The Paoli-based Malvern Bancorp, parent company of Malvern Federal Savings Bank, has reported operating results for the first fiscal quarter ended Dec. 31, 2016. Net income amounted to $1.2 million, or $0.18 per fully diluted common share, for the quarter ended Dec. 31, 2016, a decrease of $174,000, or 13.0 percent, as compared with net income of $1.3 million, or $0.21 per common share, for the quarter ended Dec. 31, 2015.
Results for the quarter ended Dec. 31, 2015 were favorably impacted by the tax position of the company prior to the full recognition of the bank’s deferred tax asset as of Sept. 30, 2016. On a fully taxable basis, net income for the quarter ended Dec. 31, 2015 would have been $1.1 million, and earnings per share for the quarter ended Dec. 31, 2015 would have been $0.17.
“Thanks to the consistent effort of our talented management team across the organization, the company produced another quarter of profitability driven by asset deployment of new loans,” said President and CEO Anthony C. Weagley. “The bank is creating value from the benefits resulting from all the hard work from the past.
“We’re improving in nearly every measure of profitability and asset quality. We have tremendous momentum.”
Joe Gangemi, Chief Financial Officer said, “in addition to our focus on revenue growth, the company remains committed to the disciplined management of operating expenses, continued resolution of legacy special assets, prudent underwriting of new loans, and conservative asset liability management. We remain well capitalized and are eager to grow customer relationships throughout our markets.”
Highlights for the quarter include:
- The Company originated $133.2 million in new loans in the first quarter of fiscal 2017, which was offset in part by $37.9 million in participations, payoffs, prepayments and maturities from its portfolio, resulting in net portfolio growth of $95.3 million.
- Book value per common share amounted to $14.59 at Dec. 31, 2016, compared to $12.60 at Dec. 31, 2015 and $14.42 at Sept. 30, 2016.
- The company’s balance sheet reflected total asset growth of $57.7 million at Dec. 31, 2016, compared to Sept. 30, 2016, coupled with stable asset quality, and capital levels that exceeded regulatory standards for a well-capitalized institution.