NEW YORK, Nov. 14, 2018 (GLOBE NEWSWIRE) — PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $402,000, or $0.02 per basic and diluted share for the quarter ended September 30, 2018 compared to a net loss of $3.2 million for the same period in 2017. For the nine months ended September 30, 2018 net income was $2.0 million or $0.11 per basic and diluted share as compared to a net loss of $1.5 million for the same period last year. The Company was formed on September 29, 2017 in conjunction with the reorganization of Ponce De Leon Federal Bank, Ponce Bank’s predecessor, into Ponce Bank Mutual Holding Company, a mutual holding company. Accordingly, the Company’s financial results for periods prior to September 30, 2017 are solely those of Ponce Bank.

“We continue to be pleased with our organic loan growth while controlling our funding costs,” said Steven A. Tsavaris, Executive Chairman. Carlos P. Naudon, President and CEO, noted that “the costs of being a public company are beginning to stabilize as we gain experience and expertise.”

Net Interest Income

Net interest income was $9.2 million for the quarter ended September 30, 2018, up $900,000 or 10.8%, from $8.3 million for the quarter ended September 30, 2017. The increase in net interest income for the quarter ended September 30, 2018 compared to the same period in 2017 reflects a $1.6 million, or 15.5%, increase in total interest and dividend income offset by an increase of $674,000, or 37.1%, in total interest expense. The net interest rate spread and net interest margin were 3.49% and 3.86%, respectively, for the quarter ended September 30, 2018 compared to 3.58% and 3.86%, respectively, for the same period in 2017. The increase in interest and dividend income is primarily due to growth in the investor-owned one-to-four family, multifamily, nonresidential, and construction and land loans, that provided an increase in average outstanding loans of $128.1 million or 16.7%, for the quarter ended September 30, 2018 compared to the same period in 2017. The average yield on loans decreased to 5.12% for the quarter ended September 30, 2018 from 5.15% for the same period in 2017. The increase in interest expense is primarily due to an increase in average certificates of deposits of $30.8 million or 7.62% for the quarter ended September 30, 2018 compared to the same period in 2017. The average cost on certificates of deposits increased to 1.77% for the quarter ended September 30, 2018 from 1.54% for the same period in 2017. The average cost of all interest-bearing liabilities increased to 1.40% for the quarter ended September 30, 2018 from 1.12% for the same period in 2017.

Noninterest Income

Noninterest income was $714,000 for the quarter ended September 30, 2018, down $54,000, or 7.0%, from $768,000 for the same period in 2017. The decrease is mainly attributed to decreases of $92,000 in late and prepayment charges, a decrease of $40,000 in service charges and fees related to commercial checking accounts, and a decrease of $41,000 in other noninterest income.  These decreases were offset by an increase of $119,000 in brokerage commission.

Noninterest Expense

Noninterest expenses were $8.8 million for the quarter ended September 30, 2018, down $4.9 million, or 36.1%, from $13.7 million for the same period in 2017. The decrease is mainly attributable to a one-time contribution of $6.3 million to the Ponce De Leon Charitable Foundation that was made as part of the reorganization of Ponce De Leon Federal Bank, the Bank’s predecessor, on September 29, 2017. Increases in noninterest expenses include $327,000 in compensation expenses, $173,000 in occupancy expenses, and office supplies, telephone and postage increases of $58,000. Insurance and surety bond premiums increased $43,000; direct loan expenses increased $76,000; and data processing increased $26,000.  Other noninterest expenses increased $683,000, of which $734,000 are attributable to legal, auditing, consulting, and professional services expense.  In addition, losses on securities sold increased $20,000 and organizational dues and subscriptions increased $82,000.  These increases were partially offset by a decrease of $106,000 in loss on loans sold and other miscellaneous noninterest expenses decreased $47,000 for the three months ended September 30, 2018 compared to the same period in 2017.

Asset Quality

Nonaccrual loans decreased to $6.6 million or 0.67% of total assets at September 30, 2018 from $11.4 million or 1.23% of total assets at December 31, 2017. The decrease is mainly attributed to decreases in nonaccruals of $2.2 million in owner-occupied one-to-four family residential, $1.0 million in nonresidential properties, and $896,000 in investor-owned one-to-four family residential.

Provision for loan losses was $602,000 for the quarter ended September 30, 2018, compared to $238,000 for the same period in 2017. The allowance for loan losses was $12.4 million, or 1.37%, of total loans at September 30, 2018, compared to $11.1 million, or 1.37%, of total loans at December 31, 2017. Net recovery totaled $13,000 for the quarter ended September 30, 2018, compared to a net recovery of $254,000 for the same period in 2017.

Balance Sheet

Total assets increased $57.2 million, or 6.2%, to $982.7 million at September 30, 2018 from $925.5 million at December 31, 2017. Net loans increased $95.2 million, or 11.9%, to $893.9 million at September 30, 2018 from $798.7 million at December 31, 2017. The increase in net loans was primarily attributed to increases of $40.4 million or 26.7% in nonresidential properties, $31.4 million or 16.6% in multifamily residential, and $18.1 or 26.9% in construction and land loans.

Total deposits increased $50.8 million, or 7.1%, to $764.8 million at September 30, 2018 from $714.0 million at December 31, 2017. The increase in deposits was primarily attributed to increases in certificates of deposits of $26.9 million or 6.5% and an increase of $23.8 million or 51.2% in money market accounts.

Total stockholders’ equity was $167.1 million at September 30, 2018 compared to $164.8 million at December 31, 2017. The Company and the Bank exceeded all regulatory capital requirements to be deemed well-capitalized at September 30, 2018. The Bank’s total capital to risk-weighted assets ratio was 19.60%, tier 1 capital to risk-weighted assets ratio and common equity tier 1 capital ratio were 18.35%, and tier 1 capital to average assets ratio was 13.78% at September 30, 2018 compared to 20.73%, 19.48%, and 14.67%, respectively, at December 31, 2017.

About PDL Community Bancorp

PDL Community Bancorp is the holding company for Ponce Bank. The Bank’s business primarily consists of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of one-to-four family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. The Bank also invests in securities, which have historically consisted of U.S. Government and federal agency securities and securities issued by government-sponsored or -owned enterprises, as well as, mortgage-backed securities and Federal Home Loan Bank stock. The Bank offers a variety of deposit accounts, including demand, savings, money market and certificates of deposit. 

Forward Looking Statements

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

PDL Community Bancorp and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except for share data)
		As of
		September 30,				June 30,				March 31,				December 31,				September 30,
		2018				2018				2018				2017				2017
ASSETS
Cash and due from banks:
Cash		$	5,494			$	7,088			$	6,570			$	24,746			$	4,716
Interest-bearing deposits in banks			16,895				42,094				52,409				34,978				51,629
Total cash and cash equivalents			22,389				49,182				58,979				59,724				56,345
Available-for-sale securities, at fair value			24,177				28,144				28,422				28,897				29,312
Loans receivable, net			893,884				850,426				823,014				798,703				767,721
Accrued interest receivable			3,609				3,350				3,202				3,335				3,132
Premises and equipment, net			29,293				28,366				27,684				27,172				25,729
Federal Home Loan Bank Stock (FHLB), at cost			2,621				2,617				1,673				1,511				1,448
Deferred tax assets			4,118				3,805				3,801				3,909				5,563
Other assets			2,620				2,923				2,848				2,271				3,013
Total assets		$	982,711			$	968,813			$	949,623			$	925,522			$	892,263
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits		$	764,792			$	753,255			$	752,267			$	713,985			$	698,655
Accrued interest payable			75				141				61				42				32
Advance payments by borrowers for taxes and insurance			7,219				5,491				6,999				5,025				5,967
Advances from the Federal Home Loan Bank and others			37,775				37,775				20,000				36,400				15,000
Other liabilities			5,706				5,573				4,582				5,285				4,101
Total liabilities			815,567				802,235				783,909				760,737				723,755
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued
Common stock, $0.01 par value; 50,000,000  shares authorized; 18,463,028 shares issued and outstanding			185				185				185				185				185
Additional paid-in-capital			84,557				84,488				84,419				84,351				84,099
Retained earnings			96,896				96,495				95,796				94,855				97,719
Accumulated other comprehensive loss			(8,101	)			(8,076	)			(8,052	)			(7,851	)			(6,257	)
Unearned compensation – ESOP			(6,393	)			(6,514	)			(6,634	)			(6,755	)			(7,238	)
Total stockholders’ equity			167,144				166,578				165,714				164,785				168,508
Total liabilities and stockholders’ equity		$	982,711			$	968,813			$	949,623			$	925,522			$	892,263

PDL Community Bancorp and Subsidiaries
Consolidated Statements of Income (Loss)
(Dollars in thousands, except per share data)
		For the Quarters Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2018				2018				2018				2017				2017
Interest and dividend income:
Interest on loans receivable		$	11,483			$	11,053			$	10,386			$	10,106			$	9,893
Interest and dividends on investment securities and FHLB stock			254				330				324				221				271
Total interest and dividend income			11,737				11,383				10,710				10,327				10,164
Interest expense:
Interest on certificates of deposit			1,942				1,847				1,750				1,599				1,574
Interest on other deposits			272				199				185				168				176
Interest on borrowings			276				204				98				83				66
Total interest expense			2,490				2,250				2,033				1,850				1,816
Net interest income			9,247				9,133				8,677				8,477				8,348
Provision for loan losses			602				337				94				1,219				238
Net interest income after provision for loan losses			8,645				8,796				8,583				7,258				8,110
Noninterest income:
Service charges and fees			191				214				223				224				231
Brokerage commissions			286				42				96				94				167
Late and prepayment charges			65				52				211				207				157
Other			172				216				355				169				213
Total noninterest income			714				524				885				694				768
Noninterest expense:
Compensation and benefits			4,547				4,563				4,458				5,104				4,220
Occupancy expense			1,585				1,717				1,491				1,588				1,412
Data processing expenses			342				300				408				293				316
Direct loan expenses			265				152				155				171				189
Insurance and surety bond premiums			87				99				89				64				44
Office supplies, telephone and postage			308				352				300				317				250
FDIC deposit insurance assessment			68				66				68				4				122
Charitable foundation contributions			—				—				—				—				6,293
Other operating expenses			1,567				1,206				1,290				1,195				884
Total noninterest expense			8,769				8,455				8,259				8,736				13,730
Income (loss) before income taxes			590				865				1,209				(784	)			(4,852	)
Provision (benefit) for income taxes			188				166				268				2,081				(1,643	)
Net income (loss)		$	402			$	699			$	941			$	(2,865	)		$	(3,209	)
Earnings per share for the period:
Basic		$	0.02			$	0.04			$	0.05			$	(0.16	)		N/A
Diluted		$	0.02			$	0.04			$	0.05			$	(0.16	)		N/A

PDL Community Bancorp and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share data)
		For the Nine Months Ended September 30,
		2018				2017				$				%
Interest and dividend income:
Interest on loans receivable		$	32,922			$	28,065			$	4,857				17.31	%
Interest and dividends on investment securities and FHLB stock			909				596				313				52.52	%
Total interest and dividend income			33,831				28,661				5,170				18.04	%
Interest expense:
Interest on certificates of deposit			5,539				4,318				1,221				28.28	%
Interest on other deposits			655				487				168				34.50	%
Interest on borrowings			578				126				452				358.73	%
Total interest expense			6,772				4,931				1,841				37.34	%
Net interest income			27,059				23,730				3,329				14.03	%
Provision for loan losses			1,034				497				537				108.05	%
Net interest income after provision for loan losses			26,025				23,233				2,792				12.02	%
Noninterest income:
Service charges and fees			627				684				(57	)			(8.33	%)
Brokerage commissions			424				453				(29	)			(6.40	%)
Late and prepayment charges			327				603				(276	)			(45.77	%)
Other			744				676				68				10.06	%
Total noninterest income			2,122				2,416				(294	)			(12.17	%)
Noninterest expense:
Compensation and benefits			13,466				12,005				1,461				12.17	%
Occupancy expense			4,794				4,235				559				13.20	%
Data processing expenses			1,050				1,181				(131	)			(11.09	%)
Direct loan expenses			572				558				14				2.51	%
Insurance and surety bond premiums			275				205				70				34.15	%
Office supplies, telephone and postage			960				786				174				22.14	%
FDIC deposit insurance assessment			202				246				(44	)			(17.89	%)
Charitable foundation contributions			—				6,293				(6,293	)			(100.00	%)
Other operating expenses			4,164				2,320				1,844				79.48	%
Total noninterest expense			25,483				27,829				(2,346	)			(8.43	%)
Income before income taxes			2,664				(2,180	)			4,844				(222.20	%)
Provision (benefit) for income taxes			623				(657	)			1,280				(194.82	%)
Net income (loss)		$	2,041			$	(1,523	)		$	3,564				(234.01	%)
Earnings per share  for the period:
Basic		$	0.11			N/A				N/A				N/A
Diluted		$	0.11			N/A				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,
		2018				2018				2018				2017				2017
Performance Ratios:
Return on average assets			0.16	%			0.29	%			0.41	%			(1.27	%)			(1.43	%)
Return on average equity			0.95	%			1.68	%			2.30	%			(6.74	%)			(12.93	%)
Net interest rate spread (1)			3.49	%			3.64	%			3.61	%			3.54	%			3.58	%
Net interest margin (2)			3.86	%			3.96	%			3.95	%			3.88	%			3.86	%
Noninterest expense to average assets			3.54	%			3.54	%			3.61	%			3.86	%			6.11	%
Efficiency ratio (3)			88.03	%			87.55	%			86.37	%			95.26	%			150.61	%
Average interest-earning assets to average interest- bearing liabilities			135.09	%			132.89	%			135.79	%			139.76	%			133.72	%
Average equity to average assets			17.06	%			17.45	%			17.91	%			18.77	%			11.05	%
Capital Ratios:
Total capital to risk weighted assets (bank only)			19.60	%			20.07	%			20.52	%			20.73	%			21.41	%
Tier 1 capital to risk weighted assets (bank only)			18.35	%			18.81	%			19.26	%			19.48	%			20.15	%
Common equity Tier 1 capital to risk-weighted assets ( bank only)			18.35	%			18.81	%			19.26	%			19.48	%			20.15	%
Tier 1 capital to average assets (bank only)			13.78	%			14.03	%			14.25	%			14.67	%			14.91	%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans			1.37	%			1.36	%			1.37	%			1.37	%			1.43	%
Allowance for loan losses as a percentage of nonperforming loans			(186.74	%)			176.63	%			122.81	%			97.05	%			118.32	%
Net (charge-offs) recoveries to average outstanding loans			0.00	%			0.00	%			0.12	%			(0.64	%)			0.13	%
Non-performing loans as a percentage of total loans			0.73	%			0.77	%			1.11	%			1.41	%			1.21	%
Non-performing loans as a percentage of total assets			0.67	%			0.69	%			0.98	%			1.23	%			1.06	%
Total non-performing assets as a percentage of total assets			0.67	%			0.69	%			0.98	%			1.23	%			1.06	%
Total non-performing assets, accruing loans past due 90 days or more,  and accruing troubled debt restructured loans as a percentage of total assets			1.79	%			1.87	%			2.25	%			2.72	%			2.61	%
Other:
Number of offices		14				14				14				14				14
Number of full-time equivalent employees		175				194				192				177				171

(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of average interest-bearing liabilities.

(2) Net interest margin represents net interest income divided by average total interest-earning assets.

(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

Key metrics calculated on income statement items were annualized where appropriate.

PDL Community Bancorp and Subsidiaries
Loan Portfolio
		For the Quarters Ended
		September 30,								June 30,								March 31,								December 31,								September 30,
		2018								2018								2018								2017								2017
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	295,792				32.69	%		$	296,490				34.44	%		$	290,509				34.86	%		$	287,158				35.51	%		$	279,275				35.90	%
Owner-Occupied			95,464				10.55	%			92,208				10.71	%			96,943				11.63	%			100,854				12.47	%			99,661				12.81	%
Multifamily residential			219,958				24.31	%			218,210				25.34	%			204,474				24.54	%			188,550				23.31	%			177,181				22.78	%
Nonresidential properties			191,603				21.17	%			168,788				19.60	%			158,525				19.03	%			151,193				18.69	%			152,692				19.63	%
Construction and land			85,293				9.43	%			72,574				8.43	%			67,971				8.16	%			67,240				8.31	%			52,483				6.75	%
Total mortgage loans			888,110				98.14	%			848,270				98.52	%			818,422				98.21	%			794,995				98.30	%			761,292				97.87	%
Nonmortgage loans:
Business loans			15,832				1.75	%			11,698				1.36	%			13,925				1.67	%			12,873				1.59	%			15,600				2.01	%
Consumer loans			992				0.11	%			1,027				0.12	%			975				0.12	%			886				0.11	%			943				0.12	%
Total nonmortgage loans			16,824				1.86	%			12,725				1.48	%			14,900				1.79	%			13,759				1.70	%			16,543				2.13	%
			904,934				100.00	%			860,995				100.00	%			833,322				100.00	%			808,754				100.00	%			777,835				100.00	%
Net deferred loan origination costs			1,316								1,182								1,101								1,020								1,033
Allowance for losses on loans			(12,366	)							(11,751	)							(11,409	)							(11,071	)							(11,147	)
Loans, net		$	893,884							$	850,426							$	823,014							$	798,703							$	767,721

PDL Community Bancorp and Subsidiaries
Nonperforming Assets
		For the Quarters Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2018			2018			2017			2017			2017
		(Dollars in thousands)
Nonaccrual loans:
Mortgage loans:
1-4 family residential
Investor owned		$	206		$	208		$	209		$	1,034		$	402
Owner occupied			1,098			1,481			1,951			2,624			2,630
Multifamily residential			—			—			—			521			—
Nonresidential properties			544			142			633			1,387			653
Construction and land			1,103			1,111			1,097			1,075			1,075
Nonmortgage loans:
Business			—			—			30			147			12
Consumer			—			—			—			—			—
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)		$	2,951		$	2,942		$	3,920		$	6,788		$	4,772
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned		$	1,076		$	1,099		$	1,122		$	1,144		$	1,168
Owner occupied			1,990			2,007			2,983			2,693			2,698
Multifamily residential			—			—			—			—			—
Nonresidential properties			605			606			1,265			783			783
Construction and land			—			—			—			—			—
Nonmortgage loans:
Business			—			—			—			—			—
Consumer			—			—			—			—			—
Total non-accruing troubled debt restructured loans			3,671			3,712			5,370			4,620			4,649
Total nonaccrual loans		$	6,622		$	6,654		$	9,290		$	11,408		$	9,421
Real estate owned:
Mortgage loans:
1-4 family residential
Investor owned		$	—		$	—		$	—		$	—		$	—
Owner occupied
Multifamily residential			—			—			—			—			—
Nonresidential properties			—			—			—			—			—
Construction and land			—			—			—			—			—
Nonmortgage loans:
Business			—			—			—			—			—
Consumer			—			—			—			—			—
Total real estate owned			—			—			—			—			—
Total nonperforming assets		$	6,622		$	6,654		$	9,290		$	11,408		$	9,421
Accruing loans past due 90 days or more:
Mortgage loans:
1-4 family residential
Investor owned		$	—		$	—		$	—		$	7		$	—
Owner occupied			—			—			—			—			—
Multifamily residential			—			—			—			—			—
Nonresidential properties			—			—			—			—			—
Construction and land			—			—			—			—			—
Nonmortgage loans:
Business			—			—			—			—			—
Consumer			—			—			—			—			—
Total accruing loans past due 90 days or more		$	—		$	—		$	—		$	7		$	—
Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned		$	5,224		$	5,707		$	5,738		$	6,559		$	6,594
Owner occupied			3,882			3,911			4,424			4,756			4,784
Multifamily residential			—			—			—			—			—
Nonresidential properties			1,449			1,458			1,468			1,958			1,968
Construction and land			—			—			—			—			—
Nonmortgage loans:
Business			398			421			454			477			501
Consumer			—			—			—			—			—
Total accruing troubled debt restructured loans		$	10,953		$	11,497		$	12,084		$	13,750		$	13,847
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans		$	17,575		$	18,151		$	21,374		$	25,165		$	23,268
Total nonperforming loans to total loans			0.73	%		0.77	%		1.11	%		1.41	%		1.21	%
Total nonperforming assets to total assets			0.67	%		0.69	%		0.98	%		1.23	%		1.06	%
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets			1.79	%		1.87	%		2.25	%		2.72	%		2.61	%

PDL Community Bancorp and Subsidiaries
Average Balance Sheets – Quarter
		For the Three Months Ended September 30,
		2018												2017
		Average												Average
		Outstanding								Average				Outstanding								Average
		Balance				Interest				Yield/Rate (1)				Balance				Interest				Yield/Rate (1)
		(Dollars in thousands)
Interest-earning assets:
Loans		$	890,063			$	11,483				5.12	%		$	762,048			$	9,893				5.15	%
Available-for-sale securities			25,330				89				1.39	%			29,543				104				1.40	%
Other (2)			35,792				165				1.83	%			65,468				167				1.01	%
Total interest-earning assets			951,185				11,737				4.90	%			857,059				10,164				4.70	%
Non-interest-earning assets			32,634												33,946
Total assets		$	983,819											$	891,005
Interest-bearing liabilities:
Savings accounts		$	126,329			$	224				0.70	%		$	130,855			$	131				0.40	%
Interest-bearing demand			92,148				47				0.20	%			78,373				44				0.22	%
Certificates of deposit			435,159				1,942				1.77	%			404,365				1,574				1.54	%
Total deposits			653,636				2,213				1.34	%			613,593				1,749				1.13	%
Advance payments by borrowers			7,409				1				0.05	%			6,060				1				0.07	%
Borrowings			43,057				276				2.54	%			21,267				66				1.23	%
Total interest-bearing liabilities			704,102				2,490				1.40	%			640,920				1,816				1.12	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			105,376				—								148,251				—
Other non-interest-bearing liabilities			6,456				—								3,391				—
Total non-interest-bearing liabilities			111,832				—								151,642				—
Total liabilities			815,934				2,490								792,562				1,816
Total equity			167,885												98,443
Total liabilities and total equity		$	983,819								1.40	%		$	891,005								1.12	%
Net interest income						$	9,247											$	8,348
Net interest rate spread (3)											3.49	%											3.58	%
Net interest-earning assets (4)		$	247,083											$	216,139
Net interest margin (5)											3.86	%											3.86	%
Average interest-earning assets to
interest-bearing liabilities											135.09	%											133.72	%

(1) Annualized where appropriate.
(2) Includes FHLB demand accounts and FHLB stock dividends.
(3) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5) Net interest margin represents net interest income divided by average total interest-earning assets.

PDL Community Bancorp and Subsidiaries
Average Balance Sheets – Year-to-date
		For the Nine Months Ended September 30,
		2018												2017
		Average												Average
		Outstanding								Average				Outstanding								Average
		Balance				Interest				Yield/Rate (1)				Balance				Interest				Yield/Rate (1)
		(Dollars in thousands)
Interest-earning assets:
Loans		$	850,316			$	32,922				5.18	%		$	711,179			$	28,065				5.28	%
Available-for-sale securities			27,417				299				1.46	%			38,628				376				1.30	%
Other (2)			45,113				610				1.81	%			29,264				220				1.01	%
Total interest-earning assets			922,846				33,831				4.90	%			779,071				28,661				4.92	%
Non-interest-earning assets			33,815												33,553
Total assets		$	956,661											$	812,624
Interest-bearing liabilities:
Savings accounts		$	125,643			$	502				0.53	%		$	129,673			$	375				0.39	%
Interest-bearing demand			84,649				150				0.24	%			74,506				108				0.19	%
Certificates of deposit			438,121				5,539				1.69	%			382,653				4,318				1.51	%
Total deposits			648,413				6,191				1.28	%			586,832				4,801				1.09	%
Advance payments by borrowers			7,345				3				0.05	%			5,865				3				0.07	%
Borrowings			30,030				578				2.57	%			14,616				127				1.16	%
Total interest-bearing liabilities			685,788				6,772				1.32	%			607,313				4,931				1.09	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			98,247				—								106,222				—
Other non-interest-bearing liabilities			5,555				—								3,346				—
Total non-interest-bearing liabilities			103,802				—								109,568				—
Total liabilities			789,590				6,772								716,881				4,931
Total equity			167,071												95,743
Total liabilities and total equity		$	956,661								1.32	%		$	812,624								1.09	%
Net interest income						$	27,059											$	23,730
Net interest rate spread (3)											3.58	%											3.83	%
Net interest-earning assets (4)		$	237,058											$	171,758
Net interest margin (5)											3.92	%											4.07	%
Average interest-earning assets to
interest-bearing liabilities											134.57	%											128.28	%

(1) Annualized where appropriate.
(2) Includes FHLB demand accounts and FHLB stock dividends.
(3) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5) Net interest margin represents net interest income divided by average total interest-earning assets.

Contact:

Frank Perez
[email protected]
718-931-9000