NEW YORK, Aug. 08, 2018 (GLOBE NEWSWIRE) -- PDL Community Bancorp, (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $699,000, or $0.04 per basic and diluted share for the quarter ended June 30, 2018 compared to net income of $1.1 million for the same period in 2017. For the six months ended June 30, 2018 net income was $1.6 million or $0.09 per basic and diluted share as compared to $1.7 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 of prior periods are solely those of Ponce Bank.

“We are focused on adding value to our stakeholders and are pleased with our progress” said Steven A. Tsavaris, Executive Chairman. Carlos P. Naudon, President and CEO, noted that “we continue our healthy organic loan growth while at the same time improving asset quality.”  

Net Interest Income

Net interest income was $9.1 million for the quarter ended June 30, 2018, up $1.0 million, or 12.3%, from $8.1 million for the quarter ended June 30, 2017. The increase in net interest income for the quarter ended June 30, 2018 compared to the same period in 2017 reflects a $1.7 million, or 17.5%, increase in total interest and dividend income offset by an increase of $629,000, or 38.8%, in total interest expense. The net interest rate spread and net interest margin were 3.64% and 3.96%, respectively, for the quarter ended June 30, 2018 compared to 4.07% and 4.29%, 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 $134.3 million or 18.9%, for the quarter ended June 30, 2018 compared to the same period in 2017. The average yield on loans decreased to 5.26% for the quarter ended June 30, 2018 from 5.42% for the same period in 2017. The increase in interest expense is primarily due to an increase in average certificates of deposits of $68.2 million or 17.9% for the quarter ended June 30, 2018 compared to the same period in 2017. The average cost on certificates of deposits increased to 1.65% for the quarter ended June 30, 2018 from 1.50% for the same period in 2017. The average cost of all interest-bearing liabilities increased to 1.30% for the quarter ended June 30, 2018 from 1.08% for the same period in 2017.

Noninterest Income

Noninterest income was $524,000 for the quarter ended June 30, 2018, down $360,000, or 40.7%, from $884,000 for the same period in 2017. The decrease is mainly attributed to a decrease of $126,000 in brokerage commissions combined with a decrease of $183,000 in late and prepayment charges.

Noninterest Expense

Noninterest expenses were $8.5 million for the quarter ended June 30, 2018, up $1.5 million, or 21.4%, from $7.0 million for the same period in 2017. The increase is mainly attributed to an increase of $607,000 in total compensation and benefits expense which included $201,000 in Employee Stock Ownership Plan expense, an increase of $333,000 in professional services, and a net loss of $197,000 related to loans sold.

Asset Quality

Nonaccrual loans decreased to $6.7 million or 0.69% of total assets at June 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 $1.4 million in nonresidential properties, $1.8 million in owner-occupied one-to-four family residential, and $871,000 in investor-owned one-to-four family residential. Additionally, 4 non-accruing loans totaling $2.4 million were sold for a net loss of $197,000 during the quarter.

Provision for loan losses was $337,000 for the quarter ended June 30, 2018, compared to $207,000 for the same period in 2017. The allowance for loan losses was $11.8 million, or 1.36%, of total loans at June 30, 2018, compared to $11.1 million, or 1.37%, of total loans at December 31, 2017. Net charge-offs totaled $13,000 for the quarter ended June 30, 2018, compared to $24,000 for the same period in 2017.

Balance Sheet

Total assets increased $43.3 million, or 4.7%, to $968.8 million at June 30, 2018 from $925.5 million at December 31, 2017. Net loans increased $51.7 million, or 6.5%, to $850.4 million at June 30, 2018 from $798.7 million at December 31, 2017. The increase in net loans was primarily attributed to increases of $29.7 million or 15.7% in multifamily residential and $17.6 million or 11.6% in nonresidential properties.

Total deposits increased $39.3 million, or 5.5%, to $753.3 million at June 30, 2018 from $714.0 million at December 31, 2017. The increase in deposits was primarily attributed to increases in certificates of deposits of $24.7 million or 6.0% and an increase of $12.1 million or 26.0% in money market accounts.

Total stockholders’ equity was $166.6 million at June 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 June 30, 2018. The Bank’s total capital to risk-weighted assets ratio was 20.07%, tier 1 capital to risk-weighted assets ratio and common equity tier 1 capital ratio was 18.81%, and tier 1 capital to total assets ratio was 14.03% at June 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
		June 30,				March 31,				December 31,				September 30,				June 30,
		2018				2018				2017				2017				2017
ASSETS
Cash and due from banks:
Cash		$	7,088			$	6,570			$	24,746			$	4,716			$	4,096
Interest-bearing deposits in banks			42,094				52,409				34,978				51,629				5,400
Total cash and cash equivalents			49,182				58,979				59,724				56,345				9,496
Available-for-sale securities, at fair value			28,144				28,422				28,897				29,312				29,668
Loans held for sale			—				—				—				—				2,143
Loans receivable, net			850,426				823,014				798,703				767,721				732,520
Accrued interest receivable			3,350				3,202				3,335				3,132				2,917
Premises and equipment, net			28,366				27,684				27,172				25,729				25,599
Federal Home Loan Bank Stock (FHLB), at cost			2,617				1,673				1,511				1,448				1,288
Deferred tax assets			3,805				3,801				3,909				5,563				3,378
Other assets			2,923				2,848				2,271				3,013				5,987
Total assets		$	968,813			$	949,623			$	925,522			$	892,263			$	812,996
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits		$	753,255			$	752,267			$	713,985			$	698,655			$	702,406
Accrued interest payable			141				61				42				32				31
Advance payments by borrowers for taxes and insurance			5,491				6,999				5,025				5,967				4,661
Advances from the Federal Home Loan Bank and others			37,775				20,000				36,400				15,000				8,000
Other liabilities			5,573				4,582				5,285				4,101				3,224
Total liabilities			802,235				783,909				760,737				723,755				718,322
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				—
Additional paid-in-capital			84,488				84,419				84,351				84,099				—
Retained earnings			96,495				95,796				94,855				97,719				100,929
Accumulated other comprehensive loss			(8,076	)			(8,052	)			(7,851	)			(6,257	)			(6,255	)
Unearned compensation - ESOP			(6,514	)			(6,634	)			(6,755	)			(7,238	)			—
Total stockholders' equity			166,578				165,714				164,785				168,508				94,674
Total liabilities and stockholders' equity		$	968,813			$	949,623			$	925,522			$	892,263			$	812,996

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

		For the Quarters Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2018				2018				2017				2017				2017
Interest and dividend income:
Interest on loans receivable		$	11,053			$	10,386			$	10,106			$	9,893			$	9,581
Interest and dividends on investment securities and FHLB stock			330				324				221				271				123
Total interest and dividend income			11,383				10,710				10,327				10,164				9,704
Interest expense:
Interest on certificates of deposit			1,847				1,750				1,599				1,574				1,428
Interest on other deposits			199				185				168				176				161
Interest on borrowings			204				98				83				66				32
Total interest expense			2,250				2,033				1,850				1,816				1,621
Net interest income			9,133				8,677				8,477				8,348				8,083
Provision for loan losses			337				94				1,219				238				207
Net interest income after provision for loan losses			8,796				8,583				7,258				8,110				7,876
Noninterest income:
Service charges and fees			214				223				224				231				225
Brokerage commissions			42				96				94				167				168
Late and prepayment charges			52				211				207				157				235
Other			216				355				169				213				256
Total noninterest income			524				885				694				768				884
Noninterest expense:
Compensation and benefits			4,563				4,458				5,104				4,220				3,956
Occupancy expense			1,717				1,491				1,588				1,412				1,400
Data processing expenses			300				408				293				316				413
Direct loan expenses			152				155				171				189				184
Insurance and surety bond premiums			99				89				64				44				79
Office supplies, telephone and postage			352				300				317				250				282
FDIC deposit insurance assessment			66				68				4				122				58
Charitable foundation contributions			—				—				—				6,293				—
Other operating expenses			1,206				1,290				1,195				884				623
Total noninterest expense			8,455				8,259				8,736				13,730				6,995
Income (loss) before income taxes			865				1,209				(784	)			(4,852	)			1,765
Provision for income taxes (benefit)			166				268				2,081				(1,643	)			641
Net income (loss)		$	699			$	941			$	(2,865	)		$	(3,209	)		$	1,124
Earnings per share for the period:
Basic		$	0.04			$	0.05			$	(0.16	)		N/A				N/A
Diluted		$	0.04			$	0.05			$	(0.16	)		N/A				N/A

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

		For the Six Months Ended June 30,
		2018				2017				$				%
Interest and dividend income:
Interest on loans receivable		$	21,439			$	18,172			$	3,267				17.98	%
Interest and dividends on investment securities and FHLB stock			654				325				329				101.23	%
Total interest and dividend income			22,093				18,497				3,596				19.44	%
Interest expense:
Interest on certificates of deposit			3,597				2,744				853				31.09	%
Interest on other deposits			383				311				72				23.15	%
Interest on borrowings			303				61				242				396.72	%
Total interest expense			4,283				3,116				1,167				37.45	%
Net interest income			17,810				15,381				2,429				15.79	%
Provision for loan losses			431				259				172				66.41	%
Net interest income after provision for loan losses			17,379				15,122				2,257				14.93	%
Noninterest income:
Service charges and fees			437				454				(17	)			(3.74	%)
Brokerage commissions			138				286				(148	)			(51.75	%)
Late and prepayment charges			263				446				(183	)			(41.03	%)
Other			571				456				115				25.22	%
Total noninterest income			1,409				1,642				(233	)			(14.19	%)
Noninterest expense:
Compensation and benefits			8,918				7,785				1,133				14.55	%
Occupancy expense			3,208				2,826				382				13.52	%
Data processing expenses			708				866				(158	)			(18.24	%)
Direct loan expenses			307				379				(72	)			(19.00	%)
Insurance and surety bond premiums			188				161				27				16.77	%
Office supplies, telephone and postage			652				536				116				21.64	%
FDIC deposit insurance assessment			134				124				10				8.06	%
Other operating expenses			2,599				1,414				1,185				83.80	%
Total noninterest expense			16,714				14,091				2,623				18.61	%
Income before income taxes			2,074				2,673				(599	)			(22.41	%)
Provision for income taxes			434				986				(552	)			(55.98	%)
Net income		$	1,640			$	1,687			$	(47	)			(2.79	%)
Earnings per share  for the period:
Basic		$	0.09			N/A				N/A				N/A
Diluted		$	0.09			N/A				N/A				N/A

PDL Community Bancorp and Subsidiaries
Key Metrics                                                                            

		At or for the Quarters Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2018				2018				2017				2017				2017
Performance Ratios:
Return on average assets			0.29	%			0.41	%			(1.27	%)			(1.43	%)			0.57	%
Return on average equity			1.68	%			2.30	%			(6.74	%)			(12.93	%)			4.75	%
Net interest rate spread (1)			3.64	%			3.61	%			3.54	%			3.58	%			4.07	%
Net interest margin (2)			3.96	%			3.95	%			3.88	%			3.86	%			4.29	%
Noninterest expense to average assets			3.54	%			3.61	%			3.86	%			6.11	%			3.56	%
Efficiency ratio (3)			87.55	%			86.37	%			95.26	%			150.61	%			78.02	%
Average interest-earning assets to average interest-bearing liabilities			132.89	%			135.79	%			139.76	%			133.72	%			125.73	%
Average equity to average assets			17.45	%			17.91	%			18.77	%			11.05	%			12.03	%
Capital Ratios:
Total capital to risk weighted assets (bank only)			20.07	%			20.52	%			20.73	%			21.41	%			17.34	%
Tier 1 capital to risk weighted assets (bank only)			18.81	%			19.26	%			19.48	%			20.15	%			16.09	%
Common equity Tier 1 capital to risk-weighted assets (bank only)			18.81	%			19.26	%			19.48	%			20.15	%			16.09	%
Tier 1 capital to average assets (bank only)			14.03	%			14.25	%			14.67	%			14.91	%			12.70	%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans			1.36	%			1.37	%			1.37	%			1.43	%			1.43	%
Allowance for loan losses as a percentage of nonperforming loans			176.63	%			122.81	%			97.05	%			118.32	%			138.27	%
Net (charge-offs) recoveries to average outstanding loans			0.00	%			0.12	%			(0.64	%)			0.13	%			0.04	%
Non-performing loans as a percentage of total loans			0.77	%			1.11	%			1.41	%			1.21	%			1.04	%
Non-performing loans as a percentage of total assets			0.69	%			0.98	%			1.23	%			1.06	%			0.95	%
Total non-performing assets as a percentage of total assets			0.69	%			0.98	%			1.23	%			1.06	%			0.95	%
Total non-performing assets, accruing loans past due 90 days or more, and accruing troubled debt restructured loans as a percentage of total assets			1.87	%			2.25	%			2.72	%			2.61	%			3.05	%
Other:
Number of offices		14				14				14				14				14
Number of full-time equivalent employees		194				192				177				171				178

(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
		June 30,								March 31,								December 31,								September 30,								June 30,
		2018								2018								2017								2017								2017
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	296,490				34.44	%		$	290,509				34.86	%		$	287,158				35.51	%		$	279,275				35.90	%		$	256,989				34.62	%
Owner-Occupied			92,208				10.71	%			96,943				11.63	%			100,854				12.47	%			99,661				12.81	%			99,901				13.46	%
Multifamily residential			218,210				25.34	%			204,474				24.54	%			188,550				23.31	%			177,181				22.78	%			172,167				23.19	%
Nonresidential properties			168,788				19.60	%			158,525				19.03	%			151,193				18.69	%			152,692				19.63	%			155,670				20.97	%
Construction and land			72,574				8.43	%			67,971				8.16	%			67,240				8.31	%			52,483				6.75	%			42,116				5.67	%
Total mortgage loans			848,270				98.52	%			818,422				98.21	%			794,995				98.30	%			761,292				97.87	%			726,843				97.91	%
Nonmortgage loans:
Business loans			11,698				1.36	%			13,925				1.67	%			12,873				1.59	%			15,600				2.01	%			14,654				1.97	%
Consumer loans			1,027				0.12	%			975				0.12	%			886				0.11	%			943				0.12	%			850				0.11	%
Total nonmortgage loans			12,725				1.48	%			14,900				1.79	%			13,759				1.70	%			16,543				2.13	%			15,504				2.09	%
			860,995				100.00	%			833,322				100.00	%			808,754				100.00	%			777,835				100.00	%			742,347				100.00	%
Net deferred loan origination costs			1,182								1,101								1,020								1,033								828
Allowance for losses on loans			(11,751	)							(11,409	)							(11,071	)							(11,147	)							(10,655	)
Loans, net		$	850,426							$	823,014							$	798,703							$	767,721							$	732,520

PDL Community Bancorp and Subsidiaries
Nonperforming Assets

		For the Quarters Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2018			2018			2017			2017			2017
		(Dollars in thousands)
Nonaccrual loans:
Mortgage loans:
1-4 family residential
Investor owned		$	208		$	209		$	1,034		$	402		$	571
Owner occupied			1,481			1,951			2,624			2,630			2,463
Multifamily residential			—			—			521			—			—
Nonresidential properties			142			633			1,387			653			867
Construction and land			1,111			1,097			1,075			1,075			1,008
Nonmortgage loans:
Business			—			30			147			12			12
Consumer			—			—			—			—			—
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)		$	2,942		$	3,920		$	6,788		$	4,772		$	4,921
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned		$	1,099		$	1,122		$	1,144		$	1,168		$	1,190
Owner occupied			2,007			2,983			2,693			2,698			810
Multifamily residential			—			—			—			—			—
Nonresidential properties			606			1,265			783			783			785
Construction and land			—			—			—			—			—
Nonmortgage loans:
Business			—			—			—			—			—
Consumer			—			—			—			—			—
Total non-accruing troubled debt restructured loans			3,712			5,370			4,620			4,649			2,785
Total nonaccrual loans		$	6,654		$	9,290		$	11,408		$	9,421		$	7,706
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		$	6,654		$	9,290		$	11,408		$	9,421		$	7,706
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		$	5,707		$	5,738		$	6,559		$	6,594		$	7,108
Owner occupied			3,911			4,424			4,756			4,784			5,439
Multifamily residential			—			—			—			—			—
Nonresidential properties			1,458			1,468			1,958			1,968			4,009
Construction and land			—			—			—			—			—
Nonmortgage loans:
Business			421			454			477			501			516
Consumer			—			—			—			—			—
Total accruing troubled debt restructured loans		$	11,497		$	12,084		$	13,750		$	13,847		$	17,072
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans		$	18,151		$	21,374		$	25,165		$	23,268		$	24,778
Total nonperforming loans to total loans			0.77	%		1.11	%		1.41	%		1.21	%		1.04	%
Total nonperforming assets to total assets			0.69	%		0.98	%		1.23	%		1.06	%		0.95	%
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets			1.87	%		2.25	%		2.72	%		2.61	%		3.05	%

PDL Community Bancorp and Subsidiaries
Average Balance Sheets - Quarter

		For the Three Months Ended June 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		$	843,641			$	11,053				5.26	%		$	709,330			$	9,581				5.42	%
Available-for-sale securities			28,267				104				1.48	%			34,251				90				1.05	%
Other (2)			52,967				226				1.71	%			11,752				33				1.13	%
Total interest-earning assets			924,875				11,383				4.94	%			755,333				9,704				5.15	%
Non-interest-earning assets			33,424												33,568
Total assets		$	958,299											$	788,901
Interest-bearing liabilities:
Savings accounts		$	126,133			$	148				0.47	%		$	128,004			$	123				0.39	%
Interest-bearing demand			84,339				50				0.24	%			74,862				37				0.20	%
Certificates of deposit			448,883				1,847				1.65	%			380,664				1,428				1.50	%
Total deposits			659,355				2,045				1.24	%			583,530				1,588				1.09	%
Advance payments by borrowers			8,045				1				0.05	%			6,596				1				0.06	%
Borrowings			28,595				204				2.86	%			10,648				32				1.21	%
Total interest-bearing liabilities			695,995				2,250				1.30	%			600,774				1,621				1.08	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			89,935				—								89,793				—
Other non-interest-bearing liabilities			5,104				—								3,396				—
Total non-interest-bearing liabilities			95,039				—								93,189				—
Total liabilities			791,034				2,250								693,963				1,621
Total equity			167,265												94,938
Total liabilities and total equity		$	958,299								1.30	%		$	788,901								1.08	%
Net interest income						$	9,133											$	8,083
Net interest rate spread (3)											3.64	%											4.07	%
Net interest-earning assets (4)		$	228,880											$	154,559
Net interest margin (5)											3.96	%											4.29	%
Average interest-earning assets to
interest-bearing liabilities											132.89	%											125.73	%

(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 Six Months Ended June 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		$	830,114			$	21,439				5.21	%		$	685,883			$	18,172				5.34	%
Available-for-sale securities			28,478				209				1.48	%			43,246				273				1.27	%
Other (2)			49,852				445				1.80	%			10,862				52				0.97	%
Total interest-earning assets			908,444				22,093				4.90	%			739,991				18,497				5.04	%
Non-interest-earning assets			34,414												33,229
Total assets		$	942,858											$	773,220
Interest-bearing liabilities:
Savings accounts		$	125,308			$	279				0.45	%		$	127,890			$	245				0.39	%
Interest-bearing demand			80,837				102				0.25	%			73,502				64				0.18	%
Certificates of deposit			439,614				3,597				1.65	%			371,617				2,744				1.49	%
Total deposits			645,759				3,978				1.24	%			573,009				3,053				1.07	%
Advance payments by borrowers			7,313				2				0.06	%			5,766				2				0.07	%
Borrowings			23,409				303				2.61	%			11,795				61				1.04	%
Total interest-bearing liabilities			676,481				4,283				1.28	%			590,570				3,116				1.06	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			94,625				—								84,957				—
Other non-interest-bearing liabilities			5,096				—								3,322				—
Total non-interest-bearing liabilities			99,721				—								88,279				—
Total liabilities			776,202				4,283								678,849				3,116
Total equity			166,656												94,371
Total liabilities and total equity		$	942,858								1.28	%		$	773,220								1.06	%
Net interest income						$	17,810											$	15,381
Net interest rate spread(3)											3.63	%											3.98	%
Net interest-earning assets (4)		$	231,963											$	149,421
Net interest margin (5)											3.95	%											4.19	%
Average interest-earning assets to
interest-bearing liabilities											134.29	%											125.30	%

(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
frank.perez@poncebank.com
718-931-9000

Source: PDL Community Bancorp