MOUNT PLEASANT, MI / ACCESS Newswire / January 5, 2026 / Isabella Bank Corporation proudly announces the appointment of Gerald J. Ritzert, CPA as its Chief Financial Officer, effective January 5, 2026.Jerome Schwind, President and Chief Executive Officer of Isabella Bank Corporation, shared his enthusiasm for Ritzert's arrival. "We are excited to welcome Jerry to our leadership team. His extensive banking experience and proven ability to drive financial performance and strategic growth will be invaluable ...

Out of 245 regional banks that are scored by Seeking Alpha's Quant rating, Isabella Bank Corporation ( ISBA ) is rated second overall, behind only Ponce Financial Group ( PDLB ). However, a look at theI have been involved in the financial world for over 20 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stocks ...

Company Overview - Isabella Bank Corporation (ISBA) shares increased by 5.4% to $48.99 in the last trading session, with a notable trading volume, and have gained 15.7% over the past four weeks [1] - The company is expected to report quarterly earnings of $0.74 per share, reflecting a year-over-year increase of 42.3%, with revenues projected at $20.8 million, up 12.3% from the previous year [3] Earnings Estimates and Trends - The consensus EPS estimate for Isabella Bank has been revised 8.8% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] - Empirical research suggests a strong correlation between earnings estimate revisions and near-term stock price movements, highlighting the importance of monitoring these trends [3][4] Industry Context - Weakening job markets may lead the Federal Reserve to lower interest rates further, which could impact banks' net interest income and margins, but asset repricing and solid loan demand are expected to provide support [2] - Isabella Bank belongs to the Zacks Banks - Northeast industry, where another company, Independent Bank Corp. (INDB), has shown a 6.4% return over the past month, closing at $74.29 [4]

Core Insights - Small-cap stocks have rebounded in 2025 due to Fed rate cuts, with benchmarks like Russell 2000 increasing by 13% and S&P 600 by 5.3% year to date [1][10] - Lower borrowing costs from reduced interest rates support small businesses, which typically operate on thin profit margins [2][10] - Small-cap companies have growth potential and are less exposed to international market fluctuations, although they may exhibit higher volatility compared to larger firms [3] Company Summaries - **Allot Ltd. (ALLT)**: A provider of network intelligence and security solutions, with expected revenue and earnings growth rates of 13.3% and 15.9% respectively for next year. The Zacks Consensus Estimate for earnings has improved by 4.2% over the last 30 days [7][8] - **Seanergy Maritime Holdings Corp. (SHIP)**: A pure-play Capesize ship-owner with an expected revenue growth rate of 8.2% and earnings growth rate of 39.1% for next year. The Zacks Consensus Estimate for earnings has increased by 30.9% over the last 30 days [11] - **Isabella Bank Corp. (ISBA)**: A community bank offering personal and commercial lending, with expected revenue and earnings growth rates of 9.4% and 16.3% respectively for next year. The Zacks Consensus Estimate for earnings has improved by 15.4% over the last 60 days [12][13] - **Owlet Inc. (OWLT)**: Provides a digital parenting platform with expected revenue and earnings growth rates of 22% and 79.7% respectively for next year. The Zacks Consensus Estimate for earnings has increased by 27.3% over the last 30 days [14][15] - **Intellicheck Inc. (IDN)**: Develops wireless technology and identity systems, with expected revenue and earnings growth rates of 10.3% and 66.7% respectively for next year. The Zacks Consensus Estimate for earnings has improved by 66.7% over the last 30 days [16][18]

Core Viewpoint - Isabella Bank Corporation (ISBA) is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum for the stock [1][2]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact the stock price [2]. - For the current quarter, the earnings per share (EPS) estimate is $0.74, representing a 42.3% increase from the previous year [4]. - Over the last 30 days, there has been one upward revision in estimates for Isabella Bank, with no negative revisions, leading to a 16.53% increase in the Zacks Consensus Estimate [4]. - For the full year, the EPS estimate is $2.58, indicating a year-over-year change of 28.4% [5]. - The current year also shows a positive trend, with one estimate moving higher and an 11.93% increase in the consensus estimate [5]. Zacks Rank - Isabella Bank has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator for investors [6]. - Stocks with a Zacks Rank 1 and 2 (Buy) have historically outperformed the S&P 500 [6]. Stock Performance - The stock has gained 18.8% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [7].

Core Points - Isabella Bank Corporation declared a fourth-quarter cash dividend of $0.28 per common share [1] - The dividend will be payable on December 19, 2025, to shareholders of record as of December 17, 2025 [1]

Securities and Fair Value - As of September 30, 2025, the total amortized cost of AFS securities is $524,534, with a fair value of $511,970, reflecting unrealized losses of $13,671[31]. - The U.S. Treasury securities have an amortized cost of $210,462 and a fair value of $206,041, resulting in unrealized losses of $4,421[31]. - The total unrealized losses for AFS securities categorized by investment type include $4,421 for U.S. Treasury, $2,966 for states and political subdivisions, and $1,299 for mortgage-backed securities[34]. - The number of securities in an unrealized loss position as of September 30, 2025, is 183, compared to 353 as of December 31, 2024[34]. - Management does not believe any of the AFS securities are impaired due to credit quality, as issuers continue to make timely principal and interest payments[34]. - The company expects unrealized losses to recover as securities approach their maturity date or if market yields decline[34]. - The total available-for-sale (AFS) securities reached $511,970 million on September 30, 2025, compared to $489,029 million at the end of 2024, reflecting a growth of approximately 4.0%[103]. - The fair value of collateral-dependent loans was $3,426 million with a discount rate of 25% applied to real estate collateral[97]. - The fair value of OMSR (Other Mortgage Servicing Rights) as of September 30, 2025, was $2,164 million, with a constant prepayment rate of 7% and a discount rate of 11%[99]. - The estimated fair value of gross loans as of September 30, 2025, was $1,395,921 million, while the net loans were valued at $1,382,772 million after accounting for an allowance for credit losses of $13,149 million[102]. - The carrying value of deposits without stated maturities was $1,520,804 million, matching the estimated fair value[102]. - The estimated fair value of subordinated debt as of September 30, 2025, was $28,417 million, with a carrying value of $29,492 million[102]. - The company conducts quarterly reviews of net realizable values for collateral-dependent loans to determine if additional reserves or charge-offs are necessary[96]. - The company utilizes independent appraisals and internal evaluations to assess the collateral value for loans, ensuring accurate fair value measurements[96]. - The percentage of assets and liabilities measured at fair value was 98.73% for Level 2 and 1.27% for Level 3 as of September 30, 2025, indicating a stable valuation structure[103]. - The company had no unrealized gains and losses included in other comprehensive income (OCI) for recurring Level 3 fair value measurements at the end of the reporting period[103]. Loan Portfolio and Credit Quality - Total loan portfolio balance as of September 30, 2025, is $1,431,905 million, a slight increase from $1,423,571 million on December 31, 2024[35]. - Commercial and industrial loans account for 15.23% of the total loan portfolio, increasing from 14.09% in the previous period[35]. - Total commercial real estate loans represent 43.77% of the loan portfolio, up from 41.57%[35]. - Residential real estate loans increased to 28.78% of the total portfolio, compared to 26.75% previously[35]. - Nonaccrual loans totaled $3,443 million as of September 30, 2025, with $282 million having no allowance for credit losses (ACL)[45]. - Past due loans include $100 million in the 30-59 days category and $3,000 million in the 90 days or more category for commercial and industrial loans[45]. - The company has a maximum loan-to-value ratio of 100% for residential real estate loans, with private mortgage insurance required for ratios exceeding 80%[40]. - The company reported net unamortized deferred loan costs of $3,129 million as of September 30, 2025[36]. - The company limits direct credit exposure to any one borrower to $18,000, utilizing loan participations for larger amounts[37]. - Consumer loans, which include secured and unsecured personal loans, total $72,225 million, down from $87,584 million[35]. - Total commercial and industrial loans amount to $200,623 million, with $328 million past due in the 30-59 days category[46]. - Total commercial real estate loans stand at $591,718 million, with $817 million past due in the 30-59 days category[46]. - Total agricultural loans are $99,694 million, with no loans past due in the 30-59 days category[46]. - Total residential real estate loans amount to $380,872 million, with $3,875 million past due in the 30-59 days category[46]. - Total consumer loans are $87,584 million, with $251 million past due in the 30-59 days category[46]. - The total amount of loans past due across all categories is $5,271 million, with a total loan portfolio of $1,423,571 million[46]. - The company reported gross charge-offs of $22 million year-to-date for commercial and industrial loans[48]. - For unsecured commercial and industrial loans, total loans amount to $31,826 million, with $10,692 million rated 1-3 risk[48]. - The total for commercial real estate loans (owner-occupied) is $220,233 million, with $21,777 million rated 1-3 risk[48]. - The total for commercial real estate loans (non-owner occupied) is $224,653 million, with $28,501 million rated 1-3 risk[48]. - Total commercial real estate loans reached $97.971 billion, with risk ratings 1-3 contributing $11.202 billion[49]. - Multifamily commercial real estate loans totaled $83.785 billion, with risk rating 4 accounting for $16.633 billion[49]. - Agricultural mortgage loans amounted to $67.726 billion, with risk ratings 1-3 contributing $5.798 billion[49]. - The total for commercial and industrial secured loans was $177.239 billion, with risk rating 4 at $27.530 billion[50]. - Gross charge-offs for commercial and industrial secured loans year-to-date were $327 million[50]. - Owner-occupied commercial real estate loans totaled $213.086 billion, with risk rating 4 at $34.980 billion[50]. - Non-owner occupied commercial real estate loans reached $217.679 billion, with risk rating 1-3 contributing $18.783 billion[50]. - The company reported $5.056 billion in advances to mortgage brokers for 2025 year-to-date[49]. - Risk rating 4 loans in commercial real estate increased significantly, reflecting a total of $160.134 billion[50]. - The company has not reported any gross charge-offs for agricultural mortgages year-to-date[49]. - Total loans for commercial real estate (1-4 family investor) reached $10,564 million in 2024, a decrease of 20% from $13,216 million in 2023[51]. - The total for commercial real estate multifamily loans was $68,456 million year-to-date in 2024, compared to $5,340 million in 2023, indicating a significant increase in risk ratings 1-3[51]. - Agricultural mortgage loans totaled $67,550 million in 2024, with risk ratings showing a mix of performance across different categories[51]. - The company reported a total of $92,497 million in loans across various risk ratings, with risk rating 4 loans amounting to $81,831 million[51]. - The company has implemented lending policies to maximize loan income while managing risk, with regular reviews by the Board of Directors[52]. - Internally assigned credit risk ratings are reviewed at least during loan renewals, ensuring ongoing assessment of credit quality[53]. - The classification of loans includes categories from "Excellent" to "Loss," with specific criteria for each rating to manage credit risk effectively[54][55][56]. - The company aims to diversify its loan portfolio to mitigate risks associated with economic fluctuations[52]. - The total gross charge-offs for agricultural other loans in 2024 were $32,144 million, reflecting the challenges in this segment[51]. - The company emphasizes the importance of cash flow and management capabilities in assessing loan quality and risk ratings[54][56]. Financial Performance - Consolidated net income is used to benchmark results against competitors, with significant revenue streams from loan and investment interest, deposit-related fees, and wealth fees[28]. - The company’s operations are entirely domestic, with all banking-related operations aggregated into one reportable operating segment[26]. - The financial performance is evaluated on a corporate-wide basis, with significant expenses including interest expense, provision for credit losses, and compensation costs[28]. - Basic earnings per common share for the three months ended September 30, 2025, was $0.71, an increase from $0.44 in the same period of 2024, representing a 61.4% growth[88]. - Diluted earnings per common share for the nine months ended September 30, 2025, was $1.92, compared to $1.32 for the same period in 2024, reflecting a 45.5% increase[88]. - The net income for the three months ended September 30, 2025, was $5,240 million, compared to $3,281 million for the same period in 2024, indicating a 59.7% increase[88]. - The average number of common shares outstanding for basic calculation decreased from 7,454,097 in 2024 to 7,357,977 in 2025[88]. - The balance of accumulated other comprehensive income (AOCI) as of September 30, 2025, was $(10,409) million, an improvement from $(14,387) million at the beginning of the quarter[90]. - Unrealized gains on available-for-sale (AFS) securities for the three months ended September 30, 2025, totaled $5,030 million, compared to $13,081 million in the same period of 2024[91]. - The company maintained its "well capitalized" status under the FDIC's regulatory framework as of September 30, 2025, with no changes in conditions or events affecting this status[89]. - Common equity Tier 1 capital to risk-weighted assets ratio for Isabella Bank was 12.26% as of September 30, 2025, exceeding the minimum requirement of 7.00%[89]. - Total capital to risk-weighted assets ratio for consolidated entities was 15.20% as of September 30, 2025, well above the minimum requirement of 10.50%[89]. Allowance for Credit Losses - The allowance for credit losses (ACL) is continuously monitored and adjusted based on expected losses inherent in the loan portfolio[68]. - The ACL is evaluated regularly, considering historical experience and current economic conditions, which may lead to significant changes in future periods[69]. - The methodology for estimating expected credit losses includes both individual loan analysis and pooled components for loans sharing similar risk characteristics[71]. - As of September 30, 2025, the total allowance for credit losses (ACL) was $13,149 million, an increase from $12,977 million as of June 30, 2025, reflecting a 1.32% rise[80]. - The provision for credit losses for the three months ended September 30, 2025, was $246 million, compared to a provision of $899 million for the same period in 2024, indicating a significant decrease[79]. - Charge-offs for the three months ended September 30, 2025, totaled $175 million, while recoveries amounted to $101 million, resulting in a net charge-off of $74 million[77]. - The ACL to gross loans ratio as of September 30, 2025, was 0.92%, slightly down from 0.93% as of June 30, 2025[80]. Loan Modifications and Financial Difficulty - Loan modifications are granted to borrowers experiencing financial difficulty, including interest rate reductions and extended maturity dates[63]. - The company considers various factors to determine financial difficulty, including current defaults and insufficient cash flow to service debt[63]. - The total amortized cost basis for loans modified due to financial difficulty was $9,056 for the three months ended September 30, 2025, with secured commercial and industrial loans at $4,114[67]. - The weighted average payment delay for secured commercial and industrial loans was 6 months, with a term extension of 1.08 years for the three months ended September 30, 2025[66]. - The company committed to advance $79 million in additional funds for modified loans as of September 30, 2025[65]. - No loans modified within 12 months prior to default were reported for the three and nine-month periods ended September 30, 2025, and 2024[67]. - The total amortized cost basis for agricultural mortgage modifications was $914, representing 1.35% of the total class of financial receivables[64]. - The total amortized cost basis for agricultural other loans was $925, representing 3.08% of the total class of financial receivables for the three months ended September 30, 2025[64]. - The company does not modify loans by forgiving principal or accrued interest, ensuring that all modifications are structured to maintain loan integrity[65].

Core Insights - Isabella Bank Corporation (ISBA) reported quarterly earnings of $0.71 per share, exceeding the Zacks Consensus Estimate of $0.60 per share, and showing an increase from $0.61 per share a year ago, resulting in an earnings surprise of +18.33% [1] - The company achieved revenues of $20.47 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.44% and increasing from $18.02 million year-over-year [2] - Isabella Bank shares have appreciated approximately 38.1% year-to-date, significantly outperforming the S&P 500's gain of 15.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.64, with expected revenues of $19.9 million, and for the current fiscal year, the consensus EPS is $2.31 on revenues of $76.4 million [7] - The estimate revisions trend for Isabella Bank was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Banks - Northeast industry, to which Isabella Bank belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another bank in the same industry, Peapack-Gladstone (PGC), is expected to report quarterly earnings of $0.59 per share, reflecting a year-over-year increase of +37.2%, with revenues projected at $72.21 million, up 27.5% from the previous year [9]

Financial Performance - Net income for Q3 2025 was $5.2 million, or $0.71 per diluted share, compared to $3.3 million, or $0.44 per diluted share in Q3 2024[15]. - Basic earnings per share for Q3 2025 increased to $0.71, up 4.41% from $0.68 in Q2 2025 and 61.36% from $0.44 in Q3 2024[32]. - Diluted earnings per share for Q3 2025 also rose to $0.71, reflecting the same growth trends as basic earnings[32]. - Net income for the quarter was $5,240 million, compared to $5,031 million in the previous quarter, reflecting an increase of 4.2%[36]. - Earnings per common share increased to $0.71, up from $0.68 in the previous quarter, representing a growth of 4.4%[36]. Assets and Liabilities - Total assets increased to $2.3 billion, up $173.4 million from December 31, 2024, driven by a $127.5 million rise in interest-bearing cash balances[6]. - Total liabilities increased to $2,032,234 million, up from $1,935,668 million in the previous quarter, a rise of 5.0%[34]. - Total assets increased to $2,259,654 million as of September 30, 2025, up from $2,156,168 million in the previous quarter, representing a growth of 4.8%[34]. - Total assets increased to $2,206,722 thousand as of September 30, 2025, from $2,095,200 thousand a year earlier[38]. Loans and Deposits - Total loans reached $1.4 billion, increasing by $34.4 million during Q3 2025, with core loans growing by $32 million, or 2%[9]. - Total deposits grew to $1.93 billion, up $76.2 million in Q3 2025 and $178.5 million since December 31, 2024[13]. - Total deposits rose to $1,925,602 million, an increase from $1,849,376 million in the previous quarter, reflecting a growth of 4.1%[34]. - Core loans reached $1,426,849 thousand as of September 30, 2025, up from $1,348,096 thousand a year earlier[41]. Income and Margins - Net interest income for Q3 2025 was $16.2 million, representing an 11.6% increase compared to Q3 2024[9]. - Noninterest income for Q3 2025 was $4.3 million, an increase from $3.5 million in Q3 2024, driven by profitability initiatives[20]. - Total interest income for the quarter was $24,882 million, compared to $23,242 million in the previous quarter, marking an increase of 7.1%[36]. - Net interest income after provision for credit losses was $15,953 million, slightly down from $16,228 million in the previous quarter, a decrease of 1.7%[36]. - The net yield on interest earning assets (FTE) improved to 3.15% for the three months ended September 30, 2025, from 2.96% a year ago[40]. Equity and Capital - Total equity increased to $227.4 million, or $30.94 per share, compared to $210.3 million, or $28.32 per share at year-end 2024[14]. - Shareholders' equity rose to $223,970 thousand as of September 30, 2025, compared to $208,444 thousand in the same period last year[38]. - The tangible book value per share increased to $24.37 in Q3 2025, up from $23.39 in Q2 2025, indicating growth in shareholder equity[32]. - Tangible book value per share increased to $24.37 as of September 30, 2025, compared to $22.14 a year ago[41]. Credit Quality - The allowance for credit losses (ACL) reached $13.1 million, reflecting a $172 thousand increase during Q3 2025[11]. - Nonaccrual loans increased to $3,443 thousand in Q3 2025 from $1,164 thousand in Q2 2025, highlighting a significant rise in asset quality concerns[32]. - The provision for credit losses was $209 million, compared to a reversal of $1,099 million in the previous quarter, indicating a shift in credit quality assessment[36]. Operational Efficiency - The efficiency ratio improved to 67.51% in Q3 2025, compared to 70.53% in Q2 2025, indicating better operational efficiency[32]. - The return on average total assets for Q3 2025 was 0.94%, slightly down from 0.96% in Q2 2025 but up from 0.62% in Q3 2024[32]. Non-GAAP Measures - Non-GAAP financial measures are utilized to provide a more comprehensive understanding of the company's financial performance, supplementing GAAP measures[28]. - The company acknowledges that not all companies use the same calculations for non-GAAP measures, which may affect comparability[29]. - A reconciliation of non-GAAP financial measures to GAAP measures is provided, ensuring transparency in financial reporting[30].

Financial Performance - The company reported net income of $5.2 million for the third quarter of 2025 [1] - For the nine months ended September 30, 2025, the net income was $14.2 million [1] - Earnings per diluted share were $0.71 for the third quarter of 2025 and $1.92 for the first nine months of 2025 [1]