PDL Community Bancorp Announces 2021 Third Quarter Results
NEW YORK, Nov. 02, 2021 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the financial holding company for Ponce Bank (the “Bank”) and Mortgage World Bankers, Inc. (“Mortgage World”), reported net income of $2.1 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 | |||||||||||||||||||||||||||||||||||
