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Isabella Bank Corporation

isba · NASDAQ Financial Services
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Employees 368
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FY2012 Annual Report · Isabella Bank Corporation
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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 .

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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%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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total assets

dividends per Share

0.8

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0.4

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)
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(

2003

2004

2005

2006

2007

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2010

2011

2012

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2006

2007

2008

2009

2010

2011

2012

net income

Ending Stock price

)
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a

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(

40

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30

25

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2003

2004

2005

2006

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2012

2003

2004

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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