Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 125

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 125
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 2023, we met all capital adequacy requirements.The FRB has established minimum risk-based capital guidelines. Pursuant to these guidelines, a framework has been established that assigns risk weights to each category of on and off-balance-sheet items to arrive at risk adjusted total assets. Regulatory capital is divided by the risk adjusted assets with the resulting ratio compared to the minimum standard to determine whether a corporation has adequate capital. The common equity tier 1 capital ratio has a minimum requirement of 4.50%. The minimum standard for primary, or Tier 1 capital is 6.00% and the minimum standard for total capital is 8.00%. 

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As of December 31, 2024 and 2023, the most recent notifications from the FRB and the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, an institution must maintain total risk-based, Tier 1 risk-based, Common Equity Tier 1, and Tier 1 leverage ratios as set forth in the following tables.  The minimum requirements presented below include the minimum required capital levels based on the Basel III Capital Rules.  Capital requirements to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under Basel III Capital Rules.  There were no conditions or events since the notifications that we believe have changed our categories.  The following tables set forth these requirements and our ratios as of December 31:2024 ActualMinimum CapitalRequired Plus Capital Conservation BufferMinimum CapitalRequired To Be ConsideredWell Capitalized (1) AmountRatioAmountRatioAmountRatioCommon equity Tier 1 capital to risk weighted assetsIsabella Bank$172,589 11.53 %$104,783 7.00 %$97,299 6.50 %Consolidated183,348 12.21 %105,136 7.00 %N/AN/ATier 1 capital to risk weighted assetsIsabella Bank172,589 11.53 %127,237 8.50 %119,753 8.00 %Consolidated183,348 12.21 %127,665 8.50 %N/AN/ATotal capital to risk weighted assetsIsabella Bank185,997 12.43 %157,175 10.50 %149,691 10.00 %Consolidated226,179 15.