Malvern Bancorp, Inc. to Record Loan Impairment in Fourth Position
PAOLI, Pa., November 5, 2021 (GLOBE NEWSWIRE) – Malvern Bancorp, Inc. (the âCompanyâ) (Nasdaq: MLVF), the holding company of Malvern Bank, National Association (the âBankâ), has announced that it sold some problematic loans to a single investor. Specifically, the Company sold three loans with a book balance of $ 29.3 million with a write-down of approximately $ 10.4 million. Loans sold included approximately $ 12.2 million of unearned loans and $ 17.1 million of distressed debt restructurings. The Company classified the loans as âheld for saleâ as at September 30, 2021, after making write-downs to reflect the anticipated selling price of these loans.
Including the impairment, the Company expects to record an allowance for losses on loans and leases of approximately $ 10.6 million in the quarter ended September 30, 2021. Consequently, the sale of the loan will have a material negative impact on the earnings of the Company for the quarter and fiscal year. closed on September 30, 2021.
The Bank’s regulatory capital will continue to exceed all the requirements applicable on September 30, 2021 after giving effect to the elements described herein.
About Malvern Bancorp, Inc.
Malvern Bancorp, Inc. is the holding company of Malvern Bank, National Association (“Malvern Bank”), an institution which was originally organized in 1887 as a federally chartered savings bank. Malvern Bank is now one of the oldest banks headquartered on the Philadelphia Mainline. For over 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 operates from its head office in Paoli, Pennsylvania, a suburb of Philadelphia, and through its nine other banking sites in Chester and Delaware counties, Pa., Morristown, New Jersey , its regional headquarters in New Jersey and Palm Beach, Florida. Malvern Bank also has representative offices in Wellington, Florida, and Allentown, Pennsylvania. Malvern Bank’s main market niche is to provide personalized service to its customers.
Malvern Bank, through its Private Banking division and a strategic partnership with Bell Rock Capital in Rehoboth Beach, Delaware, provides personalized investment advisory services to individuals, families, businesses and non-profit organizations . These services include banking services, liquidity management, investment services, 401 (k) accounts and planning, custody, tailor-made loans, wealth planning, trust and trust services, advisory services. in family patrimony and philanthropic advisory services.
Malvern Bank provides insurance services through Malvern Insurance Associates, LLC, which provides its clients with a wide range of financial services, including business and personal insurance, and business and personal loans.
For more information about Malvern Bancorp, Inc., please visit our website at http://ir.malvernbancorp.com. For more information about Malvern Bank, please visit our website at http://www.mymalvernbank.com.
Statements contained in this document that are not historical facts are forward-looking statements based on management’s current expectations and beliefs regarding future developments and their potential effects on the Company, including, without limitation, plans, strategies and objectives, and statements regarding the Company’s expectations regarding income and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, and creation of shareholder value.
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, implied or projected by these forward-looking statements. These risks and uncertainties include, without limitation, the following: the effects and changes in trade, monetary and fiscal policies and laws, including recent changes in the interest rate policies of the Board of Governors of the System of federal reserve; inflation, interest rates, market and currency 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 excess supply of inventory and deterioration in the value 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 banking regulators, the Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standard setters; any lasting depreciation of the securities we hold; the effects of the Company’s lack of a broadly diversified loan portfolio, including the risks of geographic and sector concentrations; ability to attract deposits and other sources of liquidity; changes in the competitive environment between financial and banking holding companies and other financial service providers; unforeseen regulatory or legal 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 forward-looking statements are discussed in the Company’s 2020 Annual Report on Form 10-K / A and Quarterly Reports on Form 10-Q filed. with the SEC and available on the SEC website (http://www.sec.gov).
Additionally, given its continuous and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of this impact will depend on future developments, which are highly uncertain, including when the coronavirus and its variants can be controlled and mitigated and when and how the economy can be fully reopened. As a result of the COVID-19 pandemic and the resulting adverse local and national economic consequences, we are subject to one of the following risks, each of which could continue to have a material adverse effect on our business, financial condition , our liquidity, and operating results: demand for our products and services may decline, making it difficult to grow assets and revenues; If the economy is unable to continue to substantially reopen and high levels of unemployment persist for an extended period of time, loan delinquencies, problematic assets and foreclosures may increase, leading to increased charges and lower income ; collateral for loans, especially real estate, may continue to depreciate, which could lead to increased loan losses; our allowance for loan losses may increase if borrowers experience financial difficulty, which will adversely affect our net income; the equity and liquidity of loan guarantors may decline, compromising their ability to honor their commitments to us; Due to the fall in the Federal Reserve’s target federal funds rate to nearly 0%, the return on our assets could decline more than the decrease in the cost of our interest-bearing debt, which would reduce our net interest margin and our margin and reduce net income; our cybersecurity risks are increased due to the increase in the number of employees working remotely; and FDIC premiums may increase if the agency incurs additional resolution fees.
The Company assumes no obligation to revise or publish any revision or update of these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law. required.
Joseph D. Gangemi
Executive Vice President and Chief Financial Officer