Isabella Bank Corporation achieved record net income of $6.6 million for the third quarter of 2026, a significant increase from $5.2 million in the prior year period. The results were primarily driven by substantial expansion in the net interest margin and higher yields on the loan portfolio.
Key Highlights
- Net interest margin (NIM) expanded to 3.71%, up from 3.15% in the third quarter of 2025, benefiting from loan repricing and lower deposit costs.
- Average loan yields increased to 5.95%, up from 5.78% year-over-year, as variable-rate commercial loans continued to reprice into a higher rate environment.
- Total deposits grew 4.0% year-to-date to $1.9 billion, supported by a $141.8 million increase in money market account balances.
- Asset quality metrics were mixed, as nonaccrual loans rose to $7.5 million from $4.6 million at year-end 2025, though past due accounts (30-89 days) improved to 0.10%.