Embassy Bancorp, Inc. 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.
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 Company provides a traditional range of financial products and services
to meet the depository and credit needs of individual consumers, small and medium
sized businesses and professionals in its market area. As a locally owned and
operated community bank, there is a strong focus on service that is highly personalized,
efficient and responsive to local needs. It is the intention of the Company
to deliver its products and services with the care and professionalism expected
of a community bank and with a special dedication to personalized service. To
create this environment, the Company employs a well-trained, highly motivated
staff, all with previous banking experience, and interested in building quality
client relationships using state-of-the-art delivery systems and client service
facilities. The Company’s senior management has extensive banking experience.
The Company’s goal is to serve the financial needs of its clients and
provide a profitable return to its investors, consistent with safe and sound
banking practices.
The Company focuses on establishing and retaining customer relationships by
offering a broad range of financial services, competitively-priced and delivered
in a responsive manner. Correspondent relationships are utilized where it is
cost beneficial. The specific objectives of the Company are: 1) to provide individuals,
professionals and local businesses with the highest standard of relationship
banking in the local market; 2) to attract deposits and loans by offering state
of the art products and services with competitive pricing; 3) to provide a reasonable
return to shareholders on capital invested; and 4) to attract, train and retain
a happy, motivated and team oriented group of banking professionals dedicated
to meeting the Company’s objectives.
The Company provides the traditional array of commercial banking products and
services emphasizing one-on-one delivery to consumers and businesses located
in Lehigh and Northampton Counties in Pennsylvania. In the Company’s primary
market area, which is dominated by offices of large statewide, regional and
interstate banking institutions, banking services that are furnished in a friendly
and courteous manner with a timely response to customer needs fill a “niche”
that arises due to the loss of local institutions through merger and acquisitions.
The Company offers small business cash management services to help local companies
better manage their cash flow, in order for the Company to attract and retain
stable deposit relationships. The expertise and experience of the Company’s
management coupled with the latest technology accessed through third party providers
enables the Company to maximize the growth of business-related deposits.
As for consumers, deposit growth is driven by a variety of factors including,
but not limited to, population growth, bank and non-bank competition, increase
in household income, interest rates, accessibility of location and the sales
efforts of Company personnel. Time deposits can be attracted and/or increased
by paying an interest rate higher than that offered by competitors, but they
are the most costly type of deposit. The most profitable type of deposits are
non-interest bearing demand (checking) accounts which can be attracted by offering
free checking. However, both high interest rates and free checking accounts
generate certain expenses for a bank and the desire to increase deposits must
be balanced with the need to be profitable. The deposit services of the Company
are generally comprised of demand deposits, savings deposits, money market deposits,
time deposits and Individual Retirement Accounts.
The loan portfolio of the Company consists primarily of secured fixed-rate
and variable-rate loans, with a significant concentration in commercial-purpose
transactions and consumer residential mortgage and home equity loans. While
most credit facilities are appropriately collateralized, major emphasis is placed
upon the financial condition of the borrower and evaluating the borrower’s
cash flow versus debt service requirements. The Company has an experienced lending
team. The Company believes that the familiarity of its experienced management
team and members of the Company’s Loan Committee with prospective local
borrowers enables the Company to better evaluate the character, integrity and
creditworthiness of the prospective borrowers.
Loan growth is driven by customer demand, which in turn is influenced by individual
and business indebtedness and consumer demand for goods. The Company’s
loan officers call upon accountants, financial planners, attorneys, local realtors
and others to generate loan referrals. A performing loan is a loan which is
being repaid according to its original terms and is the most desirable type
of loan that a bank seeks to make. Again, a balancing act is required for the
Company inasmuch as loaning money will always entail some risk. Without loaning
money, however, a bank cannot generate enough earnings to be profitable. The
risk involved in each loan must, therefore, be carefully evaluated before the
loan is made. The interest rate at which the loan is made should always reflect
the risk factors involved, including the term of the loan, the value of collateral,
if any, the reliability of the projected source of repayment and the amount
of the loan requested. Credit quality will always be the Company’s most
important factor.
The Company has not been involved in any “sub-prime” mortgage lending
and has not purchased or invested in any securities backed by or which include
sub-prime loans.