Isabella Bank Corporation · NASDAQ:ISBA

Isabella Bank — Investor Presentation (February 2016)

24 slides from Isabella Bank's investor presentation, Feb 4, 2016

  1. Slide 1: Isabella Bank Corporation

    ISABELLA BANK CORPORATION _/

  2. Slide 2: Executive Leadership Team

    Executive Leadership Team Jae Evans, Isabella Bank Corporation, Chief Executive Officer Jae A. Evans was appointed a director of Isabella Bank Corporation and the Bank and elected Chief Executive Officer of Isabella Bank Corporation effective January 1, 2014. Mr. Evans has been employed by the Corpo

  3. Slide 3: Board of Directors

    David J. Maness - Chairman Joseph LaFramboise President Sales and Marketing Executive (retired) Maness Petroleum Corporation Ford Motor Company Jae A. Evans Thomas L. Kleinhardt Chief Executive Officer President Isabella Bank Corporation McGuire Chevrolet Dennis P. Angner W. Joseph Manifold, CPA Pre

  4. Slide 4: About Us

    Isabella Bank was founded in 1903 29 banking offices throughout seven Mid-Michigan counties Deposit, loan, investment, trust, and electronic banking services Five- star rating from Bauer Financial, Inc. 33 consecutive years of increased cash dividends About Us

  5. Slide 5: About Us: Employees

    About Us 397 Employees 175 Employees (44%) have been with us more than 10 years 72 Employees (18%) have been with us more than 20 years Less than 14% Employee Turnover (Industry Average 17%) Top Workplaces by the Detroit Free Press, Three Consecutive Years Source: www.compensationforce.com/2014/02/2

  6. Slide 6: Shareholder Statistics

    Shareholder Statistics 3,044 Shareholders and 7,795,149 Outstanding Shares 71.3% of Employees are Shareholders Paid Cash Dividends Every Year Since 1948 Source: Shareholder Services, As of 12/31/15

  7. Slide 7: Our Market Area

    Our Market Area MECOSTA County a . MONTCALM GRATIOT © SAGINAW Counly County County www.isabellabank.com

  8. Slide 8: Local Economic Drivers

    Retail Health Care Agriculture Education Manufacturing Local Economic Drivers

  9. Slide 9: Our Vision

    Our Vision is to be recognized as a leading independent community bank. Our Vision

  10. Slide 10: Strategic Objectives

    Strategic Objectives Provide high quality, personalized service to our customers Enhance shareholder value through strategic growth and profitability Promote economic growth, business development, and community service Evaluate expansion strategies to contribute to growth and financial success Enhan

  11. Slide 11: Market Share

    Market Share Rank Banks in Market Percent Market Share Clare County 2 4 33.79% Gratiot County 3 5 19.38% Isabella County 1 6 62.21% Mecosta County 1 7 29.69% Midland County 4 8 3.25% Montcalm County 2 8 18.22% Saginaw County 9 15 3.88% Source: FDIC – Isabella Bank Deposit Market Share As of June 30,

  12. Slide 12: Loan Quality Indicators

    Loan Quality Indicators Source: Internal 9/30/15 12/31/14 Loans past due and nonaccrual to gross loans 0.46% 1.09% Nonperforming loans to gross loans 0.10% 0.50% Nonperforming assets to total assets 0.09% 0.33% ALLL to gross loans 0.98% 1.21%

  13. Slide 13: Loan Quality History

    Loan Quality History Source: Internal (0.20) - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 Net Charge-Offs to Total Loans (%) Non Performing Loans to Total Loans (%) ALLL to Gross Loans (%)

  14. Slide 14: Balance Sheet Highlights

    9/30/15 12/31/14 12/31/13 Total Assets $1,619,250 $1,549,543 $1,493,137 Total Assets Under Management $2,300,642 $2,222,060 $2,138,222 Total Investments $628,612 $567,534 $512,062 Gross Loans $833,347 $833,582 $808,037 Source: Internal Balance Sheet Highlights (dollars in thousands)

  15. Slide 15: Investment Portfolio Highlights

    Investment Portfolio Highlights Source: Internal (dollars in thousands)

  16. Slide 16: Loan Portfolio Highlights

    Loan Portfolio Highlights Source: Internal (dollars in thousands)

  17. Slide 17: Deposit Portfolio Highlights

    Deposit Portfolio Highlights Source: Internal (dollars in thousands)

  18. Slide 18: Performance Ratios

    9/30/15 12/31/14 12/31/13 Return On Average Total Assets 1.00% 0.90% 0.86% Return On Average Shareholders’ Equity 8.80% 8.60% 7.67% Return On Average Tangible Shareholders' Equity 12.06% 10.80% 10.71% Performance Ratios Source: Internal

  19. Slide 19: Capital Ratio Highlights

    9/30/15 12/31/14 12/31/13 Shareholder Equity to Assets 11.30% 11.27% 10.76% Tier 1 Leverage 8.54% 8.59% 8.46% Total Risk-Based Capital 14.19% 15.18% 14.92% Capital Ratio Highlights Source: Internal

  20. Slide 20: Earnings Per Share

    Earnings Per Share Source: Internal $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 2010 2011 2012 2013 2014 09/30/2015

  21. Slide 21: Compounded Growth Rate

    25 Year Compounded Growth Rate Source: Internal Net Income 7.10% Ending Assets 7.98% Earnings Per Share 5.77% Ending Book Value 5.72% Per Share Cash Dividend 8.00% (Through December 31, 2014)

  22. Slide 22: Total Return Performance

    Total Return Performance Source: SNL Financial 0 50 100 150 200 250 2010 2011 2012 2013 2014 2015 Isabella Bank Corporation NASDAQ Composite NASDAQ Bank (Through December 31, 2015) The graph assumes the value of an investment in the Corporation’s common stock and each index was $100 at December 31,

  23. Slide 23: Corporate Market Maker

    Corporate Market Maker Boenning & Scattergood Strong Knowledge of Community Bank Stocks 100 Year Reputation Built on Success

  24. Slide 24: Thank You

    Thank You This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of Isabella Bank Corporation’s management and are subject to significant risks and uncertaint

Isabella Bank — Investor Presentation (February 2016) on 6ix