Malvern Bancorp in Paoli, Pa., on Wednesday reported a profit for its first fiscal quarter of 2016 and said the Office of the Comptroller of the Currency had lifted a formal written agreement with its Malvern Federal Savings Bank subsidiary dating to October 2014.
The $727 million-asset company said it had a profit of $1.3 million for the three months that ended Dec. 31, versus $321,000 a year earlier. It had earnings per share of 21 cents, versus 5 cents a year earlier.
The OCC agreement was terminated on Jan. 21, Malvern said. "As a result of the OCC's action," the company said, Malvern Federal "is no longer considered to be in 'troubled condition.' " The agreement required the bank to review its management and revise its written strategic and capital plans, among other things.
"The termination of the regulatory restrictions which had been imposed by the Formal Agreement will facilitate our ability to fully implement our business plan and build our franchise as the premier community bank in southeastern Pennsylvania," Malvern President and Chief Executive Anthony Weagley said in a press release.
Malvern's net interest income after a provision for loan losses rose 20% to $4.2 million, total loans rose 20.4% to $461.2 million and net interest margin rose 11 basis points to 2.72%.
Noninterest income rose 9.2% to $558,000 on a higher net gain on loan and investment sales. Noninterest expense fell 8.1% to $3.4 million as a result of reductions in salary and employee benefits and lower occupancy, advertising, data processing and operating costs. The efficiency ratio improved to 71.3% from 87.5%.