NEW YORK, Nov. 02, 2021 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the "Company") (NASDAQ:PDLB), the financial holding company for Ponce Bank (the "Bank") and Mortgage World Bankers, Inc. ("Mortgage World"), reported net income of $2.1 million, or $0.12 per basic and diluted share, for the third quarter of 2021, compared to net income of $5.9 million, or $0.35 per basic and diluted share, for the prior quarter and net income of $4.0 million, or $0.24 per basic and diluted share, for the third quarter of 2020.

Third Quarter Highlights

Net interest income of $15.4 million for the current quarter increased $1.7 million, or 12.4%, from prior quarter and $4.6 million, or 42.3%, from same quarter last year.
Income before income taxes of $3.4 million for the current quarter decreased $4.5 million, or 57.0%, from prior quarter and $1.8 million, or 34.6%, for the same quarter last year. Included in the prior quarter was a net gain of $4.2 million and included in the same quarter last year was a net gain of $4.4 million, both resulting from the sale of real property.
Average cost of interest-bearing deposits was 0.58% for the current quarter, a decrease from 0.67% for the prior quarter and from 1.12% for the same quarter last year.
Net interest margin was 4.13% for the current quarter, an increase from 3.84% for the prior quarter and from 3.65% for the same quarter last year.
Net interest rate spread was 3.92% for the current quarter, an increase from 3.60% for the prior quarter and from 3.33% for the same quarter last year.
Efficiency ratio was 78.89% for the current quarter compared to 61.80% for the prior quarter and 68.09% for the same quarter last year.
Non-performing loans of $10.2 million decreased $793,000 year-over-year and equates to 0.77% of total gross loans receivable as of September 30, 2021.
Net loans receivable were $1.30 billion at September 30, 2021, an increase of $143.6 million, or 12.4%, from December 31, 2020.
Deposits were $1.25 billion at September 30, 2021, an increase of $219.7 million, or 21.3%, from December 31, 2020.

President and Chief Executive Officer's Comments

Carlos P. Naudon, the Company's President and CEO, noted, "The numbers are substantiating the success of our strategy. We continue increasing customer relationships, growing both our deposits and loans while continuing to increase our net interest margin and building our demand deposit base. We focus on net operating expenses, maintaining net operating expenses stable as we add resources that deliver revenue producing services to customers, allowing us to further grow into our overhead while increasing profitability. As our PPP loans are being forgiven by the SBA, we are heartened in the retention of large segments of these borrowers and in the continued acknowledgement of the positive impact we are having on our communities. Our demonstrated success as an MDI and CDFI has positioned us well to lead in remediating the disparate effects of the pandemic, and the wealth and financial gaps present in our communities."

Executive Chairman's Comments

Steven A. Tsavaris, the Company's Executive Chairman, added, "Strengthening our capital position is a cornerstone of our strategy of being impactful to both our communities and our other stakeholders. As we move forward to seek approval of our mutual-to-stock conversion and await a favorable outcome of the recently applied for $225 million in capital from the U.S. Department of the Treasury under the Emergency Capital Investment Program, we are humbled and inspired by the trust and hopes being placed in our Company."

Loan Payment Deferrals

As of September 30, 2021, five loans in the amount of $9.9 million remained in forbearance as a result of renewed forbearance for a period of three months. Of the five loans receiving renewed forbearance, one loan in the amount of $6.6 million is related to construction real estate, three loans, totaling $2.9 million are related to one-to-four family residential real estate and one loan in the amount of $388,000 is related to non-residential properties. All of these loans had been performing in accordance with their contractual obligations prior to the granting of the initial forbearance. The Company actively monitors the business activities of borrowers in forbearance and seeks to determine their capacity to resume payments as contractually obligated upon the termination of the forbearance period. The extended forbearances are short-term modifications made on a good faith basis in response to the COVID-19 pandemic and in furtherance of governmental policies.

Results of Operations Summary

Net income for the three months ended September 30, 2021 was $2.1 million, compared to $5.9 million of net income for the three months ended June 30, 2021 and $4.0 million of net income for the three months ended September 30, 2020.

The $3.9 million decrease in net income for the three months ended September 30, 2021 compared to the three months ended June 30, 2021 was due substantially to a decrease of $5.1 million in non-interest income primarily resulting from a decrease of $4.2 million in gain, net of expenses, on sale of real property. The decrease in net income was also attributable to an increase of $1.1 million in non-interest expense, offset by an increase of $1.7 million in net interest income and a decrease of $596,000 in provision for income taxes.

The $2.0 million decrease in net income for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was due substantially to a decrease of $4.0 million in non-interest income primarily resulting from a decrease of $4.4 million in gain, net of expenses, on sale of real property. The decrease in net income was also attributable to an increase of $2.4 million in non-interest expense and an increase of $171,000 in provision for income taxes, offset by an increase of $4.6 million in net interest income.

Net income for the nine months ended September 30, 2021 was $10.4 million, compared to $2.2 million of net income for the nine months ended September 30, 2020. The change from the nine months ended September 30, 2020 is primarily due to a $7.0 million increase in non-interest income primarily due to increases of $2.6 million in sale of mortgage loans, $1.9 million in loan originations attributable to Mortgage World and $2.5 million in the aggregate related to service charges and fees, brokerage commissions, late and prepayment charges, gain, net of expenses, on sale of real property and other non-interest income. The increase in net income was also attributable to an $11.8 million increase in net interest income and a $193,000 decrease in provision for loan losses, partially offset by increases of $7.7 million in non-interest expense and $3.1 million in provision for income taxes.

Net interest income for the three months ended September 30, 2021 was $15.4 million, an increase of $1.7 million, or 12.4%, compared to the three months ended June 30, 2021 and an increase of $4.6 million, or 42.3%, compared to the three months ended September 30, 2020. The increase of $1.7 million in net interest income for the three months ended September 30, 2021 compared to the three months ended June 30, 2021 was attributable to an increase of $1.6 million in interest and dividend income and a decrease of $127,000 in interest expense. The increase of $4.6 million in net interest income for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was attributable to an increase of $3.8 million in interest and dividend income and a decrease of $767,000 in interest expense.

Net interest income for the nine months ended September 30, 2021 was $42.1 million, an increase of $11.8 million, or 38.8%, compared to the nine months ended September 30, 2020. The increase in net interest income was attributable to an increase of $9.4 million in interest and dividend income and a decrease of $2.3 million in interest expense.

Net interest margin was 4.13% for the three months ended September 30, 2021, an increase of 29 basis points from 3.84% for the three months ended June 30, 2021 and an increase of 48 basis points from 3.65% for the three months ended September 30, 2020.

Net interest rate spread increased by 32 basis points to 3.92% for the three months ended September 30, 2021 from 3.60% for the three months ended June 30, 2021 and increased by 59 basis points from 3.33% for the three months ended September 30, 2020. The increase in the net interest rate spread for the three months ended September 30, 2021 compared to the three months ended June 30, 2021 was primarily due to an increase in the average yields on interest-earning assets of 23 basis points to 4.66% for the three months ended September 30, 2021 from 4.43% for the three months ended June 30, 2021, and by a decrease on the average rates on interest-bearing liabilities of 9 basis points to 0.74% for the three months ended September 30, 2021 from 0.83% for the three months ended June 30, 2021. The increase in the net interest rate spread for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was primarily due to a decrease on the average rates on interest-bearing liabilities of 50 basis points to 0.74% for the three months ended September 30, 2021 from 1.24% for the three months ended September 30, 2020, and by a slight increase in the average yields on interest-earning assets of 9 basis points to 4.66% for the three months ended September 30, 2021 from 4.57% for the three months ended September 30, 2020.

Non-interest income decreased $5.1 million to $3.2 million for the three months ended September 30, 2021 from $8.3 million for the three months ended June 30, 2021 and decreased $4.0 million from $7.3 million for the three months ended September 30, 2020.

The decrease in non-interest income for the three months ended September 30, 2021 compared to the three months ended June 30, 2021 was primarily due to decreases of $4.2 million in gain, net of expenses, from the sale of real property recognized in the second quarter of 2021, $471,000 in other non-interest income, $346,000 in loan origination fees, $160,000 in brokerage commissions and $113,000 in income on sale of mortgage loans attributable to Mortgage World, offset by increases of $128,000 in service charges and fees and $31,000 in late and prepayment charges.

The decrease in non-interest income for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 was primarily due to decreases of $4.4 million in gain, net of expenses, from the sale of real property recognized in the third quarter of 2020, $197,000 in income on sale of mortgage loans attributable to Mortgage World, $177,000 in brokerage commissions and $30,000 in other non-interest income, offset by increases of $356,000 in loan origination fees attributable to Mortgage World, $258,000 service charges and fees and $184,000 in late and prepayment charges.

Non-interest income increased $7.0 million to $15.5 million for the nine months ended September 30, 2021 from $8.5 million for the nine months ended September 30, 2020. The increase in non-interest income for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 was primarily due to increases of $2.6 million in sale of mortgage loans and $1.9 million in loan originations attributable to Mortgage World. Other increases include $597,000 in other non-interest income, $594,000 in late and prepayment charges, $560,000 in service charges and fees, $404,000 in brokerage commissions and $400,000 in gain, net of expenses, from the sale of real property.

Non-interest expense increased $1.1 million, or 8.0%, to $14.7 million for the three months ended September 30, 2021, from $13.6 million for the three months ended June 30, 2021 and increased $2.4 million from $12.3 million for the three months ended September 30, 2020.

The increase in non-interest expense for the three months ended September 30, 2021, compared to the three months ended June 30, 2021 was primarily attributable to an increase of $2.2 million in compensation and benefits, which was specifically related to the allocable portion of employee expenses related to the origination of Paycheck Protection Program ("PPP") loans, netted against PPP loan origination fees received from the SBA in the second quarter of 2021. Other increases in non-interest expense were $184,000 in data processing expenses, $159,000 in office supplies, telephone and postage and $155,000 in other operating expenses, offset by decreases of $1.1 million in professional fees as a result of $1.2 million of additional consultant fees recognized in the second quarter of 2021 and $455,000 in direct loan expenses.

The increase in non-interest expense for the three months ended September 30, 2021, compared to the three months ended September 30, 2020 primarily reflects increases of $873,000 in compensation and benefits, which was specifically related to the allocable portion of employee expenses related to the origination of PPP loans, netted against PPP loan origination fees received from the SBA recognized in the third quarter of 2020. Other increases in non-interest expense include $321,000 in data processing expenses, $279,000 in other operating expenses, $265,000 in occupancy and equipment, $259,000 in direct loan expenses, $240,000 in office supplies, telephone and postage and $212,000 in professional fees.

Non-interest expense increased $7.7 million, or 22.9%, to $41.3 million for the nine months ended September 30, 2021, compared to $33.6 million for the nine months ended September 30, 2020. The increase in non-interest expense for the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020 was attributable to increases of $2.0 million in direct loan expenses, $1.4 million in occupancy and equipment, $1.4 million in professional fees, primarily due to an increase in consulting expenses related to a third-party service provider that provided loan origination services related to PPP loans and $1.1 million in compensation and benefits. Other increases in non-interest expense include $790,000 in other operating expenses, $685,000 in data processing expenses and $103,000 in regulatory dues, offset by a decrease of $369,000 in marketing and promotional expenses.

Balance Sheet Summary

Total assets increased $205.3 million, or 15.2%, to $1.56 billion at September 30, 2021 from $1.36 billion at December 31, 2020. The increase in total assets is attributable to increases of $143.6 million in net loans receivable, including $110.6 million net increase in PPP loans, $86.9 million in available-for-sale securities, $2.2 million in other assets, $2.0 million, net, in premises and equipment, $2.0 million in accrued interest receivable, and $170,000 in deferred tax assets. The increase in total assets was reduced by decreases of $21.5 million in mortgage loans held for sale, at fair value, $9.0 million in cash and cash equivalents, $425,000 in FHLBNY stock, $306,000 in held-to-maturity securities and $249,000 in placement with banks.

Total liabilities increased $191.0 million, or 16.0%, to $1.39 billion at September 30, 2021 from $1.20 billion at December 31, 2020. The increase in total liabilities was mainly attributable to increases of $219.7 million in deposits, $2.1 million in advance payments by borrowers for taxes and insurance and $178,000 in accrued interest payable, offset by decreases of $18.7 million in warehouse lines of credit, $11.0 million in advances from FHLBNY and $934,000 in other liabilities.

Total stockholders' equity increased $14.3 million, or 9.0%, to $173.9 million at September 30, 2021 from $159.5 million at December 31, 2020. The $14.3 million increase in stockholders' equity was mainly attributable to $10.4 million in net income, $3.1 million in net treasury stock activity, $1.1 million related to share-based compensation and $472,000 related to the Company's Employee Stock Ownership Plan, offset by $756,000 related to unrealized loss on available-for-sale securities.

As of September 30, 2021, the Company had repurchased a total of 1,670,619 shares under prior repurchase programs at a weighted average price of $13.22 per share, of which 1,132,086 were reported as treasury stock. The Company suspended its repurchase program as of May 3, 2021. Of the 1,670,619 shares repurchased, 189,960 shares have been used for grants awarded to directors, executive officers and non-executive officers under the Company's 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2020 and 2019 and July 23, 2021. Of these 189,960 shares, 166 shares were retained to satisfy a recipient's taxes and other withholding obligations and these shares remain as part of treasury stock. In addition, on April 22, 2021, 348,739 shares were sold to Banc of America Strategic Investments Corporation in a privately negotiated transaction.

About PDL Community Bancorp

PDL Community Bancorp is the financial holding company for Ponce Bank and Mortgage World Bankers, Inc. Ponce Bank is a federally chartered stock savings association. Ponce Bank is designated a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank's business primarily consists of taking deposits from the general public and to a lesser extent from alternative funding sources and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises as well as mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock. Mortgage World Bankers, Inc. is a mortgage lender operating in five states and is subject to the regulation and examination of the New York State Department of Financial Services. As a Federal Housing Administration ("FHA")-approved Title II lender, Mortgage World Bankers, Inc. originates and sells to investors single family mortgage loans guaranteed by the FHA, as well as conventional mortgages.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as "believes," "will," "would," "expects," "project," "may," "could," "developments," "strategic," "launching," "opportunities," "anticipates," "estimates," "intends," "plans," "targets" and similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company's business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers' ability to service and repay the Company's loans; the anticipated impact of the COVID-19 pandemic and the Company's attempts at mitigation; changes in the value of securities in the Company's investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the Company's financial statements will become impaired; demand for loans in the Company's market area; the Company's ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the "SEC"), which are available at the SEC's website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorp's actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)


	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
ASSETS
Cash and due from banks:
Cash	$	29,365		$	32,541		$	13,551		$	26,936		$	14,302
Interest-bearing deposits in banks		33,673			33,551			76,571			45,142			61,790
Total cash and cash equivalents		63,038			66,092			90,122			72,078			76,092
Available-for-sale securities, at fair value		104,358			48,536			30,929			17,498			14,512
Held-to-maturity securities, at amortized cost		1,437			1,720			1,732			1,743			—
Placement with banks		2,490			2,739			2,739			2,739			2,739
Mortgage loans held for sale, at fair value		13,930			15,308			13,725			35,406			13,100
Loans receivable, net		1,302,238			1,343,578			1,230,458			1,158,640			1,108,956
Accrued interest receivable		13,360			13,134			12,547			11,396			9,995
Premises and equipment, net		34,081			34,057			33,625			32,045			32,113
Federal Home Loan Bank of New York stock (FHLBNY), at cost		6,001			6,156			6,057			6,426			6,414
Deferred tax assets		4,826			5,493			4,569			4,656			3,586
Other assets		14,793			10,837			7,204			12,604			9,844
Total assets	$	1,560,552		$	1,547,650		$	1,433,707		$	1,355,231		$	1,277,351
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	1,249,261		$	1,236,161		$	1,138,546		$	1,029,579		$	973,244
Accrued interest payable		238			55			66			60			58
Advance payments by borrowers for taxes and insurance		9,118			7,682			9,264			7,019			7,739
Advances from the FHLBNY and others		106,255			109,255			109,255			117,255			117,283
Warehouse lines of credit		11,261			13,084			11,664			29,961			9,065
Mortgage loan fundings payable		1,136			743			676			1,483			1,457
Other liabilities		9,396			8,780			3,032			10,330			10,131
Total liabilities		1,386,665			1,375,760			1,272,503			1,195,687			1,118,977
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized		—			—			—			—			—
Common stock, $0.01 par value; 50,000,000 shares authorized		185			185			185			185			185
Treasury stock, at cost		(15,069	)		(15,069	)		(19,285	)		(18,114	)		(18,281	)
Additional paid-in-capital		86,360			85,956			85,470			85,105			85,817
Retained earnings		107,977			105,925			99,993			97,541			95,913
Accumulated other comprehensive income		(621	)		(41	)		28			135			168
Unearned compensation ─ ESOP		(4,945	)		(5,066	)		(5,187	)		(5,308	)		(5,428	)
Total stockholders' equity		173,887			171,890			161,204			159,544			158,374
Total liabilities and stockholders' equity	$	1,560,552		$	1,547,650		$	1,433,707		$	1,355,231		$	1,277,351

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2021		2021		2021		2020		2020
Interest and dividend income:
Interest on loans receivable	$	16,991	$	15,603	$	14,925	$	14,070	$	13,375
Interest on deposits due from banks		9		2		2		10		5
Interest and dividend on securities and FHLBNY stock		425		239		250		233		223
Total interest and dividend income		17,425		15,844		15,177		14,313		13,603
Interest expense:
Interest on certificates of deposit		1,010		1,108		1,219		1,422		1,597
Interest on other deposits		354		382		382		448		500
Interest on borrowings		621		622		684		769		655
Total interest expense		1,985		2,112		2,285		2,639		2,752
Net interest income		15,440		13,732		12,892		11,674		10,851
Provision for loan losses		572		586		686		406		620
Net interest income after provision for loan losses		14,868		13,146		12,206		11,268		10,231
Non-interest income:
Service charges and fees		494		366		329		263		236
Brokerage commissions		270		430		223		455		447
Late and prepayment charges		329		298		244		81		145
Income on sale of mortgage loans		1,175		1,288		1,508		2,748		1,372
Loan origination		625		971		539		656		269
Gain on sale of real property		—		4,176		663		—		4,412
Other		341		812		387		596		371
Total non-interest income		3,234		8,341		3,893		4,799		7,252
Non-interest expense:
Compensation and benefits		6,427		4,212		5,664		6,846		5,554
Occupancy and equipment		2,849		2,838		2,634		2,686		2,584
Data processing expenses		917		733		594		578		596
Direct loan expenses		696		1,151		1,009		599		437
Insurance and surety bond premiums		147		143		146		166		138
Office supplies, telephone and postage		626		467		409		385		386
Professional fees		1,765		2,902		1,262		1,533		1,553
Marketing and promotional expenses		51		48		38		—		127
Directors fees		67		69		69		69		69
Regulatory dues		74		120		60		59		49
Other operating expenses		1,113		958		1,030		1,034		834
Total non-interest expense		14,732		13,641		12,915		13,955		12,327
Income before income taxes		3,370		7,846		3,184		2,112		5,156
Provision for income taxes		1,318		1,914		732		484		1,147
Net income	$	2,052	$	5,932	$	2,452	$	1,628	$	4,009
Earnings per share:
Basic	$	0.12	$	0.35	$	0.15	$	0.10	$	0.24
Diluted	$	0.12	$	0.35	$	0.15	$	0.10	$	0.24
Weighted average shares outstanding:
Basic		16,823,731		16,737,037		16,548,196		16,558,576		16,612,205
Diluted		16,914,833		16,773,606		16,548,196		16,558,576		16,612,205

PDL Community Bancorp and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

	Nine Months Ended September 30,
	2021		2020		Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	47,519	$	38,319	$	9,200			24.01	%
Interest on deposits due from banks		13		74		(61	)		(82.43	%)
Interest and dividend on securities and FHLBNY stock		914		633		281			44.39	%
Total interest and dividend income		48,446		39,026		9,420			24.14	%
Interest expense:
Interest on certificates of deposit		3,337		5,154		(1,817	)		(35.25	%)
Interest on other deposits		1,118		1,726		(608	)		(35.23	%)
Interest on borrowings		1,927		1,850		77			4.16	%
Total interest expense		6,382		8,730		(2,348	)		(26.90	%)
Net interest income		42,064		30,296		11,768			38.84	%
Provision for loan losses		1,844		2,037		(193	)		(9.47	%)
Net interest income after provision for loan losses		40,220		28,259		11,961			42.33	%
Non-interest income:
Service charges and fees		1,189		629		560			89.03	%
Brokerage commissions		923		519		404			77.84	%
Late and prepayment charges		871		277		594			214.44	%
Income on sale of mortgage loans		3,971		1,372		2,599			189.43	%
Loan origination		2,135		269		1,866			693.68	%
Gain on sale of real property		4,812		4,412		400			9.07	%
Other		1,567		970		597			61.55	%
Total non-interest income		15,468		8,448		7,020			83.10	%
Non-interest expense:
Compensation and benefits		16,303		15,207		1,096			7.21	%
Occupancy and equipment		8,321		6,878		1,443			20.98	%
Data processing expenses		2,244		1,559		685			43.94	%
Direct loan expenses		2,856		848		2,008			236.79	%
Insurance and surety bond premiums		436		387		49			12.66	%
Office supplies, telephone and postage		1,502		1,014		488			48.13	%
Professional fees		5,929		4,516		1,413			31.29	%
Marketing and promotional expenses		137		506		(369	)		(72.92	%)
Directors fees		205		207		(2	)		(0.97	%)
Regulatory dues		254		151		103			68.21	%
Other operating expenses		3,101		2,311		790			34.18	%
Total non-interest expense		41,288		33,584		7,704			22.94	%
Income before income taxes		14,400		3,123		11,277			361.10	%
Provision for income taxes		3,964		898		3,066			341.43	%
Net income	$	10,436	$	2,225	$	8,211			369.03	%
Earnings per share:
Basic	$	0.62	$	0.13	N/A			N/A
Diluted	$	0.62	$	0.13	N/A			N/A
Weighted average shares outstanding:
Basic		16,703,997		16,711,677	N/A			N/A
Diluted		16,746,554		16,724,199	N/A			N/A

PDL Community Bancorp and Subsidiaries

Key Metrics

	At or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
Performance Ratios:
Return on average assets (1)		0.52	%		1.59	%		0.72	%		0.50	%		1.28	%
Return on average equity (1)		4.59	%		13.95	%		6.16	%		4.03	%		9.95	%
Net interest rate spread (1) (2)		3.92	%		3.60	%		3.76	%		3.50	%		3.33	%
Net interest margin (1) (3)		4.13	%		3.84	%		4.00	%		3.78	%		3.65	%
Non-interest expense to average assets (1)		3.72	%		3.65	%		3.82	%		4.29	%		3.95	%
Efficiency ratio (4)		78.89	%		61.80	%		76.94	%		84.71	%		68.09	%
Average interest-earning assets to average interest- bearing liabilities		138.89	%		140.13	%		133.25	%		132.04	%		134.35	%
Average equity to average assets		11.27	%		11.37	%		11.77	%		12.44	%		12.90	%
Capital Ratios:
Total capital to risk weighted assets (bank only)		16.15	%		16.08	%		15.80	%		15.95	%		16.93	%
Tier 1 capital to risk weighted assets (bank only)		14.90	%		14.83	%		14.54	%		14.70	%		15.68	%
Common equity Tier 1 capital to risk-weighted assets (bank only)		14.90	%		14.83	%		14.54	%		14.70	%		15.68	%
Tier 1 capital to average assets (bank only)		9.98	%		10.22	%		10.78	%		11.19	%		11.46	%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans		1.21	%		1.16	%		1.24	%		1.27	%		1.28	%
Allowance for loan losses as a percentage of nonperforming loans		157.17	%		175.63	%		126.07	%		127.28	%		131.00	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.13	%)		(0.07	%)		(0.02	%)		0.03	%		0.00	%
Non-performing loans as a percentage of total gross loans		0.77	%		0.66	%		0.99	%		1.00	%		0.98	%
Non-performing loans as a percentage of total assets		0.65	%		0.58	%		0.86	%		0.86	%		0.86	%
Total non-performing assets as a percentage of total assets		0.65	%		0.58	%		0.86	%		0.86	%		0.86	%
Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets		1.05	%		1.01	%		1.32	%		1.35	%		1.36	%
Other:
Number of offices (5)	19			19			20			20			20
Number of full-time equivalent employees (6)	230			231			236			227			230

(1)	Annualized where appropriate.
(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
(5)	Number of offices included 5 offices at September 30, 2021 and June 30, 2021, and included 6 offices at March 31, 2021, December 31, 2020 and September 30, 2020 due to the acquisition of Mortgage World.
(6)	Subsequent to July 10, 2020, number of full-time equivalent employees includes full-time equivalent employees related to Mortgage World.

PDL Community Bancorp and Subsidiaries

Loan Portfolio

	As of
	September 30,						June 30,						March 31,						December 31,						September 30,
	2021						2021						2021						2020						2020
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned	$	319,346			24.14	%	$	325,409			23.82	%	$	317,895			25.51	%	$	319,596			27.27	%	$	320,438			28.55	%
Owner-Occupied		97,493			7.37	%		98,839			7.24	%		99,985			8.02	%		98,795			8.43	%		93,340			8.31	%
Multifamily residential		317,575			24.01	%		318,579			23.33	%		315,078			25.28	%		307,411			26.23	%		284,775			25.37	%
Nonresidential properties		211,075			15.96	%		211,181			15.46	%		215,340			17.28	%		218,929			18.68	%		217,771			19.40	%
Construction and land		133,130			10.07	%		125,265			9.17	%		119,339			9.57	%		105,858			9.03	%		99,721			8.88	%
Total mortgage loans		1,078,619			81.55	%		1,079,273			79.02	%		1,067,637			85.66	%		1,050,589			89.64	%		1,016,045			90.52	%
Non-mortgage loans:
Business loans (1)		207,859			15.72	%		253,935			18.59	%		142,135			11.40	%		94,947			8.10	%		96,700			8.61	%
Consumer loans (2)		36,095			2.73	%		32,576			2.39	%		36,706			2.94	%		26,517			2.26	%		9,806			0.87	%
Total non-mortgage loans		243,954			18.45	%		286,511			20.98	%		178,841			14.34	%		121,464			10.36	%		106,506			9.48	%
Total loans, gross		1,322,573			100.00	%		1,365,784			100.00	%		1,246,478			100.00	%		1,172,053			100.00	%		1,122,551			100.00	%

Net deferred loan origination costs		(4,327	)					(6,331	)					(512	)					1,457						786
Allowance for losses on loans		(16,008	)					(15,875	)					(15,508	)					(14,870	)					(14,381	)

Loans, net	$	1,302,238					$	1,343,578					$	1,230,458					$	1,158,640					$	1,108,956

(1)	As of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, business loans include $195.9 million, $241.5 million, $132.5 million, $85.3 million, and $86.2 million, respectively, of PPP loans.
(2)	As of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, consumer loans include $35.5 million, $32.0 million, $35.9 million, $25.5 million and $8.7 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain Technologies, LLC.

PDL Community Bancorp and Subsidiaries

Deposits

	As of
	September 30,					June 30,					March 31,					December 31,					September 30,
	2021					2021					2021					2020					2020
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand⁽¹⁾	$	297,777		23.85	%	$	320,404		25.91	%	$	242,255		21.28	%	$	189,855		18.44	%	$	186,328		19.15	%
Interest-bearing deposits:
NOW/IOLA accounts		28,025		2.24	%		28,996		2.35	%		32,235		2.83	%		39,296		3.82	%		29,618		3.04	%
Money market accounts		199,758		15.99	%		172,925		13.99	%		157,271		13.81	%		136,258		13.23	%		148,877		15.30	%
Reciprocal deposits		147,226		11.79	%		151,443		12.25	%		137,402		12.07	%		131,363		12.76	%		108,367		11.13	%
Savings accounts		142,851		11.43	%		130,430		10.55	%		130,211		11.44	%		125,820		12.22	%		120,883		12.42	%
Total NOW, money market, reciprocal and savings accounts		517,860		41.45	%		483,794		39.14	%		457,119		40.15	%		432,737		42.03	%		407,745		41.89	%
Certificates of deposit of $250K or more		70,996		5.68	%		74,941		6.06	%		77,418		6.80	%		78,435		7.62	%		80,403		8.26	%
Brokered certificates of deposit ⁽²⁾		83,505		6.68	%		83,506		6.76	%		86,004		7.55	%		52,678		5.12	%		55,878		5.74	%
Listing service deposits ⁽²⁾		66,340		5.31	%		66,518		5.38	%		61,133		5.37	%		39,476		3.83	%		49,342		5.07	%
All other certificates of deposit less than $250K		212,783		17.03	%		206,998		16.75	%		214,617		18.85	%		236,398		22.96	%		193,548		19.89	%
Total certificates of deposit		433,624		34.70	%		431,963		34.95	%		439,172		38.57	%		406,987		39.53	%		379,171		38.96	%
Total interest-bearing deposits		951,484		76.15	%		915,757		74.09	%		896,291		78.72	%		839,724		81.56	%		786,916		80.85	%
Total deposits	$	1,249,261		100.00	%	$	1,236,161		100.00	%	$	1,138,546		100.00	%	$	1,029,579		100.00	%	$	973,244		100.00	%

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

PDL Community Bancorp and Subsidiaries

Nonperforming Assets

	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	1,669		$	1,983		$	2,907		$	2,808		$	2,750
Owner occupied		1,090			1,593			1,585			1,053			1,075
Multifamily residential		2,577			955			946			946			210
Nonresidential properties		1,388			1,408			3,761			3,776			3,830
Construction and land		922			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing troubled debt restructured loans)	$	7,646		$	5,939		$	9,199		$	8,583		$	7,865

Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned	$	238		$	242		$	246		$	249		$	267
Owner occupied		2,200			2,199			2,195			2,197			2,191
Multifamily residential		—			—			—			—			—
Nonresidential properties		101			659			661			654			655
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing troubled debt restructured loans		2,539			3,100			3,102			3,100			3,113
Total non-accrual loans	$	10,185		$	9,039		$	12,301		$	11,683		$	10,978
Total non-performing assets	$	10,185		$	9,039		$	12,301		$	11,683		$	10,978

Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned	$	3,121		$	3,347		$	3,362		$	3,378		$	3,396
Owner occupied		2,396			2,431			2,466			2,505			2,177
Multifamily residential		—			—			—			—			—
Nonresidential properties		738			755			750			754			759
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total accruing troubled debt restructured loans	$	6,255		$	6,533		$	6,578		$	6,637		$	6,332
Total non-performing assets and accruing troubled debt restructured loans	$	16,440		$	15,572		$	18,879		$	18,320		$	17,310
Total non-performing loans to total gross loans		0.77	%		0.66	%		0.99	%		1.00	%		0.98	%
Total non-performing assets to total assets		0.65	%		0.58	%		0.86	%		0.86	%		0.86	%
Total non-performing assets and accruing troubled debt restructured loans to total assets		1.05	%		1.01	%		1.32	%		1.35	%		1.36	%

PDL Community Bancorp and Subsidiaries

Average Balance Sheets

	For the Three Months Ended September 30,
	2021						2020
	Average						Average
	Outstanding				Average		Outstanding				Average
	Balance		Interest		Yield/Rate ⁽¹⁾		Balance		Interest		Yield/Rate ⁽¹)
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽²⁾	$	1,356,130	$	16,991	4.97	%	$	1,109,799	$	13,375	4.79	%
Securities ⁽³⁾		72,960		355	1.93	%		13,741		132	3.81	%
Other ⁽⁴⁾		53,182		79	0.59	%		60,068		96	0.64	%
Total interest-earning assets		1,482,272		17,425	4.66	%		1,183,608		13,603	4.57	%
Non-interest-earning assets		90,110						58,493
Total assets	$	1,572,382					$	1,242,101
Interest-bearing liabilities:
NOW/IOLA	$	30,221	$	23	0.30	%	$	29,687	$	40	0.54	%
Money market		323,840		294	0.36	%		224,339		422	0.75	%
Savings		137,078		36	0.10	%		121,355		37	0.12	%
Certificates of deposit		448,191		1,010	0.89	%		371,094		1,597	1.71	%
Total deposits		939,330		1,363	0.58	%		746,475		2,096	1.12	%
Advance payments by borrowers		10,061		1	0.04	%		7,756		1	0.05	%
Borrowings		117,824		621	2.09	%		126,729		655	2.06	%
Total interest-bearing liabilities		1,067,215		1,985	0.74	%		880,960		2,752	1.24	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		317,727		—				191,269		—
Other non-interest-bearing liabilities		10,154		—				9,607		—
Total non-interest-bearing liabilities		327,881		—				200,876		—
Total liabilities		1,395,096		1,985				1,081,836		2,752
Total equity		177,286						160,265
Total liabilities and total equity	$	1,572,382			0.74	%	$	1,242,101			1.24	%
Net interest income			$	15,440					$	10,851
Net interest rate spread ⁽⁵⁾					3.92	%					3.33	%
Net interest-earning assets ⁽⁶⁾	$	415,057					$	302,648
Net interest margin ⁽⁷⁾					4.13	%					3.65	%
Average interest-earning assets to interest-bearing liabilities					138.89	%					134.35	%

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

PDL Community Bancorp and Subsidiaries

Average Balance Sheets

	For the Nine Months Ended September 30,
	2021						2020
	Average						Average
	Outstanding				Average		Outstanding				Average
	Balance		Interest		Yield/Rate (1)		Balance		Interest		Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽²⁾	$	1,309,765	$	47,519	4.85	%	$	1,036,706	$	38,319	4.94	%
Securities ⁽³⁾		45,749		701	2.05	%		16,227		361	2.97	%
Other ⁽⁴⁾		53,425		226	0.57	%		55,746		346	0.83	%
Total interest-earning assets		1,408,939		48,446	4.60	%		1,108,679		39,026	4.70	%
Non-interest-earning assets		73,493						53,945
Total assets	$	1,482,432					$	1,162,624
Interest-bearing liabilities:
NOW/IOLA	$	31,215	$	93	0.40	%	$	29,469	$	117	0.53	%
Money market		300,594		909	0.40	%		193,951		1,497	1.03	%
Savings		131,849		113	0.11	%		117,424		109	0.12	%
Certificates of deposit		428,653		3,337	1.04	%		375,303		5,154	1.83	%
Total deposits		892,311		4,452	0.67	%		716,147		6,877	1.28	%
Advance payments by borrowers		10,020		3	0.04	%		8,226		3	0.05	%
Borrowings		122,203		1,927	2.11	%		118,701		1,850	2.08	%
Total interest-bearing liabilities		1,024,534		6,382	0.83	%		843,074		8,730	1.38	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		275,865		—				155,158		—
Other non-interest-bearing liabilities		12,182		—				5,927		—
Total non-interest-bearing liabilities		288,047		—				161,085		—
Total liabilities		1,312,581		6,382				1,004,159		8,730
Total equity		169,851						158,465
Total liabilities and total equity	$	1,482,432			0.83	%	$	1,162,624			1.38	%
Net interest income			$	42,064					$	30,296
Net interest rate spread ⁽⁵⁾					3.77	%					3.32	%
Net interest-earning assets ⁽⁶⁾	$	384,405					$	265,605
Net interest margin ⁽⁷⁾					3.99	%					3.65	%
Average interest-earning assets to
interest-bearing liabilities					137.52	%					131.50	%

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

PDL Community Bancorp and Subsidiaries

Other Data

	As of
	September 30,		June 31,		March 31,		December 31,		September 30,
	2021		2021		2021		2020		2020
Other Data
Common shares issued		18,463,028		18,463,028		18,463,028		18,463,028		18,463,028
Less treasury shares		1,132,086		1,135,086		1,444,776		1,337,059		1,346,679
Common shares outstanding at end of period		17,330,942		17,327,942		17,018,252		17,125,969		17,116,349

Book value per share	$	10.03	$	9.92	$	9.47	$	9.32	$	9.25
Tangible book value per share	$	10.03	$	9.92	$	9.47	$	9.32	$	9.25

Contact:

Frank Perez

frank.perez@poncebank.net

718-931-9000

PDL Community Bancorp Announces 2021 Third Quarter Results