Company: EMYB
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001449794-25-000035
Chunk: 39

Company: Embassy Bancorp, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 39
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 in other expenses. The Company’s efficiency ratio, a non-GAAP measure, was 63.8% and 69.4% for the nine months ended September 30, 2025 and 2024, respectively. A breakdown of other expenses can be found in the Consolidated Statements of Income. Income Taxes The provision for income taxes for the three months ended September 30, 2025 totaled $811 thousand, or 17.6% of income before taxes, compared to income taxes for the three months ended September 30, 2024 totaling $531 thousand, or 16.4% of income before taxes. The increase in the tax rate is, in part, the result of the change in the mix of taxable and tax free loans and investments, offset by an increase in income on bank owned life insurance. The provision for income taxes for the nine months ended September 30, 2025 totaled $2.1 million, or 17.3% of income before taxes, compared to income taxes for the nine months ended September 30, 2024 totaling $1.5 million, or 16.4% of income before taxes. The increase in the tax rate is, in part, the result of the change in the mix of taxable and tax free loans and investments, offset by an increase in income on bank owned life insurance. On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” into law. The legislation includes several changes to federal tax law that generally allows for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic R&D expenditures, reinstatement of 100 percent bonus depreciation, and more favorable rules for determining the limitation on business interest expense. The Company is currently evaluating the impact on future periods. ‎ 

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 FINANCIAL CONDITION Securities The Company’s securities portfolio continues to be classified, in its entirety, as “available for sale.” Management believes that a portfolio classification of available for sale allows complete flexibility in the investment portfolio. Using this classification, the Company intends to hold these securities for an indefinite amount of time, but not necessarily to maturity. Such securities are carried at fair value with unrealized gains or losses reported as a separate component of stockholders’ equity. The portfolio is structured to provide a return on investments while providing a consistent source of liquidity and meeting strict risk standards. Investment securities consist primarily of mortgage-backed securities issued by FHLMC