Company: EMYB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001449794-25-000002
Chunk: 28

Company: Embassy Bancorp, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7A
Chunk 28
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   -             Total$ 974 $ - $ 193 $ 1,167 $ 1,252,350 $ 1,253,517 $ - At December 31, 2024, the Company had no foreclosed assets and had two (2) recorded investments in mortgage loans collateralized by residential real estate property in the process of foreclosure in the amount of $216 thousand. At December 31, 2023, the Company had no foreclosed assets and had one (1) recorded investment in a mortgage loan collateralized by residential real estate property in the process of foreclosure in the amount of $121 thousand. Based on the guidance in ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, a loan modification or refinancing results in a new loan if the terms of the new loan are at least as favorable to the lender as the terms with customers with similar collection risks that are not 

77    Embassy Bancorp, Inc.  

refinancing or restricting their loans and the modification to the terms of the loan are more than minor. If a loan modification or refinancing does not result in a new loan, it is classified as a loan modification. There are additional disclosures for modification of loans with borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows. The disclosures are applicable to situations where there is principal forgiveness, interest rate reductions, other than insignificant payment delays, term extensions, or a combination of any of these items. If the Company modifies any loans to borrowers in financial distress that involves principal forgiveness, the amount of principal that is forgiven is charged off against the allowance for credit losses. The following table presents new loan modifications for credit concerns during the years ended December 31, 2024 and December 31, 2023, respectively:                     Number of Loans Pre-Modification Outstanding Balance Post- Modification Outstanding Balance           (Dollars In Thousands)Year Ending December 31, 2024        Residential real estate  1 $ 79 $ 79   1 $ 79 $ 79         Year Ending December 31, 2023  Residential real estate  1 $ 62 $ 62   1 $ 62 $ 62 The loan modification listed above for the year ending December 31, 2024, was to a borrower experiencing financial distress and had no reserve recorded in the allowance for credit losses at December 31, 2024