EMYB

MKT CAP $157.7MP/E 10.5DIV YIELD —FCF YIELD 9.65%REV TTM —NET INCOME $15.2M +29.8%NET CASH $12.9M52W 17.15 – 22.58SEC XBRL · TTM TO Invalid Date

How EMYB rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

80%

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new sentences

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Length

−82

words, now 6,187

New in FY2025

When interest-earning assets mature or reprice more quickly Embassy Bancorp, Inc. than interest-bearing liabilities, falling interest rates could reduce net interest income.
However, interest rate risk management techniques are not exact and a substantial, unexpected, prolonged, or rapid change in interest rates could adversely affect our financial condition and results of operations.
At December 31, 2025, the Company maintained an available for sale securities portfolio of $341.9 million.
During the year ended December 31, 2025, we gained other comprehensive income of $12.5 million related to net changes in unrealized holding losses in the available for sale investment securities portfolio.
An increase in the estimated fair value of this portfolio would result in an increase in shareholders’ equity and an increase in book value per common share, while a decline in the estimated fair value of this portfolio would result in a decline in shareholders' equity and a decrease in book value per common share.
Inflation may affect the purchasing activity and borrowing needs of consumers and businesses, thereby impacting the growth rate of the Company’s assets, as well as the expense paid on our deposits and borrowings.
At December 31, 2025, 46.7% of our loan portfolio consisted of commercial real estate, commercial construction and commercial loans, which are generally perceived as having more risk of default than residential real estate loans.
Commercial business, commercial real estate and construction loans are more susceptible to a risk of loss during a Embassy Bancorp, Inc. downturn in the business cycle.
These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business itself.
The FASB standard on the allowance for credit losses (“ACL”), referred to as CECL, requires financial institutions to determine periodic estimates of lifetime expected credit losses on loans and recognize the expected credit losses as allowances for credit losses.
Unlike larger or regional financial institutions that are more geographically diversified, our success is dependent to a significant degree on economic conditions in Pennsylvania, especially in Lehigh and Northampton Counties, which are the counties and markets primarily served by us in the years up to and including 2025.
We can give no assurance that adverse changes in the local economy would not have a material adverse effect on our consolidated financial condition, results of operations, and cash flows. ‎ Embassy Bancorp, Inc.
Our profitability depends upon our ability to successfully compete in our market area.
Further, the demand for deposits may be reduced due to a variety of factors such as negative trends in the banking sector, the level of and/or composition of our uninsured deposits, demographic patterns, changes in customer preferences, reductions in consumers' disposable income, the monetary policy of the Federal Reserve Bank (“FRB”) or regulatory actions that decrease customer access to particular products.
Other primary sources of funds consist of cash flows from operations, maturities of investment securities and/or loans and borrowings from the Federal Home Loan Bank (“ FHLB”) and/or FRB discount window.
The policies, procedures, and technical safeguards put in place by us to prevent or limit the effect of any failure, interruption, or security breach of our information systems Embassy Bancorp, Inc. and data may be insufficient to prevent or remedy the effects of any such occurrences.
The occurrence of any failures, interruptions, or security breaches of our information systems, or those of our third party vendors, and data could damage our reputation, cause us to incur additional expenses, result in online services or other businesses becoming inoperable, subject us to regulatory sanctions or additional regulatory scrutiny, or expose us to civil litigation and possible financial liability, any of which could have a material adverse effect on our financial condition and results of operations.
From time to time, the Financial Accounting Standards Board (“FASB”) and the SEC issues changes to or updated interpretations of the financial accounting and reporting guidance that governs the preparation of our financial statements.
The implementation of new or revised guidance could also result in material adverse effects to our reported capital.
As of December 31, 2025, our directors and executive officers beneficially owned in excess of 29% of our issued and outstanding common stock on a fully diluted basis.
As of December 31, 2025, all three capital ratios for us and our banking subsidiary were above “well capitalized” levels under current bank regulatory guidelines.

Gone since FY2024

When interest-earning assets mature or reprice more quickly than interest-bearing liabilities, falling interest rates could reduce net interest income.
However, interest rate risk management techniques are not exact and a substantial, unexpected, prolonged, or rapid change in interest rates could adversely affect our financial condition and results of operations. ‎ Embassy Bancorp, Inc.
At December 31, 2024, the Company maintained an available for sale securities portfolio of $280.8 million.
During the year ended December 31, 2024, we incurred other comprehensive losses of $6.9 million related to net changes in unrealized holding losses in the available for sale investment securities portfolio.
A decline in the estimated fair value of this portfolio would result in a decline in shareholders' equity, as well as book value per common share.
Inflation may affect the borrowing needs of consumers, thereby impacting the growth rate of the Company’s assets, as well as the expense paid on our deposits and borrowings.
At December 31, 2024, 47.2% of our loan portfolio consisted of commercial real estate, commercial construction and commercial loans, which are generally perceived as having more risk of default than residential real estate loans.
Commercial business, commercial real estate and construction loans are more susceptible to a risk of loss during a downturn in the business cycle.
These loans may involve greater risk because the availability of funds to repay each loan depends Embassy Bancorp, Inc. substantially on the success of the business itself.
The FASB issued an accounting standard on allowance for credit losses “ACL”, which became effective for us beginning on January 1, 2023.
This standard, referred to as CECL, requires financial institutions to determine periodic estimates of lifetime expected credit losses on loans and recognize the expected credit losses as allowances for credit losses.
Unlike larger or regional financial institutions that are more geographically diversified, our success is dependent to a significant degree on economic conditions in Pennsylvania, especially in Lehigh and Northampton Counties, which are the counties and markets primarily served by us in the years up to and including 2024.
We can give no assurance that adverse changes in the local economy would not have a material adverse effect on our consolidated financial condition, results of operations, and cash flows.
Our profitability depends upon our ability to successfully compete in our market area. ‎ Embassy Bancorp, Inc.
Further, the demand for deposits may be reduced due to a variety of factors such as negative trends in the banking sector, the level of and/or composition of our uninsured deposits, demographic patterns, changes in customer preferences, reductions in consumers' disposable income, the monetary policy of the FRB or regulatory actions that decrease customer access to particular products.
Other primary sources of funds consist of cash flows from operations, maturities of investment securities and/or loans and borrowings from the FHLB and/or FRB discount window.
The Basel III capital rules require us to maintain higher levels of capital, which could reduce our profitability.
Basel III targets higher levels of base capital, certain capital buffers, and a migration toward common equity as the key source of regulatory capital.
Basel III signals a growing effort by domestic and international bank regulatory agencies to require financial institutions, including depository institutions, to maintain higher levels of capital.
In the future, we may be required to maintain higher levels of capital, thus potentially reducing opportunities to invest capital into interest-earning assets, which could limit the profitable business operations available to us, and adversely impact our financial condition and results of operations.
The policies, procedures, and technical safeguards put in place by us to prevent or limit the effect of any failure, interruption, or security breach of our information systems and data may be insufficient to prevent or remedy the effects of any such occurrences.
The occurrence of any failures, interruptions, or security breaches of our information systems, or those of our third party vendors, and data could damage our reputation, cause us to incur additional expenses, result in online services or other businesses becoming inoperable, subject us to regulatory sanctions or additional regulatory scrutiny, or expose us to civil litigation and Embassy Bancorp, Inc. possible financial liability, any of which could have a material adverse effect on our financial condition and results of operations.
From time to time, the FASB and the SEC issues changes to or updated interpretations of the financial accounting and reporting guidance that governs the preparation of our financial statements.
The implementation of new or revised guidance could also result in material adverse effects to our reported capital. ‎ Embassy Bancorp, Inc.
As of December 31, 2024, our directors and executive officers beneficially owned in excess of 29% of our issued and outstanding common stock on a fully diluted basis.
As of December 31, 2024, all three capital ratios for us and our banking subsidiary were above “well capitalized” levels under current bank regulatory guidelines. ‎ Embassy Bancorp, Inc.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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