Company: ISBA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000842517-25-000099
Chunk: 102

Company: ISABELLA BANK CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 102
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 borrowings250,884 215,432 233,552 194,403 248,624 FRB Discount Window28,940 28,698 28,888 28,148 28,083 Other lines of credit5,000 5,000 5,000 5,000 5,000 Total available lines of credit377,824 342,130 360,440 320,551 374,707 Unencumbered lendable value of FRB collateral, estimated (1)340,000 290,000 290,000 290,000 310,000 Total cash and liquidity$907,003 $776,672 $797,818 $754,110 $829,925 Uninsured deposits$687,341 $645,764 $687,990 $623,245 $658,564 Coverage ratio of uninsured deposits with total cash and liquidity132 %120 %116 %121 %126 %(1) Includes estimated unencumbered lendable value of FHLB collateral of $260,000 as of March 31, 2025.

Fair Value

We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  AFS securities, cash flow hedge derivative instruments and certain liabilities are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other assets on a nonrecurring basis, such as mortgage loans AFS, collateral dependent loans, goodwill, foreclosed assets, OMSR, and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write downs of individual assets.

For further information regarding fair value measurements see “Note 7 – Fair Value” of our interim condensed consolidated financial statements.

Market Risk

Our primary market risks are interest rate risk and liquidity risk.  IRR is the exposure of our net interest income to changes in interest rates. IRR results from the difference in the maturity or repricing frequency of a financial institution's interest earning assets and its interest-bearing liabilities. Managing IRR is the fundamental method by which financial institutions earn income and create shareholder value. Excessive exposure to IRR could pose a significant risk to our earnings and capital.

The FRB has adopted a policy requiring banks to effectively manage the various risks that can have a material impact on safety