Wed, May 15, 4:19 PM (72 days ago)
Embassy Bancorp, Inc. reported a decrease in net income to $2.5 million for Q1 2024, down from $3.8 million in Q1 2023, primarily due to a significant increase in interest expense driven by a higher rate environment. The net interest margin contracted to 2.25% from 2.80% YoY. Total assets slightly decreased to $1.65 billion, with notable declines in cash equivalents and securities, offset by growth in loans receivable and bank-owned life insurance. Deposits increased by $33.1 million, driven by higher interest-bearing deposits. Non-interest income rose marginally, while non-interest expenses fell, primarily due to reduced salaries and data processing costs. The allowance for credit losses remained stable at $12.5 million, representing 0.99% of total loans. The company's capital ratios stayed robust, with a common equity tier 1 ratio of 13.4%. Management anticipates potential net interest margin compression over the next nine months due to maturing time deposits. The company continues to evaluate strategies to mitigate interest rate risks and operational efficiencies to manage non-interest expenses.