Company: ISBA
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000842517-25-000210
Chunk: 44

Company: ISABELLA BANK CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 attention of the loan officer.•Borrower is uncooperative with loan officer.7. VULNERABLE – ClassifiedCredit is considered “Substandard” and warrants placing in nonaccrual status. Risk of loss is being evaluated and exit strategy options are under review. Other characteristics that may apply:•Insufficient cash flow to service debt.•Minimal or no payments being received.•Limited options available to avoid the collection process.•Transition status, expect action will take place to collect loan without immediate progress being made.

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8. DOUBTFUL – WorkoutCredit has all the weaknesses inherent in a “Substandard” loan with the added characteristic that collection and/or liquidation is pending. The possibility of a loss is extremely high, but its classification as a loss is deferred until liquidation procedures are completed, or reasonably estimable. Other characteristics that may apply:•Normal operations are severely diminished or have ceased.•Seriously impaired cash flow.•Original repayment terms materially altered.•Secondary source of repayment is inadequate.•Survivability as a “going concern” is impossible.•Collection process has begun.•Bankruptcy petition has been filed.•Judgments have been filed.•Portion of the loan balance has been charged off.9. LOSS – Charge-offCredit is considered uncollectible and of such little value that their continuance as bankable assets is not warranted.  This classification is for charged-off loans but does not mean that the asset has absolutely no recovery or salvage value.  These loans are further characterized by:•Liquidation or reorganization under bankruptcy, with poor prospects of collection.•Fraudulently overstated assets and/or earnings.•Collateral has marginal or no value.•Debtor cannot be located.•Over 120 days delinquent.

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Our primary credit quality indicator for residential real estate and consumer loans is the individual loan’s past due status.  The following tables display residential real estate and consumer loans by payment status and year of origination as of:September 30, 2025 20252024202320222021PriorRevolvingLoansRevolving Loans Converted to TermTotalResidential real estate:  Senior lienCurrent$51,300 $49,468 $37,117 $43,219 $68,435 $98,849 $— $9,746 $358,134 Past due 30-89 days— — — — — 176 — — 176 Past due 90 or more days—