Community Success Stories

Smithmyer's Superette Continues to Serve Loretto, Thanks to BOB

Since its opening in 1965, Smithmyer's Superette in Loretto, Pennsylvania, was owned and managed by the Smithmyer family for more than 50 years. In 2017, when Jay and Louise Smithmyer decided it was time to retire, they wanted to hand off the reins to Jim Gregg and Jess Farabaugh. But there was one small problem.

"Because of the successful nature of the store, a portion of the purchase price included goodwill that was hard to finance," said Deborah Krise, Vice President and Business Development Officer at Marion Center Bank, headquartered in Indiana, Pennsylvania. Krise looked to FHLBank Pittsburgh's Banking On Business (BOB) product for assistance. "The BOB funding helped to cover collateral and equity shortfalls in the transaction," said Krise.

Smithmyer's Superette is the sole provider of groceries, meats and deli products to Loretto, surrounding communities and Saint Francis University students. It employs nine full-time and full-time equivalent employees, including Frank Wyland, who has been the head of the meat department for more than 40 years. The store provides an opportunity for local citizens to work in a friendly, professional atmosphere.

"Jess and I are very proud to be the new owners of Smithmyer's Superette," said Jim Gregg. "This small grocery store has had an excellent reputation, and we couldn't be more excited about continuing its success. Thanks to Marion Center Bank and FHLBank Pittsburgh, we were able to make our dream of one day owning a successful business a reality."

WesBanco and BOB Brewing New Business in Clarksburg, West Virginia

Kevin and Sarah Zakariasen had a desire to start a family-run coffee shop in downtown Clarksburg, W.Va. The dream became a realization for the couple recently when they officially opened the doors of Stonewall Coffee, LLC.
Located next to the County Courthouse, it is the only coffee shop in the Clarksburg business district, catering to office workers, retail employees and local residents. Independently owned and operated, Stonewall Coffee is named after Thomas “Stonewall” Jackson, the Civil War general whose birthplace was Clarksburg.
The Zakariasens had reached out to their local community bank, WesBanco Bank, Inc., which used funding from FHLBank Pittsburgh’s Banking On Business (BOB) program to supplement the financing the owners needed to get their business off the ground.
LuAnne Bush, Vice President at WesBanco Bank, Inc., said, “Without FHLBank Pittsburgh’s BOB product, the Zakariasens’ dream may not have come true as quickly as it did. The flexibility of the BOB product helped to provide the last step in financing allowing Stonewall Coffee the necessary cash to purchase equipment and to finalize renovations to their building. The BOB loan program is a fitting product for startup businesses.”
Downtown businesses have welcomed the new coffee shop. "The first day we opened up, we had more than 130 people come through the doors," said Kevin Zakariasen. "It's been really exciting and neat to see the community come out and say, 'Hey, this is exactly what we needed here in Clarksburg,' and that has been so encouraging."

River Wards Cafe Gives Wakeup Call to Philly Neighborhood

Developers Larry McKnight and Joe Livewell aspired to open The River Wards Cafe, a business they believed would bring together the various communities – or wards – along the Delaware River, north of Center City, Philadelphia. They called on FHLBank member Port Richmond Savings Bank (PRS Bank) to help finance the startup. PRS Bank used funding from FHLBank Pittsburgh’s Banking On Business (BOB) program to supplement financing the developers needed for leasehold improvements and to buy equipment, furniture and inventory. The BOB program made the transaction creditworthy with recoverable assistance the developers will pay back over time.

BOB Funds Support Organic Farm in Western Pennsylvania

In early 2017, the owners of Edible Earth Farm wanted to expand their organic vegetable business and move closer to their customers in Erie and Pittsburgh. They approached Mercer County State Bank (MCSB) for help purchasing the perfect property in Sandy Lake, Pa. The new location was close to the I-79 corridor, providing easy access to customers, markets and seasonal laborers. The five-employee business would also double its acreage, allowing it to add organic fruits and meat to the product offerings and increase staff – to seven in the first year and possibly 12 by year three.
MCSB relied on FHLBank’s Banking On Business (BOB) product to help fund the loan since the business didn’t have enough cash for a full down payment. "Due to the significant changes to the company’s business and large expansion, this transaction had quite a bit of risk associated with it," said Shelley Carfolo, MCSB’s Commercial Lender. "We couldn’t have done it without the BOB funds."
The owners were able to relocate in time to plant for the spring season. They also opened up deposit accounts and a line of credit at the bank. With BOB, MCSB was able to help small business in its own back yard and establish a solid customer relationship for years to come.

St. Francis Villa Residents in Kensington, Pa., A New Home for the Holidays

Forty one-bedroom apartments of affordable senior housing recently opened in the Kensington area of Philadelphia, Pa., in time for the holidays. For one new resident, Theresa, moving into St. Francis Villa has been more than just finding a nice place to live. It’s been a blessing too. Through her volunteer work at nearby St. Francis Inn, she has found new meaning and purpose: “It has really changed my life,” she said. “The fellowship with the Franciscan community and the guests that we serve – it’s extraordinary.” Theresa attends mass there and has become a regular participant in their ministry to the hungry and homeless.
Theresa loves her third-floor corner apartment. “It has windows everywhere and is so bright and airy. Harvey [her rescue cat] loves his sunny window sill, and I love how it faces our garden,” she said. She enjoys the common events in the building and has made some friends among her new neighbors, who comprise a multicultural community.
Theresa says living at St. Francis Villa has improved her quality of life. “I don't think I've felt this good in quite a while,” she said. “It's like I've gotten younger, and I feel blessed, like God has placed me here with all these wonderful people around me. He’s taking care of me.”
The project increases the number of affordable units in the area for the elderly while eliminating an abandoned property to a more appropriate use. Building amenities include community rooms, laundry facilities, administrative space, garden walking paths and 24-hour security monitoring systems. An FHLBank Pittsburgh Affordable Housing Program (AHP) grant of $443,991 through FHLBank member PNC Bank benefitted the project.

Uptown Lofts on Fifth Provide Housing for Young Adults and Families

The Uptown neighborhood of Pittsburgh, Pa., is home to the Uptown Lofts on Fifth, supporting low-income housing serving young adults who have recently left the foster care system and are homeless, as well as families at or below 60 percent of the area median income. The supportive housing for young adults represents the first program of its kind in Pennsylvania and only one of a few such programs in the U.S. The total development cost for the project was approximately $12 million, financed in part by an Affordable Housing Program (AHP) grant of $250,000 through FHLBank member Northwest Savings Bank.

Six New Homes in South Philadelphia's Point Breeze Neighborhood

Six new-construction homes now grace an area targeted as an eyesore of vacant, blighted properties in the Point Breeze neighborhood of South Philadelphia. The project represents the largest homebuilding project ever for sponsor Habitat Philadelphia. The project received an FHLBank Pittsburgh Affordable Housing Program (AHP) grant of $123,499 through FHLBank member Santander Bank, N.A. The newest homeowners, Aisha and Sekou, devoted more than 350 hours of “sweat equity” in lieu of a down payment, have shown a need for housing, and have the financial stability to repay a zero-percent-interest, 30-year mortgage.

Perfect Medicine for Family-Owned Pharmacy Expansion

Harrold’s Pharmacy, a third-generation family-run business located in Wilkes-Barre, Pa., was established by the Lefkowitz family nearly 70 years ago. To stay abreast of changing times and patients’ needs, owner Bruce Lefkowitz decided the timing was right to expand by purchasing and rehabbing a nearby bakery, which had been vacant for more than two decades in a warehouse area west of downtown. To finance the deal, Lefkowitz called on his local community bank for help, FHLBank member Luzerne Bank. His business received $200,000 in recoverable assistance from FHLBank’s Banking On Business (BOB) product.

West Virginia Women's Recovery Center Reaching New Heights

A serious shortage of affordable housing for low-income individuals and families, and an even greater need for critical housing for women in alcohol and drug recovery, had plagued White Sulphur Springs, W.Va. Three years in the making, Oakhurst Heights could not have opened soon enough. Oakhurst Outreach converted two buildings for two community needs: transitional housing for six low-income women who have completed an initial chemical dependency program and a center for community activities. An FHLBank Pittsburgh Affordable Housing Program (AHP) grant of $135,000 through FHLBank member Pendleton Community Bank benefitted the project.

West Virginia County Shaping up for a Healthier Future

A long-identified community health care need, the state-of-the-art Hampshire Wellness & Fitness Center was constructed and opened in the community of Romney, W.Va. – helping area residents get in shape for a healthier future. FHLBank member Bank of Romney used a $600,000 Community Lending Program (CLP) loan from FHLBank Pittsburgh to support the project. Within the first two years of operation, the center’s membership grew to more than 1,100 members, with a work force of 39 employees. The center offers 165 classes per month from beginning yoga to aerobics, cycling to aquatic arthritis therapy, and family swim to advanced Pilates.

The Mane Event: State-of-the-Art Equine Facility Debuts

A new state-of-the-art equine clinic and surgical facility debuted in Oxford, Pa., offering an array of the latest advancements in veterinary medicine. The facility – designed by staff veterinarians – was constructed on the site of an old dairy farm and used much of the original barn wood true to the countryside of the Chester County area. The project met the definition of a small business and qualified for a $1.3 million, five-year low-cost loan from FHLBank’s Community Lending Program (CLP). CLP funding, along with additional financing from FHLBank member First Resource Bank, helped the buyer meet his total construction costs.

Delaware Kitchen Business Expands with Perfect Recipe

Holcomb Cabinetry of Wilmington, Del., has been in business for three decades. When owner Don Holcomb decided it was time to move to a larger facility with more showroom space, he found a vacant commercial property in Claymont, Del. In six months time, he converted an abandoned hardware store into his new kitchen showroom. Holcomb called on his local bank, FHLBank member WSFS Bank for assistance with helping his custom kitchens business grow. In addition to a small business loan, Holcomb also received $150,000 in recoverable assistance from FHLBank Pittsburgh’s Banking On Business (BOB) product.

Mining Contractor Acquires Business, Secures Jobs

Victory of West Virginia, Inc., a mining design/build contractor based in Fairmont, has serviced the mining industry for more than 65 years. In 2006, when the former owner put the business up for sale, a local entrepreneur called on FHLBank Pittsburgh member MVB Bank for help in acquiring the business. Victory met the definition of a small business and qualified for a $1.3 million one-year, low-cost loan from FHLBank’s Community Lending Program (CLP). CLP funding, along with additional financing from MVB Bank, helped the buyer meet his total purchasing costs, keeping jobs in Marion County.

Neighborhood Initiative Reversing Blight in McKeesport

McKeesport, Pa., was hard-hit by the departure of the steel industry that brought prosperity in decades past, decimated by a declining population, and plagued with unemployment. Through the commitment of local community leaders, though, the page is turning for McKeesport. The city is actively razing abandoned houses, and nonprofits are helping to bring affordable new home construction to McKeesport’s neighborhoods. Since 2005, McKeesport has been a member of FHLBank Pittsburgh’s Blueprint Communities initiative. Blueprint Communities aims to revitalize older communities and neighborhoods through leadership training, organizational capacity building and funding from program partners.

Former Pittston, Pa., High School Gets New Life with AHP Funding

The former West Pittston High School, in Pittston, Pa., had been closed for nearly four decades. When Hurricanes Irene and Lee displaced many residents and left the community with a shortage of housing in 2011, United Neighborhood Community Development Corporation stepped up to the plate, converting the school structure – now called the Old School on Luzerne Senior Apartments – into 22 affordable apartments for senior citizens. The project was financed in part by an Affordable Housing Program (AHP) grant of $170,000 through FHLBank Pittsburgh member Peoples Security Bank and Trust Company.