PDL Community Bancorp Announces 2021 First Quarter Results

Ponce Bank Apr 30, 2021 12:00:00 AM

YORK, April 30, 2021 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the financial holding company for Ponce Bank (the “Bank”) and Mortgage World Bankers, Inc. (“Mortgage World”), reported net income of $2.5 million, or $0.15 per basic and diluted share, for the first quarter of 2021, compared to net income of $1.6 million, or $0.10 per basic and diluted share, for the prior quarter and a net loss of ($1.2 million), or ($0.07) per basic and diluted share, for the first quarter of 2020.

First Quarter Highlights

Net interest income of $12.9 million for the current quarter increased $1.2 million, or 10.4% from prior quarter and increased $3.0 million, or 29.9% from same quarter last year.

Income before income taxes of $3.2 million for the current quarter increased $1.1 million, or 50.8% from prior quarter and increased $4.6 million, or 323.9% from same quarter last year.

Cost of interest-bearing deposits was 0.77% for the current quarter, a decrease from 0.94% from the prior quarter and 1.48% from same quarter last year.

The net interest margin was 4.00% for the current quarter, an increase from 3.78% for the prior quarter and 3.87% from same quarter last year.

The net interest rate spread was 3.76% for the current quarter, an increase from 3.50% for the prior quarter and 3.51% from same quarter last year.

The efficiency ratio was 76.94% for the current quarter compared to 84.71% for the prior quarter and 102.62% from same quarter last year.

Non-performing loans of $12.3 million increased $2.6 million year-over-year and equates to 0.99% of total loans receivable as of March 31, 2021.

Net loans receivable were $1.23 billion at March 31, 2021, an increase of $71.8 million, or 6.2%, from December 31, 2020.

Deposits were $1.14 billion at March 31, 2021, an increase of $109.0 million, or 10.6%, from December 31, 2020.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, the Company’s President and CEO, noted “This is a great start for the new year and reflects our executing well on all fronts. We significantly grew our deposit base while lowering our cost of funds; our loan portfolio continued to expand while improving our net interest margin. We continue investing in GPS, our Sales Force initiative, while lowering our operating expenses and increasing profitability. In addition, Mortgage World is contributing nicely to our product and income diversification. Importantly, these accomplishments could not have happened without the dedication and commitment of our expanding Ponce Family to each other, our values and our stakeholders. We are now poised to benefit from the rediscovery of the important role MDIs and CDFIs like us have in remediating the disparate effects of the pandemic, and the wealth and financial gaps present, in our communities.”

Executive Chairman’s Comments

Steven A. Tsavaris, the Company’s Executive Chairman, added “Our focus on building stakeholder value during 2021 is reflected in our Company’s nine-month payback of its $1.8 million acquisition of Mortgage World, the repurchase of 107,717 common shares during the first quarter of 2021, the renovation of four more branches and contributing to the stabilization of our communities with $132.5 million in PPP loans to over 1,700 small businesses.

Loan Payment Deferrals

Through March 31, 2021, 406 loans aggregating $376.1 million had received forbearance primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months. Of those 406 loans, 337 loans aggregating $303.6 million are no longer in deferment and continue performing pursuant to their terms and 69 loans in the amount of $72.4 million remained in deferment and are in renewed forbearance. All of these loans had been performing in accordance with their contractual obligations prior to the granting of the initial forbearance. The Company actively monitors the business activities of borrowers in forbearance and seeks to determine their capacity to resume payments as contractually obligated upon the termination of the forbearance period. The initial and extended forbearances are short-term modifications made on a good faith basis in response to the COVID-19 pandemic and in furtherance of governmental policies.

Results of Operations Summary

Net income for the three months ended March 31, 2021 was $2.5 million, compared to $1.6 million of net income for the three months ended December 31, 2020 and a ($1.2 million) net loss for the three months ended March 31, 2020. The change from the three months ended March 31, 2020 is primarily due to a $3.3 million increase in non-interest income, a $3.0 million increase in net interest income, a decrease of $460,000 in provision for loan losses, offset by a $2.1 million increase in non-interest expense and a $941,000 increase in provision for income taxes.

Net interest income for the three months ended March 31, 2021 was $12.9 million, an increase of $1.2 million, or 10.4%, from the three months ended December 31, 2020 and an increase of $3.0 million, or 29.9%, from the three months ended March 31, 2020.

Net interest margin was 4.00% for the three months ended March 31, 2021, an increase of 22 basis points from 3.78% for the three months ended December 31, 2020 and an increase of 13 basis points from 3.87% for the three months ended March 31, 2020.

Net interest rate spread increased by 25 basis points to 3.76% for the three months ended March 31, 2021 from 3.51% for the three months ended March 31, 2020. The increase in the net interest rate spread was primarily due to a decrease in the average rates on interest-bearing liabilities of 62 basis points to 0.94% for the three months ended March 31, 2020 from 1.56% for the three months ended March 31, 2020 offset by a decrease on the average yield on interest-earning assets of 37 basis points to 4.70% for the three months ended March 31, 2021 from 5.07% for the three months ended March 31, 2020.

Non-interest income decreased $906,000 to $3.9 million for the three months ended March 31, 2021 from $4.8 million for the three months ended December 31, 2020 and increased $3.3 million from $622,000 for the three months ended March 31, 2020. The decrease in non-interest income for the three months ended March 31, 2021 compared to the three months ended December 31, 2020 was primarily due to a $1.2 million decrease on income from the sale of mortgage loans, a $232,000 decrease in brokerage commissions, and a decrease of $209,000 in other non-interest income, offset by a non-recurring $663,000 gain, net of expenses, on the sale of real property recognized in the first quarter of 2021 and an increase of $163,000 in late and prepayment charges. The increase in non-interest income for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 was due to $1.5 million in income on sale of mortgage loans attributable to Mortgage World operations, a non-recurring $663,000 gain, net of expenses, on the sale of real property recognized in the first quarter of 2021 and an increase of $539,000 in loan origination fees.

Non-interest expense decreased $1.0 million, or 7.5%, to $12.9 million for the three months ended March 31, 2021, compared to $14.0 million for the three months ended December 31, 2020 and increased $2.1 million, or 19.3% from $10.8 million for the three months ended March 31, 2020. The decrease in non-interest expense for the three months ended March 31, 2021, compared to the three months ended December 31, 2020 was attributable to decreases of $1.2 million in compensation and benefits and $271,000 in professional fees, offset by an increase of $410,000 in direct loan expenses. The increase in non-interest expense for the three months ended March 31, 2021, compared to the three months ended March 31, 2020 primarily reflects Mortgage World operations and was attributable to increases of $797,000 in direct loan expenses, $656,000 in compensation and benefits, $617,000 in occupancy and equipment, $325,000 in other non-interest expense and $127,000 in data processing expenses, offset by decreases of $365,000 in professional fees and $196,000 in marketing and promotional expenses.

Balance Sheet Summary

Total assets increased $78.5 million, or 5.8%, to $1.43 billion at March 31, 2021 from $1.36 billion at December 31, 2020. The increase in total assets is attributable to increases in net loans receivable of $71.8 million, including $57.7 million in PPP loans, cash and cash equivalents of $18.0 million, available-for-sale securities of $13.4 million, premises and equipment, net, of $1.6 million and accrued interest receivable of $1.2 million. The increase in total assets was reduced by decreases in mortgage loans held for sale, at fair value, of $21.7 million, other assets of $5.4 million, FHLBNY stock of $369,000 and deferred taxes of $87,000.

Total liabilities increased $76.8 million, or 6.4%, to $1.27 billion at March 31, 2021 from $1.20 billion at December 31, 2020. The increase in total liabilities was mainly attributable to increases of $109.0 million in deposits and $2.2 million in advance payments by borrowers for taxes and insurance. The increase in total liabilities was offset by decreases of $18.3 million in warehouse lines of credit, $8.0 million in advances from FHLBNY, $7.3 million in other liabilities and $807,000 in mortgage loan fundings payable.

Total stockholders’ equity increased $1.7 million, or 1.0%, to $161.2 million at March 31, 2021 from $159.5 million at December 31, 2020. The $1.7 million increase in stockholders’ equity was mainly attributable to $2.5 million in net income, $352,000 related to restricted stock units and stock options, $134,000 related to the Company’s Employee Stock Ownership Plan, offset by $1.2 million in stock repurchases and $107,000 related to unrealized loss on available-for-sale securities.

As of March 31, 2021, the Company had repurchased a total of 1,631,570 shares under the repurchase programs at a weighted average price of $13.27 per share, of which 1,444,776 were reported as treasury stock. Of the 1,631,570 shares repurchased, a total of 186,960 shares have been used for grants given to directors, executive officers and non-executive officers under the Company’s 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2020 and 2019. Of these 186,960 shares, 166 shares were retained to satisfy a recipient’s taxes and other withholding obligations and these shares remain as part of treasury stock.

About PDL Community Bancorp

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

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; the anticipated impact of the COVID-19 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 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorp’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

ASSETS

Cash and due from banks:

Cash

13,551

26,936

14,302

15,875

13,165

Interest-bearing deposits in banks

76,571

45,142

61,790

60,756

90,795

Total cash and cash equivalents

90,122

72,078

76,092

76,631

103,960

Available-for-sale securities, at fair value

30,929

17,498

14,512

13,800

19,140

Held-to-maturity securities, at amortized cost

1,732

1,743

—

Placement with banks

2,739

—

Mortgage loans held for sale, at fair value

13,725

35,406

13,100

1,030

Loans receivable, net

1,230,458

1,158,640

1,108,956

1,072,417

972,979

Accrued interest receivable

12,547

11,396

9,995

7,677

4,198

Premises and equipment, net

33,625

32,045

32,113

32,102

32,480

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

6,057

6,426

6,414

6,422

7,889

Deferred tax assets

4,569

4,656

3,586

4,328

4,140

Other assets

7,204

12,604

9,844

5,824

5,127

Total assets

1,433,707

1,355,231

1,277,351

1,220,231

1,150,943

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits

1,138,546

1,029,579

973,244

936,219

829,741

Accrued interest payable

Advance payments by borrowers for taxes and insurance

9,264

7,019

7,739

6,007

8,295

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

109,255

117,255

117,283

117,284

152,284

Warehouse lines of credit

11,664

29,961

9,065

—

Mortgage loan fundings payable

676

1,483

1,457

—

Other liabilities

3,032

10,330

10,131

5,674

4,794

Total liabilities

1,272,503

1,195,687

1,118,977

1,065,232

995,200

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

Treasury stock, at cost

(19,285

)

(18,114

)

(18,281

)

(17,172

)

(16,490

)

Additional paid-in-capital

85,470

85,105

85,817

85,481

85,132

Retained earnings

99,993

97,541

95,913

91,904

92,475

Accumulated other comprehensive income

135

168

150

110

Unearned compensation ─ ESOP

(5,187

)

(5,308

)

(5,428

)

(5,549

)

(5,669

)

Total stockholders' equity

161,204

159,544

158,374

154,999

155,743

Total liabilities and stockholders' equity

1,433,707

1,355,231

1,277,351

1,220,231

1,150,943

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

(Dollars in thousands, except share and per share data)

Interest and dividend income:

Interest on loans receivable

14,925

14,070

13,375

12,162

12,782

Interest on deposits due from banks

Interest and dividend on securities and FHLBNY stock

250

233

223

228

182

Total interest and dividend income

15,177

14,313

13,603

12,393

13,030

Interest expense:

Interest on certificates of deposit

1,219

1,422

1,597

1,730

1,827

Interest on other deposits

382

448

500

534

692

Interest on borrowings

684

769

655

608

587

Total interest expense

2,285

2,639

2,752

2,872

3,106

Net interest income

12,892

11,674

10,851

9,521

9,924

Provision for loan losses

686

406

620

271

1,146

Net interest income after provision for loan losses

12,206

11,268

10,231

9,250

8,778

Non-interest income:

Service charges and fees

329

263

236

145

248

Brokerage commissions

223

455

447

Late and prepayment charges

244

145

119

Income on sale of mortgage loans

1,508

2,748

1,372

—

Loan origination

539

656

269

—

Gain on sale of real property

663

—

4,412

—

Other

387

596

371

394

205

Total non-interest income

3,893

4,799

7,252

574

622

Non-interest expense:

Compensation and benefits

5,664

6,846

5,554

4,645

5,008

Occupancy and equipment

2,634

2,686

2,584

2,277

2,017

Data processing expenses

594

578

596

496

467

Direct loan expenses

1,009

599

437

199

212

Insurance and surety bond premiums

146

166

138

128

121

Office supplies, telephone and postage

409

385

386

312

316

Professional fees

1,262

1,533

1,553

1,336

1,627

Marketing and promotional expenses

—

127

145

234

Directors fees

Regulatory dues

Other operating expenses

1,030

1,034

834

772

705

Total non-interest expense

12,915

13,955

12,327

10,435

10,822

Income (loss) before income taxes

3,184

2,112

5,156

(611

)

(1,422

)

Provision (benefit) for income taxes

732

484

1,147

(40

)

(209

)

Net income (loss)

2,452

1,628

4,009

(571

)

(1,213

)

Earnings (loss) per share:

Basic

0.15

0.10

0.24

(0.03

)

(0.07

)

Diluted

0.15

0.10

0.24

(0.03

)

(0.07

)

Weighted average shares outstanding:

Basic

16,548,196

16,558,576

16,612,205

16,723,449

16,800,538

Diluted

16,548,196

16,558,576

16,612,205

16,723,449

16,800,538

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

Three Months Ended March 31,

2021

2020

Variance $

Variance %

(Dollars in thousands, except share and per share data)

Interest and dividend income:

Interest on loans receivable

14,925

12,782

2,143

16.77

Interest on deposits due from banks

(64

)

(96.97

Interest and dividend on securities and FHLBNY stock

250

182

37.36

Total interest and dividend income

15,177

13,030

2,147

16.48

Interest expense:

Interest on certificates of deposit

1,219

1,827

(608

)

(33.28

Interest on other deposits

382

692

(310

)

(44.80

Interest on borrowings

684

587

16.52

Total interest expense

2,285

3,106

(821

)

(26.43

Net interest income

12,892

9,924

2,968

29.91

Provision for loan losses

686

1,146

(460

)

(40.14

Net interest income after provision for loan losses

12,206

8,778

3,428

39.05

Non-interest income:

Service charges and fees

329

248

32.66

Brokerage commissions

223

173

346.00

Late and prepayment charges

244

119

125

105.04

Income on sale of mortgage loans

1,508

—

1,508

—

Loan origination

539

—

539

—

Gain on sale of real property

663

—

663

—

Other

387

205

182

88.78

Total non-interest income

3,893

622

3,271

525.88

Non-interest expense:

Compensation and benefits

5,664

5,008

656

13.10

Occupancy and equipment

2,634

2,017

617

30.59

Data processing expenses

594

467

127

27.19

Direct loan expenses

1,009

212

797

375.94

Insurance and surety bond premiums

146

121

20.66

Office supplies, telephone and postage

409

316

29.43

Professional fees

1,262

1,627

(365

)

(22.43

Marketing and promotional expenses

234

(196

)

(83.76

Directors fees

—

Regulatory dues

30.43

Other operating expenses

1,030

705

325

46.10

Total non-interest expense

12,915

10,822

2,093

19.34

Income (loss) before income taxes

3,184

(1,422

)

4,606

323.91

Provision (benefit) for income taxes

732

(209

)

941

450.24

Net income (loss)

2,452

(1,213

)

3,665

302.14

Earnings (loss) per share:

Basic

0.15

(0.07

)

N/A

Diluted

0.15

(0.07

)

N/A

Weighted average shares outstanding:

Basic

16,548,196

16,800,538

N/A

Diluted

16,548,196

16,800,538

N/A

PDL Community Bancorp and Subsidiaries

Key Metrics

At or for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

Performance Ratios:

Return on average assets (1)

0.72

0.50

1.28

(0.20

(0.46

Return on average equity (1)

6.16

4.03

9.95

(1.47

(3.07

Net interest rate spread (1) (2)

3.76

3.50

3.33

3.13

3.51

Net interest margin (1) (3)

4.00

3.78

3.65

3.45

3.87

Non-interest expense to average assets (1)

3.82

4.29

3.95

3.57

4.07

Efficiency ratio (4)

76.94

84.71

68.09

103.37

102.62

Average interest-earning assets to average interest- bearing liabilities

133.25

132.04

134.35

130.72

129.16

Average equity to average assets

11.77

12.44

12.90

13.30

14.85

Capital Ratios:

Total capital to risk weighted assets (bank only)

15.80

15.95

16.93

17.52

17.84

Tier 1 capital to risk weighted assets (bank only)

14.54

14.70

15.68

16.26

16.59

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

14.54

14.70

15.68

16.26

16.59

Tier 1 capital to average assets (bank only)

10.78

11.19

11.46

11.63

12.76

Asset Quality Ratios:

Allowance for loan losses as a percentage of total loans

1.24

1.27

1.28

1.27

1.37

Allowance for loan losses as a percentage of nonperforming loans

126.07

127.28

131.00

118.89

138.47

Net (charge-offs) recoveries to average outstanding loans (1)

(0.02

0.03

0.00

0.01

0.00

Non-performing loans as a percentage of total gross loans

0.99

1.00

0.98

1.08

1.00

Non-performing loans as a percentage of total assets

0.86

0.95

0.85

Total non-performing assets as a percentage of total assets

0.86

0.95

0.85

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

1.32

1.35

1.36

1.51

1.49

Other:

Number of offices (5)

Number of full-time equivalent employees (6)

236

227

230

179

184

(1) Annualized where appropriate.

(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

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

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

(5) Number of offices at March 31, 2021 included 6 offices due to acquisition of Mortgage World.

(6) Number of full-time equivalent employees at March 31, 2021 included 46 full-time equivalent employees related to Mortgage World.

PDL Community Bancorp and Subsidiaries

Loan Portfolio

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

(Dollars in thousands)

Mortgage loans:

1-4 family residential

Investor Owned

317,895

25.51

319,596

27.27

320,438

28.55

317,055

29.25

308,206

31.31

Owner-Occupied

99,985

8.02

98,795

8.43

93,340

8.31

91,345

8.43

93,887

9.54

Multifamily residential

315,078

25.28

307,411

26.23

284,775

25.37

274,641

25.34

259,326

26.35

Nonresidential properties

215,340

17.28

218,929

18.68

217,771

19.40

209,068

19.29

210,225

21.36

Construction and land

119,339

9.57

105,858

9.03

99,721

8.88

96,841

8.93

100,202

10.18

Total mortgage loans

1,067,637

85.66

1,050,589

89.64

1,016,045

90.52

988,950

91.24

971,846

98.74

Non-mortgage loans:

Business loans (1)

142,135

11.40

94,947

8.10

96,700

8.61

93,394

8.62

11,183

1.13

Consumer loans (2)

36,706

2.94

26,517

2.26

9,806

0.87

1,578

0.14

1,288

0.13

Total non-mortgage loans

178,841

14.34

121,464

10.36

106,506

9.48

94,972

8.76

12,471

1.26

Total loans, gross

1,246,478

100.00

1,172,053

100.00

1,122,551

100.00

1,083,922

100.00

984,317

100.00

Net deferred loan origination costs

(512

)

1,457

786

2,256

2,146

Allowance for losses on loans

(15,508

)

(14,870

)

(14,381

)

(13,761

)

(13,484

)

Loans, net

1,230,458

1,158,640

1,108,956

1,072,417

972,979

(1) As of March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, business loans include $132.5 million, $85.3 million, $86.2 million and $83.6 million, respectively, of PPP loans.

(2) As of March 31, 2021, December 31, 2020 and September 30, 2020, consumer loans include $35.9 million, $25.5 million and $8.7 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain Technologies, LLC.

PDL Community Bancorp and Subsidiaries

Deposits

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

(Dollars in thousands)

Demand (1)

242,255

21.28

189,855

18.44

186,328

19.15

192,429

20.55

110,801

13.35

Interest-bearing deposits:

NOW/IOLA accounts

32,235

2.83

39,296

3.82

29,618

3.04

26,477

2.83

31,586

3.81

Money market accounts

157,271

13.81

136,258

13.23

148,877

15.30

125,631

13.42

121,629

14.66

Reciprocal deposits

137,402

12.07

131,363

12.76

108,367

11.13

96,915

10.35

62,384

7.52

Savings accounts

130,211

11.44

125,820

12.22

120,883

12.42

119,277

12.74

112,318

13.53

Total NOW, money market, reciprocal and savings accounts

457,119

40.15

432,737

42.03

407,745

41.89

368,300

39.34

327,917

39.52

Certificates of deposit of $250K or more

77,418

6.80

78,435

7.62

80,403

8.26

81,786

8.74

81,486

9.82

Brokered certificates of deposit

86,004

7.55

52,678

5.12

55,878

5.74

55,878

5.97

51,661

6.23

Listing service deposits (2)

61,133

5.37

39,476

3.83

49,342

5.07

54,370

5.81

55,842

6.73

All other certificates of deposit less than $250K

214,617

18.85

236,398

22.96

193,548

19.89

183,456

19.59

202,034

24.35

Total certificates of deposit

439,172

38.57

406,987

39.53

379,171

38.96

375,490

40.11

391,023

47.13

Total interest-bearing deposits

896,291

78.72

839,724

81.56

786,916

80.85

743,790

79.45

718,940

86.65

Total deposits

1,138,546

100.00

1,029,579

100.00

973,244

100.00

936,219

100.00

829,741

100.00

(1) As of March 31, 2021, December 31, September 30, 2020 and June 30, 2020, included in demand deposits are deposits related to net PPP funding.

(2) As of March 31, 2021, there were $28.8 million in individual listing service deposits amounting to $250,000 or more.

PDL Community Bancorp and Subsidiaries

Nonperforming Assets

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

(Dollars in thousands)

Non-accrual loans:

Mortgage loans:

1-4 family residential

Investor owned

2,907

2,808

2,750

2,767

2,327

Owner occupied

1,585

1,053

1,075

1,327

1,069

Multifamily residential

946

210

—

Nonresidential properties

3,761

3,776

3,830

4,355

3,228

Construction and land

—

Non-mortgage loans:

Business

—

Consumer

—

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

9,199

8,583

7,865

8,449

6,624

Non-accruing troubled debt restructured loans:

Mortgage loans:

1-4 family residential

Investor owned

246

249

267

272

276

Owner occupied

2,195

2,197

2,191

2,198

2,185

Multifamily residential

—

Nonresidential properties

661

654

655

656

653

Construction and land

—

Non-mortgage loans:

Business

—

Consumer

—

Total non-accruing troubled debt restructured loans

3,102

3,100

3,113

3,126

3,114

Total non-accrual loans

12,301

11,683

10,978

11,575

9,738

Total non-performing assets

12,301

11,683

10,978

11,575

9,738

Accruing troubled debt restructured loans:

Mortgage loans:

1-4 family residential

Investor owned

3,362

3,378

3,396

3,730

Owner occupied

2,466

2,505

2,177

2,348

2,359

Multifamily residential

—

Nonresidential properties

750

754

759

762

1,300

Construction and land

—

Non-mortgage loans:

Business

—

Consumer

—

Total accruing troubled debt restructured loans

6,578

6,637

6,332

6,840

7,389

Total non-performing assets and accruing troubled debt restructured loans

18,879

18,320

17,310

18,415

17,127

Total non-performing loans to total gross loans

0.99

1.00

0.98

1.08

1.00

Total non-performing assets to total assets

0.86

0.95

0.85

Total non-performing assets and accruing troubled debt restructured loans to total assets

1.32

1.35

1.36

1.51

1.49

PDL Community Bancorp and Subsidiaries

Average Balance Sheets

For the Three Months Ended March 31,

2021

2020

Average

Outstanding

Average

Outstanding

Average

Balance

Interest

Yield/Rate (1)

Balance

Interest

Yield/Rate (1)

(Dollars in thousands)

Interest-earning assets:

Loans (2)

1,239,127

14,925

4.88

975,499

12,782

5.27

Securities (3)

22,516

176

3.17

18,218

1.83

Other (4)

46,581

0.66

38,220

165

1.73

Total interest-earning assets

1,308,224

15,177

4.70

1,031,937

13,030

5.07

Non-interest-earning assets

63,951

37,467

Total assets

1,372,175

1,069,404

Interest-bearing liabilities:

NOW/IOLA

33,085

0.47

29,026

0.53

Money market

277,104

304

0.44

160,471

618

1.54

Savings

126,961

0.12

113,710

0.12

Certificates of deposit

405,980

1,219

1.22

379,154

1,827

1.93

Total deposits

843,130

1,600

0.77

682,361

2,518

1.48

Advance payments by borrowers

8,899

0.05

7,980

0.05

Borrowings

129,755

684

2.14

108,640

587

2.17

Total interest-bearing liabilities

981,784

2,285

0.94

798,981

3,106

1.56

Non-interest-bearing liabilities:

Non-interest-bearing demand

215,116

—

108,646

—

Other non-interest-bearing liabilities

13,754

—

2,968

—

Total non-interest-bearing liabilities

228,870

—

111,614

—

Total liabilities

1,210,654

2,285

910,595

3,106

Total equity

161,521

158,809

Total liabilities and total equity

1,372,175

0.94

1,069,404

1.56

Net interest income

12,892

9,924

Net interest rate spread (5)

3.76

3.51

Net interest-earning assets (6)

326,440

232,956

Net interest margin (7)

4.00

3.87

Average interest-earning assets to interest-bearing liabilities

133.25

129.16

(1) Annualized where appropriate.

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

(3) Securities include available-for-sale securities and held-to-maturity securities.

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

(5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

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

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

PDL Community Bancorp and Subsidiaries

Other Data

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

(Dollars in thousands, except share and per share data)

Other Data

Common shares issued

18,463,028

Less treasury shares

1,444,776

1,337,059

1,346,679

1,228,737

1,163,288

Common shares outstanding at end of period

17,018,252

17,125,969

17,116,349

17,234,291

17,299,740

Book value per share

9.47

9.32

9.25

8.99

9.00

Tangible book value per share

9.47

9.32

9.25

8.99

9.00

Contact:

Frank Perez

frank.perez@poncebank.net

718-931-9000

Source: PDL Community Bancorp

Why Work Here

Build Confidence, Clarity, And Control Over Your Financial Future

Security & Fraud

PDL Community Bancorp Announces 2021 First Quarter Results

Read On

PDL Community Bancorp Announces Update With Respect to Its Emergency Capital Investment Program Application

PDL Community Bancorp Announces 2021 Second Quarter Results

PDL Community Bancorp Announces 2020 Fourth Quarter Results