Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash Flows from Operating Activities
Net income (loss)	$ 1,470	$ (5,443)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense	368	430
Provision for loan losses	25	10,042
Deferred income taxes expense (benefit)	481	(3,012)
ESOP expense	45	34
(Accretion) of premiums and discounts on investment securities, net	(78)	(63)
Amortization (accretion) of mortgage servicing rights	38	(25)
Net gain on sale of investment securities available for sale	(623)	0
Loss on sale of other real estate owned	21	7
Write down of other real estate owned	472	903
Amortization of loan origination fees and costs	(630)	(556)
Decrease in accrued interest receivable	265	24
Increase (decrease) in accrued interest payable	13	(36)
(Decrease) increase in other liabilities	(311)	247
Earnings on bank-owned life insurance	(266)	(277)
Decrease (increase) in other assets	23	1,235
Decrease in prepaid FDIC assessment	433	674
Net Cash Provided by Operating Activities	1,746	4,184
Cash Flows from Investing Activities
Proceeds from maturities and principal collections: investment securities held to maturity	3,108	714
Proceeds from maturities and principal collections: investment securities available for sale	14,636	12,375
Proceeds from sales of investment securities available for sale	18,954	0
Purchases of investment securities available for sale	(29,379)	(45,009)
Loan purchases	(13,332)	(9,796)
Loan originations and principal collections, net	41,508	23,646
Proceeds from sale of other real estate owned	3,834	3,955
Additions to mortgage servicing rights	(53)	0
Net decrease in restricted stock	522	640
Purchases of property and equipment	(130)	(175)
Net Cash Provided by (Used in) Investing Activities	39,668	(13,650)
Cash Flows from Financing Activities
Net decrease in deposits	(17,426)	(37,071)
Repayment of long-term borrowings	(505)	(5,735)
Increase in advances from borrowers for taxes and insurance	1,646	1,192
Cash dividends paid	0	(81)
Net Cash Used in Financing Activities	(16,285)	(41,695)
Net Increase (Decrease) in Cash and Cash Equivalents	25,129	(51,161)
Cash and Cash Equivalents - Beginning	33,496	81,395
Cash and Cash Equivalents - Ending	58,625	30,234
Supplementary Cash Flows Information
Interest Paid	4,391	5,448
Income Taxes Paid	0	4
Non-cash transfer of loans to other real estate owned	749	4,980
Non-cash transfer of loans to investment securities available for sale	$ 10,671	$ 0

MALVERN FEDERAL BANCORP INC 10-Q