Isabella Bank News

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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.

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.

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.

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

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

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 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

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

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

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

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

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 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

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

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 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

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

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).

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.

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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

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