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PDL Community Bancorp Announces 2020 Third Quarter Results

Ponce Bank
·30 min read

NEW YORK, Nov. 02, 2020 (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 $4.0 million, or $0.24 per basic and diluted share, for the third quarter of 2020, compared to a net loss of ($571,000), or ($0.03) per basic and diluted share, for the prior quarter and net income of $709,000, or $0.04 per basic and diluted share, for the third quarter of 2019.

Ponce Bank is a federal stock savings association with 13 branches in the New York City metropolitan area, including one in Union City, New Jersey. The Bank is designated a Minority Depository Institution, a Community Development Financial Institution and a certified U.S. Small Business Administration lender. Mortgage World is a licensed mortgage lender in five states. As a Federal Housing Administration (FHA) approved Title II lender, Mortgage World originates and sells to investors single family loans that are guaranteed by the FHA, as well as conventional mortgages.

The Companys net income for the nine months ended September 30, 2020 was $2.2 million, or $0.13 per basic and diluted share, compared to net income of $2.3 million, or $0.13 per basic and diluted share, for the nine months ended September 30, 2019. This represented a decrease in net income of (4.4%).

Carlos P. Naudon, the Companys President and CEO, noted 2020 continues to be a year of investing in the safety of our people and the future of our organization and our communities with the clear goal of enhancing stakeholder values. Much of this investment consists of one-time, non-recurring expenditures. Although COVID-19 pandemic constrained us, we were able to grow our Company to $1.3 billion in assets, and continue our key investments: the implementation of GPS, our Salesforce based CRM, spending $1.3 million in one-time costs; meeting the needs of Ponce Bankers by incurring non-recurring costs of $852,000 to maintain their jobs, temporarily enhance their benefits and protect them from COVID-19 pandemic; advancing our ability to operate electronically, without paper, by investing $982,000 in electronic imaging; and, in addition to the foregoing non-recurring expenses, protecting our asset quality by increasing ALLL by $2.0 million in response to plausible COVID-19 pandemic repercussions. We were able to offset the combined one-time expenses and the increase in ALLL of $5.1 million with the $4.4 million gain recognized from the sale of the real property associated with a former branch, as we further unlock the hidden values in our assets.

Steven A. Tsavaris, the Companys Executive Chairman, added the closing of the Companys $1.8 million acquisition of Mortgage World in July and its contribution to our earnings of $599,000 in third quarter of 2020 reflects the Companys potential quick payback, although the results do not reflect the expected integration of the Banks and Mortgage Worlds operations and sales capabilities. We are pleased to continue to build shareholders value by repurchasing shares. As of October 28, 2020 a total of 360,184 shares have been repurchased in 2020.

Net Income (Loss)

Net income for the three months ended September 30, 2020 was $4.0 million, compared to $571,000 net loss for the three months ended June 30, 2020. The increase in net income reflects a $6.7 million increase in non-interest income, mainly as a result of a $4.4 million gain recognized from the sale of real property, a $1.2 million, or 9.8%, increase in interest and dividend income, a $120,000, or 4.2%, decrease in interest expense, offset by a $1.9 million, or 18.1%, increase in non-interest expense, a $1.2 million increase in provision for income taxes and a $349,000, increase in provision for loan losses.

Net income for the quarter ended September 30, 2020 was $4.0 million, compared to $709,000 in net income for the third quarter of 2019. The increase in net income reflects a $6.7 million increase in non-interest income, mainly as a result of a $4.4 million gain recognized from the sale of real property, a $650,000, or 5.0%, increase in interest and dividend income and a $436,000, or 13.7%, decrease in interest expense, offset by a $3.0 million, or 32.1%, increase in non-interest expense, a $860,000, increase in provision for income taxes and a $606,000 increase in provision for loan losses.

Net income for the nine months ended September 30, 2020 was $2.2 million, compared to $2.3 million in net income for the nine months ended September 30, 2019. The change in net income reflects a $6.4 million, or 318.6%, increase in non-interest income, mainly as a result of a $4.4 million gain on the sale of real property, a $1.3 million, or 3.4%, increase in interest and dividend income, a $448,000, or 4.9%, decrease in interest expense and a $69,000, decrease in provision for income taxes, offset by a $6.5 million, or 23.8%, increase in non-interest expense and a $1.9 million increase in provision for loan losses in response to the COVID-19 pandemic.

Net Interest Margin

Net interest margin increased by 20 basis points to 3.65% for the three months ended September 30, 2020 from 3.45% for the three months ended June 30, 2020, while the net interest rate spread increased by 20 basis points to 3.33% from 3.13% for the same periods. Average interest-earning assets increased by $73.9 million, or 6.7%, mainly as a result of $85.1 million in average outstanding PPP loans, to $1.2 billion for the three months ended September 30, 2020 from $1.1billion for the three months ended June 30, 2020. The average yield on interest-earning assets increased by 8 basis points to 4.57% from 4.49%, for the same periods. Average interest-bearing liabilities increased by $32.1 million, or 3.8%, to $881.0 million for the three months ended September 30, 2020 from $848.9 million for the three months ended June 30, 2020. The average rate on interest-bearing liabilities decreased by 12 basis points to 1.24% from 1.36% for the same periods.

Net interest margin decreased by 18 basis points to 3.65% for the three months ended September 30, 2020 from 3.83% for the three months ended September 30, 2019, while the net interest rate spread decreased by 11 basis points to 3.33% from 3.44% for the same periods. Average interest-earning assets increased by $172.7 million, or 17.1%, mainly as a result of $85.1 million in average outstanding PPP loans, to $1.2 billion, for the three months ended September 30, 2020 from $1.0 billion for the three months ended September 30, 2019. The average yield on interest-earning assets decreased by 51 basis points to 4.57% from 5.08%, for the same periods. Average interest-bearing liabilities increased by $111.5 million, or 14.5%, to $881.0 million, for the three months ended September 30, 2020 from $769.4 million for the three months ended September 30, 2019. The average rate on interest-bearing liabilities decreased by 40 basis points to 1.24% from 1.64% for the same periods.

Non - interest Income

Total non-interest income increased $6.7 million to $7.3 million for the three months ended September 30, 2020 from $574,000 for the three months ended June 30, 2020. The increase in non-interest income for the three months ended September 30, 2020 compared to the three months ended June 30, 2020 was due to a $4.4 million gain on the sale of real property, combined with $2.2 million in gain on sale of mortgage loans, loan origination fees, brokerage commissions and other non-interest income attributable to Mortgage World. Other increases in non-interest income were $132,000 in late and prepayment charges related to mortgage loans and $91,000 in service charges and fees. The increase in non-interest income was offset by a decrease of $23,000 in other non-interest income.

Total non-interest income increased $6.7 million to $7.3 million for the three months ended September 30, 2020 from $579,000 for the three months ended September 30, 2019. The increase in non-interest income for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was due to a $4.4 million gain on the sale of real property, combined with $2.2 million in gain on sale of mortgage loans, loan origination fees, brokerage commissions and other non-interest income attributable to Mortgage World. The increase in non-interest income was slightly offset by a decrease of $16,000 in late and prepayment charges related to mortgage loans, service charges and fees.

Non - interest Expense

Total non-interest expense increased $1.9 million, or 18.1%, to $12.3 million for the three months ended September 30, 2020, compared to $10.4 million for the three months ended June 30, 2020. The increase in non-interest expense was primarily attributable to an increase of $909,000 in compensation and benefits expense, of which $817,000 was attributable to Mortgage World. Other increases in non-interest expense were $307,000 in occupancy and equipment expense due to new software licenses and security services, $238,000 in direct loan expenses, $217,000 in professional fees, $100,000 in data processing expenses as a result of system enhancements and implementation charges related to new software upgrades, $74,000 in office supplies, telephone and postage, $62,000 in other operating expenses mainly due to employment agency fees and $10,000 in insurance and surety bond premiums. The increase in non-interest expense was offset by decreases of $18,000 in marketing and promotional expenses and $7,000 in regulatory dues. The increase of $217,000 in professional fees was mainly attributable to an increase in consulting fees of $288,000 and an increase in legal fees of $81,000, offset by a decrease in professional services of $134,000 related to the document imaging project adopted in late 2019. Included in non-interest expense for the three months ended September 30, 2020 is $330,000 of additional expenses incurred as a result of the COVID-19 pandemic.

Total non-interest expense increased $3.0 million, or 32.1%, to $12.3 million for the three months ended September 30, 2020, compared to $9.3 million for the three months ended September 30, 2019. The increase in non-interest expense was primarily attributable to an increase of $887,000 in compensation and benefits expense, of which $817,000 was attributable to Mortgage World. Other increases in non-interest expenses were $641,000 in occupancy and equipment expense due to new software licenses and security services, $597,000 in professional fees, $259,000 in other operating expenses mainly due to employment agency fees, $254,000 in direct loan expenses, $198,000 in data processing expenses as a result of system enhancements and implementation charges related to new software upgrades, $105,000 in office supplies, telephone and postage and $81,000 in marketing and promotional expenses, offset by decreases of $21,000 in regulatory dues and $8,000 in insurance and surety bond premiums. The increase of $597,000 in professional fees was mainly attributable to increases in consulting fees of $434,000 and professional services of $50,000 related to the document imaging project adopted in late 2019. Included in non-interest expense for the three months ended September 30, 2020 is $330,000 of additional expenses incurred as a result of the COVID-19 pandemic. Excluding $1.6 million in non-interest expense related to Mortgage World, total non-interest expense increased $1.4 million, or 15.4%, to $10.8 million for the three months ended September 30, 2020 compared to the three months ended September 30, 2019.

Asset Quality

Total non-performing assets were $11.0 million, or 0.86% of total assets, at September 30, 2020, a decrease of $597,000 from $11.6 million, or 0.95% of total assets, at June 30, 2020 and a decrease of $620,000 from $11.6 million, or 1.10% of total assets, at December 31, 2019. Comparing non-performing assets at September 30, 2020 to June 30, 2020, total non-accruals inclusive of troubled debt restructured (TDR) loans related to nonresidential loans decreased by $526,000 and 1-4 family residential loans decreased by $281,000. Comparing nonperforming assets at September 30, 2020 to December 31, 2019, total non-accruals inclusive of TDR loans related to nonresidential loans increased by $284,000, offset by a decrease in construction and land loans of $1.1 million.

The Company continues to assess the economic impact of the COVID-19 pandemic on borrowers and believes that it is likely that the pandemic will be a detriment to their ability to repay in the short-term and that the likelihood of long-term detrimental effects will depend significantly on the resumption of normalized economic activities, a factor not yet determinable. The allowance for loan losses was $14.4 million, or 1.28% of total loans (total loans include $86.2 million of PPP loans) at September 30, 2020, compared to $13.8 million, or 1.27% of total loans, at June 30, 2020 and $12.3 million, or 1.28% of total loans, at December 31, 2019. Excluding PPP loans, the allowance for loan losses was 1.39% of total loans at September 30, 2020 and 1.38% of total loans at June 30, 2020. Net recoveries totaled $1,000 for the quarter ended September 30, 2020, $6,000 for the quarter ended June 30, 2020 and $74,000 for the quarter ended December 31, 2019.

Through October 20, 2020, 419 loans aggregating $381.7 million had requested forbearance primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months. Of those 419 loans, 323 loans aggregating $290.7 million are no longer in deferment and are now performing. Of the 419 loans, 96 in the amount of $91.0 million remained in deferment. Of the 96 loans in deferment, 92 loans in the amount of $87.1 million are in renewed forbearance and four loans in the amount of $3.9 million are in their original forbearance. All of these loans had been performing in accordance with their contractual obligations prior to the granting of the initial forbearance. Forbearance periods currently do not extend into 2021. 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.

Balance Sheet

Total assets increased $223.6 million, or 21.2%, to $1.3 billion at September 30, 2020 from $1.1 billion at December 31, 2019. The increase in total assets is mainly attributable to increases in net loans receivable and mortgage loans held for sale at fair value of $165.3 million, of which $86.2 million related to PPP loans, cash and cash equivalents of $48.4 million, other assets of $8.2 million, accrued interest receivable of $6.0 million, investments in other banks of $2.7 million and FHLBNY stock of $679,000, offset by decreases in available-for-sale securities of $7.0 million, $633,000 in net premises and equipment and deferred taxes of $138,000.

Cash and cash equivalents increased $48.4 million, or 174.9%, to $76.1 million at September 30, 2020, compared to $27.7 million at December 31, 2019. The increase in cash and cash equivalents was primarily the result of increases of $191.2 million in net deposits, of which $41.9 million is related to net PPP funding, $17.3 million from maturities and calls of available-for-sale securities, $12.9 million in net advances from FHLBNY and $4.7 million proceeds from the sale of real property. The increase in cash and cash equivalents was offset by increases of $165.3 million in net loans receivable and mortgage loans held for sale at fair value, of which $86.2 million related to PPP loans, $10.1 million in purchases of available-for-sale securities and the $1.8 million purchase price related to the acquisition of Mortgage World.

Net loans receivable at September 30, 2020 increased $153.2 million, or 16.0%, to $1.1 billion from $ 955.7 million at December 31, 2019. The increase was primarily due to increases of $85.8 million, or 789.0%, in business loans, of which $86.2 million related to PPP loans, $34.5 million, or 13.8%, in multifamily residential loans, $16.6 million, or 4.2%, in 1-4 family residential loans, $10.5 million, or 5.1%, in nonresidential properties loans, $8.6 million, or 696.6%, in consumer loans and $412,000, or 0.4%, in construction and land loans. The increase in net loans receivable was offset by a decrease of $1.2 million, or 60.1%, in net deferred loan origination costs. The increase in the allowance for losses on loans of $2.1 million, substantially related to the COVID-19 pandemic, also decreased net loans receivable.

Total deposits increased $191.2 million, or 24.4%, to $973.2 million at September 30, 2020 from $782.0 million at December 31, 2019. The increase in deposits was mainly attributable to increases of $124.7 million, or 44.1%, in NOW, money market, reciprocal deposits and savings accounts, $76.8 million, or 70.1%, in demand deposits, of which $41.9 million is related to net PPP funding, offset by a decrease of $10.3 million, or 2.7%, in total certificates of deposit, which includes brokered certificates of deposit and listing service deposits. The $124.7 million increase in NOW, money market, reciprocal deposits and savings accounts was mainly attributable to increases of $62.2 million, or 71.7%, in money market accounts, $60.7 million, or 127.4%, in reciprocal deposits and a $5.1 million, or 4.4%, in savings accounts, offset by a decrease of $3.2 million, or 9.9%, in NOW/IOLA accounts.

Net advances from the FHLBNY increased $12.9 million, or 12.3%, to $117.3 million at September 30, 2020 from $104.4 million at December 31, 2019. The net increase in FHLBNY advances has a weighted average rate of 0.9%.

Total stockholders equity remained substantially the same, $158.4 million at September 30, 2020 and December 31, 2019. The $28,000 decrease in stockholders equity was mainly attributable to $3.8 million in stock repurchases, offset by increases of $2.2 million in net income, $1.0 million related to restricted stock units and stock options, $353,000 related to the Companys Employee Stock Ownership Plan and $148,000 related to unrealized gains on available-for-sale securities.

The Company adopted a share repurchase program effective March 25, 2019 which expired on September 24, 2019. Under the repurchase program, the Company was permitted to repurchase up to 923,151 shares of the Companys stock, or approximately 5% of the Companys then current issued and outstanding shares. On November 13, 2019, the Company adopted a second share repurchase program. Under this second program, the Company was permitted to repurchase up to 878,835 shares of the Companys stock, or approximately 5% of the Companys then current issued and outstanding shares. The Companys share second repurchase program was terminated on March 27, 2020. On June 1, 2020, the Company adopted a third share repurchase program. Under this third program, the Company is permitted to repurchase up to 864,987 shares of the Companys stock, or approximately 5% of the Companys then current issued and outstanding shares. The repurchase program may be suspended or terminated at any time without prior notice, and it will expire no later than November 30, 2020.

As of September 30, 2020, the Company had repurchased a total of 1,436,814 shares under the repurchase programs at a weighted average price of $13.62 per share, of which 1,346,679 are reported as treasury stock. Of the 1,436,814 shares repurchased, 90,135 shares have been granted to directors and executive officers under the Companys 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2019.

About PDL Community Bancorp

PDL Community Bancorp is the financial holding company for Ponce Bank and Mortgage World Bankers, Inc. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. The Banks business primarily consists of taking deposits from the general public and to a lesser extent 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. The 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 licensed mortgage lender 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 Companys 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 Companys 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 Companys loans; the anticipated impact of the COVID-19 novel coronavirus pandemic and the Companys attempts at mitigation; changes in the value of securities in the Companys 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 Companys financial statements will become impaired; demand for loans in the Companys market area; the Companys ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the prospectus and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the SEC), which are available at the SECs website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorps 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.

Contact:
Frank Perez
frank.perez@poncebank.net
718-931-9000

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,

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

14,302

 

 

$

15,875

 

 

$

13,165

 

 

$

6,762

 

 

$

6,425

 

Interest-bearing deposits in banks

 

61,790

 

 

 

60,756

 

 

 

90,795

 

 

 

20,915

 

 

 

40,965

 

Total cash and cash equivalents

 

76,092

 

 

 

76,631

 

 

 

103,960

 

 

 

27,677

 

 

 

47,390

 

Available-for-sale securities, at fair value

 

14,512

 

 

 

13,800

 

 

 

19,140

 

 

 

21,504

 

 

 

51,966

 

Investments in other banks

 

2,739

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans held for sale, at fair value

 

13,100

 

 

 

1,030

 

 

 

1,030

 

 

 

1,030

 

 

 

 

Loans receivable, net

 

1,108,956

 

 

 

1,072,417

 

 

 

972,979

 

 

 

955,737

 

 

 

948,548

 

Accrued interest receivable

 

9,995

 

 

 

7,677

 

 

 

4,198

 

 

 

3,982

 

 

 

3,893

 

Premises and equipment, net

 

32,113

 

 

 

32,102

 

 

 

32,480

 

 

 

32,746

 

 

 

32,805

 

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

 

6,414

 

 

 

6,422

 

 

 

7,889

 

 

 

5,735

 

 

 

8,659

 

Deferred tax assets

 

3,586

 

 

 

4,328

 

 

 

4,140

 

 

 

3,724

 

 

 

3,925

 

Other assets

 

9,844

 

 

 

5,824

 

 

 

5,127

 

 

 

1,621

 

 

 

2,802

 

Total assets

$

1,277,351

 

 

$

1,220,231

 

 

$

1,150,943

 

 

$

1,053,756

 

 

$

1,099,988

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

973,244

 

 

$

936,219

 

 

$

829,741

 

 

$

782,043

 

 

$

757,845

 

Accrued interest payable

 

58

 

 

 

48

 

 

 

86

 

 

 

97

 

 

 

81

 

Advance payments by borrowers for taxes and insurance

 

7,739

 

 

 

6,007

 

 

 

8,295

 

 

 

6,348

 

 

 

7,780

 

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

 

117,283

 

 

 

117,284

 

 

 

152,284

 

 

 

104,404

 

 

 

169,404

 

Warehouse lines of credit

 

9,065

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loan fundings payable

 

1,457

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

10,131

 

 

 

5,674

 

 

 

4,794

 

 

 

2,462

 

 

 

4,324

 

Total liabilities

 

1,118,977

 

 

 

1,065,232

 

 

 

995,200

 

 

 

895,354

 

 

 

939,434

 

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

 

(18,281

)

 

 

(17,172

)

 

 

(16,490

)

 

 

(14,478

)

 

 

(12,663

)

Additional paid-in-capital

 

85,817

 

 

 

85,481

 

 

 

85,132

 

 

 

84,777

 

 

 

85,750

 

Retained earnings

 

95,913

 

 

 

91,904

 

 

 

92,475

 

 

 

93,688

 

 

 

101,140

 

Accumulated other comprehensive income (loss)

 

168

 

 

 

150

 

 

 

110

 

 

 

20

 

 

 

(7,947

)

Unearned compensation ESOP

 

(5,428

)

 

 

(5,549

)

 

 

(5,669

)

 

 

(5,790

)

 

 

(5,911

)

Total stockholders' equity

 

158,374

 

 

 

154,999

 

 

 

155,743

 

 

 

158,402

 

 

 

160,554

 

Total liabilities and stockholders' equity

$

1,277,351

 

 

$

1,220,231

 

 

$

1,150,943

 

 

$

1,053,756

 

 

$

1,099,988

 


PDL Community Bancorp and Subsidiaries
Co nsolidated Statements of Income
(Dollars in thousands, except per share data)

 

For the Quarters Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

$

13,375

 

 

$

12,162

 

 

$

12,782

 

 

$

12,488

 

 

$

12,663

 

Interest on deposits due from banks

 

5

 

 

 

3

 

 

 

66

 

 

 

73

 

 

 

117

 

Interest and dividend on available-for-sale securities and FHLBNY stock

 

223

 

 

 

228

 

 

 

182

 

 

 

181

 

 

 

173

 

Total interest and dividend income

 

13,603

 

 

 

12,393

 

 

 

13,030

 

 

 

12,742

 

 

 

12,953

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

1,597

 

 

 

1,730

 

 

 

1,827

 

 

 

1,921

 

 

 

1,896

 

Interest on other deposits

 

500

 

 

 

534

 

 

 

692

 

 

 

616

 

 

 

759

 

Interest on borrowings

 

655

 

 

 

608

 

 

 

587

 

 

 

643

 

 

 

533

 

Total interest expense

 

2,752

 

 

 

2,872

 

 

 

3,106

 

 

 

3,180

 

 

 

3,188

 

Net interest income

 

10,851

 

 

 

9,521

 

 

 

9,924

 

 

 

9,562

 

 

 

9,765

 

Provision for loan losses

 

620

 

 

 

271

 

 

 

1,146

 

 

 

95

 

 

 

14

 

Net interest income after provision for loan losses

 

10,231

 

 

 

9,250

 

 

 

8,778

 

 

 

9,467

 

 

 

9,751

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

236

 

 

 

145

 

 

 

248

 

 

 

266

 

 

 

247

 

Brokerage commissions

 

447

 

 

 

22

 

 

 

50

 

 

 

43

 

 

 

36

 

Late and prepayment charges

 

145

 

 

 

13

 

 

 

119

 

 

 

204

 

 

 

150

 

Gain on sale of mortgage loans

 

1,372

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan origination

 

269

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of real property

 

4,412

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

371

 

 

 

394

 

 

 

205

 

 

 

152

 

 

 

146

 

Total non-interest income

 

7,252

 

 

 

574

 

 

 

622

 

 

 

665

 

 

 

579

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

5,554

 

 

 

4,645

 

 

 

5,008

 

 

 

4,726

 

 

 

4,667

 

Loss on termination of pension plan

 

 

 

 

 

 

 

 

 

 

9,930

 

 

 

 

Occupancy and equipment

 

2,584

 

 

 

2,277

 

 

 

2,017

 

 

 

2,026

 

 

 

1,943

 

Data processing expenses

 

596

 

 

 

496

 

 

 

467

 

 

 

394

 

 

 

398

 

Direct loan expenses

 

437

 

 

 

199

 

 

 

212

 

 

 

171

 

 

 

183

 

Insurance and surety bond premiums

 

138

 

 

 

128

 

 

 

121

 

 

 

102

 

 

 

146

 

Office supplies, telephone and postage

 

386

 

 

 

312

 

 

 

316

 

 

 

316

 

 

 

281

 

Professional fees

 

1,553

 

 

 

1,336

 

 

 

1,627

 

 

 

1,038

 

 

 

956

 

Marketing and promotional expenses

 

127

 

 

 

145

 

 

 

234

 

 

 

39

 

 

 

46

 

Directors fees

 

69

 

 

 

69

 

 

 

69

 

 

 

69

 

 

 

69

 

Regulatory dues

 

49

 

 

 

56

 

 

 

46

 

 

 

58

 

 

 

70

 

Other operating expenses

 

834

 

 

 

772

 

 

 

705

 

 

 

606

 

 

 

575

 

Total non-interest expense

 

12,327

 

 

 

10,435

 

 

 

10,822

 

 

 

19,475

 

 

 

9,334

 

Income (loss) before income taxes

 

5,156

 

 

 

(611

)

 

 

(1,422

)

 

 

(9,343

)

 

 

996

 

Provision (benefit) for income taxes

 

1,147

 

 

 

(40

)

 

 

(209

)

 

 

(1,891

)

 

 

287

 

Net income (loss)

$

4,009

 

 

$

(571

)

 

$

(1,213

)

 

$

(7,452

)

 

$

709

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.24

 

 

$

(0.03

)

 

$

(0.07

)

 

$

(0.43

)

 

$

0.04

 

Diluted

$

0.24

 

 

$

(0.03

)

 

$

(0.07

)

 

$

(0.43

)

 

$

0.04

 


PDL Community Bancorp and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share data)

 

 

For the Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

Variance $

 

 

Variance %

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

 

$

38,319

 

 

$

36,818

 

 

$

1,501

 

 

 

4.08

%

Interest on deposits due from banks

 

 

74

 

 

 

498

 

 

 

(424

)

 

 

(85.14

%)

Interest and dividend on available-for-sale securities and FHLBNY stock

 

 

633

 

 

 

433

 

 

 

200

 

 

 

46.19

%

Total interest and dividend income

 

 

39,026

 

 

 

37,749

 

 

 

1,277

 

 

 

3.38

%

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

 

5,154

 

 

 

5,756

 

 

 

(602

)

 

 

(10.46

%)

Interest on other deposits

 

 

1,726

 

 

 

2,211

 

 

 

(485

)

 

 

(21.94

%)

Interest on borrowings

 

 

1,850

 

 

 

1,211

 

 

 

639

 

 

 

52.77

%

Total interest expense

 

 

8,730

 

 

 

9,178

 

 

 

(448

)

 

 

(4.88

%)

Net interest income

 

 

30,296

 

 

 

28,571

 

 

 

1,725

 

 

 

6.04

%

Provision for loan losses

 

 

2,037

 

 

 

163

 

 

 

1,874

 

 

*

 

Net interest income after provision for loan losses

 

 

28,259

 

 

 

28,408

 

 

 

(149

)

 

 

(0.52

%)

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

629

 

 

 

705

 

 

 

(76

)

 

 

(10.78

%)

Brokerage commissions

 

 

519

 

 

 

169

 

 

 

350

 

 

 

207.10

%

Late and prepayment charges

 

 

277

 

 

 

551

 

 

 

(274

)

 

 

(49.73

%)

Gain on sale of mortgage loans

 

 

1,372

 

 

 

 

 

 

1,372

 

 

 

%

Loan origination

 

 

269

 

 

 

 

 

 

269

 

 

 

%

Gain on sale of real property

 

 

4,412

 

 

 

 

 

 

4,412

 

 

 

%

Other

 

 

970

 

 

 

593

 

 

 

377

 

 

 

63.58

%

Total non-interest income

 

 

8,448

 

 

 

2,018

 

 

 

6,430

 

 

 

318.63

%

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

15,207

 

 

 

14,157

 

 

 

1,050

 

 

 

7.42

%

Occupancy and equipment

 

 

6,878

 

 

 

5,586

 

 

 

1,292

 

 

 

23.13

%

Data processing expenses

 

 

1,559

 

 

 

1,182

 

 

 

377

 

 

 

31.90

%

Direct loan expenses

 

 

848

 

 

 

521

 

 

 

327

 

 

 

62.76

%

Insurance and surety bond premiums

 

 

387

 

 

 

312

 

 

 

75

 

 

 

24.04

%

Office supplies, telephone and postage

 

 

1,014

 

 

 

869

 

 

 

145

 

 

 

16.69

%

Professional fees

 

 

4,516

 

 

 

2,199

 

 

 

2,317

 

 

 

105.37

%

Marketing and promotional expenses

 

 

506

 

 

 

119

 

 

 

387

 

 

 

325.21

%

Directors fees

 

 

207

 

 

 

225

 

 

 

(18

)

 

 

(8.00

%)

Regulatory dues

 

 

151

 

 

 

173

 

 

 

(22

)

 

 

(12.72

%)

Other operating expenses

 

 

2,311

 

 

 

1,789

 

 

 

522

 

 

 

29.18

%

Total non-interest expense

 

 

33,584

 

 

 

27,132

 

 

 

6,452

 

 

 

23.78

%

Income before income taxes

 

 

3,123

 

 

 

3,294

 

 

 

(171

)

 

 

(5.19

%)

Provision for income taxes

 

 

898

 

 

 

967

 

 

 

(69

)

 

 

(7.14

%)

Net income

 

$

2,225

 

 

$

2,327

 

 

$

(102

)

 

 

(4.38

%)

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.13

 

 

$

0.13

 

 

$

 

 

 

%

Diluted

 

$

0.13

 

 

$

0.13

 

 

$

 

 

 

%

* Indicates more than 500%.

PDL Community Bancorp and Subsidiaries
Key Metrics

 

At or for the Quarters Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.28

%

 

 

(0.20

%)

 

 

(0.46

%)

 

 

(2.79

%)

 

 

0.27

%

Return on average equity

 

9.95

%

 

 

(1.47

%)

 

 

(3.07

%)

 

 

(18.24

%)

 

 

1.71

%

Net interest rate spread (1)

 

3.33

%

 

 

3.13

%

 

 

3.51

%

 

 

3.34

%

 

 

3.44

%

Net interest margin (2)

 

3.65

%

 

 

3.45

%

 

 

3.87

%

 

 

3.71

%

 

 

3.83

%

Non-interest expense to average assets

 

3.95

%

 

 

3.57

%

 

 

4.07

%

 

 

7.30

%

 

 

3.54

%

Efficiency ratio (3)

 

68.09

%

 

 

103.37

%

 

 

102.62

%

 

 

190.43

%

 

 

90.24

%

Average interest-earning assets to average interest- bearing liabilities

 

134.35

%

 

 

130.72

%

 

 

129.16

%

 

 

130.64

%

 

 

131.38

%

Average equity to average assets

 

12.90

%

 

 

13.30

%

 

 

14.85

%

 

 

15.32

%

 

 

15.71

%

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital to risk weighted assets (bank only)

 

16.93

%

 

 

17.52

%

 

 

17.84

%

 

 

18.62

%

 

 

19.29

%

Tier 1 capital to risk weighted assets (bank only)

 

15.68

%

 

 

16.26

%

 

 

16.59

%

 

 

17.36

%

 

 

18.03

%

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

 

15.68

%

 

 

16.26

%

 

 

16.59

%

 

 

17.36

%

 

 

18.03

%

Tier 1 capital to average assets (bank only)

 

11.46

%

 

 

11.63

%

 

 

12.76

%

 

 

12.92

%

 

 

13.62

%

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percentage of total loans

 

1.28

%

 

 

1.27

%

 

 

1.37

%

 

 

1.28

%

 

 

1.27

%

Allowance for loan losses as a percentage of nonperforming loans

 

131.00

%

 

 

118.89

%

 

 

138.47

%

 

 

106.30

%

 

 

117.72

%

Net (charge-offs) recoveries to average outstanding loans

 

0.00

%

 

 

0.01

%

 

 

0.00

%

 

 

0.03

%

 

 

(0.15

%)

Non-performing loans as a percentage of total loans

 

0.98

%

 

 

1.08

%

 

 

1.00

%

 

 

1.20

%

 

 

1.09

%

Non-performing loans as a percentage of total assets

 

0.86

%

 

 

0.95

%

 

 

0.85

%

 

 

1.10

%

 

 

0.94

%

Total non-performing assets as a percentage of total assets

 

0.86

%

 

 

0.95

%

 

 

0.85

%

 

 

1.10

%

 

 

0.94

%

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

 

1.36

%

 

 

1.51

%

 

 

1.49

%

 

 

1.92

%

 

 

1.73

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of offices (4)

20

 

 

14

 

 

14

 

 

14

 

 

14

 

Number of full-time equivalent employees (5)

230

 

 

179

 

 

184

 

 

183

 

 

187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 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.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
(4) Number of offices at September 30, 2020 included 6 offices due to acquisition of Mortgage World.
(5) Number of full-time equivalent employees at September 30, 2020 included 44 employees due to acquisition of Mortgage World.

Key metrics calculated on income statement items were annualized where appropriate.

PDL Community Bancorp and Subsidiaries
Loan Portfolio

 

 

As of

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

 

 

 

 

 

(Dollars in thousands)

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor Owned

 

$

320,438

 

 

 

28.55

%

 

$

317,055

 

 

 

29.25

%

 

$

308,206

 

 

 

31.31

%

 

$

305,272

 

 

 

31.60

%

 

$

309,065

 

 

 

32.23

%

Owner-Occupied

 

 

93,340

 

 

 

8.31

%

 

 

91,345

 

 

 

8.43

%

 

 

93,887

 

 

 

9.54

%

 

 

91,943

 

 

 

9.52

%

 

 

90,843

 

 

 

9.47

%

Multifamily residential

 

 

284,775

 

 

 

25.37

%

 

 

274,641

 

 

 

25.34

%

 

 

259,326

 

 

 

26.35

%

 

 

250,239

 

 

 

25.90

%

 

 

244,644

 

 

 

25.51

%

Nonresidential properties

 

 

217,771

 

 

 

19.40

%

 

 

209,068

 

 

 

19.29

%

 

 

210,225

 

 

 

21.36

%

207,225 21.45% 195,952 20.43%Construction and land 99,721 8.89% 96,841 8.93% 100,202 10.18% 99,309 10.28% 106,124 11.07%Total mortgage loans 1,016,045 90.52% 988,950 91.24% 971,846 98.74% 953,988 98.75% 946,628 98.72%Non-mortgage loans: Business loans (1) 96,700 8.61% 93,394 8.62% 11,183 1.13% 10,877 1.12% 11,040 1.15%Consumer loans 9,806 0.87% 1,578 0.14% 1,288 0.13% 1,231 0.13% 1,252 0.13%Total non-mortgage loans 106,506 9.48% 94,972 8.76% 12,471 1.26% 12,108 1.25% 12,292 1.28%Total loans, gross 1,122,551 100.00% 1,083,922 100.00% 984,317 100.00% 966,096 100.00% 958,920 100.00% Net deferred loan origination costs 786 2,256 2,146 1,970 1,788 Allowance for losses on loans (14,381) (13,761) (13,484) (12,329) (12,160) Loans, net $1,108,956 $1,072,417 $972,979 $955,737 $948,548

(1) As of September 30, 2020, business loans include $86.2 million of PPP loans.

PDL Community Bancorp and Subsidiaries
Deposits

As of

September 30,

June 30,

March 31,

December 31,

September 30,

2020

2020

2020

2019

2019

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

(Dollars in thousands)

Demand

$

186,328

19.15

%

$

192,429

20.55

%

$

110,801

13.35

%

$

109,548

14.01

%

$

104,181

13.75

%

Interest-bearing deposits:

NOW/IOLA accounts

29,618

3.04

%

26,477

2.83

%

31,586

3.81

%

32,866

4.20

%

28,600

3.77

%

Money market accounts

148,877

15.30

%

125,631

13.42

%

121,629

14.66

%

86,721

11.09

%

98,707

13.02

%

Reciprocal deposits

108,367

11.13

%

96,915

10.35

%

62,384

7.52

%

47,659

6.09

%

42,292

5.58

%

Savings accounts

120,883

12.42

%

119,277

12.74

%

112,318

13.53

%

115,751

14.80

%

115,402

15.23

%

Total NOW, money market, reciprocal and savings accounts

407,745

41.89

%

368,300

39.34

%

327,917

39.52

%

282,997

36.18

%

285,001

37.60

%

Certificates of deposit of $250K or more

80,403

8.26

%

81,786

8.74

%

81,486

9.82

%

84,263

10.77

%

86,498

11.41

%

Brokered certificates of deposit

55,878

5.74

%

55,878

5.97

%

51,661

6.23

%

76,797

9.82

%

58,570

7.73

%

Listing service deposits

49,342

5.07

%

54,370

5.81

%

55,842

6.73

%

32,400

4.14

%

22,458

2.96

%

Certificates of deposit less than $250K

193,548

19.89

%

183,456

19.59

%

202,034

24.35

%

196,038

25.08

%

201,137

26.55

%

Total certificates of deposit

379,171

38.96

%

375,490

40.11

%

391,023

47.13

%

389,498

49.81

%

368,663

48.65

%

Total interest-bearing deposits

786,916

80.85

%

743,790

79.45

%

718,940

86.65

%

672,495

85.99

%

653,664

86.25

%

Total deposits

$

973,244

100.00

%

$

936,219

100.00

%

$

829,741

100.00

%

$

782,043

100.00

%

$

757,845

100.00

%

(1) As of September 30, 2020, included in demand deposits are $41.9 million related to net PPP funding.


PDL Community Bancorp and Subsidiaries
Nonperforming Assets

For the Quarters Ended

September 30,

June 30,

March 31,

December 31,

September 30,

2020

2020

2020

2019

2019

(Dollars in thousands)

Non-accrual loans:

Mortgage loans:

1-4 family residential

Investor owned

$

2,750

$

2,767

$

2,327

$

2,312

$

1,281

Owner occupied

1,075

1,327

1,069

1,009

1,052

Multifamily residential

210

Nonresidential properties

3,830

4,355

3,228

3,555

3,099

Construction and land

1,118

1,292

Non-mortgage loans:

Business

Consumer

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

$

7,865

$

8,449

$

6,624

$

7,994

$

6,724

Non-accruing troubled debt restructured loans:

Mortgage loans:

1-4 family residential

Investor owned

$

267

$

272

$

276

$

467

$

471

Owner occupied

2,191

2,198

2,185

2,491

2,488

Multifamily residential

Nonresidential properties

655

656

653

646

647

Construction and land

Non-mortgage loans:

Business

Consumer

Total non-accruing troubled debt restructured loans

3,113

3,126

3,114

3,604

3,606

Total non-accrual loans

$

10,978

$

11,575

$

9,738

$

11,598

$

10,330

Total non-performing assets

$

10,978

$

11,575

$

9,738

$

11,598

$

10,330

Accruing troubled debt restructured loans:

Mortgage loans:

1-4 family residential

Investor owned

$

3,396

$

3,730

$

3,730

$

5,191

$

5,226

Owner occupied

2,177

2,348

2,359

2,090

2,114

Multifamily residential

Nonresidential properties

759

762

1,300

1,306

1,317

Construction and land

Non-mortgage loans:

Business

14

35

Consumer

Total accruing troubled debt restructured loans

$

6,332

$

6,840

$

7,389

$

8,601

$

8,692

Total non-performing assets and accruing troubled debt restructured loans

$

17,310

$

18,415

$

17,127

$

20,199

$

19,022

Total non-performing loans to total loans

0.98

%

1.08

%

1.00

%

1.20

%

1.09

%

Total non-performing assets to total assets

0.86

%

0.95

%

0.85

%

1.10

%

0.94

%

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

1.36

%

1.51

%

1.49

%

1.92

%

1.73

%

PDL Community Bancorp and Subsidiaries
Average Balance Sheets

For the Three Months Ended September 30,

2020

2019

Average

Average

Outstanding

Average

Outstanding

Average

Balance

Interest

Yield/Rate (1)

Balance

Interest

Yield/Rate (1)

(Dollars in thousands)

Interest-earning assets:

Loans (2)

$

1,109,799

$

13,375

4.79

%

$

957,987

$

12,663

5.24

%

Available-for-sale securities

13,741

132

3.81

%

22,415

81

1.43

%

Other (3)

60,068

96

0.64

%

30,460

209

2.72

%

Total interest-earning assets

1,183,608

13,603

4.57

%

1,010,862

12,953

5.08

%

Non-interest-earning assets

58,493

35,840

Total assets

$

1,242,101

$

1,046,702

Interest-bearing liabilities:

NOW/IOLA

$

29,687

$

40

0.54

%

$

28,183

$

35

0.49

%

Money market

224,339

422

0.75

%

144,666

685

1.88

%

Savings

121,355

37

0.12

%

118,308

38

0.13

%

Certificates of deposit

371,094

1,597

1.71

%

379,915

1,896

1.98

%

Total deposits

746,475

2,096

1.12

%

671,072

2,654

1.57

%

Advance payments by borrowers

7,756

1

0.05

%

7,991

1

0.05

%

Borrowings

126,729

655

2.06

%

90,361

533

2.34

%

Total interest-bearing liabilities

880,960

2,752

1.24

%

769,424

3,188

1.64

%

Non-interest-bearing liabilities:

Non-interest-bearing demand

191,269

109,491

Other non-interest-bearing liabilities

9,607

3,402

Total non-interest-bearing liabilities

200,876

112,893

Total liabilities

1,081,836

2,752

882,317

3,188

Total equity

160,265

164,385

Total liabilities and total equity

$

1,242,101

1.24

%

$

1,046,702

1.64

%

Net interest income

$

10,851

$

9,765

Net interest rate spread (4)

3.33

%

3.44

%

Net interest-earning assets (5)

$

302,648

$

241,438

Net interest margin (6)

3.65

%

3.83

%

Average interest-earning assets to interest-bearing liabilities

134.35

%

131.38

%

(1) Annualized where appropriate.
(2) Loans include loans and loans held for sale.
(3) Includes FHLBNY demand account and FHLBNY stock dividends.
(4) 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.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) 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,

2020

2019

Average

Average

Outstanding

Average

Outstanding

Average

Balance

Interest

Yield/Rate (1)

Balance

Interest

Yield/Rate

(Dollars in thousands)

Interest-earning assets:

Loans (2)

$

1,036,706

$

38,319

4.94

%

$

940,971

$

36,818

5.23

%

Available-for-sale securities

16,227

361

2.97

%

22,772

244

1.43

%

Other (3)

55,746

346

0.83

%

37,551

687

2.45

%

Total interest-earning assets

1,108,679

39,026

4.70

%

1,001,294

37,749

5.04

%

Non-interest-earning assets

53,945

35,142

Total assets

$

1,162,624

$

1,036,436

Interest-bearing liabilities:

NOW/IOLA

$

29,469

$

117

0.53

%

$

27,298

$

86

0.42

%

Money market

193,951

1,497

1.03

%

124,263

2,004

2.16

%

Savings

117,424

109

0.12

%

120,748

118

0.13

%

Certificates of deposit

375,303

5,154

1.83

%

408,241

5,756

1.89

%

Total deposits

716,147

6,877

1.28

%

680,550

7,964

1.56

%

Advance payments by borrowers

8,226

3

0.05

%

8,423

3

0.05

%

Borrowings

118,701

1,850

2.08

%

64,947

1,211

2.49

%

Total interest-bearing liabilities

843,074

8,730

1.38

%

753,920

9,178

1.63

%

Non-interest-bearing liabilities:

Non-interest-bearing demand

155,158

110,730

Other non-interest-bearing liabilities

5,927

4,087

Total non-interest-bearing liabilities

161,085

114,817

Total liabilities

1,004,159

8,730

868,737

9,178

Total equity

158,465

167,699

Total liabilities and total equity

$

1,162,624

1.38

%

$

1,036,436

1.63

%

Net interest income

$

30,296

$

28,571

Net interest rate spread (4)

3.32

%

3.41

%

Net interest-earning assets (5)

$

265,605

$

247,374

Net interest margin (6)

3.65

%

3.81

%

Average interest-earning assets to

interest-bearing liabilities

131.50

%

132.81

%

(1) Annualized where appropriate.
(2) Loans include loans and loans held for sale.
(3) Includes FHLBNY demand account and FHLBNY stock dividends.
(4) 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.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.