Isabella Bank (ISBA) AI Stock Analysis

• Market Cap: $353.40M
• Dividend Yield: 2.13%
• Average Volume (3M): 9.01K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.10
• Revenue Growth: 7.29%
• EPS Growth: 33.75%
• Country: US
• Employees: 368
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.71
• Shares Outstanding: 7,335,096
• 10 Day Avg. Volume: 12,811
• 30 Day Avg. Volume: 9,008
• 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: 0.85
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 4.09
• Enterprise Value/Ebitda: 12.38
• 1Y Price Target: $52.00
• Price Target Upside: 12.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $55.00 ▲(19.05% Upside)

The score is driven primarily by solid financial performance (better profitability and lower leverage) and a supportive technical trend (positive MACD and strong longer-term moving averages). The main offset is valuation, with a relatively high P/E only partly balanced by the dividend yield; corporate events add a modest positive tilt.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for the bank's services, supporting long-term business sustainability and expansion.

Improved Profitability

Improved profitability margins suggest effective cost management and operational efficiency, enhancing long-term financial health.

Enhanced Governance

The appointment of an experienced board member strengthens governance, supporting strategic decision-making and regulatory compliance.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow can limit the bank's ability to invest in growth opportunities and meet financial obligations, posing a risk to financial flexibility.

Cost Pressures

Decreasing gross profit margins indicate rising costs, which may pressure profitability and require strategic cost management.

Potential Overvaluation Concerns

A high P/E ratio suggests potential overvaluation, which could impact investor sentiment and stock performance if growth expectations are not met.

Isabella Bank Business Overview & Revenue Model

Company Description

Isabella Bank (ISBA) is a community-focused financial institution headquartered in Michigan, offering a wide range of banking and financial services. The bank operates primarily in the retail banking sector, providing personal banking, business banking, and wealth management services. Core products include checking and savings accounts, loans, mortgages, and investment services, aimed at meeting the financial needs of individuals, families, and small businesses in the communities it serves.

How the Company Makes Money

Isabella Bank generates revenue primarily through interest income from loans and mortgages, which typically accounts for the largest share of its earnings. The bank lends money to consumers and businesses at higher interest rates than it pays on deposits, thereby earning a net interest margin. Additionally, Isabella Bank earns non-interest income through service fees on accounts, transaction fees, and fees for wealth management services. Partnerships with local businesses and community organizations also contribute to its earnings by enhancing customer acquisition and retention. The bank's focus on community engagement and personalized service helps to build a loyal customer base, driving steady revenue growth.

Isabella Bank Financial Statement Overview

Summary

Solid overall fundamentals: improving net/EBITDA margins and reduced leverage support stability, but declining free cash flow growth is a key risk to cash generation quality.

Income Statement

Isabella Bank has shown consistent revenue growth with a TTM revenue growth rate of 2.14%. The gross profit margin has decreased over time, indicating potential cost pressures. However, the net profit margin has improved to 17.74% in the TTM, reflecting better cost management. EBIT and EBITDA margins have also shown improvement, suggesting operational efficiency gains.

Balance Sheet

The debt-to-equity ratio has decreased to 0.40 in the TTM, indicating a reduction in leverage and improved financial stability. Return on equity has increased to 8.34%, showing enhanced profitability. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

Operating cash flow has increased, but free cash flow has declined by 7.85% in the TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio is slightly below 1, indicating limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.40M	101.71M	90.76M	76.55M	71.28M	75.75M
Gross Profit	73.47M	65.69M	68.45M	70.75M	64.38M	60.26M
EBITDA	24.26M	18.48M	23.81M	28.91M	26.29M	15.04M
Net Income	18.22M	13.89M	18.17M	22.24M	19.50M	10.88M
Balance Sheet
Total Assets	2.26B	2.09B	2.06B	2.03B	2.03B	1.96B
Cash, Cash Equivalents and Short-Term Investments	673.27M	253.03M	561.82M	619.40M	595.93M	585.87M
Total Debt	91.51M	112.99M	116.14M	87.02M	99.32M	158.75M
Total Liabilities	2.03B	1.88B	1.86B	1.84B	1.82B	1.74B
Stockholders Equity	227.42M	210.28M	202.40M	186.21M	211.05M	218.59M
Cash Flow
Free Cash Flow	19.30M	17.53M	20.12M	23.73M	23.91M	20.48M
Operating Cash Flow	22.41M	19.64M	24.18M	26.94M	25.50M	22.00M
Investing Cash Flow	-15.85M	-37.87M	-26.25M	-106.20M	-229.63M	45.13M
Financing Cash Flow	127.36M	9.10M	-3.19M	12.91M	62.82M	118.94M

Isabella Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.20
• 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 46.2 is below the 20-day moving average (MA) of 49.60, below the 50-day MA of 48.88, and above the 200-day MA of 36.24, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 51.40 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
TSBK	79 Outperform	$306.88M	10.11	11.48%	2.91%	8.17%	21.95%
LNKB	77 Outperform	$327.76M	9.74	13.09%	3.61%	15.66%	―
CHMG	72 Outperform	$291.35M	19.33	5.69%	2.40%	-6.25%	-38.79%
ISBA	68 Neutral	$353.40M	19.60	8.27%	2.13%	7.29%	33.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COSO	63 Neutral	$323.81M	11.36	12.63%	―	―	―
FRST	58 Neutral	$332.21M	5.41	2.25%	3.06%	9.90%	―

Isabella Bank Corporate Events

Isabella Bank Names Veteran Executive Gerald Ritzert as CFO

On January 5, 2026, Isabella Bank Corporation appointed veteran banking executive and CPA Gerald J. Ritzert as its Chief Financial Officer, formalizing a leadership transition that ends the interim CFO role held by Isabella Bank President Neil M. McDonnell since August 28, 2025. With more than 30 years of experience in accounting and finance, including prior CFO posts at First National Bank and Trust in Wisconsin and Dollar Bank in Pennsylvania, Ritzert brings deep expertise in asset-liability management, capital planning, investment portfolio optimization, and strategic financial reporting, a skill set the company expects will enhance profitability, bolster risk management, improve operational efficiency, and support its efforts to strengthen the bank’s competitive position in its Mid-Michigan markets.

The most recent analyst rating on (ISBA) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Isabella Bank stock, see the ISBA Stock Forecast page.

Isabella Bank Declares Fourth-Quarter Cash Dividend

On November 20, 2025, Isabella Bank Corporation announced that its Board of Directors declared a fourth-quarter cash dividend of $0.28 per common share, payable on December 19, 2025, to shareholders of record as of December 17, 2025. This decision reflects the company’s ongoing commitment to providing shareholder value, with the dividend yield based on the closing stock price of $40.50 per share on November 19, 2025, equating to an annualized yield of 2.77%.

The most recent analyst rating on (ISBA) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Isabella Bank stock, see the ISBA Stock Forecast page.