Isabella Bank Corporation · NASDAQ:ISBA
Isabella Bank — Investor Presentation (2024)
26 slides from Isabella Bank's investor presentation, 2024
Slide 1: The Best Marketplace
‘The Best-Marketplace
Slide 2: Agenda
Agenda • About Us • Financial Data • Objectives & Strategy • Q&A 2
Slide 3: About Us
About Us • Isabella Bank was founded in 1903 • 31 offices throughout eight Mid-Michigan counties • Full service banking, including Wealth Management • Five-star rating from Bauer Financial, Inc. • Cash dividends for 75 consecutive years 3
Slide 4: Our Market Area
Our Market Area 4 So MECOSTA E MIDLAND Traverse ‘OUNTY couNTY ery M Big Rapids 0 2 ' e Ld Lt Bay City e Saginaw lt | AL! GRATIOT @ Cony SAGINAW Mt. @ ‘couNTY iz Pleasant] ry e | Saginaw Ithaca Grand | Rapids 7 | Lansing e Detroit YT Vin ISBA The Best Marketplace
Slide 5: Market Deposit Demographics
Market Deposit Demographics Number Of Market Share / Total Banks In The County Population Branches Rank Market CLARE 3 40% / 2 31,028 3 GRATIOT 2 19% / 3 41,354 4 ISABELLA 10 57% / 1 63,935 6 MECOSTA 5 32% / 1 39,574 7 MIDLAND 2 12% / 3 83,297 7 MONTCALM 3 23% / 2 67,614 7 SAGINAW 5 7% / 7 187,846 1
Slide 6: Acquisitions & Expansions
Acquisitions & Expansions 2008 Greenville Community Bank ($114 Million in Assets) 2008 Lake Isabella office was opened 2008 Corporate Office moved to new location 2010 Midland West office was opened 2012 Freeland office was opened 2013 Big Rapids East office was opened 2015 Saginaw office was acquir
Slide 7: Board of Directors
Board of Directors Sarah R. Opperman - Chair Jae A. Evans Vice President (retired) Chief Executive Officer (Retired) The Dow Chemical Company Isabella Bank Jerome E. Schwind Thomas L. Kleinhardt Chief Executive Officer President Isabella Bank McGuire Chevrolet Neil M. McDonnell Richard L. McGuirk Pr
Slide 8: Bank Executive Leadership
Bank Executive Leadership 150+ Years of Combined Experience Jerome Schwind, Chief Executive Officer Mr. Schwind was appointed President and Chief Executive Officer of Isabella Bank Corporation and Chief Executive Officer of Isabella Bank in April 2023, taking over the role on in January 2024. He has
Slide 9: Peggy Wheeler, Chief Operations Officer; Dave Reetz, Chief Lending Officer
Peggy Wheeler, Chief Operations Officer Mrs. Wheeler has over 46 years of banking experience with Isabella Bank, holding various positions including customer service, accounting, Controller, and Senior Vice President of Operations. She serves on the board for the Mt. Pleasant Area Community Foundati
Slide 10: About Us
About Us • 378 employees • 335 (89%) are full time employees • 142 (38%) have been with us more than 10 years • 88 (23%) have been with us more than 20 years • 17% employee turnover in 2023 (Industry Average for 2022 was 28%) Information as of December 31, 2023 10
Slide 11: Shareholder Statistics
Shareholder Statistics • 2,674 Shareholders and 7,485,889 Outstanding Shares • 30% of Employees are Shareholders • Current and retired director ownership 16% • Largest Shareholder owns <6% • Paid Cash Dividends Every Year Since 1948 Information as of December 31, 2023 11
Slide 12: Loan Portfolio
Loan Portfolio 7.4% Gross Loans As of December 31, 2023 Commercial 26.8% Agricultural Commercial Loans Residential Mortgages 58.3% 12.3% Consumer 1.6% 2.4% Real Estate 7.4% Accommodation Services 5.3% Health Care 4.1% Retail Trade 42.6% 3.0% Wholesale Trade Construction 6.4% Manufacturing Education
Slide 13: 2023 At a Glance
2023 At a Glance… • Saginaw State Street branch opened • Bay City loan and wealth office opened • Focus on operational efficiencies • Continued effort on stock buyback program 13
Slide 14: Strength at the Bank
Strength at the Bank • Excess cash and liquidity – $694 million – Total cash and cash equivalents – $34 million – Available lines of credit – $340 million – Unencumbered lendable value of collateral – $320 million • Strong capital ratios – Tier 1 leverage – 8.71% – Tier 1 risk-based capital – 12.48%
Slide 15: ISBA Highlights
ISBA Highlights ($000) % of change since December 31, 2023 December 31, 2022 Assets Under Management $2,948,751 5.00% Total Assets $2,058,968 1.41% Gross Loans $1,349,463 6.75% Investment Securities $528,148 -9.02% Deposits $1,723,695 -1.18% Borrowings $116,136 33.47% Capital $202,402 8.70% Informat
Slide 16: Key Metrics
Key Metrics Information as of December 31, 2023 Loan Growth ($000) Credit Quality Deposit Growth ($000) Borrowed Funds ($000) 16
Slide 17: Isabella Wealth
Isabella Wealth ($000) Information as of December 31, 2023 17
Slide 18: ISBA Earnings Highlights
ISBA Earnings Highlights ($000) except per share data Year Ended Year Ended % Change December 31, 2023 December 31, 2022 Net Interest Income $57,944 $60,481 -4.19% Provision for Credit Losses $629 $483 30.23% Noninterest Income $13,827 $13,666 1.18% Noninterest Expenses $49,310 $46,820 5.32% Net Inc
Slide 19: 10+ Year Earnings Trends
10+ Year Earnings Trends Earnings Per Common Share Dividends Per Common Share $3.20 3.45% $2.80 $2.40 $2.00 CAGR $1.60 $1.20 $0.80 2.84% $0.40 $0.00 (1) 2020 includes a $6.0 million after-tax debt extinguishment charge Information as of December 31, 2023 19
Slide 20: ROAA
ROAA Isabella Bank Corporation Peer Average 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 -0.20 -0.40 Source: S&P Global Market Intelligence Data as of Q4-2023 20
Slide 21: ROAE
ROAE Isabella Bank Corporation Peer Average 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 -2.00 -4.00 Source: S&P Global Market Intelligence Data as of Q4-2023 21
Slide 22: Efficiency Ratio
Efficiency Ratio Isabella Bank Corporation Peer Average 120.00 100.00 80.00 60.00 40.00 20.00 0.00 Source: S&P Global Market Intelligence Data as of Q4-2023 22
Slide 23: Net Interest Margin
Net Interest Margin Isabella Bank Corporation Peer Average 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Source: S&P Global Market Intelligence Data as of Q4-2023 23
Slide 24: Dividend Yield
Dividend Yield Isabella Bank Corporation Peer Average 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Source: S&P Global Market Intelligence Data as of Q4-2023 24
Slide 25: Opportunity to Invest in ISBA
Opportunity to Invest in ISBA • Long History of Growth and Performance • Strategic Initiatives Improving Key Financial Metrics • Strong Credit Performance • Dividend History and Current Yield • Strong Capital & Liquidity Positions • Focused on Building Long Term Shareholder Value 25
Slide 26: Thank You
Thank You Jerome Schwind Chief Executive Officer 989.779.6224 | jschwind@isabellabank.com Neil McDonnell President & Interim Chief Financial Officer 989.779.6382 | nmcdonnell@isabellabank.com This presentation contains forward-looking statements within the meaning of the Private Securities Litigatio