PDL Community Bancorp Announces 2021 Second Quarter Results

Friday, 06. August 2021 03:03

NEW YORK, Aug. 05, 2021 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the financial holding company for Ponce Bank (the “Bank”) and Mortgage World Bankers, Inc. (“Mortgage World”), reported net income of $5.9 million, or $0.35 per basic and diluted share, for the second quarter of 2021, compared to net income of $2.5 million, or $0.15 per basic and diluted share, for the prior quarter and a net loss of ($571,000), or ($0.03) per basic and diluted share, for the second quarter of 2020.

Second Quarter Highlights

  • Net interest income of $13.7 million for the current quarter increased $840,000, or 6.5%, from prior quarter and increased $4.2 million, or 44.2%, from same quarter last year.
  • Income before income taxes of $7.8 million for the current quarter increased $4.7 million, or 146.5%, from prior quarter and increased $8.5 million from a loss of ($611,000) for the same quarter last year.
  • Cost of interest-bearing deposits was 0.67% for the current quarter, a decrease from 0.77% for the prior quarter and from 1.27% for the same quarter last year.
  • Net interest margin was 3.84% for the current quarter, a decrease from 4.00% for the prior quarter and an increase from 3.45% for the same quarter last year.
  • Net interest rate spread was 3.60% for the current quarter, a decrease from 3.76% for the prior quarter and an increase from 3.13% for the same quarter last year.
  • Efficiency ratio was 61.80% for the current quarter compared to 76.94% for the prior quarter and 103.37% for the same quarter last year.
  • Non-performing loans of $9.0 million decreased $2.5 million year-over-year and equates to 0.66% of total loans receivable as of June 30, 2021.
  • Net loans receivable were $1.34 billion at June 30, 2021, an increase of $184.9 million, or 16.0%, from December 31, 2020.
  • Deposits were $1.24 billion at June 30, 2021, an increase of $206.6 million, or 20.1%, from December 31, 2020.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, the Company’s President and CEO, noted “We are pleased to have added to the great start we had for 2021; we continue executing well on all fronts. Our deposit growth is well centered on new customer acquisition while lowering our cost of funds; likewise, our loan portfolio expansion continues with little adverse effect on our net interest margin and ALLL. Importantly, our growth in PPP loans, a large but not the sole source of our growth, has had a very positive impact on our communities. GPS, our Salesforce initiative, has begun to tangibly demonstrate its value while we focus on lowering our operating expenses and increasing profitability. On June 15, 2021, Ponce Bank was approved by the United States Department of the Treasury to receive $1.8 million in federal Economic Relief Funds for Small Businesses. This is further evidence that we are well positioned to benefit from the rediscovery of the important role MDIs and CDFIs like us have in remediating the disparate effects of the pandemic, and the wealth and financial gaps present, in our communities.”

Executive Chairman’s Comments

Steven A. Tsavaris, the Company’s Executive Chairman, added “As we cross the first anniversary of our acquisition, we are pleased that Mortgage World continues to contribute to our product expansion and diversification; its integration with Ponce Bank branches will be enhanced by the renovation of our banking facilities.

Loan Payment Deferrals

Through June 30, 2021, 417 loans aggregating $385.0 million had received forbearance, primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months, of which 23 loans have since been paid-off by borrowers as of June 30, 2021. As of June 30, 2021, 353 loans aggregating $318.7 million were no longer in forbearance and continue performing pursuant to their terms and 41 loans in the amount of $47.8 million remained in forbearance as a result of renewed forbearance for a period of three months. Of the 41 loans receiving renewed forbearance, 27 loans, totaling $23.3 million are related to one-to-four family residential real estate. All of these loans had been performing in accordance with their contractual obligations prior to the granting of the initial forbearance. The Company actively monitors the business activities of borrowers in forbearance and seeks to determine their capacity to resume payments as contractually obligated upon the termination of the forbearance period. The initial and extended forbearances are short-term modifications made on a good faith basis in response to the COVID-19 pandemic and in furtherance of governmental policies.

Results of Operations Summary

Net income for the three months ended June 30, 2021 was $5.9 million, compared to $2.5 million of net income for the three months ended March 31, 2021 and a ($571,000) net loss for the three months ended June 30, 2020.

The $3.5 million increase in net income for the three months ended June 30, 2021 compared to the three months ended March 31, 2021 is due to an increase of $4.4 million in non-interest income primarily due to an increase of $3.5 million, net of expenses, in gain on sale of real property. The increase in net income was also attributable to an increase of $840,000 in net interest income, a decrease of $100,000 in provision for loan losses, offset by increases of $1.2 million in provision for income taxes and $726,000 in non-interest expense.

The $6.5 million increase in net income for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 is due to an increase of $7.8 million in non-interest income primarily due to an increase of $4.2 million, net of expenses, in gain on sale of real property and $1.3 million in income on sale of mortgage loans attributable to Mortgage World. The increase in net income was also attributable to $4.2 million in net interest income. The increase in net income was offset by increases of $3.2 million in non-interest expense, $2.0 million in provision for income taxes, and $315,000 in provision for loan losses.

Net income for the six months ended June 30, 2021 was $8.4 million, compared to a ($1.8 million) net loss for the six months ended June 30, 2020. The change from the six months ended June 30, 2020 is primarily due to an $11.0 million increase in non-interest income primarily due to $4.8 million, net of expenses, in gain on sale of real property, $2.8 million in income on sale of mortgage loans and $1.5 million in income from loan originations attributable to Mortgage World. The increase in net income was also attributable to a $7.2 million increase in net interest income and a decrease of $145,000 in provision for loan losses. The increase in net income was offset by increases of $5.3 million in non-interest expense and $2.9 million in provision for income taxes.

Net interest income for the three months ended June 30, 2021 was $13.7 million, an increase of $840,000, or 6.5%, compared to the three months ended March 31, 2021 and an increase of $4.2 million, or 44.2%, compared to the three months ended June 30, 2020. The increase of $840,000 in net interest income compared to the three months ended March 31, 2021 was attributable to an increase of $667,000 in interest and dividend income and a decrease of $173,000 in interest expense. The increase of $4.2 million in net interest income for the three months ended June 30, 2021 compared to three months ended June 30, 2020 was attributable to an increase of $3.5 million in interest and dividend income and a decrease of $760,000 in interest expense.

Net interest income for the six months ended June 30, 2021 was $26.6 million, an increase of $7.2 million, or 36.9%, compared to the six months ended June 30, 2020. The increase in net interest income was attributable to an increase of $5.6 million in interest and dividend income and a decrease of $1.6 million in interest expense.

Net interest margin was 3.84% for the three months ended June 30, 2021, a decrease of 16 basis points from 4.00% for the three months ended March 31, 2021 and an increase of 39 basis points from 3.45% for the three months ended June 30, 2020. 

Net interest rate spread decreased by 16 basis points to 3.60% for the three months ended June 30, 2021 from 3.76% for the three months ended March 31, 2021 and increased by 47 basis points from 3.13% for the three months ended June 30, 2020. The decrease in the net interest rate spread for the three months ended March 31, 2021 was primarily due to a decrease in the average yields on interest-earning assets of 27 basis points to 4.43% for the three months ended June 30, 2021 from 4.70% for the three months ended March 31, 2021, offset by a decrease on the average rates on interest-bearing liabilities of 11 basis points to 0.83% for the three months ended June 30, 2021 from 0.94% for the three months ended March 31, 2021. The increase in the net interest rate spread for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 was primarily due to a decrease on the average rates on interest-bearing liabilities of 53 basis points to 0.83% for the three months ended June 30, 2021 from 1.36% for the three months ended June 30, 2020, offset by a slight decrease in the average yields on interest-earning assets of 6 basis points to 4.43% for the three months ended June 30, 2021 from 4.49% for the three months ended June 30, 2020.

Non-interest income increased $4.4 million to $8.3 million for the three months ended June 30, 2021 from $3.9 million for the three months ended March 31, 2021 and increased $7.8 million from $574,000 for the three months ended June 30, 2020.

The increase in non-interest income for the three months ended June 30, 2021 compared to the three months ended March 31, 2021 was primarily due to increases of $3.5 million, net of expenses, from gain on the sale of real property recognized in the second quarter of 2021, $432,000 in loan origination fees, $425,000 in other non-interest income and $207,000 in brokerage commissions, offset by a decrease of $220,000 in income on sale of mortgage loans attributable to Mortgage World operations.

The increase in non-interest income for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 was primarily due to increases of $4.2 million, net of expenses, from gain on the sale of real property, $1.3 million in income on sale of mortgage loans, $971,000 in loan origination fees, $418,000 in other non-interest income, $408,000 in brokerage commissions, $285,000 in late and prepayment charges and $221,000 service charges and fees.

Non-interest income increased $11.0 million to $12.2 million for the six months ended June 30, 2021 from $1.2 million for the six months ended June 30, 2020. The increase in non-interest income for the six months ended June 30, 2021 compared to the six months ended June 30, 2020 was primarily due to increases of $4.8 million, net of expenses, from gain on the sale of real property, $2.8 million on sale of mortgage loans and $1.5 million in loan originations attributable to Mortgage World. Other increases in non-interest income are $600,000 in other non-interest income, $581,000 in brokerage commissions, $410,000 in late and prepayment charges and $302,000 in service charges and fees.

Non-interest expense increased $726,000, or 5.6%, to $13.6 million for the three months ended June 30, 2021, from $12.9 million for the three months ended March 31, 2021 and increased $3.2 million from $10.4 million for the three months ended June 30, 2020.

The increase in non-interest expense for the three months ended June 30, 2021, compared to the three months ended March 31, 2021 was attributable to increases of $1.6 million in professional fees, primarily attributable to an increase of $1.0 million in consulting expenses related to a third-party service provider that provided loan origination services related to the PPP loans, $204,000 in occupancy and equipment, $142,000 in direct loan expenses, and $139,000 in data processing expenses, offset by a decrease of $1.5 million in compensation and benefits, which was specifically related to the allocable portion of employee expenses related to the origination of PPP loans, netted against PPP loan origination fees received from the SBA.

The increase in non-interest expense for the three months ended June 30, 2021, compared to the three months ended June 30, 2020 primarily reflects increases of $1.6 million in professional fees, primarily attributable to an increase of $1.2 million in consulting expenses related to a third-party service provider that provided loan origination services related to PPP loans, $952,000 in direct loan expenses, $561,000 in occupancy and equipment, and $237,000 in data processing expenses, offset by a decrease of $433,000 in compensation and benefits, which was specifically related to the allocable portion of employee expenses related to the origination of PPP loans, netted against PPP loan origination fees received from the SBA.

Non-interest expense increased $5.3 million, or 24.9%, to $26.6 million for the six months ended June 30, 2021, compared to $21.3 million for the six months ended June 30, 2020. The increase in non-interest expense for the six months ended June 30, 2021, compared to the six months ended June 30, 2020 was attributable to increases of $1.7 million in direct loan expenses, $1.2 million in occupancy and equipment, $1.2 million in professional fees, primarily due to an increase in consulting expenses related to a third-party service provider that provided loan origination services related to PPP loans, $364,000 in data processing expenses and $511,000 in other operating expenses.

Balance Sheet Summary

Total assets increased $192.4 million, or 14.2%, to $1.55 billion at June 30, 2021 from $1.36 billion at December 31, 2020. The increase in total assets is attributable to increases of $184.9 million in net loans receivable, including $156.2 million increases in PPP loans, $31.0 million in available-for-sale securities, $2.0 million in premises and equipment, net, $1.7 million in accrued interest receivable and $837,000 in deferred taxes. The increase in total assets was reduced by decreases of $20.1 million in mortgage loans held for sale, at fair value, $6.0 million in cash and cash equivalents, $1.8 million in other assets, and $270,000 in FHLBNY stock.

Total liabilities increased $180.0 million, or 15.1%, to $1.38 billion at June 30, 2021 from $1.20 billion at December 31, 2020. The increase in total liabilities was mainly attributable to increases of $206.6 million in deposits and $663,000 in advance payments by borrowers for taxes and insurance, offset by decreases of $16.9 million in warehouse lines of credit, $8.0 million in advances from FHLBNY and $1.6 million in other liabilities.

Total stockholders’ equity increased $12.4 million, or 7.8%, to $171.9 million at June 30, 2021 from $159.5 million at December 31, 2020. The $12.4 million increase in stockholders’ equity was mainly attributable to $8.4 million in net income, $3.1 million in net treasury stock activity, $704,000 related to restricted stock units and stock options, $298,000 related to the Company’s Employee Stock Ownership Plan offset by $176,000 related to unrealized loss on available-for-sale securities.   

As of June 30, 2021, the Company had repurchased a total of 1,670,619 shares under the repurchase programs at a weighted average price of $13.22 per share, of which 1,135,086 were reported as treasury stock. Of the 1,670,619 shares repurchased, 186,960 shares have been used for grants awarded to directors, executive officers and non-executive officers under the Company’s 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2020 and 2019. Of these 186,960 shares, 166 shares were retained to satisfy a recipient’s taxes and other withholding obligations and these shares remain as part of treasury stock. In addition, 348,739 shares were sold to Banc of America Strategic Investments Corporation in a privately negotiated transaction.

About PDL Community Bancorp

PDL Community Bancorp is the financial holding company for Ponce Bank and Mortgage World Bankers, Inc. Ponce Bank is a federally chartered stock savings association. Ponce Bank is designated a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent from alternative funding sources and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises as well as mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock. Mortgage World Bankers, Inc. is a mortgage lender operating in five states and is subject to the regulation and examination of the New York State Department of Financial Services. As a Federal Housing Administration (“FHA”)-approved Title II lender, Mortgage World Bankers, Inc. originates and sells to investors single family mortgage loans guaranteed by the FHA, as well as conventional mortgages.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; the anticipated impact of the COVID-19 pandemic and the Company’s attempts at mitigation; changes in the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorp’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

  

PDL Community Bancorp and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)

                    
 As of 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2021  2021  2020  2020  2020 
ASSETS                   
Cash and due from banks:                   
Cash$32,541  $13,551  $26,936  $14,302  $15,875 
Interest-bearing deposits in banks 33,551   76,571   45,142   61,790   60,756 
Total cash and cash equivalents 66,092   90,122   72,078   76,092   76,631 
Available-for-sale securities, at fair value 48,536   30,929   17,498   14,512   13,800 
Held-to-maturity securities, at amortized cost 1,720   1,732   1,743       
Placement with banks 2,739   2,739   2,739   2,739    
Mortgage loans held for sale, at fair value 15,308   13,725   35,406   13,100   1,030 
Loans receivable, net 1,343,578   1,230,458   1,158,640   1,108,956   1,072,417 
Accrued interest receivable 13,134   12,547   11,396   9,995   7,677 
Premises and equipment, net 34,057   33,625   32,045   32,113   32,102 
Federal Home Loan Bank of New York stock (FHLBNY), at cost 6,156   6,057   6,426   6,414   6,422 
Deferred tax assets 5,493   4,569   4,656   3,586   4,328 
Other assets 10,837   7,204   12,604   9,844   5,824 
Total assets$1,547,650  $1,433,707  $1,355,231  $1,277,351  $1,220,231 
LIABILITIES AND STOCKHOLDERS' EQUITY                   
Liabilities:                   
Deposits$1,236,161  $1,138,546  $1,029,579  $973,244  $936,219 
Accrued interest payable 55   66   60   58   48 
Advance payments by borrowers for taxes and insurance 7,682   9,264   7,019   7,739   6,007 
Advances from the FHLBNY and others 109,255   109,255   117,255   117,283   117,284 
Warehouse lines of credit 13,084   11,664   29,961   9,065    
Mortgage loan fundings payable 743   676   1,483   1,457    
Other liabilities 8,780   3,032   10,330   10,131   5,674 
Total liabilities 1,375,760   1,272,503   1,195,687   1,118,977   1,065,232 
Commitments and contingencies                   
Stockholders' Equity:                   
Preferred stock, $0.01 par value; 10,000,000 shares authorized              
Common stock, $0.01 par value; 50,000,000 shares authorized 185   185   185   185   185 
Treasury stock, at cost (15,069)  (19,285)  (18,114)  (18,281)  (17,172)
Additional paid-in-capital 85,956   85,470   85,105   85,817   85,481 
Retained earnings 105,925   99,993   97,541   95,913   91,904 
Accumulated other comprehensive income (41)  28   135   168   150 
Unearned compensation ─ ESOP (5,066)  (5,187)  (5,308)  (5,428)  (5,549)
Total stockholders' equity 171,890   161,204   159,544   158,374   154,999 
Total liabilities and stockholders' equity$1,547,650  $1,433,707  $1,355,231  $1,277,351  $1,220,231 


PDL Community Bancorp and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

 Three Months Ended 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2021  2021  2020  2020  2020 
 (Dollars in thousands, except share and per share data) 
Interest and dividend income:                   
Interest on loans receivable$15,603  $14,925  $14,070  $13,375  $12,162 
Interest on deposits due from banks 2   2   10   5   3 
Interest and dividend on securities and FHLBNY stock 239   250   233   223   228 
Total interest and dividend income 15,844   15,177   14,313   13,603   12,393 
Interest expense:                   
Interest on certificates of deposit 1,108   1,219   1,422   1,597   1,730 
Interest on other deposits 382   382   448   500   534 
Interest on borrowings 622   684   769   655   608 
Total interest expense 2,112   2,285   2,639   2,752   2,872 
Net interest income 13,732   12,892   11,674   10,851   9,521 
Provision for loan losses 586   686   406   620   271 
Net interest income after provision for loan losses 13,146   12,206   11,268   10,231   9,250 
Non-interest income:                   
Service charges and fees 366   329   263   236   145 
Brokerage commissions 430   223   455   447   22 
Late and prepayment charges 298   244   81   145   13 
Income on sale of mortgage loans 1,288   1,508   2,748   1,372    
Loan origination 971   539   656   269    
Gain on sale of real property 4,176   663      4,412    
Other 812   387   596   371   394 
Total non-interest income 8,341   3,893   4,799   7,252   574 
Non-interest expense:                   
Compensation and benefits 4,212   5,664   6,846   5,554   4,645 
Occupancy and equipment 2,838   2,634   2,686   2,584   2,277 
Data processing expenses 733   594   578   596   496 
Direct loan expenses 1,151   1,009   599   437   199 
Insurance and surety bond premiums 143   146   166   138   128 
Office supplies, telephone and postage 467   409   385   386   312 
Professional fees 2,902   1,262   1,533   1,553   1,336 
Marketing and promotional expenses 48   38      127   145 
Directors fees 69   69   69   69   69 
Regulatory dues 120   60   59   49   56 
Other operating expenses 958   1,030   1,034   834   772 
Total non-interest expense 13,641   12,915   13,955   12,327   10,435 
Income (loss) before income taxes 7,846   3,184   2,112   5,156   (611)
Provision (benefit) for income taxes 1,914   732   484   1,147   (40)
Net income (loss)$5,932  $2,452  $1,628  $4,009  $(571)
Earnings (loss) per share:                   
Basic$0.35  $0.15  $0.10  $0.24  $(0.03)
Diluted$0.35  $0.15  $0.10  $0.24  $(0.03)
Weighted average shares outstanding:                   
Basic 16,737,037   16,548,196   16,558,576   16,612,205   16,723,449 
Diluted 16,773,606   16,548,196   16,558,576   16,612,205   16,723,449 


PDL Community Bancorp and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

  Six Months Ended June 30, 
  2021  2020  Variance $  Variance % 
  (Dollars in thousands, except share and per share data) 
Interest and dividend income:                
Interest on loans receivable $30,528  $24,944  $5,584   22.39%
Interest on deposits due from banks  4   69   (65)  (94.20%)
Interest and dividend on securities and FHLBNY stock  489   410   79   19.27%
Total interest and dividend income  31,021   25,423   5,598   22.02%
Interest expense:                
Interest on certificates of deposit  2,327   3,557   (1,230)  (34.58%)
Interest on other deposits  764   1,226   (462)  (37.68%)
Interest on borrowings  1,306   1,195   111   9.29%
Total interest expense  4,397   5,978   (1,581)  (26.45%)
Net interest income  26,624   19,445   7,179   36.92%
Provision for loan losses  1,272   1,417   (145)  (10.23%)
Net interest income after provision for loan losses  25,352   18,028   7,324   40.63%
Non-interest income:                
Service charges and fees  695   393   302   76.84%
Brokerage commissions  653   72   581  * 
Late and prepayment charges  542   132   410   310.61%
Income on sale of mortgage loans  2,796      2,796   %
Loan origination  1,510      1,510   %
Gain on sale of real property  4,839      4,839   %
Other  1,199   599   600   100.17%
Total non-interest income  12,234   1,196   11,038  * 
Non-interest expense:                
Compensation and benefits  9,876   9,653   223   2.31%
Occupancy and equipment  5,472   4,294   1,178   27.43%
Data processing expenses  1,327   963   364   37.80%
Direct loan expenses  2,160   411   1,749   425.55%
Insurance and surety bond premiums  289   249   40   16.06%
Office supplies, telephone and postage  876   628   248   39.49%
Professional fees  4,164   2,963   1,201   40.53%
Marketing and promotional expenses  86   379   (293)  (77.31%)
Directors fees  138   138      %
Regulatory dues  180   102   78   76.47%
Other operating expenses  1,988   1,477   511   34.60%
Total non-interest expense  26,556   21,257   5,299   24.93%
Income (loss) before income taxes  11,030   (2,033)  13,063  * 
Provision (benefit) for income taxes  2,646   (249)  2,895  * 
Net income (loss) $8,384  $(1,784) $10,168  * 
Earnings (loss) per share:                
Basic $0.50  $(0.11) N/A  N/A 
Diluted $0.50  $(0.11) N/A  N/A 
Weighted average shares outstanding:                
Basic  16,643,138   16,761,993  N/A  N/A 
Diluted  16,661,423   16,761,993  N/A  N/A 

*Exceeds 500%


PDL Community Bancorp and Subsidiaries
Key Metrics

 At or for the Three Months Ended 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2021  2021  2020  2020  2020 
Performance Ratios:                   
Return on average assets (1) 1.59%  0.72%  0.50%  1.28%  (0.20%)
Return on average equity (1) 13.95%  6.16%  4.03%  9.95%  (1.47%)
Net interest rate spread (1) (2) 3.60%  3.76%  3.50%  3.33%  3.13%
Net interest margin (1) (3) 3.84%  4.00%  3.78%  3.65%  3.45%
Non-interest expense to average assets (1) 3.65%  3.82%  4.29%  3.95%  3.57%
Efficiency ratio (4) 61.80%  76.94%  84.71%  68.09%  103.37%
Average interest-earning assets to average interest- bearing liabilities 140.13%  133.25%  132.04%  134.35%  130.72%
Average equity to average assets 11.37%  11.77%  12.44%  12.90%  13.30%
Capital Ratios:                   
Total capital to risk weighted assets (bank only) 16.08%  15.80%  15.95%  16.93%  17.52%
Tier 1 capital to risk weighted assets (bank only) 14.83%  14.54%  14.70%  15.68%  16.26%
Common equity Tier 1 capital to risk-weighted assets (bank only) 14.83%  14.54%  14.70%  15.68%  16.26%
Tier 1 capital to average assets (bank only) 10.22%  10.78%  11.19%  11.46%  11.63%
Asset Quality Ratios:                   
Allowance for loan losses as a percentage of total loans 1.16%  1.24%  1.27%  1.28%  1.27%
Allowance for loan losses as a percentage of nonperforming loans 175.63%  126.07%  127.28%  131.00%  118.89%
Net (charge-offs) recoveries to average outstanding loans (1) (0.07%)  (0.02%)  0.03%  0.00%  0.01%
Non-performing loans as a percentage of total gross loans 0.66%  0.99%  1.00%  0.98%  1.08%
Non-performing loans as a percentage of total assets 0.58%  0.86%  0.86%  0.86%  0.95%
Total non-performing assets as a percentage of total assets 0.58%  0.86%  0.86%  0.86%  0.95%
Total non-performing assets, accruing loans past due 90
days or more, and accruing troubled debt restructured loans
as a percentage of total assets
 1.01%  1.32%  1.35%  1.36%  1.51%
Other:                   
Number of offices (5)19  20  20  20  14 
Number of full-time equivalent employees (6)231  236  227  230  179 
                    


 (1)Annualized where appropriate.
 (2)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
 (3)Net interest margin represents net interest income divided by average total interest-earning assets.
 (4)Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
 (5)Number of offices included 5 offices for the three months ended June 30, 2021, and included 6 offices for the three months ended March 31, 2021, December 31, 2020 and September 30, 2020 due to the acquisition of Mortgage World.
 (6)Subsequent to July 10, 2020, number of full-time equivalent employees includes full-time equivalent employees related to Mortgage World.


PDL Community Bancorp and Subsidiaries
Loan Portfolio

  As of 
  June 30,  March 31,  December 31,  September 30,  June 30, 
  2021  2021  2020  2020  2020 
  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent 
  (Dollars in thousands) 
Mortgage loans:                                        
1-4 family residential                                        
Investor Owned $325,409   23.82% $317,895   25.51% $319,596   27.27% $320,438   28.55% $317,055   29.25%
Owner-Occupied  98,839   7.24%  99,985   8.02%  98,795   8.43%  93,340   8.31%  91,345   8.43%
Multifamily residential  318,579   23.33%  315,078   25.28%  307,411   26.23%  284,775   25.37%  274,641   25.34%
Nonresidential properties  211,181   15.46%  215,340   17.28%  218,929   18.68%  217,771   19.40%  209,068   19.29%
Construction and land  125,265   9.17%  119,339   9.57%  105,858   9.03%  99,721   8.88%  96,841   8.93%
Total mortgage loans  1,079,273   79.02%  1,067,637   85.66%  1,050,589   89.64%  1,016,045   90.52%  988,950   91.24%
Non-mortgage loans:                                        
Business loans (1)  253,935   18.59%  142,135   11.40%  94,947   8.10%  96,700   8.61%  93,394   8.62%
Consumer loans (2)  32,576   2.39%  36,706   2.94%  26,517   2.26%  9,806   0.87%  1,578   0.14%
Total non-mortgage
loans
  286,511   20.98%  178,841   14.34%  121,464   10.36%  106,506   9.48%  94,972   8.76%
Total loans, gross  1,365,784   100.00%  1,246,478   100.00%  1,172,053   100.00%  1,122,551   100.00%  1,083,922   100.00%
                                         
Net deferred loan
origination costs
  (6,331)      (512)      1,457       786       2,256     
Allowance for losses
on loans
  (15,875)      (15,508)      (14,870)      (14,381)      (13,761)    
                                         
Loans, net $1,343,578      $1,230,458      $1,158,640      $1,108,956      $1,072,417     


 (1)As of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, business loans include $241.5 million, $132.5 million, $85.3 million, $86.2 million and $83.6 million, respectively, of PPP loans.
 (2)As of June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, consumer loans include $32.0 million, $35.9 million, $25.5 million and $8.7 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain Technologies, LLC.

         

PDL Community Bancorp and Subsidiaries
Deposits

  As of 
  June 30,  March 31,  December 31,  September 30,  June 30, 
  2021  2021  2020  2020  2020 
  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent 
  (Dollars in thousands) 
Demand (1) $320,404   25.91% $242,255   21.28% $189,855   18.44% $186,328   19.15% $192,429   20.55%
Interest-bearing deposits:                                        
NOW/IOLA accounts  28,996   2.35%  32,235   2.83%  39,296   3.82%  29,618   3.04%  26,477   2.83%
Money market accounts  172,925   13.99%  157,271   13.81%  136,258   13.23%  148,877   15.30%  125,631   13.42%
Reciprocal deposits  151,443   12.25%  137,402   12.07%  131,363   12.76%  108,367   11.13%  96,915   10.35%
Savings accounts  130,430   10.55%  130,211   11.44%  125,820   12.22%  120,883   12.42%  119,277   12.74%
Total NOW, money
market, reciprocal and
savings accounts
  483,794   39.14%  457,119   40.15%  432,737   42.03%  407,745   41.89%  368,300   39.34%
Certificates of deposit of
$250K or more
  74,941   6.06%  77,418   6.80%  78,435   7.62%  80,403   8.26%  81,786   8.74%
Brokered certificates of
deposit (2)
  83,506   6.76%  86,004   7.55%  52,678   5.12%  55,878   5.74%  55,878   5.97%
Listing service deposits (2)  66,518   5.38%  61,133   5.37%  39,476   3.83%  49,342   5.07%  54,370   5.81%
All other certificates of
deposit less than $250K
  206,998   16.75%  214,617   18.85%  236,398   22.96%  193,548   19.89%  183,456   19.59%
Total certificates of
deposit
  431,963   34.95%  439,172   38.57%  406,987   39.53%  379,171   38.96%  375,490   40.11%
Total interest-bearing deposits  915,757   74.09%  896,291   78.72%  839,724   81.56%  786,916   80.85%  743,790   79.45%
Total deposits $1,236,161   100.00% $1,138,546   100.00% $1,029,579   100.00% $973,244   100.00% $936,219   100.00%


 (1)As of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, included in demand deposits are deposits related to net PPP funding.
 (2)As of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020 there were $28.9 million, $28.8 million, $27.0 million, $26.9 million and $26.8 million in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.


PDL Community Bancorp and Subsidiaries
Nonperforming Assets

 Three Months Ended 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2021  2021  2020  2020  2020 
 (Dollars in thousands) 
Non-accrual loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$1,983  $2,907  $2,808  $2,750  $2,767 
Owner occupied 1,593   1,585   1,053   1,075   1,327 
Multifamily residential 955   946   946   210    
Nonresidential properties 1,408   3,761   3,776   3,830   4,355 
Construction and land              
Non-mortgage loans:                   
Business              
Consumer              
Total non-accrual loans (not including non-accruing
troubled debt restructured loans)
$5,939  $9,199  $8,583  $7,865  $8,449 
                    
Non-accruing troubled debt restructured loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$242  $246  $249  $267  $272 
Owner occupied 2,199   2,195   2,197   2,191   2,198 
Multifamily residential              
Nonresidential properties 659   661   654   655   656 
Construction and land              
Non-mortgage loans:                   
Business              
Consumer              
Total non-accruing troubled debt restructured loans 3,100   3,102   3,100   3,113   3,126 
Total non-accrual loans$9,039  $12,301  $11,683  $10,978  $11,575 
Total non-performing assets$9,039  $12,301  $11,683  $10,978  $11,575 
                    
Accruing troubled debt restructured loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$3,347  $3,362  $3,378  $3,396  $3,730 
Owner occupied 2,431   2,466   2,505   2,177   2,348 
Multifamily residential              
Nonresidential properties 755   750   754   759   762 
Construction and land              
Non-mortgage loans:                   
Business              
Consumer              
Total accruing troubled debt restructured loans$6,533  $6,578  $6,637  $6,332  $6,840 
Total non-performing assets and accruing troubled debt
restructured loans
$15,572  $18,879  $18,320  $17,310  $18,415 
Total non-performing loans to total gross loans 0.66%  0.99%  1.00%  0.98%  1.08%
Total non-performing assets to total assets 0.58%  0.86%  0.86%  0.86%  0.95%
Total non-performing assets and accruing troubled debt
restructured loans to total assets
 1.01%  1.32%  1.35%  1.36%  1.51%


PDL Community Bancorp and Subsidiaries
Average Balance Sheets

 For the Three Months Ended June 30, 
 2021   2020  
 Average          Average         
 Outstanding      Average  Outstanding      Average 
 Balance  Interest  Yield/Rate (1)  Balance  Interest  Yield/Rate (1) 
 (Dollars in thousands) 
Interest-earning assets:                       
Loans (2)$1,332,808  $15,603  4.70%  $1,024,019  $12,162  4.78% 
Securities (3) 41,218   170  1.65%   16,750   146  3.50% 
Other (4) 60,439   71  0.47%   68,900   85  0.50% 
Total interest-earning assets 1,434,465   15,844  4.43%   1,109,669   12,393  4.49% 
Non-interest-earning assets 66,240           65,829         
Total assets$1,500,705          $1,175,498         
Interest-bearing liabilities:                       
NOW/IOLA$30,370  $32  0.42%  $29,692  $38  0.51% 
Money market 300,326   311  0.42%   196,707   458  0.94% 
Savings 131,397   38  0.12%   117,166   37  0.13% 
Certificates of deposit 431,324   1,108  1.03%   375,708   1,730  1.85% 
Total deposits 893,417   1,489  0.67%   719,273   2,263  1.27% 
Advance payments by borrowers 11,086   1  0.04%   8,947   1  0.04% 
Borrowings 119,162   622  2.09%   120,647   608  2.03% 
Total interest-bearing liabilities 1,023,665   2,112  0.83%   848,867   2,872  1.36% 
Non-interest-bearing liabilities:                       
Non-interest-bearing demand 293,626          165,161        
Other non-interest-bearing liabilities 12,848          5,165        
Total non-interest-bearing liabilities 306,474          170,326        
Total liabilities 1,330,139   2,112       1,019,193   2,872     
Total equity 170,566           156,305         
Total liabilities and total equity$1,500,705      0.83%  $1,175,498      1.36% 
Net interest income    $13,732          $9,521     
Net interest rate spread (5)        3.60%          3.13% 
Net interest-earning assets (6)$410,800          $260,802         
Net interest margin (7)        3.84%          3.45% 
Average interest-earning assets to interest-bearing liabilities        140.13%          130.72% 


 (1)Annualized where appropriate.
 (2)Loans include loans and mortgage loans held for sale, at fair value.
 (3)Securities include available-for-sale securities and held-to-maturity securities.
 (4)Includes FHLBNY demand account and FHLBNY stock dividends.
 (5)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
 (6)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
 (7)Net interest margin represents net interest income divided by average total interest-earning assets.


PDL Community Bancorp and Subsidiaries
Average Balance Sheets

 For the Six Months Ended June 30, 
 2021  2020 
 Average          Average         
 Outstanding      Average  Outstanding      Average 
 Balance  Interest  Yield/Rate(1)  Balance  Interest  Yield/Rate (1) 
 (Dollars in thousands) 
Interest-earning assets:                       
Loans (2)$1,286,226  $30,528   4.79% $999,758  $24,944   5.02%
Securities (3) 31,919   346   2.19%  17,484   229   2.63%
Other (4) 53,548   147   0.55%  53,560   250   0.93%
Total interest-earning assets 1,371,693   31,021   4.56%  1,070,802   25,423   4.77%
Non-interest-earning assets 65,102           51,647         
Total assets$1,436,795          $1,122,449         
Interest-bearing liabilities:                       
NOW/IOLA$31,720  $70   0.45% $29,359  $77   0.53%
Money market 288,779   615   0.43%  178,589   1,075   1.21%
Savings 129,191   77   0.12%  115,438   72   0.13%
Certificates of deposit 418,722   2,327   1.12%  377,431   3,557   1.90%
Total deposits 868,412   3,089   0.72%  700,817   4,781   1.37%
Advance payments by borrowers 9,999   2   0.04%  8,464   2   0.05%
Borrowings 124,429   1,306   2.12%  114,643   1,195   2.10%
Total interest-bearing liabilities 1,002,840   4,397   0.88%  823,924   5,978   1.46%
Non-interest-bearing liabilities:                       
Non-interest-bearing demand 254,588          136,903        
Other non-interest-bearing liabilities 13,297          4,065        
Total non-interest-bearing liabilities 267,885          140,968        
Total liabilities 1,270,725   4,397       964,892   5,978     
Total equity 166,070           157,557         
Total liabilities and total equity$1,436,795       0.88% $1,122,449       1.46%
Net interest income    $26,624          $19,445     
Net interest rate spread (5)         3.68%          3.31%
Net interest-earning assets (6)$368,853          $246,878         
Net interest margin (7)         3.91%          3.65%
Average interest-earning assets to                       
interest-bearing liabilities         136.78%          129.96%


 (1)Annualized where appropriate.
 (2)Loans include loans and mortgage loans held for sale, at fair value.
 (3)Securities include available-for-sale securities and held-to-maturity securities.
 (4)Includes FHLBNY demand account and FHLBNY stock dividends.
 (5)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
 (6)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
 (7)Net interest margin represents net interest income divided by average total interest-earning assets.


PDL Community Bancorp and Subsidiaries
Other Data

 As of 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2021  2021  2020  2020  2020 
 (Dollars in thousands, except share and per share data) 
Other Data                   
Common shares issued 18,463,028   18,463,028   18,463,028   18,463,028   18,463,028 
Less treasury shares 1,135,086   1,444,776   1,337,059   1,346,679   1,228,737 
Common shares outstanding at end of period 17,327,942   17,018,252   17,125,969   17,116,349   17,234,291 
                    
Book value per share$9.92  $9.47  $9.32  $9.25  $8.99 
Tangible book value per share$9.92  $9.47  $9.32  $9.25  $8.99 


Contact:
Frank Perez
frank.perez@poncebank.net
718-931-9000


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