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PHILADELPHIA, Feb. 1, 2013 (GLOBE NEWSWIRE) -- Prudential Bancorp, Inc. of Pennsylvania (the "Company") (Nasdaq:PBIP), the "mid-tier" holding company for Prudential Savings Bank (the "Bank"), today reported net income of $272,000, or $0.03 per diluted share, for the quarter ended December 31, 2012 as compared to $404,000, or $0.04 per diluted share, for the comparable period in 2011. The decreased level of earnings primarily reflected the effects of an increase in the valuation allowance related to a deferred tax asset.
Tom Vento, President and Chief Executive Officer, stated, "Although our earnings continue to be negatively impacted by a historically low interest rate environment, we continue to make significant progress in reducing our non-performing assets and improving our asset quality. In January we sold our largest non-performing loan relationship which totaled $9.2 million at December 31, 2012. As a result, our non-performing assets declined by approximately $7.9 million to approximately $7.8 million or 1.6% of total assets. There was no additional loss incurred in connection with the sale of this non-performing loan relationship."
At December 31, 2012, the Company had total assets of $491.2 million, an increase of $667,000 from $490.5 million at September 30, 2012. The increase was attributable to increases during the first quarter of fiscal 2013 of $16.6 million in the investment and mortgage-backed securities portfolio and increases of $13.3 million in the loan portfolio. These increases were substantially offset by a decrease in cash and cash equivalents of $28.0 million as funds received from the sale and call of investment and mortgage-backed securities during third and fourth quarters of fiscal 2012 were reinvested in loans and investment securities.
Total liabilities increased $430,000 to $431.1 million at December 31, 2012 from $430.7 million at September 30, 2012. The increase was due to a $2.2 million increase in deposits and a $916,000 increase in advances from borrowers for taxes and insurance. These increases were substantially offset by a $2.4 million decrease in accrued interest related to certificates of deposit as interest accrued on such deposits is generally distributed at the end of the calendar year.