Prudential Bancorp, Inc. (the “Company”) (Nasdaq:PBIP), the holding
company for Prudential Savings Bank (the “Bank”), reported net
income of $982,000, or $0.13 per diluted share, for the quarter
ended September 30, 2016 as compared to $12,000 or $0.00 per
diluted share, for the comparable period in 2015. The substantial
increase in net income for the three month period ended September
30, 2016 as compared to the same quarter in the prior year was in
large part due to increased net interest income, gains recognized
on the sale of mortgage-backed securities and a reduction in the
provision for loan losses recorded during the fourth quarter of
fiscal 2016 combined with a significant reduction in the Company’s
non-interest expense. These favorable variances were
partially offset by a charge of approximately $300,000 related to
expenses incurred in connection with the pending merger with
Polonia Bancorp, Inc. (“Polonia”).
For the fiscal year ended September 30, 2016, the Company
recognized net income of $2.7 million, or $0.36 per diluted share,
as compared to net income of $2.2 million, or $0.27 per diluted
share for the fiscal year ended September 30, 2015. Increased
profitability for the year ended September 30, 2016 was primarily
attributable to an increase in net interest income, gains
recognized on the sale of mortgage-backed securities and a
reduction in the provision for loan losses recorded during the
fiscal 2016. In addition, the Company reduced its
non-interest expenses by approximately $1.9 million (including the
effect of expenses related to the merger with Polonia) resulting
from a comprehensive expense reduction program which began at the
beginning of the fiscal 2016. Profitability for the year
ended September 30, 2015 primarily reflected the $2.1 million
aggregate gain realized on the sale of three branch offices as well
as a $138,000 gain on the sale of a SBA loan, partially offset by a
provision for loan losses of $735,000 and increased non-interest
expense primarily related to salaries and benefits expense.
Highlights for the quarter and year ended September 30,
2016 are as follows:
- Core earnings (non-GAAP) increased to $1.3 million for the
quarter ended and exceeded $3.1 million for the year ended
September 30, 2016.
- Net income for fiscal 2016 of $2.7 million reached its highest
level since fiscal year 2010.
- Total interest income and net interest income increased while
interest expense and the cost of funds decreased for the quarter
and year ended September 30, 2016 compared to the same periods in
2015.
- Net loans increased $32.3 million, or 10.3%, from September 30,
2015.
- Total deposits increased $24.1 million or 6.61% from September
30, 2015.
- The Company received the regulatory approvals necessary to
acquire Polonia.
- The Bank’s capital levels continue to remain substantially
higher than the levels required to be considered well capitalized
for regulatory purposes.
- The Company has continued its payment of regular quarterly cash
dividends to enhance value to our shareholders. For the three
months and year ended September 30, 2016, the Company paid $0.03
and 0.12, respectively.
Net Interest Income:
For the three months ended September 30, 2016, net interest
income increased to $3.7 million as compared to $3.3 million for
the same period in 2015. The increase reflected a $506,000 or 12.4%
increase in interest income, partially offset by an increase of
$46,000 or 5.7% in interest paid on deposits and borrowings. The
increase in interest income was primarily due to an increase of
$60.0 million, or 12.6%, in the balance of interest-earning assets,
primarily due to an increase in the average outstanding balance of
loans, specifically loans secured by commercial real estate, as
well as the purchase of investment securities both classified as
available-for-sale and held-to-maturity. The Company
increased the level of borrowings from the FHLB of Pittsburgh
during the fourth quarter of fiscal 2016 in connection with the
implementation of its previously announced leverage strategy
commenced during the second quarter of fiscal 2016. During
the quarter ended September 30, 2016, the Company had an average
balance of borrowings of $51.5 million with a weighted average cost
of 1.15%; it had no borrowings outstanding during the same period
in 2015. The total weighted average cost of funds decreased eight
basis points to 0.78% for the September 30, 2016 quarter, from
0.86% for the same period in 2015.
For the year ended September 30, 2016, net interest income
increased to $14.2 million as compared to $13.3 million for fiscal
year 2015. The increase reflected an $803,000 or 4.8% increase in
interest income combined with a decrease of $104,000 or 3.0% in
interest paid on deposits and borrowings. The increase in interest
income reflected the $19.8 million, or 4.8%, increase in average
interest-earning assets, primarily consisting of increases of $4.5
million and $52.4 million, respectively, in the average balance of
loans and investment securities available for sale. During the year
ended September 30, 2016, the Company expanded its investment
strategy to include purchases of investment grade corporate bonds
with a carrying value of approximately $26.1 million as of
September 30, 2016. The Company’s borrowings from the FHLB also
increased during the year ended September 30, 2016 as a result of
the leverage strategy implemented during the second quarter of
fiscal 2016. The Company had an average balance of borrowings of
$35.6 million with a weighted average yield of 1.30% during the
year ended September 30, 2016, an increase of $35.4 million from
the level of average borrowings during the same period in 2015. The
total weighted average cost of funds decreased 10 basis points to
0.80% for the year ended September 30, 2016, from 0.90% for fiscal
year 2015.
For the three months ended September 30, 2016, the net interest
margin was 2.77% compared to 2.73% for the same period in 2015. For
the year ended September 30, 2016, the net interest margin was
2.75% as compared to 2.69% for fiscal year 2015. The net interest
margin increased during the 2016 periods primarily due to the
increased average balance of interest-earning assets combined with
the Company’s efforts in reducing its overall cost of funds.
Non-Interest Income:
Non-interest income amounted to $454,000 and $1.3 million for
the three months and year ended September 30, 2016, respectively,
compared to $225,000 and $3.0 million, respectively, for the
comparable periods in 2015. The three months and year ended
September 30, 2016 reflected gains related to the sale of
mortgage-backed securities. The three months and year ended
September 30, 2015 reflected the $40,000 and $2.1 million,
respectively, gain on the sale of three branch offices as well as
the recognition during the quarter ended June 30, 2015 of a
$138,000 gain on the sale of a loan originated through the Small
Business Administration program. By comparison, during the three
months and year ended September 30, 2016, the Company recorded
gains on the sale of mortgage-backed securities of $257,000 and
$418,000, respectively, and increased service fee income.
Non-Interest Expenses:
For the three months and year ended September 30, 2016,
non-interest expense decreased $524,000 or 15.8% and $1.9 million
or 14.3%, respectively, compared to the same periods in the prior
year. The primary reasons for the decreases for the three
months and year ended September 30, 2016 were decreases in salaries
and employee expense, professional services and office occupancy
expense, partially offset by the recognition of expenses related to
the pending merger with Polonia. The reduction in operating
expenses was a direct result of the implementation of the
comprehensive expense reduction plan announced at the beginning of
the 2016 fiscal year.
Income Taxes:
For the three-month period ended September 30, 2016, the Company
recorded a tax expense of $423,000, compared to $30,000 for the
same period in 2015. For the year ended September 30, 2016, the
Company recorded income tax expense of $1.3 million as compared to
$116,000 for fiscal year 2015. The Company’s tax liability for both
the three months and year ended September 30, 2015 was
significantly reduced due the Company’s ability to utilize its
prior period capital loss carryforwards to offset the entire amount
of the gain recorded on the sale of the three branch
offices.
Balance Sheet:
At September 30, 2016, the Company had total assets of $559.5
million, as compared to $487.2 million at September 30, 2015, an
increase of 14.8%. At September 30, 2016, net loans
receivable increased to $344.9 million from $312.6 million at
September 30, 2015. The increase in net loans receivable was
primarily due to a $60.3 million increase in commercial real estate
and multi-family loans and the purchase of short-term small
equipment leases aggregating $3.3 million, partially offset by a
$26.0 million reduction in the balance of one-to-four family
residential loans combined with a $5.4 million reduction related to
construction and land development loans. During fiscal 2016, the
Company increased its available-for-sale investment securities
portfolio by $61.2 million, while experiencing a $26.4 million
reduction in investment securities held-to-maturity, primarily due
to securities being called, the proceeds of which were primarily
reinvested in available-for-sale securities.
Total liabilities increased by $75.3 million to $445.5 million
at September 30, 2016, from $370.2 million at September 30, 2015.
Total deposits increased $24.1 million, consisting primarily of
short-term certificates of deposit. At September 30, 2016, the
Company had FHLB advances outstanding of $50.6 million with
variable maturities of which $35.0 million was used to fund the
Company’s investment leverage strategy referenced above and the
remaining $15.6 million was used to fund loan growth and the
purchase of investment securities.
Total stockholders’ equity decreased by $3.0 million to $114.0
million at September 30, 2016 from $117.0 million at September 30,
2015. The decrease was primarily due to the $6.4 million expended
in the acquisition of treasury stock in connection with the
Company’s previously announced stock repurchase program. During
fiscal year 2016, the Company repurchased 404,081 shares under its
current program with 214,574 shares remaining; however, only very
limited repurchases have been effected since early March 2016 due
to the pending merger with Polonia. Also contributing to the
decrease was payment of cash dividends aggregating $895,000.
These decreases were partially offset by $2.7 million in net income
earned during fiscal 2016 combined with a $780,000 after-tax
increase in the unrealized gain on the available-for-sale
securities portfolio and the fair value of interest rate swaps.
Asset Quality:
At September 30, 2016, the Company’s non-performing assets
totaled $16.5 million or 2.9% of total assets as compared to $14.8
million or 3.0% of total assets at September 30, 2015. All of the
increase was due to the placement on non-accrual of the entire
amount of the Company’s largest loan relationship totaling $12.3
million and consisting of nine loans. Non-performing assets
at September 30, 2016 included five construction loans aggregating
$10.3 million, 17 one-to-four-family residential loans aggregating
$2.9 million, one single-family residential investment property
loan totaling $1.4 million and two commercial real estate loans
aggregating $1.3 million. Non-performing assets also included
at September 30, 2016 two real estate properties consisting of one
single-family residential property totaling $607,000 and a
commercial real estate property totaling $206,000. At September 30,
2016, the Company had ten loans aggregating $8.2 million that were
classified as troubled debt restructurings (“TDRs”). Three of such
loans aggregating $5.7 million as of September 30, 2016 were
classified as non-performing as a result of not achieving a
sufficiently long payment history, under the restructured terms, to
justify returning the loans to performing (accrual) status.
Two of these three loans totaling $4.3 million (which are part of
the Company’s largest relationship referenced above) are over 90
days past due resulting from the discontinuation of funding by the
Company of the development project (discussed below) due to the
re-negotiation of the project’s future direction to completion. The
third loan, consisting of a residential loan of approximately $1.4
million, has made all of its required payments to date, but the
Company has not returned the loan to performing status due to
concerns with regard to the borrower’s ability to make remaining
payments due. The remaining eight TDRs have performed in
accordance with the terms of their revised agreements. As of
September 30, 2016, the Company had reviewed $19.4 million of loans
for possible impairment of which $14.6 million was deemed
classified as substandard compared to $16.8 million reviewed for
possible impairment and $12.4 million of which was classified
substandard as of September 30, 2015.
The Company did not record a provision for loan losses for the
three months ended September 30, 2016, but did record a provision
for loan losses of $225,000 during the year ended September 30,
2016, primarily due to the increased level of commercial real
estate loans. During the three months and year ended
September 30, 2015, the Company established provisions for loan
losses of $150,000 and $735,000, respectively, primarily due to the
increase in the level of commercial real estate and construction
loans outstanding as well as to address the level of the allowance
for loan losses in light of charge-offs incurred during the second
quarter of fiscal 2015 combined with the classification of $12.3
million of loans related to the Company’s largest lending
relationship as non-performing as described below. During the three
months ended September 30, 2016, the Company did not record any
recoveries or charge offs and during the year ended September 30,
2016, the Company recorded charge-offs totaling $11,000, along with
a recovery of $125,000. The Company’s largest lending relationship,
which consists of nine loans aggregating $12.3 million, was
classified as non-performing due to concerns with projected cash
flows available to fund the borrower’s future obligations. As
of September 30, 2016, the complete relationship was analyzed for
impairment using the standards required in Accounting Standards
Codification Topic 310 (formerly FASB No. 114). The
relationship was deemed to have sufficient collateral; thereby no
impairment was required. The borrower’s primary project, the
development of 169 residential lots, has received all required
permits and preparation of the necessary infrastructure has
commenced. The Company believes that the
allowance for loan losses at September 30, 2016 was sufficient to
cover all inherent and known losses associated with the loan
portfolio at such date.
The allowance for loan losses totaled $3.3 million, or 0.9% of
total loans and 20.6% of total non-performing loans at September
30, 2016 as compared to $2.9 million, or 0.8% of total loans and
21.0% of total non-performing loans at September 30, 2015.
About Prudential Bancorp, Inc.:
Prudential Bancorp, Inc. is the holding company for Prudential
Savings Bank. Prudential Savings Bank is a Pennsylvania-chartered,
FDIC-insured savings bank that was originally organized in 1886.
The Bank conducts business from its headquarters and main office in
Philadelphia, Pennsylvania as well as five additional full-service
branch offices, four of which are in Philadelphia, and one is in
Drexel Hill, Delaware County, Pennsylvania.
Forward Looking Statements:
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements include, but are not limited
to, expectations or predictions of future financial or business
performance, conditions relating to the Company and Polonia, or
other effects of the proposed merger of the Company and Polonia.
These forward-looking statements include statements with respect to
the Company’s beliefs, plans, objectives, goals, expectations,
anticipations, estimates and intentions, that are subject to
significant risks and uncertainties, and are subject to change
based on various factors (some of which are beyond the Company’s
control). The words “may,” “could,” “should,” “would,” “will,”
“believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and
similar expressions are intended to identify forward-looking
statements.
In addition to factors previously disclosed in
the reports filed by the Company with the Securities and Exchange
Commission (“SEC”) and those identified elsewhere in this press
release, the following factors, among others, could cause actual
results to differ materially from forward looking statements or
historical performance: the ability to satisfy other closing
conditions to the merger, including approval by shareholders of
Prudential of the issuance of shares of Company common stock to
shareholders of Polonia; delay in closing the merger; difficulties
and delays in integrating the Polonia business or fully realizing
anticipated cost savings and other benefits of the merger; business
disruptions following the merger; the strength of the United States
economy in general and the strength of the local economies in which
the Company and Polonia conduct their operations; general economic
conditions; legislative and regulatory changes; monetary and fiscal
policies of the federal government; changes in tax policies, rates
and regulations of federal, state and local tax authorities;
changes in interest rates, deposit flows, the cost of funds, demand
for loan products, demand for financial services, competition,
changes in the quality or composition of the Company’s loan,
investment and mortgage-backed securities portfolios; changes in
accounting principles, policies or guidelines and other economic,
competitive, governmental and technological factors affecting the
Company’s operations, markets, products, services and fees; and the
success of the Company at managing the risks involved in the
foregoing.
The Company does not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by or on behalf of the Company to reflect
events or circumstances occurring after the date of this press
release.
For a complete discussion of the assumptions,
risks and uncertainties related to our business, you are encouraged
to review the Company’s filings with the SEC, including the “Risk
Factors” section in its most recent Annual Report on Form 10-K, as
supplemented by its quarterly or other reports subsequently filed
with the SEC.
Important Additional Information and
Where to Find It
The Company has filed with the SEC a
Registration Statement on Form S-4 relating to the proposed merger
with Polonia, which includes a prospectus for the offer and sale of
the Company’s common stock as well as the proxy statement of the
Company for the solicitation of proxies from its shareholders for
use at the meeting at which the proposal to approve the issuance of
shares in the merger will be considered. This communication does
not constitute an offer to sell or the solicitation of an offer to
buy any securities or a solicitation of any vote or approval.
SHAREHOLDERS OF THE COMPANY ARE URGED TO READ THE REGISTRATION
STATEMENT AND THE PROXY STATEMENT REGARDING THE MERGER AND ANY
OTHER RELEVANT DOCUMENTS FILED BY THE COMPANY WITH THE SEC, AS WELL
AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION.
A free copy of the proxy statement and the proxy
statement/prospectus, as well as other filings containing
information about the Company, may be obtained at the SEC’s website
at http://www.sec.gov, when they are filed by the Company. You will
also be able to obtain these documents, when they are filed, free
of charge, from the Company at
www.prudentialsavingsbank.com under the heading
“About Us” and then under the Investor Relations menu. In addition,
copies of the proxy statement can also be obtained, free of charge
by directing a request to the Company at 1834 West Oregon Avenue,
Philadelphia, PA 19145, Attention: Corporate Secretary or by
contacting the Company’s Corporate Secretary at 215-755-1500.
The Company and certain of its directors and
executive officers may be deemed to be “participants” in the
solicitation of proxies in connection with the proposed merger.
Information concerning the interests of the Company’s persons who
may be considered “participants” in the solicitation is set forth
in the proxy statement for the Company’s 2016 annual meeting of
shareholders, as filed with the SEC on January 8, 2016. Additional
information concerning the Company’s directors and executive
officers, including their ownership of Company common stock, is set
forth in the proxy statement relating to the merger. Free copies of
this document may be obtained as described in the preceding
paragraph.
|
SELECTED CONSOLIDATED FINANCIAL AND OTHER
DATA |
|
(Unaudited) |
|
At September 30, |
|
At September 30, |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands) |
Selected
Consolidated Financial and Other Data (Unaudited): |
|
|
Total assets |
$ |
559,480 |
|
|
$ |
487,189 |
|
Cash and cash
equivalents |
|
14,293 |
|
|
|
11,272 |
|
Investment and
mortgage-backed securities: |
|
|
Held-to-maturity |
|
39,971 |
|
|
|
66,384 |
|
Available-for-sale |
|
138,694 |
|
|
|
77,483 |
|
Loans receivable, net |
|
344,948 |
|
|
|
312,633 |
|
Deposits |
|
389,201 |
|
|
|
365,074 |
|
FHLB advances |
|
50,638 |
|
|
|
-- |
|
Non-performing loans |
|
15,878 |
|
|
|
13,932 |
|
Non-performing assets |
|
16,459 |
|
|
|
14,801 |
|
Stockholders’ equity |
|
114,002 |
|
|
|
117,001 |
|
Full-service offices |
|
6 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended September 30, |
|
At or For theYear EndedSeptember 30, |
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands Except Per Share Amounts) |
|
|
|
Selected Operating
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
$ |
4,587 |
|
|
|
$ |
4,081 |
|
|
$ |
17,483 |
|
|
$ |
16,680 |
|
|
|
|
Total interest
expense |
|
853 |
|
|
|
|
807 |
|
|
|
3,326 |
|
|
|
3,430 |
|
|
|
|
Net interest income |
|
3,734 |
|
|
|
|
3,274 |
|
|
|
14,157 |
|
|
|
13,250 |
|
|
|
|
Provision for loan
losses |
|
-- |
|
|
|
|
150 |
|
|
|
225 |
|
|
|
735 |
|
|
|
|
Net interest income after
provision for loan losses |
|
3,734 |
|
|
|
|
3,124 |
|
|
|
13,932 |
|
|
|
12,515 |
|
|
|
|
Total non-interest
income |
|
454 |
|
|
|
|
225 |
|
|
|
1,337 |
|
|
|
3,008 |
|
|
|
|
Total non-interest
expense |
|
2,783 |
|
|
|
|
3,307 |
|
|
|
11,290 |
|
|
|
13,175 |
|
|
|
|
Income before income
taxes |
|
1,405 |
|
|
|
|
42 |
|
|
|
3,979 |
|
|
|
2,348 |
|
|
|
|
Income tax expense |
|
423 |
|
|
|
|
30 |
|
|
|
1,259 |
|
|
|
116 |
|
|
|
|
Net income |
$ |
982 |
|
|
|
$ |
12 |
|
|
$ |
2,720 |
|
|
$ |
2,232 |
|
|
|
|
Basic earnings per
share |
$ |
0.14 |
|
|
|
$ |
0.002 |
|
|
$ |
0.37 |
|
|
$ |
0.27 |
|
|
|
|
Diluted earnings per
share |
$ |
0.13 |
|
|
|
$ |
-- |
|
|
$ |
0.36 |
|
|
$ |
0.27 |
|
|
|
|
Dividends paid per common
share |
$ |
0.03 |
|
|
|
$ |
0.03 |
|
|
$ |
0.12 |
|
|
$ |
0.27 |
|
|
|
|
Book value per share at
end of period |
$ |
14.17 |
|
|
|
$ |
13.85 |
|
|
$ |
14.17 |
|
|
$ |
13.85 |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Ratios(1): |
|
|
|
|
|
|
|
Average yield on
interest-earning assets |
|
3.40 |
% |
|
|
|
3.41 |
% |
|
|
3.40 |
% |
|
|
3.38 |
% |
|
|
|
Average rate paid on
interest-bearing liabilities |
|
0.78 |
% |
|
|
|
0.86 |
% |
|
|
0.80 |
% |
|
|
0.90 |
% |
|
|
|
Average interest rate
spread(2) |
|
2.62 |
% |
|
|
|
2.54 |
% |
|
|
2.60 |
% |
|
|
2.49 |
% |
|
|
|
Net interest
margin(2) |
|
2.77 |
% |
|
|
|
2.73 |
% |
|
|
2.75 |
% |
|
|
2.69 |
% |
|
|
|
Average interest-earning
assets to average interest-bearing liabilities |
|
122.97 |
% |
|
|
|
128.084 |
% |
|
|
124.28 |
% |
|
|
128.72 |
% |
|
|
|
Net interest income after
provision for loan losses to non-interest expense |
|
134.17 |
% |
|
|
|
94.49 |
% |
|
|
123.40 |
% |
|
|
94.99 |
% |
|
|
|
Total non-interest expense
to total average assets |
|
2.00 |
% |
|
|
|
2.67 |
% |
|
|
2.82 |
% |
|
|
3.2 |
% |
|
|
|
Efficiency ratio(3) |
|
66.45 |
% |
|
|
|
94.51 |
% |
|
|
72.87 |
% |
|
|
81.04 |
% |
|
|
|
Return on average
assets |
|
0.71 |
% |
|
|
|
0.01 |
% |
|
|
0.68 |
% |
|
|
0.58 |
% |
|
|
|
Return on average
equity |
|
3.46 |
% |
|
|
|
0.04 |
% |
|
|
3.15 |
% |
|
|
2.37 |
% |
|
|
|
Average equity to average
total assets |
|
20.45 |
% |
|
|
|
23.75 |
% |
|
|
21.55 |
% |
|
|
24.39 |
% |
|
|
|
|
|
|
|
|
|
At or for the Three Months Ended September
30, |
|
At or for Twelve Months Ended September 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Asset
Quality Ratios(4)(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
loans as a percentage of loans receivable, net(5) |
|
4.60 |
% |
|
|
4.46 |
% |
|
|
4.60 |
% |
|
4.46 |
% |
|
Non-performing
assets as a percentage of total assets(5) |
|
2.94 |
% |
|
|
3.04 |
% |
|
|
2.94 |
% |
|
3.04 |
% |
|
Allowance for
loan losses as a percentage of total loans |
|
0.94 |
% |
|
|
0.93 |
% |
|
|
0.94 |
% |
|
0.93 |
% |
|
Allowance for
loan losses as a percentage of non-performing loans |
|
20.58 |
% |
|
|
21.03 |
% |
|
|
20.58 |
% |
|
21.03 |
% |
|
Net
charge-offs (recoveries) to average loans receivable |
|
0.00 |
% |
|
|
(0.14 |
)% |
|
|
(0.03 |
)% |
|
0.07 |
% |
|
|
|
|
|
|
|
Capital Ratios(6) |
|
|
|
|
|
Tier 1
leverage ratio |
|
|
|
|
|
Company |
|
20.41 |
% |
|
|
23.73 |
% |
|
|
20.41 |
% |
|
23.73 |
% |
|
Bank |
|
18.15 |
% |
|
|
19.50 |
% |
|
|
18.15 |
% |
|
19.50 |
% |
|
Tier 1 common
equity risk-based capital ratio |
|
|
|
|
|
Company |
|
38.57 |
% |
|
|
50.63 |
% |
|
|
38.57 |
% |
|
50.63 |
% |
|
Bank |
|
34.36 |
% |
|
|
41.66 |
% |
|
|
34.36 |
% |
|
41.66 |
% |
|
Tier 1
risk-based capital ratio |
|
|
|
|
|
Company |
|
38.57 |
% |
|
|
50.63 |
% |
|
|
38.57 |
% |
|
50.63 |
% |
|
Bank |
|
34.36 |
% |
|
|
41.65 |
% |
|
|
34.36 |
% |
|
41.66 |
% |
|
Total
risk-based capital ratio |
|
|
|
|
|
Company |
|
39.70 |
% |
|
|
51.98 |
% |
|
|
39.70 |
% |
|
51.98 |
% |
|
Bank |
|
35.49 |
% |
|
|
43.00 |
% |
|
|
35.49 |
% |
|
43.00 |
% |
|
|
|
|
|
|
|
|
(1)
With the exception of end of period ratios, all ratios are based on
average monthly balances during the indicated periods and are
annualized where appropriate.(2) Average interest rate spread
represents the difference between the average yield earned on
interest-earning assets and the average rate paid on
interest-bearing liabilities. Net interest margin represents net
interest income as a percentage of average interest-earning
assets.(3) The efficiency ratio represents the ratio of
non-interest expense divided by the sum of net interest income and
non-interest income.(4) Asset quality ratios and capital
ratios are end of period ratios, except for net charge-offs to
average loans receivable. (5) Non-performing assets generally
consist of all loans on non-accrual, loans which are 90 days or
more past due as to principal or interest, and real estate acquired
through foreclosure or acceptance of a deed in-lieu of foreclosure.
Non-performing assets and non-performing loans also include loans
classified as troubled debt restructurings due to being recently
restructured and placed on non-accrual in connection with such
restructuring until such time that an adequate sustained payment
period under the restructured terms has been established to justify
returning the loan to accrual status. It is the Company’s
policy to cease accruing interest on all loans which are 90 days or
more past due as to interest or principal. (6) The
Company is not subject to the regulatory capital ratios imposed by
Basel III on bank holding companies because the Company was deemed
to be a small bank holding company. |
|
|
|
Non-GAAP
Measures DisclosuresReported amounts are presented in accordance
with accounting principles generally accepted in the United States
of America (“GAAP”). The Company’s management believes that the
supplemental non-GAAP information provided in this press release is
utilized by market analysts and others to evaluate a company’s
financial condition and, therefore, that such information is useful
to investors. These disclosures should not be viewed as a
substitute for financial results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures presented by other companies. The following table shows
the reconciliation of net income and core income (a non-GAAP
measure which excludes the effects of one-time severance expense
and expenses related to the pending merger with Polonia; management
believes many investors desire to evaluate net income without
regard to such gains or one-time expenses). Our non-GAAP core
earnings should not be considered in isolation or as a substitute
for net income, other (loss) income or other expense data that are
calculated in accordance with GAAP. Moreover, the manner in which
we calculate our non-GAAP core earnings may differ from that of
other companies also reporting non-GAAP results. |
|
|
|
|
At or For the Three Months September 30, |
|
At or For the YearEnded September 30, |
|
|
2016 |
2015 |
|
2016 |
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands) |
|
GAAP income before income taxes |
|
1,405 |
|
|
42 |
|
|
|
3,979 |
|
|
2,348 |
|
Income tax expense |
|
423 |
|
|
30 |
|
|
|
1,259 |
|
|
116 |
|
Net income |
$ |
982 |
|
$ |
12 |
|
|
$ |
2,720 |
|
$ |
2,232 |
|
One- time gain on sale of two branch offices (net of tax) |
|
-- |
|
|
( 231 |
) |
|
|
-- |
|
|
( 2,024 |
) |
One-time merger related expenses (not tax deductible) |
|
300 |
|
|
-- |
|
|
|
300 |
|
|
-- |
|
One-time
severance expense (net of tax) |
|
-- |
|
|
139 |
|
|
|
131 |
|
|
139 |
|
Core income (loss) (non-GAAP) |
$ |
1,282 |
|
$ |
(80 |
) |
|
$ |
3,151 |
|
$ |
347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Jack E. Rothkopf
Chief Financial Officer
(215) 755-1500
Prudenital Bancorp Inc o... (NASDAQ:PBIP)
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