Overview of Ephrata National Bank

Ephrata National Bank was established in 1881 and is one of a select number of banks in the country that have existed for well over a century. The bank is located in the state of Pennsylvania in the city of Ephrata and Lancaster County. Despite the bank’s name, it is not a national bank and would more aptly be described as a community bank. The bank has an asset base of $1,715 million which ranks it in the 90th percentile of banks in the United States. Ephrata National Bank currently has 17 offices and employs a total of 270 employees.

Products and Services

Ephrata National Bank offers existing customers and potential customers the following accounts and loan options:

  • Checking Account – the bank offers several checking account options starting with its Classic Checking account. This account has a $50 minimum deposit to open, but has no monthly maintenance fee, no minimum balance requirements, no direct deposit requirements and no limits on writing checks.
  • Savings Accounts – the bank’s Statement Savings account requires $100 deposit to open the account and account holders must maintain a balance of at least $100 to avoid a $5.00 monthly charge. As of this writing the bank’s savings accounts pay an interest rate of 0.02% per year.
  • Mortgages – multiple options for both first-time home buyers and consumers looking to refinance their mortgages.
  • Credit Cards – Ephrata National Bank has multiple credit card options including the Everyday Rewards+ Card which offers 4x unlimited points on dining, take-out and food delivery and a $150 bonus reward after spending $500 within first 90 days of account opening. For consumers seeking more information on the bank’s credit card offerings you can visit here.
  • HomeLine – this is a personal loan option offered by the bank. It has a $5,000 minimum loan amount and offers customers with a checking account a 0.50% discount with automatic payment setup.

Overview of the Bank’s Assets and Liabilities

As previously indicated, the bank currently has total assets of $1,715 million, which makes it a mid-sized bank in the United States. The bank also has net loans outstanding to customers of $911 million and a deposit base of $1,515 million. Domestic deposits currently represent (in terms of total size), 88% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 79% are insured based on the latest available information. As we look at the composition of the banks assets, as noted earlier the bank is primarily engaged in providing 1-4 family residential loans (mortgages) and farm-related loans to its customers. Overall, customer loans currently make up 54% of the bank’s total assets. Ephrata National Bank has $409 million of outstanding 1-4 family residential loans (mortgages), which in total represents 44% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 1% and 7% of loans outstanding, respectively. Loans to farmland and farms represents 24% of loans outstanding.

Contact Information For Ephrata National Bank

  • Main Office Address: 31 E. Main St., Ephrata, PA 17522
  • Website: http://www.epnb.com
  • Total Number of Branches: 17
  • Total Number of International Branches: None
  • Number of Employees: 270
  • FDIC Certificate Number: 7493
  • FDIC Community Bank: Yes
  • FDIC Field Office: Harrisburg
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 425911
  • Bank Charter Class: N
  • Primary Regulator: OCC
  • Routing Number: 031308250

Financial Overview

ephrata national bank-financial-metrics-dec-21

Ephrata National Bank has total assets of $1,715 million which compares with $1,461 million in the prior year. This implies that over the past year, the bank’s asset base has shown an increase of 17.4%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $911 million based on the latest available information. Its net loans outstanding have increased substantially over the past year, with an increase of 11.9%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 44% of the bank’s loan book. The bank has $409 million of residential mortgages outstanding, which compares with $350 million in the prior year. This implies an increase of 16.8% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 6.9% of its total lending and stood at $63 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 24.3% of its total loan portfolio.

Bank Liquidity and Funding

While most banks are insured by the FDIC, the insurance coverage does not always provide full protection. Therefore, understanding a banks liquidity and funding is important to help assess the riskiness of a bank’s balance sheet. Customer deposits is usually one of the cheapest ways to finance a bank. This is especially the case for accounts that don’t pay interest, such as checking accounts. Ephrata National Bank has total customer deposits of $1,515 million. Looking over the past year, its deposit base has increased substantially with a growth rate of 20.2%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, Ephrata National Bank has a loan to deposit ratio of 60% which is significantly below the average. A lower ratio is generally better as it indicates that the lending activities of a bank are more comfortably covered by its deposit base. Deposits, as noted earlier, are usually a cost effective source of financing. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.

Bank Performance and Capital Metrics

ephrata national bank-performance-metrics-dec-21

Moving on to the performance and capital metrics for the bank, in the above we have a chart that shows key performance metrics for Ephrata National Bank compared with the average U.S. bank. Starting with its return on assets, over the past year it has been relatively stable. Importantly, on this metric we can also see that the bank is below the average bank. Return on assets tells us how productive a bank is being with its asset base. Moving on to the bank’s return on equity, which tells us how much of a return the bank has generated for its owners, over the past year it has improved. In addition, we can also see that the bank is below the average bank on this metric. The bank’s total leverage ratio has declined over the past year and is currently below the national average. Finally, Ephrata National Bank’s Tier 1 capital ratio has been relatively stable over the past year. On this metric the bank is below the national average.

Concluding Comments on Ephrata National Bank

After factoring in all the relevant information and data, our final rating for Ephrata National Bank is 2.9 out of 5.0, which is above average. Specifically, an area of strength for the bank would be its cost of funds which is above the national average. On the contrary, the bank’s net interest margin is one of the primary drawbacks on its rating as on this metric, the bank is below average. Finally, please note that the rating information is based on our proprietary scoring system. This system was developed by us and leverages data from a nationwide bank study. Importantly, keep in mind that none of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.