PDL Community Bancorp Announces 2021 Second Quarter Results

Rhea-AI Summary

PDL Community Bancorp (NASDAQ: PDLB) reported a net income of $5.9 million, or $0.35 per share, for Q2 2021, a significant rise from $2.5 million in Q1 2021 and a loss of $571,000 in Q2 2020. Net interest income increased 6.5% from the previous quarter and 44.2% year-over-year, totaling $13.7 million. Non-performing loans decreased to $9.0 million, equating to 0.66% of total loans. Total assets grew to $1.55 billion, with deposits rising to $1.24 billion, showcasing solid financial health and a promising growth trajectory.

Positive

• Net income rose to $5.9 million, up 146.5% from prior quarter and shifted from a loss last year.
• Net interest income increased by $840,000 (6.5%) from the previous quarter and $4.2 million (44.2%) year-over-year.
• Total assets grew by 14.2% to $1.55 billion.
• Deposits increased 20.1% to $1.24 billion.

Negative

• Net interest margin decreased to 3.84% from 4.00% in the prior quarter.
• Non-interest expense rose by 5.6% from the previous quarter and increased significantly year-over-year.
• Provision for loan losses increased by $315,000 compared to last year.

NEW YORK, Aug. 05, 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 $5.9 million, or $0.35 per basic and diluted share, for the second quarter of 2021, compared to net income of $2.5 million, or $0.15 per basic and diluted share, for the prior quarter and a net loss of ($571,000), or ($0.03) per basic and diluted share, for the second quarter of 2020.

Second Quarter Highlights

• Net interest income of $13.7 million for the current quarter increased $840,000, or 6.5%, from prior quarter and increased $4.2 million, or 44.2%, from same quarter last year.
• Income before income taxes of $7.8 million for the current quarter increased $4.7 million, or 146.5%, from prior quarter and increased $8.5 million from a loss of ($611,000) for the same quarter last year.
• Cost of interest-bearing deposits was 0.67% for the current quarter, a decrease from 0.77% for the prior quarter and from 1.27% for the same quarter last year.
• Net interest margin was 3.84% for the current quarter, a decrease from 4.00% for the prior quarter and an increase from 3.45% for the same quarter last year.
• Net interest rate spread was 3.60% for the current quarter, a decrease from 3.76% for the prior quarter and an increase from 3.13% for the same quarter last year.
• Efficiency ratio was 61.80% for the current quarter compared to 76.94% for the prior quarter and 103.37% for the same quarter last year.
• Non-performing loans of $9.0 million decreased $2.5 million year-over-year and equates to 0.66% of total loans receivable as of June 30, 2021.
• Net loans receivable were $1.34 billion at June 30, 2021, an increase of $184.9 million, or 16.0%, from December 31, 2020.
• Deposits were $1.24 billion at June 30, 2021, an increase of $206.6 million, or 20.1%, from December 31, 2020.
  

President and Chief Executive Officer’s Comments

Carlos P. Naudon, the Company’s President and CEO, noted “We are pleased to have added to the great start we had for 2021; we continue executing well on all fronts. Our deposit growth is well centered on new customer acquisition while lowering our cost of funds; likewise, our loan portfolio expansion continues with little adverse effect on our net interest margin and ALLL. Importantly, our growth in PPP loans, a large but not the sole source of our growth, has had a very positive impact on our communities. GPS, our Salesforce initiative, has begun to tangibly demonstrate its value while we focus on lowering our operating expenses and increasing profitability. On June 15, 2021, Ponce Bank was approved by the United States Department of the Treasury to receive $1.8 million in federal Economic Relief Funds for Small Businesses. This is further evidence that we are well positioned 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 “As we cross the first anniversary of our acquisition, we are pleased that Mortgage World continues to contribute to our product expansion and diversification; its integration with Ponce Bank branches will be enhanced by the renovation of our banking facilities.

Loan Payment Deferrals

Through June 30, 2021, 417 loans aggregating $385.0 million had received forbearance, primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months, of which 23 loans have since been paid-off by borrowers as of June 30, 2021. As of June 30, 2021, 353 loans aggregating $318.7 million were no longer in forbearance and continue performing pursuant to their terms and 41 loans in the amount of $47.8 million remained in forbearance as a result of renewed forbearance for a period of three months. Of the 41 loans receiving renewed forbearance, 27 loans, totaling $23.3 million are related to one-to-four family residential real estate. 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 June 30, 2021 was $5.9 million, compared to $2.5 million of net income for the three months ended March 31, 2021 and a ($571,000) net loss for the three months ended June 30, 2020.

The $3.5 million increase in net income for the three months ended June 30, 2021 compared to the three months ended March 31, 2021 is due to an increase of $4.4 million in non-interest income primarily due to an increase of $3.5 million, net of expenses, in gain on sale of real property. The increase in net income was also attributable to an increase of $840,000 in net interest income, a decrease of $100,000 in provision for loan losses, offset by increases of $1.2 million in provision for income taxes and $726,000 in non-interest expense.

The $6.5 million increase in net income for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 is due to an increase of $7.8 million in non-interest income primarily due to an increase of $4.2 million, net of expenses, in gain on sale of real property and $1.3 million in income on sale of mortgage loans attributable to Mortgage World. The increase in net income was also attributable to $4.2 million in net interest income. The increase in net income was offset by increases of $3.2 million in non-interest expense, $2.0 million in provision for income taxes, and $315,000 in provision for loan losses.

Net income for the six months ended June 30, 2021 was $8.4 million, compared to a ($1.8 million) net loss for the six months ended June 30, 2020. The change from the six months ended June 30, 2020 is primarily due to an $11.0 million increase in non-interest income primarily due to $4.8 million, net of expenses, in gain on sale of real property, $2.8 million in income on sale of mortgage loans and $1.5 million in income from loan originations attributable to Mortgage World. The increase in net income was also attributable to a $7.2 million increase in net interest income and a decrease of $145,000 in provision for loan losses. The increase in net income was offset by increases of $5.3 million in non-interest expense and $2.9 million in provision for income taxes.

Net interest income for the three months ended June 30, 2021 was $13.7 million, an increase of $840,000, or 6.5%, compared to the three months ended March 31, 2021 and an increase of $4.2 million, or 44.2%, compared to the three months ended June 30, 2020. The increase of $840,000 in net interest income compared to the three months ended March 31, 2021 was attributable to an increase of $667,000 in interest and dividend income and a decrease of $173,000 in interest expense. The increase of $4.2 million in net interest income for the three months ended June 30, 2021 compared to three months ended June 30, 2020 was attributable to an increase of $3.5 million in interest and dividend income and a decrease of $760,000 in interest expense.

Net interest income for the six months ended June 30, 2021 was $26.6 million, an increase of $7.2 million, or 36.9%, compared to the six months ended June 30, 2020. The increase in net interest income was attributable to an increase of $5.6 million in interest and dividend income and a decrease of $1.6 million in interest expense.

Net interest margin was 3.84% for the three months ended June 30, 2021, a decrease of 16 basis points from 4.00% for the three months ended March 31, 2021 and an increase of 39 basis points from 3.45% for the three months ended June 30, 2020. 

Net interest rate spread decreased by 16 basis points to 3.60% for the three months ended June 30, 2021 from 3.76% for the three months ended March 31, 2021 and increased by 47 basis points from 3.13% for the three months ended June 30, 2020. The decrease in the net interest rate spread for the three months ended March 31, 2021 was primarily due to a decrease in the average yields on interest-earning assets of 27 basis points to 4.43% for the three months ended June 30, 2021 from 4.70% for the three months ended March 31, 2021, offset by a decrease on the average rates on interest-bearing liabilities of 11 basis points to 0.83% for the three months ended June 30, 2021 from 0.94% for the three months ended March 31, 2021. The increase in the net interest rate spread for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 was primarily due to a decrease on the average rates on interest-bearing liabilities of 53 basis points to 0.83% for the three months ended June 30, 2021 from 1.36% for the three months ended June 30, 2020, offset by a slight decrease in the average yields on interest-earning assets of 6 basis points to 4.43% for the three months ended June 30, 2021 from 4.49% for the three months ended June 30, 2020.

Non-interest income increased $4.4 million to $8.3 million for the three months ended June 30, 2021 from $3.9 million for the three months ended March 31, 2021 and increased $7.8 million from $574,000 for the three months ended June 30, 2020.

The increase in non-interest income for the three months ended June 30, 2021 compared to the three months ended March 31, 2021 was primarily due to increases of $3.5 million, net of expenses, from gain on the sale of real property recognized in the second quarter of 2021, $432,000 in loan origination fees, $425,000 in other non-interest income and $207,000 in brokerage commissions, offset by a decrease of $220,000 in income on sale of mortgage loans attributable to Mortgage World operations.

The increase in non-interest income for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 was primarily due to increases of $4.2 million, net of expenses, from gain on the sale of real property, $1.3 million in income on sale of mortgage loans, $971,000 in loan origination fees, $418,000 in other non-interest income, $408,000 in brokerage commissions, $285,000 in late and prepayment charges and $221,000 service charges and fees.

Non-interest income increased $11.0 million to $12.2 million for the six months ended June 30, 2021 from $1.2 million for the six months ended June 30, 2020. The increase in non-interest income for the six months ended June 30, 2021 compared to the six months ended June 30, 2020 was primarily due to increases of $4.8 million, net of expenses, from gain on the sale of real property, $2.8 million on sale of mortgage loans and $1.5 million in loan originations attributable to Mortgage World. Other increases in non-interest income are $600,000 in other non-interest income, $581,000 in brokerage commissions, $410,000 in late and prepayment charges and $302,000 in service charges and fees.

Non-interest expense increased $726,000, or 5.6%, to $13.6 million for the three months ended June 30, 2021, from $12.9 million for the three months ended March 31, 2021 and increased $3.2 million from $10.4 million for the three months ended June 30, 2020.

The increase in non-interest expense for the three months ended June 30, 2021, compared to the three months ended March 31, 2021 was attributable to increases of $1.6 million in professional fees, primarily attributable to an increase of $1.0 million in consulting expenses related to a third-party service provider that provided loan origination services related to the PPP loans, $204,000 in occupancy and equipment, $142,000 in direct loan expenses, and $139,000 in data processing expenses, offset by a decrease of $1.5 million 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.

The increase in non-interest expense for the three months ended June 30, 2021, compared to the three months ended June 30, 2020 primarily reflects increases of $1.6 million in professional fees, primarily attributable to an increase of $1.2 million in consulting expenses related to a third-party service provider that provided loan origination services related to PPP loans, $952,000 in direct loan expenses, $561,000 in occupancy and equipment, and $237,000 in data processing expenses, offset by a decrease of $433,000 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.

Non-interest expense increased $5.3 million, or 24.9%, to $26.6 million for the six months ended June 30, 2021, compared to $21.3 million for the six months ended June 30, 2020. The increase in non-interest expense for the six months ended June 30, 2021, compared to the six months ended June 30, 2020 was attributable to increases of $1.7 million in direct loan expenses, $1.2 million in occupancy and equipment, $1.2 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, $364,000 in data processing expenses and $511,000 in other operating expenses.

Balance Sheet Summary

Total assets increased $192.4 million, or 14.2%, to $1.55 billion at June 30, 2021 from $1.36 billion at December 31, 2020. The increase in total assets is attributable to increases of $184.9 million in net loans receivable, including $156.2 million increases in PPP loans, $31.0 million in available-for-sale securities, $2.0 million in premises and equipment, net, $1.7 million in accrued interest receivable and $837,000 in deferred taxes. The increase in total assets was reduced by decreases of $20.1 million in mortgage loans held for sale, at fair value, $6.0 million in cash and cash equivalents, $1.8 million in other assets, and $270,000 in FHLBNY stock.

Total liabilities increased $180.0 million, or 15.1%, to $1.38 billion at June 30, 2021 from $1.20 billion at December 31, 2020. The increase in total liabilities was mainly attributable to increases of $206.6 million in deposits and $663,000 in advance payments by borrowers for taxes and insurance, offset by decreases of $16.9 million in warehouse lines of credit, $8.0 million in advances from FHLBNY and $1.6 million in other liabilities.

Total stockholders’ equity increased $12.4 million, or 7.8%, to $171.9 million at June 30, 2021 from $159.5 million at December 31, 2020. The $12.4 million increase in stockholders’ equity was mainly attributable to $8.4 million in net income, $3.1 million in net treasury stock activity, $704,000 related to restricted stock units and stock options, $298,000 related to the Company’s Employee Stock Ownership Plan offset by $176,000 related to unrealized loss on available-for-sale securities.   

As of June 30, 2021, the Company had repurchased a total of 1,670,619 shares under the repurchase programs at a weighted average price of $13.22 per share, of which 1,135,086 were reported as treasury stock. Of the 1,670,619 shares repurchased, 186,960 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. 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. In addition, 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
	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				2020				2020				2020
ASSETS
Cash and due from banks:
Cash	$	32,541			$	13,551			$	26,936			$	14,302			$	15,875
Interest-bearing deposits in banks		33,551				76,571				45,142				61,790				60,756
Total cash and cash equivalents		66,092				90,122				72,078				76,092				76,631
Available-for-sale securities, at fair value		48,536				30,929				17,498				14,512				13,800
Held-to-maturity securities, at amortized cost		1,720				1,732				1,743				—				—
Placement with banks		2,739				2,739				2,739				2,739				—
Mortgage loans held for sale, at fair value		15,308				13,725				35,406				13,100				1,030
Loans receivable, net		1,343,578				1,230,458				1,158,640				1,108,956				1,072,417
Accrued interest receivable		13,134				12,547				11,396				9,995				7,677
Premises and equipment, net		34,057				33,625				32,045				32,113				32,102
Federal Home Loan Bank of New York stock (FHLBNY), at cost		6,156				6,057				6,426				6,414				6,422
Deferred tax assets		5,493				4,569				4,656				3,586				4,328
Other assets		10,837				7,204				12,604				9,844				5,824
Total assets	$	1,547,650			$	1,433,707			$	1,355,231			$	1,277,351			$	1,220,231
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	1,236,161			$	1,138,546			$	1,029,579			$	973,244			$	936,219
Accrued interest payable		55				66				60				58				48
Advance payments by borrowers for taxes and insurance		7,682				9,264				7,019				7,739				6,007
Advances from the FHLBNY and others		109,255				109,255				117,255				117,283				117,284
Warehouse lines of credit		13,084				11,664				29,961				9,065				—
Mortgage loan fundings payable		743				676				1,483				1,457				—
Other liabilities		8,780				3,032				10,330				10,131				5,674
Total liabilities		1,375,760				1,272,503				1,195,687				1,118,977				1,065,232
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	)			(19,285	)			(18,114	)			(18,281	)			(17,172	)
Additional paid-in-capital		85,956				85,470				85,105				85,817				85,481
Retained earnings		105,925				99,993				97,541				95,913				91,904
Accumulated other comprehensive income		(41	)			28				135				168				150
Unearned compensation ─ ESOP		(5,066	)			(5,187	)			(5,308	)			(5,428	)			(5,549	)
Total stockholders' equity		171,890				161,204				159,544				158,374				154,999
Total liabilities and stockholders' equity	$	1,547,650			$	1,433,707			$	1,355,231			$	1,277,351			$	1,220,231

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

	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				2020				2020				2020
	(Dollars in thousands, except share and per share data)
Interest and dividend income:
Interest on loans receivable	$	15,603			$	14,925			$	14,070			$	13,375			$	12,162
Interest on deposits due from banks		2				2				10				5				3
Interest and dividend on securities and FHLBNY stock		239				250				233				223				228
Total interest and dividend income		15,844				15,177				14,313				13,603				12,393
Interest expense:
Interest on certificates of deposit		1,108				1,219				1,422				1,597				1,730
Interest on other deposits		382				382				448				500				534
Interest on borrowings		622				684				769				655				608
Total interest expense		2,112				2,285				2,639				2,752				2,872
Net interest income		13,732				12,892				11,674				10,851				9,521
Provision for loan losses		586				686				406				620				271
Net interest income after provision for loan losses		13,146				12,206				11,268				10,231				9,250
Non-interest income:
Service charges and fees		366				329				263				236				145
Brokerage commissions		430				223				455				447				22
Late and prepayment charges		298				244				81				145				13
Income on sale of mortgage loans		1,288				1,508				2,748				1,372				—
Loan origination		971				539				656				269				—
Gain on sale of real property		4,176				663				—				4,412				—
Other		812				387				596				371				394
Total non-interest income		8,341				3,893				4,799				7,252				574
Non-interest expense:
Compensation and benefits		4,212				5,664				6,846				5,554				4,645
Occupancy and equipment		2,838				2,634				2,686				2,584				2,277
Data processing expenses		733				594				578				596				496
Direct loan expenses		1,151				1,009				599				437				199
Insurance and surety bond premiums		143				146				166				138				128
Office supplies, telephone and postage		467				409				385				386				312
Professional fees		2,902				1,262				1,533				1,553				1,336
Marketing and promotional expenses		48				38				—				127				145
Directors fees		69				69				69				69				69
Regulatory dues		120				60				59				49				56
Other operating expenses		958				1,030				1,034				834				772
Total non-interest expense		13,641				12,915				13,955				12,327				10,435
Income (loss) before income taxes		7,846				3,184				2,112				5,156				(611	)
Provision (benefit) for income taxes		1,914				732				484				1,147				(40	)
Net income (loss)	$	5,932			$	2,452			$	1,628			$	4,009			$	(571	)
Earnings (loss) per share:
Basic	$	0.35			$	0.15			$	0.10			$	0.24			$	(0.03	)
Diluted	$	0.35			$	0.15			$	0.10			$	0.24			$	(0.03	)
Weighted average shares outstanding:
Basic		16,737,037				16,548,196				16,558,576				16,612,205				16,723,449
Diluted		16,773,606				16,548,196				16,558,576				16,612,205				16,723,449

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

		Six Months Ended June 30,
		2021				2020				Variance $				Variance %
		(Dollars in thousands, except share and per share data)
Interest and dividend income:
Interest on loans receivable		$	30,528			$	24,944			$	5,584				22.39	%
Interest on deposits due from banks			4				69				(65	)			(94.20	%)
Interest and dividend on securities and FHLBNY stock			489				410				79				19.27	%
Total interest and dividend income			31,021				25,423				5,598				22.02	%
Interest expense:
Interest on certificates of deposit			2,327				3,557				(1,230	)			(34.58	%)
Interest on other deposits			764				1,226				(462	)			(37.68	%)
Interest on borrowings			1,306				1,195				111				9.29	%
Total interest expense			4,397				5,978				(1,581	)			(26.45	%)
Net interest income			26,624				19,445				7,179				36.92	%
Provision for loan losses			1,272				1,417				(145	)			(10.23	%)
Net interest income after provision for loan losses			25,352				18,028				7,324				40.63	%
Non-interest income:
Service charges and fees			695				393				302				76.84	%
Brokerage commissions			653				72				581			*
Late and prepayment charges			542				132				410				310.61	%
Income on sale of mortgage loans			2,796				—				2,796				—	%
Loan origination			1,510				—				1,510				—	%
Gain on sale of real property			4,839				—				4,839				—	%
Other			1,199				599				600				100.17	%
Total non-interest income			12,234				1,196				11,038			*
Non-interest expense:
Compensation and benefits			9,876				9,653				223				2.31	%
Occupancy and equipment			5,472				4,294				1,178				27.43	%
Data processing expenses			1,327				963				364				37.80	%
Direct loan expenses			2,160				411				1,749				425.55	%
Insurance and surety bond premiums			289				249				40				16.06	%
Office supplies, telephone and postage			876				628				248				39.49	%
Professional fees			4,164				2,963				1,201				40.53	%
Marketing and promotional expenses			86				379				(293	)			(77.31	%)
Directors fees			138				138				—				—	%
Regulatory dues			180				102				78				76.47	%
Other operating expenses			1,988				1,477				511				34.60	%
Total non-interest expense			26,556				21,257				5,299				24.93	%
Income (loss) before income taxes			11,030				(2,033	)			13,063			*
Provision (benefit) for income taxes			2,646				(249	)			2,895			*
Net income (loss)		$	8,384			$	(1,784	)		$	10,168			*
Earnings (loss) per share:
Basic		$	0.50			$	(0.11	)		N/A				N/A
Diluted		$	0.50			$	(0.11	)		N/A				N/A
Weighted average shares outstanding:
Basic			16,643,138				16,761,993			N/A				N/A
Diluted			16,661,423				16,761,993			N/A				N/A

*Exceeds 500%

PDL Community Bancorp and Subsidiaries
Key Metrics

	At or for the Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				2020				2020				2020
Performance Ratios:
Return on average assets (1)		1.59	%			0.72	%			0.50	%			1.28	%			(0.20	%)
Return on average equity (1)		13.95	%			6.16	%			4.03	%			9.95	%			(1.47	%)
Net interest rate spread (1) (2)		3.60	%			3.76	%			3.50	%			3.33	%			3.13	%
Net interest margin (1) (3)		3.84	%			4.00	%			3.78	%			3.65	%			3.45	%
Non-interest expense to average assets (1)		3.65	%			3.82	%			4.29	%			3.95	%			3.57	%
Efficiency ratio (4)		61.80	%			76.94	%			84.71	%			68.09	%			103.37	%
Average interest-earning assets to average interest- bearing liabilities		140.13	%			133.25	%			132.04	%			134.35	%			130.72	%
Average equity to average assets		11.37	%			11.77	%			12.44	%			12.90	%			13.30	%
Capital Ratios:
Total capital to risk weighted assets (bank only)		16.08	%			15.80	%			15.95	%			16.93	%			17.52	%
Tier 1 capital to risk weighted assets (bank only)		14.83	%			14.54	%			14.70	%			15.68	%			16.26	%
Common equity Tier 1 capital to risk-weighted assets (bank only)		14.83	%			14.54	%			14.70	%			15.68	%			16.26	%
Tier 1 capital to average assets (bank only)		10.22	%			10.78	%			11.19	%			11.46	%			11.63	%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans		1.16	%			1.24	%			1.27	%			1.28	%			1.27	%
Allowance for loan losses as a percentage of nonperforming loans		175.63	%			126.07	%			127.28	%			131.00	%			118.89	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.07	%)			(0.02	%)			0.03	%			0.00	%			0.01	%
Non-performing loans as a percentage of total gross loans		0.66	%			0.99	%			1.00	%			0.98	%			1.08	%
Non-performing loans as a percentage of total assets		0.58	%			0.86	%			0.86	%			0.86	%			0.95	%
Total non-performing assets as a percentage of total assets		0.58	%			0.86	%			0.86	%			0.86	%			0.95	%
Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets		1.01	%			1.32	%			1.35	%			1.36	%			1.51	%
Other:
Number of offices (5)	19				20				20				20				14
Number of full-time equivalent employees (6)	231				236				227				230				179

	(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 for the three months ended June 30, 2021, and included 6 offices for the three months ended 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
		June 30,								March 31,								December 31,								September 30,								June 30,
		2021								2021								2020								2020								2020
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	325,409				23.82	%		$	317,895				25.51	%		$	319,596				27.27	%		$	320,438				28.55	%		$	317,055				29.25	%
Owner-Occupied			98,839				7.24	%			99,985				8.02	%			98,795				8.43	%			93,340				8.31	%			91,345				8.43	%
Multifamily residential			318,579				23.33	%			315,078				25.28	%			307,411				26.23	%			284,775				25.37	%			274,641				25.34	%
Nonresidential properties			211,181				15.46	%			215,340				17.28	%			218,929				18.68	%			217,771				19.40	%			209,068				19.29	%
Construction and land			125,265				9.17	%			119,339				9.57	%			105,858				9.03	%			99,721				8.88	%			96,841				8.93	%
Total mortgage loans			1,079,273				79.02	%			1,067,637				85.66	%			1,050,589				89.64	%			1,016,045				90.52	%			988,950				91.24	%
Non-mortgage loans:
Business loans (1)			253,935				18.59	%			142,135				11.40	%			94,947				8.10	%			96,700				8.61	%			93,394				8.62	%
Consumer loans (2)			32,576				2.39	%			36,706				2.94	%			26,517				2.26	%			9,806				0.87	%			1,578				0.14	%
Total non-mortgage loans			286,511				20.98	%			178,841				14.34	%			121,464				10.36	%			106,506				9.48	%			94,972				8.76	%
Total loans, gross			1,365,784				100.00	%			1,246,478				100.00	%			1,172,053				100.00	%			1,122,551				100.00	%			1,083,922				100.00	%
Net deferred loan origination costs			(6,331	)							(512	)							1,457								786								2,256
Allowance for losses on loans			(15,875	)							(15,508	)							(14,870	)							(14,381	)							(13,761	)
Loans, net		$	1,343,578							$	1,230,458							$	1,158,640							$	1,108,956							$	1,072,417

	(1)	As of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, business loans include $241.5 million, $132.5 million, $85.3 million, $86.2 million and $83.6 million, respectively, of PPP loans.
	(2)	As of June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, consumer loans include $32.0 million, $35.9 million, $25.5 million and $8.7 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain Technologies, LLC.

         

PDL Community Bancorp and Subsidiaries
Deposits

		As of
		June 30,								March 31,								December 31,								September 30,								June 30,
		2021								2021								2020								2020								2020
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Demand (1)		$	320,404				25.91	%		$	242,255				21.28	%		$	189,855				18.44	%		$	186,328				19.15	%		$	192,429				20.55	%
Interest-bearing deposits:
NOW/IOLA accounts			28,996				2.35	%			32,235				2.83	%			39,296				3.82	%			29,618				3.04	%			26,477				2.83	%
Money market accounts			172,925				13.99	%			157,271				13.81	%			136,258				13.23	%			148,877				15.30	%			125,631				13.42	%
Reciprocal deposits			151,443				12.25	%			137,402				12.07	%			131,363				12.76	%			108,367				11.13	%			96,915				10.35	%
Savings accounts			130,430				10.55	%			130,211				11.44	%			125,820				12.22	%			120,883				12.42	%			119,277				12.74	%
Total NOW, money market, reciprocal and savings accounts			483,794				39.14	%			457,119				40.15	%			432,737				42.03	%			407,745				41.89	%			368,300				39.34	%
Certificates of deposit of $250K or more			74,941				6.06	%			77,418				6.80	%			78,435				7.62	%			80,403				8.26	%			81,786				8.74	%
Brokered certificates of deposit (2)			83,506				6.76	%			86,004				7.55	%			52,678				5.12	%			55,878				5.74	%			55,878				5.97	%
Listing service deposits (2)			66,518				5.38	%			61,133				5.37	%			39,476				3.83	%			49,342				5.07	%			54,370				5.81	%
All other certificates of deposit less than $250K			206,998				16.75	%			214,617				18.85	%			236,398				22.96	%			193,548				19.89	%			183,456				19.59	%
Total certificates of deposit			431,963				34.95	%			439,172				38.57	%			406,987				39.53	%			379,171				38.96	%			375,490				40.11	%
Total interest-bearing deposits			915,757				74.09	%			896,291				78.72	%			839,724				81.56	%			786,916				80.85	%			743,790				79.45	%
Total deposits		$	1,236,161				100.00	%		$	1,138,546				100.00	%		$	1,029,579				100.00	%		$	973,244				100.00	%		$	936,219				100.00	%

	(1)	As of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, included in demand deposits are deposits related to net PPP funding.
	(2)	As of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020 there were $28.9 million, $28.8 million, $27.0 million, $26.9 million and $26.8 million in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.

PDL Community Bancorp and Subsidiaries
Nonperforming Assets

	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				2020				2020				2020
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	1,983			$	2,907			$	2,808			$	2,750			$	2,767
Owner occupied		1,593				1,585				1,053				1,075				1,327
Multifamily residential		955				946				946				210				—
Nonresidential properties		1,408				3,761				3,776				3,830				4,355
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		—				—				—				—				—
Consumer		—				—				—				—				—
Total non-accrual loans (not including non-accruing troubled debt restructured loans)	$	5,939			$	9,199			$	8,583			$	7,865			$	8,449
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned	$	242			$	246			$	249			$	267			$	272
Owner occupied		2,199				2,195				2,197				2,191				2,198
Multifamily residential		—				—				—				—				—
Nonresidential properties		659				661				654				655				656
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		—				—				—				—				—
Consumer		—				—				—				—				—
Total non-accruing troubled debt restructured loans		3,100				3,102				3,100				3,113				3,126
Total non-accrual loans	$	9,039			$	12,301			$	11,683			$	10,978			$	11,575
Total non-performing assets	$	9,039			$	12,301			$	11,683			$	10,978			$	11,575
Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned	$	3,347			$	3,362			$	3,378			$	3,396			$	3,730
Owner occupied		2,431				2,466				2,505				2,177				2,348
Multifamily residential		—				—				—				—				—
Nonresidential properties		755				750				754				759				762
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		—				—				—				—				—
Consumer		—				—				—				—				—
Total accruing troubled debt restructured loans	$	6,533			$	6,578			$	6,637			$	6,332			$	6,840
Total non-performing assets and accruing troubled debt restructured loans	$	15,572			$	18,879			$	18,320			$	17,310			$	18,415
Total non-performing loans to total gross loans		0.66	%			0.99	%			1.00	%			0.98	%			1.08	%
Total non-performing assets to total assets		0.58	%			0.86	%			0.86	%			0.86	%			0.95	%
Total non-performing assets and accruing troubled debt restructured loans to total assets		1.01	%			1.32	%			1.35	%			1.36	%			1.51	%

PDL Community Bancorp and Subsidiaries
Average Balance Sheets

	For the Three Months Ended June 30,
	2021													2020
	Average													Average
	Outstanding								Average					Outstanding								Average
	Balance				Interest				Yield/Rate (1)					Balance				Interest				Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans (2)	$	1,332,808			$	15,603			4.70		%			$	1,024,019			$	12,162			4.78		%
Securities (3)		41,218				170			1.65		%				16,750				146			3.50		%
Other (4)		60,439				71			0.47		%				68,900				85			0.50		%
Total interest-earning assets		1,434,465				15,844			4.43		%				1,109,669				12,393			4.49		%
Non-interest-earning assets		66,240													65,829
Total assets	$	1,500,705												$	1,175,498
Interest-bearing liabilities:
NOW/IOLA	$	30,370			$	32			0.42		%			$	29,692			$	38			0.51		%
Money market		300,326				311			0.42		%				196,707				458			0.94		%
Savings		131,397				38			0.12		%				117,166				37			0.13		%
Certificates of deposit		431,324				1,108			1.03		%				375,708				1,730			1.85		%
Total deposits		893,417				1,489			0.67		%				719,273				2,263			1.27		%
Advance payments by borrowers		11,086				1			0.04		%				8,947				1			0.04		%
Borrowings		119,162				622			2.09		%				120,647				608			2.03		%
Total interest-bearing liabilities		1,023,665				2,112			0.83		%				848,867				2,872			1.36		%
Non-interest-bearing liabilities:
Non-interest-bearing demand		293,626				—									165,161				—
Other non-interest-bearing liabilities		12,848				—									5,165				—
Total non-interest-bearing liabilities		306,474				—									170,326				—
Total liabilities		1,330,139				2,112									1,019,193				2,872
Total equity		170,566													156,305
Total liabilities and total equity	$	1,500,705							0.83		%			$	1,175,498							1.36		%
Net interest income					$	13,732												$	9,521
Net interest rate spread (5)									3.60		%											3.13		%
Net interest-earning assets (6)	$	410,800												$	260,802
Net interest margin (7)									3.84		%											3.45		%
Average interest-earning assets to interest-bearing liabilities									140.13		%											130.72		%

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

PDL Community Bancorp and Subsidiaries
Average Balance Sheets

	For the Six Months Ended June 30,
	2021												2020
	Average												Average
	Outstanding								Average				Outstanding								Average
	Balance				Interest				Yield/Rate(1)				Balance				Interest				Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans (2)	$	1,286,226			$	30,528				4.79	%		$	999,758			$	24,944				5.02	%
Securities (3)		31,919				346				2.19	%			17,484				229				2.63	%
Other (4)		53,548				147				0.55	%			53,560				250				0.93	%
Total interest-earning assets		1,371,693				31,021				4.56	%			1,070,802				25,423				4.77	%
Non-interest-earning assets		65,102												51,647
Total assets	$	1,436,795											$	1,122,449
Interest-bearing liabilities:
NOW/IOLA	$	31,720			$	70				0.45	%		$	29,359			$	77				0.53	%
Money market		288,779				615				0.43	%			178,589				1,075				1.21	%
Savings		129,191				77				0.12	%			115,438				72				0.13	%
Certificates of deposit		418,722				2,327				1.12	%			377,431				3,557				1.90	%
Total deposits		868,412				3,089				0.72	%			700,817				4,781				1.37	%
Advance payments by borrowers		9,999				2				0.04	%			8,464				2				0.05	%
Borrowings		124,429				1,306				2.12	%			114,643				1,195				2.10	%
Total interest-bearing liabilities		1,002,840				4,397				0.88	%			823,924				5,978				1.46	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		254,588				—								136,903				—
Other non-interest-bearing liabilities		13,297				—								4,065				—
Total non-interest-bearing liabilities		267,885				—								140,968				—
Total liabilities		1,270,725				4,397								964,892				5,978
Total equity		166,070												157,557
Total liabilities and total equity	$	1,436,795								0.88	%		$	1,122,449								1.46	%
Net interest income					$	26,624											$	19,445
Net interest rate spread (5)										3.68	%											3.31	%
Net interest-earning assets (6)	$	368,853											$	246,878
Net interest margin (7)										3.91	%											3.65	%
Average interest-earning assets to
interest-bearing liabilities										136.78	%											129.96	%

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

PDL Community Bancorp and Subsidiaries
Other Data

	As of
	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				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		1,135,086				1,444,776				1,337,059				1,346,679				1,228,737
Common shares outstanding at end of period		17,327,942				17,018,252				17,125,969				17,116,349				17,234,291
Book value per share	$	9.92			$	9.47			$	9.32			$	9.25			$	8.99
Tangible book value per share	$	9.92			$	9.47			$	9.32			$	9.25			$	8.99

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

FAQ

What were PDL Community Bancorp's earnings for Q2 2021?

PDL Community Bancorp reported a net income of $5.9 million, or $0.35 per share, for Q2 2021.

How much did net interest income increase in Q2 2021 for PDLB?

Net interest income increased by $840,000, or 6.5%, from the previous quarter and $4.2 million, or 44.2%, year-over-year.

What is the current status of PDLB's non-performing loans?

As of June 30, 2021, non-performing loans decreased to $9.0 million, or 0.66% of total loans.

What was PDLB's total asset growth for Q2 2021?

Total assets grew by 14.2% to $1.55 billion as of June 30, 2021.

How much did deposits increase for PDL Community Bancorp?

Deposits for PDL Community Bancorp increased 20.1% to $1.24 billion as of June 30, 2021.