ISABELLA BANK CORP 10-K

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Common Stock and Dividend Information Our authorized common stock consists of 15,000,000 shares, of which 7,997,247 shares are issued and outstanding as of December 31, 2020. As of that date, there were 2,998 shareholders of record. Our common stock is traded in the over-the-counter market. Our common stock is quoted on the OTCQX market tier of the OTC Markets Group Inc.’s ("OTC Markets") electronic quotation system (www.otcmarkets.com) under the symbol “ISBA”. Other trades in our common stock occur in privately negotiated transactions from time to time of which we may have little or no information. We have reviewed the information available as to the range of reported high and low transactions as reported by OTC Markets. The following table sets forth our compilation of that information for the periods indicated. Price information obtained from OTC Markets reflects inter-dealer prices, without retail mark up, mark down, or commissions and may not necessarily represent actual transactions. The following compiled data is provided for information purposes only and should not be viewed as indicative of the actual or market value of our common stock. Number of Common Shares Sale Price Low High 2020 First Quarter 225,103 $ 16.00 $ 24.50 Second Quarter 92,068 15.60 19.50 Third Quarter 158,506 15.75 19.00 Fourth Quarter 342,179 15.73 21.95 817,856 2019 First Quarter 83,313 $ 22.25 $ 24.50 Second Quarter 192,402 22.25 23.75 Third Quarter 138,808 22.01 23.45 Fourth Quarter 224,864 22.25 24.80 639,387 The following table sets forth the cash dividends paid for the quarters indicated: Per Share 2020 2019 First Quarter $ 0.27 $ 0.26 Second Quarter 0.27 0.26 Third Quarter 0.27 0.26 Fourth Quarter 0.27 0.27 Total $ 1.08 $ 1.05 We have adopted and publicly announced a common stock repurchase plan. The plan was last amended on December 23, 2019, to allow for the repurchase of an additional 250,000 shares of common stock after that date. These authorizations do not have expiration dates. As shares are repurchased under this plan, they are retired with the status of authorized, but unissued, shares. 10 Table of Contents The following table provides information for the unaudited three-month period ended December 31, 2020, with respect to our common stock repurchase plan: Common Shares Repurchased Total Number of Common Shares Purchased as Part of Publicly Announced Plan or Program Maximum Number of Common Shares That May Yet Be Purchased Under the Plans or Programs Number Average Price Per Common Share Balance, September 30 160,859 October 1 - 31 2,229 $ 16.15 2,229 158,630 November 1 - 30 19,898 17.59 19,898 138,732 December 1 - 31 35,776 19.45 35,776 102,956 Balance, December 31 57,903 $ 18.69 57,903 102,956 Information concerning securities authorized for issuance under equity compensation plans appears under Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 11 Table of Contents Item 6. Selected Financial Data. Results of Operations ( Dollars in thousands except per share amounts) The following table outlines the results of operations and provides certain key performance measures as of, and for the years ended, December 31: 2020 2019 2018 INCOME STATEMENT DATA Interest income $ 64,172 $ 67,306 $ 63,864 Interest expense 13,825 17,861 15,631 Net interest income 50,347 49,445 48,233 Provision for loan losses 1,665 30 978 Noninterest income 14,423 8,039 10,981 Noninterest expenses 51,233 43,050 42,852 Federal income tax expense 987 1,380 1,363 Net income $ 10,885 $ 13,024 $ 14,021 PER SHARE Basic earnings $ 1.37 $ 1.65 $ 1.78 Diluted earnings $ 1.34 $ 1.61 $ 1.74 Dividends $ 1.08 $ 1.05 $ 1.04 Tangible book value $ 21.29 $ 20.45 $ 18.68 Quoted market value High $ 24.50 $ 24.80 $ 28.25 Low $ 15.60 $ 22.01 $ 22.50 Close (1) $ 19.57 $ 24.31 $ 22.56 Common shares outstanding (1) 7,997,247 7,910,804 7,870,969 PERFORMANCE RATIOS Return on average total assets 0.57 % 0.72 % 0.77 % Return on average shareholders' equity 4.93 % 6.25 % 7.26 % Return on average tangible shareholders' equity 6.34 % 8.17 % 9.74 % Net interest margin yield (FTE) 2.96 % 3.07 % 2.98 % BALANCE SHEET DATA (1) Gross loans $ 1,238,311 $ 1,186,570 $ 1,128,707 AFS securities $ 339,228 $ 429,839 $ 494,834 Total assets $ 1,957,378 $ 1,814,198 $ 1,842,502 Deposits $ 1,566,317 $ 1,313,851 $ 1,292,693 Borrowed funds $ 158,747 $ 275,999 $ 340,299 Shareholders' equity $ 218,588 $ 210,182 $ 195,519 Gross loans to deposits 79.06 % 90.31 % 87.31 % ASSETS UNDER MANAGEMENT (1) Loans sold with servicing retained $ 301,377 $ 259,375 $ 259,481 Assets managed by Isabella Wealth $ 443,967 $ 436,181 $ 447,487 Total assets under management $ 2,702,722 $ 2,509,754 $ 2,549,470 ASSET QUALITY (1) Nonperforming loans to gross loans 0.43 % 0.55 % 0.65 % Nonperforming assets to total assets 0.31 % 0.40 % 0.42 % ALLL to gross loans 0.79 % 0.67 % 0.74 % CAPITAL RATIOS (1) Shareholders' equity to assets 11.17 % 11.59 % 10.64 % Tier 1 leverage 8.37 % 9.01 % 8.72 % Common equity tier 1 capital 12.97 % 12.56 % 12.58 % Tier 1 risk-based capital 12.97 % 12.56 % 12.58 % Total risk-based capital 13.75 % 13.18 % 13.26 % (1) At end of year 12 Table of Contents The following table outlines our interim results of operations and key performance measures as of, and for the unaudited periods ended: Quarter to Date December 31 2020 September 30 2020 June 30 2020 March 31 2020 Total interest income $ 16,402 $ 15,700 $ 15,869 $ 16,201 Total interest expense 2,858 3,203 3,565 4,199 Net interest income 13,544 12,497 12,304 12,002 Provision for loan losses 256 516 105 788 Noninterest income 4,119 4,060 3,246 2,998 Noninterest expenses 18,638 10,950 10,700 10,945 Federal income tax expense (benefit) (508) 734 558 203 Net income (loss) $ (723) $ 4,357 $ 4,187 $ 3,064 PER SHARE Basic earnings (loss) $ (0.10) $ 0.55 $ 0.53 $ 0.39 Diluted earnings (loss) (0.10) 0.54 0.52 0.38 Dividends 0.27 0.27 0.27 0.27 Quoted market value (1) 19.57 16.74 18.25 18.00 Tangible book value 21.29 21.75 21.52 21.10 Quarter to Date December 31 2019 September 30 2019 June 30 2019 March 31 2019 Total interest income $ 16,849 $ 17,161 $ 16,815 $ 16,481 Total interest expense 4,492 4,550 4,527 4,292 Net interest income 12,357 12,611 12,288 12,189 Provision for loan losses (18) 193 (179) 34 Noninterest income (725) 3,274 3,011 2,479 Noninterest expenses 10,892 10,620 10,749 10,789 Federal income tax expense (benefit) (140) 630 541 349 Net income $ 898 $ 4,442 $ 4,188 $ 3,496 PER SHARE Basic earnings $ 0.12 $ 0.56 $ 0.53 $ 0.44 Diluted earnings 0.11 0.55 0.52 0.43 Dividends 0.27 0.26 0.26 0.26 Quoted market value (1) 24.31 22.30 23.25 23.75 Tangible book value 20.45 20.65 20.17 19.47 (1) At end of period 13 Table of Contents