Company: EMYB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001449794-25-000002
Chunk: 45

Company: Embassy Bancorp, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7A
Chunk 45
---
 -   -Standby letters of credit  -   -   -   -   -       Note 14 - Transactions with Executive Officers, Directors and Principal StockholdersThe Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal stockholders, their immediate families, and affiliated companies (commonly referred to as related parties). ‎ 

91    Embassy Bancorp, Inc.  

 Related parties were indebted to the Company for loans totaling $14.7 million and $15.1 million at December 31, 2024 and 2023.  During 2024, loans totaling $1.2 million were disbursed and loan repayments totaled $1.5 million.  Deposits with related parties were $14.8 million and $14.3 million at December 31, 2024 and 2023, respectively.  Fees paid to related parties for legal services for the years ended December 31, 2024 and 2023 were approximately $112 thousand and $54 thousand, respectively. The Company leases its main banking office from an investment group comprised of related parties and its West Broad Street office also from a related party, as disclosed in Note 15.  Note 15 - Lease Commitments The Company’s leases are all classified as operating leases. Currently, many of these leases contain renewal options. The Company has reviewed and based the right of use assets and lease liabilities on the present value of unpaid future minimum lease payments. Additionally, the amounts for the branch leases were impacted by assumptions around renewals and/or extensions and the interest rate used to discount those future lease obligations. The Company used the FHLB advance rates to calculate the discount rate in their review because none of the Company’s leases provided an implicit rate. At December 31, 2024 and 2023 the weighted average discount rate for all operating leases was 3.46% and 3.27%, respectively, with branch leases having a weighted average discount rate of 3.47% and 3.30%, respectively, and equipment leases having a weighted average discount rate of 2.24% and 0.83%, respectively. These leases expire at various dates through December 2032. All operating equipment leases do not have renewal language in their contracts and therefore use the current term. As of December 31, 2024 and 2023, the operating leases overall had a weighted average lease term of 4.21