Company: ISBA
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000842517-25-000135
Chunk: 106

Company: ISABELLA BANK CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 106
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 part by a one-time expense of $120 due to restructuring charges. For the first six months of 2025, noninterest income was $7,214, compared to $7,076 in the same period of 2024. Service charges and fees, wealth management fees, and earnings on BOLI policies increased $89, $76, and $176, respectively.  The reasons for the increase in noninterest income for the six month comparison are the same as the three month comparison.

Noninterest expenses for the three-month period ended June 30, 2025 increased $850 in comparison to the same period in 2024. Compensation and benefit expenses increased $526 reflecting annual merit increases in 2025, incentives, and higher medical insurance claims compared to the second quarter of 2024.  Other professional services increased $336 primarily due to $173 in fees related to profitability initiative costs and $47 in legal fees related to our Nasdaq uplisting. For the first six months of 2025, noninterest expenses were $27,044, compared to $25,571 in the same period of 2024.  Compensation and benefits increased $894 for the same reasons as the three month comparison.  Other professional service fees increased $534 principally due to the second quarter profitability initiative costs and $168 in legal fees related to our Nasdaq uplisting.

43

Income tax expense for the three months ended June 30, 2025 and 2024 was $1,138 and $612 and the ETR was 18% and 15%, respectively.  The increase in the ETR was primarily due to a higher annual forecast of pretax income.  Income tax expense for the first six months of 2025 was $2,050, compared to $1,123 in the same period of 2024 and the ETR was 19% and 15%, respectively. The ETR in the first six months of 2025 included a one-time expense totaling $166 due to the taxes owed from the lifetime earnings on BOLI policies that were surrendered during the first quarter. Excluding the one-time charge, the ETR was 17%, which is higher than the prior year due to a higher annual forecast of pretax income.

Financial Condition (June 30, 2025 to December 31, 2024 comparison)

Total assets increased $69,927 to $2,156,168 as of June 30, 2025, primarily due to an increase