8-K
ISABELLA BANK CORP (ISBA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 20, 2023
ISABELLA BANK CORPORATION
(Exact name of registrant as specified in its charter)
| Michigan | 000-18415 | 38-2830092 | |||||
|---|---|---|---|---|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) | 401 North Main Street | Mt. Pleasant | Michigan | 48858-1649 | |
| --- | --- | --- | --- | ||||
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (989) 772-9471
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-l2) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule l4d-2(b) under the Exchange Act (17 CFR 240.l4d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.l3e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| None | N/A | N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ☐ |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition.
On April 20, 2023, Isabella Bank Corporation issued a press release announcing its results of operations for the three months ended March 31, 2023.
A copy of the press release is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 of Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing made by the registrant under the Securities Act of 1933, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press release issuedApril20, 2023 |
| 104 | Cover page interactive data file - the cover page XBRL tags are embedded within the inline XBRL document |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ISABELLA BANK CORPORATION | |||
|---|---|---|---|
| Dated: | April 20, 2023 | By: | /s/ Jae A. Evans |
| Jae A. Evans, President & CEO |
INDEX TO EXHIBITS
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press release issuedAprilearningsrelease_20230331xe.htm20, 2023 |
| 104 | Cover page interactive data file - the cover page XBRL tags are embedded within the inline XBRL document |
Document
Exhibit 99.1
For Immediate Release
Isabella Bank Corporation
401 North Main Street
Mt. Pleasant, MI 48858-1649
FOR MORE INFORMATION CONTACT:
Trish Tomczak, Director of Marketing
Phone: 989-779-6333 Fax: 989-775-5501
Isabella Bank Corporation Announces First Quarter 2023 Earnings
Solid start to 2023; net income of $5.3 million
Mt. Pleasant, Michigan, April 20, 2023 — Isabella Bank Corporation (the “Corporation”) (OTCQX: ISBA) announced strong earnings results for the first quarter of 2023. The Corporation reported net income of $5.3 million and earnings per common share of $0.70, both substantial increases from the same period in 2022.
First Quarter 2023 Highlights:
•Net income increased 12% to $5.3 million, compared to first quarter 2022.
•Net interest income improved 14%, compared to first quarter 2022.
•Deposits grew more than $69 million, or 4%, from December 31, 2022.
•Shareholders earned a cash dividend of $0.28 per share, with an annualized dividend yield of 4.52%, as of March 31, 2023.
The Corporation’s significant growth in net interest income results largely from a combination of increased interest rates and growth in its loan portfolio. Those more than offset a climb in interest expense that accompanied a quarter of excellent growth in deposits.
“We are very pleased with our first quarter operating results,” said Jae A. Evans, President and Chief Executive Officer. “Isabella Bank's stability as a community bank and its already strong liquidity position were further enhanced in the quarter, in sharp contrast to challenges elsewhere in the banking sector.
“Isabella Bank's continued growth reflects our complete suite of financial products and services delivered by staff customers trust,” Evans said. “Significantly, we opened a full-service branch in Saginaw at the end of March — our fifth branch in Saginaw County. This growth in our footprint demonstrates our role and commitment to consumer and business customers as a prominent, independent community bank.”
Operating Results
Net income: Net income for first quarter 2023 was $5.3 million, compared to $4.7 million in the first quarter of 2022, increasing 12.4%. Earnings per common share were $0.70 for the first quarter of 2023, above the $0.63 reported for the same period in 2022.
Net interest income: Net interest income for first quarter 2023 increased $1.9 million, or 13.9%, compared to the same period in 2022. Rising rates on loans and investment securities led to a $3.8 million increase in gross interest income. However, the combination of continued growth in deposits and rising interest rates led to a $2.0 million increase in interest expense during the quarter.
Noninterest income and expenses: Noninterest income decreased $254,000 during the first quarter of 2023 compared to the same period in 2022. The decline was mainly driven by a $300,000 reduction in mortgage servicing rights, as rising interest rates have led to a decline in both the volume and balance of loans serviced. Noninterest expenses increased $878,000, primarily the result of increased compensation, professional services, and FDIC insurance expense.
Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 3.22% for the first quarter of 2023, compared to 2.86% for the same period in 2022. The marked improvement is the result of the implementation of strategic programs focused on improving the net yield in a rising rate environment, which included a reduced reliance on higher-cost borrowed funds and brokered deposits.
Balance Sheet
Assets: Total assets were $2.1 billion and assets under management were $2.92 billion as of March 31, 2023. Managed assets includes loans sold and serviced of $259.5 million as well as $571.5 million in investment and trust assets managed by Isabella Wealth.
Loans: Loans outstanding as of March 31, 2023 totaled $1.3 billion. During the first quarter, gross loans increased $6.5 million primarily due to growth within the commercial and consumer portfolios. The adherence to strong underwriting standards continued to be reflected in the low levels of total past due and nonaccrual loans, which were $6.1 million, or 0.48% of total loans, at the end of the period.
Deposits: Total deposits increased $69.3 million, or 3.97%, since December 31, 2022, driven by growth in money market and CD accounts, in addition to new customer relationships.
Capital: The Bank is considered a “well-capitalized” institution, as its capital ratios exceeded the minimum designated requirements. As of March 31, 2023, the Bank’s Tier 1 Leverage Ratio was 9.25%, Tier 1 Capital Ratio was 13.73%, and Total Capital Ratio was 14.67%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0%, and Total Capital Ratio of 10.0%.
Dividend: During the first quarter of 2023, the Corporation paid a $0.28 per common share cash dividend. Based on the Corporation’s closing stock price of $24.80 as of March 31, 2023, the annualized cash dividend yield was 4.52%.
About the Corporation
Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.
For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).
Forward-Looking Statements
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 the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled “Risk Factors” and “Forward Looking Statements” set forth in Isabella Bank Corporation’s filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission’s Public Reference facilities and from its website at www.sec.gov.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
| March 31<br>2023 | December 31<br>2022 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Cash and cash equivalents | ||||
| Cash and demand deposits due from banks | $ | 21,987 | $ | 27,420 |
| Fed Funds sold and interest bearing balances due from banks | 76,736 | 11,504 | ||
| Total cash and cash equivalents | 98,723 | 38,924 | ||
| Available-for-sale securities, at fair value | 568,650 | 580,481 | ||
| Mortgage loans available-for-sale | 171 | 379 | ||
| Loans | 1,270,651 | 1,264,173 | ||
| Less allowance for credit losses | 12,640 | 9,850 | ||
| Net loans | 1,258,011 | 1,254,323 | ||
| Premises and equipment | 26,304 | 25,553 | ||
| Corporate owned life insurance policies | 33,208 | 32,988 | ||
| Equity securities without readily determinable fair values | 15,746 | 15,746 | ||
| Goodwill and other intangible assets | 48,286 | 48,287 | ||
| Accrued interest receivable and other assets | 35,525 | 33,586 | ||
| TOTAL ASSETS | $ | 2,084,624 | $ | 2,030,267 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Deposits | ||||
| Noninterest bearing | $ | 478,829 | $ | 494,346 |
| Interest bearing demand deposits | 383,602 | 372,155 | ||
| Certificates of deposit under $250 and other savings | 867,435 | 810,642 | ||
| Certificates of deposit over $250 | 83,662 | 67,132 | ||
| Total deposits | 1,813,528 | 1,744,275 | ||
| Borrowed funds | ||||
| Federal funds purchased and repurchase agreements | 31,995 | 57,771 | ||
| Subordinated debt, net of unamortized issuance costs | 29,267 | 29,245 | ||
| Total borrowed funds | 61,262 | 87,016 | ||
| Accrued interest payable and other liabilities | 16,501 | 12,766 | ||
| Total liabilities | 1,891,291 | 1,844,057 | ||
| Shareholders’ equity | ||||
| Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,540,015 shares (including 175,663 shares held in the Rabbi Trust) in 2023 and 7,559,421 shares (including 154,879 shares held in the Rabbi Trust) in 2022 | 127,717 | 128,651 | ||
| Shares to be issued for deferred compensation obligations | 5,344 | 5,005 | ||
| Retained earnings | 90,586 | 89,748 | ||
| Accumulated other comprehensive income (loss) | (30,314) | (37,194) | ||
| Total shareholders’ equity | 193,333 | 186,210 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,084,624 | $ | 2,030,267 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
| Three Months Ended <br> March 31 | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Interest income | ||||
| Loans, including fees | $ | 14,889 | $ | 12,378 |
| Available-for-sale securities | ||||
| Taxable | 2,502 | 1,615 | ||
| Nontaxable | 718 | 660 | ||
| Federal funds sold and other | 486 | 109 | ||
| Total interest income | 18,595 | 14,762 | ||
| Interest expense | ||||
| Deposits | 2,829 | 936 | ||
| Borrowings | ||||
| Federal funds purchased and repurchase agreements | 149 | 9 | ||
| Federal Home Loan Bank advances | — | 72 | ||
| Subordinated debt, net of unamortized issuance costs | 266 | 266 | ||
| Total interest expense | 3,244 | 1,283 | ||
| Net interest income | 15,351 | 13,479 | ||
| Provision for credit losses | 41 | 37 | ||
| Net interest income after provision for credit losses | 15,310 | 13,442 | ||
| Noninterest income | ||||
| Service charges and fees | 1,978 | 2,209 | ||
| Wealth management fees | 786 | 754 | ||
| Earnings on corporate owned life insurance policies | 226 | 210 | ||
| Net gain on sale of mortgage loans | 67 | 224 | ||
| Other | 236 | 150 | ||
| Total noninterest income | 3,293 | 3,547 | ||
| Noninterest expenses | ||||
| Compensation and benefits | 6,589 | 6,074 | ||
| Furniture and equipment | 1,597 | 1,450 | ||
| Occupancy | 1,005 | 966 | ||
| Other | 3,007 | 2,830 | ||
| Total noninterest expenses | 12,198 | 11,320 | ||
| Income before federal income tax expense | 6,405 | 5,669 | ||
| Federal income tax expense | 1,084 | 935 | ||
| NET INCOME | $ | 5,321 | $ | 4,734 |
| Earnings per common share | ||||
| Basic | $ | 0.70 | $ | 0.63 |
| Diluted | $ | 0.70 | $ | 0.62 |
| Cash dividends per common share | $ | 0.28 | $ | 0.27 |
AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED)
(Dollars in thousands)
The following schedules present the daily average amount outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. These schedules also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a fully taxable equivalent (FTE) basis using a federal income tax rate of 21%. Loans in nonaccrual status, for the purpose of the following computations, are included in the average loan balances. Federal Reserve Bank (FRB) and Federal Home Loan Bank (FHLB) restricted equity holdings are included in other interest earning assets.
| Three Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2023 | March 31, 2022 | |||||||||||
| Average<br>Balance | Tax<br>Equivalent<br>Interest | Average<br>Yield /<br>Rate | Average<br>Balance | Tax<br>Equivalent<br>Interest | Average<br>Yield /<br>Rate | |||||||
| INTEREST EARNING ASSETS | ||||||||||||
| Loans | $ | 1,268,269 | $ | 14,889 | 4.70 | % | $ | 1,235,788 | $ | 12,378 | 4.01 | % |
| Taxable investment securities | 504,889 | 2,471 | 1.96 | % | 421,503 | 1,615 | 1.53 | % | ||||
| Nontaxable investment securities | 106,240 | 1,021 | 3.84 | % | 101,604 | 920 | 3.62 | % | ||||
| Fed funds sold | 17 | — | 4.50 | % | 3 | — | 0.06 | % | ||||
| Other | 60,583 | 486 | 3.21 | % | 163,353 | 109 | 0.27 | % | ||||
| Total earning assets | 1,939,998 | 18,867 | 3.89 | % | 1,922,251 | 15,022 | 3.13 | % | ||||
| NONEARNING ASSETS | ||||||||||||
| Allowance for credit losses | (12,660) | (9,128) | ||||||||||
| Cash and demand deposits due from banks | 25,039 | 26,839 | ||||||||||
| Premises and equipment | 25,864 | 24,461 | ||||||||||
| Accrued income and other assets | 71,063 | 102,805 | ||||||||||
| Total assets | $ | 2,049,304 | $ | 2,067,228 | ||||||||
| INTEREST BEARING LIABILITIES | ||||||||||||
| Interest bearing demand deposits | $ | 379,717 | $ | 146 | 0.15 | % | $ | 383,474 | $ | 50 | 0.05 | % |
| Savings deposits | 645,987 | 1,466 | 0.91 | % | 615,335 | 159 | 0.10 | % | ||||
| Time deposits | 267,463 | 1,217 | 1.82 | % | 290,146 | 727 | 1.00 | % | ||||
| Federal funds purchased and repurchase agreements | 39,709 | 149 | 1.50 | % | 49,058 | 9 | 0.07 | % | ||||
| Federal Home Loan Bank advances | — | — | — | % | 14,889 | 72 | 1.93 | % | ||||
| Subordinated debt, net of unamortized issuance costs | 29,253 | 266 | 3.64 | % | 29,166 | 266 | 3.65 | % | ||||
| Total interest bearing liabilities | 1,362,129 | 3,244 | 0.95 | % | 1,382,068 | 1,283 | 0.37 | % | ||||
| NONINTEREST BEARING LIABILITIES | ||||||||||||
| Demand deposits | 486,491 | 458,343 | ||||||||||
| Other | 13,094 | 16,898 | ||||||||||
| Shareholders’ equity | 187,590 | 209,919 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 2,049,304 | $ | 2,067,228 | ||||||||
| Net interest income (FTE) | $ | 15,623 | $ | 13,739 | ||||||||
| Net yield on interest earning assets (FTE) | 3.22 | % | 2.86 | % |
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands except per share amounts)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31<br>2023 | March 31<br>2022 | March 31<br>2021 | |||||||
| PER SHARE | |||||||||
| Basic earnings | $ | 0.70 | $ | 0.63 | $ | 0.68 | |||
| Diluted earnings | $ | 0.70 | $ | 0.62 | $ | 0.67 | |||
| Dividends | $ | 0.28 | $ | 0.27 | $ | 0.27 | |||
| Tangible book value | $ | 19.24 | $ | 19.56 | $ | 21.35 | |||
| Quoted market value | |||||||||
| High | $ | 25.10 | $ | 26.00 | $ | 22.50 | |||
| Low | $ | 22.08 | $ | 24.50 | $ | 19.45 | |||
| Close (1) | $ | 24.80 | $ | 25.85 | $ | 21.75 | |||
| Common shares outstanding (1) | 7,540,015 | 7,542,758 | 7,958,883 | ||||||
| Average number of common shares outstanding | 7,556,585 | 7,533,711 | 7,969,462 | ||||||
| Average number of diluted common shares outstanding | 7,634,417 | 7,639,688 | 8,088,524 | ||||||
| PERFORMANCE RATIOS | |||||||||
| Return on average total assets | 1.04 | % | 0.92 | % | 1.09 | % | |||
| Return on average shareholders' equity | 11.35 | % | 9.02 | % | 9.78 | % | |||
| Return on average tangible shareholders' equity | 15.28 | % | 11.72 | % | 12.53 | % | |||
| Net interest margin yield (FTE) | 3.22 | % | 2.86 | % | 2.98 | % | |||
| ASSETS UNDER MANAGEMENT (1) | |||||||||
| Loans sold with servicing retained | $ | 259,512 | $ | 275,556 | $ | 298,514 | |||
| Assets managed by Isabella Wealth | $ | 571,453 | $ | 501,829 | $ | 454,459 | |||
| Total assets under management | $ | 2,915,589 | $ | 2,838,318 | $ | 2,768,405 | |||
| ASSET QUALITY (1) | |||||||||
| Nonaccrual loans | $ | 488 | $ | 747 | $ | 4,532 | |||
| Foreclosed assets | $ | 414 | $ | 187 | $ | 384 | |||
| Net loan charge-offs (recoveries) | $ | (9) | $ | (64) | $ | (50) | |||
| Nonperforming loans to gross loans | 0.04 | % | 0.06 | % | 0.38 | % | |||
| Nonperforming assets to total assets | 0.05 | % | 0.05 | % | 0.26 | % | |||
| Allowance for credit losses to gross loans | 0.99 | % | 0.76 | % | 0.78 | % | |||
| CAPITAL RATIOS (1) | |||||||||
| Shareholders' equity to assets | 9.27 | % | 9.50 | % | 10.83 | % | |||
| Tier 1 leverage | 8.58 | % | 8.12 | % | 8.56 | % | |||
| Common equity tier 1 capital | 12.71 | % | 12.83 | % | 13.77 | % | |||
| Tier 1 risk-based capital | 12.71 | % | 12.83 | % | 13.77 | % | |||
| Total risk-based capital | 15.77 | % | 15.84 | % | 14.54 | % |
(1) At end of period
SUPPLEMENTAL BALANCE SHEET DATA (UNAUDITED)
(Dollars in thousands)
| March 31<br>2023 | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | March 31<br>2022 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Commercial | $ | 755,595 | $ | 744,440 | $ | 730,504 | $ | 772,567 | $ | 727,614 | ||||||||||||
| Agricultural | 94,760 | 104,985 | 96,850 | 94,726 | 88,169 | |||||||||||||||||
| Residential real estate | 336,186 | 336,694 | 334,412 | 329,795 | 328,559 | |||||||||||||||||
| Consumer | 84,110 | 78,054 | 74,385 | 74,822 | 74,029 | |||||||||||||||||
| Gross loans | $ | 1,270,651 | $ | 1,264,173 | $ | 1,236,151 | $ | 1,271,910 | $ | 1,218,371 | March 31<br>2023 | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | March 31<br>2022 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| Noninterest bearing demand deposits | $ | 478,829 | $ | 494,346 | $ | 510,127 | $ | 488,110 | $ | 461,473 | ||||||||||||
| Interest bearing demand deposits | 383,602 | 372,155 | 368,537 | 370,284 | 387,187 | |||||||||||||||||
| Savings deposits | 662,495 | 625,734 | 651,129 | 635,397 | 635,195 | |||||||||||||||||
| Certificates of deposit | 288,103 | 251,541 | 260,741 | 265,477 | 279,708 | |||||||||||||||||
| Internet certificates of deposit | 499 | 499 | 499 | 598 | 598 | |||||||||||||||||
| Total deposits | $ | 1,813,528 | $ | 1,744,275 | $ | 1,791,033 | $ | 1,759,866 | $ | 1,764,161 | March 31<br>2023 | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | March 31<br>2022 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| U.S. Treasury | $ | 212,086 | $ | 208,701 | $ | 206,791 | $ | 214,474 | $ | 218,268 | ||||||||||||
| States and political subdivisions | 108,719 | 117,512 | 114,000 | 119,649 | 114,015 | |||||||||||||||||
| Auction rate money market preferred | 2,716 | 2,342 | 2,479 | 2,497 | 2,867 | |||||||||||||||||
| Mortgage-backed securities | 37,797 | 39,070 | 41,042 | 45,796 | 49,578 | |||||||||||||||||
| Collateralized mortgage obligations | 200,252 | 205,728 | 209,720 | 167,572 | 152,441 | |||||||||||||||||
| Corporate | 7,080 | 7,128 | 7,201 | 7,602 | 7,750 | |||||||||||||||||
| Available-for-sale securities, at fair value | $ | 568,650 | $ | 580,481 | $ | 581,233 | $ | 557,590 | $ | 544,919 | March 31<br>2023 | December 31<br>2022 | September 30<br>2022 | June 30<br>2022 | March 31<br>2022 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| Securities sold under agreements to repurchase without stated maturity dates | $ | 31,995 | $ | 57,771 | $ | 52,479 | $ | 47,247 | $ | 51,353 | ||||||||||||
| Federal Home Loan Bank advances | — | — | — | 10,000 | 10,000 | |||||||||||||||||
| Subordinated debt, net of unamortized issuance costs | 29,267 | 29,245 | 29,225 | 29,203 | 29,181 | |||||||||||||||||
| Total borrowed funds | $ | 61,262 | $ | 87,016 | $ | 81,704 | $ | 86,450 | $ | 90,534 |
SUPPLEMENTAL STATEMENTS OF INCOME DATA (UNAUDITED)
(Dollars in thousands)
| Three Months Ended March 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||||||
| Service charges and fees | ||||||||||
| ATM and debit card fees | $ | 1,160 | $ | 1,093 | ||||||
| Service charges and fees on deposit accounts | 611 | 609 | ||||||||
| Freddie Mac servicing fee | 159 | 171 | ||||||||
| Net mortgage servicing rights income (loss) | (36) | 264 | ||||||||
| Other fees for customer services | 84 | 72 | ||||||||
| Total service charges and fees | 1,978 | 2,209 | ||||||||
| Wealth management fees | 786 | 754 | ||||||||
| Earnings on corporate owned life insurance policies | 226 | 210 | ||||||||
| Net gain on sale of mortgage loans | 67 | 224 | ||||||||
| Other | 236 | 150 | ||||||||
| Total noninterest income | $ | 3,293 | $ | 3,547 | Three Months Ended March 31 | |||||
| --- | --- | --- | --- | --- | ||||||
| 2023 | 2022 | |||||||||
| Compensation and benefits | $ | 6,589 | $ | 6,074 | ||||||
| Furniture and equipment | 1,597 | 1,450 | ||||||||
| Occupancy | 1,005 | 966 | ||||||||
| Other | ||||||||||
| Audit, consulting, and legal fees | 535 | 549 | ||||||||
| ATM and debit card fees | 400 | 434 | ||||||||
| Marketing costs | 245 | 239 | ||||||||
| Memberships and subscriptions | 240 | 217 | ||||||||
| FDIC insurance premiums | 228 | 125 | ||||||||
| Loan underwriting fees | 215 | 182 | ||||||||
| Director fees | 204 | 201 | ||||||||
| Donations and community relations | 184 | 287 | ||||||||
| All other | 756 | 596 | ||||||||
| Total other noninterest expenses | 3,007 | 2,830 | ||||||||
| Total noninterest expenses | $ | 12,198 | $ | 11,320 |