Isabella Bank Corporation reported third quarter 2024 net income of $3.3 million, or $0.44 per diluted share, compared to $4.4 million, or $0.58 per diluted share, in the same quarter of 2023. The non-GAAP measure of core earnings for the quarter totaled $4.6 million, or $0.61 per diluted share, an increase from $4.4 million, or $0.58 per diluted share, in the prior year period. This increase in core earnings represents a 31% rise over the second quarter of 2024.
The company's net interest margin (NIM) was 2.98%, a slight decrease from 2.99% in the third quarter of 2023, but an expansion from 2.85% in the previous quarter. The yield on loans expanded to 5.73% in the third quarter, up from 5.17% in the same quarter of 2023, driven by higher rates on new loans and repricing fixed-rate commercial loans. Total loans grew by $42.6 million to $1.42 billion, primarily due to a $36.9 million increase in advances to mortgage brokers.
Asset quality metrics showed improvement, with the allowance for credit losses decreasing by $460,000 to $12.6 million, largely due to the recovery of two previously charged-off loans totaling $314,000. Nonaccrual loan balances decreased by $447,000 to $547,000 at quarter-end. Total deposits increased by $59.5 million to $1.78 billion, consistent with seasonal patterns. Tangible book value per share improved to $22.14 as of September 30, 2024, from $20.60 on June 30, 2024, and the company repurchased 53,000 shares for $1.0 million during the quarter.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.