Malvern Bancorp : Reports First Quarter Operating Results – Form 8-K







Malvern Bancorp, Inc. Reports First Quarter Operating Results

PAOLI, PA., February 8, 2022 – 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.

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Linked Quarter Financial Ratios

(unaudited)

As of or for the quarter ended:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

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 ratio

95.06

%

97.41

%

104.84

%

108.14

%

111.33

%

Shareholders’ equity / total assets

12.54

%

11.76

%

12.50

%

12.09

%

11.73

%

Efficiency ratio

66.30

%

68.67

%

73.62

%

63.53

%

58.30

%

Book value per common share

$

18.97

$

18.65

$

19.44

$

19.17

$

18.83

Linked Quarter Income Statement Data

(unaudited)

(in thousands, except share and per share data)

For the quarter ended:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

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 losses

7,158

(3,801

)

7,129

6,802

6,754

Other income

727

579

793

1,167

1,224

Other expense

5,228

5,084

5,832

5,063

4,972

Income (loss) before income tax expense

2,657

(8,306

)

2,090

2,906

3,006

Income tax expense (benefit)

640

(2,116

)

489

682

733

Net income (loss)

$

2,017

$

(6,190

)

$

1,601

$

2,224

$

2,273

Earnings (loss) per common share

Basic

0.27

(0.82

)

0.21

0.30

0.30

Diluted

0.27

(0.82

)

0.21

0.30

0.30

Weighted average common shares outstanding

Basic

7,551,606

7,548,958

7,545,371

7,529,408

7,525,808

Diluted

7,553,208

7,550,766

7,546,200

7,530,151

7,526,376

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.

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Income Taxes

TheCompanyrecorded income tax expense of $640,000 during the quarter ended December 31, 2021, compared to $733,000 for the quarter ended December 31, 2020.TheeffectivetaxratefortheCompanyforthe quarters ended December 31, 2021 and December 31, 2020were 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:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

Cash and due from depository institutions

$

104,568

$

99,670

$

90,441

$

99,358

$

83,764

Interest bearing deposits in depository institutions

30,336

$

36,920

14,513

9,556

25,458

Investment securities, available for sale, at fair value

41,718

40,813

34,502

28,899

35,224

Equity Securities

1,491

1,500

Investment securities held to maturity

39,045

28,507

31,795

25,834

14,161

Restricted stock, at cost

6,294

7,776

7,896

8,891

9,327

Loans Held-for-sale

13,616

33,199

Loans receivable, net of allowance for loan losses

858,204

902,981

940,735

974,596

990,346

Other real estate owned

4,961

4,961

4,961

5,796

5,796

Accrued interest receivable

3,394

3,512

3,370

3,598

4,051

Operating lease right-of-use-assets

1,663

1,796

2,168

2,322

2,479

Property and equipment, net

5,635

5,777

5,902

6,040

6,154

Deferred income taxes, net

3,461

3,530

3,389

3,535

3,601

Bank-owned life insurance

26,224

26,056

25,889

25,725

25,564

Other assets

12,590

12,145

20,183

12,269

14,999

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 advances

60,000

90,000

90,000

110,000

130,000

Other borrowings

5,000

Subordinated debt

24,974

24,934

24,895

24,855

24,816

Operating lease liabilities

1,691

1,830

2,204

2,357

2,512

Other liabilities

9,290

12,052

12,749

11,143

14,865

Shareholders’ equity

144,557

142,168

148,192

145,851

143,266

Total liabilities and shareholders’ equity

$

1,153,200

$

1,209,143

$

1,185,744

$

1,206,419

$

1,220,924

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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 accounts

32,775

26,339

16,914

21,506

21,690

Loans

913,587

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 assets

163,118

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 deposits

54,092

51,534

52,799

50,327

48,152

Interest-bearing deposits

876,270

869,914

868,099

866,153

854,649

FHLB advances

66,848

90,000

99,505

116,889

130,000

Other short-term borrowings

120

3,111

5,918

Subordinated debt

24,952

24,917

24,877

24,835

24,794

Other liabilities

11,407

14,907

15,399

17,751

18,689

Shareholders’ equity

143,760

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

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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:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

Demand:

Non-interest-bearing

$

60,320

$

53,849

$

53,365

$

54,210

$

49,264

Interest-bearing

335,411

336,645

329,372

313,865

303,535

Savings

56,342

50,582

51,011

49,601

46,531

Money market

346,023

385,480

359,040

338,100

303,796

Time

114,592

111,603

114,916

156,437

197,339

Total deposits

$

912,688

$

938,159

$

907,704

$

912,213

$

900,465

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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 commercial

56,876

61,492

61,484

76,257

73,000

Land

2,138

2,204

2,253

3,596

3,648

Total construction and development

59,014

63,696

63,737

79,853

76,648

Commercial:

Commercial real estate

416,248

426,915

478,032

482,611

478,808

Farmland

15,582

10,297

10,335

7,344

7,378

Multi-family

54,448

66,332

66,725

67,122

67,457

Commercial and industrial

106,493

115,246

97,955

94,706

101,852

Other

7,433

10,954

10,896

9,927

10,010

Total commercial

600,204

629,744

663,943

661,710

665,505

Consumer:

Home equity lines of credit

13,174

13,491

12,822

15,936

16,389

Second mortgages

5,384

5,884

7,039

8,114

9,097

Other

2,282

2,299

2,372

2,650

2,388

Total consumer

20,840

21,674

22,233

26,700

27,874

Total loans

867,574

913,824

951,650

986,428

1,002,508

Deferred loan costs, net

667

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.

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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 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 loans

1,790

3,697

23,759

23,046

17,015

OREO

4,961

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 assets

0.59

%

0.72

%

2.42

%

2.39

%

1.87

%

Non-performing loans / total loans

0.21

%

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 loans

1.16

%

1.26

%

1.22

%

1.28

%

1.30

%

Allowance for loan losses / non-performing loans

560.7

%

310.3

%

48.8

%

54.7

%

76.6

%

Total assets

1,153,200

1,209,143

1,185,744

1,206,419

1,220,924

Total gross loans

867,574

913,824

951,650

986,428

1,002,508

Average loans

913,587

945,457

967,615

990,913

1,032,483

Allowance for loan losses

10,037

11,472

11,600

12,601

13,035

(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.

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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).

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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.

-9-

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

-10-

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 Loan Losses

7,158

6,754

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

-11-

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

-12-

Disclaimer

Malvern Bancorp Inc. published this content on 09 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2022 18:38:02 UTC.

Publicnow 2022

All news about MALVERN BANCORP, INC.

Sales 2022 28,3 M

Net income 2022 6,83 M

Net Debt 2022

P/E ratio 2022 18,2x
Yield 2022
Capitalization 125 M
125 M
Capi. / Sales 2022 4,41x
Capi. / Sales 2023 4,31x
Nbr of Employees 81
Free-Float 92,2%

Chart MALVERN BANCORP, INC.



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Malvern Bancorp, Inc. Technical Analysis Chart | MarketScreener

Technical analysis trends MALVERN BANCORP, INC.

Short Term Mid-Term Long Term
Trends Bullish Bearish Bearish



Income Statement Evolution

Sell

Buy

Mean consensus HOLD
Number of Analysts 1
Last Close Price
16,55 $
Average target price
18,00 $
Spread / Average Target 8,76%


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