Prudential Bancorp, Inc. (PBIP)

[norweger1979]

PBIP $15.90 announces 4th qtr. and full fiscal year results


Prudential Bancorp, Inc. Announces Fourth Quarter and Fiscal Year Results

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.

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