Profile: Prudential Bancorp Inc (PBIP.OQ)
27 Mar 2015
Prudential Bancorp of Pennsylvania Inc., incorporated on September 9, 2004 is a stock holding company for Prudential Savings Bank (the Bank), a Pennsylvania-chartered, FDIC-insured savings bank. The mutual-to-stock conversion was completed on October 9, 2013. The Company’s business activities consist of the ownership of the Bank’s common stock, and the management of the offering proceeds it retained. As a bank holding company, Prudential Bancorp is subject to the regulation of the Board of Governors of the Federal Reserve System. The Company’s results of operations are primarily dependent on the results of the Bank. As of September 30, 2013, the Company, on a consolidated basis, had total assets of approximately $607.9 million, total deposits of approximately $542.7 million, and total stockholders’ equity of approximately $59.9 million.
The banking office network currently consists of the headquarters and main office and six full-service branch offices. Six of the banking offices are located in Philadelphia (Philadelphia County) and one is in Drexel Hill in neighboring Delaware County, Pennsylvania. The Bank maintains ATMs at six of the banking offices. It also provides on-line banking services. It is primarily engaged in attracting deposits from the general public and using those funds to invest in loans and securities. The Company’s principal sources of funds are deposits, repayments of loans and mortgage-backed securities, maturities and calls of investment securities and interest-bearing deposits, funds provided from operations and funds borrowed from the Federal Home Loan Bank of Pittsburgh. These funds are primarily used for the origination of various loan types including single family residential mortgage loans, construction and land development loans, non-residential or commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans and consumer loans.
The Company is an active originator of residential home mortgage loans in the market area, including loans in excess of $417,000 which are referred to as jumbo loans. Construction and land development loans decreased from $36.8 million or 13.9% of the total loan portfolio at September 30, 2009 to $11.4 million or 3.7% of the total loan portfolio at September 30, 2013. The investment and mortgage-backed securities portfolio stands at $125.5 million at September 30, 2013. At September 30, 2013, the investment and mortgage-backed securities had an aggregate net unrealized loss of $5.1 million which was primarily due to recent increases in the yield on longer term U.S. treasury bond yields which resulted in a reduction with fair values of the Company’s available-for-sale securities.
At September 30, 2013, the Company’s non-performing assets totaled $7.0 million or 1.2% of total assets. Non-performing assets at September 30, 2013 included $6.6 million in non-performing loans of which there were 21 one-to-four family residential loans totaling $4.3 million and seven commercial real estate loans extended to the same borrower totaling $2.4 million. Non-performing assets also included two one-to-four family residential real estate owned properties totaling $406,000. Included in the non-performing loans are $2.1 million of troubled debt restructurings consisting of one residential real estate loan in the amount of $157,000 and the remaining, five commercial real estate loans.
At September 30, 2013, the net loan portfolio totaled $306.5 million or 50.4% of total assets. The types of loans the Company originates are subject to federal and state banking laws and regulations. Interest rates charged by the Company on loans are affected principally by the demand for such loans and the supply of money available for lending purposes and the rates offered by competitors. These factors are, in turn, affected by general and economic conditions, the monetary policy of the federal government, including the Board of Governors of the Federal Reserve System (Federal Reserve Board), legislative tax policies and governmental budgetary matters.
Prudential Bancorp Inc
1834 W. Oregon Avenue
PHILADELPHIA PA 19145