Isabella Bank Corporation Reports Second Quarter 2026 Earnings

Isabella Bank Corporation Reports Second Quarter 2026 Earnings MOUNT PLEASANT, MI / ACCESS Newswire / July 23, 2026 / Isabella Bank Corporation (Nasdaq:ISBA) ("Isabella" or the "Company") reported net income of $5.0 million, or $0.69 per diluted share, for the second quarter 2026 compared to $5.0 million, or $0.68 per diluted share, for the second quarter 2025.

SECOND QUARTER 2026 HIGHLIGHTS

Loans grew $30.7 million during the quarter

Net interest margin (NIM) improved to 3.54%, up from 3.14% in second quarter 2025

Merger agreement signed with Grand River Commerce, Inc. and its banking subsidiary, Grand River Bank

Launched a successful at-the-market stock offering, increasing equity by $11.7 million

Added to the Russell 2000 ® Index

"Isabella Bank Corporation had another strong quarter, driven by continued loan growth and margin expansion," said CEO Jerome Schwind. "We also had a series of important events during the quarter aligned with our long-term strategy that will fuel our continued disciplined growth.

"We announced an agreement to acquire Grand River Commerce and Grand River Bank," Schwind added. "We believe this acquisition will enable us to enter the fast-growing Grand Rapids market with a strong portfolio and customer base. We look forward to welcoming the customers of Grand River Bank to the Isabella Bank family upon completion of the proposed transaction.

"We also launched a successful at-the-market offering of our common stock and were added to the Russell 2000 ® Index in June. In May, we celebrated one year of being listed on Nasdaq by ringing the closing bell," he added.

FINANCIAL CONDITION (June 30, 2026 to December 31, 2025 comparison)

Total assets increased $10.2 million, or 0.5%, to $2.2 billion as of June 30, 2026. This increase was primarily due to an increase of $53.3 million in loans and an increase of $15.7 million in cash and cash equivalents. These increases were offset by a $58.5 million decline in available-for-sale (AFS) securities.

The AFS securities portfolio decreased $58.5 million, or 11.8%, to $439.3 million as of June 30, 2026. The decrease was a result of maturities and principal paydowns of $121.8 million, offset by $64.4 million in purchases. Net unrealized losses on AFS securities were $10.8 million as of June 30, 2026, compared to $9.9 million at December 31, 2025. Net unrealized losses as a percentage of the amortized cost of AFS securities were consistent compared to December 31, 2025, at 2%.

Loans increased $53.3 million, or 3.5%, to $1.6 billion as of June 30, 2026, primarily by growth in the commercial real estate and residential real estate portfolios of $33.5 million and $22.1 million, respectively. Most residential originations were adjustable rate products, which are retained on the balance sheet rather than sold in the secondary market. The consumer loan portfolio continues to decrease amid declining demand, competition, and adherence to credit quality standards.

The allowance for credit losses (ACL) increased $752,000, or 5.5%, to $14.5 million as of June 30, 2026. The increase is due to loan growth and an increase in loss rates driven by loans charged off during the year. Nonaccrual loans were $7.8 million as of June 30, 2026 compared to $4.6 million at December 31, 2025. Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.06% at June 30, 2026, compared to 0.44% at year-end 2025.

Total deposits decreased $9.7 million, or 0.5%, to $1.8 billion as of June 30, 2026. The decline was a result of a $20.7 million decline in certificates of deposit, a $14.0 million decline in interest bearing demand deposits, and a $12.3 million decline in noninterest bearing demand deposits. These declines were offset by a $20.4 million increase in savings deposits and a $16.8 million increase in money market accounts.

Total equity was $248.7 million, or $32.60 per share, at June 30, 2026 compared to $231.4 million, or $31.60 per share, as of December 31, 2025. The increase in total equity is primarily due to the issuance of 303,371 shares as part of the previously announced at-the-market stock offering, increasing total equity by $11.7 million. Tangible book value per share (non-GAAP) was $26.27 as of June 30, 2026, compared to $25.01 as of December 31, 2025. Net unrealized losses in the AFS securities portfolio reduced tangible book value per share (non-GAAP) by $1.14 and $1.09 for the respective periods.

RESULTS OF OPERATIONS (for the three and six months ended June 30, 2026, and 2025, unless otherwise noted)

Net income for the three months ended June 30, 2026 was $5.0 million, or $0.69 per diluted share, compared with $5.0 million, or $0.68 per diluted share, for the three months ended June 30, 2025. Net income for the six months ended June 30, 2026 was $10.0 million, or $1.37 per diluted share, compared with $9.0 million, or $1.21 per diluted share, for the six months ended June 30, 2025.

Net interest income was $18.1 million for the three months ended June 30, 2026 and $15.1 million for the three months ended June 30, 2025, representing 3.54% and 3.14% of earning assets, or NIM on a fully tax equivalent basis (non-GAAP), respectively. The book yield from securities was 2.82% and 2.38% for the three months ended June 30, 2026 and 2025, respectively. The yield on loans increased to 5.86% for the three months ended June 30, 2026 from 5.71% for the three months ended June 30, 2025. The increase in loan yields was primarily due to higher rates on new loans and variable rate commercial loans that continue to reprice. The cost of interest-bearing liabilities for the three months ended June 30, 2026 decreased to 2.09% from 2.24% for the three months ended June 30, 2025 primarily due to lower rates on money market and certificate of deposit products.

Net interest income was $35.0 million for the six months ended June 30, 2026 and $29.7 million for the six months ended June 30, 2025, representing 3.43% and 3.10% of earning assets, or NIM on a fully tax equivalent basis (non-GAAP), respectively. The book yield from securities was 2.67% and 2.31% for the six months ended June 30, 2026 and 2025, respectively. The yield on loans increased to 5.82% for the six months ended June 30, 2026 from 5.72% for the six months ended June 30, 2025. The increase in loan yields was primarily due to higher rates on new loans and variable rate commercial loans that continue to reprice. The cost of interest-bearing liabilities for the six months ended June 30, 2026 decreased to 2.12% from 2.25% for the six months ended June 30, 2025 primarily due to lower rates on money market and certificate of deposit products.

The provision for credit losses was $895,000 for the three months ended June 30, 2026, driven by a $465,000 increase in the ACL on loans and net charge offs totaling $384,000. The provision for credit losses for the three months ended June 30, 2025 was a credit of $1.1 million, which reflects $1.4 million in net recoveries, offset by a $242,000 increase in the ACL on loans and an increase in the reserve for unfunded commitments. Recoveries of $1.6 million during second quarter 2025 were related to overdrawn deposit accounts from a single customer that were charged off during the third quarter of 2024.

The provision for credit losses was $1.5 million for the six months ended June 30, 2026, as compared to a credit of $1.2 million for the six months ended June 30, 2025. Net charge offs for the six months ended June 30, 2026 totaled $637,000, while there were net recoveries of $1.5 million for the six months ended June 30, 2025.

Noninterest income for the three months ended June 30, 2026 and 2025 was $4.4 million and $3.7 million, respectively. Service charges and fees increased $479,000 as a result of internal initiatives designed to align fees with the market. Earnings on bank-owned life insurance (BOLI) policies increased $134,000 compared to second quarter 2025 due to additional investments in a separate account BOLI in 2025. Wealth management fees grew $132,000 due to growth in assets under management since second quarter 2025.

Noninterest income for the six months ended June 30, 2026 and 2025 was $8.7 million and $7.2 million, respectively. Service charges and fees increased $877,000 as a result of internal initiatives designed to align fees with the market. Wealth management fees grew $261,000 due to growth in assets under management. Earnings on BOLI policies increased $210,000 due to additional investments in a separate account BOLI in 2025. Other noninterest income in 2026 includes a $137,000 gain related to a death benefit from a BOLI policy.

Noninterest expenses for the three months ended June 30, 2026 and 2025 were $15.4 million and $13.7 million, respectively. Compensation and benefit expenses increased $651,000, reflecting annual merit increases, incentives, and higher medical insurance claims. Occupancy and equipment increased $240,000 and merger-related expenses of $505,000 were included in noninterest expenses in second quarter 2026.

Noninterest expenses for the six months ended June 30, 2026 and 2025 were $30.0 million and $27.0 million, respectively. Compensation and benefit expenses increased $1.2 million for the same reasons as the quarterly comparison. Occupancy and equipment expenses increased $480,000 and merger-related expenses during second quarter 2026 totaled $505,000.

Income tax expense for both of the three months ended June 30, 2026 and 2025 was $1.1 million, while the effective tax rate (ETR) was 18% for both periods. Income tax expense for both of the six months ended June 30, 2026 and 2025 was $2.1 million, while the ETR was 17% for the six months ended June 30, 2026 and 19% for the six months ended June 30, 2025. The ETR in the first six months of 2025 included a one-time tax expense totaling $166,000 due to the taxes owed from the lifetime earnings on BOLI policies that were surrendered during first quarter 2025. Excluding the one-time charge, the ETR was 17% for the first six months of 2025.

About Isabella Bank Corporation

Isabella Bank Corporation (Nasdaq: 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 its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Contact

Lori Peterson, Director of Marketing

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

Available Information

The Company maintains an Internet web site at ir.isabellabank.com/overview. The Company makes available, free of charge, on its web site the Company's annual reports, quarterly earnings reports, and other press releases.

The Company routinely posts important information for investors on its website ( www.isabellabank.com and, more specifically, under the News tab at ir.isabellabank.com/news). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the "SEC"). Accordingly, investors should monitor the Company's web site, in addition to following the Company's press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, the Company's website is not incorporated by reference into, and is not a part of, this document.

Forward-Looking Statements

Information in this press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. The Company intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result", "expect", "could", "may", "plan", "believe", "estimate", "anticipate", "strategy", "trend", "forecast", "outlook", "project", "intend", "assume", "outcome", "continue", "remain", "potential", "opportunity", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Factors that could cause such differences include, but are not limited to: (i) uncertainty or perceived instability in the banking industry as a whole; (ii) increased competition for deposits among traditional and nontraditional financial services companies, and related changes in deposit customer behavior; (iii) the persistent inflationary pressures in the United States, and its impact on market interest rates, the labor market, the economy as a whole, and credit quality; (iv) elevated asset prices; (iv) the Company's ability to effectively execute its expansion strategy and manage its growth, including identifying and consummating suitable acquisitions; (v) risks relating to the proposed acquisition of of Grand River including, without limitation: the timing of consummation of the proposed transaction between Isabella and Grand River; the risk that any condition to closing of the proposed acquisition may not be satisfied or waived; the risk that the Merger may not be completed at all; the diversion of management time on issues related to the proposed acquisition; the expected impact of the proposed acquisition and on the combined entities' operations, financial condition, and financial results; the businesses of Isabella and Grand River may not be combined successfully, or such combination may take longer to accomplish than expected; the cost savings from the proposed acquisition may not be fully realized or may take longer to realize than expected; operating costs, customer loss and business disruption following the proposed acquisition, including adverse effects on relationships with employees, may be greater than expected; the risk of deposit and customer attrition; increased competitive pressures on solicitations of customers by competitors; regulatory approvals of the proposed acquisition may not be obtained, or adverse conditions may be imposed in connection with regulatory approvals of the proposed acquisition; and the risk that the Grand River shareholders may not approve the proposed acquisition; (vi) risks associated with concentrations of the Company's business in market areas, loans secured by real estate, and public funds deposits as a percentage of total deposits; (vii) adverse changes in customer spending, borrowing, and savings habits; (viii) risks associated with the Company's commercial loan portfolio and agricultural loan portfolio; (ix) risks related to the significant amount of credit that the Company has extended to a limited number of borrowers and in a limited geographic area; (x) damage to the Company's reputation resulting from adverse publicity, regulatory actions, litigation, operational failures, and the failure to meet client expectations and other facts; (xi) the Company's ability to keep pace with technological change or difficulties that may experienced when implementing new technologies; (xii) cybersecurity risk, including cyber incidents or other failures, disruptions or breaches of the Company's operational or security systems or infrastructure, or those of third-party vendors or other service providers, including as a result of a cyber-attack; (xiii) costs and effects of litigation, investigations or similar matters to which the Company may be subject; (xiv) natural disasters, severe weather, acts of god, military conflicts (including the conflicts in the Middle East, the possible expansion of such conflicts and potential geopolitical and economic consequences), acts of terrorism, domestic civil unrest, geopolitical instability, public health outbreaks (such as coronavirus), other international or domestic calamities, and other events beyond the Company's control, including as a result of in the policies of the current U.S. presidential administration or Congress; (xv) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; (xvi) compliance with governmental and regulatory requirements, including the Dodd-Frank Act Wall Street Reform and Consumer Protection Act, Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, and others relating to banking, consumer protection, securities and tax matters; (xvii) changes in accounting principles and standards; (xviii) changes in the laws, rules, regulations, interpretations or policies that apply to the Company's business and operations, and any additional regulations, or repeals that may be forthcoming as a result thereof, which could cause the Company to incur additional costs and adversely affect the Company's business environment, operations and financial results; and (xix) the Company's ability to navigate the uncertain impacts of current and future governmental monetary and fiscal policies, including the current and future policies of the Board of Governors of the Federal Reserve System and as a result of initiatives of the Trump administration. These forward-looking statements are based on current information and/or management's good faith belief as to future events. Although the Company believes the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding risks and uncertainties to which the Company's business and future financial performance are subject is contained in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of such documents, and other documents the Company files or furnishes with the SEC from time to time, which are available on the SEC's website, www.sec.gov. Due to these and other possible uncertainties and risks, the Company cautions you not to unduly rely on forward-looking statements. The inclusion of this forward-looking information should not be construed as a representation by the Company or by any person that the future events, plans or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Any forward-looking statement speaks only as to the date on which it is made, and the Company undertakes no obligation to update any forward-looking statement to reflect developments occurring after the statement is made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company believes these non-GAAP financial measures provide both management and investors with a more complete understanding of the Company's financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

The Company classifies a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in the statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

Table Index

Consolidated Financial Schedules (Unaudited)

Selected Financial Data

Consolidated Balance Sheets

Consolidated Statements of Income

Average Balances, Interest Rate, and Net Interest Income

Average Balances, Interest Rate, and Net Interest Income (continued)

Reconciliation of Non-GAAP Financial Measures

SELECTED FINANCIAL DATA (UNAUDITED)

The following table outlines selected financial data as of, and for the:

Three Months Ended

Six Months Ended

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

June 30,

2026

June 30,

2025

0.69

0.68

0.64

0.71

0.68

1.37

1.21

0.69

0.68

0.64

0.71

0.68

1.37

1.21

0.28

0.56

32.60

31.90

31.60

30.94

29.95

32.60

29.95

26.27

25.32

25.01

24.37

23.39

26.27

23.39

39.50

45.67

50.00

35.25

30.15

39.50

30.15

7,628,809

7,333,319

7,322,207

7,350,567

7,361,684

7,628,809

7,361,684

7,337,378

7,329,058

7,345,610

7,371,652

7,398,109

7,332,078

7,413,974

0.91

0.85

0.94

0.96

0.91

0.87

8.50

8.58

8.04

9.28

9.19

8.54

8.35

10.66

10.79

10.16

11.83

11.78

10.72

10.74

3.54

3.33

3.28

3.15

3.14

3.43

3.10

67.84

68.50

65.02

67.62

72.14

68.16

72.26

87.83

83.82

84.43

74.36

75.57

87.83

75.57

11.20

10.39

10.47

10.06

10.23

11.20

10.23

9.23

8.43

8.47

8.10

8.17

9.23

8.17

ASSETS UNDER MANAGEMENT

750,840

701,510

707,118

679,724

678,959

750,840

678,959

7,790

4,418

4,578

3,443

1,164

7,790

1,164

620

573

938

1,018

667

620

667

384

253

(1,432

)

637

(1,484

)

0.02

0.00

0.01

(0.10

0.04

(0.11

0.49

0.28

0.30

0.24

0.09

0.49

0.09

0.38

0.22

0.25

0.20

0.09

0.38

0.09

0.91

0.90

0.89

0.92

0.93

0.91

0.93

9.59

8.89

8.84

8.71

9.04

9.59

9.04

12.34

11.71

11.73

12.37

12.46

12.34

12.46

12.34

11.71

11.73

12.37

12.46

12.34

12.46

14.63

14.01

14.41

15.20

15.34

14.63

15.34

(1) At end of period

(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table F

(3) Whole shares

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

41,774

50,105

26,041

161,301

108,554

439,289

492,744

497,791

511,970

500,560

410

360

423

737

231,590

225,369

220,450

218,132

207,719

673,271

660,643

639,758

626,642

614,383

75,159

72,083

76,676

5,056

3,005

97,462

96,969

102,109

97,794

96,842

449,992

438,333

427,880

412,056

398,668

62,198

65,544

69,491

72,225

76,896

1,589,672

1,558,941

1,536,364

1,431,905

1,397,513

14,479

14,014

13,727

13,149

12,977

1,575,193

1,544,927

1,522,637

1,418,756

1,384,536

5,600

28,894

29,064

29,000

28,659

28,171

46,603

46,173

46,133

45,651

45,774

48,282

33,596

34,701

33,541

38,698

34,636

2,219,641

2,251,956

2,209,448

2,259,654

2,156,168

414,018

411,216

426,342

421,027

493,477

252,149

263,954

266,187

248,666

223,376

453,478

477,544

436,631

558,212

446,845

300,867

300,732

280,429

292,899

289,746

389,401

406,399

410,065

404,798

395,932

1,809,913

1,859,845

1,819,654

1,925,602

1,849,376

116,012

113,530

68,000

62,022

43,208

45,000

29,559

29,537

29,514

29,492

29,469

145,571

143,067

142,514

91,514

72,677

15,453

15,083

15,884

15,118

13,615

1,970,937

2,017,995

1,978,052

2,032,234

1,935,668

135,079

123,251

123,204

124,284

124,607

2,532

2,522

2,366

2,373

2,331

119,844

116,790

113,849

111,172

107,949

(8,751

)

(8,602

)

(8,023

)

(10,409

)

(14,387

)

248,704

233,961

231,396

227,420

220,500

2,219,641

2,251,956

2,209,448

2,259,654

2,156,168

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

Six Months Ended

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

June 30,

2026

June 30,

2025

22,607

21,464

21,669

20,583

19,832

44,071

39,180

2,902

2,489

2,539

2,478

2,513

5,391

4,616

470

499

509

516

519

969

1,059

125

139

285

173

602

498

1,235

253

775

735

26,216

25,129

25,278

24,882

23,242

51,345

45,875

6,778

7,112

7,380

8,012

7,391

13,890

14,854

1,007

736

587

441

324

1,743

665

133

317

132

176

170

304

266

267

266

570

532

8,132

8,247

8,550

8,720

8,113

16,379

16,221

18,084

16,882

16,728

16,162

15,129

34,966

29,654

895

604

434

209

(1,099

)

1,499

(1,206

)

17,189

16,278

16,294

15,953

16,228

33,467

30,860

2,550

2,372

2,461

2,352

2,071

4,922

4,045

1,216

1,108

1,110

1,074

1,084

2,324

2,063

434

448

485

468

300

882

672

160

400

323

376

184

560

357

4,375

4,361

4,444

4,308

3,686

8,736

7,214

8,147

7,928

7,532

7,630

7,496

16,075

14,879

2,890

2,840

2,663

2,628

2,650

5,730

5,250

807

1,015

815

851

863

1,822

1,574

629

558

575

595

555

1,187

1,041

514

506

547

514

469

1,020

928

288

306

339

271

267

594

570

505

1,606

1,509

1,450

1,496

1,445

3,115

2,802

15,386

14,662

13,921

13,985

13,745

30,048

27,044

6,178

5,977

6,817

6,276

6,169

12,155

11,030

1,137

985

2,127

1,036

1,138

2,122

2,050

5,041

4,992

4,690

5,240

5,031

10,033

8,980

0.69

0.68

0.64

0.71

0.68

1.37

1.21

0.69

0.68

0.64

0.71

0.68

1.37

1.21

0.28

0.56

AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED)

The following schedules present the daily average amount outstanding for each major category of interest earning assets, nonearning 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 tax 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) restricted equity holdings are included in other interest earning assets.

Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

INTEREST EARNING ASSETS

1,544,323

22,607

5.86

1,501,654

21,464

5.78

1,388,684

19,832

5.71

432,520

2,902

2.69

430,376

2,489

2.35

461,483

2,513

2.18

63,607

600

3.78

67,878

637

3.81

72,869

697

3.84

5,600

4.55

5,600

5.36

5,600

125

8.94

3.67

3.54

3.83

18,079

173

3.81

64,190

602

3.75

20,487

253

4.92

2,064,131

26,346

5.12

2,069,705

25,267

4.94

1,949,129

23,420

4.81

NONEARNING ASSETS

(14,078

)

(13,680

)

(13,369

)

22,544

23,113

22,026

29,086

29,110

28,306

116,913

116,639

106,595

2,218,596

2,224,887

2,092,687

INTEREST BEARING LIABILITIES

257,088

205

0.32

266,101

294

0.45

236,076

220

0.37

452,737

2,625

2.33

464,438

2,719

2.37

449,110

2,857

2.55

302,375

503

0.67

291,413

488

0.68

286,434

544

0.76

396,481

3,445

3.49

407,483

3,611

3.59

395,450

3,770

3.82

115,713

1,007

3.49

86,885

736

3.44

41,661

324

3.11

4,396

3.86

13,444

133

3.96

11,539

132

4.53

29,545

304

4.11

29,522

266

3.61

29,455

266

3.61

1,558,335

8,132

2.09

1,559,286

8,247

2.14

1,449,725

8,113

2.24

NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY

404,805

411,011

409,262

17,462

18,653

14,158

237,994

235,937

219,542

2,218,596

2,224,887

2,092,687

18,214

17,020

15,307

3.54

3.33

3.14

(1) Includes loans held-for-sale and nonaccrual loans

(2) Average balances for available-for-sale (AFS) securities are based on amortized cost

(3) Includes FTE adjustments of $130,000, $138,000, and $178,000, respectively

(4) Includes average interest bearing deposits with other banks, net of Federal Reserve daily cash letter

(5) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table F

Six Months Ended

June 30, 2026

June 30, 2025

Average Balance

Tax Equivalent Interest

Average Yield/Rate

Average Balance

Tax Equivalent Interest

Average Yield/Rate

1,523,109

44,071

5.82

1,379,774

39,180

5.72

431,452

5,391

2.52

449,919

4,616

2.07

65,731

1,237

3.80

74,551

1,421

3.84

5,600

139

4.95

8,291

285

6.89

3.57

4.03

41,006

775

3.76

33,856

735

4.32

2,066,903

51,613

5.03

1,946,396

46,237

4.78

(13,881

)

(13,127

)

22,825

22,956

29,098

28,134

116,776

104,770

2,221,721

2,089,129

261,570

499

0.38

238,455

462

0.39

458,556

5,344

2.35

454,855

5,786

2.56

296,925

991

0.67

286,399

1,082

0.76

401,952

7,056

3.54

391,657

7,524

3.87

101,378

1,743

3.47

42,607

665

3.15

8,895

176

3.93

7,459

170

4.53

29,534

570

3.86

29,444

532

3.62

1,558,810

16,379

2.12

1,450,876

16,221

2.25

NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY

407,890

406,160

18,051

15,200

236,970

216,893

2,221,721

2,089,129

35,234

30,016

3.43

3.10

(1) Includes loans held-for-sale and nonaccrual loans

(2) Average balances for available-for-sale (AFS) securities are based on amortized cost

(3) Includes FTE adjustments of $268,000 and $362,000, respectively

(4) Includes average interest bearing deposits with other banks, net of Federal Reserve daily cash letter

(5) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table F

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Three Months Ended

Six Months Ended

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

June 30,

2026

June 30,

2025

1,589,672

1,558,941

1,536,364

1,431,905

1,397,513

1,589,672

1,397,513

75,159

72,083

76,676

5,056

3,005

75,159

3,005

1,514,513

1,486,858

1,459,688

1,426,849

1,394,508

1,514,513

1,394,508

248,704

233,961

231,396

227,420

220,500

248,704

220,500

48,282

(A)

200,422

185,679

183,114

179,138

172,218

200,422

172,218

(B)

7,628,809

7,333,319

7,322,207

7,350,567

7,361,684

7,628,809

7,361,684

(A/B)

26.27

25.32

25.01

24.37

23.39

26.27

23.39

15,386

14,662

13,921

13,985

13,745

30,048

27,044

(C)

15,386

14,662

13,921

13,985

13,745

30,048

27,043

18,084

16,882

16,728

16,162

15,129

34,966

29,654

130

138

144

178

268

362

18,214

17,020

16,866

16,306

15,307

35,234

30,016

4,375

4,361

4,444

4,308

3,686

8,736

7,214

102

185

141

22,680

21,475

21,412

20,712

19,056

44,155

37,371

(52

)

(D)

22,680

21,405

21,409

20,681

19,053

44,085

37,423

(C/D)

67.84

68.50

65.02

67.62

72.14

68.16

72.26

(1) Whole shares

SOURCE: Isabella Bank Corporation