Profile: Malvern Bancorp Inc (MLVF.O)
14 Dec 2017
Malvern Bancorp, Inc., incorporated on May 16, 2012, is the holding company for Malvern Federal Savings Bank (the Bank). The Bank is a federally chartered, the Federal Deposit Insurance Corporation (FDIC)-insured savings bank. The Company operates through the Community Banking segment. The Bank's principal business consists of attracting deposits from businesses and the general public primarily in Chester County, Pennsylvania and investing those deposits, together with borrowings and funds generated from operations, in one- to four-family residential real estate loans, construction and development loans, commercial and multi-family real estate loans, commercial business loans, home equity loans and lines of credit and other consumer loans, as well as investing in investment securities. In addition to Chester County, its lending efforts are focused on neighboring Bucks County, Montgomery County and Delaware County, which are also in southeastern Pennsylvania, New Jersey and the New York metropolitan marketplace. The Bank's revenues are derived principally from interest on loans and investment securities, loan commitment and customer service fees and mortgage banking operation.
The Bank offers a range of deposit and loan products. In addition, to attract the business of consumer and business customers, the Bank also provides an array of other banking services. Its products and services include personal and business checking accounts, retirement accounts, money market accounts, time and savings accounts, credit cards, wire transfers, access to automated teller services, Internet banking, automated clearing house (ACH) origination, telephone banking and mobile banking by phone. The Bank also offers safe deposit boxes. In addition, the Bank offers mobile remote deposit capture banking for both retail and business customers. Checking account products consist of both retail and business demand deposit products. Retail products include free checking and, for businesses, both interest-bearing accounts, which require a minimum balance, and non-interest bearing accounts. Its negotiable order of withdrawal (NOW) accounts consist of both retail and business interest-bearing transaction accounts that have minimum balance requirements. Money market accounts consist of products that provide a market rate of interest to depositors but have limited check writing capabilities. Its savings accounts consist of statement type accounts. Time deposits consist of certificates of deposit, including those held in individual retirement accounts.
The Bank, through its partnership with Bell Rock Capital, offers through its private banking and wealth management division personalized wealth management and advisory services to high net worth individuals and families. Services provided include liquidity management, investment services, custody, wealth planning, trust and fiduciary services, insurance and 401k services. Strategic Asset Management Group, Inc. (SAMG) is the subsidiary of the Bank. SAMG holds interest in Malvern Insurance Associates, LLC (Malvern Insurance), a licensed insurance broker under Pennsylvania law. Malvern Insurance offers a full line of business and personal lines of insurance products.
The Company's loan portfolio consists of residential, construction and development, commercial and consumer loans, serving the diverse customer base in its market area. The Bank offers personal and commercial business loans on a secured and unsecured basis, revolving lines of credit, commercial mortgage loans, and residential mortgages on both primary and secondary residences, home equity loans, bridge loans and other personal purpose loans. Residential mortgages include loans secured by first liens on residential real estate, and are generally made to existing customers of the Bank to purchase or refinance primary and secondary residences. Construction and development loans are loans to finance the construction of commercial or residential properties secured by first liens on such properties. Commercial loans are loans made for business purposes and are primarily secured by collateral, such as cash balances with the Bank, marketable securities held by or under the control of the Bank, business assets including accounts receivable, inventory and equipment and liens on commercial and residential real estate. It also offers automobile loans, unsecured personal loans and loans secured by deposits. As of September 30, 2016, the Bank's net loans amounted to $574.16 million.
As of September 30, 2016, the Bank's principal components of the investment portfolio were the United States Government agency obligations, Federal agency obligations, including mortgage-backed securities, obligations of the United States' states and political subdivision, corporate securities, trust preferred security and equity securities. As of September 30, 2016, the Company held two municipal bonds, nine corporate securities, 15 mortgage-backed securities and one single issuer trust preferred security. As of September 30, 2016, the Bank's total investment securities available-for-sale amounted to $66.38 million and total investment securities held-to-maturity amounted to $40.55 million.
Sources of Funds
The Bank's primary sources of funds are deposits, borrowings and principal and interest payments on loans and securities, as well as the sale of residential loans in the secondary market both with servicing retained and released. Its 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. 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 Bank derives its income principally from interest earned on loans, investment securities and, to a lesser extent, from fees received in connection with the origination of loans and for other services. As of September 30, 2016, the Bank's total deposits amounted to $602 million.
Malvern Bancorp Inc
42 E Lancaster Ave
PAOLI PA 19301-1455