Company: ISBA
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000842517-25-000210
Chunk: 62

Company: ISABELLA BANK CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 Other AFS SecuritiesTotalUnrealized gains (losses) arising during the period$(64)$5,094 $5,030 $109 $12,972 $13,081 Tax effect— (1,052)(1,052)— (2,724)(2,724)Unrealized gains (losses), net of tax$(64)$4,042 $3,978 $109 $10,248 $10,357  Nine Months Ended September 30 20252024Auction Rate Money Market PreferredAll Other AFS SecuritiesTotalAuction Rate Money Market PreferredAll Other AFS SecuritiesTotalUnrealized gains (losses) arising during the period$(279)$14,202 $13,923 $186 $10,672 $10,858 Tax effect— (2,977)(2,977)— (2,241)(2,241)Unrealized gains (losses), net of tax$(279)$11,225 $10,946 $186 $8,431 $8,617 

35

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 techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability.The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.  Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs.  Transfers between measurement levels are recognized at the end of reporting periods.Fair value measurement requires the use of an exit price notion which may differ from entrance pricing.  Generally, we believe our assets and liabilities classified as Level