Company: EMYB
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001449794-25-000035
Chunk: 10

Company: Embassy Bancorp, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 10
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ated Financial Statements (Unaudited) 

 The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the Consolidated Balance Sheets, totaling $2.6 million and $2.5 million at September 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses. Based on the guidance in ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, a loan modification or refinancing results in a new loan if the terms of the new loan are at least as favorable to the lender as the terms with customers with similar collection risks that are not refinancing or restricting their loans and the modification to the terms of the loan are more than minor. If a loan modification or refinancing does not result in a new loan, it is classified as a loan modification. There are additional disclosures for modification of loans with borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows. The disclosures are applicable to situations where there is principal forgiveness, interest rate reductions, other than insignificant payment delays, term extensions, or a combination of any of these items. If the Company modifies any loans to borrowers in financial distress that involves principal forgiveness, the amount of principal that is forgiven is charged off against the allowance for credit losses. The Company had no new loan modifications to borrowers experiencing financial difficulties in the three and nine months ended September 30, 2025.  The Company had no new loan modifications to borrowers experiencing financial difficulties in the three months ending September 30, 2024. The following table presents new loan modifications for credit concerns during the nine months ending September 30, 2024:             Number of Loans Pre-Modification Outstanding Balance Post- Modification Outstanding Balance           (Dollars In Thousands)Nine Months Ending September 30, 2024        Residential real estate  1 $ 79 $ 79   1 $ 79 $ 79 Regarding the loan modification listed above, the borrower was experiencing financial stress. The modified home equity loan had an extended maturity date compared to the original loan. There is no commitment to lend additional amounts on this modified loan, which was paid off in full during the second quarter of 2025.  There were $59 thousand and $136 thousand of modifications to borrowers