By Chris Cooper

“We stayed here and toughed it out with the rest of the city, and now the city is finally starting to rebound.”

Those are the words of Fred Henrich, the President and CEO of Coatesville Savings Bank who remembers the Great Recession, when Coatesville endured an economic downturn and four of the city’s banks closed their doors.

“We tried to remain committed and responsive to the community and kept our doors open,” he said.

Coatesville Savings Bank did not abandon Coatesville, and its staying power is a testament to its ability to offer the customer service of a small bank and the range of services of a large one.

No one will confuse Coatesville Savings Bank, with $208 million in assets and 42 employees, with, say, Wells Fargo. However, the structure of Coatesville Savings as a mutual savings bank gives it advantages that the big boys don’t have, and those benefit customers in the long run.

“The best way to explain a mutual savings bank like ours is that we don’t have stockholders; we are owned by our depositors,” said Henrich. “A normal stock institution like Wells Fargo, for example, has millions of stockholders who are looking for income through dividends every quarter, so the big banks are required or expected to turn a profit every quarter.”

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According to Henrich, that underlying necessity to turn a profit means higher prices, higher service charges, and higher fees for the customers. A mutual bank, by contrast, is more focused on the long-term viability, strength, profitability, and mission of the bank, rather than short-term results.

“Our bank is very involved and active in the community it serves,” said Henrich. “Sometimes that means we’ll write big checks to local organizations and that might impact our profitability in the short term, but the longer-term effect of that community-related activity will be beneficial to all of us.”

Being involved and active in the community goes hand in hand with good customer service, an issue that’s a priority at Coatesville Savings Bank, where the staff treats customers as more than just account numbers.

“I like to jokingly say that when you walk into a big bank, they know your account number,” said Henrich. “Here we know your face, and we have to look up your account number. And in some of the big banks, you’re forced to use their ATMs or their robo-teller machines and that takes away the personal touch.

“Here, once you walk in those doors, you’re face to face with our staff, and that helps build a relationship.”

Of course, for those who want the convenience of remote banking, Coatesville Savings long ago made a commitment to technology, and is able to match its competition on Internet banking and bank by phone, including the ability to make deposits from a cell phone.

The bank will also issue credit cards to complement its standard offerings of savings and checking accounts, NOW accounts, and certificates of deposit, along with a cash rewards program that pays customers two percent on any balance if they use their debit cards 12 times a month. And to celebrate the 40th anniversary of the New Holland branch (one of five Coatesville Savings branches), the bank will offer a special 1.75 percent annual percentage yield on a 40-month CD.

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In a city like Coatesville, which is in the process of the $22 million Gateway redevelopment project, loans to small businesses are critical to the hoped-for revitalization, another service Henrich calls one of his bank’s strengths.

“We do much more small business lending than we ever did, and we have a very talented lending staff,” he said. “You’ll find that some of the bigger banks don’t want to bother with a $250,000 or $500,000 loan to the small business guy, because to them, it’s just not worth their time and trouble.

“For us it’s our bread and butter. It’s what we do 24 hours a day.”

With the Gateway Project now under way, Coatesville is drawing expectant comparisons to other areas – like Phoenixville and West Chester – that have seen their fortunes improve through investment and revitalization. Naturally, Coatesville Savings Bank will play a key role in this revitalization, as it has already assisted the developer, DEPG Associates, with property acquisitions.

The bank sits in a prime position to witness redevelopment efforts that have been a long time coming.

“We’re on Second Avenue, the Gateway Project is on First Avenue, and the new train station is on Third Avenue,” said Henrich, “so everybody has to pass us to get where they’re going.”

Now, with a bit of satisfaction, the President and CEO of the only remaining bank in Coatesville can look across the street where a new Italian restaurant will hopefully soon take up residence in a historic building that was once home to one of those big banks that years ago pulled out of the city.

“We’ve been here about 98 years,” said Henrich, “and we’re not going anywhere.”

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