<span item_type="fundamental" item_id="aba54dbdba4c141d1c953358b8e52d01" counter_id="ST/US/ISBA" env="prod"></span><span item_type="announcement" item_id="612881263437946625" env="prod"></span><p>Revenue: As of FY2025 Q4, the actual value is USD 21.17 M.</p><p>EPS: As of FY2025 Q4, the actual value is USD 0.64, missing the estimate of USD 0.74.</p><p>EBIT: As of FY2025 Q4, the actual value is USD -9.911 M.</p><p></p><h3>Financial Performance Overview</h3><h4>Net Income</h4><ul><li>Net income for the fourth quarter of 2025 was $4.7 million, an increase of $0.7 million compared to $4.0 million for the fourth quarter of 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>For the year ended December 31, 2025, net income was $18.9 million, marking a 36% increase from $13.9 million for the year ended December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Net Interest Income</h4><ul><li>Net interest income for the fourth quarter of 2025 was $16.7 million, up from $14.6 million in the fourth quarter of 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>For the year ended December 31, 2025, net interest income was $62.5 million, an increase from $55.8 million for the year ended December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Provision for Credit Losses</h4><ul><li>The provision for credit losses in the fourth quarter of 2025 was $434,000, which included a $578,000 increase in the Allowance for Credit Losses (ACL) on loans, net charge-offs totaling $34,000, and a $178,000 decrease in the reserve for unfunded commitments.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>This compares to a provision for loan losses of $376,000 in the fourth quarter of 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>For the year-to-date 2025, the provision for credit loss was a credit of -$563,000, in contrast to a provision of $1.9 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Recoveries in 2025 totaled $2.3 million, with $1.6 million related to previously charged-off overdrawn deposit accounts.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Noninterest Income</h4><ul><li>Noninterest income totaled $4.4 million in the fourth quarter of 2025, an increase from $4.0 million in the fourth quarter of 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span><ul><li>Service charges and fees increased by $275,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Earnings on Bank-Owned Life Insurance (BOLI) policies increased by $226,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Wealth management fees grew by $59,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul></li><li>For the year ended December 31, 2025, noninterest income was $16.0 million, up $1.4 million from $14.6 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span><ul><li>Increased earnings on BOLI policies contributed $618,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Service charges and fees increased by $583,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Wealth management fees increased by $206,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul></li></ul><h4>Noninterest Expenses</h4><ul><li>Noninterest expenses were $13.9 million in the fourth quarter of 2025, compared to $13.3 million in the fourth quarter of 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span><ul><li>Other professional services increased by $231,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Compensation and benefit expenses increased by $192,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul></li><li>For the year ended December 31, 2025, noninterest expenses were $55.0 million, up $2.8 million from $52.1 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span><ul><li>Increased compensation and benefits accounted for $1.5 million of the increase.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Other professional services increased by $1.0 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul></li></ul><h4>Income Tax Expense</h4><ul><li>Income tax expense for the fourth quarter of 2025 was $2.1 million, compared to $825,000 in the fourth quarter of 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span><ul><li>The effective tax rate (ETR) was 31% for Q4 2025 and 17% for Q4 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Q4 2025 ETR included a one-time expense of $942,000 to write-off deferred tax assets.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul></li><li>For the year ended December 31, 2025, income tax expense was $5.2 million, compared to $2.5 million for the year ended December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span><ul><li>The ETR was 22% for 2025 and 15% for 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>2025 income tax expense included a one-time expense of $195,000 due to taxes owed from lifetime earnings on surrendered BOLI policies.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul></li></ul><h3>Financial Condition Metrics</h3><h4>Total Assets</h4><ul><li>As of December 31, 2025, total assets were $2.2 billion, an increase of $123.2 million compared to December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Loans</h4><ul><li>As of December 31, 2025, total loans were $1.5 billion, increasing $112.8 million compared to December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Loans, excluding advances to mortgage brokers, grew $99 million, or 7%.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Adjusted loans grew $99.2 million since year-end 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Advances to mortgage brokers increased $13.6 million in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Commercial real estate grew $48.0 million, and commercial and industrial portfolios grew $19.8 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Residential mortgages increased $47.0 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>The consumer loan portfolio declined -$18.1 million during 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Available-for-Sale (AFS) Securities</h4><ul><li>AFS securities at fair value were $497.8 million as of December 31, 2025, an increase of $8.8 million compared to December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Net unrealized losses on AFS securities totaled $9.9 million as of December 31, 2025, compared to $26.5 million at December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Net unrealized losses as a percentage of fair value decreased to 2% from 5%.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Deposits</h4><ul><li>Total deposits were $1.8 billion at December 31, 2025, an increase of $72.6 million, or 4%, from December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Interest-bearing demand deposit accounts increased by $28.6 million during 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Retail certificates of deposit accounts increased by $22.5 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Equity</h4><ul><li>Total equity was $231.4 million, or $31.60 per share, at December 31, 2025, compared to $210.3 million, or $28.32 per share, at December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Tangible book value per share (non-GAAP) was $25.01 as of December 31, 2025, compared to $21.82 as of December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Net unrealized losses in the AFS securities portfolio reduced tangible book value per share by -$1.09 and -$2.82 for the respective periods.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Share repurchases totaled 156,957 during 2025 at an average price of approximately $30.00.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h3>Operational Metrics</h3><h4>Net Interest Margin (NIM)</h4><ul><li>NIM improved to 3.16% for the year ended December 31, 2025, up from 2.90% in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>For the fourth quarter of 2025, NIM was 3.28%, up from 2.98% in the fourth quarter of 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Asset Quality</h4><ul><li>The ratio of nonperforming loans to total loans was 0.30% at December 31, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Nonaccrual loans were $4.6 million as of December 31, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Past due and accruing accounts between 30 to 89 days, as a percentage of loans, were 0.44% at December 31, 2025, compared to 0.40% at December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li><li>Allowance for credit losses (ACL) was $13.7 million at December 31, 2025, an increase of $832,000 from December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Isabella Wealth Assets Under Management (AUM)</h4><ul><li>Isabella Wealth AUM increased $49 million, or 7%, to $707 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h4>Efficiency Ratio (Non-GAAP)</h4><ul><li>The efficiency ratio was 69.11% for the year ended December 31, 2025, compared to 73.01% for the year ended December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></li></ul><h3>Outlook / Guidance</h3><p>Isabella Bank Corporation’s CEO stated that the strong financial results and stock performance in 2025 position the company well as it enters 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span> The company has also launched initiatives to strengthen noninterest income, which are already showing positive results.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/842517/000084251726000027/earningsrelease_20251231xe.htm"></span></p>

Isabella Bank | 8-K: FY2025 Q4 Revenue: USD 21.17 M