Isabella Bank Corporation (ISBA) Stock

Isabella Bank Corporation (ISBA) is a Financials stock trading at $39.79 (as of 2026-08-21), with a market capitalization of $303.55M and a trailing P/E of 15.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Isabella Bank Corporation is a bank holding company for Isabella Bank, offering deposit accounts, consumer and commercial lending, and related banking services. It provides cash management, mobile and internet banking, electronic bill pay, ATMs, trust and investment, estate planning, safe deposit boxes, and insurance and employee benefit programs to businesses, institutions, and individuals.

Understand Isabella Bank Corporation: how it makes money

Isabella Bank Corporation is a bank holding company that offers banking products and services, including deposit accounts and loan products for businesses, institutions, and individuals, plus cash management and mobile and internet banking. It makes money primarily through interest income on its loan portfolio, funded by interest-bearing liabilities, and it also earns from investment and wealth related activities.

As a bank, its core earnings power is driven by the gap between Yield on Loans and Cost of Interest-Bearing Liabilities, with results further affected by credit outcomes measured by loan charge-offs, loan recoveries, and delinquency (Loans Past Due and Accruing 30 to 89 Days).

Business quality (Mixed): The profit model is understandable from the provided operating metrics (loan yield, funding cost, and credit performance), but there is no reportable segment revenue detail in the provided data, so the drivers are assessed at the company level.

Valuation: At 15× earnings, ISBA trades 18% above the Banking average (13×). Note: one-time items can distort reported P/E.

Bull case

Positive income spread components: Yield on Loans is 5.78%, while Cost of Interest-Bearing Liabilities is 2.14% (both from the provided operating metrics).
Profitability on assets: Return on Average Assets is 0.96% for the latest period shown.
Delinquency level shown: Loans Past Due and Accruing 30 to 89 Days Percentage of Loans is 0.37%.

Bear case

Sensitivity to interest rate spread changes: Because the model relies on the relationship between Yield on Loans and Cost of Interest-Bearing Liabilities, unfavorable shifts in either input can pressure results.
Credit metrics can move quickly: Loan credit outcomes are reflected in Annualized Net Loan Recoveries Percentage of Average Loans (0.02%) and Net Loan Charge-offs Percentage of Average Loans (0.01%), so any deterioration would likely affect performance.
Loan delinquency is a watch item: Even with Loans Past Due and Accruing 30 to 89 Days at 0.37%, changes in delinquency could impact future credit performance.

Valuation — source: SEC EDGAR (first-party)
Price	$39.79
Market Cap	$303.55M
P/E Ratio	15.2
EV / EBITDA	9.5
Price / Book	1.22
Price / Sales	2.99
FCF Yield	7.5%
DCF Value (model)	$44.26
DCF Upside vs Price	11.2%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$96.03M
Net Margin	19.7%
Revenue Growth (YoY)	12.8%
EPS Growth (YoY)	1.5%
FCF Growth (YoY)	0.8%

Valuation vs Sector & Industry
Stock P/E	15.2
Sector P/E (Financials)	15.1
Industry P/E (Banking)	13.0
vs Sector	0.7%
vs Industry	17.2%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($15.33M)
Institutional Holders Tracked	10

Company
Sector	Financials
Industry	Banking
CEO	Jerome E. Schwind
Employees	368
Country	US
IPO Date	2006-01-30

Related Companies (Business model: Universal / Commercial Bank; 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.