Isabella Bank sets third-quarter dividend at $0.28 per share

MT. PLEASANT, Mich. - Isabella Bank Corporation (OTCQX: ISBA), a community-focused banking institution, has declared a third-quarter cash dividend of $0.28 per common share. This announcement was made following the Board of Directors' meeting held on August 28, 2024. Shareholders of record as of September 26, 2024, will be eligible for the dividend, which is scheduled for disbursement on September 30, 2024.

The dividend declaration comes as Isabella Bank continues to emphasize its commitment to enhancing shareholder value. Jerome E. Schwind, the President and Chief Executive Officer of the corporation, expressed satisfaction with the company’s ability to deliver consistent returns to its investors. "Our ongoing commitment to provide an attractive return on shareholder investment is evidenced by our dividend yield," Schwind stated.

Isabella Bank Corporation, established in 1903, operates Isabella Bank, a state-chartered community bank serving customers across eight counties in Mid-Michigan. The bank offers a variety of financial services, including personal and commercial lending, deposit products, and investment management.

At the close of the market on August 28, 2024, Isabella Bank Corporation's stock was priced at $19.15 per share. With the current dividend rate, the annualized yield for investors stands at approximately 5.85%.

Investors and interested parties can find more information about Isabella Bank Corporation through the Investor Relations section of their website. The corporation's common stock is traded on the OTCQX tier of the OTC Markets Group under the ticker symbol "ISBA."

This press release contains forward-looking statements, and the company cautions that actual results could differ materially from those projected in any forward-looking statements. The press release also advises readers to consider the risk factors and forward-looking statements as detailed in Isabella Bank Corporation's filings with the Securities and Exchange Commission.

The information for this article is based on a press release statement from Isabella Bank Corporation.

In other recent news, Isabella Bank Corp received a price target increase from Piper Sandler, moving from $20.00 to $22.00, while maintaining a neutral rating. This adjustment comes after Isabella Bank's impressive second-quarter results, with a significant rise in net interest income and robust loan growth. The firm also emphasized the bank's potential long-term appeal, highlighted by an attractive 5.6% dividend yield, which surpasses the peer average of 3.2%.

Piper Sandler has also raised its earnings per share estimates for Isabella Bank for the years 2024 and 2025, now standing at $1.80 and $2.10, respectively. The new price target reflects a valuation of 1.05 times the one-year forward tangible book value, a modest discount compared to the peer average valuation of 1.2 times, taking into account Isabella Bank's below-average profitability forecast.

In other recent developments, Isabella Bank announced a second-quarter cash dividend of $0.28 per common share, a decision attributed to the company's strategic initiatives and strong financial performance. The bank has also issued statements about its future performance, cautioning that these projections are subject to risks and uncertainties. For a more detailed discussion of potential risk factors, the company recommends referencing its filings with the Securities and Exchange Commission.

InvestingPro Insights

Isabella Bank Corporation (ISBA) has recently announced a third-quarter cash dividend, underscoring its consistent focus on shareholder returns. This aligns with one of the InvestingPro Tips, which highlights that ISBA has maintained dividend payments for 17 consecutive years, showcasing a track record of reliability for income-focused investors. Additionally, analysts included in the InvestingPro Tips predict the company will be profitable this year, which may provide further confidence to shareholders regarding the sustainability of dividends.

From a data perspective, Isabella Bank Corporation's market capitalization stands at a modest $143.54 million, reflecting its status as a community bank with a more localized market presence. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 9.71, with a very similar adjusted P/E ratio of 9.68 for the last twelve months as of Q2 2024. These figures suggest that the stock is reasonably valued in the context of its earnings. Moreover, the dividend yield as of the most recent data is 5.81%, which is notably attractive for dividend investors, especially considering the company's history of consistent dividend payments.

In terms of performance, the company's stock price is at 83.83% of its 52-week high, indicating that it has retained a majority of its value over the past year. This could be of interest to investors looking for stable investments with less volatility. For those seeking more detailed analysis and additional InvestingPro Tips, which include insights on the company's financial health and future outlook, they can explore further on InvestingPro. There are a total of 5 additional tips available for ISBA on the platform, offering a more comprehensive understanding of the company's performance and potential investment value.

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