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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