Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 74

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 74
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 or “the Bank” refers to Isabella Bank Corporation’s subsidiary, Isabella Bank.For additional information, see “Note 15 – Related Party Transactions.”NATURE OF OPERATIONS: Isabella Bank Corporation is a financial services holding company offering a wide array of financial products and services in several mid-Michigan counties.  Our banking subsidiary, Isabella Bank, offers banking services throughout 31 locations, offering lending and deposit services, trust and investment services, and various insurance related products.OPERATING SEGMENTS: Segment information is prepared on the same basis that our CEO, who is our Chief Operating Decision Maker (“CODM”), manages our segments, evaluates financial results, and makes key operating decisions.  While the CODM monitors the revenue streams of our various products and services, operations are managed, and financial performance is evaluated on a corporate-wide basis.  Operating segments are aggregated into one as operating results for all segments are similar.  Accordingly, all of the banking related operations are considered by management to be aggregated in one reportable operating segment.The segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products and services, and geographical regions are similar.  The CODM will evaluate the financial performance of our business components by evaluating revenue streams, significant expenses, and budget to actual results in assessing our reportable segment and in the determination of allocating resources.  Further, the CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets.Consolidated net income is used to benchmark results against our competitors.  Benchmarking and the monitoring of budget to actual results are used in assessment performance and in establishing compensation.  Revenue from banking operations consists primarily of loan and investment interest, deposit related fees, and wealth fees.  Interest expense, provision for credit losses, compensation, and occupancy and equipment costs provide the significant expenses in our banking operations.  All operations are domestic.RECLASSIFICATIONS: Certain amounts reported in the 2023 and 2022 consolidated financial statements have been reclassified to conform with the 2024 presentation.USE OF ESTIMATES: In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting year.  Actual results could differ from those estimates.Material estimates that are particularly