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 |
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(unaudited) |
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| 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 |
_____________(1) Annualized.
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Linked Quarter Income Statement
Data |
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(unaudited) |
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| (in thousands, except
share and per share data) |
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| For the quarter
ended: |
12/31/2021 |
9/30/2021 |
|
6/30/2021 |
3/31/2021 |
12/31/2020 |
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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 |
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Basic |
0.27 |
(0.82 |
) |
0.21 |
0.30 |
0.30 |
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Diluted |
0.27 |
(0.82 |
) |
0.21 |
0.30 |
0.30 |
| Weighted average common shares
outstanding |
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Basic |
7,551,606 |
7,548,958 |
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7,545,371 |
7,529,408 |
7,525,808 |
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Diluted |
7,553,208 |
7,550,766 |
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7,546,200 |
7,530,151 |
7,526,376 |
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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.
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Linked Quarter Statement of Condition Data |
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| (in thousands,
unaudited) |
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| 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 |
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(in thousands, unaudited) |
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| For the quarter
ended: |
12/31/2021 |
|
9/30/2021 |
|
6/30/2021 |
|
3/31/2021 |
|
12/31/2020 |
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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 |
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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 |
|
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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.
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(in thousands, unaudited) |
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| At quarter
ended: |
12/31/2021 |
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
| Demand: |
|
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|
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.
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(in thousands, unaudited) |
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| 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: |
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|
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|
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 |
|
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Commercial: |
|
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|
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: |
|
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|
|
|
|
|
|
|
|
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.
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:
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|
(dollars in thousands, unaudited) |
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| 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 |
|
_____________(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 MonthsEnded |
|
|
Three MonthsEnded |
|
|
Three MonthsEnded |
|
|
(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.
GangemiCorporate Investor Relations610-695-3676
Investor Relations
Contact:Nathanial Jordan610-695-3646
Malvern Bancorp (NASDAQ:MLVF)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Malvern Bancorp (NASDAQ:MLVF)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
