Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 56

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 56
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 line of credit.  These funding methods typically carry a higher interest rate than traditional market deposit accounts.  Some borrowed funds, including FHLB advances, FRB Discount Window advances, and repurchase agreements, require us to pledge assets, typically in the form of AFS securities or loans, as collateral.  As of December 31, 2024, we had available lines of credit of $342,130.

We monitor our daily liquidity position to meet our cash flow needs.  We also forecast anticipated funding needs for changes in interest rates and economic conditions, the scheduled maturity and interest rate sensitivity of the investment and loan portfolios and deposits, and regulatory capital requirements.  Our liquidity stress testing is designed with consideration of these and other factors that could pose undue risk to liquidity.

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Table of Contents

Our liquidity position remained strong at the end of 2024. Components of liquidity are illustrated in the following table as of December 31:20242023Total cash and cash equivalents$24,542 $33,672 Brokered CD capacity120,000 120,000 Available lines of creditFed funds lines with correspondent banks93,000 93,000 FHLB borrowings215,432 211,860 FRB Discount Window28,698 28,220 Other lines of credit5,000 5,000 Total available lines of credit342,130 338,080 Unencumbered lendable value of FRB collateral, estimated (1)290,000 320,000 Total cash and liquidity$776,672 $811,752 Uninsured deposits$645,764 $600,381 Coverage ratio of uninsured deposits with total cash and liquidity120 %135 %

(1) Includes estimated unencumbered lendable value of FHLB collateral of $200,000 and $230,000 as of December 31, 2024 and 2023, respectively.

Fair Value

We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  AFS securities, cash flow hedge derivative instruments and certain liabilities are recorded at fair value on a recurring basis.  Additionally, from time to time, we may be required to record at fair value other assets on a nonrecurring basis, such as mortgage loans AFS, impaired loans, goodwill, foreclosed assets, OMSR, and certain other assets and liabilities.  These nonrecurring fair value adjustments typically involve the