Attached files
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| 8-K - FORM 8-K - ISABELLA BANK Corp | k50061e8vk.htm |
Exhibit 99.1
ISBA Announces 2010 Earnings
Mt. Pleasant, Michigan, February 10, 2011 — Richard J. Barz, Chief Executive Officer of
Isabella Bank Corporation (ISBA), announced today that the Corporation’s net income for year-end
2010 was $9.0 million, a 16.0% increase over the prior year. Two items that significantly
contributed to the increase in net income were a $1.75 million increase in net interest income and
a $1.24 million decline in the provision for loan losses. The impact of these items was offset by
a $576,000 decline in the extraordinary gains that were recorded in 2009 from the sale of loans and
investments.
At December 31, 2010, the Corporation’s total assets were $1.23 billion, and assets under
management — which included loans sold and serviced, trust assets, and assets managed by the
Corporation’s Raymond James brokerage operations — were $1.85 billion. Total assets grew in 2010
by a strong 7.2% with most of the growth funded by a 9.3% increase of in-market deposits.
The Corporation’s asset quality remained strong, as evidenced by the relatively low percentage of
total assets, 0.67%, that were classified as “non-performing” at December 31, 2010. By comparison,
the average percentage of non-performing assets for all banks in the State of Michigan was 3.05%.
The Corporation has $2.03 in loan loss reserve for every dollar of non-performing loans, an
outstanding coverage ratio. In addition, the Corporation’s risk based capital to risk adjusted
total assets ratio of 13.69% at December 31, 2010, is considered to be exceptionally strong when
compared to the 8% required to be categorized as adequately capitalized under the Federal Reserve
Board’s risk based capital rules.
The Corporation paid a cash dividend of $0.18 per share for the fourth quarter of 2010. Based on
the Corporation’s average stock price for the month of December 2010 of $16.87, the annualized cash
dividend yield was 4.27%.
For further information regarding Isabella Bank Corporation, please visit our website at
www.isabellabank.com and click on the Investor Relations Tab.
This press release includes forward-looking statements. To the extent that the foregoing
information refers to matters that may occur in the future, please be aware that such
forward-looking statements may differ materially from actual results. Additional information
concerning some of the factors that could cause materially different results is included in
Isabella Bank Corporation’s annual report on Form 10-K for the year ended December 31,2009 and Form
10-Q for the quarter ended September 30, 2010, which are available from the Securities and
Exchange Commission’s Public Reference facilities and from its website at www.sec.gov.