Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 51

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 51
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103 100.00 $9,744 100.00 

While we utilize our best judgment and information available, the ultimate adequacy of the ACL is dependent upon a variety of factors beyond our control, including the performance of our borrowers, the economy, and changes in interest rates.  We closely monitor overall credit quality indicators and our policies and procedures related to the analysis of the ACL to ensure that the ACL remains at an appropriate level.

For further discussion of the allocation of the ACL, see “Note 3 – Loans and ACL” of “Notes to Consolidated Financial Statements” in Item 8. Financial Statements and Supplementary Data.

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Table of Contents

AFS Securities

The following is a schedule of maturities of AFS securities and their weighted average yields as of December 31, 2024.  Weighted average yields have been computed on an FTE basis using a tax rate of 21%.  Our auction rate money market preferred investments are long-term floating rate instruments.  The issuers of auction rate securities generally have the right to redeem or refinance the debt.  Because of their lack of contractual maturities, auction rate money market preferred stocks are not reported by a specific maturity group.  Mortgage-backed securities and collateralized mortgage obligations are not reported by a specific maturity group due to their variable monthly payments.  Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.

 Maturing  WithinOne YearAfter OneYear ButWithinFive YearsAfter FiveYears ButWithinTen YearsAfterTen YearsSecurities withVariable  MonthlyPayments orNoncontractualMaturities AmountYield (%)AmountYield (%)AmountYield (%)AmountYield (%)AmountYield (%)U.S. Treasury$29,504 1.02 $191,067 0.97 $— — $— — $— — States and political subdivisions14,378 3.37 20,826 3.18 17,019 3.02 24,345 3.65 — — Mortgage-backed securities— — — — — — — — 26,886 2.38 Collateralized mortgage obligations— — — — — — — — 154,674 2.94