Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 133

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 133
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 provider for the valuation.  Our valuation is generated using a model-based approach that relies upon significant assumptions not observable in the market.  As such, the Level 3 classification is most appropriate based on the valuation approach.As a result of the change described above, Level 3 transfers in and Level 2 transfer out totaled $2,483 as of December 31, 2024.  There were no other transfers to or from Levels 1, 2, or 3 as of December 31, 2024 or December 31, 2023. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  Although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement.Estimated Fair Values of Financial Instruments Not Recorded at Fair Value in their Entirety on a Recurring BasisDisclosure of the estimated fair values of financial instruments, which differ from carrying values, often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments.  These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used.

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Table of Contents

The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of December 31: 2024CarryingValueEstimatedFair ValueLevel 1Level 2Level 3ASSETSCash and cash equivalents$24,542 $24,542 $24,542 $— $— FHLB stock (1)12,762 N/A— — — Mortgage loans HFS242 247 — 247 — Gross loans1,423,571 1,363,883 — — 1,363,883 Less allowance for credit losses12,895 12,895 — — 12,895 Net loans1,410,676 1,350,988 — — 1,350,988 Accrued interest receivable8,085 8,085 8,085 — — Equity securities without readily determinable fair values (1)3,086 N