Isabella Bank Corp.
Annual Report 2012

Plain-text annual report

A N N U A L R E P O R T 2012 t o c o m m u n i t y b a n k i n g . w e l c o m e Annual Shareholder Meeting May 7, 2013 at 5:00 p.m. Comfort Inn & Conference Center ▪ 2424 S. Mission St., Mt. Pleasant, MI 48858 Mission Statement To create an operating environment that will provide shareholders with sustained growth in their investment while maintaining our independence and subsidiaries' autonomy. Equal Employment Opportunity The equal employment opportunity clauses in Section 202 of the Executive Order 11246, as amended; 38 USC 4212, Vietnam Era Veterans Readjustment Act of 1974; Section 503 of the Rehabilitation Act of 1973, as amended; relative to equal employment opportunity and implementing rules and regulations of the Secretary of Labor are adhered to and supported by Isabella Bank Corporation and its subsidiaries. Richard J. Barz, Chief Executive Officer & David J. Maness, Chairman w e l c o m e t o c o m m u n i t y b a n k i n g . o u r I n 2 0 1 2 , i n a s s e t s u n d e r p e r t o t a l a n d h a v e a c c o m p l c u s t o m e r s , w i d a y , t h o u t c o m p a n y a c h i e v e d s e v e r a l m i l e s t o n e s - , n e t m a n a g e m e n t i n c o m e o f $ 0 . 8 0 . s h a r e c a s h d i v i d e n d s o f i s t y o u . i s h e d a n d e m p l o y e e s t y b a n k i n g s h a r e h o l d e r s , a d o u b t c o m m u n i t h i s w i t h o u t I , l l i o n l $ 2 . 0 5 b i $ 1 2 . 2 1 m i i o n , l W e c o u l d n o t o u r o f t p r o v e e v e r y . i v e a n d w e l t h e s u p p o r t h a t i s a l l StrESSing thE impOrtancE Of indEpEndEncE The challenging economy and the intense regulatory environment have both taken their toll on the financial industry. Just five years ago, there were 8,560 FDIC insured banks in the United States, and today, this number has fallen by 16% to 7,181. This statistic certainly paints a picture of the consolidation happening in our industry. On a positive note, it is gratifying to see that we have not only made it through these tough times, but we have been profitable and delivered a consistent return to our shareholders. Despite this consolidation trend, our vision is to remain independent. Our organization feels so strongly about independence that it is written directly into our strategic plan and shared with all employees. We recognize that in order for us to remain independent, we need to continue to build customer relationships, grow in new and existing markets, and deliver consistent returns to our shareholders. pOSitiOning OurSElvES fOr thE futurE Our strategic plan is a vital ingredient to the future success and sustainability of our organization. It outlines our core values and lays the groundwork for where we plan to go in the future. By sharing this vision with all employees, they become active participants in helping us achieve our goals. important component of An our strategic plan is employee development. Over the past several years we have strategically focused resources to this area and we are now recognized not only statewide, but nationally, for the success we have achieved. Investing in our greatest asset, our employees, directly impacts the quality of service we provide to our customers and the financial growth and profitability of our company. Banking with lOcal dEciSiOn makErS When it comes to selecting a bank, customers have many options. In order to stand out from the competition, we need to offer something different and better. Our competitive advantage is our local decision making. This cannot be said for all banks where, in some cases, out-of-state bankers make the decisions. We believe that by empowering our employees, we are able to better serve the needs of our customers within their communities. This has paid-off for us over and over again as we hear positive remarks from our customers and experience growth which surpasses most of our competitors. "Investing in our greatest asset, our employees, directly impacts the quality of service we provide to our customers and the financial growth and profitability of our company." lEvEraging Organic grOwth and Expanding intO nEw markEtS In the June 2012 FDIC reports, we were the deposit leader in 12 of our 19 communities. We ranked second in three other markets. Last year, our overall market deposits grew by 6.21% as a result of our organic growth within our current locations and new market expansion initiatives. Within our own markets, we have tremendous opportunities to attract new customers and to build deeper relationships with those already with us. We want our customers to think of us beyond their checking account needs and to be the first bank that comes to mind when they remodel their G r a n d O p e n i n g w i t h a T w i s t i n F r e e l a n d . ribbon-cutting ceremonies and special rates are standard practices for grand opening celebrations. in October, when we opened our freeland Office, we decided to add a twist to the festivities. we selected four different local non-profit organizations and asked them to be part of our “community counts” project. then we invited the freeland community to cast their vote for one of these organizations. the group with the most votes (Barton woods) received $1,500 and the other three organizations (freeland cognitive learning center, can council and Junior achievement) took home $750 each. home, start a business, or plan for retirement. We are able to measure our progress by monitoring the number of households we serve and the number of products and services each customer has with us. In 2012, we are proud to say we grew in both of these areas. Our expansions into new markets have also proven successful. As of December 31, 2012, our Midland office had $23.62 million and Freeland had $2.49 million in deposits. We are very appreciative to those customers who have given the new bank in town the opportunity to serve their financial needs. dElivEring a rEturn tO Our SharEhOldErS In 2012, we celebrated 31 years of consecutive dividend growth. Given the challenges facing our industry, few banks can say the same thing. The good news is that our industry, as a whole, is getting stronger. A recent report from the FDIC indicated that sixty percent of all financial institutions showed an increase in their net income during the fourth quarter of 2012 compared to the same period in 2011. On behalf of our Board and employees, thank you for your support in 2012. We look forward to seeing you at our annual shareholder meeting on May 7, 2013 at the Comfort Inn and Conference Center in Mt. Pleasant. R e c o g n i z i n g o f O u r E m p l o y e e s t h e C o n t r i b u t i o n s We would like to take this opportunity to recognize our officer promotions in December. Mrs. Deb Campbell (Shareholder Services) and Mr. Aaron Wirsing (Accounting) were promoted to Vice Presidents. Mrs. Deb Markley (Breckenridge), Mrs. Connie Katt (Retail Lending), and Mr. Miles Coffland (Investment & Trust Services) were promoted to Assistant Vice Presidents. Mr. Bob Byram (Commercial Lending) and Mr. Pat Netzley (Commercial Lending) were promoted to Business Development Officers and Mrs. Nora Colthorp (Hemlock) was promoted to Branch Officer. In addition, Mr. Jerome Schwind has moved from Big Rapids to Mt. Pleasant and taken on the role of Chief Integration Officer. We also welcomed Mr. Keith Kenney to the Bank to serve as President of our Mecosta Division. We would also like to recognize Mr. Steven Pung who was promoted to President of Isabella Bank last July. Steve has played a very important role in the growth and development of our Bank over the past 34 years. His experience and wisdom will guide the Bank into the future. Our congratulations to Tom Wallace, President of Isabella Bank’s Northern Division, and Jeff Smith, Vice President of Commercial Lending, on their recent graduation from the Graduate School of Banking - Madison. Community Counts Dennis P. Angner, President & Chief Financial Officer I n 2 0 1 2 , C o r p o r a t w a s i n c r e a s e o f w h e n c o m p a r e d l a B a n k I s a b e l i n c o m e i o n ’ s n e t a n i o n , l l $ 1 2 . 2 1 m i i o n $ 2 . 0 m i l l t o 2 0 1 1 . This 19.55% increase in net income is primarily attributed to the strategic restructuring of certain investment securities/borrowings in the first quarter of 2012 and the significant increase in the gain on the sale of residential mortgages to the secondary market. Our loan quality for the Corporation continues to be solid. As of December 31, 2012, the percentage of the total loans classified as “non-performing” was 1.00%. 2 0 1 2 F i n a n c i a l Safe, Growing and Profitable H i g h l i g h t s ▪ Record net income in 2012 of $12.21 million, a 19.55% increase over 2011 ▪ Assets at year end 2012 of $1.43 billion, a 6.93% increase over 2011 ▪ Total assets under management at year end was $2.05 billion, a 5.96% increase over 2011. This includes loans sold and serviced and assets managed by our Investment and Trust Services Department. ▪ Record Earnings Per Share of $1.61 ▪ Cash Dividends of $0.80 per share, a 5.26% increase over 2011 The graph below shows the Corporation's percentage of non-performing loans compared to our peer group over the past four years. non-performing loans 3.5 3 2.5 2 1.5 1 0.5 ) e g a t n e c r e p ( 2009 2010 2011 2012 isabella Bank corporation peer group The Consumer Financial Protection Bureau (CFPB) was created under the Dodd-Frank Act. In 2013, the bureau issued final regulations which impacted both the origination and subsequent servicing of mortgages. The new regulations were drafted to protect consumers from harmful mortgage products, foreclosure practices, and other unethical practices. However, these rules may also unintentionally restrict or even eliminate services that customers have used for years. As a result, banks may have less flexibility when working with unique customer circumstances and have higher costs associated with providing mortgage loans. Communication of these changes by banks to their customers and communities will be key during this transition. The Federal Reserve has proposed new capital requirements which, if adopted, would require banks to hold more capital as a percentage of assets. It would also dramatically increase the amount of capital banks would need to hold for residential real estate loans under the proposed new risk based capital requirements. We are fortunate to have maintained a solid base of capital and are hopeful that these proposed rules will have a minimal effect on us in the future. Over the past five years, the Federal Reserve has reduced the short-term borrowing rate to near zero and kept long- term interest rates at historically low levels. For consumers, this policy reduces the interest rate paid by borrowers at the expense of savers. For financial institutions, it has placed additional pressure on interest margins. This dynamic is having a negative effect on the Corporation’s interest income. The Corporation has been inundated with loan requests from commercial and residential mortgage customers to lower their interest rates over the past 18 months. Fifteen year mortgage rates are around 2.50% and a six year car loan is 2.94%. It is challenging to maintain a 4.0% margin when lending at these rates. While the Corporation's assets grew by $92.7 million last year, we anticipate our 2013 net interest income to increase by less than 1.0%. As a result of the decline in interest margins, we anticipate that 2013 earnings might decline slightly from the tremendous 19.55% increase in 2012. We, like all banks, continue to face new regulations and shrinking margins but I am confident our community bank is prepared to meet these challenges. Project^ Paper^ Our schools work very hard to stretch their dollars. this past fall, we had a wonderful opportunity to help our schools while promoting our new facebook page at the same time. we called the contest project paper. for every “like” our page received, we donated a ream of paper to a local school. as a result, we delivered 2,400 reams (1.2 million sheets) of paper to schools in our area. P e e r C o m p a r G r o u p i s o n Regularly sharing our peer group information is important as it gives insight into our financial strength and compares us to other bank holding companies across the country. Isabella Bank Corporation has consistently performed well in comparison to our peers. It is also important to note that the financial performance of the peer group has rebounded from 2008 which is good for the growth of the American economy. We subscribe to reports that compare the financial performance of Isabella Bank Corporation to other bank holding companies in the United States who are similar in size ($1.0 billion-$3.0 billion in assets). In all, there are 351 bank holding companies in our peer group. There are several key ratios that we use to monitor the strength and soundness of Isabella Bank Corporation: (1) Return on Assets; (2) Problem Loans; (3) Risk Based Capital to Risk Weighted Assets; and (4) Problem Loans to Allowance for Bad Debt. return on assets (rOa) isabella Bank corporation 0.88% peer group 0.80% This measures net income by the average asset size of the bank holding company. Our ROA exceeded the peer group by 0.08%. problem loans (nonperforming) isabella Bank corporation 1.00% peer group 2.19% This measures the percent of loans that are over 90 days past due and still accruing, or placed in non-accrual because collection is doubtful. Our total problem loans as a percentage of loans is 1.00% compared to 2.19% for our peer group. The peer group average is over two times higher than Isabella Bank Corporation. risk Based capital to risk weighted assets isabella Bank corporation 14.48% peer group 15.41% This measures the amount of capital held against risk based assets. The Corporation's ratio of 14.48% is strong when compared to the required ratio of 8.00% necessary to be considered adequately capitalized under the Federal Reserve Board's risk based capital rules. The Corporation continues to be profitable, well capitalized and has funds available to meet our customers' borrowing needs. allowance for Bad debt to problem loans (nonperforming) isabella Bank corporation 154.39% peer group 121.08% Allowance for Bad Debt to Problem Loans measures the amount of reserves needed for probable loan losses on non-performing loans. We have $1.54 in reserves for every $1.00 of nonperforming loans, which means we have more in reserves than we have problem loans. with a total of 2,400 reams of paper, isabella Bank donated enough paper to surpass the vertical clearance on the mackinaw Bridge! C e l e b r a t R i c h i n P h i i n g a C u l t u r e l a n t h r o p y . whether it is during or after work, our employees do a wonderful job serving our local communities. in fact, they feel so strongly about community involvement, that they created an internal website last year to help increase awareness surrounding community organizations and volunteer opportunities. together, our employees volunteered over 4,300 hours with more than 150 different in community organizations addition, they reached more than 8,400 children, teens, adults and senior citizens with their financial literacy efforts. these numbers speak volumes for our employees and their focus on their communities. last year. the " Culture is what defines your organization, the foundation base, from which you build. It is the fabric of your organization and each employee represents the threads that weave the fabric."  - Rick Barz (photos left to right) dave king, isabella Bank Breckenridge division Board member (left) and nora colthorp, isabella Bank hemlock Branch Officer (right) presented dan keane, hemlock farmers market (center) with a donation to be used for the new hemlock farmers market Barn. isabella Bank made a donation to the college of Business at central michigan university in mt. pleasant to create the isabella Bank institute for Entrepreneurship. pictured (left to right) are Jae Evans, isabella Bank chief Operations Officer, rick Barz, isabella Bank corporation chief Executive Officer, Steve pung, isabella Bank president and dr. chuck crespy, dean of the college of Business administration. vice president greg mapes serves members of the community at the 2012 Shareholder Barbeque at the comfort inn in mt. pleasant. isabella Bank employees volunteer their time organizing bidder information, auction items and checking out individuals to help raise funds for the clare Sports Boosters. 2 0 1 2 C o m m u n i t y G i v i n g cOmmunity SpOnSOrShip & EvEntS festivals, Expos & county fairs customer appreciation days Service Organization Support cOmmunity SpOnSOrShip & EvEntS 36% EducatiOn 38% BaSic nEEdS 13% EcOnOmic dEvElOpmEnt 13% EducatiOn financial literacy Scholarships for high School Seniors Building campaigns after School programs athletic Boosters BaSic nEEdS food Shelter healthcare Senior Services Emergency relief EcOnOmic dEvElOpmEnt community projects leadership development Entrepreneurship programs (photos left to right) assistant vice president Sue hansen and consumer loan processor kim wilson serve customers refreshments during their annual customer appreciation day in greenville. isabella Bank employees mary welsh and nancy Stabenow volunteer time organizing bidder information, auction items and checking out individuals to help raise funds for the goodrow foundation in mt. pleasant. their mecosta division president keith kenney and assistant vice president Josh Eling present a donation to cindy havens, director of the mecosta-Osceola red cross, to help aid mecosta area flood victims. isabella Bank employees donated monetary funds, diapers, laundry detergent and other household cleaning supplies to the department of human Services (dhS) during the holiday season. pictured with donations are isabella Bank employee kerri hansen and dhS representative andi pelligrini. F i n a n c i a l H i g h l i g h t s income Statement data total interest income net interest income provision for loans losses net income Balance Sheet data End of year assets daily average loans daily average assets daily average deposits daily average Equity per Share data Basic diluted cash dividends market value (at year end) tangible Book value (at year end) financial ratios Shareholders' Equity to assets (at year end) return on average Equity return on average tangible Equity cash dividend payout to net income return on average assets 2012 $ 56,401 $ 42,978 $ 2,300 $ 12,206 $ 1,430,639 $ 754,304 $ 1,381,083 $ 984,927 $ 160,682 $ 1.61 $ 1.56 $ 0.80 $ 21.75 $ 14.72 11.50% 7.60% 11.41% 49.76% 0.88% 2011 $ 57,905 $ 41,702 $ 3,826 $ 10,210 $ 1,337,925 $ 743,441 $ 1,287,195 $ 927,186 $ 151,379 $ 1.35 $ 1.31 $ 0.76 $ 23.70 $ 13.90 11.57% 6.74% 10.30% 56.51% 0.79% 2010 $ 57,217 $ 40,013 $ 4,857 $ 9,045 $ 1,225,810 $ 725,534 $ 1,182,930 $ 840,392 $ 145,304 $ 1.20 $ 1.17 $ 0.72 $ 17.30 $ 13.22 11.84% 6.22% 9.51% 59.93% 0.76% (Dollars in thousands except per share data) 2009 $ 58,105 $ 38,266 $ 6,093 $ 7,800 $ 1,143,944 $ 725,299 $ 1,127,634 $ 786,714 $ 137,910 $ 1.04 $ 1.01 $ 0.70 $ 18.95 $ 12.67 12.31% 5.66% 8.53% 67.38% 0.69% 2008 $ 61,385 $ 35,779 $ 9,500 $ 4,101 $ 1,139,263 $ 717,040 $ 1,113,102 $ 817,041 $ 142,597 $ 0.55 $ 0.53 $ 0.65 $ 25.50 $ 12.27 11.80% 2.88% 4.41% 118.82% 0.37% 1,400 1,200 1,000 800 600 400 200 ) s n o i l l i m - s r a l l o d ( 15,000 13,000 11,000 9,000 7,000 5,000 3,000 ) s d n a s u o h t - s r a l l o d ( total assets dividends per Share 0.8 0.7 0.6 0.5 0.4 0.3 0.2 ) s r a l l o d ( 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 net income Ending Stock price ) s r a l l o d ( 40 35 30 25 20 15 10 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Board of Directors & Senior Officers David J. Maness Richard J. Barz Dennis P. Angner Jeffrey J. Barnes, MD Sandra L. Caul G. Charles Hubscher Joseph LaFramboise Wilson C. Lauer Thomas L. Kleinhardt W. Joseph Manifold, CPA W. Michael McGuire Sarah R. Opperman david J. manESS - chairman President, Maness Petroleum Corporation Sandra l. caul State Representative (retired) thOmaS l. klEinhardt President, McGuire Chevrolet richard J. BarZ Chief Executive Officer, Isabella Bank Corporation dEnniS p. angnEr President and Chief Financial Officer, Isabella Bank Corporation JEffrEy J. BarnES, md Physician and Partner, Lansing Ophthalmology, PC g. charlES huBSchEr President, Hubscher and Son, Inc. JOSEph laframBOiSE Sales and Marketing Executive, Ford Motor Company (retired) wilSOn c. lauEr Principal, Lauer Farms LLC w. JOSEph manifOld, cpa Chief Financial Officer, Federal Broach & Machine Co. w. michaEl mcguirE Director of the Office of the Corporate Secretary, The Dow Chemical Company Sarah r. OppErman Principal, Opperman Consulting LLC isabella Bank corporation Officers RICHARD J. BARZ Chief Executive Officer DENNIS P. ANGNER President and Chief Financial Officer BARBARA A. PLACE, CPA Senior Vice President PEGGY L. WHEELER Senior Vice President DEBRA A. CAMPBELL Vice President CYNTHIA J. DIEHM Vice President GREGORY S. MAPES Vice President PATRICIA A. PLAXTON Vice President AMY C. VOGEL Vice President AARON D. WIRSING Vice President isabella Bank Officers STEVEN D. PUNG President JAE A. EVANS Chief Operations Officer JEROME E. SCHWIND Chief Integration Officer DAVID J. REETZ Chief Lending Officer BARBARA B. DIEHM Senior Vice President DANIEL E. EVERSOLE Senior Vice President JAMES L. BINDER Vice President JULIE F. BOLT Vice President RANDY J. DICKINSON, CPA Vice President DAVID D. GILLESPIE Vice President MICHAEL K. HUENEMANN Vice President ROBERT K. MADSEN Vice President ERIKA M. ROSS Vice President PAUL C. SIERS Vice President CARRIE S. SMITH Vice President JEFFREY W. SMITH Vice President JONATHAN J. WAINWRIGHT Vice President PEGGY L. WHEELER Vice President LEO R. WICKERT Vice President Breckenridge division Board of directors DALE D. WEBURG - Chairman DENNIS P. ANGNER RICHARD J. BARZ DAVID J. KING WILSON C. LAUER TIMOTHY M. MILLER KIRK L. SMITH GREGORY V. VARNER Breckenridge division Officers TIMOTHY M. MILLER President BRIAN K. GOWARD Vice President BARBARA K. McKENZIE Vice President farwell division Board of directors HERBERT R. MILLER - Chairman DENNIS P. ANGNER RICHARD J. BARZ THOMAS E. KEDROWSKI THOMAS L. KLEINHARDT W. MICHAEL McGUIRE STEVEN D. PUNG LARRY R. SCHOFIELD THOMAS J. WALLACE farwell division Officers THOMAS J. WALLACE President MELODY M. DARNELL Vice President TIMOTHY M. WILSON Division Senior Lender greenville division Board of directors JAMES M. MULLENDORE, Jr. - Chairman DENNIS P. ANGNER RICHARD J. BARZ KIRKWOOD E. FABER, DDS DEBRA JORGENSEN-HUCH ALEXANDER R. KEMP GREGORY D. MILLARD RICHARD K. RUSSO BRIAN R. SACKETT greenville division Officers RICHARD K. RUSSO President KATHY J. KORSON Vice President DAVID W. SEPPALA Vice President mecosta division Board of directors RICHARD J. BARZ Dr. RALPH P. CREW KEVIN J. DEFEVER LAWRENCE E. EMIG KEITH E. KENNEY JOSEPH LaFRAMBOISE STEVEN D. PUNG JEROME E. SCHWIND mecosta division Officers KEITH E. KENNEY President financial group information Services Board of directors DENNIS P. ANGNER RICHARD J. BARZ JAE A. EVANS THOMAS L. KLEINHARDT JOSEPH LaFRAMBOISE W. MICHAEL McGUIRE DAVID J. MANESS TIMOTHY M. MILLER STEVEN D. PUNG JONATHAN J. WAINWRIGHT financial group information Services Officers JONATHAN J. WAINWRIGHT President JULIE A. HUBER Vice President Board of Directors and Senior Officers as of March 2013 Recognizing our Board Retirees and New Directors we would like to recognize two retirements from our Board in 2012: mr. James c. fabiano and mr. dale d. weburg. On behalf of the isabella Bank corporation and isabella Bank Boards, we would like to express our sincere appreciation to these individuals for their dedication and service to our Bank. Both mr. fabiano's and mr. weburg’s strong leadership qualities, astute business sense and passion for our local communities have been tremendous assets to our Bank. we wish them the very best in their retirement as they devote more time to their own businesses. mr. fabiano had been a director of isabella Bank since 1979 and the corporation since 1988. he served as the corporation’s chairman from 2004 to 2010. most recently, he served on the loan, nominating and corporate governance and compensation and human resource committees. James c. fabiano mr. weburg had served as a director of the Breckenridge division of the Bank since 1987 and the Bank and corporation Boards since 2000. most recently, he served as chairman of our technology subsidiary, financial group information Services as well as served on the Board’s compensation and human resource committee. dale d. weburg in 2012, we welcomed two highly respected members of our communities to our Board, ms. Sarah Opperman and mr. wilson lauer. ms. Opperman owns her own company, which provides public affairs counsel for corporate clients. previously, she was employed by the dow chemical company for 28 years, where she held leadership roles in public and government affairs. a life-long resident of mid- michigan, ms. Opperman is active in the community, serving on the central michigan university Board of trustees and cmu research corporation Board of directors. She also is a member of the midmichigan health corporate Board, the midland united way and first united methodist church. She and her husband, dan, reside in midland. mr. lauer has served as a director for the isabella Bank Breckenridge division Board since 1997 and he is the owner of lauer farms llc, a 2,500 acre cash crop business. Over the years, mr. lauer has served several different community organizations including the ithaca School district Board, the gratiot Economic development Board, and farm Bureau’s county and State policy development committees. he is currently on the board of directors for resurrection life church and victory christian Outreach. he and his wife, connie, reside in ithaca. Sarah r. Opperman wilson c. lauer Isabella Bank Employee Retirements kEn hOwEll - 40 years vice president, consumer loans Breckenridge pat Oman - 29 years assistant vice president, loan Officer farwell kay Blackman - 23 years new accounts representative Breckenridge dianE cOurtEr - 21 years customer Service representative, Bookkeeping mt. pleasant pam cOvEy - 15 years customer Service representative & new accounts mt. pleasant pat giBSOn - 9 years teller Big rapids SuE StrahOta - 4 years loan Officer clare I n v e s t O u r i n g i n F u t u r e Our employees and directors have a vested interest in the success of our organization. as of december 31, 2012, our employees, directors and their families owned approximately 15% of our outstanding shares.  Shareholder Services For Information, Contact Debra Campbell (989) 779-6237 │ 401 N. Main St., Mt. Pleasant, MI 48558 or visit www.isabellabank.com ► Investors Stock Information Isabella Bank Corporation common stock is traded in the over the counter market. The common stock is quoted on the OTCQB tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA”. Other trades in the common stock occur in privately negotiated transactions from time to time of which the Corporation may have little or no information. Current stock price and availability can be obtained by contacting a licensed broker or through the Investment and Trust Services Department at Isabella Bank. To learn more about Isabella Bank Corporation, visit the Investors tab at www.isabellabank.com or contact Shareholder Services. Investors Tab - www.isabellabank.com Stock Price Information Email Alerts on Closing Stock Price Direct Stock Repurchase Plan Dividend Reinvestment Current News Isabella Bank Corporation │ 401 N. Main Street │ Mt. Pleasant, MI 48858 

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