Thursday, November 27, 2014
Inquirer Daily News

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.”

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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