Embassy Bancorp Files Q2 2024 10-Q

TL;DR

**Embassy Bancorp Q2 10-Q filed. Financials updated.**

AI Summary

Embassy Bancorp, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial data and disclosures relevant to investors are presented in this report.

Why It Matters

This filing provides investors with the latest financial health and performance indicators for Embassy Bancorp, Inc., crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags or significant negative news indicated in the provided snippet.

Key Players & Entities

• Embassy Bancorp, Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240812 (date) — Filing date

FAQ

Key Financial Figures

• $1.00 — res outstanding as of August 2, 2024 ($1.00 Par Value) 7,617,680 (Title Class)

Filing Documents

• emyb-20240630x10q.htm (10-Q) — 8049KB
• emyb-20240630xex31_1.htm (EX-31.1) — 18KB
• emyb-20240630xex31_2.htm (EX-31.2) — 18KB
• emyb-20240630xex32.htm (EX-32) — 13KB
• 0001449794-24-000020.txt ( ) — 29747KB
• emyb-20240630.xsd (EX-101.SCH) — 36KB
• emyb-20240630_cal.xml (EX-101.CAL) — 87KB
• emyb-20240630_def.xml (EX-101.DEF) — 207KB
• emyb-20240630_lab.xml (EX-101.LAB) — 397KB
• emyb-20240630_pre.xml (EX-101.PRE) — 396KB
• emyb-20240630x10q_htm.xml (XML) — 9468KB

– Financial Information

Part I – Financial Information 3

– Financial Statements

Item 1 – Financial Statements Consolidated Balance Sheets (Unaudited) 3 Consolidated Statements of Income (Unaudited) 4 Consolidated Statements of Comprehensive (Loss) Income (Unaudited) 5 Consolidated Statements of Stockholders' Equity (Unaudited) 6 Consolidated Statements of Cash Flows (Unaudited) 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9

– Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 28

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 41

– Controls and Procedures

Item 4 – Controls and Procedures 42

- Other Information

Part II - Other Information 42

- Legal Proceedings

Item 1 - Legal Proceedings 42

- Risk Factors

Item 1A - Risk Factors 42

- Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 42

- Defaults Upon Senior Securities

Item 3 - Defaults Upon Senior Securities 42

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 42

- Other Information

Item 5 - Other Information 42

- Exhibits

Item 6 - Exhibits 43

Signatures

Signatures 44 2 Embassy Bancorp, Inc.

– Financial Information

Part I – Financial Information

– Fi nan cial Statements

Item 1 – Fi nan cial Statements Consolidated Balance Sheets (Current Period Unaudited) June 30, December 31, ASSETS 2024 2023 (In Thousands, Except Share Data) Cash and due from banks $ 17,633 $ 16,133 Interest bearing demand deposits with banks 117,253 61,790 Federal funds sold 1,000 1,000 Cash and Cash Equivalents 135,886 78,923 Securities available for sale 258,812 276,060 Restricted investment in bank stock 1,038 2,458 Loans receivable, net of allowance for credit losses of $ 12,246 in 2024; $ 12,461 in 2023 1,250,478 1,241,578 Premises and equipment, net of accumulated depreciation 3,526 3,734 Bank owned life insurance 35,866 26,310 Accrued interest receivable 3,413 3,298 Other assets 27,681 24,135 Total Assets $ 1,716,700 $ 1,656,496 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $ 351,810 $ 328,669 Interest bearing 1,215,790 1,147,564 Total Deposits 1,567,600 1,476,233 Securities sold under agreements to repurchase 19,577 15,237 Short-term borrowings - 35,000 Accrued interest payable 7,783 7,844 Other liabilities 19,120 16,527 Total Liabilities 1,614,080 1,550,841 Stockholders' Equity: Common stock, $ 1 par value; authorized 20,000,000 shares; 2024 issued 7,779,691 shares; outstanding 7,617,680 shares; 2023 issued 7,758,247 shares; outstanding 7,596,236 shares; 7,780 7,758 Surplus 28,659 28,246 Retained earnings 117,847 116,018 Accumulated other comprehensive loss ( 48,999 ) ( 43,700 ) Treasury stock, at cost: 162,011 shares at June 30, 2024 and December 31, 2023, respectively ( 2,667 ) ( 2,667 ) Total Stockholders' Equity 102,620 105,655 Total Liabilities and Stockholders' Equity $ 1,716,700 $ 1,656,496 See notes to consolidated financial statements (unaudited). 3 Embassy Bancorp, Inc. Consolidated Statements of In

Notes to Consolidated Financial Statements (Unaudited )

Notes to Consolidated Financial Statements (Unaudited ) Note 1 – Basis of Presentation Embassy Bancorp, Inc. (the "Company") is a Pennsylvania corporation organized in 2008 and registered as a bank holding company pursuant to the Bank Holding Company Act of 1956, as amended (the "BHC Act"). The Company was formed for purposes of acquiring Embassy Bank For The Lehigh Valley (the "Bank") in connection with the reorganization of the Bank into a bank holding company structure, which was consummated on November 11, 2008. Accordingly, the Company owns all of the capital stock of the Bank, giving the organization more flexibility in meeting its capital needs as the Company continues to grow. Embassy Holdings, LLC (the "LLC") is a wholly-owned subsidiary of the Bank organized to engage in the holding of property acquired by the Bank in satisfaction of debts previously contracted. As such, the consolidated financial statements contained herein include the accounts of the Company, the Bank and the LLC. All significant intercompany transactions and balances have been eliminated. The Bank, which is the Company's principal operating subsidiary, was originally incorporated as a Pennsylvania bank on May 11, 2001 and opened its doors on November 6, 2001. It was formed by a group of local business persons and professionals with significant prior experience in community banking in the Lehigh Valley area of Pennsylvania, the Bank's primary market area. The accompanying unaudited financial statements have been prepared in accordance with United States of America generally accepted accounting principles ("US GAAP") for interim financial information and in accordance with instructions for Form 10-Q and Rule 10-01 of the Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals)

Notes to Consolidated Financial Statements (Unaudited )

Notes to Consolidated Financial Statements (Unaudited ) Note 3 – Securities Available For Sale At June 30, 2024 and December 31, 2023, respectively, the amortized cost and fair values of securities available-for-sale were as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) June 30, 2024: U.S. Treasury securities $ 12,439 $ - $ ( 201 ) $ 12,238 U.S. Government agency obligations 2,474 - ( 105 ) 2,369 Municipal bonds 72,713 19 ( 14,018 ) 58,714 U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - commercial 509 - ( 73 ) 436 U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential 232,701 - ( 47,646 ) 185,055 Total $ 320,836 $ 19 $ ( 62,043 ) $ 258,812 December 31, 2023: U.S. Treasury securities $ 14,867 $ - $ ( 277 ) $ 14,590 U.S. Government agency obligations 2,463 - ( 124 ) 2,339 Municipal bonds 73,128 73 ( 12,405 ) 60,796 U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - commercial 509 - ( 67 ) 442 U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential 240,409 2 ( 42,518 ) 197,893 Total $ 331,376 $ 75 $ ( 55,391 ) $ 276,060 The amortized cost and fair value of securities as of June 30, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without any penalties. Amortized Fair Cost Value (In Thousands) Due in one year or less $ 9,938 $ 9,804 Due after one year through five years 7,323 7,010 Due after five years through ten years 6,875 6,467 Due after ten years 63,490 50,040 87,626 73,321 U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - commercial

Notes to Consolidated Financial Statements (Unaudited )

Notes to Consolidated Financial Statements (Unaudited ) The following table shows the Company's investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2024 and December 31, 2023: Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2024: (In Thousands) U.S. Treasury securities $ - $ - $ 12,238 $ ( 201 ) $ 12,238 $ ( 201 ) U.S. Government agency obligations - - 2,369 ( 105 ) 2,369 ( 105 ) Municipal bonds 12,000 ( 1,014 ) 45,615 ( 13,004 ) 57,615 ( 14,018 ) U.S. Government Sponsored Enterprise (GSE) - Mortgage -backed securities - commercial - - 436 ( 73 ) 436 ( 73 ) U.S. Government Sponsored Enterprise (GSE) - Mortgage -backed securities - residential 23 - 184,980 ( 47,646 ) 185,003 ( 47,646 ) Total Temporarily Impaired Securities $ 12,023 $ ( 1,014 ) $ 245,638 $ ( 61,029 ) $ 257,661 $ ( 62,043 ) . December 31, 2023: U.S. Treasury securities $ - $ - $ 14,590 $ ( 277 ) $ 14,590 $ ( 277 ) U.S. Government agency obligations - - 2,339 ( 124 ) 2,339 ( 124 ) Municipal bonds 5,561 ( 201 ) 52,267 ( 12,204 ) 57,828 ( 12,405 ) U.S. Government Sponsored Enterprise (GSE) - Mortgage -backed securities - commercial - - 442 ( 67 ) 442 ( 67 ) U.S. Government Sponsored Enterprise (GSE) - Mortgage -backed securities - residential - - 197,796 ( 42,518 ) 197,796 ( 42,518 ) Total Temporarily Impaired Securities $ 5,561 $ ( 201 ) $ 267,434 $ ( 55,190 ) $ 272,995 $ ( 55,391 ) The Company had one hundred ninety-six ( 196 ) securities in an unrealized loss position at June 30, 2024 and one hundred eighty-nine (

Notes to Consolidated Financial Statements (Unaudited )

Notes to Consolidated Financial Statements (Unaudited ) Management evaluates the FHLB and ACBB restricted stock for impairment. Management's determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the issuer as compared to the capital stock amount for the issuer and the length of time this situation has persisted, (2) commitments by the issuer to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuer, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuer. Based upon its evaluation of the foregoing criteria, management believes no impairment charge is necessary related to the FHLB or ACBB stock as of June 30, 2024. Note 5 – Loans and Credit Quality The following table presents the composition of loans receivable at June 30, 2024 and December 31, 2023, respectively: June 30, 2024 December 31, 2023 Percentage of Percentage of Balance total Loans Balance total Loans (Dollars in Thousands) Commercial real estate $ 535,850 42.46 % $ 539,034 43.00 % Commercial construction 19,230 1.52 % 16,840 1.34 % Commercial 38,788 3.07 % 33,951 2.71 % Residential real estate 667,769 52.91 % 663,127 52.90 % Consumer 495 0.04 % 565 0.05 % Total loans 1,262,132 100.00 % 1,253,517 100.00 % Unearned origination fees 592 522 Allowance for credit losses ( 12,246 ) ( 12,461 ) Net Loans $ 1,250,478 $ 1,241,578 12 Embassy Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited )

Notes to Consolidated Financial Statements (Unaudited ) The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weakness), substandard (well defined weakness) and doubtful (full collection unlikely) within the Company's internal risk rating system as of June 30, 2024 by year of origination: 2024 2023 2022 2021 2020 Prior Revolving Total June 30, 2024 (In Thousands) Commercial real estate Pass $ 26,187 $ 61,255 $ 149,545 $ 51,128 $ 61,118 $ 176,099 $ 9,291 $ 534,623 Special Mention - - - - - - - - Substandard - - - - - 1,227 - 1,227 Total 26,187 61,255 149,545 51,128 61,118 177,326 9,291 535,850 Commercial construction Pass 1,934 3,215 8,591 5,167 - 29 - 18,936 Special Mention - - - - - - - - Substandard - - - - - 239 55 294 Total 1,934 3,215 8,591 5,167 - 268 55 19,230 Commercial Pass 4,992 2,073 4,272 1,872 3,006 13,941 8,611 38,767 Special Mention - - - - - 21 - 21 Substandard - - - - - - - - Total 4,992 2,073 4,272 1,872 3,006 13,962 8,611 38,788 Residential real estate Pass 38,140 69,892 91,967 152,093 135,106 156,511 22,553 666,262 Special Mention - - - - - 432 - 432 Substandard - - 44 - - 1,031 - 1,075 Total 38,140 69,892 92,011 152,093 135,106 157,974 22,553 667,769 Consumer Pass 75 81 93 16 - 9 221 495 Special Mention - - - - - - - - Substandard - - - - - - - - Total 75 81 93 16 - 9 221 495 Total Loans Receivable $ 71,328 $ 136,516 $ 254,512 $ 210,276 $ 199,230 $ 349,539 $ 40,731 $ 1,262,132 The Company had gross

Notes to Consolidated Financial Statements (Unaudited )

Notes to Consolidated Financial Statements (Unaudited ) The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weakness), substandard (well defined weakness) and doubtful (full collection unlikely) within the Company's internal risk rating system as of December 31, 2023 by year of origination: 2023 2022 2021 2020 2019 Prior Revolving Total December 31, 2023 (In Thousands) Commercial real estate Pass $ 62,467 $ 160,257 $ 58,094 $ 64,146 $ 26,835 $ 157,888 $ 8,094 $ 537,781 Special Mention - - - - - - - - Substandard - - - - - 1,253 - 1,253 Total 62,467 160,257 58,094 64,146 26,835 159,141 8,094 539,034 Commercial construction Pass 2,071 8,591 5,412 - 440 30 - 16,544 Special Mention - - - - - - - - Substandard - - - - - 241 55 296 Total 2,071 8,591 5,412 - 440 271 55 16,840 Commercial Pass 2,236 4,851 2,260 3,312 5,388 9,311 6,572 33,930 Special Mention - - - - 21 - - 21 Substandard - - - - - - - - Total 2,236 4,851 2,260 3,312 5,409 9,311 6,572 33,951 Residential real estate Pass 75,372 96,032 158,135 142,318 46,035 122,252 21,423 661,567 Special Mention - - - - - 443 - 443 Substandard

View Full Filing

View this 10-Q filing on SEC EDGAR