Company: EMYB
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001449794-25-000035
Chunk: 45

Company: Embassy Bancorp, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 45
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 unfunded loans and commitments, as well as lines of credit made under the same standards as on-balance sheet instruments. These unused commitments totaled $197.6 million and $180.5 million at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024, there was a $61 thousand and $92 thousand allowance for credit losses required for off-balance sheet arrangements, respectively. At September 30, 2025 and December 31, 2024, the Company had letters of credit outstanding of $4.4 million and $6.6 million, respectively. Because these instruments have fixed maturity dates, and because many of them will expire without being drawn upon, they do not generally present any significant liquidity risk to the Company. Management is of the opinion that the Company’s liquidity is sufficient to meet its anticipated needs.  Capital Resources and Adequacy Total stockholders’ equity was $122.4 million as of September 30, 2025, representing a net increase of $16.0 million from December 31, 2024. The increase in capital was the result of net income of $10.1 million, an increase in common stock of $20 thousand, an increase in surplus of $383 thousand due to employee stock purchases and stock grants with compensation expense, and a decrease of $9.1 million in accumulated other comprehensive loss, offset by dividends paid of $3.7 million. The accumulated other comprehensive losses are excluded from both the Bank’s and the Company’s Tier 1 regulatory capital calculations.  The Company’s tangible book value per share, calculated as total stockholders’ equity divided by outstanding common stock shares, was $16.01 and $13.96 at September 30, 2025 and December 31, 2024, respectively.    The Company and the Bank are subject to various regulatory capital requirements administered by banking regulators. Failure to meet minimum capital requirements can initiate certain actions by regulators that could have a material effect on the consolidated financial statements. The regulations require that banks maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined in the regulations), and Tier 1 capital to average assets (as defined in the regulations). As of September 30, 2025, the Bank met the minimum requirements. In addition, the Bank’s capital ratios exceeded the amounts required to be considered “well capitalized