In our local area, Penn Security has offered fiduciary and investment management services for over three quarters of a century. As an independent bank, we plan to continue adhering to those successful principles applied in the past and incorporate the new during the years ahead.

We would be happy to help you identify your goals and to work with you in reaching them. You can start by calling the Bank and one of our Trust Officers will be pleased to arrange an appointment at your convenience, either in our office, your office or your home.

The following are the major areas in which we perform these services.  We, of course, are willing to discuss other services with you even if not listed here.  We want your business and pledge to you we will do an excellent job.

Corporate Trusts

We act as Trustee and Paying Agent for Corporate and Municipal Bond Issues, as well as fiscal and financial agent for governmental authorities.

Counseling and Estate Planning

Penn Security's highly qualified Trust staff stands ready to assist you in making your financial arrangements and to work with you alone, or with your attorney and your accountant in arriving at the best plan for you.

Custodial /Investment Advisory Services

Penn Security's Trust Department will hold your assets and investments for you, handling the cumbersome bookkeeping transactions and the purchases and sales you instruct us to make; or if you desire we can also handle the investing for you, or provide you with investment advice.

We have a self-managed daily money market fund which "sweeps" all uninvested cash on a daily basis for investment. Likewise, redemptions from the fund are available on a daily basis.

The Bank, as a matter of course, insures its customer's securities deposited with it, and our more than $42 million in capital stands in back of our obligations to you.

Escrow Services

The Trust Department will act as Escrow Agent for individuals as well as corporations to achieve the goals of those involved.

Estate Administration

Penn Security's Trust Department will act as the personal representative of the deceased person, or act as Agent for the Executor, whose busy schedule may not allow time for the many details which must be handled. During estate administration, numerous problems are faced and decisions made which have a significant effect on the beneficiaries of an estate. These include the sale or retention of assets, investment of funds, preparation and filing in court of accounts, preparation and filing of federal and state income, estate, and inheritance tax returns, and determining who pays taxes due and who is entitled to distribution from the estate.

With the increasing complexity of the financial markets, tax laws and fiduciary responsibilities, an experienced administrator can provide assurance the estate will be handled in a manner so as to minimize taxes and maximize the amount passing to the beneficiaries.

Normal banking audits and examinations by the F.D.I.C. and the Pa. Dept. of Banking as well as Penn Security's full time audit staff and our annual full audit by our external CPA firm assure the customer that the estate will be handled properly. In the event that we are acting as Agent for the Executor, the Bank, not the Executor, will deal with the beneficiaries.

In addition, with a bank named as Executor, you will be assured now that at the time of your death, the Bank will be there to act. A person named as an Executor may or may not be living or able to properly administer your estate.

Guardianships

If appointed by a will or by the court, the Estate of the incompetent or minor will receive asset management and administration services necessary to the preservation and eventual distribution of such assets.

Penn Security handles all types of guardianships of incompetent's and minor's estates.

Life Insurance Trusts

Life Insurance Trusts provide a simple flexible way to increase the protection provided by your life insurance policies. The proceeds are made payable to the Bank as Trustee and are administered by the Bank in accordance with the provisions in the trust agreement.

In addition, the proceeds of the policies pass outside of the estate and avoid probate costs as a result. By making the trust irrevocable, important savings can also be realized in taxes.

Living Trusts

A Living Trust is simply an asset management plan tailored to your specific needs to benefit you in your lifetime and help you to provide for your family's welfare in years to come after you are gone.

With a Living Trust, you can also avoid probate expenses as well as notariety, and depending on the distribution scheme, also save on taxes.

Pension and Profit Sharing Plans

We act as Trustee for pension and profit sharing plans for employees including HR-10 and 401K Plans. We work with you and your actuary or plan specialist, CPA or attorney in setting up the plan, or you can choose from a variety of plans for which we have prior approval. We manage the assets, pay the retirees and their beneficiaries and account to the plan administrator.

These plans can provide tremendous tax advantages in the sheltering of income on retirement savings from taxes until the funds are paid after retirement.

We are also in the business of offering advice to retirees receiving distributions with regard to the different options they have to choose from and the resulting tax consequences.
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IRA

We act as custodian for your IRA.

Trustee Under A Will

Many times it is beneficial to leave assets in trust rather than outright. Our Bank's Trust Department will be here when you are not, and you can be sure that we will carry out your wishes and intentions according to the provisions of your will.

Examples of trusts under a will include Charitable Remainder Trusts, Annuity and Uni-Trusts, whereby the Estate saves on taxes because of the charitable deduction, and the life beneficiary benefits because the tax reduction leaves more funds to invest, as well as a Marital Deduction Trust, which protects the spouse and at the same time reduces taxes.

Trust Personnel

The quality of personnel is of particular importance in selecting a Trust Company to handle a person's affairs. Penn Security is blessed with people of outstanding caliber, who form the nucleus of its first-rate Trust Department.

William J. Calpin, Jr., Senior Vice President and Trust Officer, joined Penn Security in April 2000.  Mr. Calpin, who is an MBA, is a graduate of the Central Atlantic School of Trust, the National Graduate School of Trust and is a Certified Financial Planner.  He has twenty-seven years experience in Trust Banking.  He is the manager of Trust Administration.

Michael Ostermayer, Vice President and Chief Trust Investment Officer, is a Chartered Financial Analyst with over twenty years of experience in the trust and investment management field. He is a member of the Financial Analysts of Philadelphia among other community activities. Michael joined the bank in 2001.

Carol Curtis McMullen has been with the bank since 1978 and joined the Trust Department in 1982.  She is a graduate of the Central Atlantic School of Trust and the National Graduate Trust School and holds an MBA in Finance.

Robert McDonald, CPA, joined the bank staff in 1999.  He holds an MBA in Finance and a Masters degree in Taxation. He has over fifteen years banking experience and serves as the Trust Tax Officer.

The combination of this talent assures you of a most careful and competent handling of your affairs.

Schedule of Rates and Charges

Trust Department charges for their services are generally based upon a certain percentage of assets and/or income on the account. These charges are generally absorbed by the differences obtained on interest rates and brokerage fees, as well as the expert and continual professional monitoring of the portfolio. A written summary of the charges is available from the Trust Department on request.

These charges change from time to time and all Trust Department charges are based on the rate in effect at the time the service is performed.