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Capital Ratios and Shareholders' Equity
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Equity Capital Ratios and Shareholders' Equity
As of June 30, 2024 and December 31, 2023, the most recent notifications from the FRB and the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain 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 Rules. Capital requirements to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. 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 as of:
June 30, 2024
ActualMinimum
Capital
Requirement		Minimum To Be Well
Capitalized Under Prompt Corrective Action Provisions
AmountRatioAmountRatioAmountRatio
Common equity Tier 1 capital to risk weighted assets
Isabella Bank$174,164 11.90 %$102,453 7.00 %$95,135 6.50 %
Consolidated181,602 12.37 %102,821 7.00 %N/AN/A
Tier 1 capital to risk weighted assets
Isabella Bank174,164 11.90 %124,407 8.50 %117,089 8.00 %
Consolidated181,602 12.37 %124,854 8.50 %N/AN/A
Total capital to risk weighted assets
Isabella Bank187,710 12.83 %153,679 10.50 %146,361 10.00 %
Consolidated224,527 15.29 %154,232 10.50 %N/AN/A
Tier 1 capital to average assets
Isabella Bank174,164 8.49 %82,024 4.00 %102,530 5.00 %
Consolidated181,602 8.83 %82,245 4.00 %N/AN/A
December 31, 2023
ActualMinimum
Capital
Requirement		Minimum To Be Well
Capitalized Under Prompt Corrective Action Provisions
AmountRatioAmountRatioAmountRatio
Common equity Tier 1 capital to risk weighted assets
Isabella Bank$178,316 12.48 %$100,043 7.00 %$92,897 6.50 %
Consolidated180,014 12.54 %100,449 7.00 %N/AN/A
Tier 1 capital to risk weighted assets
Isabella Bank178,316 12.48 %121,481 8.50 %114,335 8.00 %
Consolidated180,014 12.54 %121,973 8.50 %N/AN/A
Total capital to risk weighted assets
Isabella Bank191,739 13.42 %150,065 10.50 %142,919 10.00 %
Consolidated222,772 15.52 %150,673 10.50 %N/AN/A
Tier 1 capital to average assets
Isabella Bank178,316 8.71 %81,935 4.00 %102,419 5.00 %
Consolidated180,014 8.76 %82,154 4.00 %N/AN/A
Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital includes a permissible portion of the allowances for credit losses and subordinated debt, net of unamortized issuance costs. There are no significant regulatory constraints placed on our capital. At June 30, 2024, the Bank exceeded all minimum capital requirements.
The following table summarizes the changes in AOCI by component for the:
Three Months Ended June 30
20242023
Unrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		TotalUnrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		Total
Balance, April 1$(27,493)$(697)$(28,190)$(28,948)$(1,366)$(30,314)
OCI before reclassifications703 — 703 (7,638)— (7,638)
Amounts reclassified from AOCI— — — (66)— (66)
Subtotal703 — 703 (7,704)— (7,704)
Tax effect(149)— (149)1,601 — 1,601 
OCI, net of tax554 — 554 (6,103)— (6,103)
Balance, June 30$(26,939)$(697)$(27,636)$(35,051)$(1,366)$(36,417)
Six Months Ended June 30
20242023
Unrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		TotalUnrealized
Gains
(Losses) on
AFS
Securities		Defined
Benefit
Pension Plan		Total
Balance, January 1$(25,199)$(697)$(25,896)$(35,828)$(1,366)$(37,194)
OCI before reclassifications(2,223)— (2,223)972 — 972 
Amounts reclassified from AOCI— — — (67)— (67)
Subtotal(2,223)— (2,223)905 — 905 
Tax effect483 — 483 (128)— (128)
OCI, net of tax(1,740)— (1,740)777 — 777 
Balance, June 30$(26,939)$(697)$(27,636)$(35,051)$(1,366)$(36,417)
Included in OCI for the three and six-month periods ended June 30, 2024 and 2023 are changes in unrealized gains and losses related to certain auction rate money market preferred stocks. These investments, for federal income tax purposes, have no deferred federal income taxes related to unrealized gains or losses given the nature of the investments.
A summary of the components of unrealized gains on AFS securities included in OCI follows for the:
Three Months Ended June 30
 20242023
Auction Rate Money Market Preferred StocksAll Other AFS SecuritiesTotalAuction Rate Money Market Preferred StocksAll Other AFS SecuritiesTotal
Unrealized gains (losses) arising during the period$(5)$708 $703 $(79)$(7,559)$(7,638)
Reclassification adjustment for net (gains) losses included in net income— — — — (66)(66)
Net unrealized gains (losses)(5)708 703 (79)(7,625)(7,704)
Tax effect— (149)(149)— 1,601 1,601 
Unrealized gains (losses), net of tax$(5)$559 $554 $(79)$(6,024)$(6,103)
 Six Months Ended June 30
 20242023
Auction Rate Money Market Preferred StocksAll Other AFS SecuritiesTotalAuction Rate Money Market Preferred StocksAll Other AFS SecuritiesTotal
Unrealized gains (losses) arising during the period$77 $(2,300)$(2,223)$295 $677 $972 
Reclassification adjustment for net (gains) losses included in net income— — — — (67)(67)
Net unrealized gains (losses)77 (2,300)(2,223)295 610 905 
Tax effect— 483 483 — (128)(128)
Unrealized gains (losses), net of tax$77 $(1,817)$(1,740)$295 $482 $777