Malvern Bancorp, Inc. Reports First Quarter Operating Results


PAOLI, Pa., Feb. 08, 2022 (GLOBE NEWSWIRE) -- Malvern Bancorp, Inc. (NASDAQ: MLVF) (the “Company”), the parent company of Malvern Bank, National Association (the “Bank”), today reported operating results for the first fiscal quarter ended December 31, 2021. Net income for the quarter ended December 31, 2021 amounted to $2.0 million, or $0.27 per fully diluted common share, compared with $2.3 million, or $0.30 per fully diluted common share, for the quarter ended December 31, 2020. Annualized return on average assets (“ROAA”) was 0.69 percent for the quarter ended December 31, 2021, compared to 0.74 percent for the quarter ended December 31, 2020, and annualized return on average equity (“ROAE”) was 5.61 percent for the quarter ended December 31, 2021, compared with 6.38 percent for the quarter ended December 31, 2020.

“I am pleased to report improved business results for the first fiscal quarter versus last quarter, including increases in net income and net interest margin and improvements to other key metrics. We believe the actions taken in the fourth fiscal quarter to improve asset quality were important to managing future risk, protecting capital, and positioning Malvern Bank for future earnings. With continued momentum, we anticipate an upswing in business opportunities and an environment in which businesses can rebound further. We believe we are well positioned for steady and measured growth throughout fiscal year 2022,” commented Anthony C. Weagley, President and Chief Executive Officer.

Statement of Income Highlights at December 31, 2021

  • Net interest margin (“NIM”) increased 16 basis points to 2.78 percent for the quarter ended December 31, 2021, compared to 2.62 percent for the quarter ended December 31, 2020. The increase was driven by a reduction in interest expense, partially offset by a decrease in interest-earning assets.

  • Total interest expense decreased $1.6 million, or 49.4 percent, to $1.7 million for the quarter ended December 31, 2021, compared to $3.3 million for the quarter ended December 31, 2020, which resulted primarily from the reduction of costs on interest-bearing deposits.

  • The Company did not record a provision for loan losses during the quarter ended December 31, 2021, compared to a $550,000 provision for loan losses for the quarter ended December 31, 2020.
      
Linked Quarter Financial Ratios     
 (unaudited)     
      
As of or for the quarter ended:12/31/20219/30/20216/30/20213/31/202112/31/2020
Return on average assets (1)0.69%(2.06%)0.53%0.73%0.74%
Return on average equity (1)5.61%(16.59%)4.35%6.14%6.38%
Net interest margin (1)2.78%2.61%2.70%2.54%2.62%
Loans / deposits ratio95.06%97.41%104.84%108.14%111.33%
Shareholders' equity / total assets12.54%11.76%12.50%12.09%11.73%
Efficiency ratio66.30%68.67%73.62%63.53%58.30%
Book value per common share$18.97$18.65$19.44$19.17$18.83

_____________
(1)  
Annualized.

       
Linked Quarter Income Statement Data      
(unaudited)      
(in thousands, except share and per share data)      
       
For the quarter ended:12/31/20219/30/2021 6/30/20213/31/202112/31/2020
Net interest income$      7,158$      6,825 $      7,129$      6,802$      7,304
Provision for loan losses-10,626 --550
Net interest income (loss) after provision for loan losses7,158(3,801)7,1296,8026,754
Other income727579 7931,1671,224
Other expense5,2285,084 5,8325,0634,972
Income (loss) before income tax expense2,657(8,306)2,0902,9063,006
Income tax expense (benefit)640(2,116)489682733
Net income (loss)$      2,017$    (6,190)$      1,601$      2,224$      2,273
Earnings (loss) per common share      
Basic0.27(0.82)0.210.300.30
Diluted0.27(0.82)0.210.300.30
Weighted average common shares outstanding      
Basic7,551,6067,548,958 7,545,3717,529,4087,525,808
Diluted7,553,2087,550,766 7,546,2007,530,1517,526,376
       

Net Interest Income

Net interest income was $7.2 million for the quarter ended December 31, 2021, a decrease of $146,000, or 2.0 percent, from $7.3 million for the quarter ended December 31, 2020. The decrease reflected a decrease in interest income of $1.8 million, primarily related to loans, partially offset by $1.7 million decrease in interest paid on deposits and borrowings. The average yield on interest-earning assets declined 33 basis points for the quarter ended December 31, 2021, to 3.48 percent when compared to the same period in 2020 primarily due to the decrease in average loan balances and average yield on loans. The average rate on interest-bearing liabilities fell 61 basis points to 0.69 percent compared to the quarter ended December 31, 2020 due to decreases in market rates of interest. The net interest margin increased to 2.78 percent for the quarter ended December 31, 2021 from 2.62 percent for the comparable period in 2020. The margin improvement experienced in the current period in large part reflected the decline in interest-bearing liabilities partially offset by the decline in yield earned on interest-earning assets.

Other Income

Other income decreased $497,000, or 40.6 percent, during the quarter ended December 31, 2021, compared to the quarter ended December 31, 2020. The decrease in other income was primarily due to a decrease in net gains on sale of investments and loans of $707,000 to $52,000 for quarter ended December 31, 2021 compared to $759,000 for the quarter ended December 31, 2020. This decrease was partially offset by an increase in loan fees of $207,000 to $454,000 during quarter ended December 31, 2021, from $247,000 for the quarter ended December 31, 2020.

Other Expense

Other expense for the quarter ended December 31, 2021, increased $256,000 or 5.1 percent, to $5.2 million when compared to the quarter ended December 31, 2020. The increase was primarily due to increases of $392,000 in professional fees associated with additional work related to fiscal year-end September 30, 2021 and the preparation and filing of the Company’s annual report on Form 10-K.

Income Taxes

The Company recorded income tax expense of $640,000 during the quarter ended December 31, 2021, compared to $733,000 for the quarter ended December 31, 2020. The effective tax rate for the Company for the quarters ended December 31, 2021 and December 31, 2020 were 24.1 percent and 24.4 percent, respectively.

Statement of Condition Highlights at December 31, 2021

  • Completion of previously announced sale of three problem loans totaling $18.9 million during the quarter ended December 31, 2021. The Company had previously classified these loans as held-for-sale and marked them to fair value at the fiscal year ended September 30, 2021.
  • Non-performing assets (“NPAs”) were 0.59 percent and 0.72 percent of total assets at December 31, 2021, and September 30, 2021, respectively.
  • Non-performing loans or NPLs were 0.20 percent and 0.40 percent of total loans at December 31, 2021, and September 30, 2021, respectively.
  • Total assets were $1.2 billion at December 31, 2021, a decrease of $55.9 million, or 4.6 percent, compared to September 30, 2021.   The decrease was primarily due to a $44.8 million decline in loans receivable driven by payoffs, paydowns during the quarter and a $19.6 million decrease in loans held-for-sale that were sold during the quarter.
  • Total liabilities were $1.0 billion at December 31, 2021, a decrease of $58.3 million, or 5.5 percent, compared to September 30, 2021. The decrease was primarily due to the repayment of a $30.0 million FHLB advance and a decrease of $25.5 million in total deposits.
  • Book value per common share amounted to $18.97 at December 31, 2021, compared to $18.65 at September 30, 2021.
      
Linked Quarter Statement of Condition Data     
(in thousands, unaudited)     
At the quarter ended:12/31/20219/30/20216/30/20213/31/202112/31/2020
Cash and due from depository institutions$     104,568$       99,670$       90,441$       99,358$       83,764
Interest bearing deposits in depository institutions30,336$       36,92014,5139,55625,458
Investment securities, available for sale, at fair value41,71840,81334,50228,89935,224
Equity Securities1,4911,500
Investment securities held to maturity39,04528,50731,79525,83414,161
Restricted stock, at cost6,2947,7767,8968,8919,327
Loans Held-for-sale13,61633,199
Loans receivable, net of allowance for loan losses858,204902,981940,735974,596990,346
Other real estate owned4,9614,9614,9615,7965,796
Accrued interest receivable3,3943,5123,3703,5984,051
Operating lease right-of-use-assets1,6631,7962,1682,3222,479
Property and equipment, net5,6355,7775,9026,0406,154
Deferred income taxes, net3,4613,5303,3893,5353,601
Bank-owned life insurance26,22426,05625,88925,72525,564
Other assets12,59012,14520,18312,26914,999
Total assets$  1,153,200$  1,209,143$  1,185,744$  1,206,419$  1,220,924
Deposits$     912,688$     938,159$     907,704$     912,213$     900,465
FHLB advances60,00090,00090,000110,000130,000
Other borrowings5,000
Subordinated debt24,97424,93424,89524,85524,816
Operating lease liabilities1,6911,8302,2042,3572,512
Other liabilities9,29012,05212,74911,14314,865
Shareholders’ equity144,557142,168148,192145,851143,266
Total liabilities and shareholders’ equity$  1,153,200$  1,209,143$  1,185,744$  1,206,419$  1,220,924
           


Condensed Consolidated Average Statement of Condition         
(in thousands, unaudited)          
           
For the quarter ended:12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Investment securities$       82,126 $       75,004 $       71,811 $       58,559 $       59,135 
Interest-bearing cash accounts32,775 26,339 16,914 21,506 21,690 
Loans913,587 945,457 967,615 990,913 1,032,483 
Allowance for loan losses(14,157)(11,730)(12,603)(13,037)(12,462)
All other assets163,118 165,439 164,288 165,942 123,919 
Total assets$  1,177,448 $  1,200,509 $  1,208,025 $  1,223,883 $  1,224,765 
Non-interest-bearing deposits54,092 51,534 52,799 50,327 48,152 
Interest-bearing deposits876,270 869,914 868,099 866,153 854,649 
FHLB advances66,848 90,000 99,505 116,889 130,000 
Other short-term borrowings120 - - 3,111 5,918 
Subordinated debt24,952 24,917 24,877 24,835 24,794 
Other liabilities11,407 14,907 15,399 17,751 18,689 
Shareholders’ equity143,760 149,237 147,346 144,817 142,563 
Total liabilities and shareholders’ equity$  1,177,448 $  1,200,509 $  1,208,025 $  1,223,883 $  1,224,765 
                

Deposits

Total deposits decreased $25.5 million, or 2.7 percent, from $938.2 million at September 30, 2021 to $912.7 million at December 31, 2021. The decrease was in the money market and interest-bearing demand categories declining $40.7 million and was driven by the Company’s efforts to reduce higher costing money market funds. The decrease was offset in part by increases in non-interest bearing, savings and time categories of approximately $15.3 million.

The following table reflects the composition of the Company’s deposits as of the dates indicated.

      
(in thousands, unaudited)     
At quarter ended:12/31/20219/30/20216/30/20213/31/202112/31/2020
Demand:     
Non-interest-bearing$        60,320$        53,849$        53,365$        54,210$        49,264
Interest-bearing335,411336,645329,372313,865303,535
Savings56,34250,58251,01149,60146,531
Money market346,023385,480359,040338,100303,796
Time114,592111,603114,916156,437197,339
Total deposits$      912,688$      938,159$      907,704$      912,213$      900,465
           

Loans

Total net loans amounted to $858.2 million at December 31, 2021, compared to $903.0 million at September 30, 2021, resulting in a net decrease of $44.8 million, or 5.0 percent, for the period driven by higher loan payoffs and paydowns during the period primarily in the commercial loan category. Loans held-for-sale amounted to $13.6 million at December 31, 2021, compared to $33.2 million at September 30, 2021. The decline was primarily related to the sale of three commercial loans totaling $18.9 million with no gains or losses recognized on the sale.   Average loan balances for the quarter ended December 31, 2021 totaled $913.6 million as compared to $945.5 million for the quarter ended September 30, 2021, representing a decrease of $31.9 million or 3.4 percent.

At December 31, 2021, gross loans, which excludes loans held-for-sale, remained weighted toward two primary components: the commercial and residential mortgage portfolios, with commercial loans accounting for 69.2 percent and single-family residential real estate loans accounting for 21.6 percent of the gross loan portfolio at such date. Construction and development loans amounted to 6.8 percent and consumer loans represented 2.4 percent of the gross loan portfolio at such date. The decrease in the gross loan portfolio at December 31, 2021, compared to September 30, 2021, primarily reflected decreases of $29.5 million in commercial loans, $11.2 million in residential mortgage loans, and $4.7 million in construction and development loans.

The following table reflects the Company’s loan portfolio composition, excluding loans held-for-sale.

           
(in thousands, unaudited)          
At quarter ended:12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Residential mortgage$     187,516 $     198,710 $     201,737 $     218,165 $     232,481 
Construction and Development:          
Residential and commercial56,876 61,492 61,484 76,257 73,000 
Land2,138 2,204 2,253 3,596 3,648 
Total construction and development59,014 63,696 63,737 79,853 76,648 
Commercial:          
Commercial real estate416,248 426,915 478,032 482,611 478,808 
Farmland15,582 10,297 10,335 7,344 7,378 
Multi-family54,448 66,332 66,725 67,122 67,457 
Commercial and industrial106,493 115,246 97,955 94,706 101,852 
Other7,433 10,954 10,896 9,927 10,010 
Total commercial600,204 629,744 663,943 661,710 665,505 
Consumer:          
Home equity lines of credit13,174 13,491 12,822 15,936 16,389 
Second mortgages5,384 5,884 7,039 8,114 9,097 
Other2,282 2,299 2,372 2,650 2,388 
Total consumer20,840 21,674 22,233 26,700 27,874 
Total loans867,574 913,824 951,650 986,428 1,002,508 
Deferred loan costs, net667 629 685 769 873 
Allowance for loan losses(10,037)(11,472)(11,600)(12,601)(13,035)
Loans Receivable, net$     858,204 $     902,981 $     940,735 $     974,596 $     990,346 
                

At December 31, 2021, the Company had $133.6 million in overall undisbursed loan commitments, which consisted primarily of available usage from active construction facilities, unused commercial lines of credit, and home equity lines of credit.

Asset Quality

Non-accrual loans totaled $1.8 million at December 31, 2021, and $3.7 million at September 30, 2021. The decrease in non-accrual loans was primarily due a partial charge down of $1.4 million related to one non-accrual commercial and industrial loan. This loan had a specific allocation of $1.5 million previously reported at September 30, 2021. The partial charge-off was the result of the ongoing monitoring and evaluation of classified loan values and is reflective of the change in current market and economic conditions of the borrower. Performing troubled debt restructured (“TDR”) loans were $6.2 million at December 31, 2021, and $17.6 million at September 30, 2021. The decrease is primarily related to two TDR commercial real estate loans totaling $11.4 million that were sold during the period, with no gains or losses recognized on the sale, as part of the note sale previously announced and mentioned above.

At December 31, 2021, NPAs totaled $6.8 million, or 0.59 percent of total assets, as compared with $8.7 million, or 0.72 percent of total assets, at September 30, 2021. The decrease in NPAs is due to the decrease in non-accrual loans as described above. Other real estate owned or OREO, which is comprised of one commercial real estate property, totaled $5.0 million for the quarters ended December 31, 2021 and September 30, 2021.

Non-Performing Asset and Other Asset Quality Data:

           
 (dollars in thousands, unaudited)          
As of or for the quarter ended:12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 
Non-accral loans(2)$          1,790 $          3,697 $        23,547 $        22,281 $        16,240 
Loans 90 days or more past due and still accruing- - 212 765 775 
Total non-performing loans1,790 3,697 23,759 23,046 17,015 
OREO4,961 4,961 4,961 5,796 5,796 
Total NPAs$          6,751 $          8,658 $        28,720 $        28,842 $        22,811 
Performing TDR loans$          6,310 $        17,601 $        23,352 $        22,697 $        16,229 
           
NPAs / total assets0.59%0.72%2.42%2.39%1.87%
Non-performing loans / total loans0.21%0.40%2.50%2.34%1.70%
Net charge-off (recoveries)1,436 10,754 1,001 434 (52)
Net charge-offs (recoveries) /average loans(1)0.63%4.55%0.41%0.18%-0.02%
Allowance for loan losses / total loans1.16%1.26%1.22%1.28%1.30%
Allowance for loan losses / non-performing loans560.7%310.3%48.8%54.7%76.6%
           
Total assets1,153,200 1,209,143 1,185,744 1,206,419 1,220,924 
Total gross loans867,574 913,824 951,650 986,428 1,002,508 
Average loans913,587 945,457 967,615 990,913 1,032,483 
Allowance for loan losses10,037 11,472 11,600 12,601 13,035 

_____________
(1)  Annualized.
(2)  Non-accrual loans do not include any loans classified as held-for-sale.

The allowance for loan losses at December 31, 2021 amounted to approximately $10.0 million, or 1.16 percent of total gross loans, compared to $11.5 million, or 1.26 percent of total gross loans, at September 30, 2021. The Company did not record a provision for loan losses for the quarter ended December 31, 2021, compared to $10.6 million provision for loan losses for the quarter ended September 30, 2021. The decrease in the allowance for loan losses of $1.4 million or 12.5 percent reflects the Company’s improved asset quality and, more specifically, improvement in non-performing loans which declined $1.9 million, or 22.0 percent compared to September 30, 2021.

Capital

At December 31, 2021 the Company’s total shareholders’ equity amounted to $144.6 million, or 12.5 percent of total assets, compared to $142.2 million, or 11.8 percent of total assets at September 30, 2021, which continues to exceed all regulatory capital guidelines. At December 31, 2021, the Bank’s common equity Tier 1 capital ratio was 17.14 percent, Tier 1 leverage ratio was 13.61 percent, Tier 1 risk-based capital ratio was 17.14 percent and the total risk-based capital ratio was 18.22 percent. At September 30, 2021, the Bank’s common equity Tier 1 capital ratio was 16.13 percent, Tier 1 leverage ratio was 13.14 percent, Tier 1 risk-based capital ratio was 16.13 percent and the total risk-based capital ratio was 17.32 percent.

About Malvern Bancorp, Inc.

Malvern Bancorp, Inc. is the holding company for Malvern Bank, National Association (“Malvern Bank”), an institution that was originally organized in 1887 as a federally-chartered savings bank. Malvern Bank now serves as one of the oldest banks headquartered on the Philadelphia Main Line. For more than a century, Malvern Bank has been committed to helping people build prosperous communities as a trusted financial partner, forging lasting relationships through teamwork, respect, and integrity.

Malvern Bank conducts business from its headquarters in Paoli, Pennsylvania, a suburb of Philadelphia, and through its nine other banking locations in Chester and Delaware counties, Pennsylvania, Morristown, New Jersey, its New Jersey regional headquarters and Palm Beach Florida. The Bank also maintains representative offices in Wellington, Florida, and Allentown, Pennsylvania.  The Bank’s primary market niche is providing personalized service to its client base. 

Malvern Bank, through its Private Banking division, provides personalized investment advisory services to individuals, families, businesses, and non-profits. These services include banking, liquidity management, investment services, 401(k) accounts and planning, custody, tailored lending, wealth planning, trust and fiduciary services, family wealth advisory services and philanthropic advisory services.

The Bank offers insurance services though Malvern Insurance Associates, LLC, which provides clients a rich array of financial services, including commercial and personal insurance and commercial and personal lending.

For further information regarding Malvern Bancorp, Inc., please visit our web site at http://ir.malvernbancorp.com. For information regarding Malvern Bank, please visit our web site at http://www.mymalvernbank.com.

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company, including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, and shareholder value creation.

Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the effects of, and changes in, trade, monetary and fiscal policies and laws, including changes in interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the impact of competition and the acceptance of the Company’s products and services by new and existing customers; the impact of changes in financial services policies, laws and regulations; technological changes; any oversupply of inventory and deterioration in values of real estate in the markets in which the Company operates, both residential and commercial; the effect of changes in accounting policies and practices, as may be adopted from time-to-time by bank regulatory agencies, the Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible other-than-temporary impairment of securities held by the company; the effects of the Company’s lack of a widely-diversified loan portfolio, including the risks of geographic and industry concentrations; ability to attract deposits and other sources of liquidity; changes in the competitive environment among financial and bank holding companies and other financial service providers; unanticipated regulatory or judicial proceedings; and the Company’s ability to manage the risk involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s Annual Report Filed on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic, including the outbreak of its variants on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus and its variants can be controlled, the effects on general economic conditions, and when and how the economy may be fully reopened, and when and how it will remain as such. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we are subject to any of the following risks, any of which could continue to have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; the economy, and particularly commercial real estate markets may be affected; there may be high levels of unemployment, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; if the economy is unable to continue to substantially reopen, and there are high levels of unemployment for extended periods of time, loan delinquencies, problem assets, and foreclosures may increase resulting in increased charges and reduced income; collateral for loans, especially commercial real estate, may continue to decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; due to fluctuation in interest rates, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our NIM and spread and reducing net income; our cyber security risks are increased as the result of an increase in the number of employees working remotely; and FDIC premiums may increase if the agency experiences additional resolution costs.

The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, unless required by law.

 
MALVERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
        
 December 31, 2021   September 30, 2021 
(in thousands, except for share and per share data)(unaudited)     
ASSETS       
Cash and due from depository institutions$104,568  $99,670 
Interest bearing deposits in depository institutions 30,336   36,920 
Total cash and cash equivalents 134,904   136,590 
Investment securities available for sale, at fair value (amortized cost of $41,810 and $40,756 at December 31, 2021 and September 30, 2021, respectively) 41,718   40,813 
Equity Securities (amortized cost of $1,500 at December 2021 & September 2021) 1,491   1,500 
Investment securities held to maturity (fair value of $39,316 and $28,913 at December 31, 2021 and September 30, 2021, respectively) 39,045   28,507 
Restricted stock, at cost 6,294   7,776 
Loans Held-for-sale 13,616   33,199 
Loans receivable, net of allowance for loan losses ($10,037 at December 2021 & $11,472 at September 2021) 858,204   902,981 
Other real estate owned 4,961   4,961 
Accrued interest receivable 3,394   3,512 
Operating lease right-of-use-assets 1,663   1,796 
Property and equipment, net 5,635   5,777 
Deferred income taxes, net 3,461   3,530 
Bank-owned life insurance 26,224   26,056 
Other assets 12,590   12,145 
Total assets$1,153,200  $1,209,143 
LIABILITIES       
Deposits:       
Non-interest bearing$60,320  $53,849 
Interest-bearing 852,368   884,310 
Total deposits 912,688   938,159 
FHLB advances 60,000   90,000 
Subordinated debt 24,974   24,934 
Advances from borrowers for taxes and insurance 1,583   1,022 
Accrued interest payable 779   572 
Operating lease liabilities 1,691   1,830 
Other liabilities 6,928   10,458 
Total liabilities 1,008,643   1,066,975 
SHAREHOLDERS’ EQUITY       
Common stock, $0.01 par value, 50,000,000 shares authorized; 7,816,832 and 7,621,100 issued and outstanding, respectively, at December 31, 2021, and 7,816,832 and 7,622,316 issued and outstanding, respectively, at September 30, 2021 76   76 
Additional paid in capital 85,599   85,524 
Retained earnings 62,313   60,296 
Unearned Employee Stock Ownership Plan (ESOP) shares (865)  (901)
Accumulated other comprehensive income 297   36 
Treasury stock, at cost: 194,516 shares at December 31, 2021 and September 30, 2021 (2,863)  (2,863)
Total shareholders’ equity 144,557   142,168 
Total liabilities and shareholders’ equity$1,153,200  $1,209,143 


 
MALVERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
      
 Three Months Ended December 31,
(in thousands, except for share data) 2021  2020
(unaudited)     
Interest and Dividend Income     
Loans, including fees$8,228 $10,076
Investment securities, taxable 455  347
Investment securities, tax-exempt 36  24
Dividends, restricted stock 91  141
Interest-bearing cash accounts 13  8
Total Interest and Dividend Income 8,823  10,596
Interest Expense     
Deposits 1,045  2,257
Short-term borrowings -  45
Long-term borrowings 237  607
Subordinated debt 383  383
Total Interest Expense 1,665  3,292
Net interest income 7,158  7,304
Provision for Loan Losses -  550
Net Interest Income after Provision for  7,158  6,754
Loan Losses
Other Income      
Service charges and other fees 454  247
Rental income-other 52  54
Net gains on sale of investments -  355
Net gains on sale of loans 52  404
Earnings on bank-owned life insurance 169  164
Total Other Income 727  1,224
Other Expense     
Salaries and employee benefits 2,295  2,272
Occupancy expense 515  542
Federal deposit insurance premium 76  76
Advertising 32  32
Data processing 320  328
Professional fees 1,055  663
Net other real estate owned expense 5  28
Pennsylvania shares tax 170  170
Other operating expenses 760  861
Total Other Expense 5,228  4,972
Income before income tax expense 2,657  3,006
Income tax expense 640  733
Net Income$2,017 $2,273
Earnings per common share     
Basic$0.27 $0.30
Diluted$0.27 $0.30
Weighted Average Common Shares Outstanding     
Basic 7,551,606  7,525,808
Diluted 7,553,208  7,526,376


 
MALVERN BANCORP, INC. AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
 
            
 Three Months
Ended
  Three Months
Ended
  Three Months
Ended
 
(in thousands, except for share and per share data) (annualized where applicable)  12/31/2021   9/30/2021   12/31/2020 
(unaudited)           
Statements of Operations Data           
Interest income$8,823  $8,862  $10,596 
Interest expense 1,665   2,037   3,292 
Net interest income 7,158   6,825   7,304 
Provision for loan losses -   10,626   550 
Net interest income (loss) after provision for loan losses 7,158   (3,801)  6,754 
Other income 727   579   1,224 
Other expense 5,228   5,084   4,972 
Income (loss) before income tax expense (benefit) 2,657   (8,306)  3,006 
Income tax expense (benefit) 640   (2,116)  733 
Net income (loss)$2,017  $(6,190) $2,273 
Earnings (loss) per Common Share           
Basic$0.27  $(0.82) $0.30 
Diluted$0.27  $(0.82) $0.30 
Statements of Condition Data (Period-End)           
Equity Securities$1,491  $1,500  $1,520 
Investment securities available for sale, at fair value$41,718  $40,813  $33,704 
Investment securities held to maturity (fair value of $39,316, $28,913,  and $14,745, respectively) 39,045   28,507   14,161 
Loans Held-for-sale 13,616   33,199   - 
Loans, net of allowance for loan losses 858,204   902,981   990,346 
Total assets 1,153,200   1,209,143   1,220,924 
Deposits 912,688   938,159   900,465 
FHLB advances 60,000   90,000   130,000 
Subordinated debt 24,974   24,934   24,816 
Shareholders' equity 144,557   142,168   143,266 
Common Shares Dividend Data            
Cash dividends$-  $-  $- 
Weighted Average Common Shares Outstanding           
Basic 7,551,606   7,537,408   7,525,808 
Diluted 7,553,208   7,538,116   7,526,376 
Operating Ratios           
Return on average assets 0.69%  (2.06%)  0.74%
Return on average equity 5.61%  (16.59%)  6.38%
Average equity / average assets 12.21%  12.43%  11.64%
Book value per common share (period-end)$           18.97  $           18.65  $           18.83 
Non-Financial Information (Period-End)           
Common shareholders of record 376   379   388 
Full-time equivalent staff 79   81   80 


Investor Contacts:
Joseph D. Gangemi
Corporate Investor Relations
610-695-3676

Investor Relations Contact:
Nathanial Jordan
610-695-3646