Categories: Wire Stories

PDL Community Bancorp Announces 2021 First Quarter Results

NEW 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     2020     2020     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       2,739       2,739       —       —  
Mortgage loans held for sale, at fair value   13,725       35,406       13,100       1,030       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   66       60       58       48       86  
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       185       185       185       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   28       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     2020     2020     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   2       10       5       3       66  
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       22       50  
Late and prepayment charges   244       81       145       13       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   38       —       127       145       234  
Directors fees   69       69       69       69       69  
Regulatory dues   60       59       49       56       46  
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     2       66       (64 )     (96.97 %)
Interest and dividend on securities and FHLBNY stock     250       182       68       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       97       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       81       32.66 %
Brokerage commissions     223       50       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       25       20.66 %
Office supplies, telephone and postage     409       316       93       29.43 %
Professional fees     1,262       1,627       (365 )     (22.43 %)
Marketing and promotional expenses     38       234       (196 )     (83.76 %)
Directors fees     69       69       —       — %
Regulatory dues     60       46       14       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     N/A  
Diluted   $ 0.15     $ (0.07 )   N/A     N/A  
Weighted average shares outstanding:                                
Basic     16,548,196       16,800,538     N/A     N/A  
Diluted     16,548,196       16,800,538     N/A     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     2020     2020     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 %     0.86 %     0.86 %     0.95 %     0.85 %
Total non-performing assets as a percentage of total assets   0.86 %     0.86 %     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) 20     20     20     14     14  
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     2020     2020     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     2020     2020     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     2020     2020     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       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     $ 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 %     0.86 %     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                     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       83     1.83 %  
Other (4)   46,581       76     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     $ 38     0.47 %     $ 29,026     $ 38     0.53 %  
Money market   277,104       304     0.44 %       160,471       618     1.54 %  
Savings   126,961       39     0.12 %       113,710       35     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       1     0.05 %       7,980       1     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     2020     2020     2020  
                             
  (Dollars in thousands, except share and per share data)  
Other Data                                      
Common shares issued   18,463,028       18,463,028       18,463,028       18,463,028       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

Alex

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