Company: EMYB
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001449794-25-000035
Chunk: 40

Company: Embassy Bancorp, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 40
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 or FNMA, taxable and non-taxable municipal bonds, government agency bonds, and Treasury bonds. The Company holds no high-risk or direct internationally exposed securities or derivatives as of September 30, 2025. The Company has not made any investments in non-U.S. government agency mortgage backed securities or sub-prime loans. The current liquidity of the portfolio has been impacted by the increase in market interest rates. Selling of securities would not be expected as a primary source of short term liquidity given the unrealized losses currently in the portfolio. Total securities at September 30, 2025 were $334.3 million compared to $280.8 million at December 31, 2024. The increase in the investment portfolio resulted from the purchase of twenty-five (25) Treasury bonds, six (6) government agency bonds, and three (3) mortgage-backed securities totaling $96.5 million and a decrease in unrealized losses of $11.5 million, offset by principal pay downs on mortgage-backed securities, the maturity of two (2) government agency bonds, and the maturity of ten (10) Treasury bonds totaling $55.4 million. The carrying value of the securities portfolio as of September 30, 2025 includes a net unrealized loss of $52.6 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 September 30, 2025. Further, management reviewed the Company's securities as of September 30, 2025 and concluded there were no credit-related declines in fair value. The effective duration of the securities portfolio is approximately 5 to 6 years at September 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 September 30, 2025 and $1.26 billion at December 31, 2024