Isabella Bank's chief credit officer Catlin purchases shares worth $499

MT. PLEASANT, MI—Jon D. Catlin, Chief Credit Officer of Isabella Bank Corp (OTC:ISBA), reported a recent acquisition of company shares, according to a filing submitted to the Securities and Exchange Commission. On November 1, Catlin purchased 24.3072 shares of Isabella Bank's common stock at a price of $20.57 per share, totaling approximately $499.

Following this transaction, Catlin's total direct ownership in the company stands at 1,020.8599 shares. This transaction reflects Catlin's continued investment in the Michigan-based bank, which operates within the state commercial banking sector.

In other recent news, Isabella Bank Corp has been the subject of several noteworthy developments. Piper Sandler, following an analysis of the bank's third-quarter performance, increased the price target on Isabella Bank's shares to $24.00 from $22.00, retaining a Neutral rating. The firm's revised outlook is due to a 3% pre-provision net revenue (PPNR) upside, driven by net interest margin (NIM) expansion, and strong organic balance sheet growth.

In addition to the raised price target, Piper Sandler also increased its earnings per share (EPS) estimates for the fourth quarter of 2024 and the full year 2025 to $0.49 and $2.40, respectively. The firm has also projected an EPS of $2.70 for the year 2026. These adjustments are underpinned by higher net interest income (NII) assumptions.

Isabella Bank also faces a potential loss of approximately $1.6 million due to negative balances in deposit accounts belonging to a single customer. The bank is currently assessing the potential credit losses related to this issue. Despite this, Piper Sandler maintained a Neutral rating on the bank's shares.

The bank further announced a third-quarter cash dividend of $0.28 per common share, reflecting its commitment to enhancing shareholder value. This move was well-received by Piper Sandler, which highlighted the bank's attractive dividend yield of 5.6%, surpassing the peer average of 3.2%. These recent developments provide insights into Isabella Bank's financial performance and future expectations as per analysts' projections.

InvestingPro Insights

Jon D. Catlin's recent purchase of Isabella Bank Corp (OTC:ISBA) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock is currently trading near its 52-week high, with a price at 97.3% of its peak, suggesting investor confidence. This bullish sentiment is further supported by the stock's impressive 6-month total return of 22.17%.

Despite a 10.07% decline in revenue over the last twelve months, Isabella Bank Corp maintains a strong dividend yield of 5.17%. An InvestingPro Tip notes that the company has maintained dividend payments for 17 consecutive years, which may be particularly appealing to income-focused investors like Catlin.

The bank's financial health appears solid, with a P/E ratio of 11.76, indicating a reasonable valuation compared to earnings. Additionally, the company's price-to-book ratio of 0.76 suggests that the stock may be undervalued relative to its assets.

For investors seeking a deeper understanding of Isabella Bank Corp's prospects, InvestingPro offers 6 additional tips that could provide valuable insights into the company's financial position and future outlook. These tips, along with real-time metrics, can help investors make more informed decisions about their investments in the banking sector.

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