Company: ISBA
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0000842517-25-000210
Chunk: 27

Company: ISABELLA BANK CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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gage-backed securities— — 2,182 26,886 2,182 Collateralized mortgage obligations185 5,646 8,297 149,028 8,482 Corporate— — 864 7,286 864 Total$671 $29,199 $25,825 $443,611 $26,496 Number of securities in an unrealized loss position:175 178 353 As of September 30, 2025, no ACL has been recognized on AFS securities in an unrealized loss position, as management does not believe any of the securities are impaired due to reasons of credit quality. This is based on our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our AFS securities and consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Management does not currently intend to sell any of the securities classified as AFS in the table above, and believes it is more likely than not that we will not have to sell any such securities before a recovery of cost. The unrealized losses are generally due to a continued elevated market interest rate environment compared to the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their respective maturity date or repricing date, or if the market yields for such investments decline.

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Note 3 – Loans and ACL

Loan CompositionThe following table provides a detailed listing of our loan portfolio at:September 30, 2025December 31, 2024BalancePercent of TotalBalancePercent of TotalCommercial and industrialSecured$186,306 13.01 %$177,239 12.45 %Unsecured31,826 2.22 %23,384 1.64 %Total commercial and industrial218,132 15.23 %200,623 14.09 %Commercial real estateCommercial mortgage owner occupied220,233 15.38 %213,086 14.97 %Commercial mortgage non-owner occupied224,653 15.70 %217,679 15.29 %Commercial mortgage 1-4 family investor97,971 6.84 %92,497 6.50 %Commercial mortgage multifamily83,785 5.85 %68,456 4.81 %