VIST Financial turns 100: The former First National Bank of Leesport was founded in the days when banking was anything but convenient

Aug 30, 2009 (Reading Eagle - McClatchy-Tribune Information Services via COMTEX) -- VIST | Quote | Chart | News | PowerRating -- IMAGINE A time when, even if you lived in the farthest reaches of the county, you most likely had go to Reading or to some other town miles away to do your banking. You probably didn't have a car, and if you did, you were driving it on rut-riddled dirt roads.

T h a t i s what it was like a hundred years ago, and it could only have been a vast relief to people in the a r e a w h e n the First National Bank of Leesport opened its doors in August 1909.

Now known as VIST Financial Corp. and based in Spring Township, the former Leesport B a n k n ow occupies a much different world in w h i c h n ot o n l y h i g h -- ways but inf o r m a t i o n s u p e r h i g h -- w a y s h a v e made the fl ow of people and their financial data a breeze.

It still is dedicated, though, to the customer and shareholder service it was founded upon.

Robert D. Davis, VIST's president and chief executive, said that at the dawn of its second century, VIST remains a community fi nancial-services fi rm.

"When you look back on 1909 and the generations of management of boards and shareholders in Berks and Schuylkill counties that had the confidence in the company to fuel the growth, it is remarkable because it is so unusual for any firm to last more than 100 years," Davis said. "I'm very respectful of the history."

The bank -- at the time, the only one between Hamburg and Reading -- was founded by Leesport resident Samuel M. Deck, who had lined up prospective investors. Deck also served as cashier and sole teller, and took in $6,041.30 in deposits the fi rst day. The bank had 51 shareholders, mostly from the farming community.

"It was much more agrarian than it is now," said John T. Connelly, who served as chairman, president and chief executive at various times during a period from 1976 to 2000. "Farming was big business, so agriculture was certainly a major part of it."

By the time it changed its name to VIST in 2008, though, the company had expanded geographically as well as into various financial services other than banking, including insurance and wealth management.

"The name Leesport didn't mean a heck of a lot to folks in Montgomery County," Connelly observed. "We had all these entities in a much wider footprint than I had been involved with."

The company applied the new name, VIST -- an acronym for vision, integrity, solutions and trust -- top to bottom throughout all its divisions.

During that same period, the recession settled like a dark cloud over the nation and beyond. Few fi nancial institutions have been unscathed by it. But Davis noted that the firm also weathered the Great Depression and several other recessions during its hundred years.

"I am told that during the Depression, to avoid a run on the company, the leaders put up stacks of currency behind the counter to show that there were no liquidity concerns," Davis said. "I thought that was a very real demonstration of the commitment to the community, and of course I think about it in the context of this deep recession. Times have changed, but not the importance of demonstrating stability."

During this recession, VIST was approached by the Federal Deposit Insurance Corp. to participate in the Capital Purchase Program under the Troubled Asset Relief Program, even though the firm exceeds regulatory capital requirements. Davis said that provides it with a $25 million cushion of capital, which it intends to repay within fi ve years.

He said that VIST sees the recession bottoming out and turning to recovery, but that economic conditions will remain fragile for another year to 18 months.

"But our view is clearly that the crisis is behind us," he said.

Also within the next fi ve years, VIST is planning to grow to about $3 billion in assets, from its current $1.25 billion. Davis said that expansion will come from organic growth and from acquisitions.

He said VIST sees marketshare opportunity in the changes at Sovereign Bank, which was acquired by Banco Santander, and Wachovia, purchased by Wells Fargo & Co.

"There will be a lot of unparalleled opportunity for VIST for the next 100 years," he said. "But it's very important to serve the community, do it with dedicated employees, and be a serious community citizen and contribute to the community. That's how you last another 100 years."

Contact Tony Lucia: 610-371-5046 or tlucia@readingeagle.com.

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