Prudential Bancorp, Inc. (the “Company”) (Nasdaq:PBIP), the holding
company for Prudential Bank (the “Bank”), reported a net loss of
$6.5 million, or ($0.84) per basic and diluted share, for the
quarter ended March 31, 2022 as compared to net income of $1.7
million, or $0.22 per basic share and $0.21 per diluted share, for
the same quarter in fiscal 2021. For the six months ended March 31,
2022, the Company reported a net loss of $4.7 million, or ($0.60)
per basic and diluted share as compared to net income of $3.6
million, or $0.44 per basic and diluted share, for the same period
in fiscal 2021. The losses incurred for the fiscal 2022 periods
were attributable to the previously disclosed litigation
settlements described below as well as expenses incurred in
conjunction with the pending merger with Fulton Financial
Corporation (“Fulton”) announced on March 2, 2022. Operating net
income (a non-GAAP measure; see “Non-GAAP Measures Disclosures”) of
$1.7 million and $3.6 million, respectively, for the three and six
month periods ended March 31, 2022 was substantially the same as
the comparable periods in fiscal 2021.
Dennis Pollack, President and CEO, commented,
“We are glad to have settled this long-lasting litigation but more
importantly, we are very pleased to join with a strong partner like
Fulton that shares our commitment to community banking. We both
have a history of placing the customer first and working to improve
the lives of persons in the communities we serve. Prudential is
excited to be able to offer our customers and communities a broader
array of products and services.”
Net Interest Income:
Although average interest-earning assets
declined by $125.6 million for the three months ended March 31,
2022 as compared to the same period in 2021, net interest income
for the second quarter of fiscal 2022 amounted to $5.7 million,
decreasing by only $37,000 as compared to the same period in fiscal
2021. The $673,000 decrease in interest income was offset almost
completely by a decrease of $636,000 in interest paid on deposits
and borrowings. The weighted average cost of borrowings and
deposits decreased 7 basis points to 1.45% for the quarter ended
March 31, 2022 from 1.52% for the same period in fiscal 2021 due to
decreases in market rates of interest prior to March 2022 which
affected both deposit and borrowing costs. Although the weighted
average yield on interest-earning assets increased during the
quarter ended March 31, 2022, the decrease in earning asset
balances led to an overall decline in interest income. The weighted
average yield on our interest-earning assets increased by 16 basis
points, to 3.61% for the quarter ended March 31, 2022 from the
comparable period in fiscal 2021 primarily due to the change in
investment securities mix as paydowns of investment securities were
primarily applicable to lower yielding amortizing securities.
Average interest-earning assets declined by
$113.4 million for the six months ended March 31, 2022 as compared
to the same period in fiscal 2021. However, due to relative shifts
in yields earned and rates paid which offset such decline in part,
net interest income was $11.6 million, increasing by $209,000 as
compared to the same period in fiscal 2021. The increase was due to
a $1.3 million, or 17.2%, decrease in interest paid on deposits and
borrowings partially offset by a decrease of $1.1 million, or 5.9%,
in interest income. The decrease in interest income was primarily
due to the decrease in the weighted average balance of
interest-earning assets. The weighted average cost of borrowings
and deposits decreased to 1.45% during the six months ended March
31, 2022 from 1.55% during the comparable period in fiscal 2021
primarily due to decreases in market rates of interest until
recently.
For the three and six months ended March 31,
2022, the net interest margin was 2.33% and 2.32%, respectively,
compared to 2.08% and 2.05%, respectively, for the same periods in
fiscal 2021. The margin improvement experienced in the fiscal 2022
periods in large part reflected the more rapid decline in
interest-bearing liability costs compared to asset yields in
response to the declining interest rate environment that was in
effect through most of the fiscal 2022 periods.
Non-Interest Income:
Non-interest income amounted to $287,000 and
$657,000 for the three and six month periods ended March 31, 2022,
respectively, compared to $575,000 and $1.1 million, respectively,
for the comparable periods in fiscal 2021. The higher level of
income in the fiscal 2021 periods was attributable to favorable
valuations of certain interest rate swap participation agreements
during fiscal 2021 compared to the fiscal 2022 periods in which
losses were recognized such instruments due to the shift in
interest rates.
Non-Interest Expenses:
For the three and six month periods ended March
31, 2022, non-interest expense increased $7.1 million or 163.4% and
$7.2 million or 85.4%, respectively, compared to the same periods
in the prior fiscal year. Non-interest expense increased in both of
the fiscal 2022 periods primarily due to the increases in
litigation, merger and professional services expenses associated
with the previously disclosed litigation settlements and the
announced proposed merger with Fulton.
As previously disclosed, in March 2016, Island
View Properties, Inc. t/a Island View Crossing II and Renato J.
Gualtieri (“Plaintiffs”) filed a lender liability action against
Prudential Bank in the Court of Common Pleas of Philadelphia County
(the “CCP Action”). In its complaint, Plaintiffs sought the amount
of $27 million in damages. In 2017, Plaintiff Island View Crossing
II filed a petition for Chapter 11 bankruptcy and in July 2017,
Prudential Bank removed the CCP Action (the “Removed Action”) to
the U.S. Bankruptcy Court, Eastern District of Pennsylvania (the
“Bankruptcy Court”). The Bankruptcy Court remanded Plaintiff
Gualtieri’s claim to the Court of Common Pleas in 2019 due to a
lack of jurisdiction over Mr. Gualtieri (the “Remanded
Litigation”).
Prudential Bank and the Chapter 11 Trustee
entered into a settlement agreement as of February 28, 2022 (the
“Settlement Agreement”) pursuant to which the parties to the
Removed Action agreed to settle the Removed Action. The primary
terms of the Settlement Agreement include that Prudential Bank (i)
make a payment of $8.3 million into escrow for the benefit of the
Island View bankruptcy estate, (ii) deem satisfied the mortgages on
three properties (one with a carrying value of $1.3 million; the
other two properties had already become other real estate owned)
and (iii) agreed to subordinate its unsecured claim to the claims
of all other unsecured creditors of the Island View debtor estate.
The Bankruptcy Court approved the Settlement Agreement by an order
dated March 17, 2022, which order became final and non-appealable
on March 31, 2022.
On February 25, 2022, Prudential Bank entered
into a settlement agreement and release (the “CCP Settlement”) with
Mr. Gualtieri and the various related individuals and entities set
forth in the CCP Settlement (collectively, the “CCP Parties”). In
the CCP Settlement, the CCP Parties agreed, among other things, to
discontinue, with prejudice, all pending actions against Prudential
Bank, including the Remanded Litigation. In addition, Prudential
Bank agreed to release three mortgages securing outstanding loans
related to the CCP Parties with an aggregate carrying value of
approximately $2.0 million. The CCP Settlement is final and is not
subject to any review by the Court of Common Pleas and all the
pending actions have been discontinued with prejudice.
Income Taxes:
For the three month and six-month periods ended
March 31, 2022, the Company recorded a tax benefit of $1.9 million
and $1.6 million, respectively, compared to income tax expense of
$235,000 and $521,000 for the same periods in fiscal 2021. The
recognition of tax benefits for the three and six month periods in
fiscal 2022 was commensurate with the losses incurred for those
periods.
Balance Sheet:
Total assets decreased by $91.5 million to
approximately $1.0 billion at March 31, 2022 from September 30,
2021. Net loans receivable decreased $67.7 million to $550.5
million at March 31, 2022 from $618.2 million at September 30,
2021. The decrease was primarily related to paydowns in
construction and land development loans and one-to-four residential
mortgage family loans, partially offset by increases in commercial
business loans. The investment securities portfolio decreased from
September 30, 2021 to March 31, 2022 by $10.2 million to $315.8
million primarily as a result of paydowns of securities, while cash
and cash equivalents decreased by $12.8 million.
Total liabilities decreased by $81.2 million
between September 30, 2021 and March 31, 2022 to $888.8 million due
primarily to a $40.7 million decrease in deposits and a $25.2
decrease in borrowings. At March 31, 2022, the Company had FHLB
advances outstanding of $206.8 million, as compared to $232.0
million at September 30, 2021 as the Company allowed higher costing
FHLB borrowings as well as certificates of deposit to run-off as
they matured in order to reduce its cost of funds. All of the FHLB
borrowings outstanding at March 31, 2022 had maturities of less
than three years.
Total stockholders’ equity decreased by $10.3
million to $120.1 million at March 31, 2022 from $130.4 million at
September 30, 2021. The decrease was primarily due to unrealized
losses in the investment portfolio of $13.5 million. These
unrealized losses were due to the increase in interest rates during
the latter part of the March 2022 quarter. The decline also
reflected the effects of the litigation settlements described above
which were the primary cause of the $4.7 million loss experienced
for the six months ended March 31, 2022. The decrease in
stockholders’ equity also reflected the effect of dividend payments
totaling $1.1 million during the six months ended March 31, 2022.
Partially offsetting the decrease were unrealized gains of $8.8
million in the interest rate swap participation agreement
portfolio.
Asset Quality:
At March 31, 2022, the Company’s non-performing
assets totaled $8.2 million or 0.8% of total assets as compared to
$12.5 million or 1.1% of total assets at September 30, 2021. The
decline reflected the effects of the litigation settlements
described above. Non-performing assets at March 31, 2022 included
two construction loans aggregating $2.0 million, 16 one-to-four
family residential mortgage loans aggregating $2.4 million and two
pieces of other real estate owned that related to two
non-performing construction loans aggregating $3.8 million that
were foreclosed during the third quarter of fiscal 2021 (and are
part of the Island View borrowing relationship which was the
subject of the above described litigation). At March 31, 2022, the
Company had two loans totaling $692,000 that were classified as
troubled debt restructurings (“TDRs”). The two TDRs are on
non-accrual and consist of loans secured by two single-family
residential properties. Both TDRs are performing in accordance with
the restructured terms.
The Company recorded a provision for loan losses
of $2.9 million for the three and six months ended March 31, 2022
compared to no provision for loan losses in either of the same
periods in fiscal 2021. During the three and six months ending
March 31, 2022, the Company recorded eight charge offs totaling
$3.5 million while during the same periods the Company recorded
recoveries aggregating $7,000 and $8,000, respectively. During the
three and six months ending March 31, 2021, the Company recorded no
charge offs while during the same periods the Company recorded
recoveries aggregating $15,000 and $51,000, respectively. The
preponderance of the charge-offs during the quarter ended March 31,
2022 were attributable to the previously disclosed litigation
settlements.
The allowance for loan losses totaled $7.9
million, or 1.4% of total loans, and 182.8% of total non-performing
loans at March 31, 2022 as compared to $8.5 million, or 1.4% of
total loans and 101.6% of total non-performing loans at September
30, 2021. The Company believes that the allowance for loan losses
at March 31, 2022 was sufficient to cover all inherent and known
losses associated with the loan portfolio at such date.
About Prudential Bancorp, Inc.:
Prudential Bancorp, Inc. is the holding company
for Prudential Bank. Prudential Bank is a Pennsylvania-chartered,
FDIC-insured savings bank that was originally organized in 1886.
Prudential Bank conducts business from its headquarters and main
office in Philadelphia, Pennsylvania as well as nine additional
full-service financial centers, seven of which are in Philadelphia,
one is in Drexel Hill, Delaware County, and one is in Huntingdon
Valley, Montgomery County, Pennsylvania.
Forward-Looking Statements:
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can be identified by
the use of words such as “may,” “should,” “will,” “could,”
“estimates,” “predicts,” “potential,” “continue,” “anticipates,”
“believes,” “plans,” “expects,” “future,” “intends,” “projects,”
the negative of these terms and other comparable terminology. These
forward-looking statements include, but are not limited to,
statements regarding the outlook and expectations of the Company
with respect to the proposed merger (the “Merger”) with and into
Fulton pursuant to the Agreement and Plan of Merger dated March 1,
2022 (the “Merger Agreement”), the strategic and financial benefits
of the Merger, including the expected impact of the Merger on the
Company’s future financial performance pending the completion of
the Merger, and the timing of the closing of the Merger.
Forward-looking statements are neither
historical facts, nor assurance of future performance. Instead, the
statements are based on current beliefs, expectations and
assumptions regarding the future of the Company’s business, future
plans and strategies, projections, anticipated events and trends,
the economy and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict and many of which are outside of the Company’s
control, and actual results and financial condition may differ
materially from those indicated in the forward-looking statements.
Therefore, you should not unduly rely on any of these
forward-looking statements. Any forward-looking statement is based
only on information currently available and speaks only as of the
date when made. The Company undertakes no obligation, other than as
required by law, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Forward-looking statements contained in this
press release are subject to, among others, the following risks,
uncertainties and assumptions:
- The possibility that the anticipated benefits of the Merger,
including anticipated cost savings and strategic gains, are not
realized when expected or at all, including as a result of the
impact of, or challenges arising from, the integration of the
Company into Fulton or as a result of the strength of the economy,
competitive factors in the areas where the Company and Fulton do
business, or as a result of other unexpected factors or
events;
- The timing and completion of the Merger is dependent on the
satisfaction of customary closing conditions, including approval by
the Company shareholders, which cannot be assured and various other
factors that cannot be predicted with precision at this point;
- The occurrence of any event, change or other circumstances that
could give rise to the right of one or both of the parties to
terminate the Merger Agreement;
- Completion of the Merger is subject to bank regulatory
approvals and such approvals may not be obtained in a timely manner
or at all or may be subject to conditions which may cause
additional significant expense or delay the consummation of the
Merger;
- Potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement or
completion of the Merger;
- The outcome of any legal proceedings related to the Merger
which may be instituted against Fulton or the Company;
- Unanticipated challenges or delays in the integration of the
Company’s business into Fulton’s business and or the conversion of
the Company’s operating systems and customer data onto Fulton’s may
significantly increase the expense associated with the Merger;
and
- Other factors that may affect future results of the Company and
Fulton.
In addition to the foregoing and the factors
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 strength
of the United States economy in general and the strength of the
local economies in which the Company conducts its operations;
general economic conditions; the scope and duration of the on-going
COVID-19 pandemic; the effects of the COVID-19 pandemic, including
on the Company’s credit quality and operations as well as its
impact on general economic conditions; legislative and regulatory
changes including actions taken by governmental authorities in
response to the COVID-19 pandemic; monetary and fiscal policies of
the federal government; changes in tax policies, rates and
regulations of federal, state and local tax authorities including
the effects of the Tax Reform Act; changes in interest rates,
deposit flows, the cost of funds, demand for loan products and the
demand for financial services, in each case as may be affected by
the COVID-19 pandemic; competition, changes in the quality or
composition of the Company’s loan, investment and mortgage-backed
securities portfolios; geographic concentration of the Company’s
business; fluctuations in real estate values; the adequacy of loan
loss reserves; the risk that goodwill and intangibles recorded in
the Company’s financial statements will become impaired; 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.
These forward-looking statements are also
subject to the principal risks and uncertainties applicable to the
Company’s business and activities generally that are disclosed in
the Company’s Annual Report on Form 10-K, as amended, for its
fiscal year ended September 30, 2021, in Item 1A of the Company’s
Quarterly Reports on Form 10-Q filed this fiscal year and in other
documents the Company files with the Securities and Exchange
Commission (“SEC”). The Company’s SEC filings are accessible on the
SEC website at www.sec.gov.
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.
Additional Information About the Proposed Merger
and Where to Find It
Fulton has filed a registration statement with
the SEC under the Securities Act of 1933, as amended, which
includes a preliminary proxy statement/prospectus and other
relevant documents in connection with the proposed Merger. THE
COMPANY SHAREHOLDERS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE, INCLUDING
ANY AMENDMENTS OR SUPPLEMENTS TO IT, BECAUSE IT WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.
The proxy statement/prospectus (when it becomes
available) and any other documents Fulton has filed and will file
with the SEC may be obtained free of charge at the SEC’s website
(www.sec.gov). In addition, copies of the documents the Company has
filed or will file with the SEC may be obtained free of charge on
the Company’s website at www.psbanker.com or by contacting Jack
Rothkopf, Chief Financial Officer, the Company Bancorp, Inc., 1834
West Oregon Avenue, Philadelphia, PA 19145.
Participants in the Transaction
The directors, executive officers, and certain
other members of management and employees of the Company are
participants in the solicitation of proxies in favor of the
proposed Merger from the shareholders of the Company. Information
regarding the directors and executive officers of the Company is
available in its Annual Report on Form 10-K for the fiscal year
ended September 30, 2021 filed with the SEC on December 17, 2021,
as amended on January 28, 2022. Other information regarding the
participants, including the interests, by security holdings or
otherwise, of such participants, will be included in the proxy
statement/prospectus and the other relevant documents filed with
the SEC when they become available. Free copies of this document
may be obtained as described in the preceding paragraph.
No Offer or Solicitation
This press release is not intended to and shall
not constitute an offer to sell or the solicitation of an offer to
sell or the solicitation of an offer to buy any securities or a
solicitation of any vote of approval, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. No offer of
securities shall be made except by means of a prospectus that meets
the requirements of Section 10 of the Securities Act of 1933, as
amended.
|
SELECTED CONSOLIDATED FINANCIAL AND OTHER
DATA |
|
(Unaudited) |
|
|
At March 31, |
|
At September 30, |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
(Dollars in Thousands) |
Selected Consolidated
Financial and Other Data (Unaudited): |
|
|
Total assets |
$1,008,969 |
$1,100,468 |
Cash and cash equivalents |
|
69,869 |
|
82,698 |
Investment and mortgage-backed
securities: |
|
|
Held-to-maturity |
|
18,653 |
|
20,074 |
Available-for-sale |
|
297,170 |
|
305,947 |
Loans receivable, net |
|
550,502 |
|
618,206 |
Goodwill and intangible
assets |
|
6,307 |
|
6,348 |
Deposits |
|
670,776 |
|
711,515 |
FHLB advances |
|
206,793 |
|
232,025 |
Non-performing loans |
|
4,335 |
|
8,379 |
Non-performing assets |
|
8,163 |
|
12,488 |
Stockholders’ equity |
|
120,130 |
|
130,456 |
Common stock outstanding
(shares) |
|
7,776,287 |
|
7,769,387 |
Full-service offices |
|
10 |
|
10 |
|
At or For the Three Months Ended March 31, |
|
At or For theSix Months EndedMarch 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
(Dollars in Thousands Except Per Share Amounts) |
Selected Operating
Data: |
|
|
|
|
Total interest income |
$ 8,792 |
|
$9,465 |
|
$18,031 |
|
$19,154 |
|
Total interest expense |
|
3,104 |
|
|
3,740 |
|
|
6,414 |
|
|
7,746 |
|
Net interest income |
|
5,688 |
|
|
5,725 |
|
|
11,617 |
|
|
11,408 |
|
Provision for loan losses |
|
2,900 |
|
|
-- |
|
|
2,900 |
|
|
-- |
|
Net interest income after
provision for loan losses |
|
2,788 |
|
|
5,725 |
|
|
8,717 |
|
|
11,408 |
|
Total non-interest income |
|
287 |
|
|
575 |
|
|
657 |
|
|
1,112 |
|
Total non-interest expense |
|
11,456 |
|
|
4,350 |
|
|
15,663 |
|
|
8,448 |
|
(Loss) income before income tax
expense (benefit) |
|
(8,381) |
|
|
1,950 |
|
|
(6,289) |
|
|
4,072 |
|
Income tax (benefit) expense |
|
(1,866) |
|
|
235 |
|
|
(1,612) |
|
|
521 |
|
Net (loss) income |
($6,515) |
|
$1,715 |
|
($4,677) |
|
$ 3,551 |
|
Basic earnings per share |
($0.84) |
|
$0.22 |
|
($0.60) |
|
$0.44 |
|
Diluted earnings per share |
($0.84) |
|
$0.21 |
|
($0.60) |
|
$0.44 |
|
Dividends paid per common
share |
$0.07 |
|
$0.07 |
|
$0.14 |
|
$0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Ratios(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on interest-
earning assets |
|
3.61% |
|
|
3.45% |
|
|
3.61% |
|
|
3.44% |
|
Average rate paid on
interest-bearing liabilities |
|
1.45% |
|
|
1.52% |
|
|
1.45% |
|
|
1.55% |
|
Average interest rate spread
(2) |
|
2.16% |
|
|
1.93% |
|
|
2.15% |
|
|
1.89% |
|
Net interest margin (2) |
|
2.33% |
|
|
2.08% |
|
|
2.32% |
|
|
2.05% |
|
Average interest-earning assets
to average interest-bearing liabilities |
|
113.97% |
|
|
111.32% |
|
|
113.31% |
|
|
111.63% |
|
Net interest income after
provision for loan losses to non-interest expense |
|
24.34% |
|
|
131.59% |
|
|
55.65% |
|
|
135.04% |
|
Total non-interest expense to
total average assets |
|
4.38% |
|
|
1.47% |
|
|
2.94% |
|
|
1.43% |
|
Efficiency ratio(3) |
|
191.73% |
|
|
69.06% |
|
|
127.61% |
|
|
67.48% |
|
Return on average assets |
|
(2.49)% |
|
|
0.58% |
|
|
(0.88)% |
|
|
0.60% |
|
Return on average equity |
|
(20.48)% |
|
|
5.24% |
|
|
(7.22)% |
|
|
5.42% |
|
Average equity to average total
assets |
|
12.15% |
|
|
11.07% |
|
|
12.17% |
|
|
11.06% |
|
|
At or for the Three Months EndedMarch 31, |
At or for Six Months EndedMarch 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
Asset Quality
Ratios(4) |
|
|
|
|
|
Non-performing loans as a
percentage of loans receivable, net(5) |
0.79 |
% |
2.10 |
% |
0.79 |
% |
2.10 |
% |
|
Non-performing assets as a
percentage of total assets(6) |
0.81 |
% |
1.08 |
% |
0.81 |
% |
1.08 |
% |
|
Allowance for loan losses as a
percentage of total loans |
1.42 |
% |
1.33 |
% |
1.42 |
% |
1.33 |
% |
|
Allowance for loan losses as a
percentage of total non-performing loans |
182.75 |
% |
64.00 |
% |
182.75 |
% |
64.00 |
% |
|
Net charge-offs (recoveries) to
average loans receivable |
2.45 |
% |
(0.03 |
)% |
0.01 |
% |
(0.11 |
)% |
|
|
|
|
|
|
|
Capital
Ratios(6) |
|
|
|
|
|
Tier 1 leverage ratio |
|
|
|
|
|
Company |
11.60 |
% |
10.67 |
% |
11.60 |
% |
10.57 |
% |
|
Bank |
11.44 |
% |
10.49 |
% |
11.44 |
% |
10.42 |
% |
|
Tier 1 common risk-based capital
ratio |
|
|
|
|
|
Company |
17.32 |
% |
16.85 |
% |
17.32 |
% |
16.85 |
% |
|
Bank |
17.07 |
% |
16.55 |
% |
17.07 |
% |
16.55 |
% |
|
Tier 1 risk-based capital
ratio |
|
|
|
|
|
Company |
17.32 |
% |
16.85 |
% |
17.32 |
% |
16.85 |
% |
|
Bank |
17.07 |
% |
16.55 |
% |
17.07 |
% |
16.55 |
% |
|
Total risk-based capital
ratio |
|
|
|
|
|
Company |
18.53 |
% |
18.04 |
% |
18.53 |
% |
18.04 |
% |
|
Bank |
18.28 |
% |
17.74 |
% |
18.28 |
% |
17.74 |
% |
|
|
|
|
|
|
|
(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 (“TDRs”)
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. |
|
|
|
(6) 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. The Company’s regulatory capital ratios are provided for
informational purposes only. |
|
Non-GAAP Measures Disclosures |
|
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.
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
operating net income (a non-GAAP measure which excludes the effects
of the merger-related expenses and the one-time cash payments and
related loan charge-offs related to the previously disclosed
litigation settlements; management believes many investors desire
to evaluate net income without regard to such expenses: |
|
At or For the Three Months Ended March 31, |
|
At or For the Six Months Ended March 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(Dollars in Thousands) |
|
|
|
|
|
|
(Loss) income before income
taxes |
$ (8,381 |
) |
$1,950 |
|
$ (6,289 |
) |
$ 4,072 |
Income tax (benefit)
expense |
|
(1,866 |
) |
|
235 |
|
|
(1,612 |
) |
|
521 |
Net (loss) income |
|
(6,515 |
) |
|
1,715 |
|
|
(4,677 |
) |
|
3,551 |
One time litigation settlement
expense (net of tax) |
|
7,528 |
|
|
-- |
|
|
7,528 |
|
|
-- |
Merger-related expense (net of
tax) |
|
669 |
|
|
-- |
|
|
739 |
|
|
-- |
Operating net income |
$1,682 |
|
$ 1,715 |
|
$ 3,590 |
|
$ 3,551 |
Contact: |
Jack E. Rothkopf |
|
Chief Financial |
|
Officer |
|
(215) 755-1500 |
Prudenital Bancorp Inc o... (NASDAQ:PBIP)
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