PAOLI, Pa., Jan. 31, 2019 (GLOBE NEWSWIRE) — Malvern Bancorp, Inc. (NASDAQ: MLVF) (the “Company”), parent company of Malvern Bank, National Association (“Malvern” or the “Bank”), today reported operating results for the first fiscal quarter ended December 31, 2018. Net income amounted to $2.0 million, or $0.27 per fully diluted common share, for the quarter ended December 31, 2018, compared with net income of $403,000, or $0.06 per fully diluted common share, for the quarter ended December 31, 2017.
Net income for the first quarter of 2019 included additional provision for loan losses expense of $967,000, net of tax, related to the write-down of one commercial loan that was moved from troubled debt restructured (‘TDR’) to other real estate owned (“OREO”), and non-core items, as discussed in detail on page 12. Excluding the additional provision expense and non-core items, net income was $3.2 million, or $0.42 diluted earnings per share, for the three months ended December 31, 2018, as compared to $2.7 million, or $0.41 diluted earnings per share, for the three months ended September 30, 2018, and $1.7 million, or $0.26 diluted earnings per share, for the three months ended December 31, 2017.
The Company recognized a tax expense in our tax provision for the quarter ended December 31, 2017 related to adjusting our deferred tax balance to reflect a change in the federal statutory rate from 35% to 21%, resulting from the Tax Cuts and Jobs Act (“Tax Act”) that was enacted on December 22, 2017. Income tax expense reported for the first three months of the Company’s prior fiscal year gave effect to the change in the tax law which resulted in an increase in income tax expense of $2.0 million during the quarter ended December 31, 2017.
Management believes that core net income, a non-GAAP measure, is important in evaluating the Company’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in this earnings release.
Excluding the additional provision expense, first quarter 2019 adjusted annualized return on average assets was 1.10% and adjusted annualized return on average equity was 8.89%. For the quarter ended December 31, 2018, annualized return on average assets was 0.74% and annualized return on average equity was 6.00%.
Anthony C. Weagley, President and CEO, commented on the financial results: “We are pleased with this quarter’s results and the continued success in achieving our strategic plan. We continue to deliver results consistent with our strategic plan. Despite the hurdles experienced during the quarter, Malvern continued to strengthen its balance sheet, grow top line revenue and improve credit quality. While we took on an REO property during the quarter, we see this as a positive step in securing our interest through the deed in lieu process. Acting quickly and gaining control of the asset was critical and should aid in the quick disposal of the asset. Our board and management have the necessary real estate expertise and sense of urgency to effect a quick disposal and are in the process of marketing the property.”
“Our credit quality continues to improve and loan growth remains strong with gross new originations of approximately $65 million during the quarter. As a result of delays, due to the holiday season, approximately $25.0 million of new originations approved in December were pushed into the second fiscal quarter with an additional $50.0 million in new originations currently approved and pending settlement, also expected to close during the second fiscal quarter. Our pipelines remain strong and are actively growing, consistent with prior periods.”
Joseph Gangemi, Chief Financial Officer of Malvern Bancorp, Inc., added, “We experienced strong deposit growth during the quarter, reflective of our funding strategies and business development efforts. We anticipate these funds being deployed into loans during the second fiscal quarter but will note that carrying the excess cash on our balance sheet had an 11 basis point dampening effect on the margin for the first quarter.”
Highlights for the quarter include:
- The annualized return on average assets (“ROAA”) was 0.74 percent for the three months ended December 31, 2018, compared to 0.15 percent for the three months ended December 31, 2017, and annualized return on average equity (“ROAE”) was 6.00 percent for the three months ended December 31, 2018, compared with 1.55 percent for the three months ended December 31, 2017. Excluding the additional provision expense, first quarter 2019 adjusted annualized return on average assets was 1.10% and adjusted annualized return on average equity was 8.89%.
- The Company originated $64.7 million in new loans in the first quarter of fiscal 2019, which was offset in part by $41.9 million in participations, payoffs, prepayments and maturities from its portfolio, resulting in net portfolio growth of $22.8 million over the fourth quarter of fiscal 2018; new loan originations in the first quarter of fiscal 2019 consisted of $51.3 million in commercial loans, $5.6 million in residential mortgage loans, $5.4 million in construction and development loans and $2.4 million in consumer loans.
- Non-performing assets (“NPAs”) were 0.81 percent of total assets at December 31, 2018, compared to 0.30 percent at September 30, 2018 and 0.24 percent at December 31, 2017. The allowance for loan losses as a percentage of total non-performing loans was 278.4 percent at December 31, 2018, compared to 294.7 percent at September 30, 2018 and 326.1 percent at December 31, 2017.
- The Company’s ratio of shareholders’ equity to total assets was 12.02 percent at December 31, 2018, compared to 10.72 percent at September 30, 2018, and 9.76 percent at December 31, 2017.
- Book value per common share amounted to $17.45 at December 31, 2018, compared to $16.84 at September 30, 2018 and $15.70 at December 31, 2017. The efficiency ratio, a non-GAAP measure, was 48.1 percent for the first quarter of fiscal 2019, compared to 58.3 percent for the fourth quarter of fiscal 2018 and 64.0 percent in the first quarter of fiscal 2018.
- The Company’s total assets increased by $94.5 million at December 31, 2018, compared to September 30, 2018 coupled with stable asset quality, and capital levels that exceeded regulatory standards for a well-capitalized institution.
- As previously disclosed in the Company’s Form 8-K filed on October 9, 2018, the Company closed an underwritten public offering of shares of our common stock for gross proceeds of $25.0 million and net proceeds of approximately $23.4 million (after deducting the underwriting discount and other estimated offering expenses).
- The effective tax rate for the first quarter of 2019 decreased to 21.0% from 88.9% for the first quarter of 2018. In the first quarter of fiscal 2018, the Company revised its estimated annual effective rate to reflect a change in the federal statutory rate from 35% to 21%, resulting from the Tax Cuts and Jobs Act that was enacted on December 22, 2017. In addition, we recognized a tax expense in our tax provision for the quarter ended December 31, 2017 related to adjusting our deferred tax balance to reflect the new corporate tax rate. Income tax expense reported for the first three months of fiscal 2018 reflected the effects of the change in the tax law and resulted in an increase in income tax expense of $2.0 million during the quarter ended December 31, 2017. This $2.0 million amount was the result of a reduction of $323,000 in income tax expense for the three-month period ended December 31, 2017 related to the lower corporate rate and a $2.3 million increase related to the application of the newly enacted rates to existing deferred tax assets balances.
| Selected Financial Ratios | |||||
| (unaudited; annualized where applicable) | |||||
| As of or for the quarter ended : | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 |
| Return on average assets (1) | 0.74% | 1.02% | 0.85% | 0.77% | 0.15% |
| Return on average equity (1) | 6.00% | 9.63% | 8.40% | 7.71% | 1.55% |
| Net interest margin (tax equivalent basis) (2) | 2.65% | 2.85% | 2.75% | 2.58% | 2.47% |
| Loans / deposits ratio | 110.70% | 117.62% | 114.46% | 102.38% | 102.19% |
| Shareholders’ equity / total assets | 12.02% | 10.72% | 10.25% | 9.73% | 9.76% |
| Efficiency ratio (1) | 48.1% | 58.3% | 52.9% | 57.9% | 64.0% |
| Book value per common share | $17.45 | $16.84 | $16.42 | $16.03 | $15.70 |
_____________
(1) Annualized.
(2) Information reconciling non-GAAP measures to GAAP measures is presented elsewhere in this press release.
Net Interest Income
Net interest income was $6.9 million for the three months ended December 31, 2018, increasing $565,000, or 8.9 percent, from $6.4 million for the comparable three-month period in fiscal 2018. Net interest income on a fully tax-equivalent basis, a non-GAAP measure, was $7.0 million for the three months ended December 31, 2018, increasing $565,000, or 8.8 percent, from $6.4 million for the comparable three-month period in fiscal 2018. The change for the three months ended December 31, 2018 primarily was the result of an increase in the average balance of loans, which increased $89.3 million. The net interest spread on an annualized tax-equivalent basis was at 2.40 percent and 2.31 percent for the three months ended December 31, 2018 and 2017, respectively. For the quarter ended December 31, 2018, the Company’s net interest margin on a tax-equivalent basis increased to 2.65 percent as compared to 2.47 percent for the same three-month period in fiscal 2018.
For the three months ended December 31, 2018, total interest income both as reported and on a fully tax-equivalent basis, a non-GAAP measure, increased $1.4 million, or 14.7 percent, to $10.9 million, compared to the three months ended December 31, 2017. Interest income rose in the quarter ended December 31, 2018, compared to the comparable period in fiscal 2017, primarily due to a $89.3 million increase in the average balance of our loans. Total interest expense increased by $836,000, or 26.7 percent, to $4.0 million, for the three months ended December 31, 2018, compared to the same period in fiscal 2018 primarily due to the increase in average rates.
The average cost of funds was 1.76 percent for the quarter ended December 31, 2018 compared to 1.37 percent for the same three-month period in fiscal 2018 and, on a linked sequential quarter basis, increased from 1.60 percent or 16 basis points compared to the fourth quarter of fiscal 2018.
Earnings Summary for the Period Ended December 31, 2018
The following table presents condensed consolidated statements of income data for the periods indicated.
| (dollars in thousands, except share and per share data) | ||||||||||||||||
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||||||||
| Net interest income | $ | 6,947 | $ | 7,109 | $ | 6,976 | $ | 6,568 | $ | 6,382 | ||||||
| Provision for loan losses | 1,453 | 125 | 589 | 240 | — | |||||||||||
| Net interest income after provision for loan losses | 5,494 | 6,984 | 6,387 | 6,328 | 6,382 | |||||||||||
| Other income | 1,146 | 429 | 715 | 449 | 1,711 | |||||||||||
| Other expense | 4,094 | 4,437 | 4,790 | 4,105 | 4,471 | |||||||||||
| Income before income tax expense | 2,546 | 2,976 | 2,312 | 2,672 | 3,622 | |||||||||||
| Income tax expense | 535 | 334 | 69 | 654 | 3,219 | |||||||||||
| Net income | $ | 2,011 | $ | 2,642 | $ | 2,243 | $ | 2,018 | $ | 403 | ||||||
| Earnings per common share | ||||||||||||||||
| Basic | $ | 0.27 | $ | 0.41 | $ | 0.35 | $ | 0.31 | $ | 0.06 | ||||||
| Diluted | $ | 0.27 | $ | 0.41 | $ | 0.35 | $ | 0.31 | $ | 0.06 | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 7,555,810 | 6,464,326 | 6,453,031 | 6,448,691 | 6,445,264 | |||||||||||
| Diluted | 7,555,969 | 6,467,628 | 6,456,048 | 6,452,246 | 6,450,513 | |||||||||||
Other Income
Other income decreased $565,000, or 33.0 percent, during the first quarter of fiscal 2019 compared with the same period in fiscal 2018. The decrease in total other income was due to a $1.2 million decrease in the net gain on sale of real estate, a $49,000 decrease in net gains on sale of loans, partially offset by a $669,000 increase in service charges and other fees, and a $1,000 increase in rental income. The increase in service charges and other fees is primarily due to the recognition of approximately $708,000 of net swap fees through the Bank’s commercial loan hedging program. The primary benefit of the loan hedging program is to eliminate the interest rate risk on long term fixed rate loans while allowing Malvern to compete in the market and offer competitive financing to our clients.
The following table presents the components of other income for the periods indicated.
| (in thousands, unaudited) | ||||||||||
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Service charges and other fees | $ | 940 | $ | 230 | $ | 530 | $ | 237 | $ | 271 |
| Rental income – other | 67 | 72 | 63 | 67 | 66 | |||||
| Net gains on sale of real estate | — | — | — | — | 1,186 | |||||
| Net gains on sale of loans | 18 | 6 | 3 | 26 | 67 | |||||
| Bank-owned life insurance | 121 | 121 | 119 | 119 | 121 | |||||
| Total other income | $ | 1,146 | $ | 429 | $ | 715 | $ | 449 | $ | 1,711 |
Other Expense
Total other expense for the three months ended December 31, 2018, decreased $377,000, or 8.4 percent, when compared to the quarter ended December 31, 2017. The decrease was primarily due to a $289,000 decrease in professional fees, a $49,000 decrease in other operating expense, a $24,000 decrease in data processing expense, a $24,000 decrease in advertising expense, a $23,000 decrease in occupancy expense, and a $7,000 decrease in federal deposit insurance premium, partially offset by a $18,000 increase in salaries and employee benefits, and a $21,000 increase in net other real estate owned expense. The decrease in professional fees was primarily due to lower legal expense. The increase in salaries and employee benefits primarily reflects higher compensation to officers and employees to support overall franchise growth.
The following table presents the components of other expense for the periods indicated.
| (in thousands, unaudited) | ||||||||||
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Salaries and employee benefits | $ | 2,008 | $ | 2,178 | $ | 2,024 | $ | 2,001 | $ | 1,990 |
| Occupancy expense | 539 | 570 | 577 | 586 | 562 | |||||
| Federal deposit insurance premium | 69 | 71 | 76 | 75 | 76 | |||||
| Advertising | 30 | 30 | 30 | 38 | 54 | |||||
| Data processing | 254 | 279 | 274 | 267 | 278 | |||||
| Professional fees | 499 | 565 | 1,088 | 450 | 788 | |||||
| Net other real estate owned expense | 21 | — | — | — | — | |||||
| Other operating expenses | 674 | 744 | 721 | 688 | 723 | |||||
| Total other expense | $ | 4,094 | $ | 4,437 | $ | 4,790 | $ | 4,105 | $ | 4,471 |
Income Taxes
The Company recorded $535,000 in income tax expense during the three months ended December 31, 2018 compared to $3.2 million in income tax expense during the three months ended December 31, 2017. The effective tax rates for the Company for the three months ended December 31, 2018 and 2017 were 21.0 percent and 88.9 percent, respectively. In the first quarter of fiscal 2018, the Company revised its estimated annual effective rate to reflect a change in the federal statutory rate from 34% to 21%, resulting from the Tax Cuts and Jobs Act that was enacted on December 22, 2017.
Statement of Condition Highlights at December 31, 2018
Highlights as of December 31, 2018, included:
- Balance sheet strength, with total assets amounting to $1.1 billion at December 31, 2018, increasing $94.5 million, or 9.1 percent, compared to September 30, 2018 coupled with stable asset quality, and capital levels that exceeded regulatory standards for a well-capitalized institution.
- The Company’s gross loans were $933.4 million at December 31, 2018, increasing $22.8 million, or 2.5 percent, from September 30, 2018.
- Total investments were $48.6 million at December 31, 2018, a decrease of $5.8 million, or 10.7 percent, compared to September 30, 2018.
- Deposits totaled $843.2 million at December 31, 2018, an increase of $69.0 million, or 8.9 percent, compared to September 30, 2018.
- Federal Home Loan Bank (FHLB) advances totaled $118.0 million at December 31, 2018 and September 30, 2018.
- Subordinated debt totaled $24.5 million at December 31, 2018 and September 30, 2018.
Condensed Consolidated Statements of Condition
The following table presents condensed consolidated statements of condition data as of the dates indicated.
| Condensed Consolidated Statements of Condition (unaudited) | ||||||||||
| (in thousands) | ||||||||||
| At quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Cash and due from depository institutions | $ | 1,377 | $ | 1,563 | $ | 1,447 | $ | 1,566 | $ | 1,636 |
| Interest bearing deposits in depository institutions | 98,499 | 29,271 | 45,934 | 120,144 | 127,006 | |||||
| Investment securities, available for sale, at fair value | 19,231 | 24,298 | 34,348 | 44,341 | 44,503 | |||||
| Investment securities held to maturity | 29,323 | 30,092 | 31,004 | 33,052 | 33,893 | |||||
| Restricted stock, at cost | 9,493 | 8,537 | 8,781 | 8,583 | 5,930 | |||||
| Loans receivable, net of allowance for loan losses | 924,639 | 902,136 | 893,355 | 837,314 | 806,764 | |||||
| Other real estate owned | 5,796 | — | — | — | — | |||||
| Accrued interest receivable | 3,724 | 3,800 | 3,571 | 3,583 | 3,344 | |||||
| Property and equipment, net | 7,067 | 7,181 | 7,240 | 7,357 | 7,374 | |||||
| Deferred income taxes, net | 3,367 | 3,195 | 3,920 | 3,713 | 3,791 | |||||
| Bank-owned life insurance | 19,524 | 19,403 | 19,282 | 19,163 | 19,045 | |||||
| Other assets | 6,452 | 4,475 | 4,693 | 4,500 | 3,872 | |||||
| Total assets | $ | 1,128,492 | $ | 1,033,951 | $ | 1,053,575 | $ | 1,083,316 | $ | 1,057,158 |
| Deposits | $ | 843,200 | $ | 774,163 | $ | 787,932 | $ | 825,569 | $ | 797,099 |
| FHLB advances | 118,000 | 118,000 | 123,000 | 118,000 | 118,000 | |||||
| Other short-term borrowings | — | 2,500 | 2,500 | 2,500 | 5,000 | |||||
| Subordinated debt | 24,500 | 24,461 | 24,421 | 24,382 | 24,342 | |||||
| Other liabilities | 7,113 | 4,004 | 7,749 | 7,503 | 9,521 | |||||
| Shareholders’ equity | 135,679 | 110,823 | 107,973 | 105,362 | 103,196 | |||||
| Total liabilities and shareholders’ equity | $ | 1,128,492 | $ | 1,033,951 | $ | 1,053,575 | $ | 1,083,316 | $ | 1,057,158 |
The following table reflects the composition of the Company’s deposits as of the dates indicated.
| Deposits (unaudited) | ||||||||||
| (in thousands) | ||||||||||
| At quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Demand: | ||||||||||
| Non-interest bearing | $ | 39,734 | $ | 41,677 | $ | 48,296 | $ | 38,444 | $ | 45,756 |
| Interest-bearing | 261,025 | 184,073 | 198,410 | 190,602 | 161,278 | |||||
| Savings | 44,438 | 44,642 | 44,629 | 44,716 | 41,631 | |||||
| Money market | 253,436 | 270,834 | 276,807 | 293,813 | 293,674 | |||||
| Time | 244,567 | 232,937 | 219,790 | 257,994 | 254,760 | |||||
| Total deposits | $ | 843,200 | $ | 774,163 | $ | 787,932 | $ | 825,569 | $ | 797,099 |
Loans
Total net loans amounted to $924.6 million at December 31, 2018 compared to $902.1 million at September 30, 2018, for a net increase of $22.5 million or 2.5 percent for the period. The allowance for loan losses amounted to $9.2 million and $9.0 million at December 31, 2018 and September 30, 2018, respectively. Average loans during the first quarter of fiscal 2019 totaled $912.3 million as compared to $822.9 million during the first quarter of fiscal 2018, representing a 10.9 percent increase.
At the end of the first quarter of fiscal 2019, the loan portfolio remained weighted toward two primary components: commercial and the core residential portfolio, with commercial loans accounting for 69.6 percent and single-family residential real estate loans accounting for 21.7 percent of the loan portfolio. Construction and development loans amounted to 5.2 percent and consumer loans represented 3.5 percent of the loan portfolio at such date. Total gross loans increased $22.8 million, to $933.4 million at December 31, 2018 compared to $910.6 million at September 30, 2018. The increase in the loan portfolio at December 31, 2018 compared to September 30, 2018, primarily reflected an increase of $18.6 million in commercial loans, a $5.1 million increase in residential mortgage loans, a $1.6 million increase in construction and development loans partially offset by a $2.5 million reduction in consumer loans at December 31, 2018 as compared to September 30, 2018.
For the quarter ended December 31, 2018, the Company originated total new loan volume of $64.7 million, which was offset by loan payoffs of $16.8 million, prepayments totaling $13.1 million, and amortization of $12.0 million.
The following reflects the composition of the Company’s loan portfolio as of the dates indicated.
| Loans (unaudited) | ||||||||||
| (in thousands) | ||||||||||
| At quarter ended: | 12/31/18 |
9/30/18 |
6/30/18 |
3/31/18 |
12/31/17 |
|||||
| Residential mortgage | $ | 202,306 | $ | 197,219 | $ | 192,901 | $ | 184,318 | $ | 186,831 |
| Construction and Development: | ||||||||||
| Residential and commercial | 41,140 | 37,433 | 39,845 | 35,213 | 34,627 | |||||
| Land | 7,180 | 9,221 | 15,565 | 21,727 | 18,599 | |||||
| Total construction and development | 48,320 | 46,654 | 55,410 | 56,940 | 53,226 | |||||
| Commercial: | ||||||||||
| Commercial real estate | 508,448 | 493,929 | 477,584 | 445,995 | 427,610 | |||||
| Farmland | 12,054 | 12,066 | 12,058 | 12,069 | 1,711 | |||||
| Multi-family | 44,989 | 45,102 | 45,204 | 32,608 | 32,716 | |||||
| Other | 84,236 | 80,059 | 82,856 | 75,368 | 71,933 | |||||
| Total commercial | 649,727 | 631,156 | 617,702 | 566,040 | 533,970 | |||||
| Consumer: | ||||||||||
| Home equity lines of credit | 14,484 | 14,884 | 14,446 | 15,538 | 16,811 | |||||
| Second mortgages | 16,674 | 18,363 | 19,063 | 19,960 | 21,304 | |||||
| Other | 1,915 | 2,315 | 2,311 | 2,404 | 2,435 | |||||
| Total consumer | 33,073 | 35,562 | 35,820 | 37,902 | 40,550 | |||||
| Total loans | 933,426 | 910,591 | 901,833 | 845,200 | 814,577 | |||||
| Deferred loan costs, net | 460 | 566 | 546 | 579 | 624 | |||||
| Allowance for loan losses | (9,247) | (9,021) | (9,024) | (8,465) | (8,437) | |||||
| Loans Receivable, net | $ | 924,639 | $ | 902,136 | $ | 893,355 | $ | 837,314 | $ | 806,764 |
At December 31, 2018, the Company had $140.8 million in overall undisbursed loan commitments, which consisted primarily of unused commercial lines of credit, home equity lines of credit and available usage from active construction facilities. The Company’s current “Approved, Accepted but Unfunded” pipeline at December 31, 2018 included approximately $81.0 million in commercial and construction loans and $3.0 million in residential mortgage loans expected to fund over the following the quarter.
Asset Quality
Non-accrual loans were $2.6 million at December 31, 2018 a decrease of $125,000 or 4.7 percent, as compared to $2.7 million at September 30, 2018. OREO was $5.8 million at December 31, 2018 and zero at September 30, 2018. TDR loans were $12.2 million at December 31, 2018 and $18.6 million at September 30, 2018. As previously disclosed in the Company’s Annual Report on Form 10-K filed on December 14, 2018, one TDR with an aggregate outstanding balance of approximately $7.0 million ceased to perform under modified terms and as a result the Company accepted a deed in lieu.
At December 31, 2018, $718,000 of loans past due greater than 90 days and still accruing is attributed to one residential mortgage. Malvern Bank had a promise of repayment at quarter end December 31, 2018 for the beginning of January. On January 4, 2019 the Bank received three payments for the loan bringing the loan under 30 days delinquent for principal and interest due. Net of this loan, non-performing loans would have been $2.6 million or a reduction of approximately 15 percent.
At December 31, 2018, non-performing assets totaled $9.1 million, or 0.81 percent of total assets, as compared with $3.1 million, or 0.30 percent of total assets, at September 30, 2018. The increase in non-performing assets at December 31, 2018 compared to September 30, 2018 was primarily due to the transfer to OREO of one commercial real estate loan in the amount of $5.8 million. The portfolio of non-accrual loans at December 31, 2018 was comprised of fourteen residential real estate loans with an aggregate outstanding balance of approximately $1.8 million, one commercial real estate loan with an outstanding balance of $520,000, and eleven consumer loans with an aggregate outstanding balance of approximately $260,000.
The following table presents the components of non-performing assets and other asset quality data for the periods indicated.
| (dollars in thousands, unaudited) | ||||||||||
| As of or for the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Non-accrual loans(1) | $ | 2,562 | $ | 2,687 | $ | 2,023 | $ | 2,129 | $ | 2,242 |
| Loans 90 days or more past due and still accruing | 759 | 374 | 1,338 | 475 | 345 | |||||
| Total non-performing loans | 3,321 | 3,061 | 3,361 | 2,604 | 2,587 | |||||
| Other real estate owned | 5,796 | — | — | — | — | |||||
| Total non-performing assets | $ | 9,117 | $ | 3,061 | $ | 3,361 | $ | 2,604 | $ | 2,587 |
| Performing troubled debt restructured loans | $ | 12,164 | $ | 18,640 | $ | 18,693 | $ | 18,666 | $ | 2,222 |
| Non-performing assets / total assets | 0.81% | 0.30% | 0.32% | 0.24% | 0.24% | |||||
| Non-performing loans / total loans | 0.36% | 0.34% | 0.37% | 0.31% | 0.32% | |||||
| Net charge-offs (recoveries) | $ | 1,227 | $ | 128 | $ | 30 | $ | 212 | $ | (32) |
| Net charge-offs (recoveries) / average loans(2) | 0.54% | 0.06% | 0.01% | 0.10% | (0.02)% | |||||
| Allowance for loan losses / total loans | 0.99% | 0.99% | 1.00% | 1.00% | 1.04% | |||||
| Allowance for loan losses / non-performing loans | 278.4% | 294.7% | 268.5% | 325.1% | 326.1% | |||||
| Total assets | $ | 1,128,492 | $ | 1,033,951 | $ | 1,053,575 | $ | 1,083,316 | $ | 1,057,158 |
| Total gross loans | 933,426 | 910,591 | 901,833 | 845,200 | 814,577 | |||||
| Average loans | 912,259 | 908,962 | 864,348 | 827,483 | 822,941 | |||||
| Allowance for loan losses | 9,247 | 9,021 | 9,024 | 8,465 | 8,437 | |||||
______________
(1) 23 loans totaling approximately $2.0 million, or 78.3% of the total non-accrual loan balance, were making payments at December 31, 2018.
(2) Annualized.
The allowance for loan losses at December 31, 2018 amounted to approximately $9.2 million, or 0.99 percent of total loans, compared to $9.0 million, or 0.99 percent of total loans, at September 30, 2018. The Company had a $1.5 million provision for loan losses during the quarter ended December 31, 2018 compared to $125,000 for the quarter ended September 30, 2018. Provision expense was higher during the first quarter fiscal 2019 due primarily to the write-down of one commercial loan that was moved from TDR to OREO and continued growth in the loan portfolio during the quarter. At the same time the Company added a new qualitative factor, defined as Regulatory Oversight, to its allowance methodology to address the difference in the required allowance based on asset quality and the directionally consistent level of the allowance. Unique to the other factors, this is a single calculation figure which is subsequently applied to the loan portfolio by loan type (Commercial, Residential and Consumer) based upon the percent of each to total loans. It is derived from a review of a peer group consisting of 10 banks with similar asset size within the same general geographic area of Malvern Bank. This new factor amounted for an additional $390,000 added to the provision for the period.
Capital
At December 31, 2018, our total shareholders’ equity amounted to $135.7 million, or 12.02 percent of total assets, compared to $110.8 million at September 30, 2018. The Company’s book value per common share increased to $17.45 at December 31, 2018, compared to $16.84 at September 30, 2018. At December 31, 2018, the Bank’s common equity tier 1 ratio was 15.54 percent, tier 1 leverage ratio was 13.35 percent, tier 1 risk-based capital ratio was 15.54 percent and the total risk-based capital ratio was 16.55 percent. At September 30, 2018, the Bank’s common equity tier 1 ratio was 15.09 percent, tier 1 leverage ratio was 12.71 percent, tier 1 risk-based capital ratio was 15.09 percent and the total risk-based capital ratio was 16.13 percent. At December 31, 2018, the Bank was in compliance with all applicable regulatory capital requirements.
As previously disclosed in the Company’s Form 8-K filed on October 9, 2018, the Company closed an underwritten public offering of shares of our common stock for gross proceeds of $25.0 million and net proceeds of approximately $23.4 million (after deducting the underwriting discount and other estimated offering expenses).
Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management believes that the supplemental non-GAAP information provided in this press release is utilized by market analysts and others to evaluate a company’s financial condition and, therefore, that such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures presented by other companies.
The Company’s net income is presented in the table below including non-core income and expense items.
| (in thousands) | ||||||||||
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Net income as reported under GAAP | $ | 2,011 | $ | 2,642 | $ | 2,243 | $ | 2,018 | $ | 403 |
| Non-core items, net of tax: | ||||||||||
| Tax Act related expenses(1) | — | — | — | — | 2,000 | |||||
| Prior period restatement costs(2) | — | — | 667 | — | — | |||||
| Audit expenses(3) | 110 | — | — | — | — | |||||
| Net gains on sale of real estate(4) | — | — | — | — | (787) | |||||
| Other(5) | 100 | 15 | 24 | 32 | 48 | |||||
| Core net income, non-GAAP | $ | 2,221 | $ | 2,657 | $ | 2,934 | $ | 2,050 | $ | 1,664 |
| Earnings per common share: | ||||||||||
| Diluted | $ | 0.29 | $ | 0.41 | $ | 0.45 | $ | 0.32 | $ | 0.26 |
| Weighted average common shares outstanding: | ||||||||||
| Diluted | 7,555,969 | 6,467,628 | 6,456,048 | 6,452,246 | 6,450,513 | |||||
| (1) | The Company recognized a tax expense in our tax provision for the quarter ended December 31, 2017 related to adjusting our deferred tax balance to reflect a change in the federal statutory rate from 35% to 21%, resulting from the Tax Act that was enacted on December 22, 2017. Income tax expense reported for the first three months of the Company’s prior fiscal year gave effect to the change in the tax law which resulted in an increase in income tax expense of $2.0 million during the quarter ended December 31, 2017. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) | Non-core items for the quarter ended June 30, 2018 consisted of additional legal and accounting fees arising out of matters pertaining to prior period restatements. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) | Non-core items for the quarter ended December 31, 2018 consisted of expenses arising out of the dismissal of the Company’s Certifying Accountant, as previously announced in the Company’s Form 8-K filed on July 9, 2018, which required issuance of consent on previously audited consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (4) | Sale of Exton, PA branch. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (5) | Included in non-core items such as accelerated payoff and non-accrual interest amounts. | |||||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s other income is presented in the table below excluding net gains on sale of real estate. The Company’s management believes that many investors desire to evaluate other income without regard to such gains.
| (in thousands) | ||||||||||
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Other income as reported under GAAP | $ | 1,146 | $ | 429 | $ | 715 | $ | 449 | $ | 1,711 |
| Less: Net gains on sale of real estate | — | — | — | — | 1,186 | |||||
| Other income, excluding net gains on sale of real estate, non-GAAP | $ | 1,146 | $ | 429 | $ | 715 | $ | 449 | $ | 525 |
“Efficiency ratio” is a non-GAAP financial measure and is defined as other expense, excluding certain non-core items, as a percentage of net interest income on a tax equivalent basis plus other income, excluding net securities gains, calculated as follows:
| (dollars in thousands) | ||||||||||
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Other expense as reported under GAAP | $ | 4,094 | $ | 4,437 | $ | 4,790 | $ | 4,105 | $ | 4,471 |
| Less: non-core items(1) | 139 | — | 688 | — | — | |||||
| Other expense, excluding non-core items, non-GAAP | $ | 3,955 | $ | 4,437 | $ | 4,102 | $ | 4,105 | $ | 4,471 |
| Net interest income (tax equivalent basis), non-GAAP | $ | 6,958 | $ | 7,172 | $ | 7,021 | $ | 6,597 | $ | 6,393 |
| Non-core items(2) | 127 | 16 | 25 | 43 | 72 | |||||
| Net interest income (tax equivalent basis), excluding non-core items, non-GAAP | 7,085 | 7,188 | 7,046 | 6,640 | 6,465 | |||||
| Other income, excluding net gains on sale of real estate, non-GAAP | 1,146 | 429 | 715 | 449 | 525 | |||||
| Total | $ | 8,231 | $ | 7,617 | $ | 7,761 | $ | 7,089 | $ | 6,990 |
| Efficiency ratio, non-GAAP | 48.1% | 58.3% | 52.9% | 57.9% | 64.0% | |||||
| ______________________ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (1) | Non-core items for the quarter ended December 31, 2018 consisted of expenses arising out of the dismissal of the Company’s Certifying Accountant, as previously announced in the Company’s Form 8-K filed on July 9, 2018, which required issuance of consent on previously audited consolidated financial statements. Non-core items for the quarter ended June 30, 2018 consisted of additional legal and accounting fees arising out of matters pertaining to prior period restatements. The Company believes these adjustments are helpful to provide insight into core operating results as a means to evaluate comparative results. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) | Included in non-core items such as accelerated payoff and non-accrual interest amounts. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s efficiency ratio, calculated on a GAAP basis without excluding net investment securities gains and without deducting non-core items from other expense, follows:
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 |
| Efficiency ratio on a GAAP basis | 50.6% | 58.9% | 62.3% | 58.5% | 55.2% |
Net interest margin, which is non-interest income as a percentage of average interest-earning assets, is presented on a fully tax equivalent (“TE”) basis as we believe this non-GAAP measure is the preferred industry measurement for this item. The Company revised its estimated annual effective tax rate to reflect a change in the federal statutory rate from 35% to 21%, resulting from the enactment of the Tax Cuts and Jobs Act of 2017. The TE basis adjusts GAAP interest income and yields for the tax benefit of income on certain tax-exempt investments using the blended statutory rate of 24.5% for the current period and 34% for each of the prior periods presented. Below is a reconciliation of GAAP net interest income to the TE basis and the related GAAP basis and TE net interest margins for the periods presented.
| (dollars in thousands) | ||||||||||
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||
| Net interest income (GAAP) | $ | 6,947 | $ | 7,109 | $ | 6,976 | $ | 6,568 | $ | 6,382 |
| Tax-equivalent adjustment(1) | 11 | 63 | 45 | 29 | 11 | |||||
| TE net interest income, non-GAAP | $ | 6,958 | $ | 7,172 | $ | 7,021 | $ | 6,597 | $ | 6,393 |
| Net interest income margin (GAAP) | 2.65% | 2.82% | 2.73% | 2.57% | 2.46% | |||||
| Tax-equivalent effect | — | 0.03 | 0.02 | 0.01 | 0.01 | |||||
| Net interest margin (TE), non-GAAP | 2.65% | 2.85% | 2.75% | 2.58% | 2.47% | |||||
| ____________________ | ||||||||||
| (1) Reflects tax-equivalent adjustment for tax exempt loans and investments. | ||||||||||
The following table sets forth the Company’s consolidated average statements of condition for the periods presented.
| Condensed Consolidated Average Statements of Condition (unaudited) | ||||||||||||||
| (in thousands) | ||||||||||||||
| For the quarter ended: | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||||||
| Investment securities | $ | 53,882 | $ | 64,848 | $ | 75,932 | $ | 77,961 | $ | 59,453 | ||||
| Loans | 912,259 | 908,962 | 864,348 | 827,483 | 822,941 | |||||||||
| Allowance for loan losses | (8,638) | (9,077) | (8,589) | (8,426) | (8,419) | |||||||||
| All other assets | 123,643 | 72,535 | 120,730 | 157,126 | 194,017 | |||||||||
| Total assets | 1,081,146 | 1,037,268 | 1,052,421 | 1,054,144 | 1,067,992 | |||||||||
| Non-interest bearing deposits | $ | 40,420 | $ | 43,330 | $ | 45,124 | $ | 40,034 | $ | 42,760 | ||||
| Interest-bearing deposits | 758,813 | 732,489 | 746,341 | 754,820 | 766,105 | |||||||||
| FHLB advances | 116,859 | 118,326 | 118,121 | 118,000 | 118,000 | |||||||||
| Other short-term borrowings | 761 | 2,522 | 2,555 | 4,945 | 5,000 | |||||||||
| Subordinated debt | 24,483 | 24,440 | 24,399 | 24,360 | 24,322 | |||||||||
| Other liabilities | 5,750 | 6,457 | 9,072 | 7,283 | 8,086 | |||||||||
| Shareholders’ equity | 134,060 | 109,704 | 106,809 | 104,702 | 103,719 | |||||||||
| Total liabilities and shareholders’ equity | $ | 1,081,146 | $ | 1,037,268 | $ | 1,052,421 | $ | 1,054,144 | $ | 1,067,992 | ||||
About Malvern Bancorp, Inc.
Malvern Bancorp, Inc. is the holding company for Malvern Bank, National Association, a national bank that was originally organized in 1887 as a federally-chartered savings bank. Malvern Bank, National Association now serves as one of the oldest banks headquartered on the Philadelphia Main Line. For more than 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 conducts business from its headquarters in Paoli, Pennsylvania, a suburb of Philadelphia and through its nine other banking locations in Chester, Delaware and Bucks counties, Pennsylvania, Palm Beach, Florida, and Morristown, New Jersey, its New Jersey regional headquarters. The Bank also operates a representative office in Montchanin, Delaware and recently announced a new Private Banking Office in West Chester Pennsylvania. Its primary market niche is providing personalized service to its client base.
Malvern Bank, through its Private Banking division and strategic partnership with Bell Rock Capital in Rehoboth Beach, Delaware, provides personalized wealth management and advisory services to high net worth individuals and families. These services include banking, liquidity management, investment services, 401(k) accounts and planning, custody, tailored lending, wealth planning, trust and fiduciary services, family wealth advisory services and philanthropic advisory services. The Bank offers insurance services though Malvern Insurance Associates, LLC, which provides clients a rich array of financial services, including commercial and personal insurance and commercial and personal lending.
For further information regarding Malvern Bancorp, Inc., please visit our web site at http://ir.malvernbancorp.com. For information regarding Malvern Bank, National Association, please visit our web site at http://www.mymalvernbank.com.
Forward-Looking Statements
This press release contains certain forward looking statements including the statements regarding the speed of disposing of REO property, growth in the Company’s loan pipeline and the rapidity of deploying deposits into loans. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of Malvern Bancorp, Inc., changes in the securities markets and other risk factors disclosed by the Company in its filings with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in beliefs, expectations or events.
MALVERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
| (in thousands, except for share and per share data) | December 31, 2018 | September 30, 2018 | ||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and due from depository institutions | $ | 1,377 | $ | 1,563 | ||||
| Interest bearing deposits in depository institutions | 98,499 | 29,271 | ||||||
| Total cash and cash equivalents | 99,876 | 30,834 | ||||||
| Investment securities available for sale, at fair value (amortized cost of $19,768 and $24,804 at December 31, 2018 and September 30, 2018, respectively) | 19,231 | 24,298 | ||||||
| Investment securities held to maturity (fair value of $28,532 and $28,968 at December 31, 2018 and September 30, 2018, respectively) | 29,323 | 30,092 | ||||||
| Restricted stock, at cost | 9,493 | 8,537 | ||||||
| Loans receivable, net of allowance for loan losses | 924,639 | 902,136 | ||||||
| Other real estate owned | 5,796 | — | ||||||
| Accrued interest receivable | 3,724 | 3,800 | ||||||
| Property and equipment, net | 7,067 | 7,181 | ||||||
| Deferred income taxes, net | 3,367 | 3,195 | ||||||
| Bank-owned life insurance | 19,524 | 19,403 | ||||||
| Other assets | 6,452 | 4,475 | ||||||
| Total assets | $ | 1,128,492 | $ | 1,033,951 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Non-interest bearing | $ | 39,734 | $ | 41,677 | ||||
| Interest-bearing | 803,466 | 732,486 | ||||||
| Total deposits | 843,200 | 774,163 | ||||||
| FHLB advances | 118,000 | 118,000 | ||||||
| Other short-term borrowings | — | 2,500 | ||||||
| Subordinated debt | 24,500 | 24,461 | ||||||
| Advances from borrowers for taxes and insurance | 2,142 | 1,305 | ||||||
| Accrued interest payable | 1,251 | 784 | ||||||
| Other liabilities | 3,720 | 1,915 | ||||||
| Total liabilities | 992,813 | 923,128 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Preferred stock, $0.01 par value, 10,000,000 shares, authorized, none issued | — | — | ||||||
| Common stock, $0.01 par value, 50,000,000 shares authorized, issued and outstanding: 7,774,594 shares at December 31, 2018 and 6,580,879 shares at September 30, 2018 | 66 | 66 | ||||||
| Additional paid in capital | 84,493 | 61,099 | ||||||
| Retained earnings | 52,423 | 50,412 | ||||||
| Unearned Employee Stock Ownership Plan (ESOP) shares | (1,302 | ) | (1,338 | ) | ||||
| Accumulated other comprehensive (loss) income | (1 | ) | 584 | |||||
| Total shareholders’ equity | 135,679 | 110,823 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,128,492 | $ | 1,033,951 | ||||
MALVERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended December 31, | |||||||||||||||
| (in thousands, except for share and per share data) | 2018 |
2017 |
|||||||||||||
| (unaudited) | |||||||||||||||
| Interest and Dividend Income | |||||||||||||||
| Loans, including fees | $ | 10,095 | $ | 8,701 | |||||||||||
| Investment securities, taxable | 251 | 230 | |||||||||||||
| Investment securities, tax-exempt | 61 | 65 | |||||||||||||
| Dividends, restricted stock | 133 | 69 | |||||||||||||
| Interest-bearing cash accounts | 372 | 446 | |||||||||||||
| Total Interest and Dividend Income | 10,912 | 9,511 | |||||||||||||
| Interest Expense | |||||||||||||||
| Deposits | 2,944 | 2,155 | |||||||||||||
| Short-term borrowings | 5 | 19 | |||||||||||||
| Long-term borrowings | 633 | 563 | |||||||||||||
| Subordinated debt | 383 | 392 | |||||||||||||
| Total Interest Expense | 3,965 | 3,129 | |||||||||||||
| Net interest income | 6,947 | 6,382 | |||||||||||||
| Provision for Loan Losses | 1,453 | — | |||||||||||||
| Net Interest Income after Provision for Loan Losses | 5,494 | 6,382 | |||||||||||||
| Other Income | |||||||||||||||
| Service charges and other fees | 940 | 271 | |||||||||||||
| Rental income-other | 67 | 66 | |||||||||||||
| Net gains on sale of real estate | — | 1,186 | |||||||||||||
| Net gains on sale of loans, net | 18 | 67 | |||||||||||||
| Earnings on bank-owned life insurance | 121 | 121 | |||||||||||||
| Total Other Income | 1,146 | 1,711 | |||||||||||||
| Other Expense | |||||||||||||||
| Salaries and employee benefits | 2,008 | 1,990 | |||||||||||||
| Occupancy expense | 539 | 562 | |||||||||||||
| Federal deposit insurance premium | 69 | 76 | |||||||||||||
| Advertising | 30 | 54 | |||||||||||||
| Data processing | 254 | 278 | |||||||||||||
| Professional fees | 499 | 788 | |||||||||||||
| Net other real estate owned expense | 21 | — | |||||||||||||
| Other operating expenses | 674 | 723 | |||||||||||||
| Total Other Expense | 4,094 | 4,471 | |||||||||||||
| Income before income tax expense | 2,546 | 3,622 | |||||||||||||
| Income tax expense | 535 | 3,219 | |||||||||||||
| Net Income | $ | 2,011 | $ | 403 | |||||||||||
| Earnings per common share | |||||||||||||||
| Basic | $ | 0.27 | $ | 0.06 | |||||||||||
| Diluted | $ | 0.27 | $ | 0.06 | |||||||||||
| Weighted Average Common Shares Outstanding | |||||||||||||||
| Basic | 7,555,810 | 6,445,264 | |||||||||||||
| Diluted | 7,555,969 | 6,450,513 | |||||||||||||
MALVERN BANCORP, INC AND SUBSIDIARIES
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
| Three Months Ended | ||||||||
| (in thousands, except for ratios, non-financial data and share and per share data) (annualized where applicable) (unaudited) | 12/31/2018 | 9/30/2018 | 12/31/2017 | |||||
| Statements of Operations Data | ||||||||
| Interest income | $ | 10,912 | $ | 10,617 | $ | 9,511 | ||
| Interest expense | 3,965 | 3,508 | 3,129 | |||||
| Net interest income | 6,947 | 7,109 | 6,382 | |||||
| Provision for loan losses | 1,453 | 125 | — | |||||
| Net interest income after provision for loan losses | 5,494 | 6,984 | 6,382 | |||||
| Other income | 1,146 | 429 | 1,711 | |||||
| Other expense | 4,094 | 4,437 | 4,471 | |||||
| Income before income tax expense | 2,546 | 2,976 | 3,622 | |||||
| Income tax expense | 535 | 334 | 3,219 | |||||
| Net income | $ | 2,011 | $ | 2,642 | $ | 403 | ||
| Earnings (per Common Share) | ||||||||
| Basic | $ | 0.27 | $ | 0.41 | $ | 0.06 | ||
| Diluted | $ | 0.27 | $ | 0.41 | $ | 0.06 | ||
| Statements of Condition Data (Period-End) | ||||||||
| Investment securities available for sale, at fair value | $ | 19,231 | $ | 24,298 | $ | 44,503 | ||
| Investment securities held to maturity (fair value of $28,532, $28,968 and $33,291) | 29,323 | 30,092 | 33,893 | |||||
| Loans, net of allowance for loan losses | 924,639 | 902,136 | 806,764 | |||||
| Total assets | 1,128,492 | 1,033,951 | 1,057,836 | |||||
| Deposits | 843,200 | 774,163 | 797,099 | |||||
| FHLB advances | 118,000 | 118,000 | 118,000 | |||||
| Short-term borrowings | — | 2,500 | 5,000 | |||||
| Subordinated debt | 24,500 | 24,461 | 24,342 | |||||
| Shareholders’ equity | 135,679 | 110,823 | 103,196 | |||||
| Common Shares Dividend Data | ||||||||
| Cash dividends | $ | — | $ | — | $ | — | ||
| Weighted Average Common Shares Outstanding | ||||||||
| Basic | 7,555,810 | 6,464,326 | 6,445,264 | |||||
| Diluted | 7,555,969 | 6,467,628 | 6,450,513 | |||||
| Operating Ratios | ||||||||
| Return on average assets | 0.74% | 1.02% | 0.15% | |||||
| Return on average equity | 6.00% | 9.63% | 1.55% | |||||
| Average equity / average assets | 12.40% | 10.58% | 9.71% | |||||
| Book value per common share (Period-End) | $ | 17.45 | $ | 16.84 | $ | 15.70 | ||
| Non-Financial Information (Period-End) | ||||||||
| Common shareholders of record | 402 | 405 | 422 | |||||
| Full-time equivalent staff | 87 | 85 | 85 | |||||
Investor Relations:
Joseph D. Gangemi
SVP & CFO
(610) 695-3676
Investor Contact:
Ronald Morales
(610) 695-3646
