Company: ISBA
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000842517-25-000135
Chunk: 126

Company: ISABELLA BANK CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 126
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 operating expenses do reflect general levels of inflation. Management seeks to manage the relationship between interest rate-sensitive assets and liabilities in order to protect against wide net interest income fluctuations, including those resulting from inflation.

Various information shown elsewhere in this Form 10-Q will assist in the understanding of how well the Corporation is positioned to react to changing interest rates and inflationary trends. In particular, additional information related to the Corporation’s interest rate-sensitive assets and liabilities is contained in this Item 2, “Management's Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q under the heading “Interest Rate Sensitivity and Market Risk.”

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Reconciliation of Non-GAAP Financial Measures

The following tables provide a detailed analysis, and reconciliation for, our non-GAAP financial measures as of, and for the:Three Months EndedSix Months Ended June 302025March 312025December 312024September 302024June 302024June 302025June 302024Net income$5,031 $3,949 $3,996 $3,281 $3,481 $8,980 $6,612 Net gains (losses) on foreclosed assets— (55)74 4 6 (55)75 Overdraft (charge-off) recoveries (1)1,556 — 66 (1,622)— 1,556 — Profitability initiative cost (2)(173)— (23)— — (173)— Legal fees related to Nasdaq (2)(47)(121)— — — (168)— Income tax impact on items above(281)37 (25)340 (1)(244)(16)Exchange fees on BOLI transfers (3)(120)— — — — (120)— Income tax expense on BOLI surrender (4)— (166)— — — (166)— Adjusted net income(A)$4,096 $4,254 $3,904 $4,559 $3,476 $8,350 $6,553 Noninterest expenses$13,745 $13,299 $13,330 $13,228 $12,895 $27,044 $25,571 Amortization of acquisition intangibles— 1 1 — 1 1 1 Non-GAAP expense adjustment220 121