Isabella Bank News

{beginAccordion}

Isabella Bank Corporation (ISBA) Announces Nasdaq Listing

05-08-2025

Isabella Bank Corporation (OTCQX: ISBA) (the “Company”), the holding company for Isabella Bank, today announced that shares of its common stock will be listed for trading on The Nasdaq Capital Market under its current symbol, “ISBA,” beginning on Monday, May 12, 2025. The Company’s common stock will continue to be quoted for trading on the OTCQX under the same symbol through May 9, 2025.

“Listing our stock on Nasdaq is a significant milestone for the Company as we build our franchise value,” said the Company’s Chief Executive Officer Jerome Schwind. "We expect listing our stock on Nasdaq will make it more liquid and easier to buy and sell for shareholders. It also should make our stock more visible to potential investors.”

Sarah Opperman, the Company’s Board Chair, added, “We are pleased and look forward to having Isabella Bank Corporation stock trade on Nasdaq. This is a natural progression as the Company continues to grow, and as we continue to look to build long-term value for our shareholders.”

Nasdaq is the world's largest electronic stock market, listing approximately 3,300 public companies. The exchange trades more shares per day than any other U.S. equities market. It is also among the world's best-regulated stock markets, employing sophisticated surveillance systems and regulatory specialists to protect investors and provide a fair and competitive trading environment.

"We are very pleased to welcome Isabella Bank Corporation to Nasdaq's family of innovative, growth companies," said Andrew Hall, Senior Managing Director of Nasdaq New Listings. "We look forward to supporting Isabella Bank Corporation as it achieves its milestones in the years to come."

ABOUT THE CORPORATION

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

FORWARD-LOOKING STATEMENTS

Information in this release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. We intend such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result", “expect”, “could”, “may”, “plan”, “believe”, “estimate”, “anticipate”, “strategy”, “trend”, “forecast”, “outlook”, “project”, “intend”, “assume”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Company cautions you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Dave Reetz Retires After 38 Years at Isabella Bank, Michael Huenemann Promoted to Chief Lending Officer

04-30-2025

Neil McDonnell, President of Isabella Bank, announces the retirement of Dave Reetz and the appointment of Michael Huenemann to Chief Lending Officer, effective July 1, 2025.

“We are deeply grateful to Dave for his years of exceptional leadership and unwavering commitment to our customers and the Bank,” stated McDonnell. “As Chief Lending Officer, he played a pivotal role in driving our lending strategy and fostering lasting relationships in our communities. Dave’s impact will be felt for years to come, and we wish him all the best in this well-earned retirement.”

Dave’s remarkable career at Isabella Bank started in 1987 when he joined the team as a commercial loan officer. He became the branch manager of our Clare location in 1993 and has served as Isabella Bank’s Chief Lending Officer for the past 23 years. As Chief Lending Officer, Dave has been a catalyst behind our growth and success. His strategic vision has led to significant loan growth, while his dedication to building strong, long-lasting customer relationships has set the standard for excellence for the Bank. Dave’s deep industry expertise and steady leadership have been truly invaluable and will leave a lasting impact on both our organization and the communities we serve.

Dave earned his Bachelor of Business Administration from Ferris State University. He is a graduate of many esteemed programs, including the Perry Schools of Banking at Central Michigan University, Graduate School of Banking at the University of Wisconsin, Dale Carnegie Executive Leadership Program, Dale Carnegie Team Development Program, and Rollie Denison Leadership Institute.

Beyond his professional achievements, Dave demonstrated a strong commitment to civic engagement, volunteering with various community organizations, such as Sacred Heart Academy, Sacred Heart Church, Mt. Pleasant Rotary Club, Summit Clubhouse, Isabella Co-Expo Board, Union Township Little League, and Post 110 American Legion Baseball. Dave and his wife, Mary Kay, reside in Mt. Pleasant, where they have built a strong connection to the community over the years. They are proud parents to Mitch, Drew, Jackson, and Grace, and grandparents to Norah, Jolene, and Antonio. As Dave enters retirement, he looks forward to spending more quality time with his family, pursuing personal interests, and continuing to support the community in new and meaningful ways.

“We are excited to welcome Michael Huenemann into the role of Chief Lending Officer,” stated McDonnell. “With a strong track record as a commercial lender and a deep understanding of our communities’ needs, he is well-positioned to lead our lending strategy into the future. Michael brings a thoughtful, relationship-focused approach to lending, and we’re confident that he will continue to build on our strong foundation of service and innovation.”

Michael has vast knowledge of the banking industry, culminating in 30 years of experience in loan documentation, credit analysis, and commercial lending. He joined Isabella Bank in 2005, where he has served as Vice President and Senior Commercial Loan Officer, focusing on business development and commercial lending needs in the central Michigan area. As he moves into the Chief Lending Officer role, Michael will oversee all the lending activities of the Bank, developing and implementing strategies for continued growth of the loan portfolio while supporting the lending needs of the communities we serve.

Michael earned his bachelor’s degree from Graceland University. He is a graduate of the Graduate School of Banking at the University of Wisconsin, Rollie Denison Leadership Institute, Michigan Leadership Development Institute at Saginaw Valley State University, Dale Carnegie Team Development Program, and Dale Carnegie Executive Leadership Program.

Michael is deeply committed to community engagement. He has served as Treasurer and Board Chair of the Central Michigan Chapter of the American Red Cross, President and Treasurer of the Clare Rotary Club, Treasurer and member of the Faith Lutheran Church Board, member of the Mt. Pleasant Rocket Football Fundraising Committee, and Chair of the Mid Michigan College Campaign for Excellence, where he helped raise $5 million for a new liberal arts and business center. He volunteers his time as an instructor for Perry Schools of Banking and Junior Achievement of North Central Michigan. In addition, Michael participates in the American Cancer Society’s Relay for Life. He has received respected awards and recognition for his volunteerism, including the Mt. Pleasant Area Chamber of Commerce Eagle Award and American Red Cross Clara Barton Award. Michael is the proud parent of three children, Madison, Jordan, and Tyler, and resides in Mt. Pleasant with his wife, Jacquie.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX: ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Behen Joins Isabella Bank Board and Isabella Bank Corporation Board of Directors

03-05-2025

Jerome Schwind, President and Chief Executive Officer of Isabella Bank Corporation, announced the appointment of David B. Behen to the Isabella Bank Board and Isabella Bank Corporation Board of Directors, effective March 3, 2025.

“We are thrilled to welcome Mr. Behen to our Board of Directors,” stated Schwind. “He has extensive experience in cybersecurity and a proven track record of building successful organizations. As we continue to drive forward in our mission, Mr. Behen’s expertise will be invaluable in shaping our strategic direction and strengthening our commitment to security and innovation.”

Mr. Behen brings a wealth of experience to the Isabella Bank Corporation Board of Directors, holding executive leadership roles in the private and public sector for more than 20 years. Notably, he was a cabinet member for Michigan Governor Rick Snyder, serving as Director of the Department of Technology, Management, and Budget, and State Chief Information Officer. Under his leadership, Michigan gained national recognition for its advancements in information technology and cybersecurity. Additionally, Mr. Behen co-founded a software company, InfoReady Corporation, and served as Vice President and Chief Information Officer for its parent company, GDI Infotech. He was the Vice President and Chief Information Officer for La-Z-Boy Incorporated, leading global information technology reinvention and development of their cybersecurity program. Presently, Mr. Behen is the co-founder and Chief Strategy Officer at SensCy, a cybersecurity company focused on small and medium-sized organizations.

Mr. Behen earned both his Bachelor of Science and Master of Public Administration from Eastern Michigan University. He has received many esteemed awards and recognition for his contributions to information technology and cybersecurity, including the CIO 100 Award in 2006, 2007, 2013, 2016, and 2020. Mr. Behen holds several board and committee positions for professional and technology organizations. He is a past member of the Western Michigan University Board of Trustees and a current member of the Eastern Michigan University College of Engineering and Technology Advisory Board.

In addition to his professional achievements, Mr. Behen embodies a strong sense of dedication. He regularly provides his expertise to national and international audiences as a keynote speaker, expert panelist, and moderator. He spent many years coaching his children in sports and enjoys spending time outdoors and with his family. Mr. Behen has three children, Isabel, Joshua, and Olivia, and currently resides in Saline, Michigan with his wife, Rosalie.

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for over 121 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Isabella Bank Corporation Announces First Quarter 2025 Dividend

02-27-2025

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a first-quarter cash dividend of $0.28 per common share. The dividend will be payable March 31, 2025 to shareholders of record as of March 27, 2025. Based on ISBA's closing stock price of $24.60 per share as of February 26, 2025, the annualized cash dividend yield is 4.55%.

About the Corporation

Isabella Bank Corporation (OTCQX:ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.com).

Forward-Looking Statements
Information in this release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. We intend such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result", "expect", "plan", "believe", "estimate", "anticipate", "strategy", "trend", "forecast", "outlook", "project", "intend", "assume", "outcome", "continue", "remain", "potential", "opportunity", "comfortable", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, or included in any subsequent filing by the Company with the Securities and Exchange Commission. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Company cautions you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Isabella Bank Corporation Reports Fourth Quarter 2024 Results

01-30-2025

Isabella Bank Corporation (OTCQX: ISBA) (the "Company" or "we") reported fourth quarter 2024 net income of $4.0 million, or $0.54 per diluted share, an increase compared to $3.8 million, or $0.51 per diluted share in the same quarter of 2023. The non-GAAP measure of core earnings in the fourth quarter 2024 totaled $3.9 million, or $0.52 per diluted share, an increase compared to $3.8 million, or $0.50 per diluted share for the same quarter of 2023.

For the full year, net income was $13.9 million, or $1.86 per diluted share, compared to $18.2 million, or $2.40 per diluted share for 2023. The non-GAAP measure of 2024 core earnings was $15.0 million, or $2.01 per diluted share, compared to $18.0 million, or $2.37 per diluted share, in 2023.

FOURTH QUARTER 2024 HIGHLIGHTS (compared to fourth quarter 2023, unless otherwise stated)

Return on assets of 0.76%, compared to 0.73%
Core loan growth of 4% annualized, compared to 6%
Net interest margin of 2.99%, compared to 2.83%
Noninterest income growth of 13%, compared to 3%
Net loan charge-offs to average loans of 0.01%, compared to 0.03%

"Over the past several quarters we've emphasized that our financial performance is based on the strength of our core operations and maintaining our earnings momentum, and this quarter reflected the same focus," said the Chief Executive Officer Jerome Schwind. He noted that net interest margin expanded again in the fourth quarter, when non-recurring loan recoveries are excluded, and continue to grow core loans while adhering to our disciplined credit culture.

"We enter 2025 looking forward to continued repricing of low fixed rate loans to variable rates, and the redeployment of more than $70 million of securities that will amortize and mature during the year," Schwind added. "Our teams also have been working on initiatives that will drive higher noninterest income, mostly in the second half of 2025. We are well-positioned to deliver long-term value to our shareholders in 2025 and beyond.

"What sets Isabella Bank apart is the talent, dedication, and teamwork of our employees, who continue to deliver exceptional service and financial strength, as noted by reader's choice awards across our market," Schwind added. In September 2024, the Company was honored as the Best Bank in Isabella County by The Morning Sun People's Choice Awards. In December 2024, Midland Daily News recognized Isabella Bank as the Best Bank in Midland County through its Reader's Choice Awards. Most recently, in January 2025, The Pioneer named Isabella Bank the Best Bank in Mecosta County serving the Big Rapids region in its Pioneer All Area Reader's Choice Awards.

FINANCIAL CONDITION (December 31, 2024 compared to September 30, 2024, unless otherwise noted)

Total assets were $2.1 billion, down $20.7 million, primarily due to relatively flat total loans and a decline in available-for-sale (AFS) securities from amortization, maturities and a lower valuation of the portfolio in the fourth quarter.

AFS securities were $489.0 million, down $17.8 million, at the end of fourth quarter 2024. The decrease was due to a $5.5 million increase in the net unrealized loss and $17.7 million of amortization and maturities related to agency and municipal securities, offset by $5,400 of municipal bond purchases. Net unrealized losses on securities totaled $26 million and $21 million at the end of the fourth and third quarters, respectively. Net unrealized losses as a percentage of total AFS securities increased to 5% from 4% at the end of the third quarter of 2024 due to an increase in bond yields. While bond rates may vary from quarter to quarter, unrealized losses are expected to decrease as bonds approach their maturity dates over the next two years.

Total loans remained steady at $1.42 billion at the end of the fourth quarter, due to an increase of $11.0 million in residential loans and $4.3 million in commercial and industrial loans, offset by a $13.1 million decrease in advances to mortgage brokers. The increase in residential loans was related to steady new volume and continued slowing of prepayments. The growth in commercial and industrial loans primarily was in the hotel and construction industries. While commercial real estate loans remained relatively flat with the third quarter of 2024, the fourth quarter included a payoff of a $6.4 million relationship that had an elevated credit risk. Core loans, which excluded advances to mortgage brokers, grew $12.4 million or 4% on an annualized basis.

The allowance for credit losses increased $260 thousand to $12.9 million at the end of the fourth quarter of 2024. The increase mostly reflects $118 thousand from core loan growth, and the impact from a few commercial loans migrating to a special mention risk rating during the quarter. The downgraded loans are well collateralized and are not an indication of a negative trend in the broader portfolio. Nonaccrual loan balances decreased $265 thousand to $282 thousand at the end of the fourth quarter of 2024. Past due and accruing accounts between 30 to 89 days, as a percentage of total loans, was 0.40% compared to 0.16% at the end of third quarter 2024. The increase primarily was due to customers who typically make payments about 30 days in arrears, which becomes overdue in months with 31 days. Accordingly, the increase is not believed to be an indication of deteriorating credit quality.

Total deposits were $1.75 billion, down $34.8 million, at the end of the fourth quarter. The slight decrease primarily was due to an outflow from businesses and municipalities consistent with normal seasonal patterns, in addition to some expected outflows to fund large, regional projects. Certificates of Deposit accounts (CDs) were up $4.0 million, driven by the rate environment that attracted customers and investors as a safe place with a competitive rate.

Tangible book value per share was $21.82 as of December 31, 2024, compared to $22.14 on September 30, 2024. Net unrealized losses on AFS securities reduced tangible book value per share by $2.82 and $2.23 for the respective periods. Share repurchases totaled 27,608 during the fourth quarter for a value of $657 thousand at an average price of $23.80.

RESULTS OF OPERATIONS (December 31, 2024 to December 31, 2023 quarterly comparison, unless otherwise noted)

Net interest margin (NIM) was 2.99%, an increase from 2.98% last quarter and 2.83% in the fourth quarter of 2023. During the third quarter, we recovered the full contractual interest from two commercial loans that previously were charged off, which contributed 6 basis points to NIM. The book yield from securities was 2.18% and 2.23% during fourth quarters of 2024 and 2023, respectively. The weighted average maturity of our U.S. Treasury portfolio is less than 1.4 years, and the proceeds are expected to be reinvested in market rate loans and securities, or to pay off borrowed funds. The yield on loans expanded to 5.67% in fourth quarter, up from 5.20% in the same quarter of 2023. The expansion in loan yields was a result of higher rates on new loans and fixed rate commercial loans that have and continue to reprice to variable rates. At the end of the fourth quarter, approximately 40% of commercial loans were fixed at rates lower than current market rates, but the majority will contractually reprice to variable rates over the next four years. Cost of interest-bearing liabilities increased to 2.38% from 2.11% in the fourth quarter of 2023, but have stabilized compared to the cost in the previous quarter of 2.43%.

The provision for credit losses in the fourth quarter 2024 was $376 thousand, which reflects the $260 thousand change in the allowance for credit losses on loans and net charge-offs totaling $102 thousand. The provision for loan losses in the same period of 2023 was $684 thousand reflecting $200 thousand from growth in core loans and $381 thousand in net charge-offs. Charge-offs in the fourth quarter of 2023 included a $247 thousand write down of a commercial and industrial loan that was recovered in the third quarter of 2024.

Noninterest income was $4.0 million, an increase from $3.5 million in the fourth quarter of 2023. Customer service fees grew $81 thousand based on a higher number of transactional accounts. Wealth management income increased $119 thousand, or 13%, due to higher assets under management (AUM). Average AUM in the fourth quarter 2024 increased $53.6 million, or 9% over the prior year quarter, driven by growth in new accounts and higher security valuations. Other noninterest income in the fourth quarter 2024 included a $103 thousand recovery from a security that was written down in a previous year and $74 thousand from net gains on foreclosed assets.

Noninterest expenses were $13.3 million in the fourth quarter 2024 compared to $11.9 million in same quarter of 2023. The change mostly was due to higher compensation and benefit expenses totaling $1.2 million, which reflect annual merit increases in 2024 and more medical insurance claims compared to the fourth quarter of 2023.

About the Corporation

To read the full press release, please click here.

Kylie Bos Achieves CFP® Certification, Advancing Isabella Wealth's Client Offerings

01-21-2025

Isabella Wealth, a division of Isabella Bank, is pleased to announce that Kylie Bos, Trust Tax and Compliance Specialist, has earned the prestigious CERTIFIED FINANCIAL PLANNER® (CFP®) certification.

“Our team is thrilled to announce that Kylie has earned the prestigious CFP® designation,” said Randy Dickinson, Senior Vice President and Isabella Wealth Manager. “This accomplishment reflects her dedication to providing the highest level of expertise and ethical standards in financial planning. As a CFP® professional on the Isabella Wealth team, Kylie brings a unique depth of knowledge and skill that will further enhance the services we provide to our clients and the community.”

Kylie brings over a decade of experience in investments, treasury, and wealth management. Her career journey has included such roles as Financial Planning Intern, Relationship Associate, and Accounts Payable Manager, culminating in her current role at Isabella Wealth, where she oversees trust tax and compliance processes. Prior to joining Isabella Wealth in 2023, she assisted with the administration of two investment portfolios at Central Michigan University.

Kylie earned her Bachelor of Business Administration in Finance and Management from Saginaw Valley State University and her Master of Business Administration with a focus on value-driven organizations from Central Michigan University. She has also completed the Dale Carnegie Leadership program.

Kylie is deeply committed to community engagement. She serves on the City of Midland Beautification Advisory Committee and volunteers her time with the Greater Midland Races and Midland Area Community Foundation Scholarship Selection Committee. Kylie resides in Midland with her husband, Jared.

Isabella Wealth is a division of Isabella Bank. The Isabella Wealth team can assist with financial planning investment strategies, life insurance offerings, tax planning, and trusts, including financial affairs due to physical or mental incapacity, and can serve as a conservator.

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for over 122 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Same Space, New Face. Isabella Bank's Transformation Lends to Downtown Beautification

01-06-2025

Isabella Bank is pleased to announce that it will begin a complete interior renovation at our Main Office, located at 139 E. Broadway Street in Mount Pleasant, on Monday, January 20. This latest phase of improvements will offer an updated look and layout that is designed to efficiently serve our customers.

The renovations will include a modernized aesthetic and an improved banking experience. These upgrades are designed to redefine how we engage with the community, creating a more collaborative and efficient environment for everyone who visits the Bank.

This effort builds on the exciting exterior upgrades completed at the end of last year as part of the broader downtown Mount Pleasant revitalization initiative. These improvements included refreshing the paint colors, installing new signage, and adding a stunning mural created by Sacred Heart Academy students. The mural not only celebrates the vibrant culture of our community but has also become a centerpiece of the revitalized downtown area.

“We are proud to play a role in the transformation of the downtown Mt. Pleasant area,” stated Peggy Wheeler, Chief Operations Officer. “Last year’s exterior updates, combined with this year’s interior renovations, reflect our commitment to investing in our community. We’re not just enhancing our space for our customers; we’re helping to build a brighter future for the entire neighborhood.”

To ensure minimal disruption during the renovation process, the Main Office will remain open, and upgrades will be completed in two phases. During Phase I of the renovation, the building entrance off Broadway Street will be closed. Customers may use the parking lot entrance off Court and Mosher Streets to access the building. During Phase II, the parking lot entrance off Court and Mosher Streets will be closed, and customers may access the building using the front entrance off Broadway Street.

Isabella Bank is partnering with Thompson-Phelan Group, Inc. in Anchorville, MI on this renovation project. Work is estimated to be completed in the fall of 2025, at which time, the Bank will host a grand reopening event for customers and the public. Further details on the event will be announced closer to completion. We are grateful for the continued support and patience as we work to deliver a transformed space designed with our customers in mind.

For updates and progress of the renovations, please visit www.isabellabank.com/mainreno.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX: ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for over 122 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Corporation Announces Fourth Quarter 2024 Dividend

11-21-2024

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a fourth-quarter cash dividend of $0.28 per common share at its regular meeting on November 20, 2024. The dividend will be payable December 18, 2024 to shareholders of record as of December 16, 2024. Based on ISBA’s closing stock price of $24.89 per share as of November 20, 2024, the annualized cash dividend yield is 4.50%.

“I am pleased to announce our $0.28 per share fourth quarter cash dividend. This dividend shows our continued commitment to building shareholder value," said Jerome E. Schwind, President and Chief Executive Officer. "Our ongoing financial strength allows us the ability to provide our shareholders with an attractive dividend."

About the Corporation

Isabella Bank Corporation (OTCQX:ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation's investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.com).

Forward-Looking Statements

Information in this release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. We intend such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result", “expect”, “plan”, “believe”, “estimate”, “anticipate”, “strategy”, “trend”, “forecast”, “outlook”, “project”, “intend”, “assume”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, or included in any subsequent filing by the Company with the Securities and Exchange Commission. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Company cautions you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Isabella Bank Corporation Reports Third Quarter 2024 Results

10-24-2024

Isabella Bank Corporation (OTCQX: ISBA) (the "Company" or "we") reported third quarter 2024 net income of $3.3 million, or $0.44 per diluted share, compared to $4.4 million or $0.58 per diluted share in the same quarter of 2023. The non-GAAP measure of core earnings in the third quarter 2024 totaled $4.6 million, or $0.61 per diluted share, compared to $4.4 million or $0.58 per diluted share for the same quarter of 2023.

THIRD QUARTER 2024 HIGHLIGHTS

Return on assets of 0.62%, core return on assets of 0.87% (non-GAAP measure)
Loan growth of 12% annualized
Deposit growth of 14% annualized
Net interest margin of 2.98%
Nonaccrual loans to total loans ratio of 0.04%

"Profitability from operations improved during the third quarter as we delivered quarter-over-quarter expansion in net interest income with strong growth on both sides of the balance sheet while maintaining our disciplined approach to credit quality," said Isabella Bank Corporation's Chief Executive Officer Jerome Schwind. "Core earnings increased 31% over the second quarter 2024. That benefit was offset by a $1.6 million charge, as previously announced, related to overdrawn deposit accounts from a customer.

"Along with higher loan yields, our quarterly results include the benefit of recovering two previously charged-off commercial loans," he added. "With continued improvement in our top-line results, our focus is on opportunities to boost return on assets and lower the efficiency ratio. I am proud of our teamwork, dedication to risk management, and our commitment to provide consistent, sustainable long-term earnings."

FINANCIAL CONDITION (September 30, 2024 compared to June 30, 2024)

Total assets grew $46.8 million to $2.1 billion primarily due to loan growth funded by growth in deposits during the third quarter. Excess cash generated during the quarter was used to pay off wholesale borrowings totaling $24.7 million.

Securities available-for-sale increased $1.2 million to $506.8 million at the end of third quarter 2024. The increase was due to a $13.1 million improvement in the net unrealized loss, which was offset by $11.9 million of principal paydowns on mortgage-related securities and municipal security maturities. Net unrealized losses on securities totaled $21 million and $34 million at the end of the third and second quarters, respectively. Net unrealized losses as a percentage of total available-for-sale securities improved to 4% from 6% at the end of the second quarter of 2024 mostly due to a decrease in short-term bond yields. While bond rates may vary from quarter to quarter, we expect unrealized losses will continue to decrease as the bonds approach their maturity dates over the next three years.

Total loans grew $42.6 million to $1.42 billion at the end of the third quarter, led by a $36.9 million increase in advances to mortgage brokers. Residential loans increased $4.7 million on steady new volume and continued slowing of prepayments. Excluding advances to mortgage brokers, commercial loans increased $4.2 million due to continued growth in commercial and industrial loans and agricultural loans. At the end of September, $12.6 million of additional commercial real estate construction loans closed and the majority are expected to be funded early in the fourth quarter.

The allowance for credit losses decreased $460,000 to $12.6 million at the end of third quarter of 2024. Most of the decrease is due to improvement in historical loss experience, driven by the recovery of two previously charged-off loans in the quarter totaling $314,000. Nonaccrual loan balances decreased by $447,000 to $547,000 at the end of the third quarter of 2024. Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.16% compared to 0.05% at the end of third quarter of 2023. The increase is mostly the result of one agricultural loan with a balance of $1.1 million that is now current.

Total deposits were up $59.5 million to $1.78 billion at the end of the third quarter. The increase is consistent with normal seasonal patterns at the end of the third quarter that are generally experienced in money market accounts due to an inflow from businesses and municipalities. Certificates of Deposit accounts (CDs) were up $15.1 million, attributed to new accounts and customers' anticipation of lower deposit rates going into the fourth quarter 2024. Demand for retail CDs continues because of the rate environment.

Tangible book value per share was $22.14 as of September 30, 2024, compared to $20.60 on June 30, 2024. Net unrealized losses on available-for-sale securities reduced tangible book value per share by $2.23 and $3.60 for the respective periods. Share repurchases totaled 53,000 during the third quarter for a value of $1.0 million at an average price of $19.23.

RESULTS OF OPERATIONS (September 30, 2024 to September 30, 2023 quarterly comparison, unless otherwise noted)

Net interest margin as a percentage of earning assets (NIM) was 2.98%, compared to 2.85% last quarter and 2.99% in the third quarter of 2023. During the third quarter, we recovered the full contractual interest from two commercial loans that previously were charged off, which contributed 6 basis points to NIM. The book yield from securities was 2.21% and 2.23% during third quarters of 2024 and 2023, respectively. The weighted average maturity of our U.S. Treasury portfolio is less than 2 years, and the proceeds are expected to be reinvested in market rate loans and securities, or to pay off borrowed funds. The yield on loans expanded to 5.73% in third quarter, up from 5.17% in the same quarter of 2023. Excluding loan recoveries, the yield on loans was 5.65%. The expansion in loan yields is a result of higher rates on new loans and fixed rate commercial loans that have and continue repricing to variable rates. At the end of the third quarter, approximately 41% of commercial loans are fixed at rates that are lower than current market rates, but the majority will contractually reprice to variable rates over the next three to five years. Cost of interest-bearing liabilities increased to 2.43% from 1.77% in the third quarter of 2023, but have stabilized compared to the cost in the previous quarter of 2.39%.

The provision for credit losses was $946,000 in the third quarter, compared to a credit of $292,000 for the same period in 2023. The current year quarter includes the impact from the recovery of the contractual principal of two previously charged-off commercial loans totaling $314,000. That benefit was offset by a $1.6 million charge related to overdrawn deposit accounts from a single customer. The loans to the customer and related parties are well collateralized, and no additional credit provisioning was necessary in the third quarter. The credit in the prior year quarter mostly reflects loan recoveries in excess of charge-off activity.

Noninterest income was $3.5 million compared to $3.4 million in the third quarter of 2023. Customer service fees grew $99,000 based on a higher number of transactional accounts. Wealth management income increased $145,000, or 17%, due to higher assets under management (AUM). AUM increased $89.2 million over the prior year quarter driven by growth in new accounts and higher security valuations.

Noninterest expenses were $13.2 million in the third quarter 2024 compared to $12.7 million in same quarter of 2023. Compensation and benefit expenses increased $612,000 reflecting annual merit increases in 2024, and higher incentive compensation as compared to the third quarter of 2023.

About the Corporation

Forward-Looking Statements

Information in this release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. We intend such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result", "expect", "plan", "believe", "estimate", "anticipate", "strategy", "trend", "forecast", "outlook", "project", "intend", "assume", "outcome", "continue", "remain", "potential", "opportunity", "comfortable", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, or included in any subsequent filing by the Company with the Securities and Exchange Commission. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Company cautions you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

To read the full press release, please click here.

Sackett Joins Isabella Bank Corporation Board of Directors

09-17-2024

Jerome Schwind, President and Chief Executive Officer of Isabella Bank Corporation, announced the appointment of Brian R. Sackett to the Isabella Bank Corporation Board of Directors, effective September 15, 2024.

“The Isabella Bank Board is a diverse group of individuals who know the communities we serve. Mr. Sackett’s professional experience, knowledge, and dedication make him a valuable asset to both our Board and Bank,” stated Schwind.

Mr. Sackett’s vast experience in the food and agriculture sector began in 1987 when he joined the family business, Sackett Potatoes. Sackett Potatoes started in 1905, when the first crop was planted, and the Sackett family has grown potatoes every year since. Mr. Sackett became a partner in Sackett Potatoes in 1990 and, under his leadership, has grown the farming operation to a total of 18,000 acres, farming across three states: Michigan, Illinois, and North Carolina. As a senior partner, he oversees the general operations and finances and is in charge of the potato and grain marketing and customer relations, as well as the maintenance and operation of the business’ potato storage and equipment.

Mr. Sackett has received many esteemed awards and recognitions for his contributions to agriculture and natural resources, including the National Environment Stewardship Award in 1998, the Michigan Potato Industry Commission’s Distinguished Service Award in both 2000 and 2009, the Michigan Vegetable Council’s Master Farmer in Vegetable Crops Award in 2006, and the MSU College of Agriculture and Natural Resources (CANR) Distinguished Service Award in 2021. For the past 30 years, he has served the potato industry in many capacities on both a state and national level, helping with research and development. Mr. Sackett currently serves on the Research Committee for the Michigan Potato Industry Commission and the Chip Committee for Potatoes USA. He also has served on our Isabella Bank West Region Advisory Board since 2012, helping to provide guidance on regional bank initiatives and reporting on local business opportunities while advocating for the bank within the community.

In addition to his professional achievements, Mr. Sackett embodies a strong sense of community and dedication. Charitable contributions are important to Mr. Sackett, and he is proud to give monetary support to local organizations such as Angels of Action, St. Michael Catholic School, Chippewa Hills School District, Lakeview Community Schools, Morley Stanwood Community Schools, Susan P. Wheatlake Regional Cancer Center, and 4-H programs in both Clare and Mecosta counties.

Mr. Sackett is native to the West Central Michigan Region and has two children, Tricia and Tyler, two grandsons, and two granddaughters. He and his wife, Abby, reside in Mecosta.

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Isabella Bank Corporation Announces Third Quarter 2024 Dividend

09-04-2024

Isabella Bank Corporation (OTCQX: ISBA) today announced its Board of Directors declared a third-quarter cash dividend of $0.28 per common share at its regular meeting on August 28, 2024. The dividend will be payable September 30, 2024 to shareholders of record as of September 26, 2024. Based on ISBA's closing stock price of $19.15 per share as of August 28, 2024, the annualized cash dividend yield is 5.85%.

"I am pleased to announce a $0.28 per share third quarter cash dividend. We continually focus on our financial performance and implementing strategic initiatives to improve shareholder value," said Jerome E. Schwind, President and Chief Executive Officer. "Our ongoing commitment to provide an attractive return on shareholder investment is evidenced by our dividend yield."

About the Corporation
Isabella Bank Corporation (OTCQX:ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Forward-Looking Statements
This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Reports Second Quarter 2024 Results

07-25-2024

Isabella Bank Corporation (OTCQX: ISBA) (the "Company") reported second quarter 2024 net income of $3.5 million, or $0.46 per diluted share, compared to $4.6 million or $0.61 per diluted share in the same quarter of 2023.

SECOND QUARTER 2024 HIGHLIGHTS (compared to second quarter 2023, unless otherwise stated)

Total loans grew by an annualized rate of 5%
4.58% earning asset yield, compared to 4.11%
7% increase in wealth management income
0.07% ratio in nonperforming loans to total loans

"We are pleased the negative trend in net interest margin over the past several quarters has reversed, and we gained five basis points over the first quarter of 2024," said Isabella Bank Corporation's Chief Executive Officer Jerome Schwind. "The repricing of earning assets and continued loan growth have expanded yields beyond the growth of our cost of funds.

"While total commercial loans grew 1% during the quarter," he added, "we have a strong loan pipeline going into the third quarter. Given commercial loan growth prospects and the continued repricing of our book of business, we see a stronger second half of 2024, regardless of how interest rates change."

FINANCIAL CONDITION (June 30, 2024 compared to March 31, 2024)

Total assets remained steady at $2.06 billion. Loan growth during the second quarter was offset by lower cash and security balances and was primarily funded by security amortization and Federal Home Loan Bank borrowings.

Securities available-for-sale decreased $11.9 million to $505.6 million at the end of second quarter 2024 due to municipal maturities and principal paydowns on mortgage-related securities. This was offset in part by a smaller unrealized loss on the total portfolio during the period. Net losses on securities totaled $34 million and $34.8 million at the end of the second and first quarter, respectively. Unrealized losses represent 6% of total available-for-sale securities in both periods and will continue to decrease as bonds approach their maturity dates over the next three years.

Total loans grew $16.1 million to $1.38 billion at the end of second quarter 2024, led by residential loans, adding $8.5 million in balances due to a slowing of prepayments on steady new volume. Total commercial loans grew $8.8 million due to higher advances to mortgage brokers. The commercial pipeline remains strong.

The allowance for credit losses decreased $295,000 to $13.1 million at the end of second quarter 2024. A majority of the decrease was due to a few nonaccrual commercial loans that were settled at book value with specific allowances totaling $212,000. Nonaccrual loan balances decreased $289,000 for the same reason. Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.11% compared to 0.58% at the end of first quarter 2024. The decrease is mostly the result of higher past due balances at the end of March due to a group of residential loans that typically make payments about 30 days in arrears, which become overdue when the 31st day lands on a business day. Overall, credit quality remains strong, with no negative trends.

Total deposits were $1.72 billion at the end of the second quarter, a decline of 2.6% or $46.0 million from the last quarter. However, demand for retail certificates of deposit accounts (CDs) continues due to the rate environment, resulting in a $2.3 million increase during the second quarter.

The level of total deposits resulted in a funding gap that was filled with short-duration Federal Home Loan bank advances. The Bank continues to have robust liquidity levels and capital. As of June 30, 2024, the Bank had $754 million of unencumbered sources of liquidity and strong capital ratios; the Tier 1 Leverage Ratio was 8.83%, Tier 1 risk-based capital was 12.37%, and Total risk-based capital was 15.29%.

Tangible book value per share was $20.60 as of June 30, 2024, compared to $20.35 on March 31, 2024. Net unrealized losses on available-for-sale securities reduced tangible book value per share by $3.60 and $3.67 for the respective periods.

RESULTS OF OPERATIONS (June 30, 2024 to June 30, 2023 quarterly comparison)

Net interest margin was 2.83%, up from 2.78% last quarter and was 3.11% a year ago. The decrease from a year ago primarily was driven by a higher cost of funds. The book yield from securities was 2.23% and 2.26% during second quarter 2024 and 2023, respectively. The yield includes the effect of the investment of excess cash in shorter term U.S. Treasury securities following the COVID pandemic in 2021 and 2022. These securities will mature over the next 6 to 30 months, and the proceeds are expected to be reinvested in market rate loans and securities, or to pay off borrowed funds. The yield on loans expanded to 5.49% in second quarter 2024, up from 4.90% in the same quarter of 2023. The expansion in loan yields is a result of higher rates on new loans and fixed rate commercial loans that have and will continue repricing to variable rates. Cost of interest-bearing liabilities increased to 2.37% from 1.41% in second quarter 2024 due to several interest rate hikes throughout 2023.

The provision for credit losses was $170,000 in the second quarter 2024 and $196,000 for the same period in 2023. The provision for the current year quarter reflects growth in residential loans and a $72,000 increase due to higher unfunded commitments.

Noninterest income was $3.6 million in both the second quarter of 2024 and 2023. Customer service fees grew $81,000 based on a higher number of transactional accounts. Wealth management income increased $67,000, or 7%, due to higher assets under management (AUM). AUM increased $54.3 million over the last year driven by growth in new accounts and higher security valuations.

Noninterest expenses were $12.9 million in second quarter 2024 compared to $12.5 million in second quarter 2023. Compensation and benefit expenses increased $409,000 and reflect annual merit increases and medical claim adjustments totaling $190,000. Higher card usage drove a $78,000 increase in ATM and debit card fees.

About the Corporation
Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Forward-Looking Statements
This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

For the full press release, please click here.

Isabella Bank Announces Promotion of Pratt to Branch Officer

07-08-2024

Neil McDonnell, President of Isabella Bank, announced the promotion of Amanda Pratt to Branch Officer. As Branch Officer, Amanda will continue to oversee the daily operations of the five Mt. Pleasant branches and build relationships within the community.

“Amanda continues to develop into a strong, dependable leader. Her unwavering commitment to her customers, team, and the community positively impacts our organization, and we are grateful for her dedication,” stated McDonnell.

Amanda has completed the Dale Carnegie Skills for Success and Becoming a Trusted Advisor programs and recently completed her first year at the Michigan Bankers Association Perry Schools of Banking, exemplifying her dedication to growing in her field. Amanda joined Isabella Bank in 2017, working as a teller for 2 years before becoming branch manager at our Main branch. In 2023, she took on a new role as Senior Branch Manager, supporting the Central Region of the Bank with its strategic strategy and mentoring branch managers and supervisors in the Mt. Pleasant area, in addition to overseeing the day-to-day operations and building customer relationships.

Amanda currently serves on the Mt. Pleasant Area Community Foundation’s Community Relations Committee and is a newly appointed board member for Morey Flex Tech High School. She is the Mt. Pleasant Farmers’ Market Shift Coordinator and helps teach financial literacy lessons for R.I.S.E. Advocacy, Inc. In her spare time, Amanda volunteers with the Mt. Pleasant Discovery Museum, Mt. Pleasant Sports Boosters, and Hopewell Ranch at various events. She resides in Blanchard with her husband, Matthew, and son, Dean.

Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX:ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Announces Promotion of Campbell to Branch Officer

07-08-2024

Neil McDonnell, President of Isabella Bank, announced the promotion of Coy Campbell to Branch Officer of Hemlock. As Branch Officer, Coy will continue to manage the daily operations of the branch and serve the retail lending needs of the Hemlock area.

“Coy is dedicated to both Isabella Bank and the Hemlock community. Her leadership and outstanding customer service make her a trusted advisor within our team and the community,” stated McDonnell.

Coy completed the Dale Carnegie Leadership Training for Managers and Isabella Bank’s Expert Teller Training program. She has taken many courses on leadership, new accounts, and individual retirement accounts (IRAs) with the Michigan Bankers Association, exemplifying her dedication to helping her customers and community. Coy is also a Notary Public.

Coy has spent over 25 years in the banking industry, beginning her career at Isabella Bank in 1998. She worked as a teller for 21 years before becoming branch supervisor and later branch manager of our Hemlock branch. Coy actively serves her community as Treasurer for the Hemlock Business Association and has volunteered at many of their events throughout the years. In addition, she spent several years volunteering with Habitat for Humanity. Coy has two children, Rebecca and Thomas, and two grandchildren, Brady and Conner. She resides in Hemlock.

Peterson Joins Isabella Bank as Vice President, Director of Marketing

07-08-2024

Neil McDonnell, President of Isabella Bank, is pleased to welcome Lori Peterson as Vice President and Director of Marketing. Lori will oversee the daily operations of the marketing and community relations functions of the Bank.

“I am thrilled to have Lori join our team. She has vast knowledge and experience in both marketing and financial services and is a great fit for Isabella Bank. We look forward to the future as Lori helps build and deepen the Bank’s relationships with our customers and communities,” stated McDonnell.

Lori’s wealth of experience includes providing marketing and creative solutions to a variety of businesses for over 20 years. She spent six years in financial services as Director of Creative Services at Brookstone Capital Management, a registered investment advisory firm in Illinois. Most recently, she managed marketing and branding for the College of Education and Human Services at Central Michigan University.

Lori earned her bachelor’s degree from Northern Illinois University and is an American Marketing Association Professional Certified Marketer in Digital Marketing and a Digital Marketing Institute Certified Digital Marketing Professional. She resides in Mount Pleasant.

Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX: ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Corporation Announces Second Quarter 2024 Dividend

05-30-2024

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a second-quarter cash dividend of $0.28 per common share at its regular meeting on May 29, 2024. The dividend will be payable June 28, 2024 to shareholders of record as of June 26, 2024. Based on ISBA’s closing stock price of $19.00 per share as of May 29, 2024, the annualized cash dividend yield is 5.89%.

“I am pleased to announce the second quarter cash dividend of $0.28. This dividend is a reflection of our continued commitment to building shareholder value, " said Jerome E. Schwind, President and Chief Executive Officer. "Our

constant effort to implement strategic initiatives and financial performance has enabled us to continue to provide

an attractive return on shareholder investment, which is evidenced by the dividend yield."

About the Corporation

Schaefer Joins Isabella Bank Corporation as Chief Financial Officer

04-15-2024

Isabella Bank Corporation proudly announces the appointment of William M. Schaefer as its Chief Financial Officer, effective April 1, 2024. Jerome Schwind, President, and Chief Executive Officer of Isabella Bank Corporation, expressed his warm welcome for Schaefer, stating, "I am thrilled to welcome Bill to our team! His extensive experience and remarkable skill set align perfectly with our goals and strategies, making him an excellent addition to the bank."

Schaefer brings a wealth of experience accumulated over 23 years in the accounting and finance sector. His professional journey encompasses roles in public accounting and controllership. Notably, Schaefer served as Senior Vice President Controller and Vice President of Finance at prominent regional and community banks on the East Coast. Additionally, he held a Controller position for an international manufacturing company, providing him with invaluable insights gained from his work abroad.

Schaefer holds a Bachelor of Science in Accounting from the University of Albany in New York and is a Certified Public Accountant, exemplifying his dedication to excellence in his field.

In addition to his professional achievements, Schaefer embodies a strong sense of community and dedication. He and his wife have embraced their relocation from Bar Harbor, Maine, to Mount Pleasant, Michigan, reflecting his eagerness to immerse himself in his new role and surroundings.

Isabella Bank, a subsidiary of Isabella Bank Corporation (OTCQX:ISBA), has been a cornerstone of the community since its establishment in 1903. With a legacy spanning 120 years, Isabella Bank remains steadfast in its commitment to providing unparalleled banking services tailored to the needs of its customers. With 31 locations across eight Mid-Michigan counties, the bank offers a comprehensive range of personal and commercial lending and deposit products, alongside investment, trust, and estate planning services through Isabella Wealth. For more information about Isabella Bank Corporation, please visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Corporation Announces First Quarter 2024 Dividend

03-01-2024

Isabella Bank Corporation (OTCQX: ISBA) today announced its Board of Directors declared a first-quarter cash dividend of $0.28 per common share at its regular meeting on February 28, 2024. The dividend will be payable March 29, 2024 to shareholders of record as of March 27, 2024. Based on ISBA's closing stock price of $19.37 per share as of February 28, 2024, the annualized cash dividend yield is 5.78%.

"I am pleased to announce our $0.28 cash dividend, which continues to provide our shareholders with an attractive yield," said Jerome E. Schwind, President and Chief Executive Officer. "Our dividends are just one way in which we strive to increase shareholder value, along with maintaining financial strength and performance."

About the Corporation

Isabella Bank Corporation Announces Fourth Quarter and 2023 Earnings
Continued growth in loans, Isabella Wealth; outpaced by continued interest rate pressure

02-16-2024

Isabella Bank Corporation (the “Corporation”) (OTCQX: ISBA) reported fourth quarter and year-end 2023 earnings, demonstrating resilience during a year buffeted by rising interest rates on deposit accounts. Net income for the fourth quarter was $3.8 million and $18.2 million for the year ended December 31, 2023. Earnings per common share were $0.51 in the fourth quarter and $2.42 for the year.

Among the 2023 highlights:

Gross loans increased more than $85 million, or 7%.
Isabella Wealth assets grew 25% to $641 million, leading to an increase in wealth management fees of $552,000, or 18%, over 2022.

Interest income increased $13.8 million, or 21%, over 2022, offset by an increase in interest expense of $16.4 million.

Shareholders earned a cash dividend of $1.12 per share in 2023, with an annualized dividend yield of 5.21%.

“Our 2023 financial results demonstrate Isabella Bank’s ability to come out of a tough year still delivering strong results for shareholders,” said Jerome E. Schwind, President and Chief Executive Officer. "Our liquidity and capital ratios remain strong and we delivered results against our strategic plan based on our strength in the marketplace.

"We continued to grow our footprint — including adding our eighth mid-Michigan county — and customers continued to turn to Isabella Bank, driving our growth in loans and our wealth management business,” he added.

Operating Results

Net income: Net income for the fourth quarter of 2023 was $3.8 million, a decrease of $2.5 million compared to the same period in 2022. For the year ended December 31, 2023, net income was $18.2 million, compared to

$22.2 million in 2022. The declines were driven by a rise in interest expense resulting largely from increased interest rates on deposit accounts.

Net interest income, fourth quarter 2023: Net interest income for the fourth quarter 2023 declined $2.7 million, or 16%, compared to the fourth quarter of 2022. Interest income increased $3.1 million, or 17.5%, driven by core loan growth, while continued interest rate pressure was the primary cause of a $5.8 million increase in interest expense over the same period in 2022.

Net interest income, year-end 2023: Net interest income for the year ended December 31, 2023 decreased $2.5 million, or 4.2%, compared to 2022. Rising interest rates and growth in core loans led to a $13.8 million, or 21%, increase in gross interest income during 2023, compared to 2022. At the same time, rising interest rates on deposits and an increase in borrowings led to a $16.4 million increase in interest expense for 2023, compared to 2022.

Noninterest income and expenses, fourth quarter 2023: Noninterest income increased $244,000 compared to the fourth quarter of 2022, primarily driven by wealth management fees and ATM and debit card income. Noninterest expenses for the quarter were essentially unchanged in comparison to the fourth quarter of 2022.

Noninterest income and expenses, year-end 2023: Noninterest income for the year ended December 31, 2023 increased $161,000 compared to 2022. The increase was driven by wealth management fees and ATM and debit card fee income, offset by a decrease in mortgage servicing rights and gain on sale of loans, as residential mortgages sold to the secondary market declined. Noninterest expense increased $2.5 million compared to 2022, primarily the result of increased compensation, equipment expense, other losses, and FDIC insurance premiums.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 2.85% and 3.05% for the fourth quarter and year ended December 31, 2023, respectively, compared to 3.43% and 3.18% for the same periods in 2022. To maintain a competitive edge in the rising interest rate environment, rates on several deposit products began to increase in the fourth quarter of 2022 and continued throughout 2023. Over the last year, the level of borrowings increased to fund loan growth. These factors have negatively impacted the net yield on interest earning assets slowing its rate of growth.

Balance Sheet

Assets: Total assets were $2.06 billion and assets under management were $2.95 billion as of December 31, 2023. Managed assets included loans sold and serviced of $249 million as well as $641 million in investment and trust assets managed by our wealth business.

Loans: Loans outstanding as of December 31, 2023 totaled $1.35 billion, growing $85.3 million since December 31, 2022. Credit quality remained strong, as evidenced by total past due and nonaccrual loans which were 0.37% of gross loans as of December 31, 2023.

Deposits: Deposits were $1.72 billion as of December 31, 2023, declining $20.6 million, or 1.2%, since December 31, 2022. A decline in demand deposits was driven by contraction in money supply as the Federal Reserve Bank pulled money out of the banking system.

Capital: The Bank continues to be considered a “well-capitalized” institution, as its capital ratios exceeded the minimum designated requirements. As of December 31, 2023, the Bank’s Tier 1 Leverage Ratio was 8.71%, Tier 1 Capital Ratio was 12.48% and Total Capital Ratio was 13.42%, compared to minimum requirements to be considered well capitalized of 5.0%, 8.0% and 10.0%, respectively.

Dividend: The Corporation paid a $0.28 per common share cash dividend for the fourth quarter of 2023. Total cash dividends paid for the year ended December 31, 2023 totaled $1.12, a 2.75% increase over dividends paid in 2022. Based on the Corporation’s closing stock price of $21.50 as of December 29, 2023, the annualized cash dividend yield was 5.21%.

About the Corporation

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled “Risk Factors” and “Forward Looking Statements” set forth in Isabella Bank Corporation’s filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission’s Public Reference facilities and from its website at www.sec.gov.

McDonnell Appointed to Isabella Bank Corporation and Isabella Bank Boards

02-05-2024

Jerome E. Schwind, President and Chief Executive Officer, and Sarah R. Opperman, Board Chair of Isabella Bank Corporation and Isabella Bank, announce the appointment of Neil M. McDonnell to the Corporate and Bank Boards, effective January 31, 2024.

Mr. McDonnell was named Bank President earlier this month. In his previous role as the corporation’s Chief Financial Officer, he was instrumental in implementing a five-year strategic plan and driving initiatives to improve financial performance and metrics.

“Mr. McDonnell joined Isabella Bank in 2018 with three decades of banking experience,” Opperman said. “His expertise in banking and finance, together with his understanding of our various stakeholders, will serve the Board well.”

Mr. McDonnell is a member of the Board of Directors of Community Bankers of Michigan, a member of the Mid-Michigan Industries Board of Directors and volunteers with Habitat for Humanity of Isabella County Finance Committee. McDonnell and his wife, Kenda, have three children and live in Lake Isabella.

“Mr. McDonnell’s thoughtful, collaborative and creative style are well suited to his new role as Bank President and with the Board,” Schwind said.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX:ISBA). Established in 1903, Isabella Bank has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Schwind Assumes Role as President and CEO of Isabella Bank Corporation
McDonnell Appointed as Bank President

01-19-2024

Jerome E. Schwind has assumed the role of top executive at Isabella Bank Corporation, the eleventh such leader in the community bank’s 120-year history.

Schwind was appointed President and Chief Executive Officer of Isabella Bank Corporation and Chief Executive Officer of Isabella Bank by the corporate Board of Directors last April and stepped into the position on Jan. 5. He succeeds Jae A. Evans, who retired after serving in those roles for a decade. Neil M. McDonnell, the Bank’s Chief Financial Officer, also replaces Schwind as Bank President.

“Jerome and Neil are highly experienced professionals and well-respected community bankers,” said Sarah R. Opperman, Chair of the Isabella Bank Corporation Board of Directors. “They have strong technical skills, are highly strategic and understand communities, customers and employees.”

Isabella Bank’s reputation for focusing on customers and communities attracted Schwind to join its ranks 25 years ago after nearly a decade with other banking institutions.

“Isabella Bank helps create community stability,” Schwind said. “We’re a source of credit to support the progress of customer dreams and a source of return for shareholders, whether they live in our region or across the country.

“To be part of the lives of local residents and businesses — of local communities — that’s why I come to work every day; it’s why I work for Isabella Bank,” he said.

Schwind had been Bank President since late 2015, previously serving as Executive Vice President and Chief Operations Officer, and Mecosta Division President. He has chaired the Michigan Bankers Association and Middle Michigan Development Corporation. He has served on the boards of the Great Lakes Bay Regional Alliance, Mecosta County Medical Center, Leadership Mecosta, Big Rapids Area Industrial Development Corporation and Mecosta County Economic Development Corporation. He has been both a Kiwanis and Rotary member.

McDonnell joined Isabella Bank in 2018 as Chief Financial Officer after decades with other financial institutions. At Isabella, he has been instrumental in implementing a five-year strategic plan and driving initiatives to improve financial performance and metrics. He also leads Isabella Wealth, the Bank’s investment and trust management business. He is a newly-elected member of the Board of Directors of Community Bankers of Michigan, a member of the Mid-Michigan Industries Board of Directors and volunteers with Habitat for Humanity of Isabella County Finance Committee.

“I know how important our financial success is in order to prioritize customer service enhancements and growth,” McDonnell said. “Moving forward, we will continue to focus on the customer experience and their needs.

“We know our history and what got us to where we are today, and we’ll build on that foundation as we look ahead to tomorrow,” he said.

Evans was CEO from January 2014 to January 2024. He will continue to leverage his 47 years of banking experience as a member of both the corporate and bank Boards of Directors.

Isabella Bank Corporation Announces Fourth Quarter 2023 Dividend

11-30-2023

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a fourth-quarter cash dividend of $0.28 per common share at its regular meeting on November 29, 2023. The $0.28 dividend brings year-to-date cash dividends to $1.12, increasing 2.75% over cash dividends paid in 2022. The dividend will be payable December 15, 2023 to shareholders of record as of December 13, 2023. Based on ISBA's closing stock price of $19.97 per share as of November 29, 2023, the annualized cash dividend yield is 5.61%.

"The fourth quarter cash dividend of $0.28 represents the results of our continued commitment to deliver shareholder value, led by our focus on maintaining financial strength and performance," said Jae A. Evans, President and Chief Executive Officer.

"Our commitment to growth was recently evidenced by the addition of a new loan and wealth office in downtown Bay City. This location marks our first in Bay County, expanding our presence to eight counties. 2023 also marked Isabella Bank's 120th anniversary. We are incredibly proud to be the leading independent bank for the communities we have served for 120 years," Evans added.

About the Corporation

Isabella Bank Corporation (OTCQX:ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Announces Third Quarter 2023 Earnings
Growth in core loans and deposits; pricing competition continues

10-19-2023

Isabella Bank Corporation (the “Corporation”) (OTCQX: ISBA) has reported net income of $4.4 million for the third quarter of 2023 and $14.4 million for the nine-month period ended September 30, 2023. Earnings per common share were $0.59 for the third quarter of 2023 and $1.91 for the first nine months of the year.

Third Quarter 2023 Highlights:

Core loan portfolio grew $14.6 million as borrowing demand remained steady.
Deposits grew $54.5 million, or 3.2%, despite strong pricing competition in the market.
Wealth management fees increased 26.4% compared to the third quarter of 2022.
Shareholders earned a cash dividend of $0.28 per share, with an annualized dividend yield of 5.32%, as of September 30, 2023.

“Our financial results for the third quarter are strong despite the continued pressure of rising interest rates and economic uncertainty,” said Jae A. Evans, President and Chief Executive Officer. “Competition for deposits continued during the third quarter, leading to increased deposit rates and pressure on our net interest margin. We've benefited from core and non?core loan growth which has mitigated some of this pressure.

“We remain focused on the long?term success of the bank with strategic decisions and initiatives designed to enhance shareholder value and the customer experience," Evans added. "We are pleased to have recently opened a new loan and wealth office in downtown Bay City, expanding our physical presence to Bay County. In addition, a new full?service branch in Saginaw opened earlier this year. The continued, steady growth of our footprint demonstrates our commitment to customers and communities as a leading, independent community bank.”

Operating Results

Net income: Net income for the third quarter of 2023 was $4.4 million, compared to $5.9 million in the third quarter of 2022. Net income for the first nine months of the year was $14.4 million, compared to $15.9 million for the same period in 2022. Interest income continued to improve in the third quarter, but fell short of the growth in interest expense due to rising rates on deposits and increased borrowings.

Net interest income: Net interest income for the third quarter of 2023 decreased by $1.5 million compared to the third quarter of 2022. For the first nine months of the year, net interest income increased by $123,000 compared to the same period in 2022. Rising interest rates and loan growth led to an increase in gross interest income of $3.5 million and $10.7 million for the third quarter and first nine months of 2023, compared to the same periods in 2022. Conversely, rising interest rates on deposits and an increase in borrowings led to a $5.0 million and $10.6 million increase in interest expense for the third quarter and first nine months of 2023, compared to the same periods in 2022.

Noninterest income and expenses: Noninterest income was $3.4 million for the third quarter of 2023 versus $3.3 million for the third quarter of 2022. For the first nine months of 2023, noninterest income decreased $83,000 compared to the same period in 2022, driven by a $574,000 reduction in mortgage servicing rights income and a $336,000 decline in the gain on the sale of mortgage loans, offset largely by a $408,000, or 18.4%, increase in wealth management fees. Noninterest expenses increased $741,000 during the third quarter of 2023 and $2.5 million for the nine?month period ended September 30, 2023 in comparison to the same periods in 2022. The increase was the result of increased compensation, equipment expense, FDIC insurance premiums, and other losses.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 3.02% and 3.12% for the three and nine months ended September 30, 2023, compared to 3.28% and 3.10% for the same periods in 2022. While the third quarter of 2023 fell in comparison to the same period in 2022, net yield for the first nine months of 2023 improved through strategic initiatives ? such as the reduced reliance on higher?cost borrowed funds and brokered deposits ? that were implemented in prior periods in anticipation of rising interest rates. To maintain a competitive edge in a rising interest rate environment, the Bank increased most of its deposit rates beginning in the fourth quarter of 2022 and in recent periods, increased the level of borrowings to fund loan growth. As a result, this has negatively impacted the net yield on interest earning assets and further increases could slow the rate of improvement in the net yield on interest earning assets.

Balance Sheet

Assets: Total assets were $2.1 billion and assets under management were $3 billion as of September 30, 2023. Managed assets include loans sold and serviced of $252 million as well as $591 million in investment and trust assets managed by Isabella Wealth. Investment and trust assets increased $77 million, or 14.9%, since December 31, 2022.

Loans: Loans outstanding as of September 30, 2023 totaled $1.3 billion. Core loans increased $14.6 million during the third quarter and rose $45.7 million compared to December 31, 2022. This reflects growth in the commercial and consumer portfolios. In addition, the Bank resumed its engagement in a mortgage participation program in the second quarter, with loans outstanding of $24.8 million as of September 30, 2023. Adherence to strong underwriting standards are reflected in the continued low levels of total past due and nonaccrual loans, which were $1.2 million, or 0.09% of total loans, at the end of the period.

Deposits: Total deposits were $1.8 billion as of September 30, 2023, an increase of $25.2 million, or 1.4%, since December 31, 2022. Strong pricing competition within the industry continues.

Capital: The Bank is considered a “well?capitalized” institution, as its capital ratios exceeded the minimum designated requirements. As of September 30, 2023, the Bank’s Tier 1 Leverage Ratio was 8.97%, Tier 1 Capital Ratio was 12.75%, and Total Capital Ratio was 13.67%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0%, and Total Capital Ratio of 10.0%.

Dividend: During the third quarter of 2023, the Corporation paid a $0.28 per common share cash dividend. Based on the Corporation’s closing stock price of $21.05 as of September 29, 2023, the annualized cash dividend yield was 5.32%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state?chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid?Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s investor relations firms include Renmark Financial Communications, Inc. (www.renmarkfinancial.com) and Stonegate Capital Partners, Inc. (www.stonegateinc.com).

Forward-Looking Statements

This press release includes forward?looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward?looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled “Risk Factors” and “Forward Looking Statements” set forth in Isabella Bank Corporation’s filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission’s Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Announces Promotion of Smith to Senior Vice President, Chief Technology Officer

10-10-2023

Jae Evans, Chief Executive Officer of Isabella Bank, announced the promotion of Julie Smith to Senior Vice President and Chief Technology Officer. As Senior Vice President, Chief Technology Officer, Julie will continue to oversee the daily operations of the Information Technology Services Department and the technological needs of the Bank.

“Julie’s skills and experience continue to be a great asset to Isabella Bank. Her unwavering commitment to excellence and innovative leadership positively impact our organization and we are grateful for her dedication, as it ensures our continued technological relevance and success,” stated Evans.

Julie earned her Bachelor of Science in Political Science and Business Law from Central Michigan University. She is also a graduate of the Perry School of Banking, Dale Carnegie Executive Leadership and Team Development programs, and Rollie Denison Leadership Academy. In addition, Julie has earned two prestigious designations within the information technology industry, Certified in the Governance of Enterprise IT (CGEIT) and Certified in Risk and Information Systems Control (CRISC).

Julie has been with Isabella Bank for 40 years, spending 1 year as a high school co-op student and 39 years in Information Technology Services. She is a member of the Michigan Council of Women in Technology, working to inspire and grow women in the technology field. Julie has 3 children and 5 grandchildren. She currently resides in Midland with her husband, Paul.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX:ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Announces Promotion of Acker to Assistant Vice President

10-10-2023

Jae Evans, Chief Executive Officer of Isabella Bank, announced the promotion of Tama Acker to Assistant Vice President of Collections. As Assistant Vice President, Tama will continue to service the collection functions at Isabella Bank.

“Tama continues to be a dependable resource for Isabella Bank. She is committed to helping our customers and we are proud of her dedication to help them find financial solutions that fit their needs,” stated Evans.

Tama earned her associate’s degree in Accounting from Davenport University. Tama has spent over 25 years in the banking industry, beginning her career at Farmers State Bank in loan operations, prior to merging with Isabella Bank in 2000. She moved on to work in accounting and has been in collections for the past 9 years. In the Collections Department, Tama plays an important role in helping customers find financial solutions by working with them to resolve outstanding debts and develop repayment plans that align with their situation and help them regain financial stability. Tama has two daughters and two granddaughters, and currently resides in Wheeler with her husband, David.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX:ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Announces Promotion of Neumeyer to Branch Manager in Midland

09-29-2023

Mike Williams, Market President at Isabella Bank, is pleased to announce the promotion of Christina Neumeyer to Branch Manager of our Midland West office. Christina will manage the daily operations of the branch, while servicing the retail lending needs of the Midland area.

“Christina has been a great addition to our East Region and we are excited to have her lead our Midland West branch. She has the knowledge and experience to help our customers and is passionate about building relationships within the community,” stated Williams.

Christina joined Isabella Bank in 2022, spending time at both our Downtown Saginaw and Saginaw State Street offices in retail customer service. She has over 20 years of experience in the banking industry, including 10 years of experience in management. Christina volunteers her time with Junior Achievement, Habitat for Humanity, Party on McCarty, and various animal rescue and welfare organizations. She previously served as a member on the Saginaw Township Soccer Association board, as well as volunteered as a soccer coach. Christina has one child, and currently resides in Saginaw Township.

To contact Christina regarding retail banking needs, please reach out to her via email at [email protected] or by phone at 989-832-6198.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX:ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Expands into Bay County with Loan, Wealth Office

09-21-2023

Isabella Bank, a wholly-owned subsidiary of Isabella Bank Corporation (OTCQX:ISBA), is expanding into Bay County with this month’s opening of a loan and wealth office at 723 Washington Ave., near its intersection with Center Avenue in downtown Bay City.

The office will provide mortgage and commercial lending services as well as financial planning services and estate administration.

“Isabella Bank is responding to loyal and future customers who live or work in Bay County and have asked us to expand our presence locally,” Chief Executive Officer Jae A. Evans said. “This is an exciting step. We’re a strong, stable and growing community bank — the bank with a 120-year history of commitment to this region’s residents and businesses.”

With the new office, Isabella Bank has 31 locations in eight counties.

East Region President Michael Colby said customer relationships are a priority, no matter the method of interaction. While a growing number of customers bank online, many still want to meet in person when applying for a loan.

“Customers want to talk with an expert, in person, for something as significant as a home or business loan,” Colby said. “They’ll receive personalized support, and decisions about their loans will be made locally, not out of state.”

Personal wealth services assist customers in planning, building and managing their financial futures, including estate, financial and retirement plans, Senior Vice President Randy Dickinson said.

“Isabella Wealth’s financial professionals help customers identify their financial goals — from buying a new home, sending their children to college, to retiring. We then create and monitor a plan with the customer so they can achieve their objectives,” he said.

In addition to financial services, many clients turn to Isabella Wealth for estate administration services.

“Our clients gain peace of mind from the personal relationship they build with one of our experienced, independent fiduciaries,” Dickinson said. “They like having someone they can visit and get advice from — who they trust to handle their financial affairs if they become incapacitated or when they pass away. This is the full-service, personalized care you’ll find at Isabella Bank.”

Commercial Lender Jesse Kendall, who has more than 10 years of banking experience in the tri-cities area, will manage the Bay City office and work directly with loan customers.

Wealth team members include Senior Trust Officers Daniel McKune and JoAnna Keenan, and Financial Advisor Beth DeLeeuw. All have ties to Bay County and the Great Lakes Bay region.

The Bay City office can be reached at 989-316-2550.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX:ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 31 locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Corportation Announces Third Quarter 2023 Dividend

09-06-2023

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a third-quarter cash dividend of $0.28 per common share at its regular meeting on August 30, 2023. The dividend will be payable September 29, 2023 to shareholders of record as of September 27, 2023. Based on ISBA's closing stock price of $20.18 per share as of August 30, 2023, the annualized cash dividend yield is 5.55%.

"The third quarter cash dividend of $0.28 represents an increase of 3.70% over the third quarter of 2022, and reflects our continued financial strength and commitment to building long-term shareholder value," said Jae A. Evans, President and Chief Executive Officer.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has thirty locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Jatczak Joins Isabella Bank as Branch Manager, Community Development Liaison in Saginaw

08-25-2023

David Brown, Vice President and Senior Commercial Loan Officer at Isabella Bank, is pleased to welcome John Jatczak as Branch Manager and Community Development Liaison at our Downtown Saginaw office. John will manage the daily operations of the branch, while servicing the retail and community development needs of the local Saginaw area.

“I am excited to have John join our team in the East Region. He has the knowledge and experience to help our customers and is a great fit to the Isabella Bank team. We look forward to the future as John helps build and deepen relationships in the community,” stated Brown.

John earned his bachelor’s degree in Management from Northwood University. He is a graduate of Leadership Bay County and holds a Nationwide Multistate Licensing System (NMLS) certification. John has been in retail banking for over 30 years, most recently serving as a branch manager at Huntington Bank before joining Isabella Bank. He is a board member for Columbus Avenue Management, and previously served as a board member for Bay City Southwest Little League and as an ambassador for Bay Area Chamber of Commerce. John actively volunteers with Junior Achievement and United Way. Over the last several years, he spent time coaching boys and girls youth baseball, basketball, and football. John has two children, Hayden and Olivia, and currently resides in Bay City.

To contact John regarding retail banking or community development needs, please reach out to him via email at [email protected] or by phone at 989-754-0388.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX:ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 30 locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Isabella Bank Celebrates 120 Years of Community Roots

08-24-2023

https://www.secondwavemedia.com/epicenter/features/isabella-bank-celebraes-120-years.aspx

Isabella Bank Corporation Announces Second Quarter 2023 Earnings
Growth in loans, Isabella Wealth during Q2; results remain strong despite interest rate headwinds

07-20-2023

Isabella Bank Corporation (the “Corporation”) (OTCQX: ISBA) has reported net income of $4.6 million for the second quarter of 2023 and $10 million for the six?month period ended June 30, 2023. Earnings per common share were $0.62 for the second quarter of 2023 and $1.32 for the first half of the year.

Second Quarter 2023 Highlights:

Loans grew $64 million, or 5%, during the quarter.
Interest income improved 21%, compared to second quarter of 2022.
Assets managed by Isabella Wealth grew more than $22 million, or 4%, during the quarter.
Shareholders earned a cash dividend of $0.28 per share, with an annualized dividend yield of 5.46%, as of June 30, 2023.

“Our financial performance remains strong despite the challenges our industry faces with current interest rate dynamics,” said Jae A. Evans, President and Chief Executive Officer. “Competition for deposits was strong during the quarter, leading to continued pressure on our net interest margin and a decline in deposits. Despite this decline, our liquidity position remains strong.

“We are safeguarding the long?term success of the bank with strategic decisions and initiatives that will enhance shareholder value and the customer experience. One such action, for which planning began last year, is our first move into Bay County. The upcoming opening of our Bay City loan production office (LPO) is a great opportunity for us to assist individuals and businesses throughout the area with their loan needs," Evans said. "The continued growth of our footprint demonstrates our ongoing commitment to customers and communities as a leading, independent community bank.”

Operating Results

Net income: Net income for second quarter 2023 was $4.6 million, compared to $5.3 million in the second quarter of 2022. Net income for the first six months of the year was $10 million, remaining stable year over year. Interest income continued to improve in the second quarter and nearly offset the increase in interest expense due to rising rates on deposits.

Net interest income: Net interest income for second quarter 2023 decreased $248,000 compared to the second quarter of 2022. For the first six months of the year, net interest income increased $1.6 million compared to the same period in 2022. Rising interest rates and continued loan growth led to an increase in gross interest income of

$3.4 million and $7.2 million for the second quarter and first six months of 2023, compared to the same periods in 2022. While the Bank continues to benefit from a strategic reduction in higher?cost borrowings, implemented in prior periods, rising interest rates on deposits led to a $3.6 million and $5.6 million increase in interest expense for the second quarter and first six months of 2023, compared the same periods in 2022.

Noninterest income and expenses: Noninterest income was $3.6 million for the second quarter of both 2023 and 2022. For the first six months of 2023, noninterest income decreased $245,000 compared to the same period in 2022, driven by a $554,000 reduction in mortgage servicing rights income, as rising interest rates led to a decline in both the volume and balance of loans serviced. Noninterest expenses increased $878,000 during the second quarter of 2023 and $1.8 million for the six?month period ended June 30, 2023 in comparison to the same periods in 2022. The increase was primarily the result of increased expense related to compensation, equipment, and FDIC insurance.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 3.11% and 3.17% for the three and six months ended June 30, 2023, compared to 3.16% and 3.01% for the same periods in 2022. While the second quarter of 2023 fell in comparison to the same period in 2022, net yield for the first half of 2023 improved significantly through strategic initiatives ? such as the reduced reliance on higher?cost borrowed funds and brokered deposits ? that were implemented in prior periods in anticipation of rising interest rates.

Balance Sheet

Assets: Total assets were $2 billion and assets under management were $2.9 billion as of June 30, 2023. Managed assets include loans sold and serviced of $255 million as well as $594 million in investment and trust assets managed by Isabella Wealth. Investment and trust assets increased $80 million, or 15.5%, since December 31, 2022.

Loans: Loans outstanding as of June 30, 2023 totaled $1.3 billion. Gross loans increased $63.8 million during the second quarter and rose $70.2 million compared to December 31, 2022. This reflects growth in the consumer portfolio and a resumption of the Bank's engagement with a mortgage participation program. Adherence to strong underwriting standards continued to be reflected in the low levels of total past due and nonaccrual loans, which were $3.7 million, or 0.28% of total loans, at the end of the period.

Deposits: Total deposits were $1.7 billion as of June 30, 2023, a decrease of $29.3 million, or 1.7%, since December 31, 2022. The decline occurred during the second quarter, and was driven by strong pricing competition within the industry.

Capital: The Bank is considered a “well?capitalized” institution, as its capital ratios exceeded the minimum designated requirements. As of June 30, 2023, the Bank’s Tier 1 Leverage Ratio was 9.17%, Tier 1 Capital Ratio was 13.08%, and Total Capital Ratio was 14.00%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0%, and Total Capital Ratio of 10.0%.

Dividend: During the second quarter of 2023, the Corporation paid a $0.28 per common share cash dividend. Based on the Corporation’s closing stock price of $20.50 as of June 30, 2023, the annualized cash dividend yield was 5.46%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state?chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid?Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

Isabella Bank Corporation Announces Second Quarter 2023 Dividend

06-01-2023

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a second-quarter cash dividend of $0.28 per common share at its regular meeting on May 31, 2023. The dividend will be payable June 30, 2023 to shareholders of record as of June 28, 2023. Based on ISBA’s closing stock price of $21.04 per share as of May 31, 2023, the annualized cash dividend yield is 5.32%.

“I am pleased to announce a $0.28 per share second quarter dividend. Our first quarter performance, improving financial metrics, and solid dividend yield reflect our continual efforts to enhance shareholder value," said Jae A. Evans, President and Chief Executive Officer.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has thirty locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Invest in Us link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation's investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Announces Executive Succession Plans

04-28-2023

CEO Evans to retire; Schwind elected CEO; McDonnell to become President

MT. PLEASANT, Mich., April 28, 2023 -- Sarah R. Opperman, Chair of Isabella Bank Corporation, announced today that Jae A. Evans will retire as President and Chief Executive Officer, effective January 2024.

The Board of Directors has elected Jerome E. Schwind, currently President of Isabella Bank, as the new President and CEO of Isabella Bank Corporation and CEO of Isabella Bank, effective January 2024. The Board also named Neil M. McDonnell, currently Chief Financial Officer, to replace Schwind as the Bank President at that time.

Evans has been CEO since January 2014. He will continue to leverage his 47 years of banking experience as a member of both the corporate and bank Boards of Directors. During his tenure as CEO, Evans has led the corporation to record earnings and assets, an expanded geographic footprint and new, state-of-the-art online banking services.

“Jae has been a strong, effective leader,” Opperman said. “We are thankful for his steady leadership, especially during the last several years of volatility in the economy and our industry. Isabella Bank has remained strong and grown through it all.”

The Bank has a robust succession planning process, investing in the development of leaders and employees throughout the organization. Opperman said the Board conducted a thorough review of the executive team and is confident in its outstanding leadership and experience.

“Jerome has been with Isabella Bank 24 years, and we are confident in his ability to guide our strategic direction as a preeminent, independent community bank,” Opperman said. “Likewise, Neil’s 30 years of banking experience and impressive leadership skills are widely respected.

“These appointments reflect the Board’s commitment to choose executives who possess the vision, experience and agility to best serve our customers and enhance shareholder value,” Opperman said. “The Board, Jae, Jerome and Neil all share an unwavering commitment to community banking.”

Evans has been with Isabella Bank 15 years, guiding the corporation beyond $2 billion in assets, up from $1.5 billion when he took the reins as CEO. Deposits climbed from $1.04 billion to $1.74 billion and loans rose from $808 million to $1.26 billion. Earnings per share went from $0.38 to $2.95.

Evans started as President of the Bank’s Greenville Division and then served as Chief Operations Officer before becoming CEO. While retiring was not an easy decision, he said Schwind, McDonnell and the full Isabella Bank team will do well in furthering the Bank’s 120-year history.

“Our success is a reflection of our customers, shareholders, the communities we serve and each of our nearly 400 employees who deliver quality service and customer support every day,” Evans said.

“It is incredibly rewarding to help individuals, families, businesses and communities reach milestones, weather challenges and excel,” he said. “We’ve certainly adapted our products and services to fit customers’ changing needs, yet it’s our core values and lasting, personal connections that differentiate Isabella Bank from its competitors.

Highly regarded in the industry, Evans is a board member and former chair of The Community Bankers of Michigan. He is Chair of the Board of Directors of United Bankers’ Bancorporation, Inc. and United Bankers’ Bank, which was the nation’s first bankers’ bank and serves more than 1,000 community banks across the country. Evans also serves on the Safety and Soundness Committee of the Independent Community Bankers of America, as well as being a member of the Central Michigan University Advancement Board.

Schwind has been President of Isabella Bank since 2015, previously serving as its Executive Vice President and Chief Operations Officer, and Mecosta Division President. He has played an instrumental role in technology advancements and geographic expansion, which are key elements of the bank’s strategic plan. He also maintains a deep understanding of the seven counties served by the Bank’s 30 branches.

An ardent champion of community banking and local residents, families and businesses, Schwind serves on a number of area boards. He is Board Chair of the Middle Michigan Development Corporation, based in Mt. Pleasant, and is on the board of the Great Lakes Bay Regional Alliance, which supports collaboration and initiatives to improve economic vitality and quality of life across central Michigan. Schwind has been Vice Chair of the Mecosta County Medical Center, chair of Leadership Mecosta, and a member of the Big Rapids Area Industrial Development Corporation and Mecosta County Economic Development Corporation. He has been both a Kiwanis and Rotary Club member.

Schwind is Chair of the Michigan Bankers Association and a member of its Perry School of Banking Board. He also has been a member of the association’s Grassroots Advocacy Committee.

McDonnell has been CFO since joining Isabella Bank in 2018 and has led a number of initiatives that have driven the Bank’s strategic plan and improved key metrics, including shareholder value. They include the company’s stock buyback program, reducing high-cost borrowings, and raising capital without issuing additional shares. He also leads Isabella Wealth, the Bank’s investment and trust management business, which has grown more than 15% since 2020.

McDonnell is a member of the Mid-Michigan Industries Board of Directors and volunteers with the Habitat for Humanity of Isabella County Finance Committee. He has more than 30 years of banking experience. He previously worked in the eastern United States in roles such as CFO, controller, treasurer, compliance and risk officer, and director of finance at large international banks, local community banks and de novo banks.

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm and Saginaw.

Isabella Bank Announces Promotion of Paulus to Agriculture Lender

04-17-2023

Brian Goward, South Region President of Isabella Bank, announced the promotion of Zachary Paulus to Agriculture Lender in our Breckenridge office. As an agriculture lender, Zachary will be responsible for servicing the agriculture and commercial lending needs of the Gratiot area community.

“Zachary is an asset to Isabella Bank. He is committed to both his customers and the Bank, and his dedication and passion in helping the local community is remarkable,” stated Goward.

Zachary earned his bachelor’s degree from Saginaw Valley State University. He is a graduate of Dale Carnegie Skills for Success and is a United States Marine Corps Veteran. Zachary joined Isabella Bank in 2019, first in retail banking then later becoming a commercial credit analyst. He volunteers his time with the Ithaca Rotary Club and Floyd Church of God. In addition, Zachary is a board member of the Great Lakes Bay Veteran Coalition. He currently resides in Mt. Haley Township, with his wife and daughter, Lisa and Elliana.

To contact Zachary regarding agriculture and commercial lending needs, please reach out to him via email at [email protected] or by phone at 989-842-2446.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX: ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 30 locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Lamrouex and Dudek Join Isabella Bank as Branch Managers in Saginaw

04-17-2023

Michael Colby, East Region President of Isabella Bank, is pleased to welcome Catherine Lamrouex and Amanda Dudek as branch managers in our Saginaw community. Catherine Lamrouex will be the branch manager at our new Saginaw State Street location and Amanda Dudek will be the branch manager at our Saginaw Bay Road location. As branch managers, they will manage the daily operations of the branches, while servicing the retail lending needs of the community.

“We are excited to have Catherine as part of the Isabella Bank team. She has extensive banking experience, paired with a passion for helping others and her community. We could not be happier to have her lead our new branch in Saginaw,” stated Colby.

Catherine earned her Associate’s degree from Davenport University. She is a graduate of Dale Carnegie Leadership Training, and holds a Branch Manager Certification from Michigan Bankers Association. Catherine has been in retail banking for over 30 years, most recently serving as a branch manager at Huntington Bank and Chemical Bank before joining Isabella Bank. She volunteers her time with the Saginaw Township Soccer Association, previously served as a member of their board and Party on McCarty Committee. Catherine has two children and currently resides in Gladwin with her husband.

To contact Catherine regarding retail banking needs, please reach out to her via email at [email protected] or by phone at 989.355.1921.

“Amanda is a great addition to our East Region. She has the personality, knowledge, and experience to help our customers. She is a great fit to the Isabella Bank team and we are so fortunate to have her not just on our team, but caring for the community as well,” stated Colby.

Amanda has a Nationwide Multistate Licensing System (NMLS) certification and holds a Michigan Department of Insurance and Financial Services (DIFS) Resident Producer License. She has spent 13 years in branch management, as well as 5 years in consumer lending. Prior to joining Isabella Bank, she was a branch manager at Huntington Bank. Amanda is actively involved with the Swan Valley School District, Saginaw County Chamber of Commerce, and Great Lakes Bay Pride. She currently resides in Thomas Township with her husband, David, and two children, Avery and Autumn.

To contact Amanda regarding retail banking needs, please reach out to her via email at [email protected] or by phone at 989.799.0195.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX: ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 30 locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Kendall Joins Isabella Bank as Commercial Lender

04-11-2023

Michael Colby, East Region President of Isabella Bank, is pleased to welcome Jesse Kendall as a Commercial Lender at our Saginaw State Street branch. Jesse will service the commercial lending needs of the Saginaw and surrounding area communities.

“I am excited to have Jesse join our team in the East Region. He has the knowledge and experience to help our customers and is a great fit to the Isabella Bank team. We look forward to the future as Jesse helps build and deepen customer relationships in the area,” stated Colby.

Jesse earned his bachelor’s degree in Business Studies and Finance from Saginaw Valley State University. He is also a graduate of Leadership Saginaw County. Jesse has spent over 10 years in the banking industry. He began his career at 1^st State Bank, working as a credit analyst for over four years then later promoted to Assistant Vice President in commercial business lending. He moved on to become a senior credit analyst at Horizon Bank before joining Isabella Bank in March 2023.

He volunteers his time with the READ Association of Saginaw County and Junior Achievement of North Central Michigan. In addition, Jesse was an Ambassador for the Saginaw County Chamber of Commerce and a member of the Young Professional Network Steering Committee. He currently resides in Saginaw with his partner, Ashleigh, and their dog, Piper.

To contact Jesse regarding commercial lending needs, please reach out to him via email at [email protected] or by phone at 989-385-1420.

Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan, is a subsidiary of Isabella Bank Corporation (OTCQX:ISBA). Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has 30 locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Seppala Receives Marian E. Kemp Outstanding Citizen Award

02-27-2023

David Seppala, West Regional President of Isabella Bank, received the Marian E. Kemp Outstanding Citizen Award for 2022 from the Greenville Area Chamber of Commerce. The Marian E. Kemp Outstanding Citizen Award started in 1978, and each year recognizes an individual who has given significant contributions in time and effort to the Greenville community.

David earned his undergraduate degree in Finance from Central Michigan University, and attended the University of Wisconsin’s Graduate School of Banking and the Dale Carnegie Executive Development Program. He started at Isabella Bank in 2009 as a Senior Commercial Lender and now serves at our Greenville Office as West Regional President for the Bank. As West Regional President, he oversees the day-to-day management and community development of the Barryton, Big Rapids, Blanchard, Canadian Lakes, Greenville, Remus, Six Lakes and Stanton offices.

In addition to his professional achievements, David volunteers his time to give back to the community. He serves on various non-profit boards, foundations, and community organizations. David serves as a board member for the United Way of Montcalm and Ionia Counties, Junior Achievement Greenville Advisory Board, Junior Achievement of the Michigan Great Lakes, Montcalm County Habitat for Humanity, Eight Cap, Greenville Area Community Foundation, Montcalm Economic Alliance, and Greenville Area Chamber of Commerce.

David’s commitment to community involvement is remarkable, and this award signifies the dedication he has displayed. Isabella Bank applauds the efforts of David and celebrates this award with him.

Isabella Bank has 29 locations throughout seven Mid-Michigan counties and is a wholly-owned subsidiary of Isabella Bank Corporation (OTCQX: ISBA). Isabella Bank Corporation has approximately $2 billion in assets under management and more than 350 employees. The Corporation has been recognized on the Detroit Free Press List of “Top Workplaces.” To learn more, please visit www.isabellabank.com.

Isabella Bank Corporation Announces First Quarter 2023 Dividend

02-27-2023

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a first-quarter cash dividend of $0.28 per common share at its regular meeting on February 22, 2023. The dividend will be payable March 31, 2023 to shareholders of record as of March 29, 2023. Based on ISBA’s closing stock price of $24.25 per share as of February 22, 2023, the annualized cash dividend yield is 4.62%.

“I am pleased to announce the first quarter cash dividend of $0.28 per share, which is an increase of 3.70% over the first quarter of 2022. Our dividend is a reflection of our commitment to increase shareholder value and provide an attractive dividend yield. Our recently issued financial results for 2022 is further evidence of this commitment, as we produced record results for net income and earnings per share," said Jae A. Evans, President and Chief Executive Officer.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has twenty-nine locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Strong Fourth Quarter Caps Record Year for Isabella Bank Corporation
Record Net Income and EPS in 2022; EPS up 19% over 2021

02-09-2023

Isabella Bank Corporation (the “Corporation”) (OTCQX: ISBA) reported record net income, net interest income and earnings per share for the year ended December 31, 2022. Fourth quarter net income was $6.3 million, surpassing $4.8 million for the same period in 2021, resulting in net income of $22.2 million in 2022, up 14% from $19.5 million reported in 2021. Earnings per common share were $0.84 in the fourth quarter and $2.95 for the year, above the $0.63 and $2.48 reported for the same periods a year ago, respectively.

"Isabella Bank had another outstanding year, driven by solid growth across our geographic and business portfolios and a favorable interest rate environment," said Jae A. Evans, President & CEO. "We are seeing the results of implementing our strategic plan, which led to increased market share in several markets, by investing in digital technology and new offerings."

Additional 2022 highlights:

Total deposits increased $33.9 million in 2022, or 2%.

Fourth quarter net interest income rose $2.8 million, or 21%, over the same period in 2021, and net interest income was $7.8 million in 2022, up 15% from 2021.

Net yield on interest earning assets reached 3.43% in the fourth quarter, up from 2.86% for the same period in 2021.

Asset quality also improved, with nonperforming loans at 0.04% of total loans, compared to 0.10% at the end of 2021.

“We are attracting new customers, while also expanding our offerings with current customers," Evans added. "This is possible because of our outstanding Isabella Bank team. We remain committed to growing with our customers and communities, just as we have since 1903. Our reputation as a strong, reliable and community-focused bank will not change, even as we continue to evolve to provide the services our customers and communities want and need."

Operating Results

Net income: Fourth quarter 2022 net income increased 31.9% compared to the same period in 2021. For the year ended December 31, 2022, net income was $22.2 million, compared to $19.5 million in 2021.

Net interest income, fourth quarter 2022: Net interest income for the fourth quarter 2022 improved by $2.8 million, or 21%, compared to the fourth quarter of 2021. Interest income increased $2.9 million, or 19.1%, driven largely by rising interest rates.

Net interest income: Net interest income for the year ended December 31, 2022 increased $7.8 million to $60.5 million, up 14.8% compared to 2021. While Paycheck Protection Program loan fees declined, rising interest rates and growth in available-for-sale securities led to a $5.7 million, or 9.5%, increase in gross interest income for the year ended December 31, 2022, compared to 2021. The Corporation continued to benefit from the significant reduction in its higher-cost borrowings — a strategic move that commenced in 2019 and contributed to a $2.1 million, or 28.3%, decrease in interest expense on deposits and borrowings for the year ended December 31, 2022, when compared to 2021. The provision for loan loss in 2022 was $483,000 compared to a $518,000 provision reversal in 2021, when concerns over potential credit quality issues related to the pandemic did not materialize.

Noninterest income and expenses, fourth quarter 2022: Noninterest income decreased $336,000 compared to the fourth quarter of 2021, primarily driven by a reduction in gain on sale of mortgage loans. Noninterest expenses for the quarter increased $725,000, attributed to increased compensation, equipment, and loan underwriting expenses.

Noninterest income and expenses: Noninterest income for the year ended December 31, 2022 decreased $156,000 compared to 2021. Gain on sale of mortgages decreased $1.1 million, as demand for residential mortgage originations declined due to the rising interest rate environment. This was offset by an increase in service charges and fees of $1.1 million, with $619,000 of the increase related to mortgage servicing rights. Noninterest expense increased $3.1 million in 2022 compared to 2021, primarily the result of increased compensation, other losses, and donations and community relations expenses.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 3.43% and 3.18% for the fourth quarter and year ended 2022, respectively, compared to 2.86% and 2.87% for the same periods in 2021. The marked improvement is a result of strategies that positioned the Bank to benefit in a rising interest rate environment, including a reduced reliance on higher-cost borrowed funds and brokered deposits.

Balance Sheet

Assets: Total assets were $2.03 billion and assets under management were $2.81 billion as of December 31, 2022. Managed assets included loans sold and serviced of $264.2 million as well as $513.9 million in investment and trust assets managed by Isabella Wealth.

Loans: Loans outstanding as of December 31, 2022 totaled $1.26 billion. Core loan growth improved $35.1 million, or 2.9%, primarily due to commercial loan growth. Gross loans declined $36.9 million since December 31, 2021 due to a decrease of $72 million in advances to mortgage brokers, which are included in the commercial loan portfolio but are not considered a component of the Bank's core lending business. While the Bank has experienced fluctuations in credit quality indicators in recent periods, credit quality remained strong, as evidenced by total past due and nonaccrual loans being just 0.88% of gross loans as of December 31, 2022. Additionally, nonperforming loans at year end 2022 declined to $457,000, or 0.04% of total loans, compared to $1.3 million, or 0.10%, at December 31, 2021.

Deposits: Growth in accounts from new customers drove total deposits to $1.74 billion as of December 31, 2022, an increase of $33.9 million, or 2.0%, since December 31, 2021. A large percentage of this increase came in the form of demand deposits which helps to minimize total interest expense and reduce overall cost of funds.

Capital: Due to an increase in short-term and intermediate-term benchmark interest rates, unrealized losses related to available-for-sale securities increased significantly during 2022. As a result, shareholders' equity has declined, negatively impacting tangible book value. The Bank continues to be considered a “well-capitalized” institution, as its capital ratios exceeded the minimum designated requirements. As of December 31, 2022, the Bank’s Tier 1 Leverage Ratio was 9.36%, Tier 1 Capital Ratio was 14.07% and Total Capital Ratio was 14.80%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend: The Corporation paid a $0.28 per common share cash dividend for the fourth quarter of 2022, an increase of 3.7% compared to fourth quarter of 2021. Total cash dividends paid for the year ended December 31, 2022 totaled $1.09. Based on the Corporation’s closing stock price of $23.50 as of December 31, 2022, the annualized cash dividend yield was 4.77%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

Isabella Bank Corporation Increases Fourth Quarter 2022 Dividend

12-07-2022

Isabella Bank Corporation (OTCQX: ISBA) today announced its Board of Directors declared a fourth-quarter cash dividend of $0.28 per common share at its regular meeting on November 30, 2022. The $0.28 dividend represents a $0.01 or 3.7% increase from the third quarter dividend and brings year-to-date dividends to $1.09. The dividend will be payable December 16, 2022, to shareholders of record as of December 14, 2022. Based on ISBA's closing stock price of $22.70 per share as of November 30, 2022, the annualized cash dividend yield is 4.93%.

"This dividend increase reflects the ongoing success of Isabella Bank's strategic initiatives," said Jae A. Evans, President and Chief Executive Officer. "This factor, coupled with our strong financial results for the first three quarters of this year, are serving ISBA shareholders exceptionally well."

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Invest in Us link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Coffin Joins Isabella Bank Board

12-02-2022

Jae Evans, President and Chief Executive Officer of Isabella Bank Corporation, announced the appointment of Melinda M. Coffin to the Isabella Bank Board, effective December 2022.

“The Isabella Bank Board is a diverse group of individuals who know the communities we serve. It includes experts with proven leadership that extends into community action. Melinda’s professional experience and knowledge of the Central Michigan area position her to be a strong asset to both our board and our bank,” stated Evans.

Ms. Coffin earned her Master of Business Administration from Central Michigan University. While earning her degree, she began her career as a Compliance Officer for Soaring Eagle Gaming Enterprises. Ms. Coffin went on to be Associate General Manager of Soaring Eagle Waterpark and Hotel, as well as Executive Director of Gun Lake Gaming Commission. Most recently, she served as Director of Guest Experience at Soaring Eagle Gaming Enterprises and worked in that role until October 2021, when she was appointed Chief Executive Officer of Soaring Eagle Gaming Enterprises.

In her spare time, she helps deliver food at reoccurring food distribution events. In addition, Ms. Coffin helps serve food at Isabella County Restoration House’s weekly events. Charitable contributions are important to Ms. Coffin and she is happy to give monetary support to local organizations such as Salvation Army and Central Michigan University Student Fund.

Ms. Coffin is a member of the Saginaw Chippewa Indian Tribe and has extensive knowledge and experience within and outside of the gaming industry. She has spent most of her life in the Central Michigan area, and currently resides in Mt. Pleasant.

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Isabella Bank Corporation Announces Further Earnings Growth in Third Quarter
Record net income up 26% over third quarter 2021

10-20-2022

Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) reported a record net income of $5.9 million for the third quarter of 2022 and $15.9 million for the nine-month period ended September 30, 2022. Earnings per common share were $0.78 in the third quarter and $2.11 for the first nine months of 2022.

Third-quarter 2022 highlights, compared to the same period in 2021, include:

Net income increased 25.6% to $5.9 million.
Net interest income improved $2.5 million, or 19%, aided by a 34% decline in interest expense.
Net interest margin yield increased 43 basis points.
Earnings per share improved 32% to $0.78.

Additionally, deposits grew $31.2 million during the third quarter, up $80.7 million year to date, an increase of nearly 5%.

"Isabella Bank continued to deliver strong financial results this quarter. The Federal Reserve's 2022 rate decisions contributed to a significant gain in net interest income and improvement in our net interest margin," said Jae A. Evans, President & CEO. "Further improvement is expected through the remainder of 2022.

"What's more, our commitment to shareholders, communities and customers continues to be seen through active implementation of multiple strategic initiatives," Evans said. "Construction is well underway on a third full-service branch in Saginaw, and customer response to our new, enhanced online banking system and mobile app has been tremendous."

Operating Results

Net income: Net income for third quarter 2022 was $5.9 million, a 25.6% increase compared to $4.7 million in the third quarter of 2021. For the first nine months of 2022, net income was $15.9 million, compared to $14.7 million in the same period of 2021.

Net interest income: Net interest income for the third quarter 2022 improved by $2.5 million or 19% compared to the third quarter of 2021. For the first nine months of 2022, net interest income increased $5.0 million or 12.7% compared to the same period in 2021. While Paycheck Protection Program loan fees declined during the period, rising interest rates within the loan portfolio and growth in investment securities led to a $2.8 million increase in gross interest income during the nine-month period ended September 30, 2022, compared to the same period in 2021. The Corporation continued to benefit from a strategic reduction in higher-cost borrowings as interest expense on deposits and borrowings decreased $2.2 million, or 37.1%, for the nine-month period ended September 30, 2022, compared to the same period in 2021. The provision for loan loss for the first nine months of 2022 was $540,000 compared to a $599,000 provision reversal during the same period in 2021, when initial concerns over potential credit quality issues related to the onset of the pandemic did not materialize.

Noninterest income and expenses: Noninterest income increased $180,000 during the first nine months of this year, compared to the same period in 2021. A $1.1 million increase in service charges and fees including $605,000 of income related to mortgage servicing rights was offset by a $891,000 reduction in gain on sale of loans as residential mortgage originations declined in comparison to 2021. Noninterest expenses for the first nine months of 2022 increased $2.4 million, as a result of increased compensation and benefits cost, other losses, consulting, donations and community relations expenses.

Net yield on interest earning assets: The Corporation's fully taxable equivalent net yield on interest earning assets was 3.28% and 2.85% for the three months ended September 30, 2022 and 2021, an increase of 43 basis points. The net yield was 3.10% for the nine-month period ended September 30, 2022, compared to 2.87% for the same period in 2021. Considering the rate increases during the first nine months of 2022 and the anticipation of future rate increases in the remainder of the year, the Corporation expects continued improvement in the net yield on interest earning assets.

Balance Sheet

Assets: The Corporation had $2.06 billion in total assets and $2.8 billion of assets under management as of September 30, 2022. Managed assets included loans sold and serviced of $268.9 million and $464.1 million in investment and trust assets managed by Isabella Wealth.

Loans: Loans outstanding as of September 30, 2022 totaled $1.2 billion. Gross loans declined $64.9 million since December 31, 2021 due to a decrease in the amount of $70.5 million in advances to mortgage brokers, which is included within the commercial loan portfolio, however, is not considered a component of the Corporation's core lending business. Credit quality remained strong as evidenced by total past due and nonaccrual loans which were 0.32% of gross loans as of September 30, 2022.

Deposits: Total deposits were $1.8 billion as of September 30, 2022, an increase of $80.7 million, or 4.7%, since December 31, 2021. Growth in accounts from new customers is the driving factor behind this increase.

Capital: The Bank is considered a "well-capitalized" institution, as its capital ratios exceeded the minimum designated requirements. As of September 30, 2022, the Bank's Tier 1 Leverage Ratio was 9.07%, Tier 1 Capital Ratio was 14.10% and Total Capital Ratio was 14.83%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend: During the third quarter of 2022, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation's closing stock price of $21.40 as of September 30, 2022, the annualized cash dividend yield was 5.05%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Announces Third Quarter 2022 Dividend

09-08-2022

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a third-quarter cash dividend of $0.27 per common share at its regular meeting on August 31, 2022. The dividend will be payable September 30, 2022, to shareholders of record as of September 28, 2022. Based on ISBA's closing stock price of $23.45 per share as of August 31, 2022, the annualized cash dividend yield is 4.61%.

"As a large community bank with 29 locations throughout Mid-Michigan, we take pride in serving our customers, our communities and our shareholders," said Jae A. Evans, President and Chief Executive Officer. "At the heart of what we do is our staff, who are dedicated to meeting the needs of our customers and communities. We are also committed to increasing shareholder value through the pursuit and implementation of various strategic initiatives. These initiatives, which began in 2019, have been successful and led to strong financial results for the first two quarters of 2022."

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Invest in Us link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Announces Strong Second Quarter 2022 Earnings
Earnings trend continues; strategies lift EPS and margin

07-21-2022

Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) reported net income of $5.3 million for the second quarter of 2022 and $10 million for the six-month period ended June 30, 2022. Earnings per common share were $0.70 in the second quarter and $1.33 for the first six months of 2022.

Second-quarter 2022 highlights include:

Earnings per share of $0.70 grew 21% in comparison to the second quarter of 2021.
Net interest income improved $2.2 million compared to the second quarter of 2021, aided by a 39% decline in interest expense.
Net interest margin yield benefited from rising interest rates, increasing 37 basis points compared to the second quarter of 2021.
Loans grew $53.5 million during the second quarter, driven by commercial loans.

"We continue to deliver solid financial results as shown in our second quarter performance," said Jae A. Evans, President & CEO. "Isabella Bank continues to experience increased net income and improvement in net interest margin. With additional interest rate increases anticipated by the Federal Reserve, we expect these improvements to continue throughout the remainder of 2022.

"Despite continued concerns over how inflation and other events happening around the world may impact the financial services industry, we continue to pursue strategic initiatives to enhance shareholder and customer value," Evans added.

"During the second quarter, we announced the construction of a new full-service branch in Saginaw, expanding our presence within the Great Lakes Bay Region. The Bank also successfully completed a planned online banking conversion during the quarter, thereby enhancing our customers' experience. We remain committed to meeting the needs of our communities and our customers by providing innovative and competitive products and services."

Operating Results

Net income: Net income for the second quarter 2022 was $5.3 million, a 14.6% increase compared to $4.6 million in the second quarter of 2021. For the first six months of 2022 and 2021, net income was $10 million. Net interest income improved, offset by increased operating expenses, as described below.

Net interest income: Net interest income for the first half of 2022 increased $2.5 million compared to the same period in 2021. While Paycheck Protection Program loan fees declined during the period, rising interest rates within the loan portfolio and growth in loans and investment securities drove a $934,000 increase in gross interest income during the six-month period ended June 30, 2022, compared to the same period in 2021. The Corporation continued to benefit from a reduction in higher-cost borrowings as interest expense on deposits and borrowings decreased $1.6 million, or 38.8%, for the six-month period ended June 30, 2022, compared to the same period in 2021. A $522,000 provision for loan losses expense was recorded during the first half of 2022, compared to a $492,000 provision reversal during the same period in 2021, as initial concerns over potential credit quality issues related to the onset of the pandemic did not materialize.

Noninterest income and expenses: Noninterest income increased $295,000 during the first half of 2022, compared to the same period in 2021. A $968,000 increase in service charges and fees that included $577,000 of OMSR income, was partially offset by a $726,000 reduction in gain on sale of loans as residential mortgage originations declined. Noninterest expenses for the first six months of 2022 increased $1.7 million, as a result of increased compensation, other losses, consulting, marketing, and donations and community relations, as many charitable organizations resumed activities and events.

Net yield on interest earning assets: The Corporation's fully taxable equivalent net yield on interest earning assets was 3.16% and 3.01% for the three and six months ended June 30, 2022, as compared to 2.79% and 2.88% for the same periods in 2021. This marked improvement is the result of strategies management implemented In 2019 and 2020, focused on improving the net yields as rates declined, including enhanced pricing related to loans and a reduced reliance on higher-cost borrowed funds and brokered deposits. Considering the rate increases during the first half of 2022 and the anticipation of future rate increases in the remainder of the year, the Corporation expects continued improvement in the net yield on interest earning assets.

Balance Sheet

Assets: The Corporation had $2.05 billion in total assets and $2.8 billion of assets under management as of June 30, 2022. Managed assets included loans sold and serviced of $273.3 million and $454.5 million in investment and trust assets managed by Isabella Wealth.

Loans: Loans outstanding as of June 30, 2022 totaled $1.3 billion. While gross loans declined $29.1 million since December 31, 2021, due to a decrease in advances to mortgage brokers, loans increased $53.5 million or 4.4%, during the second quarter of 2022. Credit quality remains strong as evidenced by total past due and nonaccrual loans which were 0.12% of gross loans as of June 30, 2022.

Deposits: Total deposits were $1.8 billion as of June 30, 2022, an increase of $49.5 million, or 2.90%, since December 31, 2021. Growth in accounts from new customers is the driving factor behind this increase.

Capital: The Bank is considered a "well-capitalized" institution, as its capital ratios exceeded the minimum designated requirements. As of June 30, 2022, the Bank's Tier 1 Leverage Ratio was 8.99%, Tier 1 Capital Ratio was 13.50% and Total Capital Ratio was 14.22%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend: During the second quarter of 2022, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation's closing stock price of $24.80 as of June 30, 2022, the annualized cash dividend yield was 4.35%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank to Open Fifth Location in Saginaw

06-09-2022

Isabella Bank, a wholly-owned subsidiary of Isabella Bank Corporation (OTCQX:ISBA), announced a June ground breaking to expand its commitment to the Saginaw community. Located on State Street near Wieneke Road, the new branch will be Isabella Bank's fifth location in Saginaw County.

Slated to open during the first quarter of 2023, the branch will provide individuals and business owners increased access to a full line of in-person banking products and services.

"This is an investment in the Saginaw area— in its people, its businesses and its leaders, who are working hard to fuel a vibrant community," said Jae A. Evans, Isabella Bank Chief Executive Officer. As an independent community bank that has grown and evolved with mid-Michigan for nearly 120 years, we're excited to expand our presence in Saginaw."

Isabella Bank combines exceptional customer service with advances in banking technology to create long term - personal relationships, and provide relevant products and services to its customers.

"We're a large bank with local, community values and service that blends high-tech with personal relationships," said Jerome Schwind, Isabella Bank President. "We're all about helping customers and communities grow and thrive."

"Saginaw customers have made it clear: they value us as a full-service, independent community bank," said Michael Colby, the bank's East Region President. "They like the stability Isabella Bank offers. They like our combination of modern and traditional services. They also appreciate that decisions about their needs are made right here, by people who live in the area and support the community."

Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The bank has assets of approximately $2 billion and offers personal and business lending, and deposit products. In addition, the bank offers investment, trust, and estate planning services through Isabella Wealth. With the new branch, the bank will have 30 locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Isabella Bank Corporation Announces Second Quarter 2022 Dividend

05-31-2022

Isabella Bank Corporation (OTCQX: ISBA) today announced its Board of Directors declared a second-quarter cash dividend of $0.27 per common share at its regular meeting on May 25, 2022. The dividend will be payable June 30, 2022, to shareholders of record as of June 28, 2022. Based on ISBA's closing stock price of $25.00 per share as of May 25, 2022, the annualized cash dividend yield is 4.32%.

"I am pleased to announce the second quarter cash dividend of $0.27. Our second quarter dividend, coupled with a strong start to 2022 and record financial results for 2021, demonstrate our unwavering commitment to increasing shareholder value and, most importantly, the value of our stock," said Jae A. Evans, President and Chief Executive Officer.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Invest in Us link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Announces First Quarter 2022 Earnings
Solid start to 2022 with net income of $4.7 million

04-21-2022

Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) has released solid earnings results for the first quarter of 2022. The Corporation reported net income of $4.7 million and earnings per common share of $0.63.

First quarter 2022 highlights include:

Net interest income improved, compared to first quarter 2021, as interest expense declined 39%.

Credit quality remained strong, with nonperforming loans representing only 0.06% of gross loans.

Deposits grew $53.8 million, or 3.1% compared to December 31, 2021, largely driven by new customer accounts.

Shareholders earned a cash dividend of $0.27 per share, with an annualized dividend yield of 4.18%, as of March 31, 2022.

"We have started the year with solid financial results for the first quarter," said Jae A. Evans, President & CEO. "As we look ahead, there are concerns about the impact inflation and events in other parts of the world may have on the financial services industry. However, as the Federal Reserve considers additional interest rate hikes throughout 2022 and beyond, we expect the yield on loans and investments to rise, enhancing the Bank's net interest margin.

"Amidst this uncertainty, our longstanding focus remains the same - invest in our communities, and in advanced technology that enhances the customer experience while actively pursuing strategies that reward our shareholders with an attractive dividend," Evans added.

Operating Results

Net income: Net income for the first quarter 2022 was $4.7 million, compared to $5.4 million in the first quarter of 2021, largely as the result of changes in loan provision and mortgage originations, as described below.

Net interest income: Net interest income for first quarter 2022 increased $278,000 compared to the same period in 2021. While interest income declined $528,000 due to low interest rates and a decrease in the Paycheck Protection Program fee income, interest expense also decreased $806,000, or 38.6%, largely due to a reduction in higher-cost borrowings over the last year. During the first quarter, a $37,000 provision for loan losses expense was recorded, compared to a $523,000 provision reversal in the first quarter 2021 as our initial concerns over potential credit quality issues related to the onset of the pandemic did not materialize.

Noninterest income and expenses: Noninterest income increased $15,000 during the first quarter of 2022, compared to the same period in 2021. A $514,000 increase in service charges and fees nearly offset a $521,000 reduction in gain on sale of loans as residential mortgage originations declined by over 60%. Noninterest expenses for the first quarter increased $503,000, as a result of increased compensation and professional services as well as donations and community relations expenses as charitable organizations resumed activities and events.

Net yield on interest earning assets: The Corporation's fully taxable equivalent net yield on interest earning assets was 2.86% for the first quarter of 2022, flat with the fourth quarter of 2021 and down from 2.98% compared to the same period in 2021. As rates began to decline in 2020, the implementation of strategic programs focused on improving the net yield, which included enhanced loan pricing and a reduced reliance on higher-cost borrowed funds and brokered deposits as funding sources, helped to minimize further declines in our net interest margin. If rates rise as expected, margin improvement is likely.

Balance Sheet

Assets: The Corporation had $2.1 billion in total assets and $2.8 billion of assets under management as of March 31, 2022. Managed assets included loans sold and serviced of $275.6 million and $501.8 million in investment and trust assets managed by Isabella Wealth.

Loans: Loans outstanding as of March 31, 2022 total $1.2 billion. During the first quarter, gross loans declined $82.7 million, largely driven by a $72 million reduction in advances to mortgage brokers, which is included within the commercial loan portfolio.

Deposits: Total deposits climbed to $1.8 billion as of March 31, 2022, an increase of $53.8 million, or 3.1%, since December 31, 2021. Growth in the first quarter is largely the result of new customer accounts.

Capital: The Bank is considered a "well-capitalized" institution, as its capital ratios exceeded the minimum designated requirements. As of March 31, 2022, the Bank's Tier 1 Leverage Ratio was 8.74%, Tier 1 Capital Ratio was 13.83% and Total Capital Ratio was 14.56%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend: During the first quarter of 2022, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation's closing stock price of $25.85 as of March 31, 2022, the annualized cash dividend yield was 4.18%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.'s electronic quotation system (www.otcmarkets.com) under the symbol "ISBA." The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Announces First Quarter 2022 Dividend

02-25-2022

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a first-quarter cash dividend of $0.27 per common share at its regular meeting on February 23, 2022. The dividend will be payable March 31, 2022, to shareholders of record as of March 29, 2022. Based on ISBA’s closing stock price of $25.75 per share as of February 23, 2022, the annualized cash dividend yield is 4.19%.

“I'm pleased to announce our $0.27 first quarter cash dividend, which continues to provide our shareholders with an attractive yield,” said Jae A. Evans, President and Chief Executive Officer. “This is one way in which we strive to increase shareholder value. This commitment was recently evidenced by our record financial results for 2021, which included the completion of key initiatives designed to improve financial performance and, most importantly, the value of our stock.”

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Invest in Us link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Announces Strong Fourth Quarter and 2021 Earnings
Record assets, loans and net income of $19.5 million in 2021; EPS jumps 81%

02-10-2022

Isabella Bank Corporation (the “Corporation”) (OTCQX: ISBA) has released positive earnings results for the fourth quarter and year ended December 31, 2021. The Corporation reported net income of $4.8 million for the quarter and a record $19.5 million for the year. Both figures reflect increases over the same periods a year ago. Earnings per common share were $0.63 in the fourth quarter and $2.48 for the year 2021, also increases from the same periods of 2020.

2021 Highlights:

Net income in 2021 reached a record $19.5 million, increasing 79%, compared to 2020.

Net interest income in 2021 improved by $2.4 million compared to 2020, enabled by interest expense declining $6.4 million.

Total assets reached a record $2 billion and total assets under management reached a record $2.8 billion at the end of 2021.

Loans increased $62.7 million, or 5.1%, reaching a record $1.3 billion during 2021, driven by growth in the commercial and residential mortgage loan portfolios.

Deposits increased $144 million, or 9.2%, during 2021, largely the result of new customer accounts, Paycheck Protection Program (PPP) loans, and government stimulus funds.

Successful subordinated debt issuance of $30 million at a rate of 3.25%.

Completion of a tender offer during the fourth quarter, resulting in the Corporation purchasing 5% of outstanding shares at $27.00 per share for a total of $10.7 million.

“Our successful subordinated debt issuance in 2021 aligns with our strategic initiatives to deliver long-term shareholder value,” said Jae A. Evans, President and Chief Executive Officer. “A portion of the proceeds from the issuance were used for our subsequent tender offer, and the remaining proceeds may be used to support continued stock repurchases and expansion activity.

“Our successful Dutch auction tender offer reduced ISBA shares outstanding and will likely improve several key metrics for shareholders,” Evans said. “Our ongoing stock repurchase plan and this tender offer both align with our ongoing commitment to improve shareholder value.

“Overall, we continue to grow our customer base through trusted, quality service as an independent, community bank,” Evans said. “Our 2021 results, which set multiple records, are a testament to our continued focus on meeting the needs of our customers while pursuing strategic initiatives that benefit our shareholders, customers and communities over the long-term.”

Operating Results

Net income: Net income for the fourth quarter 2021 was $4.8 million, compared to a net loss of $723,000 in 2020. For the year ended December 31, 2021, net income was $19.5 million, compared to $10.9 million in 2020.

Net interest income, fourth quarter 2021: Net interest income for fourth quarter 2021 decreased $70,000 compared to the same period in 2020. While interest income declined $1.4 million due to continued low interest rates, interest expense also decreased $1.3 million, or 45.2%, largely due to a reduction in higher-cost borrowings over the last year. Provision for loan losses decreased $175,000 compared to 2020 and was the result of improvement in credit quality.

Net interest income: Net interest income for the year ended December 31, 2021 increased $2.4 million, or 4.7%, compared to the same period in 2020. Lower interest rates and a reduction in higher-cost borrowing benefited the Corporation with a $6.4 million, or 46.4%, decrease in interest expense during 2021. The decrease in interest expense outpaced a gross interest income decline of $4.1 million during 2021 caused by the lower interest rates and a pause in advances to mortgage brokers. The provision for loan losses also contributed to a positive net interest income result through a $2.2 million decrease compared to 2020, as a result of continued strong credit quality.

Noninterest income and expenses, fourth quarter 2021: Noninterest income decreased $511,000 compared to the fourth quarter of 2020, driven by a reduction in gain on sale of loans. Noninterest expenses for the quarter decreased $7.4 million, attributed to a $7.6 million cost to extinguish $100 million of FHLB advances during the fourth quarter of 2020.

Noninterest income and expenses: Noninterest income of $13.8 million for the year ended December 31, 2021 decreased $601,000 compared to 2020. While service charges and fees increased $1.1 million when compared to the previous year, 2020 also included an additional $1.0 million related to gain on sale of loans and $620,000 related to gains from redemption of corporate owned life insurance policies. Noninterest expenses decreased for the year ended December 31, 2021 by $7.5 million compared to 2020, tied to the $100 million FHLB debt extinguishment in 2020.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 2.86% and 2.87% for the fourth quarter and year ended 2021, respectively, compared to 3.04% and 2.96% for the same periods in 2020. The net yield for 2021 reflected a full year's impact of the decline in interest rates that occurred in the first half of 2020.

Balance Sheet

Assets: Total assets were $2.0 billion and assets under management were $2.8 billion as of December 31, 2021, both record levels. Assets under management include loans sold and serviced of $278.8 million and investment and trust assets managed by Isabella Wealth of $516.2 million, in addition to assets on the consolidated balance sheet. Assets under management increased $124.5 million, or 4.6%, compared to December 31, 2020. Isabella Wealth also reached record levels during 2021 and increased 16.3% during the year.

Loans: During 2021, total loans increased $62.7 million and totaled a record $1.3 billion at December 31, 2021. As customer demand increased, along with advances to mortgage brokers, the commercial loan portfolio increased $50.8 million, or 6.7%, during 2021. Competition for agricultural loans continued to be strong in 2021 and the portfolio declined $6.5 million during the year. Residential mortgage loans increased $18.8 million, or 6.1%, during 2021, while consumer loans recorded a slight decline.

Deposits: Total deposits were a record $1.7 billion as of December 31, 2021, an increase of $144 million, or 9.2%, since December 31, 2020. Growth in 2021 was largely the result of new customer accounts, funding from PPP loans, and government stimulus funds.

Capital: The Bank is considered a “well-capitalized” institution, as its capital ratios exceeded the minimum designated requirements. As of December 31, 2021, the Bank’s Tier 1 Leverage Ratio was 8.54%, Tier 1 Capital Ratio was 12.91% and Total Capital Ratio was 13.60%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend: During the fourth quarter of 2021, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation’s closing stock price of $25.50 as of December 31, 2021, the annualized cash dividend yield was 4.24%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

Isabella Bank Corporation Announces Fourth Quarter 2021 Dividend

11-30-2021

Isabella Bank Corporation (OTCQX:ISBA) today announced its Board of Directors declared a fourth-quarter cash dividend of $0.27 per common share at its regular meeting on November 23, 2021. The dividend will be payable December 17, 2021, to shareholders of record as of December 14, 2021. Based on ISBA’s closing stock price of $27.10 per share as of November 23, 2021, the annualized cash dividend yield is 3.99%.

“Our $0.27 fourth quarter cash dividend is a reflection of our unwavering commitment to increase shareholder value,” said Jae A. Evans, President and Chief Executive Officer. “Our strong financial results coupled with our successful initiatives implemented to enhance performance metrics have resulted in the recent appreciation in the value of our stock.”

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 118 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Invest in Us link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Isabella Bank Corporation Announces Strong Third Quarter 2021 Earnings
Net income climbs 27% for the year compared to the same period in 2020

10-21-2021

Isabella Bank Corporation (the “Corporation”) (OTCQX: ISBA) has released positive earnings results for the third quarter of 2021. The Corporation reported net income of $4.7 million for the quarter and $14.7 million for the first nine months of 2021. Both figures reflect increases over the same periods a year ago.

Earnings per common share were $0.59 in the third quarter and $1.85 for the first nine months of the year, increases from the same periods of 2020 at $0.55 and $1.46, respectively.

Highlights include growth in several key areas:

Net income increased 27% when comparing the first three quarters of 2021 to the same period in 2020.
Deposits rose to $1.7 billion, an increase of $126 million since the start of the year, largely the result of U.S. Small Business Administration Paycheck Protection Program (PPP) loans, government stimulus funds and new customer accounts.

Total assets were $2.1 billion and assets under management were $2.9 billion as of September 30, 2021, both records for the Corporation.

Tender Offer Results:

The Corporation conducted a modified Dutch auction from September 1 to October 13, 2021 which designated a portion of funds from its recent $30 million subordinated debt issuance to purchase up to $20 million in ISBA common stock. The tender offer resulted in the Corporation purchasing 396,577 shares at a final price of $27.00 per share, for a total of $10.7 million. The tendered shares represented 5% of the outstanding shares.

“Our successful Dutch auction resulted in a reduction of ISBA shares in the open market, which should improve several key metrics for shareholders,” said Jae A. Evans, President and Chief Executive Officer. “Our ongoing stock repurchase plan and this tender offer both align with our strategic plan to improve shareholder value.

“Overall, Isabella Bank Corporation continues to grow its customer base through trusted, quality service as an independent, community bank,” Evans said. “We’re focused on meeting our customer needs while pursuing smart, strategic initiatives that benefit our shareholders, customers and communities over the long-term.”

Operating Results

Net income: Net income for the third quarter 2021 was $4.7 million, compared to $4.4 million in 2020. For the first nine months of 2021, net income was $14.7 million, compared to $11.6 million in the same period of 2020.

Net interest income: Net interest income for the first nine months of 2021 increased $2.4 million, or 6.6%, compared to the same period in 2020. Loan fees generated from participation in the SBA's Payroll Protection Program helped offset a reduction in gross interest income resulting from the decline in interest rates. Conversely, lower interest rates and a reduction in higher-cost borrowings benefited the Corporation with a $5.1 million decrease in interest expense during the nine-month period. The provision for loan losses also decreased $2 million when comparing the first nine months of 2021 to the same period in 2020, as a result of continued strong credit quality.

Noninterest income and expenses: Noninterest income decreased $90,000 during the first nine months of 2021 compared to 2020, when the Corporation recorded significant gains from redemption of bank-owned life insurance policies. During the same period in 2021, service charges and fees increased $800,000 and wealth management fees rose by $397,000. Noninterest expenses declined $98,000 as a result of a continued focus on reducing operating expenses.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 2.85% and 2.87% for the third quarter and first nine months of 2021, respectively, compared to 2.89% and 2.93% for the same periods in 2020. The Corporation’s strategic plan includes programs to improve net yield on interest earning assets, including enhanced pricing related to loans and less reliance on higher cost borrowed funds and brokered deposits as funding sources.

Balance Sheet

Assets: Total assets stood at $2.1 billion and assets under management were at $2.9 billion as of September 30, 2021, both records for the Corporation. Assets under management include loans sold and serviced of $285 million and investment and trust assets managed by Isabella Wealth of $492 million, in addition to assets on the consolidated balance sheet. Assets under management increased $195 million compared to September 30, 2020.

Loans: Residential mortgage loans increased $14.1 million in the first nine months of the year and loans outstanding at the end of the third quarter totaled $1.2 billion. PPP loans, included within the commercial segment of the loan portfolio, declined by $20.4 million since the end of 2020 due to continued PPP loan forgiveness. This reduction in PPP loans was offset with growth in new commercial lending by $21.7 million.

Deposits: Total deposits were $1.7 billion as of September 30, 2021, an increase of $126 million since December 31, 2020.

Liquidity: The Corporation's liquidity position remains strong as evidenced by its $807.3 million of cash and available funds as of September 30, 2021. This total was comprised of $206.5 million in cash and cash equivalents, $260.8 million in available lines of credit and approximately $340 million in unencumbered investment securities.

Capital: The Bank is designated as a “well-capitalized” institution, as its capital ratios exceeded the minimum requirements. As of September 30, 2021, the Bank’s Tier 1 Leverage Ratio was 8.32%, Tier 1 Capital Ratio was 12.94% and Total Capital Ratio was 13.64%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend: During the third quarter of 2021, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation’s closing stock price of $26.03 as of September 30, 2021, the annualized cash dividend yield was 4.15%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 118 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

Isabella Bank Corporation Announces Strong Second Quarter 2021 Earnings
Successful $30 million subordinated debt offering complete

Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) released its earnings results for the second quarter of 2021. The Corporation reported net income of $4.6 million for the second quarter and $10 million for the first six months of 2021, both increased compared to the same periods a year ago. Earnings per common share were $0.58 in the second quarter and $1.26 for the first half of the year, up from the same periods of 2020 at $0.53 and $0.91, respectively.

Highlights include:

Completed a $30 million private placement of subordinated notes with an initial interest rate of 3.25%.
Net interest income — $12.7 million in the second quarter of 2021. Interest expense initiatives reduced costs by 45.9%, or $1.6 million, compared to the same period in 2020.
Noninterest expense controls continue to benefit the Corporation.
Loan payment deferrals, to provide short-term relief to customers, continued to decline as customers resumed contractual payments. As of June 30, 2021, loan deferrals totaled just 0.3% of gross loans.

“We delivered another strong financial quarter following our record performance from the previous quarter,” said Jae A. Evans, President and Chief Executive Officer of the Corporation. “Here at Isabella Bank, we continue to be a resource to our customers in a recovering economy. We facilitated over 950 PPP loans for a total of $99.5 million in 2020, and funded another 845 PPP loans for a total of $54.6 million this year. We also assisted customers by removing selected deposit account related charges and fees in day-to-day banking and temporarily waiving others."

On June 2, 2021, the Corporation completed a private placement of $30 million in fixed-to-floating rate notes due in 2031. The subordinated notes will initially bear a fixed interest rate of 3.25% until June 15, 2026, after which time until maturity, the notes convert to a floating rate instrument. The notes, issued to institutional investors, are structured to qualify as Tier 2 capital under regulatory guidelines. The Corporation expects to use proceeds from issuance of the notes for general corporate purposes, including potential repurchases of common stock and merger and acquisition activity.

“We are strengthening our ability to increase our presence while we continue to manage operating costs,” Evans said. “We also remain committed to increasing earnings and shareholder value through growth in our loan portfolio and Isabella Wealth.”

Operating Results

Net income: Net income for the second quarter 2021 was $4.6 million, compared to $4.2 million in the second quarter of 2020. For the first six months of 2021, net income was $10 million, compared to $7.3 million in the same period of 2020.

Net interest income: Net interest income for the first six months of 2021 increased by $1.6 million compared to the same period in 2020. Fees related to the U.S. Small Business Administration's Paycheck Protection Program ("PPP") have contributed significantly to interest income in 2021; however, fewer total loans and an interest rate decline led to a $2.1 million decrease in interest income when comparing the first two quarters of 2021 to 2020. Conversely, the reduction in interest rates, as well as reduced reliance on higher-cost borrowings, led to a $3.7 million decrease in interest expense on deposits and borrowings.

Noninterest income and expenses: Net gains on sold mortgage loans along with service charges and fees accounted for much of a $603,000 increase in noninterest income for the first six months of 2021 when compared to the same period in 2020. Noninterest expenses declined $333,000 for the first six months of 2021 compared to 2020, reflecting management's continued focus on reducing operating expenses.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 2.88% for the first six months of 2021 compared to 2.95% in the first six months of 2020. The Corporation’s banking subsidiary, Isabella Bank (the “Bank”), implemented strategic programs focused on improving the net yield on interest-earning assets, such as enhanced pricing related to loans and reduced reliance on higher-cost borrowed funds and brokered deposits. These efforts have helped, although the current interest rate environment has had a negative impact on the yield of interest-earning assets. Future improvement is expected at a gradual pace.

Balance Sheet

Assets: Total assets and assets under management were $2 billion and $2.8 billion as of June 30, 2021, respectively. Assets under management include loans sold and serviced of $290 million and investment and trust assets managed by Isabella Wealth of $493 million, in addition to assets on our consolidated balance sheet. Assets under management are up $243 million, or 9.4%, compared to June 30, 2020. Market improvement and growth in new client assets managed by Isabella Wealth, as well as growth in deposits, account for this increase.

Loans: Loans outstanding as of June 30, 2021, totaled $1.2 billion. Approximately $62 million of PPP loans are included in the commercial loan balance. During the first six months of 2021, gross loans declined $31.6 million, largely driven by a decrease in advances to mortgage brokers, which also is included in the commercial loan portfolio. Credit quality indicators remained strong and economic factors continued to improve in the second quarter.

Deposits: Total deposits were $1.64 billion as of June 30, 2021, an increase of $70.2 million since December 31, 2020. Since June 2020, total deposits have increased 13.6%. The increase of deposits is the result of funds from PPP loans, customers receiving stimulus checks, and attracting new customers.

Liquidity

The Corporation's liquidity position remains strong as evidenced by its $797 million of cash and available funds as of June 30, 2021. This total is comprised of $248.2 million in cash and cash equivalents, $248.8 million in available lines of credit and approximately $300 million in unencumbered investment securities.

Capital

The Bank is designated as a “well capitalized” institution, as its capital ratios exceeded the minimum requirements for this designation. As of June 30, 2021, the Bank’s Tier 1 Leverage Ratio was 8.3%, Tier 1 Capital Ratio was 13.5% and Total Capital Ratio was 14.2%. From a consolidated perspective, the Corporation's Tier 1 Leverage Ratio was 8.5%, Tier 1 Capital Ratio was 13.8% and Total Capital Ratio was 17.0% as of June 30, 2021. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend

During the second quarter of 2021, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation's closing stock price of $23.00 as of June 30, 2021, the annualized cash dividend yield was 4.70%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 118 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

Henderson Joins Isabella Bank South Board, Miller Retires after 19 Years
Mr. William Henderson III joins the Isabella Bank South Region Board following Mr. Timothy Miller’s retirement from the board after 19 years of loyal service.

07-21-2021

Brian Goward, South Region President of Isabella Bank announced the retirement of Mr. Timothy Miller and the appointment of Mr. William Henderson III to the Board, June 2021. Mr. Henderson graduated from Michigan State University with a degree in Engineering Arts. He currently serves as president of Aircraft Precision Products, a leading component supplier to the commercial and military aircraft engine industry.

“Bill is a pillar in the community. He is committed to serving others and helping them succeed in their endeavors. We are thrilled to have him join our board,” stated Goward.

Mr. Henderson earned the 2018 Association for Career Technical Education Region 1 Outstanding Board Member of the Year Award, 2016 Michigan Association of School Administrators Region 4 Champion of Children Award, as well as the 2003 and 2007 Finalist for MMA Michigan Manufacturer of the Year – Small Business Division.

He currently serves as chair of the Michigan Manufacturers Association, Greater Gratiot Development, and Coe Township Planning Commission. He serves as co-chair on the Central Michigan Manufacturers Association Special Interest Group, and vice-chair of the MidMichigan Health Foundation Board of Directors. He is currently the president of the Central Michigan Manufacturers Association, and is a member of the Gratiot-Isabella Regional Education Service District. He is treasurer and past president of Central Michigan Area Concert Band, and past chair of MidMichigan Health Board of Directors. William and his wife, Candace, reside in Shepherd.

“Mr. Miller was an asset to our Bank and Board for many years. We wish him all the best in retirement,” added Goward.

Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 118 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw. The Corporation has been recognized on the Detroit Free Press list of “Top Workplaces.”

Mid-Michigan Native Sarah Opperman Named Chair of Isabella Bank Corporation and its Subsidiary Isabella Bank
David Maness completes 11 years as chair, will continue as member of the board

06-08-2021

Sarah R. Opperman, retired executive of The Dow Chemical Company and lifelong mid-Michigan resident, has been named chair of the Isabella Bank Corporation (OTCQX:ISBA) and Isabella Bank Board of Directors. Former Chair David J. Maness will remain a member of the board.

“Mr. Maness and Ms. Opperman are visionary leaders,” said Jae A. Evans, President and Chief Executive Officer. “Both are resolute in upholding Isabella Bank’s 118-year history and culture as an independent, locally owned and operated community bank. They are strategic in their approach to growth while keeping a steadfast focus on knowing and serving our customers and communities extraordinarily well.”

Maness has been a director of Isabella Bank since 2003 and joined the corporate board of directors in 2004. He was named board chair in 2010.

During his tenure as chair, Isabella Bank Corporation and Isabella Bank:

Added six local branches in Midland, Freeland, Saginaw and Big Rapids.
Established its services in the East Region, which includes Midland and Saginaw counties.
Transitioned to the leadership of Evans, who had been the chief operations officer, from Richard Barz, who retired in 2013 after 46 years with the bank.
Launched its mobile banking services and option to open accounts online, which addressed increasingly crucial needs during the COVID-19 pandemic.
Grew its assets to nearly $2 billion, up almost $800,000 million.

“Dave is a champion for the bank as well as the residents and businesses we serve,” Evans said. “He has led the board in overseeing significant financial growth and increasing value for shareholders while further cementing our commitment to community. I’m delighted he will continue to serve on our board.”

Maness is president of Maness Petroleum, a geological and geophysical consulting services company founded in 1985 to explore the Michigan Basin for oil and gas. David and his brother, Tim, are equal owners of the Mt. Pleasant-based company. Maness also has served on the boards of the Michigan Oil and Gas Association and Mount Pleasant Public Schools.

Opperman joined the boards of Isabella Bank Corporation and the bank in 2012. She worked for Dow nearly 30 years, retiring in 2009 as vice president of Global Government Affairs and Public Policy. In 2018, she served as interim president and CEO of the Midland Business Alliance, an integrated business hub that includes economic development, the Chamber of Commerce and four other organizations. She received the Chairman’s Award from the Alliance in 2019 for her contributions in strategically realigning and relaunching the organization.

She also spent eight years on the Central Michigan University Board of Trustees, twice serving as chair.

Sarah has received Dow’s highest recognition for being an effective, committed leader and champion of people, and the ATHENA Award, for her community service and support of other women. She chairs the MidMichigan Health Foundation Board and is a member of the Midland 100 Club, a women’s organization that supported 47 local nonprofits in its first 10 years with contributions and grants approaching $1 million.

“Sarah’s vast experience in corporate business strategy and organizational leadership is invaluable as Isabella Bank continues its drive for growth and shareholder value,” Evans said.

“At the same time, she exudes commitment to our employees, communities and customers. Originally from Frankenmuth, having lived in Mount Pleasant and in Midland, she is very familiar with the communities throughout our seven-county footprint,” he said. “As so many other banks are sold and merged and sold again, Sarah knows the value of independent community banking.”

Opperman began as board chair May 26.

Bank Corporation Announces First Quarter 2021 Earnings
Strong results reflect strategic moves; loan portfolio metrics remain strong

04-22-2021

Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) released its earnings results for the first quarter of 2021. The Corporation reported net income of $5.4 million and earnings per common share of $0.68.

First quarter 2021 highlights include:

Net interest income was $13.2 million in the first quarter of 2021 and increased $1.2 million when compared to the same period in 2020.
Elimination of debt and higher-cost funding throughout 2020 and a decline in interest rates led to a $2.1 million decline in interest expenses in the first quarter of 2021 compared to the same period in 2020.
Provision for loan losses decreased $1.3 million compared to the first quarter of 2020 due largely to improving credit quality indicators and economic factors.
Total deposits increased $77.3 million in the first quarter of 2021.
Outstanding shares of ISBA stock have declined nearly 40,000 since December 31, 2020, as part of a buyback program and changes in the dividend reinvestment plan. The goal is to improve key metrics that positively affect shareholder value and price.

“Isabella Bank Corporation started 2021 with a strong first quarter that reflects the rebounding strength of our communities and the positive returns from the intentional actions we’ve taken in alignment with our five-year strategic plan,” said Jae A. Evans, President and Chief Executive Officer of the Corporation.

“New initiatives designed to support the changing needs of our customers, leverage the interest rate environment and improve key metrics were leading contributors to our excellent results in the first quarter.”

Net income

Net income for the first quarter 2021 was $5.4 million compared to $3.1 million in the first quarter of 2020.

Net interest income: Net interest income for the first quarter increased by $1.2 million compared to the same period in 2020. Net interest income has been up from March 2020 in each of the last four quarters due largely to PPP loans. Income from PPP interest totaled $2.3 million in 2020 and $1.2 million in the first quarter of 2021.

Noninterest income and expenses: Net gain on sold mortgage loans is a key reason noninterest income increased $534,000 in the first quarter compared to the same period in 2020. Ongoing operating expense controls led to noninterest expenses declining $128,000 compared to the first quarter of 2020.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 2.98% for the first quarter of 2021, the same percentage recorded in the first quarter of 2020. The Corporation’s banking subsidiary, Isabella Bank (the “Bank”), implemented strategic programs focused on improving the net yield on interest-earning assets, which included enhanced pricing related to loans and a reduced reliance on higher-cost borrowed funds and brokered deposits. These efforts have helped offset the year-long, low-interest-rate environment. As the economy recovers and interest rates rise, improvement in the yield on interest-earning assets is expected.

Assets

Total assets were $2 billion as of March 31, 2021, and assets under management were $2.8 billion. Assets under management are up $335.2 million, or 13.8%, in comparison to March 31, 2020.

Assets under management include loans sold and serviced of $298.5 million, investment and trust assets managed by Isabella Wealth of $454.5 million and assets on the consolidated balance sheet.

The securities portfolio increased $28.1 million in the first quarter of 2021 due primarily to purchases of U.S. Treasury securities.

Loans

Loans outstanding as of March 31, 2021, totaled $1.2 billion. During the first quarter 2021, gross loans declined $42.4 million, largely driven by reduced volume in advances to mortgage brokers. A second round of participation in the Small Business Administration's Paycheck Protection Program resulted in advances of more than 650 PPP loans totaling $49.9 million in the first quarter of 2021.

Deposits

Total deposits were $1.6 billion at the end of the first quarter 2021, an increase of $321.5 million compared to the same period in 2020. The increase of deposits is largely the result of PPP loan proceeds and from customers receiving government stimulus checks.

Liquidity

The Corporation's liquidity position remains strong as evidenced by its $740 million of cash and available funds as of March 31, 2021. This total is comprised of $322 million in cash and cash equivalents, $219 million in available lines of credit and approximately $200 million in unencumbered investment securities.

Capital

The Bank is designated as a “well capitalized” institution, as its capital ratios exceeded the minimum requirements for this designation. As of March 31, 2021, the Bank’s Tier 1 Leverage Ratio was 8.3%, Tier 1 Capital Ratio was 13.2% and Total Capital Ratio was 14.0%. From a consolidated perspective, the Corporation's Tier 1 Leverage Ratio was 8.6%, Tier 1 Capital Ratio was 13.8% and Total Capital Ratio was 14.5% as of March 31, 2021. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend

During the first quarter of 2021, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation's closing stock price of $21.75 as of March 31, 2021, the annualized cash dividend yield was 4.97%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 118 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com), its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com), and analyst coverage is provided by Piper Sander Companies (www.pipersandler.com).

Forward-Looking Statements

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

McGuirk and Payton Appointed to Isabella Bank Corporation and Isabella Bank Boards

03-11-2021

Jae Evans, President and Chief Executive Officer and David Maness, Board Chairman of Isabella Bank Corporation announced the appointment of Mr. Richard McGuirk and Mr. Chad Payton to the Corporate and Bank Boards on February 24, 2021.

Mr. McGuirk is President and Operations Manager of United Apartments and a Management Consultant for McGuirk Sand and Gravel. Mr. McGuirk brings a wealth of operational and executive management expertise to the Board. He currently serves on the Mt. Pleasant Area Community Foundation and Advancement Board for Central Michigan University. Mr. McGuirk earned his undergraduate degree from Central Michigan University, majoring in management and marketing. He is a licensed real estate broker and builder in the State of Michigan. Rick and his wife, Julie, reside in Mount Pleasant. They have four children, Tom, Trevor, Tyler, and Taryn.

“Rick’s entrepreneurial experience and leadership, combined with his commitment to the community makes him a great addition to both of our boards. We are excited to have Mr. McGuirk join our leadership team,” stated Jae Evans.

Mr. Payton, CPA is an Officer and Managing Partner with Roslund, Prestage & Company, CPA’s, PC. As a certified public accountant, Mr. Payton brings a vast knowledge of small business accounting and financial consulting to the Board. He currently serves on the Isabella Bank South Region Board, American Institute of CPAs, and Michigan Association of CPAs. Mr. Payton earned his undergraduate degree from Alma College. Chad and his wife, Natalie, reside in Mount Pleasant. They have two children, Mason and Tanner.

“Chad’s extensive knowledge and understanding in the areas of audit, tax, and financial planning has been a great asset to our South Region Advisory Board. We look forward to having him serve on our Corporate and Bank Boards,” stated David Maness, Board Chairman.

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 118 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

Isabella Bank Corporation Announces First Quarter 2021 Dividend

03-01-2021

Isabella Bank Corporation (OTCQX:ISBA) announced today that the Board of Directors of the Corporation declared a first quarter cash dividend of $0.27 per common share at its regular meeting held on February 24, 2021. The dividend will be payable on March 31, 2021 to shareholders of record as of March 26, 2021. Based on ISBA’s closing stock price of $20.50 per share as of February 24, 2021, the annualized cash dividend yield was 5.27%.

“The Corporation’s continued financial strength reinforces the strategic actions we have taken thus far to improve our performance metrics," said Jae A. Evans, President and Chief Executive Officer. “This dividend also reflects the stability we are maintaining as we address the ongoing challenges of a year old pandemic.”

About the Corporation
Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 118 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Invest in Us link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

{endAccordion}

Isabella Bank Corporation (ISBA) Announces Nasdaq Listing

Dave Reetz Retires After 38 Years at Isabella Bank, Michael Huenemann Promoted to Chief Lending Officer

Behen Joins Isabella Bank Board and Isabella Bank Corporation Board of Directors

Isabella Bank Corporation Announces First Quarter 2025 Dividend

Isabella Bank Corporation Reports Fourth Quarter 2024 Results

Kylie Bos Achieves CFP® Certification, Advancing Isabella Wealth's Client Offerings

Same Space, New Face. Isabella Bank's Transformation Lends to Downtown Beautification

Isabella Bank Corporation Announces Fourth Quarter 2024 Dividend

Isabella Bank Corporation Reports Third Quarter 2024 Results

Sackett Joins Isabella Bank Corporation Board of Directors

Isabella Bank Corporation Announces Third Quarter 2024 Dividend

Isabella Bank Corporation Reports Second Quarter 2024 Results

Isabella Bank Announces Promotion of Pratt to Branch Officer

Isabella Bank Announces Promotion of Campbell to Branch Officer

Peterson Joins Isabella Bank as Vice President, Director of Marketing

Isabella Bank Corporation Announces Second Quarter 2024 Dividend

Schaefer Joins Isabella Bank Corporation as Chief Financial Officer

Isabella Bank Corporation Announces First Quarter 2024 Dividend

Isabella Bank Corporation Announces Fourth Quarter and 2023 EarningsContinued growth in loans, Isabella Wealth; outpaced by continued interest rate pressure

McDonnell Appointed to Isabella Bank Corporation and Isabella Bank Boards

Schwind Assumes Role as President and CEO of Isabella Bank CorporationMcDonnell Appointed as Bank President

Isabella Bank Corporation Announces Fourth Quarter 2023 Dividend

Isabella Bank Corporation Announces Third Quarter 2023 EarningsGrowth in core loans and deposits; pricing competition continues

Isabella Bank Announces Promotion of Smith to Senior Vice President, Chief Technology Officer

Isabella Bank Announces Promotion of Acker to Assistant Vice President

Isabella Bank Announces Promotion of Neumeyer to Branch Manager in Midland

Isabella Bank Expands into Bay County with Loan, Wealth Office

Isabella Bank Corportation Announces Third Quarter 2023 Dividend

Jatczak Joins Isabella Bank as Branch Manager, Community Development Liaison in Saginaw

Isabella Bank Celebrates 120 Years of Community Roots

Isabella Bank Corporation Announces Second Quarter 2023 EarningsGrowth in loans, Isabella Wealth during Q2; results remain strong despite interest rate headwinds

Isabella Bank Corporation Announces Second Quarter 2023 Dividend

Isabella Bank Corporation Announces Executive Succession Plans

Isabella Bank Announces Promotion of Paulus to Agriculture Lender

Lamrouex and Dudek Join Isabella Bank as Branch Managers in Saginaw

Kendall Joins Isabella Bank as Commercial Lender

Seppala Receives Marian E. Kemp Outstanding Citizen Award

Isabella Bank Corporation Announces First Quarter 2023 Dividend

Strong Fourth Quarter Caps Record Year for Isabella Bank CorporationRecord Net Income and EPS in 2022; EPS up 19% over 2021

Isabella Bank Corporation Increases Fourth Quarter 2022 Dividend

Coffin Joins Isabella Bank Board

Isabella Bank Corporation Announces Further Earnings Growth in Third QuarterRecord net income up 26% over third quarter 2021

Isabella Bank Corporation Announces Third Quarter 2022 Dividend

Isabella Bank Corporation Announces Strong Second Quarter 2022 EarningsEarnings trend continues; strategies lift EPS and margin

Isabella Bank to Open Fifth Location in Saginaw

Isabella Bank Corporation Announces Second Quarter 2022 Dividend

Isabella Bank Corporation Announces First Quarter 2022 EarningsSolid start to 2022 with net income of $4.7 million

Isabella Bank Corporation Announces First Quarter 2022 Dividend

Isabella Bank Corporation Announces Strong Fourth Quarter and 2021 EarningsRecord assets, loans and net income of $19.5 million in 2021; EPS jumps 81%

Isabella Bank Corporation Announces Fourth Quarter 2021 Dividend

Isabella Bank Corporation Announces Strong Third Quarter 2021 EarningsNet income climbs 27% for the year compared to the same period in 2020

Isabella Bank Corporation Announces Strong Second Quarter 2021 EarningsSuccessful $30 million subordinated debt offering complete

Henderson Joins Isabella Bank South Board, Miller Retires after 19 YearsMr. William Henderson III joins the Isabella Bank South Region Board following Mr. Timothy Miller’s retirement from the board after 19 years of loyal service.

Mid-Michigan Native Sarah Opperman Named Chair of Isabella Bank Corporation and its Subsidiary Isabella BankDavid Maness completes 11 years as chair, will continue as member of the board

Bank Corporation Announces First Quarter 2021 EarningsStrong results reflect strategic moves; loan portfolio metrics remain strong

McGuirk and Payton Appointed to Isabella Bank Corporation and Isabella Bank Boards

Isabella Bank Corporation Announces First Quarter 2021 Dividend

Isabella Bank Corporation Announces Fourth Quarter and 2023 Earnings
Continued growth in loans, Isabella Wealth; outpaced by continued interest rate pressure

Schwind Assumes Role as President and CEO of Isabella Bank Corporation
McDonnell Appointed as Bank President

Isabella Bank Corporation Announces Third Quarter 2023 Earnings
Growth in core loans and deposits; pricing competition continues

Isabella Bank Corporation Announces Second Quarter 2023 Earnings
Growth in loans, Isabella Wealth during Q2; results remain strong despite interest rate headwinds

Strong Fourth Quarter Caps Record Year for Isabella Bank Corporation
Record Net Income and EPS in 2022; EPS up 19% over 2021

Isabella Bank Corporation Announces Further Earnings Growth in Third Quarter
Record net income up 26% over third quarter 2021

Isabella Bank Corporation Announces Strong Second Quarter 2022 Earnings
Earnings trend continues; strategies lift EPS and margin

Isabella Bank Corporation Announces First Quarter 2022 Earnings
Solid start to 2022 with net income of $4.7 million

Isabella Bank Corporation Announces Strong Fourth Quarter and 2021 Earnings
Record assets, loans and net income of $19.5 million in 2021; EPS jumps 81%

Isabella Bank Corporation Announces Strong Third Quarter 2021 Earnings
Net income climbs 27% for the year compared to the same period in 2020

Isabella Bank Corporation Announces Strong Second Quarter 2021 Earnings
Successful $30 million subordinated debt offering complete

Henderson Joins Isabella Bank South Board, Miller Retires after 19 Years
Mr. William Henderson III joins the Isabella Bank South Region Board following Mr. Timothy Miller’s retirement from the board after 19 years of loyal service.

Mid-Michigan Native Sarah Opperman Named Chair of Isabella Bank Corporation and its Subsidiary Isabella Bank
David Maness completes 11 years as chair, will continue as member of the board

Bank Corporation Announces First Quarter 2021 Earnings
Strong results reflect strategic moves; loan portfolio metrics remain strong