Form 4: Embassy Bancorp CEO Receives Restricted Stock Grant

Embassy Bancorp's Chairman, President, and CEO, David M. Lobach Jr., received a grant of 3,429 shares of restricted common stock, vesting over three years.

Summary

• David M. Lobach Jr., serving as Director, 10% Owner, Chairman, President, and CEO of Embassy Bancorp, Inc. (EMYB), reported a transaction.
• On December 15, 2025, Mr. Lobach was granted 3,429 shares of restricted common stock.
• These shares were granted pursuant to the Amended and Restated 2010 Stock Incentive Plan.
• The restricted shares will vest one-third each year over a three-year period.
• Following this transaction, Mr. Lobach directly beneficially owns 371,975.2475 shares of common stock.
• Indirect beneficial ownership includes 118,100 shares by IRA, 54,700 shares by Spouse IRA, and 998.4998 shares as PUGTMA for a Grandchild.

Sentiment

Score: 7

Explanation: The filing reports a routine restricted stock grant to a key executive, which is generally viewed positively as it aligns management's interests with shareholders. It does not contain any negative or unexpected information.

Positives

• The grant of restricted stock to the Chairman, President, and CEO aligns management's long-term interests with those of shareholders.
• The transaction is part of an existing stock incentive plan, indicating a structured approach to executive compensation.

Negatives

• None identified in this filing.

Risks

• None identified in this filing, as this is a routine insider transaction report.

Future Outlook

The newly granted restricted shares will vest one-third each year over a three-year period, indicating a future commitment and incentive structure for the CEO.

Management Comments

• The grant of restricted stock to David M. Lobach Jr. reflects the company's ongoing commitment to its Amended and Restated 2010 Stock Incentive Plan, aiming to incentivize and retain key executives.

Industry Context

Insider transactions, such as restricted stock grants, are common practices in the financial services industry to align executive incentives with long-term company performance and shareholder value. This filing is a routine disclosure of such an event.

Comparison to Industry Standards

• The grant of restricted stock as part of an incentive plan is a standard compensation practice for executives in publicly traded companies, including those in the banking sector.
• The vesting schedule of one-third per year over three years is a common structure designed to promote long-term retention and performance.

Corporate Governance

Related Party Transactions

• The grant of restricted stock to David M. Lobach Jr., a Director, 10% Owner, Chairman, President, and CEO, constitutes an executive compensation transaction with a related party.

Stakeholder Impact

• Shareholders: The grant aligns the CEO's financial interests with long-term shareholder value through equity ownership and a vesting schedule.
• Management/Employees: Reinforces the company's executive compensation framework and incentivizes key personnel.

Next Steps

• The restricted shares will vest one-third annually over the next three years, starting from December 15, 2025.

Key Dates

Recommendation

This Form 4 reports a routine restricted stock grant to a key executive, aligning management's interests with shareholders. It does not provide sufficient new information to alter an investment thesis, thus a 'hold' recommendation is appropriate based solely on this filing.

Keywords

Embassy Bancorp, EMYB, David M. Lobach Jr., Form 4, Insider Transaction, Restricted Stock, Stock Grant, Executive Compensation, Corporate Governance