4th Quarter Earnings Mt. Pleasant, Michigan, February 12, 2009 - Dennis P. Angner, President and CEO of Isabella Bank Corporation (ISBA) announced today that the December 31, 2008 year-to-date net income for the Corporation was $4.10 million. Assets as of December 31, 2008 were $1.14 billion and total assets under management, which includes loans sold and serviced, trust assets, and assets under the Raymond James brokerage operations, were $1.61 billion. The Corporation paid a total of $0.65 per share in cash dividends during the year, marking the 27th consecutive year that cash dividends have increased.

The Corporation's risk based capital to risk adjusted total assets ratio of 13.5% at the end of the fourth quarter was exceptionally strong when compared to the required ratio of 8.0% necessary to be considered adequately capitalized under the Federal Reserve Board's risk based capital rules. The Corporation continues to be profitable, well capitalized and currently has funds available to meet its customers' lending needs. We are able to continue providing quality customer service without the taxpayer funds offered under the TARP Capital Purchase Program. As noted in the Corporation's December 10, 2008, press release, the Corporation's Board of Directors, after carefully reviewing the cost of the federal government's capital, the terms and conditions of participating in the Capital Purchase Program, and the consequences of having the U.S. Treasury as a preferred stock shareholder, decided it would not be in the best interests of the Corporation's shareholders to participate in the program.