UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported)
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July 20, 2018
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Prudential Bancorp, Inc.
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(Exact name of registrant as specified in its charter)
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Pennsylvania
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000-55084
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46-2935427
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(State or other jurisdiction
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(Commission File Number)
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(IRS Employer
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of incorporation)
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Identification No.)
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1834 West Oregon Avenue, Philadelphia, Pennsylvania
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19145
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code
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(215) 755-1500
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Not Applicable
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(Former name or former address, if changed since last report)
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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):
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition
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Item
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9.01
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Financial Statements and Exhibits
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(a)
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Not applicable.
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(b)
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Not applicable.
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(c)
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Not applicable.
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(d)
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The following exhibits are included with this Report:
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Exhibit No.
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Description
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99.1
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Press release regarding results of operations and financial condition, dated July 20, 2018
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PRUDENTIAL BANCORP, INC.
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By:
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/s/Jack E. Rothkopf | |||
Name:
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Jack E. Rothkopf
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Title:
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Senior Vice President, Chief Financial Officer and
Treasurer
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|||
Date: July 20, 2018
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Exhibit No.
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Description
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Release Date:
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July 20, 2018
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Contact:
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Jack E. Rothkopf | |
At 4:30 p.m. EST
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Chief Financial Officer | |||
(215) 755-1500 |
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Total assets reached $1.0 billion, up from $899.5 million at September 30, 2017.
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●
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Net income increased to $2.4 million for the quarter ended June 30, 2018 from $2.1 million for the comparable quarter in fiscal 2017 and $2.2 million for the quarter ended March 31, 2018.
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Net loans increased $31.1 million to $602.5 from $571.3 million at September 30, 2017.
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Total deposits increased $79.1 million to $715.1 million from $636.0 million at September 30, 2017.
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●
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The efficiency ratio for the quarter ended June 30, 2018 was 52.21% compared to 56.94% for quarter ended March 31, 2018.
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SELECTED CONSOLIDATED FINANCIAL
AND OTHER DATA
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||||||||
(Unaudited)
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||||||||
At June 30,
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At September 30,
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|||||||
2018
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2017
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(Dollars in Thousands)
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Selected Consolidated Financial and Other Data (Unaudited):
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Total assets
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$
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1,028,858
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$
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899,540
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Cash and cash equivalents
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36,055
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27,903
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Investment and mortgage-backed securities:
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Held-to-maturity
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58,127
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61,284
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Available-for-sale
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270,275
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178,402
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Loans receivable, net
Goodwill and intangible assets
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602,455
6,707
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571,343
6,811
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||||||
Deposits
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715,053
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635,982
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FHLB advances
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164,164
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114,318
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Non-performing loans
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14,198
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15,393
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Non-performing assets
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14,283
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15,585
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Stockholders' equity
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131,517
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136,179
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Full-service offices
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10
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11
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At or For the
Three Months Ended
June 30,
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At or For the
Nine Months Ended
June 30,
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2018 | 2017 | 2018 | 2017 | |||||||||||||
(Dollars in Thousands Except Per Share Amounts) | ||||||||||||||||
Selected Operating Data:
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||||||||||||||||
Total interest income
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$
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8,931
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$
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7,430
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$
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25,322
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$
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18,606
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||||||||
Total interest expense
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2,709
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1,377
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6,736
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3,608
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Net interest income
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6,222
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6,053
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18,586
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14,998
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Provision for loan losses
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325
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30
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685
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2,580
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||||||||||||
Net interest income after
provision for loan losses
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5,897
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6,023
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17,901
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12,418
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||||||||||||
Total non-interest income
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985
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625
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1,967
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1,500
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Total non-interest expense
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3,770
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3,500
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11,682
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12,891
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Income before income taxes
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3,112
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3,148
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8,186
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937
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Income tax expense
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676
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1,031
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3,559
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230
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Net income
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$
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2,436
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$
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2,117
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$
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4,627
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$
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707
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Basic earnings per share
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$
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0.28
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$
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0.25
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$
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0.52
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$
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0.08
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Diluted earnings per share
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$
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0.26
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$
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0.25
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$
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0.50
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$
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0.08
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Dividends paid per common share
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$
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0.05
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$
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0.03
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$
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0.30
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$
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0.09
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Tangible book value per share at end of period(1)
Common stock outstanding (shares)
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$
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13.87
9,008,836
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$
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14.02
9,007,735
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$
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13.87
9,008,836
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$
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14.02
9,007,735
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Selected Operating Ratios(2):
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Average yield on interest-
earning assets
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3.87
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%
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3.67
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%
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3.77
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%
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3.49
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%
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Average rate paid on interest-bearing liabilities
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1.30
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%
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0.76
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%
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1.12
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%
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0.78
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%
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Average interest rate spread (3)
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2.57
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%
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2.91
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%
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2.65
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%
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2.71
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%
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Net interest margin (3)
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2.70
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%
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2.99
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%
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2.77
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%
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2.82
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%
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Average interest-earning assets
to average interest-bearing
liabilities
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111.05
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%
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112.35
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%
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112.04
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%
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114.92
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%
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Net interest income after
provision for loan losses to
non-interest expense
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156.71
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%
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172.09
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%
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153.33
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%
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95.66
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%
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Total non-interest expense to total
average assets
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1.54
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%
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1.62
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%
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1.65
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%
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3.44
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%
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Efficiency ratio(4)
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52.21
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%
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52.41
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%
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56.80
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%
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78.68
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%
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Return on average assets
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1.00
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%
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0.93
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%
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0.65
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%
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0.19
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%
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Return on average equity
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7.80
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%
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6.39
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%
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4.74
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%
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1.12
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%
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Average equity to average total assets
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12.82
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%
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15.29
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%
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13.79
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%
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16.69
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%
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At or for the Three
Months Ended
June 30,
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At or for Nine
Months Ended
June 30,
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2018
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2017
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2018
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2017
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Asset Quality Ratios(5)
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Non-performing loans as a percentage of loans receivable, net(6)
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2.36
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%
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2.96
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%
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2.36
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%
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2.96
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%
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Non-performing assets as a percentage of total assets(6)
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1.39
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%
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1.87
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%
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1.39
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%
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1.87
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%
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Allowance for loan losses as a percentage of total loans
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0.83
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%
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0.74
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%
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0.83
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%
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0.74
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%
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Allowance for loan losses as a percentage of non-performing loans
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35.50
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%
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25.32
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%
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35.50
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%
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25.32
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%
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Net charge-offs to average loans receivable
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0.08
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%
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-0.01
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%
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0.02
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%
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0.39
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%
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Capital Ratios(7)
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Tier 1 leverage ratio
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Company
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13.19
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%
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14.76
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%
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13.19
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%
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14.76
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%
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Bank
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12.58
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%
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13.44
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%
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12.58
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%
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13.44
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%
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Tier 1 common risk-based capital ratio
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Company
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20.47
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%
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24.60
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%
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20.47
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%
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24.60
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%
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Bank
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19.51
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%
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22.40
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%
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19.51
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%
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22.40
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%
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Tier 1 risk-based capital ratio
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Company
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20.47
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%
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24.60
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%
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20.47
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%
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24.60
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%
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Bank
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19.51
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%
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22.40
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%
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19.51
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%
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22.40
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%
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Total risk-based capital ratio
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||||||||||||||||
Company
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21.30
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%
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25.44
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%
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21.30
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%
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25.44
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%
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Bank
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20.35
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%
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23.24
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%
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20.35
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%
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23.24
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%
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||||||||
(1) Non-GAAP measure: see reconciliation below.
(2) 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.
(3) 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.
(4) The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income.
(5) Asset quality ratios and capital ratios are end of period ratios, except for net charge-offs to average loans receivable.
(6) 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 which are initially placed on non-accrual in connection with such
restructuring and remain on non-accrual 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.
(7) The Company is not subject to the regulatory capital ratios imposed by Basel III on bank holding companies because the Company is deemed to be a small bank
holding company.
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The following table shows the reconciliation of net income and core net income (a non-GAAP measure which excludes the effects of the one-time write-down of the Company's deferred tax assets as a result of the enactment of the Tax Reform Act, merger-related expenses related to the Polonia acquisition and the one-time charge-off related to a large lending relationship; management believes many investors desire to evaluate net income without regard to such expenses):
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At or For the Three
Months Ended June 30,
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At or For the Nine Months
Ended June 30,
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||||||||||||||
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2018
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2017
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2018
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2017
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(Dollars in Thousands)
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|||||||||||||||
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||||||||||||||||
Income before income taxes
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$
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3,119
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$
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3,148
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$
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8,193
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$
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937
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||||||||
Income tax expense
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683
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1,031
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3,566
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230
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||||||||||||
Net income
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2,436
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2,117
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4,627
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707
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||||||||||||
One time write-down of deferred tax asset
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-
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-
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1,756
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-
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||||||||||||
One-time merger related costs(net of taxes)
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-
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-
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-
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1,968
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||||||||||||
One time charge-off (net of taxes)
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-
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-
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-
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1,280
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||||||||||||
Core net income
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$
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2,436
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$
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2,117
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$
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6,383
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$
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3,955
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As of June 30, 2018
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As of September 30, 2017
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|||||||||||||||
(Dollars in Thousands, Except Per Share Amounts)
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||||||||||||||||
Book Value
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Tangible Book Value
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Book Value
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Tangible Book Value
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|||||||||||||
Total stockholders' equity
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$
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131,517
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$
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131,517
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$
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136,179
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$
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136,179
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||||||||
Less intangible assets:
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||||||||||||||||
Goodwill
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--
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6,102
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--
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6,102
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||||||||||||
Core deposit intangible
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--
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605
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--
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709
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||||||||||||
Total intangibles
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$
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--
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6,707
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$
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--
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6,811
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||||||||||
Adjusted stockholders' equity
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$
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131,517
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$
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124,810
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$
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136,179
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$
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129,368
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||||||||
Shares of common stock outstanding
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9,008,826
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9,008,836
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9,008,125
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9,008,125
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||||||||||||
Adjusted book value per share
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$
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14.60
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$
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13.86
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$
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15.12
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$
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14.36
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