UPDATE: Embassy Bancorp, Bethlehem, PA (EMYB)

Clearly, the bankers in charge at Embassy still know how to pack a punch. As I predicted in my 2013 review, CEO David Lobach and his colleagues have succeeded in doubling the bank's value. In fact, they've done better than I predicted, accomplishing this growth "organically" versus sale of the bank. EMYB is up 120%, and assets are up 50%.

I see no reason why this team can't grow EMYB another 50% over the next four years. If I'm right, Embassy's stock could trade for $30 on its own by 2021, giving investors another chance to double their money.

Lobach is 67 and has certainly earned the right to cash in on his 500% change in control provision any time he likes. I'd be just as happy to see him keep running at full steam ahead for another four years, first. Either way, he's done right by the bank, its customers, its shareholders, and his own family.

Disclosure: As of this posting, I own shares of EMYB and may subsequently either dispose of them or purchase more.

Prospective Buyers

The M&A scene in Embassy's back yard is so hot that two of the institutions I had listed as prospective buyers in May 2013 have since been acquired, themselves — First Niagara Financial Group, Buffalo, NY (FNFG) and National Penn Bancshares, Boyertown, PA (NPBC).

Fulton Financial Corp, Lancaster, PA (FULT)
Provident Financial Services, Iselin, NJ (PFS)

Financial Snapshot
as of 03/31/2017
Total assets:$963M
Tangible book value per share:$10.15
NPAs to assets:0.66%
Price to book:145%
Market cap:$110M
Dividend yield:0.9%
Trailing 12-month return on assets:0.83%
Trailing 12-month return on equity:10%


David Lobach, Jr, Chairman, President, CEO
Judith Hunsicker, Senior Executive VP, Secretary, CFO, COO
James R. Bartholomew, Executive VP

Gold Stars

I still love how efficient and committed Embassy is! In some ways the bank is operating even more efficiently now than it was four years ago, especially considering that its peer group is now comprised of only the strongest players.
    Employees per branch.
    • In 2013, Embassy Bank had just 70 employees across 7 branches and was operating 30% to 90% more efficiently than its peers.
    • Today, Embassy has just 83 employees across 8 branches, and is now operating 30% to 100% more efficiently than its peers.
    Assets per employee.
    • In 2013, Embassy Bank had whopping $9.2M in assets per employee and was operating 50% to 100% more efficiently than its peers.
    • Today, Embassy has $11.6M in assets per employee and is still operating 30% to 60% more efficiently than its peers.
    Insider ownership.
    • In 2013, insiders owned an impressive 32% of EMYB stock worth $15M and Embassy Bank managers and directors were 3x to 20x as invested in their bank's success as their peers in other banks.
    • Today, insiders own 27% of EMYB stock worth $30M, and Embassy managers and directors are still 3x to 4x as invested as their industry peers.


    • Confidential interviews with shareholders and analysts


    1. General comment for the new site: Too bad the search box was removed. not impossible to search for content on the site

      1. Thanks iota. So strange! I will try to get the search box back up. In the meantime, try CTRL-F or Command-F. That'll bring up a Blogger text search for the current screen.

        Best, Phil

    2. I enjoy reading your blog, thanks to Tim Melvin.

    3. Phil: we who bought stock in 2005 at $15 per share are not as impressed with EMYB performance. alex

      1. Hello Alex!
        Thanks for weighing in on $EMYB. I hear you. 2005 was definitely NOT the time to buy many bank stocks. When I learned of it in 2012 it was $5 and a real bargain. I think you have decent upside from here as well. Hopefully you'll come out with a real profit.