(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 $2.1 million, or $0.12 per basic and diluted share, for the third quarter of 2021, compared to net income of $5.9 million, or $0.35 per basic and diluted share, for the prior quarter and net income of $4.0 million, or $0.24 per basic and diluted share, for the third quarter of 2020.
Third Quarter Highlights
Net interest income of $15.4 million for the current quarter increased $1.7 million, or 12.4%, from prior quarter and $4.6 million, or 42.3%, from same quarter last year.
Income before income taxes of $3.4 million for the current quarter decreased $4.5 million, or 57.0%, from prior quarter and $1.8 million, or 34.6%, for the same quarter last year. Included in the prior quarter was a net gain of $4.2 million and included in the same quarter last year was a net gain of $4.4 million, both resulting from the sale of real property.
Average cost of interest-bearing deposits was 0.58% for the current quarter, a decrease from 0.67% for the prior quarter and from 1.12% for the same quarter last year.
Net interest margin was 4.13% for the current quarter, an increase from 3.84% for the prior quarter and from 3.65% for the same quarter last year.
Net interest rate spread was 3.92% for the current quarter, an increase from 3.60% for the prior quarter and from 3.33% for the same quarter last year.
Efficiency ratio was 78.89% for the current quarter compared to 61.80% for the prior quarter and 68.09% for the same quarter last year.
Non-performing loans of $10.2 million decreased $793,000 year-over-year and equates to 0.77% of total gross loans receivable as of September 30, 2021.
Net loans receivable were $1.30 billion at September 30, 2021, an increase of $143.6 million, or 12.4%, from December 31, 2020.
Deposits were $1.25 billion at September 30, 2021, an increase of $219.7 million, or 21.3%, from December 31, 2020.
President and Chief Executive Officer’s Comments
Carlos P. Naudon, the Company’s President and CEO, noted, “The numbers are substantiating the success of our strategy. We continue increasing customer relationships, growing both our deposits and loans while continuing to increase our net interest margin and building our demand deposit base. We focus on net operating expenses, maintaining net operating expenses stable as we add resources that deliver revenue producing services to customers, allowing us to further grow into our overhead while increasing profitability. As our PPP loans are being forgiven by the SBA, we are heartened in the retention of large segments of these borrowers and in the continued acknowledgement of the positive impact we are having on our communities. Our demonstrated success as an MDI and CDFI has positioned us well to lead 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, “Strengthening our capital position is a cornerstone of our strategy of being impactful to both our communities and our other stakeholders. As we move forward to seek approval of our mutual-to-stock conversion and await a favorable outcome of the recently applied for $225 million in capital from the U.S. Department of the Treasury under the Emergency Capital Investment Program, we are humbled and inspired by the trust and hopes being placed in our Company.”
Loan Payment Deferrals
As of September 30, 2021, five loans in the amount of $9.9 million remained in forbearance as a result of renewed forbearance for a period of three months. Of the five loans receiving renewed forbearance, one loan in the amount of $6.6 million is related to construction real estate, three loans, totaling $2.9 million are related to one-to-four family residential real estate and one loan in the amount of $388,000 is related to non-residential properties. 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 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 September 30, 2021 was $2.1 million, compared to $5.9 million of net income for the three months ended June 30, 2021 and $4.0 million of net income for the three months ended September 30, 2020.
The $3.9 million decrease in net income for the three months ended September 30, 2021 compared to the three months ended June 30, 2021 was due substantially to a decrease of $5.1 million in non-interest income primarily resulting from a decrease of $4.2 million in gain, net of expenses, on sale of real property. The decrease in net income was also attributable to an increase of $1.1 million in non-interest expense, offset by an increase of $1.7 million in net interest income and a decrease of $596,000 in provision for income taxes.
The $2.0 million decrease in net income for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was due substantially to a decrease of $4.0 million in non-interest income primarily resulting from a decrease of $4.4 million in gain, net of expenses, on sale of real property. The decrease in net income was also attributable to an increase of $2.4 million in non-interest expense and an increase of $171,000 in provision for income taxes, offset by an increase of $4.6 million in net interest income.
Net income for the nine months ended September 30, 2021 was $10.4 million, compared to $2.2 million of net income for the nine months ended September 30, 2020. The change from the nine months ended September 30, 2020 is primarily due to a $7.0 million increase in non-interest income primarily due to increases of $2.6 million in sale of mortgage loans, $1.9 million in loan originations attributable to Mortgage World and $2.5 million in the aggregate related to service charges and fees, brokerage commissions, late and prepayment charges, gain, net of expenses, on sale of real property and other non-interest income. The increase in net income was also attributable to an $11.8 million increase in net interest income and a $193,000 decrease in provision for loan losses, partially offset by increases of $7.7 million in non-interest expense and $3.1 million in provision for income taxes.
Net interest income for the three months ended September 30, 2021 was $15.4 million, an increase of $1.7 million, or 12.4%, compared to the three months ended June 30, 2021 and an increase of $4.6 million, or 42.3%, compared to the three months ended September 30, 2020. The increase of $1.7 million in net interest income for the three months ended September 30, 2021 compared to the three months ended June 30, 2021 was attributable to an increase of $1.6 million in interest and dividend income and a decrease of $127,000 in interest expense. The increase of $4.6 million in net interest income for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was attributable to an increase of $3.8 million in interest and dividend income and a decrease of $767,000 in interest expense.
Net interest income for the nine months ended September 30, 2021 was $42.1 million, an increase of $11.8 million, or 38.8%, compared to the nine months ended September 30, 2020. The increase in net interest income was attributable to an increase of $9.4 million in interest and dividend income and a decrease of $2.3 million in interest expense.
Net interest margin was 4.13% for the three months ended September 30, 2021, an increase of 29 basis points from 3.84% for the three months ended June 30, 2021 and an increase of 48 basis points from 3.65% for the three months ended September 30, 2020.
Net interest rate spread increased by 32 basis points to 3.92% for the three months ended September 30, 2021 from 3.60% for the three months ended June 30, 2021 and increased by 59 basis points from 3.33% for the three months ended September 30, 2020. The increase in the net interest rate spread for the three months ended September 30, 2021 compared to the three months ended June 30, 2021 was primarily due to an increase in the average yields on interest-earning assets of 23 basis points to 4.66% for the three months ended September 30, 2021 from 4.43% for the three months ended June 30, 2021, and by a decrease on the average rates on interest-bearing liabilities of 9 basis points to 0.74% for the three months ended September 30, 2021 from 0.83% for the three months ended June 30, 2021. The increase in the net interest rate spread for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was primarily due to a decrease on the average rates on interest-bearing liabilities of 50 basis points to 0.74% for the three months ended September 30, 2021 from 1.24% for the three months ended September 30, 2020, and by a slight increase in the average yields on interest-earning assets of 9 basis points to 4.66% for the three months ended September 30, 2021 from 4.57% for the three months ended September 30, 2020.
Non-interest income decreased $5.1 million to $3.2 million for the three months ended September 30, 2021 from $8.3 million for the three months ended June 30, 2021 and decreased $4.0 million from $7.3 million for the three months ended September 30, 2020.
The decrease in non-interest income for the three months ended September 30, 2021 compared to the three months ended June 30, 2021 was primarily due to decreases of $4.2 million in gain, net of expenses, from the sale of real property recognized in the second quarter of 2021, $471,000 in other non-interest income, $346,000 in loan origination fees, $160,000 in brokerage commissions and $113,000 in income on sale of mortgage loans attributable to Mortgage World, offset by increases of $128,000 in service charges and fees and $31,000 in late and prepayment charges.
The decrease in non-interest income for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was primarily due to decreases of $4.4 million in gain, net of expenses, from the sale of real property recognized in the third quarter of 2020, $197,000 in income on sale of mortgage loans attributable to Mortgage World, $177,000 in brokerage commissions and $30,000 in other non-interest income, offset by increases of $356,000 in loan origination fees attributable to Mortgage World, $258,000 service charges and fees and $184,000 in late and prepayment charges.
Non-interest income increased $7.0 million to $15.5 million for the nine months ended September 30, 2021 from $8.5 million for the nine months ended September 30, 2020. The increase in non-interest income for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 was primarily due to increases of $2.6 million in sale of mortgage loans and $1.9 million in loan originations attributable to Mortgage World. Other increases include $597,000 in other non-interest income, $594,000 in late and prepayment charges, $560,000 in service charges and fees, $404,000 in brokerage commissions and $400,000 in gain, net of expenses, from the sale of real property.
Non-interest expense increased $1.1 million, or 8.0%, to $14.7 million for the three months ended September 30, 2021, from $13.6 million for the three months ended June 30, 2021 and increased $2.4 million from $12.3 million for the three months ended September 30, 2020.
The increase in non-interest expense for the three months ended September 30, 2021, compared to the three months ended June 30, 2021 was primarily attributable to an increase of $2.2 million in compensation and benefits, which was specifically related to the allocable portion of employee expenses related to the origination of Paycheck Protection Program (“PPP”) loans, netted against PPP loan origination fees received from the SBA in the second quarter of 2021. Other increases in non-interest expense were $184,000 in data processing expenses, $159,000 in office supplies, telephone and postage and $155,000 in other operating expenses, offset by decreases of $1.1 million in professional fees as a result of $1.2 million of additional consultant fees recognized in the second quarter of 2021 and $455,000 in direct loan expenses.
The increase in non-interest expense for the three months ended September 30, 2021, compared to the three months ended September 30, 2020 primarily reflects increases of $873,000 in compensation and benefits, which was specifically related to the allocable portion of employee expenses related to the origination of PPP loans, netted against PPP loan origination fees received from the SBA recognized in the third quarter of 2020. Other increases in non-interest expense include $321,000 in data processing expenses, $279,000 in other operating expenses, $265,000 in occupancy and equipment, $259,000 in direct loan expenses, $240,000 in office supplies, telephone and postage and $212,000 in professional fees.
Non-interest expense increased $7.7 million, or 22.9%, to $41.3 million for the nine months ended September 30, 2021, compared to $33.6 million for the nine months ended September 30, 2020. The increase in non-interest expense for the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020 was attributable to increases of $2.0 million in direct loan expenses, $1.4 million in occupancy and equipment, $1.4 million in professional fees, primarily due to an increase in consulting expenses related to a third-party service provider that provided loan origination services related to PPP loans and $1.1 million in compensation and benefits. Other increases in non-interest expense include $790,000 in other operating expenses, $685,000 in data processing expenses and $103,000 in regulatory dues, offset by a decrease of $369,000 in marketing and promotional expenses.
Balance Sheet Summary
Total assets increased $205.3 million, or 15.2%, to $1.56 billion at September 30, 2021 from $1.36 billion at December 31, 2020. The increase in total assets is attributable to increases of $143.6 million in net loans receivable, including $110.6 million net increase in PPP loans, $86.9 million in available-for-sale securities, $2.2 million in other assets, $2.0 million, net, in premises and equipment, $2.0 million in accrued interest receivable, and $170,000 in deferred tax assets. The increase in total assets was reduced by decreases of $21.5 million in mortgage loans held for sale, at fair value, $9.0 million in cash and cash equivalents, $425,000 in FHLBNY stock, $306,000 in held-to-maturity securities and $249,000 in placement with banks.
Total liabilities increased $191.0 million, or 16.0%, to $1.39 billion at September 30, 2021 from $1.20 billion at December 31, 2020. The increase in total liabilities was mainly attributable to increases of $219.7 million in deposits, $2.1 million in advance payments by borrowers for taxes and insurance and $178,000 in accrued interest payable, offset by decreases of $18.7 million in warehouse lines of credit, $11.0 million in advances from FHLBNY and $934,000 in other liabilities.
Total stockholders’ equity increased $14.3 million, or 9.0%, to $173.9 million at September 30, 2021 from $159.5 million at December 31, 2020. The $14.3 million increase in stockholders’ equity was mainly attributable to $10.4 million in net income, $3.1 million in net treasury stock activity, $1.1 million related to share-based compensation and $472,000 related to the Company’s Employee Stock Ownership Plan, offset by $756,000 related to unrealized loss on available-for-sale securities.
As of September 30, 2021, the Company had repurchased a total of 1,670,619 shares under prior repurchase programs at a weighted average price of $13.22 per share, of which 1,132,086 were reported as treasury stock. The Company suspended its repurchase program as of May 3, 2021. Of the 1,670,619 shares repurchased, 189,960 shares have been used for grants awarded to directors, executive officers and non-executive officers under the Company’s 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2020 and 2019 and July 23, 2021. Of these 189,960 shares, 166 shares were retained to satisfy a recipient’s taxes and other withholding obligations and these shares remain as part of treasury stock. In addition, on April 22, 2021, 348,739 shares were sold to Banc of America Strategic Investments Corporation in a privately negotiated transaction.
About PDL Community Bancorp
PDL Community Bancorp is the financial holding company for Ponce Bank and Mortgage World Bankers, Inc. Ponce Bank is a federally chartered stock savings association. Ponce Bank is designated a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent from alternative funding sources and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises as well as mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock. Mortgage World Bankers, Inc. is a mortgage lender operating in five states and is subject to the regulation and examination of the New York State Department of Financial Services. As a Federal Housing Administration (“FHA”)-approved Title II lender, Mortgage World Bankers, Inc. originates and sells to investors single family mortgage loans guaranteed by the FHA, as well as conventional mortgages.
Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; the anticipated impact of the COVID-19 pandemic and the Company’s attempts at mitigation; changes in the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorp’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.
PDL Community Bancorp and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)
As of
September 30,
June 30,
March 31,
December 31,
September 30,
2021
2021
2021
2020
2020
ASSETS
Cash and due from banks:
Cash
$
29,365
$
32,541
$
13,551
$
26,936
$
14,302
Interest-bearing deposits in banks
33,673
33,551
76,571
45,142
61,790
Total cash and cash equivalents
63,038
66,092
90,122
72,078
76,092
Available-for-sale securities, at fair value
104,358
48,536
30,929
17,498
14,512
Held-to-maturity securities, at amortized cost
1,437
1,720
1,732
1,743
—
Placement with banks
2,490
2,739
2,739
2,739
2,739
Mortgage loans held for sale, at fair value
13,930
15,308
13,725
35,406
13,100
Loans receivable, net
1,302,238
1,343,578
1,230,458
1,158,640
1,108,956
Accrued interest receivable
13,360
13,134
12,547
11,396
9,995
Premises and equipment, net
34,081
34,057
33,625
32,045
32,113
Federal Home Loan Bank of New York stock (FHLBNY), at cost
6,001
6,156
6,057
6,426
6,414
Deferred tax assets
4,826
5,493
4,569
4,656
3,586
Other assets
14,793
10,837
7,204
12,604
9,844
Total assets
$
1,560,552
$
1,547,650
$
1,433,707
$
1,355,231
$
1,277,351
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
$
1,249,261
$
1,236,161
$
1,138,546
$
1,029,579
$
973,244
Accrued interest payable
238
55
66
60
58
Advance payments by borrowers for taxes and insurance
9,118
7,682
9,264
7,019
7,739
Advances from the FHLBNY and others
106,255
109,255
109,255
117,255
117,283
Warehouse lines of credit
11,261
13,084
11,664
29,961
9,065
Mortgage loan fundings payable
1,136
743
676
1,483
1,457
Other liabilities
9,396
8,780
3,032
10,330
10,131
Total liabilities
1,386,665
1,375,760
1,272,503
1,195,687
1,118,977
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized
—
—
—
—
—
Common stock, $0.01 par value; 50,000,000 shares authorized
185
185
185
185
185
Treasury stock, at cost
(15,069
)
(15,069
)
(19,285
)
(18,114
)
(18,281
)
Additional paid-in-capital
86,360
85,956
85,470
85,105
85,817
Retained earnings
107,977
105,925
99,993
97,541
95,913
Accumulated other comprehensive income
(621
)
(41
)
28
135
168
Unearned compensation ─ ESOP
(4,945
)
(5,066
)
(5,187
)
(5,308
)
(5,428
)
Total stockholders' equity
173,887
171,890
161,204
159,544
158,374
Total liabilities and stockholders' equity
$
1,560,552
$
1,547,650
$
1,433,707
$
1,355,231
$
1,277,351
PDL Community Bancorp and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2021
2021
2021
2020
2020
Interest and dividend income:
Interest on loans receivable
$
16,991
$
15,603
$
14,925
$
14,070
$
13,375
Interest on deposits due from banks
9
2
2
10
5
Interest and dividend on securities and FHLBNY stock
425
239
250
233
223
Total interest and dividend income
17,425
15,844
15,177
14,313
13,603
Interest expense:
Interest on certificates of deposit
1,010
1,108
1,219
1,422
1,597
Interest on other deposits
354
382
382
448
500
Interest on borrowings
621
622
684
769
655
Total interest expense
1,985
2,112
2,285
2,639
2,752
Net interest income
15,440
13,732
12,892
11,674
10,851
Provision for loan losses
572
586
686
406
620
Net interest income after provision for loan losses
14,868
13,146
12,206
11,268
10,231
Non-interest income:
Service charges and fees
494
366
329
263
236
Brokerage commissions
270
430
223
455
447
Late and prepayment charges
329
298
244
81
145
Income on sale of mortgage loans
1,175
1,288
1,508
2,748
1,372
Loan origination
625
971
539
656
269
Gain on sale of real property
—
4,176
663
—
4,412
Other
341
812
387
596
371
Total non-interest income
3,234
8,341
3,893
4,799
7,252
Non-interest expense:
Compensation and benefits
6,427
4,212
5,664
6,846
5,554
Occupancy and equipment
2,849
2,838
2,634
2,686
2,584
Data processing expenses
917
733
594
578
596
Direct loan expenses
696
1,151
1,009
599
437
Insurance and surety bond premiums
147
143
146
166
138
Office supplies, telephone and postage
626
467
409
385
386
Professional fees
1,765
2,902
1,262
1,533
1,553
Marketing and promotional expenses
51
48
38
—
127
Directors fees
67
69
69
69
69
Regulatory dues
74
120
60
59
49
Other operating expenses
1,113
958
1,030
1,034
834
Total non-interest expense
14,732
13,641
12,915
13,955
12,327
Income before income taxes
3,370
7,846
3,184
2,112
5,156
Provision for income taxes
1,318
1,914
732
484
1,147
Net income
$
2,052
$
5,932
$
2,452
$
1,628
$
4,009
Earnings per share:
Basic
$
0.12
$
0.35
$
0.15
$
0.10
$
0.24
Diluted
$
0.12
$
0.35
$
0.15
$
0.10
$
0.24
Weighted average shares outstanding:
Basic
16,823,731
16,737,037
16,548,196
16,558,576
16,612,205
Diluted
16,914,833
16,773,606
16,548,196
16,558,576
16,612,205
PDL Community Bancorp and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Nine Months Ended September 30,
2021
2020
Variance $
Variance %
Interest and dividend income:
Interest on loans receivable
$
47,519
$
38,319
$
9,200
24.01
%
Interest on deposits due from banks
13
74
(61
)
(82.43
%)
Interest and dividend on securities and FHLBNY stock
914
633
281
44.39
%
Total interest and dividend income
48,446
39,026
9,420
24.14
%
Interest expense:
Interest on certificates of deposit
3,337
5,154
(1,817
)
(35.25
%)
Interest on other deposits
1,118
1,726
(608
)
(35.23
%)
Interest on borrowings
1,927
1,850
77
4.16
%
Total interest expense
6,382
8,730
(2,348
)
(26.90
%)
Net interest income
42,064
30,296
11,768
38.84
%
Provision for loan losses
1,844
2,037
(193
)
(9.47
%)
Net interest income after provision for loan losses
40,220
28,259
11,961
42.33
%
Non-interest income:
Service charges and fees
1,189
629
560
89.03
%
Brokerage commissions
923
519
404
77.84
%
Late and prepayment charges
871
277
594
214.44
%
Income on sale of mortgage loans
3,971
1,372
2,599
189.43
%
Loan origination
2,135
269
1,866
693.68
%
Gain on sale of real property
4,812
4,412
400
9.07
%
Other
1,567
970
597
61.55
%
Total non-interest income
15,468
8,448
7,020
83.10
%
Non-interest expense:
Compensation and benefits
16,303
15,207
1,096
7.21
%
Occupancy and equipment
8,321
6,878
1,443
20.98
%
Data processing expenses
2,244
1,559
685
43.94
%
Direct loan expenses
2,856
848
2,008
236.79
%
Insurance and surety bond premiums
436
387
49
12.66
%
Office supplies, telephone and postage
1,502
1,014
488
48.13
%
Professional fees
5,929
4,516
1,413
31.29
%
Marketing and promotional expenses
137
506
(369
)
(72.92
%)
Directors fees
205
207
(2
)
(0.97
%)
Regulatory dues
254
151
103
68.21
%
Other operating expenses
3,101
2,311
790
34.18
%
Total non-interest expense
41,288
33,584
7,704
22.94
%
Income before income taxes
14,400
3,123
11,277
361.10
%
Provision for income taxes
3,964
898
3,066
341.43
%
Net income
$
10,436
$
2,225
$
8,211
369.03
%
Earnings per share:
Basic
$
0.62
$
0.13
N/A
N/A
Diluted
$
0.62
$
0.13
N/A
N/A
Weighted average shares outstanding:
Basic
16,703,997
16,711,677
N/A
N/A
Diluted
16,746,554
16,724,199
N/A
N/A
PDL Community Bancorp and Subsidiaries
Key Metrics
At or for the Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2021
2021
2021
2020
2020
Performance Ratios:
Return on average assets (1)
0.52
%
1.59
%
0.72
%
0.50
%
1.28
%
Return on average equity (1)
4.59
%
13.95
%
6.16
%
4.03
%
9.95
%
Net interest rate spread (1) (2)
3.92
%
3.60
%
3.76
%
3.50
%
3.33
%
Net interest margin (1) (3)
4.13
%
3.84
%
4.00
%
3.78
%
3.65
%
Non-interest expense to average assets (1)
3.72
%
3.65
%
3.82
%
4.29
%
3.95
%
Efficiency ratio (4)
78.89
%
61.80
%
76.94
%
84.71
%
68.09
%
Average interest-earning assets to average interest- bearing liabilities
138.89
%
140.13
%
133.25
%
132.04
%
134.35
%
Average equity to average assets
11.27
%
11.37
%
11.77
%
12.44
%
12.90
%
Capital Ratios:
Total capital to risk weighted assets (bank only)
16.15
%
16.08
%
15.80
%
15.95
%
16.93
%
Tier 1 capital to risk weighted assets (bank only)
14.90
%
14.83
%
14.54
%
14.70
%
15.68
%
Common equity Tier 1 capital to risk-weighted assets (bank only)
14.90
%
14.83
%
14.54
%
14.70
%
15.68
%
Tier 1 capital to average assets (bank only)
9.98
%
10.22
%
10.78
%
11.19
%
11.46
%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans
1.21
%
1.16
%
1.24
%
1.27
%
1.28
%
Allowance for loan losses as a percentage of nonperforming loans
157.17
%
175.63
%
126.07
%
127.28
%
131.00
%
Net (charge-offs) recoveries to average outstanding loans (1)
(0.13
%)
(0.07
%)
(0.02
%)
0.03
%
0.00
%
Non-performing loans as a percentage of total gross loans
0.77
%
0.66
%
0.99
%
1.00
%
0.98
%
Non-performing loans as a percentage of total assets
0.65
%
0.58
%
0.86
%
0.86
%
0.86
%
Total non-performing assets as a percentage of total assets
0.65
%
0.58
%
0.86
%
0.86
%
0.86
%
Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets
1.05
%
1.01
%
1.32
%
1.35
%
1.36
%
Other:
Number of offices (5)
19
19
20
20
20
Number of full-time equivalent employees (6)
230
231
236
227
230
(1)
Annualized where appropriate.
(2)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(3)
Net interest margin represents net interest income divided by average total interest-earning assets.
(4)
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
(5)
Number of offices included 5 offices at September 30, 2021 and June 30, 2021, and included 6 offices at March 31, 2021, December 31, 2020 and September 30, 2020 due to the acquisition of Mortgage World.
(6)
Subsequent to July 10, 2020, number of full-time equivalent employees includes full-time equivalent employees related to Mortgage World.
PDL Community Bancorp and Subsidiaries
Loan Portfolio
As of
September 30,
June 30,
March 31,
December 31,
September 30,
2021
2021
2021
2020
2020
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned
$
319,346
24.14
%
$
325,409
23.82
%
$
317,895
25.51
%
$
319,596
27.27
%
$
320,438
28.55
%
Owner-Occupied
97,493
7.37
%
98,839
7.24
%
99,985
8.02
%
98,795
8.43
%
93,340
8.31
%
Multifamily residential
317,575
24.01
%
318,579
23.33
%
315,078
25.28
%
307,411
26.23
%
284,775
25.37
%
Nonresidential properties
211,075
15.96
%
211,181
15.46
%
215,340
17.28
%
218,929
18.68
%
217,771
19.40
%
Construction and land
133,130
10.07
%
125,265
9.17
%
119,339
9.57
%
105,858
9.03
%
99,721
8.88
%
Total mortgage loans
1,078,619
81.55
%
1,079,273
79.02
%
1,067,637
85.66
%
1,050,589
89.64
%
1,016,045
90.52
%
Non-mortgage loans:
Business loans (1)
207,859
15.72
%
253,935
18.59
%
142,135
11.40
%
94,947
8.10
%
96,700
8.61
%
Consumer loans (2)
36,095
2.73
%
32,576
2.39
%
36,706
2.94
%
26,517
2.26
%
9,806
0.87
%
Total non-mortgage loans
243,954
18.45
%
286,511
20.98
%
178,841
14.34
%
121,464
10.36
%
106,506
9.48
%
Total loans, gross
1,322,573
100.00
%
1,365,784
100.00
%
1,246,478
100.00
%
1,172,053
100.00
%
1,122,551
100.00
%
Net deferred loan origination costs
(4,327
)
(6,331
)
(512
)
1,457
786
Allowance for losses on loans
(16,008
)
(15,875
)
(15,508
)
(14,870
)
(14,381
)
Loans, net
$
1,302,238
$
1,343,578
$
1,230,458
$
1,158,640
$
1,108,956
(1)
As of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, business loans include $195.9 million, $241.5 million, $132.5 million, $85.3 million, and $86.2 million, respectively, of PPP loans.
(2)
As of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, consumer loans include $35.5 million, $32.0 million, $35.9 million, $25.5 million and $8.7 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain Technologies, LLC.
PDL Community Bancorp and Subsidiaries
Deposits
As of
September 30,
June 30,
March 31,
December 31,
September 30,
2021
2021
2021
2020
2020
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Demand (1)
$
297,777
23.85
%
$
320,404
25.91
%
$
242,255
21.28
%
$
189,855
18.44
%
$
186,328
19.15
%
Interest-bearing deposits:
NOW/IOLA accounts
28,025
2.24
%
28,996
2.35
%
32,235
2.83
%
39,296
3.82
%
29,618
3.04
%
Money market accounts
199,758
15.99
%
172,925
13.99
%
157,271
13.81
%
136,258
13.23
%
148,877
15.30
%
Reciprocal deposits
147,226
11.79
%
151,443
12.25
%
137,402
12.07
%
131,363
12.76
%
108,367
11.13
%
Savings accounts
142,851
11.43
%
130,430
10.55
%
130,211
11.44
%
125,820
12.22
%
120,883
12.42
%
Total NOW, money market, reciprocal and savings accounts
517,860
41.45
%
483,794
39.14
%
457,119
40.15
%
432,737
42.03
%
407,745
41.89
%
Certificates of deposit of $250K or more
70,996
5.68
%
74,941
6.06
%
77,418
6.80
%
78,435
7.62
%
80,403
8.26
%
Brokered certificates of deposit (2)
83,505
6.68
%
83,506
6.76
%
86,004
7.55
%
52,678
5.12
%
55,878
5.74
%
Listing service deposits (2)
66,340
5.31
%
66,518
5.38
%
61,133
5.37
%
39,476
3.83
%
49,342
5.07
%
All other certificates of deposit less than $250K
212,783
17.03
%
206,998
16.75
%
214,617
18.85
%
236,398
22.96
%
193,548
19.89
%
Total certificates of deposit
433,624
34.70
%
431,963
34.95
%
439,172
38.57
%
406,987
39.53
%
379,171
38.96
%
Total interest-bearing deposits
951,484
76.15
%
915,757
74.09
%
896,291
78.72
%
839,724
81.56
%
786,916
80.85
%
Total deposits
$
1,249,261
100.00
%
$
1,236,161
100.00
%
$
1,138,546
100.00
%
$
1,029,579
100.00
%
$
973,244
100.00
%
(1)
Included in demand deposits are deposits related to net PPP funding.
(2)
As of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, there were $28.9 million, $28.9 million, $28.8 million, $27.0 million, and $26.9 million, respectively, in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
PDL Community Bancorp and Subsidiaries
Nonperforming Assets
As of
September 30,
June 30,
March 31,
December 31,
September 30,
2021
2021
2021
2020
2020
(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned
$
1,669
$
1,983
$
2,907
$
2,808
$
2,750
Owner occupied
1,090
1,593
1,585
1,053
1,075
Multifamily residential
2,577
955
946
946
210
Nonresidential properties
1,388
1,408
3,761
3,776
3,830
Construction and land
922
—
—
—
—
Non-mortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
—
Total non-accrual loans (not including non-accruing troubled debt restructured loans)
$
7,646
$
5,939
$
9,199
$
8,583
$
7,865
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned
$
238
$
242
$
246
$
249
$
267
Owner occupied
2,200
2,199
2,195
2,197
2,191
Multifamily residential
—
—
—
—
—
Nonresidential properties
101
659
661
654
655
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
—
Total non-accruing troubled debt restructured loans
2,539
3,100
3,102
3,100
3,113
Total non-accrual loans
$
10,185
$
9,039
$
12,301
$
11,683
$
10,978
Total non-performing assets
$
10,185
$
9,039
$
12,301
$
11,683
$
10,978
Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned
$
3,121
$
3,347
$
3,362
$
3,378
$
3,396
Owner occupied
2,396
2,431
2,466
2,505
2,177
Multifamily residential
—
—
—
—
—
Nonresidential properties
738
755
750
754
759
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
—
Total accruing troubled debt restructured loans
$
6,255
$
6,533
$
6,578
$
6,637
$
6,332
Total non-performing assets and accruing troubled debt restructured loans
$
16,440
$
15,572
$
18,879
$
18,320
$
17,310
Total non-performing loans to total gross loans
0.77
%
0.66
%
0.99
%
1.00
%
0.98
%
Total non-performing assets to total assets
0.65
%
0.58
%
0.86
%
0.86
%
0.86
%
Total non-performing assets and accruing troubled debt restructured loans to total assets
1.05
%
1.01
%
1.32
%
1.35
%
1.36
%
PDL Community Bancorp and Subsidiaries
Average Balance Sheets
For the Three Months Ended September 30,
2021
2020
Average
Average
Outstanding
Average
Outstanding
Average
Balance
Interest
Yield/Rate (1)
Balance
Interest
Yield/Rate (1)
(Dollars in thousands)
Interest-earning assets:
Loans (2)
$
1,356,130
$
16,991
4.97
%
$
1,109,799
$
13,375
4.79
%
Securities (3)
72,960
355
1.93
%
13,741
132
3.81
%
Other (4)
53,182
79
0.59
%
60,068
96
0.64
%
Total interest-earning assets
1,482,272
17,425
4.66
%
1,183,608
13,603
4.57
%
Non-interest-earning assets
90,110
58,493
Total assets
$
1,572,382
$
1,242,101
Interest-bearing liabilities:
NOW/IOLA
$
30,221
$
23
0.30
%
$
29,687
$
40
0.54
%
Money market
323,840
294
0.36
%
224,339
422
0.75
%
Savings
137,078
36
0.10
%
121,355
37
0.12
%
Certificates of deposit
448,191
1,010
0.89
%
371,094
1,597
1.71
%
Total deposits
939,330
1,363
0.58
%
746,475
2,096
1.12
%
Advance payments by borrowers
10,061
1
0.04
%
7,756
1
0.05
%
Borrowings
117,824
621
2.09
%
126,729
655
2.06
%
Total interest-bearing liabilities
1,067,215
1,985
0.74
%
880,960
2,752
1.24
%
Non-interest-bearing liabilities:
Non-interest-bearing demand
317,727
—
191,269
—
Other non-interest-bearing liabilities
10,154
—
9,607
—
Total non-interest-bearing liabilities
327,881
—
200,876
—
Total liabilities
1,395,096
1,985
1,081,836
2,752
Total equity
177,286
160,265
Total liabilities and total equity
$
1,572,382
0.74
%
$
1,242,101
1.24
%
Net interest income
$
15,440
$
10,851
Net interest rate spread (5)
3.92
%
3.33
%
Net interest-earning assets (6)
$
415,057
$
302,648
Net interest margin (7)
4.13
%
3.65
%
Average interest-earning assets to interest-bearing liabilities
138.89
%
134.35
%
(1)
Annualized where appropriate.
(2)
Loans include loans and mortgage loans held for sale, at fair value.
(3)
Securities include available-for-sale securities and held-to-maturity securities.
(4)
Includes FHLBNY demand account and FHLBNY stock dividends.
(5)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(6)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(7)
Net interest margin represents net interest income divided by average total interest-earning assets.
PDL Community Bancorp and Subsidiaries
Average Balance Sheets
For the Nine Months Ended September 30,
2021
2020
Average
Average
Outstanding
Average
Outstanding
Average
Balance
Interest
Yield/Rate (1)
Balance
Interest
Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans (2)
$
1,309,765
$
47,519
4.85
%
$
1,036,706
$
38,319
4.94
%
Securities (3)
45,749
701
2.05
%
16,227
361
2.97
%
Other (4)
53,425
226
0.57
%
55,746
346
0.83
%
Total interest-earning assets
1,408,939
48,446
4.60
%
1,108,679
39,026
4.70
%
Non-interest-earning assets
73,493
53,945
Total assets
$
1,482,432
$
1,162,624
Interest-bearing liabilities:
NOW/IOLA
$
31,215
$
93
0.40
%
$
29,469
$
117
0.53
%
Money market
300,594
909
0.40
%
193,951
1,497
1.03
%
Savings
131,849
113
0.11
%
117,424
109
0.12
%
Certificates of deposit
428,653
3,337
1.04
%
375,303
5,154
1.83
%
Total deposits
892,311
4,452
0.67
%
716,147
6,877
1.28
%
Advance payments by borrowers
10,020
3
0.04
%
8,226
3
0.05
%
Borrowings
122,203
1,927
2.11
%
118,701
1,850
2.08
%
Total interest-bearing liabilities
1,024,534
6,382
0.83
%
843,074
8,730
1.38
%
Non-interest-bearing liabilities:
Non-interest-bearing demand
275,865
—
155,158
—
Other non-interest-bearing liabilities
12,182
—
5,927
—
Total non-interest-bearing liabilities
288,047
—
161,085
—
Total liabilities
1,312,581
6,382
1,004,159
8,730
Total equity
169,851
158,465
Total liabilities and total equity
$
1,482,432
0.83
%
$
1,162,624
1.38
%
Net interest income
$
42,064
$
30,296
Net interest rate spread (5)
3.77
%
3.32
%
Net interest-earning assets (6)
$
384,405
$
265,605
Net interest margin (7)
3.99
%
3.65
%
Average interest-earning assets to
interest-bearing liabilities
137.52
%
131.50
%
(1)
Annualized where appropriate.
(2)
Loans include loans and mortgage loans held for sale, at fair value.
(3)
Securities include available-for-sale securities and held-to-maturity securities.
(4)
Includes FHLBNY demand account and FHLBNY stock dividends.
(5)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(6)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(7)
Net interest margin represents net interest income divided by average total interest-earning assets.
PDL Community Bancorp and Subsidiaries
Other Data
As of
September 30,
June 31,
March 31,
December 31,
September 30,
2021
2021
2021
2020
2020
Other Data
Common shares issued
18,463,028
18,463,028
18,463,028
18,463,028
18,463,028
Less treasury shares
1,132,086
1,135,086
1,444,776
1,337,059
1,346,679
Common shares outstanding at end of period
17,330,942
17,327,942
17,018,252
17,125,969
17,116,349
Book value per share
$
10.03
$
9.92
$
9.47
$
9.32
$
9.25
Tangible book value per share
$
10.03
$
9.92
$
9.47
$
9.32
$
9.25
Contact:
Frank Perez
frank.perez@poncebank.net
718-931-9000
Source: PDL Community Bancorp