Lincoln Park Bancorp (LPBC)

Description:

Lincoln Park Bancorp is a federally chartered corporation which was organized in 2004 as part of the mutual holding company reorganization of Lincoln Park Savings Bank. Its principal asset is its investment in Lincoln Park Savings Bank. The Company is a majority owned subsidiary of Lincoln Park Bancorp, MHC. Lincoln Park Savings Bank is a New Jersey chartered savings bank headquartered in Lincoln Park, New Jersey. Lincoln Park Savings was originally founded in 1923. In connection with and prior to the mutual holding company reorganization, Lincoln Park Savings Bank completed its conversion from a New Jersey chartered savings and loan association to a New Jersey chartered savings bank. LPS Investment Company is the Bank's wholly owned subsidiary. LPS Investment Company was recently formed as an operating subsidiary of the Bank for the purpose of investing in stocks, bonds, mortgages, and other securities, limited to the types of securities in which the Bank is authorized to invest. The main principal business activity is the origination of mortgage loans secured by one- to four-family residential real estate and consumer loans consisting mainly of home equity loans and home equity lines of credit. It also originates loans secured by multi-family and commercial real estate and, to a lesser extent, construction loans, and small business loans and lines of credit. It also invests in mortgage-backed and investment securities. The Bank offers a variety of deposit accounts, including demand deposits, savings and club accounts and certificates of deposit. The principal lending activity has been the origination of first mortgage loans for the purchase or refinancing of one- to four-family residential real property. The lending activity consists of the origination of one- to four-family residential mortgage loans that are mainly secured by properties located in Morris and Passaic Counties. The Bank originates its fixed-rate loans in conformity with Freddie Mac guidelines. The Bank also offer adjustable-rate mortgage loans for one- to four-family properties with an interest rate based on the United States Treasury index. The interest rates on these loans adjust annually or every three years from the outset of the loan or adjust annually after a five-, seven- or ten-year initial fixed rate period. The Bank currently offers adjustable-rate and fixed-rate residential construction loans for the construction of owner-occupied, single-family residences. These loans generally are offered to borrowers who have a contract for construction of a single family residence on property they own at the time of the loan origination. Construction loans generally have terms of nine months to one year, but typically are structured to become permanent mortgage loans once construction is completed. The Bank has authority to make secured and unsecured commercial business loans, and have closed four commercial loans to local small businesses. The Company faces intense competition within its market area both in making loans and attracting deposits. Lincoln Park Savings is subject to extensive regulation, examination and supervision by the Commissioner of the New Jersey Department of Banking and Insurance as the issuer of its charter, and by the Federal Deposit Insurance Corporation as the deposit insurer. Lincoln Park Bancorp is subject to comprehensive regulation and examination by the Office of Thrift Supervision. Lincoln Park Savings is subject to comprehensive regulation and examination by the Commissioner of Banking and Insurance of the State of New Jersey and the Federal Deposit Insurance Corporation, and are a member of the Federal Home Loan Bank system.