ISABELLA BANK CORP
For the period ended Sep 30, 2025. Filed Nov 10, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 10, 2025
ISBA$40.64+0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0000842517-25-000135
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0000842517-25-000210
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 139 previous paragraphs and 125 current paragraphs.
91 unchanged; 32 reworded; 2 added; 13 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
We believe that, from time to time, these non-GAAP financial measures provide additional understanding of ongoing operations, enhance the comparability of our results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in our underlying performance. However, there may be limits in the usefulness of these measures to investors. The way we calculate the non-GAAP financial measures that we discuss in this Quarterly Report on Form 10-Q may differ from that of other companies reporting measures with similar names. Investors should understand how such other banking organizations calculate their financial measures similar to, or with names like, the non-GAAP financial measures we have discussed in this Quarterly Report on Form 10-Q when comparing such non-GAAP financial measures.
Current report
(1)Whole shares.
Removed paragraphs (13)
Previous report
Net income in the second quarter of 2025 was $5,031, or $0.68 per diluted share, compared with $3,481, or $0.46 per diluted share, in the same quarter 2024. The non-GAAP measure of adjusted net income in the second quarter 2025 totaled $4,096, or $0.55 per diluted share, compared to $3,476 or $0.46 per diluted share, in the same quarter of 2024.
Previous report
Gross loans decreased $26,058 to $1,397,513 as of June 30, 2025 totaled $1,397,513. While core loans (non-GAAP) grew $34,017, advances to mortgage brokers decreased $60,075 due to lower participation demand from our counterparty. However, the decline in advances to mortgage brokers has provided liquidity to refocus on loans that can be recorded on our balance sheet for longer terms and help to mitigate interest rate risk.
Previous report
Community Bank Leverage Ratio
Previous report
On September 17, 2019, the federal banking agencies jointly finalized a rule to be effective January 1, 2020 and intended to simplify the regulatory capital requirements described above for qualifying community banking organizations that opt into the Community Bank Leverage Ratio (“CBLR”) framework, as required by Section 201 of the EGRRCPA. The final rule became effective on January 1, 2020, and the CBLR framework became available for banks to use beginning with their March 31, 2020 Call Reports. Under the final rule, if a qualifying community banking organization opts into the CBLR framework and meets all requirements under the framework, it will be considered to have met the well-capitalized ratio requirements under the “prompt corrective action” regulations described above and will not be required to report or calculate risk-based capital. In order to qualify for the CBLR framework, a community banking organization must have a tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance sheet exposures and trading assets and liabilities. Although the Corporation and the Bank are qualifying community banking organizations, the Corporation and the Bank have elected not to opt in to the CBLR framework at this time and will continue to follow the Basel III capital requirements as described in “Note 6 – Capital Ratios and Shareholders' Equity” of our interim condensed consolidated financial statements included with this Form 10-Q.
Previous report
The following tables summarize our interest rate sensitivity for 12 and 24 months as of June 30, 2025 and December 31, 2024. The results displayed in the tables reflect the modeling of immediate shifts in the yield curve and a flat balance sheet and do not reflect actual or expected changes.
Previous report
Impact of Inflation
Previous report
Our consolidated financial statements and related notes included elsewhere in this Form 10-Q have been prepared in accordance with GAAP. GAAP requires the measurement of financial position and operating results in terms of historical dollars, without considering changes in the relative value of money over time due to inflation or recession.
Previous report
The Corporation’s asset and liability structure is substantially different from that of an industrial company in that virtually all assets and liabilities of the Corporation are monetary in nature. Management believes the impact of inflation on financial results depends upon the Corporation’s ability to react to changes in interest rates and by such reaction, reduce the inflationary impact on performance. Interest rates do not necessarily move in the same direction, or at the same magnitude, as the prices of other goods and services. However, other operating expenses do reflect general levels of inflation. Management seeks to manage the relationship between interest rate-sensitive assets and liabilities in order to protect against wide net interest income fluctuations, including those resulting from inflation.
Previous report
Various information shown elsewhere in this Form 10-Q will assist in the understanding of how well the Corporation is positioned to react to changing interest rates and inflationary trends. In particular, additional information related to the Corporation’s interest rate-sensitive assets and liabilities is contained in this Item 2, “Management's Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q under the heading “Interest Rate Sensitivity and Market Risk.”
Previous report
(2)Included in Other professional services in the consolidated statements of income.
Previous report
(3)Income tax expense on life to date earnings on BOLI policies surrendered.
Previous report
(4)Included as a reduction to Earnings on BOLI in the consolidated statements of income.
Previous report
(5)Whole shares.
Reworded paragraphs (32)
Previous wording
The following is management's discussion and analysis of our financial condition and results of operations for the unaudited periods covered by this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2025 (this “Form 10-Q”). This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 12, 2025 (the “2024 Annual Report on Form 10-K”) and with the unaudited interim condensed consolidated financial statements and notes, beginning on page 4 of this Form 10-Q. Unless we state otherwise or the context otherwise requires, references in this Form 10-Q to “we,” “our,” “us,” and “the Corporation” refer to Isabella Bank Corporation, a Michigan corporation and registered financial holding company, our wholly-owned banking subsidiary, Isabella Bank, and our other consolidated subsidiaries. References to the “Bank” refer to Isabella Bank.
Current wording
The following is management's discussion and analysis of our financial condition and results of operations for the unaudited periods covered by this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2025 (this “Form 10-Q”). This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 12, 2025 (the “2024 Annual Report on Form 10-K”) and with the unaudited interim condensed consolidated financial statements and notes, beginning on page 4 of this Form 10-Q. Unless we state otherwise or the context otherwise requires, references in this Form 10-Q to “we,” “our,” “us,” and “the Corporation” refer to Isabella Bank Corporation, a Michigan corporation and registered financial holding company, our wholly-owned banking subsidiary, Isabella Bank, and our other consolidated subsidiaries. References to “the Bank” refer to Isabella Bank.
Previous wording
•potential recession in the United States and our market areas;
Current wording
•slower economic growth rates or potential recession in the United States and our market areas;
Previous wording
•increased competition for deposits and related changes in deposit customer behavior;
Current wording
•increased competition for deposits among traditional and nontraditional financial services companies, and related changes in deposit customer behavior;
Previous wording
•adverse changes in customer spending and savings habits;
Current wording
•adverse changes in customer spending, borrowing, and savings habits;
Previous wording
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this Form 10-Q and the risk factors set forth in our 2024 Annual Report on Form 10-K. Because of these risks and other uncertainties, our actual future results, performance or achievements, or industry results, may be materially different from the results indicated by the forward-looking statements in this Form 10-Q. In addition, our past results of operations are not necessarily indicative of our future results. Accordingly, you should not rely on any forward-looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which such forward-looking statements were made.
Current wording
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this Form 10-Q and the risk factors set forth in our 2024 Annual Report on Form 10-K. Because of these risks and other uncertainties, our actual future results, performance or achievements, or industry results, may be materially different from the results indicated by the forward-looking statements in this Form 10-Q. In addition, our past results of operations are not necessarily indicative of our future results. Accordingly, you should not rely on any forward-looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which such forward-looking statements were made. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law.
Previous wording
The non-GAAP financial measures that we discuss in this Quarterly Report on Form 10-Q should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this report may differ from that of other companies reporting measures with similar names.
Current wording
As a result, the non-GAAP financial measures that we discuss in this Quarterly Report on Form 10-Q should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this report may differ from that of other companies reporting measures with similar names.
Previous wording
Comparison of Operating Results for the three and six months ended June 30, 2025, and 2024, unless otherwise noted
Current wording
Comparison of Operating Results for the three and nine months ended September 30, 2025, and 2024, unless otherwise noted
Previous wording
Net income for the year-to-date period of 2025 was $8,980, or $1.21 per diluted share, compared with $6,612, or $0.88 per diluted share, in the same period of 2024. Adjusted net income was $8,350, or $1.13 per diluted share, compared with $6,553, or $0.87 per diluted share, for the respective periods.
Current wording
Net income in the third quarter of 2025 was $5,240, or $0.71 per diluted share, compared with $3,281, or $0.44 per diluted share, in the same quarter of 2024. Net income for the year-to-date period of 2025 was $14,220, or $1.92 per diluted share, compared with $9,893, or $1.32 per diluted share, in the same period of 2024.
Previous wording
Net interest income was $15,129 in the second quarter of 2025 and $13,550 in the same quarter of 2024, representing 3.14% and 2.82% of earning assets, or NIM on an FTE basis, respectively. The book yield from securities was 2.38% and 2.17% during the second quarters of 2025 and 2024, respectively. Our yield on loans expanded to 5.71% in the second quarter 2025, up from 5.50% in the same quarter of 2024. The expansion in loan yields was a result of higher rates on new loans and variable rate commercial loans that continue to reprice. At the end of the second quarter 2025, approximately 38% of commercial loans were fixed at rates that are lower than current market. Most of those fixed rate loans will contractually reprice to variable rates over the next four years. Our cost of interest-bearing liabilities in the second quarter 2025 decreased to 2.24% from 2.38% in the second quarter 2024 due to reductions to rates in the money market and certificate of deposit products. NIM is expected to continue to expand as loans reprice and the cost of interest-bearing liabilities stabilizes.
Current wording
Net interest income was $16,162 in the third quarter of 2025 and $14,488 in the same quarter of 2024, representing 3.15% and 2.96% of earning assets, or NIM on an FTE basis, respectively. The book yield from securities was 2.42% and 2.17% during the third quarters of 2025 and 2024, respectively. Our yield on loans expanded to 5.78% in the third quarter of 2025, up from 5.72% in the same quarter of 2024. The expansion in loan yields was a result of higher rates on new loans and variable rate commercial loans that continue to reprice. Our cost of interest-bearing liabilities in the third quarter of 2025 decreased to 2.25% from 2.42% in the third quarter of 2024 due to reductions to rates in the money market and certificate of deposit products. NIM is expected to continue to expand as assets reprice and the cost of interest-bearing liabilities stabilizes.
Previous wording
For the first six months of 2025, net interest income was $29,654 compared with $26,792 in the same period of 2024. The comparison of NIM and yield on interest earning assets for the six months ending June 30, 2025 were 3.10% and 4.78%, respectively, compared to 2.81% and 4.54%, respectively, for the same period in 2024. The yield on loans expanded to 5.72%, from 5.45%, and our cost of interest bearing liabilities decreased to 2.25% from 2.33% for the first six months of 2025 and 2024, respectively. The explanations for the improvement in NIM are consistent with those provided in the year-over-year three month comparison above.
Current wording
For the first nine months of 2025, net interest income was $45,816 compared with $41,280 in the same period of 2024. The comparison of NIM and yield on interest earning assets for the nine months ending September 30, 2025 were 3.12% and 4.80%, respectively, compared to 2.87% and 4.62%, respectively, for the same period in 2024. The yield on loans expanded to 5.75%, from 5.55%, and our cost of interest bearing liabilities decreased to 2.25% from 2.36% for the first nine months of 2025 and 2024, respectively. The explanations for the improvement in NIM are consistent with those provided in the year-over-year three month comparison above.
Previous wording
The provision for credit losses was a credit of $1,099 in the second quarter of 2025, which reflects net recoveries totaling $1,432, partially offset by a $242 increase in the ACL on loans and an increase in the reserve for unfunded commitments. Recoveries totaled $1,822, of which $1,556 were related to overdrawn deposit accounts from a single customer charged off during the third quarter of 2024. The provision for loan losses in the same period of 2024 was $170 due to growth in core loans, which excludes advances to mortgage brokers (non-GAAP), and unfunded commitments.
Current wording
The provision for credit losses was a credit of $209 in the third quarter of 2025, which reflects a $172 increase in the ACL on loans, net charge offs totaling $74, and an increase in the reserve for unfunded commitments. The provision for loan losses in the same period of 2024 was $946 due to growth in core loans (non-GAAP), which excludes advances to mortgage brokers, unfunded commitments, and $1,767 in charge offs. The increase in charge offs was related to overdrawn deposit accounts from a single customer.
Previous wording
For the first half of 2025, provision for credit losses was a credit of $1,206 compared to a provision of $562 in the same period of 2024. The drivers of the credit and provision for the six month comparison are consistent with those provided in the three month comparison above. Credit quality remains strong with low levels of past due and nonaccrual loans and net charge offs. The Corporation continues to closely monitor credit quality in light of the continued economic uncertainty caused by, among other factors, the interest rate environment, employment data in recent periods, continued uncertainty regarding U.S. trade and tariff policy and the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas. Accordingly, additional provisions for credit losses may be necessary in future periods.
Current wording
For the first nine months of 2025, the provision for credit losses was a credit of $997 compared to a provision of $1,508 in the same period of 2024. Recoveries totaled $2,147, of which $1,556 were related to the overdrawn deposit accounts from a single customer charged off during the third quarter of 2024. Credit quality remains strong with low levels of past due and nonaccrual loans and net charge offs. The Corporation continues to closely monitor credit quality in light of the continued economic uncertainty caused by, among other factors, the interest rate environment, employment data in recent periods, continued uncertainty regarding U.S. trade and tariff policy, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas. Accordingly, additional provisions for credit losses may be necessary in future periods.
Previous wording
Noninterest income for the three months ended June 30, 2025 and 2024 was $3,686 and $3,608, respectively. Service charges and fees increased $48 as a result of profitability initiatives designed to increase fee income. Wealth management fees grew $36 due to growth in assets under management as compared to the second quarter of 2024. AUM totaled $678,959, $656,617, and $647,850 as of June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Earnings on BOLI policies increased $47 over the prior year quarter due to new investments in a separate account BOLI, which was offset in 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.
Current wording
Noninterest income for the three months ended September 30, 2025 and 2024 was $4,308 and $3,528, respectively. Service charges and fees increased $219 as a result of profitability initiatives designed to increase fee income. Wealth management fees grew $71 due to growth in assets under management throughout the year. Earnings on BOLI policies increased $216 over the prior year quarter due to new investments in a separate account BOLI, which was offset in part by a one-time expense of $120 due to restructuring charges. Other noninterest income includes a $163 gain on the redemption of a BOLI policy. For the first nine months of 2025, noninterest income was $11,522, compared to $10,604 in the same period of 2024. Service charges and fees, wealth management fees, earnings on BOLI policies, and other income increased $308, $147, $392, and $94, respectively. The reasons for the increase in noninterest income for the nine month comparison are the same as the three month comparison.
Previous wording
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.
Current wording
Noninterest expenses for the three-month period ended September 30, 2025 increased $757 in comparison to the same period in 2024. Compensation and benefit expenses increased $379 reflecting annual merit increases in 2025, incentives, and higher medical insurance claims compared to the third quarter of 2024. Other professional services increased $263 primarily due to a temporary increase in outsourced services. For the first nine months of 2025, noninterest expenses were $41,029, compared to $38,799 in the same period of 2024. Compensation and benefits increased $1,273 for the same reasons as the three month comparison. Other professional service fees increased $797 principally due to $173 of profitability initiative costs, $168 in legal fees related to our Nasdaq uplisting, and temporary increases in outsourced services. Offsetting these increases was a $407 decline in other losses, largely due to fraudulent related activity.
Previous wording
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.
Current wording
Income tax expense for the three months ended September 30, 2025 and 2024 was $1,036 and $561 and the ETR was 17% 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 nine months of 2025 was $3,086, compared to $1,684 in the same period of 2024 and the ETR was 18% and 15%, respectively. The ETR in the first nine months of 2025 included a one-time tax expense totaling $166 due to the taxes owed from the lifetime earnings on BOLI policies that were surrendered during the first quarter of 2025. Excluding the one- time charge, the ETR was 17% for the first nine months of 2025, which is higher than the prior year due to a higher annual forecast of pretax income.
Previous wording
Total assets increased $69,927 to $2,156,168 as of June 30, 2025, primarily due to an increase of $72,596 in interest bearing cash, $11,531 increase in AFS securities, and a $10,892 increase in BOLI policies, offset by a $26,058 decrease in gross loans.
Current wording
Total assets increased $173,413 to $2,259,654 as of September 30, 2025, primarily due to an increase of $127,465 in interest bearing cash, a $22,941 increase in AFS securities, and a $10,769 increase in BOLI policies.
Previous wording
Our AFS securities portfolio totaled $500,560 at June 30, 2025, increasing $11,531 at the end of second quarter 2025. The increase was driven by $51,000 in purchases with a weighted-average yield of 4.63%. Amortization and maturities of $47,819 offset the increase from purchases. Net unrealized losses at June 30, 2025 totaled $17,594, or 3.40%, of the portfolio and improved during the quarter due to the treasury portfolio rapidly approaching maturity and a decrease in market yields. The par value and corresponding book yields that are estimated to mature or payoff by year include: $28,200 in principal with a weighted-average book yield of 2.36% over the remainder of 2025; $217,400 at 1.17% in 2026; and $63,000 at 1.87% in 2027. Some of these securities amortize so the actual principal paydown may differ from these estimates.
Current wording
Our AFS securities portfolio totaled $511,970 at September 30, 2025, increasing $22,941 at the end of third quarter 2025. The increase was driven by $62,148 in purchases, offset by amortization and maturities of $52,359. Net unrealized losses at September 30, 2025 totaled $12,564, or 2.40%, of the portfolio and improved during the quarter due to the treasury portfolio rapidly approaching maturity and an increase in bond prices.
Previous wording
Core loans (non-GAAP) grew $34,017, led by growth in the commercial and industrial and commercial real estate portfolios of $7,096 and $22,665, respectively. Commercial loan growth during the year was in the real estate, construction, and hospitality industries. While our commercial pipeline is strong at the beginning of the third quarter, our ability to grow the loan portfolio is subject to uncertainties around timing and funding, customer demand, and overall economic conditions. Residential mortgages increased $17,796 since year-end 2024 with $11,320 of growth in the second quarter as construction drawdowns and seasonal patterns occurred. Most residential originations were adjustable rate products, which are put on the balance sheet rather than sold in the secondary market. The consumer loan portfolio continues to roll off amid decreasing demand, competition and our adherence to credit quality standards.
Current wording
Gross loans increased $8,334 to $1,431,905 as of September 30, 2025. While core loans (non-GAAP) grew $66,358, advances to mortgage brokers decreased $58,024 due to lower participation demand from our counterparty. Core loans (non-GAAP) grew $66,358, led by growth in the commercial and industrial and commercial real estate portfolios of $17,509 and $34,924, respectively. Residential mortgages increased $31,184 since year-end 2024 with $13,388 of growth in the third quarter as construction drawdowns and seasonal patterns occurred. Most residential originations were adjustable rate products, which are put on the balance sheet rather than sold in the secondary market. The consumer loan portfolio continues to slowly roll off amid decreasing demand, competition, and our adherence to credit quality standards.
Previous wording
The ACL was $12,977 at June 30, 2025, an increase of $82 from $12,895 at December 31, 2024. The increase is due to core loan growth (non-GAAP), offset by improvement in historical loss experience driven by the recovery of previously charged-off loans during the year. Nonaccrual loans were $1,164 as of June 30, 2025 compared to $282 at December 31, 2024. Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.08% at June 30, 2025, compared to 0.40% at year-end 2024. Overall, credit quality remains strong, and there are no negative trends.
Current wording
The ACL was $13,149 at September 30, 2025, an increase of $254 from $12,895 at December 31, 2024. The increase is due to core loan growth (non-GAAP), offset by improvement in historical loss experience driven by the recovery of previously charged-off loans during the year. Nonaccrual loans were $3,443 as of September 30, 2025 compared to $282 at December 31, 2024. This increase relates to one commercial real estate loan. Past due and accruing accounts between 30 to 89 days as a percentage of total loans was 0.03% at September 30, 2025, compared to 0.40% at year-end 2024. Overall, credit quality remains strong.
Previous wording
BOLI assets were $45,774 at June 30, 2025, an increase of $10,892 from December 31, 2024. The growth was mostly driven by a $10,583 investment of new policies in a separate account product at the beginning of January. In the first half of 2025, we also surrendered and/or exchanged $13,721 of existing general account policies and redeployed the funds into a separate account BOLI. As part of BOLI restructuring, another $914 of general account policies will be exchanged for separate account BOLI, which is expected to be completed by the end of the third quarter of 2025. The separate account BOLI currently yields 5.4%, compared to a weighted-average yield of 2.9% from existing general account policies.
Current wording
BOLI assets were $45,651 at September 30, 2025, an increase of $10,769 from December 31, 2024. The growth was mostly driven by a $10,583 investment of new policies in a separate account product at the beginning of January. In the first half of 2025, we also surrendered and/or exchanged over $13,000 of existing general account policies and redeployed the funds into a separate account BOLI structure, which yields a higher rate compared to existing general account policies.
Previous wording
Total deposits increased $102,316 from December 31, 2024, to $1,849,376 at June 30, 2025. The growth was driven by demand and money market deposits. The $77,104 increase in demand deposits was primarily driven by one customer with large deposits during the second quarter that are expected to be withdrawn by the customer by the end of the year. Consumer demand for retail certificates of deposit accounts continues based on the rate environment, resulting in a $8,341 increase in the balance during the first six months of 2025.
Current wording
Total deposits increased $178,542 from December 31, 2024, to $1,925,602 at September 30, 2025. The growth was driven by demand and money market deposits. Approximately half of the $134,329 increase in money market deposits was driven by one customer with large deposits during the second and third quarters that are expected to be withdrawn by the customer by the end of the year. Consumer demand for retail certificates of deposit accounts continues based on the rate environment, resulting in a $17,207 increase in the balance during the first nine months of 2025.
Previous wording
Total equity was $220,500, or $29.95 per share, at June 30, 2025 compared to $210,276, or $28.32 per share, at year-end 2024. Our tangible book value per share (non-GAAP) was $23.39 as of June 30, 2025, compared to $21.82 on December 31, 2024. Net unrealized losses on AFS securities reduced tangible book value per share by $1.90 and $2.82 for the respective periods. Share repurchases totaled 103,406 during the first six months of 2025 for a value of $2,650 at an average price of $25.63.
Current wording
Total equity was $227,420, or $30.94 per share, at September 30, 2025 compared to $210,276, or $28.32 per share, at year-end 2024. Our tangible book value per share (non-GAAP) was $24.37 as of September 30, 2025, compared to $21.82 on December 31, 2024. Net unrealized losses on AFS securities reduced tangible book value per share (non-GAAP) by $1.36 and $2.82 for the respective periods. Share repurchases totaled 122,502 during the first nine months of 2025 for a value of $3,259 at an average price of $26.60.
Previous wording
We continue to have robust liquidity levels and capital. As of June 30, 2025, we had $925,528 of unencumbered sources of liquidity and strong capital ratios; the Tier 1 Leverage Ratio was 9.04%, Tier 1 risk-based capital was 12.46%, and Total risk-based capital was 15.34%.
Current wording
We continue to have robust liquidity levels and capital. As of September 30, 2025, we had $975,856 of unencumbered sources of liquidity and strong capital ratios; the Tier 1 Leverage Ratio was 8.71%, Tier 1 risk-based capital was 12.37%, and Total risk-based capital was 15.20%.
Previous wording
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law by President Trump, which includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key provisions from the Tax Cuts and Jobs Act of 2017 and expanding certain incentives from the Inflation Reduction Act of 2022 while accelerating the phase-out of others. The Corporation continues to evaluate the OBBBA but does not anticipate that the OBBBA will have a material impact on the Corporation’s Consolidated Financial Statements. As the legislation was signed into law after the close of the second quarter of 2025, the impacts are not included in the Corporation’s operating results for the three and six months ended June 30, 2025.
Current wording
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law by President Trump, which includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key provisions from the Tax Cuts and Jobs Act of 2017 and expanding certain incentives from the Inflation Reduction Act of 2022 while accelerating the phase-out of others. The Corporation continues to evaluate the OBBBA but does not anticipate that the OBBBA will have a material impact on the Corporation’s Consolidated Financial Statements.
Previous wording
Certain amounts reported in the interim 2024 consolidated financial statements have been reclassified to conform to the 2025 presentation. Additionally, certain amounts reported as commercial and industrial loans have been reclassified as commercial real estate loans to conform to the June 30, 2025 presentation.
Current wording
Certain amounts reported in the interim 2024 consolidated financial statements have been reclassified to conform to the 2025 presentation.
Previous wording
We evaluated subsequent events after June 30, 2025 through the date our interim condensed consolidated financial statements were issued for potential recognition and disclosure. No subsequent events require financial statement recognition or disclosure between June 30, 2025 and the date our interim condensed consolidated financial statements were issued.
Current wording
We evaluated subsequent events after September 30, 2025 through the date our interim condensed consolidated financial statements were issued for potential recognition and disclosure. We determined that no subsequent events require financial statement recognition or disclosure between September 30, 2025 and the date our interim condensed consolidated financial statements were issued.
Previous wording
Capital consists solely of common stock, retained earnings, and accumulated other comprehensive income (loss). We are authorized to raise capital through dividend reinvestment, employee and director stock purchases, and shareholder stock purchases. Pursuant to these authorizations, we issued 28,830 shares or $759 of common stock during the first six months of 2025, as compared to 43,980 shares or $840 of common stock during the same period in 2024. We offer the Directors Plan in which participants purchase stock units through deferred fees, in lieu of cash payments. Pursuant to this plan, we increased shareholders’ equity by $201 and $279 during the six-month periods ended June 30, 2025 and 2024, respectively. We also grant restricted stock awards pursuant to the RSP. Pursuant to this plan, we increased shareholders’ equity by $21 during the first six months of 2025, as compared to $45 during the same period in 2024.
Current wording
Capital consists solely of common stock, retained earnings, and accumulated other comprehensive income (loss). We are authorized to raise capital through dividend reinvestment, employee and director stock purchases, and shareholder stock purchases. Pursuant to these authorizations, we issued 36,809 shares or $1,031 of common stock during the first nine months of 2025, as compared to 61,560 shares or $1,190 of common stock during the same period in 2024. We offer the Directors Plan in which participants purchase stock units through deferred fees, in lieu of cash payments. Pursuant to this plan, we increased shareholders’ equity by $233 and $332 during the nine-month periods ended September 30, 2025 and 2024, respectively. We also grant restricted stock awards pursuant to the RSP. Pursuant to this plan, we increased shareholders’ equity by $45 during the first nine months of 2025, as compared to $71 during the same period in 2024.
Previous wording
We have publicly announced a common stock repurchase program. Pursuant to this repurchase program, we repurchased 103,406 shares or $2,650 of common stock during the first six months of 2025 and 72,093 shares or $1,402 of common stock during the first six months of 2024. As of June 30, 2025, we were authorized to repurchase up to an additional 514,823 shares of common stock under the repurchae program.
Current wording
We have publicly announced a common stock repurchase program. Pursuant to this repurchase program, we repurchased 122,502 shares or $3,259 of common stock during the first nine months of 2025 and 124,969 shares or $2,419 of common stock during the first nine months of 2024. As of September 30, 2025, we were authorized to repurchase up to an additional 495,727 shares of common stock under the repurchase program.
Previous wording
Our primary sources of liquidity are retail deposits, cash and cash equivalents, and unencumbered AFS securities. Cash, cash equivalents and unencumbered AFS securities totaled $453,330, or 21.02% of assets, as of June 30, 2025, compared to $330,876, or 15.86%, as of December 31, 2024. The increase in the amount and percentage of primary liquidity is a direct result of an increase in cash, driven by deposit growth. Liquidity is important for financial institutions because of their need to meet loan funding commitments, depositor withdrawal requests, and various other commitments including expansion of operations, investment opportunities, and payment of cash dividends. Based on these same factors, daily liquidity could vary significantly.
Current wording
Our primary sources of liquidity are retail deposits, cash and cash equivalents, and unencumbered AFS securities. Cash, cash equivalents and unencumbered AFS securities totaled $487,212, or 21.56% of assets, as of September 30, 2025, compared to $330,876, or 15.86%, as of December 31, 2024. The increase in the amount and percentage of primary liquidity is a direct result of an increase in cash, driven by deposit growth. Liquidity is important for financial institutions because of their need to meet loan funding commitments, depositor withdrawal requests, and various other commitments including expansion of operations, investment opportunities, and payment of cash dividends. Based on these same factors, daily liquidity could vary significantly.
Previous wording
Our secondary sources include the ability to borrow from the FHLB, from the FRB, and through various correspondent banks in the form of federal funds purchased and lines 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 June 30, 2025, we had available lines of credit of $376,974.
Current wording
Our secondary sources include the ability to borrow from the FHLB, from the FRB, and through various correspondent banks in the form of federal funds purchased and lines 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 September 30, 2025, we had available lines of credit of $384,555.
Previous wording
(1) Includes estimated unencumbered lendable value of FHLB collateral of $250,000 as of June 30, 2025.
Current wording
(1) Includes estimated unencumbered lendable value of FHLB collateral of $230,000 as of September 30, 2025.
Previous wording
The following tables provide a detailed analysis, and reconciliation for, our non-GAAP financial measures as of, and for the:
Current wording
The following tables provide a detailed analysis, and reconciliation for, our non-GAAP financial measures as of:
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law.
Previous report — wording carried elsewhere
(4) Non-GAAP financial measure; refer to the "Non-GAAP Financial Measures" section.
Previous report — wording carried elsewhere
(1) Includes reversal of provision for credit losses in the first quarter of 2025 and provision for credit losses in the third quarter of 2024 related to overdrawn deposit accounts from a single customer.