In a recent transaction, William M. Schaefer, the Chief Financial Officer of Isabella Bank Corp (OTC:ISBA), acquired 194 shares of the company's common stock. The shares were purchased at a price of $20.57 each, amounting to a total investment of approximately $3,999. Following this acquisition, Schaefer's total direct ownership stands at 5,667 shares. The transaction was reported in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Isabella Bank's third-quarter results showcased a 3% pre-provision net revenue upside, largely fueled by net interest margin expansion, as reported by Piper Sandler. The firm also highlighted strong organic balance sheet growth for the bank. Despite a one-time elevated net charge-off due to an isolated client event, Piper Sandler maintains a Neutral rating on Isabella Bank's shares, raising the price target to $24 from $22.
The bank is dealing with potential losses of approximately $1.6 million due to negative balances in deposit accounts linked to a single customer. The total exposure to this customer, which includes loans and lines of credit secured by various assets, is estimated at $4 million. Piper Sandler has maintained a Neutral rating following this disclosure.
Isabella Bank has also declared a third-quarter cash dividend of $0.28 per common share, reflecting its commitment to enhancing shareholder value. Piper Sandler has increased its earnings per share estimates for Isabella Bank for 2024 and 2025 to $1.80 and $2.10, respectively. These recent developments provide insights into the bank's financial performance and future expectations as per analysts' projections.
InvestingPro Insights
William M. Schaefer's recent acquisition of Isabella Bank Corp (OTC:ISBA) shares comes at an interesting time for the company. According to InvestingPro data, ISBA is currently trading near its 52-week high, with the stock price at 97.3% of its peak. This insider purchase could be seen as a vote of confidence in the company's prospects, despite some mixed financial indicators.
InvestingPro Tips highlight that Isabella Bank Corp has maintained dividend payments for 17 consecutive years, which may be attractive to income-focused investors. The company's current dividend yield stands at a robust 5.17%, potentially offering a steady income stream for shareholders.
However, it's worth noting that ISBA's revenue growth has been negative, with a 10.07% decline over the last twelve months. Despite this, the company remains profitable, with a P/E ratio of 11.76, suggesting it may be reasonably valued compared to its earnings.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 6 more tips available for Isabella Bank Corp. These tips could provide valuable context for understanding the company's financial health and future prospects in light of the CFO's recent stock purchase.
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