10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2013 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 000-1449794

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
(Issuer’s Telephone Number)

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  x No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).  Yes x  No 

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

Large accelerated filer 	Accelerated filer 
Non-accelerated filer  (Do not check if a smaller reporting company)	Smaller reporting company x

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

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 May 10, 2013	($1.00 Par Value)	7,247,587
	(Title Class)	(Outstanding Shares)

Embassy Bancorp, Inc.                                                                                                                          

Table of Contents

Part I – Financial Information	3
Item 1 – Financial Statements
Consolidated Balance Sheets (Unaudited)	3
Consolidated Statements of Income (Unaudited)	4
Consolidated Statements of Comprehensive Income (Unaudited)	5
Consolidated Statements of Stockholders’ Equity (Unaudited)	6
Consolidated Statements of Cash Flows (Unaudited)	7
Notes to Consolidated Financial Statements (Unaudited)	8
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3 – Quantitative and Qualitative Disclosures About Market Risk	35
Item 4 – Controls and Procedures	35
Part II - Other Information	36
Item 1 - Legal Proceedings	36
Item 1A - Risk Factors	36
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3 - Defaults Upon Senior Securities	36
Item 4 – Mine Safety Disclosures	36
Item 5 - Other Information	36
Item 6 - Exhibits	36
EXHIBIT 31.1
EXHIBIT 31.2
EXHIBIT 32

2

Embassy Bancorp, Inc.                                                                                                                          

Part I – Financial Information

Item 1 – Financial Statements

Consolidated Balance Sheets (Unaudited)

	March 31,		December 31,
ASSETS	2013		2012
	(In Thousands, Except Share and Per Share Data)
Cash and due from banks	$	11,477	$	16,116
Interest bearing demand deposits with banks		1,728		12,824
Federal funds sold		1,000		1,000
Cash and Cash Equivalents		14,205		29,940
Interest bearing time deposits		4,134		5,945
Securities available for sale		86,687		91,857
Restricted investment in bank stock		1,454		1,454
Loans receivable, net of allowance for loan losses of $5,011 in 2013; $5,147 in 2012		515,620		500,072
Premises and equipment, net of accumulated depreciation		1,975		2,095
Bank owned life insurance		5,025		4,976
Accrued interest receivable		1,637		1,578
Other real estate owned		2,713		3,038
Other assets		2,581		2,054
Total Assets	$	636,031	$	643,009
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	48,019	$	51,741
Interest bearing		494,020		501,279
Total Deposits		542,039		553,020
Securities sold under agreements to repurchase		27,515		24,452
Long-term borrowings		12,386		12,586
Accrued interest payable		306		327
Other liabilities		2,550		2,597
Total Liabilities		584,796		592,982
Stockholders' Equity:
Common stock, $1 par value; authorized 20,000,000 shares;
2013 issued 7,247,587 shares; outstanding 7,247,587 shares;
2012 issued 7,238,823 shares; outstanding 7,238,823 shares		7,248		7,239
Surplus		23,212		23,146
Retained earnings		18,538		17,360
Accumulated other comprehensive income		2,237		2,282
Total Stockholders' Equity		51,235		50,027
Total Liabilities and Stockholders' Equity	$	636,031	$	643,009

See notes to consolidated financial statements.

3

Embassy Bancorp, Inc.                                                                                                                          

Consolidated Statements of Income (Unaudited)

	Three Months Ended March 31,
	2013		2012
INTEREST INCOME	(In Thousands, Except Per Share Data)
Loans receivable, including fees	$	5,486	$	5,307
Securities, taxable		222		328
Securities, non-taxable		289		313
Federal funds sold, and other		5		28
Interest on time deposits		14		27
Total Interest Income		6,016		6,003
INTEREST EXPENSE
Deposits		624		1,003
Securities sold under agreements to repurchase and federal funds purchased		5		26
Long-term borrowings		164		178
Total Interest Expense		793		1,207
Net Interest Income		5,223		4,796
PROVISION FOR LOAN LOSSES		280		130
Net Interest Income after
Provision for Loan Losses		4,943		4,666
OTHER INCOME
Credit card processing fees		322		286
Other service fees		128		105
Bank owned life insurance		49		23
Profit (loss) on sale of other real estate owned		4		(8)
Impairment on other real estate owned		(6)		(100)
Total Other Income		497		306
OTHER EXPENSES
Salaries and employee benefits		1,732		1,488
Occupancy and equipment		591		602
Data processing		305		267
Credit card processing		285		249
Advertising and promotion		221		188
Professional fees		126		107
FDIC insurance		104		87
Insurance		14		12
Loan & Real Estate		50		49
Charitable contributions		160		142
Other real estate owned expenses		23		26
Other		214		158
Total Other Expenses		3,825		3,375
Income before Income Taxes		1,615		1,597
INCOME TAX EXPENSE		437		427
Net Income	$	1,178	$	1,170
BASIC EARNINGS PER SHARE	$	0.16	$	0.16
DILUTED EARNINGS PER SHARE	$	0.16	$	0.16

See notes to consolidated financial statements.

4

Embassy Bancorp, Inc.                                                                                                                          

Consolidated Statements of Comprehensive Income (Unaudited)

		Three Months Ended March 31,
		2013				2012
		(In Thousands)
Net Income	$			1,178	$			1,170
Other Comprehensive Income:
Unrealized holding (losses) gains on securities available for sale		(68)				94
Less: reclassification adjustment for realized gains (losses)		-				-
		(68)				94
Income tax effect		23				(32)
Net unrealized (losses) gains		(45)				62
Other comprehensive (losses) income, net of tax				(45)				62
Comprehensive Income			$	1,133			$	1,232

See notes to consolidated financial statements.

5

Embassy Bancorp, Inc.                                                                                                                          

Consolidated Statements of Stockholders’ Equity (Unaudited)

Three Months Ended March 31, 2013 and 2012

							Accumulated
							Other
	Common				Retained		Comprehensive		Treasury
	Stock		Surplus		Earnings		Income		Stock		Total
	(In Thousands, Except Share Data)
BALANCE - DECEMBER 31, 2011	$	7,171	$	22,872	$	11,905	$	2,388	$	(3)	$	44,333
Net income		-		-		1,170		-		-		1,170
Other comprehensive income		-		-		-		62		-		62
Exercise of stock options, 702 shares		1		2		-		-		-		3
Compensation expense recognized on stock
options		-		5		-		-		-		5
Common stock grants to directors,
7,992 shares		8		48		-		-		-		56
BALANCE - MARCH 31, 2012	$	7,180	$	22,927	$	13,075	$	2,450	$	(3)	$	45,629
BALANCE - DECEMBER 31, 2012	$	7,239	$	23,146	$	17,360	$	2,282	$	-	$	50,027
Net income		-		-		1,178		-		-		1,178
Other comprehensive loss		-		-		-		(45)		-		(45)
Compensation expense recognized on stock
options		-		13		-		-		-		13
Common stock grants to directors,
8,764 shares		9		53		-		-		-		62
BALANCE - MARCH 31, 2013	$	7,248	$	23,212	$	18,538	$	2,237	$	-	$	51,235

See notes to consolidated financial statements.

6

Embassy Bancorp, Inc.                                                                                                                          

Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
	2013		2012
	(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,178	$	1,170
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		280		130
Accretion of deferred loan costs		(15)		(7)
Depreciation and amortization		156		164
Net amortization of investment security premiums and discounts		95		95
Stock compensation cxpense		13		5
(Gain) loss on sale of other real estate owned		(4)		8
Impairment on other real estate owned		6		100
Income on bank owned life insurance		(49)		(23)
Increase in accrued interest receivable		(59)		(187)
Increase in other assets		(527)		(562)
Decrease in accrued interest payable		(21)		(134)
(Decrease) increase in other liabilities		(397)		1,173
Net Cash Provided by Operating Activities		656		1,932
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities available for sale		-		(8,570)
Maturities, calls and principal repayments of securities available for sale		5,007		1,198
Net increase in loans		(15,374)		(12,898)
Redemption of restricted investment in bank stock		-		80
Net maturities (purchases) of interest bearing time deposits		1,811		(9)
Proceeds from sale of other real estate owned		319		311
Purchases of premises and equipment		(36)		(321)
Net Cash Used in Investing Activities		(8,273)		(20,209)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in deposits		(10,981)		44,119
Net increase (decrease) in securities sold under agreements to repurchase and federal funds purchased		3,063		(4,967)
Payment of long-term borrowed funds		(200)		(100)
Exercise of stock options, net payment for stock tendered		-		3
Net Cash Provided by Financing Activities		(8,118)		39,055
Net (Decrease) Increase in Cash and Cash Equivalents		(15,735)		20,778
CASH AND CASH EQUIVALENTS - BEGINNING		29,940		46,135
CASH AND CASH EQUIVALENTS - ENDING	$	14,205	$	66,913
SUPPLEMENTARY CASH FLOWS INFORMATION
Interest paid	$	814	$	1,341
Income taxes paid	$	950	$	750
Other real estate sold through bank financing	$	439	$	-
Deferral of gain from sale of other real estate sold through bank financing	$	116	$	-

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 months endedMarch 31, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.

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, 2012, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 28, 2013.  

In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after March 31, 2013 through the date these consolidated financial statements were issued.

Certain amounts in the 2012 financial statements may have been reclassified to conform to 2013 presentation. These reclassifications had no effect on 2012 net income.

Note 2 - Summary of Significant Accounting Policies

The significant accounting policies of the Company as applied in the interim financial statements presented 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, 2012.

Note 3 – Stockholders’ Equity

On November 11, 2008, the Company consummated its acquisition of Embassy Bank For The Lehigh Valley pursuant to a Plan of Merger and Reorganization dated April 18, 2008, pursuant to which the Bank was reorganized into a bank holding company structure. At the effective time of the reorganization, each share of common stock of Embassy Bank For The Lehigh Valley issued and outstanding was automatically converted into one share of Company common stock. The issuance of Company common stock in connection with the reorganization was exempt from registration pursuant to Section 3(a)(12) of the Securities Act of 1933, as amended.

Note 4 – Stock Incentive Plan

At the Company’s annual meeting on June 16, 2010, the shareholders approved the Embassy Bancorp, Inc. 2010 Stock Incentive Plan (the “SIP”).  The SIP authorizes the Board of Directors, or a committee authorized by the Board of Directors, to award a stock based incentive to (i) designated officers (including officers who are directors) and other designated employees at the Company and its subsidiaries, and (ii) non-employee members of the Board of Directors and advisors and consultants to the Company and its subsidiaries.  The Board of Directors believes that the SIP will encourage the designated participants to contribute materially to the growth of the Company. The SIP provides for stock based incentives in the form of incentive stock options as provided in Section 422 of the Internal Revenue Code of 1986, non-qualified stock options, stock appreciation rights, restricted stock and deferred stock awards.  The term of the option, the amount of time for the option to vest after grant, if any, and other terms and limitations will be

8

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 4 – Stock Incentive Plan (Continued)

determined at the time of grant. Options granted under the SIP may not have an exercise period that is more than ten years from the time the option is granted. 

At inception, the aggregate number of shares available for issuance under the SIP was 500,000.  The SIP provides for appropriate adjustments in the number and kind of shares available for grant or subject to outstanding awards under the SIP to avoid dilution in the event of merger, stock splits, stock dividends or other changes in the capitalization of the Company.  The SIP expires on June 15, 2020.  There were no awards granted under the SIP for the years ended December 31, 2011 and 2010.In February 2013 and 2012, the Company granted 8,764 and 7,992 shares of restricted stock, respectively, to certain members of its Board of Directors as compensation for their service in 2012 and 2011, respectively, in accordance with the Company’s Non-employee Directors Compensation program adopted in October of 2010.  Such compensation was accrued for as of December 31, 2012 and 2011.  In February 2013 and 2012,the Company also granted stock options to purchase 29,742 and 52,611 shares of stock, respectively to certain executive officers in accordance with their respective employment agreements.  Stock compensation expense related to these options was $13 thousand and $5 thousand for thethree months endedMarch 31, 2013 and 2012, respectively.  At March 31, 2013, approximately $140 thousand unrecognized cost related to stock options granted in 2013 and 2012will be recognized over the next 2.8 and1.9 years, respectively.  The fair value of the options granted in 2013 and 2012 was determined with the following weighted average assumptions: dividend yield of 0%,  risk free interest rate of 1.34% and 1.43%, respectively, expected life of 6.0 years and 7.5 years, respectively, and expected volatility of 28.79% and 31.10%, respectively.  The weighted average fair value of options granted in 2013 and 2012 was $2.14 per share and $2.56 per share, respectively.  At March 31, 2013, there were 400,891 shares available for issuance under the SIP.

Note 5 – Other Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.

The components of other comprehensive income (loss), both before tax and net of tax, are as follows:

	Three Months Ended March 31,
	2013						2012
	(In Thousands)
	Before		Tax		Net of		Before		Tax		Net of
	Tax		Effect		Tax		Tax		Effect		Tax
Other comprehensive income (loss):
Unrealized holding (losses) gains on securities
available for sale	$	(68)	$	(23)	$	(45)	$	94	$	32	$	62
Reclassification adjustments for (losses)
gains on securities transactions included
in net income		-		-		-		-		-		-
Total other comprehensive income (loss)	$	(68)	$	(23)	$	(45)	$	94	$	32	$	62

9

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 5 – Other Comprehensive Income (Continued)

The statement of income line items impacted by components of other comprehensive income are presented in the table below:

		Three Months Ended
		March 31,
			2013		2012	Affected line item in Statements of Income
			(In Thousands)
Securities available for sale:
	Realized gains (losses)
	on securities transactions	$	-	$	-	Gain (loss) on sales of securities, net
	Income taxes		-		-	Income tax expense
	Net of tax	$	-	$	-

A summary of the accumulated other comprehensive income, net of tax, is as follows:

		Securities
		Available
		for Sale
		(In Thousands)
Balance January 1, 2013		$	2,282
	Other comprehensive loss before reclassifications		(45)
	Amounts reclassified from accumulated other
	comprehensive income		-
	Net other comprehensive loss during the period		(45)
Balance March 31, 2013		$	2,237
Balance January 1, 2012		$	2,388
	Other comprehensive income before reclassifications		62
	Amounts reclassified from accumulated other
	comprehensive income		-
	Net other comprehensive income during the period		62
Balance March 31, 2012		$	2,450

10

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 6 – Basic and Diluted Earnings per Share

Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period, as adjusted for stock dividends and splits. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

	Three Months Ended March 31,
	2013		2012
	(Dollars In Thousands, except per share data)
Net income	$	1,178	$	1,170
Weighted average shares outstanding		7,242		7,176
Dilutive effect of potential common shares, stock options		5		28
Diluted weighted average common shares outstanding		7,247		7,204
Basic earnings per share	$	0.16	$	0.16
Diluted earnings per share	$	0.16	$	0.16

Stock options of 149,692and 122,200 for the three months endedMarch 31, 2013 and 2012, respectively, were not considered in computing diluted earnings per common share because they are not dilutive to earnings.

Note 7 – Guarantees

The Company, through the Bank, does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Bank generally holds collateral and/or personal guarantees supporting these commitments. The Company had $5.3 million of standby letters of credit outstanding as of March 31, 2013. The approximate value of underlying collateral upon liquidation that would be expected to cover this maximum potential exposure was $4.7 million. Management does not consider the current amount of the liability as of March 31, 2013 for guarantees under standby letters of credit issued to be material.

Note 8 – Short-term and Long-term Borrowings

Securities sold under agreements to repurchase, federal funds purchased and Federal Home Loan Bank of Pittsburgh (“FHLB”) short term advances generally represent overnight or less than twelve month borrowings. Long term advances from the FHLB are for periods of twelve months or more and are generally less than sixty months. The Bank has an agreement with the FHLB which allows for borrowings up to a percentage of qualifying assets. At March 31, 2013, the Bank had a maximum borrowing capacity for short-term and long-term advances of approximately $248.9 million, of which $7.9 million were outstanding in long-term loans.  This borrowing capacity with the FHLB includes a line of credit of $25.0 million. Long-term loans with FHLB of $7.9 million were outstanding at December 31, 2012. There were no short-term advances outstanding from the FHLB at March 31, 2013 and December 31, 2012. All FHLB borrowings are secured by qualifying assets of the Bank.

The Bank has a federal funds line of credit with the Atlantic Central Bankers Bank (“ACBB”) of approximately $6.0 million, of which none was outstanding at March 31, 2013 and December 31, 2012. Advances from this line are unsecured.

The Company has two lines of credit with Univest Bank and Trust Co. (“Univest”) totaling $10 million. As of March 31, 2013 and December 31, 2012, the outstanding balance was $4.5 million and $4.7 million, respectively. Advances from these lines of credit are secured by 833,333 shares of Bank common stock. Under the terms of the loan agreement, the Bank is required to remain well capitalized. The proceeds of the loan were primarily used for the holding company’s investment in the Bank, thus providing additional capital to support the Bank’s growth.

11

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 9 – Securities Available For Sale

At March 31, 2013 and December 31, 2012, 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)
March 31, 2013 :
U.S. Government agency obligations	$	36,323	$	201	$	(17)	$	36,507
Municipal bonds		36,254		2,708		(11)		38,951
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		7,470		475		-		7,945
Corporate Bonds		3,251		33		-		3,284
Total	$	83,298	$	3,417	$	(28)	$	86,687
December 31, 2012 :
U.S. Government agency obligations	$	40,386	$	237	$	(18)	$	40,605
Municipal bonds		36,273		2,696		(17)		38,952
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		8,487		530		-		9,017
Corporate Bonds		3,254		29		-		3,283
Total	$	88,400	$	3,492	$	(35)	$	91,857

The amortized cost and fair value of securities as of March 31, 2013, 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	$	16,315	$	16,377
Due after one year through five years		23,368		23,654
Due after five years through ten years		21,318		22,521
Due after ten years		14,827		16,190
		75,828		78,742
U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential		7,470		7,945
	$	83,298	$	86,687

There were no sales of securities for the three months endedMarch 31, 2013 and 2012.

Securities with a carrying value of $39.4 million and $45.8 million at March 31, 2013 and December 31, 2012, respectively, were subject to agreements to repurchase, pledged to secure public deposits, or pledged for other purposes required or permitted by law.

12

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 9 – Securities Available For Sale (Continued)

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 March 31, 2013 and December 31, 2012, respectively:

		Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2013 :	(In Thousands)
U.S. Government agency obligations	$	8,137	$	(17)	$	-	$	-	$	8,137	$	(17)
Municipal bonds		594		(9)		463		(2)		1,057		(11)
Total Temporarily Impaired Securities	$	8,731	$	(26)	$	463	$	(2)	$	9,194	$	(28)
December 31, 2012 :
U.S. Government agency obligations	$	9,163	$	(18)	$	-	$	-	$	9,163	$	(18)
Municipal bonds		1,057		(17)		-		-		1,057		(17)
Total Temporarily Impaired Securities	$	10,220	$	(35)	$	-	$	-	$	10,220	$	(35)

The Company had nine (9) securities in an unrealized loss position at March 31, 2013. The unrealized lossesare due only to market rate fluctuations. As of March 31, 2013, the Company either has the intent and ability to hold the securities until maturity or market price recovery, or believes that it is more likely than not that it will not be required to sell such securities. Management believes that the unrealized loss only represents temporary impairment of the securities.  None of the individual losses are significant.

Note 10 – Restricted Investment in Bank Stock

Restricted investments in bank stock consist of Federal Home Loan Bank of Pittsburgh (“FHLB”) stock and Atlantic Central Bankers Bank (“ACBB”) stock.  The restricted stocks are carried at cost.  Federal law requires a member institution of the FHLB to hold stock of its district FHLB according to a predetermined formula.

In December 2008, the FHLB of Pittsburgh notified member banks that it was suspending dividend payments and the repurchase of capital stock, and any future capital stock repurchases would be made on a quarterly basis if conditions warrant such repurchases.  During 2012, 2011 and 2010, the FHLB conducted limited excess capital stock repurchases based upon positive quarterly net income.  Any future capital stock repurchases will be made on a quarterly basis if conditions warrant such repurchases.  In connection with this program, the Bank had no stock repurchased during the three months endedMarch 31, 2013and stock repurchased at a carrying value of $80 thousand during the three months endedMarch 31, 2012.  In February 2012, the FHLB announced that dividend payments would resume in 2012 and during the three months endedMarch 31, 2013, $1 thousand of dividend payments were received.  There were no dividends in the three months endedMarch 31, 2012.

Management evaluates the FHLB and ACBB restricted stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the issuer as compared to the capital stock amount for the issuer and the length of time this situation has persisted, (2) commitments by the issuer to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuer, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuer.

Based upon its evaluation of the foregoing criteria, management believes no impairment charge is necessary related to the FHLB or ACBB stock as of March 31, 2013.

13

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 11 – Loans Receivable and Credit Quality

The following table presents the composition of loans receivable at March 31, 2013 and December 31, 2012, respectively:

	March 31, 2013			December 31, 2012
			Percentage of			Percentage of
	Balance		total Loans	Balance		total Loans
		(Dollars in Thousands)
Commercial real estate	$	209,094	40.14%	$	204,904	40.53%
Commercial construction		20,890	4.01%		19,717	3.90%
Commercial		29,993	5.76%		28,696	5.68%
Residential real estate		259,523	49.81%		250,854	49.62%
Consumer		1,490	0.28%		1,382	0.27%
Total loans		520,990	100.00%		505,553	100.00%
Unearned origination fees		(359)			(334)
Allowance for loan losses		(5,011)			(5,147)
	$	515,620		$	500,072

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weaknesses), substandard (well defined weaknesses) and doubtful (full collection unlikely) within the Company's internal risk rating system as of March 31, 2013 and December 31, 2012, respectively:

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2013		(In Thousands)
Commercial real estate	$	202,371	$	652	$	5,997	$	74	$	209,094
Commercial construction		17,473		341		3,076		-		20,890
Commercial		29,356		523		114		-		29,993
Residential real estate		258,410		155		657		301		259,523
Consumer		1,490		-		-		-		1,490
Total	$	509,100	$	1,671	$	9,844	$	375	$	520,990
December 31, 2012
Commercial real estate	$	197,879	$	748	$	6,277	$	-	$	204,904
Commercial construction		16,102		341		3,274		-		19,717
Commercial		28,066		530		100		-		28,696
Residential real estate		249,737		156		660		301		250,854
Consumer		1,382		-		-		-		1,382
Total	$	493,166	$	1,775	$	10,311	$	301	$	505,553

14

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 11 – Loans Receivable and Credit Quality (Continued)

The following table summarizes information in regards to impaired loans by loan portfolio class as of,March 31, 2013 and December 31, 2012, respectively:

							Year to Date
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2013		(In Thousands)
With no related allowance recorded:
Commercial real estate	$	6,087	$	6,115			$	6,036	$	68
Commercial construction		3,417		3,615				2,767		30
Commercial		289		289				290		2
Residential real estate		456		456				457		6
Consumer		-		-				-		-
With an allowance recorded:
Commercial real estate	$	1,226	$	1,446	$	158	$	1,431	$	36
Commercial construction		-		-		-		749		-
Commercial		11		60		11		6		-
Residential real estate		657		657		159		659		5
Consumer		-		-		-		-		-
Total:
Commercial real estate	$	7,313	$	7,561	$	158	$	7,467	$	104
Commercial construction		3,417		3,615		-		3,516		30
Commercial		300		349		11		296		2
Residential real estate		1,113		1,113		159		1,116		11
Consumer		-		-		-		-		-
	$	12,143	$	12,638	$	328	$	12,395	$	147

December 31, 2012
With no related allowance recorded:
Commercial real estate	$	5,985	$	5,985			$	6,031	$	301
Commercial construction		2,117		2,117				3,218		77
Commercial		291		291				302		7
Residential real estate		458		458				377		23
Consumer		-		-				-		-
With an allowance recorded:
Commercial real estate	$	1,635	$	1,635	$	411	$	1,899	$	161
Commercial construction		1,498		1,498		198		749		44
Commercial		11		60		11		5		-
Residential real estate		660		660		130		689		18
Consumer		-		-		-		-		-
Total:
Commercial real estate	$	7,620	$	7,620	$	411	$	7,930	$	462
Commercial construction		3,615		3,615		198		3,967		121
Commercial		302		351		11		307		7
Residential real estate		1,118		1,118		130		1,066		41
Consumer		-		-		-		-		-
	$	12,655	$	12,704	$	750	$	13,270	$	631

15

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 11 – Loans Receivable and Credit Quality (Continued)

The following table presents nonaccrual loans by classes of the loan portfolio as of March 31, 2013 and December 31, 2012, respectively:

	March 31, 2013		December 31, 2012
	(In Thousands)
Commercial real estate	$	1,839	$	2,104
Commercial construction		-		-
Commercial		49		39
Residential real estate		301		301
Consumer		-		-
Total	$	2,189	$	2,444

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due.  The following table presents the classes of the loan portfolio summarized by the past due status as of March 31, 2013 and December 31, 2012, respectively:

March 31, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total         Past Due		Current		Total Loan Receivables		Loan Receivables > 90 Days and Accruing
		(In Thousands)
Commercial real estate	$	124	$	77	$	1,779	$	1,980	$	207,114	$	209,094	$	350
Commercial construction		-		1,801		-		1,801		19,089		20,890		-
Commercial		313		38		11		362		29,631		29,993		-
Residential real estate		476		-		406		882		258,641		259,523		-
Consumer		16		-		-		16		1,474		1,490		105
Total	$	929	$	1,916	$	2,196	$	5,041	$	515,949	$	520,990	$	455
December 31, 2012
Commercial real estate	$	831	$	-	$	1,809	$	2,640	$	202,264	$	204,904	$	351
Commercial construction		2,559		-		-		2,559		17,158		19,717		-
Commercial		-		39		10		49		28,647		28,696		10
Residential real estate		301		-		301		602		250,252		250,854		-
Consumer		13		-		-		13		1,369		1,382		-
Total	$	3,704	$	39	$	2,120	$	5,863	$	499,690	$	505,553	$	361

16

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 11 – Loans Receivable and Credit Quality (Continued)

The following tablesdetail the activity in the allowance for loan losses for the three months endedMarch 31, 2013 and 2012:

	Commercial Real Estate		Commercial Construction		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for credit losses		(In Thousands)
Three Months Ending March 31, 2013
Beginning Balance - December 31, 2012	$	2,007	$	660	$	394	$	1,677	$	33	$	376	$	5,147
Charge-offs		(260)		(197)		-		-		-		-		(457)
Recoveries		13		-		-		28		-		-		41
Provisions		(284)		27		328		54		5		150		280
Ending Balance - March 31, 2013	$	1,476	$	490	$	722	$	1,759	$	38	$	526	$	5,011
Three Months Ending March 31, 2012
Beginning Balance - December 31, 2011	$	1,264	$	352	$	423	$	1,691	$	40	$	445	$	4,215
Charge-offs		(3)		-		-		-		-		-		(3)
Recoveries		-		-		-		4		-		-		4
Provisions		382		39		(60)		53		(1)		(283)		130
Ending Balance - March 31, 2012	$	1,643	$	391	$	363	$	1,748	$	39	$	162	$	4,346

17

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 11 – Loans Receivable and Credit Quality (Continued)

The following tables represent the allocation of the allocation for loan losses and the related loan portfolio disaggregated based on impairment methodology at March 31, 2013 and December 31, 2012.

	Commercial Real Estate		Commercial Construction		Commercial		Residential Real Estate		Consumer		Unallocated		Total
	(In Thousands)
March 31, 2013
Allowance for Loan Losses
Ending Balance	$	1,476	$	490	$	722	$	1,759	$	38	$	526	$	5,011
Ending balance: individually evaluated for impairment	$	158	$	-	$	11	$	159	$	-	$	-	$	328
Ending balance: collectively evaluated for impairment	$	1,318	$	490	$	711	$	1,600	$	38	$	526	$	4,683
Loans receivables:
Ending balance	$	209,094	$	20,890	$	29,993	$	259,523	$	1,490			$	520,990
Ending balance: individually evaluated  for impairment	$	7,313	$	3,417	$	300	$	1,113	$	-			$	12,143
Ending balance: collectively evaluated for impairment	$	201,781	$	17,473	$	29,693	$	258,410	$	1,490			$	508,847
December 31, 2012
Allowance for Loan Losses
Ending Balance	$	2,007	$	660	$	394	$	1,677	$	33	$	376	$	5,147
Ending balance: individually evaluated for impairment	$	411	$	198	$	11	$	130	$	-	$	-	$	750
Ending balance: collectively evaluated for impairment	$	1,596	$	462	$	383	$	1,547	$	33	$	376	$	4,397
Loans receivables:
Ending balance	$	204,904	$	19,717	$	28,696	$	250,854	$	1,382			$	505,553
Ending balance: individually evaluated  for impairment	$	7,620	$	3,615	$	302	$	1,118	$	-			$	12,655
Ending balance: collectively evaluated for impairment	$	197,284	$	16,102	$	28,394	$	249,736	$	1,382			$	492,898

Troubled Debt Restructurings

The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition than it would not otherwise consider, resulting in a modified loan which is then identified as troubled debt restructuring (“TDR”).  The Company may modify loans through rate reductions, extensions to maturity, interest only payments, or payment modifications to better coincide the timing of payments due under the modified terms with the expected timing of cash flows from the borrowers’ operations.  Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral.  TDRs are considered impaired loans for purposes of calculating the Company’s allowance for loan losses.

The Company identifies loans for potential restructure primarily through direct communication with the borrower and the evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports.  Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future.

18

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 11 – Loans Receivable and Credit Quality (Continued)

The following table presentsTDRs outstanding  as of March 31, 2013:

	March 31, 2013
	Accrual Loans		Non-Accrual Loans		Total Modifications
	(In Thousands)
Commercial real estate	$	5,062	$	410	$	5,472
Commercial construction		1,901		-		1,901
Commercial		186		-		186
Residential real estate		812		-		812
Consumer		-		-		-
	$	7,961	$	410	$	8,371

As of March 31, 2013, no available commitments were outstanding on TDRs.

For the three months endedMarch 31, 2013there were no newly restructured loans.  The following table presents newly restructured loans that occurred during the three months endedMarch 31, 2012:

	Number of Loans	Pre-Modification Outstanding Balance		Post- Modification Outstanding Balance
Three Months Ending March 31, 2012	(Dollars In Thousands)
Commercial real estate	1	$	607	$	607
Residential real estate	1		670		670
	2	$	1,277	$	1,277

Of the newly restructured TDRs described above, two loans required an impairment reserve of $149 thousand recorded in the allowance for loan losses for the three months endedMarch 31, 2012. 

There were no loans that were modified and classified as  aTDR within the prior twelve months that experienced a payment default (loans ninety or more days past due)for the three months ended March 31, 2013

Note 12 – Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

19

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 12 – Fair Value Measurements (Continued)

ASC Topic 860 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 860 are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy utilized at March 31, 2013 and December 31, 2012, respectively, are as follows:

Description	(Level 1)       Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total
		(In Thousands)
U.S. Government agency obligations	$	-	$	36,507	$	-	$	36,507
Municipal Bonds		-		38,951		-		38,951
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		-		7,945		-		7,945
Corporate bonds		-		3,284		-		3,284
March 31, 2013 Securities available for sale	$	-	$	86,687	$	-	$	86,687
U.S. Government agency obligations	$	-	$	40,605	$	-	$	40,605
Municipal Bonds		-		38,952		-		38,952
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		-		9,017		-		9,017
Corporate bonds		-		3,283		-		3,283
December 31, 2012 Securities available for sale	$	-	$	91,857	$	-	$	91,857

20

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 12 – Fair Value Measurements (Continued)

For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2013 and December 31, 2012, respectively, are as follows:

Description	(Level 1)       Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total
		(In Thousands)
March 31, 2013 Impaired loans (1)	$	-	$	-	$	1,052	$	1,052
March 31, 2013 Impaired loans (2)	$	-	$	-	$	514	$	514
March 31, 2013 Other real estate owned (1)	$	-	$	-	$	2,713	$	2,713
December 31, 2012 Impaired loans (1)	$	-	$	-	$	2,006	$	2,006
December 31, 2012 Impaired loans (2)	$	-	$	-	$	1,048	$	1,048
December 31, 2012 Other real estate owned (1)	$	-	$	-	$	3,038	$	3,038
(1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various
Level 3 input which are not identifiable.  Fair values may also include qualitative adjustments by management based on economic
conditions and liquidation expenses.
(2)  Fair Value determined using the debt service of the borrower.

Impaired loans are those that are accounted for under existing FASB guidance,  in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the

properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

At March 31, 2013, of the impaired loans having an aggregate balance of $12.1 million, $10.1 million did not require a valuation allowance because the value of the collateral securing the loan was determined to meet or exceed the balance owed on the loan. Of the remaining $2.0 million in impaired loans, an aggregate valuation allowance of $328 thousand was required to reflect what was determined to be a shortfall in the value of the collateral as compared to the balance on such loans.

Real estate properties acquired through, or in lieu of, foreclosure are to be sold and are carried at fair value less estimated cost to sell.  Fair value is based upon independent market prices or appraised value of the property.  These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement.

21

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 12 – Fair Value Measurements (Continued)

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

		Quantitative Information about Level 3 Fair Value Measurements
Description		Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
			(Dollars In Thousands)
March 31, 2013 Impaired loans		$	1,052	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to -25% (-9.8%)
					Liquidation expenses (3)	0 to -10% (-9.0%)
March 31, 2013 Impaired loans		$	514	Discounted Cash Flows (5)
March 31, 2013 Other real estate owned		$	2,713	Listings, Letters of Intent & Third Party Evaluations (4)	Liquidation expenses (3)	-5% (-5%)
(1)	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various
	Level 3 inputs which are not identifiable.
(2)	Appraisals may be adjusted by management for qualitative factors including economic conditions and the age of the appraisal.
	The range and weighted average of appraisal adjustments are presented as a percent of the appraisal.
(3)	Appraisals and pending agreements of sale are adjusted by management for liquidation expenses.  The range and weighted average of
	liquidation expense adjustments are presented as a percent of the appraisal or pending agreement of sale.
(4)	Fair value is determined by listings, letters of intent or third-party evaluations.
(5)	Fair value is determined using the debt service of the borrower.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at March 31, 2013 and December 31, 2012:

Cash and Cash Equivalents (Carried at Cost)

The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values.

Interest Bearing Time Deposits (Carried at Cost)

Fair values for fixed-rate time certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. The Company generally purchases amounts below the insured limit, limiting the amount of credit risk on these time deposits.

Securities Available for Sale (Carried at Fair Value)

The fair value of securities available for sale are determined by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted prices. For these securities, the Company obtains fair value measurements from an independent pricing service.  The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

22

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 12 – Fair Value Measurements (Continued)

Loans Receivable (Carried at Cost)

The fair values of loans, excluding impaired loans carried at fair value of collateral, are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, and projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

Restricted Investment in Bank Stock (Carried at Cost)

The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities.

Accrued Interest Receivable and Payable (Carried at Cost)

The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.

Deposit Liabilities (Carried at Cost)

The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Securities Sold Under Agreements to Repurchase and Federal Funds Purchased (Carried at Cost)

These borrowings are short term and the carrying amount approximates the fair value.

Long-Term Borrowings (Carried at Cost)

Fair values of FHLB and Univest advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB and Univest advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party.

Off-Balance Sheet Financial Instruments (Disclosed at Cost)

Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing.

23

Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 12 – Fair Value Measurements (Continued)

The estimated fair values of the Company’s financial instruments were as follows at March 31, 2013 and December 31, 2012:

			Carrying Amount		Fair Value Estimate		(Level 1) Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs
		(In Thousands)
March 31, 2013:
	Financial assets:
	Cash and cash equivalents	$	14,205	$	14,205	$	14,205	$	-	$	-
	Interest bearing time deposits		4,134		4,156		-		4,156		-
	Securities available-for-sale		86,687		86,687		-		86,687		-
	Loans receivable, net of allowance		515,620		522,502		-		-		522,502
	Restricted investments in bank stock		1,454		1,454		-		1,454		-
	Accrued interest receivable		1,637		1,637		-		1,637		-
	Financial liabilities:
	Deposits		542,039		542,745		-		542,745		-
	Securities sold under agreements to
	repurchase and federal funds purchased		27,515		27,515		-		27,515		-
	Long-term borrowings		12,386		12,445		-		-		12,445
	Accrued interest payable		306		306		-		306		-
	Off-balance sheet financial instruments:
	Commitments to grant loans		-		-		-		-		-
	Unfunded commitments under lines of credit		-		-		-		-		-
	Standby letters of credit		-		-		-		-		-
December 31, 2012:
	Financial assets:
	Cash and cash equivalents	$	29,940	$	29,940	$	29,940	$	-	$	-
	Interest bearing time deposits		5,945		5,977		-		5,977		-
	Securities available-for-sale		91,857		91,857		-		91,857		-
	Loans receivable, net of allowance		500,072		508,053		-		-		508,053
	Restricted investments in bank stock		1,454		1,454		-		1,454		-
	Accrued interest receivable		1,578		1,578		-		1,578		-
	Financial liabilities:
	Deposits		553,020		553,756		-		553,756		-
	Securities sold under agreements to
	repurchase and federal funds purchased		24,452		24,452		-		24,452		-
	Long-term borrowings		12,586		12,708		-		-		12,708
	Accrued interest payable		327		327		-		327		-
	Off-balance sheet financial instruments:
	Commitments to grant loans		-		-		-		-		-
	Unfunded commitments under lines of credit		-		-		-		-		-
	Standby letters of credit		-		-		-		-		-

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Embassy Bancorp, Inc.                                                                                                                          

Notes to Consolidated Financial Statements (Unaudited)

Note 13 – Offsetting Assets and Liabilities

Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”)

The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities.  Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets.  As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities.  The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement.

The following table presents the liabilities subject to an enforceable master netting arrangement or repurchase agreements as of March 31, 2013 and December 31, 2012:

							Net Amounts
			Gross		Gross Amounts		of Liabilities
			Amounts of		Offset in the		Presented in the
			Recognized		Consolidated		Consolidated		Financial		Cash Collateral
			Liabilities		Balance Sheet		Balance Sheet		Instruments		Pledged		Net Amount
			(In Thousands)
March 31, 2013
Repurchase Agreements:
Private Institutions	(a)	$	27,515	$	-	$	27,515	$	(27,515)	$	-	$	-
December 31, 2012
Repurchase Agreements:
Private Institutions	(a)	$	24,452	$	-	$	24,452	$	(24,452)	$	-	$	-

As of March 31, 2013 and December 31, 2012, the fair value of securities pledged was $39.4 million and $45.8 million, respectively.

Note 14 – New Accounting Standards

Accounting Standards Update (ASU) No. 2011-11, “Balance Sheet (Topic 210)—Disclosures about Offsetting Assets and Liabilities,” and ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 amends Topic 210, “Balance Sheet”, to require an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject to master netting arrangement or similar agreement. ASU 2011-11 is effective for annual and interim periods beginning on January 1, 2013, and did not have a material impact on the Company’s financial statements. See Note 13 – Offsetting Assets and Liabilities.

Accounting Standards Update (ASU) No. 2013-02, “Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.”  ASU 2013-02 amends recent guidance related to the reporting of comprehensive income to enhance the reporting of reclassifications out of accumulated other comprehensive income.  ASU 2013-02 became effective for the Company on January 1, 2013 and did not have a material impact on the Company’s financial statements.  See Note 5 - Other Comprehensive Income.

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

This discussion and analysis provides an overview of the financial condition and results of operations of Embassy Bancorp, Inc. (the “Company”) as of March 31, 2013 and for the three month periods endedMarch 31, 2013 and 2012, respectively. This discussion should be read in conjunction with the preceding consolidated financial statements and related footnotes, as well as with the audited consolidated financial statements and the accompanying notes for the year ended December 31, 2012, included in the Company’s Form 10-K filed with the Securities and Exchange Commission. Current performance does not guarantee and may not be indicative of similar performance in the future.

Critical Accounting Policies

Disclosure of the Company’s significant accounting policies is included in Note 1 to the consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2012. Some of these policies are particularly sensitive, requiring significant judgments, estimates and assumptions to be made by management, most particularly in connection with determining the provision for loan losses and the appropriate level of the allowance for loan losses and the valuation of deferred tax assets. Additional information is contained in this Form 10-Q under the paragraphs titled “Provision for Loan Losses,” “Credit Risk and Loan Quality,” and “Income Taxes” contained on the following pages.

Forward-looking Statements

This report contains forward-looking statements, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.  These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market, interest rates and interest rate policy, competitive factors and other conditions that, by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty.

Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy.

No assurance can be given that the future results covered by forward-looking statements will be achieved. Such statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could impact the Company’s operating results include, but are not limited to, (i) the effects of changing economic conditions in the Company’s market areas and nationally, (ii) credit risks of commercial, real estate, consumer and other lending activities, (iii) significant changes in interest rates, (iv) changes in federal and state banking laws and regulations which could impact the Company’s operations, and (iv) other external developments which could materially affect the Company’s business and operations.

OVERVIEW

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.

The Bank, which is the Company’s primary 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 Company’s assets decreased  $7.0 million from $643.0 million at December 31, 2012 to $636.0 million at March 31, 2013 due primarily to a decrease in demand deposits of $11.0 million.

Net income for the three months ended March 31, 2013 was $1.18 million compared to a net income for the three months ended March 31, 2012 of $1.17 million. Loans receivable, net of the allowance for loan losses, increased $15.5 million to $515.6 million at March 31, 2013 from $500.1 million at December 31, 2012. The market is very competitive and the Company is committed to maintaining a high quality portfolio that returns a reasonable market rate. The Company expects to increase lending activity, as the

26

Company expands its presence in its market and becomes more widely known.  The past and current economic conditions have created lower demand for loans by credit-worthy customers.  The lending staff has been active in contacting new prospects and promoting the Company’s name in the community. Management believes that this will translate into continued growth of a portfolio of quality loans and core deposit relationships, although there can be no assurance of this.

RESULTS OF OPERATIONS

Net Interest Income

Total interest income for the three months ended March 31, 2013and 2012 totaled$6.0 million.  Average earning assets were $614.3 million for the three months ended March 31, 2013 compared to $584.1 million for the three months ended March 31, 2012. The tax equivalent yield on average earning assets was 4.05% for the first quarter of 2013 compared to 4.26% for the first quarter of 2012.

Total interest expense for the three months ended  March 31, 2013 decreased $414.0 thousand to $0.8 million as compared to $1.2 million for the three months ended March 31, 2012, primarily due to decreases in deposit rates offset by an increase in average deposits. Average interest bearing liabilities were $535.0 million for the three months ended March 31, 2013 compared to $515.5 million for the three months ended March 31, 2012.  The yield on average interest bearing liabilities was 0.60% for the first quarter of 2013 compared to 0.94% for the first quarter of 2012. This decrease was the result of market conditions, deposit mix, competition, and management’s resulting adjustments to the interest rates provided to depositors.

Net interest income for the three months ended March 31, 2013 was $5.2 million compared to $4.8 million for the three months ended March 31, 2012. The improvement in net interest income for the three months ended March 31, 2013 is a result of decreases in the interest expense associated with deposits and other borrowed funds and growth in interest earning assets, offset by a reduction in rates received on a higher level of interest earning assets. The Company’s net interest margin for the three months ended March 31, 2013 increased twelve(12) basis points to 3.55% as compared to 3.43% for the three months ended March 31, 2012, due to the current interest rate environment, including decreased cost of deposits offset by decreased interest rates on the investment securities portfolio and the competitive interest rate pressure of lending.

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Below are tables which set forth average balances and corresponding yields for the corresponding March 31, 2013 and March 31, 2012, respectively:

Distribution of Assets, Liabilities and Stockholders’ Equity:

Interest Rates and Interest Differential (quarter to date)

	Three Months Ended March 31,
	2013			2012
			Tax			Tax
	Average		Equivalent	Average		Equivalent
	Balance	Interest	Yield	Balance	Interest	Yield
	(Dollars In Thousands)
ASSETS
Loans - taxable	$      507,620	$     5,451	4.35%	$       426,302	$     5,270	4.97%
Loans - non-taxable	3,672	35	5.91%	3,767	37	5.99%
Investment securities - taxable	57,585	222	1.60%	63,180	328	2.09%
Investment securities - non-taxable	33,766	289	5.19%	32,400	313	5.89%
Federal funds sold	867	-	0.20%	2,565	1	0.16%
Time deposits	5,083	14	1.09%	7,702	27	1.41%
Interest bearing deposits with banks	5,694	5	0.36%	48,208	27	0.23%
TOTAL INTEREST EARNING ASSETS	614,287	6,016	4.05%	584,124	6,003	4.26%
Less allowance for loan losses	(5,073)			(4,267)
Other assets	27,433			22,697
TOTAL ASSETS	$      636,647			$       602,554
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing demand deposits, NOW and money
market	$        58,668	$          10	0.07%	$         51,397	$          22	0.17%
Savings	378,908	462	0.49%	349,268	740	0.85%
Certificates of deposit	58,078	152	1.06%	70,353	241	1.38%
Securities sold under agreements to
repurchase, federal funds purchased and
long-term borrowings	39,377	169	1.75%	44,483	204	1.84%
TOTAL INTEREST BEARING LIABILITIES	535,031	793	0.60%	515,501	1,207	0.94%
Non-interest bearing demand deposits	46,731			37,221
Other liabilities	3,509			3,690
Stockholders' equity	51,376			46,142
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$      636,647			$       602,554
Net interest income		$     5,223			$     4,796
Net interest spread			3.45%			3.32%
Net interest margin			3.55%			3.43%

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Provision for Loan Losses

The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is maintained at a level considered by management to be adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant change.

The allowance consists of general, specific, qualitative and unallocated components. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors.  The specific component relates to loans that are classified as watch, other assets especially mentioned, substandard, doubtful or loss. For such loans they may also be classified as impaired or restructured.  For loans that are further classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. 

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and home equity loans for impairment disclosures, unless such loans are the subject of a restructuring agreement or there is a possible loss expected.

For the three months ended March 31, 2013, the provision for loan losses was $280 thousand, as compared to $130 thousand, for the same period ended March 31, 2012.  In the three months ended2013, there were charge-offs in the amount of $456 thousand, however principal in the amount of $40 thousand was recovered.  The allowance for loan losses is $5.0 million as of March 31, 2013, which is 0.96% of outstanding loans, compared to $4.3 million or 1.00% of outstanding loans as of March 31, 2012. At December 31, 2012, the allowance for loan losses of $5.1 million represented 1.00% of total outstanding loans. Based principally on economic conditions, asset quality, and loan-loss experience, including that of comparable institutions in the Bank’s market area, the allowance is believed to be adequate to absorb any losses inherent in the portfolio. Because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing allowance for loan losses is adequate, or that material increases will not be necessary should the quality of the loans deteriorate.  The Bank has not participated in any sub-prime lending activity.

29

The activity in the allowance for loan losses is shown in the following table, as well as period end loans receivable and the allowance for loan losses as a percent of the total loan portfolio:

	March 31,
	2013		2012
	(In Thousands)
Loans receivable at end of period	$	520,631	$	436,247
Allowance for loan losses:
Balance, beginning	$	5,147	$	4,215
Provision for loan losses		280		130
Loans charged off:
Commercial real estate		(259)		-
Commercial construction		(197)		-
Residential real estate		-		(3)
Total loans charged off		(456)		(3)
Recoveries of loans previously charged off:
Commercial real estate		12		4
Residential real estate		28		-
Total recoveries		40		4
Net (charge offs) recoveries		(416)		1
Balance at end of period	$	5,011	$	4,346
Allowance for loan losses to loans
receivable at end of period		0.96%		1.00%

Non-interest Income

Total non-interest income was $497 thousand for the three months ended March 31, 2013 compared to $306 thousand for the same period in 2012.  The increase is primarily due to the growth in the Bank’s credit card and merchant processing customer base, increase in income associated with bank owned life insurance and less reduction in interest income from other real estate owned write downs.

Non-interest Expense

Non-interest expenses increased $450.0 thousand, or 14.1%, from $3.4 million for the three months ended March 31, 2012 to $3.8 million for the same period ended March 31, 2013. The increase is due to: an increase of $244 thousand in salary and employee benefits, the majority of which are in conjunction with increased non-qualified pension expense, insurance benefits and salary adjustments; an increase of $36 thousand in credit card expense due to an increase in volume; an increase of $18 thousand in charitable contributions; an increase of $19 thousand in professional services due to compliance expenses; an increase of $33 thousand in advertising expense;  an increase of $38 thousand in data processing expense;  an increase of $17 thousand in FDIC insurance expense; and an increase of $79 thousand in other operating expenses due primarily to the change in valuation of officer’s life insurance; offset by a decrease of $3 thousand in other real estate owned expenses; and a decrease of $11 thousand in occupancy and equipment expense.

A breakdown of other expenses can be found in the statements of income.

Income Taxes

The allocated provision for income taxes for the three months ended March 31, 2013 totaled $437 thousand, or 27.1% of income before taxes. The provision for income taxes for the three months ended March 31, 2012 totaled $427 thousand, or 26.7% of income before taxes. The slight increase in the tax rate is a result of the change in the mix of taxable and tax free loans and investments.

30

FINANCIAL CONDITION

Securities

The Bank’s securities portfolio continues to be classified, in its entirety, as “available for sale.” Management believes that a portfolio classification of available for sale allows complete flexibility in the investment portfolio. Using this classification, the Bank intends to hold these securities for an indefinite amount of time, but not necessarily to maturity. Such securities are carried at fair value with unrealized gains or losses reported as a separate component of stockholders’ equity. The portfolio is structured to provide maximum return on investments while providing a consistent source of liquidity and meeting strict risk standards. Investment securities consist primarily of U.S. government agency securities, mortgage-backed securities issued by FHLMC or FNMA, corporate bonds, and taxable and non-taxable municipal bonds. The Bank holds no high-risk securities or derivatives as of March 31, 2013. The Bank has not made any investments in non-U.S. government agency mortgage backed securities or sub-prime loans.

Total securities at March 31, 2013 were $86.7 million compared to $91.9 million at December 31, 2012. The decrease in the investment portfolio is the result of principal payments on U.S. GSEs and the maturity of U.S. agency bonds.  The carrying value of the securities portfolio as of March 31, 2013 includes a net unrealized gain of $3.4 million, which is recorded as accumulated other comprehensive income in stockholders’ equity net of income tax effect. This compares to a net unrealized gain of $3.5 million at December 31, 2012. The current unrealized gain position of the securities portfolio is due to the changes in market rates since purchase. No securities are deemed to be other than temporarily impaired.

Loans

The loan portfolio comprises a major component of the Bank’s earning assets. All of the Bank’s loans are to domestic borrowers. Total net loans at March 31, 2013 increased $15.5 million to $515.6 million from $500.1 million at December 31, 2012. The loan to deposit ratio increased from 91% at December 31, 2012 to 96% at March 31, 2013. The Bank’s loan portfolio at March 31, 2013 was comprised of residential real estate and consumer loans of $261.0 million, an increase of $8.8 million from December 31, 2012, and commercial loans of $260.0 million, an increase of $6.7 million from December 31, 2012.  The Bank has not originated, nor does it intend to originate, sub-prime mortgage loans.

Credit Risk and Loan Quality

The allowance for loan losses decreased $136 thousand to $5.0 million at March 31, 2013 from $5.1 million at December 31, 2012. At March 31, 2013 and December 31, 2012, the allowance for loan losses represented 0.96%and 1.00%, respectively of total loans. Based upon current economic conditions, the composition of the loan portfolio, the perceived credit risk in the portfolio and loan-loss experience of comparable institutions in the Bank’s market area, management feels the allowance is adequate to absorb reasonably anticipated losses.

At March 31, 2013, aggregate balances on non-performing loans equaled $10.3 million compared to $10.6 million at December 31, 2012 and $11.0 million at March 31, 2012, representing 1.97%, 2.11% and 2.52% of total loans at March 31, 2013,  December 31, 2012 and March 31, 2012, respectively. Troubled debt restructurings, included in the following table, represent loans where the Company, for economic or legal reasons related to the debtor’s financial difficulties, has granted a concession to the debtor that it would not otherwise consider.  There were no loans that were modified and classified as a TDR within the prior twelve months that experienced a payment default (loans ninety or more days past due) for the period ended March 31, 2013.  The Company has one foreclosed asset in the amount of $2.7 million as of March 31, 2013, as compared to three foreclosed assets at December 31, 2012 in the amount of $3.0 million.  The net change is a result of the sale of two assets with a deferred gain totaling $116 thousand, along with a write down totaling $6 thousand on the remaining foreclosed asset.  The details for non-performing loans are included in the following table:

		March 31,			December 31,			March 31,
		2013			2012			2012
	(In Thousands)
Non-accrual - commercial	$	1,888		$	2,143		$	2,391
Non-accrual - consumer		301			301			82
Restructured loans (still accruing interest)		7,612			7,841			8,523
Loans past due 90 or more days, accruing interest		455			361			-
Total nonperforming loans		10,256			10,646			10,996
Foreclosed assets		2,713			3,038			2,969
Total nonperforming assets	$	12,969		$	13,684		$	13,965
Nonperforming loans to total loans at period-end		1.97	%		2.11	%		2.52	%
Nonperforming assets to total assets		2.04	%		2.13	%		2.26	%

31

Premises and Equipment

Company premises and equipment, net of accumulated depreciation, decreased $120.0 thousand from December 31, 2012 to March 31, 2013. This decrease is due primarily to depreciation on existing premises and equipment.

On May 4, 2012, the Bank entered into a lease renewal and modification agreement (the “Agreement”) with Red Bird Associates, LLC (“Red Bird”) providing for an extension of the term of the lease of the Bank’s principal office located at 100 Gateway Drive in Bethlehem, Pennsylvania (the “Lease”).   The agreement provided for an additional five year term.  The new term continues through February 28, 2017 and is subject to a 2.0% increase on March 1 of each year.  The agreement further provides coterminous terms and options to the original lease agreement for Suite 100, the first lease expansion agreement for Suite 200, and the second lease expansion addendum for Suite 210 of the Gateway office building.  As disclosed in the Company’s definitive proxy statement filed with the SEC on April 27, 2012, Red Bird is a real estate holding company owned by six Directors of the Company, as well as Judith A. Hunsicker, Senior Executive Vice President and Chief Operating and Financial Officer.  Prior to its execution, the terms of the Agreement, including the rental amount, were determined by a majority of the disinterested Directors to be no less favorable to the Bank than the terms then prevailing in the relevant market.

Deposits

Total deposits at March 31, 2013 decreased $11.0 million to $542.0 million from $553.0 million at December 31, 2012. Savings deposits decreased by $612 thousand, time deposits decreased $728 thousand, and demand deposits decreased by $9.7 million, which the Company attributes primarily toone account withdrawing a short term deposit totaling $11.0 million, and was offset primarily by $1.3 million in growth in deposits overall.

Liquidity

Liquidity represents the Company’s ability to meet the demands required for the funding of loans and to meet depositors’ requirements for use of their funds. The Company’s sources of liquidity are cash balances, due from banks, and federal funds sold. Cash and cash equivalents were $14.2 million at March 31, 2013, compared to $29.9 million at December 31, 2012.

Additional asset liquidity sources include principal and interest payments from the investment security and loan portfolios. Long-term liquidity needs may be met by selling unpledged securities available for sale, selling loans or raising additional capital. At March 31, 2013, the Company had $86.7 million of available for sale securities. Securities with carrying values of approximately $39.4 million and $45.8 million at March 31, 2013 and December 31, 2012, respectively, were pledged as collateral to secure securities sold under agreements to repurchase, public deposits, and for other purposes required or permitted by law.

The Bank also has borrowing capacity with the FHLB of approximately $248.9 million, of which $7.9 million was outstanding in long-term loans at March 31, 2013 and December 31, 2012.  This borrowing capacity with the FHLB includes a line of credit for $25 million, of which there is no balance outstanding as of March 31, 2013.   Both of the long-term loans mature in 2013.  There were no short-term advances outstanding at March 31, 2013 and December 31, 2012. All FHLB borrowings are secured by qualifying assets of the Bank.

The Bank also has a line of credit with ACBB of approximately $6.0 million, of which none was outstanding at March 31, 2013.   Advances from this line are unsecured.

The Company has two lines of credit totaling an aggregate of $10 million with Univest, of which an aggregate of $4.5 million was outstanding at March 31, 2013. These lines of credit are secured by 833,333 shares of Bank common stock.

The Company has no investment in or financial relationship with any unconsolidated entities that are reasonably likely to have a material effect on liquidity or capital resources.

Off-Balance Sheet Arrangements

The Company’s consolidated financial statements do not reflect various off-balance sheet arrangements that are made in the normal course of business, which may involve some liquidity risk. These off-balance sheet arrangements consist of unfunded loans and commitments, as well as lines of credit made under the same standards as on-balance sheet instruments. These unused commitments totaled $92.5 million at March 31, 2013. The Company also has letters of credit outstanding of $5.3 million at March 31, 2013. Because these instruments have fixed maturity dates, and because many of them will expire without being drawn upon, they do not generally present any significant liquidity risk to the Company. Management is of the opinion that the Company’s liquidity is sufficient to meet its anticipated needs.

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Capital Resources and Adequacy

Total stockholders’ equity was $51.2 million as of March 31, 2013, representing a net increase of $1.2 million from December 31, 2012.  The increase in capital was primarily the result of the net income of $1.18 million.

The Company and the Bank are subject to various regulatory capital requirements administered by banking regulators. Failure to meet minimum capital requirements can initiate certain actions by regulators that could have a material effect on the consolidated financial statements.

The regulations require that banks maintain minimum amounts and ratios of total and Tier I capital (as defined in the regulations) to risk weighted assets (as defined), and Tier I capital to average assets (as defined). As of March 31, 2013, the Bank met the minimum requirements. In addition, the Bank’s capital ratios exceeded the amounts required to be considered “well capitalized” as defined in the regulations.

The following table provides a comparison of the Bank’s risk-based capital ratios and leverage ratios:

	March 31, 2013			December 31, 2012
	(Dollars In Thousands)
Tier I, common stockholders' equity	$	53,073		$	52,046
Tier II, allowable portion of allowance for loan losses		5,011			5,147
Total capital	$	58,084		$	57,193
Tier I risk based capital ratio		12.0	%		12.1	%
Total risk based capital ratio		13.1	%		13.3	%
Tier I leverage ratio		8.4	%		8.0	%

Note: Unrealized gains on securities available for sale are excluded from regulatory capital components of risk-based                                         capital and leverage ratios

The Federal banking regulators have adopted risk-based capital guidelines for bank holding companies. Currently, the required minimum ratio of total capital to risk-weighted assets (including off-balance sheet activities, such as standby letters of credit) is 8%. At least half of the total capital is required to be Tier I capital, consisting principally of common shareholders’ equity, non-cumulative perpetual preferred stock, a limited amount of cumulative perpetual preferred stock and minority interests in the equity accounts of consolidated subsidiaries, less goodwill. The remainder (Tier II capital) may consist of a limited amount of subordinated debt and intermediate-term preferred stock, certain hybrid capital instruments and other debt securities, perpetual preferred stock and a limited amount of the general loan loss allowance.

In addition to the risk-based capital guidelines, the federal banking regulators established minimum leverage ratio (Tier I capital to total assets) guidelines for bank holding companies. These guidelines provide for a minimum leverage ratio of 3% for those bank holding companies which have the highest regulatory examination ratings and are not contemplating or experiencing significant growth or expansion. All other bank holding companies are required to maintain a leverage ratio of at least 4%.

33

The following table provides the Company’s risk-based capital ratios and leverage ratios:

	March 31, 2013			December 31, 2012
	(Dollars In Thousands)
Tier I, common stockholders' equity	$	48,998		$	47,745
Tier II, allowable portion of allowance for loan losses		5,011			5,147
Total capital	$	54,009		$	52,892
Tier I risk based capital ratio		11.1	%		11.1	%
Total risk based capital ratio		12.2	%		12.3	%
Tier I leverage ratio		7.7	%		7.3	%

34

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

Item 4 – Controls and Procedures

The term “disclosure controls and procedures” is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”). This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within required time periods. Our Chief Executive Officer and our Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2013, and they have concluded that, as of this date, our disclosure controls and procedures were effective at ensuring that required information will be disclosed on a timely basis in our reports filed under the Exchange Act.

There were no significant changes to our internal controls over financial reporting or in the other factors that could significantly affect our internal controls over financial reporting during the quarter ended March 31, 2013, including any corrective actions with regard to significant deficiencies and material weakness.

35

Part II - Other Information

Item 1 - Legal Proceedings

The Company and the Bank are an occasional party to legal actions arising in the ordinary course of its business. In the opinion of management, the Company has adequate legal defenses and/or insurance coverage respecting any and each of these actions and does not believe that they will materially affect the Company’s operations or financial position.

Item 1A - Risk Factors

Not Applicable

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

Not Applicable

Item 3 - Defaults Upon Senior Securities

Not Applicable.

Item 4 – Mine Safety Disclosures

Not Applicable

Item 5 - Other Information

Not Applicable.

Item 6 - Exhibits

Exhibit
Number	Description
3.1	Articles of Incorporation as amended (conformed) (Incorporated by reference to Exhibit 3.1 of
	Registrant’s Form 10-Q filed on May 14, 2010).
3.2	By-Laws (Incorporated by reference to Exhibit 2 of Registrant’s Form 8-A filed on December 11, 2008).
10.1	Amendment  No. 2 to Supplemental Executive Retirement Plan Agreement between Embassy
	Bank  for  the  Lehigh  Valley  and  David  M.  Lobach,  Jr., dated January 1, 2013
	(Incorporated  by reference to Exhibit 10.1 of Registrant’s Form 8-K filed on January 2, 2013).
10.2	Amendment  No. 2 to Amended and Restated Supplemental Executive Retirement Plan Agreement between
	Embassy Bank for the Lehigh Valley and Judith A. Hunsicker, dated January 1, 2013
	(Incorporated by reference to Exhibit 10.2 of Registrant’s Form 8-K filed on January 2, 2013).
10.3	Amendment  No. 2 to Amended and Restated Supplemental Executive Retirement Plan Agreement between
	Embassy Bank for the Lehigh Valley and James R. Bartholomew, dated January 1, 2013
	(Incorporated by reference to Exhibit 10.3 of Registrant’s Form 8-K filed on January 2, 2013).
11.1	The statement regarding computation of per share earnings required by this exhibit is contained in Note 5
	to the financial statements under the caption “Basic and Diluted Earnings Per Share.”
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a).
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a).
32	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 1350
	of the Sarbanes-Oxley Act of 2002.

36

Item 6 – Exhibits (Continued)

The following Exhibits are being furnished* as part of this report:

No.	Description
101.INS	XBRL Instance Document.*
101.SCH	XBRL Taxonomy Extension Schema Document.*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.*
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document.*

______________________

*These interactive data files are being furnished as part of this Quarterly Report, and, in accordance with Rule 402 of Regulation S-T, shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

37

SIGNATURES

 In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		EMBASSY BANCORP, INC.
		(Registrant)
	By:	/s/ David M. Lobach, Jr.
Dated: May 14, 2013		David M. Lobach, Jr.
		President and Chief Executive Officer
Dated: May 14, 2013	By:	/s/ Judith A. Hunsicker
		Judith A. Hunsicker
		Senior Executive Vice President,
		Chief Operating Officer, Secretary and
		Chief Financial Officer

38

EXHIBIT INDEX

Exhibit
Number	Description
3.1	Articles of Incorporation as amended (conformed) (Incorporated by reference to Exhibit 3.1 of
	Registrant’s Form 10-Q filed on May 14, 2010).
3.2	By-Laws (Incorporated by reference to Exhibit 2 of Registrant’s Form 8-A filed on December 11, 2008).
10.1	Amendment  No. 2 to Supplemental Executive Retirement Plan Agreement between Embassy
	Bank  for  the  Lehigh  Valley  and  David  M.  Lobach,  Jr., dated January 1, 2013
	(Incorporated  by reference to Exhibit 10.1 of Registrant’s Form 8-K filed on January 2, 2013).
10.2	Amendment  No. 2 to Amended and Restated Supplemental Executive Retirement Plan Agreement between
	Embassy Bank for the Lehigh Valley and Judith A. Hunsicker, dated January 1, 2013
	(Incorporated by reference to Exhibit 10.2 of Registrant’s Form 8-K filed on January 2, 2013).
10.3	Amendment  No. 2 to Amended and Restated Supplemental Executive Retirement Plan Agreement between
	Embassy Bank for the Lehigh Valley and James R. Bartholomew, dated January 1, 2013
	(Incorporated by reference to Exhibit 10.3 of Registrant’s Form 8-K filed on January 2, 2013).
11.1	The statement regarding computation of per share earnings required by this exhibit is contained in Note 5
	to the financial statements under the caption “Basic and Diluted Earnings Per Share.”
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a).
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a).
32	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 1350
	of the Sarbanes-Oxley Act of 2002.

The following Exhibits are being furnished* as part of this report:

No.	Description
101.INS	XBRL Instance Document.*
101.SCH	XBRL Taxonomy Extension Schema Document.*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.*
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document.*

______________________

*These interactive data files are being furnished as part of this Quarterly Report, and, in accordance with Rule 402 of Regulation S-T, shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

39

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David M. Lobach, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Embassy Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By: /s/ David M. Lobach, Jr.

DAVID M. LOBACH, JR.

President and Chief Executive Officer

DATED:  May 14, 2013

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Judith A. Hunsicker, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Embassy Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By: /s/ Judith A. Hunsicker

JUDITH A. HUNSICKER

Senior Executive Vice President, Chief

Operating Officer and Chief Financial Officer

DATED:  May 14, 2013

EX-32

EXHIBIT 32

Certification Pursuant to 18 U.S.C. 1350 and

Section 906 of Sarbanes-Oxley Act of 2002

We hereby certify that the foregoing Form 10-Q of Embassy Bancorp, Inc. for the quarter ending March  31, 2013 complies in all respects with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of Embassy Bancorp, Inc.

By:/s/ David M. Lobach, Jr.

DAVID M. LOBACH, JR.

President and Chief Executive Officer

By: /s/ Judith A. Hunsicker

JUDITH A. HUNSICKER

Senior Executive Vice President, Chief

Operating Officer and

Chief Financial Officer

Dated: May 14, 2013

XML

Guarantees (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013
Guarantees [Abstract]
Letters of Credit Outstanding, Amount	$ 5.3
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 4.7

XML

Fair Value of Financial Instruments (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 86,687	$ 91,857
U.S Government agency obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	36,507	40,605
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	38,951	38,952
U.S. GSE - Mortgage-backed securities - residential [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	7,945	9,017
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	3,284	3,283
(Level 2) Significant Other Observable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	86,687	91,857
(Level 2) Significant Other Observable Inputs [Member] | U.S Government agency obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	36,507	40,605
(Level 2) Significant Other Observable Inputs [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	38,951	38,952
(Level 2) Significant Other Observable Inputs [Member] | U.S. GSE - Mortgage-backed securities - residential [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	7,945	9,017
(Level 2) Significant Other Observable Inputs [Member] | Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 3,284	$ 3,283

XML

Loans Receivable and Credit Quality (Nonaccrual Loans by Classes of the Loan Portfolio) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual Loans	$ 2,189	$ 2,444
Commercial real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual Loans	1,839	2,104
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual Loans	49	39
Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual Loans	$ 301	$ 301

XML

Fair Value of Financial Instruments (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financing Receivable, Individually Evaluated for Impairment	$ 12,143		$ 12,655
Recorded Investment, With no related allowance recorded	10,100
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	10,100
Impaired Financing Receivable, with Related Allowance, Recorded Investment	2,000
Impaired Financing Receivable, Related Allowance	328		750
Other real estate owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	2,713
FV determined through independent appraisals of the underlying collateral [Member] | Impaired Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	1,052	[1]	2,006	[1],[2]
FV determined through independent appraisals of the underlying collateral [Member] | Other real estate owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	2,713	[1]	3,038	[1]
FV determined through independent appraisals of the underlying collateral [Member] | (Level 3) Significant Unobservable Inputs [Member] | Impaired Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	1,052	[1]	2,006	[1],[2]
FV determined through independent appraisals of the underlying collateral [Member] | (Level 3) Significant Unobservable Inputs [Member] | Other real estate owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	2,713	[1]	3,038	[1]
FV determined using the debt service of the borrower [Member] | Impaired Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	514	[2],[3]	1,048	[3]
FV determined using the debt service of the borrower [Member] | (Level 3) Significant Unobservable Inputs [Member] | Impaired Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 514	[2],[3]	$ 1,048	[3]

[1] (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Fair values may also include qualitative adjustments by management based on economic conditions and liquidation expenses.

[2] (2) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Fair values may also include qualitative adjustments by management and estimated liquidation expenses.

[3] (2) Fair Value determined using the debt service of the borrower.

XML

Loans Receivable and Credit Quality (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 520,990	$ 505,553
Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	509,100	493,166
Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,671	1,775
Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	9,844	10,311
Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	375	301
Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	209,094	204,904
Commercial real estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	202,371	197,879
Commercial real estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	652	748
Commercial real estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	5,997	6,277
Commercial real estate [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	74
Commercial construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	20,890	19,717
Commercial construction [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	17,473	16,102
Commercial construction [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	341	341
Commercial construction [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	3,076	3,274
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	29,993	28,696
Commercial [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	29,356	28,066
Commercial [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	523	530
Commercial [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	114	100
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	259,523	250,854
Residential real estate [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	258,410	249,737
Residential real estate [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	155	156
Residential real estate [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	657	660
Residential real estate [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	301	301
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	1,490	1,382
Consumer [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 1,490	$ 1,382

XML

Basis of Presentation (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013
Basis of Presentation [Abstract]
Business Combination, Reason for Business Combination	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.
Business Acquisition, Effective Date of Acquisition	Nov. 11, 2008
Business Acquisition, Cost of Acquired Entity, Description of Purchase Price Components	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.

XML

Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 14,205	$ 29,940
Interest bearing time deposits, fair value	4,156	5,977
Securities available-for-sale, fair value	86,687	91,857
Loans receivable, net of allowance, fair value	522,502	508,053
Restricted investment in bank stock, fair value	1,454	1,454
Accrued interest receivable, fair value	1,637	1,578
Deposits, fair value	542,745	553,756
Securities sold under agreements to repurchase and federal funds purchased, fair value	27,515	24,452
Long-term borrowings, fair value	12,445	12,708
Accrued interest payable, fair value	306	327
Cash and Cash Equivalents	14,205	29,940
Interest bearing time deposits	4,134	5,945
Securities available for sale	86,687	91,857
Loans and Leases Receivable, Net Reported Amount	515,620	500,072
Restricted investment in bank stock	1,454	1,454
Accrued interest receivable	1,637	1,578
Deposits	542,039	553,020
Securities sold under agreements to repurchase	27,515	24,452
Long-term Debt	12,386	12,586
Accrued interest payable	306	327
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	14,205	29,940
(Level 2) Significant Other Observable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest bearing time deposits, fair value	4,156	5,977
Securities available-for-sale, fair value	86,687	91,857
Restricted investment in bank stock, fair value	1,454	1,454
Accrued interest receivable, fair value	1,637	1,578
Deposits, fair value	542,745	553,756
Securities sold under agreements to repurchase and federal funds purchased, fair value	27,515	24,452
Accrued interest payable, fair value	306	327
(Level 3) Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, net of allowance, fair value	522,502	508,053
Long-term borrowings, fair value	$ 12,445	$ 12,708

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Guarantees (Policy)

3 Months Ended

Mar. 31, 2013

Guarantees [Abstract]

Commitments and Contingencies, Policy [Policy Text Block]

The Company, through the Bank, does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Bank generally holds collateral and/or personal guarantees supporting these commitments. The Company had $5.3 million of standby letters of credit outstanding as of March 31, 2013. The approximate value of underlying collateral upon liquidation that would be expected to cover this maximum potential exposure was $4.7 million. Management does not consider the current amount of the liability as of March 31, 2013 for guarantees under standby letters of credit issued to be material.

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Loans Receivable and Credit Quality (Allowance for Loan Losses and the Recorded Investment in Loans Receivable) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	$ 5,147	$ 4,215
Charge-offs	(457)	(3)
Recoveries	41	4
Provisions	280	130
Balance, ending	5,011	4,346
Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	2,007	1,264
Charge-offs	(260)	(3)
Recoveries	13
Provisions	(284)	382
Balance, ending	1,476	1,643
Commercial construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	660	352
Charge-offs	(197)
Provisions	27	39
Balance, ending	490	391
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	394	423
Provisions	328	(60)
Balance, ending	722	363
Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	1,677	1,691
Recoveries	28	4
Provisions	54	53
Balance, ending	1,759	1,748
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	33	40
Provisions	5	(1)
Balance, ending	38	39
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	376	445
Provisions	150	(283)
Balance, ending	$ 526	$ 162

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Securities Available For Sale (Securities Available-For-Sale by Contractual Maturity) (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Schedule of Investments [Line Items]
Amortized Cost, Due in one year or less	$ 16,315,000
Amortized Cost, Due after one year through five years	23,368,000
Amortized Cost, Due after five years through ten years	21,318,000
Amortized Cost, Due after ten years	14,827,000
Amortized Cost, Debt maturities	75,828,000
Amortized Cost	83,298,000	88,400,000
Fair Value, Due in one year or less	16,377,000
Fair Value, Due after one year through five years	23,654,000
Fair Value, Due after five years through ten years	22,521,000
Fair Value, Due after ten years	16,190,000
Fair Value, Debt maturities	78,742,000
Fair Value	86,687,000	91,857,000
Available-for-sale Securities Pledged as Collateral	39,400,000	45,800,000
U.S. GSE - Mortgage-backed securities - residential [Member]
Schedule of Investments [Line Items]
Amortized Cost, Without single maturity date	7,470,000
Amortized Cost	7,470,000	8,487,000
Fair Value, Without single maturity date	7,945,000
Fair Value	$ 7,945,000	$ 9,017,000

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Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]
Balance	$ 2,282	$ 2,388
Unrealized holding (losses) gains on available for sale: Net of Tax	(45)	62
Other comprehensive income (loss)	(45)	62
Balance	$ 2,237	$ 2,450

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Loans Receivable and Credit Quality (Troubled Debt Restructuring Outstanding) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	$ 8,371
Accrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	7,961
Non-Accrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	410
Commercial real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	5,472
Commercial real estate [Member] | Accrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	5,062
Commercial real estate [Member] | Non-Accrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	410
Commercial construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	1,901
Commercial construction [Member] | Accrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	1,901
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	186
Commercial [Member] | Accrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	186
Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	812
Residential real estate [Member] | Accrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Modifications	$ 812

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Loans Receivable and Credit Quality (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded	$ 10,100
Recorded Investment, With an allowance recorded	2,000
Total Recorded Investment Impaired	12,143	12,655
Total Unpaid Principal Balance Impaired	12,638	12,704
Related Allowance Impaired	328	750
Total Average Recorded Investment Impaired	12,395	13,270
Total Interest Income Recognized Impaired	147	631
Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded	6,087	5,985
Recorded Investment, With an allowance recorded	1,226	1,635
Total Recorded Investment Impaired	7,313	7,620
Unpaid Principal Balance, With no related allowance recorded	6,115	5,985
Unpaid Principal Balance, With an allowance recorded	1,446	1,635
Total Unpaid Principal Balance Impaired	7,561	7,620
Related Allowance Impaired	158	411
Average Recorded Investment, With no related allowance recorded	6,036	6,031
Average Recorded Investment, With an allowance recorded	1,431	1,899
Total Average Recorded Investment Impaired	7,467	7,930
Interest Income Recognized, With no related allowance recorded	68	301
Interest Income Recognized, With an allowance recorded	36	161
Total Interest Income Recognized Impaired	104	462
Commercial construction [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded	3,417	2,117
Recorded Investment, With an allowance recorded		1,498
Total Recorded Investment Impaired	3,417	3,615
Unpaid Principal Balance, With no related allowance recorded	3,615	2,117
Unpaid Principal Balance, With an allowance recorded		1,498
Total Unpaid Principal Balance Impaired	3,615	3,615
Related Allowance Impaired		198
Average Recorded Investment, With no related allowance recorded	2,767	3,218
Average Recorded Investment, With an allowance recorded	749	749
Total Average Recorded Investment Impaired	3,516	3,967
Interest Income Recognized, With no related allowance recorded	30	77
Interest Income Recognized, With an allowance recorded		44
Total Interest Income Recognized Impaired	30	121
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded	289	291
Recorded Investment, With an allowance recorded	11	11
Total Recorded Investment Impaired	300	302
Unpaid Principal Balance, With no related allowance recorded	289	291
Unpaid Principal Balance, With an allowance recorded	60	60
Total Unpaid Principal Balance Impaired	349	351
Related Allowance Impaired	11	11
Average Recorded Investment, With no related allowance recorded	290	302
Average Recorded Investment, With an allowance recorded	6	5
Total Average Recorded Investment Impaired	296	307
Interest Income Recognized, With no related allowance recorded	2	7
Total Interest Income Recognized Impaired	2	7
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded	456	458
Recorded Investment, With an allowance recorded	657	660
Total Recorded Investment Impaired	1,113	1,118
Unpaid Principal Balance, With no related allowance recorded	456	458
Unpaid Principal Balance, With an allowance recorded	657	660
Total Unpaid Principal Balance Impaired	1,113	1,118
Related Allowance Impaired	159	130
Average Recorded Investment, With no related allowance recorded	457	377
Average Recorded Investment, With an allowance recorded	659	689
Total Average Recorded Investment Impaired	1,116	1,066
Interest Income Recognized, With no related allowance recorded	6	23
Interest Income Recognized, With an allowance recorded	5	18
Total Interest Income Recognized Impaired	$ 11	$ 41

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Basis of Presentation

3 Months Ended

Mar. 31, 2013

Basis of Presentation [Abstract]

Basis of Presentation

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 months endedMarch 31, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.

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, 2012, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 28, 2013.  

In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after March 31, 2013 through the date these consolidated financial statements were issued.

Certain amounts in the 2012 financial statements may have been reclassified to conform to 2013 presentation. These reclassifications had no effect on 2012 net income.

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Securities Available For Sale (Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013 security	Dec. 31, 2012
Schedule of Investments [Line Items]
Fair Value, Less Than 12 Months	$ 8,731	$ 10,220
Unrealized Losses, Less Than 12 Months	(26)	(35)
Fair Value, 12 Months or More	463
Unrealized Losses, 12 Months or More	(2)
Fair Value	9,194	10,220
Unrealized Losses	(28)	(35)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	9
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Severity	The Company had nine (9) securities in an unrealized loss position at March 31, 2013. The unrealized losses are due only to market rate fluctuations. As of March 31, 2013, the Company either has the intent and ability to hold the securities until maturity or market price recovery, or believes that it is more likely than not that it will not be required to sell such securities. Management believes that the unrealized loss only represents temporary impairment of the securities. None of the individual losses are significant
U.S Government agency obligations [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than 12 Months	8,137	9,163
Unrealized Losses, Less Than 12 Months	(17)	(18)
Fair Value	8,137	9,163
Unrealized Losses	(17)	(18)
Municipal Bonds [Member]
Schedule of Investments [Line Items]
Fair Value, Less Than 12 Months	594	1,057
Unrealized Losses, Less Than 12 Months	(9)	(17)
Fair Value, 12 Months or More	463
Unrealized Losses, 12 Months or More	(2)
Fair Value	1,057	1,057
Unrealized Losses	$ (11)	$ (17)

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Securities Available For Sale (Tables)

3 Months Ended

Mar. 31, 2013

Securities Avaliable For Sale [Abstract]

Amortized Cost and Fair Values of Securities Available-For-Sale [Table Text Block]

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
March 31, 2013 :
U.S. Government agency obligations	$	36,323	$	201	$	(17)	$	36,507
Municipal bonds		36,254		2,708		(11)		38,951
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		7,470		475		-		7,945
Corporate Bonds		3,251		33		-		3,284
Total	$	83,298	$	3,417	$	(28)	$	86,687
December 31, 2012 :
U.S. Government agency obligations	$	40,386	$	237	$	(18)	$	40,605
Municipal bonds		36,273		2,696		(17)		38,952
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		8,487		530		-		9,017
Corporate Bonds		3,254		29		-		3,283
Total	$	88,400	$	3,492	$	(35)	$	91,857

Securities Available-For-Sale by Contractual Maturity [Table Text Block]

		Amortized		Fair
		Cost		Value
	(In Thousands)
Due in one year or less	$	16,315	$	16,377
Due after one year through five years		23,368		23,654
Due after five years through ten years		21,318		22,521
Due after ten years		14,827		16,190
		75,828		78,742
U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential		7,470		7,945
	$	83,298	$	86,687

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

		Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2013 :	(In Thousands)
U.S. Government agency obligations	$	8,137	$	(17)	$	-	$	-	$	8,137	$	(17)
Municipal bonds		594		(9)		463		(2)		1,057		(11)
Total Temporarily Impaired Securities	$	8,731	$	(26)	$	463	$	(2)	$	9,194	$	(28)
December 31, 2012 :
U.S. Government agency obligations	$	9,163	$	(18)	$	-	$	-	$	9,163	$	(18)
Municipal bonds		1,057		(17)		-		-		1,057		(17)
Total Temporarily Impaired Securities	$	10,220	$	(35)	$	-	$	-	$	10,220	$	(35)

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Basic and Diluted Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2013

Basic and Diluted Earnings per Share [Abstract]

Earnings Per Share [Table Text Block]

	Three Months Ended March 31,
	2013		2012
	(Dollars In Thousands, except per share data)
Net income	$	1,178	$	1,170
Weighted average shares outstanding		7,242		7,176
Dilutive effect of potential common shares, stock options		5		28
Diluted weighted average common shares outstanding		7,247		7,204
Basic earnings per share	$	0.16	$	0.16
Diluted earnings per share	$	0.16	$	0.16

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Fair Value of Financial Instruments (Quantitative Information about Level 3 Fair Value Measurements) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Dec. 31, 2012
Impaired Loan [Member] | Appraisal Adjustments [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	0.00%
Impaired Loan [Member] | Appraisal Adjustments [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	(25.00%)
Impaired Loan [Member] | Appraisal Adjustments [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	(9.80%)
Impaired Loan [Member] | FV determined through independent appraisals of the underlying collateral [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 1,052	[1]	$ 2,006	[1],[2]
Valuation Techniques	Appraisal of collateral (1)
Impaired Loan [Member] | FV determined through independent appraisals of the underlying collateral [Member] | Appraisal Adjustments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	Appraisal adjustments (2)
Impaired Loan [Member] | FV determined through independent appraisals of the underlying collateral [Member] | Liquidation Expenses [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	Liquidation expenses (3)
Impaired Loan [Member] | FV determined through independent appraisals of the underlying collateral [Member] | Liquidation Expenses [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	0.00%
Impaired Loan [Member] | FV determined through independent appraisals of the underlying collateral [Member] | Liquidation Expenses [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	(10.00%)
Impaired Loan [Member] | FV determined through independent appraisals of the underlying collateral [Member] | Liquidation Expenses [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	(9.00%)
Impaired Loan [Member] | FV determined using the debt service of the borrower [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	514	[2],[3]	1,048	[3]
Valuation Techniques	Discounted Cash Flows (5)
Other real estate owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	2,713
Valuation Techniques	Listings, Letters of Intent & Third Party Evaluations (4)
Unobservable Input	Liquidation expenses (3)
Fair Value Inputs, Discount Rate	5.00%
Other real estate owned [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	(5.00%)
Other real estate owned [Member] | FV determined through independent appraisals of the underlying collateral [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 2,713	[1]	$ 3,038	[1]

[1] (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Fair values may also include qualitative adjustments by management based on economic conditions and liquidation expenses.

[2] (2) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Fair values may also include qualitative adjustments by management and estimated liquidation expenses.

[3] (2) Fair Value determined using the debt service of the borrower.

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Restricted Investment In Bank Stock (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Restricted Investment in Bank Stock [Abstract]
Redemption of restricted investment in bank stock	$ 0	$ 80
Restricted Stock Dividend	$ 1	$ 0

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Loans Receivable and Credit Quality (Tables)

3 Months Ended

Mar. 31, 2013

Loans Receivable and Credit Quality [Abstract]

Composition of Loans Receivable [Table Text Block]

	March 31, 2013			December 31, 2012
			Percentage of			Percentage of
	Balance		total Loans	Balance		total Loans
		(Dollars in Thousands)
Commercial real estate	$	209,094	40.14%	$	204,904	40.53%
Commercial construction		20,890	4.01%		19,717	3.90%
Commercial		29,993	5.76%		28,696	5.68%
Residential real estate		259,523	49.81%		250,854	49.62%
Consumer		1,490	0.28%		1,382	0.27%
Total loans		520,990	100.00%		505,553	100.00%
Unearned origination fees		(359)			(334)
Allowance for loan losses		(5,011)			(5,147)
	$	515,620		$	500,072

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating [Table Text Block]

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2013		(In Thousands)
Commercial real estate	$	202,371	$	652	$	5,997	$	74	$	209,094
Commercial construction		17,473		341		3,076		-		20,890
Commercial		29,356		523		114		-		29,993
Residential real estate		258,410		155		657		301		259,523
Consumer		1,490		-		-		-		1,490
Total	$	509,100	$	1,671	$	9,844	$	375	$	520,990
December 31, 2012
Commercial real estate	$	197,879	$	748	$	6,277	$	-	$	204,904
Commercial construction		16,102		341		3,274		-		19,717
Commercial		28,066		530		100		-		28,696
Residential real estate		249,737		156		660		301		250,854
Consumer		1,382		-		-		-		1,382
Total	$	493,166	$	1,775	$	10,311	$	301	$	505,553

Impaired Loans and Related Interest Income by Loan Portfolio Class [Table Text Block]

The following table summarizes information in regards to impaired loans by loan portfolio class as of, March 31, 2013 and December 31, 2012, respectively:

							Year to Date
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2013		(In Thousands)
With no related allowance recorded:
Commercial real estate	$	6,087	$	6,115			$	6,036	$	68
Commercial construction		3,417		3,615				2,767		30
Commercial		289		289				290		2
Residential real estate		456		456				457		6
Consumer		-		-				-		-
With an allowance recorded:
Commercial real estate	$	1,226	$	1,446	$	158	$	1,431	$	36
Commercial construction		-		-		-		749		-
Commercial		11		60		11		6		-
Residential real estate		657		657		159		659		5
Consumer		-		-		-		-		-
Total:
Commercial real estate	$	7,313	$	7,561	$	158	$	7,467	$	104
Commercial construction		3,417		3,615		-		3,516		30
Commercial		300		349		11		296		2
Residential real estate		1,113		1,113		159		1,116		11
Consumer		-		-		-		-		-
	$	12,143	$	12,638	$	328	$	12,395	$	147

Nonaccrual Loans by Classes of the Loan Portfolio [Table Text Block]

	March 31, 2013		December 31, 2012
	(In Thousands)
Commercial real estate	$	1,839	$	2,104
Commercial construction		-		-
Commercial		49		39
Residential real estate		301		301
Consumer		-		-
Total	$	2,189	$	2,444

Loan Portfolio Summarized by the Past Due Status [Table Text Block]

March 31, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total         Past Due		Current		Total Loan Receivables		Loan Receivables > 90 Days and Accruing
		(In Thousands)
Commercial real estate	$	124	$	77	$	1,779	$	1,980	$	207,114	$	209,094	$	350
Commercial construction		-		1,801		-		1,801		19,089		20,890		-
Commercial		313		38		11		362		29,631		29,993		-
Residential real estate		476		-		406		882		258,641		259,523		-
Consumer		16		-		-		16		1,474		1,490		105
Total	$	929	$	1,916	$	2,196	$	5,041	$	515,949	$	520,990	$	455
December 31, 2012
Commercial real estate	$	831	$	-	$	1,809	$	2,640	$	202,264	$	204,904	$	351
Commercial construction		2,559		-		-		2,559		17,158		19,717		-
Commercial		-		39		10		49		28,647		28,696		10
Residential real estate		301		-		301		602		250,252		250,854		-
Consumer		13		-		-		13		1,369		1,382		-
Total	$	3,704	$	39	$	2,120	$	5,863	$	499,690	$	505,553	$	361

Allowance for Loan Losses and Recorded Investment in Financing Receivables [Table Text Block]

The following tablesdetail the activity in the allowance for loan losses for the three months endedMarch 31, 2013 and 2012:

	Commercial Real Estate		Commercial Construction		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for credit losses		(In Thousands)
Three Months Ending March 31, 2013
Beginning Balance - December 31, 2012	$	2,007	$	660	$	394	$	1,677	$	33	$	376	$	5,147
Charge-offs		(260)		(197)		-		-		-		-		(457)
Recoveries		13		-		-		28		-		-		41
Provisions		(284)		27		328		54		5		150		280
Ending Balance - March 31, 2013	$	1,476	$	490	$	722	$	1,759	$	38	$	526	$	5,011
Three Months Ending March 31, 2012
Beginning Balance - December 31, 2011	$	1,264	$	352	$	423	$	1,691	$	40	$	445	$	4,215
Charge-offs		(3)		-		-		-		-		-		(3)
Recoveries		-		-		-		4		-		-		4
Provisions		382		39		(60)		53		(1)		(283)		130
Ending Balance - March 31, 2012	$	1,643	$	391	$	363	$	1,748	$	39	$	162	$	4,346

Note 11 – Loans Receivable and Credit Quality (Continued)

The following tables represent the allocation of the allocation for loan losses and the related loan portfolio disaggregated based on impairment methodology at March 31, 2013 and December 31, 2012.

	Commercial Real Estate		Commercial Construction		Commercial		Residential Real Estate		Consumer		Unallocated		Total
	(In Thousands)
March 31, 2013
Allowance for Loan Losses
Ending Balance	$	1,476	$	490	$	722	$	1,759	$	38	$	526	$	5,011
Ending balance: individually evaluated for impairment	$	158	$	-	$	11	$	159	$	-	$	-	$	328
Ending balance: collectively evaluated for impairment	$	1,318	$	490	$	711	$	1,600	$	38	$	526	$	4,683
Loans receivables:
Ending balance	$	209,094	$	20,890	$	29,993	$	259,523	$	1,490			$	520,990
Ending balance: individually evaluated  for impairment	$	7,313	$	3,417	$	300	$	1,113	$	-			$	12,143
Ending balance: collectively evaluated for impairment	$	201,781	$	17,473	$	29,693	$	258,410	$	1,490			$	508,847
December 31, 2012
Allowance for Loan Losses
Ending Balance	$	2,007	$	660	$	394	$	1,677	$	33	$	376	$	5,147
Ending balance: individually evaluated for impairment	$	411	$	198	$	11	$	130	$	-	$	-	$	750
Ending balance: collectively evaluated for impairment	$	1,596	$	462	$	383	$	1,547	$	33	$	376	$	4,397
Loans receivables:
Ending balance	$	204,904	$	19,717	$	28,696	$	250,854	$	1,382			$	505,553
Ending balance: individually evaluated  for impairment	$	7,620	$	3,615	$	302	$	1,118	$	-			$	12,655
Ending balance: collectively evaluated for impairment	$	197,284	$	16,102	$	28,394	$	249,736	$	1,382			$	492,898

Troubled Debt Restructuring Outstanding [Table Text Block]

	March 31, 2013
	Accrual Loans		Non-Accrual Loans		Total Modifications
	(In Thousands)
Commercial real estate	$	5,062	$	410	$	5,472
Commercial construction		1,901		-		1,901
Commercial		186		-		186
Residential real estate		812		-		812
Consumer		-		-		-
	$	7,961	$	410	$	8,371

Troubled Debt Restructurings On Financing Receivables, Current Period [Table Text Block]

	Number of Loans	Pre-Modification Outstanding Balance		Post- Modification Outstanding Balance
Three Months Ending March 31, 2012	(Dollars In Thousands)
Commercial real estate	1	$	607	$	607
Residential real estate	1		670		670
	2	$	1,277	$	1,277

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value of Financial Instruments [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Description	(Level 1)       Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total
		(In Thousands)
U.S. Government agency obligations	$	-	$	36,507	$	-	$	36,507
Municipal Bonds		-		38,951		-		38,951
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		-		7,945		-		7,945
Corporate bonds		-		3,284		-		3,284
March 31, 2013 Securities available for sale	$	-	$	86,687	$	-	$	86,687
U.S. Government agency obligations	$	-	$	40,605	$	-	$	40,605
Municipal Bonds		-		38,952		-		38,952
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		-		9,017		-		9,017
Corporate bonds		-		3,283		-		3,283
December 31, 2012 Securities available for sale	$	-	$	91,857	$	-	$	91,857

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]

Description	(Level 1)       Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total
		(In Thousands)
March 31, 2013 Impaired loans (1)	$	-	$	-	$	1,052	$	1,052
March 31, 2013 Impaired loans (2)	$	-	$	-	$	514	$	514
March 31, 2013 Other real estate owned (1)	$	-	$	-	$	2,713	$	2,713
December 31, 2012 Impaired loans (1)	$	-	$	-	$	2,006	$	2,006
December 31, 2012 Impaired loans (2)	$	-	$	-	$	1,048	$	1,048
December 31, 2012 Other real estate owned (1)	$	-	$	-	$	3,038	$	3,038
(1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various
Level 3 input which are not identifiable.  Fair values may also include qualitative adjustments by management based on economic
conditions and liquidation expenses.
(2)  Fair Value determined using the debt service of the borrower.

Quantitative Information about Level 3 Fair Value Measurements [Table Text Block]

		Quantitative Information about Level 3 Fair Value Measurements
Description		Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
			(Dollars In Thousands)
March 31, 2013 Impaired loans		$	1,052	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to -25% (-9.8%)
					Liquidation expenses (3)	0 to -10% (-9.0%)
March 31, 2013 Impaired loans		$	514	Discounted Cash Flows (5)
March 31, 2013 Other real estate owned		$	2,713	Listings, Letters of Intent & Third Party Evaluations (4)	Liquidation expenses (3)	-5% (-5%)
(1)	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various
	Level 3 inputs which are not identifiable.
(2)	Appraisals may be adjusted by management for qualitative factors including economic conditions and the age of the appraisal.
	The range and weighted average of appraisal adjustments are presented as a percent of the appraisal.
(3)	Appraisals and pending agreements of sale are adjusted by management for liquidation expenses.  The range and weighted average of
	liquidation expense adjustments are presented as a percent of the appraisal or pending agreement of sale.
(4)	Fair value is determined by listings, letters of intent or third-party evaluations.
(5)	Fair value is determined using the debt service of the borrower.

Fair Value, by Balance Sheet Grouping [Table Text Block]

			Carrying Amount		Fair Value Estimate		(Level 1) Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs
		(In Thousands)
March 31, 2013:
	Financial assets:
	Cash and cash equivalents	$	14,205	$	14,205	$	14,205	$	-	$	-
	Interest bearing time deposits		4,134		4,156		-		4,156		-
	Securities available-for-sale		86,687		86,687		-		86,687		-
	Loans receivable, net of allowance		515,620		522,502		-		-		522,502
	Restricted investments in bank stock		1,454		1,454		-		1,454		-
	Accrued interest receivable		1,637		1,637		-		1,637		-
	Financial liabilities:
	Deposits		542,039		542,745		-		542,745		-
	Securities sold under agreements to
	repurchase and federal funds purchased		27,515		27,515		-		27,515		-
	Long-term borrowings		12,386		12,445		-		-		12,445
	Accrued interest payable		306		306		-		306		-
	Off-balance sheet financial instruments:
	Commitments to grant loans		-		-		-		-		-
	Unfunded commitments under lines of credit		-		-		-		-		-
	Standby letters of credit		-		-		-		-		-
December 31, 2012:
	Financial assets:
	Cash and cash equivalents	$	29,940	$	29,940	$	29,940	$	-	$	-
	Interest bearing time deposits		5,945		5,977		-		5,977		-
	Securities available-for-sale		91,857		91,857		-		91,857		-
	Loans receivable, net of allowance		500,072		508,053		-		-		508,053
	Restricted investments in bank stock		1,454		1,454		-		1,454		-
	Accrued interest receivable		1,578		1,578		-		1,578		-
	Financial liabilities:
	Deposits		553,020		553,756		-		553,756		-
	Securities sold under agreements to
	repurchase and federal funds purchased		24,452		24,452		-		24,452		-
	Long-term borrowings		12,586		12,708		-		-		12,708
	Accrued interest payable		327		327		-		327		-
	Off-balance sheet financial instruments:
	Commitments to grant loans		-		-		-		-		-
	Unfunded commitments under lines of credit		-		-		-		-		-
	Standby letters of credit		-		-		-		-		-

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,178	$ 1,170
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	280	130
Accretion of deferred loan costs	(15)	(7)
Depreciation and amortization	156	164
Net amortization of investment security premiums and discounts	95	95
Stock compensation expense	13	5
(Gain) loss on sale of other real estate owned	(4)	8
Impairment on other real estate owned	6	100
Income on bank owned life insurance	(49)	(23)
Increase in accrued interest receivable	(59)	(187)
Increase in other assets	(527)	(562)
Decrease in accrued interest payable	(21)	(134)
(Decrease) increase in other liabilities	(397)	1,173
Net Cash Provided by Operating Activities	656	1,932
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities available for sale		(8,570)
Maturities, calls and principal repayments of securities available for sale	5,007	1,198
Net increase in loans	(15,374)	(12,898)
Redemption of restricted investment in bank stock	0	80
Net maturities (purchases) of interest bearing time deposits	1,811	(9)
Proceeds from sale of other real estate owned	319	311
Purchases of premises and equipment	(36)	(321)
Net Cash Used in Investing Activities	(8,273)	(20,209)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in deposits	(10,981)	44,119
Net increase (decrease) in securities sold under agreements to repurchase and federal funds purchased	3,063	(4,967)
Payment of long-term borrowed funds	(200)	(100)
Exercise of stock options, net payment for stock tendered		3
Net Cash Provided by Financing Activities	(8,118)	39,055
Net (Decrease) Increase in Cash and Cash Equivalents	(15,735)	20,778
CASH AND CASH EQUIVALENTS - BEGINNING	29,940	46,135
CASH AND CASH EQUIVALENTS - ENDING	14,205	66,913
SUPPLEMENTARY CASH FLOWS INFORMATION
Interest paid	814	1,341
Income taxes paid	950	750
Other real estate sold through bank financing	439
Deferral of gain from sale of other real estate sold through bank financing	$ 116

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Offsetting Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2013

Offsetting Assets and Liabilities [Abstract]

Schedule of Repurchase Agreements [Table Text Block]

							Net Amounts
			Gross		Gross Amounts		of Liabilities
			Amounts of		Offset in the		Presented in the
			Recognized		Consolidated		Consolidated		Financial		Cash Collateral
			Liabilities		Balance Sheet		Balance Sheet		Instruments		Pledged		Net Amount
			(In Thousands)
March 31, 2013
Repurchase Agreements:
Private Institutions	(a)	$	27,515	$	-	$	27,515	$	(27,515)	$	-	$	-
December 31, 2012
Repurchase Agreements:
Private Institutions	(a)	$	24,452	$	-	$	24,452	$	(24,452)	$	-	$	-

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Short-term and Long-term Borrowings (Narrative) (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Federal Home Loan Bank Advances [Member]
Line of Credit Facility [Line Items]
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available	$ 248,900,000
Line of Credit Facility, Amount Outstanding	7,900,000	7,900,000
Line of Credit Facility, Maximum Borrowing Capacity		25,000,000
Federal Home Loan Bank, Advances, Short-term	0	0
Atlantic Central Bankers Bank Borrowings [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding	0	0
Line of Credit Facility, Maximum Borrowing Capacity	6,000,000	6,000,000
Univest Bank and Trust Co. Borrowings [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding	4,500,000	4,700,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
Credit Security	833,333

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Loans Receivable and Credit Quality (Troubled Debt Restructuring Current Period) (Details) (USD $)	3 Months Ended		3 Months Ended		3 Months Ended
	Mar. 31, 2012 loan	Mar. 31, 2013	Mar. 31, 2013 Newly Restructured [Member]	Mar. 31, 2012 Newly Restructured [Member] loan	Mar. 31, 2012 Commercial real estate [Member] loan	Mar. 31, 2012 Residential real estate [Member] loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Loans	2				1	1
Pre-Modification Outstanding Balance	$ 1,277,000				$ 607,000	$ 670,000
Post-Modification Outstanding Balance	1,277,000				607,000	670,000
Loans with Impairment Reserve				2
Troubled debt Restructuring related allowance			0
Available Commitments Outstanding on TDRs		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment		$ 0

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 11,477	$ 16,116
Interest bearing demand deposits with banks	1,728	12,824
Federal funds sold	1,000	1,000
Cash and Cash Equivalents	14,205	29,940
Interest bearing time deposits	4,134	5,945
Securities available for sale	86,687	91,857
Restricted investment in bank stock	1,454	1,454
Loans receivable, net of allowance for loan losses of $5,011 in 2013; $5,147in 2012	515,620	500,072
Premises and equipment, net of accumulated depreciation	1,975	2,095
Bank owned life insurance	5,025	4,976
Accrued interest receivable	1,637	1,578
Other real estate owned	2,713	3,038
Other assets	2,581	2,054
Total Assets	636,031	643,009
Liabilities:
Deposits: Non-interest bearing	48,019	51,741
Deposits: Interest bearing	494,020	501,279
Total deposits	542,039	553,020
Securities sold under agreements to repurchase	27,515	24,452
Long-term borrowings	12,386	12,586
Accrued interest payable	306	327
Other liabilities	2,550	2,597
Total Liabilities	584,796	592,982
Stockholders' Equity:
Common stock, $1 par value; authorized 20,000,000 shares; 2013 issued 7,247,587 shares; outstanding 7,247,587 shares; 2012 issued 7,258,823 shares; outstanding 7,238,823 shares	7,248	7,239
Surplus	23,212	23,146
Retained earnings	18,538	17,360
Accumulated other comprehensive income	2,237	2,282
Total Stockholders' Equity	51,235	50,027
Total Liabilities and Stockholders' Equity	$ 636,031	$ 643,009

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Loans Receivable and Credit Quality (Composition of Loans Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 520,990	$ 505,553
Percentage of Total Loans	100.00%	100.00%
Unearned net loan origination costs	(359)	(334)
Allowance for loan losses	(5,011)	(5,147)
Net Loans Receivable	515,620	500,072
Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	209,094	204,904
Percentage of Total Loans	40.14%	40.53%
Commercial construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	20,890	19,717
Percentage of Total Loans	4.01%	3.90%
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	29,993	28,696
Percentage of Total Loans	5.76%	5.68%
Residential real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	259,523	250,854
Percentage of Total Loans	49.81%	49.62%
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 1,490	$ 1,382
Percentage of Total Loans	0.28%	0.27%

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Consolidated Statements of Stockholders' Equity (USD $) In Thousands	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]	Total
BALANCE- at Dec. 31, 2011	$ 7,171	$ 22,872	$ 11,905	$ 2,388	$ (3)	$ 44,333
Net income			1,170			1,170
Other comprehensive income (loss)				62		62
Exercise of stock options	1	2				3
Compensation expense recognized on stock options		5				5
Common stock grants to directors	8	48				56
BALANCE- at Mar. 31, 2012	7,180	22,927	13,075	2,450	(3)	45,629
BALANCE- at Dec. 31, 2012	7,239	23,146	17,360	2,282		50,027
Net income			1,178			1,178
Other comprehensive income (loss)				(45)		(45)
Compensation expense recognized on stock options		13				13
Common stock grants to directors	9	53				62
BALANCE- at Mar. 31, 2013	$ 7,248	$ 23,212	$ 18,538	$ 2,237		$ 51,235

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Other Comprehensive Income (Schedule of Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]
Unrealized holding (losses) gains on available for sale: Before Tax	$ (68)	$ 94
Unrealized holding (losses) gains on available for sale: Tax Effect	(23)	32
Unrealized holding (losses) gains on available for sale: Net of Tax	(45)	62
Total other comprehensive (loss) income: Before Tax	(68)	94
Total other comprehensive (loss) income: Tax Effect	(23)	32
Other comprehensive income (loss)	$ (45)	$ 62

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New Accounting Standards

3 Months Ended

Mar. 31, 2013

New Accounting Standards [Abstract]

New Accounting Standards

Note 14 – New Accounting Standards

Accounting Standards Update (ASU) No. 2011-11, “Balance Sheet (Topic 210)—Disclosures about Offsetting Assets and Liabilities,” and ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 amends Topic 210, “Balance Sheet”, to require an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject to master netting arrangement or similar agreement. ASU 2011-11 is effective for annual and interim periods beginning on January 1, 2013, and did not have a material impact on the Company’s financial statements. See Note 13 – Offsetting Assets and Liabilities.

Accounting Standards Update (ASU) No. 2013-02, “Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.”  ASU 2013-02 amends recent guidance related to the reporting of comprehensive income to enhance the reporting of reclassifications out of accumulated other comprehensive income.  ASU 2013-02 became effective for the Company on January 1, 2013 and did not have a material impact on the Company’s financial statements.  See Note 5 - Other Comprehensive Income.

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Other Comprehensive Income (Schedule Of Reclassifications From Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]
Income Tax Expense (Benefit)	$ 437	$ 427
Net Income	$ 1,178	$ 1,170

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Stock Incentive Plan (Policy)

3 Months Ended

Mar. 31, 2013

Stock Incentive Plans [Abstract]

Stock Incentive Plan

At the Company’s annual meeting on June 16, 2010, the shareholders approved the Embassy Bancorp, Inc. 2010 Stock Incentive Plan (the “SIP”).  The SIP authorizes the Board of Directors, or a committee authorized by the Board of Directors, to award a stock based incentive to (i) designated officers (including officers who are directors) and other designated employees at the Company and its subsidiaries, and (ii) non-employee members of the Board of Directors and advisors and consultants to the Company and its subsidiaries.  The Board of Directors believes that the SIP will encourage the designated participants to contribute materially to the growth of the Company. The SIP provides for stock based incentives in the form of incentive stock options as provided in Section 422 of the Internal Revenue Code of 1986, non-qualified stock options, stock appreciation rights, restricted stock and deferred stock awards.  The term of the option, the amount of time for the option to vest after grant, if any, and other terms and limitations will be

Note 4 – Stock Incentive Plan (Continued)

determined at the time of grant. Options granted under the SIP may not have an exercise period that is more than ten years from the time the option is granted. 

At inception, the aggregate number of shares available for issuance under the SIP was500,000.  The SIP provides for appropriate adjustments in the number and kind of shares available for grant or subject to outstanding awards under the SIP to avoid dilution in the event of merger, stock splits, stock dividends or other changes in the capitalization of the Company.  The SIP expires on June 15, 2020.  There were no awards granted under the SIP for the years ended December 31, 2011 and 2010.  In February 2013 and 2012, the Company granted 8,764 and 7,992 shares of restricted stock, respectively, to certain members of its Board of Directors as compensation for their service in 2012 and 2011, respectively, in accordance with the Company’s Non-employee Directors Compensation program adopted in October of 2010.  Such compensation was accrued for as of December 31, 2012 and 2011.   In February 2013 and 2012,the Company also granted stock options to purchase 29,742 and 52,611 shares of stock, respectively to certain executive officers in accordance with their respective employment agreements.  Stock compensation expense related to these options was $13 thousand and $5 thousand for thethree months endedMarch 31, 2013 and 2012, respectively.  At March 31, 2013, approximately $140 thousand unrecognized cost related to stock options granted in 2013 and 2012will be recognized over the next 2.8 and1.9 years, respectively.  The fair value of the options granted in 2013 and 2012 was determined with the following weighted average assumptions: dividend yield of 0%, risk free interest rate of 1.34% and 1.43%, respectively, expected life of 6.0 years and 7.5 years, respectively, and expected volatility of 28.79% and 31.10%, respectively.  The weighted average fair value of options

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Consolidated Statements of Stockholders' Equity (Parenthetical)	3 Months Ended
	Mar. 31, 2012
Consolidated Statements of Stockholders' Equity [Abstract]
Stock Issued During Period, Shares, Stock Options Exercised	702
Common stock grants to directors, shares	7,992

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Consolidated Balance Sheets [Abstract]
Loans and Leases Receivable, Allowance	$ 5,011	$ 5,147
Common Stock, Par or Stated Value Per Share	$ 1	$ 1
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	7,247,587	7,238,823
Common Stock, Shares, Outstanding	7,247,587	7,238,823

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Securities Available For Sale

3 Months Ended

Mar. 31, 2013

Securities Avaliable For Sale [Abstract]

Securities Available For Sale

Note 9 – Securities Available For Sale

At March 31, 2013 and December 31, 2012, 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)
March 31, 2013 :
U.S. Government agency obligations	$	36,323	$	201	$	(17)	$	36,507
Municipal bonds		36,254		2,708		(11)		38,951
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		7,470		475		-		7,945
Corporate Bonds		3,251		33		-		3,284
Total	$	83,298	$	3,417	$	(28)	$	86,687
December 31, 2012 :
U.S. Government agency obligations	$	40,386	$	237	$	(18)	$	40,605
Municipal bonds		36,273		2,696		(17)		38,952
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		8,487		530		-		9,017
Corporate Bonds		3,254		29		-		3,283
Total	$	88,400	$	3,492	$	(35)	$	91,857

The amortized cost and fair value of securities as of March 31, 2013, 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	$	16,315	$	16,377
Due after one year through five years		23,368		23,654
Due after five years through ten years		21,318		22,521
Due after ten years		14,827		16,190
		75,828		78,742
U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential		7,470		7,945
	$	83,298	$	86,687

There were no sales of securities for the three months endedMarch 31, 2013 and 2012.

Securities with a carrying value of $39.4 million and $45.8 million at March 31, 2013 and December 31, 2012, respectively, were subject to agreements to repurchase, pledged to secure public deposits, or pledged for other purposes required or permitted by law.

Note 9 – Securities Available For Sale (Continued)

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 March 31, 2013 and December 31, 2012, respectively:

		Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2013 :	(In Thousands)
U.S. Government agency obligations	$	8,137	$	(17)	$	-	$	-	$	8,137	$	(17)
Municipal bonds		594		(9)		463		(2)		1,057		(11)
Total Temporarily Impaired Securities	$	8,731	$	(26)	$	463	$	(2)	$	9,194	$	(28)
December 31, 2012 :
U.S. Government agency obligations	$	9,163	$	(18)	$	-	$	-	$	9,163	$	(18)
Municipal bonds		1,057		(17)		-		-		1,057		(17)
Total Temporarily Impaired Securities	$	10,220	$	(35)	$	-	$	-	$	10,220	$	(35)

The Company had nine (9) securities in an unrealized loss position at March 31, 2013. The unrealized lossesare due only to market rate fluctuations. As of March 31, 2013, the Company either has the intent and ability to hold the securities until maturity or market price recovery, or believes that it is more likely than not that it will not be required to sell such securities. Management believes that the unrealized loss only represents temporary impairment of the securities.  None of the individual losses are significant.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	May 10, 2013
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Entity Registrant Name	Embassy Bancorp, Inc.
Entity Central Index Key	0001449794
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,247,587
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes

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Restricted Investment In Bank Stock

3 Months Ended

Mar. 31, 2013

Restricted Investment in Bank Stock [Abstract]

Restricted Investment in Bank Stock

Note 10 – Restricted Investment in Bank Stock

Restricted investments in bank stock consist of Federal Home Loan Bank of Pittsburgh (“FHLB”) stock and Atlantic Central Bankers Bank (“ACBB”) stock.  The restricted stocks are carried at cost.  Federal law requires a member institution of the FHLB to hold stock of its district FHLB according to a predetermined formula.

In December 2008, the FHLB of Pittsburgh notified member banks that it was suspending dividend payments and the repurchase of capital stock, and any future capital stock repurchases would be made on a quarterly basis if conditions warrant such repurchases.  During 2012, 2011 and 2010, the FHLB conducted limited excess capital stock repurchases based upon positive quarterly net income.  Any future capital stock repurchases will be made on a quarterly basis if conditions warrant such repurchases.  In connection with this program, the Bank had nostock repurchased during the three months endedMarch 31, 2013and stock repurchased at a carrying value of $80 thousand during the three months endedMarch 31, 2012.  In February 2012, the FHLB announced that dividend payments would resume in 2012 and during the three months endedMarch 31, 2013, $1 thousand of dividend payments were received.  There were no dividends in the three months endedMarch 31, 2012.

Management evaluates the FHLB and ACBB restricted stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the issuer as compared to the capital stock amount for the issuer and the length of time this situation has persisted, (2) commitments by the issuer to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuer, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuer.

Based upon its evaluation of the foregoing criteria, management believes no impairment charge is necessary related to the FHLB or ACBB stock as of March 31, 2013.

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
INTEREST INCOME
Loans receivable, including fees	$ 5,486	$ 5,307
Securities, taxable	222	328
Securities, non-taxable	289	313
Federal funds sold, and other	5	28
Interest on time deposits	14	27
Total Interest Income	6,016	6,003
INTEREST EXPENSE
Deposits	624	1,003
Securities sold under agreements to repurchase and federal funds purchased	5	26
Long-term borrowings	164	178
Total Interest Expense	793	1,207
Net Interest Income	5,223	4,796
Provision for loan losses	280	130
Net Interest Income after Provision for Loan Losses	4,943	4,666
OTHER INCOME
Credit card processing fees	322	286
Other service fees	128	105
Bank owned life insurance	49	23
Profit (loss) on sale of other real estate owned	4	(8)
Impairment on other real estate owned	(6)	(100)
Total Other Income	497	306
OTHER EXPENSES
Salaries and employee benefits	1,732	1,488
Occupancy and equipment	591	602
Data processing	305	267
Credit card processing	285	249
Advertising and promotion	221	188
Professional fees	126	107
FDIC insurance	104	87
Insurance	14	12
Loan & Real Estate	50	49
Charitable contributions	160	142
Other real estate owned expenses	23	26
Other	214	158
Total Other Expenses	3,825	3,375
Income before Income Taxes	1,615	1,597
INCOME TAX EXPENSE	437	427
Net Income	$ 1,178	$ 1,170
BASIC EARNING PER SHARE	$ 0.16	$ 0.16
DILUTED EARNINGS PER SHARE	$ 0.16	$ 0.16

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Stock Incentive Plans

3 Months Ended

Mar. 31, 2013

Stock Incentive Plans [Abstract]

Stock Incentive Plans

Note 4 – Stock Incentive Plan

At the Company’s annual meeting on June 16, 2010, the shareholders approved the Embassy Bancorp, Inc. 2010 Stock Incentive Plan (the “SIP”).  The SIP authorizes the Board of Directors, or a committee authorized by the Board of Directors, to award a stock based incentive to (i) designated officers (including officers who are directors) and other designated employees at the Company and its subsidiaries, and (ii) non-employee members of the Board of Directors and advisors and consultants to the Company and its subsidiaries.  The Board of Directors believes that the SIP will encourage the designated participants to contribute materially to the growth of the Company. The SIP provides for stock based incentives in the form of incentive stock options as provided in Section 422 of the Internal Revenue Code of 1986, non-qualified stock options, stock appreciation rights, restricted stock and deferred stock awards.  The term of the option, the amount of time for the option to vest after grant, if any, and other terms and limitations will be

Note 4 – Stock Incentive Plan (Continued)

determined at the time of grant. Options granted under the SIP may not have an exercise period that is more than ten years from the time the option is granted. 

At inception, the aggregate number of shares available for issuance under the SIP was500,000.  The SIP provides for appropriate adjustments in the number and kind of shares available for grant or subject to outstanding awards under the SIP to avoid dilution in the event of merger, stock splits, stock dividends or other changes in the capitalization of the Company.  The SIP expires on June 15, 2020.  There were no awards granted under the SIP for the years ended December 31, 2011 and 2010.  In February 2013 and 2012, the Company granted 8,764 and 7,992 shares of restricted stock, respectively, to certain members of its Board of Directors as compensation for their service in 2012 and 2011, respectively, in accordance with the Company’s Non-employee Directors Compensation program adopted in October of 2010.  Such compensation was accrued for as of December 31, 2012 and 2011.   In February 2013 and 2012,the Company also granted stock options to purchase 29,742 and 52,611 shares of stock, respectively to certain executive officers in accordance with their respective employment agreements.  Stock compensation expense related to these options was $13 thousand and $5 thousand for thethree months endedMarch 31, 2013 and 2012, respectively.  At March 31, 2013, approximately $140 thousand unrecognized cost related to stock options granted in 2013 and 2012will be recognized over the next 2.8 and1.9 years, respectively.  The fair value of the options granted in 2013 and 2012 was determined with the following weighted average assumptions: dividend yield of 0%, risk free interest rate of 1.34% and 1.43%, respectively, expected life of 6.0 years and 7.5 years, respectively, and expected volatility of 28.79% and 31.10%, respectively.  The weighted average fair value of options granted in 2013 and 2012 was $2.14 per share and $2.56 per share, respectively.  At March 31, 2013, there were 400,891 shares available for issuance under the SIP.

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Stockholders Equity

3 Months Ended

Mar. 31, 2013

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 3 – Stockholders’ Equity

On November 11, 2008, the Company consummated its acquisition of Embassy Bank For The Lehigh Valley pursuant to a Plan of Merger and Reorganization dated April 18, 2008, pursuant to which the Bank was reorganized into a bank holding company structure. At the effective time of the reorganization, each share of common stock of Embassy Bank For The Lehigh Valley issued and outstanding was automatically converted into one share of Company common stock. The issuance of Company common stock in connection with the reorganization was exempt from registration pursuant to Section 3(a)(12) of the Securities Act of 1933, as amended.

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Basis of Presentation (Policy)

3 Months Ended

Mar. 31, 2013

Basis of Presentation [Abstract]

Consolidation, Policy [Policy Text Block]

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 months endedMarch 31, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.

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Loans Receivable and Credit Quality

3 Months Ended

Mar. 31, 2013

Loans Receivable and Credit Quality [Abstract]

Loans Receivable

Note 11 – Loans Receivable and Credit Quality

The following table presents the composition of loans receivable at March 31, 2013 and December 31, 2012, respectively:

	March 31, 2013			December 31, 2012
			Percentage of			Percentage of
	Balance		total Loans	Balance		total Loans
		(Dollars in Thousands)
Commercial real estate	$	209,094	40.14%	$	204,904	40.53%
Commercial construction		20,890	4.01%		19,717	3.90%
Commercial		29,993	5.76%		28,696	5.68%
Residential real estate		259,523	49.81%		250,854	49.62%
Consumer		1,490	0.28%		1,382	0.27%
Total loans		520,990	100.00%		505,553	100.00%
Unearned origination fees		(359)			(334)
Allowance for loan losses		(5,011)			(5,147)
	$	515,620		$	500,072

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weaknesses), substandard (well defined weaknesses) and doubtful (full collection unlikely) within the Company's internal risk rating system as of March 31, 2013 and December 31, 2012, respectively:

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2013		(In Thousands)
Commercial real estate	$	202,371	$	652	$	5,997	$	74	$	209,094
Commercial construction		17,473		341		3,076		-		20,890
Commercial		29,356		523		114		-		29,993
Residential real estate		258,410		155		657		301		259,523
Consumer		1,490		-		-		-		1,490
Total	$	509,100	$	1,671	$	9,844	$	375	$	520,990
December 31, 2012
Commercial real estate	$	197,879	$	748	$	6,277	$	-	$	204,904
Commercial construction		16,102		341		3,274		-		19,717
Commercial		28,066		530		100		-		28,696
Residential real estate		249,737		156		660		301		250,854
Consumer		1,382		-		-		-		1,382
Total	$	493,166	$	1,775	$	10,311	$	301	$	505,553

Note 11 – Loans Receivable and Credit Quality (Continued)

The following table summarizes information in regards to impaired loans by loan portfolio class as of, March 31, 2013 and December 31, 2012, respectively:

							Year to Date
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2013		(In Thousands)
With no related allowance recorded:
Commercial real estate	$	6,087	$	6,115			$	6,036	$	68
Commercial construction		3,417		3,615				2,767		30
Commercial		289		289				290		2
Residential real estate		456		456				457		6
Consumer		-		-				-		-
With an allowance recorded:
Commercial real estate	$	1,226	$	1,446	$	158	$	1,431	$	36
Commercial construction		-		-		-		749		-
Commercial		11		60		11		6		-
Residential real estate		657		657		159		659		5
Consumer		-		-		-		-		-
Total:
Commercial real estate	$	7,313	$	7,561	$	158	$	7,467	$	104
Commercial construction		3,417		3,615		-		3,516		30
Commercial		300		349		11		296		2
Residential real estate		1,113		1,113		159		1,116		11
Consumer		-		-		-		-		-
	$	12,143	$	12,638	$	328	$	12,395	$	147

December 31, 2012
With no related allowance recorded:
Commercial real estate	$	5,985	$	5,985			$	6,031	$	301
Commercial construction		2,117		2,117				3,218		77
Commercial		291		291				302		7
Residential real estate		458		458				377		23
Consumer		-		-				-		-
With an allowance recorded:
Commercial real estate	$	1,635	$	1,635	$	411	$	1,899	$	161
Commercial construction		1,498		1,498		198		749		44
Commercial		11		60		11		5		-
Residential real estate		660		660		130		689		18
Consumer		-		-		-		-		-
Total:
Commercial real estate	$	7,620	$	7,620	$	411	$	7,930	$	462
Commercial construction		3,615		3,615		198		3,967		121
Commercial		302		351		11		307		7
Residential real estate		1,118		1,118		130		1,066		41
Consumer		-		-		-		-		-
	$	12,655	$	12,704	$	750	$	13,270	$	631

Note 11 – Loans Receivable and Credit Quality (Continued)

The following table presents nonaccrual loans by classes of the loan portfolio as of March 31, 2013 and December 31, 2012, respectively:

	March 31, 2013		December 31, 2012
	(In Thousands)
Commercial real estate	$	1,839	$	2,104
Commercial construction		-		-
Commercial		49		39
Residential real estate		301		301
Consumer		-		-
Total	$	2,189	$	2,444

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due.  The following table presents the classes of the loan portfolio summarized by the past due status as of March 31, 2013 and December 31, 2012, respectively:

March 31, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total         Past Due		Current		Total Loan Receivables		Loan Receivables > 90 Days and Accruing
		(In Thousands)
Commercial real estate	$	124	$	77	$	1,779	$	1,980	$	207,114	$	209,094	$	350
Commercial construction		-		1,801		-		1,801		19,089		20,890		-
Commercial		313		38		11		362		29,631		29,993		-
Residential real estate		476		-		406		882		258,641		259,523		-
Consumer		16		-		-		16		1,474		1,490		105
Total	$	929	$	1,916	$	2,196	$	5,041	$	515,949	$	520,990	$	455
December 31, 2012
Commercial real estate	$	831	$	-	$	1,809	$	2,640	$	202,264	$	204,904	$	351
Commercial construction		2,559		-		-		2,559		17,158		19,717		-
Commercial		-		39		10		49		28,647		28,696		10
Residential real estate		301		-		301		602		250,252		250,854		-
Consumer		13		-		-		13		1,369		1,382		-
Total	$	3,704	$	39	$	2,120	$	5,863	$	499,690	$	505,553	$	361

Note 11 – Loans Receivable and Credit Quality (Continued)

The following tablesdetail the activity in the allowance for loan losses for the three months endedMarch 31, 2013 and 2012:

	Commercial Real Estate		Commercial Construction		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for credit losses		(In Thousands)
Three Months Ending March 31, 2013
Beginning Balance - December 31, 2012	$	2,007	$	660	$	394	$	1,677	$	33	$	376	$	5,147
Charge-offs		(260)		(197)		-		-		-		-		(457)
Recoveries		13		-		-		28		-		-		41
Provisions		(284)		27		328		54		5		150		280
Ending Balance - March 31, 2013	$	1,476	$	490	$	722	$	1,759	$	38	$	526	$	5,011
Three Months Ending March 31, 2012
Beginning Balance - December 31, 2011	$	1,264	$	352	$	423	$	1,691	$	40	$	445	$	4,215
Charge-offs		(3)		-		-		-		-		-		(3)
Recoveries		-		-		-		4		-		-		4
Provisions		382		39		(60)		53		(1)		(283)		130
Ending Balance - March 31, 2012	$	1,643	$	391	$	363	$	1,748	$	39	$	162	$	4,346

Note 11 – Loans Receivable and Credit Quality (Continued)

The following tables represent the allocation of the allocation for loan losses and the related loan portfolio disaggregated based on impairment methodology at March 31, 2013 and December 31, 2012.

	Commercial Real Estate		Commercial Construction		Commercial		Residential Real Estate		Consumer		Unallocated		Total
	(In Thousands)
March 31, 2013
Allowance for Loan Losses
Ending Balance	$	1,476	$	490	$	722	$	1,759	$	38	$	526	$	5,011
Ending balance: individually evaluated for impairment	$	158	$	-	$	11	$	159	$	-	$	-	$	328
Ending balance: collectively evaluated for impairment	$	1,318	$	490	$	711	$	1,600	$	38	$	526	$	4,683
Loans receivables:
Ending balance	$	209,094	$	20,890	$	29,993	$	259,523	$	1,490			$	520,990
Ending balance: individually evaluated  for impairment	$	7,313	$	3,417	$	300	$	1,113	$	-			$	12,143
Ending balance: collectively evaluated for impairment	$	201,781	$	17,473	$	29,693	$	258,410	$	1,490			$	508,847
December 31, 2012
Allowance for Loan Losses
Ending Balance	$	2,007	$	660	$	394	$	1,677	$	33	$	376	$	5,147
Ending balance: individually evaluated for impairment	$	411	$	198	$	11	$	130	$	-	$	-	$	750
Ending balance: collectively evaluated for impairment	$	1,596	$	462	$	383	$	1,547	$	33	$	376	$	4,397
Loans receivables:
Ending balance	$	204,904	$	19,717	$	28,696	$	250,854	$	1,382			$	505,553
Ending balance: individually evaluated  for impairment	$	7,620	$	3,615	$	302	$	1,118	$	-			$	12,655
Ending balance: collectively evaluated for impairment	$	197,284	$	16,102	$	28,394	$	249,736	$	1,382			$	492,898

Troubled Debt Restructurings

The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition than it would not otherwise consider, resulting in a modified loan which is then identified as troubled debt restructuring (“TDR”).  The Company may modify loans through rate reductions, extensions to maturity, interest only payments, or payment modifications to better coincide the timing of payments due under the modified terms with the expected timing of cash flows from the borrowers’ operations.  Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral.  TDRs are considered impaired loans for purposes of calculating the Company’s allowance for loan losses.

The Company identifies loans for potential restructure primarily through direct communication with the borrower and the evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports.  Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future.

Note 11 – Loans Receivable and Credit Quality (Continued)

The following table presentsTDRs outstanding  as of March 31, 2013:

	March 31, 2013
	Accrual Loans		Non-Accrual Loans		Total Modifications
	(In Thousands)
Commercial real estate	$	5,062	$	410	$	5,472
Commercial construction		1,901		-		1,901
Commercial		186		-		186
Residential real estate		812		-		812
Consumer		-		-		-
	$	7,961	$	410	$	8,371

As of March 31, 2013,  no available commitments were outstanding on TDRs.

For the three months endedMarch 31, 2013 there were no newly restructured loans.  The following table presents newly restructured loans that occurred during the three months ended March 31, 2012:

	Number of Loans	Pre-Modification Outstanding Balance		Post- Modification Outstanding Balance
Three Months Ending March 31, 2012	(Dollars In Thousands)
Commercial real estate	1	$	607	$	607
Residential real estate	1		670		670
	2	$	1,277	$	1,277

Of the newly restructured TDRs described above,  two loans required an impairment reserve of $149 thousand recorded in the allowance for loan losses for the three months ended March 31, 2012. 

There were no loans that were modified and classified as  aTDR within the prior twelve months that experienced a payment default (loans ninety or more days past due)for the three months endedMarch 31, 2013

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Guarantees

3 Months Ended

Mar. 31, 2013

Guarantees [Abstract]

Guarantees

Note 7 – Guarantees

The Company, through the Bank, does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Bank generally holds collateral and/or personal guarantees supporting these commitments. The Company had $5.3 million of standby letters of credit outstanding as of March 31, 2013. The approximate value of underlying collateral upon liquidation that would be expected to cover this maximum potential exposure was $4.7 million. Management does not consider the current amount of the liability as of March 31, 2013 for guarantees under standby letters of credit issued to be material.

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Other Comprehensive Income

3 Months Ended

Mar. 31, 2013

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]

Other Comprehensive Income

Note 5 – Other Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.

The components of other comprehensive income (loss), both before tax and net of tax, are as follows:

	Three Months Ended March 31,
	2013						2012
	(In Thousands)
	Before		Tax		Net of		Before		Tax		Net of
	Tax		Effect		Tax		Tax		Effect		Tax
Other comprehensive income (loss):
Unrealized holding (losses) gains on securities
available for sale	$	(68)	$	(23)	$	(45)	$	94	$	32	$	62
Reclassification adjustments for (losses)
gains on securities transactions included
in net income		-		-		-		-		-		-
Total other comprehensive income (loss)	$	(68)	$	(23)	$	(45)	$	94	$	32	$	62

Note 5 – Other Comprehensive Income (Continued)

The statement of income line items impacted by components of other comprehensive income are presented in the table below:

		Three Months Ended
		March 31,
			2013		2012	Affected line item in Statements of Income
			(In Thousands)
Securities available for sale:
	Realized gains (losses)
	on securities transactions	$	-	$	-	Gain (loss) on sales of securities, net
	Income taxes		-		-	Income tax expense
	Net of tax	$	-	$	-

A summary of the accumulated other comprehensive income, net of tax, is as follows:

		Securities
		Available
		for Sale
		(In Thousands)
Balance January 1, 2013		$	2,282
	Other comprehensive loss before reclassifications		(45)
	Amounts reclassified from accumulated other
	comprehensive income		-
	Net other comprehensive loss during the period		(45)
Balance March 31, 2013		$	2,237
Balance January 1, 2012		$	2,388
	Other comprehensive income before reclassifications		62
	Amounts reclassified from accumulated other
	comprehensive income		-
	Net other comprehensive income during the period		62
Balance March 31, 2012		$	2,450

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Basic and Diluted Earnings per Share

3 Months Ended

Mar. 31, 2013

Basic and Diluted Earnings per Share [Abstract]

Basic and Diluted Earnings per Share

Note 6 – Basic and Diluted Earnings per Share

Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period, as adjusted for stock dividends and splits. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

	Three Months Ended March 31,
	2013		2012
	(Dollars In Thousands, except per share data)
Net income	$	1,178	$	1,170
Weighted average shares outstanding		7,242		7,176
Dilutive effect of potential common shares, stock options		5		28
Diluted weighted average common shares outstanding		7,247		7,204
Basic earnings per share	$	0.16	$	0.16
Diluted earnings per share	$	0.16	$	0.16

Stock options of 149,692and 122,200 for the three months endedMarch 31, 2013 and 2012, respectively, were not considered in computing diluted earnings per common share because they are not dilutive to earnings.

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Short-term and Long-term Borrowings

3 Months Ended

Mar. 31, 2013

Long-term Borrowings [Abstract]

Long-term Borrowings

Note 8 – Short-term and Long-term Borrowings

Securities sold under agreements to repurchase, federal funds purchased and Federal Home Loan Bank of Pittsburgh (“FHLB”) short term advances generally represent overnight or less than twelve month borrowings. Long term advances from the FHLB are for periods of twelve months or more and are generally less than sixty months. The Bank has an agreement with the FHLB which allows for borrowings up to a percentage of qualifying assets. At March 31, 2013, the Bank had a maximum borrowing capacity for short-term and long-term advances of approximately $248.9 million, of which $7.9 million were outstanding in long-term loans.  This borrowing capacity with the FHLB includes a line of credit of $25.0 million. Long-term loans with FHLB of $7.9 million were outstanding at December 31, 2012. There were no short-term advances outstanding from the FHLB at March 31, 2013 and December 31, 2012. All FHLB borrowings are secured by qualifying assets of the Bank.

The Bank has a federal funds line of credit with the Atlantic Central Bankers Bank (“ACBB”) of approximately $6.0 million, of which none was outstanding at March 31, 2013 and December 31, 2012. Advances from this line are unsecured.

The Company has two lines of credit with Univest Bank and Trust Co. (“Univest”) totaling $10 million. As of March 31, 2013 and December 31, 2012, the outstanding balance was $4.5 million and $4.7 million, respectively. Advances from these lines of credit are secured by 833,333 shares of Bank common stock. Under the terms of the loan agreement, the Bank is required to remain well capitalized. The proceeds of the loan were primarily used for the holding company’s investment in the Bank, thus providing additional capital to support the Bank’s growth.

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Stock Incentive Plan (Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended		3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Mar. 31, 2013	Mar. 31, 2012
Stock Incentive Plans [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			500,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date			Jun. 15, 2020
Common stock grants to directors, shares			8,764	7,992
Number of Options Granted	29,742	52,611
Compensation expense recognized on stock options			$ 13	$ 5
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options			$ 140	$ 140
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition			1 year 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate			0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			1.34%	1.43%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term			6 years 0 months	7 years 6 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate			28.79%	31.10%
Weighted Average Exercise Price Granted			$ 2.14	$ 2.56
Shares Available for Issuance			400,891

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Loans Receivable and Credit Quality (Allocation for Loan Losses and the Related Loan Portfolio) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Ending Balance	$ 5,011	$ 5,147	$ 4,346	$ 4,215
Allowance for Loan Losses, Ending balance: individually evaluated for impairment	328	750
Allowance for Loan Losses, Ending balance: collectively evaluted for impairment	4,683	4,397
Total Loan Receivables	520,990	505,553
Loans receivables, Ending balance: individually evaluated for impairment	12,143	12,655
Loans receivables, Ending balance: collectively evaluated for impairment	508,847	492,898
Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Ending Balance	1,476	2,007	1,643	1,264
Allowance for Loan Losses, Ending balance: individually evaluated for impairment	158	411
Allowance for Loan Losses, Ending balance: collectively evaluted for impairment	1,318	1,596
Total Loan Receivables	209,094	204,904
Loans receivables, Ending balance: individually evaluated for impairment	7,313	7,620
Loans receivables, Ending balance: collectively evaluated for impairment	201,781	197,284
Commercial construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Ending Balance	490	660	391	352
Allowance for Loan Losses, Ending balance: individually evaluated for impairment		198
Allowance for Loan Losses, Ending balance: collectively evaluted for impairment	490	462
Total Loan Receivables	20,890	19,717
Loans receivables, Ending balance: individually evaluated for impairment	3,417	3,615
Loans receivables, Ending balance: collectively evaluated for impairment	17,473	16,102
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Ending Balance	722	394	363	423
Allowance for Loan Losses, Ending balance: individually evaluated for impairment	11	11
Allowance for Loan Losses, Ending balance: collectively evaluted for impairment	711	383
Total Loan Receivables	29,993	28,696
Loans receivables, Ending balance: individually evaluated for impairment	300	302
Loans receivables, Ending balance: collectively evaluated for impairment	29,693	28,394
Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Ending Balance	1,759	1,677	1,748	1,691
Allowance for Loan Losses, Ending balance: individually evaluated for impairment	159	130
Allowance for Loan Losses, Ending balance: collectively evaluted for impairment	1,600	1,547
Total Loan Receivables	259,523	250,854
Loans receivables, Ending balance: individually evaluated for impairment	1,113	1,118
Loans receivables, Ending balance: collectively evaluated for impairment	258,410	249,736
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Ending Balance	38	33	39	40
Allowance for Loan Losses, Ending balance: collectively evaluted for impairment	38	33
Total Loan Receivables	1,490	1,382
Loans receivables, Ending balance: collectively evaluated for impairment	1,490	1,382
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Ending Balance	526	376	162	445
Allowance for Loan Losses, Ending balance: collectively evaluted for impairment	$ 526	$ 376

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Offsetting Assets and Liabilities

3 Months Ended

Mar. 31, 2013

Offsetting Assets and Liabilities [Abstract]

Offsetting Assets and Liabilities

Note 13 – Offsetting Assets and Liabilities

Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”)

The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities.  Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets.  As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities.  The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement.

The following table presents the liabilities subject to an enforceable master netting arrangement or repurchase agreements as of March 31, 2013 and December 31, 2012:

							Net Amounts
			Gross		Gross Amounts		of Liabilities
			Amounts of		Offset in the		Presented in the
			Recognized		Consolidated		Consolidated		Financial		Cash Collateral
			Liabilities		Balance Sheet		Balance Sheet		Instruments		Pledged		Net Amount
			(In Thousands)
March 31, 2013
Repurchase Agreements:
Private Institutions	(a)	$	27,515	$	-	$	27,515	$	(27,515)	$	-	$	-
December 31, 2012
Repurchase Agreements:
Private Institutions	(a)	$	24,452	$	-	$	24,452	$	(24,452)	$	-	$	-

As of March 31, 2013 and December 31, 2012, the fair value of securities pledged was $39.4 million and $45.8 million, respectively.

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Restricted Investment In Bank Stock (Policy)

3 Months Ended

Mar. 31, 2013

Restricted Investment in Bank Stock [Abstract]

Cost Method Investments, Policy [Policy Text Block]

Management evaluates the FHLB and ACBB restricted stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the issuer as compared to the capital stock amount for the issuer and the length of time this situation has persisted, (2) commitments by the issuer to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuer, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuer.

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Loans Receivable and Credit Quality (Loan Portfolio Summarized by the Past Due Status) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 929	$ 3,704
60-89 Days Past Due	1,916	39
Greater than 90 Days	2,196	2,120
Total Past Due	5,041	5,863
Current Loans Receivable	515,949	499,690
Total Loan Receivables	520,990	505,553
Loans Receivable > 90 Days and Accruing	455	361
Commercial real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	124	831
60-89 Days Past Due	77
Greater than 90 Days	1,779	1,809
Total Past Due	1,980	2,640
Current Loans Receivable	207,114	202,264
Total Loan Receivables	209,094	204,904
Loans Receivable > 90 Days and Accruing	350	351
Commercial construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due		2,559
60-89 Days Past Due	1,801
Total Past Due	1,801	2,559
Current Loans Receivable	19,089	17,158
Total Loan Receivables	20,890	19,717
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	313
60-89 Days Past Due	38	39
Greater than 90 Days	11	10
Total Past Due	362	49
Current Loans Receivable	29,631	28,647
Total Loan Receivables	29,993	28,696
Loans Receivable > 90 Days and Accruing		10
Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	476	301
Greater than 90 Days	406	301
Total Past Due	882	602
Current Loans Receivable	258,641	250,252
Total Loan Receivables	259,523	250,854
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	16	13
Total Past Due	16	13
Current Loans Receivable	1,474	1,369
Total Loan Receivables	1,490	1,382
Loans Receivable > 90 Days and Accruing	$ 105

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Securities Available For Sale (Amortized Cost and Fair Value of Securities Available-For-Sale) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Schedule of Investments [Line Items]
Amortized Cost	$ 83,298	$ 88,400
Gross Unrealized Gains	3,417	3,492
Gross Unrealized Losses	(28)	(35)
Fair Value	86,687	91,857
U.S Government agency obligations [Member]
Schedule of Investments [Line Items]
Amortized Cost	36,323	40,386
Gross Unrealized Gains	201	237
Gross Unrealized Losses	(17)	(18)
Fair Value	36,507	40,605
Municipal Bonds [Member]
Schedule of Investments [Line Items]
Amortized Cost	36,254	36,273
Gross Unrealized Gains	2,708	2,696
Gross Unrealized Losses	(11)	(17)
Fair Value	38,951	38,952
U.S. GSE - Mortgage-backed securities - residential [Member]
Schedule of Investments [Line Items]
Amortized Cost	7,470	8,487
Gross Unrealized Gains	475	530
Fair Value	7,945	9,017
Corporate bonds [Member]
Schedule of Investments [Line Items]
Amortized Cost	3,251	3,254
Gross Unrealized Gains	33	29
Fair Value	$ 3,284	$ 3,283

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Consolidated Statements of Comprehensive Income [Abstract]
Net Income	$ 1,178	$ 1,170
Other comprehensive income:
Unrealized holding gains (losses) on securities available for sale	(68)	94
Securities available for sale, adjustment, before tax	(68)	94
Income tax effect	23	(32)
Net unrealized gains	(45)	62
Other comprehensive income (loss), net of tax	(45)	62
Comprehensive Income	$ 1,133	$ 1,232

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 - Summary of Significant Accounting Policies

The significant accounting policies of the Company as applied in the interim financial statements presented 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, 2012.

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Offsetting Assets and Liabilities (Schedule of Repurchase Agreements) (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	$ 27,515,000	$ 24,452,000
Financial Instruments	(27,515,000)	(24,452,000)
Assets Sold under Agreements to Repurchase, Market Value	39,400,000	45,800,000
Gross Amounts Recognized Liabilities [Member]
Net Amounts of Liabilities Presented in Consolidated Balance Sheet	$ 27,515,000	$ 24,452,000

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Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2013

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]

Schedule of Comprehensive Income (Loss) [Table Text Block]

	Three Months Ended March 31,
	2013						2012
	(In Thousands)
	Before		Tax		Net of		Before		Tax		Net of
	Tax		Effect		Tax		Tax		Effect		Tax
Other comprehensive income (loss):
Unrealized holding (losses) gains on securities
available for sale	$	(68)	$	(23)	$	(45)	$	94	$	32	$	62
Reclassification adjustments for (losses)
gains on securities transactions included
in net income		-		-		-		-		-		-
Total other comprehensive income (loss)	$	(68)	$	(23)	$	(45)	$	94	$	32	$	62

Schedule Of Reclassifications From Accumulated Other Comprehensive Income [Table Text Block]

		Three Months Ended
		March 31,
			2013		2012	Affected line item in Statements of Income
			(In Thousands)
Securities available for sale:
	Realized gains (losses)
	on securities transactions	$	-	$	-	Gain (loss) on sales of securities, net
	Income taxes		-		-	Income tax expense
	Net of tax	$	-	$	-

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

		Securities
		Available
		for Sale
		(In Thousands)
Balance January 1, 2013		$	2,282
	Other comprehensive loss before reclassifications		(45)
	Amounts reclassified from accumulated other
	comprehensive income		-
	Net other comprehensive loss during the period		(45)
Balance March 31, 2013		$	2,237
Balance January 1, 2012		$	2,388
	Other comprehensive income before reclassifications		62
	Amounts reclassified from accumulated other
	comprehensive income		-
	Net other comprehensive income during the period		62
Balance March 31, 2012		$	2,450

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Basic and Diluted Earnings Per Share (Earnings Per Share) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Basic and Diluted Earnings per Share [Abstract]
Net income	$ 1,178	$ 1,170
Weighted average shares outstanding	7,242	7,176
Dilutive effect of potential common shares, stock options	5	28
Diluted weighted average common shares outstanding	7,247	7,204
Basic earnings per share	$ 0.16	$ 0.16
Diluted earnings per share	$ 0.16	$ 0.16
Stock Excluded from Diluted Earnings Per Share Computation	149,692	122,200

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2013

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note 12 – Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

Note 12 – Fair Value Measurements (Continued)

ASC Topic 860 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 860 are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy utilized at March 31, 2013 and December 31, 2012, respectively, are as follows:

Description	(Level 1)       Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total
		(In Thousands)
U.S. Government agency obligations	$	-	$	36,507	$	-	$	36,507
Municipal Bonds		-		38,951		-		38,951
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		-		7,945		-		7,945
Corporate bonds		-		3,284		-		3,284
March 31, 2013 Securities available for sale	$	-	$	86,687	$	-	$	86,687
U.S. Government agency obligations	$	-	$	40,605	$	-	$	40,605
Municipal Bonds		-		38,952		-		38,952
U.S. Government Sponsored Enterprise (GSE) -
Mortgage-backed securities - residential		-		9,017		-		9,017
Corporate bonds		-		3,283		-		3,283
December 31, 2012 Securities available for sale	$	-	$	91,857	$	-	$	91,857

Note 12 – Fair Value Measurements (Continued)

For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2013 and December 31, 2012, respectively, are as follows:

Description	(Level 1)       Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total
		(In Thousands)
March 31, 2013 Impaired loans (1)	$	-	$	-	$	1,052	$	1,052
March 31, 2013 Impaired loans (2)	$	-	$	-	$	514	$	514
March 31, 2013 Other real estate owned (1)	$	-	$	-	$	2,713	$	2,713
December 31, 2012 Impaired loans (1)	$	-	$	-	$	2,006	$	2,006
December 31, 2012 Impaired loans (2)	$	-	$	-	$	1,048	$	1,048
December 31, 2012 Other real estate owned (1)	$	-	$	-	$	3,038	$	3,038
(1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various
Level 3 input which are not identifiable.  Fair values may also include qualitative adjustments by management based on economic
conditions and liquidation expenses.
(2)  Fair Value determined using the debt service of the borrower.

Impaired loans are those that are accounted for under existing FASB guidance,  in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the

properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

At March 31, 2013, of the impaired loans having an aggregate balance of $12.1 million, $10.1 million did not require a valuation allowance because the value of the collateral securing the loan was determined to meet or exceed the balance owed on the loan. Of the remaining $2.0 million in impaired loans, an aggregate valuation allowance of $328 thousand was required to reflect what was determined to be a shortfall in the value of the collateral as compared to the balance on such loans.

Real estate properties acquired through, or in lieu of, foreclosure are to be sold and are carried at fair value less estimated cost to sell.  Fair value is based upon independent market prices or appraised value of the property.  These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement.

Note 12 – Fair Value Measurements (Continued)

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

		Quantitative Information about Level 3 Fair Value Measurements
Description		Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
			(Dollars In Thousands)
March 31, 2013 Impaired loans		$	1,052	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to -25% (-9.8%)
					Liquidation expenses (3)	0 to -10% (-9.0%)
March 31, 2013 Impaired loans		$	514	Discounted Cash Flows (5)
March 31, 2013 Other real estate owned		$	2,713	Listings, Letters of Intent & Third Party Evaluations (4)	Liquidation expenses (3)	-5% (-5%)
(1)	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various
	Level 3 inputs which are not identifiable.
(2)	Appraisals may be adjusted by management for qualitative factors including economic conditions and the age of the appraisal.
	The range and weighted average of appraisal adjustments are presented as a percent of the appraisal.
(3)	Appraisals and pending agreements of sale are adjusted by management for liquidation expenses.  The range and weighted average of
	liquidation expense adjustments are presented as a percent of the appraisal or pending agreement of sale.
(4)	Fair value is determined by listings, letters of intent or third-party evaluations.
(5)	Fair value is determined using the debt service of the borrower.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at March 31, 2013 and December 31, 2012:

Cash and Cash Equivalents (Carried at Cost)

The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values.

Interest Bearing Time Deposits (Carried at Cost)

Fair values for fixed-rate time certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. The Company generally purchases amounts below the insured limit, limiting the amount of credit risk on these time deposits.

Securities Available for Sale (Carried at Fair Value)

The fair value of securities available for sale are determined by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted prices. For these securities, the Company obtains fair value measurements from an independent pricing service.  The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

Note 12 – Fair Value Measurements (Continued)

Loans Receivable (Carried at Cost)

The fair values of loans, excluding impaired loans carried at fair value of collateral, are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, and projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

Restricted Investment in Bank Stock (Carried at Cost)

The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities.

Accrued Interest Receivable and Payable (Carried at Cost)

The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.

Deposit Liabilities (Carried at Cost)

The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Securities Sold Under Agreements to Repurchase and Federal Funds Purchased (Carried at Cost)

These borrowings are short term and the carrying amount approximates the fair value.

Long-Term Borrowings (Carried at Cost)

Fair values of FHLB and Univest advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB and Univest advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party.

Off-Balance Sheet Financial Instruments (Disclosed at Cost)

Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing.

Note 12 – Fair Value Measurements (Continued)

The estimated fair values of the Company’s financial instruments were as follows at March 31, 2013 and December 31, 2012:

			Carrying Amount		Fair Value Estimate		(Level 1) Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs
		(In Thousands)
March 31, 2013:
	Financial assets:
	Cash and cash equivalents	$	14,205	$	14,205	$	14,205	$	-	$	-
	Interest bearing time deposits		4,134		4,156		-		4,156		-
	Securities available-for-sale		86,687		86,687		-		86,687		-
	Loans receivable, net of allowance		515,620		522,502		-		-		522,502
	Restricted investments in bank stock		1,454		1,454		-		1,454		-
	Accrued interest receivable		1,637		1,637		-		1,637		-
	Financial liabilities:
	Deposits		542,039		542,745		-		542,745		-
	Securities sold under agreements to
	repurchase and federal funds purchased		27,515		27,515		-		27,515		-
	Long-term borrowings		12,386		12,445		-		-		12,445
	Accrued interest payable		306		306		-		306		-
	Off-balance sheet financial instruments:
	Commitments to grant loans		-		-		-		-		-
	Unfunded commitments under lines of credit		-		-		-		-		-
	Standby letters of credit		-		-		-		-		-
December 31, 2012:
	Financial assets:
	Cash and cash equivalents	$	29,940	$	29,940	$	29,940	$	-	$	-
	Interest bearing time deposits		5,945		5,977		-		5,977		-
	Securities available-for-sale		91,857		91,857		-		91,857		-
	Loans receivable, net of allowance		500,072		508,053		-		-		508,053
	Restricted investments in bank stock		1,454		1,454		-		1,454		-
	Accrued interest receivable		1,578		1,578		-		1,578		-
	Financial liabilities:
	Deposits		553,020		553,756		-		553,756		-
	Securities sold under agreements to
	repurchase and federal funds purchased		24,452		24,452		-		24,452		-
	Long-term borrowings		12,586		12,708		-		-		12,708
	Accrued interest payable		327		327		-		327		-
	Off-balance sheet financial instruments:
	Commitments to grant loans		-		-		-		-		-
	Unfunded commitments under lines of credit		-		-		-		-		-
	Standby letters of credit		-		-		-		-		-