The Federal Deposit Insurance Corp., the New Jersey Department of Banking and Insurance and the Pennsylvania Department of Banking and Securities, have approved the merger, while the Board of Governors of the Federal Reserve System gave its non-objection to the merger, the banks announced last week.
The merger was originally announced Dec. 14, 2022, and is expected to close this month pending satisfaction of customary closing conditions.
“This strategic merger enhances our market presence and deposit share in eastern Pennsylvania and adds to our robust growth strategy,” Patrick L. Ryan, president and chief executive officer of First Bank, said in a statement. “The merger with Malvern Bank, known for its commercial lending, private banking and outstanding customer service, demonstrates our commitment to low-risk, high-quality transactions that broaden our service region. We’re excited to incorporate Malvern Bank’s staff into our First Bank team.”
Following the legal close of the transaction, Malvern Bank branches will transition to First Bank in September, according to an emailed response to questions. Customers will receive full information about the transition in August. In the meantime, Malvern Bank customers can visit MyMalvernBank.com/merger/index.htm to stay up to date.
No information was provided by First Bank on potential job reductions once the transition is completed.
Under the terms of the transaction — valued at $149.5 million — Malvern Bancorp shareholders will receive 0.7733 shares of First Bank common stock and $7.80 in cash per each Malvern Bancorp Inc. common share outstanding. First Bank expects to issue approximately 5.9 million new shares of First Bank common stock and $59.4 million in cash consideration to consummate this transaction.
The merger of the New Jersey-based First Bank and Malvern Bancorp, which is headquartered in Paoli — was previously approved by each company’s board, and by shareholders this year during each bank’s annual meetings.
In early communications with its customers, Malvern Bank president and CEO Anthony C. Weagley said the merger with First Bank is a “great fit,” and provides an opportunity to enhance the services available to Malvern Bank customers.
First Bank has 18 full-service branches, including four in Pennsylvania — three in Bucks County and one in West Chester. Headquartered in Hamilton, N.J., First Bank had $2.8 billion in assets as of March 31, 2023.
Malvern Bancorp Inc. is the holding company for Malvern Bank, which was founded in 1887 as a federally-chartered savings bank.
In addition to its Paoli headquarters, Malvern Bank operates four banking locations in Chester and Delaware counties as well as locations in Morristown, N.J., and Palm Beach, Fla. Malvern Bank had $996.3 million in assets as of March 31.