Isabella Bank Corporation reported fourth quarter 2024 net income of $4.0 million, or $0.54 per diluted share, an increase from $3.8 million, or $0.51 per diluted share, in the same quarter of 2023. Core earnings for the quarter totaled $3.9 million, or $0.52 per diluted share, up from $3.8 million, or $0.50 per diluted share, in the prior year period. For the full year 2024, net income was $13.9 million, or $1.86 per diluted share, and core earnings were $15.0 million, or $2.01 per diluted share.
The company's net interest margin (NIM) expanded to 2.99% in the fourth quarter, up from 2.83% in the fourth quarter of 2023 and 2.98% in the prior quarter. The yield on loans increased to 5.67% from 5.20% in the same period last year, driven by higher rates on new loans and the repricing of fixed-rate commercial loans. Approximately 40% of commercial loans were fixed at rates lower than current market rates, with the majority expected to reprice to variable rates over the next four years.
Total loans remained steady at $1.42 billion, with core loans, excluding advances to mortgage brokers, growing by $12.4 million, or 4% on an annualized basis. This growth was primarily in residential loans, which increased by $11.0 million, and commercial and industrial loans, which rose by $4.3 million. The allowance for credit losses increased by $260 thousand to $12.9 million, reflecting core loan growth and the migration of some commercial loans to a special mention risk rating.
Noninterest income increased to $4.0 million from $3.5 million in the fourth quarter of 2023, with wealth management income growing by $119 thousand, or 13%, due to higher assets under management. Total deposits decreased by $34.8 million to $1.75 billion, primarily due to seasonal outflows from businesses and municipalities. Tangible book value per share was $21.82 as of December 31, 2024, and the company repurchased 27,608 shares for $657 thousand during the quarter.
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