Company: EMYB
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001449794-25-000020
Chunk: 41

Company: Embassy Bancorp, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 41
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’s non-performing loans to total loans receivable were 0.04% at June 30, 2025, compared to 0.06% at June 30, 2024, and 0.04% at December 31, 2024. In the three months ended June 30, 2025, there were charge-offs of $152 thousand and no recoveries. In the three months ended June 30, 2024, there were charge-offs of $11 thousand and no recoveries. In the six months ended June 30, 2025, there were charge-offs of $152 thousand and no recoveries. In the six months ended June 30, 2024, there were charge-offs of $11 thousand and recoveries of $240 thousand. The aggregate balances on non-performing loans are included in the following table. At June 30, 2025, approximately 96% of the Company’s loan portfolio is collateralized by real estate. Our loan portfolio includes a large amount of commercial real estate loans. Management believes the commercial real estate loan portfolio is well-diversified. At June 30, 2025 and December 31, 2024, high volatility commercial real estate exposures were $7.1 million and $11.0 million, respectively.  Commercial real estate loans are originated primarily within Lehigh and Northampton counties, are within the Company’s underwriting criteria, and generally include the guarantee of one or more of the borrowers’ affiliates. At June 30, 2025, the Company’s office space portfolio included no exposure to properties in major metropolitan markets. Commercial real estate loans have drawn the attention of the regulators in recent years as a potential source of risk. The Company monitors these types of loans closely, obtaining updated appraisals on loans when required. As detailed in the Allowance for Credit Losses table, the Company had no charge-offs in this category in 2024, and $136 thousand in commercial real estate charge-offs in 2025. The Company believes it has taken the appropriate steps to implement appropriate risk management practices for its commercial real estate loan portfolio, which are subject to regulatory examination.‎ 

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 The details for non-performing loans and assets are included in the following table:            June 30, 2025  December 31, 2024  June 30, 2024          (In Thousands)Non-accrual - commercial$ - $ 151  $ -Non-acc