Embassy Bancorp Files Q3 2024 10-Q

TL;DR

Embassy Bancorp's Q3 2024 10-Q is in, showing stock and capital changes. Check financials.

AI Summary

Embassy Bancorp, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial information for the third quarter and the first nine months of 2024, including changes in common stock and additional paid-in capital. The company's fiscal year ends on December 31st, and its headquarters are located in Bethlehem, PA.

Why It Matters

This filing provides investors with a quarterly update on Embassy Bancorp's financial health and operational performance, crucial for assessing its stability and growth prospects.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative events indicated.

Key Numbers

• Q3 2024 — Reporting Period (The 10-Q covers financial data up to the third quarter of 2024.)
• 1231 — Fiscal Year End (Embassy Bancorp's fiscal year concludes on December 31st.)

Key Players & Entities

• Embassy Bancorp, Inc. (company) — Filer of the 10-Q report.
• 2024-09-30 (date) — End of the reporting period for the 10-Q.
• 2024-11-13 (date) — Date the 10-Q was filed.
• Bethlehem, PA (location) — Location of Embassy Bancorp's business and mailing address.

FAQ

Key Financial Figures

• $1.00 — s outstanding as of November 8, 2024 ($1.00 Par Value) 7,618,715 (Title Class)

Filing Documents

• emyb-20240930x10q.htm (10-Q) — 8201KB
• emyb-20240930xex31_1.htm (EX-31.1) — 18KB
• emyb-20240930xex31_2.htm (EX-31.2) — 18KB
• emyb-20240930xex32.htm (EX-32) — 13KB
• 0001449794-24-000023.txt ( ) — 29979KB
• emyb-20240930.xsd (EX-101.SCH) — 36KB
• emyb-20240930_cal.xml (EX-101.CAL) — 87KB
• emyb-20240930_def.xml (EX-101.DEF) — 213KB
• emyb-20240930_lab.xml (EX-101.LAB) — 393KB
• emyb-20240930_pre.xml (EX-101.PRE) — 403KB
• emyb-20240930x10q_htm.xml (XML) — 9496KB

– 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 Income (Loss) (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) September 30, December 31, ASSETS 2024 2023 (In Thousands, Except Share Data) Cash and due from banks $ 17,202 $ 16,133 Interest bearing demand deposits with banks 73,705 61,790 Federal funds sold 1,000 1,000 Cash and Cash Equivalents 91,907 78,923 Securities available for sale 308,057 276,060 Restricted investment in bank stock 1,913 2,458 Loans receivable, net of allowance for credit losses of $ 12,206 in 2024; $ 12,461 in 2023 1,246,524 1,241,578 Premises and equipment, net of accumulated depreciation 3,411 3,734 Bank owned life insurance 36,226 26,310 Accrued interest receivable 3,457 3,298 Other assets 23,699 24,135 Total Assets $ 1,715,194 $ 1,656,496 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $ 330,590 $ 328,669 Interest bearing 1,204,585 1,147,564 Total Deposits 1,535,175 1,476,233 Securities sold under agreements to repurchase 18,223 15,237 Short-term borrowings 21,875 35,000 Accrued interest payable 8,126 7,844 Other liabilities 17,301 16,527 Total Liabilities 1,600,700 1,550,841 Stockholders' Equity: Common stock, $ 1 par value; authorized 20,000,000 shares; 2024 issued 7,780,727 shares; outstanding 7,618,715 shares; 2023 issued 7,758,247 shares; outstanding 7,596,236 shares; 7,781 7,758 Surplus 28,736 28,246 Retained earnings 120,561 116,018 Accumulated other comprehensive loss ( 39,917 ) ( 43,700 ) Treasury stock, at cost: 162,011 shares at September 30, 2024 and December 31, 2023, respectively ( 2,667 ) ( 2,667 ) Total Stockholders' Equity 114,494 105,655 Total Liabilities and Stockholders' Equity $ 1,715,194 $ 1,656,496 See notes to consolidated financial statements (unaudited). 3 Embassy Bancorp, Inc. Consolidated Sta

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 September 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) September 30, 2024: U.S. Treasury securities $ 39,507 $ 39 $ ( 78 ) $ 39,468 U.S. Government agency obligations 17,429 35 ( 60 ) 17,404 Municipal bonds 72,691 45 ( 11,637 ) 61,099 U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - commercial 508 - ( 53 ) 455 U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential 228,449 2 ( 38,820 ) 189,631 Total $ 358,584 $ 121 $ ( 50,648 ) $ 308,057 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 September 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) September 30, 2024: Due in one year or less $ 51,915 $ 51,833 Due after one year through five years 7,370 7,312 Due after five years through ten years 6,874 6,644 Due after ten years 63,468 52,182 129,627 117,971 U.S. Government Sponsored Enterprise (GS

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 September 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 September 30, 2024: (In Thousands) U.S. Treasury securities $ - $ - $ 9,895 $ ( 78 ) $ 9,895 $ ( 78 ) U.S. Government agency obligations - - 2,420 ( 60 ) 2,420 ( 60 ) Municipal bonds 12,675 ( 664 ) 46,360 ( 10,973 ) 59,035 ( 11,637 ) U.S. Government Sponsored Enterprise (GSE) - Mortgage -backed securities - commercial - - 455 ( 53 ) 455 ( 53 ) U.S. Government Sponsored Enterprise (GSE) - Mortgage -backed securities - residential - - 189,564 ( 38,820 ) 189,564 ( 38,820 ) Total Temporarily Impaired Securities $ 12,675 $ ( 664 ) $ 248,694 $ ( 49,984 ) $ 261,369 $ ( 50,648 ) . 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 eighty-eight ( 188 ) securities in an unrealized loss position at September 30, 2024 and one hundred eighty-

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 September 30, 2024. Note 5 – Loans and Credit Quality The following table presents the composition of loans receivable at September 30, 2024 and December 31, 2023, respectively: September 30, 2024 December 31, 2023 Percentage of Percentage of Balance total Loans Balance total Loans (Dollars in Thousands) Commercial real estate $ 534,004 42.45 % $ 539,034 43.00 % Commercial construction 19,886 1.58 % 16,840 1.34 % Commercial 37,185 2.95 % 33,951 2.71 % Residential real estate 666,491 52.98 % 663,127 52.90 % Consumer 518 0.04 % 565 0.05 % Total loans 1,258,084 100.00 % 1,253,517 100.00 % Unearned origination fees 646 522 Allowance for credit losses ( 12,206 ) ( 12,461 ) Net Loans $ 1,246,524 $ 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 September 30, 2024 by year of origination: 2024 2023 2022 2021 2020 Prior Revolving Total (In Thousands) Commercial real estate Pass $ 39,974 $ 59,399 $ 147,920 $ 49,038 $ 58,286 $ 168,955 $ 9,084 $ 532,656 Special Mention - - - 136 - - - 136 Substandard - - - - - 1,212 - 1,212 Total 39,974 59,399 147,920 49,174 58,286 170,167 9,084 534,004 Commercial construction Pass 2,617 4,264 7,544 5,139 - 29 - 19,593 Special Mention - - - - - - - - Substandard - - - - - 238 55 293 Total 2,617 4,264 7,544 5,139 - 267 55 19,886 Commercial Pass 5,985 1,717 3,534 754 2,668 12,435 6,643 33,736 Special Mention 191 - 409 922 147 20 1,760 3,449 Substandard - - - - - - - - Total 6,176 1,717 3,943 1,676 2,815 12,455 8,403 37,185 Residential real estate Pass 57,133 67,023 89,936 146,767 131,372 151,130 21,879 665,240 Special Mention - - - - - 425 - 425 Substandard - - 43 196 - 587 - 826 Total 57,133 67,023 89,979 146,963 131,372 152,142 21,879 666,491 Consumer Pass 98 73 83 13 - 4 247 518 Special Mention - - - - - - - - Substandard - - - - - - - - Total 98 73 83 13 - 4 247 518 Total Loans Receivable $ 105,998 $ 132,476 $ 249,469 $ 202,965 $ 192,473 $ 335,035 $ 39,668 $ 1,258,084 The Company had

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 ratin

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View this 10-Q filing on SEC EDGAR