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): October 24, 2017

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 October 24, 2017, Isabella Bank Corporation issued a press release announcing its results of operations for the three and nine month periods ended September 30, 2017. Similarly, on October 24, 2017, the Corporation issued a letter to its shareholders announcing its results of operations for the three and nine month periods ended September 30, 2017.

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 October 24, 2017.
99.2	Shareholder letter issued October 24, 2017.

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:	October 24, 2017	By:	/s/ Jae A. Evans
			Jae A. Evans, President & CEO

EX-99.1

Exhibit 99.1

For Immediate Release

Isabella Bank Corporation

401 North Main Street

Mt. Pleasant, MI 48858-1649

FOR MORE INFORMATION, CONTACT:

Mary Olivieri, Community Relations Officer

Phone: 989-779-6309    Fax: 989-775-5501

ISBA Announces Third Quarter 2017 Earnings

Mt. Pleasant, Michigan, October 24, 2017 - Jae A. Evans, President and Chief Executive Officer of Isabella Bank Corporation (OTCQX:ISBA), announced the Corporation’s third quarter 2017 earnings. The Corporation reported net income of $3.54 million for the quarter ended September 30, 2017.

“We are pleased to report our earnings for the third quarter of 2017,” stated Jae Evans, President and Chief Executive Officer for Isabella Bank Corporation. “While today’s environment is extremely competitive, we continue our focus on being trusted advisors for our customers, and providing them with a full line of products and services to meet their financial needs. The impact of our team’s efforts resulted in growth through existing and new relationships, which has led to record loan balances and strong earnings.  Year-to-date earnings through the third calendar quarter surpassed earnings during the same period last year, driven primarily by increased interest income. We remain committed to increasing earnings and shareholder value through growth in our loan portfolio, investment and trust services, and deposits while managing operating costs.”

Net Income

During the three and nine month periods ended September 30, 2017, the Corporation reported net income of $3.54 million and $10.52 million and earnings per common share of $0.45 and $1.34, respectively. Net income and earnings per common share for the same periods of 2016 were $3.59 million and $10.02 million and $0.46 and $1.28, respectively. The increase in year-to-date earnings was primarily driven by interest income which increased $3.43 million for the first nine months of 2017 in comparison to the same period in 2016. Increased interest income resulted primarily from strong loan growth during the past year.

Assets

As of September 30, 2017, total assets increased to $1.79 billion and assets under management grew to a record $2.53 billion - which includes loans sold and serviced, and assets managed by the Corporation's Investment and Trust Services Department of $736.42 million.

Loans

The Corporation's loan portfolio has grown by $66.93 million or 6.62% during the nine month period ended September 30, 2017. This growth was largely driven by the commercial loan portfolio which increased $44.47 million during 2017. As a result of recent initiatives, the consumer loan portfolio increased $10.52 million or 24.81% during 2017. The Corporation anticipates continued loan growth in its loan portfolio during the remainder of 2017 as a result of the expansion in the Saginaw and Midland communities and the commitment to providing competitive products.

Net Interest Income

For the nine months ended September 30, 2017, net interest income increased by $2.41 million in comparison to the same period in 2016. This increase was primarily the result of significant loan growth during the last year.

The Corporation's net yield on interest earning assets remained low at 3.03% for the nine month period ended September 30, 2017. The Corporation does not anticipate that the Federal Reserve Bank will increase short term interest rates significantly in the near future; therefore, does anticipate marginal improvements in the net yield on interest earning assets in the short term. Increases in net interest income are expected to occur primarily through continued strategic growth in loans, investments, and other income earning assets.

Dividends

During the third quarter of 2017, the Corporation paid a $0.26 per common share cash dividend which represented a 4.00%increase over the per common share cash dividend paid in the third quarter of 2016. Based on the Corporation's closing stock price of $29.00 as of September 29, 2017, the annualized cash dividend yield was 3.49%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is headquartered in Mt. Pleasant, Michigan and employs more than 400 individuals. Isabella Bank, the Corporation’s banking subsidiary, has 29 banking locations and a loan production office throughout seven Mid-Michigan counties and has been recognized on the Detroit Free Press list of “Top Workplaces” for the past five years.

For further information regarding Isabella Bank Corporation, please visit isabellabank.com.

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

2017 Third Quarter Earnings

October 24, 2017

Dear Shareholder,

It is my pleasure to report our earnings for the third quarter of 2017. Our net income for the three month period ended September 30, 2017 was $3.54 million resulting in earnings per common share of $0.45, compared to $3.59 million and $0.46 for the third quarter 2016. During the third quarter of 2017, we paid a $0.26 per common share cash dividend which represented a 4.00%increase over the third quarter of 2016. Based on our closing stock price of $29.00 as of September 29, 2017, the annualized cash dividend yield was 3.49%.

For the nine months ended September 30, 2017, net interest income increased by $2.41 million in comparison to the same period in 2016. This increase was primarily the result of significant loan growth over the last year. The Corporation's net yield on interest earning assets remained historically low at 3.03%for the nine month period ended September 30, 2017. We do not anticipate the Federal Reserve Bank will increase short term interest rates significantly in the near future; therefore, we anticipate marginal improvements in our net yield on interest earning assets in the short term. Increases in net interest income are expected to occur primarily through continued strategic growth in loans, investments, and other income earning assets.

As of September 30, 2017, total assets increased to $1.79 billion and assets under management grew to a record $2.53 billion which includes loans sold and serviced, and assets managed by our Investment and Trust Services Department of $736.42 million.

The Corporation continues to look for opportunities to increase shareholder value. We are currently developing an online portal for you to view your stock relationship with Isabella Bank Corporation. The portal will provide online statements, profile maintenance options, ISBA stock information, and various resources to enhance the value you receive as an Isabella Bank Corporation stockholder. Communications will be sent to you regarding access to your personal portal later this year.

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, President and 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.

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