v3.26.1
Capital Ratios and Shareholders' Equity
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Capital Ratios and Shareholders' Equity Capital Ratios and Shareholders' Equity
As of June 30, 2026 and December 31, 2025, 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 categorizations. The following tables set forth these capital requirements and our ratios, both on a bank-only and on a consolidated basis, as of the dates indicated:
June 30, 2026
ActualMinimum Capital
Required Plus Capital Conservation Buffer
Minimum Capital
Required To Be Considered
Well Capitalized (1)
(dollars in thousands)AmountRatioAmountRatioAmountRatio
Common equity Tier 1 capital to risk weighted assets
Isabella Bank$194,064 11.49%$118,197 7.00%$109,754 6.50%
Consolidated209,173 12.34%118,619 7.00% N/A N/A
Tier 1 capital to risk weighted assets
Isabella Bank194,064 11.49%143,525 8.50%135,082 8.00%
Consolidated209,173 12.34%144,037 8.50% N/A N/A
Total capital to risk weighted assets
Isabella Bank209,147 12.39%177,295 10.50%168,853 10.00%
Consolidated247,903 14.63%177,928 10.50% N/A N/A
Tier 1 capital to average assets
Isabella Bank194,064 8.93%86,910 4.00%108,638 5.00%
Consolidated209,173 9.59%87,235 4.00% N/A N/A
December 31, 2025
ActualMinimum Capital
Required Plus Capital Conservation Buffer
Minimum Capital
Required To Be Considered
Well Capitalized (1)
(dollars in thousands)AmountRatioAmountRatioAmountRatio
Common equity Tier 1 capital to risk weighted assets
Isabella Bank$182,116 11.20%$113,783 7.00%$105,656 6.50%
Consolidated191,137 11.73%114,114 7.00%N/AN/A
Tier 1 capital to risk weighted assets
Isabella Bank182,116 11.20%138,165 8.50%130,038 8.00%
Consolidated191,137 11.73%138,568 8.50%N/AN/A
Total capital to risk weighted assets
Isabella Bank196,336 12.08%170,675 10.50%162,547 10.00%
Consolidated234,871 14.41%171,172 10.50%N/AN/A
Tier 1 capital to average assets
Isabella Bank182,116 8.45%86,170 4.00%107,713 5.00%
Consolidated191,137 8.84%86,476 4.00%N/AN/A
(1) “Well-capitalized” minimum Common Equity Tier 1 to Risk-Weighted and Leverage Ratio are not formally defined under applicable regulations for bank holding companies.
Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital includes a permissible portion of the allowances for credit losses and outstanding subordinated debt, net of unamortized issuance costs. There are no significant regulatory constraints placed on our capital. As of June 30, 2026, the Bank exceeded all minimum Basel III risk-based capital requirements with the capital conservation buffer.
State banking regulations place certain restrictions on dividends paid by banks to their shareholders. Dividends paid by the Corporation’s bank subsidiary would be prohibited if the effect thereof would cause the bank subsidiary’s capital to be reduced below applicable minimum capital requirements.
The following table summarizes the changes in AOCI by component for the periods indicated:
Three Months Ended June 30
20262025
(dollars in thousands)Unrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		TotalUnrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		Total
March 31$(8,564)$(38)$(8,602)$(17,042)$(397)$(17,439)
OCI before reclassifications(200)— (200)3,879 — 3,879 
Tax effect51 — 51 (827)— (827)
OCI, net of tax(149)— (149)3,052 — 3,052 
June 30$(8,713)$(38)$(8,751)$(13,990)$(397)$(14,387)
Six Months Ended June 30
20262025
(dollars in thousands)Unrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		TotalUnrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		Total
December 31$(7,985)$(38)$(8,023)$(20,958)$(397)$(21,355)
OCI before reclassifications(924)— (924)8,893 — 8,893 
Tax effect196 — 196 (1,925)— (1,925)
OCI, net of tax(728)— (728)6,968 — 6,968 
June 30$(8,713)$(38)$(8,751)$(13,990)$(397)$(14,387)
Included in OCI for the three and six-month periods ended June 30, 2026 and 2025 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 periods indicated:
Three Months Ended June 30
20262025
(dollars in thousands)Auction Rate Money Market PreferredAll Other AFS SecuritiesTotalAuction Rate Money Market PreferredAll Other AFS SecuritiesTotal
Unrealized gains (losses) arising during the period$39 $(239)$(200)$(64)$3,943 $3,879 
Tax effect— 51 51 — (827)(827)
Unrealized gains (losses), net of tax$39 $(188)$(149)$(64)$3,116 $3,052 
Six Months Ended June 30
20262025
(dollars in thousands)Auction Rate Money Market PreferredAll Other AFS SecuritiesTotalAuction Rate Money Market PreferredAll Other AFS SecuritiesTotal
Unrealized gains (losses) arising during the period$6 $(930)$(924)$(279)$9,172 $8,893 
Tax effect— 196 196 — (1,925)(1,925)
Unrealized gains (losses), net of tax$6 $(734)$(728)$(279)$7,247 $6,968