PDL Community Bancorp Announces 2019 Third Quarter Results

Ponce Bank Oct 30, 2019 12:00:00 AM

(GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $709,000, or $0.04 per basic and diluted share, for the third quarter of 2019, compared to $950,000, or $0.05 per basic and diluted share, for the prior quarter and net income of $402,000, or $0.02 per basic and diluted share, for the third quarter of 2018. For the nine months ended September 30, 2019 and 2018, net income was $2.3 million and $2.0 million, or $0.13 and $0.11 per basic and diluted share, respectively.

Carlos P. Naudon, President and CEO remarked that, “the year-to-date results are evidence that management remains focused on executing on its core business while investing in capturing growth opportunities and executing strategic initiatives. The increase in net interest income from the prior year reflects the balancing of loan growth and asset quality, the increase in occupancy and equipment expense evidences the continued branch transformation initiative, and the shares repurchased this year have added value to shareholders.”

Net Income

The $241,000 decrease in net income from the prior quarter reflects a $627,000, or 7.2%, increase in noninterest expense, a $118,000, or 3.8%, increase in interest expense, a $107,000, or 15.6%, decrease in noninterest income and a $14,000 increase in provision for loan losses, offset by a $539,000, or 4.3%, increase in interest and dividend income and a $86,000, or 23.1%, decrease in provision for income taxes.

The $307,000 increase in net income from the same quarter last year reflects a $1.2 million, or 10.4%, increase in interest and dividend income and a $588,000 decrease in provision for loan losses, offset by a $698,000, or 28.0%, increase in interest expense, a $565,000, or 6.4%, increase in noninterest expense, a $135,000, or 18.9%, decrease in noninterest income and a $99,000, or 52.7%, increase in provision for income taxes.

Net income for the nine months ended September 30, 2019 and 2018 was $2.3 million and $2.0 million, respectively. For the nine months ended September 30, 2019, net income reflects an increase of $3.9 million, or 11.6%, in interest and dividend income and a $871,000, or 84.2%, decrease in provision for loan losses, offset by a $2.4 million, or 35.5%, increase in interest expense, a $1.6 million, or 6.5%, increase in noninterest expense, a $344,000, or 55.2%, increase in provision for income taxes and a $104,000, or 4.9%, decrease in noninterest income.

Net Interest Margin

The net interest margin increased by 8 basis points to 3.83% for the three months ended September 30, 2019 from 3.75% for the three months ended June 30, 2019, while the net interest rate spread increased by 10 basis points to 3.44% from 3.34% for the same periods. Average interest-earning assets increased by $11.4 million, or 1.1%, to $1,010.9 million for the three months ended September 30, 2019 from $999.4 million for the three months ended June 30, 2019. The average yield on interest-earning assets increased by 10 basis points to 5.08% from 4.98%, for the same periods. Average interest-bearing liabilities increased by $19.1 million, or 2.5%, to $769.4 million for the three months ended September 30, 2019 from $750.3 million for the three months ended June 30, 2019. The average rate on interest-bearing liabilities was unchanged at 1.64% for both periods.

The net interest margin decreased by 3 basis points to 3.83% for the three months ended September 30, 2019 from 3.86% for the three months ended September 30, 2018, while the net interest rate spread decreased by 5 basis points to 3.44% from 3.49% for the same periods. Average interest-earning assets increased by $59.7 million, or 6.3%, to $1,010.9 million for the three months ended September 30, 2019 from $951.2 million for the three months ended September 30, 2018. The average yield on interest-earning assets increased by 18 basis points to 5.08% from 4.90% for the same periods. Average interest-bearing liabilities increased by $65.3 million, or 9.3%, to $769.4 million for the three months ended September 30, 2019 from $704.1 million for the three months ended September 30, 2018. The average rate on interest-bearing liabilities increased by 24 basis points to 1.64% from 1.40% for the same periods.

Noninterest Income

Noninterest income decreased to $579,000 for the three months ended September 30, 2019, down $107,000, or 15.6%, from $686,000 for the three months ended June 30, 2019. The decrease was attributable to decreases of $112,000, or 42.7%, in late and prepayment charges related to mortgage loans and $26,000, or 15.1%, in other noninterest income offset by increases of $19,000, or 8.3%, in service charges and fees and $12,000, or 50.0%, in brokerage commissions.

Noninterest income decreased to $579,000 for the three months ended September 30, 2019, down $135,000, or 18.9%, from $714,000 for the three months ended September 30, 2018. The decrease was mainly attributable to decreases of $250,000, or 87.4%, in brokerage commissions and $26,000, or 15.1%, in other noninterest income offset by increases of $85,000, or 130.8%, in late and prepayment charges related to mortgage loans and $56,000, or 29.3%, in service charges and fees.

Noninterest Expense

Noninterest expense was $9.3 million for the three months ended September 30, 2019, up $627,000, or 7.2%, from $8.7 million for the three months ended June 30, 2019. The increase was mainly attributable to increases in professional fees of $223,000; occupancy and equipment of $211,000 as a result of prior quarter project completion expenses; compensation and benefits expense of $191,000 as a result of expenses related to new hires annual merit increase; insurance and surety bond premiums of $63,000; regulatory dues of $23,000 and office supplies, telephone and postage expenses of $10,000. The increase in noninterest expense was partially offset by decreases in other operating expenses of $57,000 mainly due to a credit from the Federal Deposit Insurance Corporation in the amount of $205,000 related to our FDIC deposit insurance assessment; and data processing expenses of $33,000.

Noninterest expense increased $565,000, or 6.4%, to $9.3 million for the three months ended September 30, 2019 from $8.8 million for the three months ended September 30, 2018. The increase was mainly attributable to increases in occupancy and equipment of $358,000 as a result of rebranding and branch renovation initiatives; compensation and benefits expense of $120,000 as a result of expenses related to restricted stock and stock options; other operating expenses of $90,000 as a result of increase in recruiting fees of $107,000 offset by a credit from the Federal Deposit Insurance Corporation in the amount of $205,000 related to our FDIC deposit insurance assessment; insurance and surety bond premiums of $59,000; and data processing expenses of $56,000 as a result of system enhancements and implementation charges related to software upgrades and additional products. The increase in noninterest expense was partially offset by decreases in direct loan expenses of $82,000; office supplies, telephone and postage expenses of $27,000 and professional fees of $22,000.

Asset Quality

Nonperforming assets increased to $10.3 million, or 0.94% of total assets, at September 30, 2019, from $10.1 million, or 0.96% of total assets, at June 30, 2019 and $6.6 million, or 0.67% of total assets, at September 30, 2018. The increase from June 30, 2019 is mainly attributable to an increase in nonaccrual, 1-4 family residential loans of $522,000.

There was a $14,000 provision for loan losses for the quarter ended September 30, 2019, compared to $0 for the quarter ended June 30, 2019 and $602,000 for the quarter ended September 30, 2018. The allowance for loan losses was $12.2 million, or 1.27% of total loans, at September 30, 2019, compared to $12.5 million, or 1.32% of total loans, at June 30, 2019 and $12.4 million, or 1.37% of total loans, at September 30, 2018. Net charge-offs totaled $372,000 for the quarter ended September 30, 2019, compared to net recoveries totaling $11,000 for the quarter ended June 30, 2019 and $13,000 for the quarter ended September 30, 2018.

Balance Sheet

Total assets increased $40.1 million, or 3.8%, to $1,100.0 million at September 30, 2019 from $1,059.9 million at December 31, 2018. Net loans increased $30.0 million, or 3.3%, to $948.5 million at September 30, 2019 from $918.5 million at December 31, 2018. The increase in net loans was primarily due to increases of $18.6 million, or 21.2%, in construction and land loans, $3.9 million, or 1.0%, in 1-4 family residential and $12.1 million, or 5.2%, in multifamily residential loans, offset by a decrease of $4.7 million, or 29.7%, in business loans.

Steven A. Tsavaris, Executive Chairman remarked that, “while management remains optimistic about the loan production for the remainder of 2019, we are experiencing tough competition for refinancings accelerated by the decreasing interest rate environment." He also remarked that "loan originations remain close to the same levels as the previous year, but payoffs have increased as interest rates have declined."

Total deposits decreased $51.9 million, or 6.4%, to $757.8 million at September 30, 2019 from $809.8 million at December 31, 2018. The decrease in deposits was mainly attributable to decreases of $55.4 million, or 13.1 %, in certificates of deposit and $11.7 million, or 10.1% in demand deposits offset by an increase of $15.2 million, or 5.7%, in savings, NOW and money market accounts.

Total stockholders’ equity was $160.6 million at September 30, 2019, compared to $169.2 million at December 31, 2018. The Company and the Bank exceeded all regulatory capital requirements to be deemed well-capitalized at September 30, 2019. The Bank’s total capital to risk-weighted assets ratio was 19.29%, the tier 1 capital to risk-weighted assets ratio and the common equity tier 1 capital ratio were both 18.03%, and the tier 1 capital to total assets ratio was 13.62% at September 30, 2019, compared to 19.39%, 18.14%, and 13.66%, respectively, at December 31, 2018.

On March 22, 2019, the Board of Directors adopted a share repurchase program effective March 25, 2019 through September 24, 2019. Under the repurchase program, the Company could have repurchased up to 923,151 shares of its common stock, or approximately 5% of the outstanding shares, which are to be used primarily to fund the grants of restricted stock units and stock options made under the Company’s 2018 Long-Term Incentive Plan. Repurchased shares are held by the Company as Treasury shares until used to fund the restricted stock units and option grants. A total of 886,325 shares were repurchased under the program before it expired on September 24, 2019. During the quarter ended September 30, 2019, the Company repurchased 409,347 shares of the Company’s common stock.

About PDL Community Bancorp

PDL Community Bancorp is the holding company for Ponce Bank. The Bank’s business primarily consists of taking deposits from the general public 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. The Bank also invests in securities, which have historically consisted of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities and Federal Home Loan Bank stock. The Bank offers a variety of deposit accounts, including demand, savings, money market and certificates of deposit.

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; 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 prospectus 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 Balance Sheets

(Dollars in thousands, except for share data)

As of

September 30,

June 30,

March 31,

December 31,

September 30,

2019

2018

ASSETS

Cash and due from banks:

Cash

6,425

6,003

5,690

45,225

5,494

Interest-bearing deposits in banks

40,965

47,007

35,877

24,553

16,895

Total cash and cash equivalents

47,390

53,010

41,567

69,778

22,389

Available-for-sale securities, at fair value

51,966

22,154

22,166

27,144

24,177

Loans receivable, net

948,548

934,236

925,099

918,509

893,884

Accrued interest receivable

3,893

3,773

3,735

3,795

3,609

Premises and equipment, net

32,805

32,205

31,777

31,135

29,293

Other real estate owned

—

Federal Home Loan Bank of New York stock (FHLBNY), at cost

8,659

4,609

2,915

2,621

Deferred tax assets

3,925

3,913

3,852

3,811

4,118

Other assets

2,802

2,158

2,485

2,814

2,620

Total assets

1,099,988

1,056,116

1,033,596

1,059,901

982,711

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits

757,845

802,408

806,781

809,758

764,792

Accrued interest payable

Advance payments by borrowers for taxes and insurance

7,780

6,059

8,099

6,037

7,219

Advances from the Federal Home Loan Bank of New York and others

169,404

79,404

44,404

69,404

37,775

Other liabilities

4,324

2,954

3,975

5,467

5,706

Total liabilities

939,434

890,913

863,334

890,729

815,567

Commitments and contingencies

Stockholders' Equity:

Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued

—

Common stock, $0.01 par value; 50,000,000 shares authorized; 18,463,028 shares issued and 17,576,703 shares outstanding as of September 30, 2019 and 18,463,028 shares issued and outstanding as of December 31,2018

185

Treasury stock, at cost; 886,325 shares at September 30, 2019 and no shares as of December 31, 2018

(12,663

)

(6,798

)

(193

)

—

Additional paid-in-capital

85,750

85,357

84,976

84,581

84,557

Retained earnings

101,140

100,431

99,481

98,813

96,896

Accumulated other comprehensive loss

(7,947

)

(7,941

)

(8,035

)

(8,135

)

(8,101

)

Unearned compensation - ESOP; 591,062 shares as of September 30, 2019 and 627,251 shares as of December 31, 2018

(5,911

)

(6,031

)

(6,152

)

(6,272

)

(6,393

)

Total stockholders' equity

160,554

165,203

170,262

169,172

167,144

Total liabilities and stockholders' equity

1,099,988

1,056,116

1,033,596

1,059,901

982,711

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share data)

For the Quarters Ended

September 30,

June 30,

March 31,

December 31,

September 30,

2019

2018

Interest and dividend income:

Interest on loans receivable

12,663

12,060

12,095

12,026

11,483

Interest on deposits due from banks

117

278

149

170

141

Interest and dividend on available-for-sale securities and FHLBNY stock

173

138

130

113

Total interest and dividend income

12,953

12,414

12,382

12,326

11,737

Interest expense:

Interest on certificates of deposit

1,896

1,904

1,956

2,078

1,942

Interest on other deposits

759

821

631

320

272

Interest on borrowings

533

345

333

321

276

Total interest expense

3,188

3,070

2,920

2,719

2,490

Net interest income

9,765

9,344

9,462

9,607

9,247

Provision for loan losses

—

149

215

602

Net interest income after provision for loan losses

9,751

9,344

9,313

9,392

8,645

Noninterest income:

Service charges and fees

247

228

230

217

191

Brokerage commissions

109

108

286

Late and prepayment charges

150

262

139

278

Other

146

172

275

212

172

Total noninterest income

579

686

753

815

714

Noninterest expense:

Compensation and benefits

4,667

4,476

5,014

4,371

4,547

Occupancy and equipment

1,943

1,732

1,911

1,879

1,585

Data processing expenses

398

431

353

357

342

Direct loan expenses

183

182

156

217

265

Insurance and surety bond premiums

146

Office supplies, telephone and postage

281

271

317

349

308

Professional fees

956

733

510

1,025

978

Marketing and promotional expenses

Directors fees

Regulatory dues

Other operating expenses

575

632

582

585

485

Total noninterest expense

9,334

8,707

9,091

9,074

8,769

Income before income taxes

996

1,323

975

1,133

590

Provision for income taxes

287

373

307

498

188

Net income

709

950

668

635

402

Earnings per share:

Basic

0.04

0.05

0.04

0.02

Diluted

0.04

0.05

0.04

0.02

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share data)

For the Nine Months Ended September 30,

2019

2018

Variance $

Variance %

Interest and dividend income:

Interest on loans receivable

36,818

32,922

3,896

11.83

Interest on deposits due from banks

498

510

(12

)

(2.35

Interest and dividend on available-for-sale securities and FHLBNY stock

433

399

8.52

Total interest and dividend income

37,749

33,831

3,918

11.58

Interest expense:

Interest on certificates of deposit

5,756

5,539

217

3.92

Interest on other deposits

2,211

655

1,556

237.56

Interest on borrowings

1,211

578

633

109.52

Total interest expense

9,178

6,772

2,406

35.53

Net interest income

28,571

27,059

1,512

5.59

Provision for loan losses

163

1,034

(871

)

(84.24

Net interest income after provision for loan losses

28,408

26,025

2,383

9.16

Noninterest income:

Service charges and fees

705

627

12.44

Brokerage commissions

169

424

(255

)

(60.14

Late and prepayment charges

551

327

224

68.50

Other

593

744

(151

)

(20.30

Total noninterest income

2,018

2,122

(104

)

(4.90

Noninterest expense:

Compensation and benefits

14,157

13,466

691

5.13

Occupancy and equipment

5,586

4,794

792

16.52

Data processing expenses

1,182

1,050

132

12.57

Direct loan expenses

521

572

(51

)

(8.92

Insurance and surety bond premiums

312

275

13.45

Office supplies, telephone and postage

869

960

(91

)

(9.48

Professional fees

2,199

2,130

3.24

Marketing and promotional expenses

119

147

(28

)

(19.05

Directors fees

225

207

8.70

Regulatory dues

173

177

)

(2.26

Other operating expenses

1,789

1,705

4.93

Total noninterest expense

27,132

25,483

1,649

6.47

Income before income taxes

3,294

2,664

630

23.65

Provision for income taxes

967

623

344

55.22

Net income

2,327

2,041

286

14.01

Earnings per share:

Basic

0.13

0.11

N/A

Diluted

0.13

0.11

N/A

PDL Community Bancorp and Subsidiaries

Key Metrics

At or for the Quarters Ended

September 30,

June 30,

March 31,

December 31,

September 30,

2019

2018

Performance Ratios:

Return on average assets

0.27

0.37

0.26

0.25

0.16

Return on average equity

1.71

2.26

1.59

1.49

0.95

Net interest rate spread (1)

3.44

3.34

3.46

3.52

3.49

Net interest margin (2)

3.83

3.75

3.86

3.90

3.86

Noninterest expense to average assets

3.54

3.38

3.59

3.57

3.54

Efficiency ratio (3)

90.24

86.81

89.00

87.07

88.03

Average interest-earning assets to average interest- bearing liabilities

131.38

133.20

133.93

134.30

135.09

Average equity to average assets

15.71

16.27

16.58

16.69

17.06

Capital Ratios:

Total capital to risk weighted assets (bank only)

19.29

19.54

19.32

19.39

19.60

Tier 1 capital to risk weighted assets (bank only)

18.03

18.29

18.06

18.14

18.35

Common equity Tier 1 capital to risk-weighted assets (bank only)

18.03

18.29

18.06

18.14

18.35

Tier 1 capital to average assets (bank only)

13.62

13.64

13.56

13.66

13.78

Asset Quality Ratios:

Allowance for loan losses as a percentage of total loans

1.27

1.32

1.33

1.36

1.37

Allowance for loan losses as a percentage of nonperforming loans

117.72

123.50

155.87

186.77

(186.74

Net (charge-offs) recoveries to average outstanding loans

(0.15

0.00

(0.16

0.03

0.00

Non-performing loans as a percentage of total loans

1.09

1.08

0.86

0.73

Non-performing loans as a percentage of total assets

0.94

0.96

0.77

0.64

0.67

Total non-performing assets as a percentage of total assets

0.94

0.96

0.77

0.64

0.67

Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets

1.73

1.82

1.74

1.63

1.79

Other:

Number of offices

Number of full-time equivalent employees

187

183

185

181

175

(1) 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.

(2) Net interest margin represents net interest income divided by average total interest-earning assets.

(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

Key metrics calculated on income statement items were annualized where appropriate.

PDL Community Bancorp and Subsidiaries

Loan Portfolio

For the Quarters Ended

September 30,

June 30,

March 31,

December 31,

September 30,

2019

2018

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

(Dollars in thousands)

Mortgage loans:

1-4 family residential

Investor Owned

309,065

32.23

302,428

32.00

304,650

32.55

303,197

32.61

295,792

32.69

Owner-Occupied

90,843

9.47

92,904

9.83

95,449

10.20

92,788

9.98

95,464

10.55

Multifamily residential

244,644

25.51

238,974

25.28

234,749

25.09

232,509

25.01

219,958

24.31

Nonresidential properties

195,952

20.44

197,367

20.88

199,903

21.36

196,917

21.18

191,603

21.17

Construction and land

106,124

11.07

100,995

10.69

84,844

9.07

87,572

9.42

85,293

9.42

Total mortgage loans

946,628

98.72

932,668

98.68

919,595

98.27

912,983

98.20

888,110

98.14

Nonmortgage loans:

Business loans

11,040

1.15

11,373

1.20

15,101

1.61

15,710

1.69

15,832

1.75

Consumer loans

1,252

0.13

1,151

0.12

1,125

0.12

1,068

0.11

992

0.11

Total nonmortgage loans

12,292

1.28

12,524

1.32

16,226

1.73

16,778

1.80

16,824

1.86

Total loans

958,920

100.00

945,192

100.00

935,821

100.00

929,761

100.00

904,934

100.00

Net deferred loan origination costs

1,788

1,562

1,727

1,407

1,316

Allowance for losses on loans

(12,160

)

(12,518

)

(12,449

)

(12,659

)

(12,366

)

Loans, net

948,548

934,236

925,099

918,509

893,884

PDL Community Bancorp and Subsidiaries

Nonperforming Assets

For the Quarters Ended

September 30,

June 30,

March 31,

December 31,

September 30,

2019

2018

(Dollars in thousands)

Nonaccrual loans:

Mortgage loans:

1-4 family residential

Investor owned

1,281

1,299

1,284

205

206

Owner occupied

1,052

479

933

1,092

1,098

Multifamily residential

—

Nonresidential properties

3,099

3,288

531

706

544

Construction and land

1,292

1,327

1,341

1,115

1,103

Nonmortgage loans:

Business

—

275

—

Consumer

—

Total nonaccrual loans (not including non-accruing troubled debt restructured loans)

6,724

6,402

4,381

3,134

2,951

Non-accruing troubled debt restructured loans:

Mortgage loans:

1-4 family residential

Investor owned

471

493

1,023

1,053

1,076

Owner occupied

2,488

2,499

1,972

1,987

1,990

Multifamily residential

—

Nonresidential properties

647

742

611

604

605

Construction and land

—

Nonmortgage loans:

Business

—

Consumer

—

Total non-accruing troubled debt restructured loans

3,606

3,734

3,606

3,644

3,671

Total nonaccrual loans

10,330

10,136

7,987

6,778

6,622

Real estate owned:

Mortgage loans:

1-4 family residential

Investor owned

—

Owner occupied

—

Multifamily residential

—

Nonresidential properties

—

Construction and land

—

Nonmortgage loans:

Business

—

Consumer

—

Total real estate owned

—

Total nonperforming assets

10,330

10,136

7,987

6,778

6,622

Accruing loans past due 90 days or more:

Mortgage loans:

1-4 family residential

Investor owned

—

Owner occupied

—

Multifamily residential

—

Nonresidential properties

—

Construction and land

—

Nonmortgage loans:

Business

—

Consumer

—

Total accruing loans past due 90 days or more

—

Accruing troubled debt restructured loans:

Mortgage loans:

1-4 family residential

Investor owned

5,226

5,267

5,157

5,192

5,224

Owner occupied

2,114

2,493

3,415

3,456

3,882

Multifamily residential

—

Nonresidential properties

1,317

1,330

1,428

1,438

1,449

Construction and land

—

Nonmortgage loans:

Business

374

398

Consumer

—

Total accruing troubled debt restructured loans

8,692

9,127

10,040

10,460

10,953

Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans

19,022

19,263

18,027

17,238

17,575

Total nonperforming loans to total loans

1.09

1.08

0.86

0.73

Total nonperforming assets to total assets

0.94

0.96

0.77

0.64

0.67

Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets

1.73

1.82

1.74

1.63

1.79

PDL Community Bancorp and Subsidiaries

Average Balance Sheets

For the Three Months Ended September 30,

2019

2018

Average

Outstanding

Average

Outstanding

Average

Balance

Interest

Yield/Rate (1)

Balance

Interest

Yield/Rate (1)

(Dollars in thousands)

Interest-earning assets:

Loans

957,987

12,663

5.24

890,063

11,483

5.12

Available-for-sale securities

22,415

1.43

25,330

1.39

Other (2)

30,460

209

2.72

35,792

165

1.83

Total interest-earning assets

1,010,862

12,953

5.08

951,185

11,737

4.90

Non-interest-earning assets

35,840

32,634

Total assets

1,046,702

983,819

Interest-bearing liabilities:

NOW/IOLA

28,183

0.49

27,523

0.36

Money market

144,666

685

1.88

64,625

199

1.22

Savings

118,308

0.13

126,329

0.15

Certificates of deposit

379,915

1,896

1.98

435,159

1,942

1.77

Total deposits

671,072

2,654

1.57

653,636

2,213

1.34

Advance payments by borrowers

7,991

0.05

7,409

0.05

Borrowings

90,361

533

2.34

43,057

276

2.54

Total interest-bearing liabilities

769,424

3,188

1.64

704,102

2,490

1.40

Non-interest-bearing liabilities:

Non-interest-bearing demand

109,491

—

105,376

—

Other non-interest-bearing liabilities

3,402

—

6,456

—

Total non-interest-bearing liabilities

112,893

—

111,832

—

Total liabilities

882,317

3,188

815,934

2,490

Total equity

164,385

167,885

Total liabilities and total equity

1,046,702

1.64

983,819

1.40

Net interest income

9,765

9,247

Net interest rate spread (3)

3.44

3.49

Net interest-earning assets (4)

241,438

247,083

Net interest margin (5)

3.83

3.86

Average interest-earning assets to interest-bearing liabilities

131.38

135.09

(1) Annualized where appropriate.

(2) Includes FHLBNY demand account and FHLBNY stock dividends.

(3) 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.

(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(5) Net interest margin represents net interest income divided by average total interest-earning assets.

PDL Community Bancorp and Subsidiaries

Average Balance Sheets

For the Nine Months Ended September 30,

2019

2018

Average

Outstanding

Yield/Rate

Outstanding

Yield/Rate

Balance

Interest

(1)

Balance

Interest

(1)

(Dollars in thousands)

Interest-earning assets:

Loans

940,971

36,818

5.23

850,316

32,922

5.18

Available-for-sale securities

22,772

244

1.43

27,417

299

1.46

Other (2)

37,551

687

2.45

45,113

610

1.81

Total interest-earning assets

1,001,294

37,749

5.04

922,846

33,831

4.90

Non-interest-earning assets

35,142

33,815

Total assets

1,036,436

956,661

Interest-bearing liabilities:

NOW/IOLA

27,298

0.42

27,955

0.36

Money market

124,263

2,004

2.16

56,694

451

1.06

Savings

120,748

118

0.13

125,643

126

0.13

Certificates of deposit

408,241

5,756

1.89

438,121

5,539

1.69

Total deposits

680,550

7,964

1.56

648,413

6,191

1.28

Advance payments by borrowers

8,423

0.05

7,345

0.05

Borrowings

64,947

1,211

2.49

30,030

578

2.57

Total interest-bearing liabilities

753,920

9,178

1.63

685,788

6,772

1.32

Non-interest-bearing liabilities:

Non-interest-bearing demand

110,730

—

98,247

—

Other non-interest-bearing liabilities

4,087

—

5,555

—

Total non-interest-bearing liabilities

114,817

—

103,802

—

Total liabilities

868,737

9,178

789,590

6,772

Total equity

167,699

167,071

Total liabilities and total equity

1,036,436

1.63

956,661

1.32

Net interest income

28,571

27,059

Net interest rate spread (3)

3.41

3.58

Net interest-earning assets (4)

247,374

237,058

Net interest margin (5)

3.81

3.92

Average interest-earning assets to interest-bearing liabilities

132.81

134.57

(1) Annualized where appropriate.

(2) Includes FHLBNY demand account and FHLBNY stock dividends.

(3) 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.

(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(5) Net interest margin represents net interest income divided by average total interest-earning assets.

Contact:

Frank Perez

frank.perez@poncebank.net

718-931-9000

Source: PDL Community Bancorp

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