Malvern Federal plans to shed mutual holding co. structure
The small community bank intends to convert into a stock holding company and use proceeds from a stock offering increase capital levels.
Malvern Federal Bancorp will alter its ownership structure from one involving a mutual holding company to a stock holding company.
It's a move typical of small banks. Malvern Federal Mutual Holding Co. now owns 55.5 percent of the outstanding shares of Malvern Federal Bancorp. Those two entities will merge, and new holding company created that will sell new shares.
Management said in a statement that the proceeds from the stock offering would "strengthen" the bank's capital levels.
Malvern Federal, which is based in Paoli, operates nine branches in Chester and Delaware Counties.
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