YORK, July 31, 2020 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported a net loss of ($571,000), or ($0.03) per basic and diluted share, for the second quarter of 2020, compared to a net loss of ($1.2 million), or ($0.07) per basic and diluted share, for the prior quarter and net income of $950,000, or $0.05 per basic and diluted share, for the second quarter of 2019.
Carlos P. Naudon, the Company’s President and CEO, noted “2020 continues to be a year of investing – in the safety of our people and the future of our organization and our communities – with the clear goal of enhancing stakeholder values. Although the COVID-19 pandemic slowed our business, we continued our implementation of GPS, our Salesforce based CRM; we attended to the needs of Ponce Bankers by maintaining their jobs and temporarily enhancing their benefits; we responded to the needs of our communities by handling over 1,000 applications for Paycheck Protection Program (“PPP”) loans from customers and non-customers alike, allowing loan forbearances upon requests and ensuring that we publicly stood by our commitment to fairness and justice for all; we enhanced our asset quality by significantly increasing reserves; and, we increased our shareholders’ value by resuming repurchases of our shares. Although these steps resulted in a loss per share of ($0.11) for the six months ended June 30, 2020, we remain confident that our investments in the first half of the year, coupled with the closing of the Mortgage World Bankers, Inc. transaction in July as well as other initiatives, will continue to build stakeholder value.”
Steven A. Tsavaris, the Company’s Executive Chairman, added “It is gratifying that our commitment to our communities was recognized by the National Community Investment Fund in their Banking Industry Peer Group report for the first quarter of 2020. Ponce Bank was ranked 11th nationally in total assets and 7th in total loans among the 140 banks that also are CDFIs. Among the 20 largest, we were ranked 1st in our housing focus, 2nd in our lending in LMI areas and 6th in the proportion of branches in LMI areas. This data is not an anomaly; we are consistently a top performer in their Social Performance Metrics.”
Net Income (Loss)
The $571,000 net loss for the three months ended June 30, 2020 is $642,000 less than the $1.2 million net loss for the three months ended March 31, 2020 and is primarily the result of an $875,000, or 76.4%, decrease in provision for loan losses, a $387,000, or 3.6%, decrease in noninterest expense and a $234,000, or 7.5%, decrease in interest expense, offset by a $637,000, or 4.9%, decrease in interest and dividend income, a $169,000, or 80.9%, decrease in benefit for income taxes and a $48,000, or 7.7%, decrease in noninterest income.
The $571,000 net loss for the quarter ended June 30, 2020 compared to $950,000 in net income for the second quarter of 2019 reflects a $1.7 million, or 19.8%, increase in noninterest expense, a $271,000 increase in provision for loan losses, a $112,000, or 16.3%, decrease in noninterest income and a $21,000, or 0.2%, decrease in interest and dividend income, offset by a $413,000, or 110.7%, decrease in provision for income taxes and a $198,000, or 6.4%, decrease in interest expense.
The $1.8 million net loss for the six months ended June 30, 2020 compared to $1.6 million in net income for the six months ended June 30, 2019 reflects a $3.5 million, or 19.4%, increase in noninterest expense, a $1.3 million increase in provision for loan losses and a $243,000, or 16.9%, decrease in noninterest income, offset by a $929,000, or 136.6%, decrease in provision for income taxes, a $627,000, or 2.5%, increase in interest and dividend income and a $12,000, or 0.2%, decrease in interest expense.
Net Interest Margin
Net interest margin decreased by 42 basis points to 3.45% for the three months ended June 30, 2020 from 3.87% for the three months ended March 31, 2020, while the net interest rate spread decreased by 38 basis points to 3.13% from 3.51% for the same periods. Average interest-earning assets increased by $77.7 million, or 7.5%, mainly as a result of $30.3 million in average outstanding Payment Protection Program (“PPP”) loans, to $1,109.7 million for the three months ended June 30, 2020 from $1,031.9 million for the three months ended March 31, 2020. The average yield on interest-earning assets decreased by 58 basis points to 4.49% from 5.07%, for the same periods. Average interest-bearing liabilities increased by $49.9 million, or 6.2%, mainly as a result of $48.9 million in average net PPP funding, to $848.9 million for the three months ended June 30, 2020 from $799.0 million for the three months ended March 31, 2020. The weighted average rate on interest-bearing liabilities decreased by 20 basis points to 1.36% from 1.56% for the same periods.
Net interest margin decreased by 30 basis points to 3.45% for the three months ended June 30, 2020 from 3.75% for the three months ended June 30, 2019, while the net interest rate spread decreased by 21 basis points to 3.13% from 3.34% for the same periods. Average interest-earning assets increased by $110.2 million, or 11.0%, mainly as a result of $30.3 million in average outstanding PPP loans, to $1,109.7 million, for the three months ended June 30, 2020 from $999.4 million for the three months ended June 30, 2019. The average yield on interest-earning assets decreased by 49 basis points to 4.49% from 4.98%, for the same periods. Average interest-bearing liabilities increased by $98.5 million, or 13.1%, mainly as a result of $48.9 million in average net PPP funding, to $848.9 million, for the three months ended June 30, 2020 from $750.3 million for the three months ended June 30, 2019. The average rate on interest-bearing liabilities decreased by 28 basis points to 1.36% from 1.64% for the same periods.
Noninterest Income
Noninterest income was $574,000 for the three months ended June 30, 2020, down $48,000, or 7.7%, from $622,000 for the three months ended March 31, 2020. The decrease was attributable to decreases of $106,000, or 89.1%, in late and prepayment charges related to mortgage loans, $103,000, or 41.5%, in service charges and fees and $28,000, or 56.0%, in brokerage commissions, offset by an increase of $189,000, or 92.2%, in other noninterest income, of which $163,000 were fees related to PPP loans.
Noninterest income was $574,000 for the three months ended June 30, 2020, down $112,000, or 16.3%, from $686,000 for the three months ended June 30, 2019. The decrease was mainly attributable to decreases of $249,000, or 95.0%, in late and prepayment charges related to mortgage loans, $83,000, or 36.4%, in service charges and fees and $2,000, or 8.3%, in brokerage commissions, offset by an increase of $222,000, or 129.1%, in other noninterest income, of which $163,000 were fees related to PPP loans.
Noninterest Expense
Total noninterest expense decreased $387,000, or 3.6%, to $10.4 million for the three months ended June 30, 2020 compared to $10.8 million for the three months ended March 31, 2020. Compensation and benefits decreased $363,000, which primarily includes $256,000 of deferred compensation expenses related to PPP loan originations. Other decreases in noninterest expense at June 30, 2020 from March 31, 2020 are $291,000 of professional services, $89,000 of marketing and promotional expenses and $13,000 in direct loan expenses. The decrease in noninterest expense was offset by increases of $260,000 in occupancy and equipment, $67,000 in other noninterest expenses, $29,000 in data processing expenses, $10,000 in regulatory dues and $7,000 in insurance and surety bond premiums. Included in noninterest expense for the three months ended June 30, 2020 is $475,000 of additional expenses incurred as a result of the COVID-19 pandemic.
Total noninterest expense increased $1.7 million, or 19.8%, to $10.4 million for the three months ended June 30, 2020, compared to $8.7 million for the three months ended June 30, 2019. The increase in noninterest expense was attributable to increases of $603,000 in professional fees, $545,000 in occupancy and equipment expense mainly due to investments in software licenses, $169,000 in compensation and benefits, $140,000 in other operating expenses mainly due to employment agency fees, $98,000 in marketing and promotional expenses, $65,000 in data processing expenses as a result of system enhancements and implementation charges related to software upgrades, $45,000 in insurance and surety bond premiums, $41,000 in office supplies, telephone and postage and $17,000 in direct loan expenses. The increase of $603,000 in professional fees is mainly attributable to increases in consulting fees of $250,000 and professional services of $344,000 related to the document imaging project adopted in late 2019.
Asset Quality
Total nonperforming assets were $11.6 million, or 0.95% of total assets, at June 30, 2020, an increase of $1.9 million from $9.7 million, or 0.85% of total assets, at March 31, 2020 and remain comparable with total nonperforming assets of $11.6 million, or 1.10% of total assets, at December 31, 2019. Comparing nonperforming assets at June 30, 2020 to March 31, 2020, total nonaccruals inclusive of TDRs related to nonresidential loans increased by $1.1 million and 1-4 family residential loans increased by $707,000. Comparing nonperforming assets at June 30, 2020 to December 31, 2019, total nonaccruals inclusive of TDRs related to construction and land loans decreased by $1.1 million, nonresidential loans increased by $810,000 and 1-4 family residential loans increased by $285,000.
The Company continues to assess the economic impact of the COVID-19 pandemic on borrowers and believes 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 will depend significantly on the resumption of normalized economic activities, a factor not yet determinable. The allowance for loan losses was $13.8 million, or 1.27% of total loans (total loans include $83.6 million of PPP loans) at June 30, 2020, compared to $12.3 million, or 1.28% of total loans, at December 31, 2019 and $12.5 million, or 1.32% of total loans, at June 30, 2019. Excluding PPP loans, the allowance for loan losses is 1.38% of total loans. Net recoveries totaled $6,000 for the quarter ended June 30, 2020, $9,000 for the quarter ended March 31, 2020 and $11,000 for the quarter ended June 30, 2019.
As of July 21, 2020, there were 421 loans aggregating $384.0 million, in forbearance primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months. Of the 421 loans in forbearance, 329 loans aggregating $297.4 million have not requested, and 92 loans in the amount of $86.6 million have requested, up-to-an-additional three-month forbearance extension at the conclusion of their initial three-month forbearance period. 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. Under the current economic conditions and based upon available data, the Company is unable to conclusively determine the repayment capacity, if any, of most of such borrowers. 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.
Balance Sheet
Total assets increased $166.5 million, or 15.8%, to $1,220.2 million at June 30, 2020 from $1,053.8 million at December 31, 2019. The increase in total assets is mainly attributable to increases in net loans receivable of $116.7 million, mainly due to $83.6 million in PPP loans, cash and cash equivalents of $49.0 million, other assets of $4.2 million, accrued interest receivable of $3.7 million, FHLBNY stock of $687,000 and deferred taxes of $604,000, offset by decreases in available-for-sale securities of $7.7 million and premises and equipment, net of $644,000.
Cash and cash equivalents at June 30, 2020 increased $49.0 million from December 31, 2019 due to increases of $154.2 million in net deposits, of which $65.1 million related to net PPP funding, $16.4 million from sales and maturities of available-for-sale securities and $12.9 million increase in net advances from FHLBNY, offset by increases of $116.7 million in net loans and $9.1 million purchases of available-for-sale securities.
Net loans receivable at June 30, 2020 increased $116.7 million from December 31, 2019 primarily due to increases of $82.5 million, or 758.6%, in business loans, mainly due to $83.6 million in PPP loans, $24.4 million, or 9.8%, in multifamily residential loans, $11.2 million, or 2.8%, in 1-4 family residential loans, $1.8 million, or 0.9%, in nonresidential properties loans, $347,000, or 28.2%, in consumer loans and $286,000, or 14.5%, in net deferred loan origination costs, offset by a decrease of $2.5 million, or 2.5%, in construction and land loans and an increase in the allowance for losses on loans of $1.4 million substantially related to the COVID-19 pandemic.
Total deposits increased $154.2 million, or 19.7%, to $936.2 million at June 30, 2020 from $782.0 million at December 31, 2019. The increase in deposits was mainly attributable to increases of $85.3 million, or 30.1%, in NOW, money market, reciprocal deposits and savings accounts, $82.9 million, or 75.7%, in demand deposits, of which $65.1 million related to net PPP funding, offset by a decrease of $14.0 million, or 3.6 %, in total certificates of deposit, which includes brokered certificates of deposit and listing service deposits. The $85.3 million increase in NOW, money market, reciprocal deposits and savings accounts was mainly attributable to increases of $49.3 million, or 103.4%, in reciprocal deposits, $38.9 million, or 44.9%, in money market accounts, $3.5 million, or 3.1%, in savings accounts offset by a decrease of $6.4 million, or 19.4%, in NOW/IOLA accounts.
Net advances from the FHLBNY increased $12.9 million, or 12.3%, to $117.3 million at June 30, 2020 from $104.4 million at December 31, 2019. The net increase in advances was due to a new FHLBNY advance of $12.9 million, at a weighted average rate of 0.9%.
Total stockholders’ equity decreased $3.4 million, or 2.1%, to $155.0 million at June 30, 2020, from $158.4 million at December 31, 2019. The decrease in stockholders’ equity was mainly attributable to $2.7 million of stock repurchases and a net loss of $1.8 million, offset by increases of $698,000 related to restricted stock units and stock options, $247,000 related to the Company’s Employee Stock Ownership Plan and $130,000 related to unrealized gains on available-for-sale securities.
The Company adopted a share repurchase program effective March 25, 2019 which expired on September 24, 2019. Under the repurchase program, the Company was permitted to repurchase up to 923,151 shares of the Company’s stock, or approximately 5% of the Company’s then current issued and outstanding shares. On November 13, 2019, the Company adopted a second share repurchase program. Under this second program, the Company was permitted to repurchase up to 878,835 shares of the Company’s stock, or approximately 5% of the Company’s then current issued and outstanding shares. The Company’s share repurchase program was terminated on March 27, 2020. On June 1, 2020, the Company adopted a third share repurchase program. Under this third program, the Company is permitted to repurchase up to 864,987 shares of the Company’s stock, or approximately 5% of the Company’s then current issued and outstanding shares. The repurchase program may be suspended or terminated at any time without prior notice, and it will expire no later than November 30, 2020.
As of June 30, 2020, the Company had repurchased a total of 1,318,872 shares under the repurchase programs at a weighted average price of $13.99 per share, which were reported as treasury stock. Of the 1,318,872 shares of treasury stock, 90,135 shares have been granted 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 June 30, 2020, 1,228,737 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 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.
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.
Contact:
Frank Perez
frank.perez@poncebank.net
718-931-9000
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,
2020
2020
2019
2019
2019
ASSETS
Cash and due from banks:
Cash
$
15,875
$
13,165
$
6,762
$
6,425
$
6,003
Interest-bearing deposits in banks
60,756
90,795
20,915
40,965
47,007
Total cash and cash equivalents
76,631
103,960
27,677
47,390
53,010
Available-for-sale securities, at fair value
13,800
19,140
21,504
51,966
22,154
Loans held for sale
1,030
1,030
1,030
—
—
Loans receivable, net of allowance for losses
1,072,417
972,979
955,737
948,548
934,236
Accrued interest receivable
7,677
4,198
3,982
3,893
3,773
Premises and equipment, net
32,102
32,480
32,746
32,805
32,205
Other real estate owned
—
—
—
—
58
Federal Home Loan Bank of New York stock (FHLBNY), at cost
6,422
7,889
5,735
8,659
4,609
Deferred tax assets
4,328
4,140
3,724
3,925
3,913
Other assets
5,824
5,127
1,621
2,802
2,158
Total assets
$
1,220,231
$
1,150,943
$
1,053,756
$
1,099,988
$
1,056,116
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
$
936,219
$
829,741
$
782,043
$
757,845
$
802,408
Accrued interest payable
48
86
97
81
88
Advance payments by borrowers for taxes and insurance
6,007
8,295
6,348
7,780
6,059
Advances from the Federal Home Loan Bank of New York and others
117,284
152,284
104,404
169,404
79,404
Other liabilities
5,674
4,794
2,462
4,324
2,954
Total liabilities
1,065,232
995,200
895,354
939,434
890,913
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
(17,172
)
(16,490
)
(14,478
)
(12,663
)
(6,798
)
Additional paid-in-capital
85,481
85,132
84,777
85,750
85,357
Retained earnings
91,904
92,475
93,688
101,140
100,431
Accumulated other comprehensive income (loss)
150
110
20
(7,947
)
(7,941
)
Unearned compensation - ESOP
(5,549
)
(5,669
)
(5,790
)
(5,911
)
(6,031
)
Total stockholders' equity
154,999
155,743
158,402
160,554
165,203
Total liabilities and stockholders' equity
$
1,220,231
$
1,150,943
$
1,053,756
$
1,099,988
$
1,056,116
PDL Community Bancorp and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share data)
For the Quarters Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2020
2020
2019
2019
2019
Interest and dividend income:
Interest on loans receivable
$
12,162
$
12,782
$
12,488
$
12,663
$
12,060
Interest on deposits due from banks
3
66
73
117
278
Interest and dividend on available-for-sale securities and FHLBNY stock
228
182
181
173
76
Total interest and dividend income
12,393
13,030
12,742
12,953
12,414
Interest expense:
Interest on certificates of deposit
1,730
1,827
1,921
1,896
1,904
Interest on other deposits
534
692
616
759
821
Interest on borrowings
608
587
643
533
345
Total interest expense
2,872
3,106
3,180
3,188
3,070
Net interest income
9,521
9,924
9,562
9,765
9,344
Provision for loan losses
271
1,146
95
14
—
Net interest income after provision for loan losses
9,250
8,778
9,467
9,751
9,344
Noninterest income:
Service charges and fees
145
248
266
247
228
Brokerage commissions
22
50
43
36
24
Late and prepayment charges
13
119
204
150
262
Other
394
205
152
146
172
Total noninterest income
574
622
665
579
686
Noninterest expense:
Compensation and benefits
4,645
5,008
4,726
4,667
4,476
Loss on termination of pension plan
—
—
9,930
—
—
Occupancy and equipment
2,277
2,017
2,026
1,943
1,732
Data processing expenses
496
467
394
398
431
Direct loan expenses
199
212
171
183
182
Insurance and surety bond premiums
128
121
102
146
83
Office supplies, telephone and postage
312
316
316
281
271
Professional fees
1,336
1,627
1,038
956
733
Marketing and promotional expenses
145
234
39
46
47
Directors fees
69
69
69
69
73
Regulatory dues
56
46
58
70
47
Other operating expenses
772
705
606
575
632
Total noninterest expense
10,435
10,822
19,475
9,334
8,707
Income (loss) before income taxes
(611
)
(1,422
)
(9,343
)
996
1,323
Provision (benefit) for income taxes
(40
)
(209
)
(1,891
)
287
373
Net income (loss)
$
(571
)
$
(1,213
)
$
(7,452
)
$
709
$
950
Earnings (loss) per share:
Basic
$
(0.03
)
$
(0.07
)
$
(0.43
)
$
0.04
$
0.05
Diluted
$
(0.03
)
$
(0.07
)
$
(0.43
)
$
0.04
$
0.05
PDL Community Bancorp and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share data)
For the Six Months Ended June 30,
2020
2019
Variance $
Variance %
Interest and dividend income:
Interest on loans receivable
$
24,944
$
24,155
$
789
3.27
%
Interest on deposits due from banks
69
478
(409
)
(85.56
%)
Interest and dividend on available-for-sale securities and FHLBNY stock
410
163
247
151.53
%
Total interest and dividend income
25,423
24,796
627
2.53
%
Interest expense:
Interest on certificates of deposit
3,557
3,860
(303
)
(7.85
%)
Interest on other deposits
1,226
1,452
(226
)
(15.56
%)
Interest on borrowings
1,195
678
517
76.25
%
Total interest expense
5,978
5,990
(12
)
(0.20
%)
Net interest income
19,445
18,806
639
3.40
%
Provision for loan losses
1,417
149
1,268
851.01
%
Net interest income after provision for loan losses
18,028
18,657
(629
)
(3.37
%)
Noninterest income:
Service charges and fees
393
458
(65
)
(14.19
%)
Brokerage commissions
72
133
(61
)
(45.86
%)
Late and prepayment charges
132
401
(269
)
(67.08
%)
Other
599
447
152
34.00
%
Total noninterest income
1,196
1,439
(243
)
(16.89
%)
Noninterest expense:
Compensation and benefits
9,653
9,490
163
1.72
%
Occupancy and equipment
4,294
3,643
651
17.87
%
Data processing expenses
963
784
179
22.83
%
Direct loan expenses
411
338
73
21.60
%
Insurance and surety bond premiums
249
166
83
50.00
%
Office supplies, telephone and postage
628
588
40
6.80
%
Professional fees
2,963
1,243
1,720
138.37
%
Marketing and promotional expenses
379
73
306
419.18
%
Directors fees
138
156
(18
)
(11.54
%)
Regulatory dues
102
103
(1
)
(0.97
%)
Other operating expenses
1,477
1,214
263
21.66
%
Total noninterest expense
21,257
17,798
3,459
19.43
%
Income (loss) before income taxes
(2,033
)
2,298
(4,331
)
(188.47
%)
Provision (benefit) for income taxes
(249
)
680
(929
)
(136.62
%)
Net income (loss)
$
(1,784
)
$
1,618
$
(3,402
)
(210.26
%)
Earnings (loss) per share:
Basic
$
(0.11
)
$
0.09
N/A
N/A
Diluted
$
(0.11
)
$
0.09
N/A
N/A
PDL Community Bancorp and Subsidiaries
Key Metrics
At or for the Quarters Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2020
2020
2019
2019
2019
Performance Ratios:
Return on average assets
(0.20
%)
(0.46
%)
(2.79
%)
0.27
%
0.37
%
Return on average equity
(1.47
%)
(3.07
%)
(18.24
%)
1.71
%
2.26
%
Net interest rate spread (1)
3.13
%
3.51
%
3.34
%
3.44
%
3.34
%
Net interest margin (2)
3.45
%
3.87
%
3.71
%
3.83
%
3.75
%
Noninterest expense to average assets
3.57
%
4.07
%
7.30
%
3.54
%
3.38
%
Efficiency ratio (3)
103.37
%
102.62
%
190.43
%
90.24
%
86.81
%
Average interest-earning assets to average interest- bearing liabilities
130.72
%
129.16
%
130.64
%
131.38
%
133.20
%
Average equity to average assets
13.30
%
14.85
%
15.32
%
15.71
%
16.27
%
Capital Ratios:
Total capital to risk weighted assets (bank only)
17.52
%
17.84
%
18.62
%
19.29
%
19.54
%
Tier 1 capital to risk weighted assets (bank only)
16.26
%
16.59
%
17.36
%
18.03
%
18.29
%
Common equity Tier 1 capital to risk-weighted assets (bank only)
16.26
%
16.59
%
17.36
%
18.03
%
18.29
%
Tier 1 capital to average assets (bank only)
11.63
%
12.76
%
12.92
%
13.62
%
13.64
%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans
1.27
%
1.37
%
1.28
%
1.27
%
1.32
%
Allowance for loan losses as a percentage of nonperforming loans
118.89
%
138.47
%
106.30
%
117.72
%
123.50
%
Net (charge-offs) recoveries to average outstanding loans
0.01
%
0.00
%
0.03
%
(0.15
%)
0.00
%
Non-performing loans as a percentage of total loans
1.08
%
1.00
%
1.20
%
1.09
%
1.08
%
Non-performing loans as a percentage of total assets
0.95
%
0.85
%
1.10
%
0.94
%
0.96
%
Total non-performing assets as a percentage of total assets
0.95
%
0.85
%
1.10
%
0.94
%
0.96
%
Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets
1.51
%
1.49
%
1.92
%
1.73
%
1.82
%
Other:
Number of offices
14
14
14
14
14
Number of full-time equivalent employees
179
184
183
187
183
____________
(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
June 30,
March 31,
December 31,
September 30,
June 30,
2020
2020
2019
2019
2019
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned
$
317,055
29.25
%
$
308,206
31.31
%
$
305,272
31.60
%
$
309,065
32.23
%
$
302,428
32.00
%
Owner-Occupied
91,345
8.43
%
93,887
9.54
%
91,943
9.52
%
90,843
9.47
%
92,904
9.83
%
Multifamily residential
274,641
25.34
%
259,326
26.35
%
250,239
25.90
%
244,644
25.51
%
238,974
25.28
%
Nonresidential properties
209,068
19.29
%
210,225
21.36
%
207,225
21.45
%
195,952
20.43
%
197,367
20.88
%
Construction and land
96,841
8.93
%
100,202
10.18
%
99,309
10.28
%
106,124
11.07
%
100,995
10.69
%
Total mortgage loans
988,950
91.24
%
971,846
98.74
%
953,988
98.75
%
946,628
98.72
%
932,668
98.68
%
Nonmortgage loans:
Business loans (1)
93,394
8.62
%
11,183
1.13
%
10,877
1.12
%
11,040
1.15
%
11,373
1.20
%
Consumer loans
1,578
0.14
%
1,288
0.13
%
1,231
0.13
%
1,252
0.13
%
1,151
0.12
%
Total nonmortgage loans
94,972
8.76
%
12,471
1.26
%
12,108
1.25
%
12,292
1.28
%
12,524
1.32
%
Total loans, gross
1,083,922
100.00
%
984,317
100.00
%
966,096
100.00
%
958,920
100.00
%
945,192
100.00
%
Net deferred loan origination costs
2,256
2,146
1,970
1,788
1,562
Allowance for losses on loans
(13,761
)
(13,484
)
(12,329
)
(12,160
)
(12,518
)
Loans, net
$
1,072,417
$
972,979
$
955,737
$
948,548
$
934,236
(1) As of June 30, 2020, business loans include $83.6 million of PPP loans.
PDL Community Bancorp and Subsidiaries
Deposits
As of
June 30,
March 31,
December 31,
September 30,
June 30,
2020
2020
2019
2019
2019
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Demand (1)
$
192,429
20.55
%
$
110,801
13.35
%
$
109,548
14.01
%
$
104,181
13.75
%
$
115,262
14.36
%
Interest-bearing deposits:
NOW/IOLA accounts
26,477
2.83
%
31,586
3.81
%
32,866
4.20
%
28,600
3.77
%
23,018
2.87
%
Money market accounts
125,631
13.42
%
121,629
14.66
%
86,721
11.09
%
98,707
13.02
%
105,632
13.16
%
Reciprocal deposits
96,915
10.35
%
62,384
7.52
%
47,659
6.09
%
42,292
5.58
%
52,686
6.57
%
Savings accounts
119,277
12.74
%
112,318
13.53
%
115,751
14.80
%
115,402
15.23
%
126,746
15.80
%
Total NOW, money market, reciprocal and savings accounts
368,300
39.34
%
327,917
39.52
%
282,997
36.18
%
285,001
37.60
%
308,082
38.40
%
Certificates of deposit of $250K or more
81,786
8.74
%
81,486
9.82
%
84,263
10.77
%
86,498
11.41
%
82,767
10.31
%
Brokered certificates of deposit
55,878
5.97
%
51,661
6.23
%
76,797
9.82
%
58,570
7.73
%
58,570
7.30
%
Listing service deposits
54,370
5.81
%
55,842
6.73
%
32,400
4.14
%
22,458
2.96
%
28,688
3.58
%
Certificates of deposit less than $250K
183,456
19.59
%
202,034
24.35
%
196,038
25.08
%
201,137
26.55
%
209,039
26.05
%
Total certificates of deposit
375,490
40.11
%
391,023
47.13
%
389,498
49.81
%
368,663
48.65
%
379,064
47.24
%
Total interest-bearing deposits
743,790
79.45
%
718,940
86.65
%
672,495
85.99
%
653,664
86.25
%
687,146
85.64
%
Total deposits
$
936,219
100.00
%
$
829,741
100.00
%
$
782,043
100.00
%
$
757,845
100.00
%
$
802,408
100.00
%
(1) As of June 30, 2020, included in demand deposits are $65.1 million related to net PPP funding.
PDL Community Bancorp and Subsidiaries
Nonperforming Assets
For the Quarters Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2020
2020
2019
2019
2019
(Dollars in thousands)
Nonaccrual loans:
Mortgage loans:
1-4 family residential
Investor owned
$
2,767
$
2,327
$
2,312
$
1,281
$
1,299
Owner occupied
1,327
1,069
1,009
1,052
479
Multifamily residential
—
—
—
7
Nonresidential properties
4,355
3,228
3,555
3,099
3,288
Construction and land
—
—
1,118
1,292
1,327
Nonmortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
2
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)
$
8,449
$
6,624
$
7,994
$
6,724
$
6,402
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned
$
272
$
276
$
467
$
471
$
493
Owner occupied
2,198
2,185
2,491
2,488
2,499
Multifamily residential
—
—
—
—
—
Nonresidential properties
656
653
646
647
742
Construction and land
—
—
—
—
—
Nonmortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
—
Total non-accruing troubled debt restructured loans
3,126
3,114
3,604
3,606
3,734
Total nonaccrual loans
$
11,575
$
9,738
$
11,598
$
10,330
$
10,136
Total nonperforming assets
$
11,575
$
9,738
$
11,598
$
10,330
$
10,136
Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned
$
3,730
$
3,730
$
5,191
$
5,226
$
5,267
Owner occupied
2,348
2,359
2,090
2,114
2,493
Multifamily residential
—
—
—
—
—
Nonresidential properties
762
1,300
1,306
1,317
1,330
Construction and land
—
—
—
—
—
Nonmortgage loans:
Business
—
—
14
35
37
Consumer
—
—
—
—
—
Total accruing troubled debt restructured loans
$
6,840
$
7,389
$
8,601
$
8,692
$
9,127
Total nonperforming assets and accruing troubled debt restructured loans
$
18,415
$
17,127
$
20,199
$
19,022
$
19,263
Total nonperforming loans to total net loans
1.08
%
1.00
%
1.20
%
1.09
%
1.08
%
Total nonperforming assets to total assets
0.95
%
0.85
%
1.10
%
0.94
%
0.96
%
Total nonperforming assets and accruing troubled debt restructured loans to total assets
1.51
%
1.49
%
1.92
%
1.73
%
1.82
%
PDL Community Bancorp and Subsidiaries
Average Balance Sheets
For the Three Months Ended June 30,
2020
2019
Average
Outstanding
Balance
Interest
Average
Yield/Rate (1)
Average
Outstanding
Balance
Interest
Average
Yield/Rate (1)
(Dollars in thousands)
Interest-earning assets:
Loans (2)
$
1,024,019
$
12,162
4.78
%
$
928,806
$
12,060
5.21
%
Available-for-sale securities
16,750
146
3.50
%
22,127
76
1.38
%
Other (3)
68,900
85
0.50
%
48,512
278
2.30
%
Total interest-earning assets
1,109,669
12,393
4.49
%
999,445
12,414
4.98
%
Non-interest-earning assets
65,829
35,130
Total assets
$
1,175,498
$
1,034,575
Interest-bearing liabilities:
NOW/IOLA
$
29,692
$
38
0.51
%
$
25,306
$
26
0.41
%
Money market
196,707
458
0.94
%
140,239
755
2.16
%
Savings
117,166
37
0.13
%
121,423
39
0.13
%
Certificates of deposit
375,708
1,730
1.85
%
400,317
1,904
1.91
%
Total deposits
719,273
2,263
1.27
%
687,285
2,724
1.59
%
Advance payments by borrowers
8,947
1
0.04
%
9,566
1
0.04
%
Borrowings
120,647
608
2.03
%
53,474
345
2.59
%
Total interest-bearing liabilities
848,867
2,872
1.36
%
750,325
3,070
1.64
%
Non-interest-bearing liabilities:
Non-interest-bearing demand
165,161
—
112,069
—
Other non-interest-bearing liabilities
5,165
—
3,819
—
Total non-interest-bearing liabilities
170,326
—
115,888
—
Total liabilities
1,019,193
2,872
866,213
3,070
Total equity
156,305
168,362
Total liabilities and total equity
$
1,175,498
1.36
%
$
1,034,575
1.64
%
Net interest income
$
9,521
$
9,344
Net interest rate spread (4)
3.13
%
3.34
%
Net interest-earning assets (5)
$
260,802
$
249,120
Net interest margin (6)
3.45
%
3.75
%
Average interest-earning assets to interest-bearing liabilities
130.72
%
133.20
%
____________
(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.
PDL Community Bancorp and Subsidiaries
Average Balance Sheets
For the Six Months Ended June 30,
2020
2019
Average
Outstanding
Balance
Interest
Average
Yield/Rate (1)
Average
Outstanding
Balance
Interest
Average
Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans (2)
$
999,758
$
24,944
5.02
%
$
932,323
$
24,155
5.22
%
Available-for-sale securities
17,484
229
2.63
%
22,954
163
1.43
%
Other (3)
53,560
250
0.93
%
41,155
478
2.34
%
Total interest-earning assets
1,070,802
25,423
4.77
%
996,432
24,796
5.02
%
Non-interest-earning assets
51,647
34,785
Total assets
$
1,122,449
$
1,031,217
Interest-bearing liabilities:
NOW/IOLA
$
29,359
$
77
0.53
%
$
26,848
$
53
0.40
%
Money market
178,589
1,075
1.21
%
113,893
1,318
2.33
%
Savings
115,438
72
0.13
%
121,988
79
0.13
%
Certificates of deposit
377,431
3,557
1.90
%
422,638
3,860
1.84
%
Total deposits
700,817
4,781
1.37
%
685,367
5,310
1.56
%
Advance payments by borrowers
8,464
2
0.05
%
8,643
2
0.05
%
Borrowings
114,643
1,195
2.10
%
52,030
678
2.63
%
Total interest-bearing liabilities
823,924
5,978
1.46
%
746,040
5,990
1.62
%
Non-interest-bearing liabilities:
Non-interest-bearing demand
136,903
—
111,360
—
Other non-interest-bearing liabilities
4,065
—
4,434
—
Total non-interest-bearing liabilities
140,968
—
115,794
—
Total liabilities
964,892
5,978
861,834
5,990
Total equity
157,557
169,383
Total liabilities and total equity
$
1,122,449
1.46
%
$
1,031,217
1.62
%
Net interest income
$
19,445
$
18,806
Net interest rate spread (4)
3.31
%
3.40
%
Net interest-earning assets (5)
$
246,878
$
250,392
Net interest margin (6)
3.65
%
3.81
%
Average interest-earning assets to
interest-bearing liabilities
129.96
%
133.56
%
____________
(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.
Source: PDL Community Bancorp