PHILADELPHIA, May 3, 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 $14,000, or $0.00 per diluted share, for the quarter ended March 31, 2013 as compared to $84,000, or $0.01 per diluted share, for the comparable period in 2012. For the six months ended March 31, 2013, the Company recognized net income of $286,000, or $0.03 per diluted share, as compared to net income of $488,000, or $0.05 per diluted share for the comparable period in 2012. The decreased level of earnings for the 2013 periods primarily reflected decreases in net interest income combined with the effects of an increase in the valuation allowance related to a deferred tax asset.
Tom Vento, President and Chief Executive Officer, stated "Although we are pleased that we have posted net income for eight consecutive quarters, we are very disappointed with our financial performance for the first six months of fiscal 2013 as we are continuing to battle both a challenging real estate market as well as a challenging interest rate environment in which our net interest margin continues to be compressed. We continue however to make progress in reducing our non-performing assets and improving our overall asset quality. In January 2013 we sold our largest non-performing loan relationship which totaled $9.2 million at December 31, 2012. Primarily as a result of this sale, our non-performing assets declined by $8.6 million to approximately $7.4 million or 1.6% of total assets as of March 31, 2013. There was no additional loss incurred in connection with the completion of the sale of this non-performing loan relationship."
At March 31, 2013, the Company had total assets of $479.1 million, a decrease of $11.4 million from $490.5 million at September 30, 2012. The decrease was attributable to a decrease in cash and cash equivalents of $47.7 million. This decrease was substantially offset by increases of $21.6 million and $17.6 million in the investment and mortgage-backed securities portfolio and loan portfolio, respectively, reflecting the Company's deployment of its cash and cash equivalents to purchase securities and originate loans in order to improve the Company's earnings.