Company: EMYB
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001449794-25-000020
Chunk: 35

Company: Embassy Bancorp, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 35
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 current and forecasted economic conditions and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant change. The allowance consists of a collectively evaluated component and an individually evaluated component. The collectively evaluated component covers non-classified loans and classified loans not considered loans individually evaluated for credit losses, and is based on historical loss experience adjusted for forecasting factors and qualitative factors. The individually evaluated component relates to loans that are classified as loans individually evaluated for credit losses and/or restructured. For loans that are classified as loans individually evaluated for credit losses, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the loans individually evaluated for credit losses is lower than the carrying value of that loan. 

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 For the three months ended June 30, 2025, the credit for credit losses on loans was $165 thousand and the credit for credit losses on unused commitments was $13 thousand, compared to credit for credit losses of $286 thousand and the provision for credit losses on unused commitments of $3 thousand for the three months ended June 30, 2024. In the three months ended June 30, 2025, there were $152 thousand of charge-offs and no recoveries. In the three months ended June 30, 2024, there were $11 thousand of charge-offs and no recoveries. For the six months ended June 30, 2025, the credit for credit losses on loans was $109 thousand and the credit for credit losses on unused commitments was $22 thousand, compared to credit for credit losses on loans of $444 thousand and the provision for credit losses on unused commitments of $89 thousand for the six months ended June 30, 2024. In the six months ended June 30, 2025, there were $152 thousand of charge-offs and no recoveries. In the six months ended June 30, 2024, there were $11 thousand of charge-offs and recoveries of $240 thousand.  The credit for credit losses is a function of the allowance for credit loss methodology that the Company uses to determine the appropriate level of the allowance for inherent credit losses after net charge-offs have been deducted. See the discussion below under “Credit Risk and Loan Quality” regarding the Company’s considerations of its June 30, 2025 allowance for credit loss levels. The allowance for credit losses is $11.9 million as of June 30, 2025, which is 0.93% of