Company: EMYB
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001449794-25-000035
Chunk: 28

Company: Embassy Bancorp, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 28
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 thousand in the credit for credit losses.  RESULTS OF OPERATIONS Net Interest Income The Company determines interest rate spread and margin on both a US GAAP and tax equivalent basis. The use of tax equivalent basis in determining interest rate spread and margin is considered a non-US GAAP measure. The Company believes the use of this measure provides meaningful information to the reader of the consolidated financial statements when comparing taxable and nontaxable assets. However, it is supplemental to US GAAP which is used to prepare the Company’s consolidated financial statements and should not be read in isolation or relied upon as a substitute for US GAAP measures. In addition, the non-US GAAP measure may not be comparable to non-US GAAP measures reported by other companies. The tax rate used to calculate the tax equivalent adjustments was 21% for 2025 and 2024. Total interest income for the three months ended September 30, 2025 increased $1.3 million to $18.3 million, as compared to $16.9 million for the three months ended September 30, 2024. Average earning assets were $1.69 billion for the three months ended September 30, 2025, as compared to $1.63 billion for the three months ended September 30, 2024. The tax equivalent yield on average earning assets was 4.32% for the third quarter of 2025 compared to 4.16% for the third quarter of 2024. Total interest expense for the three months ended September 30, 2025 decreased $348 thousand to $7.4 million, as compared to $7.8 million for the three months ended September 30, 2024. Average interest bearing liabilities were $1.28 billion for the three months 

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ended September 30, 2025 and $1.23 billion for the three months ended September 30, 2024. The yield on average interest bearing liabilities was 2.30% and 2.51% for the third quarter of 2025 and 2024, respectively. Over the past year the Company has experienced a consistent decrease in the cost of funds with reductions observed in each successive quarter. This downward trend reflects more favorable market conditions and strategic financial management.  The Company’s cost of funds was 1.81%, 1.82%, and 1.97% for the three months ended September 30, 2025, June 30, 2025, and September