Isabella Bank (ISBA) investor relations material

Executive summary

• Net income for Q1 2026 was $4.99 million ($0.68 per diluted share), up 26% year-over-year from $3.95 million ($0.53 per share) in Q1 2025, reflecting improved net interest and noninterest income.

• Total assets rose $42.5 million to $2.25 billion as of March 31, 2026, driven by higher interest-bearing cash and loan growth, especially in commercial and residential real estate portfolios.

• Deposits increased by $40.2 million to $1.86 billion, with growth in money market and savings accounts offsetting declines in noninterest-bearing and certificate of deposit balances.

• Tangible book value per share increased to $25.32, and robust liquidity and capital positions were maintained.

• Stock performance benefited from uplisting to Nasdaq in May 2025.

Financial highlights

• Net interest income grew to $16.9 million in Q1 2026 from $14.5 million in Q1 2025; net interest margin (FTE) improved to 3.33% from 3.06%.

• Noninterest income rose to $4.4 million, with increases in service charges, wealth management fees, and BOLI policy earnings.

• Noninterest expenses increased to $14.7 million from $13.3 million year-over-year, mainly due to higher compensation, benefits, and professional services.

• Provision for credit losses was $604,000, reflecting loan growth and higher loss rates; net charge-offs totaled $253,000.

• Book value per share was $31.90; tangible book value per share was $25.32 at quarter-end.

Outlook and guidance

• Management expects continued strong credit quality and robust liquidity, with capital ratios well above regulatory minimums.

• Most new residential loan originations are adjustable-rate, supporting balance sheet stability amid interest rate changes.

• Management remains focused on initiatives to drive noninterest income and attract new customers.

• Forward-looking statements caution about economic, regulatory, and market uncertainties.