NEW YORK, Aug. 02, 2019 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $950,000, or $0.05 per basic and diluted share, for the second quarter of 2019, compared to $668,000, or $0.04 per basic and diluted share, for the prior quarter and net income of $699,000, or $0.04 per basic and diluted share, for the second quarter of 2018. For each of the six months ended June 30, 2019 and 2018, net income was $1.6 million, or $0.09 per basic and diluted share.
Carlos P. Naudon, President and CEO remarked that, “although the rise in interest rates and the growth of the construction and land portfolio has helped in maintaining the yield we receive on our earning assets, the rates we pay on interest-bearing liabilities has increased more rapidly due to increased competition for deposits in our market place combined with an increase in the costs of alternative funding sources to support our growth.” He also remarked that “in order to alleviate the use of alternative funding sources, we deployed a core deposit and customer acquisition strategic initiative at the beginning of 2019. As of the end of the quarter, we have opened 1,732 new accounts with a corresponding aggregate balance of $34.7 million in core deposits.”
Net Income
The increase in net income from the prior quarter reflects a $32,000, or 0.3%, increase in interest and dividend income, a $149,000 decrease in provision for loan losses, and a $384,000, or 4.2%, decrease in noninterest expense, offset by a $67,000, or 8.9%, decrease in noninterest income, a $150,000, or 5.1%, increase in interest expense and $66,000, or 21.5%, increase in provision for income tax.
The increase in net income from the same quarter last year reflects a $1.0 million, or 9.1%, increase in interest and dividend income, a $337,000 decrease in provision for loan losses, and a $162,000, or 30.9%, increase in noninterest income, offset by an $820,000, or 36.4%, increase in interest expense, a $252,000, or 3.0%, increase in noninterest expense and a $207,000, or 124.7%, increase in provision for income tax.
Net income for the six months ended June 30, 2019 and 2018 was $1.6 million. For the six months ended June 30, 2019, net income reflects an increase of $2.7 million, or 12.2%, in interest and dividend income, a $282,000, or 65.4%, decrease in provision for loan losses, a $30,000, or 2.1%, increase in noninterest income, offset by a $1.7 million, or 39.9%, increase in interest expense, a $1.1 million, or 6.5%, increase in noninterest expense and $246,000, or 56.7%, increase in provision for income tax.
Net Interest Margin
The net interest margin decreased by 11 basis points to 3.75% for the three months ended June 30, 2019 from 3.86% for the three months ended March 31, 2019, while the net interest rate spread decreased by 12 basis points to 3.34% from 3.46% for the same periods. Average interest-earning assets increased by $6.0 million, or 0.6%, to $999.4 million for the three months ended June 30, 2019 from $993.4 million for the three months ended March 31, 2019. The average yield on interest-earning assets decreased by 8 basis points to 4.98% from 5.06% for the same periods. Average interest-bearing liabilities increased by $8.6 million, or 1.2%, to $750.3 million for the three months ended June 30, 2019 from $741.7 million for the three months ended March 31, 2019. The average rate on interest-bearing liabilities increased by 4 basis points to 1.64% from 1.60% for the same periods.
The net interest margin decreased by 21 basis points to 3.75% for the three months ended June 30, 2019 from 3.96% for the three months ended June 30, 2018, while the net interest rate spread decreased by 30 basis points to 3.34% from 3.64% for the same periods. Average interest-earning assets increased by $74.6 million, or 8.1%, to $999.4 million for the three months ended June 30, 2019 from $924.9 million for the three months ended June 30, 2018. The average yield on interest-earning assets increased by 4 basis points to 4.98% from 4.94% for the same periods. Average interest-bearing liabilities increased by $54.3 million, or 7.8%, to $750.3 million for the three months ended June 30, 2019 from $696.0 million for the three months ended June 30, 2018. The average rate on interest-bearing liabilities increased by 34 basis points to 1.64% from 1.30% for the same periods.
Noninterest Income
Noninterest income decreased to $686,000 for the three months ended June 30, 2019, down $67,000, or 8.9%, from $753,000 for the three months ended March 31, 2019. The decreased was attributable to decreases of $85,000, or 78.0%, in brokerage commissions and $103,000, or 37.5%, in other noninterest income, offset by an increase of $123,000, or 88.5%, in late fees and prepayment charges related to mortgage loans.
Noninterest income increased to $686,000 for the three months ended June 30, 2019, up $162,000, or 30.9%, from $524,000 for the three months ended June 30, 2018. The increase was mainly attributable to an increase of $210,000, or 403.9%, in late fees and prepayment charges related to mortgage loans.
Noninterest Expense
Noninterest expense was $8.7 million for the quarter ended June 30, 2019, down $384,000, or 4.2%, from $9.1 million for the quarter ended March 31, 2019. The decrease was mainly attributable to a decrease in compensation and benefits expense of $538,000 as a result of lower group life and health insurance expense related to claims, nonrecurring first quarter 2019 bonus payments resulting in lower payroll tax expense in the second quarter, lower brokerage commissions and a net decrease of compensation associated with organizational changes relating to branch and back office personnel; occupancy expense of $179,000 as a result of seasonal trends and prior quarter project completion expenses; and office supplies, telephone and postage expenses of $46,000. The decrease in noninterest expense was partially offset by increases in data processing expenses of $78,000; professional fees of $223,000; marketing and promotional expenses of $21,000 and other operating expenses of $52,000.
Noninterest expense increased $252,000, or 3.0%, to $8.7 million for the quarter ended June 30, 2019 from $8.5 million for the quarter ended June 30, 2018. The increase was largely due to increases in professional fees of $204,000 as a result of increased expenses associated with business and media development combined with increased expenses associated with the annual stockholders meeting and public reporting; data processing expenses of $131,000 as a result of system enhancements and implementation charges related to software upgrades and additional products being used; other operating expenses of $72,000 as a result of loss on loans sold; and direct loan expenses of $30,000. The increase in noninterest expense was partially offset by decreases in compensation and benefits expense of $87,000 and office supplies, telephone and postage expenses of $81,000.
Asset Quality
Nonperforming assets increased to $10.1 million, or 0.96% of total assets, at June 30, 2019, from $8.0 million, or 0.77% of total assets, at March 31, 2019 and $6.7 million, or 0.69% of total assets, at June 30, 2018. The increase from March 31, 2019 is mainly attributable to an increase in nonaccrual, nonresidential loans of $2.8 million.
There was no provision for loan losses for the quarter ended June 30, 2019, compared to $149,000 for the quarter ended March 31, 2019 and $337,000 for the quarter ended June 30, 2018. The allowance for loan losses was $12.5 million, or 1.32% of total loans, at June 30, 2019, compared to $12.4 million, or 1.33% of total loans, at March 31, 2019 and $11.8 million, or 1.36% of total loans, at June 30, 2018. Net recoveries totaled $11,000 for the quarter ended June 30, 2019, compared to net charge-offs totaling $359,000 for the quarter ended March 31, 2019 and net recoveries totaling $5,000 for the quarter ended June 30, 2018.
Balance Sheet
Total assets decreased $3.8 million, or 0.4%, to $1,056.1 million at June 30, 2019 from $1,059.9 million at December 31, 2018. Net loans increased $15.7 million, or 1.7%, to $934.2 million at June 30, 2019 from $918.5 million at December 31, 2018. The increase in net loans was primarily due to increases of $13.4 million, or 15.3%, in construction and land loans and $6.5 million, or 2.8%, in multifamily residential loans, offset by a decrease of $4.3 million, or 27.6%, in business loans.
Steven A. Tsavaris, Executive Chairman remarked that, “while we remain optimistic about our loan production for the second half of 2019, we are experiencing tough competition for nonresidential property loans from both small and large banks, as well as from nonbank lenders." He also remarked that "we are willing to walk away from competing for certain loans as a result of what other lenders are willing to offer on rate and terms, including duration."
Total deposits decreased $7.4 million, or 0.9%, to $802.4 million at June 30, 2019 from $809.8 million at December 31, 2018. The decrease in deposits was mainly attributable to a decrease of $45.0 million, or 10.6 %, in certificates of deposit offset by an increase of $42.1 million, or 36.3%, in money market accounts.
Total stockholders’ equity was $165.2 million at June 30, 2019, compared to $169.2 million at December 31, 2018. The Company and the Bank exceeded all regulatory capital requirements to be deemed well-capitalized at June 30, 2019. The Bank’s total capital to risk-weighted assets ratio was 19.54%, the tier 1 capital to risk-weighted assets ratio and the common equity tier 1 capital ratio were both 18.29%, and the tier 1 capital to total assets ratio was 13.64% at June 30, 2019, compared to 19.39%, 18.14%, and 13.66%, respectively at December 31, 2018.
On March 22, 2019, the Board of Directors adopted a share repurchase program effective March 25, 2019. Under the repurchase program, the Company may repurchase up to 923,151 shares of its common stock, or approximately 5% of the outstanding shares, which will be used to fund the grants of restricted stock units and stock options made under the Company’s 2018 Long-Term Incentive Plan. Repurchased shares will be held by the Company as Treasury shares until used to fund the restricted stock units and option grants. The repurchase program may be suspended or terminated at any time without prior notice, and it will expire on September 24, 2019. During the quarter ended June 30, 2019, the Company repurchased 463,112 shares of the Company’s common stock. As of June 30, 2019, 446,173 shares could still be repurchased under the repurchase program.
About PDL Community Bancorp
PDL Community Bancorp is the holding company for Ponce Bank. The Bank’s business primarily consists of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of one-to-four 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 have historically consisted of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities and Federal Home Loan Bank stock. The Bank offers a variety of deposit accounts, including demand, savings, money market and certificates of deposit.
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; 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.
PDL Community Bancorp and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except for share data)
| As of | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks: | ||||||||||||||||||||
| Cash | $ | 6,003 | $ | 5,690 | $ | 45,225 | $ | 5,494 | $ | 7,088 | ||||||||||
| Interest-bearing deposits in banks | 47,007 | 35,877 | 24,553 | 16,895 | 42,094 | |||||||||||||||
| Total cash and cash equivalents | 53,010 | 41,567 | 69,778 | 22,389 | 49,182 | |||||||||||||||
| Available-for-sale securities, at fair value | 22,154 | 22,166 | 27,144 | 24,177 | 28,144 | |||||||||||||||
| Loans receivable, net | 934,236 | 925,099 | 918,509 | 893,884 | 850,426 | |||||||||||||||
| Accrued interest receivable | 3,773 | 3,735 | 3,795 | 3,609 | 3,350 | |||||||||||||||
| Premises and equipment, net | 32,205 | 31,777 | 31,135 | 29,293 | 28,366 | |||||||||||||||
| Other real estate owned | 58 | — | — | — | — | |||||||||||||||
| Federal Home Loan Bank of New York stock (FHLBNY), at cost | 4,609 | 2,915 | 2,915 | 2,621 | 2,617 | |||||||||||||||
| Deferred tax assets | 3,913 | 3,852 | 3,811 | 4,118 | 3,805 | |||||||||||||||
| Other assets | 2,158 | 2,485 | 2,814 | 2,620 | 2,923 | |||||||||||||||
| Total assets | $ | 1,056,116 | $ | 1,033,596 | $ | 1,059,901 | $ | 982,711 | $ | 968,813 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Deposits | $ | 802,408 | $ | 806,781 | $ | 809,758 | $ | 764,792 | $ | 753,255 | ||||||||||
| Accrued interest payable | 88 | 75 | 63 | 75 | 141 | |||||||||||||||
| Advance payments by borrowers for taxes and insurance | 6,059 | 8,099 | 6,037 | 7,219 | 5,491 | |||||||||||||||
| Advances from the Federal Home Loan Bank of New York and others | 79,404 | 44,404 | 69,404 | 37,775 | 37,775 | |||||||||||||||
| Other liabilities | 2,954 | 3,975 | 5,467 | 5,706 | 5,573 | |||||||||||||||
| Total liabilities | 890,913 | 863,334 | 890,729 | 815,567 | 802,235 | |||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| Stockholders' Equity: | ||||||||||||||||||||
| Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued | — | — | — | — | — | |||||||||||||||
| Common stock, $0.01 par value; 50,000,000 shares authorized; 18,463,028 shares issued and 17,986,050 shares outstanding as of June 30, 2019 and 18,463,028 shares issued and outstanding as of December 31,2018 | 185 | 185 | 185 | 185 | 185 | |||||||||||||||
| Treasury stock, at cost; 476,978 shares at June 30, 2019 and no shares as of December 31, 2018 | (6,798 | ) | (193 | ) | — | — | — | |||||||||||||
| Additional paid-in-capital | 85,357 | 84,976 | 84,581 | 84,557 | 84,488 | |||||||||||||||
| Retained earnings | 100,431 | 99,481 | 98,813 | 96,896 | 96,495 | |||||||||||||||
| Accumulated other comprehensive loss | (7,941 | ) | (8,035 | ) | (8,135 | ) | (8,101 | ) | (8,076 | ) | ||||||||||
| Unearned compensation - ESOP; 603,125 shares as of June 30, 2019 and 627,251 shares as of December 31, 2018 | (6,031 | ) | (6,152 | ) | (6,272 | ) | (6,393 | ) | (6,514 | ) | ||||||||||
| Total stockholders' equity | 165,203 | 170,262 | 169,172 | 167,144 | 166,578 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,056,116 | $ | 1,033,596 | $ | 1,059,901 | $ | 982,711 | $ | 968,813 | ||||||||||
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, | ||||||||||||||||
| 2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Interest on loans receivable | $ | 12,060 | $ | 12,095 | $ | 12,026 | $ | 11,483 | $ | 11,053 | ||||||||||
| Interest and dividend on available-for-sale securities and FHLBNY stock | 354 | 287 | 300 | 254 | 330 | |||||||||||||||
| Total interest and dividend income | 12,414 | 12,382 | 12,326 | 11,737 | 11,383 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Interest on certificates of deposit | 1,904 | 1,956 | 2,078 | 1,942 | 1,847 | |||||||||||||||
| Interest on other deposits | 821 | 631 | 320 | 272 | 199 | |||||||||||||||
| Interest on borrowings | 345 | 333 | 321 | 276 | 204 | |||||||||||||||
| Total interest expense | 3,070 | 2,920 | 2,719 | 2,490 | 2,250 | |||||||||||||||
| Net interest income | 9,344 | 9,462 | 9,607 | 9,247 | 9,133 | |||||||||||||||
| Provision for loan losses | — | 149 | 215 | 602 | 337 | |||||||||||||||
| Net interest income after provision for loan losses | 9,344 | 9,313 | 9,392 | 8,645 | 8,796 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Service charges and fees | 228 | 230 | 217 | 191 | 214 | |||||||||||||||
| Brokerage commissions | 24 | 109 | 108 | 286 | 42 | |||||||||||||||
| Late and prepayment charges | 262 | 139 | 278 | 65 | 52 | |||||||||||||||
| Other | 172 | 275 | 212 | 172 | 216 | |||||||||||||||
| Total noninterest income | 686 | 753 | 815 | 714 | 524 | |||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Compensation and benefits | 4,476 | 5,014 | 4,371 | 4,547 | 4,563 | |||||||||||||||
| Occupancy and equipment | 1,732 | 1,911 | 1,879 | 1,585 | 1,717 | |||||||||||||||
| Data processing expenses | 431 | 353 | 357 | 342 | 300 | |||||||||||||||
| Direct loan expenses | 182 | 156 | 217 | 265 | 152 | |||||||||||||||
| Insurance and surety bond premiums | 83 | 83 | 94 | 87 | 99 | |||||||||||||||
| Office supplies, telephone and postage | 271 | 317 | 349 | 308 | 352 | |||||||||||||||
| FDIC deposit insurance assessment | 66 | 68 | 70 | 68 | 66 | |||||||||||||||
| Professional fees | 733 | 510 | 1,025 | 978 | 529 | |||||||||||||||
| Marketing and promotional expenses | 47 | 26 | 68 | 40 | 55 | |||||||||||||||
| Directors fees | 73 | 83 | 69 | 69 | 70 | |||||||||||||||
| Regulatory dues | 47 | 56 | 60 | 63 | 58 | |||||||||||||||
| Other operating expenses | 566 | 514 | 515 | 417 | 494 | |||||||||||||||
| Total noninterest expense | 8,707 | 9,091 | 9,074 | 8,769 | 8,455 | |||||||||||||||
| Income before income taxes | 1,323 | 975 | 1,133 | 590 | 865 | |||||||||||||||
| Provision for income taxes | 373 | 307 | 498 | 188 | 166 | |||||||||||||||
| Net income | $ | 950 | $ | 668 | $ | 635 | $ | 402 | $ | 699 | ||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 0.05 | $ | 0.04 | $ | 0.04 | $ | 0.02 | $ | 0.04 | ||||||||||
| Diluted | $ | 0.05 | $ | 0.04 | $ | 0.04 | $ | 0.02 | $ | 0.04 | ||||||||||
PDL Community Bancorp and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share data)
| For the Six Months Ended June 30, | ||||||||||||||||
| 2019 | 2018 | Variance $ | Variance % | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Interest on loans receivable | $ | 24,155 | $ | 21,439 | $ | 2,716 | 12.67 | % | ||||||||
| Interest and dividend on available-for-sale securities and FHLBNY stock | 641 | 654 | (13 | ) | (1.99 | %) | ||||||||||
| Total interest and dividend income | 24,796 | 22,093 | 2,703 | 12.23 | % | |||||||||||
| Interest expense: | ||||||||||||||||
| Interest on certificates of deposit | 3,860 | 3,597 | 263 | 7.31 | % | |||||||||||
| Interest on other deposits | 1,452 | 383 | 1,069 | 279.11 | % | |||||||||||
| Interest on borrowings | 678 | 303 | 375 | 123.76 | % | |||||||||||
| Total interest expense | 5,990 | 4,283 | 1,707 | 39.86 | % | |||||||||||
| Net interest income | 18,806 | 17,810 | 996 | 5.59 | % | |||||||||||
| Provision for loan losses | 149 | 431 | (282 | ) | (65.43 | %) | ||||||||||
| Net interest income after provision for loan losses | 18,657 | 17,379 | 1,278 | 7.35 | % | |||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges and fees | 458 | 437 | 21 | 4.81 | % | |||||||||||
| Brokerage commissions | 133 | 138 | (5 | ) | (3.62 | %) | ||||||||||
| Late and prepayment charges | 401 | 263 | 138 | 52.47 | % | |||||||||||
| Other | 447 | 571 | (124 | ) | (21.72 | %) | ||||||||||
| Total noninterest income | 1,439 | 1,409 | 30 | 2.13 | % | |||||||||||
| Noninterest expense: | ||||||||||||||||
| Compensation and benefits | 9,490 | 8,918 | 572 | 6.41 | % | |||||||||||
| Occupancy and equipment | 3,643 | 3,208 | 435 | 13.56 | % | |||||||||||
| Data processing expenses | 784 | 708 | 76 | 10.73 | % | |||||||||||
| Direct loan expenses | 338 | 307 | 31 | 10.10 | % | |||||||||||
| Insurance and surety bond premiums | 166 | 188 | (22 | ) | (11.70 | %) | ||||||||||
| Office supplies, telephone and postage | 588 | 652 | (64 | ) | (9.82 | %) | ||||||||||
| FDIC deposit insurance assessment | 134 | 134 | — | 0.00 | % | |||||||||||
| Professional fees | 1,243 | 1,151 | 92 | 7.99 | % | |||||||||||
| Marketing and promotional expenses | 73 | 107 | (34 | ) | (31.78 | %) | ||||||||||
| Directors fees | 156 | 139 | 17 | 12.23 | % | |||||||||||
| Regulatory dues | 103 | 115 | (12 | ) | (10.43 | %) | ||||||||||
| Other operating expenses | 1,080 | 1,087 | (7 | ) | (0.64 | %) | ||||||||||
| Total noninterest expense | 17,798 | 16,714 | 1,084 | 6.49 | % | |||||||||||
| Income before income taxes | 2,298 | 2,074 | 224 | 10.80 | % | |||||||||||
| Provision for income taxes | 680 | 434 | 246 | 56.68 | % | |||||||||||
| Net income | $ | 1,618 | $ | 1,640 | $ | (22 | ) | (1.34 | %) | |||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.09 | $ | 0.09 | N/A | N/A | ||||||||||
| Diluted | $ | 0.09 | $ | 0.09 | N/A | N/A | ||||||||||
PDL Community Bancorp and Subsidiaries
Key Metrics
| At or for the Quarters Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||||||||
| Performance Ratios: | ||||||||||||||||||||
| Return on average assets | 0.37 | % | 0.26 | % | 0.25 | % | 0.16 | % | 0.29 | % | ||||||||||
| Return on average equity | 2.26 | % | 1.59 | % | 1.49 | % | 0.95 | % | 1.68 | % | ||||||||||
| Net interest rate spread (1) | 3.34 | % | 3.46 | % | 3.52 | % | 3.49 | % | 3.64 | % | ||||||||||
| Net interest margin (2) | 3.75 | % | 3.86 | % | 3.90 | % | 3.86 | % | 3.96 | % | ||||||||||
| Noninterest expense to average assets | 3.38 | % | 3.59 | % | 3.57 | % | 3.54 | % | 3.54 | % | ||||||||||
| Efficiency ratio (3) | 86.81 | % | 89.00 | % | 87.07 | % | 88.03 | % | 87.55 | % | ||||||||||
| Average interest-earning assets to average interest- bearing liabilities | 133.20 | % | 133.93 | % | 134.30 | % | 135.09 | % | 132.89 | % | ||||||||||
| Average equity to average assets | 16.27 | % | 16.58 | % | 16.69 | % | 17.06 | % | 17.45 | % | ||||||||||
| Capital Ratios: | ||||||||||||||||||||
| Total capital to risk weighted assets (bank only) | 19.54 | % | 19.32 | % | 19.39 | % | 19.60 | % | 20.07 | % | ||||||||||
| Tier 1 capital to risk weighted assets (bank only) | 18.29 | % | 18.06 | % | 18.14 | % | 18.35 | % | 18.81 | % | ||||||||||
| Common equity Tier 1 capital to risk-weighted assets (bank only) | 18.29 | % | 18.06 | % | 18.14 | % | 18.35 | % | 18.81 | % | ||||||||||
| Tier 1 capital to average assets (bank only) | 13.64 | % | 13.56 | % | 13.66 | % | 13.78 | % | 14.03 | % | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Allowance for loan losses as a percentage of total loans | 1.32 | % | 1.33 | % | 1.36 | % | 1.37 | % | 1.36 | % | ||||||||||
| Allowance for loan losses as a percentage of nonperforming loans | 123.50 | % | 155.87 | % | 186.77 | % | (186.74 | %) | 176.63 | % | ||||||||||
| Net (charge-offs) recoveries to average outstanding loans during the year | 0.00 | % | (0.16 | %) | 0.03 | % | 0.00 | % | 0.00 | % | ||||||||||
| Non-performing loans as a percentage of total loans | 1.08 | % | 0.86 | % | 0.73 | % | 0.73 | % | 0.77 | % | ||||||||||
| Non-performing loans as a percentage of total assets | 0.96 | % | 0.77 | % | 0.64 | % | 0.67 | % | 0.69 | % | ||||||||||
| Total non-performing assets as a percentage of total assets | 0.96 | % | 0.77 | % | 0.64 | % | 0.67 | % | 0.69 | % | ||||||||||
| Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets | 1.82 | % | 1.74 | % | 1.63 | % | 1.79 | % | 1.87 | % | ||||||||||
| Other: | ||||||||||||||||||||
| Number of offices | 14 | 14 | 14 | 14 | 14 | |||||||||||||||
| Number of full-time equivalent employees | 183 | 185 | 181 | 175 | 194 | |||||||||||||||
(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
Key metrics calculated on income statement items were annualized where appropriate.
PDL Community Bancorp and Subsidiaries
Loan Portfolio
| For the Quarters Ended | ||||||||||||||||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||||||||||||||||
| 2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
| 1-4 family residential | ||||||||||||||||||||||||||||||||||||||||
| Investor Owned | $ | 302,428 | 32.00 | % | $ | 304,650 | 32.55 | % | $ | 303,197 | 32.61 | % | $ | 295,792 | 32.69 | % | $ | 296,490 | 34.44 | % | ||||||||||||||||||||
| Owner-Occupied | 92,904 | 9.83 | % | 95,449 | 10.20 | % | 92,788 | 9.98 | % | 95,464 | 10.55 | % | 92,208 | 10.71 | % | |||||||||||||||||||||||||
| Multifamily residential | 238,974 | 25.28 | % | 234,749 | 25.09 | % | 232,509 | 25.01 | % | 219,958 | 24.31 | % | 218,210 | 25.34 | % | |||||||||||||||||||||||||
| Nonresidential properties | 197,367 | 20.88 | % | 199,903 | 21.36 | % | 196,917 | 21.18 | % | 191,603 | 21.17 | % | 168,788 | 19.60 | % | |||||||||||||||||||||||||
| Construction and land | 100,995 | 10.69 | % | 84,844 | 9.07 | % | 87,572 | 9.42 | % | 85,293 | 9.42 | % | 72,574 | 8.43 | % | |||||||||||||||||||||||||
| Total mortgage loans | 932,668 | 98.68 | % | 919,595 | 98.27 | % | 912,983 | 98.20 | % | 888,110 | 98.14 | % | 848,270 | 98.52 | % | |||||||||||||||||||||||||
| Nonmortgage loans: | ||||||||||||||||||||||||||||||||||||||||
| Business loans | 11,373 | 1.20 | % | 15,101 | 1.61 | % | 15,710 | 1.69 | % | 15,832 | 1.75 | % | 11,698 | 1.36 | % | |||||||||||||||||||||||||
| Consumer loans | 1,151 | 0.12 | % | 1,125 | 0.12 | % | 1,068 | 0.11 | % | 992 | 0.11 | % | 1,027 | 0.12 | % | |||||||||||||||||||||||||
| Total nonmortgage loans | 12,524 | 1.32 | % | 16,226 | 1.73 | % | 16,778 | 1.80 | % | 16,824 | 1.86 | % | 12,725 | 1.48 | % | |||||||||||||||||||||||||
| Total loans | 945,192 | 100.00 | % | 935,821 | 100.00 | % | 929,761 | 100.00 | % | 904,934 | 100.00 | % | 860,995 | 100.00 | % | |||||||||||||||||||||||||
| Net deferred loan origination costs | 1,562 | 1,727 | 1,407 | 1,316 | 1,182 | |||||||||||||||||||||||||||||||||||
| Allowance for losses on loans | (12,518 | ) | (12,449 | ) | (12,659 | ) | (12,366 | ) | (11,751 | ) | ||||||||||||||||||||||||||||||
| Loans, net | $ | 934,236 | $ | 925,099 | $ | 918,509 | $ | 893,884 | $ | 850,426 | ||||||||||||||||||||||||||||||
PDL Community Bancorp and Subsidiaries
Nonperforming Assets
| For the Quarters Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Nonaccrual loans: | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| 1-4 family residential | ||||||||||||||||||||
| Investor owned | $ | 1,299 | $ | 1,284 | $ | 205 | $ | 206 | $ | 208 | ||||||||||
| Owner occupied | 479 | 933 | 1,092 | 1,098 | 1,481 | |||||||||||||||
| Multifamily residential | 7 | 13 | 16 | — | — | |||||||||||||||
| Nonresidential properties | 3,288 | 531 | 706 | 544 | 142 | |||||||||||||||
| Construction and land | 1,327 | 1,341 | 1,115 | 1,103 | 1,111 | |||||||||||||||
| Nonmortgage loans: | ||||||||||||||||||||
| Business | — | 275 | — | — | — | |||||||||||||||
| Consumer | 2 | 4 | — | — | — | |||||||||||||||
| Total nonaccrual loans (not including non-accruing troubled debt restructured loans) | $ | 6,402 | $ | 4,381 | $ | 3,134 | $ | 2,951 | $ | 2,942 | ||||||||||
| Non-accruing troubled debt restructured loans: | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| 1-4 family residential | ||||||||||||||||||||
| Investor owned | $ | 493 | $ | 1,023 | $ | 1,053 | $ | 1,076 | $ | 1,099 | ||||||||||
| Owner occupied | 2,499 | 1,972 | 1,987 | 1,990 | 2,007 | |||||||||||||||
| Multifamily residential | — | — | — | — | ||||||||||||||||
| Nonresidential properties | 742 | 611 | 604 | 605 | 606 | |||||||||||||||
| Construction and land | — | — | — | — | ||||||||||||||||
| Nonmortgage loans: | ||||||||||||||||||||
| Business | — | — | — | — | ||||||||||||||||
| Consumer | — | — | — | — | ||||||||||||||||
| Total non-accruing troubled debt restructured loans | 3,734 | 3,606 | 3,644 | 3,671 | 3,712 | |||||||||||||||
| Total nonaccrual loans | $ | 10,136 | $ | 7,987 | $ | 6,778 | $ | 6,622 | $ | 6,654 | ||||||||||
| Real estate owned: | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| 1-4 family residential | ||||||||||||||||||||
| Investor owned | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Owner occupied | ||||||||||||||||||||
| Multifamily residential | — | — | — | — | — | |||||||||||||||
| Nonresidential properties | — | — | — | — | — | |||||||||||||||
| Construction and land | — | — | — | — | — | |||||||||||||||
| Nonmortgage loans: | ||||||||||||||||||||
| Business | — | — | — | — | — | |||||||||||||||
| Consumer | — | — | — | — | — | |||||||||||||||
| Total real estate owned | — | — | — | — | — | |||||||||||||||
| Total nonperforming assets | $ | 10,136 | $ | 7,987 | $ | 6,778 | $ | 6,622 | $ | 6,654 | ||||||||||
| Accruing loans past due 90 days or more: | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| 1-4 family residential | ||||||||||||||||||||
| Investor owned | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Owner occupied | — | — | — | — | — | |||||||||||||||
| Multifamily residential | — | — | — | — | — | |||||||||||||||
| Nonresidential properties | — | — | — | — | — | |||||||||||||||
| Construction and land | — | — | — | — | — | |||||||||||||||
| Nonmortgage loans: | ||||||||||||||||||||
| Business | — | — | — | — | — | |||||||||||||||
| Consumer | — | — | — | — | — | |||||||||||||||
| Total accruing loans past due 90 days or more | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Accruing troubled debt restructured loans: | ||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||
| 1-4 family residential | ||||||||||||||||||||
| Investor owned | $ | 5,267 | $ | 5,157 | $ | 5,192 | $ | 5,224 | $ | 5,707 | ||||||||||
| Owner occupied | 2,493 | 3,415 | 3,456 | 3,882 | 3,911 | |||||||||||||||
| Multifamily residential | — | — | — | — | — | |||||||||||||||
| Nonresidential properties | 1,330 | 1,428 | 1,438 | 1,449 | 1,458 | |||||||||||||||
| Construction and land | — | — | — | — | — | |||||||||||||||
| Nonmortgage loans: | ||||||||||||||||||||
| Business | 37 | 40 | 374 | 398 | 421 | |||||||||||||||
| Consumer | — | — | — | — | — | |||||||||||||||
| Total accruing troubled debt restructured loans | $ | 9,127 | $ | 10,040 | $ | 10,460 | $ | 10,953 | $ | 11,497 | ||||||||||
| Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans | $ | 19,263 | $ | 18,027 | $ | 17,238 | $ | 17,575 | $ | 18,151 | ||||||||||
| Total nonperforming loans to total loans | 1.08 | % | 0.86 | % | 0.73 | % | 0.73 | % | 0.77 | % | ||||||||||
| Total nonperforming assets to total assets | 0.96 | % | 0.77 | % | 0.64 | % | 0.67 | % | 0.69 | % | ||||||||||
| Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets | 1.82 | % | 1.74 | % | 1.63 | % | 1.79 | % | 1.87 | % | ||||||||||
PDL Community Bancorp and Subsidiaries
Average Balance Sheets
| For the Three Months Ended June 30, | ||||||||||||||||||
| 2019 | 2018 | |||||||||||||||||
| Average Outstanding Balance | Interest | Average Yield/Rate(1) | Average Outstanding Balance | Interest | Average Yield/Rate(1) | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans | $ | 928,806 | $ | 12,060 | 5.21 | % | $ | 843,641 | $ | 11,053 | 5.26 | % | ||||||
| Available-for-sale securities | 22,127 | 76 | 1.38 | % | 28,267 | 104 | 1.48 | % | ||||||||||
| Other (2) | 48,512 | 278 | 2.30 | % | 52,967 | 226 | 1.71 | % | ||||||||||
| Total interest-earning assets | 999,445 | 12,414 | 4.98 | % | 924,875 | 11,383 | 4.94 | % | ||||||||||
| Non-interest-earning assets | 35,130 | 33,424 | ||||||||||||||||
| Total assets | $ | 1,034,575 | $ | 958,299 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| NOW/IOLA | $ | 25,306 | $ | 26 | 0.41 | % | $ | 28,698 | $ | 28 | 0.39 | % | ||||||
| Money market | 140,239 | 755 | 2.16 | % | 55,641 | 129 | 0.93 | % | ||||||||||
| Savings | 121,423 | 39 | 0.13 | % | 126,133 | 41 | 0.13 | % | ||||||||||
| Certificates of deposit | 400,317 | 1,904 | 1.91 | % | 448,883 | 1,847 | 1.65 | % | ||||||||||
| Total deposits | 687,285 | 2,724 | 1.59 | % | 659,355 | 2,045 | 1.24 | % | ||||||||||
| Advance payments by borrowers | 9,566 | 1 | 0.04 | % | 8,045 | 1 | 0.05 | % | ||||||||||
| Borrowings | 53,474 | 345 | 2.59 | % | 28,595 | 204 | 2.86 | % | ||||||||||
| Total interest-bearing liabilities | 750,325 | 3,070 | 1.64 | % | 695,995 | 2,250 | 1.30 | % | ||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||
| Non-interest-bearing demand | 112,069 | — | 89,935 | — | ||||||||||||||
| Other non-interest-bearing liabilities | 3,819 | — | 5,104 | — | ||||||||||||||
| Total non-interest-bearing liabilities | 115,888 | — | 95,039 | — | ||||||||||||||
| Total liabilities | 866,213 | 3,070 | 791,034 | 2,250 | ||||||||||||||
| Total equity | 168,362 | 167,265 | ||||||||||||||||
| Total liabilities and total equity | $ | 1,034,575 | 1.64 | % | $ | 958,299 | 1.30 | % | ||||||||||
| Net interest income | $ | 9,344 | $ | 9,133 | ||||||||||||||
| Net interest rate spread (3) | 3.34 | % | 3.64 | % | ||||||||||||||
| Net interest-earning assets (4) | $ | 249,120 | $ | 228,880 | ||||||||||||||
| Net interest margin (5) | 3.75 | % | 3.96 | % | ||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 133.20 | % | 132.89 | % | ||||||||||||||
(1) Annualized where appropriate.
(2) Includes FHLBNY demand account and FHLBNY stock dividends.
(3) 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.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5) 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, | ||||||||||||||||||
| 2019 | 2018 | |||||||||||||||||
| Average Outstanding Balance | Interest | Average Yield/Rate(1) | Average Outstanding Balance | Interest | Average Yield/Rate(1) | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans | $ | 932,323 | $ | 24,155 | 5.22 | % | $ | 830,114 | $ | 21,439 | 5.21 | % | ||||||
| Available-for-sale securities | 22,954 | 163 | 1.43 | % | 28,478 | 209 | 1.48 | % | ||||||||||
| Other (2) | 41,155 | 478 | 2.34 | % | 49,852 | 445 | 1.80 | % | ||||||||||
| Total interest-earning assets | 996,432 | 24,796 | 5.02 | % | 908,444 | 22,093 | 4.90 | % | ||||||||||
| Non-interest-earning assets | 34,785 | 34,414 | ||||||||||||||||
| Total assets | $ | 1,031,217 | $ | 942,858 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| NOW/IOLA | $ | 26,848 | $ | 53 | 0.40 | % | $ | 28,174 | $ | 53 | 0.38 | % | ||||||
| Money market | 113,893 | 1,318 | 2.33 | % | 52,663 | 248 | 0.95 | % | ||||||||||
| Savings | 121,988 | 79 | 0.13 | % | 125,308 | 80 | 0.13 | % | ||||||||||
| Certificates of deposit | 422,638 | 3,860 | 1.84 | % | 439,614 | 3,597 | 1.65 | % | ||||||||||
| Total deposits | 685,367 | 5,310 | 1.56 | % | 645,759 | 3,978 | 1.24 | % | ||||||||||
| Advance payments by borrowers | 8,643 | 2 | 0.05 | % | 7,313 | 2 | 0.06 | % | ||||||||||
| Borrowings | 52,030 | 678 | 2.63 | % | 23,409 | 303 | 2.61 | % | ||||||||||
| Total interest-bearing liabilities | 746,040 | 5,990 | 1.62 | % | 676,481 | 4,283 | 1.28 | % | ||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||
| Non-interest-bearing demand | 111,360 | — | 94,625 | — | ||||||||||||||
| Other non-interest-bearing liabilities | 4,434 | — | 5,096 | — | ||||||||||||||
| Total non-interest-bearing liabilities | 115,794 | — | 99,721 | — | ||||||||||||||
| Total liabilities | 861,834 | 5,990 | 776,202 | 4,283 | ||||||||||||||
| Total equity | 169,383 | 166,656 | ||||||||||||||||
| Total liabilities and total equity | $ | 1,031,217 | 1.62 | % | $ | 942,858 | 1.28 | % | ||||||||||
| Net interest income | $ | 18,806 | $ | 17,810 | ||||||||||||||
| Net interest rate spread (3) | 3.40 | % | 3.62 | % | ||||||||||||||
| Net interest-earning assets (4) | $ | 250,392 | $ | 231,963 | ||||||||||||||
| Net interest margin (5) | 3.81 | % | 3.95 | % | ||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 133.56 | % | 134.29 | % | ||||||||||||||
(1) Annualized where appropriate.
(2) Includes FHLBNY demand account and FHLBNY stock dividends.
(3) 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.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5) Net interest margin represents net interest income divided by average total interest-earning assets.
Contact:
Frank Perez
frank.perez@poncebank.net
718-931-9000