Company: ISBA
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000842517-25-000210
Chunk: 42

Company: ISABELLA BANK CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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,729 Risk rating 6— 172 — 90 — — 2,338 — 2,600 Risk rating 7— — — — — — — — — Risk rating 8— — — — — — — — — Risk rating 9— — — — — — — — — Total$4,257 $2,023 $1,969 $2,120 $903 $760 $20,112 $— $32,144 2024 year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 

20

We have certain lending policies and procedures in place designed to maximize loan income within an acceptable level of risk. The Board of Directors reviews and approves these policies and procedures on a regular basis.  A reporting system supplements the review process by providing management and the Board of Directors with frequent reports related to loan production, loan quality, and concentration of credit, loan delinquencies, nonperforming loans and potential problem loans.  We seek to diversify the loan portfolio as a means of managing risk associated with fluctuations in economic conditions.Internally assigned credit risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits. Descriptions of the internally assigned credit risk ratings for commercial and agricultural loans are as follows:1. EXCELLENT – Substantially Risk FreeCredit has strong financial condition and solid earnings history, characterized by:•High liquidity, strong cash flow, low leverage.•Unquestioned ability to meet all obligations when due.•Experienced management, with management succession in place.•Secured by cash.2. HIGH QUALITY – Limited RiskCredit with sound financial condition and a positive trend in earnings supplemented by:•Favorable liquidity and leverage ratios.•Ability to meet all obligations when due.•Management with successful track record.•Steady and satisfactory earnings history.•If loan is secured, collateral is of high quality and readily marketable.•Access to alternative financing.•Well defined primary and secondary source of repayment.•If supported by guaranty, the financial strength and liquidity of the guarantor(s) are clearly evident.3. HIGH SATISFACTORY – Reasonable RiskCredit with satisfactory financial condition