Isabella Bank Corporation Q2 net income $3.3 million
Staff Writer |
Isabella Bank Corporation announced the corporation's earnings results for the second quarter of 2018.
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The corporation reported net income of $3.3 million or earnings per common share of $0.42 for the second quarter of 2018.
Net income for the three and six month periods ended June 30, 2018 was $3.3 million and $6.8 million, respectively. Net income for the same periods of 2017 was $3.8 million and $7.0 million, respectively.
Interest income for the first six months of 2018 increased when compared to the same period of 2017 as the result of strong loan growth, which totaled $103.3 million during the past 12 months.
As of June 30, 2018, total assets were $1.8 billion and assets under management were $2.6 billion.
Assets under management include $257.9 million of loans sold and serviced, and $494.5 million of assets managed by the corporation's Investment and Trust Services Department, in addition to assets on the consolidated balance sheet.
Total assets under management have increased $88.2 million over the past 12 months.
Loans outstanding as of June 30, 2018 totaled $1.2 billion and increased 5.4% during the second quarter of 2018.
The corporation's loan portfolio grew by $103.3 million or 9.8% during the prior 12 months.
This growth was largely driven by the commercial and agricultural loan portfolio which increased $85.3 million during this time period. Also contributing to this growth were increases in residential real estate and consumer loans of $17.9 million.
While total deposits declined by $23.1 million during the second quarter of 2018, ending the quarter at $1.3 billion, total deposits grew $9.5 million during the first six months of 2018 and $64.6 million during the past 12 months.
The growth over the past 12 months was largely related to the demand deposit base as well as certificates of deposit. Product pricing and the high level of customer service continue to attract new business.
The corporation's banking subsidiary, Isabella Bank, continues to be designated as a "well capitalized" institution as its capital ratios exceeded the minimum requirements for this designation.
As of June 30, 2018, the Bank's Tier 1 Leverage Ratio was 8.1%, Tier 1 Capital Ratio was 11.3% and Total Capital Ratio was 11.9%.
From a consolidated perspective, the corporation's Tier 1 Leverage Ratio was 8.7%, Tier 1 Capital Ratio was 12.1% and Total Capital Ratio was 12.8% as of June 30, 2018.
During the second quarter of 2018, the corporation paid a $0.26 per common share cash dividend which represented a 4.0% increase over the cash dividends paid in the second quarter of 2017.
Based on the corporation's closing stock price of $26.65 as of June 29, 2018, the annualized cash dividend yield was 3.9%. ■