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PDL Community Bancorp Announces 2018 Second Quarter Results

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NEW YORK, Aug. 08, 2018 (GLOBE NEWSWIRE) -- PDL Community Bancorp, (the "Company") (NASDAQ:PDLB), the holding company for Ponce Bank (the "Bank"), reported net income of $699,000, or $0.04 per basic and diluted share for the quarter ended June 30, 2018 compared to net income of $1.1 million for the same period in 2017. For the six months ended June 30, 2018 net income was $1.6 million or $0.09 per basic and diluted share as compared to $1.7 million for the same period last year. The Company was formed on September 29, 2017 in conjunction with the reorganization of Ponce De Leon Federal Bank, Ponce Bank's predecessor, into Ponce Bank Mutual Holding Company, a mutual holding company. Accordingly, the Company's financial results of prior periods are solely those of Ponce Bank.

"We are focused on adding value to our stakeholders and are pleased with our progress" said Steven A. Tsavaris, Executive Chairman. Carlos P. Naudon, President and CEO, noted that "we continue our healthy organic loan growth while at the same time improving asset quality."  

Net Interest Income

Net interest income was $9.1 million for the quarter ended June 30, 2018, up $1.0 million, or 12.3%, from $8.1 million for the quarter ended June 30, 2017. The increase in net interest income for the quarter ended June 30, 2018 compared to the same period in 2017 reflects a $1.7 million, or 17.5%, increase in total interest and dividend income offset by an increase of $629,000, or 38.8%, in total interest expense. The net interest rate spread and net interest margin were 3.64% and 3.96%, respectively, for the quarter ended June 30, 2018 compared to 4.07% and 4.29%, respectively, for the same period in 2017. The increase in interest and dividend income is primarily due to growth in the investor-owned one-to-four family, multifamily, nonresidential, and construction and land loans, that provided an increase in average outstanding loans of $134.3 million or 18.9%, for the quarter ended June 30, 2018 compared to the same period in 2017. The average yield on loans decreased to 5.26% for the quarter ended June 30, 2018 from 5.42% for the same period in 2017. The increase in interest expense is primarily due to an increase in average certificates of deposits of $68.2 million or 17.9% for the quarter ended June 30, 2018 compared to the same period in 2017. The average cost on certificates of deposits increased to 1.65% for the quarter ended June 30, 2018 from 1.50% for the same period in 2017. The average cost of all interest-bearing liabilities increased to 1.30% for the quarter ended June 30, 2018 from 1.08% for the same period in 2017.

Noninterest Income

Noninterest income was $524,000 for the quarter ended June 30, 2018, down $360,000, or 40.7%, from $884,000 for the same period in 2017. The decrease is mainly attributed to a decrease of $126,000 in brokerage commissions combined with a decrease of $183,000 in late and prepayment charges.

Noninterest Expense

Noninterest expenses were $8.5 million for the quarter ended June 30, 2018, up $1.5 million, or 21.4%, from $7.0 million for the same period in 2017. The increase is mainly attributed to an increase of $607,000 in total compensation and benefits expense which included $201,000 in Employee Stock Ownership Plan expense, an increase of $333,000 in professional services, and a net loss of $197,000 related to loans sold.

Asset Quality

Nonaccrual loans decreased to $6.7 million or 0.69% of total assets at June 30, 2018 from $11.4 million or 1.23% of total assets at December 31, 2017. The decrease is mainly attributed to decreases in nonaccruals of $1.4 million in nonresidential properties, $1.8 million in owner-occupied one-to-four family residential, and $871,000 in investor-owned one-to-four family residential. Additionally, 4 non-accruing loans totaling $2.4 million were sold for a net loss of $197,000 during the quarter.

Provision for loan losses was $337,000 for the quarter ended June 30, 2018, compared to $207,000 for the same period in 2017. The allowance for loan losses was $11.8 million, or 1.36%, of total loans at June 30, 2018, compared to $11.1 million, or 1.37%, of total loans at December 31, 2017. Net charge-offs totaled $13,000 for the quarter ended June 30, 2018, compared to $24,000 for the same period in 2017.

Balance Sheet

Total assets increased $43.3 million, or 4.7%, to $968.8 million at June 30, 2018 from $925.5 million at December 31, 2017. Net loans increased $51.7 million, or 6.5%, to $850.4 million at June 30, 2018 from $798.7 million at December 31, 2017. The increase in net loans was primarily attributed to increases of $29.7 million or 15.7% in multifamily residential and $17.6 million or 11.6% in nonresidential properties.

Total deposits increased $39.3 million, or 5.5%, to $753.3 million at June 30, 2018 from $714.0 million at December 31, 2017. The increase in deposits was primarily attributed to increases in certificates of deposits of $24.7 million or 6.0% and an increase of $12.1 million or 26.0% in money market accounts.

Total stockholders' equity was $166.6 million at June 30, 2018 compared to $164.8 million at December 31, 2017. The Company and the Bank exceeded all regulatory capital requirements to be deemed well-capitalized at June 30, 2018. The Bank's total capital to risk-weighted assets ratio was 20.07%, tier 1 capital to risk-weighted assets ratio and common equity tier 1 capital ratio was 18.81%, and tier 1 capital to total assets ratio was 14.03% at June 30, 2018 compared to 20.73%, 19.48%, and 14.67%, respectively, at December 31, 2017.

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 -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,  
    2018     2018     2017     2017     2017  
ASSETS                                        
Cash and due from banks:                                        
Cash   $ 7,088     $ 6,570     $ 24,746     $ 4,716     $ 4,096  
Interest-bearing deposits in banks     42,094       52,409       34,978       51,629       5,400  
Total cash and cash equivalents     49,182       58,979       59,724       56,345       9,496  
Available-for-sale securities, at fair value     28,144       28,422       28,897       29,312       29,668  
Loans held for sale                             2,143  
Loans receivable, net     850,426       823,014       798,703       767,721       732,520  
Accrued interest receivable     3,350       3,202       3,335       3,132       2,917  
Premises and equipment, net     28,366       27,684       27,172       25,729       25,599  
Federal Home Loan Bank Stock (FHLB), at cost     2,617       1,673       1,511       1,448       1,288  
Deferred tax assets     3,805       3,801       3,909       5,563       3,378  
Other assets     2,923       2,848       2,271       3,013       5,987  
Total assets   $ 968,813     $ 949,623     $ 925,522     $ 892,263     $ 812,996  
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Liabilities:                                        
Deposits   $ 753,255     $ 752,267     $ 713,985     $ 698,655     $ 702,406  
Accrued interest payable     141       61       42       32       31  
Advance payments by borrowers for taxes and insurance     5,491       6,999       5,025       5,967       4,661  
Advances from the Federal Home Loan Bank and others     37,775       20,000       36,400       15,000       8,000  
Other liabilities     5,573       4,582       5,285       4,101       3,224  
Total liabilities     802,235       783,909       760,737       723,755       718,322  
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 outstanding
    185       185       185       185        
Additional paid-in-capital     84,488       84,419       84,351       84,099        
Retained earnings     96,495       95,796       94,855       97,719       100,929  
Accumulated other comprehensive loss     (8,076 )     (8,052 )     (7,851 )     (6,257 )     (6,255 )
Unearned compensation - ESOP     (6,514 )     (6,634 )     (6,755 )     (7,238 )      
Total stockholders' equity     166,578       165,714       164,785       168,508       94,674  
Total liabilities and stockholders' equity   $ 968,813     $ 949,623     $ 925,522     $ 892,263     $ 812,996  
                                         
                                         

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

   
    For the Quarters Ended  
    June 30,     March 31,     December 31,     September 30,     June 30,  
    2018     2018     2017     2017     2017  
Interest and dividend income:                                        
Interest on loans receivable   $ 11,053     $ 10,386     $ 10,106     $ 9,893     $ 9,581  
Interest and dividends on investment securities and FHLB stock     330       324       221       271       123  
Total interest and dividend income     11,383       10,710       10,327       10,164       9,704  
Interest expense:                                        
Interest on certificates of deposit     1,847       1,750       1,599       1,574       1,428  
Interest on other deposits     199       185       168       176       161  
Interest on borrowings     204       98       83       66       32  
Total interest expense     2,250       2,033       1,850       1,816       1,621  
Net interest income     9,133       8,677       8,477       8,348       8,083  
Provision for loan losses     337       94       1,219       238       207  
Net interest income after provision for loan losses     8,796       8,583       7,258       8,110       7,876  
Noninterest income:                                        
Service charges and fees     214       223       224       231       225  
Brokerage commissions     42       96       94       167       168  
Late and prepayment charges     52       211       207       157       235  
Other     216       355       169       213       256  
Total noninterest income     524       885       694       768       884  
Noninterest expense:                                        
Compensation and benefits     4,563       4,458       5,104       4,220       3,956  
Occupancy expense     1,717       1,491       1,588       1,412       1,400  
Data processing expenses     300       408       293       316       413  
Direct loan expenses     152       155       171       189       184  
Insurance and surety bond premiums     99       89       64       44       79  
Office supplies, telephone and postage     352       300       317       250       282  
FDIC deposit insurance assessment     66       68       4       122       58  
Charitable foundation contributions                       6,293        
Other operating expenses     1,206       1,290       1,195       884       623  
Total noninterest expense     8,455       8,259       8,736       13,730       6,995  
Income (loss) before income taxes     865       1,209       (784 )     (4,852 )     1,765  
Provision for income taxes (benefit)     166       268       2,081       (1,643 )     641  
Net income (loss)   $ 699     $ 941     $ (2,865 )   $ (3,209 )   $ 1,124  
Earnings per share for the period:                                        
Basic   $ 0.04     $ 0.05     $ (0.16 )   N/A     N/A  
Diluted   $ 0.04     $ 0.05     $ (0.16 )   N/A     N/A  
                                         
                                         

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

   
    For the Six Months Ended June 30,  
    2018     2017     $     %  
Interest and dividend income:                                
Interest on loans receivable   $ 21,439     $ 18,172     $ 3,267       17.98 %
Interest and dividends on investment securities and FHLB stock     654       325       329       101.23 %
Total interest and dividend income     22,093       18,497       3,596       19.44 %
Interest expense:                                
Interest on certificates of deposit     3,597       2,744       853       31.09 %
Interest on other deposits     383       311       72       23.15 %
Interest on borrowings     303       61       242       396.72 %
Total interest expense     4,283       3,116       1,167       37.45 %
Net interest income     17,810       15,381       2,429       15.79 %
Provision for loan losses     431       259       172       66.41 %
Net interest income after provision for loan losses     17,379       15,122       2,257       14.93 %
Noninterest income:                                
Service charges and fees     437       454       (17 )     (3.74 %)
Brokerage commissions     138       286       (148 )     (51.75 %)
Late and prepayment charges     263       446       (183 )     (41.03 %)
Other     571       456       115       25.22 %
Total noninterest income     1,409       1,642       (233 )     (14.19 %)
Noninterest expense:                                
Compensation and benefits     8,918       7,785       1,133       14.55 %
Occupancy expense     3,208       2,826       382       13.52 %
Data processing expenses     708       866       (158 )     (18.24 %)
Direct loan expenses     307       379       (72 )     (19.00 %)
Insurance and surety bond premiums     188       161       27       16.77 %
Office supplies, telephone and postage     652       536       116       21.64 %
FDIC deposit insurance assessment     134       124       10       8.06 %
Other operating expenses     2,599       1,414       1,185       83.80 %
Total noninterest expense     16,714       14,091       2,623       18.61 %
Income before income taxes     2,074       2,673       (599 )     (22.41 %)
Provision for income taxes     434       986       (552 )     (55.98 %)
Net income   $ 1,640     $ 1,687     $ (47 )     (2.79 %)
Earnings per share  for the period:                                
Basic   $ 0.09     N/A     N/A     N/A  
Diluted   $ 0.09     N/A     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,  
    2018     2018     2017     2017     2017  
Performance Ratios:                                        
Return on average assets     0.29 %     0.41 %     (1.27 %)     (1.43 %)     0.57 %
Return on average equity     1.68 %     2.30 %     (6.74 %)     (12.93 %)     4.75 %
Net interest rate spread (1)     3.64 %     3.61 %     3.54 %     3.58 %     4.07 %
Net interest margin (2)     3.96 %     3.95 %     3.88 %     3.86 %     4.29 %
Noninterest expense to average assets     3.54 %     3.61 %     3.86 %     6.11 %     3.56 %
Efficiency ratio (3)     87.55 %     86.37 %     95.26 %     150.61 %     78.02 %
Average interest-earning assets to average interest-bearing liabilities     132.89 %     135.79 %     139.76 %     133.72 %     125.73 %
Average equity to average assets     17.45 %     17.91 %     18.77 %     11.05 %     12.03 %
Capital Ratios:                                        
Total capital to risk weighted assets (bank only)     20.07 %     20.52 %     20.73 %     21.41 %     17.34 %
Tier 1 capital to risk weighted assets (bank only)     18.81 %     19.26 %     19.48 %     20.15 %     16.09 %
Common equity Tier 1 capital to risk-weighted assets (bank only)     18.81 %     19.26 %     19.48 %     20.15 %     16.09 %
Tier 1 capital to average assets (bank only)     14.03 %     14.25 %     14.67 %     14.91 %     12.70 %
Asset Quality Ratios:                                        
Allowance for loan losses as a percentage of total loans     1.36 %     1.37 %     1.37 %     1.43 %     1.43 %
Allowance for loan losses as a percentage of
nonperforming loans
    176.63 %     122.81 %     97.05 %     118.32 %     138.27 %
Net (charge-offs) recoveries to average outstanding loans     0.00 %     0.12 %     (0.64 %)     0.13 %     0.04 %
Non-performing loans as a percentage of total loans     0.77 %     1.11 %     1.41 %     1.21 %     1.04 %
Non-performing loans as a percentage of total assets     0.69 %     0.98 %     1.23 %     1.06 %     0.95 %
Total non-performing assets as a percentage of total assets     0.69 %     0.98 %     1.23 %     1.06 %     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
    1.87 %     2.25 %     2.72 %     2.61 %     3.05 %
Other:                                        
Number of offices   14     14     14     14     14  
Number of full-time equivalent employees   194     192     177     171     178  
                                         

(1)   Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of average 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,  
    2018     2018     2017     2017     2017  
    Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent  
    (Dollars in thousands)  
Mortgage loans:                                                                                
1-4 family residential                                                                                
Investor Owned   $ 296,490       34.44 %   $ 290,509       34.86 %   $ 287,158       35.51 %   $ 279,275       35.90 %   $ 256,989       34.62 %
Owner-Occupied     92,208       10.71 %     96,943       11.63 %     100,854       12.47 %     99,661       12.81 %     99,901       13.46 %
Multifamily residential     218,210       25.34 %     204,474       24.54 %     188,550       23.31 %     177,181       22.78 %     172,167       23.19 %
Nonresidential properties     168,788       19.60 %     158,525       19.03 %     151,193       18.69 %     152,692       19.63 %     155,670       20.97 %
Construction and land     72,574       8.43 %     67,971       8.16 %     67,240       8.31 %     52,483       6.75 %     42,116       5.67 %
Total mortgage loans     848,270       98.52 %     818,422       98.21 %     794,995       98.30 %     761,292       97.87 %     726,843       97.91 %
Nonmortgage loans:                                                                                
Business loans     11,698       1.36 %     13,925       1.67 %     12,873       1.59 %     15,600       2.01 %     14,654       1.97 %
Consumer loans     1,027       0.12 %     975       0.12 %     886       0.11 %     943       0.12 %     850       0.11 %
Total nonmortgage loans     12,725       1.48 %     14,900       1.79 %     13,759       1.70 %     16,543       2.13 %     15,504       2.09 %
      860,995       100.00 %     833,322       100.00 %     808,754       100.00 %     777,835       100.00 %     742,347       100.00 %
                                                                                 
Net deferred loan origination costs     1,182               1,101               1,020               1,033               828          
Allowance for losses on loans     (11,751 )             (11,409 )             (11,071 )             (11,147 )             (10,655 )        
                                                                                 
Loans, net   $ 850,426             $ 823,014             $ 798,703             $ 767,721             $ 732,520          
                                                                                 


PDL Community Bancorp and Subsidiaries

Nonperforming Assets

   
    For the Quarters Ended  
    June 30,   March 31,   December 31,   September 30,   June 30,  
    2018   2018   2017   2017   2017  
    (Dollars in thousands)  
Nonaccrual loans:                                
Mortgage loans:                                
1-4 family residential                                
Investor owned   $ 208   $ 209   $ 1,034   $ 402   $ 571  
Owner occupied     1,481     1,951     2,624     2,630     2,463  
Multifamily residential             521          
Nonresidential properties     142     633     1,387     653     867  
Construction and land     1,111     1,097     1,075     1,075     1,008  
Nonmortgage loans:                                
Business         30     147     12     12  
Consumer                      
Total nonaccrual loans (not including non-accruing
troubled debt restructured loans)
  $ 2,942   $ 3,920   $ 6,788   $ 4,772   $ 4,921  
                                 
Non-accruing troubled debt restructured loans:                                
Mortgage loans:                                
1-4 family residential                                
Investor owned   $ 1,099   $ 1,122   $ 1,144   $ 1,168   $ 1,190  
Owner occupied     2,007     2,983     2,693     2,698     810  
Multifamily residential                      
Nonresidential properties     606     1,265     783     783     785  
Construction and land                      
Nonmortgage loans:                                
Business                      
Consumer                      
Total non-accruing troubled debt restructured loans     3,712     5,370     4,620     4,649     2,785  
Total nonaccrual loans   $ 6,654   $ 9,290   $ 11,408   $ 9,421   $ 7,706  
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   $ 6,654   $ 9,290   $ 11,408   $ 9,421   $ 7,706  
Accruing loans past due 90 days or more:                                
Mortgage loans:                                
1-4 family residential                                
Investor owned   $   $   $ 7   $   $  
Owner occupied                      
Multifamily residential                      
Nonresidential properties                      
Construction and land                      
Nonmortgage loans:                                
Business                      
Consumer                      
Total accruing loans past due 90 days or more   $   $   $ 7   $   $  
Accruing troubled debt restructured loans:                                
Mortgage loans:                                
1-4 family residential                                
Investor owned   $ 5,707   $ 5,738   $ 6,559   $ 6,594   $ 7,108  
Owner occupied     3,911     4,424     4,756     4,784     5,439  
Multifamily residential                      
Nonresidential properties     1,458     1,468     1,958     1,968     4,009  
Construction and land                      
Nonmortgage loans:                                
Business     421     454     477     501     516  
Consumer                      
Total accruing troubled debt restructured loans   $ 11,497   $ 12,084   $ 13,750   $ 13,847   $ 17,072  
Total nonperforming assets, accruing loans past due 90 days or more
and accruing troubled debt restructured loans
  $ 18,151   $ 21,374   $ 25,165   $ 23,268   $ 24,778  
Total nonperforming loans to total loans     0.77 %   1.11 %   1.41 %   1.21 %   1.04 %
Total nonperforming assets to total assets     0.69 %   0.98 %   1.23 %   1.06 %   0.95 %
Total nonperforming assets, accruing loans past due 90 days or more
and accruing troubled debt restructured loans to total assets
    1.87 %   2.25 %   2.72 %   2.61 %   3.05 %
                                 


PDL Community Bancorp and Subsidiaries

Average Balance Sheets - Quarter

   
    For the Three Months Ended June 30,  
    2018     2017  
       
    Average                     Average                  
    Outstanding             Average     Outstanding             Average  
    Balance     Interest     Yield/Rate (1)     Balance     Interest     Yield/Rate (1)  
    (Dollars in thousands)  
Interest-earning assets:                                                
Loans   $ 843,641     $ 11,053       5.26 %   $ 709,330     $ 9,581       5.42 %
Available-for-sale securities     28,267       104       1.48 %     34,251       90       1.05 %
Other (2)     52,967       226       1.71 %     11,752       33       1.13 %
Total interest-earning assets     924,875       11,383       4.94 %     755,333       9,704       5.15 %
Non-interest-earning assets     33,424                       33,568                  
Total assets   $ 958,299                     $ 788,901                  
Interest-bearing liabilities:                                                
Savings accounts   $ 126,133     $ 148       0.47 %   $ 128,004     $ 123       0.39 %
Interest-bearing demand     84,339       50       0.24 %     74,862       37       0.20 %
Certificates of deposit     448,883       1,847       1.65 %     380,664       1,428       1.50 %
Total deposits     659,355       2,045       1.24 %     583,530       1,588       1.09 %
Advance payments by borrowers     8,045       1       0.05 %     6,596       1       0.06 %
Borrowings     28,595       204       2.86 %     10,648       32       1.21 %
Total interest-bearing liabilities     695,995       2,250       1.30 %     600,774       1,621       1.08 %
Non-interest-bearing liabilities:                                                
Non-interest-bearing demand     89,935                     89,793                
Other non-interest-bearing liabilities     5,104                     3,396                
Total non-interest-bearing liabilities     95,039                     93,189                
Total liabilities     791,034       2,250               693,963       1,621          
Total equity     167,265                       94,938                  
Total liabilities and total equity   $ 958,299               1.30 %   $ 788,901               1.08 %
Net interest income           $ 9,133                     $ 8,083          
Net interest rate spread (3)                     3.64 %                     4.07 %
Net interest-earning assets (4)   $ 228,880                     $ 154,559                  
Net interest margin (5)                     3.96 %                     4.29 %
Average interest-earning assets to                                                
  interest-bearing liabilities                     132.89 %                     125.73 %
                                                 

(1)     Annualized where appropriate.
(2)     Includes FHLB demand accounts and FHLB 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 – Year-to-date

   
    For the Six Months Ended June 30,  
    2018     2017  
    Average                     Average                  
    Outstanding             Average     Outstanding             Average  
    Balance     Interest     Yield/Rate (1)     Balance     Interest     Yield/Rate (1)  
    (Dollars in thousands)  
Interest-earning assets:                                                
Loans   $ 830,114     $ 21,439       5.21 %   $ 685,883     $ 18,172       5.34 %
Available-for-sale securities     28,478       209       1.48 %     43,246       273       1.27 %
Other (2)     49,852       445       1.80 %     10,862       52       0.97 %
Total interest-earning assets     908,444       22,093       4.90 %     739,991       18,497       5.04 %
Non-interest-earning assets     34,414                       33,229                  
Total assets   $ 942,858                     $ 773,220                  
Interest-bearing liabilities:                                                
Savings accounts   $ 125,308     $ 279       0.45 %   $ 127,890     $ 245       0.39 %
Interest-bearing demand     80,837       102       0.25 %     73,502       64       0.18 %
Certificates of deposit     439,614       3,597       1.65 %     371,617       2,744       1.49 %
Total deposits     645,759       3,978       1.24 %     573,009       3,053       1.07 %
Advance payments by borrowers     7,313       2       0.06 %     5,766       2       0.07 %
Borrowings     23,409       303       2.61 %     11,795       61       1.04 %
Total interest-bearing liabilities     676,481       4,283       1.28 %     590,570       3,116       1.06 %
Non-interest-bearing liabilities:                                                
Non-interest-bearing demand     94,625                     84,957                
Other non-interest-bearing liabilities     5,096                     3,322                
Total non-interest-bearing liabilities     99,721                     88,279                
Total liabilities     776,202       4,283               678,849       3,116          
Total equity     166,656                       94,371                  
Total liabilities and total equity   $ 942,858               1.28 %   $ 773,220               1.06 %
Net interest income           $ 17,810                     $ 15,381          
Net interest rate spread(3)                     3.63 %                     3.98 %
Net interest-earning assets (4)   $ 231,963                     $ 149,421                  
Net interest margin (5)                     3.95 %                     4.19 %
Average interest-earning assets to                                                
  interest-bearing liabilities                     134.29 %                     125.30 %
                                                 

(1)     Annualized where appropriate.
(2)     Includes FHLB demand accounts and FHLB 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.com
718-931-9000

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