PDL Community Bancorp Announces 2021 Third Quarter Results

NEW YORK, Nov. 02, 2021 (Globalrelease Wire) — 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
[email protected]
718-931-9000

Leave a Reply

Your email address will not be published. Required fields are marked *