Saturday, February 13, 2016

Malvern bank sells bad loans at a loss

Malvern FSB says it can now make money

Malvern bank sells bad loans at a loss


Malvern Bancorp Inc., the Paoli company which owns Malvern Federal Savings Bank, says it has sold “a substantial portion of its problem loans,” with a face value of $20.4 million, to an unnamed buyer, at a loss of $10 million.

The bank will charge most of this off as losses. Malvern also says it has paid back $20 million in funds advanced by the Federal Home Loan Bank of Pittsburgh, ahead of schedule, for a $1.4 million penalty, in order to reduce its interest payments.

 In a statement, President Ronald Anderson said the bank now meets government capital guidelines, so it will be able to “return to profitability and to grow earnings.”

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About this blog

PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at, 215.854.5194, @PhillyJoeD. Read his blog posts at and his Inquirer columns at Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph N. at or 215 854 5194.

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