Company: ISBA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000842517-25-000099
Chunk: 105

Company: ISABELLA BANK CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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 expired without being drawn upon and do not necessarily represent our future cash requirements.

We are party to credit related financial instruments with off-balance-sheet risk. These financial instruments are entered into in the normal course of business to meet the financing needs of our customers. These financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The contractual or notional amounts of these instruments reflect the extent of involvement we have in a particular class of financial instrument.

Our exposure to credit-related loss in the event of nonperformance by the counterparties to the financial instruments for commitments to extend credit and standby letters of credit could be up to the contractual notional amount of those instruments. We use the same credit policies when analyzing the creditworthiness of counterparties as we do for extending loans to customers. No significant losses are anticipated as a result of these commitments.

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Reconciliation of Non-GAAP Financial Measures

The following tables provide a detailed analysis, and reconciliation for, our non-GAAP financial measures as of, and for the:Three Months EndedMarch 312025December 312024September 302024June 302024March 312024Net income$3,949 $3,996 $3,281 $3,481 $3,131 Net gains (losses) on foreclosed assets(55)74 4 6 69 Overdraft (charge-off) recoveries (1)— 66 (1,622)— — Profitability initiative cost— (23)— — — Legal fees related to Nasdaq (2)(121)— — — — Income tax impact on items above37 (25)340 (1)(14)Income tax expense on BOLI surrender (3)(166)— — — — Adjusted net income(A)$4,254 $3,904 $4,559 $3,476 $3,076 Noninterest expenses$13,299 $13,330 $13,228 $12,895 $12,676 Amortization of acquisition intangibles1 1 — 1 — Adjusted noninterest expense(B)$13,298 $13,329 $13,228 $12,894 $12,676 Net interest income$14,525 $14,555 $14,488 $13,550 $13,