PDL Community Bancorp Announces 2021 First Quarter Results

BRONX, New York, UNITED STATES


NEW YORK, April 30, 2021 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the financial holding company for Ponce Bank (the “Bank”) and Mortgage World Bankers, Inc. (“Mortgage World”), reported net income of $2.5 million, or $0.15 per basic and diluted share, for the first quarter of 2021, compared to net income of $1.6 million, or $0.10 per basic and diluted share, for the prior quarter and a net loss of ($1.2 million), or ($0.07) per basic and diluted share, for the first quarter of 2020.

First Quarter Highlights

  • Net interest income of $12.9 million for the current quarter increased $1.2 million, or 10.4% from prior quarter and increased $3.0 million, or 29.9% from same quarter last year.
  • Income before income taxes of $3.2 million for the current quarter increased $1.1 million, or 50.8% from prior quarter and increased $4.6 million, or 323.9% from same quarter last year.
  • Cost of interest-bearing deposits was 0.77% for the current quarter, a decrease from 0.94% from the prior quarter and 1.48% from same quarter last year.
  • The net interest margin was 4.00% for the current quarter, an increase from 3.78% for the prior quarter and 3.87% from same quarter last year.
  • The net interest rate spread was 3.76% for the current quarter, an increase from 3.50% for the prior quarter and 3.51% from same quarter last year.
  • The efficiency ratio was 76.94% for the current quarter compared to 84.71% for the prior quarter and 102.62% from same quarter last year.
  • Non-performing loans of $12.3 million increased $2.6 million year-over-year and equates to 0.99% of total loans receivable as of March 31, 2021.
  • Net loans receivable were $1.23 billion at March 31, 2021, an increase of $71.8 million, or 6.2%, from December 31, 2020.
  • Deposits were $1.14 billion at March 31, 2021, an increase of $109.0 million, or 10.6%, from December 31, 2020.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, the Company’s President and CEO, noted “This is a great start for the new year and reflects our executing well on all fronts. We significantly grew our deposit base while lowering our cost of funds; our loan portfolio continued to expand while improving our net interest margin. We continue investing in GPS, our Sales Force initiative, while lowering our operating expenses and increasing profitability. In addition, Mortgage World is contributing nicely to our product and income diversification. Importantly, these accomplishments could not have happened without the dedication and commitment of our expanding Ponce Family to each other, our values and our stakeholders. We are now poised to benefit from the rediscovery of the important role MDIs and CDFIs like us have in remediating the disparate effects of the pandemic, and the wealth and financial gaps present, in our communities.”

Executive Chairman’s Comments

Steven A. Tsavaris, the Company’s Executive Chairman, added “Our focus on building stakeholder value during 2021 is reflected in our Company’s nine-month payback of its $1.8 million acquisition of Mortgage World, the repurchase of 107,717 common shares during the first quarter of 2021, the renovation of four more branches and contributing to the stabilization of our communities with $132.5 million in PPP loans to over 1,700 small businesses.

Loan Payment Deferrals

Through March 31, 2021, 406 loans aggregating $376.1 million had received forbearance primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months. Of those 406 loans, 337 loans aggregating $303.6 million are no longer in deferment and continue performing pursuant to their terms and 69 loans in the amount of $72.4 million remained in deferment and are in renewed forbearance. All of these loans had been performing in accordance with their contractual obligations prior to the granting of the initial forbearance. The Company actively monitors the business activities of borrowers in forbearance and seeks to determine their capacity to resume payments as contractually obligated upon the termination of the forbearance period. The initial and extended forbearances are short-term modifications made on a good faith basis in response to the COVID-19 pandemic and in furtherance of governmental policies.

Results of Operations Summary

Net income for the three months ended March 31, 2021 was $2.5 million, compared to $1.6 million of net income for the three months ended December 31, 2020 and a ($1.2 million) net loss for the three months ended March 31, 2020. The change from the three months ended March 31, 2020 is primarily due to a $3.3 million increase in non-interest income, a $3.0 million increase in net interest income, a decrease of $460,000 in provision for loan losses, offset by a $2.1 million increase in non-interest expense and a $941,000 increase in provision for income taxes.

Net interest income for the three months ended March 31, 2021 was $12.9 million, an increase of $1.2 million, or 10.4%, from the three months ended December 31, 2020 and an increase of $3.0 million, or 29.9%, from the three months ended March 31, 2020.

Net interest margin was 4.00% for the three months ended March 31, 2021, an increase of 22 basis points from 3.78% for the three months ended December 31, 2020 and an increase of 13 basis points from 3.87% for the three months ended March 31, 2020.

Net interest rate spread increased by 25 basis points to 3.76% for the three months ended March 31, 2021 from 3.51% for the three months ended March 31, 2020. The increase in the net interest rate spread was primarily due to a decrease in the average rates on interest-bearing liabilities of 62 basis points to 0.94% for the three months ended March 31, 2020 from 1.56% for the three months ended March 31, 2020 offset by a decrease on the average yield on interest-earning assets of 37 basis points to 4.70% for the three months ended March 31, 2021 from 5.07% for the three months ended March 31, 2020.

Non-interest income decreased $906,000 to $3.9 million for the three months ended March 31, 2021 from $4.8 million for the three months ended December 31, 2020 and increased $3.3 million from $622,000 for the three months ended March 31, 2020. The decrease in non-interest income for the three months ended March 31, 2021 compared to the three months ended December 31, 2020 was primarily due to a $1.2 million decrease on income from the sale of mortgage loans, a $232,000 decrease in brokerage commissions, and a decrease of $209,000 in other non-interest income, offset by a non-recurring $663,000 gain, net of expenses, on the sale of real property recognized in the first quarter of 2021 and an increase of $163,000 in late and prepayment charges. The increase in non-interest income for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 was due to $1.5 million in income on sale of mortgage loans attributable to Mortgage World operations, a non-recurring $663,000 gain, net of expenses, on the sale of real property recognized in the first quarter of 2021 and an increase of $539,000 in loan origination fees.

Non-interest expense decreased $1.0 million, or 7.5%, to $12.9 million for the three months ended March 31, 2021, compared to $14.0 million for the three months ended December 31, 2020 and increased $2.1 million, or 19.3% from $10.8 million for the three months ended March 31, 2020. The decrease in non-interest expense for the three months ended March 31, 2021, compared to the three months ended December 31, 2020 was attributable to decreases of $1.2 million in compensation and benefits and $271,000 in professional fees, offset by an increase of $410,000 in direct loan expenses. The increase in non-interest expense for the three months ended March 31, 2021, compared to the three months ended March 31, 2020 primarily reflects Mortgage World operations and was attributable to increases of $797,000 in direct loan expenses, $656,000 in compensation and benefits, $617,000 in occupancy and equipment, $325,000 in other non-interest expense and $127,000 in data processing expenses, offset by decreases of $365,000 in professional fees and $196,000 in marketing and promotional expenses.

Balance Sheet Summary

Total assets increased $78.5 million, or 5.8%, to $1.43 billion at March 31, 2021 from $1.36 billion at December 31, 2020. The increase in total assets is attributable to increases in net loans receivable of $71.8 million, including $57.7 million in PPP loans, cash and cash equivalents of $18.0 million, available-for-sale securities of $13.4 million, premises and equipment, net, of $1.6 million and accrued interest receivable of $1.2 million. The increase in total assets was reduced by decreases in mortgage loans held for sale, at fair value, of $21.7 million, other assets of $5.4 million, FHLBNY stock of $369,000 and deferred taxes of $87,000.

Total liabilities increased $76.8 million, or 6.4%, to $1.27 billion at March 31, 2021 from $1.20 billion at December 31, 2020. The increase in total liabilities was mainly attributable to increases of $109.0 million in deposits and $2.2 million in advance payments by borrowers for taxes and insurance. The increase in total liabilities was offset by decreases of $18.3 million in warehouse lines of credit, $8.0 million in advances from FHLBNY, $7.3 million in other liabilities and $807,000 in mortgage loan fundings payable.

Total stockholders’ equity increased $1.7 million, or 1.0%, to $161.2 million at March 31, 2021 from $159.5 million at December 31, 2020. The $1.7 million increase in stockholders’ equity was mainly attributable to $2.5 million in net income, $352,000 related to restricted stock units and stock options, $134,000 related to the Company’s Employee Stock Ownership Plan, offset by $1.2 million in stock repurchases and $107,000 related to unrealized loss on available-for-sale securities.

As of March 31, 2021, the Company had repurchased a total of 1,631,570 shares under the repurchase programs at a weighted average price of $13.27 per share, of which 1,444,776 were reported as treasury stock. Of the 1,631,570 shares repurchased, a total of 186,960 shares have been used for grants given to directors, executive officers and non-executive officers under the Company’s 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2020 and 2019. Of these 186,960 shares, 166 shares were retained to satisfy a recipient’s taxes and other withholding obligations and these shares remain as part of treasury stock.

About PDL Community Bancorp

PDL Community Bancorp is the financial holding company for Ponce Bank and Mortgage World Bankers, Inc. Ponce Bank is a federally chartered savings association. Ponce Bank is designated a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent from alternative funding sources and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises as well as mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock. Mortgage World Bankers, Inc. is a mortgage lender operating in five states. As a Federal Housing Administration (“FHA”)-approved Title II lender, Mortgage World Bankers, Inc. originates and sells to investors single family mortgage loans guaranteed by the FHA, as well as conventional mortgages.

Forward Looking Statements

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

  

PDL Community Bancorp and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)

                    
 As of 
 March 31,  December 31,  September 30,  June 30,  March 31, 
 2021  2020  2020  2020  2020 
ASSETS                   
Cash and due from banks:                   
Cash$13,551  $26,936  $14,302  $15,875  $13,165 
Interest-bearing deposits in banks 76,571   45,142   61,790   60,756   90,795 
Total cash and cash equivalents 90,122   72,078   76,092   76,631   103,960 
Available-for-sale securities, at fair value 30,929   17,498   14,512   13,800   19,140 
Held-to-maturity securities, at amortized cost 1,732   1,743          
Placement with banks 2,739   2,739   2,739       
Mortgage loans held for sale, at fair value 13,725   35,406   13,100   1,030   1,030 
Loans receivable, net 1,230,458   1,158,640   1,108,956   1,072,417   972,979 
Accrued interest receivable 12,547   11,396   9,995   7,677   4,198 
Premises and equipment, net 33,625   32,045   32,113   32,102   32,480 
Federal Home Loan Bank of New York stock (FHLBNY), at cost 6,057   6,426   6,414   6,422   7,889 
Deferred tax assets 4,569   4,656   3,586   4,328   4,140 
Other assets 7,204   12,604   9,844   5,824   5,127 
Total assets$1,433,707  $1,355,231  $1,277,351  $1,220,231  $1,150,943 
LIABILITIES AND STOCKHOLDERS' EQUITY                   
Liabilities:                   
Deposits$1,138,546  $1,029,579  $973,244  $936,219  $829,741 
Accrued interest payable 66   60   58   48   86 
Advance payments by borrowers for taxes and insurance 9,264   7,019   7,739   6,007   8,295 
Advances from the Federal Home Loan Bank of New York and others 109,255   117,255   117,283   117,284   152,284 
Warehouse lines of credit 11,664   29,961   9,065       
Mortgage loan fundings payable 676   1,483   1,457       
Other liabilities 3,032   10,330   10,131   5,674   4,794 
Total liabilities 1,272,503   1,195,687   1,118,977   1,065,232   995,200 
Commitments and contingencies                   
Stockholders' Equity:                   
Preferred stock, $0.01 par value; 10,000,000 shares authorized              
Common stock, $0.01 par value; 50,000,000 shares authorized 185   185   185   185   185 
Treasury stock, at cost (19,285)  (18,114)  (18,281)  (17,172)  (16,490)
Additional paid-in-capital 85,470   85,105   85,817   85,481   85,132 
Retained earnings 99,993   97,541   95,913   91,904   92,475 
Accumulated other comprehensive income 28   135   168   150   110 
Unearned compensation ─ ESOP (5,187)  (5,308)  (5,428)  (5,549)  (5,669)
Total stockholders' equity 161,204   159,544   158,374   154,999   155,743 
Total liabilities and stockholders' equity$1,433,707  $1,355,231  $1,277,351  $1,220,231  $1,150,943 


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

 Three Months Ended 
 March 31,  December 31,  September 30,  June 30,  March 31, 
 2021  2020  2020  2020  2020 
               
 (Dollars in thousands, except share and per share data) 
Interest and dividend income:                   
Interest on loans receivable$14,925  $14,070  $13,375  $12,162  $12,782 
Interest on deposits due from banks 2   10   5   3   66 
Interest and dividend on securities and FHLBNY stock 250   233   223   228   182 
Total interest and dividend income 15,177   14,313   13,603   12,393   13,030 
Interest expense:                   
Interest on certificates of deposit 1,219   1,422   1,597   1,730   1,827 
Interest on other deposits 382   448   500   534   692 
Interest on borrowings 684   769   655   608   587 
Total interest expense 2,285   2,639   2,752   2,872   3,106 
Net interest income 12,892   11,674   10,851   9,521   9,924 
Provision for loan losses 686   406   620   271   1,146 
Net interest income after provision for loan losses 12,206   11,268   10,231   9,250   8,778 
Non-interest income:                   
Service charges and fees 329   263   236   145   248 
Brokerage commissions 223   455   447   22   50 
Late and prepayment charges 244   81   145   13   119 
Income on sale of mortgage loans 1,508   2,748   1,372       
Loan origination 539   656   269       
Gain on sale of real property 663      4,412       
Other 387   596   371   394   205 
Total non-interest income 3,893   4,799   7,252   574   622 
Non-interest expense:                   
Compensation and benefits 5,664   6,846   5,554   4,645   5,008 
Occupancy and equipment 2,634   2,686   2,584   2,277   2,017 
Data processing expenses 594   578   596   496   467 
Direct loan expenses 1,009   599   437   199   212 
Insurance and surety bond premiums 146   166   138   128   121 
Office supplies, telephone and postage 409   385   386   312   316 
Professional fees 1,262   1,533   1,553   1,336   1,627 
Marketing and promotional expenses 38      127   145   234 
Directors fees 69   69   69   69   69 
Regulatory dues 60   59   49   56   46 
Other operating expenses 1,030   1,034   834   772   705 
Total non-interest expense 12,915   13,955   12,327   10,435   10,822 
Income (loss) before income taxes 3,184   2,112   5,156   (611)  (1,422)
Provision (benefit) for income taxes 732   484   1,147   (40)  (209)
Net income (loss)$2,452  $1,628  $4,009  $(571) $(1,213)
Earnings (loss) per share:                   
Basic$0.15  $0.10  $0.24  $(0.03) $(0.07)
Diluted$0.15  $0.10  $0.24  $(0.03) $(0.07)
Weighted average shares outstanding:                   
Basic 16,548,196   16,558,576   16,612,205   16,723,449   16,800,538 
Diluted 16,548,196   16,558,576   16,612,205   16,723,449   16,800,538 


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

  Three Months Ended March 31, 
  2021  2020  Variance $  Variance % 
             
  (Dollars in thousands, except share and per share data) 
Interest and dividend income:                
Interest on loans receivable $14,925  $12,782  $2,143   16.77%
Interest on deposits due from banks  2   66   (64)  (96.97%)
Interest and dividend on securities and FHLBNY stock  250   182   68   37.36%
Total interest and dividend income  15,177   13,030   2,147   16.48%
Interest expense:                
Interest on certificates of deposit  1,219   1,827   (608)  (33.28%)
Interest on other deposits  382   692   (310)  (44.80%)
Interest on borrowings  684   587   97   16.52%
Total interest expense  2,285   3,106   (821)  (26.43%)
Net interest income  12,892   9,924   2,968   29.91%
Provision for loan losses  686   1,146   (460)  (40.14%)
Net interest income after provision for loan losses  12,206   8,778   3,428   39.05%
Non-interest income:                
Service charges and fees  329   248   81   32.66%
Brokerage commissions  223   50   173   346.00%
Late and prepayment charges  244   119   125   105.04%
Income on sale of mortgage loans  1,508      1,508   %
Loan origination  539      539   %
Gain on sale of real property  663      663   %
Other  387   205   182   88.78%
Total non-interest income  3,893   622   3,271   525.88%
Non-interest expense:                
Compensation and benefits  5,664   5,008   656   13.10%
Occupancy and equipment  2,634   2,017   617   30.59%
Data processing expenses  594   467   127   27.19%
Direct loan expenses  1,009   212   797   375.94%
Insurance and surety bond premiums  146   121   25   20.66%
Office supplies, telephone and postage  409   316   93   29.43%
Professional fees  1,262   1,627   (365)  (22.43%)
Marketing and promotional expenses  38   234   (196)  (83.76%)
Directors fees  69   69      %
Regulatory dues  60   46   14   30.43%
Other operating expenses  1,030   705   325   46.10%
Total non-interest expense  12,915   10,822   2,093   19.34%
Income (loss) before income taxes  3,184   (1,422)  4,606   323.91%
Provision (benefit) for income taxes  732   (209)  941   450.24%
Net income (loss) $2,452  $(1,213) $3,665   302.14%
Earnings (loss) per share:                
Basic $0.15  $(0.07) N/A  N/A 
Diluted $0.15  $(0.07) N/A  N/A 
Weighted average shares outstanding:                
Basic  16,548,196   16,800,538  N/A  N/A 
Diluted  16,548,196   16,800,538  N/A  N/A 


PDL Community Bancorp and Subsidiaries
Key Metrics

 At or for the Three Months Ended 
 March 31,  December 31,  September 30,  June 30,  March 31, 
 2021  2020  2020  2020  2020 
Performance Ratios:                   
Return on average assets (1) 0.72%  0.50%  1.28%  (0.20%)  (0.46%)
Return on average equity (1) 6.16%  4.03%  9.95%  (1.47%)  (3.07%)
Net interest rate spread (1) (2) 3.76%  3.50%  3.33%  3.13%  3.51%
Net interest margin (1) (3) 4.00%  3.78%  3.65%  3.45%  3.87%
Non-interest expense to average assets (1) 3.82%  4.29%  3.95%  3.57%  4.07%
Efficiency ratio (4) 76.94%  84.71%  68.09%  103.37%  102.62%
Average interest-earning assets to average interest- bearing liabilities 133.25%  132.04%  134.35%  130.72%  129.16%
Average equity to average assets 11.77%  12.44%  12.90%  13.30%  14.85%
Capital Ratios:                   
Total capital to risk weighted assets (bank only) 15.80%  15.95%  16.93%  17.52%  17.84%
Tier 1 capital to risk weighted assets (bank only) 14.54%  14.70%  15.68%  16.26%  16.59%
Common equity Tier 1 capital to risk-weighted assets (bank only) 14.54%  14.70%  15.68%  16.26%  16.59%
Tier 1 capital to average assets (bank only) 10.78%  11.19%  11.46%  11.63%  12.76%
Asset Quality Ratios:                   
Allowance for loan losses as a percentage of total loans 1.24%  1.27%  1.28%  1.27%  1.37%
Allowance for loan losses as a percentage of nonperforming loans 126.07%  127.28%  131.00%  118.89%  138.47%
Net (charge-offs) recoveries to average outstanding loans (1) (0.02%)  0.03%  0.00%  0.01%  0.00%
Non-performing loans as a percentage of total gross loans 0.99%  1.00%  0.98%  1.08%  1.00%
Non-performing loans as a percentage of total assets 0.86%  0.86%  0.86%  0.95%  0.85%
Total non-performing assets as a percentage of total assets 0.86%  0.86%  0.86%  0.95%  0.85%
Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets 1.32%  1.35%  1.36%  1.51%  1.49%
Other:                   
Number of offices (5)20  20  20  14  14 
Number of full-time equivalent employees (6)236  227  230  179  184 
                    

(1) Annualized where appropriate.
(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
(4) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
(5) Number of offices at March 31, 2021 included 6 offices due to acquisition of Mortgage World.
(6) Number of full-time equivalent employees at March 31, 2021 included 46 full-time equivalent employees related to Mortgage World.


PDL Community Bancorp and Subsidiaries
Loan Portfolio

  As of 
  March 31,  December 31,  September 30,  June 30,  March 31, 
  2021  2020  2020  2020  2020 
  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent 
                               
  (Dollars in thousands) 
Mortgage loans:                                        
1-4 family residential                                        
Investor Owned $317,895   25.51% $319,596   27.27% $320,438   28.55% $317,055   29.25% $308,206   31.31%
Owner-Occupied  99,985   8.02%  98,795   8.43%  93,340   8.31%  91,345   8.43%  93,887   9.54%
Multifamily residential  315,078   25.28%  307,411   26.23%  284,775   25.37%  274,641   25.34%  259,326   26.35%
Nonresidential properties  215,340   17.28%  218,929   18.68%  217,771   19.40%  209,068   19.29%  210,225   21.36%
Construction and land  119,339   9.57%  105,858   9.03%  99,721   8.88%  96,841   8.93%  100,202   10.18%
Total mortgage loans  1,067,637   85.66%  1,050,589   89.64%  1,016,045   90.52%  988,950   91.24%  971,846   98.74%
Non-mortgage loans:                                        
Business loans (1)  142,135   11.40%  94,947   8.10%  96,700   8.61%  93,394   8.62%  11,183   1.13%
Consumer loans (2)  36,706   2.94%  26,517   2.26%  9,806   0.87%  1,578   0.14%  1,288   0.13%
Total non-mortgage loans  178,841   14.34%  121,464   10.36%  106,506   9.48%  94,972   8.76%  12,471   1.26%
Total loans, gross  1,246,478   100.00%  1,172,053   100.00%  1,122,551   100.00%  1,083,922   100.00%  984,317   100.00%
                                         
Net deferred loan origination costs  (512)      1,457       786       2,256       2,146     
Allowance for losses on loans  (15,508)      (14,870)      (14,381)      (13,761)      (13,484)    
                                         
Loans, net $1,230,458      $1,158,640      $1,108,956      $1,072,417      $972,979     

(1) As of March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, business loans include $132.5 million, $85.3 million, $86.2 million and $83.6 million, respectively, of PPP loans.
(2) As of March 31, 2021, December 31, 2020 and September 30, 2020, consumer loans include $35.9 million, $25.5 million and $8.7 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain Technologies, LLC.


PDL Community Bancorp and Subsidiaries
Deposits

  As of 
  March 31,  December 31,  September 30,  June 30,  March 31, 
  2021  2020  2020  2020  2020 
  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent 
                               
  (Dollars in thousands) 
Demand (1) $242,255   21.28% $189,855   18.44% $186,328   19.15% $192,429   20.55% $110,801   13.35%
Interest-bearing deposits:                                        
NOW/IOLA accounts  32,235   2.83%  39,296   3.82%  29,618   3.04%  26,477   2.83%  31,586   3.81%
Money market accounts  157,271   13.81%  136,258   13.23%  148,877   15.30%  125,631   13.42%  121,629   14.66%
Reciprocal deposits  137,402   12.07%  131,363   12.76%  108,367   11.13%  96,915   10.35%  62,384   7.52%
Savings accounts  130,211   11.44%  125,820   12.22%  120,883   12.42%  119,277   12.74%  112,318   13.53%
Total NOW, money market, reciprocal and savings accounts  457,119   40.15%  432,737   42.03%  407,745   41.89%  368,300   39.34%  327,917   39.52%
Certificates of deposit of $250K or more  77,418   6.80%  78,435   7.62%  80,403   8.26%  81,786   8.74%  81,486   9.82%
Brokered certificates of deposit  86,004   7.55%  52,678   5.12%  55,878   5.74%  55,878   5.97%  51,661   6.23%
Listing service deposits (2)  61,133   5.37%  39,476   3.83%  49,342   5.07%  54,370   5.81%  55,842   6.73%
All other certificates of deposit less than $250K  214,617   18.85%  236,398   22.96%  193,548   19.89%  183,456   19.59%  202,034   24.35%
Total certificates of deposit  439,172   38.57%  406,987   39.53%  379,171   38.96%  375,490   40.11%  391,023   47.13%
Total interest-bearing deposits  896,291   78.72%  839,724   81.56%  786,916   80.85%  743,790   79.45%  718,940   86.65%
Total deposits $1,138,546   100.00% $1,029,579   100.00% $973,244   100.00% $936,219   100.00% $829,741   100.00%

(1) As of March 31, 2021, December 31, September 30, 2020 and June 30, 2020, included in demand deposits are deposits related to net PPP funding.
(2) As of March 31, 2021, there were $28.8 million in individual listing service deposits amounting to $250,000 or more.

PDL Community Bancorp and Subsidiaries
Nonperforming Assets

 Three Months Ended 
 March 31,  December 31,  September 30,  June 30,  March 31, 
 2021  2020  2020  2020  2020 
               
 (Dollars in thousands) 
Non-accrual loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$2,907  $2,808  $2,750  $2,767  $2,327 
Owner occupied 1,585   1,053   1,075   1,327   1,069 
Multifamily residential 946   946   210       
Nonresidential properties 3,761   3,776   3,830   4,355   3,228 
Construction and land              
Non-mortgage loans:                   
Business              
Consumer              
Total non-accrual loans (not including non-accruing troubled debt restructured loans)$9,199  $8,583  $7,865  $8,449  $6,624 
                    
Non-accruing troubled debt restructured loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$246  $249  $267  $272  $276 
Owner occupied 2,195   2,197   2,191   2,198   2,185 
Multifamily residential              
Nonresidential properties 661   654   655   656   653 
Construction and land              
Non-mortgage loans:                   
Business              
Consumer              
Total non-accruing troubled debt restructured loans 3,102   3,100   3,113   3,126   3,114 
Total non-accrual loans$12,301  $11,683  $10,978  $11,575  $9,738 
Total non-performing assets$12,301  $11,683  $10,978  $11,575  $9,738 
                    
Accruing troubled debt restructured loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$3,362  $3,378  $3,396  $3,730  $3,730 
Owner occupied 2,466   2,505   2,177   2,348   2,359 
Multifamily residential              
Nonresidential properties 750   754   759   762   1,300 
Construction and land              
Non-mortgage loans:                   
Business              
Consumer              
Total accruing troubled debt restructured loans$6,578  $6,637  $6,332  $6,840  $7,389 
Total non-performing assets and accruing troubled debt restructured loans$18,879  $18,320  $17,310  $18,415  $17,127 
Total non-performing loans to total gross loans 0.99%  1.00%  0.98%  1.08%  1.00%
Total non-performing assets to total assets 0.86%  0.86%  0.86%  0.95%  0.85%
Total non-performing assets and accruing troubled debt restructured loans to total assets 1.32%  1.35%  1.36%  1.51%  1.49%

PDL Community Bancorp and Subsidiaries
Average Balance Sheets

 For the Three Months Ended March 31, 
 2021  2020
 
 Average          Average         
 Outstanding      Average  Outstanding      Average 
 Balance  Interest  Yield/Rate (1)  Balance  Interest  Yield/Rate (1) 
                  
 (Dollars in thousands) 
Interest-earning assets:                       
Loans (2)$1,239,127  $14,925  4.88%  $975,499  $12,782  5.27% 
Securities (3) 22,516   176  3.17%   18,218   83  1.83% 
Other (4) 46,581   76  0.66%   38,220   165  1.73% 
Total interest-earning assets 1,308,224   15,177  4.70%   1,031,937   13,030  5.07% 
Non-interest-earning assets 63,951           37,467         
Total assets$1,372,175          $1,069,404         
Interest-bearing liabilities:                       
NOW/IOLA$33,085  $38  0.47%  $29,026  $38  0.53% 
Money market 277,104   304  0.44%   160,471   618  1.54% 
Savings 126,961   39  0.12%   113,710   35  0.12% 
Certificates of deposit 405,980   1,219  1.22%   379,154   1,827  1.93% 
Total deposits 843,130   1,600  0.77%   682,361   2,518  1.48% 
Advance payments by borrowers 8,899   1  0.05%   7,980   1  0.05% 
Borrowings 129,755   684  2.14%   108,640   587  2.17% 
Total interest-bearing liabilities 981,784   2,285  0.94%   798,981   3,106  1.56% 
Non-interest-bearing liabilities:                       
Non-interest-bearing demand 215,116          108,646        
Other non-interest-bearing liabilities 13,754          2,968        
Total non-interest-bearing liabilities 228,870          111,614        
Total liabilities 1,210,654   2,285       910,595   3,106     
Total equity 161,521           158,809         
Total liabilities and total equity$1,372,175      0.94%  $1,069,404      1.56% 
Net interest income    $12,892          $9,924     
Net interest rate spread (5)        3.76%          3.51% 
Net interest-earning assets (6)$326,440          $232,956         
Net interest margin (7)        4.00%          3.87% 
Average interest-earning assets to interest-bearing liabilities        133.25%          129.16% 

(1) Annualized where appropriate.
(2) Loans include loans and loans held for sale.
(3) Securities include available-for-sale securities and held-to-maturity securities.
(4) Includes FHLBNY demand account and FHLBNY stock dividends.
(5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(6) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(7) Net interest margin represents net interest income divided by average total interest-earning assets.

PDL Community Bancorp and Subsidiaries
Other Data

 As of 
 March 31,  December 31,  September 30,  June 30,  March 31, 
 2021  2020  2020  2020  2020 
               
 (Dollars in thousands, except share and per share data) 
Other Data                   
Common shares issued 18,463,028   18,463,028   18,463,028   18,463,028   18,463,028 
Less treasury shares 1,444,776   1,337,059   1,346,679   1,228,737   1,163,288 
Common shares outstanding at end of period 17,018,252   17,125,969   17,116,349   17,234,291   17,299,740 
                    
Book value per share$9.47  $9.32  $9.25  $8.99  $9.00 
Tangible book value per share$9.47  $9.32  $9.25  $8.99  $9.00 

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