Company: ISBA
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000842517-25-000135
Chunk: 108

Company: ISABELLA BANK CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 108
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 sold in the secondary market. The consumer loan portfolio continues to roll off amid decreasing demand, competition and our adherence to credit quality standards.

The ACL was $12,977 at June 30, 2025, an increase of $82 from $12,895 at December 31, 2024. The increase is due to core loan growth (non-GAAP), offset by improvement in historical loss experience driven by the recovery of previously charged-off loans during the year. Nonaccrual loans were $1,164 as of June 30, 2025 compared to $282 at December 31, 2024.  Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.08% at June 30, 2025, compared to 0.40% at year-end 2024. Overall, credit quality remains strong, and there are no negative trends.

BOLI assets were $45,774 at June 30, 2025, an increase of $10,892 from December 31, 2024. The growth was mostly driven by a $10,583 investment of new policies in a separate account product at the beginning of January. In the first half of 2025, we also surrendered and/or exchanged $13,721 of existing general account policies and redeployed the funds into a separate account BOLI. As part of BOLI restructuring, another $914 of general account policies will be exchanged for separate account BOLI, which is expected to be completed by the end of the third quarter of 2025. The separate account BOLI currently yields 5.4%, compared to a weighted-average yield of 2.9% from existing general account policies. 

Total deposits increased $102,316 from December 31, 2024, to $1,849,376 at June 30, 2025. The growth was driven by demand and money market deposits. The $77,104 increase in demand deposits was primarily driven by one customer with large deposits during the second quarter that are expected to be withdrawn by the customer by the end of the year. Consumer demand for retail certificates of deposit accounts continues based on the rate environment, resulting in a $8,341 increase in the balance during the first six months of 2025.

Total equity was $220,500, or $29.95 per share, at June 30, 2025 compared to $210,276, or