | 635771 | 535 | 0.34% | 584475 | 157 | 0.11% |
| &nbsp;&nbsp;&nbsp;Time deposits | 254604 | 684 | 1.07% | 306817 | 874 | 1.14% |
| &nbsp;&nbsp;&nbsp;Federal funds purchased and repurchase agreements | 55478 | 53 | 0.38% | 60508 | 13 | 0.09% |
| &nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances |  |  | —% | 40543 | 209 | 2.06% |
| &nbsp;&nbsp;Subordinated debt, net of unamortized issuance costs | 29233 | 267 | 3.65% | 29143 | 266 | 3.65% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest bearing liabilities | 1333895 | 1643 | 0.49% | 1388616 | 1567 | 0.45% |
| NONINTEREST BEARING LIABILITIES |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Demand deposits | 504791 |  |  | 449766 |  |  |
| &nbsp;&nbsp;&nbsp;Other | 13103 |  |  | 12002 |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders' equity | 180441 |  |  | 216254 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $2032230 |  |  | $2066638 |  |  |
| Net interest income (FTE) |  | $16540 |  |  | $13679 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net yield on interest earning assets (FTE)** |  |  | **3.43%** |  |  | **2.86%** |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
| | December 31, 2022 | December 31, 2022 | December 31, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| | Average<br>Balance | Tax<br>Equivalent<br>Interest | Average<br>Yield /<br>Rate | Average<br>Balance | Tax<br>Equivalent<br>Interest | Average<br>Yield /<br>Rate |
| INTEREST EARNING ASSETS |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $1249634 | $53283 | 4.26% | $1208141 | $51410 | 4.26% |
| &nbsp;&nbsp;&nbsp;Taxable investment securities | 477159 | 8294 | 1.74% | 297357 | 4920 | 1.65% |
| &nbsp;&nbsp;&nbsp;Nontaxable investment securities | 107158 | 3933 | 3.67% | 117997 | 4235 | 3.59% |
| &nbsp;&nbsp;&nbsp;Fed funds sold | 10 |  | 2.42% | 5 |  | 0.02% |
| &nbsp;&nbsp;&nbsp;Other | 99301 | 1344 | 1.35% | 255246 | 706 | 0.28% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 1933262 | 66854 | 3.46% | 1878746 | 61271 | 3.26% |
| NONEARNING ASSETS |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for loan losses | (9477) |  |  | (9396) |  |  |
| &nbsp;&nbsp;&nbsp;Cash and demand deposits due from banks | 24708 |  |  | 29139 |  |  |
| &nbsp;&nbsp;&nbsp;Premises and equipment | 24648 |  |  | 24760 |  |  |
| &nbsp;&nbsp;&nbsp;Accrued income and other assets | 81823 |  |  | 109625 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2054964 |  |  | $2032874 |  |  |
| INTEREST BEARING LIABILITIES |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest bearing demand deposits | $374623 | $274 | 0.07% | $345015 | $216 | 0.06% |
| &nbsp;&nbsp;&nbsp;Savings deposits | 630574 | 1135 | 0.18% | 558102 | 616 | 0.11% |
| &nbsp;&nbsp;&nbsp;Time deposits | 270296 | 2612 | 0.97% | 336094 | 4610 | 1.37% |
| &nbsp;&nbsp;&nbsp;Federal funds purchased and repurchase agreements | 49974 | 79 | 0.16% | 57453 | 53 | 0.09% |
| &nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 7863 | 152 | 1.93% | 69342 | 1302 | 1.88% |
| &nbsp;&nbsp;Subordinated debt, net of unamortized issuance costs | 29200 | 1065 | 3.65% | 17000 | 615 | 3.62% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest bearing liabilities | 1362530 | 5317 | 0.39% | 1383006 | 7412 | 0.54% |
| NONINTEREST BEARING LIABILITIES |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Demand deposits | 482781 |  |  | 416247 |  |  |
| &nbsp;&nbsp;&nbsp;Other | 14695 |  |  | 12858 |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders' equity | 194958 |  |  | 220763 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $2054964 |  |  | $2032874 |  |  |
| Net interest income (FTE) |  | $61537 |  |  | $53859 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net yield on interest earning assets (FTE)** |  |  | **3.18%** |  |  | **2.87%** |

---

------

**SELECTED FINANCIAL DATA (UNAUDITED)**

(Dollars in thousands except per share amounts)

---

| | | | |
|:---|:---|:---|:---|
| | Year Ended | Year Ended | Year Ended |
| | December 31<br>2022 | December 31<br>2021 | December 31<br>2020 |
| **PER SHARE** |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic earnings | $2.95 | $2.48 | $1.37 |
| &nbsp;&nbsp;&nbsp;Diluted earnings | $2.91 | $2.45 | $1.34 |
| &nbsp;&nbsp;&nbsp;Dividends | $1.09 | $1.08 | $1.08 |
| &nbsp;&nbsp;&nbsp;Tangible book value | $18.25 | $21.61 | $21.29 |
| &nbsp;&nbsp;&nbsp;Quoted market value |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;High | $26.25 | $29.00 | $24.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Low | $21.00 | $19.45 | $15.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Close <sup>(1)</sup> | $23.50 | $25.50 | $19.57 |
| &nbsp;&nbsp;Common shares outstanding <sup>(1)</sup> | 7559421 | 7532641 | 7997247 |
| &nbsp;&nbsp;&nbsp;Average number of common shares outstanding | 7549878 | 7853398 | 7959705 |
| &nbsp;&nbsp;&nbsp;Average number of diluted common shares outstanding | 7647612 | 7965961 | 8106091 |
| **PERFORMANCE RATIOS** |  |  |  |
| &nbsp;&nbsp;&nbsp;Return on average total assets | 1.08% | 0.96% | 0.57% |
| &nbsp;&nbsp;&nbsp;Return on average shareholders' equity | 11.41% | 8.83% | 4.93% |
| &nbsp;&nbsp;&nbsp;Return on average tangible shareholders' equity | 15.17% | 11.31% | 6.34% |
| &nbsp;&nbsp;&nbsp;Net interest margin yield (FTE) | 3.18% | 2.87% | 2.96% |
| **ASSETS UNDER MANAGEMENT** <sup>(1)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans sold with servicing retained | $264206 | $278844 | $301377 |
| &nbsp;&nbsp;&nbsp;Assets managed by Isabella Wealth | $513918 | $516243 | $443967 |
| &nbsp;&nbsp;&nbsp;Total assets under management | $2808391 | $2827245 | $2702722 |
| **ASSET QUALITY** <sup>(1)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;Nonaccrual status loans | $457 | $1245 | $5313 |
| &nbsp;&nbsp;&nbsp;Performing troubled debt restructurings | $21069 | $25276 | $22200 |
| &nbsp;&nbsp;&nbsp;Foreclosed assets | $439 | $211 | $527 |
| &nbsp;&nbsp;&nbsp;Net loan charge-offs (recoveries) | $(264) | $123 | $(140) |
| &nbsp;&nbsp;&nbsp;Nonperforming loans to gross loans | 0.04% | 0.10% | 0.43% |
| &nbsp;&nbsp;&nbsp;Nonperforming assets to total assets | 0.05% | 0.08% | 0.31% |
| &nbsp;&nbsp;&nbsp;Allowance for loan and lease losses to gross loans | 0.78% | 0.70% | 0.79% |
| **CAPITAL RATIOS** <sup>(1)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders' equity to assets | 9.17% | 10.39% | 11.17% |
| &nbsp;&nbsp;&nbsp;Tier 1 leverage | 8.61% | 7.97% | 8.37% |
| &nbsp;&nbsp;&nbsp;Common equity tier 1 capital | 12.91% | 12.07% | 12.97% |
| &nbsp;&nbsp;&nbsp;Tier 1 risk-based capital | 12.91% | 12.07% | 12.97% |
| &nbsp;&nbsp;&nbsp;Total risk-based capital | 15.79% | 14.94% | 13.75% |

---

<sup>(1)</sup> At end of period

------

**SUPPLEMENTAL BALANCE SHEET DATA (UNAUDITED)**

(Dollars in thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | March 31<br>2022 | December 31<br>2021 |
| Commercial | $740920 | $730504 | $772567 | $727614 | $807439 |
| Agricultural | 104314 | 96850 | 94726 | 88169 | 93955 |
| Residential real estate | 340885 | 334412 | 329795 | 328559 | 326361 |
| Consumer | 78054 | 74385 | 74822 | 74029 | 73282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross loans** | $**1264173** | $**1236151** | $**1271910** | $**1218371** | $**1301037** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | March 31<br>2022 | December 31<br>2021 |
| Noninterest bearing demand deposits | $494346 | $510127 | $488110 | $461473 | $448352 |
| Interest bearing demand deposits | 372155 | 368537 | 370284 | 387187 | 364563 |
| Savings deposits | 625734 | 651129 | 635397 | 635195 | 596662 |
| Certificates of deposit | 251541 | 260741 | 265477 | 279708 | 297696 |
| Internet certificates of deposit | 499 | 499 | 598 | 598 | 3066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total deposits** | $**1744275** | $**1791033** | $**1759866** | $**1764161** | $**1710339** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | March 31<br>2022 | December 31<br>2021 |
| U.S. Treasury | $208701 | $206791 | $214474 | $218268 | $209703 |
| States and political subdivisions | 117512 | 114000 | 119649 | 114015 | 121205 |
| Auction rate money market preferred | 2342 | 2479 | 2497 | 2867 | 3242 |
| Mortgage-backed securities | 39070 | 41042 | 45796 | 49578 | 56148 |
| Collateralized mortgage obligations | 205728 | 209720 | 167572 | 152441 | 92301 |
| Corporate | 7128 | 7201 | 7602 | 7750 | 8002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Available-for-sale securities, at fair value** | $**580481** | $**581233** | $**557590** | $**544919** | $**490601** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | March 31<br>2022 | December 31<br>2021 |
| Securities sold under agreements to repurchase without stated maturity dates | $57771 | $52479 | $47247 | $51353 | $50162 |
| Federal Home Loan Bank advances |  |  | 10000 | 10000 | 20000 |
| Subordinated debt, net of unamortized issuance costs | 29245 | 29225 | 29203 | 29181 | 29158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total borrowed funds** | $**87016** | $**81704** | $**86450** | $**90534** | $**99320** |

---

------

**SUPPLEMENTAL STATEMENTS OF INCOME DATA (UNAUDITED)**

(Dollars in thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended <br> December 31 | Three Months Ended <br> December 31 | Year Ended <br>December 31 | Year Ended <br>December 31 |
| | 2022 | 2021 | 2022 | 2021 |
| Service charges and fees |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ATM and debit card fees | $1267 | $1318 | $4774 | $4600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service charges and fees on deposit accounts | 653 | 621 | 2566 | 2139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Freddie Mac servicing fee | 163 | 175 | 669 | 747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net mortgage servicing rights income (loss) | (42) | (56) | 435 | (184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other fees for customer services | 74 | 67 | 286 | 312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total service charges and fees | 2115 | 2125 | 8730 | 7614 |
| Wealth management fees | 788 | 797 | 3005 | 3071 |
| Earnings on corporate owned life insurance policies | 229 | 223 | 884 | 800 |
| Net gain on sale of mortgage loans | 63 | 235 | 631 | 1694 |
| Gains from redemption of corporate owned life insurance policies |  | 121 | 57 | 271 |
| Other | 77 | 107 | 359 | 372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest income** | $**3272** | $**3608** | $**13666** | $**13822** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended <br> December 31 | Three Months Ended <br> December 31 | Year Ended <br>December 31 | Year Ended <br>December 31 |
| | 2022 | 2021 | 2022 | 2021 |
| Compensation and benefits | $6407 | $6056 | $24887 | $23749 |
| Furniture and equipment | 1624 | 1413 | 6006 | 5462 |
| Occupancy | 878 | 935 | 3691 | 3661 |
| Other |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit, consulting, and legal fees | 609 | 513 | 2358 | 2066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ATM and debit card fees | 424 | 458 | 1909 | 1810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing costs | 244 | 256 | 1056 | 939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan underwriting fees | 364 | 221 | 1004 | 849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Donations and community relations | 258 | 253 | 923 | 705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Memberships and subscriptions | 222 | 215 | 876 | 877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Director fees | 192 | 198 | 790 | 703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FDIC insurance premiums | 143 | 161 | 537 | 690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other | 557 | 518 | 2783 | 2183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other noninterest expenses | 3013 | 2793 | 12236 | 10822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest expenses** | $**11922** | $**11197** | $**46820** | $**43694** |

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<br>