| Summary of compliance with regulatory capital requirements |
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 | | Actual | | Minimum Capital
Required Plus Capital Conservation Buffer | | Minimum Capital Required To Be Considered Well Capitalized (1) | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Common equity Tier 1 capital to risk weighted assets | | | | | | | | | | | | | Isabella Bank | $ | 181,950 | | | 12.18 | % | | $ | 104,553 | | | 7.00 | % | | $ | 97,085 | | | 6.50 | % | | Consolidated | 186,605 | | | 12.46 | % | | 104,870 | | | 7.00 | % | | N/A | | N/A | | Tier 1 capital to risk weighted assets | | | | | | | | | | | | | Isabella Bank | 181,950 | | | 12.18 | % | | 126,958 | | | 8.50 | % | | 119,490 | | | 8.00 | % | | Consolidated | 186,605 | | | 12.46 | % | | 127,342 | | | 8.50 | % | | N/A | | N/A | | Total capital to risk weighted assets | | | | | | | | | | | | | Isabella Bank | 195,636 | | | 13.10 | % | | 156,830 | | | 10.50 | % | | 149,362 | | | 10.00 | % | | Consolidated | 229,759 | | | 15.34 | % | | 157,305 | | | 10.50 | % | | N/A | | N/A | | Tier 1 capital to average assets | | | | | | | | | | | | | Isabella Bank | 181,950 | | | 8.83 | % | | 82,377 | | | 4.00 | % | | 102,972 | | | 5.00 | % | | Consolidated | 186,605 | | | 9.04 | % | | 82,580 | | | 4.00 | % | | N/A | | N/A |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | Actual | | Minimum Capital
Required Plus Capital Conservation Buffer | | Minimum Capital Required To Be Considered Well Capitalized (1) | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Common equity Tier 1 capital to risk weighted assets | | | | | | | | | | | | | Isabella Bank | $ | 172,589 | | | 11.53 | % | | $ | 104,783 | | | 7.00 | % | | $ | 97,299 | | | 6.50 | % | | Consolidated | 183,348 | | | 12.21 | % | | 105,136 | | | 7.00 | % | | N/A | | N/A | | Tier 1 capital to risk weighted assets | | | | | | | | | | | | | Isabella Bank | 172,589 | | | 11.53 | % | | 127,237 | | | 8.50 | % | | 119,753 | | | 8.00 | % | | Consolidated | 183,348 | | | 12.21 | % | | 127,665 | | | 8.50 | % | | N/A | | N/A | | Total capital to risk weighted assets | | | | | | | | | | | | | Isabella Bank | 185,997 | | | 12.43 | % | | 157,175 | | | 10.50 | % | | 149,691 | | | 10.00 | % | | Consolidated | 226,179 | | | 15.06 | % | | 157,703 | | | 10.50 | % | | N/A | | N/A | | Tier 1 capital to average assets | | | | | | | | | | | | | Isabella Bank | 172,589 | | | 8.36 | % | | 82,602 | | | 4.00 | % | | 103,252 | | | 5.00 | % | | Consolidated | 183,348 | | | 8.86 | % | | 82,803 | | | 4.00 | % | | N/A | | N/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.
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| Summary of the components of accumulated other comprehensive income |
The following table summarizes the changes in AOCI by component for the: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30 | | 2025 | | 2024 | | Unrealized
Gains
(Losses) on
AFS
Securities | | | | Defined
Benefit
Pension Plan | | Total | | Unrealized
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 reclassifications | 3,879 | | | | | — | | | 3,879 | | | 703 | | | | | — | | | 703 | | | Tax effect | (827) | | | | | — | | | (827) | | | (149) | | | | | — | | | (149) | | | OCI, net of tax | 3,052 | | | | | — | | | 3,052 | | | 554 | | | | | — | | | 554 | | | Balance, June 30 | $ | (13,990) | | | | | $ | (397) | | | $ | (14,387) | | | $ | (26,939) | | | | | $ | (697) | | | $ | (27,636) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30 | | 2025 | | 2024 | | Unrealized
Gains
(Losses) on
AFS
Securities | | Defined
Benefit
Pension Plan | | Total | | Unrealized
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 reclassifications | 8,893 | | | — | | | 8,893 | | | (2,223) | | | — | | | (2,223) | | | Tax effect | (1,925) | | | — | | | (1,925) | | | 483 | | | — | | | 483 | | | OCI, net of tax | 6,968 | | | — | | | 6,968 | | | (1,740) | | | — | | | (1,740) | | | Balance, June 30 | $ | (13,990) | | | $ | (397) | | | $ | (14,387) | | | $ | (26,939) | | | $ | (697) | | | $ | (27,636) | |
A summary of the components of unrealized gains on AFS securities included in OCI follows for the: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30 | | | 2025 | | 2024 | | Auction Rate Money Market Preferred | | All Other AFS Securities | | Total | | Auction Rate Money Market Preferred | | All Other AFS Securities | | Total | | 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 | | | 2025 | | 2024 | | Auction Rate Money Market Preferred | | All Other AFS Securities | | Total | | Auction Rate Money Market Preferred | | All Other AFS Securities | | Total | | 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) | |
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