Embassy Bank marks 25 years as Lehigh Valley’s largest local bank

It was 25 years ago with a handshake and notes on a napkin when a Lehigh Valley bank was born. 

If fact, Dave Lobach, president, chair and CEO of Embassy Bank for the Lehigh Valley, said he still has that cocktail napkin where he and co-founder, the late Elmer Gates, first jotted down what kind of bank they wanted to create. 

Both men, with longstanding banking careers, saw the effect of larger outside banks coming in and buying up local banking institutions and wanted to do better. 

“It was a whole different world of banking back then,” Lobach said. He remembers banks like Merchants Bank, First National Bank and First Valley bank, which either closed or were eaten up by acquisitions. 

“I don’t think that’s good for anybody, the employees, the customers or the community,” he said. 

Their plan, he said, was to create a bank that was directly for the Lehigh Valley. That sentiment even made it into the bank’s official name, Embassy Bank for the Lehigh Valley, and it’s a motto the bank sticks today. 

They brought in other investors to develop the bank – all prominent names in the Lehigh Valley business community and got started with zero initial dollars and no physical building. 

But what they had was experience and community knowledge. All the founders knew the Lehigh Valley community. 

“We wanted people who knew how to pronounce Macungie and knew where First Valley Bank had been located in Bethlehem,” he said. 

They didn’t even have a permanent bricks-and-mortar building when Embassy first began operations. 

Because of construction delays at their original location and headquarters on Gateway Drive in Bethlehem, the bank hung up its shingle on a rented trailer. 

“Elmer said ‘opportunity doesn’t wait. We need to get that bank open,'” Lobach said. 

Today, the bank has 10 locations and more than $1.7 billion in deposits. 

According to the June 2025 FDIC market share data, Embassy Bank ranks fourth among the top 25 banks in the region based on deposits and is the largest bank headquartered in the Lehigh Valley. 

Its board of directors continues to be a who’s who of Lehigh Valley business leaders. 

Besides Lobach, the board has well-known names like Frank “Chip” Banko III Bernard M. Lesavoy and John T. Yurconic. 

It invests in the community by its commitment to customers. For example, it doesn’t sell loans or mortgages to keep investments in the Lehigh Valley. 

It also invests in the region’s non-profits. 

 Last year, the bank donated $1.1 million to local charities and supported 192 community organizations through financial contributions and volunteerism. Since opening its doors, the bank’s total community investment has reached $16.5 million. 

Embassy Bank began celebrating its 25th year in business in November and will continue the festivities through November of this year.