PDL Community Bancorp Announces 2019 Third Quarter Results


NEW YORK, Oct. 30, 2019 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $709,000, or $0.04 per basic and diluted share, for the third quarter of 2019, compared to $950,000, or $0.05 per basic and diluted share, for the prior quarter and net income of $402,000, or $0.02 per basic and diluted share, for the third quarter of 2018. For the nine months ended September 30, 2019 and 2018, net income was $2.3 million and $2.0 million, or $0.13 and $0.11 per basic and diluted share, respectively.

Carlos P. Naudon, President and CEO remarked that, “the year-to-date results are evidence that management remains focused on executing on its core business while investing in capturing growth opportunities and executing strategic initiatives. The increase in net interest income from the prior year reflects the balancing of loan growth and asset quality, the increase in occupancy and equipment expense evidences the continued branch transformation initiative, and the shares repurchased this year have added value to shareholders.”

Net Income

The $241,000 decrease in net income from the prior quarter reflects a $627,000, or 7.2%, increase in noninterest expense, a $118,000, or 3.8%, increase in interest expense, a $107,000, or 15.6%, decrease in noninterest income and a $14,000 increase in provision for loan losses, offset by a $539,000, or 4.3%, increase in interest and dividend income and a $86,000, or 23.1%, decrease in provision for income taxes.

The $307,000 increase in net income from the same quarter last year reflects a $1.2 million, or 10.4%, increase in interest and dividend income and a $588,000 decrease in provision for loan losses, offset by a $698,000, or 28.0%, increase in interest expense, a $565,000, or 6.4%, increase in noninterest expense, a $135,000, or 18.9%, decrease in noninterest income and a $99,000, or 52.7%, increase in provision for income taxes.

Net income for the nine months ended September 30, 2019 and 2018 was $2.3 million and $2.0 million, respectively. For the nine months ended September 30, 2019, net income reflects an increase of $3.9 million, or 11.6%, in interest and dividend income and a $871,000, or 84.2%, decrease in provision for loan losses, offset by a $2.4 million, or 35.5%, increase in interest expense, a $1.6 million, or 6.5%, increase in noninterest expense, a $344,000, or 55.2%, increase in provision for income taxes and a $104,000, or 4.9%, decrease in noninterest income.

Net Interest Margin

The net interest margin increased by 8 basis points to 3.83% for the three months ended September 30, 2019 from 3.75% for the three months ended June 30, 2019, while the net interest rate spread increased by 10 basis points to 3.44% from 3.34% for the same periods. Average interest-earning assets increased by $11.4 million, or 1.1%, to $1,010.9 million for the three months ended September 30, 2019 from $999.4 million for the three months ended June 30, 2019. The average yield on interest-earning assets increased by 10 basis points to 5.08% from 4.98%, for the same periods. Average interest-bearing liabilities increased by $19.1 million, or 2.5%, to $769.4 million for the three months ended September 30, 2019 from $750.3 million for the three months ended June 30, 2019. The average rate on interest-bearing liabilities was unchanged at 1.64% for both periods. 

The net interest margin decreased by 3 basis points to 3.83% for the three months ended September 30, 2019 from 3.86% for the three months ended September 30, 2018, while the net interest rate spread decreased by 5 basis points to 3.44% from 3.49% for the same periods. Average interest-earning assets increased by $59.7 million, or 6.3%, to $1,010.9 million for the three months ended September 30, 2019 from $951.2 million for the three months ended September 30, 2018. The average yield on interest-earning assets increased by 18 basis points to 5.08% from 4.90% for the same periods. Average interest-bearing liabilities increased by $65.3 million, or 9.3%, to $769.4 million for the three months ended September 30, 2019 from $704.1 million for the three months ended September 30, 2018. The average rate on interest-bearing liabilities increased by 24 basis points to 1.64% from 1.40% for the same periods.

Noninterest Income

Noninterest income decreased to $579,000 for the three months ended September 30, 2019, down $107,000, or 15.6%, from $686,000 for the three months ended June 30, 2019. The decrease was attributable to decreases of $112,000, or 42.7%, in late and prepayment charges related to mortgage loans and $26,000, or 15.1%, in other noninterest income offset by increases of $19,000, or 8.3%, in service charges and fees and $12,000, or 50.0%, in brokerage commissions.

Noninterest income decreased to $579,000 for the three months ended September 30, 2019, down $135,000, or 18.9%, from $714,000 for the three months ended September 30, 2018. The decrease was mainly attributable to decreases of $250,000, or 87.4%, in brokerage commissions and $26,000, or 15.1%, in other noninterest income offset by increases of $85,000, or 130.8%, in late and prepayment charges related to mortgage loans and $56,000, or 29.3%, in service charges and fees.

Noninterest Expense

Noninterest expense was $9.3 million for the three months ended September 30, 2019, up $627,000, or 7.2%, from $8.7 million for the three months ended June 30, 2019. The increase was mainly attributable to increases in professional fees of $223,000; occupancy and equipment of $211,000 as a result of prior quarter project completion expenses; compensation and benefits expense of $191,000 as a result of expenses related to new hires annual merit increase; insurance and surety bond premiums of $63,000; regulatory dues of $23,000 and office supplies, telephone and postage expenses of $10,000. The increase in noninterest expense was partially offset by decreases in other operating expenses of $57,000 mainly due to a credit from the Federal Deposit Insurance Corporation in the amount of $205,000 related to our FDIC deposit insurance assessment; and data processing expenses of $33,000.

Noninterest expense increased $565,000, or 6.4%, to $9.3 million for the three months ended September 30, 2019 from $8.8 million for the three months ended September 30, 2018. The increase was mainly attributable to increases in occupancy and equipment of $358,000 as a result of rebranding and branch renovation initiatives; compensation and benefits expense of $120,000 as a result of expenses related to restricted stock and stock options; other operating expenses of $90,000 as a result of increase in recruiting fees of $107,000 offset by a credit from the Federal Deposit Insurance Corporation in the amount of $205,000 related to our FDIC deposit insurance assessment; insurance and surety bond premiums of $59,000; and data processing expenses of $56,000 as a result of system enhancements and implementation charges related to software upgrades and additional products. The increase in noninterest expense was partially offset by decreases in direct loan expenses of $82,000; office supplies, telephone and postage expenses of $27,000 and professional fees of $22,000.

Asset Quality

Nonperforming assets increased to $10.3 million, or 0.94% of total assets, at September 30, 2019, from $10.1 million, or 0.96% of total assets, at June 30, 2019 and $6.6 million, or 0.67% of total assets, at September 30, 2018. The increase from June 30, 2019 is mainly attributable to an increase in nonaccrual, 1-4 family residential loans of $522,000.

There was a $14,000 provision for loan losses for the quarter ended September 30, 2019, compared to $0 for the quarter ended June 30, 2019 and $602,000 for the quarter ended September 30, 2018. The allowance for loan losses was $12.2 million, or 1.27% of total loans, at September 30, 2019, compared to $12.5 million, or 1.32% of total loans, at June 30, 2019 and $12.4 million, or 1.37% of total loans, at September 30, 2018. Net charge-offs totaled $372,000 for the quarter ended September 30, 2019, compared to net recoveries totaling $11,000 for the quarter ended June 30, 2019 and $13,000 for the quarter ended September 30, 2018.        

Balance Sheet

Total assets increased $40.1 million, or 3.8%, to $1,100.0 million at September 30, 2019 from $1,059.9 million at December 31, 2018. Net loans increased $30.0 million, or 3.3%, to $948.5 million at September 30, 2019 from $918.5 million at December 31, 2018. The increase in net loans was primarily due to increases of $18.6 million, or 21.2%, in construction and land loans, $3.9 million, or 1.0%, in 1-4 family residential and $12.1 million, or 5.2%, in multifamily residential loans, offset by a decrease of $4.7 million, or 29.7%, in business loans.

Steven A. Tsavaris, Executive Chairman remarked that, “while management remains optimistic about the loan production for the remainder of 2019, we are experiencing tough competition for refinancings accelerated by the decreasing interest rate environment." He also remarked that "loan originations remain close to the same levels as the previous year, but payoffs have increased as interest rates have declined."

Total deposits decreased $51.9 million, or 6.4%, to $757.8 million at September 30, 2019 from $809.8 million at December 31, 2018. The decrease in deposits was mainly attributable to decreases of $55.4 million, or 13.1 %, in certificates of deposit and $11.7 million, or 10.1% in demand deposits offset by an increase of $15.2 million, or 5.7%, in savings, NOW and money market accounts.

Total stockholders’ equity was $160.6 million at September 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 September 30, 2019. The Bank’s total capital to risk-weighted assets ratio was 19.29%, the tier 1 capital to risk-weighted assets ratio and the common equity tier 1 capital ratio were both 18.03%, and the tier 1 capital to total assets ratio was 13.62% at September 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 through September 24, 2019. Under the repurchase program, the Company could have repurchased up to 923,151 shares of its common stock, or approximately 5% of the outstanding shares, which are to be used primarily to fund the grants of restricted stock units and stock options made under the Company’s 2018 Long-Term Incentive Plan. Repurchased shares are held by the Company as Treasury shares until used to fund the restricted stock units and option grants. A total of 886,325 shares were repurchased under the program before it expired on September 24, 2019. During the quarter ended September 30, 2019, the Company repurchased 409,347 shares of the Company’s common stock.

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 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. The Bank also invests in securities, which 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 
 September 30,  June 30,  March 31,  December 31,  September 30, 
 2019  2019  2019  2018  2018 
ASSETS                   
Cash and due from banks:                   
Cash$6,425  $6,003  $5,690  $45,225  $5,494 
Interest-bearing deposits in banks 40,965   47,007   35,877   24,553   16,895 
Total cash and cash equivalents 47,390   53,010   41,567   69,778   22,389 
Available-for-sale securities, at fair value 51,966   22,154   22,166   27,144   24,177 
Loans receivable, net 948,548   934,236   925,099   918,509   893,884 
Accrued interest receivable 3,893   3,773   3,735   3,795   3,609 
Premises and equipment, net 32,805   32,205   31,777   31,135   29,293 
Other real estate owned    58          
Federal Home Loan Bank of New York stock (FHLBNY), at cost 8,659   4,609   2,915   2,915   2,621 
Deferred tax assets 3,925   3,913   3,852   3,811   4,118 
Other assets 2,802   2,158   2,485   2,814   2,620 
Total assets$1,099,988  $1,056,116  $1,033,596  $1,059,901  $982,711 
LIABILITIES AND STOCKHOLDERS' EQUITY                   
Liabilities:                   
Deposits$757,845  $802,408  $806,781  $809,758  $764,792 
Accrued interest payable 81   88   75   63   75 
Advance payments by borrowers for taxes and insurance 7,780   6,059   8,099   6,037   7,219 
Advances from the Federal Home Loan Bank of New York and others 169,404   79,404   44,404   69,404   37,775 
Other liabilities 4,324   2,954   3,975   5,467   5,706 
Total liabilities 939,434   890,913   863,334   890,729   815,567 
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 17,576,703 shares outstanding as of  September 30, 2019 and 18,463,028 shares issued and outstanding as of December 31,2018 185   185   185   185   185 
Treasury stock, at cost; 886,325 shares at September 30, 2019 and no shares as of December 31, 2018 (12,663)  (6,798)  (193)      
Additional paid-in-capital 85,750   85,357   84,976   84,581   84,557 
Retained earnings 101,140   100,431   99,481   98,813   96,896 
Accumulated other comprehensive loss (7,947)  (7,941)  (8,035)  (8,135)  (8,101)
Unearned compensation - ESOP; 591,062 shares as of September 30, 2019 and 627,251 shares  as of December 31, 2018 (5,911)  (6,031)  (6,152)  (6,272)  (6,393)
Total stockholders' equity 160,554   165,203   170,262   169,172   167,144 
Total liabilities and stockholders' equity$1,099,988  $1,056,116  $1,033,596  $1,059,901  $982,711 


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

 For the Quarters Ended 
 September 30,  June 30,  March 31,  December 31,  September 30, 
 2019  2019  2019  2018  2018 
Interest and dividend income:                   
Interest on loans receivable$12,663  $12,060  $12,095  $12,026  $11,483 
Interest on deposits due from banks 117   278   149   170   141 
Interest and dividend on available-for-sale securities and FHLBNY stock 173   76   138   130   113 
Total interest and dividend income 12,953   12,414   12,382   12,326   11,737 
Interest expense:                   
Interest on certificates of deposit 1,896   1,904   1,956   2,078   1,942 
Interest on other deposits 759   821   631   320   272 
Interest on borrowings 533   345   333   321   276 
Total interest expense 3,188   3,070   2,920   2,719   2,490 
Net interest income 9,765   9,344   9,462   9,607   9,247 
Provision for loan losses 14      149   215   602 
Net interest income after provision for loan losses 9,751   9,344   9,313   9,392   8,645 
Noninterest income:                   
Service charges and fees 247   228   230   217   191 
Brokerage commissions 36   24   109   108   286 
Late and prepayment charges 150   262   139   278   65 
Other 146   172   275   212   172 
Total noninterest income 579   686   753   815   714 
Noninterest expense:                   
Compensation and benefits 4,667   4,476   5,014   4,371   4,547 
Occupancy and equipment 1,943   1,732   1,911   1,879   1,585 
Data processing expenses 398   431   353   357   342 
Direct loan expenses 183   182   156   217   265 
Insurance and surety bond premiums 146   83   83   94   87 
Office supplies, telephone and postage 281   271   317   349   308 
Professional fees 956   733   510   1,025   978 
Marketing and promotional expenses 46   47   26   68   40 
Directors fees 69   73   83   69   69 
Regulatory dues 70   47   56   60   63 
Other operating expenses 575   632   582   585   485 
Total noninterest expense 9,334   8,707   9,091   9,074   8,769 
Income before income taxes 996   1,323   975   1,133   590 
Provision for income taxes 287   373   307   498   188 
Net income$709  $950  $668  $635  $402 
Earnings per share:                   
Basic$0.04  $0.05  $0.04  $0.04  $0.02 
Diluted$0.04  $0.05  $0.04  $0.04  $0.02 


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

 For the Nine Months Ended September 30, 
 2019  2018  Variance $  Variance % 
Interest and dividend income:               
Interest on loans receivable$36,818  $32,922  $3,896   11.83%
Interest on deposits due from banks 498   510   (12)  (2.35%)
Interest and dividend on available-for-sale securities and FHLBNY stock 433   399   34   8.52%
Total interest and dividend income 37,749   33,831   3,918   11.58%
Interest expense:               
Interest on certificates of deposit 5,756   5,539   217   3.92%
Interest on other deposits 2,211   655   1,556   237.56%
Interest on borrowings 1,211   578   633   109.52%
Total interest expense 9,178   6,772   2,406   35.53%
Net interest income 28,571   27,059   1,512   5.59%
Provision for loan losses 163   1,034   (871)  (84.24%)
Net interest income after provision for loan losses 28,408   26,025   2,383   9.16%
Noninterest income:               
Service charges and fees 705   627   78   12.44%
Brokerage commissions 169   424   (255)  (60.14%)
Late and prepayment charges 551   327   224   68.50%
Other 593   744   (151)  (20.30%)
Total noninterest income 2,018   2,122   (104)  (4.90%)
Noninterest expense:               
Compensation and benefits 14,157   13,466   691   5.13%
Occupancy and equipment 5,586   4,794   792   16.52%
Data processing expenses 1,182   1,050   132   12.57%
Direct loan expenses 521   572   (51)  (8.92%)
Insurance and surety bond premiums 312   275   37   13.45%
Office supplies, telephone and postage 869   960   (91)  (9.48%)
Professional fees 2,199   2,130   69   3.24%
Marketing and promotional expenses 119   147   (28)  (19.05%)
Directors fees 225   207   18   8.70%
Regulatory dues 173   177   (4)  (2.26%)
Other operating expenses 1,789   1,705   84   4.93%
Total noninterest expense 27,132   25,483   1,649   6.47%
Income before income taxes 3,294   2,664   630   23.65%
Provision for income taxes 967   623   344   55.22%
Net income$2,327  $2,041  $286   14.01%
Earnings per share:               
Basic$0.13  $0.11  N/A  N/A 
Diluted$0.13  $0.11  N/A  N/A 


PDL Community Bancorp and Subsidiaries
Key Metrics

 At or for the Quarters Ended 
 September 30,  June 30,  March 31,  December 31,  September 30, 
 2019  2019  2019  2018  2018 
Performance Ratios:                   
Return on average assets 0.27%  0.37%  0.26%  0.25%  0.16%
Return on average equity 1.71%  2.26%  1.59%  1.49%  0.95%
Net interest rate spread (1) 3.44%  3.34%  3.46%  3.52%  3.49%
Net interest margin (2) 3.83%  3.75%  3.86%  3.90%  3.86%
Noninterest expense to average assets 3.54%  3.38%  3.59%  3.57%  3.54%
Efficiency ratio (3) 90.24%  86.81%  89.00%  87.07%  88.03%
Average interest-earning assets to average interest- bearing liabilities 131.38%  133.20%  133.93%  134.30%  135.09%
Average equity to average assets 15.71%  16.27%  16.58%  16.69%  17.06%
Capital Ratios:                   
Total capital to risk weighted assets (bank only) 19.29%  19.54%  19.32%  19.39%  19.60%
Tier 1 capital to risk weighted assets (bank only) 18.03%  18.29%  18.06%  18.14%  18.35%
Common equity Tier 1 capital to risk-weighted assets (bank only) 18.03%  18.29%  18.06%  18.14%  18.35%
Tier 1 capital to average assets (bank only) 13.62%  13.64%  13.56%  13.66%  13.78%
Asset Quality Ratios:                   
Allowance for loan losses as a percentage of total loans 1.27%  1.32%  1.33%  1.36%  1.37%
Allowance for loan losses as a percentage of nonperforming loans 117.72%  123.50%  155.87%  186.77%  (186.74%)
Net (charge-offs) recoveries to average outstanding loans (0.15%)  0.00%  (0.16%)  0.03%  0.00%
Non-performing loans as a percentage of total loans 1.09%  1.08%  0.86%  0.73%  0.73%
Non-performing loans as a percentage of total assets 0.94%  0.96%  0.77%  0.64%  0.67%
Total non-performing assets as a percentage of total assets 0.94%  0.96%  0.77%  0.64%  0.67%
Total non-performing assets, accruing loans past due 90 days or more,  and accruing troubled debt restructured loans as a percentage of total assets 1.73%  1.82%  1.74%  1.63%  1.79%
Other:                   
Number of offices14  14  14  14  14 
Number of full-time equivalent employees187  183  185  181  175 

(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 
 September 30,  June 30,  March 31,  December 31,  September 30, 
 2019  2019  2019  2018  2018 
 Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent 
 (Dollars in thousands) 
Mortgage loans:                                  
1-4 family residential                                  
Investor Owned$309,065  32.23% $302,428  32.00% $304,650  32.55% $303,197  32.61% $295,792  32.69%
Owner-Occupied 90,843  9.47%  92,904  9.83%  95,449  10.20%  92,788  9.98%  95,464  10.55%
Multifamily residential 244,644  25.51%  238,974  25.28%  234,749  25.09%  232,509  25.01%  219,958  24.31%
Nonresidential properties 195,952  20.44%  197,367  20.88%  199,903  21.36%  196,917  21.18%  191,603  21.17%
Construction and land 106,124  11.07%  100,995  10.69%  84,844  9.07%  87,572  9.42%  85,293  9.42%
Total mortgage loans 946,628  98.72%  932,668  98.68%  919,595  98.27%  912,983  98.20%  888,110  98.14%
Nonmortgage loans:                                  
Business loans 11,040  1.15%  11,373  1.20%  15,101  1.61%  15,710  1.69%  15,832  1.75%
Consumer loans 1,252  0.13%  1,151  0.12%  1,125  0.12%  1,068  0.11%  992  0.11%
Total nonmortgage loans 12,292  1.28%  12,524  1.32%  16,226  1.73%  16,778  1.80%  16,824  1.86%
Total loans 958,920  100.00%  945,192  100.00%  935,821  100.00%  929,761  100.00%  904,934  100.00%
                                   
Net deferred loan origination costs 1,788      1,562      1,727      1,407      1,316    
Allowance for losses on loans (12,160)     (12,518)     (12,449)     (12,659)     (12,366)   
                                   
Loans, net$948,548     $934,236     $925,099     $918,509     $893,884    


PDL Community Bancorp and Subsidiaries

Nonperforming Assets

 For the Quarters Ended 
 September 30,  June 30,  March 31,  December 31,  September 30, 
 2019  2019  2019  2018  2018 
 (Dollars in thousands) 
Nonaccrual loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$1,281  $1,299  $1,284  $205  $206 
Owner occupied 1,052   479   933   1,092   1,098 
Multifamily residential    7   13   16    
Nonresidential properties 3,099   3,288   531   706   544 
Construction and land 1,292   1,327   1,341   1,115   1,103 
Nonmortgage loans:                   
Business       275       
Consumer    2   4       
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)$6,724  $6,402  $4,381  $3,134  $2,951 
                    
Non-accruing troubled debt restructured loans:                   
Mortgage loans:                   
1-4 family residential                   
Investor owned$471  $493  $1,023  $1,053  $1,076 
Owner occupied 2,488   2,499   1,972   1,987   1,990 
Multifamily residential              
Nonresidential properties 647   742   611   604   605 
Construction and land              
Nonmortgage loans:                   
Business              
Consumer              
Total non-accruing troubled debt restructured loans 3,606   3,734   3,606   3,644   3,671 
Total nonaccrual loans$10,330  $10,136  $7,987  $6,778  $6,622 
                    
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$10,330  $10,136  $7,987  $6,778  $6,622 
                    
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$5,226  $5,267  $5,157  $5,192  $5,224 
Owner occupied 2,114   2,493   3,415   3,456   3,882 
Multifamily residential              
Nonresidential properties 1,317   1,330   1,428   1,438   1,449 
Construction and land              
Nonmortgage loans:                   
Business 35   37   40   374   398 
Consumer              
Total accruing troubled debt restructured loans$8,692  $9,127  $10,040  $10,460  $10,953 
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans$19,022  $19,263  $18,027  $17,238  $17,575 
Total nonperforming loans to total loans 1.09%  1.08%  0.86%  0.73%  0.73%
Total nonperforming assets to total assets 0.94%  0.96%  0.77%  0.64%  0.67%
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets 1.73%  1.82%  1.74%  1.63%  1.79%


PDL Community Bancorp and Subsidiaries

Average Balance Sheets

  For the Three Months Ended September 30,
 2019 2018
 Average       Average      
 Outstanding    Average Outstanding    Average
 Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1)
 (Dollars in thousands)   
Interest-earning assets:                 
Loans$957,987 $12,663 5.24% $890,063 $11,483 5.12%
Available-for-sale securities 22,415  81 1.43%  25,330  89 1.39%
Other (2) 30,460  209 2.72%  35,792  165 1.83%
Total interest-earning assets 1,010,862  12,953 5.08%  951,185  11,737 4.90%
Non-interest-earning assets 35,840        32,634      
Total assets$1,046,702       $983,819      
Interest-bearing liabilities:                 
NOW/IOLA$28,183 $35 0.49% $27,523 $25 0.36%
Money market 144,666  685 1.88%   64,625  199 1.22%
Savings 118,308  38 0.13%   126,329  47 0.15%
Certificates of deposit 379,915  1,896 1.98%   435,159  1,942 1.77%
Total deposits 671,072  2,654 1.57%   653,636  2,213 1.34%
Advance payments by borrowers 7,991  1 0.05%   7,409  1 0.05%
Borrowings 90,361  533 2.34%   43,057  276 2.54%
Total interest-bearing liabilities 769,424  3,188 1.64%   704,102  2,490 1.40%
Non-interest-bearing liabilities:                 
Non-interest-bearing demand 109,491       105,376     
Other non-interest-bearing liabilities 3,402       6,456     
Total non-interest-bearing liabilities 112,893       111,832     
Total liabilities 882,317  3,188     815,934  2,490   
Total equity 164,385        167,885      
Total liabilities and total equity$1,046,702    1.64%  $983,819    1.40%
Net interest income   $9,765       $9,247   
Net interest rate spread (3)      3.44%        3.49%
Net interest-earning assets (4)$241,438       $247,083      
Net interest margin (5)      3.83%        3.86%
Average interest-earning assets to interest-bearing liabilities      131.38%        135.09%

(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 Nine Months Ended September 30, 
 2019  2018 
 Average    Average  Average    Average 
 Outstanding    Yield/Rate  Outstanding    Yield/Rate 
 Balance Interest (1)  Balance Interest (1) 
 (Dollars in thousands) 
Interest-earning assets:                 
Loans$940,971 $36,818 5.23% $850,316 $32,922 5.18%
Available-for-sale securities 22,772  244 1.43%  27,417  299 1.46%
Other (2) 37,551  687 2.45%  45,113  610 1.81%
Total interest-earning assets 1,001,294  37,749 5.04%  922,846  33,831 4.90%
Non-interest-earning assets 35,142        33,815      
Total assets$1,036,436       $956,661      
Interest-bearing liabilities:                 
NOW/IOLA$27,298 $86 0.42% $27,955 $75 0.36%
Money market 124,263  2,004 2.16%  56,694  451 1.06%
Savings 120,748  118 0.13%  125,643  126 0.13%
Certificates of deposit 408,241  5,756 1.89%  438,121  5,539 1.69%
Total deposits 680,550  7,964 1.56%  648,413  6,191 1.28%
Advance payments by borrowers 8,423  3 0.05%  7,345  3 0.05%
Borrowings 64,947  1,211 2.49%  30,030  578 2.57%
Total interest-bearing liabilities 753,920  9,178 1.63%  685,788  6,772 1.32%
Non-interest-bearing liabilities:                 
Non-interest-bearing demand 110,730       98,247     
Other non-interest-bearing liabilities 4,087       5,555     
Total non-interest-bearing liabilities 114,817       103,802     
Total liabilities 868,737  9,178     789,590  6,772   
Total equity 167,699        167,071      
Total liabilities and total equity$1,036,436    1.63% $956,661    1.32%
Net interest income   $28,571       $27,059   
Net interest rate spread (3)      3.41%       3.58%
Net interest-earning assets (4)$247,374       $237,058      
Net interest margin (5)      3.81%       3.92%
Average interest-earning assets to interest-bearing liabilities      132.81%       134.57%

(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