Company: EMYB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001449794-25-000002
Chunk: 47

Company: Embassy Bancorp, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7A
Chunk 47
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31, 2024 and 2023, respectively, as described in Note 14.  Note 16 - Federal Income Taxes The components of income tax expense are as follows:                    Year Ended December 31,   2024  2023            (In Thousands)           Current$ 2,115  $ 2,883  Deferred  (46)    (84)  Income Tax Expense$ 2,069  $ 2,799  A reconciliation of the statutory federal income tax at a rate of 21% as of December 31, 2024 and December 31, 2023 to the income tax expense included in the consolidated statements of income is as follows:                             Years Ended December 31,  2024 2023               (In Thousands)                 Dollar %  Dollar % Federal income tax at statutory rate$ 2,627 21.0% $ 3,246 21.0% Tax-exempt interest  (334) (2.7)%   (344)  (2.2)% Bank owned life insurance  (266) (2.1)%   (143)  (0.9)% Other  42 0.3%   40 0.2% Income Tax Expense$ 2,069 16.5% $ 2,799 18.1%  The Company evaluates its tax positions which is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood of being realized on examination of more than 50 percent. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Under the “more likely than not” threshold guidelines, the Company believes no significant uncertain tax positions exist, either 

93    Embassy Bancorp, Inc.  

individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. As of December 31, 2024 and 2023, the Company had no material unrecognized tax benefits or accrued interest and penalties. The Company’s policy is to account for interest as a component of interest expense and penalties as a component of other expense.  The components of the net deferred tax asset (included in other assets) are as follows:              December 31, 2024 2023       (In Thousands