8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2015

ISABELLA BANK CORPORATION

(Exact name of registrant as specified in its charter)

MICHIGAN

(State or other jurisdiction of incorporation)

000-18415	38-2830092
(Commission File Number)	(IRS Employer Identification No.)

401 North Main Street, Mt. Pleasant, Michigan	48858-1649
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (989) 772-9471

Not Applicable

(Former name or former address if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-l2)

¨ Pre-commencement communications pursuant to Rule l4d-2(b) under the Exchange Act (17 CFR 240.l4d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.l3e-4(c))

Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition.

On July 23, 2015, Isabella Bank Corporation issued a press release announcing its results of operations for the three and six month periods ended June 30, 2015. Similarly, on July 23, 2015, the Corporation issued a letter to its shareholders announcing its results of operations for the three and six month periods ended June 30, 2015.

Copies of the press release and shareholder letter are filed as Exhibits 99.1 and 99.2, respectively to this Form 8-K and are incorporated herein by reference.

The information in this Item 2.02 of Form 8-K and Exhibits 99.1 and 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing made by the registrant under the Securities Act of 1933, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit No.	Description
99.1	Press release issued July 23, 2015.
99.2	Shareholder letter issued July 23, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ISABELLA BANK CORPORATION
Dated:	July 23, 2015	By:	/s/ Jae A. Evans
			Jae A. Evans, Chief Executive Officer

EX-99.1

Exhibit 99.1

ISBA Announces Second Quarter2015 Earnings

Mt. Pleasant, Michigan, July 23, 2015 - Jae A. Evans, Chief Executive Officer of Isabella Bank Corporation (OTCQX:ISBA), announced today that the Corporation's second quarter2015 net income was $4.10 million as compared to $3.57 million for the second quarter of 2014. Net income for the first six months of 2015 and 2014 was $7.77 million and $6.87 million, respectively. Earnings for the three and six months ended June 30, 2015 represented record earnings for the Corporation. In addition to record earnings, the Corporation also posted record earnings per common share of $0.53 and $1.00 in the three and six month periods ended June 30, 2015, respectively. During the quarter, the Corporation paid a $0.23 per common share cash dividend, which represented a 4.55%increase over second quarter2014. Based on the Corporation's average stock price of $23.31 for the month of June 2015, the annualized cash dividend yield was 3.95%.

The Corporation's earnings were primarily driven by increased interest income and continued improvements in credit quality. Net loan recoveries during the first six months of 2015 were $161,000 compared to net loans charged-off of $358,000 for the same period of 2014. Additionally, there continues to be reductions in loans classified as less than satisfactory and total loans past due. These factors allowed for a reduction in the level of the allowance for loan losses in both amount and as a percentage of gross loans, resulting in a reversal of the provision for loan losses of $1.26 million during the six month period ended June 30, 2015.

As of June 30, 2015, total assets increased to $1.59 billion and assets under management grew to $2.28 billion - which includes loans sold and serviced, and assets managed by the Corporation's Investment and Trust Services Department of $689.92 million. The Corporation grew its available-for-sale investment securities portfolio by $27.78 million and experienced growth in commercial and agricultural loans of $7.43 million during the first six months of 2015. To generate growth in our residential real estate and consumer loan portfolios, the Corporation is implementing new products, enhancing marketing efforts, streamlining delivery channels for direct and indirect loans, and expanding its service area.

The Corporation grew its available-for-sale investment securities portfolio in 2015 in response to the decline in its loan portfolio. The Corporation utilizes this strategy of growing earning assets to increase interest income. As interest rates remain low and are expected to increase only slightly in 2015, net interest income will increase only through growth in loans, investments, and other income earning assets.

Growth continues to be a strategic focus for the management team and the Board of Directors.  The Corporation recently received regulatory approval to purchase two branch offices, one from Flagstar Bank (FSB) in Saginaw and the other from Independent Bank in Midland.  These acquisitions are expected to increase visibility of the Corporation's solid financial products and exceptional customer service to provide future growth. The Flagstar Bank branch acquisition is expected to close by the end of July and the Independent Bank branch acquisition is expected to close by the end of August.

Isabella Bank, a subsidiary of the Corporation, was recently the recipient of several awards.  Bank Director, a national organization focused on providing information and resources to senior executives and directors of financial institutions, recognized Isabella Bank among the top 50 banks in the U.S. for trust revenue growth in 2014.  For the fourth consecutive year, Isabella Bank received a Financial Literacy Award from the Michigan Bankers Association for its efforts in promoting financial education throughout local schools and communities. Finally, Isabella Bank received a 5-Star Superior Rating from Bauer Financial, Inc. which is their highest rating based on the Bank's financial strength and overall performance.

For further information regarding Isabella Bank Corporation, please visit the website at www.isabellabank.com and click on the Investors Tab.

This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.

EX-99.2

Exhibit 99.2

Second Quarter 2015 Earnings

July 23, 2015

Shareholder Appreciation BBQ
October 7, 2015 | 11 a.m. - 2 p.m.
Comfort Inn Conference Center
2424 S. Mission St. | Mt. Pleasant

Dear Shareholder,

I am pleased to announce that we achieved record net income and earnings per share in the second quarter of 2015. During the three and six month periods ended June 30, 2015, net income and earnings per common share were $4.10 million and $0.53 and $7.77 million and $1.00, respectively. During the quarter, we paid a $0.23 per common share cash dividend which represented a 4.55%increase over the second quarter of 2014. Based on our average stock price of $23.31 for the month of June 2015, the annualized cash dividend yield was 3.95%.

Our strategies and efforts have been successful in leading to strong earnings through increased interest income and continued improvements in credit quality. We continue to experience reductions in total loans past due and loans classified as less than satisfactory. Net loan recoveries during the first six months of 2015 were $161,000 compared to net loans charged-off of $358,000 for the same period of 2014. These factors allowed us to reduce the level of the allowance for loan losses in both amount and as a percentage of gross loans resulting in a reversal of provision for loan losses of $1.26 million for the six month period ended June 30, 2015.

When deposit growth exceeds loan demand, we deploy these excess funds into purchases of available-for-sale securities. This strategy of providing balance sheet growth allows us to continue to increase interest income. As interest rates remain low and are expected to increase only slightly in 2015, we will continue to increase net interest income through growth in loans, investments, and other income earning assets.

As of June 30, 2015, total assets grew by 2.42% to $1.59 billion and assets under management grew to $2.28 billion - which includes loans sold and serviced, and assets managed by our Investment and Trust Services Department of $689.92 million. Our available-for-sale securities portfolio increased by $27.78 million and our commercial and agricultural loan portfolios grew by $7.43 million during the first six months of 2015. To generate growth in our residential real estate and consumer loan portfolios, we are implementing new products, enhancing our marketing efforts, streamlining delivery channels for direct and indirect loans, and expanding our service area.

Growth continues to be a strategic focus for our management team and our Board of Directors.  I am pleased to share with you that we recently received regulatory approval to purchase two branch offices, one from Flagstar Bank in Saginaw and the other from Independent Bank in Midland.  This will expand our branch network from three to five offices in the Saginaw and Midland markets.  We expect this increase in visibility, along with our solid financial products and exceptional customer service, will position us well for future growth. The Flagstar Bank branch acquisition is expected to close by the end of July and the Independent Bank branch acquisition is expected to close by the end of August.

(continued on reverse side)

ISABELLA BANK CORPORATION             401 North Main Street, Mt. Pleasant, MI 48858-1649                   www.isabellabank.com

Continued

Since our last shareholder letter, Isabella Bank has been the recipient of several awards. Bank Director, a national organization focused on providing information and resources to senior executives and directors of financial institutions, recognized Isabella Bank among the top 50 banks in the U.S. for trust revenue growth in 2014.  For the fourth consecutive year, Isabella Bank received a Financial Literacy Award from the Michigan Bankers Association for our efforts in promoting financial education throughout local schools and communities. Finally, Isabella Bank received a 5-Star Superior Rating from Bauer Financial, Inc.  This is their highest rating for a financial institution and is based upon our financial strength and overall performance. I believe these awards reflect our team's commitment and dedication to our organization.

On behalf of our Board of Directors and all of our employees, I would like to thank you for your continued support. If you have questions or comments, please call me at (989) 779-6215 or email me at jevans@isabellabank.com.

Jae A. Evans, Chief Executive Officer

This letter includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.