NEW YORK, July 31, 2020 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported a net loss of ($571,000), or ($0.03) per basic and diluted share, for the second quarter of 2020, compared to a net loss of ($1.2 million), or ($0.07) per basic and diluted share, for the prior quarter and net income of $950,000, or $0.05 per basic and diluted share, for the second quarter of 2019.

Carlos P. Naudon, the Company’s 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. Although the COVID-19 pandemic slowed our business, we continued our implementation of GPS, our Salesforce based CRM; we attended to the needs of Ponce Bankers by maintaining their jobs and temporarily enhancing their benefits; we responded to the needs of our communities by handling over 1,000 applications for Paycheck Protection Program (“PPP”) loans from customers and non-customers alike, allowing loan forbearances upon requests and ensuring that we publicly stood by our commitment to fairness and justice for all; we enhanced our asset quality by significantly increasing reserves; and, we increased our shareholders’ value by resuming repurchases of our shares. Although these steps resulted in a loss per share of ($0.11) for the six months ended June 30, 2020, we remain confident that our investments in the first half of the year, coupled with the closing of the Mortgage World Bankers, Inc. transaction in July as well as other initiatives, will continue to build stakeholder value.”

Steven A. Tsavaris, the Company’s Executive Chairman, added “It is gratifying that our commitment to our communities was recognized by the National Community Investment Fund in their Banking Industry Peer Group report for the first quarter of 2020. Ponce Bank was ranked 11th nationally in total assets and 7th in total loans among the 140 banks that also are CDFIs.  Among the 20 largest, we were ranked 1st in our housing focus, 2nd in our lending in LMI areas and 6th in the proportion of branches in LMI areas. This data is not an anomaly; we are consistently a top performer in their Social Performance Metrics.”

Net Income (Loss)

The $571,000 net loss for the three months ended June 30, 2020 is $642,000 less than the $1.2 million net loss for the three months ended March 31, 2020 and is primarily the result of an $875,000, or 76.4%, decrease in provision for loan losses, a $387,000, or 3.6%, decrease in noninterest expense and a $234,000, or 7.5%, decrease in interest expense, offset by a $637,000, or 4.9%, decrease in interest and dividend income, a $169,000, or 80.9%, decrease in benefit for income taxes and a $48,000, or 7.7%, decrease in noninterest income.

The $571,000 net loss for the quarter ended June 30, 2020 compared to $950,000 in net income for the second quarter of 2019 reflects a $1.7 million, or 19.8%, increase in noninterest expense, a $271,000 increase in provision for loan losses, a $112,000, or 16.3%, decrease in noninterest income and a $21,000, or 0.2%, decrease in interest and dividend income, offset by a $413,000, or 110.7%, decrease in provision for income taxes and a $198,000, or 6.4%, decrease in interest expense.

The $1.8 million net loss for the six months ended June 30, 2020 compared to $1.6 million in net income for the six months ended June 30, 2019 reflects a $3.5 million, or 19.4%, increase in noninterest expense, a $1.3 million increase in provision for loan losses and a $243,000, or 16.9%, decrease in noninterest income, offset by a $929,000, or 136.6%, decrease in provision for income taxes, a $627,000, or 2.5%, increase in interest and dividend income and a $12,000, or 0.2%, decrease in interest expense.

Net Interest Margin

Net interest margin decreased by 42 basis points to 3.45% for the three months ended June 30, 2020 from 3.87% for the three months ended March 31, 2020, while the net interest rate spread decreased by 38 basis points to 3.13% from 3.51% for the same periods. Average interest-earning assets increased by $77.7 million, or 7.5%, mainly as a result of $30.3 million in average outstanding Payment Protection Program (“PPP”) loans, to $1,109.7 million for the three months ended June 30, 2020 from $1,031.9 million for the three months ended March 31, 2020. The average yield on interest-earning assets decreased by 58 basis points to 4.49% from 5.07%, for the same periods. Average interest-bearing liabilities increased by $49.9 million, or 6.2%, mainly as a result of $48.9 million in average net PPP funding, to $848.9 million for the three months ended June 30, 2020 from $799.0 million for the three months ended March 31, 2020. The weighted average rate on interest-bearing liabilities decreased by 20 basis points to 1.36% from 1.56% for the same periods. 

Net interest margin decreased by 30 basis points to 3.45% for the three months ended June 30, 2020 from 3.75% for the three months ended June 30, 2019, while the net interest rate spread decreased by 21 basis points to 3.13% from 3.34% for the same periods. Average interest-earning assets increased by $110.2 million, or 11.0%, mainly as a result of $30.3 million in average outstanding PPP loans, to $1,109.7 million, for the three months ended June 30, 2020 from $999.4 million for the three months ended June 30, 2019. The average yield on interest-earning assets decreased by 49 basis points to 4.49% from 4.98%, for the same periods. Average interest-bearing liabilities increased by $98.5 million, or 13.1%, mainly as a result of $48.9 million in average net PPP funding, to $848.9 million, for the three months ended June 30, 2020 from $750.3 million for the three months ended June 30, 2019. The average rate on interest-bearing liabilities decreased by 28 basis points to 1.36% from 1.64% for the same periods.

Noninterest Income

Noninterest income was $574,000 for the three months ended June 30, 2020, down $48,000, or 7.7%, from $622,000 for the three months ended March 31, 2020. The decrease was attributable to decreases of $106,000, or 89.1%, in late and prepayment charges related to mortgage loans, $103,000, or 41.5%, in service charges and fees and $28,000, or 56.0%, in brokerage commissions, offset by an increase of $189,000, or 92.2%, in other noninterest income, of which $163,000 were fees related to PPP loans.

Noninterest income was $574,000 for the three months ended June 30, 2020, down $112,000, or 16.3%, from $686,000 for the three months ended June 30, 2019. The decrease was mainly attributable to decreases of $249,000, or 95.0%, in late and prepayment charges related to mortgage loans, $83,000, or 36.4%, in service charges and fees and $2,000, or 8.3%, in brokerage commissions, offset by an increase of $222,000, or 129.1%, in other noninterest income, of which $163,000 were fees related to PPP loans.

Noninterest Expense

Total noninterest expense decreased $387,000, or 3.6%, to $10.4 million for the three months ended June 30, 2020 compared to $10.8 million for the three months ended March 31, 2020. Compensation and benefits decreased $363,000, which primarily includes $256,000 of deferred compensation expenses related to PPP loan originations. Other decreases in noninterest expense at June 30, 2020 from March 31, 2020 are $291,000 of professional services, $89,000 of marketing and promotional expenses and $13,000 in direct loan expenses. The decrease in noninterest expense was offset by increases of $260,000 in occupancy and equipment, $67,000 in other noninterest expenses, $29,000 in data processing expenses, $10,000 in regulatory dues and $7,000 in insurance and surety bond premiums. Included in noninterest expense for the three months ended June 30, 2020 is $475,000 of additional expenses incurred as a result of the COVID-19 pandemic.

Total noninterest expense increased $1.7 million, or 19.8%, to $10.4 million for the three months ended June 30, 2020, compared to $8.7 million for the three months ended June 30, 2019. The increase in noninterest expense was attributable to increases of $603,000 in professional fees, $545,000 in occupancy and equipment expense mainly due to investments in software licenses, $169,000 in compensation and benefits, $140,000 in other operating expenses mainly due to employment agency fees, $98,000 in marketing and promotional expenses, $65,000 in data processing expenses as a result of system enhancements and implementation charges related to software upgrades, $45,000 in insurance and surety bond premiums, $41,000 in office supplies, telephone and postage and $17,000 in direct loan expenses. The increase of $603,000 in professional fees is mainly attributable to increases in consulting fees of $250,000 and professional services of $344,000 related to the document imaging project adopted in late 2019.

Asset Quality

Total nonperforming assets were $11.6 million, or 0.95% of total assets, at June 30, 2020, an increase of $1.9 million from $9.7 million, or 0.85% of total assets, at March 31, 2020 and remain comparable with total nonperforming assets of $11.6 million, or 1.10% of total assets, at December 31, 2019. Comparing nonperforming assets at June 30, 2020 to March 31, 2020, total nonaccruals inclusive of TDRs related to nonresidential loans increased by $1.1 million and 1-4 family residential loans increased by $707,000. Comparing nonperforming assets at June 30, 2020 to December 31, 2019, total nonaccruals inclusive of TDRs related to construction and land loans decreased by $1.1 million, nonresidential loans increased by $810,000 and 1-4 family residential loans increased by $285,000.

The Company continues to assess the economic impact of the COVID-19 pandemic on borrowers and believes that it is likely that it 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 $13.8 million, or 1.27% of total loans (total loans include $83.6 million of PPP loans) at June 30, 2020, compared to $12.3 million, or 1.28% of total loans, at December 31, 2019 and $12.5 million, or 1.32% of total loans, at June 30, 2019. Excluding PPP loans, the allowance for loan losses is 1.38% of total loans. Net recoveries totaled $6,000 for the quarter ended June 30, 2020, $9,000 for the quarter ended March 31, 2020 and $11,000 for the quarter ended June 30, 2019.

As of July 21, 2020, there were 421 loans aggregating $384.0 million, in forbearance primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months. Of the 421 loans in forbearance, 329 loans aggregating $297.4 million have not requested, and 92 loans in the amount of $86.6 million have requested, up-to-an-additional three-month forbearance extension at the conclusion of their initial three-month forbearance period. 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. Under the current economic conditions and based upon available data, the Company is unable to conclusively determine the repayment capacity, if any, of most of such borrowers. 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 $166.5 million, or 15.8%, to $1,220.2 million at June 30, 2020 from $1,053.8 million at December 31, 2019. The increase in total assets is mainly attributable to increases in net loans receivable of $116.7 million, mainly due to $83.6 million in PPP loans, cash and cash equivalents of $49.0 million, other assets of $4.2 million, accrued interest receivable of $3.7 million, FHLBNY stock of $687,000 and deferred taxes of $604,000, offset by decreases in available-for-sale securities of $7.7 million and premises and equipment, net of $644,000.

Cash and cash equivalents at June 30, 2020 increased $49.0 million from December 31, 2019 due to increases of $154.2 million in net deposits, of which $65.1 million related to net PPP funding, $16.4 million from sales and maturities of available-for-sale securities and $12.9 million increase in net advances from FHLBNY, offset by increases of $116.7 million in net loans and $9.1 million purchases of available-for-sale securities.

Net loans receivable at June 30, 2020 increased $116.7 million from December 31, 2019 primarily due to increases of $82.5 million, or 758.6%, in business loans, mainly due to $83.6 million in PPP loans, $24.4 million, or 9.8%, in multifamily residential loans, $11.2 million, or 2.8%, in 1-4 family residential loans, $1.8 million, or 0.9%, in nonresidential properties loans, $347,000, or 28.2%, in consumer loans and $286,000, or 14.5%, in net deferred loan origination costs, offset by a decrease of $2.5 million, or 2.5%, in construction and land loans and an increase in the allowance for losses on loans of $1.4 million substantially related to the COVID-19 pandemic.

Total deposits increased $154.2 million, or 19.7%, to $936.2 million at June 30, 2020 from $782.0 million at December 31, 2019. The increase in deposits was mainly attributable to increases of $85.3 million, or 30.1%, in NOW, money market, reciprocal deposits and savings accounts, $82.9 million, or 75.7%, in demand deposits, of which $65.1 million related to net PPP funding, offset by a decrease of $14.0 million, or 3.6 %, in total certificates of deposit, which includes brokered certificates of deposit and listing service deposits. The $85.3 million increase in NOW, money market, reciprocal deposits and savings accounts was mainly attributable to increases of $49.3 million, or 103.4%, in reciprocal deposits, $38.9 million, or 44.9%, in money market accounts, $3.5 million, or 3.1%, in savings accounts offset by a decrease of $6.4 million, or 19.4%, in NOW/IOLA accounts.

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

Total stockholders’ equity decreased $3.4 million, or 2.1%, to $155.0 million at June 30, 2020, from $158.4 million at December 31, 2019. The decrease in stockholders’ equity was mainly attributable to $2.7 million of stock repurchases and a net loss of $1.8 million, offset by increases of $698,000 related to restricted stock units and stock options, $247,000 related to the Company’s Employee Stock Ownership Plan and $130,000 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 Company’s stock, or approximately 5% of the Company’s 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 Company’s stock, or approximately 5% of the Company’s then current issued and outstanding shares. The Company’s share 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 Company’s stock, or approximately 5% of the Company’s 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 June 30, 2020, the Company had repurchased a total of 1,318,872 shares under the repurchase programs at a weighted average price of $13.99 per share, which were reported as treasury stock. Of the 1,318,872 shares of treasury stock, 90,135 shares have been granted to directors and executive officers under the Company’s 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2019. As of June 30, 2020, 1,228,737 shares are reported as treasury stock in the Company’s consolidated statement of financial condition.

About PDL Community Bancorp

PDL Community Bancorp is the financial holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. The Bank’s 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. 

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; the anticipated impact of the COVID-19 novel coronavirus pandemic and the Company’s attempts at mitigation; changes in the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the prospectus and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorp’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

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 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2020  2020  2019  2019  2019 
ASSETS                   
Cash and due from banks:                   
Cash$15,875  $13,165  $6,762  $6,425  $6,003 
Interest-bearing deposits in banks 60,756   90,795   20,915   40,965   47,007 
Total cash and cash equivalents 76,631   103,960   27,677   47,390   53,010 
Available-for-sale securities, at fair value 13,800   19,140   21,504   51,966   22,154 
Loans held for sale 1,030   1,030   1,030       
Loans receivable, net of allowance for losses 1,072,417   972,979   955,737   948,548   934,236 
Accrued interest receivable 7,677   4,198   3,982   3,893   3,773 
Premises and equipment, net 32,102   32,480   32,746   32,805   32,205 
Other real estate owned             58 
Federal Home Loan Bank of New York stock (FHLBNY), at cost 6,422   7,889   5,735   8,659   4,609 
Deferred tax assets 4,328   4,140   3,724   3,925   3,913 
Other assets 5,824   5,127   1,621   2,802   2,158 
Total assets$1,220,231  $1,150,943  $1,053,756  $1,099,988  $1,056,116 
LIABILITIES AND STOCKHOLDERS' EQUITY                   
Liabilities:                   
Deposits$936,219  $829,741  $782,043  $757,845  $802,408 
Accrued interest payable 48   86   97   81   88 
Advance payments by borrowers for taxes and insurance 6,007   8,295   6,348   7,780   6,059 
Advances from the Federal Home Loan Bank of New York and others 117,284   152,284   104,404   169,404   79,404 
Other liabilities 5,674   4,794   2,462   4,324   2,954 
Total liabilities 1,065,232   995,200   895,354   939,434   890,913 
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 (17,172)  (16,490)  (14,478)  (12,663)  (6,798)
Additional paid-in-capital 85,481   85,132   84,777   85,750   85,357 
Retained earnings 91,904   92,475   93,688   101,140   100,431 
Accumulated other comprehensive income (loss) 150   110   20   (7,947)  (7,941)
Unearned compensation - ESOP (5,549)  (5,669)  (5,790)  (5,911)  (6,031)
Total stockholders' equity 154,999   155,743   158,402   160,554   165,203 
Total liabilities and stockholders' equity$1,220,231  $1,150,943  $1,053,756  $1,099,988  $1,056,116 
                    
                    


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

 For the Quarters Ended 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2020  2020  2019  2019  2019 
Interest and dividend income:                   
Interest on loans receivable$12,162  $12,782  $12,488  $12,663  $12,060 
Interest on deposits due from banks 3   66   73   117   278 
Interest and dividend on available-for-sale securities and FHLBNY stock 228   182   181   173   76 
Total interest and dividend income 12,393   13,030   12,742   12,953   12,414 
Interest expense:                   
Interest on certificates of deposit 1,730   1,827   1,921   1,896   1,904 
Interest on other deposits 534   692   616   759   821 
Interest on borrowings 608   587   643   533   345 
Total interest expense 2,872   3,106   3,180   3,188   3,070 
Net interest income 9,521   9,924   9,562   9,765   9,344 
Provision for loan losses 271   1,146   95   14    
Net interest income after provision for loan losses 9,250   8,778   9,467   9,751   9,344 
Noninterest income:                   
Service charges and fees 145   248   266   247   228 
Brokerage commissions 22   50   43   36   24 
Late and prepayment charges 13   119   204   150   262 
Other 394   205   152   146   172 
Total noninterest income 574   622   665   579   686 
Noninterest expense:                   
Compensation and benefits 4,645   5,008   4,726   4,667   4,476 
Loss on termination of  pension plan       9,930       
Occupancy and equipment 2,277   2,017   2,026   1,943   1,732 
Data processing expenses 496   467   394   398   431 
Direct loan expenses 199   212   171   183   182 
Insurance and surety bond premiums 128   121   102   146   83 
Office supplies, telephone and postage 312   316   316   281   271 
Professional fees 1,336   1,627   1,038   956   733 
Marketing and promotional expenses 145   234   39   46   47 
Directors fees 69   69   69   69   73 
Regulatory dues 56   46   58   70   47 
Other operating expenses 772   705   606   575   632 
Total noninterest expense 10,435   10,822   19,475   9,334   8,707 
Income (loss) before income taxes (611)  (1,422)  (9,343)  996   1,323 
Provision (benefit) for income taxes (40)  (209)  (1,891)  287   373 
Net income (loss)$(571) $(1,213) $(7,452) $709  $950 
Earnings (loss) per share:                   
Basic$(0.03) $(0.07) $(0.43) $0.04  $0.05 
Diluted$(0.03) $(0.07) $(0.43) $0.04  $0.05 
                    
                    


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

  For the Six Months Ended June 30, 
  2020  2019  Variance $  Variance % 
Interest and dividend income:                
Interest on loans receivable $24,944  $24,155  $789   3.27%
Interest on deposits due from banks  69   478   (409)  (85.56%)
Interest and dividend on available-for-sale securities and FHLBNY stock  410   163   247   151.53%
Total interest and dividend income  25,423   24,796   627   2.53%
Interest expense:                
Interest on certificates of deposit  3,557   3,860   (303)  (7.85%)
Interest on other deposits  1,226   1,452   (226)  (15.56%)
Interest on borrowings  1,195   678   517   76.25%
Total interest expense  5,978   5,990   (12)  (0.20%)
Net interest income  19,445   18,806   639   3.40%
Provision for loan losses  1,417   149   1,268   851.01%
Net interest income after provision for loan losses  18,028   18,657   (629)  (3.37%)
Noninterest income:                
Service charges and fees  393   458   (65)  (14.19%)
Brokerage commissions  72   133   (61)  (45.86%)
Late and prepayment charges  132   401   (269)  (67.08%)
Other  599   447   152   34.00%
Total noninterest income  1,196   1,439   (243)  (16.89%)
Noninterest expense:                
Compensation and benefits  9,653   9,490   163   1.72%
Occupancy and equipment  4,294   3,643   651   17.87%
Data processing expenses  963   784   179   22.83%
Direct loan expenses  411   338   73   21.60%
Insurance and surety bond premiums  249   166   83   50.00%
Office supplies, telephone and postage  628   588   40   6.80%
Professional fees  2,963   1,243   1,720   138.37%
Marketing and promotional expenses  379   73   306   419.18%
Directors fees  138   156   (18)  (11.54%)
Regulatory dues  102   103   (1)  (0.97%)
Other operating expenses  1,477   1,214   263   21.66%
Total noninterest expense  21,257   17,798   3,459   19.43%
Income (loss) before income taxes  (2,033)  2,298   (4,331)  (188.47%)
Provision (benefit) for income taxes  (249)  680   (929)  (136.62%)
Net income (loss) $(1,784) $1,618  $(3,402)  (210.26%)
Earnings (loss) per share:                
Basic $(0.11) $0.09  N/A  N/A 
Diluted $(0.11) $0.09  N/A  N/A 
               
               


PDL Community Bancorp and Subsidiaries
Key Metrics

 At or for the Quarters Ended 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2020  2020  2019  2019  2019 
Performance Ratios:                   
Return on average assets (0.20%)  (0.46%)  (2.79%)  0.27%  0.37%
Return on average equity (1.47%)  (3.07%)  (18.24%)  1.71%  2.26%
Net interest rate spread (1) 3.13%  3.51%  3.34%  3.44%  3.34%
Net interest margin (2) 3.45%  3.87%  3.71%  3.83%  3.75%
Noninterest expense to average assets 3.57%  4.07%  7.30%  3.54%  3.38%
Efficiency ratio (3) 103.37%  102.62%  190.43%  90.24%  86.81%
Average interest-earning assets to average interest- bearing liabilities 130.72%  129.16%  130.64%  131.38%  133.20%
Average equity to average assets 13.30%  14.85%  15.32%  15.71%  16.27%
Capital Ratios:                   
Total capital to risk weighted assets (bank only) 17.52%  17.84%  18.62%  19.29%  19.54%
Tier 1 capital to risk weighted assets (bank only) 16.26%  16.59%  17.36%  18.03%  18.29%
Common equity Tier 1 capital to risk-weighted assets (bank only) 16.26%  16.59%  17.36%  18.03%  18.29%
Tier 1 capital to average assets (bank only) 11.63%  12.76%  12.92%  13.62%  13.64%
Asset Quality Ratios:                   
Allowance for loan losses as a percentage of total loans 1.27%  1.37%  1.28%  1.27%  1.32%
Allowance for loan losses as a percentage of nonperforming loans 118.89%  138.47%  106.30%  117.72%  123.50%
Net (charge-offs) recoveries to average outstanding loans 0.01%  0.00%  0.03%  (0.15%)  0.00%
Non-performing loans as a percentage of total loans 1.08%  1.00%  1.20%  1.09%  1.08%
Non-performing loans as a percentage of total assets 0.95%  0.85%  1.10%  0.94%  0.96%
Total non-performing assets as a percentage of total assets 0.95%  0.85%  1.10%  0.94%  0.96%
Total non-performing assets, accruing loans past due 90 days or more,  and accruing troubled debt restructured loans as a percentage of total assets 1.51%  1.49%  1.92%  1.73%  1.82%
Other:                   
Number of offices14  14  14  14  14 
Number of full-time equivalent employees179  184  183  187  183 

____________
(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.

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



PDL Community Bancorp and Subsidiaries
Loan Portfolio

  As of
  June 30, March 31, December 31, September 30, June 30,
  2020 2020 2019 2019 2019
  Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
                 
  (Dollars in thousands)
Mortgage loans:                                   
1-4 family residential                                   
Investor Owned $317,055  29.25% $308,206  31.31% $305,272  31.60% $309,065  32.23% $302,428  32.00%
Owner-Occupied  91,345  8.43%  93,887  9.54%  91,943  9.52%  90,843  9.47%  92,904  9.83%
Multifamily residential  274,641  25.34%  259,326  26.35%  250,239  25.90%  244,644  25.51%  238,974  25.28%
Nonresidential properties  209,068  19.29%  210,225  21.36%  207,225  21.45%  195,952  20.43%  197,367  20.88%
Construction and land  96,841  8.93%  100,202  10.18%  99,309  10.28%  106,124  11.07%  100,995  10.69%
Total mortgage loans  988,950  91.24%  971,846  98.74%  953,988  98.75%  946,628  98.72%  932,668  98.68%
Nonmortgage loans:                                   
Business loans (1)  93,394  8.62%  11,183  1.13%  10,877  1.12%  11,040  1.15%  11,373  1.20%
Consumer loans  1,578  0.14%  1,288  0.13%  1,231  0.13%  1,252  0.13%  1,151  0.12%
Total nonmortgage loans  94,972  8.76%  12,471  1.26%  12,108  1.25%  12,292  1.28%  12,524  1.32%
Total loans, gross  1,083,922  100.00%  984,317  100.00%  966,096  100.00%  958,920  100.00%  945,192  100.00%
                                    
Net deferred loan origination costs  2,256      2,146      1,970      1,788      1,562    
Allowance for losses on loans  (13,761)     (13,484)     (12,329)     (12,160)     (12,518)   
                                    
Loans, net $1,072,417     $972,979     $955,737     $948,548     $934,236    

(1)     As of June 30, 2020, business loans include $83.6 million of PPP loans.




PDL Community Bancorp and Subsidiaries

Deposits

  As of
  June 30, March 31, December 31, September 30, June 30,
  2020 2020 2019 2019 2019
  Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
   
  (Dollars in thousands)
Demand (1) $192,429  20.55% $110,801  13.35% $109,548  14.01% $104,181  13.75% $115,262  14.36%
Interest-bearing deposits:                                   
NOW/IOLA accounts  26,477  2.83%  31,586  3.81%  32,866  4.20%  28,600  3.77%  23,018  2.87%
Money market accounts  125,631  13.42%  121,629  14.66%  86,721  11.09%  98,707  13.02%  105,632  13.16%
Reciprocal deposits  96,915  10.35%  62,384  7.52%  47,659  6.09%  42,292  5.58%  52,686  6.57%
Savings accounts  119,277  12.74%  112,318  13.53%  115,751  14.80%  115,402  15.23%  126,746  15.80%
Total NOW,  money market, reciprocal and savings accounts  368,300  39.34%  327,917  39.52%  282,997  36.18%  285,001  37.60%  308,082  38.40%
Certificates of deposit of $250K or more  81,786  8.74%  81,486  9.82%  84,263  10.77%  86,498  11.41%  82,767  10.31%
Brokered certificates of deposit  55,878  5.97%  51,661  6.23%  76,797  9.82%  58,570  7.73%  58,570  7.30%
Listing service deposits  54,370  5.81%  55,842  6.73%  32,400  4.14%  22,458  2.96%  28,688  3.58%
Certificates of deposit less than $250K  183,456  19.59%  202,034  24.35%  196,038  25.08%  201,137  26.55%  209,039  26.05%
Total certificates of deposit  375,490  40.11%  391,023  47.13%  389,498  49.81%  368,663  48.65%  379,064  47.24%
Total interest-bearing deposits  743,790  79.45%  718,940  86.65%  672,495  85.99%  653,664  86.25%  687,146  85.64%
Total deposits $936,219  100.00% $829,741  100.00% $782,043  100.00% $757,845  100.00% $802,408  100.00%

(1)     As of June 30, 2020, included in demand deposits are $65.1 million related to net PPP funding.




PDL Community Bancorp and Subsidiaries

Nonperforming Assets

 For the Quarters Ended 
 June 30,  March 31,  December 31,  September 30,  June 30, 
 2020  2020  2019  2019  2019 
   
 (Dollars in thousands) 
Nonaccrual loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$2,767  $2,327  $2,312  $1,281  $1,299 
Owner occupied 1,327   1,069   1,009   1,052   479 
Multifamily residential              7 
Nonresidential properties 4,355   3,228   3,555   3,099   3,288 
Construction and land       1,118   1,292   1,327 
Nonmortgage loans:                   
Business              
Consumer             2 
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)$8,449  $6,624  $7,994  $6,724  $6,402 
                    
Non-accruing troubled debt restructured loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$272  $276  $467  $471  $493 
Owner occupied 2,198   2,185   2,491   2,488   2,499 
Multifamily residential              
Nonresidential properties 656   653   646   647   742 
Construction and land              
Nonmortgage loans:                   
Business              
Consumer              
Total non-accruing troubled debt restructured loans 3,126   3,114   3,604   3,606   3,734 
Total nonaccrual loans$11,575  $9,738  $11,598  $10,330  $10,136 
Total nonperforming assets$11,575  $9,738  $11,598  $10,330  $10,136 
                    
Accruing troubled debt restructured loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$3,730  $3,730  $5,191  $5,226  $5,267 
Owner occupied 2,348   2,359   2,090   2,114   2,493 
Multifamily residential              
Nonresidential properties 762   1,300   1,306   1,317   1,330 
Construction and land              
Nonmortgage loans:                   
Business       14   35   37 
Consumer              
Total accruing troubled debt restructured loans$6,840  $7,389  $8,601  $8,692  $9,127 
Total nonperforming assets and accruing troubled debt restructured loans$18,415  $17,127  $20,199  $19,022  $19,263 
Total nonperforming loans to total net loans 1.08%  1.00%  1.20%  1.09%  1.08%
Total nonperforming assets to total assets 0.95%  0.85%  1.10%  0.94%  0.96%
Total nonperforming assets and accruing troubled debt restructured loans to total assets 1.51%  1.49%  1.92%  1.73%  1.82%
                    
                    


PDL Community Bancorp and Subsidiaries
Average Balance Sheets

  For the Three Months Ended June 30,
 2020 2019
 Average
Outstanding
Balance
 
 Interest  Average
Yield/Rate (1)
 Average
Outstanding
Balance 
 Interest  Average
Yield/Rate (1)
  
 (Dollars in thousands)
Interest-earning assets:                     
Loans (2)$1,024,019  $12,162  4.78% $928,806  $12,060  5.21%
Available-for-sale securities 16,750   146  3.50%  22,127   76  1.38%
Other (3) 68,900   85  0.50%  48,512   278  2.30%
Total interest-earning assets 1,109,669   12,393  4.49%  999,445   12,414  4.98%
Non-interest-earning assets 65,829          35,130        
Total assets$1,175,498         $1,034,575        
Interest-bearing liabilities:                     
NOW/IOLA$29,692  $38  0.51% $25,306  $26  0.41%
Money market 196,707   458  0.94%  140,239   755  2.16%
Savings 117,166   37  0.13%  121,423   39  0.13%
Certificates of deposit 375,708   1,730  1.85%  400,317   1,904  1.91%
Total deposits 719,273   2,263  1.27%  687,285   2,724  1.59%
Advance payments by borrowers 8,947   1  0.04%  9,566   1  0.04%
Borrowings 120,647   608  2.03%  53,474   345  2.59%
Total interest-bearing liabilities 848,867   2,872  1.36%  750,325   3,070  1.64%
Non-interest-bearing liabilities:                     
Non-interest-bearing demand 165,161         112,069       
Other non-interest-bearing liabilities 5,165         3,819       
Total non-interest-bearing liabilities 170,326         115,888       
Total liabilities 1,019,193   2,872      866,213   3,070    
Total equity 156,305          168,362        
Total liabilities and total equity$1,175,498      1.36% $1,034,575      1.64%
Net interest income    $9,521         $9,344    
Net interest rate spread (4)        3.13%         3.34%
Net interest-earning assets (5)$260,802         $249,120        
Net interest margin (6)        3.45%         3.75%
Average interest-earning assets to interest-bearing liabilities        130.72%         133.20%

____________
(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 Six Months Ended June 30,
 2020 2019
 Average
Outstanding
Balance
 Interest Average
Yield/Rate (1)
 Average
Outstanding
Balance
 Interest Average
Yield/Rate
  
 (Dollars in thousands)
Interest-earning assets:                     
Loans (2)$999,758  $24,944  5.02% $932,323  $24,155  5.22%
Available-for-sale securities 17,484   229  2.63%  22,954   163  1.43%
Other (3) 53,560   250  0.93%  41,155   478  2.34%
Total interest-earning assets 1,070,802   25,423  4.77%  996,432   24,796  5.02%
Non-interest-earning assets 51,647          34,785        
Total assets$1,122,449         $1,031,217        
Interest-bearing liabilities:                     
NOW/IOLA$29,359  $77  0.53% $26,848  $53  0.40%
Money market 178,589   1,075  1.21%  113,893   1,318  2.33%
Savings 115,438   72  0.13%  121,988   79  0.13%
Certificates of deposit 377,431   3,557  1.90%  422,638   3,860  1.84%
Total deposits 700,817   4,781  1.37%  685,367   5,310  1.56%
Advance payments by borrowers 8,464   2  0.05%  8,643   2  0.05%
Borrowings 114,643   1,195  2.10%  52,030   678  2.63%
Total interest-bearing liabilities 823,924   5,978  1.46%  746,040   5,990  1.62%
Non-interest-bearing liabilities:                     
Non-interest-bearing demand 136,903         111,360       
Other non-interest-bearing liabilities 4,065         4,434       
Total non-interest-bearing liabilities 140,968         115,794       
Total liabilities 964,892   5,978      861,834   5,990    
Total equity 157,557          169,383        
Total liabilities and total equity$1,122,449      1.46% $1,031,217      1.62%
Net interest income    $19,445         $18,806    
Net interest rate spread (4)        3.31%         3.40%
Net interest-earning assets (5)$246,878         $250,392        
Net interest margin (6)        3.65%         3.81%
Average interest-earning assets to                     
interest-bearing liabilities        129.96%         133.56%

____________
(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.