Isabella Bank (ISBA) AI Stock Analysis

• Market Cap: $264.07M
• Dividend Yield: 3.19%
• Average Volume (3M): 17.15K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.21
• Revenue Growth: 7.29%
• EPS Growth: 33.63%
• Country: US
• Employees: 368
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.71
• Shares Outstanding: 7,359,911
• 10 Day Avg. Volume: 7,458
• 30 Day Avg. Volume: 17,147
• PEG Ratio: -0.60
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 11.05
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $38.50
• Price Target Upside: 8.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $40.00 ▲(12.39% Upside)

Isabella Bank's overall stock score is driven by solid financial performance and positive technical indicators. The company's stable financial structure and consistent revenue growth are significant strengths. While the valuation is reasonable, it does not stand out as a major positive factor.

Isabella Bank Business Overview & Revenue Model

Company Description

Isabella Bank Corporation operates as the bank holding company for Isabella Bank that provides various banking products and services to businesses, institutions, and individuals and their families. Its deposit products include checking accounts, savings accounts, certificates of deposit, direct deposits, and money market accounts. The company's loan portfolio comprises commercial, agricultural, and residential real estate loans, as well as consumer loans, including secured and unsecured personal loans. It also offers cash management, mobile and internet banking, electronic bill pay, automated teller machines, trust and investment, estate planning, and safe deposit box rental services; and group life, health, accident, disability, and other insurance products, as well as other employee benefit programs. As of December 31, 2021, the company operated 30 banking offices in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties. Isabella Bank Corporation was founded in 1903 and is headquartered in Mount Pleasant, Michigan.

How the Company Makes Money

Isabella Bank generates revenue primarily through interest income from loans and mortgages, which constitutes a significant portion of its earnings. The bank offers various loan products, including personal loans, auto loans, and commercial loans, charging interest on these loans over their respective terms. Additionally, Isabella Bank earns income from fees associated with account maintenance, overdrafts, and transaction services. Investment income from securities and other financial instruments also contributes to its revenue. The bank may engage in partnerships with local businesses and organizations to enhance its service offerings and attract new customers, further bolstering its income streams.

Isabella Bank Financial Statement Overview

Summary

Isabella Bank demonstrates solid financial health with consistent revenue growth and improving cash flow. The balance sheet shows a stable capital structure with reduced leverage. While profitability margins have slightly decreased, the company maintains a strong position in its industry.

Income Statement

Isabella Bank has shown consistent revenue growth with a TTM revenue increase of 1.13%. The gross profit margin remains strong at 67.55%, and the net profit margin has improved to 15.61% in the TTM. However, margins have decreased compared to previous years, indicating some pressure on profitability.

Balance Sheet

The debt-to-equity ratio has improved to 0.33 in the TTM, indicating a more stable financial structure. Return on equity is moderate at 7.57%, showing decent profitability. The equity ratio remains stable, reflecting a solid capital base.

Cash Flow

Free cash flow has grown by 12.38% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.54, suggesting a moderate conversion of income to cash. However, the free cash flow to net income ratio is high at 89.48%, indicating strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.17M	101.71M	90.76M	76.55M	71.28M	75.75M
Gross Profit	70.37M	65.69M	68.45M	71.23M	63.86M	60.26M
EBITDA	21.83M	18.48M	23.81M	29.03M	26.29M	15.04M
Net Income	16.26M	13.89M	18.17M	22.24M	19.50M	10.88M
Balance Sheet
Total Assets	2.16B	2.09B	2.06B	2.03B	2.03B	1.96B
Cash, Cash Equivalents and Short-Term Investments	534.81M	253.03M	561.82M	619.40M	595.93M	585.87M
Total Debt	72.68M	112.99M	116.14M	87.02M	99.32M	158.75M
Total Liabilities	1.94B	1.88B	1.86B	1.84B	1.82B	1.74B
Stockholders Equity	220.50M	210.28M	202.40M	186.21M	211.05M	218.59M
Cash Flow
Free Cash Flow	20.94M	17.53M	20.12M	23.73M	23.91M	20.48M
Operating Cash Flow	23.40M	19.64M	24.18M	26.94M	25.50M	22.00M
Investing Cash Flow	-7.87M	-37.87M	-26.25M	-106.20M	-229.63M	45.13M
Financing Cash Flow	69.46M	9.10M	-3.19M	12.91M	62.82M	118.94M

Isabella Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISBA, the sentiment is Positive. The current price of 35.59 is below the 20-day moving average (MA) of 35.83, above the 50-day MA of 34.32, and above the 200-day MA of 28.92, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 65.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISBA.

Isabella Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNKB	―	$262.15M	6.96	13.09%	4.30%	15.66%	―
TSBK	―	$246.79M	9.24	10.87%	3.26%	9.16%	12.12%
ISBA	―	$264.07M	16.41	8.27%	3.19%	7.29%	33.63%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CHMG	―	$244.91M	18.32	5.74%	2.52%	-6.25%	-38.27%
FRST	―	$263.44M	30.91	2.25%	3.74%	9.78%	―

Isabella Bank Corporate Events

Isabella Bank Appoints Brian Tessin to Board

On October 6, 2025, Isabella Bank Corporation appointed Brian Tessin to its Board of Directors. Tessin, who is the Chief Tax Officer for Dow Inc. with over 30 years of experience in tax and financial leadership, is expected to bring valuable expertise in global tax strategy, financial reporting, M&A, and regulatory compliance to the bank. His appointment is seen as a strategic move to enhance the bank’s governance and fiscal responsibility as it continues to grow in a complex financial landscape.

The most recent analyst rating on (ISBA) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Isabella Bank stock, see the ISBA Stock Forecast page.

Isabella Bank Updates Bylaws for Better Governance

On September 24, 2025, Isabella Bank Corporation’s Board of Directors approved the Second Amended and Restated Bylaws, which include provisions for annual shareholder meetings, special meeting procedures, proxy registration, and electronic communication for meetings. These changes aim to align with the Michigan Business Corporation Act and enhance corporate governance, impacting shareholder engagement and legal processes.

The most recent analyst rating on (ISBA) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Isabella Bank stock, see the ISBA Stock Forecast page.

Isabella Bank CFO Terminated, President Steps In

On August 28, 2025, Isabella Bank Corporation announced the immediate termination of its Chief Financial Officer, Mr. William M. Schaefer, without any disagreements or deficiencies in financial or operational controls. Neil McDonnell, President of Isabella Bank, will assume the role of interim CFO while a national search for a permanent replacement is conducted. McDonnell, who has previous experience as the Corporation’s CFO, will continue his role as President during this transition.

The most recent analyst rating on (ISBA) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Isabella Bank stock, see the ISBA Stock Forecast page.

Isabella Bank Announces Third-Quarter Cash Dividend

On August 28, 2025, Isabella Bank Corporation announced a third-quarter cash dividend of $0.28 per common share, payable on September 30, 2025, with a record date of September 26, 2025. The dividend reflects a 3.29% annualized cash dividend yield based on the closing stock price, indicating the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (ISBA) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Isabella Bank stock, see the ISBA Stock Forecast page.

Isabella Bank’s Expanded Stock Buyback: Balancing Shareholder Value with Financial Risks

Isabella Bank Corporation’s decision to amend its common stock repurchase program on April 30, 2025, to include an additional 500,000 shares, presents a potential risk factor for the company. While the repurchase program can enhance shareholder value by reducing the number of shares outstanding, it also requires significant capital allocation, which could impact the company’s liquidity and financial flexibility. The repurchase activity for the three-month period ending June 30, 2025, shows a varied average price per share, indicating market volatility that could affect the cost-effectiveness of the program. As the company continues to execute its repurchase strategy, it must carefully balance the benefits of share reduction against the potential financial strain it may impose.