v3.25.2
Capital Ratios and Shareholders' Equity
 6 Months Ended
Jun. 30, 2025
Equity [Abstract]  
Equity Capital Ratios and Shareholders' Equity
As of June 30, 2025 and December 31, 2024, the most recent notifications from the FRB and the FDIC categorized us as “well capitalized” under the FDIC's regulatory framework for prompt corrective action and the Basel III capital guidelines. To be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1, and Tier 1 leverage ratios as set forth in the following tables. The minimum requirements presented below include the minimum required capital levels based on the Basel III capital guidelines. Capital requirements to be considered “well capitalized” are based upon the FDIC's prompt corrective action regulations, as amended to reflect the changes under the Basel III capital guidelines. There were no conditions or events since the notifications that we believe have changed our categories. The following tables set forth these requirements and our ratios, both on a bank-only and on a consolidated basis, as of:
June 30, 2025
ActualMinimum Capital
Required Plus Capital Conservation Buffer
Minimum Capital
Required To Be Considered
Well Capitalized (1)
AmountRatioAmountRatioAmountRatio
Common equity Tier 1 capital to risk weighted assets
Isabella Bank$181,950 12.18 %$104,553 7.00 %$97,085 6.50 %
Consolidated186,605 12.46 %104,870 7.00 %N/AN/A
Tier 1 capital to risk weighted assets
Isabella Bank181,950 12.18 %126,958 8.50 %119,490 8.00 %
Consolidated186,605 12.46 %127,342 8.50 %N/AN/A
Total capital to risk weighted assets
Isabella Bank195,636 13.10 %156,830 10.50 %149,362 10.00 %
Consolidated229,759 15.34 %157,305 10.50 %N/AN/A
Tier 1 capital to average assets
Isabella Bank181,950 8.83 %82,377 4.00 %102,972 5.00 %
Consolidated186,605 9.04 %82,580 4.00 %N/AN/A
December 31, 2024
ActualMinimum Capital
Required Plus Capital Conservation Buffer
Minimum Capital
Required To Be Considered
Well Capitalized (1)
AmountRatioAmountRatioAmountRatio
Common equity Tier 1 capital to risk weighted assets
Isabella Bank$172,589 11.53 %$104,783 7.00 %$97,299 6.50 %
Consolidated183,348 12.21 %105,136 7.00 %N/AN/A
Tier 1 capital to risk weighted assets
Isabella Bank172,589 11.53 %127,237 8.50 %119,753 8.00 %
Consolidated183,348 12.21 %127,665 8.50 %N/AN/A
Total capital to risk weighted assets
Isabella Bank185,997 12.43 %157,175 10.50 %149,691 10.00 %
Consolidated226,179 15.06 %157,703 10.50 %N/AN/A
Tier 1 capital to average assets
Isabella Bank172,589 8.36 %82,602 4.00 %103,252 5.00 %
Consolidated183,348 8.86 %82,803 4.00 %N/AN/A
(1) "Well-capitalized" minimum common equity Tier 1 to risk-weighted and leverage ratio are not formally defined under applicable regulations for bank holding companies.
Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital includes a permissible portion of the allowances for credit losses and subordinated debt, net of unamortized issuance costs. There are no significant regulatory constraints placed on our capital. At June 30, 2025, the Bank exceeded all minimum Basel III risk-based capital requirements with the capital conservation buffer.
State banking regulations place certain restrictions on dividends paid by banks to their shareholders. Dividends paid by the Corporation’s bank subsidiary would be prohibited if the effect thereof would cause the bank subsidiary’s capital to be reduced below applicable minimum capital requirements.
The following table summarizes the changes in AOCI by component for the:
Three Months Ended June 30
20252024
Unrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		TotalUnrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		Total
Balance, April 1$(17,042)$(397)$(17,439)$(27,493)$(697)$(28,190)
OCI before reclassifications3,879 — 3,879 703 — 703 
Tax effect(827)— (827)(149)— (149)
OCI, net of tax3,052 — 3,052 554 — 554 
Balance, June 30$(13,990)$(397)$(14,387)$(26,939)$(697)$(27,636)
Six Months Ended June 30
20252024
Unrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		TotalUnrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		Total
Balance, December 31$(20,958)$(397)$(21,355)$(25,199)$(697)$(25,896)
OCI before reclassifications8,893 — 8,893 (2,223)— (2,223)
Tax effect(1,925)— (1,925)483 — 483 
OCI, net of tax6,968 — 6,968 (1,740)— (1,740)
Balance, June 30$(13,990)$(397)$(14,387)$(26,939)$(697)$(27,636)
Included in OCI for the three and six-month periods ended June 30, 2025 and 2024 are changes in unrealized gains and losses related to certain auction rate money market preferred stocks. These investments, for federal income tax purposes, have no deferred federal income taxes related to unrealized gains or losses given the nature of the investments.
A summary of the components of unrealized gains on AFS securities included in OCI follows for the:
Three Months Ended June 30
 20252024
Auction Rate Money Market PreferredAll Other AFS SecuritiesTotalAuction Rate Money Market PreferredAll Other AFS SecuritiesTotal
Unrealized gains (losses) arising during the period$(64)$3,943 $3,879 $(5)$708 $703 
Tax effect— (827)(827)— (149)(149)
Unrealized gains (losses), net of tax$(64)$3,116 $3,052 $(5)$559 $554 
 Six Months Ended June 30
 20252024
Auction Rate Money Market PreferredAll Other AFS SecuritiesTotalAuction Rate Money Market PreferredAll Other AFS SecuritiesTotal
Unrealized gains (losses) arising during the period$(279)$9,172 $8,893 $77 $(2,300)$(2,223)
Tax effect— (1,925)(1,925)— 483 483 
Unrealized gains (losses), net of tax$(279)$7,247 $6,968 $77 $(1,817)$(1,740)