Company Quick10K Filing
Quick10K
Embassy Bancorp
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-06-21 Shareholder Vote
8-K 2019-06-20 Other Events, Exhibits
8-K 2018-12-31 Exhibits
8-K 2018-12-21 Officers, Exhibits
8-K 2018-06-19 Enter Agreement, Exhibits
8-K 2018-06-15 Shareholder Vote
8-K 2018-06-14 Other Events, Exhibits
8-K 2018-05-29 Officers, Exhibits
DTIL Precision BioSciences 419
FVTI Fortune Valley Treasures 308
GRWG Growgeneration 139
EDGW Edgewater Technology 81
BSTG Biostage 15
HH Hooper Holmes 0
CNSX Tower One Wireless 0
TCT Teucrium Commodity Trust 0
QPAG Qpagos 0
NXMD Nexeon Medsystems 0
EMYB 2019-06-30
Part I – Financial Information
Item 1 – Financial Statements
Note 1 – Basis of Presentation
Note 2 - Summary of Significant Accounting Policies
Note 3 – Securities Available for Sale
Note 4 – Restricted Investment in Bank Stock
Note 5 – Loans Receivable and Credit Quality
Note 6 – Guarantees
Note 7 – Right of Use Asset and Lease Liability
Note 8 – Deposits
Note 9 – Offsetting Assets and Liabilities
Note 10 – Short-Term and Long-Term Borrowings
Note 11 – Stock Incentive Plan and Employee Stock Purchase Plan
Note 12 – Other Comprehensive Income (Loss)
Note 13 – Basic and Diluted Earnings per Share
Note 14 – Fair Value Measurements
Note 15 – Future Accounting Standards
Item 2 – Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3 – Quantitative and Qualitative Disclosures About Market Risk
Item 4 – Controls and Procedures
Part II - Other Information
Item 1 - Legal Proceedings
Item 1A - Risk Factors
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds
Item 3 - Defaults Upon Senior Securities
Item 4 – Mine Safety Disclosures
Item 5 - Other Information
Item 6 - Exhibits
EX-31.1 emyb-20190630xex31_1.htm
EX-31.2 emyb-20190630xex31_2.htm
EX-32 emyb-20190630xex32.htm

Embassy Bancorp Earnings 2019-06-30

EMYB 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 emyb-20190630x10q.htm 10-Q EMYB-2019_0630 10Q

t





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019 OR



 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________________ TO __________________



Commission file number 000-53528





 

Embassy Bancorp, Inc.

(Exact name of registrant as specified in its charter)

 

 

Pennsylvania

26-3339011

(State of incorporation)

(I.R.S. Employer Identification No.)

 

 

One Hundred Gateway Drive, Suite 100

Bethlehem, PA

 

18017

(Address of principal executive offices)

(Zip Code)

 

 

(610) 882-8800

(Registrant’s Telephone Number)



Securities registered pursuant to Section 12(b) of the Act: None.



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. Yes   No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer 

Accelerated filer  

Non-accelerated filer  

Smaller reporting company

Emerging growth company    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 or the Exchange Act.)  Yes  No



Indicate the number of shares outstanding of each of the registrant’s classes of common equity, as of the latest practicable date:



 

 

 

COMMON STOCK

 

 

Number of shares outstanding as of August 2, 2019

($1.00 Par Value)

      7,476,925

 

  (Title Class)

(Outstanding Shares)



 

 

 


 

Embassy Bancorp, Inc.                                                                                                                          

 

 

Table of Contents

 



 

Part I – Financial Information

 

 

Item 1 – Financial Statements

 

Consolidated Balance Sheets (Unaudited)

Consolidated Statements of Income (Unaudited)

Consolidated Statements of Comprehensive Income (Unaudited)

Consolidated Statements of Stockholders’ Equity (Unaudited)

Consolidated Statements of Cash Flows (Unaudited)

Notes to Consolidated Financial Statements (Unaudited)

 

 

Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

28 

 

 

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

39 

 

 

Item 4 – Controls and Procedures

39 

 

 

Part II - Other Information

40 

 

 

Item 1 - Legal Proceedings

40 

 

 

Item 1A - Risk Factors

40 

 

 

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

40 

 

 

Item 3 - Defaults Upon Senior Securities

40 

 

 

Item 4 – Mine Safety Disclosures

40 

 

 

Item 5 - Other Information

40 

 

 

Item 6 - Exhibits

41 



   



   



   



2

 


 

Embassy Bancorp, Inc.                                                                                                                          

 

Part I – Financial Information



Item 1 – Financial Statements



Consolidated Balance Sheets (Current Period Unaudited)







 

 

 

 

 



 

 

 

 

 



June 30,

 

December 31,

ASSETS

2019

 

2018



 

 

 

 

 



(In Thousands, Except Share Data)

Cash and due from banks

$

16,150 

 

$

14,103 

Interest bearing demand deposits with banks

 

21,606 

 

 

13,473 

Federal funds sold

 

1,000 

 

 

 -

Cash and Cash Equivalents

 

38,756 

 

 

27,576 

Securities available for sale

 

90,058 

 

 

90,748 

Restricted investment in bank stock

 

698 

 

 

2,794 

Loans receivable, net of allowance for loan losses of $7,641 in 2019; $7,412 in 2018

 

966,634 

 

 

949,944 

Premises and equipment, net of accumulated depreciation

 

2,044 

 

 

2,174 

Right of use asset

 

10,240 

 

 

 -

Bank owned life insurance

 

19,912 

 

 

19,568 

Accrued interest receivable

 

2,209 

 

 

2,178 

Other real estate owned

 

 -

 

 

135 

Other assets

 

3,909 

 

 

4,270 

Total Assets

$

1,134,460 

 

$

1,099,387 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Deposits:

 

 

 

 

 

Non-interest bearing

$

164,312 

 

$

148,609 

Interest bearing

 

847,028 

 

 

782,906 

Total Deposits

 

1,011,340 

 

 

931,515 

Securities sold under agreements to repurchase

 

8,897 

 

 

18,883 

Short-term borrowings

 

 -

 

 

53,995 

Accrued interest payable

 

2,233 

 

 

1,689 

Lease liability

 

10,379 

 

 

 -

Other liabilities

 

8,019 

 

 

6,080 

Total Liabilities

 

1,040,868 

 

 

1,012,162 

Stockholders' Equity:

 

 

 

 

 

Common stock, $1 par value; authorized 20,000,000 shares;

 

 

 

 

 

2019 issued 7,541,972 shares; outstanding 7,476,925 shares;

 

 

 

 

 

2018 issued 7,529,567 shares; outstanding 7,464,520 shares;

 

7,542 

 

 

7,530 

Surplus

 

25,809 

 

 

25,532 

Retained earnings

 

60,081 

 

 

56,410 

Accumulated other comprehensive income (loss)

 

1,160 

 

 

(1,247)

Treasury stock, at cost:  65,047 shares

 

(1,000)

 

 

(1,000)

Total Stockholders' Equity

 

93,592 

 

 

87,225 

Total Liabilities and Stockholders' Equity

$

1,134,460 

 

$

1,099,387 





See notes to consolidated financial statements.

3

 


 

Embassy Bancorp, Inc.                                                                                                                          

 

Consolidated Statements of Income (Unaudited) 







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

2019

 

2018

 

2019

 

 

2018

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands, Except Per Share Data)

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, including fees

 

$

9,884 

 

$

8,792 

 

$

19,468 

 

$

17,053 

 

 

Securities, taxable

 

 

395 

 

 

341 

 

 

761 

 

 

633 

 

 

Securities, non-taxable

 

 

252 

 

 

313 

 

 

542 

 

 

630 

 

 

Short-term investments, including federal funds sold

 

 

170 

 

 

69 

 

 

314 

 

 

133 

 

 

Total Interest Income

 

 

10,701 

 

 

9,515 

 

 

21,085 

 

 

18,449 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,336 

 

 

1,289 

 

 

4,213 

 

 

2,388 

 

 

Securities sold under agreements to repurchase

 

 

20 

 

 

 

 

45 

 

 

12 

 

 

Short-term borrowings

 

 

 

 

118 

 

 

273 

 

 

136 

 

 

Total Interest Expense

 

 

2,361 

 

 

1,415 

 

 

4,531 

 

 

2,536 

 

 

Net Interest Income

 

 

8,340 

 

 

8,100 

 

 

16,554 

 

 

15,913 

 

 

PROVISION FOR LOAN LOSSES

 

 

95 

 

 

265 

 

 

225 

 

 

480 

 

 

Net Interest Income after
   Provision for Loan Losses

 

 

8,245 

 

 

7,835 

 

 

16,329 

 

 

15,433 

 

 

OTHER NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card processing fees

 

 

94 

 

 

86 

 

 

174 

 

 

182 

 

 

Debit card interchange fees

 

 

158 

 

 

132 

 

 

285 

 

 

258 

 

 

Other service fees

 

 

125 

 

 

112 

 

 

241 

 

 

219 

 

 

Bank owned life insurance

 

 

134 

 

 

107 

 

 

344 

 

 

181 

 

 

Gain (loss) on sale of other real estate owned

 

 

 -

 

 

(8)

 

 

45 

 

 

(16)

 

 

Impairment on other real estate owned

 

 

 -

 

 

(27)

 

 

 -

 

 

(27)

 

 

Total Other Non-Interest Income

 

 

511 

 

 

402 

 

 

1,089 

 

 

797 

 

 

OTHER NON-INTEREST EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

2,621 

 

 

2,376 

 

 

5,264 

 

 

4,847 

 

 

Occupancy and equipment

 

 

861 

 

 

732 

 

 

1,681 

 

 

1,422 

 

 

Data processing

 

 

579 

 

 

507 

 

 

1,141 

 

 

1,044 

 

 

Credit card processing

 

 

33 

 

 

22 

 

 

66 

 

 

66 

 

 

Advertising and promotion

 

 

464 

 

 

475 

 

 

875 

 

 

824 

 

 

Professional fees

 

 

193 

 

 

202 

 

 

388 

 

 

397 

 

 

FDIC insurance

 

 

107 

 

 

101 

 

 

202 

 

 

211 

 

 

Loan & real estate

 

 

44 

 

 

103 

 

 

87 

 

 

190 

 

 

Charitable contributions

 

 

206 

 

 

193 

 

 

512 

 

 

466 

 

 

Other

 

 

426 

 

 

447 

 

 

872 

 

 

776 

 

 

Total Other Non-Interest Expenses

 

 

5,534 

 

 

5,158 

 

 

11,088 

 

 

10,243 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before Income Taxes

 

 

3,222 

 

 

3,079 

 

 

6,330 

 

 

5,987 

 

 

INCOME TAX EXPENSE

 

 

608 

 

 

569 

 

 

1,164 

 

 

1,100 

 

 

Net Income

 

$

2,614 

 

$

2,510 

 

$

5,166 

 

$

4,887 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER SHARE

 

$

0.35 

 

$

0.34 

 

$

0.69 

 

$

0.65 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER SHARE

 

$

0.35 

 

$

0.33 

 

$

0.69 

 

$

0.65 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIVIDENDS PER SHARE

 

$

0.20 

 

$

0.17 

 

$

0.20 

 

$

0.17 

 

 



See notes to consolidated financial statements

4

 


 

Embassy Bancorp, Inc.                                                                                                                          

 

Consolidated Statements of Comprehensive Income (Unaudited)



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



Three Months Ended June 30,



2019

 

2018



 

 

 

 

 

 

 

 

 



 

(In Thousands)

Net Income

$

 

 

2,614 

 

$

 

 

2,510 

Change in Accumulated Other Comprehensive Income (Loss):

 

 

 

 

 

 

 

 

 

Unrealized holding gain (loss) on securities available for sale

 

1,023 

 

 

 

 

(367)

 

 

Less: reclassification adjustment for realized gains

 

 -

 

 

 

 

 -

 

 



 

1,023 

 

 

 

 

(367)

 

 

Income tax effect

 

(214)

 

 

 

 

77 

 

 

Net unrealized gain (loss)

 

809 

 

 

 

 

(290)

 

 

Other comprehensive income (loss), net of tax

 

 

 

809 

 

 

 

 

(290)

Comprehensive Income

$

 

 

3,423 

 

$

 

 

2,220 









 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



Six Months Ended June 30,



2019

 

2018



 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

 

 

 

 

 

 

 

 

Net Income

$

 

 

5,166 

 

$

 

 

4,887 

Change in Accumulated Other Comprehensive Income (Loss):

 

 

 

 

 

 

 

 

 

Unrealized holding gain (loss) on securities available for sale

 

3,046 

 

 

 

 

(1,999)

 

 

Less: reclassification adjustment for realized gains

 

 -

 

 

 

 

 -

 

 



 

3,046 

 

 

 

 

(1,999)

 

 

Income tax effect

 

(639)

 

 

 

 

420 

 

 

Net unrealized gain (loss)

 

2,407 

 

 

 

 

(1,579)

 

 

Other comprehensive income (loss), net of tax

 

 

 

2,407 

 

 

 

 

(1,579)

Comprehensive Income

$

 

 

7,573 

 

$

 

 

3,308 



See notes to consolidated financial statements.



 

5

 


 

Embassy Bancorp, Inc.                                                                                                                          

 

Consolidated Statements of Stockholders’ Equity (Unaudited)



Six Months Ended June 30, 2019 and 2018 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Common Stock

 

Surplus

 

Retained Earnings

 

Accumulated Other Comprehensive (Loss) Income

 

Treasury Stock

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(In Thousands, Except Share Data)

BALANCE - DECEMBER 31, 2017

$

7,492 

 

$

24,998 

 

$

47,602 

 

$

19 

 

$

(342)

 

$

79,769 

Net income

 

 -

 

 

 -

 

 

4,887 

 

 

 -

 

 

 -

 

 

4,887 

Other comprehensive loss, net of tax

 

 -

 

 

 -

 

 

 -

 

 

(1,579)

 

 

 -

 

 

(1,579)

Dividend declared, $.17 per share

 

 -

 

 

 -

 

 

(1,267)

 

 

 -

 

 

 -

 

 

(1,267)

Compensation expense recognized on 
   stock options

 

 -

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

Common stock grants to directors,
   6,731 shares

 

 

 

105 

 

 

 -

 

 

 -

 

 

 -

 

 

111 

Compensation expense recognized on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 stock grants, net of unearned compensation   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 expense of $503

 

 -

 

 

107 

 

 

 -

 

 

 -

 

 

 -

 

 

107 

Shares issued under employee stock purchase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  plan, 1,663 shares

 

 

 

26 

 

 

 -

 

 

 -

 

 

 -

 

 

28 

BALANCE - JUNE 30, 2018

$

7,500 

 

$

25,238 

 

$

51,222 

 

$

(1,560)

 

$

(342)

 

$

82,058 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE - DECEMBER 31, 2018

$

7,530 

 

$

25,532 

 

$

56,410 

 

$

(1,247)

 

$

(1,000)

 

$

87,225 

Net income

 

 -

 

 

 -

 

 

5,166 

 

 

 -

 

 

 -

 

 

5,166 

Other comprehensive income, net of tax

 

 -

 

 

 -

 

 

 -

 

 

2,407 

 

 

 -

 

 

2,407 

Dividend declared, $.20 per share

 

 -

 

 

 -

 

 

(1,495)

 

 

 -

 

 

 -

 

 

(1,495)

Compensation expense recognized on 
   stock options

 

 -

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

Common stock grants to directors,
   10,799 shares

 

10 

 

 

151 

 

 

 -

 

 

 -

 

 

 -

 

 

161 

Compensation expense recognized on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 stock grants, net of unearned compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  expense of $558                                                     

 

 -

 

 

101 

 

 

 -

 

 

 -

 

 

 -

 

 

101 

Shares issued under employee stock purchase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  plan, 1,606 shares

 

 

 

23 

 

 

 -

 

 

 -

 

 

 -

 

 

25 

BALANCE - JUNE 30, 2019

$

7,542 

 

$

25,809 

 

$

60,081 

 

$

1,160 

 

$

(1,000)

 

$

93,592 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements.



 

6

 


 

Embassy Bancorp, Inc.                                                                                                                          

 

Consolidated Statements of Cash Flows (Unaudited)





 

 

 

 

 



 

 

 

 

 



Six Months Ended June 30,



2019

 

2018



 

 

 

 

 



(In Thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net income

$

5,166 

 

$

4,887 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Provision for loan losses

 

225 

 

 

480 

Amortization of deferred loan costs

 

123 

 

 

114 

Amortization of right of use asset

 

668 

 

 

 -

Depreciation

 

411 

 

 

359 

Net amortization of investment security premiums and discounts

 

60 

 

 

93 

Stock compensation expense

 

264 

 

 

109 

Net realized (gain) loss on sale of other real estate owned

 

(45)

 

 

18 

Impairment on other real estate owned

 

 -

 

 

27 

Income on bank owned life insurance

 

(344)

 

 

(181)

Increase in accrued interest receivable

 

(31)

 

 

(12)

Increase in other assets

 

(278)

 

 

(738)

Increase in accrued interest payable

 

544 

 

 

32 

Decrease in lease liability

 

(635)

 

 

 -

Increase in other liabilities

 

550 

 

 

671 

Net Cash Provided by Operating Activities

 

6,678 

 

 

5,859 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Purchases of securities available for sale

 

(10,203)

 

 

(9,793)

Maturities, calls and principal repayments of securities available for sale

 

13,879 

 

 

5,961 

Net increase in loans

 

(17,038)

 

 

(66,759)

Net redemption (purchase) of restricted investment in bank stock

 

2,096 

 

 

(1,201)

Proceeds from sale of other real estate owned

 

180 

 

 

216 

Purchases of premises and equipment

 

(281)

 

 

(302)

Net Cash Used in Investing Activities

 

(11,367)

 

 

(71,878)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Net increase in deposits

 

79,825 

 

 

28,734 

Net (decrease) increase in securities sold under agreements to repurchase

 

(9,986)

 

 

7,130 

Proceeds from Employee Stock Purchase Plan

 

25 

 

 

28 

(Decrease) increase in short-term borrowed funds

 

(53,995)

 

 

28,740 

Net Cash Provided by Financing Activities

 

15,869 

 

 

64,632 

Net Increase (Decrease) in Cash and Cash Equivalents

 

11,180 

 

 

(1,387)

CASH AND CASH EQUIVALENTS - BEGINNING

 

27,576 

 

 

33,534 

CASH AND CASH EQUIVALENTS - ENDING

$

38,756 

 

$

32,147 



 

 

 

 

 

SUPPLEMENTARY CASH FLOWS INFORMATION

 

 

 

 

 

Interest paid

$

3,987 

 

$

2,504 

Income taxes paid

$

1,106 

 

$

1,221 

Deferral of gain from sale of other real estate sold through bank financing

$

 -

 

$

Other real estate acquired in settlement of loans

$

 -

 

$

100 

     Non-cash Investing and Financing Activities:

 

 

 

 

 

             Recognition of operating lease right of use assets

$

10,908 

 

$

 -

             Recognition of operating lease liabilities

$

11,014 

 

$

 -



See notes to consolidated financial statements.

 

7

 


 

 

Embassy Bancorp, Inc.                                                                                                                          

 

Notes to Consolidated Financial Statements (Unaudited)

 

Note 1 – Basis of Presentation

 

Embassy Bancorp, Inc. (the “Company”) is a Pennsylvania corporation organized in 2008 and registered as a bank holding company pursuant to the Bank Holding Company Act of 1956, as amended (the “BHC Act”). The Company was formed for purposes of acquiring Embassy Bank For The Lehigh Valley (the “Bank”) in connection with the reorganization of the Bank into a bank holding company structure, which was consummated on November 11, 2008. Accordingly, the Company owns all of the capital stock of the Bank, giving the organization more flexibility in meeting its capital needs as the Company continues to grow. Embassy Holdings, LLC (the “LLC”) is a wholly-owned subsidiary of the Bank organized to engage in the holding of property acquired by the Bank in satisfaction of debts previously contracted.  As such, the consolidated financial statements contained herein include the accounts of the Company, the Bank and the LLC. All significant intercompany transactions and balances have been eliminated.



The Bank, which is the Company’s principal operating subsidiary, was originally incorporated as a Pennsylvania bank on May 11, 2001 and opened its doors on November 6, 2001. It was formed by a group of local business persons and professionals with significant prior experience in community banking in the Lehigh Valley area of Pennsylvania, the Bank’s primary market area.



The accompanying unaudited financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“US GAAP”) for interim financial information and in accordance with instructions for Form 10-Q and Rule 10-01 of the Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.



The consolidated financial statements presented in this report should be read in conjunction with the audited consolidated financial statements and the accompanying notes for the year ended December 31, 2018, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 13, 2019.



In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after June 30, 2019 through the date these consolidated financial statements were issued.



Certain amounts in the 2018 consolidated financial statements may have been reclassified to conform to 2019 presentation. These reclassifications had no effect on 2018 net income.





Note 2 - Summary of Significant Accounting Policies



The Company adopted ASU No. 2016-02, “Leases (Topic 842)” on January 1, 2019, as described in Note 7 – Right of Use Asset and Lease Liabilities. Other than the adoption of Topic 842 the significant accounting policies of the Company as applied in the interim financial statements presented herein are substantially the same as those followed on an annual basis as presented in the Company’s Form 10-K for the year ended December 31, 2018.

8

 


 

 

Embassy Bancorp, Inc.                                                                                                                          

 

Notes to Consolidated Financial Statements (Unaudited)

 

Note 3 – Securities Available For Sale



At June 30, 2019 and December 31, 2018, respectively, the amortized cost and approximate fair values of securities available-for-sale were as follows:



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

Gross

 

Gross

 

 

 



Amortized

 

Unrealized

 

Unrealized

 

Fair



Cost

 

Gains

 

Losses

 

Value



 

 

 

 

 

 

 

 

 

 

 



(In Thousands)

June 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

Municipal bonds

$

27,864 

 

$

876 

 

$

(47)

 

$

28,693 

U.S. Government Sponsored Enterprise (GSE) -
   Mortgage-backed securities - residential

 

60,726 

 

 

721 

 

 

(82)

 

 

61,365 

Total

$

88,590 

 

$

1,597 

 

$

(129)

 

$

90,058 



 

 

 

 

 

 

 

 

 

 

 

December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

3,001 

 

$

 -

 

$

(4)

 

$

2,997 

Municipal bonds

 

35,171 

 

 

515 

 

 

(808)

 

 

34,878 

U.S. Government Sponsored Enterprise (GSE) -
   Mortgage-backed securities - residential

 

54,154 

 

 

127 

 

 

(1,408)

 

 

52,873 

Total

$

92,326 

 

$

642 

 

$

(2,220)

 

$

90,748 



The amortized cost and fair value of securities as of June 30, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without any penalties.





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Amortized

 

 

Fair

 



 

 

Cost

 

 

Value

 



 

 

 

 

 

 

 



 

(In Thousands)

 

Due in one year or less

 

$

1,999 

 

$

2,007 

 

Due after one year through five years

 

 

3,023 

 

 

3,057 

 

Due after five years through ten years

 

 

6,029 

 

 

6,091 

 

Due after ten years

 

 

16,813 

 

 

17,538 

 



 

 

27,864 

 

 

28,693 

 

U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential

 

 

60,726 

 

 

61,365 

 

Total

 

$

88,590 

 

$

90,058 

 



 

 

 

 

 

 

 

There were no sales of securities for the three and six months ended June 30, 2019 and 2018.



Securities with a carrying value of $87.5 million and $85.8 million at June 30, 2019 and December 31, 2018, respectively, were subject to agreements to repurchase, pledged to secure public deposits, or pledged for other purposes required or permitted by law.



9

 


 

 

Embassy Bancorp, Inc.                                                                                                                          

 

Notes to Consolidated Financial Statements (Unaudited)

 

The following table shows the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018, respectively:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Less Than 12 Months

 

 

12 Months or More

 

 

Total



Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019:

(In Thousands)

Municipal bonds

$

 -

 

$

 -

 

$

4,275 

 

$

(47)

 

$

4,275 

 

$

(47)

U.S. Government Sponsored Enterprise

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  (GSE) - Mortgage -backed securities -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  residential 

 

 -

 

 

 -

 

 

9,218 

 

 

(82)

 

 

9,218 

 

 

(82)

Total Temporarily Impaired Securities

$

 -

 

$

 -

 

$

13,493 

 

$

(129)

 

$

13,493 

 

$

(129)



 

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

 -

 

$

 -

 

$

2,997 

 

$

(4)

 

$

2,997 

 

$

(4)

Municipal bonds

 

3,231 

 

 

(101)

 

 

7,711 

 

 

(707)

 

 

10,942 

 

 

(808)

U.S. Government Sponsored Enterprise