Isabella Bank (ISBA) AI Stock Analysis

• Market Cap: $159.41M
• Dividend Yield: 5.03%
• Average Volume (3M): 1.56K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.15
• Revenue Growth: 11.87%
• EPS Growth: -23.36%
• Country: US
• Employees: 368
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 1.86
• Shares Outstanding: 7,414,569
• 10 Day Avg. Volume: 2,001
• 30 Day Avg. Volume: 1,557
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.49
• Price to Cash Flow (P/CF): 6.10
• P/FCF Ratio: 6.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.00
• Price Target Upside: 25.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Isabella Bank's overall stock score reflects its solid financial performance and attractive valuation, offset by some technical analysis concerns. The company demonstrates strong revenue growth and operational efficiency, enhancing its financial stability. However, slight pressure on profitability margins and technical indicators suggest caution. The strategic board appointment is a positive development, but its impact is not immediately measurable in the score.

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 issued to individuals and businesses. Additionally, the bank earns money from service charges on deposit accounts, such as checking and savings accounts. Another significant revenue stream comes from fees related to investment advisory and wealth management services. The bank also invests in securities, which provides another source of income. Strategic partnerships with financial service providers enhance their product offerings and contribute to their earnings by expanding customer access to a broader range of financial products.

Isabella Bank Financial Statement Overview

Summary

Isabella Bank exhibits solid financial performance with consistent revenue growth and improved operational efficiency. The balance sheet reflects reduced leverage and a stable asset base. However, profitability margins have shown some pressure, and there is volatility in free cash flow growth.

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
89.98M	71.14M	71.23M	63.86M	64.77M
	Gross Profit
89.98M	71.14M	71.23M	63.86M	64.77M
	EBIT
88.27M	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
53.57M	69.33M	29.25M	49.16M	90.00M
	Net Debt
30.74M	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
20.52M	19.65M	23.73M	23.91M	20.48M
	Operating Cash Flow
20.52M	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: Negative
• Last Price: 22.25
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 22.25 is below the 20-day moving average (MA) of 22.96, below the 50-day MA of 23.95, and above the 200-day MA of 21.88, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 32.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISBA.

Isabella Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CZFS	75 Outperform	$271.15M	9.74	9.60%	3.44%	22.34%	51.03%
ISBA	69 Neutral	$159.41M	11.58	6.73%	5.03%	11.87%	-23.36%
CBFV	68 Neutral	$135.61M	11.15	8.77%	3.78%	31.41%	-44.35%
FSBC	67 Neutral	$540.70M	11.22	13.39%	3.15%	17.32%	-18.15%
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%
FUNC	58 Neutral	$168.63M	8.28	12.06%	3.24%	16.56%	40.31%
BYFC	56 Neutral	$54.45M	134.40	0.67%	―	20.43%	-92.31%

Isabella Bank Corporate Events

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.

Spark’s Take on ISBA Stock

According to Spark, TipRanks’ AI Analyst, ISBA is a Neutral.

Isabella Bank’s overall stock score reflects its solid financial performance and attractive valuation, offset by some technical analysis concerns. The company demonstrates strong revenue growth and operational efficiency, enhancing its financial stability. However, slight pressure on profitability margins and technical indicators suggest caution. The strategic board appointment is a positive development, but its impact is not immediately measurable in the score.

To see Spark’s full report on ISBA stock, click here.

Isabella Bank Appoints David Behen to Board

On March 5, 2025, Isabella Bank Corporation announced the appointment of David B. Behen to its Board of Directors, effective March 3, 2025. Mr. Behen, with over 20 years of experience in cybersecurity and executive leadership, is expected to enhance the bank’s strategic direction and commitment to security and innovation. His past roles include serving as Michigan’s State Chief Information Officer and co-founding SensCy, a cybersecurity company. His appointment is seen as a strategic move to bolster the bank’s expertise in technology and cybersecurity, potentially impacting its operations and industry positioning positively.