Exhibit 99.1

For Immediate Release

Isabella Bank Corporation

401 North Main Street

Mt. Pleasant, MI 48858-1649

FOR MORE INFORMATION CONTACT:

Amber Zaske, Community Relations Specialist

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

Isabella Bank Corporation Announces Strong Fourth Quarter and 2021 Earnings

Record assets, loans and net income of $19.5 million in 2021; EPS jumps 81%

Mt. Pleasant, Michigan, February 10, 2022 — Isabella Bank Corporation (the “Corporation”) (OTCQX: ISBA) has released positive earnings results for the fourth quarter and year ended December 31, 2021. The Corporation reported net income of $4.8 million for the quarter and a record $19.5 million for the year. Both figures reflect increases over the same periods a year ago. Earnings per common share were $0.63 in the fourth quarter and $2.48 for the year 2021, also increases from the same periods of 2020.

2021 Highlights:

•Net income in 2021 reached a record $19.5 million, increasing 79%, compared to 2020.

•Net interest income in 2021 improved by $2.4 million compared to 2020, enabled by interest expense declining $6.4 million.

•Total assets reached a record $2 billion and total assets under management reached a record $2.8 billion at the end of 2021.

•Loans increased $62.7 million, or 5.1%, reaching a record $1.3 billion during 2021, driven by growth in the commercial and residential mortgage loan portfolios.

•Deposits increased $144 million, or 9.2%, during 2021, largely the result of new customer accounts, Paycheck Protection Program (PPP) loans, and government stimulus funds.

•Successful subordinated debt issuance of $30 million at a rate of 3.25%.

•Completion of a tender offer during the fourth quarter, resulting in the Corporation purchasing 5% of outstanding shares at $27.00 per share for a total of $10.7 million.

“Our successful subordinated debt issuance in 2021 aligns with our strategic initiatives to deliver long-term shareholder value,” said Jae A. Evans, President and Chief Executive Officer. “A portion of the proceeds from the issuance were used for our subsequent tender offer, and the remaining proceeds may be used to support continued stock repurchases and expansion activity.

“Our successful Dutch auction tender offer reduced ISBA shares outstanding and will likely improve several key metrics for shareholders,” Evans said. “Our ongoing stock repurchase plan and this tender offer both align with our ongoing commitment to improve shareholder value.

“Overall, we continue to grow our customer base through trusted, quality service as an independent, community bank,” Evans said. “Our 2021 results, which set multiple records, are a testament to our continued focus on meeting the needs of our customers while pursuing strategic initiatives that benefit our shareholders, customers and communities over the long-term.”

Operating Results

Net income: Net income for the fourth quarter 2021 was $4.8 million, compared to a net loss of $723,000 in 2020. For the year ended December 31, 2021, net income was $19.5 million, compared to $10.9 million in 2020.

Net interest income, fourth quarter 2021: Net interest income for fourth quarter 2021 decreased $70,000 compared to the same period in 2020. While interest income declined $1.4 million due to continued low interest rates, interest expense also decreased $1.3 million, or 45.2%, largely due to a reduction in higher-cost borrowings over the last year. Provision for loan losses decreased $175,000 compared to 2020 and was the result of improvement in credit quality.

Net interest income: Net interest income for the year ended December 31, 2021 increased $2.4 million, or 4.7%, compared to the same period in 2020. Lower interest rates and a reduction in higher-cost borrowing benefited the Corporation with a $6.4 million, or 46.4%, decrease in interest expense during 2021. The decrease in interest expense outpaced a gross interest income decline of $4.1 million during 2021 caused by the lower interest rates and a pause in advances to mortgage brokers. The provision for loan losses also contributed to a positive net interest income result through a $2.2 million decrease compared to 2020, as a result of continued strong credit quality.

Noninterest income and expenses, fourth quarter 2021: Noninterest income decreased $511,000 compared to the fourth quarter of 2020, driven by a reduction in gain on sale of loans. Noninterest expenses for the quarter decreased $7.4 million, attributed to a $7.6 million cost to extinguish $100 million of FHLB advances during the fourth quarter of 2020.

Noninterest income and expenses: Noninterest income of $13.8 million for the year ended December 31, 2021 decreased $601,000 compared to 2020. While service charges and fees increased $1.1 million when compared to the previous year, 2020 also included an additional $1.0 million related to gain on sale of loans and $620,000 related to gains from redemption of corporate owned life insurance policies. Noninterest expenses decreased for the year ended December 31, 2021 by $7.5 million compared to 2020, tied to the $100 million FHLB debt extinguishment in 2020.

Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 2.86% and 2.87% for the fourth quarter and year ended 2021, respectively, compared to 3.04% and 2.96% for the same periods in 2020. The net yield for 2021 reflected a full year's impact of the decline in interest rates that occurred in the first half of 2020.

Balance Sheet

Assets: Total assets were $2.0 billion and assets under management were $2.8 billion as of December 31, 2021, both record levels. Assets under management include loans sold and serviced of $278.8 million and investment and trust assets managed by Isabella Wealth of $516.2 million, in addition to assets on the consolidated balance sheet. Assets under management increased $124.5 million, or 4.6%, compared to December 31, 2020. Isabella Wealth also reached record levels during 2021 and increased 16.3% during the year.

Loans: During 2021, total loans increased $62.7 million and totaled a record $1.3 billion at December 31, 2021. As customer demand increased, along with advances to mortgage brokers, the commercial loan portfolio increased $50.8 million, or 6.7%, during 2021. Competition for agricultural loans continued to be strong in 2021 and the portfolio declined $6.5 million during the year. Residential mortgage loans increased $18.8 million, or 6.1%, during 2021, while consumer loans recorded a slight decline.

Deposits: Total deposits were a record $1.7 billion as of December 31, 2021, an increase of $144 million, or 9.2%, since December 31, 2020. Growth in 2021 was largely the result of new customer accounts, funding from PPP loans, and government stimulus funds.

Capital: The Bank is considered a “well-capitalized” institution, as its capital ratios exceeded the minimum designated requirements. As of December 31, 2021, the Bank’s Tier 1 Leverage Ratio was 8.54%, Tier 1 Capital Ratio was 12.91% and Total Capital Ratio was 13.60%. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.

Dividend: During the fourth quarter of 2021, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation’s closing stock price of $25.50 as of December 31, 2021, the annualized cash dividend yield was 4.24%.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 119 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s market maker is Boenning & Scattergood, Inc. (www.boenninginc.com) and its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com).

Forward-Looking Statements

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 the actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections titled “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.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

			December 31 2021						December 31 2020
ASSETS
Cash and cash equivalents
Cash and demand deposits due from banks			$	25,563					$	31,296
Interest bearing balances due from banks			79,767						215,344
Total cash and cash equivalents			105,330						246,640
Available-for-sale securities, at fair value			490,601						339,228
Mortgage loans available-for-sale			1,735						2,741
Loans
Commercial			807,439						756,686
Agricultural			93,955						100,461
Residential real estate			326,361						307,543
Consumer			73,282						73,621
Gross loans			1,301,037						1,238,311
Less allowance for loan and lease losses			9,103						9,744
Net loans			1,291,934						1,228,567
Premises and equipment			24,419						25,140
Corporate owned life insurance policies			32,472						28,292
Equity securities without readily determinable fair values			17,383						17,383
Goodwill and other intangible assets			48,302						48,331
Accrued interest receivable and other assets			19,982						21,056
TOTAL ASSETS			$	2,032,158					$	1,957,378
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest bearing			$	448,352					$	375,395
Interest bearing demand deposits			364,563						302,444
Certificates of deposit under $250 and other savings			818,841						781,286
Certificates of deposit over $250			78,583						107,192
Total deposits			1,710,339						1,566,317
Borrowed funds
Federal funds purchased and repurchase agreements			50,162						68,747
Federal Home Loan Bank advances			20,000						90,000
Subordinated debt, net of unamortized issuance costs			29,158						—
Total borrowed funds			99,320						158,747
Accrued interest payable and other liabilities			11,451						13,726
Total liabilities			1,821,110						1,738,790
Shareholders’ equity
Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,532,641 shares (including 105,654 shares held in the Rabbi Trust) in 2021 and 7,997,247 shares (including 59,162 shares held in the Rabbi Trust) in 2020			129,052						142,247
Shares to be issued for deferred compensation obligations			4,545						4,183
Retained earnings			75,592						64,460
Accumulated other comprehensive income			1,859						7,698
Total shareholders’ equity			211,048						218,588
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	2,032,158					$	1,957,378

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share amounts)

			Three Months Ended   December 31												Year Ended  December 31
			2021						2020						2021						2020
Interest income
Loans, including fees			$	12,776					$	13,997					$	51,410					$	54,102
Available-for-sale securities
Taxable			1,391						1,302						4,920						5,214
Nontaxable			684						880						3,077						3,830
Federal funds sold and other			190						223						706						1,026
Total interest income			15,041						16,402						60,113						64,172
Interest expense
Deposits			1,079						1,850						5,442						8,884
Borrowings
Federal funds purchased and repurchase agreements			13						14						53						36
Federal Home Loan Bank advances			209						994						1,302						4,905
Subordinated debt, net of unamortized issuance costs			266						—						615						—
Total interest expense			1,567						2,858						7,412						13,825
Net interest income			13,474						13,544						52,701						50,347
Provision for loan losses			81						256						(518)						1,665
Net interest income after provision for loan losses			13,393						13,288						53,219						48,682
Noninterest income
Service charges and fees			2,125						1,855						7,614						6,544
Wealth management fees			797						701						3,071						2,578
Net gain on sale of mortgage loans			235						1,063						1,694						2,716
Earnings on corporate owned life insurance policies			223						197						800						755
Gains from redemption of corporate owned life insurance policies			121						18						271						891
Net income (loss) on joint venture investment			—						269						—						577
Other			107						16						372						362
Total noninterest income			3,608						4,119						13,822						14,423
Noninterest expenses
Compensation and benefits			6,056						6,009						23,749						23,772
Furniture and equipment			1,413						1,469						5,462						5,787
Occupancy			935						889						3,661						3,557
Loss on extinguishment of debt			—						7,643						—						7,643
Other			2,793						2,628						10,822						10,474
Total noninterest expenses			11,197						18,638						43,694						51,233
Income before federal income tax expense			5,804						(1,231)						23,347						11,872
Federal income tax expense			1,010						(508)						3,848						987
NET INCOME			$	4,794					$	(723)					$	19,499					$	10,885
Earnings per common share
Basic			$	0.63					$	(0.10)					$	2.48					$	1.37
Diluted			$	0.63					$	(0.10)					$	2.45					$	1.34
Cash dividends per common share			$	0.27					$	0.27					$	1.08					$	1.08

AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED)

(Dollars in thousands)

The following schedules present the daily average amount outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. These schedules also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a fully taxable equivalent (FTE) basis using a federal income tax rate of 21%. Loans in nonaccrual status, for the purpose of the following computations, are included in the average loan balances. Federal Reserve Bank (FRB) and Federal Home Loan Bank (FHLB) restricted equity holdings are included in other interest earning assets.

			Three Months Ended
			December 31, 2021																		December 31, 2020
			Average Balance						Tax Equivalent Interest						Average Yield / Rate						Average Balance						Tax Equivalent Interest						Average Yield / Rate
INTEREST EARNING ASSETS
Loans			$	1,226,192					$	12,776					4.17		%				$	1,258,775					$	13,997					4.45		%
Taxable investment securities			383,175						1,391						1.45		%				205,522						1,302						2.53		%
Nontaxable investment securities			104,115						889						3.42		%				134,026						1,200						3.58		%
Fed funds sold			9						—						0.01		%				3						—						—		%
Other			199,605						190						0.38		%				227,920						223						0.39		%
Total earning assets			1,913,096						15,246						3.19		%				1,826,246						16,722						3.66		%
NONEARNING ASSETS
Allowance for loan losses			(9,082)																		(9,603)
Cash and demand deposits due from banks			28,852																		28,606
Premises and equipment			24,534																		25,656
Accrued income and other assets			109,238																		119,230
Total assets			$	2,066,638																	$	1,990,135
INTEREST BEARING LIABILITIES
Interest bearing demand deposits			$	367,130					$	48					0.05		%				$	285,731					$	94					0.13		%
Savings deposits			584,475						157						0.11		%				487,014						148						0.12		%
Time deposits			306,817						874						1.14		%				383,436						1,608						1.68		%
Federal funds purchased and repurchase agreements			60,508						13						0.09		%				49,427						14						0.11		%
Federal Home Loan Bank advances			40,543						209						2.06		%				174,728						994						2.28		%
Subordinated debt, net of unamortized issuance costs			29,143						266						3.65		%				—						—						—		%
Total interest bearing liabilities			1,388,616						1,567						0.45		%				1,380,336						2,858						0.83		%
NONINTEREST BEARING LIABILITIES
Demand deposits			449,766																		370,042
Other			12,002																		16,446
Shareholders’ equity			216,254																		223,311
Total liabilities and shareholders’ equity			$	2,066,638																	$	1,990,135
Net interest income (FTE)									$	13,679																	$	13,864
Net yield on interest earning assets (FTE)															2.86		%																3.04		%

			Year Ended
			December 31, 2021																		December 31, 2020
			Average Balance						Tax Equivalent Interest						Average Yield / Rate						Average Balance						Tax Equivalent Interest						Average Yield / Rate
INTEREST EARNING ASSETS
Loans			$	1,208,141					$	51,410					4.26		%				$	1,236,169					$	54,102					4.38		%
Taxable investment securities			297,357						4,920						1.65		%				229,468						5,214						2.27		%
Nontaxable investment securities			117,997						4,235						3.59		%				140,665						5,189						3.69		%
Fed funds sold			5						—						0.02		%				4						—						0.06		%
Other			255,246						706						0.28		%				142,717						1,026						0.72		%
Total earning assets			1,878,746						61,271						3.26		%				1,749,023						65,531						3.75		%
NONEARNING ASSETS
Allowance for loan losses			(9,396)																		(8,837)
Cash and demand deposits due from banks			29,139																		24,987
Premises and equipment			24,760																		25,846
Accrued income and other assets			109,625																		118,195
Total assets			$	2,032,874																	$	1,909,214
INTEREST BEARING LIABILITIES
Interest bearing demand deposits			$	345,015					$	216					0.06		%				$	262,188					$	357					0.14		%
Savings deposits			558,102						616						0.11		%				456,088						1,212						0.27		%
Time deposits			336,094						4,610						1.37		%				387,881						7,315						1.89		%
Federal funds purchased and repurchase agreements			57,453						53						0.09		%				35,518						36						0.10		%
Federal Home Loan Bank advances			69,342						1,302						1.88		%				210,451						4,905						2.33		%
Subordinated debt, net of unamortized issuance costs			17,000						615						3.62		%				—						—						—		%
Total interest bearing liabilities			1,383,006						7,412						0.54		%				1,352,126						13,825						1.02		%
NONINTEREST BEARING LIABILITIES
Demand deposits			416,247																		320,820
Other			12,858																		15,613
Shareholders’ equity			220,763																		220,655
Total liabilities and shareholders’ equity			$	2,032,874																	$	1,909,214
Net interest income (FTE)									$	53,859																	$	51,706
Net yield on interest earning assets (FTE)															2.87		%																2.96		%

SELECTED FINANCIAL DATA (UNAUDITED)

(Dollars in thousands except per share amounts)

			Year Ended
			December 31 2021						December 31 2020						December 31 2019
PER SHARE
Basic earnings			$	2.48					$	1.37					$	1.65
Diluted earnings			$	2.45					$	1.34					$	1.61
Dividends			$	1.08					$	1.08					$	1.05
Tangible book value			$	21.61					$	21.29					$	20.45
Quoted market value
High			$	29.00					$	24.50					$	24.80
Low			$	19.45					$	15.60					$	22.01
Close (1)			$	25.50					$	19.57					$	24.31
Common shares outstanding (1)			7,532,641						7,997,247						7,910,804
Average number of common shares outstanding			7,853,398						7,959,705						7,909,794
Average number of diluted common shares outstanding			7,965,961						8,106,091						8,095,042
PERFORMANCE RATIOS
Return on average total assets			0.96		%				0.57		%				0.72		%
Return on average shareholders' equity			8.83		%				4.93		%				6.25		%
Return on average tangible shareholders' equity			11.31		%				6.34		%				8.17		%
Net interest margin yield (FTE)			2.87		%				2.96		%				3.07		%
ASSETS UNDER MANAGEMENT (1)
Loans sold with servicing retained			$	278,844					$	301,377					$	259,375
Assets managed by Isabella Wealth			$	516,243					$	443,967					$	436,181
Total assets under management			$	2,827,245					$	2,702,722					$	2,509,754
ASSET QUALITY (1)
Nonaccrual status loans			$	1,245					$	5,313					$	6,535
Performing troubled debt restructurings			$	25,276					$	22,200					$	21,194
Foreclosed assets			$	211					$	527					$	456
Net loan charge-offs (recoveries)			$	123					$	(140)					$	466
Nonperforming loans to gross loans			0.10		%				0.43		%				0.55		%
Nonperforming assets to total assets			0.08		%				0.31		%				0.40		%
Allowance for loan and lease losses to gross loans			0.70		%				0.79		%				0.67		%
CAPITAL RATIOS (1)
Shareholders' equity to assets			10.39		%				11.17		%				11.59		%
Tier 1 leverage			7.97		%				8.37		%				9.01		%
Common equity tier 1 capital			12.07		%				12.97		%				12.56		%
Tier 1 risk-based capital			12.07		%				12.97		%				12.56		%
Total risk-based capital			14.94		%				13.75		%				13.18		%

(1) At end of period

SUPPLEMENTAL BALANCE SHEET DATA (UNAUDITED)

(Dollars in thousands)

			December 31 2021						September 30 2021						June 30 2021						March 31 2021						December 31 2020
Commercial			$	807,439					$	757,993					$	723,888					$	725,540					$	756,686
Agricultural			93,955						93,782						95,197						91,629						100,461
Residential real estate			326,361						321,620						312,567						305,909						307,543
Consumer			73,282						75,163						75,011						72,840						73,621
Gross loans			$	1,301,037					$	1,248,558					$	1,206,663					$	1,195,918					$	1,238,311

			December 31 2021						September 30 2021						June 30 2021						March 31 2021						December 31 2020
Noninterest bearing demand deposits			$	448,352					$	430,950					$	428,410					$	404,710					$	375,395
Interest bearing demand deposits			364,563						374,137						326,971						328,440						302,444
Savings deposits			596,662						572,136						549,134						555,688						505,497
Certificates of deposit			297,696						312,027						326,214						331,413						358,165
Brokered certificates of deposit			—						—						—						14,029						14,029
Internet certificates of deposit			3,066						3,066						5,777						9,301						10,787
Total deposits			$	1,710,339					$	1,692,316					$	1,636,506					$	1,643,581					$	1,566,317

			December 31 2021						September 30 2021						June 30 2021						March 31 2021						December 31 2020
U.S. Treasury			$	209,703					$	192,069					$	132,593					$	29,371					$	—
States and political subdivisions			121,205						128,689						130,960						140,329						143,656
Auction rate money market preferred			3,242						3,246						3,260						3,224						3,237
Mortgage-backed securities			56,148						62,030						68,155						75,835						88,652
Collateralized mortgage obligations			92,301						100,767						109,294						116,865						101,983
Corporate			8,002						7,583						4,192						1,700						1,700
Available-for-sale securities, at fair value			$	490,601					$	494,384					$	448,454					$	367,324					$	339,228

			December 31 2021						September 30 2021						June 30 2021						March 31 2021						December 31 2020
Federal Home Loan Bank advances			$	20,000					$	60,000					$	70,000					$	90,000					$	90,000
Securities sold under agreements to repurchase without stated maturity dates			50,162						67,519						62,274						51,967						68,747
Subordinated debt, net of unamortized issuance costs			29,158						29,136						29,121						—						—
Total borrowed funds			$	99,320					$	156,655					$	161,395					$	141,967					$	158,747

SUPPLEMENTAL STATEMENTS OF INCOME DATA (UNAUDITED)

(Dollars in thousands)

			Three Months Ended December 31												Year Ended December 31
			2021						2020						2021						2020
Service charges and fees
ATM and debit card fees			$	1,318					$	1,043					$	4,600					$	3,723
Service charges and fees on deposit accounts			621						474						2,139						1,847
Freddie Mac servicing fee			175						149						747						625
Net OMSR income (loss)			(56)						123						(184)						44
Other fees for customer services			67						66						312						305
Total service charges and fees			2,125						1,855						7,614						6,544
Wealth management fees			797						701						3,071						2,578
Net gain on sale of mortgage loans			235						1,063						1,694						2,716
Earnings on corporate owned life insurance policies			223						197						800						755
Gains from redemption of corporate owned life insurance policies			121						18						271						891
Net income (loss) on joint venture investment			—						269						—						577
Other			107						16						372						362
Total noninterest income			$	3,608					$	4,119					$	13,822					$	14,423

			Three Months Ended December 31												Year Ended December 31
			2021						2020						2021						2020
Compensation and benefits			$	6,056					$	6,009					$	23,749					$	23,772
Furniture and equipment			1,413						1,469						5,462						5,787
Occupancy			935						889						3,661						3,557
Loss on extinguishment of debt			—						7,643						—						7,643
Other
Audit, consulting, and legal fees			513						488						2,066						1,836
ATM and debit card fees			458						417						1,810						1,441
Marketing costs			256						200						939						877
Memberships and subscriptions			215						194						877						740
Loan underwriting fees			221						248						849						825
Donations and community relations			253						157						705						723
Director fees			198						168						703						695
FDIC insurance premiums			161						153						690						612
All other			518						603						2,183						2,725
Total other noninterest expenses			2,793						2,628						10,822						10,474
Total noninterest expenses			$	11,197					$	18,638					$	43,694					$	51,233