PDL Community Bancorp Announces Completion of the Acquisition of Mortgage World Bankers

Rhea-AI Summary

PDL Community Bancorp (NASDAQ: PDLB) completed its acquisition of Mortgage World Bankers, Inc. (MWB) on July 10, 2020. This strategic move enhances PDLB's access to secondary markets, expanding its community reach. Michael Lagoudis remains as President and CEO of MWB, while Carlos P. Naudon, PDLB’s CEO, joins MWB’s Board. Executive Chairman Steven A. Tsavaris emphasized improved offerings for customers. The acquisition is poised to strengthen PDLB’s market position amidst ongoing economic challenges, including the impacts of COVID-19.

Positive

• Acquisition of MWB enhances access to secondary markets.
• Expansion into new communities expected to broaden customer base.
• Experienced management team retained, ensuring operational continuity.

Negative

• None.

NEW YORK, July 14, 2020 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), announced that on July 10, 2020 it had completed the acquisition of Mortgage World Bankers, Inc. (“MWB”). MWB is a mortgage banking company headquartered in Astoria, New York. Michael Lagoudis will continue to manage MWB’s operations as its President and CEO and became a Senior Vice President of the Company. Stephanos Lagoudis will continue to assist MWB in a consulting capacity. Steven A. Tsavaris, Executive Chairman of the Company, became the Executive Chairman of MWB and Carlos P. Naudon, President and CEO of the Company became a Director of MWB.

Carlos P. Naudon, President and CEO of the Company, noted that “we are excited about our partnership with Mortgage World Bankers as this gives us an experienced and established channel to the secondary markets and expands our reach into additional communities.” Executive Chairman Steven A. Tsavaris remarked that “with the addition of MWB, our customers will benefit from enhanced offerings backed by the exceptional customer experience they expect from us.” Michael Lagoudis, President of MWB, stated that “we appreciate the Company’s faith in this combination and we look forward to serving our combined communities.”

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 cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that goodwill and 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 required by law.

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

FAQ

What is the significance of PDLB's acquisition of Mortgage World Bankers?

The acquisition enhances PDLB's access to secondary markets and expands its reach into new communities.

Who will manage Mortgage World Bankers after the acquisition?

Michael Lagoudis continues as President and CEO of MWB.

When did PDLB complete the acquisition of MWB?

PDLB completed the acquisition on July 10, 2020.

How might the acquisition impact PDLB’s customers?

Customers may benefit from enhanced offerings and improved services as a result of the acquisition.

What challenges could PDLB face following the MWB acquisition?

Potential challenges include market fluctuations and operational integration risks.