Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 41

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 41
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 healthcare, and hotel industries.  Core loans, which excludes advances to mortgage brokers, grew $29,569 or 2.2%.

The ACL was $12,895 at December 31, 2024, a decrease of $213 from $13,108 at December 31, 2023.  Most of the decrease is due to improvement in historical loss experience, which was driven by the recovery of previously charged-off loans during the 

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year.  This improvement was offset by core loan growth and the impact from a few commercial loans totaling $33,875 that migrated to a special mention risk rating during the fourth quarter. The downgraded loans are well collateralized and are not an indication of a negative trend in the broader portfolio.  Nonaccrual loans were $282 as of December 31, 2024 compared to $982 at December 31, 2023.  Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.40% at December 31, 2024, compared to 0.29% at year-end 2023.  Overall, credit quality remains strong, and there are no negative trends.

Total deposits were $1,747,060 as of December 31, 2024, increasing $23,365, or 1.4%, from December 31, 2023.  Retail certificates of deposit accounts were up $41,217, driven by continued demand due to the rate environment.  Interest bearing demand deposits increased $20,629, while savings and demand deposits declined $26,349 and $12,132, respectively.  The decline in savings products was driven in part by expected outflows of businesses and municipalities to fund large, regional projects and disintermediation into higher yielding accounts.

Total equity was $210,276 at December 31, 2024 compared to $202,402 at year-end 2023.  Our tangible book value per share was $21.82 as of December 31, 2024, compared to $20.59 on December 31, 2023.  Net unrealized losses on AFS securities reduced tangible book value per share by $2.82 and $3.37 for the respective periods.  Share repurchases totaled 152,577 during 2024 for a value of $3,076 at an average price of $20.16.

We continue to have robust liquidity levels and capital