Malvern Federal Savings Bank is a federally chartered savings bank which was
originally organized in 1887. The Bank conducts business from its main office
located in Paoli, Pennsylvania and its seven full service financial center offices
located in Chester and Delaware Counties, Pennsylvania. 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, our lending efforts are focused in
neighboring Montgomery County and Delaware County, both of which are also in
southeastern Pennsylvania. We are also serving client needs in the greater Philadelphia
market area. On August 19, 2015, we expanded our base of operations with the
opening of a loan production office in New Jersey. The Bank’s revenues
are derived principally from interest on loans and investment securities, loan
commitment and customer service fees and our mortgage banking operation. Our
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. The Bank’s primary expenses are interest expense
on deposits and borrowings, provisions for loan losses and general operating
expenses.
We derive substantially all of our income from our net interest income (i.e.,
the difference between the interest we receive on our loans and securities and
the interest we pay on deposits and other borrowings). We offer a broad range
of deposit and loan products. In addition, to attract the business of consumer
and business customers, we also provide a broad array of other banking services.
Products and services provided 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,
ACH origination, telephone banking, and mobile banking by phone. In addition,
we offer safe deposit boxes. The Bank also offers remote deposit capture banking
for business customers, providing the ability to electronically scan and transmit
checks for deposit, reducing time and cost. In addition the Bank offers mobile
remote deposit capture banking for both retail and business customers, providing
the convenience to deposit on the go.
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.
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. Our savings accounts consist of statement type accounts.
Time deposits consist of certificates of deposit, including those held in IRA
accounts. CDARS/ICS Reciprocal deposits are offered based with the Bank’s
participation in Promontory Interfinancial Network, LLC. Customers who are FDIC
insurance sensitive are able to place large dollar deposits with the Company
and the Company uses CDARS to place those funds into certificates of deposit
issued by other banks in the Network. This occurs in increments of less than
the FDIC insurance limits so that both the principal and interest are eligible
for complete FDIC insurance coverage. The FDIC currently considers these funds
as brokered deposits.
The Bank, with it’s partnership with Bell Rock Capital, offers through
its private banking and wealth management division personalized wealth management
and advisory service 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.
Deposits serve as the primary source of funding for our interest-earning assets,
but also generate non-interest revenue through insufficient funds fees, stop
payment fees, safe deposit rental fees, card income, including ATM fees and
credit and debit card interchange, gift card fees, and other miscellaneous fees.
In addition, the Bank generates additional non-interest revenue associated with
residential loan origination and sale, loan servicing, late fees and merchant
services.
We offer 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. However, we are not and have not historically
been a participant in the sub-prime lending market.
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.
Commercial construction loans are loans to finance the construction of commercial
or residential properties secured by first liens on such properties. Commercial
real estate loans include loans secured by first liens on completed commercial
properties, including multi- family properties, to purchase or refinance such
properties. 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. Home equity loans and lines of
credit include loans secured by first or second liens on residential real estate
for primary or secondary residences.
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7.75% 