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%†
Luminaries	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.
Sources	Embassy Bank website May 2017 10-Q 2017 Proxy Statement SNL Financial Confidential interviews with shareholders and analysts

AmeriServ Financial, Johnstown, PA (ASRV)

An Extreme Case of Under the Radar

I'll admit, AmeriServ doesn't fall into either of the categories I usually write about: This bank is no "five star performer." Nor is it a "mismanaged underperformer." It is, however, a pretty good bank that is trading for way below book value with not a single Wall Street analyst following it. Which makes it a great "seize the moment," no-brainer kind of buy for the enterprising investor.

---

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

Prospective Buyers	I'd say these acquisition-minded banks in particular should be looking at this bargain billion dollar bank buy in their backyard. F.N.B. Corp - Hermitage, PA (FNB) First Niagara Financial Group - Buffalo, NY (FNFG) Northwest Bancshares, Inc - Warren, PA (NWBI)
Financial Snapshot (as of 09/30/2013)	Total assets: $1.04B Tangible book value per share: $4.09 NPAs to assets: 0.42% Price to book: 64.1% Market cap: $57.3M Dividend yield: 1.3% Trailing 12-month return on assets: 0.4% Trailing 12-month return on equity: 5.0% TARP: $0* *Repaid $20M in 2011
The Crew	Craig Ford, Chairman Glenn Wilson, President and CEO Jeffrey Stopko, Executive VP and CFO
The Skinny	This is a pretty good bank. AmeriServ has enjoyed 14 profitable quarters in a row, is getting fee income from its trust and advisory business, and has a strong credit culture wherein NPAs haven't exceeded 2% of assets for as long as I can tell. Insiders know what an opportunity they have here. Insider ownership of ASRV is pretty high at 8.3% and growing. There have been 26 insider buys in the open market in the past year alone, and zero sells. An acquiring bank could make money here.  The buyer could afford to pay a 25% premium to book value, because — assuming the requisite efficiencies obtained in a merger — the acquisition would be immediately accretive to both book value and earnings.   Any investor can make money here! AmeriServ pays a decent dividend, and even without an acquirer in the story, there's a more than fair chance your investment would double in value, because it's only a matter of time before the market recognizes this bank for what it is.
Sources	AmeriServ Financial Bank website 2012 Annual Report 2012 Proxy Statement SNL Financial Confidential interviews with shareholders

Embassy Bancorp, Bethlehem, PA (EMYB)

A Case of a Dynamic Duo in the Steel City

The two in charge at Embassy sure know how to pack a punch. This is one bank that I believe could get 150%-160% of book value in a sale. If this pair succeeds in growing book value to over $8 over the next three years, a sale would present a really nice opportunity to double one's money.

And given the Chairman's previous experience selling Ambassador to Fulton in 1998, I think it's reasonable to anticipate that the bank will sell when the price is right. That being said, at a discount to book and only 8x earnings, EMBY will almost certainly make shareholders money even if the bank never sells.

---

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

Prospective Buyers	In addition to the obvious neighborhood heavyweights, F. N. B. Corp (FNB) and M & T Bank Corp (MTB), each of these three banks has good reason to be interested in Embassy, given its 5% share of the deposit market in both Lehigh County and North Hampton County First Niagara Financial, Buffalo, NY (FNFG) - acquiring EMYB would double FNFG's deposit market share in Lehigh and make it #2 in the county Fulton Financial, Lancaster, PA (FULT) National Penn Bancshares, Boyertown, PA (NPBC) - acquiring EMYB would make NPBC #1 in North Hampton and a solid #2 in Lehigh
Financial Snapshot (as of 03/31/2013)	Total assets: $636M Tangible book value per share: $7.07 NPAs to assets: 1.5% Price to book: 95% Market cap: $47M Dividend yield: 0.6% Trailing 12-month return on assets: 0.92% Trailing 12-month return on equity: 12.9% TARP: $0M
Luminaries	David Lobach, Jr, Chairman, President, CEO Judith Hunsicker, Senior Executive VP, Secretary, CFO, COO
Gold Stars	I just love how efficient and committed Embassy is! Just look at how many jobs the two leaders at the helm take on their own shoulders. Here are a few numbers that speak volumes, as well. Employees per branch. With just 70 employees across its 7 branches, Embassy is operating 30% to 90% more efficiently than its peers. M & T has almost twice as many employees per branch (19) First Niagara, Fulton, and National Penn have 30% more per branch (13) Assets per employee. With a whopping $9.2M in assets per employee, Embassy is operating 50% to 100% more efficiently than its peers Fulton has half the assets per employee ($4.6M) First Niagara is managing a third less assets per employee ($6M) National Penn and M & T aren't managing any more, with $5M and $5.7M in assets per employee each, respectively Insider ownership. With insiders owning an impressive 32% of EMYB stock, Embassy managers and directors are 3x to 20x as invested in their bank's success as their peers are in their own Fulton and First Niagara insiders own a measly 1.5% and 2% of their own FULT and FNFG stocks, respectively M & T and National Penn insiders, although wildly beating the average bank's level of insider ownership with 10% and 20% of their respective MTB and NPBC stocks, still fall far short of Embassy's impressive level
Sources	Embassy Bank website 2012 Annual Report 2012 Annual Meeting and Proxy Statement SNL Financial Confidential interviews with shareholders