The merger between Paoli-based Malvern Bancorp, the parent company of Malvern Bank, National Association, and New Jersey–based First Bank recently received regulatory approval.
The Federal Deposit Insurance Corporation, the New Jersey Department of Banking and Insurance and the Pennsylvania Department of Banking and Securities gave their approval. The Board of Governors of the Federal Reserve System gave their non-objection.
Under the terms of the proposed merger, First Bank will acquire Malvern Bancorp and its wholly-owned subsidiary, Malvern Bank, for a combination of cash and stock.
The merger is expected to be completed mid-month.
Once completed, First Bank will expand its market position and deposit share in eastern Pennsylvania, expand its service area, and use high-quality and low-risk transactions to build size and scale, Patrick L. Ryan, First Bank President and CEO, said when the merger was announced in December.
The merger also will strengthen First Bank’s balance sheet through loan portfolio diversification and provides expanded access to cost-effective deposits, Ryan said.
Malvern Bank believes the merger will benefit its customers.
First Bank operates 18 full-service branches in New Jersey and Pennsylvania. It has $2.8 billion in assets.
Malvern Bancorp has banking locations in Pennsylvania, New Jersey and Florida. It has $996.3 million in assets.