Company: EMYB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001449794-25-000002
Chunk: 32

Company: Embassy Bancorp, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7A
Chunk 32
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 arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets.  As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities.  The obligation to repurchase the securities is reflected as a liability in the Company's consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of offset for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third-party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. ‎ 

81    Embassy Bancorp, Inc.  

 The following table presents the liabilities subject to an enforceable master netting arrangement or repurchase agreements as of December 31, 2024 and December 31, 2023:                                                Net Amounts            Gross   Gross Amounts  of Liabilities            Amounts of  Offset in the   Presented in the             Recognized  Consolidated  Consolidated  Financial   Cash Collateral      Liabilities  Balance Sheet  Balance Sheet  Instruments  Pledged  Net Amount                      (In Thousands)December 31, 2024                  Repurchase Agreements:                  Corporate Institutions $ 4,895 $ - $ 4,895 $ (4,895) $ - $ -                   December 31, 2023                  Repurchase Agreements:                  Corporate Institutions $ 15,237 $ - $ 15