Isabella Bank (ISBA) AI Stock Analysis

• Market Cap: $238.90M
• Dividend Yield: 3.45%
• Average Volume (3M): 7.91K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.20
• Revenue Growth: 8.16%
• EPS Growth: 10.10%
• Country: US
• Employees: 368
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.55
• Shares Outstanding: 7,359,911
• 10 Day Avg. Volume: 10,119
• 30 Day Avg. Volume: 7,912
• 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: 1.09
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 3.72
• Enterprise Value/Ebitda: 12.28
• 1Y Price Target: $34.00
• Price Target Upside: 4.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $35.00 ▲(7.83% Upside)

Isabella Bank's overall stock score reflects its solid financial performance and fair valuation. The company's stable financial structure and attractive dividend yield are significant strengths. Technical indicators suggest a neutral market sentiment, contributing to a balanced outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable market position and effective business strategies, supporting long-term financial health.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing for reinvestment in growth opportunities and shareholder returns.

Stable Financial Structure

A stable financial structure with reduced leverage lowers financial risk and supports sustainable growth.

Negative Factors

Profit Margin Pressure

Decreasing profit margins suggest challenges in maintaining cost efficiency or pricing power, potentially affecting long-term profitability.

CFO Termination

The abrupt termination of the CFO may lead to temporary disruptions in financial management and strategic execution.

Leadership Changes

Frequent leadership changes can disrupt strategic continuity and affect long-term decision-making processes.

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 strong financial performance with robust profitability margins and revenue growth. The conservative leverage and healthy cash flows ensure liquidity and operational flexibility, despite a declining equity position.

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	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	21.29M	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: 32.46
• 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 32.46 is below the 20-day moving average (MA) of 32.53, above the 50-day MA of 31.98, and above the 200-day MA of 27.30, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 37.26 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
ESSA	76 Outperform		―		―	5.57%	-16.40%
FUNC	75 Outperform	$238.81M	10.05	13.37%	2.39%	11.42%	63.24%
FINW	74 Outperform	$260.52M	19.71	7.47%	―	13.75%	-15.50%
CFFI	71 Outperform	$227.07M	9.28	10.67%	2.60%	11.71%	32.12%
ISBA	69 Neutral	$238.90M	14.84	7.69%	3.45%	8.16%	10.10%
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.75%	9.73%	1.23%
MYFW	64 Neutral	$228.37M	19.89	4.58%	―	0.35%	64.49%

Isabella Bank Corporate Events

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.

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.

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.