PDL Community Bancorp Announces 2020 First Quarter Results

YORK, May 01, 2020 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported a net loss of ($1.2 million), or ($0.07) per basic and diluted share, for the first quarter of 2020, compared to a net loss of ($7.5 million), or ($0.43) per basic and diluted share, for the prior quarter and net income of $668,000, or $0.04 per basic and diluted share, for the first quarter of 2019.

Based on our current assessment of the economic impact of the Coronavirus pandemic (“COVID-19”) on our borrowers, we have determined that it will likely be a detriment to borrowers’ ability to repay in the short-term and that the likelihood of long-term detrimental effects will depend significantly on the resumption of normalized economic activities, a factor not yet determinable. Accordingly, and in consideration of its loan payment forbearance programs initiated in March 2020, the Company increased its allowance for loan losses by $1.2 million for the quarter ended March 31, 2020 when compared to December 31, 2019. As a result, the Company’s allowance for loan losses to total loans increased to 1.37% at March 31, 2020 compared to 1.28% at December 31, 2019. Given that total non-accrual loans decreased to $9.7 million at March 31, 2020 from $11.6 million at December 31, 2019, the allowance for loan losses of $13.5 million at March 31, 2020 provides a coverage ratio to non-accrual loans of 138.5% compared to 106.3% at December 31, 2019.

Bank Operations and Customer Service

As New York became the hotbed of the COVID-19 pandemic in the United States, the Bank altered the way it has historically provided services to its deposit customers while seeking to maintain normal day-to-day back-office operations and lending functions. To that end, all back-office and lending personnel transitioned to a remote work environment while the branch network provided traditional banking services to its communities using varying hours of operations and shifting service delivery to electronic and web-based products. The Bank embarked on an extensive and intensive communications program geared to informing customers of the alternative resources provided by the Bank for retaining access to financial services, closing loans and conducting banking transactions, such as ATM networks, online banking, mobile applications, remote deposits and the Bank’s Contact Center. The Bank proactively manages its day-to-day operations by using video and telephonic conferences.

“Although 2020 started off in much the same way as any year, as the rapidly progressing COVID-19 pandemic hit, our primary focus shifted to protecting our employees, customers and the communities we serve,” said Carlos P. Naudon, the Company’s President and Chief Executive Officer. “We also shifted to ensuring the viability of our institution. Our loan portfolio has significant concentrations in a few types of real estate. Accordingly, we reallocated resources to reviewing salient segments and assessing whether they might be disproportionately impacted by COVID-19 consequences. We were, and continue to be, in contact with borrowers that have requested payment deferrals and those that have applied for loans under the Small Business Administration’s Paycheck Protection Program. We will continue to work with our borrowers as we navigate through the probable effects of this pandemic and we will continuously evaluate the potential of loan losses, given the shifting economic environment. However, based on our current reviews, we remain confident that the quality of our underwriting, our weighted average loan-to-value ratio of 55.8% and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio.”

Capital and Liquidity Planning

Bank management regularly updates its capital and liquidity models and has recently updated these models to address COVID-19 developments by revising capital buffers, adopting temporary regulatory modifications, and making changes to our outlook regarding certain risks as developments evolved. The Bank remains well-above the required capital ratios to be considered a well-capitalized bank. Total Capital to Risk-weighted Assets was 17.84%, Tier 1 Capital to Risk-weighted Assets was 16.59%, Common Equity Tier 1 Capital Ratio was 16.59%, and Tier 1 Capital to Total Assets was 12.76% at March 31, 2020. The regulatory capital ratios to be considered well-capitalized under prompt corrective action provisions are 10.00%, 8.00%, 6.50%, and 5.00%, respectively.

Bank management also took steps to enhance its liquidity position by increasing its on balance sheet cash and cash equivalents position in order to meet unforeseen liquidity events and to fund upcoming funding needs. Total cash and cash equivalents was $104.0 million at March 31, 2020 compared to $27.7 million at December 31, 2019. The increase is partially a result of a net increase of $47.9 million in Federal Home Loan Bank of New York (“FHLBNY”) advances at March 31, 2020 when compared to December 31, 2019. The net change in FHLBNY advances has resulted in a decrease to the weighted average cost of funds of 1.69% at March 31, 2020, compared to 2.21% at December 31, 2019.

Net Income (Loss)

The $6.2 million decrease in net loss compared to the prior quarter reflects a decrease in noninterest expense of $8.7 million, or 44.4%, primarily related to the prior quarter’s one-time charge of $9.9 million in connection with the termination of the Company’s Defined Benefit Plan, of which $7.8 million was previously recognized in accumulated other comprehensive income (loss) and a $2.1 million write-off related to the deferred tax asset associated with the Defined Benefit Plan. The decrease was also attributable to a $288,000, or 2.3%, increase in interest and dividend income, and a $74,000, or 2.3%, decrease in interest expense, offset by a $1.7 million decrease in income taxes benefit, a $1.1 million increase in provision for loan losses, and a $43,000, or 6.5%, decrease in noninterest income.

The $1.2 million net loss for the quarter ended March 31, 2020 compared to $668,000 in net income for the first quarter of 2019 reflects a $1.7 million, or 19.0%, increase in noninterest expense, a $997,000, or 669.1%, increase in provision for loan losses, a $186,000, or 6.4%, increase in interest expense and a $131,000, or 17.4%, decrease in noninterest income, offset by a $648,000, or 5.2%, increase in interest and dividend income and a $516,000 decrease in provision for income taxes.

Net Interest Margin

Net interest margin continued to improve as new loans continued to be booked and deposits transitioned to lower market rates. The net interest margin increased by 16 basis points to 3.87% for the three months ended March 31, 2020 from 3.71% for the three months ended December 31, 2019, while the net interest rate spread increased by 17 basis points to 3.51% from 3.34% for the same periods. Average interest-earning assets increased by $10.2 million, or 1.0%, to $1,031.9 million for the three months ended March 31, 2020 from $1,021.8 million for the three months ended December 31, 2019. The average yield on interest-earning assets increased by 12 basis points to 5.07% from 4.95%, for the same periods. Average interest-bearing liabilities increased by $16.9 million, or 2.2%, to $799.0 million for the three months ended March 31, 2020 from $782.1 million for the three months ended December 31, 2019. The weighted average rate on interest-bearing liabilities decreased by 5 basis points to 1.56% from 1.61% for the same periods.

Net interest margin increased by 1 basis point to 3.87% for the three months ended March 31, 2020 from 3.86% for the three months ended March 31, 2019, while the net interest rate spread increased by 5 basis points to 3.51% from 3.46% for the same periods. Average interest-earning assets increased by $38.6 million, or 3.9%, to $1,031.9 million for the three months ended March 31, 2020 from $993.4 million for the three months ended March 31, 2019. The average yield on interest-earning assets increased by 1 basis point to 5.07% from 5.06%, for the same periods. Average interest-bearing liabilities increased by $57.3 million, or 7.7%, to $799.0 million for the three months ended March 31, 2020 from $741.7 million for the three months ended March 31, 2019. The average rate on interest-bearing liabilities decreased by 4 basis points to 1.56% from 1.60% for the same periods.

Noninterest Income

Noninterest income was $622,000 for the three months ended March 31, 2020, down $43,000, or 6.5%, from $665,000 for the three months ended December 31, 2019. The decrease was attributable to decreases of $85,000, or 41.7%, in late and prepayment charges related to mortgage loans and $18,000, or 6.8%, in service charges and fees, offset by increases of $53,000, or 34.9%, in other noninterest income and $7,000, or 16.3%, in brokerage commissions.

Noninterest income was $622,000 for the three months ended March 31, 2020, down $131,000, or 17.4%, from $753,000 for the three months ended March 31, 2019. The decrease was mainly attributable to decreases of $70,000, or 25.5%, in other noninterest income, $59,000, or 54.1%, in brokerage commissions and $20,000, or 14.4%, in late and prepayment charges related to mortgage loans, offset by an increase of $18,000, or 7.8%, in service charges and fees.

Noninterest Expense

Noninterest expense increased $1.3 million, or 13.4%, to $10.8 million for the three months ended March 31, 2020, from $9.5 million, excluding the one-time charge of $9.9 million related to the prior quarter’s termination of the Defined Benefit Plan, for the three months ended December 31, 2019. The increase in noninterest expense was the result of increases in consulting fees of $626,000, professional services of $274,000 related to the document imaging project adopted in late 2019, licensed software of $228,000 associated with the Salesforce partnership, marketing and advertising related to the deposit acquisition strategy adopted in 2019 of $164,000, a 401(k) safe harbor contribution of $161,000, an additional expense of $120,000 related to the termination of the Defined Benefit Plan during the fourth quarter of 2019 and data processing fees of $73,000, offset by decreases in rent expense of $248,000 related to deferred rent and other noninterest expenses of $122,000. The increases in consulting fees of $626,000 were mainly due to increases of $549,000 related to a consulting agreement designed to optimize the Bank’s deposit products lineup and aligning it with its long-term retail relationship strategy, which has resulted in 4,264 new and/or converted deposit accounts totaling $56.2 million and $185,000 as a result of the newly formed partnership with Salesforce that began in January, offset by a decrease of $108,000 in all other consulting expenses.

Noninterest expense increased $1.7 million, or 19.0%, to $10.8 million for the three months ended March 31, 2020 from $9.1 million for the three months ended March 31, 2019. The increase in noninterest expense was the result of increases in consulting fees of $639,000, professional services of $274,000 related to the document imaging project adopted in late 2019, licensed software of $228,000 associated with the Salesforce partnership, marketing and advertising related to the deposit acquisition strategy adopted in 2019 of $164,000, a 401(k) safe harbor contribution of $161,000, professional services of $146,000 related to internal audit, other noninterest expenses of $132,000, an additional expense of $120,000 related to the termination of the Defined Benefit Plan during the fourth quarter of 2019 and data processing fees of $115,000, offset by decreases in rent expense of $248,000 related to deferred rent. The increases in consulting fees of $639,000 were mainly due to increases of $549,000 related to a consulting agreement designed to optimize the Bank’s deposit products lineup and aligning it with its long-term retail relationship strategy, which has resulted in 4,264 new and/or converted deposit accounts totaling $56.2 million and $185,000 as a result of the newly formed partnership with Salesforce that began in January, offset by a decrease of $95,000 in all other consulting expenses.

Asset Quality

Nonperforming assets decreased to $9.7 million, or 0.85% of total assets, at March 31, 2020, from $11.6 million, or 1.10% of total assets, at December 31, 2019 and increased from $8.0 million, or 0.77% of total assets, at March 31, 2019. The increase from March 31, 2019 is mainly attributable to an increase of nonaccruals in nonresidential loans of $2.7 million and 1-4 family residential loans of $645,000, offset by decreases in construction and land loans of $1.3 million, business loans of $275,000, multifamily residential loans of $13,000 and consumer loans of $4,000.

The $1.2 million in provision for loan losses for the quarter ended March 31, 2020, is a direct result of the impact of the COVID-19 pandemic on our borrowers, compared to $95,000 for the quarter ended December 31, 2019 and $149,000 for the quarter ended March 31, 2019. As noted, the Company’s assessment of the economic impact of the COVID-19 pandemic on borrowers indicates that it is likely that it will be a detriment to their ability to repay in the short term and that the likelihood of long-term detrimental effects depends significantly on the resumption of normalized economic activities, a factor not yet determinable. The allowance for loan losses was $13.5 million, or 1.37% of total loans, at March 31, 2020, compared to $12.3 million, or 1.28% of total loans, at December 31, 2019 and $12.4 million, or 1.33% of total loans, at March 31, 2019. Net recoveries totaled $9,000 for the quarter ended March 31, 2020 and $74,000 for the quarter ended December 31, 2019. Net charge-offs totaled $360,000 for the quarter ended March 31, 2019.

As of April 30, 2020, we had modified 296 loans aggregating $291.3 million, primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months. These short-term modifications have been made on a good faith basis in response to the COVID-19 pandemic and had been performing in accordance with their contractual obligations.

Balance Sheet

Total assets increased $97.2 million, or 9.2%, to $1,150.9 million at March 31, 2020 from $1,053.8 million at December 31, 2019. The increase in total assets is mainly attributable to increases in cash and cash equivalents of $76.3 million, net loans receivable of $17.2 million, other assets of $3.5 million and FHLBNY stock of $2.2 million, offset by a decrease in available-for-sale securities of $2.4 million. The increase in cash and cash equivalents of $76.3 million was partially due to an increase of $47.9 million in advances from FHLBNY. The increase in net loans receivable of $17.2 million was primarily due to increases of $9.1 million, or 3.6%, in multifamily residential loans, $4.9 million, or 1.2%, in 1-4 family residential loans, $3.0 million, or 1.5%, in nonresidential properties loans, $893,000, or 0.9%, in construction and land loans, $306,000, or 2.8%, in business loans and $57,000, or 4.6%, in consumer loans, offset by an increase in the allowance for losses on loans of $1.2 million due to the COVID-19 pandemic.

Total deposits increased $47.7 million, or 6.1%, to $829.7 million at March 31, 2020 from $782.0 million at December 31, 2019. The increase in deposits was mainly attributable to increases of $44.9 million, or 15.9%, in total savings, NOW, reciprocal deposits (certificates of deposits and money market) and money market accounts, $1.5 million, or 0.4 %, in total certificates of deposit, which includes brokered certificates of deposit and listing service deposits, and $1.3 million, or 1.1% in demand deposits. The $44.9 million increase in savings, NOW, reciprocal deposits and money market accounts was mainly attributable to increases of $34.9 million, or 40.3%, in money market accounts, $14.7 million, or 30.9%, in reciprocal deposits, offset by decreases of $3.4 million, or 3.0%, in savings accounts and $1.3 million, or 3.9%, in NOW/IOLA accounts. Advances from the FHLBNY increased $47.9 million at March 31, 2020 compared to December 31, 2019.

Total stockholders’ equity was $155.7 million at March 31, 2020, compared to $158.4 million at December 31, 2019. The decrease in stockholders’ equity was mainly attributable to $2.0 million of stock repurchases and a net loss of $1.2 million, offset by increases in additional paid-in capital of $352,000 related to restricted stock units and stock options, $124,000 related to the Company’s Employee Stock Ownership Plan and $91,000 related to unrealized gains on available-for-sale securities.

Steven A. Tsavaris, Executive Chairman, remarked that, “We are extremely proud of the way the Ponce Bank team has responded and come together during these unprecedented times and how supportive and understanding they have been in their commitment to continue to provide the exceptional personal customer service that our customers have been accustomed to. A great part of this success is attributed to the investments that we have made over the last several quarters to enhance all of our delivery channels and our technology platforms across the board."

The Company’s share repurchase program was terminated on March 27, 2020. As of March 27, 2020, the Company had repurchased an aggregate of 1,253,423 shares under its repurchase programs, at a weighted average price per share of $14.18, which were reported as treasury stock. Of the 1,253,423 shares classified as treasury stock, 90,135 shares were reissued to directors and executive officers under the Company’s 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2019. As of March 31, 2020, 1,163,288 shares are reported as treasury stock in the Company’s consolidated statement of financial condition.

About PDL Community Bancorp

PDL Community Bancorp is the financial holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. The Bank’s business primarily consists of taking deposits from the general public and to a lesser extent 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. 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.

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 novel coronavirus 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 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 Statements of Financial Condition

(Dollars in thousands, except for share data)

As of

March 31,

December 31,

2020

2019

ASSETS

Cash and due from banks:

Cash

$

13,165

$

6,762

Interest-bearing deposits in banks

90,795

20,915

Total cash and cash equivalents

103,960

27,677

Available-for-sale securities, at fair value

19,140

21,504

Loans held for sale

1,030

1,030

Loans receivable, net of allowance for losses

972,979

955,737

Accrued interest receivable

4,198

3,982

Premises and equipment, net

32,480

32,746

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

7,889

5,735

Deferred tax assets

4,140

3,724

Other assets

5,127

1,621

Total assets

$

1,150,943

$

1,053,756

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits

$

829,741

$

782,043

Accrued interest payable

86

97

Advance payments by borrowers for taxes and insurance

8,295

6,348

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

152,284

104,404

Other liabilities

4,794

2,462

Total liabilities

995,200

895,354

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; 18,463,028 shares issued and 17,299,740 shares outstanding as of March 31, 2020 and 18,463,028 shares issued and 17,451,134 shares outstanding as of December 31, 2019

185

185

Treasury stock, at cost; 1,163,288 shares as of March 31, 2020 and 1,011,894 shares as of December 31, 2019

(16,490

)

(14,478

)

Additional paid-in-capital

85,132

84,777

Retained earnings

92,475

93,688

Accumulated other comprehensive income (loss)

110

20

Unearned compensation - ESOP; 566,938 shares as of March 31, 2020 and 579,001 shares as of December 31, 2019

(5,669

)

(5,790

)

Total stockholders' equity

155,743

158,402

Total liabilities and stockholders' equity

$

1,150,943

$

1,053,756

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share data)

For the Quarters Ended

March 31,

2020

2019

Interest and dividend income:

Interest on loans receivable

$

12,782

$

12,095

Interest on deposits due from banks

66

149

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

182

138

Total interest and dividend income

13,030

12,382

Interest expense:

Interest on certificates of deposit

1,827

1,956

Interest on other deposits

692

631

Interest on borrowings

587

333

Total interest expense

3,106

2,920

Net interest income

9,924

9,462

Provision for loan losses

1,146

149

Net interest income after provision for loan losses

8,778

9,313

Noninterest income:

Service charges and fees

248

230

Brokerage commissions

50

109

Late and prepayment charges

119

139

Other

205

275

Total noninterest income

622

753

Noninterest expense:

Compensation and benefits

5,008

5,014

Occupancy and equipment

2,017

1,911

Data processing expenses

467

353

Direct loan expenses

212

156

Insurance and surety bond premiums

121

83

Office supplies, telephone and postage

316

317

Professional fees

1,627

510

Marketing and promotional expenses

234

26

Directors fees

69

83

Regulatory dues

46

56

Other operating expenses

705

582

Total noninterest expense

10,822

9,091

Income (loss) before income taxes

(1,422

)

975

Provision (benefit) for income taxes

(209

)

307

Net income (loss)

$

(1,213

)

$

668

Earnings (loss) per share:

Basic

$

(0.07

)

$

0.04

Diluted

$

(0.07

)

$

0.04

PDL Community Bancorp and Subsidiaries

Key Metrics

At or for the Quarters Ended

March 31,

2020

2019

Performance Ratios:

Return on average assets

(0.46

%)

0.26

%

Return on average equity

(3.07

%)

1.59

%

Net interest rate spread (1)

3.51

%

3.46

%

Net interest margin (2)

3.87

%

3.86

%

Noninterest expense to average assets

4.07

%

3.59

%

Efficiency ratio (3)

102.62

%

89.00

%

Average interest-earning assets to average interest-bearing liabilities

129.16

%

133.93

%

Average equity to average assets

14.85

%

16.58

%

Capital Ratios:

Total capital to risk weighted assets (bank only)

17.84

%

19.32

%

Tier 1 capital to risk weighted assets (bank only)

16.59

%

18.06

%

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

16.59

%

18.06

%

Tier 1 capital to average assets (bank only)

12.76

%

13.56

%

Asset Quality Ratios:

Allowance for loan losses as a percentage of total loans

1.37

%

1.33

%

Allowance for loan losses as a percentage of nonperforming loans

138.47

%

155.87

%

Net (charge-offs) recoveries to average outstanding loans

0.00

%

(0.16

%)

Non-performing loans as a percentage of total loans

1.00

%

0.86

%

Non-performing loans as a percentage of total assets

0.85

%

0.77

%

Total non-performing assets as a percentage of total assets

0.85

%

0.77

%

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

1.49

%

1.74

%

Other:

Number of offices

14

14

Number of full-time equivalent employees

184

185

(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

As of

March 31,

December 31,

2020

2019

Amount

Percent

Amount

Percent

(Dollars in thousands)

Mortgage loans:

1-4 family residential

Investor Owned

$

308,206

31.31

%

$

305,272

31.60

%

Owner-Occupied

93,887

9.54

%

91,943

9.52

%

Multifamily residential

259,326

26.35

%

250,239

25.90

%

Nonresidential properties

210,225

21.36

%

207,225

21.45

%

Construction and land

100,202

10.18

%

99,309

10.28

%

Total mortgage loans

971,846

98.74

%

953,988

98.75

%

Nonmortgage loans:

Business loans

11,183

1.13

%

10,877

1.12

%

Consumer loans

1,288

0.13

%

1,231

0.13

%

Total nonmortgage loans

12,471

1.26

%

12,108

1.25

%

Total loans, gross

984,317

100.00

%

966,096

100.00

%

Net deferred loan origination costs

2,146

1,970

Allowance for losses on loans

(13,484

)

(12,329

)

Loans, net

$

972,979

$

955,737

PDL Community Bancorp and Subsidiaries

Deposits

As of

March 31,

December 31,

2020

2019

Amount

Percent

Amount

Percent

(Dollars in thousands)

Demand

$

110,801

13.35

%

$

109,548

14.01

%

Interest-bearing deposits:

NOW/IOLA accounts

31,586

3.81

%

32,866

4.20

%

Money market accounts

121,629

14.66

%

86,721

11.09

%

Reciprocal deposits

62,384

7.52

%

47,659

6.09

%

Savings accounts

112,318

13.53

%

115,751

14.80

%

Total savings, NOW, reciprocal, and money market

327,917

39.52

%

282,997

36.18

%

Certificates of deposit of $250K or more

81,486

9.82

%

84,263

10.77

%

Brokered certificates of deposit

51,661

6.23

%

76,797

9.82

%

Listing service deposits

55,842

6.73

%

32,400

4.14

%

Certificates of deposit less than $250K

202,034

24.35

%

196,038

25.08

%

Total certificates of deposit

391,023

47.13

%

389,498

49.81

%

Total interest-bearing deposits

718,940

86.65

%

672,495

85.99

%

Total deposits

$

829,741

100.00

%

$

782,043

100.00

%

PDL Community Bancorp and Subsidiaries

Nonperforming Assets

For the Quarters Ended

March 31,

December 31,

2020

2019

(Dollars in thousands)

Nonaccrual loans:

Mortgage loans:

1-4 family residential

Investor owned

$

2,327

$

2,312

Owner occupied

1,069

1,009

Multifamily residential

—

—

Nonresidential properties

3,228

3,555

Construction and land

—

1,118

Nonmortgage loans:

Business

—

—

Consumer

—

—

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

$

6,624

$

7,994

Non-accruing troubled debt restructured loans:

Mortgage loans:

1-4 family residential

Investor owned

$

276

$

467

Owner occupied

2,185

2,491

Multifamily residential

—

—

Nonresidential properties

653

646

Construction and land

—

—

Nonmortgage loans:

Business

—

—

Consumer

—

—

Total non-accruing troubled debt restructured loans

3,114

3,604

Total nonaccrual loans

$

9,738

$

11,598

Total nonperforming assets

$

9,738

$

11,598

Accruing troubled debt restructured loans:

Mortgage loans:

1-4 family residential

Investor owned

$

3,730

$

5,191

Owner occupied

2,359

2,090

Multifamily residential

—

—

Nonresidential properties

1,300

1,306

Construction and land

—

—

Nonmortgage loans:

Business

—

14

Consumer

—

—

Total accruing troubled debt restructured loans

$

7,389

$

8,601

Total nonperforming assets and accruing troubled debt restructured loans

$

17,127

$

20,199

Total nonperforming loans to total net loans

1.00

%

1.21

%

Total nonperforming assets to total assets

0.85

%

1.10

%

Total nonperforming assets and accruing troubled debt restructured loans to total assets

1.49

%

1.92

%

PDL Community Bancorp and Subsidiaries

Average Balance Sheets

For the Three Months Ended March 31,

2020

2019

Average

Average

Outstanding

Average

Outstanding

Average

Balance

Interest

Yield/Rate (1)

Balance

Interest

Yield/Rate (1)

(Dollars in thousands)

Interest-earning assets:

Loans (2)

$

975,499

$

12,782

5.27

%

$

935,877

$

12,095

5.24

%

Available-for-sale securities

18,218

83

1.83

%

23,790

86

1.47

%

Other (3)

38,220

165

1.73

%

33,714

201

2.42

%

Total interest-earning assets

1,031,937

13,030

5.07

%

993,381

12,382

5.06

%

Non-interest-earning assets

37,467

34,441

Total assets

$

1,069,404

$

1,027,822

Interest-bearing liabilities:

NOW/IOLA

$

29,026

$

38

0.53

%

$

28,407

$

26

0.37

%

Money market

160,471

618

1.54

%

113,354

564

2.01

%

Savings

113,710

35

0.12

%

122,559

40

0.13

%

Certificates of deposit

379,154

1,827

1.93

%

419,108

1,956

1.89

%

Total deposits

682,361

2,518

1.48

%

683,428

2,586

1.53

%

Advance payments by borrowers

7,980

1

0.05

%

7,709

1

0.05

%

Borrowings

108,640

587

2.17

%

50,570

333

2.67

%

Total interest-bearing liabilities

798,981

3,106

1.56

%

741,707

2,920

1.60

%

Non-interest-bearing liabilities:

Non-interest-bearing demand

108,646

—

110,644

—

Other non-interest-bearing liabilities

2,968

—

5,056

—

Total non-interest-bearing liabilities

111,614

—

115,700

—

Total liabilities

910,595

3,106

857,407

2,920

Total equity

158,809

170,415

Total liabilities and total equity

$

1,069,404

1.56

%

$

1,027,822

1.60

%

Net interest income

$

9,924

$

9,462

Net interest rate spread (4)

3.51

%

3.46

%

Net interest-earning assets (5)

$

232,956

$

251,674

Net interest margin (6)

3.87

%

3.86

%

Average interest-earning assets to interest-bearing liabilities

129.16

%

133.93

%

(1) Annualized where appropriate.

(2) Loans include loans and loans held for sale.

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

(4) 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.

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

(6) 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