Isabella Bank (ISBA) AI Stock Analysis

• Market Cap: $359.86M
• Dividend Yield: 2.28%
• Average Volume (3M): 9.01K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.16
• 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: 0.89
• Enterprise Value/Revenue: 3.00
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 13.16
• 1Y Price Target: $38.50
• Price Target Upside: -16.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.4
• Revenue Forecast (FY): $77.10M

• Rating: 75 Outperform
• Price Target: $52.00 ▲(12.55% Upside)

Isabella Bank's overall stock score is driven by strong technical analysis indicators and solid financial performance. The stock shows bullish momentum, supported by positive corporate events. However, the relatively high P/E ratio suggests potential overvaluation, and the decline in free cash flow growth requires attention.

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

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	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: Negative
• 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 above the 20-day moving average (MA) of 44.35, above the 50-day MA of 40.13, and above the 200-day MA of 31.67, indicating a bullish trend. The MACD of 2.66 indicates Negative momentum. The RSI at 64.89 is Neutral, neither overbought nor oversold. The STOCH value of 65.57 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	82 Outperform	$294.11M	10.18	11.48%	2.81%	8.17%	21.95%
CHMG	78 Outperform	$276.15M	20.80	5.69%	2.24%	-6.25%	-38.79%
ISBA	75 Outperform	$359.86M	19.96	8.27%	2.28%	7.29%	33.75%
LNKB	75 Outperform	$309.01M	8.05	13.09%	3.64%	15.66%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRST	64 Neutral	$329.74M	38.50	2.25%	2.99%	9.90%	―

Isabella Bank Corporate Events

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%.

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.

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.