Isabella Bank (ISBA) AI Stock Analysis

• Market Cap: $288.00M
• Dividend Yield: 2.92%
• Average Volume (3M): 12.11K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.28
• Revenue Growth: 9.80%
• EPS Growth: -7.78%
• Country: US
• Employees: 368
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 1.97
• Shares Outstanding: 7,382,631
• 10 Day Avg. Volume: 29,025
• 30 Day Avg. Volume: 12,108
• PEG Ratio: 2.28
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 5.58
• 1Y Price Target: $27.00
• Price Target Upside: -29.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $43.00 ▲(11.92%Upside)

Isabella Bank's strong technical indicators and positive corporate developments are the primary drivers of the score. Solid financial performance supports the position, though attention to profitability is advised. The valuation is fair, and while no earnings call data was provided, the company's strategic moves enhance overall appeal.

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 earned on loans provided to individuals and businesses. The bank also earns revenue from fees associated with various financial services, such as account maintenance fees, transaction fees, and service charges. Additionally, Isabella Bank benefits from non-interest income streams, including income from investment securities and wealth management services. The bank's earnings are further supported by strategic partnerships with financial service providers and its established presence in the Michigan banking sector.

Isabella Bank Financial Statement Overview

Summary

Isabella Bank demonstrates consistent revenue growth, improved operational efficiency, and a strong balance sheet with reduced leverage. However, there is pressure on profitability margins and some volatility in cash flow generation.

Income Statement

Isabella Bank has demonstrated solid revenue growth, with a notable increase in total revenue from $64.77M in 2020 to $89.98M in 2024, representing a compound annual growth rate (CAGR) of approximately 8.5%. The gross profit margin remained high at 100%, as expected in the banking industry. However, the net profit margin slipped from 17.6% in 2020 to 15.4% in 2024, indicating some pressure on profitability. The EBIT margin improved significantly, indicating better operational efficiency over the years.

Balance Sheet

The balance sheet of Isabella Bank is robust, with a healthy equity ratio of approximately 10.1% in 2024, showing a stable asset base supported by equity. The debt-to-equity ratio improved significantly from 1.12 in 2019 to 0.25 in 2024, reflecting a substantial reduction in leverage. Return on equity (ROE) was steady, albeit slightly declining from 6.0% in 2020 to 6.6% in 2024, suggesting consistent value generation for shareholders.

Cash Flow

Cash flows are positive, with free cash flow showing a steady increase over the years. The operating cash flow to net income ratio was approximately 1.48 in 2024, indicating strong cash generation relative to accounting earnings. However, the free cash flow growth rate showed some volatility, suggesting potential fluctuations in cash flow generation capacity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
67.57M	71.14M	71.23M	63.86M	64.77M
	Gross Profit
67.57M	71.14M	71.23M	63.86M	64.77M
	EBIT
16.40M	21.83M	32.16M	23.35M	11.87M
	EBITDA
0.00	0.00	29.03M	26.29M	15.04M
	Net Income Common Stockholders
13.89M	18.17M	22.24M	19.50M	10.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.83M	33.67M	619.40M	595.93M	585.87M
	Total Assets
2.09B	2.06B	2.03B	2.03B	1.96B
	Total Debt
59.42M	69.33M	29.25M	49.16M	90.00M
	Net Debt
34.88M	35.66M	-9.68M	-56.17M	-156.64M
	Total Liabilities
1.88B	1.86B	1.84B	1.82B	1.74B
	Stockholders Equity
210.28M	202.40M	186.21M	211.05M	218.59M
Cash Flow		Free Cash Flow
17.53M	19.65M	23.73M	23.91M	20.48M
	Operating Cash Flow
19.64M	23.71M	26.94M	25.50M	22.00M
	Investing Cash Flow
-37.87M	-25.78M	-106.25M	-229.63M	45.13M
	Financing Cash Flow
9.10M	-3.19M	12.91M	62.82M	118.94M

Isabella Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 38.42 is above the 20-day moving average (MA) of 30.44, above the 50-day MA of 27.79, and above the 200-day MA of 24.23, indicating a bullish trend. The MACD of 2.64 indicates Negative momentum. The RSI at 89.18 is Negative, neither overbought nor oversold. The STOCH value of 59.43 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	75 Outperform	$288.00M	19.79	7.07%	2.92%	9.80%	-7.78%
CFFI	70 Outperform	$194.25M	8.98	9.67%	3.07%	10.36%	10.16%
ESSA	68 Neutral	$186.64M	11.86	6.43%	3.26%	5.57%	-16.40%
MYFW	68 Neutral	$204.70M	20.45	4.04%	―	3.14%	35.67%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
FUNC	62 Neutral	$185.68M	8.21	12.99%	3.07%	13.41%	62.54%
FINW	62 Neutral	$186.46M	15.33	7.16%	―	10.74%	-27.38%

Isabella Bank Corporate Events

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.

Isabella Bank Announces 2025 Shareholders Meeting Results

On May 6, 2025, Isabella Bank Corporation held its Annual Meeting of Shareholders where key decisions were made. The shareholders elected Neil M. McDonnell, Sarah R. Opperman, Chad R. Payton, and Brian R. Sackett as directors to serve until the 2028 Annual Meeting. Additionally, the shareholders ratified the appointment of Plante & Moran, PLLC as the Company’s independent registered public accounting firm for 2025.

Isabella Bank to List on Nasdaq Capital Market

On May 8, 2025, Isabella Bank Corporation announced that its shares of common stock have been approved for listing on The Nasdaq Capital Market, effective May 12, 2025. This transition from the OTCQX is expected to enhance the stock’s liquidity and visibility, marking a significant milestone in the company’s growth strategy and potentially increasing shareholder value.

Isabella Bank Announces Executive Stock Grants and SERP Update

Isabella Bank Corporation announced on April 4, 2025, the issuance of annual grants under its Restricted Stock Plan to executives Jerome Schwind, Neil McDonnell, and William Schaefer, with eligibility for restricted stock grants tied to their 2025 performance goals. Additionally, the company adopted a restated Supplemental Executive Retirement Plan (SERP) effective the same day, altering the interest accrual method to a daily basis using the Vanguard Federal Money Market Fund yield, and allowing interest accrual for partial years.