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, 2020
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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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Title of each Class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Common Stock
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PBIP
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Nasdaq Stock Market, LLC
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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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PRUDENTIAL BANCORP, INC.
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By:
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/s/Jack E. Rothkopf |
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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, 2020
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Release Date:
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July 20, 2020
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Contact:
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Jack E. Rothkopf
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At 4:30 p.m. EST
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Chief Financial Officer
(215) 755-1500
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•
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Record levels of net income for both the three and nine months ended June, 30, 2020.
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•
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Dividends for the nine months ended June 30, 2020 amounted to $0.64 per share as compared to $0.60 per share for the comparable period in fiscal 2019.
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•
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Our efficiency ratio improved significantly during the three and nine months ended June 30, 2020, improving to 44.1% and 50.5% for the three and nine months ended June 30, 2020 as compared to
56.6% and 59.7% for the same period in fiscal 2019.
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•
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The Company repurchased 786,866 shares at an average cost of $12.81, well below the Company’s book value per share.
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•
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The Company’s tangible book value per share (non-GAAP) was $14.95 per share at June 30, 2020 as compared to $14.42 at June 30, 2019.
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•
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The Company announced a new stock repurchase program to repurchase up to 5% of its outstanding shares of common stock over a one-year period or such longer period of time as may be
necessary to complete such repurchases.
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•
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The Company originated 63 Paycheck Protection Program loans totaling approximately $5.1 million.
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•
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Based on management’s evaluation and taking into account the estimated effects of the COVID-19 pandemic, provisions for loan losses totaling $750,000 and $1.4 million for the three and
nine months ended June 30, 2020 were established.
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•
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The allowance for loan losses increased to $6.7 million or 1.1% of total loans as of June 30, 2020 as compared to $5.4 million or 0.9% of total loans as of September 30, 2019
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SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
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(Unaudited)
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At June 30,
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At September 30,
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2020
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2019
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(Dollars in Thousands)
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Selected Consolidated Financial and Other Data (Unaudited):
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Total assets
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$
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1,187,812
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$
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1,289,434
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Cash and cash equivalents
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60,020
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47,968
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Investment and mortgage-backed securities:
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Held-to-maturity
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25,652
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68,635
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Available-for-sale
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441,461
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512,822
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Loans receivable, net
Goodwill and intangible assets
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584,361
6,468
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585,456
6,550
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Deposits
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727,149
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745,444
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FHLB advances
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291,069
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376,904
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Non-performing loans
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13,644
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13,936
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Non-performing assets
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14,050
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14,284
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Stockholders’ equity
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128,239
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139,611
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Full-service offices
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10
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10
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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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2020
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2019
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2020
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2019
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(Dollars in Thousands Except Per Share Amounts)
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Selected Operating Data:
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Total interest income
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$
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9,791
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$
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11,273
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$
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32,628
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$
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32,409
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Total interest expense
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4,486
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5,058
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15,192
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13,855
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Net interest income
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5,305
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6,215
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17,436
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18,554
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Provision for loan losses
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750
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-
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1,375
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-
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Net interest income after
provision for loan losses
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4,555
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6,215
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16,061
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18,554
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Total non-interest income
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3,762
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1,187
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7,262
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2,109
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Total non-interest expense
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3,996
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4,190
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12,477
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12,328
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Income before income taxes
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4,321
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3,212
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10,846
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8,335
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Income tax expense
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701
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582
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1,839
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1,391
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Net income
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$
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3,620
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$
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2,630
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$
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9,007
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$
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6,944
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Basic earnings per share
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$
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0.44
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$
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0.30
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$
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1.04
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$
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0.79
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Diluted earnings per share
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$
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0.44
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$
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0.29
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$
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1.03
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$
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0.78
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Dividends paid per common share
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$
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0.07
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$
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0.50
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$
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0.64
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$
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0.60
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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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14.95
8,147,005
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$
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14.42
8,888,847
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$
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14.95
8,147,005
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$
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14.42
8,888,847
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Selected Operating Ratios(2):
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Average yield on interest-
earning assets
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3.38
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%
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4.04
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%
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3.59
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%
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3.89
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%
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Average rate paid on interest-bearing
liabilities
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1.73
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%
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1.98
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%
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1.88
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%
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1.88
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%
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Average interest rate spread (3)
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1.65
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%
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2.05
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%
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1.72
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%
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2.06
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%
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Net interest margin (3)
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1.83
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%
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2.23
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%
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1.92
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%
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2.26
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%
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Average interest-earning assets
to average interest-bearing
liabilities
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111.55
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%
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109.59
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%
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112.10
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%
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111.69
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%
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Net interest income after
provision for loan losses to
non-interest expense
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113.99
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%
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148.33
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%
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128.72
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%
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150.50
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%
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Total non-interest expense to total
average assets
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1.31
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%
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1.40
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%
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1.31
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%
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1.43
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%
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Efficiency ratio(4)
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44.07
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%
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56.61
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%
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50.52
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%
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59.66
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%
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Return on average assets
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1.19
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%
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0.88
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%
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0.85
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%
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0.80
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%
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Return on average equity
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8.28
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%
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7.52
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%
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8.46
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%
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6.92
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%
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Average equity to average total assets
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11.36
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%
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11.72
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%
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11.17
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%
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11.62
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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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2020
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2019
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2020
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2019
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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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2.33
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%
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2.26
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%
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2.33
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%
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2.26
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%
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Non-performing assets as a percentage of total assets(6)
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1.18
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%
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1.15
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%
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1.18
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%
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1.15
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%
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Allowance for loan losses as a percentage of total loans
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1.13
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%
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0.90
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%
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1.13
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%
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0.90
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%
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Allowance for loan losses as a percentage of non-performing loans
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49.03
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%
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40.29
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%
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49.03
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%
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40.29
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%
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Net charge-offs (recoveries) to average loans receivable
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0.05
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%
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(0.07
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)%
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0.05
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%
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(0.04
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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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10.33
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%
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10.90
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%
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10.33
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%
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10.90
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%
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Bank
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10.29
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%
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10.73
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%
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10.29
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%
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10.73
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%
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Tier 1 common risk-based capital ratio
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Company
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17.31
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%
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18.85
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%
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17.31
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%
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18.85
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%
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Bank
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17.00
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%
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18.57
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%
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17.00
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%
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18.57
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%
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Tier 1 risk-based capital ratio
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||||||||||||||||
Company
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17.31
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%
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18.85
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%
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17.31
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%
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18.85
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%
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||||||||
Bank
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17.00
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%
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18.57
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%
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17.00
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%
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18.57
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%
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||||||||
Total risk-based capital ratio
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||||||||||||||||
Company
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18.31
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%
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19.71
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%
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18.31
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%
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19.71
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%
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||||||||
Bank
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17.99
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%
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19.43
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%
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17.99
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%
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19.43
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%
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(1)
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Non-GAAP measure: see reconciliation below.
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(2)
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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.
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(3
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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.
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(4
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The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income.
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(5)
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Asset quality ratios and capital ratios are end of period ratios, except for net charge-offs to average loans receivable.
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(6)
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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 (“TDR”) due to being recently restructured. TDRs 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.
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(7)
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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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Non-GAAP Measures Disclosure
Reported 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, such information is useful to investors. This disclosure 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.
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(In Thousands, Except Per Share Amounts) |
As of June 30, 2020
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As of September 30, 2019
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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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128,239
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$
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128,239
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$
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139,611
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$
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139,611
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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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366
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--
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448
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||||||||||||
Total intangibles
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$
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--
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$
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6,468
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$
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--
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$
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6,550
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||||||||
Adjusted stockholders’ equity
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$
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128,239
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$
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121,771
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$
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139,611
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$
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133,061
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||||||||
Shares of common stock outstanding
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8,147,005
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8,147,005
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8,889,447
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8,889,447
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||||||||||||
Adjusted book value per share
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$
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15.74
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$
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14.95
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$
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15.71
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$
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14.97
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