Pru Bancorp Reports Mortgage-Linked Loss

Prudential Bancorp Inc., Philadelphia, has reported a mortgage-related net loss of $682,000 ($0.06 per share) for the first quarter, compared with net income of $965,000 ($0.08 per share) a year earlier. Prudential said the loss stemmed from the recognition of a $1.5 million pretax impairment charge related to a $35 million investment in a mutual fund that holds mortgage-backed securities. "The impairment charge was related to declines in fair value due to interest rate movements and significantly reduced investor interest in mortgage-related securities, and was not related to any credit quality concerns with respect to the assets underlying the mutual fund," the company said. Prudential Bancorp is the mid-tier holding company for Prudential Savings Bank, which can be found online at http://www.prudential savingsbank.com.