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PDL Community Bancorp Announces Results for the Year Ended December 31, 2018
YORK, March 20, 2019 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $2.7 million for the year ended December 31, 2018 compared to a net loss of $4.4 million for the year ended December 31, 2017. The Company was formed on September 29, 2017 in conjunction with the reorganization of Ponce De Leon Federal Bank, Ponce Bank’s predecessor, into a two-tier mutual holding company structure with the Company as the mid-tier stock form holding company. Accordingly, the Company’s financial results for periods prior to September 30, 2017 are solely those of Ponce Bank. The Company’s results of operations for 2017 include a one-time pre-tax contribution by the Company of 609,279 shares of common stock, valued at $6.1 million, and $200,000 in cash, to establish The Ponce De Leon Foundation (the “Foundation”).
The Company reported net income of $635,000 for the quarter ended December 31, 2018 compared to a net loss of $2.9 million for the same period in 2017. Basic and diluted earnings per share for the three months ended December 31, 2018 were both $0.04.
Carlos P. Naudon, President and CEO, remarked that “we are deriving significant benefits from continuing to focus on organic growth while investing in enhancing our customers’ experiences.” Executive Chairman Steven A. Tsavaris noted that “our investments leading up to becoming a public company have contributed to a reduction in the growth of the costs of being a public company.”
Net Interest Income
Net interest income was $36.7 million for the year ended December 31, 2018, up $4.5 million, or 13.9%, from $32.2 million for the year ended December 31, 2017. The increase in net interest income for the year ended December 31, 2018 compared to the year ended December 31, 2017 reflects a $7.2 million, or 18.4%, increase in total interest and dividend income offset by an increase of $2.7 million, or 39.9%, in total interest expense. The increase in interest and dividend income is primarily due to growth in the investor-owned one-to-four family, multifamily, nonresidential, and construction and land loans that provided an increase in average outstanding loans of $131.5 million, or 17.9%, for the year ended December 31, 2018 compared to the same period in 2017. The net interest rate spread and net interest margin was 3.57% and 3.92%, respectively, for the year ended December 31, 2018 compared to 3.76% and 4.02%, respectively, for the same period in 2017. The average yield on loans decreased to 5.18% for the year ended December 31, 2018 from 5.19% for the same period in 2017. The increase in interest expense is due to an increase in average interest-bearing liabilities of $81.5 million, or 13.3%, for the year ended December 31, 2018 compared to the same period in 2017. The cost of interest-bearing liabilities increased to 1.36% for the year ended December 31, 2018 from 1.11% for the same period in 2017.
Net interest income was $9.6 million for the quarter ended December 31, 2018, up $1.1 million, or 13.3%, from $8.5 million for the quarter ended December 31, 2017. The increase in net interest income for the quarter ended December 31, 2018 compared to the same period in 2017 reflects a $2.0 million, or 19.4%, increase in total interest and dividend income offset by an increase of $869,000, or 47.0%, in total interest expense. The increase in interest and dividend income is primarily due to growth in the investor-owned one-to-four family, multifamily, nonresidential, and construction and land loans, that provided an increase in average outstanding loans of $108.7 million, or 13.5%, for the quarter ended December 31, 2018 compared to the same period in 2017. The net interest rate spread and net interest margin was 3.52% and 3.90%, respectively, for the quarter ended December 31, 2018 compared to 3.58% and 3.88%, respectively, for the same period in 2017. The average yield on loans increased to 5.21% for the quarter ended December 31, 2018 from 4.96% for the same period in 2017. The increase in interest expense is due to an increase in average interest-bearing liabilities of $90.0 million, or 14.1%, for the quarter ended December 31, 2018 compared to the same period in 2017. The cost of interest-bearing liabilities increased to 1.48% for the quarter ended December 31, 2018 from 1.15% for the same period in 2017.
Noninterest Income
Noninterest income was $2.9 million for the year ended December 31, 2018, down $166,000, or 5.4%, from $3.1 million for the same period in 2017. The decrease is mainly attributed to a decrease in late fees and prepayment charges related to mortgage loans of $204,000, a decrease in service charges and brokerage commission of $78,000, offset by an increase in other fees of $116,000.
Noninterest income was $815,000 for the quarter ended December 31, 2018, up $121,000, or 17.4%, from $694,000 for the same period in 2017. The increase is mainly attributed to an increase in late fees and prepayment charges related to mortgage loans of $71,000 and other fees of $43,000.
Noninterest Expense
Noninterest expense was $34.6 million for the year ended December 31, 2018, down $2.0 million, or 5.5%, from $36.6 million for the same period in 2017. The decrease is mainly attributed to the absence of a one-time pre-tax contribution by the Company in 2017 of 609,279 shares of common stock, valued at $6.1 million, and $200,000 in cash, in connection with the establishment of the Foundation. This decrease was partially offset by increases in professional fees of $2.1 million, compensation and benefits of $830,000, occupancy expense of $848,000, and office supplies, telephone and postage of $206,000.
Noninterest expense was $9.1 million for the quarter ended December 31, 2018, up $338,000, or 3.9%, from $8.8 million for the same period in 2017. The increase is mainly attributed to increases in professional fees of $603,000 and occupancy expenses of $291,000, which was offset by a decrease in compensation and benefits of $733,000.
Asset Quality
Nonperforming assets decreased to $6.8 million, or 0.64% of total assets at December 31, 2018 from $11.4 million, or 1.23%, of total assets at December 31, 2017. The decrease is mainly attributable to a decrease in nonaccruals of $4.6 million which includes a decrease of $2.2 million in owner-occupied one-to-four family residences.
Provision for loan losses was $215,000 for the quarter ended December 31, 2018, compared to $1.2 million for the same period in 2017. Provision for loan losses was $1.2 million for the year ended December 31, 2018, compared to $1.7 million for the same period in 2017. The allowance for loan losses was $12.7 million, or 1.36%, of total loans at December 31, 2018, compared to $11.1 million, or 1.37%, of total loans at December 31, 2017. Net recoveries totaled $78,000 for the quarter ended December 31, 2018, compared to net charge-offs of $1.3 million for the same period in 2017. Net recoveries totaled $339,000 for the year ended December 31, 2018, or 0.04%, of average loans outstanding, compared to net charge offs of $850,000 for the year ended December 31, 2017, or 0.12%, of average loans outstanding.
Balance Sheet
Total assets increased $134.4 million, or 14.5%, to $1.1 billion at December 31, 2018 from $925.5 million at December 31, 2017. Net loans increased $119.8 million, or 15.0%, to $918.5 million at December 31, 2018 from $798.7 million at December 31, 2017. The increase in loans was primarily attributed to an increase of $126.1 million in mortgage loans in the investor-owned one-to-four family residential, multifamily, nonresidential, and construction and land and $2.8 million increase in business loans. The increase was offset by a decrease of $8.1 million in owner-occupied one-to-four family residential loans.
Total deposits increased $95.8 million, or 13.4%, to $809.8 million at December 31, 2018 from $714.0 million at December 31, 2017. The increase in deposits was primarily attributed to increases in certificates of deposits of $14.0 million, in demand deposits of $12.9 million, and in money market deposits of $69.7 million.
Total stockholders’ equity was $169.2 million at December 31, 2018 compared to $164.8 million at December 31, 2017. The Company and the Bank exceeded all regulatory capital requirements to be deemed well-capitalized at December 31, 2018. The Bank’s total capital to risk-weighted asset ratio was 19.39%, the tier 1 capital to risk-weighted assets ratio and the common equity tier 1 capital ratio were both 18.14%, the tier 1 capital to total assets ratio was 13.66% at December 31, 2018 compared to 20.73%, 19.48%, and 14.67% at December 31, 2017, respectively.
About PDL Community Bancorp
PDL Community Bancorp is the holding company for Ponce Bank. The Bank’s business primarily consists of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of one-to-four family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. The Bank also invests in securities, which have historically consisted of U.S. Government and federal agency securities and securities issued by government-sponsored or -owned enterprises, as well as, mortgage-backed securities and Federal Home Loan Bank stock. The Bank offers a variety of deposit accounts, including demand, savings, money market and certificates of deposit.
Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the prospectus and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorp’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.
PDL Community Bancorp and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except for share data)
December 31,
September 30,
June 30,
March 31,
December 31,
2018
2018
2018
2018
2017
ASSETS
Cash and due from banks:
Cash
$
45,225
$
5,494
$
7,088
$
6,570
$
24,746
Interest-bearing deposits in banks
24,553
16,895
42,094
52,409
34,978
Total cash and cash equivalents
69,778
22,389
49,182
58,979
59,724
Available-for-sale securities, at fair value
27,144
24,177
28,144
28,422
28,897
Loans receivable, net of allowance for loan losses
918,509
893,884
850,426
823,014
798,703
Accrued interest receivable
3,795
3,609
3,350
3,202
3,335
Premises and equipment, net
31,135
29,293
28,366
27,684
27,172
Federal Home Loan Bank Stock (FHLB), at cost
2,915
2,621
2,617
1,673
1,511
Deferred tax assets
3,811
4,118
3,805
3,801
3,909
Other assets
2,814
2,620
2,923
2,848
2,271
Total assets
$
1,059,901
$
982,711
$
968,813
$
949,623
$
925,522
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
$
809,758
$
764,792
$
753,255
$
752,267
$
713,985
Accrued interest payable
63
75
141
61
42
Advance payments by borrowers for taxes and insurance
6,037
7,219
5,491
6,999
5,025
Advances and borrowings
69,404
37,775
37,775
20,000
36,400
Other liabilities
5,467
5,706
5,573
4,582
5,285
Total liabilities
890,729
815,567
802,235
783,909
760,737
Commitments and contingencies
—
—
—
—
—
Stockholders' Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued
—
—
—
—
—
Common stock, $0.01 par value; 50,000,000 shares authorized; 18,463,028 shares issued and outstanding at December 31, 2018
185
185
185
185
185
Additional paid-in-capital
84,581
84,557
84,488
84,419
84,351
Retained earnings
98,813
96,896
96,495
95,796
94,855
Accumulated other comprehensive loss
(8,135
)
(8,101
)
(8,076
)
(8,052
)
(7,851
)
Unearned Employee Stock Ownership Plan (ESOP) shares
(6,272
)
(6,393
)
(6,514
)
(6,634
)
(6,755
)
Total stockholders' equity
169,172
167,144
166,578
165,714
164,785
Total liabilities and stockholders' equity
$
1,059,901
$
982,711
$
968,813
$
949,623
$
925,522
PDL Community Bancorp and Subsidiaries
Consolidated Statements of Income (Loss)
(Dollars in thousands, except per share data)
For the Quarters Ended
December 31,
September 30,
June 30,
March 31,
December 31,
2018
2018
2018
2018
2017
Interest and dividend income:
Interest on loans receivable
$
12,026
$
11,483
$
11,053
$
10,386
$
10,106
Interest and dividends on investment securities and FHLB stock
300
254
330
324
221
Total interest and dividend income
12,326
11,737
11,383
10,710
10,327
Interest expense:
Interest on certificates of deposit
2,078
1,942
1,847
1,750
1,599
Interest on other deposits
320
272
199
185
168
Interest on borrowings
321
276
204
98
83
Total interest expense
2,719
2,490
2,250
2,033
1,850
Net interest income
9,607
9,247
9,133
8,677
8,477
Provision for loan losses
215
602
337
94
1,219
Net interest income after provision for loan losses
9,392
8,645
8,796
8,583
7,258
Noninterest income:
Service charges and fees
217
191
214
223
224
Brokerage commissions
108
286
42
96
94
Late and prepayment charges
278
65
52
211
207
Other
212
172
216
355
169
Total noninterest income
815
714
524
885
694
Noninterest expense:
Compensation and benefits
4,371
4,547
4,563
4,458
5,104
Occupancy expense
1,879
1,585
1,717
1,491
1,588
Data processing expenses
357
342
300
408
293
Direct loan expenses
217
265
152
155
171
Insurance and surety bond premiums
94
87
99
89
64
Office supplies, telephone and postage
349
308
352
300
317
FDIC deposit insurance assessment
70
68
66
68
4
Charitable foundation contributions
—
—
—
—
—
Professional fees
1,025
978
529
623
422
Directors fees
69
69
70
69
71
Marketing and promotional expenses
68
40
55
52
79
Regulatory dues
60
63
58
56
18
Other operating expenses
515
417
494
490
605
Total noninterest expense
9,074
8,769
8,455
8,259
8,736
Income (loss) before income taxes
1,133
590
865
1,209
(784
)
Provision for income taxes
498
188
166
268
2,081
Net income (loss)
$
635
$
402
$
699
$
941
$
(2,865
)
Earnings per share:
Basic
$
0.04
$
0.02
$
0.04
$
0.05
$
(0.16
)
Diluted
$
0.04
$
0.02
$
0.04
$
0.05
$
(0.16
)
PDL Community Bancorp and Subsidiaries
Consolidated Statements of Income (Loss)
(Dollars in thousands, except per share data)
For the Years Ended December 31,
2018
2017
Variance $
Variance %
Interest and dividend income:
Interest on loans receivable
$
44,948
$
38,172
$
6,776
17.75
%
Interest and dividends on investment securities and FHLB stock
1,208
817
391
47.86
%
Total interest and dividend income
46,156
38,989
7,167
18.38
%
Interest expense:
Interest on certificates of deposit
7,617
5,917
1,700
28.73
%
Interest on other deposits
974
656
318
48.48
%
Interest on borrowings
899
210
689
328.10
%
Total interest expense
9,490
6,783
2,707
39.91
%
Net interest income
36,666
32,206
4,460
13.85
%
Provision for loan losses (recovery)
1,249
1,716
(467
)
(27.21
%)
Net interest income after provision for loan losses
35,417
30,490
4,927
16.16
%
Noninterest income:
Service charges and fees
845
909
(64
)
(7.04
%)
Brokerage commissions
533
547
(14
)
(2.56
%)
Late and prepayment charges
606
810
(204
)
(25.19
%)
Other
954
838
116
13.84
%
Total noninterest income
2,938
3,104
(166
)
(5.35
%)
Noninterest expense:
Compensation and benefits
17,939
17,109
830
4.85
%
Occupancy expense
6,673
5,825
848
14.56
%
Data processing expenses
1,408
1,470
(62
)
(4.22
%)
Direct loan expenses
788
739
49
6.63
%
Insurance and surety bond premiums
369
269
100
37.17
%
Office supplies, telephone and postage
1,309
1,103
206
18.68
%
FDIC deposit insurance assessment
272
250
22
8.80
%
Charitable foundation contributions
—
6,293
(6,293
)
100.00
%
Professional fees
3,154
1,060
2,094
197.55
%
Directors fees
277
289
(12
)
(4.15
%)
Marketing and promotional expenses
215
308
(93
)
(30.19
%)
Regulatory dues
238
262
(24
)
(9.16
%)
Other operating expenses
1,915
1,580
335
21.20
%
Total noninterest expense
34,557
36,557
(2,000
)
(5.47
%)
Income (loss) before income taxes
3,798
(2,963
)
6,761
(228.18
%)
Provision for income taxes
1,121
1,424
(303
)
(21.28
%)
Net income (loss)
$
2,677
$
(4,387
)
$
7,064
(161.02
%)
Earnings per share:
Basic
$
0.15
$
(0.16
)
N/A
N/A
Diluted
$
0.15
$
(0.16
)
N/A
N/A
PDL Community Bancorp and Subsidiaries
Key Metrics
At or For the Years Ended December 31,
2018
2017
2016
2015
2014
Performance Ratios:
Return on average assets
0.28
%
(0.51
%)
0.20
%
0.35
%
0.35
%
Return on average equity
1.60
%
(3.52
%)
1.53
%
2.76
%
2.80
%
Net interest rate spread (1)
3.57
%
3.76
%
3.82
%
3.96
%
4.26
%
Net interest margin (2)
3.92
%
4.02
%
4.02
%
4.14
%
4.42
%
Noninterest expense to average assets
3.56
%
4.28
%
3.84
%
3.67
%
3.59
%
Efficiency ratio (3)
87.26
%
103.53
%
92.15
%
86.23
%
79.34
%
Average interest-earning assets to average interest- bearing liabilities
134.52
%
130.35
%
123.84
%
121.66
%
119.27
%
Average equity to average assets
17.26
%
14.58
%
12.81
%
12.78
%
12.58
%
Capital Ratios:
Total capital to risk weighted assets (bank only)
19.39
%
20.73
%
19.21
%
20.72
%
20.32
%
Tier 1 capital to risk weighted assets (bank only)
18.14
%
19.48
%
17.96
%
19.46
%
19.06
%
Common equity Tier 1 capital to risk-weighted assets (bank only)
18.14
%
19.48
%
17.96
%
19.46
%
N/A
Tier 1 capital to average assets (bank only)
13.66
%
14.67
%
13.32
%
13.67
%
13.46
%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans
1.36
%
1.37
%
1.57
%
1.64
%
1.71
%
Allowance for loan losses as a percentage of nonperforming loans
186.77
%
97.05
%
132.15
%
99.78
%
58.79
%
Net (charge-offs) recoveries to average outstanding loans during the year
0.04
%
(0.12
%)
0.13
%
(0.06
%)
(0.30
%)
Non-performing loans as a percentage of total loans
0.73
%
1.41
%
1.19
%
1.65
%
2.91
%
Non-performing loans as a percentage of total assets
0.64
%
1.23
%
1.04
%
1.35
%
2.28
%
Total non-performing assets as a percentage of total assets
0.64
%
1.23
%
1.04
%
1.36
%
2.30
%
Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets
1.63
%
2.72
%
3.50
%
4.19
%
5.33
%
Other:
Number of offices
14
14
14
14
14
Number of full-time equivalent employees
181
177
174
175
164
(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of average 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.
PDL Community Bancorp and Subsidiaries
Loan Portfolio
At December 31,
2018
2017
2016
2015
2014
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned
$
303,197
32.61
%
$
287,158
35.51
%
$
227,409
34.90
%
$
203,239
35.25
%
$
190,726
34.54
%
Owner-Occupied
92,788
9.98
%
100,854
12.47
%
97,631
14.98
%
106,053
18.39
%
105,222
19.05
%
Multifamily residential
232,509
25.01
%
188,550
23.31
%
158,200
24.28
%
122,836
21.30
%
110,978
20.10
%
Nonresidential properties
196,917
21.18
%
151,193
18.70
%
121,500
18.64
%
106,462
18.46
%
111,806
20.24
%
Construction and land
87,572
9.42
%
67,240
8.31
%
30,340
4.66
%
22,883
3.97
%
18,707
3.39
%
Total mortgage loans
912,983
98.20
%
794,995
98.30
%
635,080
97.46
%
561,473
97.37
%
537,439
97.32
%
Nonmortgage loans:
Business loans
15,710
1.69
%
12,873
1.59
%
15,719
2.41
%
14,350
2.49
%
14,206
2.57
%
Consumer loans
1,068
0.11
%
886
0.11
%
843
0.13
%
788
0.14
%
614
0.11
%
Total nonmortgage loans
16,778
1.80
%
13,759
1.70
%
16,562
2.54
%
15,138
2.63
%
14,820
2.68
%
Total loans
929,761
100.00
%
808,754
100.00
%
651,642
100.00
%
576,611
100.00
%
552,259
100.00
%
Net deferred loan origination costs
1,407
1,020
711
535
479
Allowance for losses on loans
(12,659
)
(11,071
)
(10,205
)
(9,484
)
(9,449
)
Loans, net
$
918,509
$
798,703
$
642,148
$
567,662
$
543,289
PDL Community Bancorp and Subsidiaries
Nonperforming Assets
At December 31,
2018
2017
2016
2015
2014
(Dollars in thousands)
Nonaccrual loans:
Mortgage loans:
1-4 family residential
Investor owned
$
205
$
1,034
$
809
$
1,635
$
2,721
Owner occupied
1,092
2,624
1,463
1,078
1,036
Multifamily residential
16
521
—
—
2,957
Nonresidential properties
706
1,387
1,614
1,660
72
Construction and land
1,115
1,075
1,145
637
259
Nonmortgage loans:
Business
—
147
22
13
14
Consumer
—
—
—
—
—
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)
$
3,134
$
6,788
$
5,053
$
5,023
$
7,059
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned
$
1,053
$
1,144
$
1,240
$
2,599
$
4,585
Owner occupied
1,987
2,693
646
1,055
1,923
Multifamily residential
—
—
—
—
—
Nonresidential properties
604
783
783
828
2,427
Construction and land
—
—
—
—
—
Nonmortgage loans:
Business
—
—
—
—
79
Consumer
—
—
—
—
—
Total non-accruing troubled debt restructured loans
3,644
4,620
2,669
4,482
9,014
Total nonaccrual loans
$
6,778
$
11,408
$
7,722
$
9,505
$
16,073
Real estate owned:
Mortgage loans:
1-4 family residential
Investor owned
$
—
$
—
$
—
$
—
$
—
Owner occupied
Multifamily residential
—
—
—
—
—
Nonresidential properties
—
—
—
—
—
Construction and land
—
—
—
76
162
Nonmortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
—
Total real estate owned
—
—
—
76
162
Total nonperforming assets
$
6,778
$
11,408
$
7,722
$
9,581
$
16,235
Accruing loans past due 90 days or more:
Mortgage loans:
1-4 family residential
Investor owned
$
—
$
7
$
—
$
—
$
—
Owner occupied
—
—
—
—
—
Multifamily residential
—
—
—
—
—
Nonresidential properties
—
—
—
—
126
Construction and land
—
—
—
—
1,257
Nonmortgage loans:
Business
—
—
—
—
600
Consumer
—
—
—
—
—
Total accruing loans past due 90 days or more
$
—
$
7
$
—
$
—
$
1,983
Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned
$
5,192
$
6,559
$
6,422
$
6,579
$
5,179
Owner occupied
3,456
4,756
7,271
8,326
9,661
Multifamily residential
—
—
—
—
—
Nonresidential properties
1,438
1,958
4,066
4,186
3,590
Construction and land
—
—
—
—
—
Nonmortgage loans:
Business
374
477
593
814
970
Consumer
—
—
—
—
—
Total accruing troubled debt restructured loans
$
10,460
$
13,750
$
18,352
$
19,905
$
19,400
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans
$
17,238
$
25,165
$
26,074
$
29,486
$
37,618
Total nonperforming loans to total loans
0.73
%
1.41
%
1.19
%
1.65
%
2.91
%
Total nonperforming assets to total assets
0.64
%
1.23
%
1.04
%
1.35
%
2.28
%
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets
1.63
%
2.72
%
3.50
%
4.19
%
5.33
%
PDL Community Bancorp and Subsidiaries
Average Balance Sheets
For the Years Ended December 31,
2018
2017
2016
Average
Average
Average
Average
Average
Average
Outstanding
Yield/Rate
Outstanding
Yield/Rate
Outstanding
Yield/Rate
Balance
Interest
(1
)
Balance
Interest
(1
)
Balance
Interest
(1
)
(Dollars in thousands)
Interest-earning assets:
Loans
$
867,030
$
44,948
5.18
%
$
735,566
$
38,172
5.19
%
$
605,878
$
32,660
5.39
%
Available-for-sale securities
26,424
381
1.44
%
36,240
480
1.32
%
70,142
1,012
1.44
%
Other (2)
42,937
828
1.93
%
29,289
389
1.33
%
15,365
69
0.45
%
Total interest-earning assets
936,391
46,157
4.93
%
801,095
39,041
4.87
%
691,385
33,741
4.88
%
Non-interest-earning assets
33,610
53,809
33,759
Total assets
$
970,001
$
854,904
$
725,144
Interest-bearing liabilities:
Savings accounts
$
125,533
$
766
0.61
%
$
128,282
$
506
0.39
%
$
126,573
$
327
0.26
%
Interest-bearing demand
88,295
205
0.23
%
74,824
146
0.19
%
54,493
96
0.18
%
Certificates of deposit
439,737
7,617
1.73
%
387,232
5,917
1.53
%
371,313
5,502
1.48
%
Total deposits
653,565
8,588
1.31
%
590,338
6,569
1.11
%
552,379
5,925
1.07
%
Advance payments by borrowers
7,762
4
0.05
%
6,292
4
0.06
%
4,770
4
0.09
%
Borrowings
34,886
899
2.58
%
17,955
262
1.46
%
1,145
7
0.61
%
Total interest-bearing liabilities
696,213
9,491
1.36
%
614,585
6,835
1.11
%
558,294
5,936
1.06
%
Non-interest-bearing liabilities:
Non-interest-bearing demand
100,490
—
112,113
—
70,407
—
Other non-interest-bearing liabilities
5,859
—
3,578
—
3,519
—
Total non-interest-bearing liabilities
106,349
—
115,691
—
73,926
—
Total liabilities
802,562
9,491
730,276
6,835
632,220
5,936
Total equity
167,439
124,628
92,924
Total liabilities and total equity
$
970,001
1.36
%
$
854,904
1.11
%
$
725,144
1.06
%
Net interest income
$
36,666
$
32,206
$
27,805
Net interest rate spread (3)
3.57
%
3.76
%
3.82
%
Net interest-earning assets (4)
$
240,178
$
186,510
$
133,091
Net interest margin (5)
3.92
%
4.02
%
4.02
%
Average interest-earning assets to
interest-bearing liabilities
134.50
%
130.35
%
123.84
%
(1) Annualized where appropriate.
(2) Includes FHLB demand accounts and FHLB stock dividends.
(3) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5) Net interest margin represents net interest income divided by average total interest-earning assets.
PDL Community Bancorp and Subsidiaries
Average Balance Sheets
For the Three Months Ended December 31,
2018
2017
Average
Average
Outstanding
Average
Outstanding
Average
Balance
Interest
Yield/Rate (1)
Balance
Interest
Yield/Rate (1)
(Dollars in thousands)
Interest-earning assets:
Loans
$
916,625
$
12,026
5.21
%
$
807,932
$
10,107
4.96
%
Available-for-sale securities
23,477
82
1.39
%
29,156
104
1.42
%
Other (2)
36,481
218
2.37
%
29,362
118
1.59
%
Total interest-earning assets
976,583
12,326
5.01
%
866,450
10,329
4.73
%
Non-interest-earning assets
33,003
113,915
Total assets
$
1,009,586
$
980,365
Interest-bearing liabilities:
Savings accounts
$
124,786
$
263
0.84
%
$
125,422
$
131
0.41
%
Interest-bearing demand
99,115
55
0.22
%
75,770
38
0.20
%
Certificates of deposit
444,950
2,078
1.85
%
400,818
1,599
1.58
%
Total deposits
668,851
2,396
1.42
%
602,010
1,768
1.17
%
Advance payments by borrowers
8,999
1
0.04
%
7,226
1
0.05
%
Borrowings
49,296
321
2.58
%
27,864
84
1.20
%
Total interest-bearing liabilities
727,146
2,718
1.48
%
637,100
1,853
1.15
%
Non-interest-bearing liabilities:
Non-interest-bearing demand
107,145
—
129,593
—
Other non-interest-bearing liabilities
6,763
—
3,333
—
Total non-interest-bearing liabilities
113,908
—
132,926
—
Total liabilities
841,054
2,718
770,026
1,853
Total equity
168,532
210,339
Total liabilities and total equity
$
1,009,586
1.48
%
$
980,365
1.15
%
Net interest income
$
9,608
$
8,476
Net interest rate spread (3)
3.52
%
3.58
%
Net interest-earning assets (4)
$
249,437
$
229,350
Net interest margin (5)
3.90
%
3.88
%
Average interest-earning assets to
interest-bearing liabilities
134.30
%
136.00
%
(1) Annualized where appropriate.
(2) Includes FHLB demand accounts and FHLB stock dividends.
(3) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5) Net interest margin represents net interest income divided by average total interest-earning assets.
Source: PDL Community Bancorp