Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 for Malvern Bancorp, Inc. (NASDAQ: MLVF) (“Malvern”), a bank holding company headquartered in Paoli, Pennsylvania. In addition, KBRA has assigned senior unsecured debt and deposit ratings of BBB+, a subordinated debt rating of BBB, and short-term debt and deposit ratings of K2 for the subsidiary bank, Malvern Federal Savings Bank (“the Bank”). The outlook on all long-term ratings is stable.

The ratings are supported by Malvern Bancorp Inc.’s very strong capital position, relatively small but robust and organically expanding franchise with demonstrated increasing demand for service, and seasoned, conservative management team. The ratings are primarily constrained by Malvern’s limited cohesive duration of the executive management team, with all executives joining the Bank in the last two years, narrow diversity in revenue streams and increasing concentration in spread-derived revenues, and highly correlated balance sheet and earnings to the real estate market within the Bank’s operating footprint.

The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology, published on February 19, 2016.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).