MT. PLEASANT, MICHIGAN — July 24, 2025 — Isabella Bank Corporation (Nasdaq: ISBA) (“Isabella” or the “Company”) reported second quarter 2025 net income of $5.0 million, or $0.68 per diluted share, compared to $3.5 million, or $0.46 per diluted share, in the same quarter of 2024. Core net income (non-GAAP) in the second quarter of 2025 totaled $4.1 million, or $0.55 per diluted share, compared to $3.5 million, or $0.46 per diluted share, for the same quarter of 2024.

•Return on average assets (ROA) of 0.96%, up from 0.68%; core ROA (non-GAAP) of 0.79%, up from 0.68%

•Total loan growth from the first quarter of 2025 of 9%, annualized

•Total deposit growth from the first quarter of 2025 of 11%, annualized

•Net interest margin, fully taxable equivalent ("NIM") (non-GAAP) of 3.14%, up from 2.82%

•Noninterest income up 4% from the first quarter of 2025

•Nonperforming loans to total loans of 0.09%

“It was a very good second quarter with improvements across most of our performance metrics," said Isabella's Chief Executive Officer, Jerome Schwind. "Our financial performance centered on growth in NIM, loans, and deposits.

"NIM increased as expected, expanding 8 basis points over the prior quarter with earning assets continuing to reprice on stable cost of funds. Loan growth was driven by the commercial loan portfolio, based on our pipeline in the first quarter and the continued concentrated efforts in this business line. The increase in total deposits was highlighted by an $89 million increase in non-maturity deposits, which mostly was due to a large deposit from a not-for-profit entity that is expected to be used by the customer by the end of the year. While short-term, this deposit is another example of our strong relationships with the communities we serve. As previously announced, the Bank also recovered the entire overdraft charge-off that occurred during the third quarter of 2024. This recovery positively affected the provision for credit losses for the quarter.

“Our teams continue to focus on the profitability of our operations and initiatives to enhance and grow non-interest income, and I am proud of their dedication throughout this process," Schwind said. "Our teams embrace our culture and are focused on serving our customers and building and executing our strategy.

“Since uplisting to the Nasdaq in May, our stock volume has increased significantly," Schwind added. "We view our higher stock price as an expanded source of potential currency and opportunity for further growth. As always, building shareholder value remains our focus, with strong earnings, share repurchases and continued dividends.”

Total assets were $2.2 billion, up $53.6 million, primarily due to an increase of $33.9 million in interest bearing cash balances and an increase of $29.8 million in core loans, which excludes advances to mortgage brokers (non-GAAP), partially offset by a $16.4 million decline in gross securities.

Available-for-sale ("AFS") securities at fair value were $501 million, decreasing $12.5 million at the end of second quarter 2025. The decline was driven by amortization and maturities of $26.8 million, partially offset by purchases totaling $10.6 million. Net unrealized losses on securities totaled $17.6 million, compared to $21.5 million at the end of the first quarter of 2025. Net unrealized losses as a percentage of total AFS securities decreased to 3% from 4% at the end of the first quarter of 2025, primarily due to the treasury portfolio rapidly approaching maturity. The par value and corresponding book yields that are estimated to mature or pay off by year include: $28.2 million in principal with a weighted-average book yield of 2.36% over the remainder of 2025; $217.4 million at 1.17% in 2026; and $63.0 million at 1.87% in 2027. Some of these securities amortize and actual principal paydown may differ from the estimates in this press release.

Total loans were $1.4 billion at the end of the second quarter, increasing $29.8 million from growth in core loans (non-GAAP) led by commercial and residential loans. Commercial loans, excluding advances to mortgage brokers, increased $23.1 million, or 10.3% on an annualized basis. The outsized growth is primarily the result of closing several loans that were originally expected to close in the first quarter, along with executing on our pipeline that was robust going into the second quarter 2025. While our commercial pipeline is strong at the beginning of the third quarter, future loan growth could be lower due to changes in timing and funding, customer demand, and overall economic conditions. Residential mortgages increased $11.3 million mostly due to drawdowns on construction loans and an increase in originations that are both associated with seasonal patterns. Loan growth during the quarter was partially offset by a decline in the agricultural and consumer loan portfolios that continue to roll off amid decreasing demand.

The allowance for credit losses increased $242 thousand to $13.0 million as of June 30, 2025. The increase reflects core loan growth during the period and changes in historical loss rates. Nonaccrual loan balances increased $991 thousand to $1.2 million, primarily due to the downgrade of one unique commercial real estate loan to nonaccrual status during the quarter. Past due and accruing accounts between 30 to 89 days, as a percentage of total loans, was 0.08% compared to 0.41% at the end of first quarter 2025.

Total deposits were $1.85 billion, increasing $51.5 million, at the end of the second quarter. The growth was driven by demand deposits, which increased $89.3 million, primarily due to one customer with large deposits during the second quarter that is expected to be withdrawn by the customer by the end of they year. Consumer demand for retail certificates of deposit accounts continues based on the current elevated market interest rate environment, resulting in a $5.7 million increase during the period. Money market and interest-bearing demand deposits led to a $26.3 million and $20.6 million decline in deposits, respectively, as a result of seasonal trends.

Tangible book value per share (non-GAAP) was $23.39 as of June 30, 2025, compared to $22.58. Net unrealized losses on AFS securities reduced tangible book value per share by $1.90 and $2.30 for the respective periods. Share repurchases totaled 57,824 during the second quarter for an aggregate purchase price of approximately $1.5 million at an average per share purchase price of approximately $26.03.

NIM was 3.14%, an increase from 3.06% in the first quarter 2025 and from 2.82% in the second quarter of 2024. The book yield from securities was 2.38% and 2.17% during the second quarters of 2025 and 2024, respectively. The yield on loans expanded to 5.71% in the second quarter, up from 5.50% in the same quarter of 2024. The expansion in loan yields was a result of higher interest rates on new loans and variable rate commercial loans that continue to reprice. At the end of the second quarter, approximately 38% of commercial loans were fixed at rates lower than current market rates, and the majority will contractually reprice to variable rates over the next four years. Cost of interest-bearing liabilities was 2.24%, decreasing from 2.26% in the previous quarter and from 2.38% in the second quarter of 2024, primarily due to reductions to rates in the money market and certificate of deposit products. NIM is expected to continue to expand as loans reprice and the cost of interest-bearing liabilities stabilizes.

The provision for credit losses in the second quarter 2025 was a credit of $1.1 million, which reflects net recoveries totaling $1.4 million, offset by the $242 thousand change in the allowance for credit losses on loans and an increase in the reserve for unfunded commitments. Recoveries of $1.6 million during the quarter were related to overdrawn deposit accounts from a single customer that were charged off during the third quarter of 2024.

The provision for loan losses in the same period of 2024 was $170 thousand, reflecting growth in core loans and unfunded commitments.

The Company continues to closely monitor credit quality in light of the continued economic uncertainty caused by, among other factors, the prolonged elevated interest rate environment, stronger than expected employment data in recent periods, continued uncertainty regarding U.S. trade and tariff policy and the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas. Accordingly, additional provisions for credit losses may be necessary in future periods.

Noninterest income was $3.7 million in the second quarter of 2025 compared to $3.6 million for the same quarter of 2024. Service charges and fees increased $48 thousand because of profitability initiatives designed to increase fee income. Earnings on bank-owned life insurance ("BOLI") policies increased $47 thousand over the prior year quarter due to new investments in a separate account BOLI, which was offset in part by a one-time expense of $120 thousand due to restructuring charges. Wealth management fees grew $36 thousand due to growth in assets under management ("AUM") as compared to the second quarter of 2024. AUM totaled $679 million, $657 million and $648 million as of June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

Noninterest expenses were $13.7 million in the second quarter 2025 compared to $12.9 million in the same quarter of 2024. The change mostly was due to higher compensation and benefit expenses totaling $526 thousand, which reflect annual merit increases in 2025, incentives, and higher medical insurance claims compared to the second quarter of 2024. Professional services included $173 thousand in fees related to profitability initiative costs and $47 thousand in legal fees related to our Nasdaq uplisting.

Isabella Bank Corporation (Nasdaq: 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 its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com.

Lori Peterson, Director of Marketing

Phone: 989-779-6333 Fax: 989-775-5501

The Company maintains an Internet web site at ir.isabellabank.com/overview. The Company makes available, free of charge, on its web site the Company’s annual reports, quarterly earnings reports, and other press releases.

The Company routinely posts important information for investors on its website (www.isabellabank.com and, more specifically, under the News tab at ir.isabellabank.com/news). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, the Company’s website is not incorporated by reference into, and is not a part of, this document.

Information in this press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. We intend such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result”, “expect”, “could”, “may”, “plan”, “believe”, “estimate”, “anticipate”, “strategy”, “trend”, “forecast”, “outlook”, “project”, “intend”, “assume”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may.

These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding risks and uncertainties to which the Company’s business and future financial performance are subject is contained in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents the Company files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Due to these and other possible uncertainties and risks, the Company cautions you not to unduly rely on forward-looking statements. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

The following table outlines selected financial data as of, and for the three-month periods ended:

			Three Months Ended
			June 30 2025						March 31 2025						December 31 2024						September 30 2024						June 30 2024
PER SHARE
Basic earnings			$	0.68					$	0.53					$	0.54					$	0.44					$	0.47
Diluted earnings			0.68						0.53						0.54						0.44						0.46
Core diluted earnings (1)			0.55						0.57						0.52						0.61						0.46
Dividends			0.28						0.28						0.28						0.28						0.28
Book value (2)			29.95						29.10						28.32						28.63						27.06
Tangible book value (1) (2)			23.39						22.58						21.82						22.14						20.60
Market price (2)			30.15						23.59						25.99						21.21						18.20
Common shares outstanding (2) (3)			7,361,684						7,408,010						7,424,893						7,438,720						7,474,016
Average number of diluted common shares outstanding (3)			7,398,109						7,432,162						7,451,718						7,473,184						7,494,828
PERFORMANCE RATIOS
Return on average total assets			0.96		%				0.77		%				0.76		%				0.62		%				0.68		%
Core return on average total assets (1)			0.79		%				0.83		%				0.74		%				0.87		%				0.68		%
Return on average shareholders' equity			9.19		%				7.48		%				7.47		%				6.26		%				6.97		%
Core return on average shareholders' equity (1)			7.48		%				8.05		%				7.29		%				8.70		%				6.96		%
Return on average tangible shareholders' equity (1)			11.78		%				9.65		%				9.66		%				8.15		%				9.19		%
Core return on average tangible shareholders' equity (1)			9.59		%				10.40		%				9.43		%				11.32		%				9.17		%
Net interest margin yield (fully taxable equivalent) (1)			3.14		%				3.06		%				2.98		%				2.96		%				2.82		%
Efficiency ratio (1)			70.53		%				71.73		%				71.08		%				72.30		%				73.93		%
Gross loan to deposit ratio (2)			75.57		%				76.07		%				81.48		%				79.93		%				80.22		%
Shareholders' equity to total assets (2)			10.23		%				10.25		%				10.08		%				10.11		%				9.82		%
Tangible shareholders' equity to tangible assets (1) (2)			8.17		%				8.14		%				7.95		%				8.00		%				7.65		%
ASSETS UNDER MANAGEMENT
Wealth assets under management (2)			678,959						656,617						658,042						679,858						647,850
ASSET QUALITY
Nonaccrual loans (2)			1,164						173						282						547						994
Foreclosed assets (2)			667						649						544						546						629
Net loan charge-offs (recoveries)			(1,432)						(52)						102						1,359						393
Net loan charge-offs (recoveries) to average loans outstanding			(0.10)		%				0.00		%				0.01		%				0.10		%				0.03		%
Nonperforming loans to gross loans (2)			0.09		%				0.01		%				0.02		%				0.04		%				0.07		%
Nonperforming assets to total assets (2)			0.09		%				0.04		%				0.04		%				0.06		%				0.08		%
Allowance for credit losses to gross loans (2)			0.93		%				0.93		%				0.91		%				0.89		%				0.95		%
CAPITAL RATIOS (2)
Tier 1 leverage			9.04		%				8.96		%				8.86		%				8.77		%				8.83		%
Common equity tier 1 capital			12.46		%				12.58		%				12.21		%				12.08		%				12.37		%
Tier 1 risk-based capital			12.46		%				12.58		%				12.21		%				12.08		%				12.37		%
Total risk-based capital			15.34		%				15.50		%				15.06		%				14.90		%				15.29		%

(1) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I

(2) At end of period

(3) Whole shares

The following schedules present yield and daily average amounts outstanding for each major category of interest earning assets, nonearning assets, interest bearing liabilities, and noninterest bearing liabilities. For analytical purposes, interest income is reported on a fully taxable equivalent (FTE) basis using a federal income tax rate of 21%. Federal Reserve Bank restricted equity holdings are included in other interest earning assets.

			Three Months Ended
			June 30 2025						March 31 2025						December 31 2024						September 30 2024						June 30 2024
INTEREST EARNING ASSETS
Loans (1)			5.71		%				5.71		%				5.66		%				5.72		%				5.50		%
Available-for-sale securities			2.38		%				2.20		%				2.15		%				2.17		%				2.17		%
Federal Home Loan Bank stock			8.94		%				5.82		%				5.25		%				5.26		%				4.97		%
Fed funds sold			3.83		%				4.32		%				4.54		%				5.36		%				5.30		%
Other			4.92		%				4.06		%				4.94		%				5.18		%				7.38		%
Total interest earning assets			4.81		%				4.75		%				4.72		%				4.75		%				4.59		%
INTEREST BEARING LIABILITIES
Interest bearing demand deposits			0.37		%				0.41		%				0.36		%				0.28		%				0.30		%
Money market deposits			2.55		%				2.58		%				2.71		%				2.77		%				2.85		%
Savings			0.76		%				0.76		%				0.64		%				0.61		%				0.56		%
Certificates of deposit			3.82		%				3.93		%				4.07		%				4.13		%				4.01		%
Short-term borrowings			3.11		%				3.18		%				3.22		%				3.17		%				3.18		%
Federal Home Loan Bank advances			4.53		%				4.53		%				4.88		%				5.52		%				5.55		%
Subordinated debt, net of unamortized issuance costs			3.61		%				3.62		%				3.62		%				3.62		%				3.63		%
Total interest bearing liabilities			2.24		%				2.26		%				2.38		%				2.42		%				2.38		%
Net yield on interest earning assets (FTE) (2)			3.14		%				3.06		%				2.98		%				2.96		%				2.82		%
Net interest spread			2.57		%				2.49		%				2.34		%				2.33		%				2.21		%

(1) Includes loans held-for-sale and nonaccrual loans

(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I

			Three Months Ended
			June 30 2025						March 31 2025						December 31 2024						September 30 2024						June 30 2024
INTEREST EARNING ASSETS
Loans (1)			$	1,388,684					$	1,370,765					$	1,412,578					$	1,403,810					$	1,375,523
Available-for-sale securities (2)			534,352						514,479						522,733						536,379						545,827
Federal Home Loan Bank stock			5,600						11,011						12,762						12,762						12,762
Fed funds sold			6						4						8						4						7
Other (3)			20,487						47,374						15,905						14,597						14,054
Total interest earning assets			1,949,129						1,943,633						1,963,986						1,967,552						1,948,173
NONEARNING ASSETS
Allowance for credit losses			(13,369)						(12,884)						(12,598)						(13,125)						(13,431)
Cash and demand deposits due from banks			22,026						23,899						22,800						25,903						23,931
Premises and equipment			28,306						27,962						27,773						27,868						27,999
Other assets			106,595						102,927						92,608						87,002						80,539
Total assets			$	2,092,687					$	2,085,537					$	2,094,569					$	2,095,200					$	2,067,211
INTEREST BEARING LIABILITIES
Interest bearing demand deposits			$	236,076					$	240,860					$	232,271					$	232,018					$	238,866
Money market deposits			449,110						460,663						436,235						451,216						434,061
Savings			286,434						286,364						276,856						274,828						283,605
Certificates of deposit			395,450						387,820						386,871						375,936						366,440
Short-term borrowings			41,661						43,563						50,862						48,304						40,609
Federal Home Loan Bank advances			11,539						3,333						28,261						40,435						45,494
Subordinated debt, net of unamortized issuance costs			29,455						29,433						29,410						29,388						29,365
Total interest bearing liabilities			1,449,725						1,452,036						1,440,766						1,452,125						1,438,440
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY
Demand deposits			409,262						403,024						425,116						418,973						411,282
Other liabilities			14,158						16,265						15,775						15,658						16,755
Shareholders’ equity			219,542						214,212						212,912						208,444						200,734
Total liabilities and shareholders’ equity			$	2,092,687					$	2,085,537					$	2,094,569					$	2,095,200					$	2,067,211

(1) Includes loans held-for-sale and nonaccrual loans

(2) Average balances for available-for-sale securities are based on amortized cost

(3) Includes average interest-bearing deposits with other banks, net of Federal Reserve daily cash letter

The following table outlines our asset quality analysis as of, and for the three-month periods ended:

			June 30 2025						March 31 2025						December 31 2024						September 30 2024						June 30 2024
NONPERFORMING ASSETS
Commercial and industrial			$	17					$	—					$	—					$	120					$	271
Commercial real estate			533						—						—						—						—
Agricultural			—						—						—						—						167
Residential real estate			614						173						282						427						556
Consumer			—						—						—						—						—
Total nonaccrual loans			1,164						173						282						547						994
Accruing loans past due 90 days or more			31						26						19						64						15
Total nonperforming loans			1,195						199						301						611						1,009
Foreclosed assets			667						649						544						546						629
Debt securities			—						—						—						12						12
Total nonperforming assets			$	1,862					$	848					$	845					$	1,169					$	1,650
Nonperforming loans to gross loans			0.09		%				0.01		%				0.02		%				0.04		%				0.07		%
Nonperforming assets to total assets			0.09		%				0.04		%				0.04		%				0.06		%				0.08		%
Allowance for credit losses as a % of nonaccrual loans (1)			N/M						N/M						N/M						N/M						N/M
ALLOWANCE FOR CREDIT LOSSES
Allowance at beginning of period			$	12,735					$	12,895					$	12,635					$	13,095					$	13,390
Charge-offs			390						172						299						1,767						527
Recoveries			1,822						224						197						408						134
Net loan charge-offs (recoveries)			(1,432)						(52)						102						1,359						393
(Reversal of) provision for credit losses - loans			(1,190)						(212)						362						899						98
Allowance at end of period			$	12,977					$	12,735					$	12,895					$	12,635					$	13,095
Allowance for credit losses to gross loans			0.93		%				0.93		%				0.91		%				0.89		%				0.95		%
Reserve for unfunded commitments			708						617						512						498						450
Provision for credit losses - unfunded commitments			91						105						14						47						72
Reserve to unfunded commitments			0.16		%				0.14		%				0.15		%				0.15		%				0.14		%
NET LOAN CHARGE-OFFS (RECOVERIES)
Commercial and industrial			$	68					$	(80)					$	13					$	(6)					$	334
Commercial real estate			(50)						(2)						(2)						(318)						(29)
Agricultural			—						—						(4)						—						—
Residential real estate			(16)						(13)						(16)						(20)						(19)
Consumer			(1,434)						43						111						1,703						107
Total			$	(1,432)					$	(52)					$	102					$	1,359					$	393
Net (recoveries) charge-offs (Quarter to Date annualized to average loans)			(0.41)		%				(0.02)		%				0.03		%				0.39		%				0.11		%
Net (recoveries) charge-offs (Year to Date annualized to average loans)			(0.22)		%				(0.02)		%				0.14		%				0.17		%				0.06		%
DELINQUENT AND NONACCRUAL LOANS
Accruing loans 30-89 days past due			$	1,076					$	5,555					$	5,682					$	2,226					$	1,484
Accruing loans past due 90 days or more			31						26						19						64						15
Total accruing past due loans			1,107						5,581						5,701						2,290						1,499
Nonaccrual loans			1,164						173						282						547						994
Total past due and nonaccrual loans			$	2,271					$	5,754					$	5,983					$	2,837					$	2,493

(1) N/M: Not meaningful

(1) Certain amounts reported as commercial and industrial loans have been reclassified as commercial real estate loans to conform to the June 30, 2025 presentation

(1) Includes reversal of provision for credit losses in the first quarter of 2025 and provision for credit losses in the third quarter of 2024 related to overdrawn deposit accounts from a single customer.

(2) Included in Other professional services in the consolidated statements of income

(3) Income tax expense on life to date earnings on bank-owned life insurance policies surrendered

(4) Included as a reduction to Earnings on bank-owned life insurance policies in the consolidated statements of income

(5) Whole shares