PDL Community Bancorp Announces 2021 First Quarter Results

April 30, 2021

NEW YORK, April 30, 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 $2.5 million, or $0.15 per basic and diluted share, for the first quarter of 2021, compared to net income of $1.6 million, or $0.10 per basic and diluted share, for the prior quarter and a net loss of ($1.2 million), or ($0.07) per basic and diluted share, for the first quarter of 2020.

First Quarter Highlights

Net interest income of $12.9 million for the current quarter increased $1.2 million, or 10.4% from prior quarter and increased $3.0 million, or 29.9% from same quarter last year.
Income before income taxes of $3.2 million for the current quarter increased $1.1 million, or 50.8% from prior quarter and increased $4.6 million, or 323.9% from same quarter last year.
Cost of interest-bearing deposits was 0.77% for the current quarter, a decrease from 0.94% from the prior quarter and 1.48% from same quarter last year.
The net interest margin was 4.00% for the current quarter, an increase from 3.78% for the prior quarter and 3.87% from same quarter last year.
The net interest rate spread was 3.76% for the current quarter, an increase from 3.50% for the prior quarter and 3.51% from same quarter last year.
The efficiency ratio was 76.94% for the current quarter compared to 84.71% for the prior quarter and 102.62% from same quarter last year.
Non-performing loans of $12.3 million increased $2.6 million year-over-year and equates to 0.99% of total loans receivable as of March 31, 2021.
Net loans receivable were $1.23 billion at March 31, 2021, an increase of $71.8 million, or 6.2%, from December 31, 2020.
Deposits were $1.14 billion at March 31, 2021, an increase of $109.0 million, or 10.6%, from December 31, 2020.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, the Company’s President and CEO, noted “This is a great start for the new year and reflects our executing well on all fronts. We significantly grew our deposit base while lowering our cost of funds; our loan portfolio continued to expand while improving our net interest margin. We continue investing in GPS, our Sales Force initiative, while lowering our operating expenses and increasing profitability. In addition, Mortgage World is contributing nicely to our product and income diversification. Importantly, these accomplishments could not have happened without the dedication and commitment of our expanding Ponce Family to each other, our values and our stakeholders. We are now poised to benefit from the rediscovery of the important role MDIs and CDFIs like us have 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 “Our focus on building stakeholder value during 2021 is reflected in our Company’s nine-month payback of its $1.8 million acquisition of Mortgage World, the repurchase of 107,717 common shares during the first quarter of 2021, the renovation of four more branches and contributing to the stabilization of our communities with $132.5 million in PPP loans to over 1,700 small businesses.

Loan Payment Deferrals

Through March 31, 2021, 406 loans aggregating $376.1 million had received forbearance primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months. Of those 406 loans, 337 loans aggregating $303.6 million are no longer in deferment and continue performing pursuant to their terms and 69 loans in the amount of $72.4 million remained in deferment and are in renewed forbearance. 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 initial and extended forbearances are short-term modifications made on a good faith basis in response to the COVID-19 pandemic and in furtherance of governmental policies.

Results of Operations Summary

Net income for the three months ended March 31, 2021 was $2.5 million, compared to $1.6 million of net income for the three months ended December 31, 2020 and a ($1.2 million) net loss for the three months ended March 31, 2020. The change from the three months ended March 31, 2020 is primarily due to a $3.3 million increase in non-interest income, a $3.0 million increase in net interest income, a decrease of $460,000 in provision for loan losses, offset by a $2.1 million increase in non-interest expense and a $941,000 increase in provision for income taxes.

Net interest income for the three months ended March 31, 2021 was $12.9 million, an increase of $1.2 million, or 10.4%, from the three months ended December 31, 2020 and an increase of $3.0 million, or 29.9%, from the three months ended March 31, 2020.

Net interest margin was 4.00% for the three months ended March 31, 2021, an increase of 22 basis points from 3.78% for the three months ended December 31, 2020 and an increase of 13 basis points from 3.87% for the three months ended March 31, 2020.

Net interest rate spread increased by 25 basis points to 3.76% for the three months ended March 31, 2021 from 3.51% for the three months ended March 31, 2020. The increase in the net interest rate spread was primarily due to a decrease in the average rates on interest-bearing liabilities of 62 basis points to 0.94% for the three months ended March 31, 2020 from 1.56% for the three months ended March 31, 2020 offset by a decrease on the average yield on interest-earning assets of 37 basis points to 4.70% for the three months ended March 31, 2021 from 5.07% for the three months ended March 31, 2020.

Non-interest income decreased $906,000 to $3.9 million for the three months ended March 31, 2021 from $4.8 million for the three months ended December 31, 2020 and increased $3.3 million from $622,000 for the three months ended March 31, 2020. The decrease in non-interest income for the three months ended March 31, 2021 compared to the three months ended December 31, 2020 was primarily due to a $1.2 million decrease on income from the sale of mortgage loans, a $232,000 decrease in brokerage commissions, and a decrease of $209,000 in other non-interest income, offset by a non-recurring $663,000 gain, net of expenses, on the sale of real property recognized in the first quarter of 2021 and an increase of $163,000 in late and prepayment charges. The increase in non-interest income for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 was due to $1.5 million in income on sale of mortgage loans attributable to Mortgage World operations, a non-recurring $663,000 gain, net of expenses, on the sale of real property recognized in the first quarter of 2021 and an increase of $539,000 in loan origination fees.

Non-interest expense decreased $1.0 million, or 7.5%, to $12.9 million for the three months ended March 31, 2021, compared to $14.0 million for the three months ended December 31, 2020 and increased $2.1 million, or 19.3% from $10.8 million for the three months ended March 31, 2020. The decrease in non-interest expense for the three months ended March 31, 2021, compared to the three months ended December 31, 2020 was attributable to decreases of $1.2 million in compensation and benefits and $271,000 in professional fees, offset by an increase of $410,000 in direct loan expenses. The increase in non-interest expense for the three months ended March 31, 2021, compared to the three months ended March 31, 2020 primarily reflects Mortgage World operations and was attributable to increases of $797,000 in direct loan expenses, $656,000 in compensation and benefits, $617,000 in occupancy and equipment, $325,000 in other non-interest expense and $127,000 in data processing expenses, offset by decreases of $365,000 in professional fees and $196,000 in marketing and promotional expenses.

Balance Sheet Summary

Total assets increased $78.5 million, or 5.8%, to $1.43 billion at March 31, 2021 from $1.36 billion at December 31, 2020. The increase in total assets is attributable to increases in net loans receivable of $71.8 million, including $57.7 million in PPP loans, cash and cash equivalents of $18.0 million, available-for-sale securities of $13.4 million, premises and equipment, net, of $1.6 million and accrued interest receivable of $1.2 million. The increase in total assets was reduced by decreases in mortgage loans held for sale, at fair value, of $21.7 million, other assets of $5.4 million, FHLBNY stock of $369,000 and deferred taxes of $87,000.

Total liabilities increased $76.8 million, or 6.4%, to $1.27 billion at March 31, 2021 from $1.20 billion at December 31, 2020. The increase in total liabilities was mainly attributable to increases of $109.0 million in deposits and $2.2 million in advance payments by borrowers for taxes and insurance. The increase in total liabilities was offset by decreases of $18.3 million in warehouse lines of credit, $8.0 million in advances from FHLBNY, $7.3 million in other liabilities and $807,000 in mortgage loan fundings payable.

Total stockholders’ equity increased $1.7 million, or 1.0%, to $161.2 million at March 31, 2021 from $159.5 million at December 31, 2020. The $1.7 million increase in stockholders’ equity was mainly attributable to $2.5 million in net income, $352,000 related to restricted stock units and stock options, $134,000 related to the Company’s Employee Stock Ownership Plan, offset by $1.2 million in stock repurchases and $107,000 related to unrealized loss on available-for-sale securities.

As of March 31, 2021, the Company had repurchased a total of 1,631,570 shares under the repurchase programs at a weighted average price of $13.27 per share, of which 1,444,776 were reported as treasury stock. Of the 1,631,570 shares repurchased, a total of 186,960 shares have been used for grants given 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. Of these 186,960 shares, 166 shares were retained to satisfy a recipient’s taxes and other withholding obligations and these shares remain as part of treasury stock.

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 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. 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 novel coronavirus pandemic and the Company’s attempts at mitigation; changes in the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the 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
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
ASSETS
Cash and due from banks:
Cash	$	13,551		$	26,936		$	14,302		$	15,875		$	13,165
Interest-bearing deposits in banks		76,571			45,142			61,790			60,756			90,795
Total cash and cash equivalents		90,122			72,078			76,092			76,631			103,960
Available-for-sale securities, at fair value		30,929			17,498			14,512			13,800			19,140
Held-to-maturity securities, at amortized cost		1,732			1,743			—			—			—
Placement with banks		2,739			2,739			2,739			—			—
Mortgage loans held for sale, at fair value		13,725			35,406			13,100			1,030			1,030
Loans receivable, net		1,230,458			1,158,640			1,108,956			1,072,417			972,979
Accrued interest receivable		12,547			11,396			9,995			7,677			4,198
Premises and equipment, net		33,625			32,045			32,113			32,102			32,480
Federal Home Loan Bank of New York stock (FHLBNY), at cost		6,057			6,426			6,414			6,422			7,889
Deferred tax assets		4,569			4,656			3,586			4,328			4,140
Other assets		7,204			12,604			9,844			5,824			5,127
Total assets	$	1,433,707		$	1,355,231		$	1,277,351		$	1,220,231		$	1,150,943
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	1,138,546		$	1,029,579		$	973,244		$	936,219		$	829,741
Accrued interest payable		66			60			58			48			86
Advance payments by borrowers for taxes and insurance		9,264			7,019			7,739			6,007			8,295
Advances from the Federal Home Loan Bank of New York and others		109,255			117,255			117,283			117,284			152,284
Warehouse lines of credit		11,664			29,961			9,065			—			—
Mortgage loan fundings payable		676			1,483			1,457			—			—
Other liabilities		3,032			10,330			10,131			5,674			4,794
Total liabilities		1,272,503			1,195,687			1,118,977			1,065,232			995,200
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		(19,285	)		(18,114	)		(18,281	)		(17,172	)		(16,490	)
Additional paid-in-capital		85,470			85,105			85,817			85,481			85,132
Retained earnings		99,993			97,541			95,913			91,904			92,475
Accumulated other comprehensive income		28			135			168			150			110
Unearned compensation ─ ESOP		(5,187	)		(5,308	)		(5,428	)		(5,549	)		(5,669	)
Total stockholders' equity		161,204			159,544			158,374			154,999			155,743
Total liabilities and stockholders' equity	$	1,433,707		$	1,355,231		$	1,277,351		$	1,220,231		$	1,150,943

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

	Three Months Ended
	March 31,		December 31,		September 30,		June 30,			March 31,
	2021		2020		2020		2020			2020

	(Dollars in thousands, except share and per share data)
Interest and dividend income:
Interest on loans receivable	$	14,925	$	14,070	$	13,375	$	12,162		$	12,782
Interest on deposits due from banks		2		10		5		3			66
Interest and dividend on securities and FHLBNY stock		250		233		223		228			182
Total interest and dividend income		15,177		14,313		13,603		12,393			13,030
Interest expense:
Interest on certificates of deposit		1,219		1,422		1,597		1,730			1,827
Interest on other deposits		382		448		500		534			692
Interest on borrowings		684		769		655		608			587
Total interest expense		2,285		2,639		2,752		2,872			3,106
Net interest income		12,892		11,674		10,851		9,521			9,924
Provision for loan losses		686		406		620		271			1,146
Net interest income after provision for loan losses		12,206		11,268		10,231		9,250			8,778
Non-interest income:
Service charges and fees		329		263		236		145			248
Brokerage commissions		223		455		447		22			50
Late and prepayment charges		244		81		145		13			119
Income on sale of mortgage loans		1,508		2,748		1,372		—			—
Loan origination		539		656		269		—			—
Gain on sale of real property		663		—		4,412		—			—
Other		387		596		371		394			205
Total non-interest income		3,893		4,799		7,252		574			622
Non-interest expense:
Compensation and benefits		5,664		6,846		5,554		4,645			5,008
Occupancy and equipment		2,634		2,686		2,584		2,277			2,017
Data processing expenses		594		578		596		496			467
Direct loan expenses		1,009		599		437		199			212
Insurance and surety bond premiums		146		166		138		128			121
Office supplies, telephone and postage		409		385		386		312			316
Professional fees		1,262		1,533		1,553		1,336			1,627
Marketing and promotional expenses		38		—		127		145			234
Directors fees		69		69		69		69			69
Regulatory dues		60		59		49		56			46
Other operating expenses		1,030		1,034		834		772			705
Total non-interest expense		12,915		13,955		12,327		10,435			10,822
Income (loss) before income taxes		3,184		2,112		5,156		(611	)		(1,422	)
Provision (benefit) for income taxes		732		484		1,147		(40	)		(209	)
Net income (loss)	$	2,452	$	1,628	$	4,009	$	(571	)	$	(1,213	)
Earnings (loss) per share:
Basic	$	0.15	$	0.10	$	0.24	$	(0.03	)	$	(0.07	)
Diluted	$	0.15	$	0.10	$	0.24	$	(0.03	)	$	(0.07	)
Weighted average shares outstanding:
Basic		16,548,196		16,558,576		16,612,205		16,723,449			16,800,538
Diluted		16,548,196		16,558,576		16,612,205		16,723,449			16,800,538

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

	Three Months Ended March 31,
	2021		2020			Variance $			Variance %

	(Dollars in thousands, except share and per share data)
Interest and dividend income:
Interest on loans receivable	$	14,925	$	12,782		$	2,143			16.77	%
Interest on deposits due from banks		2		66			(64	)		(96.97	%)
Interest and dividend on securities and FHLBNY stock		250		182			68			37.36	%
Total interest and dividend income		15,177		13,030			2,147			16.48	%
Interest expense:
Interest on certificates of deposit		1,219		1,827			(608	)		(33.28	%)
Interest on other deposits		382		692			(310	)		(44.80	%)
Interest on borrowings		684		587			97			16.52	%
Total interest expense		2,285		3,106			(821	)		(26.43	%)
Net interest income		12,892		9,924			2,968			29.91	%
Provision for loan losses		686		1,146			(460	)		(40.14	%)
Net interest income after provision for loan losses		12,206		8,778			3,428			39.05	%
Non-interest income:
Service charges and fees		329		248			81			32.66	%
Brokerage commissions		223		50			173			346.00	%
Late and prepayment charges		244		119			125			105.04	%
Income on sale of mortgage loans		1,508		—			1,508			—	%
Loan origination		539		—			539			—	%
Gain on sale of real property		663		—			663			—	%
Other		387		205			182			88.78	%
Total non-interest income		3,893		622			3,271			525.88	%
Non-interest expense:
Compensation and benefits		5,664		5,008			656			13.10	%
Occupancy and equipment		2,634		2,017			617			30.59	%
Data processing expenses		594		467			127			27.19	%
Direct loan expenses		1,009		212			797			375.94	%
Insurance and surety bond premiums		146		121			25			20.66	%
Office supplies, telephone and postage		409		316			93			29.43	%
Professional fees		1,262		1,627			(365	)		(22.43	%)
Marketing and promotional expenses		38		234			(196	)		(83.76	%)
Directors fees		69		69			—			—	%
Regulatory dues		60		46			14			30.43	%
Other operating expenses		1,030		705			325			46.10	%
Total non-interest expense		12,915		10,822			2,093			19.34	%
Income (loss) before income taxes		3,184		(1,422	)		4,606			323.91	%
Provision (benefit) for income taxes		732		(209	)		941			450.24	%
Net income (loss)	$	2,452	$	(1,213	)	$	3,665			302.14	%
Earnings (loss) per share:
Basic	$	0.15	$	(0.07	)	N/A			N/A
Diluted	$	0.15	$	(0.07	)	N/A			N/A
Weighted average shares outstanding:
Basic		16,548,196		16,800,538		N/A			N/A
Diluted		16,548,196		16,800,538		N/A			N/A

PDL Community Bancorp and Subsidiaries
Key Metrics

	At or for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
Performance Ratios:
Return on average assets (1)		0.72	%		0.50	%		1.28	%		(0.20	%)		(0.46	%)
Return on average equity (1)		6.16	%		4.03	%		9.95	%		(1.47	%)		(3.07	%)
Net interest rate spread (1) (2)		3.76	%		3.50	%		3.33	%		3.13	%		3.51	%
Net interest margin (1) (3)		4.00	%		3.78	%		3.65	%		3.45	%		3.87	%
Non-interest expense to average assets (1)		3.82	%		4.29	%		3.95	%		3.57	%		4.07	%
Efficiency ratio (4)		76.94	%		84.71	%		68.09	%		103.37	%		102.62	%
Average interest-earning assets to average interest- bearing liabilities		133.25	%		132.04	%		134.35	%		130.72	%		129.16	%
Average equity to average assets		11.77	%		12.44	%		12.90	%		13.30	%		14.85	%
Capital Ratios:
Total capital to risk weighted assets (bank only)		15.80	%		15.95	%		16.93	%		17.52	%		17.84	%
Tier 1 capital to risk weighted assets (bank only)		14.54	%		14.70	%		15.68	%		16.26	%		16.59	%
Common equity Tier 1 capital to risk-weighted assets (bank only)		14.54	%		14.70	%		15.68	%		16.26	%		16.59	%
Tier 1 capital to average assets (bank only)		10.78	%		11.19	%		11.46	%		11.63	%		12.76	%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans		1.24	%		1.27	%		1.28	%		1.27	%		1.37	%
Allowance for loan losses as a percentage of nonperforming loans		126.07	%		127.28	%		131.00	%		118.89	%		138.47	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.02	%)		0.03	%		0.00	%		0.01	%		0.00	%
Non-performing loans as a percentage of total gross loans		0.99	%		1.00	%		0.98	%		1.08	%		1.00	%
Non-performing loans as a percentage of total assets		0.86	%		0.86	%		0.86	%		0.95	%		0.85	%
Total non-performing assets as a percentage of total assets		0.86	%		0.86	%		0.86	%		0.95	%		0.85	%
Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets		1.32	%		1.35	%		1.36	%		1.51	%		1.49	%
Other:
Number of offices (5)	20			20			20			14			14
Number of full-time equivalent employees (6)	236			227			230			179			184

(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 at March 31, 2021 included 6 offices due to acquisition of Mortgage World.
(6) Number of full-time equivalent employees at March 31, 2021 included 46 full-time equivalent employees related to Mortgage World.

PDL Community Bancorp and Subsidiaries
Loan Portfolio

	As of
	March 31,						December 31,						September 30,						June 30,						March 31,
	2021						2020						2020						2020						2020
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent

	(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned	$	317,895			25.51	%	$	319,596			27.27	%	$	320,438			28.55	%	$	317,055			29.25	%	$	308,206			31.31	%
Owner-Occupied		99,985			8.02	%		98,795			8.43	%		93,340			8.31	%		91,345			8.43	%		93,887			9.54	%
Multifamily residential		315,078			25.28	%		307,411			26.23	%		284,775			25.37	%		274,641			25.34	%		259,326			26.35	%
Nonresidential properties		215,340			17.28	%		218,929			18.68	%		217,771			19.40	%		209,068			19.29	%		210,225			21.36	%
Construction and land		119,339			9.57	%		105,858			9.03	%		99,721			8.88	%		96,841			8.93	%		100,202			10.18	%
Total mortgage loans		1,067,637			85.66	%		1,050,589			89.64	%		1,016,045			90.52	%		988,950			91.24	%		971,846			98.74	%
Non-mortgage loans:
Business loans (1)		142,135			11.40	%		94,947			8.10	%		96,700			8.61	%		93,394			8.62	%		11,183			1.13	%
Consumer loans (2)		36,706			2.94	%		26,517			2.26	%		9,806			0.87	%		1,578			0.14	%		1,288			0.13	%
Total non-mortgage loans		178,841			14.34	%		121,464			10.36	%		106,506			9.48	%		94,972			8.76	%		12,471			1.26	%
Total loans, gross		1,246,478			100.00	%		1,172,053			100.00	%		1,122,551			100.00	%		1,083,922			100.00	%		984,317			100.00	%

Net deferred loan origination costs		(512	)					1,457						786						2,256						2,146
Allowance for losses on loans		(15,508	)					(14,870	)					(14,381	)					(13,761	)					(13,484	)

Loans, net	$	1,230,458					$	1,158,640					$	1,108,956					$	1,072,417					$	972,979

(1) As of March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, business loans include $132.5 million, $85.3 million, $86.2 million and $83.6 million, respectively, of PPP loans.
(2) As of March 31, 2021, December 31, 2020 and September 30, 2020, consumer loans include $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
	March 31,					December 31,					September 30,					June 30,					March 31,
	2021					2020					2020					2020					2020
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent

	(Dollars in thousands)
Demand⁽¹⁾	$	242,255		21.28	%	$	189,855		18.44	%	$	186,328		19.15	%	$	192,429		20.55	%	$	110,801		13.35	%
Interest-bearing deposits:
NOW/IOLA accounts		32,235		2.83	%		39,296		3.82	%		29,618		3.04	%		26,477		2.83	%		31,586		3.81	%
Money market accounts		157,271		13.81	%		136,258		13.23	%		148,877		15.30	%		125,631		13.42	%		121,629		14.66	%
Reciprocal deposits		137,402		12.07	%		131,363		12.76	%		108,367		11.13	%		96,915		10.35	%		62,384		7.52	%
Savings accounts		130,211		11.44	%		125,820		12.22	%		120,883		12.42	%		119,277		12.74	%		112,318		13.53	%
Total NOW, money market, reciprocal and savings accounts		457,119		40.15	%		432,737		42.03	%		407,745		41.89	%		368,300		39.34	%		327,917		39.52	%
Certificates of deposit of $250K or more		77,418		6.80	%		78,435		7.62	%		80,403		8.26	%		81,786		8.74	%		81,486		9.82	%
Brokered certificates of deposit		86,004		7.55	%		52,678		5.12	%		55,878		5.74	%		55,878		5.97	%		51,661		6.23	%
Listing service deposits ⁽²⁾		61,133		5.37	%		39,476		3.83	%		49,342		5.07	%		54,370		5.81	%		55,842		6.73	%
All other certificates of deposit less than $250K		214,617		18.85	%		236,398		22.96	%		193,548		19.89	%		183,456		19.59	%		202,034		24.35	%
Total certificates of deposit		439,172		38.57	%		406,987		39.53	%		379,171		38.96	%		375,490		40.11	%		391,023		47.13	%
Total interest-bearing deposits		896,291		78.72	%		839,724		81.56	%		786,916		80.85	%		743,790		79.45	%		718,940		86.65	%
Total deposits	$	1,138,546		100.00	%	$	1,029,579		100.00	%	$	973,244		100.00	%	$	936,219		100.00	%	$	829,741		100.00	%

(1) As of March 31, 2021, December 31, September 30, 2020 and June 30, 2020, included in demand deposits are deposits related to net PPP funding.
(2) As of March 31, 2021, there were $28.8 million in individual listing service deposits amounting to $250,000 or more.

PDL Community Bancorp and Subsidiaries
Nonperforming Assets

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020

	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	2,907		$	2,808		$	2,750		$	2,767		$	2,327
Owner occupied		1,585			1,053			1,075			1,327			1,069
Multifamily residential		946			946			210			—			—
Nonresidential properties		3,761			3,776			3,830			4,355			3,228
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing troubled debt restructured loans)	$	9,199		$	8,583		$	7,865		$	8,449		$	6,624

Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned	$	246		$	249		$	267		$	272		$	276
Owner occupied		2,195			2,197			2,191			2,198			2,185
Multifamily residential		—			—			—			—			—
Nonresidential properties		661			654			655			656			653
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing troubled debt restructured loans		3,102			3,100			3,113			3,126			3,114
Total non-accrual loans	$	12,301		$	11,683		$	10,978		$	11,575		$	9,738
Total non-performing assets	$	12,301		$	11,683		$	10,978		$	11,575		$	9,738

Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned	$	3,362		$	3,378		$	3,396		$	3,730		$	3,730
Owner occupied		2,466			2,505			2,177			2,348			2,359
Multifamily residential		—			—			—			—			—
Nonresidential properties		750			754			759			762			1,300
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total accruing troubled debt restructured loans	$	6,578		$	6,637		$	6,332		$	6,840		$	7,389
Total non-performing assets and accruing troubled debt restructured loans	$	18,879		$	18,320		$	17,310		$	18,415		$	17,127
Total non-performing loans to total gross loans		0.99	%		1.00	%		0.98	%		1.08	%		1.00	%
Total non-performing assets to total assets		0.86	%		0.86	%		0.86	%		0.95	%		0.85	%
Total non-performing assets and accruing troubled debt restructured loans to total assets		1.32	%		1.35	%		1.36	%		1.51	%		1.49	%

PDL Community Bancorp and Subsidiaries
Average Balance Sheets

	For the Three Months Ended March 31,
	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)	$	1,239,127	$	14,925	4.88	%	$	975,499	$	12,782	5.27	%
Securities (3)		22,516		176	3.17	%		18,218		83	1.83	%
Other (4)		46,581		76	0.66	%		38,220		165	1.73	%
Total interest-earning assets		1,308,224		15,177	4.70	%		1,031,937		13,030	5.07	%
Non-interest-earning assets		63,951						37,467
Total assets	$	1,372,175					$	1,069,404
Interest-bearing liabilities:
NOW/IOLA	$	33,085	$	38	0.47	%	$	29,026	$	38	0.53	%
Money market		277,104		304	0.44	%		160,471		618	1.54	%
Savings		126,961		39	0.12	%		113,710		35	0.12	%
Certificates of deposit		405,980		1,219	1.22	%		379,154		1,827	1.93	%
Total deposits		843,130		1,600	0.77	%		682,361		2,518	1.48	%
Advance payments by borrowers		8,899		1	0.05	%		7,980		1	0.05	%
Borrowings		129,755		684	2.14	%		108,640		587	2.17	%
Total interest-bearing liabilities		981,784		2,285	0.94	%		798,981		3,106	1.56	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		215,116		—				108,646		—
Other non-interest-bearing liabilities		13,754		—				2,968		—
Total non-interest-bearing liabilities		228,870		—				111,614		—
Total liabilities		1,210,654		2,285				910,595		3,106
Total equity		161,521						158,809
Total liabilities and total equity	$	1,372,175			0.94	%	$	1,069,404			1.56	%
Net interest income			$	12,892					$	9,924
Net interest rate spread (5)					3.76	%					3.51	%
Net interest-earning assets (6)	$	326,440					$	232,956
Net interest margin (7)					4.00	%					3.87	%
Average interest-earning assets to interest-bearing liabilities					133.25	%					129.16	%

(1) Annualized where appropriate.
(2) Loans include loans and loans held for sale.
(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
	March 31,		December 31,		September 30,		June 30,		March 31,
	2021		2020		2020		2020		2020

	(Dollars in thousands, except share and per share data)
Other Data
Common shares issued		18,463,028		18,463,028		18,463,028		18,463,028		18,463,028
Less treasury shares		1,444,776		1,337,059		1,346,679		1,228,737		1,163,288
Common shares outstanding at end of period		17,018,252		17,125,969		17,116,349		17,234,291		17,299,740

Book value per share	$	9.47	$	9.32	$	9.25	$	8.99	$	9.00
Tangible book value per share	$	9.47	$	9.32	$	9.25	$	8.99	$	9.00

Contact:
Frank Perez
frank.perez@poncebank.net
718-931-9000

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