Exhibit 99.1

PDL Community Bancorp Announces 2020 Second Quarter Results

New York (July 31, 2020): 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.  

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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

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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.

 

 

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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.

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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

 

 

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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

 

 


6


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

 

 

7


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

%