8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)    January 27, 2010

 Malvern Federal Bancorp, Inc.

 (Exact name of registrant as specified in its charter)

United States	001-34051	38-3783478
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

42 E. Lancaster Avenue, Paoli, Pennsylvania	19301
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code    (610) 644-9400

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02Results of Operations and Financial Condition

On January 27, 2010, Malvern Federal Bancorp, Inc. (the “Company”), the mid-tier holding company for Malvern Federal Savings Bank (the “Bank”), reported its results of operations for the quarter ended December 31, 2009.

For additional information, reference is made to the Company’s press release dated January 27, 2010, which is included as Exhibit 99.1 hereto and is incorporated herein by reference thereto.  The press release attached hereto is being furnished to the Securities and Exchange Commission (the “SEC”) and shall not be deemed to be “filed” for any purpose except as otherwise provided herein.

Item 7.01Regulation FD Disclosure.

Pursuant to Regulation FD, attached hereto as Exhibit 99.2 to this Current Report is a copy of a slide presentation to be made on January 28, 2010 at the Company’s Annual Meeting of Shareholders. This presentation provides an overview of the Company’s performance and outlook.

The presentation attached hereto as Exhibit 99.2 and incorporated herein by reference, is being furnished pursuant to this Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and it shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or under the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Current Report on Form 8-K.

Item 9.01Financial Statements and Exhibits

(a)	Not applicable.
(b)	Not applicable.
(c)	Not applicable.
(d)	Exhibits

            The following exhibit is included herewith.

Exhibit Number	Description
99.1	Press release dated January 27, 2010
99.2	Shareholder presentation

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MALVERN FEDERAL BANCORP, INC.
Date:  January 27, 2010	By:	/s/ Ronald Anderson
		Ronald Anderson
		President and Chief Executive Officer

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INDEX TO EXHIBITS

Exhibit Number	Description
99.1	Press release dated January 27, 2010
99.2	Shareholder presentation

EX-99.1

Exhibit 99.1

For further information contact:                     

Ronald Anderson, President and CEO          

(610) 644-9400                                                   

Release Date:           January 27, 2010

For Immediate Release

MALVERN FEDERAL BANCORP, INC. ANNOUNCES RESULTS FOR THE FIRST QUARTER OF FISCAL 2010

Paoli, Pennsylvania – Malvern Federal Bancorp, Inc. (the “Company”) (NASDAQ: MLVF), the “mid-tier” holding company for Malvern Federal Savings Bank (the “Bank”), today announced net income for the three months ended December 31, 2009 of $12,000 compared to net income of $516,000 for the three months ended December 31, 2008. On a per share basis, the Company is reporting net income of $0.00 per share for the quarter ended December 31, 2009, compared to net income of $0.09 per share for the quarter ended December 31, 2008.

The Company’s net interest income for the three months ended December 31, 2009 was $4.7 million, an increase of $654,000 from the three months ended December 31, 2008. The Company’s net interest rate spread of 2.68% and net interest margin of 2.89% for the first quarter of fiscal 2010 increased when compared to a net interest rate spread of 2.19% and a net interest margin of 2.58% for the first quarter of fiscal 2009.

The Company’s interest and dividend income decreased by $242,000 in the three month period ended December 31, 2009 compared to the three month period ended December 31, 2008.  Interest income earned decreased in the three months ended December 31, 2009 over the prior comparable period in fiscal 2009 due primarily to declining yields on loans and investment securities.  During the first quarter of fiscal 2010 compared to the first quarter of fiscal 2009, the average yield on the Company’s loan portfolio decrease by 31 basis points to 5.56%.  However, the average balance of loans receivable increased by $13.4 million, or 2.3% in the first quarter of fiscal 2010 compared to the first quarter of fiscal 2009, due primarily to growth in the Company’s commercial real estate loans and home equity line of credit loans.  Average yields on investment securities decreased to 3.24% for the three months ended December 31, 2009 from 3.51% for the same period ended 2009. The average balances of investment securities increased by $4.7 million during the three months ended December 31, 2009 compared to the comparable prior year period.

The Company’s interest expense for the three month period ended December 31, 2009 was $4.0 million, a decrease of $896,000 from the three month period ended December 31, 2008. There was a $680,000 decrease in interest expense on deposits and a $216,000 decrease in interest on FHLB borrowings during the first quarter of fiscal 2010 compared to the first quarter of fiscal 2009.  The average rate paid on deposits decreased to 2.24% for the first quarter of fiscal 2010 from 3.12% for the first quarter of fiscal 2009, and the average rate paid on borrowed funds decreased to 4.80% in the first quarter of fiscal 2010 compared to 4.95% in the first quarter of fiscal 2009 due to the repayment of approximately $15.0 million in relatively higher-costing long-term FHLB borrowings.  During the remaining three quarters of fiscal 2010, an additional $30.0 million of our FHLB advances, with a weighted average interest rate of 6.34%, are scheduled to mature.

The provision for loan losses was $945,000 for the quarter ended December 31, 2009 compared to $445,000 for the quarter ended December 31, 2008. The Company had approximately $400,000 of net charge-offs to the allowance for loan losses in the three months ended December 31, 2009.  At December 31, 2009 the Company’s total non-performing loans amounted to $18.9 million, or 3.18% of total loans, compared to $14.3 million, or 2.40% of total loans at September 30, 2009, and $7.5 million, or 1.27% of total loans, at December 31, 2008.  The $4.6 million increase in non-performing loans during the first quarter of fiscal year 2010 was due primarily to a $2.3 million increase in non-performing single-family residential mortgage loans, a $445,000 increase in non-performing multi-family residential mortgage loans and a $1.7 million increase in non-performing commercial real estate loans. At December 31, 2009, the Company’s allowance for loan losses amounted to $6.3 million or 33.22% of non-performing loans and 1.06% of total loans, compared to $5.7 million or 40.05% of non-performing loans and 0.96% of total loans at September 30, 2009.

The Company’s other, or non-interest, income increased by $137,000 to $608,000 for the three months ended December 31, 2009 over the comparable prior year period.  The increase was due to an $83,000increase in service charges and other fees and rental income, a $17,000 net gain in the sale of other real estate owned, as well as a $54,000 increase in earnings on bank owned life insurance. These increases were partially offset by a $17,000 decrease in net gains on the sale of investment securities.

Other, or non-interest, expenses of the Company increased by $1.1 million in the quarter ended December 31, 2009 over the comparable prior year period. Other expenses in the three months ended December 31, 2009 reflect increased salary and benefit expense of $108,000 and a $556,000 increase in federal deposit insurance premiums due primarily to the absence of a premium credit which was available in the first quarter of fiscal 2008 and an increase in assessment rates implemented in February 2009.  We estimate that our quarterly assessment for federal deposit insurance premiums for the remainder of fiscal 2010, as determined by the FDIC prepayment schedule, will be $210,000 per quarter. The increase in other operating expenses in the first quarter of fiscal 2010 compared to the first quarter of fiscal 2009 also reflects a $428,000 increase in real estate owned expense as well as increased advertising and deposit processing costs which were partially offset by reductions in professional services and other operating expenses.  For the first quarter of fiscal 2010, the Company had an income tax benefit of $88,000 compared to income tax expense of $229,000 for the first quarter of fiscal 2009.

The Company’s total assets amounted to $682.1 million at December 31, 2009 compared to $691.6 million at September 30, 2009.  The primary reason for the decrease in assets during the first three months of fiscal 2010 was a decrease in net loans receivable of $3.3 million, or 0.56%. Cash and cash equivalents decreased by $6.8 million at December 31, 2009 compared to September 30, 2009 due to a pay down of borrowings partially offset by an increase in deposits. Investment securities decreased by $1.4 million, or 4.50%, and total deposits increased $1.9 million, or 0.38%, at December 31, 2009 compared to September 30, 2009.  The Company’s total real estate owned (“REO”) amounted to $4.4 million at December 31, 2009 compared to $5.9 million at September 30, 2009.  The $1.5 million decrease in REO at December 31, 2009 compared to September 30, 2009 was due primarily to the sale of one construction or development property, a one-to four-family residential property, and one commercial property, as well as a $360,000 reduction in the fair value of one commercial real estate property located in Pottstown, PA, which was reflected in other real estate owned expense for the quarter.

Shareholders’ equity decreased by $521,000 to $69.3 million at December 31, 2009 compared to $69.8 million at September 30, 2009 primarily due to purchase of treasury stock of $458,000 during first three months of fiscal 2010.  We have repurchased a total of 50,000 shares under our share repurchase program that was announced on May 7, 2009.  As we have previously indicated, while we will continue to assess stock repurchase opportunities, we expect that limited additional repurchases will be made in fiscal 2010 in light of, among other factors, the regulatory capital requirements of the Bank.  Retained earnings decreased by $71,000 to $46.2 million as the $12,000 of net income for the first three months of fiscal 2010 period was more than offset by the payment of $83,000 in cash dividends during the quarter.

Malvern Federal Bancorp, Inc., of Pennsylvania is the “mid-tier” holding company for Malvern Federal Savings Bank.  Malvern Federal Savings Bank is a Pennsylvania-chartered, FDIC-insured savings bank that was originally organized in 1887.  The Bank conducts business from its headquarters in Paoli, Pennsylvania, a suburb of Philadelphia, as well as seven other financial centers located throughout Chester County, Pennsylvania.

This press release contains certain forward looking statements.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.”  Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of Malvern Federal Bancorp, and changes in the securities markets.   Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in beliefs, expectations or events.

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MALVERN FEDERAL BANCORP, INC.

SELECTED FINANCIAL AND OTHER DATA (Unaudited) 

	At December 31,		At September 30,
	2009		2009
	(Dollars in Thousands)
Selected Financial Condition Data:
Total assets	$	682,142	$	691,638
Loans receivable, net		590,236		593,565
Securities held to maturity		2,449		4,842
Securities available for sale		28,054		27,098
FHLB borrowings		90,118		99,621
Deposits		518,460		516,511
Shareholders’ equity		69,321		69,842
Total liabilities		612,820		621,796
Allowance for loan losses		6,263		5,718
Non-performing loans		18,851		14,276
Non-performing assets		23,299		20,151

	Three Months Ended December 31,
	2009			2008
	(Dollars in Thousands, except per share data)
Selected Operating Data:
Total interest and dividend income	$	8,673		$	8,915
Total interest expense		3,951			4,847
Net interest income		4,722			4,068
Provision for loan losses		945			445
Net interest income after provision for loan losses		3,777			3,623
Total other income		608			471
Total other expense		4,461			3,349
Income tax (benefit) expense		(88	)		229
Net income	$	12		$	516
Net income per share	$	0.00		$	0.09
Dividends per share	$	0.03		$	0.04

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MALVERN FEDERAL BANCORP, INC.

SELECTED FINANCIAL AND OTHER DATA (Unaudited) 

	Three Months Ended December 31,
	2009			2008
Selected Financial Ratios and Other Data(1)
Selected Operating Ratios:
Average yield on interest-earning assets		5.32	%		5.66	%
Average rate on interest-bearing liabilities		2.64			3.47
Average interest rate spread(2)		2.68			2.19
Net interest margin(3)		2.89			2.58
Total non-interest expense to average assets		2.59			2.05
Efficiency ratio(4)		83.70			73.78
Return on average assets		0.01			0.32
Return on average equity		0.07			2.94
Asset Quality Ratios(5):
Non-performing loans as a percent of total loans receivable		3.18	%		1.27	%
Non-performing assets as a percent of total assets		3.42			1.66
Allowance for loan losses as a percent of non-performing loans		33.22			64.05
Capital Ratios(5):
Total risk-based capital to risk weighted assets		12.76	%		13.01	%
Tier 1 risk based capital to risk weighted assets		11.98			12.08
Tangible capital to tangible assets		9.18			9.38
Tier 1 leverage (core) capital to adjustable tangible assets		9.18			9.38
Shareholders’ equity to total assets		10.16			10.44

(1)	Ratios have been annualized where appropriate.
(2)	Average interest rate spread represents the difference between the weighted average yield on interest earning assets and the weighted average cost of interest bearing liabilities.
(3)	Net interest margin represents net interest income as a percentage of average interest-earning assets.
(4)	The efficiency ratio represents the ratio of non-interest expense divided by net interest income and total other income.
(5)	Asset quality ratios are end of period ratios. Capital ratios are end of period ratios and are at Bank level except for shareholders’ equity to total assets.

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EX-99.2

Exhibit 99.2

  MALVERN Annual Meeting January 28, 2010  

  MALVERN Forward-Looking Statements Certain comments in this presentation contain certain forward looking statements (as defined in the Securities Exchange Act of 1934 and the regulations hereunder). Forward looking statements are not historical facts but instead represent only the beliefs, expectations or opinions of Malvern Federal Bancorp, Inc. and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward looking statements may be identified by the use of such words as: "believe", "expect", "anticipate", "intend", "plan", "estimate", or words of similar meaning, or future or conditional terms such as "will", "would", "should", "could", "may", "likely", "probably", or "possibly." Forward looking statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks, uncertainties and assumption, many of which are difficult to predict and generally are beyond the control of Malvern Federal Bancorp, Inc. and its management, that could cause actual results to differ materially from those expressed in, or implied or projected by, forward looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward looking statements: (1) economic and competitive conditions which could affect the volume of loan originations, deposit flows and real estate values; (2) the levels of non-interest income and expense and the amount of loan losses; (3) competitive pressure among depository institutions increasing significantly; (4) changes in the interest rate environment causing reduced interest margins; (5) general economic conditions, either nationally or in the markets in which Malvern Federal Bancorp, Inc. is or will be doing business, being less favorable than expected;(6) political and social unrest, including acts of war or terrorism; or (7) legislation or changes in regulatory requirements adversely affecting the business in which Malvern Federal Bancorp, Inc. is engaged. Malvern Federal Bancorp, Inc. undertakes no obligation to update these forward looking statements to reflect events or circumstances that occur after the date on which such statements were made. As used in this report, unless the context otherwise requires, the terms "we," "our," "us," or the "Company" refer to Malvern Federal Bancorp, Inc., a Federal corporation, and the term the "Bank" refers to Malvern Federal Savings Bank, a federally chartered savings bank and wholly owned subsidiary of the Company. In addition, unless the context otherwise requires, references to the operations of the Company include the operations of the Bank. 2  

  MALVERN Company Overview  

  MALVERN Overview of Malvern Federal Bancorp, Inc. o Malvern Federal Savings Bank, a federally chartered savings bank organized in 1887, is the wholly owned subsidiary of Malvern Federal Bancorp, Inc. o On May 19, 2008, Malvern Federal Savings Bank completed its reorganization into the mutual holding company form by completing its initial IPO raising $26.5 million. o Malvern Federal Bancorp trades on the NASDAQ National Market under the symbol MLVF. o Malvern Federal conducts its business from its headquarters and seven financial centers located throughout Chester County, Pennsylvania. We plan to expand into Concordville, located in Delaware County, in 2010 when we open our proposed eighth full-service financial center. o As of September 30, 2009, we had $691.6 million in total assets, $593.6 million in net loans, $516.5 million in deposits and $69.8 million in shareholders' equity. 4  

  MALVERN Malvern Federal Savings Bank Branch Locations Headquarters * 42 East Lancaster Ave. Paoli Banking Offices o Paoli Financial Center 34 East Lancaster Ave. o Malvern Financial Center 100 West King Street o Exton Financial Center 109 North Pottstown Pike o Lionville Financial Center 537 West Uwchlan Ave. o Coventry Financial Center 1000 Ridge Road o Berwyn Financial Center 650 Lancaster Ave. o Westtown Financial Center 100 Skiles Boulevard Proposed Branch o Route 1/Baltimore Pike Concordville 5  

  MALVERN Market Share in Chester County o The population change from 2000-2009 for Chester County was 15.29% compared to 2.59% for Pennsylvania and 10.06% for the United States. o Median household income for 2009 for Chester county was $87,308 compared to $53,225 for Pennsylvania and $54,719 for the United States. 6/30/09 6/30/09 Total Total Number Deposits in Market of Market Share Rank Institution (ST) Type Branches ($000) (%) 1 Wells Fargo & Co. (CA) Bank 18 1,479,482 14.49 2 National Penn Bancshares Inc. (PA) Bank 19 893,880 8.75 3 Royal Bank of Scotland Group Bank 18 872,791 8.55 4 Tower Bancorp Inc. (PA) Bank 19 862,382 8.44 5 PNC Financial Services Group (PA) Bank 12 786,856 7.70 6 Toronto-Dominion Bank Bank 10 778,974 7.63 7 Malvern Federal Bncp Inc (MHC) (PA) Thrift 7 530,420 5.19 8 First Niagara Finl Group (NY) Thrift 15 516,165 5.05 9 DNB Financial Corp. (PA) Bank 12 452,093 4.43 10 Banco Santander S.A. Bank 7 280,904 2.75 Total For Institutions In Market 203 10,212,787 Non-Retail Branches not included. Source: SNL Financial 6  

  MALVERN 2009 Highlights o Solid Capital Base with 10.10% Equity to Assets as of 9/30/09 o Increased Deposit Market Share in Chester County o Deposit Growth of 13.9% since 2008 o Improved Deposit Composition o Expense Controls in Place o Expansion in Noninterest Income as a Percentage of Operating Revenue 7  

  MALVERN Financial Highlights  

  MALVERN Stable Asset Growth Since fiscal 2005, we have grown our assets at a compounded annual rate of 9.2% primarily driven by loan growth. $800.0MM $700.0MM $600.0MM $500.0MM $487.2MM $517.2MM $551.9MM $639.5MM $691.6MM $400.0MM $300.0MM $200.0MM 9/30/05 9/30/06 9/30/07 9/30/08 9/30/09 9  

  MALVERN Total Loan Portfolio Growth $700,000 o 1-4 Family Residential $600,000 CAGR- 9.4% o Commercial RE o Construction or $500,000 Development o Multi-Family $400,000 $416,304 $457,252 $477,588 $573,225 $595,411 o Land Loans o Commercial $300,000 o HELOC o Second Mortgages $200,000 o Other $100,000 $0 9/30/05 9/30/06 9/30/07* 9/30/08 9/30/09 Dollars in thousands. * Includes $9.3 million of loans held for sale at 9/30/07. 10  

  MALVERN Credit Quality Trends NPLs / Total Loans 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 0.96% 0.67% 0.60% 0.69% 0.51% 0.64% 1.52% 1.14% 2.40% 3.00% 09/30/05 09/30/06 09/30/07 09/30/08 09/30/09 MLVF Peer Average At September 30, -------------------------------------------- 2005 2006 2007 2008 2009 NPAs / Total Assets (%) 0.82 0.53 0.47 1.39 2.91 NCOs / Average Loans (%) 0.03 0.06 0.03 0.12 0.35 Allowance / NPLs (%) 80.49 124.51 190.16 63.36 40.05 Allowance / Total Loans (%) 0.78 0.74 0.95 0.96 0.96 -------------------------------------------------------------------------------- * Peers consist of public banks and thrifts located in the Mid-Atlantic region with Assets between $500 million and $1 billion and 1-4 Family Loans/Loans less than 50% 11  

  MALVERN Non-performing Loan Breakdown 9/30/09 9/30/08 Non-Accruing Loans: One-to-Four-Family $ 3,809 $ 1,402 Multifamily - - Commercial Real Estate 785 4,050 Construction or Development 7,086 1,695 Commercial 35 561 Home Equity Lines of Credit 407 205 Second Mortgages 2,072 672 Other 1 -- Total Non-Accruing $14,195 $ 8,585 Restructured Loans 81 103 Total Non-Performing Loans $14,276 $ 8,688 12  

  MALVERN Deposit Growth Since 2005, we have grown our deposits at a compounded annual rate of 7.6%. $550.0MM $516.5MM $500.0MM $453.5MM $450.0MM $433.5MM $402.1MM $400.0MM $385.0MM $350.0MM $300.0MM $250.0MM 09/30/05 09/30/06 09/30/07 09/30/08 09/30/09 13  

  MALVERN Fiscal Year End Deposit Composition 2005 2009 Money Market 8.79% Money Market 11.31% Transaction 14.11% Transaction 22.27% Savings 13.30% Savings 7.66% Total Time 63.80% Total Time 58.76% 14  

  MALVERN Fiscal Year Net Income $4.0MM $2.51MM $3.21MM $2.41MM $1.45MM $1.01MM $3.5MM $3.0MM $2.5MM $2.0MM $1.5MM $1.0MM $0.5MM $0.0MM 09/30/05 09/30/06 09/30/07 09/30/08 09/30/09 * The primary reasons for the $442,000, or 30.4% decrease in our net income in fiscal 2009 compared to fiscal 2008 were increases in other expenses of $1.9 million and in the provision for loan losses of $671,000, which was partially offset by a $1.5 million increase in net interest income, a $167,000 increase in other income and a $388,000 reduction in income tax expense. The increase in other expenses primarily was the result of a $704,000 increase in federal deposit insurance premium, as well as an $819,000 increase in salaries and employee benefits expense and a $407,000 increase in professional fees. 15  

  MALVERN Net Income o Factors contributing to the decrease in net income for fiscal year 2009: o A one time charge of $320,000 for the FDIC special assessment, which was fully expensed in the fiscal year ended September 30, 2009. o $532,000 in other real estate owned expense. o A loss on the sale of other real estate owned of $225,000, which decreased other income. o $671,000 increase in provision for loan losses. 16  

  MALVERN Shareholder's Equity ---------------------------------------------------------------------------- -------------------------------------------------------- Total Equity -------------------------------------------------------- $75.0MM $68.8MM $69.8MM $70.0MM MHC Offering $65.0MM 5/19/08 Strong Capital $60.0MM Position $55.0MM $50.0MM $44.0MM $45.0MM $41.4MM $40.0MM $38.3MM $35.0MM $30.0MM $25.0MM 09/30/05 09/30/06 09/30/07 09/30/08 09/30/09 Equity / Assets ------------------------------------------------------------ 15.0% 12.0% 10.8% 10.1% 9.0% 7.9% 8.0% 8.0% 6.0% 3.0% 0.0% 09/30/05 09/30/06 09/30/07 09/30/08 09/30/09 17  

  MALVERN -------------------------------------------------------------------------------- Market Statistics --------------------------------------------------------------------------------  

  MALVERN Dividend History Current Div Yield (%) 1.25 Description: Common Stock, $0.01 par value Common Equity Dividends Announce Date Ex-Dividend Date Pay Date Amount ($) Frequency 12/15/2009 12/29/2009 01/21/2010 0.0300 Quarterly 09/15/2009 09/28/2009 10/22/2009 0.0300 Quarterly 06/16/2009 06/26/2009 07/22/2009 0.0300 Quarterly 03/17/2009 03/27/2009 04/22/2009 0.0400 Quarterly 12/16/2008 12/29/2008 01/22/2009 0.0400 Quarterly Dividend information is only comprehensive for primary common equities. Source: SNL Securities 19  

  MALVERN Repurchase of Common Stock Total # of Shares Maximum # or Purchased as Part Shares that May Total # of Average of Publicly Yet be Purchased Shares Price Paid Announce Plans or Under the Plan or Period Purchased Per Share Program Program July 1 - July 31, 2009 -- $ -- -- 138,000 August 1 - August 31, 2009 -- $ -- -- 138,000 September 1 - September 30, 2009 2,000 $ 9.50 2,000 136,000 October 1 - December 31, 2009 48,000 $ 9.54 48,000 88,000 50,000 $ 9.52 50,000 88,000 20  

  MALVERN MLVF Stock Price Performance Since IPO - May 19, 2008 MLVF Price on 1/22/10 - $9.50 Relative Change 1.20 1.10 1.00 0.90 0.80 0.70 0.60 0.50 0.40 05/19/08 08/13/08 11/06/08 02/04/09 05/01/09 07/28/09 10/21/09 01/19/10 -5.0% -23.5% -31.1% MLVF NASDAQ Bank S&P 500 Data as of January 22, 2010 Source: SNL Financial 21  

  MALVERN 2010 Outlook o Continue to manage nonperforming loans o Decrease other real estate owned o Continue to manage capital o Improve deposit composition o Increase margin o Continue to add value to Malvern shareholders 22  

  MALVERN Questions?