Exhibit 99.1

Isabella Bank Corporation Reports First Quarter 2025 Results

MT. PLEASANT, MICHIGAN — April 17, 2025 — Isabella Bank Corporation (OTCQX: ISBA) (the “Company” or "we") reported first quarter 2025 net income of $3.9 million, or $0.53 per diluted share, compared to $3.1 million, or $0.42 per diluted share in the same quarter of 2024. The non-GAAP measure of core earnings in the first quarter 2025 totaled $4.3 million, or $0.57 per diluted share, compared to $3.1 million, or $0.41 per diluted share for the same quarter of 2024.

FIRST QUARTER 2025 HIGHLIGHTS (compared to first quarter 2024, unless otherwise stated)

•Return on assets (ROA) of 0.77%, up from 0.61%

•Commercial & industrial loan growth of 7%, annualized

•Non-maturity deposit growth of 14%, annualized

•Net interest margin of 3.06%, up from 2.79%

•Annualized net loan recoveries to average loans of 0.02%, compared to net charge-offs of 0.01%

“The Company had a strong first quarter as we expanded net interest margin (NIM), increased fee-based income and continued to improve credit quality,” said Jerome Schwind, Chief Executive Officer. “NIM has continued an upward trend since the first quarter of 2024 because of earning asset repricing and a lower cost of funds.

"In addition, our credit quality remains strong, and we have a successful history of collecting even when loans are charged off. In the first quarter, we recovered a significant amount of contractual interest related to nonperforming loans, which improved NIM by four basis points. Additionally, in the first week of April, we fully recovered a $1.6 million overdraft charge that was incurred in the third quarter of 2024. All loans to the overdrawn customer have been paid in full. Our ability to recover funds is a testament to our disciplined approach to credit quality and the strong relationships that we build in the communities we serve."

Schwind said the company also executed a strategy during the quarter to restructure a large portion of our bank-owned life insurance policies into a higher-yielding separate account. "While some new policies were added and accretive in the first quarter," he said, "the full transition and impact is expected by the third quarter 2025. We also have completed a study of all other components of fee-based income, and revenue enhancements are expected to launch by the end of the third quarter 2025.

“We are pleased with our start to 2025," Schwind added. "Our team is committed to our customers and communities, and we continue to focus on our fee businesses, balance sheet management, and credit performance. These strategic priorities drive all areas of revenue and expense control, expanding both return on assets and return on capital for the long term.”

FINANCIAL CONDITION (March 31, 2025 compared to December 31, 2024, unless otherwise noted)

Total assets were $2.1 billion, up $16.3 million, primarily due to an increase of $38.7 million in interest bearing cash, $19.0 million in gross securities, and $11.0 million increase in bank-owned life insurance (BOLI) assets, offset by a $60.1 million decrease in advances to mortgage brokers.

Available-for-sale (AFS) securities at fair value were $513.0 million, growing $24.0 million at the end of first quarter 2025. The increase was driven by $40.4 million in purchases of collateralized mortgage obligation securities with a weighted-average yield of 4.56%. Amortization and maturities of $21.1 million partially offset the increase from purchases. Net unrealized losses on securities totaled $21.5 million and $26.5 million at the end of the first and

---

fourth quarters, respectively. Net unrealized losses as a percentage of total AFS securities decreased to 4% from 5% at the end of the fourth quarter of 2024 due to the treasury portfolio rapidly approaching maturity and a decrease in market yields. The par value and corresponding book yields that are estimated to mature or pay off by year include: $54.5 million in principal with a weighted-average book yield of 2.34% over the remainder of 2025; $217.4 million at 1.17% in 2026; and $63.4 million at 1.86% in 2027. Some of these securities amortize so the actual principal paydown may differ from these estimates.

Total loans were $1.4 billion at the end of the first quarter, down $55.8 million mostly due to a $60.1 million decrease in advances to mortgage brokers. However, the decline in this non-core loan product has provided liquidity and the opportunity to refocus on loans that can be recorded on our balance sheet for longer terms and help to mitigate interest rate risk.

Core loans, which excludes advances to mortgage brokers, grew $4.2 million, driven by the commercial real estate (CRE) and commercial and industrial loan portfolios of $4.8 million and $4.3 million, respectively. Loan growth during the first quarter primarily was in the construction, real estate, and hospitality industries. The commercial pipeline is robust, with some anticipated loan closings in the first quarter extended into the second quarter 2025. Residential mortgages increased $6.5 million. Customers are favoring adjustable-rate loans, which are put on the balance sheet rather than sold in the secondary market. Core loan growth during the quarter was offset by a decline in the agricultural and consumer loan portfolios that continue to roll off amid decreasing demand, competition and our adherence to credit quality standards.

The allowance for credit losses decreased $160 thousand to $12.7 million at the end of the first quarter of 2025. The decline mostly reflects improvement in historical loss experience, driven by recoveries from three previously charged-off loans in the quarter totaling $136 thousand, which led to an $88 thousand reduction in the allowance. Nonaccrual loan balances decreased $109 thousand to $173 thousand. Past due and accruing accounts between 30 to 89 days, as a percentage of total loans, was 0.41% compared to 0.40% at the end of fourth quarter 2024.

BOLI assets increased by $11.0 million from December, mostly due to a $10.6 million investment of new policies in a separate account product at the beginning of January. The investment transaction included a surrender of $5.4 million of existing general account policies and redeployment into a separate account BOLI. As part of BOLI restructuring, another $9 million of general account policies will be exchanged for separate account BOLI, which is expected to be completed by the end of third quarter. The separate account BOLI currently yields 5.4%, compared to a weighted-average yield of 2.9% from existing general account policies.

Total deposits were $1.80 billion, increasing $50.8 million, at the end of the first quarter. The growth was driven by the interest-bearing demand, money market, and savings deposits, collectively increasing $60.4 million as we continue to deepen customer relationships. Certificates of Deposit accounts were up $2.6 million, driven by the rate environment.

Tangible book value per share was $22.58 as of March 31, 2025, compared to $21.82. Net unrealized losses on AFS securities reduced tangible book value per share by $2.30 and $2.82 for the respective periods. Share repurchases totaled 45,582 during the first quarter for a value of $1.1 million at an average price of $25.12.

RESULTS OF OPERATIONS (March 31, 2025 to March 31, 2024 quarterly comparison, unless otherwise noted)

NIM was 3.06%, an increase from 2.98% in the fourth quarter 2024 and from 2.79% in the first quarter of 2024. During the first quarter, we recovered the full contractual interest from nonaccruing loans that paid off, which contributed four basis points to NIM. The book yield from securities was 2.20% and 2.25% during the first quarters of 2025 and 2024, respectively. The yield on loans expanded to 5.71% in the first quarter, up from 5.38% in the same quarter of 2024. Excluding loan recoveries, the yield on loans was 5.65%. The expansion in loan yields was a result of higher rates on new loans and variable rate commercial loans that have, and continue to, reprice. At the end of the first quarter, approximately 39% of commercial loans were fixed at rates lower than current market rates, but the majority will contractually reprice to variable rates over the next four years. Cost of interest-bearing liabilities was 2.26%, decreasing from 2.28% in the first quarter of 2024, and 2.38% in the previous quarter, due to reductions to rates in the money market and certificate of deposit products.

---

The provision for credit losses in the first quarter 2025 was a credit of $107 thousand, which reflects the $160 thousand change in the allowance for credit losses on loans and net recoveries totaling $52 thousand, offset by an increase in the reserve for unfunded commitments. The provision for loan losses in the same period of 2024 was $392 thousand reflecting $265 thousand for specific reserves and $46 thousand in net charge-offs.

Noninterest income was $3.5 million in the first quarter of 2025, the same as in the first quarter of 2024. Wealth management income increased $40 thousand on relatively flat assets under management (AUM) as compared to AUM in the first quarter of 2024. AUM in the first quarter 2025 decreased 0.22% while the S&P 500 declined 4.6% in the same period. Earnings on BOLI policies increased $129 thousand over the prior year quarter due to new investments in a separate account BOLI. Other noninterest income in the first quarter 2025 included a $55 thousand loss on foreclosed assets, compared to a $69 thousand gain in the first quarter 2024.

Noninterest expenses were $13.3 million in the first quarter 2025 compared to $12.7 million in same quarter of 2024. The change mostly was due to higher compensation and benefit expenses totaling $368 thousand, which reflect annual merit increases in 2025 and more medical insurance claims compared to the first quarter of 2024. Professional services included $121 thousand in legal fees related to our previously announced Nasdaq uplisting application.

Income tax expense was $912 thousand, compared to $511 thousand in the first quarter of 2024 and the effective tax rate (ETR) was 19% and 14%, respectively. The ETR in the first quarter 2025 included a one-time expense totaling $166 thousand due to the taxes owed from the lifetime earnings on BOLI policies that were surrendered during the quarter. Excluding the one-time charge, the ETR was 15%, which is higher than the prior year quarter on higher pretax income.

---

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 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. 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 investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.com).

Contact

Lori Peterson, Director of Marketing

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

Forward-Looking Statements

Information in this 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”, “plan”, “believe”, “estimate”, “anticipate”, “strategy”, “trend”, “forecast”, “outlook”, “project”, “intend”, “assume”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “comfortable”, “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. 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. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, or included in any subsequent filing by the Company with the Securities and Exchange Commission. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Company cautions you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results. 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.

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. A reconciliation of non-GAAP financial measures to GAAP measures is provided in this release.

Table Index			Consolidated Financial Schedules (Unaudited)
A			Selected Financial Data
B			Consolidated Balance Sheets - Quarterly Trend
C			Consolidated Statements of Income
D			Consolidated Statements of Income - Quarterly Trend
E			Average Yields and Costs
F			Average Balances
G			Asset Quality Analysis
H			Consolidated Loan and Deposit Analysis
I			Reconciliation of Non-GAAP Financial Measures

---

SELECTED FINANCIAL DATA (UNAUDITED)

(Dollars in thousands except per share amounts and ratios)

			Three Months Ended
			March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024
PER SHARE
Basic earnings			$	0.53					$	0.54					$	0.44					$	0.47					$	0.42
Diluted earnings			0.53						0.54						0.44						0.46						0.42
Core diluted earnings (1)			0.57						0.52						0.61						0.46						0.41
Dividends			0.28						0.28						0.28						0.28						0.28
Book value (2)			29.10						28.32						28.63						27.06						26.80
Tangible book value (2)			22.58						21.82						22.14						20.60						20.35
Market price (2)			23.59						25.99						21.21						18.20						19.40
Common shares outstanding (2) (3)			7,408,010						7,424,893						7,438,720						7,474,016						7,488,101
Average number of diluted common shares outstanding (3)			7,432,162						7,451,718						7,473,184						7,494,828						7,507,739
PERFORMANCE RATIOS
Return on average total assets			0.77		%				0.76		%				0.62		%				0.68		%				0.61		%
Core return on average total assets (1)			0.83		%				0.74		%				0.87		%				0.68		%				0.60		%
Return on average shareholders' equity			7.48		%				7.47		%				6.26		%				6.97		%				6.19		%
Core return on average shareholders' equity (1)			8.05		%				7.29		%				8.70		%				6.96		%				6.08		%
Return on average tangible shareholders' equity			9.65		%				9.66		%				8.15		%				9.19		%				8.12		%
Core return on average tangible shareholders' equity (1)			10.40		%				9.43		%				11.32		%				9.17		%				7.97		%
Net interest margin yield (fully taxable equivalent) (1)			3.06		%				2.98		%				2.96		%				2.82		%				2.79		%
Efficiency ratio (1)			72.39		%				71.20		%				72.30		%				73.93		%				74.84		%
Gross loan to deposit ratio (2)			76.07		%				81.48		%				79.93		%				80.22		%				77.22		%
Shareholders' equity to total assets (2)			10.25		%				10.08		%				10.11		%				9.82		%				9.75		%
Tangible shareholders' equity to tangible assets (2)			8.14		%				7.95		%				8.00		%				7.65		%				7.58		%
ASSETS UNDER MANAGEMENT
Wealth assets under management (2)			656,617						658,042						679,858						647,850						660,645
ASSET QUALITY
Nonaccrual loans (2)			173						282						547						994						1,283
Foreclosed assets (2)			649						544						546						629						579
Net loan charge-offs (recoveries)			(52)						102						1,359						393						46
Net loan charge-offs (recoveries) to average loans outstanding			0.00		%				0.01		%				0.10		%				0.03		%				0.00		%
Nonperforming loans to gross loans (2)			0.01		%				0.02		%				0.04		%				0.07		%				0.09		%
Nonperforming assets to total assets (2)			0.04		%				0.04		%				0.06		%				0.08		%				0.09		%
Allowance for credit losses to gross loans (2)			0.93		%				0.91		%				0.89		%				0.95		%				0.98		%
CAPITAL RATIOS (2)
Tier 1 leverage			8.96		%				8.86		%				8.77		%				8.83		%				8.80		%
Common equity tier 1 capital			12.48		%				12.21		%				12.08		%				12.37		%				12.36		%
Tier 1 risk-based capital			12.48		%				12.21		%				12.08		%				12.37		%				12.36		%
Total risk-based capital			15.37		%				15.06		%				14.90		%				15.29		%				15.31		%

(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

A

---

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

			March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024
ASSETS
Cash and demand deposits due from banks			$	28,786					$	22,830					$	27,019					$	22,690					$	22,987
Fed Funds sold and interest bearing balances due from banks			40,393						1,712						359						869						2,231
Total cash and cash equivalents			69,179						24,542						27,378						23,559						25,218
Available-for-sale securities, at fair value			513,040						489,029						506,806						505,646						517,585
Federal Home Loan Bank stock			5,600						12,762						12,762						12,762						12,762
Mortgage loans held-for-sale			127						242						504						637						366
Loans			1,367,724						1,423,571						1,424,283						1,381,636						1,365,508
Less allowance for credit losses			12,735						12,895						12,635						13,095						13,390
Net loans			1,354,989						1,410,676						1,411,648						1,368,541						1,352,118
Premises and equipment			28,108						27,659						27,674						27,843						27,951
Cash surrender value of bank-owned life insurance policies			45,833						34,882						34,625						34,382						34,131
Goodwill and other intangible assets			48,282						48,283						48,283						48,283						48,284
Other assets			37,429						38,166						37,221						38,486						39,161
Total assets			$	2,102,587					$	2,086,241					$	2,106,901					$	2,060,139					$	2,057,576
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Demand deposits			$	404,194					$	416,373					$	421,493					$	412,193					$	413,272
Interest bearing demand deposits			243,939						237,548						228,902						232,660						250,314
Money market deposits			473,138						423,883						471,745						429,150						453,014
Savings			286,399						281,665						276,095						279,847						285,564
Certificates of deposit			390,239						387,591						383,597						368,449						366,143
Total deposits			1,797,909						1,747,060						1,781,832						1,722,299						1,768,307
Short-term borrowings			47,310						53,567						52,434						44,194						42,998
Federal Home Loan Bank advances			—						30,000						15,000						45,000						—
Subordinated debt, net of unamortized issuance costs			29,447						29,424						29,402						29,380						29,357
Total borrowed funds			76,757						112,991						96,836						118,574						72,355
Other liabilities			12,365						15,914						15,248						17,017						16,240
Total liabilities			1,887,031						1,875,965						1,893,916						1,857,890						1,856,902
Shareholders’ equity
Common stock			125,547						126,224						125,218						126,126						126,656
Shares to be issued for deferred compensation obligations			2,508						2,383						3,981						3,951						3,890
Retained earnings			104,940						103,024						101,065						99,808						98,318
Accumulated other comprehensive income (loss)			(17,439)						(21,355)						(17,279)						(27,636)						(28,190)
Total shareholders’ equity			215,556						210,276						212,985						202,249						200,674
Total liabilities and shareholders' equity			$	2,102,587					$	2,086,241					$	2,106,901					$	2,060,139					$	2,057,576

B

---

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share amounts)

															Three Months Ended   March 31
															2025						2024
Interest income
Loans															$	19,348					$	18,057
Available-for-sale securities															2,643						2,884
Federal Home Loan Bank stock															160						146
Federal funds sold and other															482						293
Total interest income															22,633						21,380
Interest expense
Deposits															7,463						7,163
Short-term borrowings															341						321
Federal Home Loan Bank advances															38						388
Subordinated debt															266						266
Total interest expense															8,108						8,138
Net interest income															14,525						13,242
Provision for credit losses															(107)						392
Net interest income after provision for credit losses															14,632						12,850
Noninterest income
Service charges and fees															1,974						1,933
Wealth management fees															979						939
Earnings on bank-owned life insurance policies															372						243
Net gain on sale of mortgage loans															30						34
Other															173						319
Total noninterest income															3,528						3,468
Noninterest expenses
Compensation and benefits															7,383						7,015
Occupancy and equipment															2,600						2,706
Other professional services															711						513
ATM and debit card fees															486						469
Marketing															459						426
FDIC insurance premiums															303						252
Other															1,357						1,295
Total noninterest expenses															13,299						12,676
Income before income tax expense															4,861						3,642
Income tax expense															912						511
Net income															$	3,949					$	3,131
Earnings per common share
Basic															$	0.53					$	0.42
Diluted															0.53						0.42
Cash dividends per common share															0.28						0.28

C

---

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share amounts)

			Three Months Ended
			March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024
Interest income
Loans			$	19,348					$	20,145					$	20,230					$	18,863					18,057
Available-for-sale securities			2,643						2,656						2,749						2,804						2,884
Federal Home Loan Bank stock			160						168						168						158						146
Federal funds sold and other			482						200						194						263						293
Total interest income			22,633						23,169						23,341						22,088						21,380
Interest expense
Deposits			7,463						7,583						7,631						7,313						7,163
Short-term borrowings			341						413						384						321						321
Federal Home Loan Bank advances			38						352						571						638						388
Subordinated debt			266						266						267						266						266
Total interest expense			8,108						8,614						8,853						8,538						8,138
Net interest income			14,525						14,555						14,488						13,550						13,242
Provision for credit losses			(107)						376						946						170						392
Net interest income after provision for credit losses			14,632						14,179						13,542						13,380						12,850
Noninterest income
Service charges and fees			1,974						2,186						2,133						2,023						1,933
Wealth management fees			979						1,051						1,003						1,048						939
Earnings on bank-owned life insurance policies			372						259						252						253						243
Net gain on sale of mortgage loans			30						75						37						67						34
Other			173						401						103						217						319
Total noninterest income			3,528						3,972						3,528						3,608						3,468
Noninterest expenses
Compensation and benefits			7,383						7,340						7,251						6,970						7,015
Occupancy and equipment			2,600						2,554						2,645						2,619						2,706
Other professional services			711						584						588						527						513
ATM and debit card fees			486						516						503						487						469
Marketing			459						458						403						425						426
FDIC insurance premiums			303						309						291						280						252
Other			1,357						1,569						1,547						1,587						1,295
Total noninterest expenses			13,299						13,330						13,228						12,895						12,676
Income before income tax expense			4,861						4,821						3,842						4,093						3,642
Income tax expense			912						825						561						612						511
Net income			$	3,949					$	3,996					$	3,281					$	3,481					$	3,131
Earnings per common share
Basic			$	0.53					$	0.54					$	0.44					$	0.47					$	0.42
Diluted			0.53						0.54						0.44						0.46						0.42
Cash dividends per common share			0.28						0.28						0.28						0.28						0.28

D

---

AVERAGE YIELDS AND COSTS (UNAUDITED)

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
			March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024
INTEREST EARNING ASSETS
Loans (1)			5.71		%				5.66		%				5.72		%				5.50		%				5.38		%
Available-for-sale securities			2.20		%				2.15		%				2.17		%				2.17		%				2.25		%
Federal Home Loan Bank stock			5.82		%				5.25		%				5.26		%				4.97		%				4.57		%
Fed funds sold			4.32		%				4.54		%				5.36		%				5.30		%				5.43		%
Other			4.06		%				4.94		%				5.18		%				7.38		%				4.66		%
Total interest earning assets			4.75		%				4.72		%				4.75		%				4.59		%				4.47		%
INTEREST BEARING LIABILITIES
Interest bearing demand deposits			0.41		%				0.36		%				0.28		%				0.30		%				0.33		%
Money market deposits			2.58		%				2.71		%				2.77		%				2.85		%				2.86		%
Savings			0.76		%				0.64		%				0.61		%				0.56		%				0.47		%
Certificates of deposit			3.93		%				4.07		%				4.13		%				4.01		%				3.84		%
Short-term borrowings			3.18		%				3.22		%				3.17		%				3.18		%				3.17		%
Federal Home Loan Bank advances			4.53		%				4.88		%				5.52		%				5.55		%				5.54		%
Subordinated debt, net of unamortized issuance costs			3.62		%				3.62		%				3.62		%				3.63		%				3.63		%
Total interest bearing liabilities			2.26		%				2.38		%				2.42		%				2.38		%				2.28		%
Net yield on interest earning assets (FTE) (2)			3.06		%				2.98		%				2.96		%				2.82		%				2.79		%
Net interest spread			2.49		%				2.34		%				2.33		%				2.21		%				2.19		%

(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

E

---

AVERAGE BALANCES (UNAUDITED)

(Dollars in thousands)

			Three Months Ended
			March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024
INTEREST EARNING ASSETS
Loans (1)			$	1,370,765					$	1,412,578					$	1,403,810					$	1,375,523					$	1,348,749
Available-for-sale securities (2)			514,479						522,733						536,379						545,827						557,030
Federal Home Loan Bank stock			11,011						12,762						12,762						12,762						12,762
Fed funds sold			4						8						4						7						7
Other (3)			47,374						15,905						14,597						14,054						25,210
Total interest earning assets			1,943,633						1,963,986						1,967,552						1,948,173						1,943,758
NONEARNING ASSETS
Allowance for credit losses			(12,884)						(12,598)						(13,125)						(13,431)						(13,100)
Cash and demand deposits due from banks			23,899						22,800						25,903						23,931						24,018
Premises and equipment			27,962						27,773						27,868						27,999						28,022
Other assets			102,927						92,608						87,002						80,539						84,059
Total assets			$	2,085,537					$	2,094,569					$	2,095,200					$	2,067,211					$	2,066,757
INTEREST BEARING LIABILITIES
Interest bearing demand deposits			$	240,860					$	232,271					$	232,018					$	238,866					$	245,299
Money market deposits			460,663						436,235						451,216						434,061						451,476
Savings			286,364						276,856						274,828						283,605						282,971
Certificates of deposit			387,820						386,871						375,936						366,440						357,541
Short-term borrowings			43,563						50,862						48,304						40,609						40,623
Federal Home Loan Bank advances			3,333						28,261						40,435						45,494						27,692
Subordinated debt, net of unamortized issuance costs			29,433						29,410						29,388						29,365						29,342
Total interest bearing liabilities			1,452,036						1,440,766						1,452,125						1,438,440						1,434,944
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY
Demand deposits			403,024						425,116						418,973						411,282						412,228
Other liabilities			16,265						15,775						15,658						16,755						16,151
Shareholders’ equity			214,212						212,912						208,444						200,734						203,434
Total liabilities and shareholders’ equity			$	2,085,537					$	2,094,569					$	2,095,200					$	2,067,211					$	2,066,757

(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

F

---

ASSET QUALITY ANALYSIS (UNAUDITED)

(Dollars in thousands)

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

			March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024
NONPERFORMING ASSETS
Commercial and industrial			$	—					$	—					$	120					$	271					$	567
Commercial real estate			—						—						—						—						234
Agricultural			—						—						—						167						189
Residential real estate			173						282						427						556						293
Consumer			—						—						—						—						—
Total nonaccrual loans			173						282						547						994						1,283
Accruing loans past due 90 days or more			26						19						64						15						—
Total nonperforming loans			199						301						611						1,009						1,283
Foreclosed assets			649						544						546						629						579
Debt securities			—						—						12						12						12
Total nonperforming assets			$	848					$	845					$	1,169					$	1,650					$	1,874
Nonperforming loans to gross loans			0.01		%				0.02		%				0.04		%				0.07		%				0.09		%
Nonperforming assets to total assets			0.04		%				0.04		%				0.06		%				0.08		%				0.09		%
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			$	12,895					$	12,635					$	13,095					$	13,390					$	13,108
Charge-offs			172						299						1,767						527						191
Recoveries			224						197						408						134						145
Net loan charge-offs (recoveries)			(52)						102						1,359						393						46
Provision for credit losses - loans			(212)						362						899						98						328
Allowance at end of period			$	12,735					$	12,895					$	12,635					$	13,095					$	13,390
Allowance for credit losses to gross loans			0.93		%				0.91		%				0.89		%				0.95		%				0.98		%
Reserve for unfunded commitments			617						512						498						450						379
Provision for credit losses - unfunded commitments			105						14						47						72						64
Reserve to unfunded commitments			0.14		%				0.15		%				0.15		%				0.14		%				0.11		%
NET LOAN CHARGE-OFFS (RECOVERIES)
Commercial and industrial			$	(80)					$	13					$	(6)					$	334					$	(2)
Commercial real estate			(2)						(2)						(318)						(29)						(6)
Agricultural			—						(4)						—						—						(2)
Residential real estate			(13)						(16)						(20)						(19)						(63)
Consumer			43						111						1,703						107						119
Total			$	(52)					$	102					$	1,359					$	393					$	46
Net (recoveries) charge-offs (Quarter to Date annualized to average loans)			(0.02)		%				0.03		%				0.39		%				0.11		%				0.01		%
Net (recoveries) charge-offs (Year to Date annualized to average loans)			(0.02)		%				0.14		%				0.17		%				0.00		%				0.01		%
DELINQUENT AND NONACCRUAL LOANS
Accruing loans 30-89 days past due			$	5,555					$	5,682					$	2,226					$	1,484					$	7,938
Accruing loans past due 90 days or more			26						19						64						15						—
Total accruing past due loans			5,581						5,701						2,290						1,499						7,938
Nonaccrual loans			173						282						547						994						1,283
Total past due and nonaccrual loans			$	5,754					$	5,983					$	2,837					$	2,493					$	9,221

(1) N/M: Not meaningful

G

---

CONSOLIDATED LOAN AND DEPOSIT ANALYSIS (UNAUDITED)

(Dollars in thousands)

Loan Analysis

			March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024						Annualized Growth % Quarter to Date
Commercial and industrial			$	249,220					$	244,894					$	240,589					$	238,245					$	226,281					7.07		%
Commercial real estate			552,234						547,447						547,038						547,005						561,123						3.50		%
Advances to mortgage brokers			3,015						63,080						76,187						39,300						29,688						N/M
Agricultural			94,359						99,694						96,794						94,996						93,695						(21.41)		%
Total commercial loans			898,828						955,115						960,608						919,546						910,787						(23.57)		%
Residential real estate			387,348						380,872						369,846						365,188						356,658						6.80		%
Consumer			81,548						87,584						93,829						96,902						98,063						(27.57)		%
Gross loans			$	1,367,724					$	1,423,571					$	1,424,283					$	1,381,636					$	1,365,508					(15.69)		%

Deposit Analysis

			March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024						Annualized Growth % Quarter to Date
Noninterest bearing demand deposits			$	404,194					$	416,373					$	421,493					$	412,193					$	413,272					(11.70)		%
Interest bearing demand deposits			243,939						237,548						228,902						232,660						250,314						10.76		%
Money market deposits			473,138						423,883						471,745						429,150						453,014						46.48		%
Savings			286,399						281,665						276,095						279,847						285,564						6.72		%
Certificates of deposit			390,239						387,591						383,597						368,449						366,143						2.73		%
Total deposits			$	1,797,909					$	1,747,060					$	1,781,832					$	1,722,299					$	1,768,307					11.64		%

H

---

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands except per share amounts and ratios)

						Three Months Ended
						March 31 2025						December 31 2024						September 30 2024						June 30 2024						March 31 2024
Net income						$	3,949					$	3,996					$	3,281					$	3,481					$	3,131
Nonrecurring items
Net gains (losses) on foreclosed assets						(55)						74						4						6						69
Overdraft (charge-off) recoveries (1)						—						66						(1,622)						—						—
Profitability initiative cost						—						(23)						—						—						—
Legal fees related to Nasdaq (2)						(121)						—						—						—						—
Income tax impact						37						(25)						340						(1)						(14)
Tax expense on bank-owned life insurance surrender (3)						(166)						—						—						—						—
Total nonrecurring items						(305)						92						(1,278)						5						55
Core net income			(A)			$	4,254					$	3,904					$	4,559					$	3,476					$	3,076
Noninterest expenses						$	13,299					$	13,330					$	13,228					$	12,895					$	12,676
Amortization of acquisition intangibles						1						1						—						1						—
Core noninterest expense			(B)			$	13,298					$	13,329					$	13,228					$	12,894					$	12,676
Net interest income						$	14,525					$	14,555					$	14,488					$	13,550					$	13,242
Tax equivalent adjustment for net interest margin						184						213						232						237						246
Net interest income (FTE)			(C)			14,709						14,768						14,720						13,787						13,488
Noninterest income						3,528						3,972						3,528						3,608						3,468
Tax equivalent adjustment for efficiency ratio						78						54						53						53						51
Core revenue (FTE)						18,315						18,794						18,301						17,448						17,007
Nonrecurring items
Net gains (losses) on foreclosed assets						(55)						74						4						6						69
Total nonrecurring items						(55)						74						4						6						69
Core revenue			(D)			$	18,370					$	18,720					$	18,297					$	17,442					$	16,938
Efficiency ratio			(B/D)			72.39		%				71.20		%				72.30		%				73.93		%				74.84		%
Average earning assets			(E)			1,943,633						1,963,986						1,967,552						1,948,173						1,943,758
Net yield on interest earning assets (FTE)			(C/E)			3.06		%				2.98		%				2.96		%				2.82		%				2.79		%
Average assets			(F)			2,085,537						2,094,569						2,095,200						2,067,211						2,066,757
Average shareholders' equity			(G)			214,212						212,912						208,444						200,734						203,434
Average tangible shareholders' equity			(H)			165,929						164,629						160,161						152,451						155,150
Average diluted shares outstanding (4)			(I)			7,432,162						7,451,718						7,473,184						7,494,828						7,507,739
Core diluted earnings per share			(A/I)			$	0.57					$	0.52					$	0.61					$	0.46					$	0.41
Core return on average assets			(A/F)			0.83		%				0.74		%				0.87		%				0.68		%				0.60		%
Core return on average shareholders' equity			(A/G)			8.05		%				7.29		%				8.70		%				6.96		%				6.08		%
Core return on average tangible shareholders' equity			(A/H)			10.40		%				9.43		%				11.32		%				9.17		%				7.97		%

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

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

(3) Surrender fees related to transition from general to separate bank-owned life insurance policies

(4) Whole shares

I