/EIN News/ -- NEW YORK, March 20, 2019 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $2.7 million for the year ended December 31, 2018 compared to a net loss of $4.4 million for the year ended December 31, 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 a two-tier mutual holding company structure with the Company as the mid-tier stock form holding company. Accordingly, the Company’s financial results for periods prior to September 30, 2017 are solely those of Ponce Bank. The Company’s results of operations for 2017 include a one-time pre-tax contribution by the Company of 609,279 shares of common stock, valued at $6.1 million, and $200,000 in cash, to establish The Ponce De Leon Foundation (the “Foundation”).

The Company reported net income of $635,000 for the quarter ended December 31, 2018 compared to a net loss of $2.9 million for the same period in 2017. Basic and diluted earnings per share for the three months ended December 31, 2018 were both $0.04.

Carlos P. Naudon, President and CEO, remarked that “we are deriving significant benefits from continuing to focus on organic growth while investing in enhancing our customers’ experiences.” Executive Chairman Steven A. Tsavaris noted that “our investments leading up to becoming a public company have contributed to a reduction in the growth of the costs of being a public company.”

Net Interest Income

Net interest income was $36.7 million for the year ended December 31, 2018, up $4.5 million, or 13.9%, from $32.2 million for the year ended December 31, 2017. The increase in net interest income for the year ended December 31, 2018 compared to the year ended December 31, 2017 reflects a $7.2 million, or 18.4%, increase in total interest and dividend income offset by an increase of $2.7 million, or 39.9%, in total interest expense. 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 $131.5 million, or 17.9%, for the year ended December 31, 2018 compared to the same period in 2017. The net interest rate spread and net interest margin was 3.57% and 3.92%, respectively, for the year ended December 31, 2018 compared to 3.76% and 4.02%, respectively, for the same period in 2017. The average yield on loans decreased to 5.18% for the year ended December 31, 2018 from 5.19% for the same period in 2017. The increase in interest expense is due to an increase in average interest-bearing liabilities of $81.5 million, or 13.3%, for the year ended December 31, 2018 compared to the same period in 2017. The cost of interest-bearing liabilities increased to 1.36% for the year ended December 31, 2018 from 1.11% for the same period in 2017.

Net interest income was $9.6 million for the quarter ended December 31, 2018, up $1.1 million, or 13.3%, from $8.5 million for the quarter ended December 31, 2017. The increase in net interest income for the quarter ended December 31, 2018 compared to the same period in 2017 reflects a $2.0 million, or 19.4%, increase in total interest and dividend income offset by an increase of $869,000, or 47.0%, in total interest expense. 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 $108.7 million, or 13.5%, for the quarter ended December 31, 2018 compared to the same period in 2017. The net interest rate spread and net interest margin was 3.52% and 3.90%, respectively, for the quarter ended December 31, 2018 compared to 3.58% and 3.88%, respectively, for the same period in 2017. The average yield on loans increased to 5.21% for the quarter ended December 31, 2018 from 4.96% for the same period in 2017. The increase in interest expense is due to an increase in average interest-bearing liabilities of $90.0 million, or 14.1%, for the quarter ended December 31, 2018 compared to the same period in 2017. The cost of interest-bearing liabilities increased to 1.48% for the quarter ended December 31, 2018 from 1.15% for the same period in 2017.

Noninterest Income

Noninterest income was $2.9 million for the year ended December 31, 2018, down $166,000, or 5.4%, from $3.1 million for the same period in 2017. The decrease is mainly attributed to a decrease in late fees and prepayment charges related to mortgage loans of $204,000, a decrease in service charges and brokerage commission of $78,000, offset by an increase in other fees of $116,000.

Noninterest income was $815,000 for the quarter ended December 31, 2018, up $121,000, or 17.4%, from $694,000 for the same period in 2017. The increase is mainly attributed to an increase in late fees and prepayment charges related to mortgage loans of $71,000 and other fees of $43,000.

Noninterest Expense

Noninterest expense was $34.6 million for the year ended December 31, 2018, down $2.0 million, or 5.5%, from $36.6 million for the same period in 2017. The decrease is mainly attributed to the absence of a one-time pre-tax contribution by the Company in 2017 of 609,279 shares of common stock, valued at $6.1 million, and $200,000 in cash, in connection with the establishment of the Foundation. This decrease was partially offset by increases in professional fees of $2.1 million, compensation and benefits of $830,000, occupancy expense of $848,000, and office supplies, telephone and postage of $206,000.

Noninterest expense was $9.1 million for the quarter ended December 31, 2018, up $338,000, or 3.9%, from $8.8 million for the same period in 2017. The increase is mainly attributed to increases in professional fees of $603,000 and occupancy expenses of $291,000, which was offset by a decrease in compensation and benefits of $733,000.

Asset Quality

Nonperforming assets decreased to $6.8 million, or 0.64% of total assets at December 31, 2018 from $11.4 million, or 1.23%, of total assets at December 31, 2017. The decrease is mainly attributable to a decrease in nonaccruals of $4.6 million which includes a decrease of $2.2 million in owner-occupied one-to-four family residences.

Provision for loan losses was $215,000 for the quarter ended December 31, 2018, compared to $1.2 million for the same period in 2017. Provision for loan losses was $1.2 million for the year ended December 31, 2018, compared to $1.7 million for the same period in 2017. The allowance for loan losses was $12.7 million, or 1.36%, of total loans at December 31, 2018, compared to $11.1 million, or 1.37%, of total loans at December 31, 2017. Net recoveries totaled $78,000 for the quarter ended December 31, 2018, compared to  net charge-offs of $1.3 million for the same period in 2017.  Net recoveries totaled $339,000 for the year ended December 31, 2018, or 0.04%, of average loans outstanding, compared to net charge offs of $850,000 for the year ended December 31, 2017, or 0.12%, of average loans outstanding.

Balance Sheet

Total assets increased $134.4 million, or 14.5%, to $1.1 billion at December 31, 2018 from $925.5 million at December 31, 2017. Net loans increased $119.8 million, or 15.0%, to $918.5 million at December 31, 2018 from $798.7 million at December 31, 2017. The increase in loans was primarily attributed to an increase of $126.1 million in mortgage loans in the investor-owned one-to-four family residential, multifamily, nonresidential, and construction and land and $2.8 million increase in business loans. The increase was offset by a decrease of $8.1 million in owner-occupied one-to-four family residential loans.

Total deposits increased $95.8 million, or 13.4%, to $809.8 million at December 31, 2018 from $714.0 million at December 31, 2017. The increase in deposits was primarily attributed to increases in certificates of deposits of $14.0 million, in demand deposits of $12.9 million, and in money market deposits of $69.7 million.

Total stockholders’ equity was $169.2 million at December 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 December 31, 2018. The Bank’s total capital to risk-weighted asset ratio was 19.39%, the tier 1 capital to risk-weighted assets ratio and the common equity tier 1 capital ratio were both 18.14%, the tier 1 capital to total assets ratio was 13.66% at December 31, 2018 compared to 20.73%, 19.48%, and 14.67% at December 31, 2017, respectively.

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)

	December 31,				September 30,				June 30,				March 31,				December 31,
	2018				2018				2018				2018				2017
ASSETS
Cash and due from banks:
Cash	$	45,225			$	5,494			$	7,088			$	6,570			$	24,746
Interest-bearing deposits in banks		24,553				16,895				42,094				52,409				34,978
Total cash and cash equivalents		69,778				22,389				49,182				58,979				59,724
Available-for-sale securities, at fair value		27,144				24,177				28,144				28,422				28,897
Loans receivable, net of allowance for loan losses		918,509				893,884				850,426				823,014				798,703
Accrued interest receivable		3,795				3,609				3,350				3,202				3,335
Premises and equipment, net		31,135				29,293				28,366				27,684				27,172
Federal Home Loan Bank Stock (FHLB), at cost		2,915				2,621				2,617				1,673				1,511
Deferred tax assets		3,811				4,118				3,805				3,801				3,909
Other assets		2,814				2,620				2,923				2,848				2,271
Total assets	$	1,059,901			$	982,711			$	968,813			$	949,623			$	925,522
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	809,758			$	764,792			$	753,255			$	752,267			$	713,985
Accrued interest payable		63				75				141				61				42
Advance payments by borrowers for taxes and insurance		6,037				7,219				5,491				6,999				5,025
Advances and borrowings		69,404				37,775				37,775				20,000				36,400
Other liabilities		5,467				5,706				5,573				4,582				5,285
Total liabilities		890,729				815,567				802,235				783,909				760,737
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 December 31, 2018		185				185				185				185				185
Additional paid-in-capital		84,581				84,557				84,488				84,419				84,351
Retained earnings		98,813				96,896				96,495				95,796				94,855
Accumulated other comprehensive loss		(8,135	)			(8,101	)			(8,076	)			(8,052	)			(7,851	)
Unearned Employee Stock Ownership Plan (ESOP) shares		(6,272	)			(6,393	)			(6,514	)			(6,634	)			(6,755	)
Total stockholders' equity		169,172				167,144				166,578				165,714				164,785
Total liabilities and stockholders' equity	$	1,059,901			$	982,711			$	968,813			$	949,623			$	925,522

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

		For the Quarters Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2018				2018				2018				2018				2017
Interest and dividend income:
Interest on loans receivable		$	12,026			$	11,483			$	11,053			$	10,386			$	10,106
Interest and dividends on investment securities and FHLB stock			300				254				330				324				221
Total interest and dividend income			12,326				11,737				11,383				10,710				10,327
Interest expense:
Interest on certificates of deposit			2,078				1,942				1,847				1,750				1,599
Interest on other deposits			320				272				199				185				168
Interest on borrowings			321				276				204				98				83
Total interest expense			2,719				2,490				2,250				2,033				1,850
Net interest income			9,607				9,247				9,133				8,677				8,477
Provision for loan losses			215				602				337				94				1,219
Net interest income after provision for loan losses			9,392				8,645				8,796				8,583				7,258
Noninterest income:
Service charges and fees			217				191				214				223				224
Brokerage commissions			108				286				42				96				94
Late and prepayment charges			278				65				52				211				207
Other			212				172				216				355				169
Total noninterest income			815				714				524				885				694
Noninterest expense:
Compensation and benefits			4,371				4,547				4,563				4,458				5,104
Occupancy expense			1,879				1,585				1,717				1,491				1,588
Data processing expenses			357				342				300				408				293
Direct loan expenses			217				265				152				155				171
Insurance and surety bond premiums			94				87				99				89				64
Office supplies, telephone and postage			349				308				352				300				317
FDIC deposit insurance assessment			70				68				66				68				4
Charitable foundation contributions			—				—				—				—				—
Professional fees			1,025				978				529				623				422
Directors fees			69				69				70				69				71
Marketing and promotional expenses			68				40				55				52				79
Regulatory dues			60				63				58				56				18
Other operating expenses			515				417				494				490				605
Total noninterest expense			9,074				8,769				8,455				8,259				8,736
Income (loss) before income taxes			1,133				590				865				1,209				(784	)
Provision for income taxes			498				188				166				268				2,081
Net income (loss)		$	635			$	402			$	699			$	941			$	(2,865	)
Earnings per share:
Basic		$	0.04			$	0.02			$	0.04			$	0.05			$	(0.16	)
Diluted		$	0.04			$	0.02			$	0.04			$	0.05			$	(0.16	)

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

		For the Years Ended December 31,
		2018				2017				Variance $				Variance %
Interest and dividend income:
Interest on loans receivable		$	44,948			$	38,172			$	6,776				17.75	%
Interest and dividends on investment securities and FHLB stock			1,208				817				391				47.86	%
Total interest and dividend income			46,156				38,989				7,167				18.38	%
Interest expense:
Interest on certificates of deposit			7,617				5,917				1,700				28.73	%
Interest on other deposits			974				656				318				48.48	%
Interest on borrowings			899				210				689				328.10	%
Total interest expense			9,490				6,783				2,707				39.91	%
Net interest income			36,666				32,206				4,460				13.85	%
Provision for loan losses (recovery)			1,249				1,716				(467	)			(27.21	%)
Net interest income after provision for loan losses			35,417				30,490				4,927				16.16	%
Noninterest income:
Service charges and fees			845				909				(64	)			(7.04	%)
Brokerage commissions			533				547				(14	)			(2.56	%)
Late and prepayment charges			606				810				(204	)			(25.19	%)
Other			954				838				116				13.84	%
Total noninterest income			2,938				3,104				(166	)			(5.35	%)
Noninterest expense:
Compensation and benefits			17,939				17,109				830				4.85	%
Occupancy expense			6,673				5,825				848				14.56	%
Data processing expenses			1,408				1,470				(62	)			(4.22	%)
Direct loan expenses			788				739				49				6.63	%
Insurance and surety bond premiums			369				269				100				37.17	%
Office supplies, telephone and postage			1,309				1,103				206				18.68	%
FDIC deposit insurance assessment			272				250				22				8.80	%
Charitable foundation contributions			—				6,293				(6,293	)			100.00	%
Professional fees			3,154				1,060				2,094				197.55	%
Directors fees			277				289				(12	)			(4.15	%)
Marketing and promotional expenses			215				308				(93	)			(30.19	%)
Regulatory dues			238				262				(24	)			(9.16	%)
Other operating expenses			1,915				1,580				335				21.20	%
Total noninterest expense			34,557				36,557				(2,000	)			(5.47	%)
Income (loss) before income taxes			3,798				(2,963	)			6,761				(228.18	%)
Provision for income taxes			1,121				1,424				(303	)			(21.28	%)
Net income (loss)		$	2,677			$	(4,387	)		$	7,064				(161.02	%)
Earnings per share:
Basic		$	0.15			$	(0.16	)		N/A				N/A
Diluted		$	0.15			$	(0.16	)		N/A				N/A

PDL Community Bancorp and Subsidiaries
Key Metrics

		At or For the Years Ended December 31,
		2018				2017				2016				2015				2014
Performance Ratios:
Return on average assets			0.28	%			(0.51	%)			0.20	%			0.35	%			0.35	%
Return on average equity			1.60	%			(3.52	%)			1.53	%			2.76	%			2.80	%
Net interest rate spread (1)			3.57	%			3.76	%			3.82	%			3.96	%			4.26	%
Net interest margin (2)			3.92	%			4.02	%			4.02	%			4.14	%			4.42	%
Noninterest expense to average assets			3.56	%			4.28	%			3.84	%			3.67	%			3.59	%
Efficiency ratio (3)			87.26	%			103.53	%			92.15	%			86.23	%			79.34	%
Average interest-earning assets to average interest- bearing liabilities			134.52	%			130.35	%			123.84	%			121.66	%			119.27	%
Average equity to average assets			17.26	%			14.58	%			12.81	%			12.78	%			12.58	%
Capital Ratios:
Total capital to risk weighted assets (bank only)			19.39	%			20.73	%			19.21	%			20.72	%			20.32	%
Tier 1 capital to risk weighted assets (bank only)			18.14	%			19.48	%			17.96	%			19.46	%			19.06	%
Common equity Tier 1 capital to risk-weighted assets (bank only)			18.14	%			19.48	%			17.96	%			19.46	%		N/A
Tier 1 capital to average assets (bank only)			13.66	%			14.67	%			13.32	%			13.67	%			13.46	%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans			1.36	%			1.37	%			1.57	%			1.64	%			1.71	%
Allowance for loan losses as a percentage of nonperforming loans			186.77	%			97.05	%			132.15	%			99.78	%			58.79	%
Net (charge-offs) recoveries to average outstanding loans during the year			0.04	%			(0.12	%)			0.13	%			(0.06	%)			(0.30	%)
Non-performing loans as a percentage of total loans			0.73	%			1.41	%			1.19	%			1.65	%			2.91	%
Non-performing loans as a percentage of total assets			0.64	%			1.23	%			1.04	%			1.35	%			2.28	%
Total non-performing assets as a percentage of total assets			0.64	%			1.23	%			1.04	%			1.36	%			2.30	%
Total non-performing assets, accruing loans past due 90 days or more,  and accruing troubled debt restructured loans as a percentage of total assets			1.63	%			2.72	%			3.50	%			4.19	%			5.33	%
Other:
Number of offices		14				14				14				14				14
Number of full-time equivalent employees		181				177				174				175				164

(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.

PDL Community Bancorp and Subsidiaries
Loan Portfolio

		At December 31,
		2018								2017								2016								2015								2014
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	303,197				32.61	%		$	287,158				35.51	%		$	227,409				34.90	%		$	203,239				35.25	%		$	190,726				34.54	%
Owner-Occupied			92,788				9.98	%			100,854				12.47	%			97,631				14.98	%			106,053				18.39	%			105,222				19.05	%
Multifamily residential			232,509				25.01	%			188,550				23.31	%			158,200				24.28	%			122,836				21.30	%			110,978				20.10	%
Nonresidential properties			196,917				21.18	%			151,193				18.70	%			121,500				18.64	%			106,462				18.46	%			111,806				20.24	%
Construction and land			87,572				9.42	%			67,240				8.31	%			30,340				4.66	%			22,883				3.97	%			18,707				3.39	%
Total mortgage loans			912,983				98.20	%			794,995				98.30	%			635,080				97.46	%			561,473				97.37	%			537,439				97.32	%
Nonmortgage loans:
Business loans			15,710				1.69	%			12,873				1.59	%			15,719				2.41	%			14,350				2.49	%			14,206				2.57	%
Consumer loans			1,068				0.11	%			886				0.11	%			843				0.13	%			788				0.14	%			614				0.11	%
Total nonmortgage loans			16,778				1.80	%			13,759				1.70	%			16,562				2.54	%			15,138				2.63	%			14,820				2.68	%
Total loans			929,761				100.00	%			808,754				100.00	%			651,642				100.00	%			576,611				100.00	%			552,259				100.00	%
Net deferred loan origination costs			1,407								1,020								711								535								479
Allowance for losses on loans			(12,659	)							(11,071	)							(10,205	)							(9,484	)							(9,449	)
Loans, net		$	918,509							$	798,703							$	642,148							$	567,662							$	543,289

PDL Community Bancorp and Subsidiaries
Nonperforming Assets

		At December 31,
		2018				2017				2016				2015				2014
		(Dollars in thousands)
Nonaccrual loans:
Mortgage loans:
1-4 family residential
Investor owned		$	205			$	1,034			$	809			$	1,635			$	2,721
Owner occupied			1,092				2,624				1,463				1,078				1,036
Multifamily residential			16				521				—				—				2,957
Nonresidential properties			706				1,387				1,614				1,660				72
Construction and land			1,115				1,075				1,145				637				259
Nonmortgage loans:
Business			—				147				22				13				14
Consumer			—				—				—				—				—
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)		$	3,134			$	6,788			$	5,053			$	5,023			$	7,059
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned		$	1,053			$	1,144			$	1,240			$	2,599			$	4,585
Owner occupied			1,987				2,693				646				1,055				1,923
Multifamily residential			—				—				—				—				—
Nonresidential properties			604				783				783				828				2,427
Construction and land			—				—				—				—				—
Nonmortgage loans:
Business			—				—				—				—				79
Consumer			—				—				—				—				—
Total non-accruing troubled debt restructured loans			3,644				4,620				2,669				4,482				9,014
Total nonaccrual loans		$	6,778			$	11,408			$	7,722			$	9,505			$	16,073
Real estate owned:
Mortgage loans:
1-4 family residential
Investor owned		$	—			$	—			$	—			$	—			$	—
Owner occupied
Multifamily residential			—				—				—				—				—
Nonresidential properties			—				—				—				—				—
Construction and land			—				—				—				76				162
Nonmortgage loans:
Business			—				—				—				—				—
Consumer			—				—				—				—				—
Total real estate owned			—				—				—				76				162
Total nonperforming assets		$	6,778			$	11,408			$	7,722			$	9,581			$	16,235
Accruing loans past due 90 days or more:
Mortgage loans:
1-4 family residential
Investor owned		$	—			$	7			$	—			$	—			$	—
Owner occupied			—				—				—				—				—
Multifamily residential			—				—				—				—				—
Nonresidential properties			—				—				—				—				126
Construction and land			—				—				—				—				1,257
Nonmortgage loans:
Business			—				—				—				—				600
Consumer			—				—				—				—				—
Total accruing loans past due 90 days or more		$	—			$	7			$	—			$	—			$	1,983
Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned		$	5,192			$	6,559			$	6,422			$	6,579			$	5,179
Owner occupied			3,456				4,756				7,271				8,326				9,661
Multifamily residential			—				—				—				—				—
Nonresidential properties			1,438				1,958				4,066				4,186				3,590
Construction and land			—				—				—				—				—
Nonmortgage loans:
Business			374				477				593				814				970
Consumer			—				—				—				—				—
Total accruing troubled debt restructured loans		$	10,460			$	13,750			$	18,352			$	19,905			$	19,400
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans		$	17,238			$	25,165			$	26,074			$	29,486			$	37,618
Total nonperforming loans to total loans			0.73	%			1.41	%			1.19	%			1.65	%			2.91	%
Total nonperforming assets to total assets			0.64	%			1.23	%			1.04	%			1.35	%			2.28	%
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets			1.63	%			2.72	%			3.50	%			4.19	%			5.33	%

PDL Community Bancorp and Subsidiaries
Average Balance Sheets

	For the Years Ended December 31,
	2018												2017												2016
	Average								Average				Average								Average				Average								Average
	Outstanding								Yield/Rate				Outstanding								Yield/Rate				Outstanding								Yield/Rate
	Balance				Interest				(1		)		Balance				Interest				(1		)		Balance				Interest				(1		)
	(Dollars in thousands)
Interest-earning assets:
Loans	$	867,030			$	44,948				5.18	%		$	735,566			$	38,172				5.19	%		$	605,878			$	32,660				5.39	%
Available-for-sale securities		26,424				381				1.44	%			36,240				480				1.32	%			70,142				1,012				1.44	%
Other (2)		42,937				828				1.93	%			29,289				389				1.33	%			15,365				69				0.45	%
Total interest-earning assets		936,391				46,157				4.93	%			801,095				39,041				4.87	%			691,385				33,741				4.88	%
Non-interest-earning assets		33,610												53,809												33,759
Total assets	$	970,001											$	854,904											$	725,144
Interest-bearing liabilities:
Savings accounts	$	125,533			$	766				0.61	%		$	128,282			$	506				0.39	%		$	126,573			$	327				0.26	%
Interest-bearing demand		88,295				205				0.23	%			74,824				146				0.19	%			54,493				96				0.18	%
Certificates of deposit		439,737				7,617				1.73	%			387,232				5,917				1.53	%			371,313				5,502				1.48	%
Total deposits		653,565				8,588				1.31	%			590,338				6,569				1.11	%			552,379				5,925				1.07	%
Advance payments by borrowers		7,762				4				0.05	%			6,292				4				0.06	%			4,770				4				0.09	%
Borrowings		34,886				899				2.58	%			17,955				262				1.46	%			1,145				7				0.61	%
Total interest-bearing liabilities		696,213				9,491				1.36	%			614,585				6,835				1.11	%			558,294				5,936				1.06	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		100,490				—								112,113				—								70,407				—
Other non-interest-bearing liabilities		5,859				—								3,578				—								3,519				—
Total non-interest-bearing liabilities		106,349				—								115,691				—								73,926				—
Total liabilities		802,562				9,491								730,276				6,835								632,220				5,936
Total equity		167,439												124,628												92,924
Total liabilities and total equity	$	970,001								1.36	%		$	854,904								1.11	%		$	725,144								1.06	%
Net interest income					$	36,666											$	32,206											$	27,805
Net interest rate spread (3)										3.57	%											3.76	%											3.82	%
Net interest-earning assets (4)	$	240,178											$	186,510											$	133,091
Net interest margin (5)										3.92	%											4.02	%											4.02	%
Average interest-earning assets to
interest-bearing liabilities										134.50	%											130.35	%											123.84	%

(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

	For the Three Months Ended December 31,
	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	$	916,625			$	12,026				5.21	%		$	807,932			$	10,107				4.96	%
Available-for-sale securities		23,477				82				1.39	%			29,156				104				1.42	%
Other (2)		36,481				218				2.37	%			29,362				118				1.59	%
Total interest-earning assets		976,583				12,326				5.01	%			866,450				10,329				4.73	%
Non-interest-earning assets		33,003												113,915
Total assets	$	1,009,586											$	980,365
Interest-bearing liabilities:
Savings accounts	$	124,786			$	263				0.84	%		$	125,422			$	131				0.41	%
Interest-bearing demand		99,115				55				0.22	%			75,770				38				0.20	%
Certificates of deposit		444,950				2,078				1.85	%			400,818				1,599				1.58	%
Total deposits		668,851				2,396				1.42	%			602,010				1,768				1.17	%
Advance payments by borrowers		8,999				1				0.04	%			7,226				1				0.05	%
Borrowings		49,296				321				2.58	%			27,864				84				1.20	%
Total interest-bearing liabilities		727,146				2,718				1.48	%			637,100				1,853				1.15	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		107,145				—								129,593				—
Other non-interest-bearing liabilities		6,763				—								3,333				—
Total non-interest-bearing liabilities		113,908				—								132,926				—
Total liabilities		841,054				2,718								770,026				1,853
Total equity		168,532												210,339
Total liabilities and total equity	$	1,009,586								1.48	%		$	980,365								1.15	%
Net interest income					$	9,608											$	8,476
Net interest rate spread (3)										3.52	%											3.58	%
Net interest-earning assets (4)	$	249,437											$	229,350
Net interest margin (5)										3.90	%											3.88	%
Average interest-earning assets to   interest-bearing liabilities										134.30	%											136.00	%

(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.