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Isabella Bank
(NASDAQ:ISBA)
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Rating:67Neutral
Price Target:
$42.00
â–²(9.15% Upside)
Action:Reiterated
Date:10/07/26
The score is driven primarily by stable financial performance (moderate leverage, growing equity, and strong cash flow conversion) and supportive corporate events around the pending merger. These positives are tempered by weaker technical signals (below key moving averages and negative MACD) and some near-term fundamental pressure from TTM revenue decline and operating-margin compression, while valuation and dividend yield provide a modest cushion.
Positive Factors
Merger-driven footprint expansion
The pending Grand River combination is a structural opportunity to expand Isabella Bank’s geographic reach and create a larger Michigan community-banking platform. Regulatory and shareholder approvals reduce key transaction hurdles, although customary closing conditions remain.
Negative Factors
TTM revenue contraction
The latest revenue decline signals weaker near-term business momentum after several years of mostly positive annual growth. If sustained, lower revenue could constrain operating leverage, reduce resources available for expansion, and make post-merger growth execution more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Merger-driven footprint expansion
The pending Grand River combination is a structural opportunity to expand Isabella Bank’s geographic reach and create a larger Michigan community-banking platform. Regulatory and shareholder approvals reduce key transaction hurdles, although customary closing conditions remain.
Read all positive factors
Isabella Bank (ISBA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$284.48M
Dividend Yield3%
Average Volume (3M)50.27K
Price to Earnings (P/E)13.7
Beta (1Y)0.10
Revenue Growth11.11%
EPS Growth24.17%
CountryUS
Employees360
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.72
Shares Outstanding7,628,873
10 Day Avg. Volume30,274
30 Day Avg. Volume50,268
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.59
Price to Sales (P/S)3.29
P/FCF Ratio15.81
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue3.70
Enterprise Value/Gross Profit5.47
Enterprise Value/Ebitda29.57
Forecast
1Y Price Target
$43.00Price Target Upside11.75% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.3
Revenue Forecast (FY)$92.50M
Isabella Bank Business Overview & Revenue Model
Company Description
Isabella Bank Corporation serves as the parent company for Isabella Bank, providing a comprehensive suite of banking products and financial services. Its diverse clientele includes businesses, institutions, private individuals, and families. The b...
How the Company Makes Money
ISBA primarily earns revenue through its bank subsidiary via (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets (notably loans to consumers and bu...
Isabella Bank Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 106.38M | 112.00M | 101.71M | 90.76M | 76.55M | 71.28M |
| Gross Profit | 71.98M | 79.07M | 65.69M | 68.45M | 70.75M | 64.38M |
| EBITDA | 13.31M | 22.28M | 18.48M | 23.81M | 28.91M | 26.29M |
| Net Income | 19.96M | 18.91M | 13.89M | 18.17M | 22.24M | 19.50M |
Balance Sheet | ||||||
| Total Assets | 2.22B | 2.21B | 2.09B | 2.06B | 2.03B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 481.06M | 226.85M | 253.03M | 561.82M | 619.40M | 595.93M |
| Total Debt | 145.57M | 142.51M | 112.99M | 116.14M | 87.02M | 99.32M |
| Total Liabilities | 1.97B | 1.98B | 1.88B | 1.86B | 1.84B | 1.82B |
| Stockholders Equity | 248.70M | 231.40M | 210.28M | 202.40M | 186.21M | 211.05M |
Cash Flow | ||||||
| Free Cash Flow | 23.86M | 23.34M | 17.53M | 20.12M | 23.73M | 23.91M |
| Operating Cash Flow | 25.76M | 26.82M | 19.64M | 24.18M | 26.94M | 25.50M |
| Investing Cash Flow | -128.14M | -115.88M | -37.87M | -26.25M | -106.20M | -229.63M |
| Financing Cash Flow | 35.61M | 90.56M | 9.10M | -3.19M | 12.91M | 62.82M |
Isabella Bank Technical Analysis
Negative
38.48
Price Trends
38.96
Negative
39.52
Negative
42.96
Negative
Market Momentum
-0.27
Negative
42.37
Neutral
58.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISBA, the sentiment is Negative. The current price of 38.48 is above the 20-day moving average (MA) of 38.00, below the 50-day MA of 38.96, and below the 200-day MA of 42.96, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 58.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISBA.
Isabella Bank Risk Analysis
Isabella Bank disclosed 45 risk factors in its most recent earnings report. Isabella Bank reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Isabella Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $348.51M | 11.18 | 11.72% | 2.59% | 6.41% | 17.50% | |
75 Outperform | $318.83M | 11.55 | 10.57% | 0.56% | 5.31% | -4.05% | |
70 Outperform | $388.32M | 11.61 | 12.98% | 1.71% | 18.42% | 190.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $284.48M | 13.71 | 8.48% | 3.00% | 11.11% | 24.17% | |
67 Neutral | $378.19M | 7.06 | 12.75% | 2.62% | 13.18% | 1682.10% |
* Financial Sector Average
ISBA
Isabella Bank
37.29
1.77
4.97%
FRST
Primis Financial
15.25
5.41
55.06%
TSBK
Timberland Bancorp
44.82
14.17
46.21%
CHMG
Chemung Financial
80.54
31.19
63.21%
COSO
CoastalSouth Bancshares
26.67
5.36
25.18%
Isabella Bank Corporate Events
Business Operations and StrategyM&A Transactions
Isabella Bank gains approvals for Grand River merger
Positive
Oct 6, 2026
Isabella Bank Corporation and Grand River Commerce, Inc., both Michigan-based community bank holding companies, operate complementary footprints in mid- and West Michigan with a mix of retail, commercial and wealth services. Their combined presenc...
Business Operations and StrategyM&A Transactions
Isabella Bank advances Grand River merger with shareholder elections
Positive
Sep 28, 2026
On September 28, 2026, Isabella Bank Corporation and Grand River Commerce, Inc. announced they have mailed election materials to Grand River shareholders, marking a key step toward their proposed merger expected to close in the fourth quarter of 2...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Isabella Bank Advances Grand River Commerce Merger Plan
Positive
Sep 21, 2026
Isabella Bank Corporation and Grand River Commerce, Inc. entered into a merger agreement on June 11, 2026, outlining a multi-step transaction in which Isabella’s wholly owned Merger Sub will merge into Grand River, followed by Grand River...
DividendsFinancial Disclosures
Isabella Bank Declares Third-Quarter Cash Dividend
Positive
Aug 27, 2026
On August 27, 2026, Isabella Bank Corporation announced that its Board of Directors had declared a third-quarter cash dividend of $0.28 per common share at a regular meeting held on August 26, 2026. The dividend was scheduled to be paid on Septemb...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Isabella Bank Updates Executive Retirement Plan for CFO
Positive
Aug 14, 2026
On August 11, 2026, Isabella Bank Corporation entered into a new participation agreement under its Supplemental Executive Retirement Plan with Chief Financial Officer Gerald J. Ritzert, setting out eight annual credits totaling $300,000 to his pla...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.