Profile: Malvern Bancorp Inc (MLVF.O)
17 Mar 2014
Malvern Bancorp, Inc., incorporated May 16, 2012, is a the holding company for Malvern Federal Savings Bank (the Bank). The Bank is a federally chartered savings bank. The Bank had eight full service financial center offices in Chester and Delaware Counties, Pennsylvania, during the year ended December 31, 2012. The Bank’s principal sources of funds are deposits, repayments of loans and investment securities, maturities of investments and interest-bearing deposits, other funds provided from operations and wholesale funds borrowed from outside sources, such as the Federal Home Loan Bank of Pittsburgh (FHLB). These funds are primarily used for the origination of various loan types including single-family residential mortgage loans, commercial real estate mortgage loans, construction and development loans, home equity loans and lines of credit and other consumer loans.
The Company and its subsidiaries, Malvern Federal Holdings, Inc., and the Bank and the Bank’s subsidiaries, Strategic Asset Management Group, Inc. (SAMG) and Malvern Federal Investments, Inc. provide various banking services, primarily accepting deposits and originating residential and commercial mortgage loans, consumer loans and other loans through the Bank’s eight full-service branches. SAMG owns 50% of Malvern Insurance Associates, LLC. Malvern Insurance Associates, LLC offers a line of business and personal lines of insurance products.
The Bank’s loans portfolio includes residential loans, construction and development loans, commercial loans and consumer loans. The residential loan segment has one class, one- to four-family first lien residential mortgage loans. The construction and development loan segment consists of residential and commercial and land loans. Residential construction loans are made for the acquisition of and/or construction on a lot or lots, on which a residential dwelling is to be built. Commercial construction loans are made for the purpose of acquiring, developing and constructing a commercial structure. The commercial loan segment consists of commercial real estate loans, multi-family real estate loans, and other commercial loans, which are also generally known as commercial and industrial loans or commercial business loans. The consumer loan segment consists of home equity lines of credit, second mortgage loans and other consumer loans, primarily unsecured consumer lines of credit.
In addition to originating loans, the Company purchases consumer and mortgage loans from brokers in its market area. Residential mortgage originations are secured primarily by properties located in the Company’s primary market area and surrounding areas. The Company originates fixed-rate, fully amortizing mortgage loans with maturities of 15 to 30 years. It also offers adjustable rate mortgage (ARM) loans where the interest rate either adjusts on an annual basis or is fixed for the initial one, three, five or seven years and then adjusts annually. The Company originates consumer loans on both a direct and indirect basis. As of December 31, 2012, the Bank’s total loans include $446.3 million.
As of December 31, 2012, all of the Company’s mortgage-backed securities consisted of securities backed by residential mortgage loans. Investment securities available for sale as of December 31, 2012, included the United States government agencies, state and municipal obligations, single issuer trust preferred security, corporate debt securities, mortgage-backed securities and collateralized mortgage obligation (CMO) and fixed-rate. As of December 31, 2012, the investment securities totaled $85.2 million.
Sources of Funds
The Bank’s primary sources of funds are from deposits, FHLB borrowings, amortization of loans, loan prepayments and the maturity of loans, mortgage-backed securities and other investments, and other funds provided from operations. The Bank’s deposits include demand and negotiable order of withdrawal (NOW) accounts, money market accounts, savings accounts and time deposits. As of December 31, 2012, the Bank’s deposits totaled $513.3 million.
Malvern Bancorp Inc
42 E. Lancaster Avenue, Chester
PAOLI PA 19301