0001550603 MALVERN BANCORP, INC. false --09-30 Q2 2023 0.01 0.01 10,000,000 10,000,000 0 0 0.01 0.01 50,000,000 50,000,000 7,839,281 7,644,765 7,828,344 7,633,828 194,516 194,516 571 522 2,479 2,539 1,135 2,588 541 2,737 896 2,045 427 2,163 1 2 2 3 1 747 1,773 994 2,252 155 372 206 473 592 1,401 788 1,779 1,488 644 1,215 383 917 122 1,264 2,156 3,600 3,600 7,200 7,200 3,979 6,000 0 0 0 0 3,600 7,200 0 11 1 1 1 0 0 11.0 265,000 2 33.6 10.5 33.6 10.5 1 0 0 0 Amounts are included in interest and dividends on investment securities on the Consolidated Statements of Net Income. Consisted of three loans with an aggregate balance of $13.7 million and with $54,000 in specific loan loss allowance. Consisted of four loans with an aggregate balance of $8.2 million and with $308,000 in specific loan loss allowance. See footnote 9 for additional details on amount of gains on derivatives reclassified to interest expense. 00015506032022-10-012023-03-31 xbrli:shares 00015506032023-05-11 thunderdome:item iso4217:USD 00015506032023-03-31 00015506032022-09-30 iso4217:USDxbrli:shares 00015506032023-01-012023-03-31 00015506032022-01-012022-03-31 00015506032021-10-012022-03-31 0001550603us-gaap:CommonStockMember2021-12-31 0001550603us-gaap:AdditionalPaidInCapitalMember2021-12-31 0001550603us-gaap:RetainedEarningsMember2021-12-31 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2021-12-31 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-31 0001550603us-gaap:TreasuryStockCommonMember2021-12-31 00015506032021-12-31 0001550603us-gaap:CommonStockMember2022-01-012022-03-31 0001550603us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-31 0001550603us-gaap:RetainedEarningsMember2022-01-012022-03-31 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2022-01-012022-03-31 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-31 0001550603us-gaap:TreasuryStockCommonMember2022-01-012022-03-31 0001550603us-gaap:CommonStockMember2022-03-31 0001550603us-gaap:AdditionalPaidInCapitalMember2022-03-31 0001550603us-gaap:RetainedEarningsMember2022-03-31 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2022-03-31 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-31 0001550603us-gaap:TreasuryStockCommonMember2022-03-31 00015506032022-03-31 0001550603us-gaap:CommonStockMember2022-12-31 0001550603us-gaap:AdditionalPaidInCapitalMember2022-12-31 0001550603us-gaap:RetainedEarningsMember2022-12-31 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2022-12-31 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-31 0001550603us-gaap:TreasuryStockCommonMember2022-12-31 00015506032022-12-31 0001550603us-gaap:CommonStockMember2023-01-012023-03-31 0001550603us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-31 0001550603us-gaap:RetainedEarningsMember2023-01-012023-03-31 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2023-01-012023-03-31 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-31 0001550603us-gaap:TreasuryStockCommonMember2023-01-012023-03-31 0001550603us-gaap:CommonStockMember2023-03-31 0001550603us-gaap:AdditionalPaidInCapitalMember2023-03-31 0001550603us-gaap:RetainedEarningsMember2023-03-31 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2023-03-31 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-31 0001550603us-gaap:TreasuryStockCommonMember2023-03-31 0001550603us-gaap:CommonStockMember2021-09-30 0001550603us-gaap:AdditionalPaidInCapitalMember2021-09-30 0001550603us-gaap:RetainedEarningsMember2021-09-30 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2021-09-30 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-30 0001550603us-gaap:TreasuryStockCommonMember2021-09-30 00015506032021-09-30 0001550603us-gaap:CommonStockMember2021-10-012022-03-31 0001550603us-gaap:AdditionalPaidInCapitalMember2021-10-012022-03-31 0001550603us-gaap:RetainedEarningsMember2021-10-012022-03-31 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2021-10-012022-03-31 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-012022-03-31 0001550603us-gaap:TreasuryStockCommonMember2021-10-012022-03-31 0001550603us-gaap:CommonStockMember2022-09-30 0001550603us-gaap:AdditionalPaidInCapitalMember2022-09-30 0001550603us-gaap:RetainedEarningsMember2022-09-30 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2022-09-30 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-30 0001550603us-gaap:TreasuryStockCommonMember2022-09-30 0001550603us-gaap:CommonStockMember2022-10-012023-03-31 0001550603us-gaap:AdditionalPaidInCapitalMember2022-10-012023-03-31 0001550603us-gaap:RetainedEarningsMember2022-10-012023-03-31 0001550603us-gaap:DeferredCompensationShareBasedPaymentsMember2022-10-012023-03-31 0001550603us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-012023-03-31 0001550603us-gaap:TreasuryStockCommonMember2022-10-012023-03-31 0001550603mlvf:MergerAgreementMember2022-12-13 xbrli:pure 0001550603mlvf:MergerAgreementMember2022-10-012023-03-31 0001550603us-gaap:RestrictedStockMember2023-01-012023-03-31 0001550603us-gaap:RestrictedStockMember2022-10-012023-03-31 0001550603mlvf:UnrestrictedStockMember2023-01-012023-03-31 0001550603mlvf:UnrestrictedStockMember2022-10-012023-03-31 0001550603us-gaap:EmployeeStockOptionMember2023-01-012023-03-31 0001550603us-gaap:EmployeeStockOptionMember2022-10-012023-03-31 0001550603mlvf:RestrictedStock2Member2022-10-012023-03-31 0001550603mlvf:UnrestrictedStockMember2022-01-012022-03-31 0001550603mlvf:UnrestrictedStockMember2021-10-012022-03-31 0001550603us-gaap:EmployeeStockOptionMember2022-01-012022-03-31 0001550603us-gaap:EmployeeStockOptionMember2021-10-012022-03-31 0001550603us-gaap:RestrictedStockMember2022-01-012022-03-31 0001550603us-gaap:RestrictedStockMember2021-10-012022-03-31 00015506032008-09-30 00015506032008-05-202008-09-30 0001550603us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-03-31 0001550603us-gaap:USStatesAndPoliticalSubdivisionsMember2023-03-31 0001550603mlvf:SingleIssuerTrustPreferredSecurityMember2023-03-31 0001550603us-gaap:CorporateDebtSecuritiesMember2023-03-31 0001550603us-gaap:MortgageBackedSecuritiesMember2023-03-31 0001550603us-gaap:USTreasurySecuritiesMember2023-03-31 0001550603us-gaap:CollateralizedMortgageObligationsMembermlvf:FixedRateMember2023-03-31 0001550603us-gaap:MutualFundMember2023-03-31 0001550603us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-09-30 0001550603us-gaap:USStatesAndPoliticalSubdivisionsMember2022-09-30 0001550603mlvf:SingleIssuerTrustPreferredSecurityMember2022-09-30 0001550603us-gaap:CorporateDebtSecuritiesMember2022-09-30 0001550603us-gaap:MortgageBackedSecuritiesMember2022-09-30 0001550603us-gaap:USTreasurySecuritiesMember2022-09-30 0001550603us-gaap:CollateralizedMortgageObligationsMember2022-09-30 0001550603us-gaap:MutualFundMember2022-09-30 0001550603us-gaap:MutualFundMember2021-10-012022-03-31 0001550603us-gaap:CollateralizedMortgageObligationsMember2023-03-31 0001550603us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-12-31 0001550603us-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-31 0001550603mlvf:SingleIssuerTrustPreferredSecurityMember2022-12-31 0001550603us-gaap:CorporateDebtSecuritiesMember2022-12-31 0001550603us-gaap:MortgageBackedSecuritiesMember2022-12-31 0001550603us-gaap:USTreasurySecuritiesMember2022-12-31 0001550603us-gaap:CollateralizedMortgageObligationsMember2022-12-31 0001550603us-gaap:MutualFundMember2022-12-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2022-09-30 0001550603mlvf:FarmlandMember2023-03-31 0001550603mlvf:FarmlandMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2022-09-30 0001550603mlvf:OtherCommercialLoansMember2023-03-31 0001550603mlvf:OtherCommercialLoansMember2022-09-30 0001550603us-gaap:CommercialPortfolioSegmentMember2023-03-31 0001550603us-gaap:CommercialPortfolioSegmentMember2022-09-30 0001550603us-gaap:HomeEquityLoanMember2023-03-31 0001550603us-gaap:HomeEquityLoanMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2022-09-30 0001550603mlvf:OtherConsumerLoansMember2023-03-31 0001550603mlvf:OtherConsumerLoansMember2022-09-30 0001550603us-gaap:ConsumerPortfolioSegmentMember2023-03-31 0001550603us-gaap:ConsumerPortfolioSegmentMember2022-09-30 0001550603us-gaap:ResidentialPortfolioSegmentMember2022-12-31 0001550603mlvf:ResidentialAndCommercialMember2022-12-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2022-12-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-31 0001550603mlvf:FarmlandMember2022-12-31 0001550603mlvf:CommercialMultiFamilyMember2022-12-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2022-12-31 0001550603mlvf:OtherCommercialLoansMember2022-12-31 0001550603us-gaap:HomeEquityMember2022-12-31 0001550603mlvf:ConsumerSecondMortgagesMember2022-12-31 0001550603mlvf:OtherConsumerLoansMember2022-12-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2022-12-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2023-01-012023-03-31 0001550603mlvf:ResidentialAndCommercialMember2023-01-012023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2023-01-012023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-03-31 0001550603mlvf:FarmlandMember2023-01-012023-03-31 0001550603mlvf:CommercialMultiFamilyMember2023-01-012023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2023-01-012023-03-31 0001550603mlvf:OtherCommercialLoansMember2023-01-012023-03-31 0001550603us-gaap:HomeEquityMember2023-01-012023-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2023-01-012023-03-31 0001550603mlvf:OtherConsumerLoansMember2023-01-012023-03-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2023-01-012023-03-31 0001550603us-gaap:HomeEquityMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2023-03-31 0001550603mlvf:OtherConsumerLoansMember2023-03-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2021-12-31 0001550603mlvf:ResidentialAndCommercialMember2021-12-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2021-12-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-31 0001550603mlvf:FarmlandMember2021-12-31 0001550603mlvf:CommercialMultiFamilyMember2021-12-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2021-12-31 0001550603mlvf:OtherCommercialLoansMember2021-12-31 0001550603us-gaap:HomeEquityMember2021-12-31 0001550603mlvf:ConsumerSecondMortgagesMember2021-12-31 0001550603mlvf:OtherConsumerLoansMember2021-12-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2021-12-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2022-01-012022-03-31 0001550603mlvf:ResidentialAndCommercialMember2022-01-012022-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2022-01-012022-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-03-31 0001550603mlvf:FarmlandMember2022-01-012022-03-31 0001550603mlvf:CommercialMultiFamilyMember2022-01-012022-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2022-01-012022-03-31 0001550603mlvf:OtherCommercialLoansMember2022-01-012022-03-31 0001550603us-gaap:HomeEquityMember2022-01-012022-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2022-01-012022-03-31 0001550603mlvf:OtherConsumerLoansMember2022-01-012022-03-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2022-01-012022-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2022-03-31 0001550603mlvf:ResidentialAndCommercialMember2022-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2022-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-31 0001550603mlvf:FarmlandMember2022-03-31 0001550603mlvf:CommercialMultiFamilyMember2022-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2022-03-31 0001550603mlvf:OtherCommercialLoansMember2022-03-31 0001550603us-gaap:HomeEquityMember2022-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2022-03-31 0001550603mlvf:OtherConsumerLoansMember2022-03-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2022-03-31 0001550603us-gaap:HomeEquityMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMember2022-09-30 0001550603mlvf:OtherConsumerLoansMember2022-09-30 0001550603us-gaap:UnallocatedFinancingReceivablesMember2022-09-30 0001550603us-gaap:ResidentialPortfolioSegmentMember2022-10-012023-03-31 0001550603mlvf:ResidentialAndCommercialMember2022-10-012023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2022-10-012023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2022-10-012023-03-31 0001550603mlvf:FarmlandMember2022-10-012023-03-31 0001550603mlvf:CommercialMultiFamilyMember2022-10-012023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2022-10-012023-03-31 0001550603mlvf:OtherCommercialLoansMember2022-10-012023-03-31 0001550603us-gaap:HomeEquityMember2022-10-012023-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2022-10-012023-03-31 0001550603mlvf:OtherConsumerLoansMember2022-10-012023-03-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2022-10-012023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2020-12-31 0001550603mlvf:ResidentialAndCommercialMember2020-12-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2020-12-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2020-12-31 0001550603mlvf:FarmlandMember2020-12-31 0001550603mlvf:CommercialMultiFamilyMember2020-12-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2020-12-31 0001550603mlvf:OtherCommercialLoansMember2020-12-31 0001550603us-gaap:HomeEquityMember2020-12-31 0001550603mlvf:ConsumerSecondMortgagesMember2020-12-31 0001550603mlvf:OtherConsumerLoansMember2020-12-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2020-12-31 00015506032020-12-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2021-01-012022-03-31 0001550603mlvf:ResidentialAndCommercialMember2021-01-012022-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMember2021-01-012022-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2021-01-012022-03-31 0001550603mlvf:FarmlandMember2021-01-012022-03-31 0001550603mlvf:CommercialMultiFamilyMember2021-01-012022-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2021-01-012022-03-31 0001550603mlvf:OtherCommercialLoansMember2021-01-012022-03-31 0001550603us-gaap:HomeEquityMember2021-01-012022-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2021-01-012022-03-31 0001550603mlvf:OtherConsumerLoansMember2021-01-012022-03-31 0001550603us-gaap:UnallocatedFinancingReceivablesMember2021-01-012022-03-31 00015506032021-01-012022-03-31 0001550603mlvf:OneCommercialAndIndustrialLoanMember2022-10-012023-03-31 0001550603mlvf:OneCommercialAndIndustrialLoanMember2023-03-31 0001550603us-gaap:HomeEquityLoanMember2023-01-012023-03-31 0001550603us-gaap:HomeEquityLoanMember2022-10-012023-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2023-01-012023-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2022-10-012023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2021-10-012022-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2021-10-012022-03-31 0001550603mlvf:FarmlandMember2021-10-012022-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMember2021-10-012022-03-31 0001550603us-gaap:HomeEquityLoanMember2022-01-012022-03-31 0001550603us-gaap:HomeEquityLoanMember2021-10-012022-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2022-01-012022-03-31 0001550603mlvf:ConsumerSecondMortgagesMember2021-10-012022-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:DoubtfulMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:PassMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:SpecialMentionMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:SubstandardMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:DoubtfulMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:PassMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:SpecialMentionMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:SubstandardMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:DoubtfulMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:DoubtfulMember2023-03-31 0001550603mlvf:FarmlandMemberus-gaap:PassMember2023-03-31 0001550603mlvf:FarmlandMemberus-gaap:SpecialMentionMember2023-03-31 0001550603mlvf:FarmlandMemberus-gaap:SubstandardMember2023-03-31 0001550603mlvf:FarmlandMemberus-gaap:DoubtfulMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:PassMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:SpecialMentionMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:SubstandardMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:DoubtfulMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:PassMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:SpecialMentionMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:SubstandardMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:DoubtfulMember2023-03-31 0001550603mlvf:OtherCommercialLoansMemberus-gaap:PassMember2023-03-31 0001550603mlvf:OtherCommercialLoansMemberus-gaap:SpecialMentionMember2023-03-31 0001550603mlvf:OtherCommercialLoansMemberus-gaap:SubstandardMember2023-03-31 0001550603mlvf:OtherCommercialLoansMemberus-gaap:DoubtfulMember2023-03-31 0001550603us-gaap:HomeEquityMemberus-gaap:PassMember2023-03-31 0001550603us-gaap:HomeEquityMemberus-gaap:SpecialMentionMember2023-03-31 0001550603us-gaap:HomeEquityMemberus-gaap:SubstandardMember2023-03-31 0001550603us-gaap:HomeEquityMemberus-gaap:DoubtfulMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:PassMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:SpecialMentionMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:SubstandardMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:DoubtfulMember2023-03-31 0001550603mlvf:OtherConsumerLoansMemberus-gaap:PassMember2023-03-31 0001550603mlvf:OtherConsumerLoansMemberus-gaap:SpecialMentionMember2023-03-31 0001550603mlvf:OtherConsumerLoansMemberus-gaap:SubstandardMember2023-03-31 0001550603mlvf:OtherConsumerLoansMemberus-gaap:DoubtfulMember2023-03-31 0001550603us-gaap:PassMember2023-03-31 0001550603us-gaap:SpecialMentionMember2023-03-31 0001550603us-gaap:SubstandardMember2023-03-31 0001550603us-gaap:DoubtfulMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMember2022-09-30 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2022-09-30 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2022-09-30 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:DoubtfulMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:PassMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:SpecialMentionMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:SubstandardMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:DoubtfulMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:PassMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:SpecialMentionMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:SubstandardMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:DoubtfulMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:DoubtfulMember2022-09-30 0001550603mlvf:FarmlandMemberus-gaap:PassMember2022-09-30 0001550603mlvf:FarmlandMemberus-gaap:SpecialMentionMember2022-09-30 0001550603mlvf:FarmlandMemberus-gaap:SubstandardMember2022-09-30 0001550603mlvf:FarmlandMemberus-gaap:DoubtfulMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:PassMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:SpecialMentionMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:SubstandardMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:DoubtfulMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:PassMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:SpecialMentionMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:SubstandardMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:DoubtfulMember2022-09-30 0001550603mlvf:OtherCommercialLoansMemberus-gaap:PassMember2022-09-30 0001550603mlvf:OtherCommercialLoansMemberus-gaap:SpecialMentionMember2022-09-30 0001550603mlvf:OtherCommercialLoansMemberus-gaap:SubstandardMember2022-09-30 0001550603mlvf:OtherCommercialLoansMemberus-gaap:DoubtfulMember2022-09-30 0001550603us-gaap:HomeEquityMemberus-gaap:PassMember2022-09-30 0001550603us-gaap:HomeEquityMemberus-gaap:SpecialMentionMember2022-09-30 0001550603us-gaap:HomeEquityMemberus-gaap:SubstandardMember2022-09-30 0001550603us-gaap:HomeEquityMemberus-gaap:DoubtfulMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:PassMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:SpecialMentionMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:SubstandardMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:DoubtfulMember2022-09-30 0001550603mlvf:OtherConsumerLoansMemberus-gaap:PassMember2022-09-30 0001550603mlvf:OtherConsumerLoansMemberus-gaap:SpecialMentionMember2022-09-30 0001550603mlvf:OtherConsumerLoansMemberus-gaap:SubstandardMember2022-09-30 0001550603mlvf:OtherConsumerLoansMemberus-gaap:DoubtfulMember2022-09-30 0001550603us-gaap:PassMember2022-09-30 0001550603us-gaap:SpecialMentionMember2022-09-30 0001550603us-gaap:SubstandardMember2022-09-30 0001550603us-gaap:DoubtfulMember2022-09-30 0001550603mlvf:ResidentialLoansMember2022-10-012023-03-31 0001550603mlvf:ResidentialLoansMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603mlvf:FarmlandMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603mlvf:FarmlandMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603mlvf:FarmlandMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603mlvf:FarmlandMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603mlvf:OtherCommercialLoansMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603mlvf:OtherCommercialLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603mlvf:OtherCommercialLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603mlvf:OtherCommercialLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603us-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603us-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603us-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603us-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603mlvf:OtherConsumerLoansMemberus-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603mlvf:OtherConsumerLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603mlvf:OtherConsumerLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603mlvf:OtherConsumerLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603us-gaap:FinancialAssetNotPastDueMember2023-03-31 0001550603us-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-31 0001550603us-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-31 0001550603us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603mlvf:ResidentialAndCommercialMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603mlvf:FarmlandMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603mlvf:FarmlandMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603mlvf:FarmlandMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603mlvf:FarmlandMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603mlvf:CommercialMultiFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603mlvf:OtherCommercialLoansMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603mlvf:OtherCommercialLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603mlvf:OtherCommercialLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603mlvf:OtherCommercialLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603us-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603us-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603us-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603us-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603mlvf:OtherConsumerLoansMemberus-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603mlvf:OtherConsumerLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603mlvf:OtherConsumerLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603mlvf:OtherConsumerLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 0001550603us-gaap:FinancialAssetNotPastDueMember2022-09-30 0001550603us-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-30 0001550603us-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-30 0001550603us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-30 00015506032021-10-012022-09-30 0001550603mlvf:TroubledDebtRestructureCommercialAndIndustrialLoanMember2023-03-31 0001550603mlvf:TroubledDebtRestructuringsLoansPerformUnderRestructuringTermMember2022-10-012023-03-31 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2022-09-162022-12-14 0001550603mlvf:CommercialAndIndustrialMember2022-10-012023-03-31 0001550603mlvf:CommercialAndIndustrialMember2023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2021-10-012022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2021-10-012022-09-30 0001550603mlvf:FarmlandMember2021-10-012022-09-30 0001550603mlvf:CommercialAndIndustrialMember2021-10-012022-09-30 0001550603mlvf:CommercialAndIndustrialMember2022-09-30 0001550603mlvf:ConsumerSecondMortgagesMember2021-10-012022-09-30 0001550603us-gaap:PerformingFinancingReceivableMemberus-gaap:ResidentialPortfolioSegmentMember2023-03-31 0001550603us-gaap:NonperformingFinancingReceivableMemberus-gaap:ResidentialPortfolioSegmentMember2023-03-31 0001550603us-gaap:PerformingFinancingReceivableMemberus-gaap:ResidentialPortfolioSegmentMember2022-09-30 0001550603us-gaap:NonperformingFinancingReceivableMemberus-gaap:ResidentialPortfolioSegmentMember2022-09-30 0001550603us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-03-31 0001550603us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-03-31 0001550603us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-09-30 0001550603us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-09-30 0001550603us-gaap:PerformingFinancingReceivableMembermlvf:FarmlandMember2023-03-31 0001550603us-gaap:NonperformingFinancingReceivableMembermlvf:FarmlandMember2023-03-31 0001550603us-gaap:PerformingFinancingReceivableMembermlvf:FarmlandMember2022-09-30 0001550603us-gaap:NonperformingFinancingReceivableMembermlvf:FarmlandMember2022-09-30 0001550603us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialAndIndustrialSectorMember2023-03-31 0001550603us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialAndIndustrialSectorMember2023-03-31 0001550603us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialAndIndustrialSectorMember2022-09-30 0001550603us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialAndIndustrialSectorMember2022-09-30 0001550603us-gaap:PerformingFinancingReceivableMembermlvf:ConsumerSecondMortgagesMember2023-03-31 0001550603us-gaap:NonperformingFinancingReceivableMembermlvf:ConsumerSecondMortgagesMember2023-03-31 0001550603us-gaap:PerformingFinancingReceivableMembermlvf:ConsumerSecondMortgagesMember2022-09-30 0001550603us-gaap:NonperformingFinancingReceivableMembermlvf:ConsumerSecondMortgagesMember2022-09-30 0001550603us-gaap:PerformingFinancingReceivableMember2023-03-31 0001550603us-gaap:NonperformingFinancingReceivableMember2023-03-31 0001550603us-gaap:PerformingFinancingReceivableMember2022-09-30 0001550603us-gaap:NonperformingFinancingReceivableMember2022-09-30 0001550603us-gaap:SpecialMentionMember2022-10-012023-03-31 0001550603us-gaap:SpecialMentionMember2021-10-012022-09-30 0001550603mlvf:ConstructionAndDevelopmentMember2023-01-012023-03-31 0001550603us-gaap:CommercialPortfolioSegmentMember2023-01-012023-03-31 0001550603mlvf:OtherConsumerLoansMember2023-01-012023-03-31 0001550603us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-03-31 0001550603us-gaap:ResidentialPortfolioSegmentMember2021-01-012022-09-30 0001550603mlvf:ResidentialAndCommercialMember2021-01-012022-09-30 0001550603mlvf:ConstructionAndDevelopmentLandMember2021-01-012022-09-30 0001550603mlvf:ConstructionAndDevelopmentMember2021-01-012022-09-30 0001550603us-gaap:CommercialRealEstatePortfolioSegmentMember2021-01-012022-09-30 0001550603mlvf:FarmlandMember2021-01-012022-09-30 0001550603mlvf:CommercialMultiFamilyMember2021-01-012022-09-30 0001550603us-gaap:CommercialAndIndustrialSectorMember2021-01-012022-09-30 0001550603mlvf:OtherCommercialLoansMember2021-01-012022-09-30 0001550603us-gaap:CommercialPortfolioSegmentMember2021-01-012022-09-30 0001550603us-gaap:HomeEquityLoanMember2021-01-012022-09-30 0001550603mlvf:ConsumerSecondMortgagesMember2021-01-012022-09-30 0001550603mlvf:OtherConsumerLoansMember2021-01-012022-09-30 0001550603us-gaap:ConsumerPortfolioSegmentMember2021-01-012022-09-30 00015506032021-01-012022-09-30 0001550603mlvf:MalvernBankMember2023-03-31 0001550603mlvf:MalvernBankMember2022-09-30 0001550603us-gaap:InterestRateSwapMember2022-10-012023-03-31 0001550603us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-31 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-31 0001550603us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2023-03-31 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2023-03-31 0001550603us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-09-30 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-09-30 0001550603us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2022-09-30 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2022-09-30 0001550603us-gaap:InterestRateSwapMember2023-01-012023-03-31 0001550603us-gaap:InterestRateSwapMember2022-01-012022-03-31 0001550603us-gaap:InterestRateSwapMember2021-10-012022-03-31 0001550603us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2023-01-012023-03-31 0001550603us-gaap:NondesignatedMember2023-01-012023-03-31 0001550603us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2022-01-012022-03-31 0001550603us-gaap:NondesignatedMember2022-01-012022-03-31 0001550603us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2022-10-012023-03-31 0001550603us-gaap:NondesignatedMember2022-10-012023-03-31 0001550603us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2021-10-012022-03-31 0001550603us-gaap:NondesignatedMember2021-10-012022-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMembermlvf:SingleIssuerTrustPreferredSecurityMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembermlvf:SingleIssuerTrustPreferredSecurityMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMembermlvf:SingleIssuerTrustPreferredSecurityMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembermlvf:SingleIssuerTrustPreferredSecurityMember2023-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2023-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2023-03-31 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-09-30 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-09-30 0001550603us-gaap:FairValueMeasurementsRecurringMembermlvf:SingleIssuerTrustPreferredSecurityMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembermlvf:SingleIssuerTrustPreferredSecurityMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMembermlvf:SingleIssuerTrustPreferredSecurityMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembermlvf:SingleIssuerTrustPreferredSecurityMember2022-09-30 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2022-09-30 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2022-09-30 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2022-09-30 0001550603us-gaap:FairValueMeasurementsRecurringMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-30 0001550603us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Member2022-09-30 0001550603us-gaap:FairValueInputsLevel3Member2022-10-012023-03-31 0001550603us-gaap:FairValueInputsLevel3Member2023-03-31 0001550603us-gaap:FairValueInputsLevel3Member2021-09-30 0001550603us-gaap:FairValueInputsLevel3Member2021-10-012022-03-31 0001550603us-gaap:FairValueInputsLevel3Member2022-03-31 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603us-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-03-31 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMembermlvf:MeasurementInputCollatoralDiscountMembersrt:WeightedAverageMembermlvf:AppraisalOfCollateralMember2023-03-31 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueMeasurementsNonrecurringMembermlvf:MeasurementInputCollatoralDiscountMembersrt:WeightedAverageMembermlvf:AppraisalOfCollateralMember2023-03-31 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603us-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-30 0001550603mlvf:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMembermlvf:MeasurementInputCollatoralDiscountMembersrt:WeightedAverageMembermlvf:AppraisalOfCollateralMember2022-09-30 0001550603mlvf:ImpairedLoansNetMemberus-gaap:FairValueMeasurementsNonrecurringMembermlvf:MeasurementInputCollatoralDiscountMembersrt:WeightedAverageMembermlvf:AppraisalOfCollateralMember2022-09-30 0001550603mlvf:ThreeCommercialRealEstateLoansMember2023-03-31 0001550603mlvf:OneCommercialRealEstateLoanMember2023-03-31 0001550603us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-03-31 0001550603us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherAssetsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherAssetsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-31 0001550603us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-09-30 0001550603us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherAssetsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherAssetsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-30 0001550603mlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2023-03-31 0001550603mlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMembermlvf:GrantedIn2022Member2022-10-012023-03-31 utr:Y 0001550603mlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-10-012023-03-31 0001550603mlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2021-10-012022-03-31 0001550603mlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2023-01-102023-03-31 0001550603us-gaap:EmployeeStockOptionMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2023-01-012023-03-31 0001550603us-gaap:EmployeeStockOptionMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-10-012023-03-31 0001550603us-gaap:EmployeeStockOptionMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-01-012022-03-31 0001550603us-gaap:EmployeeStockOptionMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2021-10-012022-03-31 0001550603us-gaap:RestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-10-012023-03-31 0001550603us-gaap:RestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2021-10-012022-03-31 0001550603us-gaap:RestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2023-01-012023-03-31 0001550603us-gaap:RestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-01-012022-03-31 0001550603mlvf:UnrestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2023-01-012023-03-31 0001550603mlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-09-30 0001550603mlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2021-09-30 0001550603mlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-03-31 0001550603us-gaap:EmployeeStockOptionMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2023-03-31 0001550603us-gaap:RestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-09-30 0001550603us-gaap:RestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2023-03-31 0001550603us-gaap:RestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2021-09-30 0001550603us-gaap:RestrictedStockMembermlvf:MalvernBancorpInc2014LongTermIncentiveCompensationPlanMember2022-03-31 0001550603us-gaap:CertificatesOfDepositMember2023-03-31 0001550603us-gaap:CertificatesOfDepositMember2022-09-30 0001550603mlvf:TheNotesMemberus-gaap:SubordinatedDebtMember2017-02-07 0001550603mlvf:TheNotesMemberus-gaap:SubordinatedDebtMember2022-02-15 0001550603mlvf:TheNotesMemberus-gaap:SubordinatedDebtMember2023-03-31 0001550603mlvf:TheNotesMemberus-gaap:SubordinatedDebtMembersrt:ScenarioForecastMembermlvf:LondonInterBankOfferedRateMember2022-02-152027-02-15 0001550603mlvf:MalvernBancorpIncMemberus-gaap:SubsequentEventMember2023-04-012023-04-30 0001550603us-gaap:SubsequentEventMembersrt:ChiefFinancialOfficerMember2023-04-012023-04-30 0001550603us-gaap:CorporateDebtSecuritiesMemberus-gaap:SubsequentEventMember2023-05-05 0001550603us-gaap:CorporateDebtSecuritiesMemberus-gaap:SubsequentEventMember2023-05-052023-05-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 000-54835

MALVERN BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Pennsylvania

45-5307782

(State or Other Jurisdiction of

Incorporation or Organization)

(IRS Employer

Identification No.)

42 East Lancaster Avenue, Paoli, Pennsylvania 19301

(Address of Principal Executive Offices) (Zip Code)

(610) 644-9400

(Registrant’s Telephone Number, Including Area Code)

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	MLVF	Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Common Stock, par value $0.01:	7,644,765 shares
(Title of Class)	(Outstanding as of May11, 2023)

Table of Contents

Table of Contents

		Page

PART I – FINANCIAL INFORMATION		3

Item 1.	Unaudited Financial Statements	4
	Consolidated Statements of Financial Condition at March 31, 2023 and September 30, 2022	4
	Consolidated Statements of Net Income for the three and six months ended March 31, 2023 and 2022	5
	Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended March 31, 2023 and 2022	6
	Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended March 31, 2023 and 2022	7
	Consolidated Statements of Cash Flows for the six months ended March 31, 2023 and 2022	8
	Notes to Unaudited Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Income	43

Item 3.	Qualitative and Quantitative Disclosures about Market Risk	57

Item 4.	Controls and Procedures	57

PART II – OTHER INFORMATION.		58

Item 1.	Legal Proceedings	58

Item 1A.	Risk Factors	58

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58

Item 3.	Default Upon Senior Securities	58

Item 4.	Mine Safety Disclosure	58

Item 5.	Other Information	58

Item 6.	Exhibits	58

SIGNATURES		59

Table of Contents

PART I – FINANCIAL INFORMATION

The following (a) consolidated statement of financial condition as of September 30, 2022, which has been derived from audited financial statements, and (b) unaudited consolidated financial statements, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal and recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year ending September 30, 2023, or for any interim period. The Malvern Bancorp, Inc. Annual Report on Form 10-K for the fiscal year ended September 30, 2022, filed with the Securities and Exchange Commission (the “SEC”) on December 27, 2022 (the “2023 Annual Report”), should be read in conjunction with these financial statements.

-3-

Table of Contents

Item 1. Financial Statements

MALVERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	*March 31,*			*September 30,*
	*2023*			*2022*
	(In thousands, except share data)
ASSETS
Cash and due from depository institutions	$	1,828		$	4,677
Interest-bearing deposits in depository institutions		29,627			48,590
Cash and Cash Equivalents		31,455			53,267
Investment securities available for sale, at fair value		48,199			49,844
Equity securities, at fair value		1,390			1,374
Investment securities held to maturity, at amortized cost		56,242			58,767
Restricted stock, at cost		6,815			7,104
Loans held-for-sale		13,232			13,780
Loans receivable, net of allowance for loan losses		786,000			801,854
Other real estate owned		200			259
Accrued interest receivable		4,829			4,252
Property and equipment, net		4,684			5,231
Fixed asset held-for-sale		375			—
Deferred income taxes		4,045			3,722
Bank-owned life insurance		26,241			26,233
Other assets		12,593			18,673
Total Assets	$	996,300		$	1,044,360
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Non-interest-bearing	$	49,662		$	58,014
Interest-bearing		690,520			727,309
Total Deposits		740,182			785,323
FHLB advances		75,000			80,000
Subordinated debt		25,000			25,000
Advances from borrowers for taxes and insurance		1,668			1,002
Accrued interest payable		1,246			543
Other liabilities		5,278			6,047
Total Liabilities		848,374			897,915
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; 7,839,281 and 7,644,765 shares issued and outstanding, respectively, at March 31, 2023 and 7,828,344 and 7,633,828 shares issued and outstanding, respectively, at September 30, 2022		76			76
Additional paid-in-capital		86,061			85,917
Retained earnings		69,726			67,247
Unearned Employee Stock Ownership Plan (ESOP) shares		(683	)		(756	)
Accumulated other comprehensive loss		(4,391	)		(3,176	)
Treasury stock, at cost: 194,516 shares at March 31, 2023 and September 30, 2022		(2,863	)		(2,863	)
Total Shareholders’ Equity		147,926			146,445
Total Liabilities and Shareholders’ Equity	$	996,300		$	1,044,360

See accompanying notes to unaudited consolidated financial statements.

-4-

Table of Contents

MALVERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited)

	*Three Months Ended March 31,*				*Six Months Ended March 31,*
	*2023*		*2022*		*2023*		*2022*
	*(In thousands, except share data)*
Interest and Dividend Income
Loans, including fees	$	9,354	$	7,628	$	18,504	$	15,856
Investment securities, taxable		664		521		1,333		976
Investment securities, tax-exempt		147		64		298		100
Dividends, restricted stock		146		75		259		166
Interest-bearing deposits		200		16		467		29
Total Interest and Dividend Income		10,511		8,304		20,861		17,127
Interest Expense
Deposits		2,644		828		4,474		1,873
Short-term borrowings		40		—		49		—
Long-term borrowings		547		183		874		420
Subordinated debt		706		339		1,136		722
Total Interest Expense		3,937		1,350		6,533		3,015
Net Interest Income		6,574		6,954		14,328		14,112
Provision for Loan Losses		-		-		-		-
Net Interest Income after Provision for Loan losses		6,574		6,954		14,328		14,112
Other Income
Service charges and other fees		256		219		433		673
Rental income		48		48		97		100
Net gains on sale of loans		6		11		14		63
Earnings on bank-owned life insurance		373		283		546		452
Other real estate owned income, net		—		—		10		—
Total Other Income		683		561		1,100		1,288
Other Expenses
Salaries and employee benefits		2,567		2,347		5,149		4,642
Occupancy expense		556		546		1,093		1,061
Federal deposit insurance premium		119		71		183		147
Advertising		33		32		65		64
Data processing		299		359		574		679
Professional fees		894		868		1,657		1,923
Other real estate owned expense, net		69		—		—		5
Pennsylvania shares tax		193		169		320		339
Merger related expense		492		—		1,003		—
Non-recurring expense		550		—		550		—
Other operating expenses		684		2,453		1,556		3,213
Total Other Expenses		6,456		6,845		12,150		12,073
Income before income tax expense		801		670		3,278		3,327
Income tax expense		230		148		799		788
Net Income	$	571	$	522	$	2,479	$	2,539
Earnings Per Common Share:
Basic	$	0.08	$	0.07	$	0.33	$	0.34
Diluted	$	0.08	$	0.07	$	0.33	$	0.34
Weighted Average Common Shares Outstanding:
Basic		7,589,945		7,554,955		7,584,348		7,553,262
Diluted		7,594,224		7,556,194		7,587,127		7,554,459

See accompanying notes to unaudited consolidated financial statements.

-5-

Table of Contents

MALVERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	*Three Months Ended March 31,*				*Six Months Ended March 31,*
	*2023*		*2022*		*2023*		*2022*
	(In thousands)
Net Income		$ 571		$ 522		$ 2,479		$ 2,539
Other Comprehensive Income, Net of Tax:
Unrealized holding gains (losses) on available-for-sale securities		(1,135)		(2,588)		(541)		(2,737)
Tax effect		239		543		114		574
Net of tax amount		(896)		(2,045)		(427)		(2,163)
Amortization of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity (1)		1		2		2		4
Tax effect		(1)		(2)		(2)		(3)
Net of tax amount		—		—		—		1
Fair value adjustments on derivatives (2)		(747)		1,773		(994)		2,252
Tax effect		155		(372)		206		(473)
Net of tax amount		(592)		1,401		(788)		1,779
Total other comprehensive loss		(1,488)		(644)		(1,215)		(383)
Total comprehensive (loss) income		$ (917)		$ (122)		$ 1,264		$ 2,156

	(1)	Amounts are included in interest and dividends on investment securities on the consolidated Statement of Net Income.
	(2)	See footnote 9 for additional details on amount of gains on derivatives reclassified to interest expense.

See accompanying notes to unaudited consolidated financial statements.

-6-

Table of Contents

MALVERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

	Three Months Ended March 31, 2023 and 2022
										*Accumulated*
			*Additional*				*Unearned*			*Other*						*Total*
	*Common*		*Paid-In*		*Retained*		*ESOP*			*Comprehensive*			*Treasury*			*Shareholders'*
	*Stock*		*Capital*		*Earnings*		*Shares*			*Income (Loss)*			*Stock*			*Equity*
	(In thousands, except share data)
Balance, January 1, 2022	$	76	$	85,599	$	62,313	$	(865	)	$	297		$	(2,863	)	$	144,557
Net income		—		—		522		—			—			—			522
Other comprehensive income (loss)		—		—		—		—			(644	)		—			(644	)
Committed to be released ESOP shares (3,600 shares)		—		22		—		36			—			—			58
Stock based compensation		—		57		—		—			—			—			57
Balance, March 31, 2022	$	76	$	85,678	$	62,835	$	(829	)	$	(347	)	$	(2,863	)	$	144,550

Balance, January 1, 2023	$	76	$	85,988	$	69,155	$	(718	)	$	(2,903	)	$	(2,863	)	$	148,735
Net income		—		—		571		—			—			—			571
Other comprehensive income (loss)		—		—		—		—			(1,488	)		—			(1,488	)
Committed to be released ESOP shares (3,600 shares)		—		26		—		35			—			—			61
Stock based compensation		—		47		—		—			—			—			47
Balance, March 31, 2023	$	76	$	86,061	$	69,726	$	(683	)	$	(4,391	)	$	(2,863	)	$	147,926

See accompanying notes to unaudited consolidated financial statements.

	Six Months Ended March 31, 2023 and 2022
										*Accumulated*
			*Additional*				*Unearned*			*Other*						*Total*
	*Common*		*Paid-In*		*Retained*		*ESOP*			*Comprehensive*			*Treasury*			*Shareholders'*
	*Stock*		*Capital*		*Earnings*		*Shares*			*Income (Loss)*			*Stock*			*Equity*
	(In thousands, except share data)
Balance, October 1, 2021	$	76	$	85,524	$	60,296	$	(901	)	$	36		$	(2,863	)	$	142,168
Net income		—		—		2,539		—			—			—			2,539
Other comprehensive loss		—		—		—		—			(383	)		—			(383	)
Committed to be released ESOP shares (7,200 shares)		—		45		—		72			—			—			117
Stock based compensation		—		109		—		—			—			—			109
Balance, March 31, 2022	$	76	$	85,678	$	62,835	$	(829	)	$	(347	)	$	(2,863	)	$	144,550

Balance, October 1, 2022	$	76	$	85,917	$	67,247	$	(756	)	$	(3,176	)	$	(2,863	)	$	146,445
Net income		—		—		2,479		—			—			—			2,479
Other comprehensive loss		—		—		—		—			(1,215	)		—			(1,215	)
Committed to be released ESOP shares (7,200 shares)		—		43		—		73			—			—			116
Stock based compensation		—		101		—		—			—			—			101
Balance, March 31, 2023	$	76	$	86,061	$	69,726	$	(683	)	$	(4,391	)	$	(2,863	)	$	147,926

See accompanying notes to unaudited consolidated financial statements.

-7-

Table of Contents

MALVERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	*Six Months Ended March 31,*
	*2023*			*2022*
	(In thousands)
Cash Flows from Operating Activities
Net income	$	2,479		$	2,539
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		288			316
Valuation allowance for loan held for sale		—			1,683
Deferred income tax benefit		(396	)		(102	)
ESOP expense		116			117
Stock based compensation		101			109
Amortization of premiums and discounts on investments securities, net		238			144
Amortization (accretion) of loan origination fees and costs		(45	)		64
(Accretion) amortization of mortgage servicing rights		7			(13	)
Net gain on sale of secondary market loans		(14	)		(63	)
Proceeds from sale of secondary market loans		1,774			3,108
Originations of secondary market loans		(1,212	)		(3,045	)
Write down of other real estate owned		59			—
Earnings on bank-owned life insurance		(546	)		(452	)
(Increase) decrease in accrued interest receivable		(577	)		34
Increase (decrease) in accrued interest payable		703			(220	)
Operating lease liability payments		259			(293	)
Increase (decrease) in other liabilities		(769	)		3,816
Decrease in other assets		5,728			2,307
Amortization of subordinated debt issuance costs		—			66
Net cash provided by operating activities		8,193			10,115
Cash Flows from Investing Activities
Investment securities available-for-sale:
Purchases		—			(17,569	)
Maturities, calls and principal repayments		1,065			1,455
Investment securities held-to-maturity:
Purchases		—			(23,783	)
Maturities, calls and principal repayments		2,332			3,640
Proceeds from sale of loans held for sale		—			18,900
Net decrease in loans held for investment		15,899			104,290
Net decrease in restricted stock		289			1,314
Purchase of property and equipment		(115	)		(26	)
Net cash provided by investing activities		19,470			88,221
Cash Flows from Financing Activities
Net decrease in deposits		(45,141	)		(83,722	)
Repayment of borrowings		(5,000	)		(30,000	)
Increase in advances from borrowers for taxes and insurance		666			819
Net cash used in financing activities		(49,475	)		(112,903	)
Net Decrease in Cash and Cash Equivalents		(21,812	)		(14,567	)
Cash and Cash Equivalents - Beginning		53,267			136,590
Cash and Cash Equivalents - Ending	$	31,455		$	122,023
Supplemental Cash Flows Information
Interest paid	$	5,830		$	3,235
Income taxes paid	$	—		$	—
Non-cash investing activities:
Transfer of property and equipment to held-for-sale	$	375		$	—
Bank owned life insurance death benefit proceeds receivable	$	539		$	612

See accompanying notes to unaudited consolidated financial statements.

-8-

Table of Contents

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – The Company

Malvern Bancorp, Inc. (the “Company” or “Malvern Bancorp”), a Pennsylvania corporation, is a bank holding company registered under the Bank Holding Company Act of 1956, as amended (the “Holding Company Act”). Malvern Bancorp is the holding company for Malvern Bank, National Association (“Malvern Bank” or the “Bank”), a national bank that was originally organized in 1887 as a federally-chartered savings bank.

The Company’s primary business is the ownership and operation of the Bank. The Bank’s principal business consists of attracting deposits from businesses and the general public and investing those deposits, together with borrowings and funds generated from operations, in commercial and multi-family real estate loans, one-to-four family residential real estate loans, construction and development loans, commercial business loans, home equity loans, lines of credit, and other consumer loans. The Company also invests in and maintains a portfolio of investment securities, primarily comprised of corporate bonds, mortgage-backed securities, U.S. agency and municipal obligations. Malvern Bank is one of the oldest banks headquartered on the Philadelphia Main Line. For more than a century, the Bank has been committed to helping people build prosperous communities as a trusted financial partner, forging lasting relationships through teamwork, respect, and integrity. The Bank’s primary market niche is providing personalized service to its client base.

The Bank conducts business from its headquarters in Paoli, Pennsylvania, a suburb of Philadelphia, and through its nine other banking locations in Chester and Delaware counties, Pennsylvania, Morristown, New Jersey, its New Jersey regional headquarters, and Palm Beach, Florida. The Bank also maintains a representative office in Allentown, Pennsylvania.

In preparing the unaudited consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the unaudited consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to change in the near term relate to the determination of the allowance for loan losses, other real estate owned, the evaluation of deferred tax assets, the other-than-temporary impairment evaluation of securities, the valuation of derivative positions and the evaluation of contingent liability. The unaudited consolidated financial statements have been prepared in conformity with GAAP.

As used in this Quarterly Report on Form 10-Q, the terms “Malvern”, “the Company”, “registrant”, “we”, “us”, and “our” mean Malvern Bancorp, Inc. and its subsidiaries, on a consolidated basis, unless the context indicates otherwise.

Note 2 – Summary of Significant Accounting Policies

Basis of financial statement presentation. The unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements present the Company’s financial condition at March 31, 2023 and the results of operations for the three and six months ended March 31, 2023 and 2022, and cash flows for the six months ended March 31, 2023 and 2022. The consolidated statement of financial condition as of September 30, 2022 was derived from the audited consolidated statement of financial condition as of that date.

In management’s opinion, the unaudited condensed consolidated financial statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of operations as of the dates and for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the 2022 Annual Report filed with the SEC. The consolidated statements of net income for the three and six months ended March 31, 2023 and the consolidated statements of cash flows for the three and six months ended March 31, 2023 are not necessarily indicative of the results of operations or cash flows for the full fiscal year ending September 30, 2023 or any interim period. Subsequent events have been evaluated through the date of the issuance of the unaudited consolidated financial statements.

- 9-

Table of Contents

Recent Accounting Pronouncements Yet to Be Adopted

Credit Losses. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied currently will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, this ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. As amended, ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements. Although no financial impacts have been determined the Company expects this ASU to have a significant impact on the methodology for calculating the ALLL.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. These amendments eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements.

Derivatives and Hedging. In March 2022, FASB ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. This update will allow non-prepayable financial assets to be included in a closed portfolio hedge using the portfolio method, rather than only prepayable assets. It also allows entities to hedge multiple layers rather than just a single layer of closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. The guidance is effective for public business entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2022. The Company is currently evaluating the effects, if any, that the adoption of this amendment will have on its consolidated financial statements.

- 10-

Table of Contents

Note 3 - Business Combinations

Pending Business Combination – First Bank

On December 13, 2022, Malvern Bancorp, Malvern Bank and First Bank (“First Bank”) entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which and subject to the terms and conditions of the Merger Agreement, Malvern Bancorp will merge with and into First Bank (through a newly created merger subsidiary of First Bank) immediately followed by the merger of Malvern Bank with and into First Bank, with First Bank continuing as the surviving corporation in each case (collectively, the “Merger”). At the effective time of the Merger each share of common stock of Malvern Bancorp will be converted into the right to receive $7.80 in cash and 0.7733 shares of common stock, par value $5.00 per share, of First Bank, subject to adjustment in accordance with the terms of the Merger Agreement if Malvern’s adjusted shareholders’ equity as of the tenth day prior to the closing of the Merger does does not equal or exceed $140,000,000.

The Merger Agreement was unanimously approved by the board of directors of each of First Bank, Malvern Bancorp and Malvern Bank. On April 28, 2023, Malvern Bancorp held a special meeting of shareholders related to the Merger, primarily for purposes of the Malvern Bancorp shareholders voting on the proposal to adopt the Merger Agreement. At the special meeting, the Malvern Bancorp shareholders voted to approve the proposal to adopt the Merger Agreement, and also approved the related shareholder proposals with respect to executive compensation that will or may be paid in connection with the Merger. Also on April 28, 2023, First Bank held its annual meeting of shareholders to vote upon, among other things, the proposal for First Bank to adopt the Merger Agreement. The First Bank shareholders voted to approve the proposal to adopt the Merger Agreement. Accordingly, both Malvern Bancorp and First Bank have obtained the necessary shareholder approval to consummate the Merger in accordance with the terms of the Merger Agreement.

The Merger is anticipated to be completed in the second quarter of 2023, but remains subject to regulatory approval and other customary closing conditions.

Malvern Bancorp recorded $1.0 million of merger-related expenses for the six months ended March 31, 2023 related to the pending merger with First Bank. These expenses primarily consisted of legal and professional fees.

Note 4 – Earnings Per Share

Basic earnings per common share is computed based on the weighted average number of shares outstanding reduced by unearned Employee Stock Ownership Plan (“ESOP”) shares. Diluted earnings per share is computed based on the weighted average number of shares outstanding and common stock equivalents that would arise from the exercise of dilutive securities, reduced by unearned ESOP shares. During the three and six months ended March 31, 2023 , the Company granted 4,200 and 6,958 restricted shares, respectively. The Company also granted 3,979 unrestricted shares during the three and six months ended March 31, 2023. During the three and six months ended March 31, 2023 the Company granted 6,000 stock options. During the three and six months ended March 31, 2023 the Company granted 5,131 restricted shares and 2,336 shares were forfeited for the six months ended March 31, 2023. There were no unrestricted shares or stock options granted during the three and six months ended March 31, 2022. There were 1,120 and 1,216 restricted shares forfeited during the three and six months ended March 31, 2022, respectively. During the three and six months ended March 31, 2023, there were 4,560 and 5,394 shares considered anti-dilutive and excluded from diluted weighted average shares outstanding while during the same period in 2022, there were 4,356 and 5,306 anti-dilutive shares.

The following table sets forth the composition of the weighted average shares (denominator) used in the earnings per share computations:

	*Three Months Ended March 31,*						*Six Months Ended March 31,*
	*2023*			*2022*			*2023*			*2022*
	(In thousands, except share and per share data)
Net Income	$	571		$	522		$	2,479		$	2,539
Weighted average shares outstanding		7,641,690			7,621,100			7,637,913			7,621,227
Average unearned ESOP shares		(51,745	)		(66,145	)		(53,565	)		(67,965	)
Basic weighted average shares outstanding		7,589,945			7,554,955			7,584,348			7,553,262
Plus: effect of potential dilutive common stock equivalents - stock options		4,279			1,239			2,779			1,197
Diluted weighted average common shares outstanding		7,594,224			7,556,194			7,587,127			7,554,459
Earnings per common share:
Basic	$	0.08		$	0.07		$	0.33		$	0.34
Diluted	$	0.08		$	0.07		$	0.33		$	0.34

Note 5 – Employee Stock Ownership Plan

The Company maintains an ESOP for substantially all of its full-time employees. The current ESOP trustee is Pentegra. Shares of the Company’s common stock purchased by the ESOP are held until released for allocation to participants. Shares released are allocated to each eligible participant based on the ratio of each such participant’s base compensation to the total base compensation of all eligible plan participants. As the unearned shares are committed to be released and allocated among participants, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to additional paid-in capital. During the period from May 20, 2008 to September 30, 2008, the ESOP purchased 241,178 shares of Company common stock for approximately $2.6 million, at an average price of $10.86 per share, which was funded by a loan from Malvern Federal Bancorp, Inc. (the Company’s predecessor). The ESOP loan, which bears an interest rate of 5%, is being repaid in quarterly installments through 2026 principally from the Bank’s contributions to the ESOP. Shares are released to participants proportionately as the ESOP loan is repaid. During the three and six months ended March 31, 2023 and 2022, there were 3,600 and 7,200 shares, respectively, committed to be released. At March 31, 2023, there were 46,943 unallocated shares held by the ESOP. The unallocated shares had an aggregate fair value of approximately $714,000 at March 31, 2023.

- 11-

Table of Contents

Note 6 - Investment Securities

The Company’s investment in debt securities are classified as available-for-sale or held-to-maturity. Investment securities available-for-sale are reported at fair value with unrealized gains or losses included in shareholder’s equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value at the balance sheet date. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. Held-to-maturity securities, which are carried at amortized cost, are investments where there is positive intent and ability to hold to maturity. Equity securities are stated at fair value with any changes in fair value reported in other income.

Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted using the effective interest method over the life of the security as an adjustment of yield. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted over the remaining life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount.

The following tables present information related to the Company’s investment securities at March 31, 2023 and September 30, 2022:

	*March 31, 2023*
			*Gross*		*Gross*
	*Amortized*		*Unrealized*		*Unrealized*			*Fair*
	*Cost*		*Gains*		*Losses*			*Value*
	(In thousands)
Investment Securities Available-for-Sale:
U.S. government agencies	$	5,000	$	—	$	(1,283	)	$	3,717
State and municipal obligations		11,951		—		(1,635	)		10,316
Single issuer trust preferred security		1,000		—		(54	)		946
Corporate debt securities		35,000		—		(5,330	)		29,670
Mortgage Backed Security ("MBS")		2,347		—		(255	)		2,092
U.S. Treasury Note		1,492		—		(34	)		1,458
Total		56,790		—		(8,591	)		48,199
Investment Securities Held-to-Maturity:
U.S. government agencies		27,690		—		(4,328	)		23,362
State and municipal obligations		17,625		—		(1,326	)		16,299
Corporate debt securities		3,202		—		(86	)		3,116
Mortgage-backed securities:
MBS		2,229		—		(434	)		1,795
Collateralized mortgage obligations (“CMO”), fixed-rate		5,496		—		(402	)		5,094
Total		56,242		—		(6,576	)		49,666
Equity Securities:
Mutual Funds		1,500		—		(110	)		1,390
Total		1,500		—		(110	)		1,390
Total investment securities	$	114,532	$	—	$	(15,277	)	$	99,255

- 12-

Table of Contents

	*September 30, 2022*
			*Gross*		*Gross*
	*Amortized*		*Unrealized*		*Unrealized*			*Fair*
	*Cost*		*Gains*		*Losses*			*Value*
	(In thousands)
Investment Securities Available-for-Sale:
U.S. government agencies	$	5,000		—	$	(1,420	)	$	3,580
State and municipal obligations		12,014		—		(2,354	)		9,660
Single issuer trust preferred security		1,000		—		(54	)		946
Corporate debt securities		35,990		—		(3,862	)		32,128
MBS		2,403		—		(316	)		2,087
U.S. Treasury		1,488		—		(45	)		1,443
Total		57,895		—		(8,051	)		49,844
Investment Securities Held-to-Maturity:
U.S. government agencies		29,190		—		(4,907	)		24,283
State and municipal obligations		18,017		—		(2,526	)		15,491
Corporate debt securities		3,264		—		(96	)		3,168
Mortgage-backed securities:
MBS		2,278		—		(489	)		1,789
CMO		6,018		—		(483	)		5,535
Total		58,767		—		(8,501	)		50,266
Equity Securities:
Mutual Funds		1,500		—		(126	)		1,374
Total		1,500		—		(126	)		1,374
Total investment securities	$	118,162	$	—	$	(16,678	)	$	101,484

For the six months ended March 31, 2023 there was one 1.0 million available-for-sale investment security called, one $10,000 available-for-sale investment security partially called, and three held-to-maturity investment securities totaling $2.0 million matured. There were no sales or called investment securities during the same period. For the six months ended March 31, 2022, $945,000 and $2.5 million of available-for-sale and held-to-maturity investment securities, respectively, were called, one $10,000 available-for-sale investment security partially called, and one $250,000 mutual fund equity security matured. No purchases were made for during the three and six months ended March 31, 2023.

The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position, at March 31, 2023 and September 30, 2022:

	*March 31, 2023*
	*Less than 12 Months*					*12 Months or more*					*Total*
	*Fair*		*Unrealized*			*Fair*		*Unrealized*			*Fair*		*Unrealized*
	*Value*		*Losses*			*Value*		*Losses*			*Value*		*Losses*
	(In thousands)
Investment Securities Available for Sale:
U.S. government agencies	$	—	$	—		$	3,717	$	(1,283	)	$	3,717	$	(1,283	)
State and municipal obligations		1,209		(11	)		9,107		(1,624	)		10,316		(1,635	)
Single issuer trust preferred security		—		—			946		(54	)		946		(54	)
Corporate debt securities		1,829		(171	)		27,841		(5,159	)		29,670		(5,330	)
MBS		—		—			2,092		(255	)		2,092		(255	)
U.S. Treasury Note		—		—			1,458		(34	)		1,458		(34	)
Total	$	3,038	$	(182	)	$	45,161	$	(8,409	)	$	48,199	$	(8,591	)
Investment Securities Held-to-Maturity:
U.S. government agencies	$	4,161	$	(29	)	$	19,201	$	(4,299	)	$	23,362	$	(4,328	)
State and municipal obligations		3,020		(22	)		13,279		(1,304	)		16,299		(1,326	)
Corporate securities		—		—			3,116		(86	)		3,116		(86	)
Mortgage-backed securities:
MBS		—		—			1,795		(434	)		1,795		(434	)
CMO		1,071		(21	)		4,023		(381	)		5,094		(402	)
Total	$	8,252	$	(72	)	$	41,414	$	(6,504	)	$	49,666	$	(6,576	)
Equity Securities
Mutual funds		1,390		(110	)		—		—			1,390		(110	)
Total Mutual funds		1,390		(110	)		—		—			1,390		(110	)
Total investment securities	$	12,680	$	(364	)	$	86,575	$	(14,913	)	$	99,255	$	(15,277	)

- 13-

Table of Contents

	*September 30, 2022*
	*Less than 12 Months*					*12 Months or more*					*Total*
	*Fair*		*Unrealized*			*Fair*		*Unrealized*			*Fair*		*Unrealized*
	*Value*		*Losses*			*Value*		*Losses*			*Value*		*Losses*
	(In thousands)
Investment Securities Available for Sale:
U.S. government agencies	$	—	$	—		$	3,580	$	(1,420	)	$	3,580	$	(1,420	)
State and municipal obligations		9,660		(2,354	)		—		—			9,660		(2,354	)
Single issuer trust preferred security		—		—			946		(54	)		946		(54	)
Corporate debt securities		26,717		(3,273	)		5,411		(589	)		32,128		(3,862	)
MBS		2,087		(316	)		—		—			2,087		(316	)
U.S. Treasury Note		1,443		(45	)		—		—			1,443		(45	)
Total investment securities	$	39,907	$	(5,988	)	$	9,937	$	(2,063	)	$	49,844	$	(8,051	)
Investment Securities Held-to-Maturity:
U.S. government agencies	$	18,662	$	(3,028	)	$	5,621	$	(1,879	)	$	24,283	$	(4,907	)
State and municipal obligations		15,491		(2,526	)		—		—			15,491		(2,526	)
Corporate securities		3,167		(96	)		—		—			3,167		(96	)
Mortgage-backed securities:
MBS		—		—			1,789		(489	)		1,789		(489	)
CMO		5,536		(483	)		—		—			5,536		(483	)
Total	$	42,856	$	(6,133	)	$	7,410	$	(2,368	)	$	50,266	$	(8,501	)
Equity Securities
Mutual funds		1,500		(126	)		—		—			1,374		(126	)
Total Mutual funds		1,500		(126	)		—		—			1,374		(126	)
Total investment securities	$	84,263	$	(12,247	)	$	17,347	$	(4,431	)	$	101,484	$	(16,678	)

As of March 31, 2023, the estimated fair value of the securities disclosed above was primarily dependent upon the movement in market interest rates, particularly given the inherent credit risk associated with these securities. These investment securities are comprised of securities that are rated investment grade by at least one bond credit rating service. Although the fair value will fluctuate as the market interest rates move, management believes that these fair values will recover as the underlying portfolios mature and are reinvested in market rate yielding investments. As of March 31, 2023, the Company held 13 corporate debt securities, 11 municipal bonds, one U.S. government agency, one U.S. Treasury note, one mortgage-backed security, and one single issuer trust preferred security which were all in an unrealized loss position. The Company does not intend to sell, and expects that it is not more likely than not that it will be required to sell, these securities until such time as the value recovers or the securities mature. Management does not believe any individual unrealized loss as of March 31, 2023 represents an other-than-temporary impairment. The decrease in market value is primarily due to an increase in overall in interest rates, primarily the recent Federal Reserve interest rate hikes.

Investment securities having a carrying value of $33.8 million and $11.9 million at March 31, 2023 and September 30, 2022, respectively, were pledged to secure public funds deposits, prospective Federal Reserve Board discount window borrowings, and prospective Federal Reserve Board Bank Term Funding Program borrowings. No investment securities were pledged to secure hedges at March 31, 2023 or September 30, 2022. No investment securities were pledged to secure short-term borrowings at March 31, 2023 and September 30, 2022.

- 14-

Table of Contents

The following table presents information for investment securities at March 31, 2023, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer.

	*March 31, 2023*
	*Amortized Cost*		*Fair Value*
	(In thousands)
Available-for-Sale:
Over 1 year through 5 years	$	6,212	$	6,019
After 5 years through 10 years		31,812		26,828
Over 10 years		16,419		13,260
Mortgage-backed securities:
MBS		2,347		2,092
Total Available-for-sale securities		56,790		48,199
Held-to-Maturity:
Within 1 year		5,044		5,008
Over 1 year through 5 years		8,978		8,759
After 5 years through 10 years		3,111		2,709
Over 10 years		31,384		26,301
Mortgage-backed securities:
MBS		2,229		1,795
CMO		5,496		5,094
Total Held-to-maturity securities		56,242		49,666
Equity Securities:
Within 1 year		1,000		890
After 5 years through ten years		500		500
Total Equity securities		1,500		1,390
Total investment securities	$	114,532	$	99,255

- 15-

Table of Contents

Note 7 – Loans Receivable and Related Allowance for Loan Losses

Loans receivable in the Company’s portfolio consisted of the following at the dates indicated below:

	*March 31, 2023*			*September 30, 2022*
	(In thousands)
Residential Mortgage	$	163,734		$	175,957
Construction and Development:
Residential and commercial		18,966			24,362
Land		540			550
Total Construction and Development		19,506			24,912
Commercial:
Commercial real estate		402,503			406,914
Farmland		13,560			11,506
Multi-family		61,272			55,295
Commercial and industrial		104,781			102,703
Other		10,417			13,356
Total Commercial		592,533			589,774
Consumer:
Home equity lines of credit		13,002			13,233
Second mortgages		3,577			4,395
Other		2,210			2,136
Total Consumer		18,789			19,764
Total loans		794,562			810,407
Deferred loan fees and costs, net		536			537
Allowance for loan losses		(9,098	)		(9,090	)
Total loans receivable, net of allowance for loan losses	$	786,000		$	801,854

- 16-

Table of Contents

The following tables summarize the primary classes of the allowance for loan losses (“ALLL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment, as of March 31, 2023 and September 30, 2022. Activity in the ALLL is presented for the three and six months ended March 31, 2023 and 2022 and the fiscal year ended September 30, 2022:

				*Construction and*
				*Development*					*Commercial*													*Consumer*
	*Residential*			*Residential and*					*Commercial*					*Multi-*		*Commercial and*						*Home Equity Lines of*			*Second*
	*Mortgage*			*Commercial*			*Land*		*Real Estate*			*Farmland*		*Family*		*Industrial*			*Other*			*Credit*			*Mortgages*			*Other*			*Unallocated*		*Total*
Allowance for loan losses:	(In thousands)
Three Months Ended March 31, 2023
Beginning balance	$	795		$	123		$	3	$	5,976		$	57	$	270	$	996		$	54		$	65		$	16		$	15		$	729	$	9,099
Charge-offs		—			—			—		—			—		—		—			—			—			(8	)		—			—		(8	)
Recoveries		1			—			—		1			—		—		1			—			1			3			—			—		7
Provisions		(59	)		(21	)		—		(55	)		12		61		(37	)		(11	)		(3	)		4			(3	)		112		—
Ending balance	$	737		$	102		$	3	$	5,922		$	69	$	331	$	960		$	43		$	63		$	15		$	12		$	841	$	9,098

				*Construction and*
				*Development*					*Commercial*														*Consumer*
	*Residential*			*Residential and*					*Commercial*					*Multi-*			*Commercial and*						*Home Equity Lines of*		*Second*
	*Mortgage*			*Commercial*			*Land*		*Real Estate*			*Farmland*		*Family*			*Industrial*			*Other*			*Credit*		*Mortgages*			*Other*			*Unallocated*		*Total*
Allowance for loan losses:	(In thousands)
Three Months Ended March 31, 2022
Beginning balance	$	935		$	428		$	15	$	7,118		$	56	$	450		$	791		$	54		$	76	$	6		$	20		$	88	$	10,037
Charge-offs		-			-			-		-			-		-			(764	)		-			-		(21	)		-			-		(785	)
Recoveries		-			-			-		1			-		-			1			-			-		47			-			-		49
Provisions		(121	)		(276	)		12		(914	)		218		(123	)		1,169			(54	)		2		69			(3	)		21		-
Ending balance	$	814		$	152		$	27	$	6,205		$	274	$	327		$	1,197		$	—		$	78	$	101		$	17		$	109	$	9,301

			*Construction and*
			*Development*					*Commercial*													*Consumer*
	*Residential*		*Residential and*					*Commercial*					*Multi-*		*Commercial and*						*Home Equity Lines of*			*Second*
	*Mortgage*		*Commercial*			*Land*		*Real Estate*			*Farmland*		*Family*		*Industrial*			*Other*			*Credit*			*Mortgages*			*Other*			*Unallocated*		*Total*
Allowance for loan losses:	(In thousands)
Six Months Ended March 31, 2023
Beginning balance	$	708	$	131		$	3	$	6,040		$	57	$	298	$	1,158		$	55		$	67		$	21		$	15		$	537	$	9,090
Charge-offs		—		—			—		—			—		—		—			—			—			(8	)		—			—		(8	)
Recoveries		6		—			—		3			—		—		1			—			1			5			—			—		16
Provisions		23		(29	)		—		(121	)		12		33		(199	)		(12	)		(5	)		(3	)		(3	)		304		—
Ending balance	$	737	$	102		$	3	$	5,922		$	69	$	331	$	960		$	43		$	63		$	15		$	12		$	841	$	9,098
Ending balance: individually evaluated for impairment		—	$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—		$	—		—
Ending balance: collectively evaluated for impairment		737		102			3		5,922			69		331		960			43			63			15			12			841		9,098

Loans receivable:
Ending balance	$	163,734	$	18,966		$	540	$	402,503		$	13,560	$	61,272	$	104,781		$	10,417		$	13,002		$	3,577		$	2,210				$	794,562
Ending balance: individually evaluated for impairment	$	—	$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—				$	—
Ending balance: collectively evaluated for impairment	$	163,734	$	18,966		$	540	$	402,503		$	13,560	$	61,272	$	104,781		$	10,417		$	13,002		$	3,577		$	2,210				$	794,562

				*Construction and*
				*Development*					*Commercial*														*Consumer*
	*Residential*			*Residential and*					*Commercial*					*Multi-*			*Commercial and*						*Home Equity Lines of*		*Second*
	*Mortgage*			*Commercial*			*Land*		*Real Estate*			*Farmland*		*Family*			*Industrial*			*Other*			*Credit*		*Mortgages*			*Other*			*Unallocated*		*Total*
Allowance for loan losses:	(In thousands)
Six Months Ended March 31, 2022
Beginning balance	$	934		$	428		$	15	$	7,043		$	56	$	450		$	2,221		$	54		$	76	$	87		$	20		$	88	$	11,472
Charge-offs		—			—			—		—			—		—			(2,194	)		—			—		(105	)		—			—		(2,299	)
Recoveries		1			—			—		76			—		—			1			—			—		50			—			—		128
Provisions		(121	)		(276	)		12		(914	)		218		(123	)		1,169			(54	)		2		69			(3	)		21		—
Ending balance	$	814		$	152		$	27	$	6,205		$	274	$	327		$	1,197		$	—		$	78	$	101		$	17		$	109	$	9,301
Ending balance: individually evaluated for impairment		58		$	—		$	—	$	—		$	180	$	—		$	5		$	—		$	—	$	—		$	—		$	—	$	243
Ending balance: collectively evaluated for impairment	$	756		$	152		$	27	$	6,205		$	94	$	327		$	1,192		$	—		$	78	$	101		$	17		$	109	$	9,058

- 17-

Table of Contents

			*Construction and*
			*Development*				*Commercial*										*Consumer*
	*Residential*		*Residential and*				*Commercial*				*Multi-*		*Commercial and*				*Home Equity Lines of*		*Second*
	*Mortgage*		*Commercial*		*Land*		*Real Estate*		*Farmland*		*Family*		*Industrial*		*Other*		*Credit*		*Mortgages*		*Other*		*Unallocated*		*Total*
Allowance for loan losses:	(In thousands)
Year Ended September 30, 2022
Ending balance	$	708	$	131	$	3	$	6,040	$	57	$	298	$	1,158	$	55	$	67	$	21	$	15	$	537	$	9,090
Ending balance: individually evaluated for impairment	$	54	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	54
Ending balance: collectively evaluated for impairment	$	654	$	131	$	3	$	6,040	$	57	$	298	$	1,158	$	55	$	67	$	21	$	15	$	537	$	9,036

Loans receivable:
Ending balance	$	175,957	$	24,362	$	550	$	406,914	$	11,506	$	55,295	$	102,703	$	13,356	$	13,233	$	4,395	$	2,136			$	810,407
Ending balance: individually evaluated for impairment	$	477	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—			$	477
Ending balance: collectively evaluated for impairment	$	175,480	$	24,362	$	550	$	406,914	$	11,506	$	55,295	$	102,703	$	13,356	$	13,233	$	4,395	$	2,136			$	809,930

In assessing the adequacy of the ALLL, it is recognized that the process, methodology and underlying assumptions require a significant degree of judgment. The estimation of loan losses is not precise; the range of factors considered is wide and is significantly dependent upon management’s judgment, including the outlook and potential changes in the economic environment. At present, reduction of the commercial loan portfolio and increased historical loss levels are factored in assessing the portfolio. Any unallocated portion of the ALLL in conjunction with the quarterly review and changes to the qualitative factors to adjust for the risk due to current economic conditions reflects management’s estimate of probable inherent but undetected losses within the portfolio due to uncertainties in economic conditions, regulatory requirements, delays in obtaining information, including unfavorable information about a borrower’s financial condition, the difficulty in identifying triggering events that correlate perfectly to subsequent loss rates, and risk factors that have not yet manifested themselves in loss allocation factors.

- 18-

Table of Contents

Total impaired loans increased $4.8 million from $19.7 million at September 30, 2022 to $24.5 million at March 31, 2023, primarily due to the additional impairment of one commercial and industrial loan at a carrying value of $4.8 million.

The following table presents impaired loans in the portfolio by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary, as of March 31, 2023 and September 30, 2022:

					*Impaired*
					*Loans*
					*with No*
	*Impaired Loans with*				*Specific*
	*Specific Allowance*				*Allowance*		*Total Impaired Loans*
									*Unpaid*
	*Recorded*		*Related*		*Recorded*		*Recorded*		*Principal*
	*Investment*		*Allowance*		*Investment*		*Investment*		*Balance*
	(In thousands)
March 31, 2023
Residential mortgage	$	—	$	—	$	2,965	$	2,965	$	3,190
Commercial:
Commercial real estate		—		—		13,803		13,803		15,384
Farmland		—		—		2,210		2,210		2,210
Commercial and industrial		—		—		5,381		5,381		5,381
Consumer:
Home equity lines of credit		—		—		18		18		24
Second mortgages		—		—		99		99		112
Total impaired loans	$	—	$	—	$	24,476	$	24,476	$	26,301
September 30, 2022
Residential mortgage	$	477	$	54	$	2,342	$	2,819	$	3,029
Commercial:
Commercial real estate		—		—		13,826		13,826		15,475
Farmland		—		—		2,213		2,213		2,213
Commercial and industrial		—		—		684		684		684
Consumer:
Home equity lines of credit		—		—		20		20		25
Second mortgages		—		—		152		152		191
Total impaired loans	$	477	$	54	$	19,237	$	19,714	$	21,617

The following table presents the average recorded investment in impaired loans in the loan portfolio and related interest income recognized for the three and six months ended March 31, 2023 and 2022:

	*Three Months Ended March 31, 2023*				*Six Months Ended March 31, 2023*
			*Interest Income*				*Interest Income*
	*Average*		*Recognized on*		*Average*		*Recognized on*
	*Impaired Loans*		*Impaired Loans*		*Impaired Loans*		*Impaired Loans*
	(In thousands)
Residential mortgage	$	2,910	$	21	$	2,546	$	40
Commercial:
Commercial real estate		13,862		6		13,878		13
Farmland		2,209		19		2,207		39
Commercial and industrial		5,435		68		3,822		95
Consumer:
Home equity lines of credit		19		—		19		—
Second mortgages		130		1		441		1
Total	$	24,565	$	115	$	22,913	$	188

	*Three Months Ended March 31, 2022*				*Six Months Ended March 31, 2022*
			*Interest Income*				*Interest Income*
	*Average*		*Recognized on*		*Average*		*Recognized on*
	*Impaired Loans*		*Impaired Loans*		*Impaired Loans*		*Impaired Loans*
	(In thousands)
Residential mortgage	$	2,610	$	25	$	1,727	$	47
Commercial:
Commercial real estate		12,757		7		8,626		9
Farmland		2,236		20		1,494		40
Commercial and industrial		1,476		5		1,381		10
Consumer:
Home equity lines of credit		22		—		10		—
Second mortgages		685		—		528		—
Total	$	19,786	$	57	$	13,766	$	106

- 19-

Table of Contents

The following table presents the classes of the loan portfolio categorized as “pass”, “special mention”, “substandard” and “doubtful” within the Company’s internal risk rating system as of March 31, 2023 and September 30, 2022:

	*Pass*		*Special Mention*		*Substandard*		*Doubtful*		*Total*
	(In thousands)
March 31, 2023:
Residential mortgage	$	160,724	$	—	$	3,010	$	—	$	163,734
Construction and Development:
Residential and commercial		18,696		—		—		—		18,966
Land		540		—		—		—		540
Commercial:
Commercial real estate		374,900		27,100		503		—		402,503
Farmland		11,350		—		2,210		—		13,560
Multi-family		61,272		—		—		—		61,272
Commercial and industrial		99,400		—		5,381		—		104,781
Other		10,417		—		—		—		10,417
Consumer:
Home equity lines of credit		12,916		—		86		—		13,002
Second mortgages		3,375		53		149		—		3,577
Other		2,210		—		—		—		2,210
Total	$	756,070	$	27,153	$	11,339	$	—	$	794,562

- 20-

Table of Contents

	*Pass*		*Special Mention*		*Substandard*		*Doubtful*		*Total*
	(In thousands)
September 30, 2022:
Residential mortgage	$	173,083	$	—	$	2,874	$	—	$	175,957
Construction and Development:
Residential and commercial		24,362		—		—		—		24,362
Land		550		—		—		—		550
Commercial:
Commercial real estate		373,729		32,682		504		—		406,914
Farmland		9,293		—		2,213		—		11,506
Multi-family		55,295		—		—		—		55,295
Commercial and industrial		97,219		—		5,484		—		102,703
Other		13,356		—		—		—		13,356
Consumer:
Home equity lines of credit		13,143		—		90		—		13,233
Second mortgages		4,110		58		227		—		4,395
Other		2,136		—		—		—		2,136
Total	$	766,276	$	32,740	$	11,391	$	—	$	810,407

The following table presents loans that are no longer accruing interest as of March 31, 2023 and September 30, 2022, by portfolio class:

	*March 31,*		*September 30,*
	*2023*		*2022*
	(In thousands)
Non-accrual loans:
Residential mortgage	$	929	$	585
Consumer:
Home equity lines of credit		18		20
Second mortgages		60		148
Total non-accrual loans	$	1,007	$	753

Under the Bank’s loan policy, once a loan has been placed on non-accrual status we do not resume interest accruals until the loan has been brought current and has maintained a current payment status for not less than six consecutive months. Total non-accrual loans exclude loans held-for-sale. The increase in non-accrual loans was attributable to two new residential loans moving to non-accrual status with a combined carrying value of $561,000, which was offset in part by two residential loans moving out of non-accrual status as they were sold through foreclosure. One consumer loan returned to accrual status during the six months ended March 31, 2023.

Interest income that would have been recognized on non-accrual loans had they been current in accordance with their original terms was$8,000for the six months ended March 31, 2023 and $20,000 for the six months ended March 31, 2022.

- 21-

Table of Contents

Management monitors the performance and credit quality of the loan portfolio by analyzing the age of the loans in the loan portfolio and categorizing each loan as “current”, meaning payment is received from a borrower by the scheduled due date, or by the length of time a scheduled payment is past due.

The following table presents the classes of the loan portfolio categorized by the following aging categories as of March 31, 2023 and September 30, 2022:

Loans

90 Days

Total

Receivable >

30-59 Days

60-89 Days

and More

Total Past

Loans

90 Days and

Current

Past Due

Due

Receivable

Accruing

MALVERN BANCORP, INC. 10-Q