Isabella Bank (ISBA) Q3 2026 earnings summary

Executive summary

• Record Q3 2026 net income was $6.6M, or $0.86 diluted EPS, versus $5.2M and $0.71 YoY; results included $657K of after-tax merger expenses.

• 9M net income was $16.6M, or $2.24 diluted EPS, versus $14.2M and $1.92; 2026 included $1.1M of after-tax merger expenses.

• Assets rose 1.4% to $2.24B from year-end 2025; deposits increased 4.0% to $1.89B, while loans were nearly flat at $1.5B.

Financial highlights

• Q3 net interest income was $19.4M versus $16.2M YoY; 9M was $54.3M versus $45.8M. Q3 FTE NIM increased to 3.71% from 3.15%.

• Q3 noninterest income was $4.6M versus $4.3M; 9M was $13.3M versus $11.5M.

• Q3 noninterest expense was $15.6M versus $14.0M, including $672K merger costs; 9M expense was $45.7M versus $41.0M, including $1.2M merger costs.

• Q3 provision for credit losses was $50K versus $209K; 9M provision was $1.5M versus a $997K reversal in 2025. Net charge-offs were $844K versus net recoveries of $1.4M.

• Q3 comprehensive income was a $2.0M loss, including $8.6M of after-tax unrealized AFS losses; 9M comprehensive income was $7.3M.

Outlook and guidance

• Grand River acquisition expected to close November 2, 2026, subject to customary conditions; regulatory and shareholder approvals were received.

• Pro forma assets are projected at $2.7B; consideration is structured as 65% stock and 35% cash, subject to shareholder election proration.

• Acquisition intended to expand the customer base and West Michigan presence; integration priorities include customer service and communication with customers and employees.