UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: (Date of earliest event reported): March 8, 2021

 

PDL Community Bancorp

(Exact name of Registrant as Specified in Its Charter)

 

 

Registrant’s Telephone Number, Including Area Code: (718) 931-9000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

Securities registered pursuant to Section 12(b) of the Act:

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

  

 

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Item 2.02Results of Operations and Financial Condition

On March 8, 2021, PDL Community Bancorp (the “Company”), the holding company for Ponce Bank and Mortgage World Bankers, Inc., issued a press release announcing its financial results with respect to its fourth quarter and year ended December 31, 2020. The Company’s press release is included as Exhibit 99.1 to this report.

The information set forth in this Item 2.02 and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended ( the “Exchange Act”), or otherwise subject to the liabilities of that Section.

Item 9.01Financial Statements and Exhibits.

(d) Exhibits.

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Exhibit 99.1

PDL Community Bancorp Announces 2020 Fourth Quarter Results

New York (March 8, 2021): PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the financial holding company for Ponce Bank (the “Bank”) and Mortgage World Bankers, Inc. (“Mortgage World”), reported net income of $1.6 million, or $0.10 per basic and diluted share, for the fourth quarter of 2020, compared to net income of $4.0 million, or $0.24 per basic and diluted share, for the prior quarter and net loss of ($7.5 million), or ($0.43) per basic and diluted share, for the fourth quarter of 2019.

The Company’s net income for the year ended December 31, 2020 was $3.9 million, or $0.23 per basic and diluted share, compared to net loss of ($5.1 million), or ($0.29) per basic and diluted share, for the year ended December 31, 2019.

Ponce Bank is a federal stock savings association with 13 branches in the New York City metropolitan area, including one in Union City, New Jersey. The Bank is designated a Minority Depository Institution, a Community Development Financial Institution and a certified U.S. Small Business Administration lender. Mortgage World is a mortgage lender operating in five states. As a Federal Housing Administration (“FHA”) approved Title II lender, Mortgage World originates and sells to investors single family loans that are guaranteed by the FHA, as well as conventional mortgages.

Carlos P. Naudon, the Company’s President and CEO, noted “We concluded 2020 as we started it, by investing in the safety of our people and the future of our organization and our communities. Much of this investment consisted of one-time, non-recurring expenditures. Yet, in spite of the COVID-19 pandemic and our one-time investments, we enhanced stakeholder values. During 2020, we completed the Mortgage World acquisition, grew our Company by over $300 million, to $1.4 billion, in assets, and funded the $237.3 million increase in loan portfolio and loans held for sale with a $247.5 million increase in deposits, all while stabilizing our net interest margin to 3.69%. We continued our key investments, spending a combined $3.5 million in one-time expenses for: the implementation of GPS, our Salesforce based CRM ($1.2 million); meeting the needs of Ponce Bankers to maintain their jobs, temporarily enhance their benefits and protect them from COVID-19 pandemic ($1.1 million) and advancing our ability to operate digitally, without paper, ($1.2 million). Additionally, we protected our asset quality by increasing ALLL in response to plausible COVID-19 pandemic repercussions ($2.5 million). We were able to offset these $3.5 million one-time expenses with the $4.2 million net gain recognized from the sale of the real property associated with a relocated branch.”

Steven A. Tsavaris, the Company’s Executive Chairman, added “Our focus on building stakeholder value during 2020 is reflected in our Company’s six-month payback of its $1.8 million acquisition of Mortgage World, the repurchase of 421,824 common shares, the renovation of four more branches and the stabilization of our communities with $85.3 million in PPP loans to almost 1,000 small businesses. Importantly, the accomplishments we laud for 2020 could not have happened without the dedication and commitment of our expanding Ponce Family, to each other, our values and our communities.”

Net Income (Loss)

Net income for the three months ended December 31, 2020 was $1.6 million, compared to $4.0 million net income for the three months ended September 30, 2020. The $2.4 million decrease in net income reflects a $2.5 million decrease in non-interest income, mainly as a result of the absence of the non-recurring $4.2 million gain, net of expenses, recognized from the sale of real property in the third quarter of 2020, offset by a $1.8 million increase in income on mortgage loans held for sale and loan origination fees attributable to Mortgage World operations. Net income was also impacted by a $1.6 million, or 13.2%, increase in non-interest expense, a $710,000, or 5.2%, increase in interest and dividend income, a $663,000, or 57.8%, decrease in provision for income taxes, a $214,000, or 34.5%, decrease in provision for loan losses, and a $113,000, or 4.1%, decrease in interest expense.

Net income for the three months ended December 31, 2020 was $1.6 million, compared to a ($7.5 million) net loss for the three months ended December 31, 2019. The increase in net income reflects a $5.5 million, or 28.3%, decrease in non-interest expense, mainly as a result of the absence of the non-recurring $9.9 million loss on termination of pension plan in the fourth quarter of 2019, offset by an increase of $2.1 million in compensation and benefits, of which $1.5 million was attributable to Mortgage World operations. Net income was also impacted by a $4.1 million increase in non-interest income, mainly as a result of $4.0 million of non-interest income attributable to Mortgage World operations, a $1.6 million, or 12.3%, increase in interest and dividend income, a $541,000, or 17.0%, decrease in interest expense, a $2.4 million increase in provision for income taxes and a $311,000 increase in provision for loan losses.

Net income for the year ended December 31, 2020 was $3.9 million, compared to a ($5.1 million) net loss for the year ended December 31, 2019. The change in net income reflects a $10.6 million, or 393.7%, increase in non-interest income, mainly as a result of a $4.2 million gain, net of expenses, recognized from the sale of real property and $6.2 million of non-interest income attributable to Mortgage World operations. Net income was also impacted by a $2.8 million, or 5.6%, increase in interest and dividend income, a $989,000, or 8.0%, decrease in interest expense, offset by a $2.3 million increase in provision for income taxes, a $2.2 million increase in provision for loan losses in response to the COVID-19 pandemic and a $932,000, or 2.0%, increase in non-interest expense.

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Net Interest Margin

Net interest margin increased by 13 basis points to 3.78% for the three months ended December 31, 2020 from 3.65% for the three months ended September 30, 2020, while the net interest rate spread increased by 17 basis points to 3.50% from 3.33% for the same periods. Average interest-earning assets essentially remained flat at $1.2 billion for the three months ended December 31, 2020 and the three months ended September 30, 2020. The average yield on interest-earning assets increased by 6 basis points to 4.63% from 4.57%, for the same periods. Average interest-bearing liabilities increased by $49.9 million, or 5.7%, to $930.8 million for the three months ended December 31, 2020 from $881.0 million for the three months ended September 30, 2020. The average rate on interest-bearing liabilities decreased by 11 basis points to 1.13% from 1.24% for the same periods.  

Net interest margin increased by 7 basis points to 3.78% for the three months ended December 31, 2020 from 3.71% for the three months ended December 31, 2019, while the net interest rate spread increased by 16 basis points to 3.50% from 3.34% for the same periods. Average interest-earning assets increased by $207.3 million, or 20.29%, partly as a result of $86.1 million in average outstanding PPP loans, to $1.2 billion for the three months ended December 31, 2020 from $1.0 billion for the three months ended December 31, 2019. The average yield on interest-earning assets decreased by 32 basis points to 4.63% from 4.95%, for the same periods. Average interest-bearing liabilities increased by $148.7 million, or 19.01%, to $930.8 million, for the three months ended December 31, 2020 from $782.1 million for the three months ended December 31, 2019. The average rate on interest-bearing liabilities decreased by 48 basis points to 1.13% from 1.61% for the same periods.

Net interest margin decreased by 10 basis points to 3.69% for the year ended December 31, 2020 from 3.79% for the year ended December 31, 2019, while the net interest rate spread decreased by 3 basis points to 3.37% from 3.40% for the same periods. Average interest-earning assets increased by $132.5 million, or 13.16%, partly as a result of $50.6 million in average outstanding PPP loans, to $1.1 billion, for the year ended December 31, 2020 from $1.0 billion for the year ended December 31, 2019. The average yield on interest-earning assets decreased by 34 basis points to 4.68% from 5.02%, for the same periods. Average interest-bearing liabilities increased by $104.1 million, or 13.68%, to $865.1 million, for the year ended December 31, 2020 from $761.0 million for the year ended December 31, 2019. The average rate on interest-bearing liabilities decreased by 31 basis points to 1.31% from 1.62% for the same periods.

Non-interest Income

Total non-interest income decreased $2.5 million to $4.8 million for the three months ended December 31, 2020 from $7.3 million for the three months ended September 30, 2020. The decrease in non-interest income for the three months ended December 31, 2020 compared to the three months ended September 30, 2020 was due to the effect of a non-recurring $4.4 million gain on the sale of real property recognized in the third quarter of 2020, offset by $1.8 million in gain on sale of mortgage loans, loan origination fees, brokerage commissions and other non-interest income attributable to Mortgage World operations during the quarter. The decrease in non-interest income also resulted from decreases of $106,000 in other non-interest income and $64,000 in late and prepayment charges related to mortgage loans related to the Bank offset by increases of $284,000 in brokerage commissions and $27,000 in service charges and fees related to the Bank.

Total non-interest income increased $4.1 million to $4.8 million for the three months ended December 31, 2020 from $665,000 for the three months ended December 31, 2019. The increase in non-interest income for the three months ended December 31, 2020 compared to the three months ended December 31, 2019 was due to $4.0 million in gain on sale of mortgage loans, loan origination fees, brokerage commissions and other non-interest income attributable to Mortgage World operations. The increase in non-interest income also resulted from an increase of $283,000 in brokerage commissions related to the Bank, offset by decreases of $126,000 in late and prepayment charges on mortgage loans and service charges and fees and $35,000 in other non-interest income related to the Bank.

Total non-interest income increased $10.6 million to $13.2 million for the year ended December 31, 2020 from $2.7 million for the year ended December 31, 2019. The increase in non-interest income for the year ended December 31, 2020 compared to the year ended December 31, 2019 was due to a $4.2 million gain, net of expenses, on the sale of real property, combined with $6.2 million in gain on sale of mortgage loans, loan origination fees, brokerage commissions and other non-interest income attributable to Mortgage World operations. The increase in non-interest income also resulted from $429,000 in other non-interest income and $228,000 in brokerage commissions related to the Bank, offset by decreases of $397,000 in late and prepayment charges related to mortgage loans and $79,000 in service charges and fees related to the Bank.

Non-interest Expense

Total non-interest expense increased $1.6 million, or 13.2%, to $14.0 million for the three months ended December 31, 2020, from $12.3 million for the three months ended September 30, 2020. The increase in non-interest expense was primarily attributable to an increase of $1.3 million in compensation and benefits expense, of which $698,000 was attributable to Mortgage World operations. Included in non-interest expense for the three months ended December 31, 2020 were $266,000 of expenses incurred as a result of the COVID-19 pandemic.

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Total non-interest expense decreased $5.5 million, or 28.3%, to $14.0 million for the three months ended December 31, 2020, compared to $19.5 million for the three months ended December 31, 2019. The decrease in non-interest expense was attributable to the absence of a non-recurring $9.9 million loss on the termination of the pension plan related to the Bank in the fourth quarter of 2019, offset by $2.3 million of non-interest expense attributable to Mortgage World operations, of which $1.5 million was related to compensation and benefits. The decrease in non-interest expense was further offset by increases attributable to the Bank of $605,000 in compensation and benefits, $491,000 in occupancy and equipment, $483,000 in professional fees, $296,000 in other non-interest expense and $178,000 in data processing expenses. Included in non-interest expense for the three months ended December 31, 2020 were $266,000 of expenses incurred as a result of the COVID-19 pandemic. Excluding the impact of the $2.3 million in non-interest expense related to Mortgage World operations in the fourth quarter of 2020 and the $9.9 million loss on termination of pension plan related to the Bank recognized in the fourth quarter of 2019, total non-interest expense would have increased $2.1 million, or 22.3%, to $11.7 million for the three months ended December 31, 2020 compared to $9.5 million for the three months ended December 31, 2019.

Total non-interest expense increased $932,000, or 2.0%, to $47.5 million for the year ended December 31, 2020, from $46.6 million for the year ended December 31, 2019. The increase in non-interest expense was primarily attributable to $3.9 million in non-interest expense related to Mortgage World operations, of which $2.3 million was related to compensation and benefits. The remainder of the increases in non-interest expense were $2.8 million in professional fees, $1.6 million in occupancy and equipment expense due to new software licenses and security services, $838,000 in compensation and benefits, $686,000 in other operating expenses mainly due to employment agency fees and collection fees, $544,000 in data processing expenses as a result of system enhancements and implementation charges related to new software upgrades and $319,000 in marketing and promotional expenses attributable to the Bank. The increases in non-interest expense were offset by the absence of the non-recurring $9.9 million loss on the termination of the pension plan related to the Bank, recognized in the fourth quarter of 2019. The increase of $2.8 million in professional fees was mainly attributable to increases in consulting fees of $1.8 million and professional services of $1.0 million related to the document imaging project adopted in late 2019. Included in non-interest expense for the year ended December 31, 2020 is $1.1 million of expenses incurred as a result of the COVID-19 pandemic. Excluding the impact of the $3.9 million in non-interest expense related to Mortgage World for the year ended December 31, 2020 and the $9.9 million loss on termination of pension plan related to the Bank recognized in the fourth quarter of 2019, total non-interest expense wound have increased $7.0 million, or 19.0%, to $43.7 million for the year ended December 31, 2020 compared to $36.7 million for the year ended December 31, 2019.

Asset Quality

Total non-performing assets were $11.7 million, or 0.86% of total assets, at December 31, 2020, an increase of $705,000 from $11.0 million, or 0.86% of total assets, at September 30, 2020 and an increase of $85,000 from $11.6 million, or 1.10% of total assets, at December 31, 2019. Comparing non-performing assets at December 31, 2020 to September 30, 2020, total non-accruals inclusive of troubled debt restructured (“TDR”) loans increased by $736,000 in multifamily loans and $24,000 in 1-4 family residential loans and decreased by $55,000 in nonresidential loans. Comparing non-performing assets at December 31, 2020 to December 31, 2019, total non-accruals inclusive of TDR loans increased by $946,000 in multifamily loans, $229,000 in nonresidential loans and $28,000 in 1-4 family residential loans and decreased by $1.1 million in construction and land loans.

The Company continues to assess the economic impact of the COVID-19 pandemic on borrowers and believes that it is likely that the pandemic will be a detriment to their ability to repay in the short-term and that the likelihood of long-term detrimental effects will depend significantly on the resumption of normalized economic activities, a factor not yet determinable. The allowance for loan losses was $14.9 million, or 1.27% of total gross loans (total gross loans include $85.3 million of PPP loans) at December 31, 2020, compared to $14.4 million, or 1.28% of total gross loans (total gross loans include $86.2 million of PPP loans) at September 30, 2020, and $12.3 million, or 1.28% of total gross loans, at December 31, 2019. Excluding PPP loans, the allowance for loan losses was 1.37% of total gross loans at December 31, 2020 and 1.39% of total gross loans at September 30, 2020. Net recoveries totaled $83,000 for the three months ended December 31, 2020, $1,000 for the three months ended September 30, 2020 and $74,000 for the quarter ended December 31, 2019.

Through December 31, 2020, 412 loans aggregating $380.3 million had requested forbearance primarily consisting of the deferral of principal, interest, and escrow payments for a period of three months. Of those 412 loans, 339 loans aggregating $306.5 million are no longer in deferment and continue performing and 73 loans in the amount of $73.8 million remained in deferment. Of the 73 loans in deferment, 72 loans in the amount of $73.5 million are in renewed forbearance and one loan in the amount of $297,000 is in its initial forbearance. All of these loans had been performing in accordance with their contractual obligations prior to the granting of the initial forbearance. The Company actively monitors the business activities of borrowers in forbearance and seeks to determine their capacity to resume payments as contractually obligated upon the termination of the forbearance period. The initial and extended forbearances are short-term modifications made on a good faith basis in response to the COVID-19 pandemic and in furtherance of governmental policies.

 

 

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Balance Sheet

Total assets increased $301.5 million, or 28.6%, to $1.4 billion at December 31, 2020 from $1.1 billion at December 31, 2019. The increase in total assets is attributable to increases in net loans receivable of $202.9 million, including $85.3 million in PPP loans, cash and cash equivalents of $44.4 million, mortgage loans held for sale, at fair value, of $34.4 million, other assets of $11.0 million, accrued interest receivable of $7.4 million, placements with banks of $2.7 million, held-to-maturity securities of $1.7 million, deferred taxes of $932,000 and FHLBNY stock of $691,000. The increase in total assets was reduced by decreases in available-for-sale securities of $4.0 million and premises and equipment, net, of $701,000.

Cash and cash equivalents increased $44.4 million, or 160.4%, to $72.1 million at December 31, 2020, compared to $27.7 million at December 31, 2019. The increase in cash and cash equivalents was primarily the result of increases of $247.5 million in net deposits, of which $43.5 million is related to net PPP funding, $20.8 million in advances of warehouse lines of credit, $17.8 million in maturities and/or calls of available-for-sale securities, $12.9 million in net advances from FHLBNY and $4.7 million in proceeds from the sale of real property. The increase in cash and cash equivalents was offset by increases of $209.4 million in net loans receivable including $85.3 million in PPP loans, $23.8 million of mortgage loans held for sale, at fair value, $13.6 million in purchases of available-for-sale securities, $4.7 million in purchases of shares held as treasury stock, $2.7 million in placement with banks, $1.9 million in purchases of premises and equipment, $1.7 million in a purchase of held-to-maturity securities and a $1.0 million, net of cash acquired, related to the acquisition of Mortgage World.

Mortgage loans held for sale, at fair value, at December 31, 2020 increased $34.4 million to $35.4 million from $ 1.0 million at December 31, 2019. The increase was partly related to the acquisition of Mortgage World, which had $10.5 million of mortgage loans held for sale as of the date of the acquisition.

Net loans receivable at December 31, 2020 increased $202.9 million, or 21.2%, to $1.2 billion from $ 955.7 million at December 31, 2019. The increase was primarily due to increases of $84.1 million, or 772.9%, in business loans, of which $85.3 million related to PPP loans, $57.2 million, or 22.8%, in multifamily residential loans, $25.3 million in consumer loans, mostly related to the partnership with Grain Technologies, LLC (the product, Grain, is a mobile application geared to the underbanked and new generations entering the financial services market that uses non-traditional underwriting methodologies), $21.2 million, or 5.3%, in 1-4 family residential loans, $11.7 million, or 5.6%, in nonresidential properties loans, and $6.5 million, or 6.6%, in construction and land loans. The increase in net loans receivable was offset by a decrease of $513,000, or 26.0%, in net deferred loan origination costs. The increase in the allowance for losses on loans of $2.5 million, substantially related to the COVID-19 pandemic, resulted in a decrease in net loans receivable.

Total deposits increased $247.5 million, or 31.7%, to $1.0 billion at December 31, 2020 from $782.0 million at December 31, 2019. The increase in deposits was mainly attributable to increases of $149.7 million, or 52.9%, in NOW, money market, reciprocal deposits and savings accounts, $80.3 million, or 73.3%, in demand deposits, of which $43.5 million is related to net PPP funding and $17.5 million, or 4.5 %, in total certificates of deposit, which includes brokered certificates of deposit and listing service deposits. The $149.7 million increase in NOW, money market, reciprocal deposits and savings accounts was mainly attributable to increases of $83.7 million, or 175.6%, in reciprocal deposits, $49.5 million, or 57.1%, in money market accounts, $10.1 million, or 8.7%, in savings accounts and $6.4 million, or 19.6%, in NOW/IOLA accounts.

Net advances from the FHLBNY increased $12.9 million, or 12.3%, to $117.3 million at December 31, 2020 from $104.4 million at December 31, 2019.

Due to the acquisition of Mortgage World, the Company maintains two warehouse lines of credit totaling $32.2 million with financial institutions for the purpose of funding the originations and sale of residential mortgages. At December 31, 2020, the Company utilized $30.0 million for funding of loans held for sale.

Total stockholders’ equity increased $1.1 million, or 0.7%, to $159.5 million at December 31, 2020 from $158.4 million December 31, 2019. The $1.1 million increase in stockholders’ equity was mainly attributable to $3.9 million in net income, $1.4 million related to restricted stock units and stock options, $482,000 related to the Company’s Employee Stock Ownership Plan and $115,000 related to unrealized gains on available-for-sale securities offset by an increase of $4.7 million in stock repurchases.

The Company adopted a share repurchase program effective March 25, 2019 which expired on September 24, 2019. Under the repurchase program, the Company was authorized to repurchase up to 923,151 shares of the Company’s stock, or approximately 5% of the Company’s then current issued and outstanding shares. On November 13, 2019, the Company adopted a second share repurchase program. Under this second program, the Company was authorized to repurchase up to 878,835 shares of the Company’s stock, or approximately 5% of the Company’s then current issued and outstanding shares. The Company’s second share repurchase program was terminated on March 27, 2020 in response to the uncertainty related to the unfolding COVID-19 pandemic. On June 1, 2020, the Company adopted a third share repurchase program. Under this third program, the Company was authorized to repurchase up to 864,987 shares of the Company’s stock, or approximately 5% of the Company’s then current issued and outstanding shares. The Company’s third share repurchase program was terminated on November 30, 2020. On December 14, 2020, the Company adopted a

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fourth share repurchase program. Under this fourth program, the Company is authorized to repurchase up to 852,302 shares of the Company’s stock, or approximately 5% of the Company’s then current issued and outstanding shares.  The fourth repurchase program may be suspended or terminated at any time without prior notice, and it will expire no later than June 13, 2021.

 

As of December 31, 2020, the Company had repurchased a total of 1,523,853 shares under the repurchase programs at a weighted average price of $13.43 per share, of which 1,337,059 are reported as treasury stock. Of the 1,523,853 shares repurchased, a total of 186,960 shares have been used for grants given to directors, executive officers and non-executive officers under the Company’s 2018 Long-Term Incentive Plan pursuant to restricted stock units which vested on December 4, 2020 and 2019. Of these 186,960 shares, 166 shares were retained to satisfy a recipient’s taxes and other withholding obligations and these shares remain as part of treasury stock.

About PDL Community Bancorp

PDL Community Bancorp is the financial holding company for Ponce Bank and Mortgage World Bankers, Inc. Ponce Bank is a federally chartered savings association. Ponce Bank is designated a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent from alternative funding sources and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 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. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises as well as mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock. Mortgage World Bankers, Inc. is a mortgage lender operating in five states. As a Federal Housing Administration (“FHA”)-approved Title II lender, Mortgage World Bankers, Inc. originates and sells to investors single family mortgage loans guaranteed by the FHA, as well as conventional mortgages.

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; the anticipated impact of the COVID-19 novel coronavirus pandemic and the Company’s attempts at mitigation; 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 Annual Report on Form 10-K 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.

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Use of Non-GAAP Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The Company’s management believes that the supplemental non-GAAP information, which consists of the tangible common equity, adjusted net income and adjusted earnings (loss) per share is utilized by market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.  

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PDL Community Bancorp and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)

 

 

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PDL Community Bancorp and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share data)

 

 

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PDL Community Bancorp and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share data)

*Indicates more than 500%.

 

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PDL Community Bancorp and Subsidiaries

Key Metrics

 

 

 

 

 

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PDL Community Bancorp and Subsidiaries

Loan Portfolio

 

 

 

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PDL Community Bancorp and Subsidiaries

Deposits

 

 

 

 

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PDL Community Bancorp and Subsidiaries

Nonperforming Assets

 

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PDL Community Bancorp and Subsidiaries

Average Balance Sheets

 

 

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PDL Community Bancorp and Subsidiaries

Average Balance Sheets

 

 

 

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PDL Community Bancorp and Subsidiaries

Other Data

 

 

 

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