Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 136

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 136
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R for the years ended December 31, 2024 and 2023.  We also recorded losses of $0 and $132 through earnings related to fair value changes in foreclosed assets for the years ended December 31, 2024 and 2023.  We had no other assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a recurring basis or nonrecurring basis, as of December 31, 2024 and 2023.

Note 14 – Off-Balance-Sheet Activities, Commitments and Other Matters

Credit-Related Financial InstrumentsWe 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 IRR 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.The following table summarizes our credit related financial instruments with off-balance-sheet risk as of December 31:20242023Unfunded commitments under lines of credit$312,577 $313,646 Commercial and standby letters of credit2,125 1,624 Commitments to originate new loans26,558 6,460 Total$341,260 $321,730 Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers.  These commitments may expire without being drawn upon and do not necessarily represent future cash requirements.  Advances to mortgage brokers are also included in unfunded commitments under lines of credit.  The unfunded commitment amount is the difference between our outstanding balances and maximum outstanding aggregate amount.Commitments to originate new loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  The amount of collateral obtained, if it is deemed necessary, is based on management's credit evaluation of the customer.  Commitments to grant loans include residential mortgage loans that may be committed to be sold to the secondary market.Commercial and standby letters of credit are conditional commitments we issued to guarantee the performance of a customer to a third party.  Those guarantees are primarily issued to support private borrowing arrangements, including commercial paper, 

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bond financing, and similar transactions.