PDL Community Bancorp Announces 2017 Third Quarter Results
“The current quarter marks our beginning quarter as a public company, for which we thank our depositors for their faith in our reorganization and our investors for their confidence in our future,” said
Net Interest Income
Net interest income was
Net interest income was
Total borrowings also contributed to the increase in interest expense as the average balance of borrowings increased
Noninterest Income
Noninterest income was
Noninterest income was
Noninterest Expenses
Noninterest expenses were
Noninterest expenses were
Asset Quality
Provision for loan losses was
Balance Sheet
Total assets increased
Total deposits increased
Total stockholders’ equity was
Attached hereto are selected financial tables.
About
Attached hereto are selected financial tables.
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 goodwill and 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
PDL Community Bancorp and Subsidiaries Consolidated Statements of Financial Condition September 30, 2017 (Unaudited) and December 31, 2016 (Dollars in thousands, except for share data) |
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September 30, | December 31, | |||||||
2017 | 2016 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks: | ||||||||
Cash | $ | 4,716 | $ | 4,796 | ||||
Interest-bearing deposits in banks | 51,629 | 6,920 | ||||||
Total cash and cash equivalents | 56,345 | 11,716 | ||||||
Available-for-sale securities, at fair value | 29,312 | 52,690 | ||||||
Loans held for sale | — | 2,143 | ||||||
Loans receivable, net of allowance for loan losses - 2017 $11,147; 2016 $10,205 | 767,721 | 642,148 | ||||||
Accrued interest receivable | 3,132 | 2,707 | ||||||
Other real estate owned | — | — | ||||||
Premises and equipment, net | 25,729 | 26,028 | ||||||
Federal Home Loan Bank Stock (FHLB), at cost | 1,448 | 964 | ||||||
Deferred tax assets | 5,563 | 3,379 | ||||||
Other assets | 3,013 | 3,208 | ||||||
Total assets | $ | 892,263 | $ | 744,983 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | $ | 698,655 | $ | 643,078 | ||||
Accrued interest payable | 32 | 28 | ||||||
Advance payments by borrowers for taxes and insurance | 5,967 | 3,882 | ||||||
Advances from the Federal Home Loan Bank | 15,000 | 3,000 | ||||||
Other liabilities | 4,101 | 2,003 | ||||||
Total liabilities | 723,755 | 651,991 | ||||||
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 at September 30, 2017 | 185 | — | ||||||
Additional paid-in-capital | 84,099 | — | ||||||
Retained earnings | 97,719 | 99,242 | ||||||
Accumulated other comprehensive loss | (6,257 | ) | (6,250 | ) | ||||
Unearned compensation - ESOP; 723,751 shares | (7,238 | ) | — | |||||
Total stockholders' equity | 168,508 | 92,992 | ||||||
Total liabilities and stockholders' equity | $ | 892,263 | $ | 744,983 | ||||
PDL Community Bancorp and Subsidiaries Consolidated Statements of Operations September 30, 2017 (Unaudited) and December 31, 2016 (Dollars in thousands) |
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For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Interest and dividend income: | ||||||||||||||||
Interest on loans receivable | $ | 9,893 | $ | 8,128 | $ | 28,065 | $ | 24,330 | ||||||||
Interest and dividends on investment securities and FHLB stock | 271 | 243 | 596 | 870 | ||||||||||||
Total interest and dividend income | 10,164 | 8,371 | 28,661 | 25,200 | ||||||||||||
Interest expense: | ||||||||||||||||
Interest on certificates of deposit | 1,574 | 1,386 | 4,318 | 4,117 | ||||||||||||
Interest on other deposits | 176 | 104 | 487 | 287 | ||||||||||||
Interest on borrowings | 66 | 1 | 126 | 7 | ||||||||||||
Total interest expense | 1,816 | 1,491 | 4,931 | 4,411 | ||||||||||||
Net interest income | 8,348 | 6,880 | 23,730 | 20,789 | ||||||||||||
Provision for loan losses (recovery) | 238 | 116 | 497 | (196 | ) | |||||||||||
Net interest income after provision for loan losses (recovery) | 8,110 | 6,764 | 23,233 | 20,985 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges and fees | 231 | 238 | 684 | 704 | ||||||||||||
Brokerage commissions | 167 | 133 | 453 | 382 | ||||||||||||
Late and prepayment charges | 157 | 111 | 603 | 257 | ||||||||||||
Other | 213 | 156 | 676 | 506 | ||||||||||||
Total noninterest income | 768 | 638 | 2,416 | 1,849 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Compensation and benefits | 4,220 | 3,635 | 12,005 | 10,986 | ||||||||||||
Occupancy expense | 1,412 | 1,410 | 4,235 | 4,181 | ||||||||||||
Data processing expenses | 316 | 490 | 1,181 | 1,240 | ||||||||||||
Direct loan expenses | 189 | 214 | 558 | 678 | ||||||||||||
Insurance and surety bond premiums | 44 | 97 | 205 | 369 | ||||||||||||
Office supplies, telephone and postage | 250 | 279 | 786 | 819 | ||||||||||||
FDIC deposit insurance assessment | 122 | 102 | 246 | 546 | ||||||||||||
Charitable foundation contributions | 6,293 | — | 6,293 | — | ||||||||||||
Other operating expenses | 884 | 654 | 2,320 | 1,983 | ||||||||||||
Total noninterest expense | 13,730 | 6,881 | 27,829 | 20,802 | ||||||||||||
Income (loss) before income taxes | (4,852 | ) | 521 | (2,180 | ) | 2,032 | ||||||||||
Provision (benefit) for income taxes | (1,643 | ) | 239 | (657 | ) | 846 | ||||||||||
Net income (loss) | $ | (3,209 | ) | $ | 282 | $ | (1,523 | ) | $ | 1,186 | ||||||
PDL Community Bancorp and Subsidiaries Average Balances / Yields / Rates (Unaudited) (Dollars in thousands) |
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For the Three Months Ended September 30, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Outstanding | Average | Outstanding | Average | |||||||||||||||||||||
Balance | Interest | Yield/Rate (1) | Balance | Interest | Yield/Rate (1) | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 762,048 | $ | 9,893 | 5.15 | % | $ | 613,759 | $ | 8,128 | 5.27 | % | ||||||||||||
Available-for-sale securities | 29,543 | 104 | 1.40 | % | 64,987 | 227 | 1.39 | % | ||||||||||||||||
Other (2) | 65,468 | 167 | 1.01 | % | 15,498 | 16 | 0.41 | % | ||||||||||||||||
Total interest-earning assets | 857,059 | 10,164 | 4.70 | % | 694,244 | 8,371 | 4.80 | % | ||||||||||||||||
Non-interest-earning assets | 33,946 | 33,661 | ||||||||||||||||||||||
Total assets | $ | 891,005 | $ | 727,905 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Savings accounts | $ | 130,855 | $ | 131 | 0.40 | % | $ | 128,355 | $ | 78 | 0.24 | % | ||||||||||||
Interest-bearing demand | 78,373 | 44 | 0.22 | % | 53,750 | 26 | 0.19 | % | ||||||||||||||||
Certificates of deposit | 404,365 | 1,574 | 1.54 | % | 371,330 | 1,386 | 1.48 | % | ||||||||||||||||
Total deposits | 613,593 | 1,749 | 1.13 | % | 553,435 | 1,490 | 1.07 | % | ||||||||||||||||
Advance payments by borrowers | 6,060 | 1 | 0.07 | % | 4,514 | 1 | 0.09 | % | ||||||||||||||||
Borrowings | 21,267 | 66 | 1.23 | % | 500 | — | 0.00 | % | ||||||||||||||||
Total interest-bearing liabilities | 640,920 | 1,816 | 1.12 | % | 558,449 | 1,491 | 1.06 | % | ||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing demand | 148,251 | — | 72,909 | — | ||||||||||||||||||||
Other non-interest-bearing liabilities | 3,391 | — | 3,427 | — | ||||||||||||||||||||
Total non-interest-bearing liabilities | 151,642 | — | 76,336 | — | ||||||||||||||||||||
Total liabilities | 792,562 | 1,816 | 634,785 | 1,491 | ||||||||||||||||||||
Total equity | 98,443 | 93,120 | ||||||||||||||||||||||
Total liabilities and total equity | $ | 891,005 | 1.12 | % | $ | 727,905 | 1.06 | % | ||||||||||||||||
Net interest income | $ | 8,348 | $ | 6,880 | ||||||||||||||||||||
Net interest rate spread (3) | 3.58 | % | 3.73 | % | ||||||||||||||||||||
Net interest-earning assets (4) | $ | 216,139 | $ | 135,795 | ||||||||||||||||||||
Net interest margin (5) | 3.86 | % | 3.94 | % | ||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities |
133.72 | % | 124.32 | % | ||||||||||||||||||||
(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 Balances / Yields / Rates (Unaudited) (Dollars in thousands) |
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For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Outstanding | Average | Outstanding | Average | |||||||||||||||||||||
Balance | Interest | Yield/Rate (1) | Balance | Interest | Yield/Rate (1) | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 711,179 | $ | 28,065 | 5.28 | % | $ | 597,228 | $ | 24,330 | 5.44 | % | ||||||||||||
Available-for-sale securities | 38,628 | 376 | 1.30 | % | 74,859 | 820 | 1.46 | % | ||||||||||||||||
Other (2) | 29,264 | 220 | 1.01 | % | 14,919 | 50 | 0.45 | % | ||||||||||||||||
Total interest-earning assets | 779,071 | 28,661 | 4.92 | % | 687,006 | 25,200 | 4.90 | % | ||||||||||||||||
Non-interest-earning assets | 33,553 | 34,457 | ||||||||||||||||||||||
Total assets | $ | 812,624 | $ | 721,463 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Savings accounts | $ | 129,673 | $ | 375 | 0.39 | % | $ | 126,028 | $ | 213 | 0.23 | % | ||||||||||||
Interest-bearing demand | 74,506 | 108 | 0.19 | % | 51,777 | 71 | 0.18 | % | ||||||||||||||||
Certificates of deposit | 382,653 | 4,318 | 1.51 | % | 371,721 | 4,117 | 1.48 | % | ||||||||||||||||
Total deposits | 586,832 | 4,801 | 1.09 | % | 549,526 | 4,401 | 1.07 | % | ||||||||||||||||
Advance payments by borrowers | 5,865 | 3 | 0.07 | % | 4,475 | 3 | 0.09 | % | ||||||||||||||||
Borrowings | 14,616 | 127 | 1.16 | % | 1,518 | 7 | 0.62 | % | ||||||||||||||||
Total interest-bearing liabilities | 607,313 | 4,931 | 1.09 | % | 555,519 | 4,411 | 1.06 | % | ||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing demand | 106,222 | — | 69,867 | — | ||||||||||||||||||||
Other non-interest-bearing liabilities | 3,346 | — | 3,287 | — | ||||||||||||||||||||
Total non-interest-bearing liabilities | 109,568 | — | 73,154 | — | ||||||||||||||||||||
Total liabilities | 716,881 | 4,931 | 628,673 | 4,411 | ||||||||||||||||||||
Total equity | 95,743 | 92,790 | ||||||||||||||||||||||
Total liabilities and total equity | $ | 812,624 | 1.09 | % | $ | 721,463 | 1.06 | % | ||||||||||||||||
Net interest income | $ | 23,730 | $ | 20,789 | ||||||||||||||||||||
Net interest rate spread (3) | 3.83 | % | 3.84 | % | ||||||||||||||||||||
Net interest-earning assets (4) | $ | 171,758 | $ | 131,487 | ||||||||||||||||||||
Net interest margin (5) | 4.07 | % | 4.04 | % | ||||||||||||||||||||
Average interest-earning assets to | ||||||||||||||||||||||||
interest-bearing liabilities | 128.28 | % | 123.67 | % | ||||||||||||||||||||
(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@poncebank.net
718-931-9000
Source: PDL Community Bancorp