Company: EMYB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001449794-25-000002
Chunk: 30

Company: Embassy Bancorp, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7A
Chunk 30
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  6,628    8,956               Total$ 180,518  $ 191,632   Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation.  Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. At December 31, 2024 there was an allowance for credit losses of $92 thousand required for off balance sheet arrangements, as compared to no allowance for credit losses required for off-balance sheet arrangements at December 31, 2023. Outstanding letters of credit written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The majority of these standby letters of credit expire within the next twelve months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Company requires collateral supporting these letters of credit as deemed necessary. The maximum undiscounted exposure related to these commitments at December 31, 2024 and 2023 was $6.6 million and $9.0 million, respectively, and the approximate value of underlying collateral upon liquidation that would be expected to cover this maximum potential exposure was $4.9 million and $7.7 million, respectively. The current amount of the liability as of December 31, 2024 and 2023 for guarantees under standby letters of credit issued is not considered material.   ‎ 

79    Embassy Bancorp, Inc.  

 Note 5 - Bank Premises and EquipmentThe components of premises and equipment are as follows:        December 31, 2024 2023       (In Thousands)      Furniture, fixtures and equipment$ 3,968  $ 4,536 Leasehold improvements  4,266    4,329 Buildings  1,169    1,169 Computer equipment and data processing software  1,388    2,157 Automobiles  228