Financial Analysis

"Borrowed Funds Short-term borrowings Short-term borrowings include securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount Window advances, which all generally mature within one to three days from the transaction date. A summary of short-term borrowed funds without stated maturity dates was as follows for the: Three Months Ended September 30 2025 2024 Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Securities sold under agreements to repurchase without stated maturity dates $ 62,022 $ 52,700 3.17 % $ 56,051 $ 48,151 3.18 % Federal funds purchased 0.00 % 0.00 % FRB Discount Window 0.00 % 5,300 153 5.18 % Nine Months Ended September 30 2025 2024 Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Securities sold under agreements to repurchase without stated maturity dates $ 62,022 $ 45,705 3.18 % $ 56,051 $ 43,140 3.17 % Federal funds purchased 7 5.43 % 1 6.52 % FRB Discount Window 296 4.50 % 5,300 56 5.21 % Securities sold under agreements to repurchase are classified as secured borrowings and are reflected at the amount of cash received in connection with the transaction. The securities underlying the agreements have a carrying value and a fair value of $8 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair Value Under fair value measurement and disclosure authoritative guidance, we group assets and liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value, based on the prioritization of inputs in the valuation techniques. These levels are: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. The assets or liabilitys fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. Transfers between measurement levels are recognized at the end of reporting periods. Fair value measurement requires the use of an exit price notion which may differ from entrance pricing. General …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Capital Ratios and Shareholders' Equity As of September 30, 2025 and December 31, 2024, the most recent notifications from the FRB and the FDIC categorized us as well capitalized under the FDIC's regulatory framework for prompt corrective action and the Basel III capital guidelines. To be categorized as well capitalized, an institution must maintain minimum 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 guidelines. Capital requirements to be considered well capitalized are based upon the FDIC's prompt corrective action regulations, as amended to reflect the changes under the Basel III capital guidelines. 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, both on a bank-only and on a consolidated basis, as of: September 30, 2025 Actual Minimum Capital Required Plus Capital Conservation Buffer Minimum Capital Required To Be Considered Well Capitalized (1) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk weighted assets Isabella Bank $ 187,258 12.26 % $ 106,874 7.00 % $ 99,240 6.50 % Consolidated 189,547 12.37 % 107,266 7.00 % N/A N/A Tier 1 capital to risk weighted assets Isabella Bank 187,258 12.26 % 129,776 8.50 % 122,142 8.00 % Consolidated …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing