Exhibit 99.1

Isabella Bank Corporation Reports Fourth Quarter 2024 Results

MT. PLEASANT, MICHIGAN — January 30, 2025 — Isabella Bank Corporation (OTCQX: ISBA) (the “Company” or "we") reported fourth quarter 2024 net income of $4.0 million, or $0.54 per diluted share, an increase compared to $3.8 million, or $0.51 per diluted share in the same quarter of 2023. The non-GAAP measure of core earnings in the fourth quarter 2024 totaled $3.9 million, or $0.52 per diluted share, an increase compared to $3.8 million, or $0.50 per diluted share for the same quarter of 2023.

For the full year, net income was $13.9 million, or $1.86 per diluted share, compared to $18.2 million, or $2.40 per diluted share for 2023. The non-GAAP measure of 2024 core earnings was $15.0 million, or $2.01 per diluted share, compared to $18.0 million, or $2.37 per diluted share, in 2023.

FOURTH QUARTER 2024 HIGHLIGHTS (compared to fourth quarter 2023, unless otherwise stated)

•Return on assets of 0.76%, compared to 0.73%

•Core loan growth of 4% annualized, compared to 6%

•Net interest margin of 2.99%, compared to 2.83%

•Noninterest income growth of 13%, compared to 3%

•Net loan charge-offs to average loans of 0.01%, compared to 0.03%

“Over the past several quarters we've emphasized that our financial performance is based on the strength of our core operations and maintaining our earnings momentum, and this quarter reflected the same focus,” said the Chief Executive Officer Jerome Schwind. He noted that net interest margin expanded again in the fourth quarter, when non-recurring loan recoveries are excluded, and continue to grow core loans while adhering to our disciplined credit culture.

"We enter 2025 looking forward to continued repricing of low fixed rate loans to variable rates, and the redeployment of more than $70 million of securities that will amortize and mature during the year," Schwind added. "Our teams also have been working on initiatives that will drive higher noninterest income, mostly in the second half of 2025. We are well-positioned to deliver long-term value to our shareholders in 2025 and beyond.

"What sets Isabella Bank apart is the talent, dedication, and teamwork of our employees, who continue to deliver exceptional service and financial strength, as noted by reader's choice awards across our market," Schwind added. In September 2024, the Company was honored as the Best Bank in Isabella County by The Morning Sun People’s Choice Awards. In December 2024, Midland Daily News recognized Isabella Bank as the Best Bank in Midland County through its Reader’s Choice Awards. Most recently, in January 2025, The Pioneer named Isabella Bank the Best Bank in Mecosta County serving the Big Rapids region in its Pioneer All Area Reader’s Choice Awards.

FINANCIAL CONDITION (December 31, 2024 compared to September 30, 2024, unless otherwise noted)

Total assets were $2.1 billion, down $20.7 million, primarily due to relatively flat total loans and a decline in available-for-sale (AFS) securities from amortization, maturities and a lower valuation of the portfolio in the fourth quarter.

AFS securities were $489.0 million, down $17.8 million, at the end of fourth quarter 2024. The decrease was due to a $5.5 million increase in the net unrealized loss and $17.7 million of amortization and maturities related to agency and municipal securities, offset by $5,400 of municipal bond purchases. Net unrealized losses on securities

totaled $26 million and $21 million at the end of the fourth and third quarters, respectively. Net unrealized losses as a percentage of total AFS securities increased to 5% from 4% at the end of the third quarter of 2024 due to an increase in bond yields. While bond rates may vary from quarter to quarter, unrealized losses are expected to decrease as bonds approach their maturity dates over the next two years.

Total loans remained steady at $1.42 billion at the end of the fourth quarter, due to an increase of $11.0 million in residential loans and $4.3 million in commercial and industrial loans, offset by a $13.1 million decrease in advances to mortgage brokers. The increase in residential loans was related to steady new volume and continued slowing of prepayments. The growth in commercial and industrial loans primarily was in the hotel and construction industries. While commercial real estate loans remained relatively flat with the third quarter of 2024, the fourth quarter included a payoff of a $6.4 million relationship that had an elevated credit risk. Core loans, which excluded advances to mortgage brokers, grew $12.4 million or 4% on an annualized basis.

The allowance for credit losses increased $260 thousand to $12.9 million at the end of the fourth quarter of 2024. The increase mostly reflects $118 thousand from core loan growth, and the impact from a few commercial loans migrating to a special mention risk rating during the quarter. The downgraded loans are well collateralized and are not an indication of a negative trend in the broader portfolio. Nonaccrual loan balances decreased $265 thousand to $282 thousand at the end of the fourth quarter of 2024. Past due and accruing accounts between 30 to 89 days, as a percentage of total loans, was 0.40% compared to 0.16% at the end of third quarter 2024. The increase primarily was due to customers who typically make payments about 30 days in arrears, which becomes overdue in months with 31 days. Accordingly, the increase is not believed to be an indication of deteriorating credit quality.

Total deposits were $1.75 billion, down $34.8 million, at the end of the fourth quarter. The slight decrease primarily was due to an outflow from businesses and municipalities consistent with normal seasonal patterns, in addition to some expected outflows to fund large, regional projects. Certificates of Deposit accounts (CDs) were up $4.0 million, driven by the rate environment that attracted customers and investors as a safe place with a competitive rate.

Tangible book value per share was $21.82 as of December 31, 2024, compared to $22.14 on September 30, 2024. Net unrealized losses on AFS securities reduced tangible book value per share by $2.82 and $2.23 for the respective periods. Share repurchases totaled 27,608 during the fourth quarter for a value of $657 thousand at an average price of $23.80.

RESULTS OF OPERATIONS (December 31, 2024 to December 31, 2023 quarterly comparison, unless otherwise noted)

Net interest margin (NIM) was 2.99%, an increase from 2.98% last quarter and 2.83% in the fourth quarter of 2023. During the third quarter, we recovered the full contractual interest from two commercial loans that previously were charged off, which contributed 6 basis points to NIM. The book yield from securities was 2.18% and 2.23% during fourth quarters of 2024 and 2023, respectively. The weighted average maturity of our U.S. Treasury portfolio is less than 1.4 years, and the proceeds are expected to be reinvested in market rate loans and securities, or to pay off borrowed funds. The yield on loans expanded to 5.67% in fourth quarter, up from 5.20% in the same quarter of 2023. The expansion in loan yields was a result of higher rates on new loans and fixed rate commercial loans that have and continue to reprice to variable rates. At the end of the fourth quarter, approximately 40% of commercial loans were fixed at rates lower than current market rates, but the majority will contractually reprice to variable rates over the next four years. Cost of interest-bearing liabilities increased to 2.38% from 2.11% in the fourth quarter of 2023, but have stabilized compared to the cost in the previous quarter of 2.43%.

The provision for credit losses in the fourth quarter 2024 was $376 thousand, which reflects the $260 thousand change in the allowance for credit losses on loans and net charge-offs totaling $102 thousand. The provision for loan losses in the same period of 2023 was $684 thousand reflecting $200 thousand from growth in core loans and $381 thousand in net charge-offs. Charge-offs in the fourth quarter of 2023 included a $247 thousand write down of a commercial and industrial loan that was recovered in the third quarter of 2024.

Noninterest income was $4.0 million, an increase from $3.5 million in the fourth quarter of 2023. Customer service fees grew $81 thousand based on a higher number of transactional accounts. Wealth management income increased $119 thousand, or 13%, due to higher assets under management (AUM). Average AUM in the fourth quarter 2024 increased $53.6 million, or 9% over the prior year quarter, driven by growth in new accounts and higher security valuations. Other noninterest income in the fourth quarter 2024 included a $103 thousand recovery from a security that was written down in a previous year and $74 thousand from net gains on foreclosed assets.

Noninterest expenses were $13.3 million in the fourth quarter 2024 compared to $11.9 million in same quarter of 2023. The change mostly was due to higher compensation and benefit expenses totaling $1.2 million, which reflect annual merit increases in 2024 and more medical insurance claims compared to the fourth quarter of 2023.

About the Corporation

Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state-chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving its customers' and communities' local banking needs for over 120 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services. The Bank has locations throughout eight Mid-Michigan counties: Bay, Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.

For more information about Isabella Bank Corporation, visit the Investor Relations link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation’s investor relations firm is Stonegate Capital Partners, Inc. (www.stonegateinc.com).

Contact

Lori Peterson, Director of Marketing

Phone: 989-779-6333 Fax: 989-775-5501

Forward-Looking Statements

Information in this release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended and Rule 3b-6 promulgated thereunder. We intend such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995, and are included in this statement for purposes of these safe harbor provisions. Forward-looking statements generally relate to losses, impact of events, financial condition, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting the Company and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result", “expect”, “plan”, “believe”, “estimate”, “anticipate”, “strategy”, “trend”, “forecast”, “outlook”, “project”, “intend”, “assume”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, or included in any subsequent filing by the Company with the Securities and Exchange Commission. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Company cautions you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. A reconciliation of non-GAAP financial measures to GAAP measures is provided in this release.

Table Index			Consolidated Financial Schedules (Unaudited)
A			Selected Financial Data
B			Consolidated Balance Sheets - Quarterly Trend
C			Consolidated Statements of Income
D			Consolidated Statements of Income - Quarterly Trend
E			Average Yields and Costs
F			Average Balances
G			Asset Quality Analysis
H			Consolidated Loan and Deposit Analysis
I			Reconciliation of Non-GAAP Financial Measures

SELECTED FINANCIAL DATA (UNAUDITED)

(Dollars in thousands except per share amounts and ratios)

			Three Months Ended
			December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023
PER SHARE
Basic earnings			$	0.54					$	0.44					$	0.47					$	0.42					$	0.51
Diluted earnings			0.54						0.44						0.46						0.42						0.51
Core diluted earnings (2)			0.52						0.61						0.46						0.41						0.50
Dividends			0.28						0.28						0.28						0.28						0.28
Book value (1)			28.32						28.63						27.06						26.80						27.04
Tangible book value (1)			21.82						22.14						20.60						20.35						20.59
Market price (1)			25.99						21.21						18.20						19.40						21.50
Common shares outstanding (1) (3)			7,424,893						7,438,720						7,474,016						7,488,101						7,485,889
Average number of diluted common shares outstanding (3)			7,453,033						7,473,184						7,494,828						7,507,739						7,526,515
PERFORMANCE RATIOS
Return on average total assets			0.76		%				0.62		%				0.68		%				0.61		%				0.73		%
Core return on average total assets (2)			0.74		%				0.87		%				0.68		%				0.60		%				0.73		%
Return on average shareholders' equity			7.47		%				6.26		%				6.97		%				6.19		%				7.98		%
Core return on average shareholders' equity (2)			7.29		%				8.70		%				6.96		%				6.08		%				7.97		%
Return on average tangible shareholders' equity			9.66		%				8.15		%				9.19		%				8.12		%				10.73		%
Core return on average tangible shareholders' equity (2)			9.43		%				11.32		%				9.17		%				7.97		%				10.71		%
Net interest margin yield (fully taxable equivalent) (2)			2.99		%				2.98		%				2.85		%				2.79		%				2.83		%
Efficiency ratio (2)			71.20		%				72.30		%				73.93		%				74.84		%				68.41		%
Gross loan to deposit ratio (1)			81.48		%				79.93		%				80.22		%				77.22		%				78.29		%
Shareholders' equity to total assets (1)			10.08		%				10.11		%				9.82		%				9.75		%				9.83		%
Tangible shareholders' equity to tangible assets (1)			7.95		%				8.00		%				7.65		%				7.58		%				7.66		%
ASSETS UNDER MANAGEMENT
Wealth assets under management (1)			658,042						679,858						647,850						660,645						641,027
ASSET QUALITY
Nonaccrual loans (1)			282						547						994						1,283						982
Foreclosed assets (1)			544						546						629						579						406
Net loan charge-offs (recoveries)			102						1,359						393						46						381
Net loan charge-offs (recoveries) to average loans outstanding			0.01		%				0.10		%				0.03		%				0.00		%				0.03		%
Nonperforming loans to gross loans (1)			0.02		%				0.04		%				0.07		%				0.09		%				0.08		%
Nonperforming assets to total assets (1)			0.04		%				0.06		%				0.08		%				0.09		%				0.07		%
Allowance for credit losses to gross loans (1)			0.91		%				0.89		%				0.95		%				0.98		%				0.97		%
CAPITAL RATIOS (1)
Tier 1 leverage			8.86		%				8.77		%				8.83		%				8.80		%				8.76		%
Common equity tier 1 capital			12.21		%				12.08		%				12.37		%				12.36		%				12.54		%
Tier 1 risk-based capital			12.21		%				12.08		%				12.37		%				12.36		%				12.54		%
Total risk-based capital			15.06		%				14.90		%				15.29		%				15.31		%				15.52		%

(1) At end of period

(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I

(3) Whole shares

A

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

			December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023
ASSETS
Cash and demand deposits due from banks			$	22,830					$	27,019					$	22,690					$	22,987					$	25,628
Fed Funds sold and interest bearing balances due from banks			1,712						359						869						2,231						8,044
Total cash and cash equivalents			24,542						27,378						23,559						25,218						33,672
Available-for-sale securities, at fair value			489,029						506,806						505,646						517,585						528,148
Federal Home Loan Bank stock			12,762						12,762						12,762						12,762						12,762
Mortgage loans held-for-sale			242						504						637						366						—
Loans			1,423,571						1,424,283						1,381,636						1,365,508						1,349,463
Less allowance for credit losses			12,895						12,635						13,095						13,390						13,108
Net loans			1,410,676						1,411,648						1,368,541						1,352,118						1,336,355
Premises and equipment			27,659						27,674						27,843						27,951						27,639
Bank-owned life insurance policies			34,882						34,625						34,382						34,131						33,892
Goodwill and other intangible assets			48,283						48,283						48,283						48,284						48,284
Other assets			38,166						37,221						38,486						39,161						38,216
Total assets			$	2,086,241					$	2,106,901					$	2,060,139					$	2,057,576					$	2,058,968
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Demand deposits			$	416,373					$	421,493					$	412,193					$	413,272					$	428,505
Interest bearing demand deposits			341,366						376,592						338,329						349,401						320,737
Savings			601,730						600,150						603,328						639,491						628,079
Certificates of deposit			387,591						383,597						368,449						366,143						346,374
Total deposits			1,747,060						1,781,832						1,722,299						1,768,307						1,723,695
Short-term borrowings			53,567						52,434						44,194						42,998						46,801
Federal Home Loan Bank advances			30,000						15,000						45,000						—						40,000
Subordinated debt, net of unamortized issuance costs			29,424						29,402						29,380						29,357						29,335
Total borrowed funds			112,991						96,836						118,574						72,355						116,136
Other liabilities			15,914						15,248						17,017						16,240						16,735
Total liabilities			1,875,965						1,893,916						1,857,890						1,856,902						1,856,566
Shareholders’ equity
Common stock			126,224						125,218						126,126						126,656						127,323
Shares to be issued for deferred compensation obligations			2,383						3,981						3,951						3,890						3,693
Retained earnings			103,024						101,065						99,808						98,318						97,282
Accumulated other comprehensive income (loss)			(21,355)						(17,279)						(27,636)						(28,190)						(25,896)
Total shareholders’ equity			210,276						212,985						202,249						200,674						202,402
Total liabilities and shareholders' equity			$	2,086,241					$	2,106,901					$	2,060,139					$	2,057,576					$	2,058,968

B

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share amounts)

															Year Ended  December 31
															2024						2023
Interest income
Loans															$	77,295					$	65,670
Available-for-sale securities															11,093						12,156
Federal Home Loan Bank stock															640						355
Federal funds sold and other															950						1,450
Total interest income															89,978						79,631
Interest expense
Deposits															29,690						18,352
Short-term borrowings															1,439						961
Federal Home Loan Bank advances															1,949						1,309
Subordinated debt, net of unamortized issuance costs															1,065						1,065
Total interest expense															34,143						21,687
Net interest income															55,835						57,944
Provision for credit losses															1,884						629
Net interest income after provision for credit losses															53,951						57,315
Noninterest income
Service charges and fees															8,626						8,297
Wealth management fees															4,041						3,557
Earnings on bank-owned life insurance policies															1,007						920
Net gain on sale of mortgage loans															213						317
Other															689						736
Total noninterest income															14,576						13,827
Noninterest expenses
Compensation and benefits															28,576						25,905
Occupancy and equipment															10,524						10,297
Other professional services															2,212						2,340
ATM and debit card fees															1,975						1,767
FDIC insurance premiums															1,132						922
Other															7,710						8,079
Total noninterest expenses															52,129						49,310
Income before income tax expense															16,398						21,832
Income tax expense															2,509						3,665
Net income															$	13,889					$	18,167
Earnings per common share
Basic															$	1.86					$	2.42
Diluted															1.86						2.40
Cash dividends per common share															1.12						1.12

C

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share amounts)

			Three Months Ended
			December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023
Interest income
Loans			$	20,145					$	20,230					$	18,863					$	18,057					17,580
Available-for-sale securities			2,656						2,749						2,804						2,884						2,926
Federal Home Loan Bank stock			168						168						158						146						129
Federal funds sold and other			200						194						263						293						421
Total interest income			23,169						23,341						22,088						21,380						21,056
Interest expense
Deposits			7,583						7,631						7,313						7,163						6,399
Short-term borrowings			413						384						321						321						357
Federal Home Loan Bank advances			352						571						638						388						422
Subordinated debt, net of unamortized issuance costs			266						267						266						266						266
Total interest expense			8,614						8,853						8,538						8,138						7,444
Net interest income			14,555						14,488						13,550						13,242						13,612
Provision for credit losses			376						946						170						392						684
Net interest income after provision for credit losses			14,179						13,542						13,380						12,850						12,928
Noninterest income
Service charges and fees			2,293						2,159						2,128						2,046						2,212
Wealth management fees			1,051						1,003						1,048						939						932
Earnings on bank-owned life insurance policies			259						252						253						243						239
Net gain on sale of mortgage loans			75						37						67						34						85
Other			294						77						112						206						48
Total noninterest income			3,972						3,528						3,608						3,468						3,516
Noninterest expenses
Compensation and benefits			7,340						7,251						6,970						7,015						6,116
Occupancy and equipment			2,554						2,645						2,619						2,706						2,554
Other professional services			584						588						527						513						576
ATM and debit card fees			516						503						487						469						487
FDIC insurance premiums			309						291						280						252						233
Other			2,027						1,950						2,012						1,721						1,949
Total noninterest expenses			13,330						13,228						12,895						12,676						11,915
Income before income tax expense			4,821						3,842						4,093						3,642						4,529
Income tax expense			825						561						612						511						726
Net income			$	3,996					$	3,281					$	3,481					$	3,131					$	3,803
Earnings per common share
Basic			$	0.54					$	0.44					$	0.47					$	0.42					$	0.51
Diluted			0.54						0.44						0.46						0.42						0.51
Cash dividends per common share			0.28						0.28						0.28						0.28						0.28

D

AVERAGE YIELDS AND COSTS (UNAUDITED)

The following schedules present yield and daily average amounts outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. For analytical purposes, interest income is reported on a fully taxable equivalent (FTE) basis using a federal income tax rate of 21%. Federal Reserve Bank restricted equity holdings are included in other interest earning assets.

			Three Months Ended
			December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023
INTEREST EARNING ASSETS
Loans (1)			5.67		%				5.73		%				5.52		%				5.38		%				5.20		%
Available-for-sale securities			2.18		%				2.21		%				2.24		%				2.26		%				2.23		%
Federal Home Loan Bank stock			5.24		%				5.24		%				4.98		%				4.60		%				4.04		%
Fed funds sold			4.59		%				5.55		%				5.51		%				5.72		%				5.71		%
Other			5.00		%				5.29		%				7.53		%				4.67		%				6.20		%
Total interest earning assets			4.74		%				4.77		%				4.61		%				4.47		%				4.35		%
INTEREST BEARING LIABILITIES
Interest bearing demand deposits			0.41		%				0.33		%				0.39		%				0.48		%				0.63		%
Savings			2.17		%				2.28		%				2.18		%				2.11		%				1.76		%
Certificates of deposit			4.07		%				4.13		%				4.01		%				3.84		%				3.60		%
Short-term borrowings			3.30		%				3.17		%				3.18		%				3.18		%				2.83		%
Federal Home Loan Bank advances			4.77		%				5.60		%				5.64		%				5.64		%				5.64		%
Subordinated debt, net of unamortized issuance costs			3.60		%				3.61		%				3.64		%				3.65		%				3.60		%
Total interest bearing liabilities			2.38		%				2.43		%				2.39		%				2.28		%				2.11		%
Net yield on interest earning assets (FTE) (2)			2.99		%				2.98		%				2.85		%				2.79		%				2.83		%
Net interest spread			2.36		%				2.34		%				2.22		%				2.19		%				2.24		%

(1) Includes loans held-for-sale and nonaccrual loans

(2) Non-GAAP financial measure; refer to the Reconciliation of Non-GAAP Financial Measures (Unaudited) in table I

E

AVERAGE BALANCES (UNAUDITED)

(Dollars in thousands)

			Three Months Ended
			December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023
INTEREST EARNING ASSETS
Loans (1)			$	1,412,578					$	1,403,810					$	1,375,523					$	1,348,749					$	1,340,271
Available-for-sale securities (2)			522,733						536,379						545,827						557,030						564,068
Federal Home Loan Bank stock			12,762						12,762						12,762						12,762						12,762
Fed funds sold			8						4						7						7						13
Other (3)			15,905						14,597						14,054						25,210						26,823
Total interest earning assets			1,963,986						1,967,552						1,948,173						1,943,758						1,943,937
NONEARNING ASSETS
Allowance for credit losses			(12,598)						(13,125)						(13,431)						(13,100)						(12,780)
Cash and demand deposits due from banks			22,800						25,903						23,931						24,018						23,244
Premises and equipment			27,773						27,868						27,999						28,022						27,444
Other assets			92,608						87,002						80,539						84,059						71,592
Total assets			$	2,094,569					$	2,095,200					$	2,067,211					$	2,066,757					$	2,053,437
INTEREST BEARING LIABILITIES
Interest bearing demand deposits			$	345,529					$	358,383					$	342,931					$	345,842					$	317,996
Savings			599,833						599,679						613,601						633,904						634,539
Certificates of deposit			386,871						375,936						366,440						357,541						338,852
Short-term borrowings			49,777						48,151						40,593						40,623						50,049
Federal Home Loan Bank advances			29,346						40,588						45,510						27,692						29,674
Subordinated debt, net of unamortized issuance costs			29,410						29,388						29,365						29,342						29,320
Total interest bearing liabilities			1,440,766						1,452,125						1,438,440						1,434,944						1,400,430
NONINTEREST BEARING LIABILITIES AND SHAREHOLDERS' EQUITY
Demand deposits			425,116						418,973						411,282						412,228						446,747
Other liabilities			15,775						15,658						16,755						16,151						17,302
Shareholders’ equity			212,912						208,444						200,734						203,434						188,958
Total liabilities and shareholders’ equity			$	2,094,569					$	2,095,200					$	2,067,211					$	2,066,757					$	2,053,437

(1) Includes loans held-for-sale and nonaccrual loans

(2) Average balances for available-for-sale securities are based on amortized cost

(3) Includes average interest-bearing deposits with other banks, net of Federal Reserve daily cash letter

F

ASSET QUALITY ANALYSIS (UNAUDITED)

(Dollars in thousands)

The following table outlines our quarter-to-date asset quality analysis as of, and for the three-month periods ended:

			December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023
NONPERFORMING ASSETS
Commercial and industrial			$	—					$	120					$	271					$	567					$	491
Commercial real estate			—						—						—						234						—
Agricultural			—						—						167						189						205
Residential real estate			282						427						556						293						286
Consumer			—						—						—						—						—
Total nonaccrual loans			282						547						994						1,283						982
Accruing loans past due 90 days or more			19						64						15						—						87
Total nonperforming loans			301						611						1,009						1,283						1,069
Foreclosed assets			544						546						629						579						406
Debt securities			—						12						12						12						12
Total nonperforming assets			$	845					$	1,169					$	1,650					$	1,874					$	1,487
Nonperforming loans to gross loans			0.02		%				0.04		%				0.07		%				0.09		%				0.08		%
Nonperforming assets to total assets			0.04		%				0.06		%				0.08		%				0.09		%				0.07		%
Allowance for credit losses as a % of nonaccrual loans (1)			N/M						N/M						N/M						N/M						N/M
ALLOWANCE FOR CREDIT LOSSES
Allowance at beginning of period			$	12,635					$	13,095					$	13,390					$	13,108					$	12,767
Charge-offs			299						1,767						527						191						452
Recoveries			197						408						134						145						71
Net loan charge-offs (recoveries)			102						1,359						393						46						381
Provision for credit losses - loans			362						899						98						328						722
Allowance at end of period			$	12,895					$	12,635					$	13,095					$	13,390					$	13,108
Allowance for credit losses to gross loans			0.91		%				0.89		%				0.95		%				0.98		%				0.97		%
Reserve for unfunded commitments			512						498						450						379						315
Provision for credit losses - unfunded commitments			14						47						72						64						(38)
Reserve to unfunded commitments			0.15		%				0.15		%				0.14		%				0.11		%				0.10		%
NET LOAN CHARGE-OFFS (RECOVERIES)
Commercial and industrial			$	13					$	(6)					$	334					$	(2)					$	242
Commercial real estate			(2)						(318)						(29)						(6)						(3)
Agricultural			(4)						—						—						(2)						(6)
Residential real estate			(16)						(20)						(19)						(63)						(14)
Consumer			111						1,703						107						119						162
Total			$	102					$	1,359					$	393					$	46					$	381
Net (recoveries) charge-offs (Quarter to Date annualized to average loans)			0.03		%				0.39		%				0.11		%				0.01		%				0.11		%
Net (recoveries) charge-offs (Year to Date annualized to average loans)			0.14		%				0.17		%				0.00		%				0.00		%				0.01		%
DELINQUENT AND NONACCRUAL LOANS
Accruing loans 30-89 days past due			$	5,682					$	2,226					$	1,484					$	7,938					$	3,895
Accruing loans past due 90 days or more			19						64						15						—						87
Total accruing past due loans			5,701						2,290						1,499						7,938						3,982
Nonaccrual loans			282						547						994						1,283						982
Total past due and nonaccrual loans			$	5,983					$	2,837					$	2,493					$	9,221					$	4,964

(1) N/M: Not meaningful

G

CONSOLIDATED LOAN AND DEPOSIT ANALYSIS (UNAUDITED)

(Dollars in thousands)

Loan Analysis

			December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023						Annualized Growth % Quarter to Date
Commercial and industrial			$	244,894					$	240,589					$	238,245					$	226,281					$	209,738					7.16		%
Commercial real estate			547,447						547,038						547,005						561,123						564,244						0.30		%
Advances to mortgage brokers			63,080						76,187						39,300						29,688						18,541						(68.81)		%
Agricultural			99,694						96,794						94,996						93,695						99,994						11.98		%
Total commercial loans			955,115						960,608						919,546						910,787						892,517						(2.29)		%
Residential real estate			380,872						369,846						365,188						356,658						356,418						11.92		%
Consumer			87,584						93,829						96,902						98,063						100,528						(26.62)		%
Gross loans			$	1,423,571					$	1,424,283					$	1,381,636					$	1,365,508					$	1,349,463					(0.20)		%

Deposit Analysis

			December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023						Annualized Growth % Quarter to Date
Noninterest bearing demand deposits			$	416,373					$	421,493					$	412,193					$	413,272					$	428,505					(4.86)		%
Interest bearing demand deposits			341,366						376,592						338,329						349,401						320,737						(37.42)		%
Savings			601,730						600,150						603,328						639,491						628,079						1.05		%
Certificates of deposit			387,591						383,597						368,449						366,143						346,374						4.16		%
Total deposits			$	1,747,060					$	1,781,832					$	1,722,299					$	1,768,307					$	1,723,695					(7.81)		%

H

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(Dollars in thousands except per share amounts and ratios)

						Three Months Ended
						December 31 2024						September 30 2024						June 30 2024						March 31 2024						December 31 2023
Net income						$	3,996					$	3,281					$	3,481					$	3,131					$	3,803
Nonrecurring items
Net gains (losses) on foreclosed assets						74						4						6						69						8
Overdraft (charge-off) recoveries (1)						66						(1,622)						—						—						—
Profitability initiative cost						(23)						—						—						—						—
Income tax impact						(25)						340						(1)						(14)						(2)
Total nonrecurring items						92						(1,278)						5						55						6
Core net income			(A)			$	3,904					$	4,559					$	3,476					$	3,076					$	3,797
Noninterest expenses						$	13,330					$	13,228					$	12,895					$	12,676					$	11,915
Amortization of acquisition intangibles						1						—						1						—						1
Core noninterest expense			(B)			$	13,329					$	13,228					$	12,894					$	12,676					$	11,914
Net interest income						$	14,555					$	14,488					$	13,550					$	13,242					$	13,612
Tax equivalent adjustment for net interest margin						213						232						237						246						246
Net interest income (FTE)			(C)			14,768						14,720						13,787						13,488						13,858
Noninterest income						3,972						3,528						3,608						3,468						3,516
Tax equivalent adjustment for efficiency ratio						54						53						53						51						50
Core revenue (FTE)						18,794						18,301						17,448						17,007						17,424
Nonrecurring items
Net gains (losses) on foreclosed assets						74						4						6						69						8
Total nonrecurring items						74						4						6						69						8
Core revenue			(D)			$	18,720					$	18,297					$	17,442					$	16,938					$	17,416
Efficiency ratio			(B/D)			71.20		%				72.30		%				73.93		%				74.84		%				68.41		%
Average earning assets			(E)			1,963,986						1,967,552						1,948,173						1,943,758						1,943,937
Net yield on interest earning assets (FTE)			(C/E)			2.99		%				2.98		%				2.85		%				2.79		%				2.83		%
Average assets			(F)			2,094,569						2,095,200						2,067,211						2,066,757						2,053,437
Average shareholders' equity			(G)			212,912						208,444						200,734						203,434						188,958
Average tangible shareholders' equity			(H)			164,629						160,161						152,451						155,150						140,674
Average diluted shares outstanding (2)			(I)			7,453,033						7,473,184						7,494,828						7,507,739						7,526,515
Core diluted earnings per share			(A/I)			$	0.52					$	0.61					$	0.46					$	0.41					$	0.50
Core return on average assets			(A/F)			0.74		%				0.87		%				0.68		%				0.60		%				0.73		%
Core return on average shareholders' equity			(A/G)			7.29		%				8.70		%				6.96		%				6.08		%				7.97		%
Core return on average tangible shareholders' equity			(A/H)			9.43		%				11.32		%				9.17		%				7.97		%				10.71		%

(1) Includes provision for credit losses related to overdrawn deposit accounts from a single customer in the third quarter of 2024.

(2) Whole shares

I