Isabella Bank reported record third-quarter 2026 net income and a wider net interest margin, while saying its acquisition of Grand River Commerce has received required regulatory and shareholder approvals. The bank expects the deal to close on November 2, subject to customary closing conditions.
Key details
- Net income reached $6.6 million, or 86 cents per diluted share, for the quarter ended September 30. That compares with $5.2 million, or 71 cents per share, in the same quarter a year earlier.
- Results included $657,000 in after-tax expenses tied to the proposed Grand River acquisition.
- Net interest margin rose to 3.71%, up from 3.15% in the third quarter of 2025.
- The bank said deposit balances increased during the quarter, strengthening its funding position, but did not provide a deposit total in the reported highlights.
- Total assets were $2.2 billion at September 30, up $31.1 million, or 1.4%, from year-end 2025. Cash and cash equivalents increased by $112.5 million, while available-for-sale securities declined by $88.3 million.
- The securities portfolio stood at $409.5 million, down 17.7% from year-end. Maturities and principal repayments totaled $177.1 million, partly offset by $100.7 million in purchases.
- Net unrealized losses on available-for-sale securities increased to $21.7 million from $9.9 million at December 31, 2025. Those losses equaled 5.0% of the portfolio’s amortized cost, compared with 1.9% at year-end.
- Isabella said the Grand River acquisition is intended to expand its customer base and presence in West Michigan. The company said it is focused on integration and maintaining customer service through the transition.
Plain-English implications
Isabella’s quarterly profit improved even with acquisition-related costs, alongside a substantial year-over-year increase in net interest margin. The Grand River deal has cleared its stated regulatory and shareholder approvals, but it has not yet closed. The rise in unrealized securities losses is a separate change in the bank’s reported financial position.