PDL Community Bancorp Announces 2018 Third Quarter Results

Bay Street

6 years ago

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	%

Contact:

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