Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 85

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 85
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 pension costs are assumptions concerning future events that will affect the amount and timing of required benefit payments under the plan.  These assumptions include demographic assumptions such as mortality, a discount rate used to determine the current benefit obligation and a long-term expected rate of return on plan assets.  Net periodic benefit cost includes the interest cost based on the assumed discount rate, an expected return on plan assets based on an actuarially derived market-related value of assets, and amortization of unrecognized net actuarial gains or losses.  Actuarial gains and losses result from experience different from that assumed and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value).  Amortization of actuarial gains and losses is included as a component of net periodic defined benefit pension cost.For additional information, see “Note 8 – Benefit Plans.”MARKETING COSTS: Marketing costs are expensed as incurred and are included in other noninterest expenses.ACCOUNTING STANDARDS UPDATE:Recently Adopted Accounting StandardsASU No. 2023-07: “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”ASU No. 2023-07, issued in November 2023, requires public business entities with a single reportable segment to provide the disclosures required by this standard and the existing segment disclosures in Topic 280 on an interim and annual basis.  The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance.  The new authoritative guidance is effective for annual 

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periods beginning after December 15, 2023.  We adopted the this standard on a retrospective basis, which did not have a material impact on our consolidated financial statements.Pending Accounting StandardsASU No. 2023-09: “Income Tax (Topic 740): Improvement to Income tax Disclosures"In December 2023, ASU No. 2023-09 was issued to enhance the transparency and decision usefulness of income tax disclosures.  The existing disclosure is being enhanced to provide information to help investors, lenders, creditors and all other allocators of capital asses how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows.  The new authoritative guidance is effective for annual periods beginning after December 15, 2024 and will not have a significant impact on our operations or financial statement disclosures.ASU No. 2024-03: