Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 82

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 82
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 securities without readily determinable fair values which include our holdings of FHLB stock and FRB stock.  Equity securities without readily determinable fair values, with the exception of FHLB stock, are included in other assets.  Equity securities without readily determinable fair values consist of the following holdings as of December 31:20242023FHLB Stock$12,762 $12,762 FRB Stock2,400 2,400 Other686 686 Total$15,848 $15,848 EQUITY COMPENSATION PLANS: At December 31, 2024, the Directors Plan had 101,493 shares eligible to be issued to participants, for which the Rabbi Trust held 142,535 shares.  We had 154,119 shares to be issued at December 31, 2023, with 150,581 shares held in the Rabbi Trust.Under the RSP, compensation expense for nonvested stock awards is based on the fair value of the award on the measurement date.  The fair value of nonvested stock awards is based on the date of the grant and is recognized over the requisite service period.  The impact of forfeitures of share-based payment awards on compensation expense is recognized as forfeitures occur.Compensation costs relating to share-based payment transactions are recognized as the services are rendered, with the cost measured based on the fair value of the equity or liability instruments issued on the grant date (see “Note 8 – Benefit Plans”).BANK OWNED LIFE INSURANCE: We have purchased life insurance policies on key members of management, partially for the purpose of funding certain post-retirement benefits.  In the event of death of one of these individuals, we would receive a specified cash payment equal to the face value of the policy.  Such policies are recorded at their cash surrender value, or the amount that can be realized on the balance sheet date.  Increases in cash surrender value in excess of single premiums paid are reported as earnings on BOLI policies.Of the purchased life insurance policies, we hold post retirement benefits with a present value estimated to be $2,687 and $2,515 as of December 31, 2024 and 2023, respectively, which is included in other liabilities.  The expenses associated with these policies totaled $172, $173, and $61 for 2024, 2023, and 2022, respectively, which are included in compensation and benefits expense and other noninterest expenses