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Isabella Bank
(NASDAQ:ISBA)
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Rating:67Neutral
Price Target:
$45.00
â–²(22.25% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by steady financial health and strong cash conversion, tempered by recent TTM revenue decline and meaningful margin compression. Valuation is reasonable with a supportive dividend, while technicals point to only modest momentum (mixed trend vs. longer-term moving averages). Corporate events are a net positive due to the planned acquisition and added capital flexibility.
Positive Factors
Strong Cash Conversion
Free cash flow closely tracking earnings indicates strong earnings quality and internal cash generation. This supports lending capacity, capital investment and shareholder returns while reducing reliance on external funding.
Negative Factors
TTM Revenue Decline
The reversal in revenue momentum signals pressure on loan growth, spreads or fee activity. If sustained, weaker top-line performance could constrain earnings expansion and reduce the resources available for strategic investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Conversion
Free cash flow closely tracking earnings indicates strong earnings quality and internal cash generation. This supports lending capacity, capital investment and shareholder returns while reducing reliance on external funding.
Read all positive factors
Isabella Bank (ISBA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$311.79M
Dividend Yield2.8%
Average Volume (3M)9.01K
Price to Earnings (P/E)14.7
Beta (1Y)0.07
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. Volume12,811
30 Day Avg. Volume9,008
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$43.00Price Target Upside16.82% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.55
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 makes money through its banking subsidiary by (1) generating net interest income—the spread between interest earned on interest-earning assets (such as commercial, consumer, and real estate loans and, where applicable, investment se...
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 | 12.17M | 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
36.81
Price Trends
40.14
Negative
41.69
Negative
44.22
Negative
Market Momentum
0.25
Negative
47.45
Neutral
37.55
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 36.81 is below the 20-day moving average (MA) of 40.15, below the 50-day MA of 40.14, and below the 200-day MA of 44.22, indicating a bearish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 37.55 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 | $363.98M | 11.47 | 11.72% | 2.55% | 6.41% | 17.50% | |
76 Outperform | $403.36M | 11.76 | 12.98% | 1.68% | 18.42% | 190.13% | |
75 Outperform | $332.33M | 11.70 | 10.57% | 0.37% | 5.31% | -4.05% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $311.79M | 14.68 | 8.48% | 2.86% | 11.11% | 24.17% | |
67 Neutral | $409.93M | 7.47 | 12.75% | 3.06% | 13.18% | 1682.10% |
* Financial Sector Average
ISBA
Isabella Bank
39.94
9.37
30.67%
FRST
Primis Financial
16.14
5.74
55.22%
TSBK
Timberland Bancorp
46.01
14.64
46.66%
CHMG
Chemung Financial
81.64
32.02
64.53%
COSO
CoastalSouth Bancshares
27.02
5.88
27.83%
Isabella Bank Corporate Events
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...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Isabella Bank Launches Flexible $30 Million ATM Program
Positive
Jun 16, 2026
On June 16, 2026, Isabella Bank Corporation and its subsidiary Isabella Bank entered into an Equity Distribution Agreement with Piper Sandler Co. to allow periodic sales of up to $30 million of the company’s common stock through at-the-mark...
M&A TransactionsRegulatory Filings and Compliance
Isabella Bank to Acquire Grand River Commerce in Merger
Positive
Jun 15, 2026
On June 11, 2026, Isabella Bank Corporation and Grand River Commerce entered into a definitive merger agreement under which Isabella will acquire Grand River in a multi-step transaction that also combines their bank subsidiaries. Grand River share...
Business Operations and StrategyM&A Transactions
Isabella Bank to Merge with Grand River Commerce
Positive
Jun 12, 2026
Isabella Bank Corporation and Grand River Commerce, Inc., two Michigan-based community bank holding companies, announced on June 12, 2026, that they entered into a merger agreement valuing Grand River at about $54.6 million in a cash-and-stock dea...
Dividends
Isabella Bank Declares Second-Quarter 2026 Cash Dividend
Positive
May 28, 2026
On May 28, 2026, Isabella Bank Corporation announced that its board had declared a second-quarter cash dividend of $0.28 per common share at a regular meeting held on May 26, 2026. The dividend is scheduled to be paid on June 30, 2026, to sharehol...
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.