Jerome E. Schwind, the President and CEO of Isabella Bank Corp (OTC:ISBA), recently acquired additional shares of the company. According to a recent SEC filing, Schwind purchased 19.4458 shares of common stock on November 1, 2024, at a price of $20.57 per share, amounting to a total transaction value of approximately $400. Following this acquisition, Schwind’s total direct ownership stands at 28,267.4058 shares. This transaction reflects Schwind’s ongoing investment in the company he leads.
In other recent news, Isabella Bank Corp has shown strong third-quarter performance, with a 3% pre-provision net revenue (PPNR) upside, driven by net interest margin (NIM) expansion. This positive trend is expected to persist, according to Piper Sandler. The firm has raised its earnings per share (EPS) estimates for the fourth quarter of 2024 and the full year 2025 to $0.49 and $2.40, respectively, and established an EPS estimate of $2.70 for the year 2026.
Isabella Bank also declared a third-quarter cash dividend of $0.28 per common share, reflecting its commitment to enhancing shareholder value. However, the bank faces a potential loss of approximately $1.6 million due to negative balances in deposit accounts associated with a single customer, with total exposure to this customer amounting to $4.0 million.
Piper Sandler has maintained a Neutral rating on the bank’s shares, raising the price target to $24.00 from $22.00. The firm’s decision follows an analysis of the bank’s recent developments, which include strong organic balance sheet growth and an attractive dividend yield. These are the latest updates from Isabella Bank Corp.
InvestingPro Insights
Jerome E. Schwind’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 momentum is further supported by the stock’s impressive 6-month total return of 22.17%.
Despite a challenging environment where revenue growth has declined by 10.07% 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 Schwind.
The company’s valuation metrics also present an interesting picture. With a P/E ratio of 11.76 and a price-to-book ratio of 0.76, ISBA appears to be trading at relatively attractive levels compared to historical norms. This could indicate that Schwind sees potential value in the stock at current prices.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 6 more tips available, providing a deeper understanding of Isabella Bank Corp’s financial health and market position.
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