NEW YORK, May 09, 2018 (GLOBE NEWSWIRE) -- PDL Community Bancorp, (the “Company”) (NASDAQ:PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $941,000, or $0.05 per basic and diluted share for the quarter ended March 31, 2018 compared to net income of $563,000 for the same period in 2017. 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 of prior periods are solely those of Ponce Bank.

“As we head into our first full calendar year as a public company, we are heartened that the key initiatives we have focused on are delivering expected results, and more,” said Steven A. Tsavaris, Executive Chairman. Carlos P. Naudon, President and CEO, noted that “we are pleased to report $24.3 million in internal loan growth during the first quarter of 2018, or a 12.3% annualized rate of growth.”  

Net Interest Income

Net interest income was $8.7 million for the quarter ended March 31, 2018, up $1.4 million, or 19.2%, from $7.3 million for the quarter ended March 31, 2017. The increase in net interest income for the quarter ended March 31, 2018 compared to the same period in 2017 reflects a $1.9 million, or 21.8%, increase in total interest and dividend income offset by an increase of $537,000, or 35.9%, in total interest expense. The net interest rate spread and net interest margin were 3.61% and 3.95%, respectively, for the quarter ended March 31, 2018 compared to 3.88% and 4.09%, 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 $154.3 million or 23.3%, for the quarter ended March 31, 2018 compared to the same period in 2017. The yield on loans decreased to 5.16% for the quarter ended March 31, 2018 from 5.26% for the same period in 2017. The increase in interest expense is primarily due to an increase in average certificates of deposits of $67.8 million or 18.7% for the quarter ended March 31, 2018 compared to the same period in 2017. The cost on certificates of deposits increased to 1.65% for the quarter ended March 31, 2018 from 1.47% for the same period in 2017. The cost of all interest-bearing liabilities increased to 1.26% for the quarter ended March 31, 2018 from 1.05% for the same period in 2017.

Noninterest Income

Noninterest income was $885,000 for the quarter ended March 31, 2018, up $127,000, or 16.8%, from $758,000 for the same period in 2017. The increase is mainly attributed to gains of $176,000 on loans sold combined with an increase of $28,000 in prepayment charges related to mortgage loans offset by decreases in late charges on loans of $23,000, brokerage commission income of $21,000, and line of credit fees $16,000.

Noninterest Expense

Noninterest expenses were $8.3 million for the quarter ended March 31, 2018, up $1.2 million, or 16.9%, from $7.1 million for the same period in 2017. The increase is mainly attributed to an increase of $629,000 in total compensation and benefits expense which included $189,000 in Employee Stock Ownership Plan expense and an increase of $425,000 in professional services.

Asset Quality

Nonperforming assets decreased to $9.3 million or 0.98% of total assets at March 31, 2018 from $11.4 million or 1.23% of total assets at December 31, 2017. The decrease is mainly attributed to decrease in nonaccruals of $847,000 in investor-owned one-to-four family residential, a decrease of $383,000 in owner-occupied one-to-four family residential, a decrease of $521,000 in multifamily residential properties, a decrease of $272,000 in nonresidential properties and a decrease of $117,000 in business loans.  Additionally, 3 non-accruing loans totaling $1.8 million were sold for a net gain of $142,000 during the quarter. One of the loans sold included a recovery of $170,000.

Provision for loan losses was $94,000 for the quarter ended March 31, 2018, compared to $52,000 for the same period in 2017. The allowance for loan losses was $11.4 million, or 1.37%, of total loans at March 31, 2018, compared to $11.1 million, or 1.37%, of total loans at December 31, 2017. Net charge-offs totaled $5,000 for the quarter ended March 31, 2018, compared to $10,000 for the same period in 2017.

Balance Sheet

Total assets increased $24.1 million, or 2.6%, to $949.6 million at March 31, 2018 from $925.5 million at December 31, 2017. Net loans increased $24.3 million, or 3.0%, to $823.0 million at March 31, 2018 from $798.7 million at December 31, 2017. The increase in net loans was primarily attributed to increases of $15.9 million in multifamily residential and $7.3 million in nonresidential properties.

Total deposits increased $38.3 million, or 5.4%, to $752.3 million at March 31, 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 and an increase of $7.0 million in demand deposits.

Total stockholders’ equity was $165.7 million at March 31, 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 March 31, 2018. The Bank’s total capital to risk-weighted assets ratio was 20.55%, the tier 1 capital to risk-weighted assets ratio and the common equity tier 1 capital ratio was 19.29%, the tier 1 capital to total assets ratio was 14.27% at March 31, 2018 compared to 20.73%, 19.48%, and 14.67% at December 31, 2017 respectively.

The Annual Meeting of Stockholders of PDL Community Bancorp will be held at our administrative office located at 2244 Westchester Avenue, Bronx, New York 10462 on May 10, 2018, at 10:00 am, local time.

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
		March 31,				December 31,				September 30,				June 30,				March 31,
		2018				2017				2017				2017				2017
ASSETS
Cash and due from banks:
Cash		$	6,570			$	24,746			$	4,716			$	4,096			$	4,557
Interest-bearing deposits in banks			52,409				34,978				51,629				5,400				11,947
Total cash and cash equivalents			58,979				59,724				56,345				9,496				16,504
Available-for-sale securities, at fair value			28,422				28,897				29,312				29,668				51,937
Loans held for sale			—				—				—				2,143				2,143
Loans receivable, net			823,014				798,703				767,721				732,520				677,525
Accrued interest receivable			3,202				3,335				3,132				2,917				2,749
Premises and equipment, net			27,684				27,172				25,729				25,599				25,687
Federal Home Loan Bank Stock (FHLB), at cost			1,673				1,511				1,448				1,288				2,089
Deferred tax assets			3,801				3,909				5,563				3,378				3,378
Other assets			2,848				2,271				3,013				5,987				4,241
Total assets		$	949,623			$	925,522			$	892,263			$	812,996			$	786,253
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits		$	752,267			$	713,985			$	698,655			$	702,406			$	655,882
Accrued interest payable			61				42				32				31				26
Advance payments by borrowers for taxes and insurance			6,999				5,025				5,967				4,661				5,670
Advances from the Federal Home Loan Bank and others			20,000				36,400				15,000				8,000				28,000
Other liabilities			4,582				5,285				4,101				3,224				3,201
Total liabilities			783,909				760,737				723,755				718,322				692,779
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				—				—
Additional paid-in-capital			84,419				84,351				84,099				—				—
Retained earnings			95,796				94,855				97,719				100,929				99,805
Accumulated other comprehensive loss			(8,052	)			(7,851	)			(6,257	)			(6,255	)			(6,331	)
Unearned compensation - ESOP			(6,634	)			(6,755	)			(7,238	)			—				—
Total stockholders' equity			165,714				164,785				168,508				94,674				93,474
Total liabilities and stockholders' equity		$	949,623			$	925,522			$	892,263			$	812,996			$	786,253

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

		For the Quarters Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2018				2017				2017				2017				2017
Interest and dividend income:
Interest on loans receivable		$	10,386			$	10,106			$	9,893			$	9,581			$	8,592
Interest and dividends on investment securities and FHLB stock			324				221				271				123				202
Total interest and dividend income			10,710				10,327				10,164				9,704				8,794
Interest expense:
Interest on certificates of deposit			1,750				1,599				1,574				1,428				1,316
Interest on other deposits			185				168				176				161				151
Interest on borrowings			98				83				66				32				29
Total interest expense			2,033				1,850				1,816				1,621				1,496
Net interest income			8,677				8,477				8,348				8,083				7,298
Provision for loan losses			94				1,219				238				207				52
Net interest income after provision for loan losses			8,583				7,258				8,110				7,876				7,246
Noninterest income:
Service charges and fees			223				224				231				225				229
Brokerage commissions			96				94				167				168				118
Late and prepayment charges			211				207				157				235				211
Other			355				169				213				256				200
Total noninterest income			885				694				768				884				758
Noninterest expense:
Compensation and benefits			4,458				5,104				4,220				3,956				3,829
Occupancy expense			1,491				1,588				1,412				1,400				1,425
Data processing expenses			408				293				316				413				448
Direct loan expenses			155				171				189				184				195
Insurance and surety bond premiums			89				64				44				79				82
Office supplies, telephone and postage			300				317				250				282				254
FDIC deposit insurance assessment			68				4				122				58				66
Charitable foundation contributions			—				—				6,293				—				—
Other operating expenses			1,290				1,195				884				623				797
Total noninterest expense			8,259				8,736				13,730				6,995				7,096
Income (loss) before income taxes			1,209				(784	)			(4,852	)			1,765				908
Provision for income taxes (benefit)			268				2,081				(1,643	)			641				345
Net income (loss)		$	941			$	(2,865	)		$	(3,209	)		$	1,124			$	563
Earnings per share for the period:
Basic		$	0.05			$	(0.16	)		N/A				N/A				N/A
Diluted		$	0.05			$	(0.16	)		N/A				N/A				N/A

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

		For the Three Months Ended March 31,
		2018				2017				$				%
Interest and dividend income:
Interest on loans receivable		$	10,386			$	8,592			$	1,794				20.88	%
Interest and dividends on investment securities and FHLB stock			324				202				122				60.40	%
Total interest and dividend income			10,710				8,794				1,916				21.79	%
Interest expense:
Interest on certificates of deposit			1,750				1,316				434				32.98	%
Interest on other deposits			185				151				34				22.52	%
Interest on borrowings			98				29				69				237.93	%
Total interest expense			2,033				1,496				537				35.90	%
Net interest income			8,677				7,298				1,379				18.90	%
Provision for loan losses			94				52				42				80.77	%
Net interest income after provision for loan losses			8,583				7,246				1,337				18.45	%
Noninterest income:
Service charges and fees			223				229				(6	)			(2.62	%)
Brokerage commissions			96				118				(22	)			(18.64	%)
Late and prepayment charges			211				211				-				0.00	%
Other			355				200				155				77.50	%
Total noninterest income			885				758				127				16.75	%
Noninterest expense:
Compensation and benefits			4,458				3,829				629				16.43	%
Occupancy expense			1,491				1,425				66				4.63	%
Data processing expenses			408				448				(40	)			(8.93	%)
Direct loan expenses			155				195				(40	)			(20.51	%)
Insurance and surety bond premiums			89				82				7				8.54	%
Office supplies, telephone and postage			300				254				46				18.11	%
FDIC deposit insurance assessment			68				66				2				3.03	%
Other operating expenses			1,290				797				493				61.86	%
Total noninterest expense			8,259				7,096				1,163				16.39	%
Income before income taxes			1,209				908				301				33.15	%
Provision for income taxes			268				345				(77	)			(22.32	%)
Net income		$	941			$	563			$	378				67.14	%
Earnings per share  for the period:
Basic		$	0.05			N/A				N/A				N/A
Diluted		$	0.05			N/A				N/A				N/A

PDL Community Bancorp and Subsidiaries
Key Metrics

		At or for the Quarters Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2018				2017				2017				2017				2017
Performance Ratios:
Return on average assets			0.41	%			(1.27	%)			(1.43	%)			0.57	%			0.30	%
Return on average equity			2.30	%			(6.74	%)			(12.93	%)			4.75	%			2.43	%
Net interest rate spread (1)			3.61	%			3.54	%			3.58	%			4.07	%			3.88	%
Net interest margin (2)			3.95	%			3.88	%			3.86	%			4.29	%			4.09	%
Noninterest expense to average assets			3.61	%			3.86	%			6.11	%			3.56	%			3.80	%
Efficiency ratio (3)			86.37	%			95.26	%			150.61	%			78.02	%			88.08	%
Average interest-earning assets to average interest- bearing liabilities			135.79	%			139.76	%			133.72	%			125.73	%			124.86	%
Average equity to average assets			17.91	%			18.77	%			11.05	%			12.03	%			12.38	%
Capital Ratios:
Total capital to risk weighted assets (bank only)			20.52	%			20.73	%			21.41	%			17.34	%			18.16	%
Tier 1 capital to risk weighted assets (bank only)			19.26	%			19.48	%			20.15	%			16.09	%			16.91	%
Common equity Tier 1 capital to risk-weighted assets ( bank only)			19.26	%			19.48	%			20.15	%			16.09	%			16.91	%
Tier 1 capital to average assets (bank only)			14.25	%			14.67	%			14.91	%			12.70	%			13.08	%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans			1.37	%			1.37	%			1.43	%			1.43	%			1.51	%
Allowance for loan losses as a percentage of nonperforming loans			122.81	%			97.05	%			118.32	%			138.27	%			134.92	%
Net (charge-offs) recoveries to average outstanding loans during the year			0.12	%			(0.64	%)			0.13	%			0.04	%			0.07	%
Non-performing loans as a percentage of total loans			1.11	%			1.41	%			1.21	%			1.04	%			1.12	%
Non-performing loans as a percentage of total assets			0.98	%			1.23	%			1.06	%			0.95	%			0.98	%
Total non-performing assets as a percentage of total assets			0.98	%			1.23	%			1.06	%			0.95	%			0.98	%
Total non-performing assets, accruing loans past due 90 days or more,  and accruing troubled debt restructured loans as a percentage of total assets			2.25	%			2.72	%			2.61	%			3.05	%			3.29	%
Other:
Number of offices		14				14				14				14				14
Number of full-time equivalent employees		192				177				171				178				177

(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
		March 31,								December 31,								September 30,								June 30,								March 31,
		2018								2017								2017								2017								2017
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	290,509				34.86	%		$	287,158				35.51	%		$	279,275				35.90	%		$	256,989				34.62	%		$	237,904				34.62	%
Owner-Occupied			96,943				11.63	%			100,854				12.47	%			99,661				12.81	%			99,901				13.46	%			96,085				13.98	%
Multifamily residential			204,474				24.54	%			188,550				23.31	%			177,181				22.78	%			172,167				23.19	%			161,833				23.55	%
Nonresidential properties			158,525				19.03	%			151,193				18.69	%			152,692				19.63	%			155,670				20.97	%			140,501				20.45	%
Construction and land			67,971				8.16	%			67,240				8.31	%			52,483				6.75	%			42,116				5.67	%			37,610				5.47	%
Total mortgage loans			818,422				98.21	%			794,995				98.30	%			761,292				97.87	%			726,843				97.91	%			673,933				98.07	%
Nonmortgage loans:
Business loans			13,925				1.67	%			12,873				1.59	%			15,600				2.01	%			14,654				1.97	%			12,434				1.81	%
Consumer loans			975				0.12	%			886				0.11	%			943				0.12	%			850				0.11	%			796				0.12	%
Total nonmortgage loans			14,900				1.79	%			13,759				1.70	%			16,543				2.13	%			15,504				2.09	%			13,230				1.93	%
			833,322				100.00	%			808,754				100.00	%			777,835				100.00	%			742,347				100.00	%			687,163				100.00	%
Net deferred loan origination costs			1,101								1,020								1,033								828								732
Allowance for losses on loans			(11,409	)							(11,071	)							(11,147	)							(10,655	)							(10,370	)
Loans, net		$	823,014							$	798,703							$	767,721							$	732,520							$	677,525

PDL Community Bancorp and Subsidiaries
Nonperforming Assets

		For the Quarters Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2018				2017				2017				2017				2017
		(Dollars in thousands)
Nonaccrual loans:
Mortgage loans:
1-4 family residential
Investor owned		$	209			$	1,034			$	402			$	571			$	573
Owner occupied			1,951				2,624				2,630				2,463				1,723
Multifamily residential			—				521				—				—				—
Nonresidential properties			633				1,387				653				867				1,606
Construction and land			1,097				1,075				1,075				1,008				1,142
Nonmortgage loans:
Business			30				147				12				12				12
Consumer			—				—				—				—				—
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)		$	3,920			$	6,788			$	4,772			$	4,921			$	5,056
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned		$	1,122			$	1,144			$	1,168			$	1,190			$	1,214
Owner occupied			2,983				2,693				2,698				810				636
Multifamily residential			—				—				—				—				—
Nonresidential properties			1,265				783				783				785				780
Construction and land			—				—				—				—				—
Nonmortgage loans:
Business			—				—				—				—				—
Consumer			—				—				—				—				—
Total non-accruing troubled debt restructured loans			5,370				4,620				4,649				2,785				2,630
Total nonaccrual loans		$	9,290			$	11,408			$	9,421			$	7,706			$	7,686
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 nonpeforming assets		$	9,290			$	11,408			$	9,421			$	7,706			$	7,686
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		$	5,738			$	6,559			$	6,594			$	7,108			$	6,385
Owner occupied			4,424				4,756				4,784				5,439				7,232
Multifamily residential			—				—				—				—				—
Nonresidential properties			1,468				1,958				1,968				4,009				4,036
Construction and land			—				—				—				—				—
Nonmortgage loans:
Business			454				477				501				516				546
Consumer			—				—				—				—				—
Total accruing troubled debt restructured loans		$	12,084			$	13,750			$	13,847			$	17,072			$	18,199
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans		$	21,374			$	25,165			$	23,268			$	24,778			$	25,885
Total nonperforming loans to total loans			1.11	%			1.41	%			1.21	%			1.04	%			1.12	%
Total nonperforming assets to total assets			0.98	%			1.23	%			1.06	%			0.95	%			0.98	%
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets			2.25	%			2.72	%			2.61	%			3.05	%			3.29	%

Source: PDL Community Bancorp