Company: EMYB
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001449794-25-000009
Chunk: 33

Company: Embassy Bancorp, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 33
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 early time deposit withdrawal penalties.  ‎ 

30  

 Non-interest Expense Non-interest expenses increased $401 thousand from $6.5 million for the three months ended March 31, 2024 to $6.9 million for the three months ended March 31, 2025. The increase in non-interest expenses is, in part, attributable to a $138 thousand increase in salaries and employee benefits due to annual increases in salaries, new hires, an increase in health insurance cost, and an increase in bonuses, offset by a decrease in stock grant expense and an increase in deferred loan costs. The Company had a 4.6% increase in full-time equivalent employees from one hundred nine (109) at March 31, 2024 to one hundred fourteen (114) at March 31, 2025. New hires included various branch and operational personnel. Additional increases in non-interest expenses are attributable to an increase of $76 thousand in occupancy and equipment expense due to an increase in occupancy, repair, maintenance, and rent expenses, as well as an increase of $126 thousand in data processing expenses due, in part, to the implementation of a new content management software, an increase of $37 thousand in advertising and promotions, an increase of $27 thousand in professional fees, and an increase of $26 thousand in loan and real estate expenses. The increases in non-interest expenses were offset, in part, by a decrease of $53 thousand in other expenses primarily due to decreases in debit card production, cash over and short, check fraud losses, and bank shares tax, offset by an increase in operating expenses. The Company’s efficiency ratio, a non-GAAP measure, was 66.0% and 68.8% for the three months ending March 31, 2025 and 2024, respectively. A breakdown of other expenses can be found in the Consolidated Statements of Income. Income Taxes The provision for income taxes for the three months ended March 31, 2025 totaled $621 thousand, or 17.7% of income before taxes, compared to income taxes for the three months ended March 31, 2024 totaling $487 thousand, or 16.1% of income before taxes. The increase in the tax rate is, in part, the result of a decrease in income on bank owned life insurance and the result of the change in the mix of taxable and tax free loans and investments.‎ 

31  

 FINANCIAL CONDITION Securities The Company’s securities portfolio continues to be classified,