Company: EMYB
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001449794-25-000020
Chunk: 40

Company: Embassy Bancorp, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 40
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8 million. The carrying value of the securities portfolio as of June 30, 2025 includes a net unrealized loss of $58.0 million, which is recorded as accumulated other comprehensive loss in stockholders’ equity net of income tax effect. This compares to a net unrealized loss of $64.1 million at December 31, 2024. The current unrealized loss position of the securities portfolio is due to increasing market interest rates in 2022 through 2023 in response to economic conditions since initial purchase. Management determined the Company does not have the intent to sell, nor is it more likely than not that it will be required to sell, securities in an unrealized loss position at June 30, 2025. Further, management reviewed the Company's securities as of June 30, 2025 and concluded there were no credit-related declines in fair value. The effective duration of the securities portfolio remains approximately 6 years at June 30, 2025. The Company remains focused on strategically assessing and managing the portfolio to address the unrealized losses.  Loans The loan portfolio comprises a major component of the Company’s earning assets. All of the Company’s loans are to domestic borrowers. Net loans receivable were at $1.27 billion at June 30, 2025 and $1.26 billion at December 31, 2024, with an increase of $13.8 million. The gross loan-to-deposit ratio decreased to 80% at June 30, 2025, compared to 82% at December 31, 2024. The Company’s loan portfolio at June 30, 2025 was comprised of residential real estate and consumer loans of $677.9 million, an increase of $8.7 million from December 31, 2024, and commercial loans of $603.2 million, an increase of $4.6 million from December 31, 2024. The Company has not originated, nor does it intend to originate, sub-prime mortgage loans.  Credit Risk and Loan Quality The Company’s allowance for credit losses was $11.9 million and $12.2 million at June 30, 2025 and December 31, 2024, respectively, a decrease of $261 thousand. At June 30, 2025 and December 31, 2024, the allowance for credit losses represented 0.93% and 0.96% of total loans receivable, respectively. The Company