Company: ISBA
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000842517-25-000135
Chunk: 62

Company: ISABELLA BANK CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 (1,740)Balance, June 30$(13,990)$(397)$(14,387)$(26,939)$(697)$(27,636)Included in OCI for the three and six-month periods ended June 30, 2025 and 2024 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:Three Months Ended June 30 20252024Auction Rate Money Market PreferredAll Other AFS SecuritiesTotalAuction Rate Money Market PreferredAll Other AFS SecuritiesTotalUnrealized 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 $554  Six Months Ended June 30 20252024Auction Rate Money Market PreferredAll Other AFS SecuritiesTotalAuction Rate Money Market PreferredAll Other AFS SecuritiesTotalUnrealized gains (losses) arising during the period$(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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Note 7 – Fair Value

Under fair value measurement and disclosure authoritative guidance, we group assets and liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value, based on the prioritization of inputs in the valuation techniques.  These levels are:Level 1:Valuation is based upon quoted prices for identical instruments traded in active markets.Level 2:Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.Level 3:Valuation is generated from model-based