Isabella Bank (ISBA) AI Stock Analysis

• Market Cap: $232.13M
• Dividend Yield: 3.45%
• Average Volume (3M): 7.61K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.16
• Revenue Growth: 8.16%
• EPS Growth: 10.10%
• Country: US
• Employees: 368
• Sector: Financial
• Sector Strength: 69
• Industry: Banks - Regional
• EPS (TTM): 0.55
• Shares Outstanding: 7,359,911
• 10 Day Avg. Volume: 4,597
• 30 Day Avg. Volume: 7,612
• 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: 1.13
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 3.87
• Enterprise Value/Ebitda: 13.25
• 1Y Price Target: $34.00
• Price Target Upside: 4.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $35.00 ▲(7.73% Upside)

Isabella Bank's overall score is driven by strong financial performance and positive corporate events like Nasdaq listing and dividend announcements. Technical analysis presents mixed signals, and valuation indicates reasonable pricing. The absence of earnings call data does not affect the robust score.

Isabella Bank Business Overview & Revenue Model

Company Description

Isabella Bank (ISBA) is a community-focused financial institution headquartered in Michigan, specializing in delivering a wide range of banking services to individuals and businesses. The bank operates primarily in the retail banking sector, offering products such as savings and checking accounts, mortgage loans, personal loans, and business banking services. With a commitment to local communities, Isabella Bank emphasizes personalized customer service and financial solutions tailored to its clients' needs.

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 exhibits strong financial performance with impressive revenue growth and profitability margins. The balance sheet is stable with low leverage, though a decline in stockholders' equity is noted. Cash flows are healthy, ensuring liquidity and operational flexibility.

Income Statement

Isabella Bank demonstrates a robust financial performance with a strong gross profit margin of 65.54% and a net profit margin of 14.28% in the TTM period. The revenue growth rate of 35.73% from 2023 to 2024 indicates significant expansion. The EBIT margin of 17.10% and EBITDA margin of 19.15% further highlight operational efficiency. However, the slight decline in gross profit over the years suggests potential pressure on cost management.

Balance Sheet

The balance sheet remains solid with a low debt-to-equity ratio of 0.36, implying conservative leverage. Return on Equity (ROE) is strong at 6.83%, showcasing effective use of shareholder funds. The equity ratio stands at 10.25%, indicating a stable capital structure. While total assets have increased, the decline in stockholders' equity over time warrants attention.

Cash Flow

Operating cash flow is healthy, with an operating cash flow to net income ratio of 1.42, suggesting strong cash earnings. The free cash flow growth rate is 6.29%, indicating positive cash generation despite capital expenditures. The free cash flow to net income ratio of 1.27 reflects good liquidity and cash management. However, fluctuations in financing cash flows suggest variability in external funding or debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	103.01M	101.71M	90.76M	76.55M	71.28M	75.75M
Gross Profit	67.51M	65.69M	68.45M	71.23M	63.86M	60.26M
EBITDA	19.73M	18.48M	23.81M	29.03M	26.29M	15.04M
Net Income	14.71M	13.89M	18.17M	22.24M	19.50M	10.88M
Balance Sheet
Total Assets	2.10B	2.09B	2.06B	2.03B	2.03B	1.96B
Cash, Cash Equivalents and Short-Term Investments	582.22M	253.03M	561.82M	619.40M	595.93M	585.87M
Total Debt	76.76M	112.99M	116.14M	87.02M	99.32M	158.75M
Total Liabilities	1.89B	1.88B	1.86B	1.84B	1.82B	1.74B
Stockholders Equity	215.56M	210.28M	202.40M	186.21M	211.05M	218.59M
Cash Flow
Free Cash Flow	18.63M	17.53M	20.12M	23.73M	23.91M	20.48M
Operating Cash Flow	20.91M	19.64M	24.18M	26.94M	25.50M	22.00M
Investing Cash Flow	125.00K	-37.87M	-26.25M	-106.20M	-229.63M	45.13M
Financing Cash Flow	22.93M	9.10M	-3.19M	12.91M	62.82M	118.94M

Isabella Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.49
• 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 32.49 is above the 20-day moving average (MA) of 31.89, above the 50-day MA of 32.16, and above the 200-day MA of 26.60, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 66.80 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
ISBA	76 Outperform	$232.13M	14.42	7.69%	3.45%	8.16%	10.10%
FUNC	76 Outperform	$221.99M	9.34	13.37%	2.54%	11.42%	63.24%
FINW	74 Outperform	$249.43M	19.02	7.47%	―	13.75%	-15.50%
CFFI	71 Outperform	$220.40M	9.01	10.67%	2.65%	11.71%	32.12%
Sector *	66 Neutral	€21.70B	12.19	8.10%	4.80%	5.13%	-78.12%
MYFW	64 Neutral	$207.96M	18.28	4.58%	―	0.35%	64.49%

Isabella Bank Corporate Events

Isabella Bank Director Chad Payton Resigns

On June 25, 2025, Chad R. Payton announced his resignation from the Board of Directors of Isabella Bank Corporation and its subsidiary, effective June 30, 2025. His departure was not due to any disagreements with the Corporation or the Board, suggesting a smooth transition without internal conflicts.

The most recent analyst rating on (ISBA) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Isabella Bank stock, see the ISBA Stock Forecast page.

Isabella Bank Announces Second-Quarter Dividend

On May 29, 2025, Isabella Bank Corporation announced a second-quarter cash dividend of $0.28 per common share, payable on June 30, 2025, to shareholders of record as of June 26, 2025. With a closing stock price of $27.75 on May 28, 2025, the annualized cash dividend yield is 4.04%, reflecting the company’s ongoing commitment to providing shareholder value.

The most recent analyst rating on (ISBA) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Isabella Bank stock, see the ISBA Stock Forecast page.