Isabella Bank reported net income of $5.0 million, or $0.69 per diluted share, for the quarter ended June 30, 2026, essentially flat with Q2 2025. The company said net interest margin improved to 3.54% and loans increased $53.3 million year-to-date to $1.6 billion, while total assets were $2.22 billion at quarter end. Management also announced a signed merger agreement to acquire Grand River Bank and completed an at‑the‑market equity offering that raised $11.7 million.

Financial Highlights

  • Net income: $5.0 million for the three months ended June 30, 2026; diluted earnings per share: $0.69.
  • Six‑month net income: $10.0 million, or $1.37 per diluted share, for the six months ended June 30, 2026.
  • Net interest income: $18.1 million for Q2 2026; net interest margin (FTE) of 3.54% for the quarter (3.43% for six months).
  • Loan portfolio: Loans grew $53.3 million (3.5%) year‑to‑date to $1,589.7 million; loans held for investment net: $1,575.2 million at June 30, 2026.
  • Capital and equity: Total shareholders’ equity of $248.7 million ($32.60 per share) at June 30, 2026; ATM equity offering increased equity by $11.7 million.

Business Highlights

  • Loan growth driven by commercial real estate (+$33.5 million) and residential real estate (+$22.1 million); most new residential originations are adjustable-rate and retained on balance sheet.
  • Net interest margin expansion attributed to higher loan yields (5.86% for the quarter) and continued repricing of variable rate commercial loans.
  • Strategic expansion: signed merger agreement to acquire Grand River Bank to enter the Grand Rapids market and expand customer base.
  • Operational changes in deposit mix: total deposits decreased $9.7 million with declines in certificates of deposit and demand deposits offset by increases in savings and money market accounts.
  • Added to the Russell 2000 Index and celebrated one-year Nasdaq listing; completed initiatives to align service fees with the market, contributing to higher service charge income.

Original SEC Filing:

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