NEW YORK, May 07, 2019 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), reported net income of $668,000 for the quarter ended March 31, 2019 compared to a net income of $941,000 for the quarter ended March 31, 2018. The decrease in quarterly net income amounted to $273,000 and was attributable to an increase in noninterest expenses of $832,000, increases in provisions for loan losses of $55,000 and income taxes of $39,000, and a reduction in noninterest income of $132,000, offset by an increase in net interest income of $785,000. Basic and fully diluted earnings per share were both $0.04 for the quarter ended March 31, 2019 compared to $0.05 for the quarter ended March 31, 2018.  

Carlos P. Naudon, President and CEO, noted that “our slower growth this quarter reflected our commitment to maintain asset quality and manage cost of funds. We are pleased to note that our branches have now largely deployed their new equipment, such as ATMs and TCRs.” Executive Chairman Steven A. Tsavaris remarked that “we were pleased to have held our second annual shareholders meeting on May 1, 2019 where our shareholders elected Maria A. Alvarez to her first full term on our board of directors.”

Net Interest Income

Net interest income was $9.5 million for the quarter ended March 31, 2019, up $785,000, or 9.1%, from $8.7 million for the quarter ended March 31, 2018. The increase in net interest income for the quarter ended March 31, 2019 compared to the quarter ended March 31, 2018 reflects a $1.7 million, or 15.6%, increase in total interest and dividend income, offset by an increase of $887,000, or 43.6%, in total interest expense. The increase in interest and dividend income was primarily due to growth in one-to-four family residential, multifamily, and nonresidential loans that provided an increase in average outstanding loans of $119.4 million, or 14.6%, for the quarter ended March 31, 2019 compared to the same period in 2018. The net interest rate spread and net interest margin were 3.46% and 3.86%, respectively, for the quarter ended March 31, 2019 compared to 3.61% and 3.95%, respectively, for the same period in 2018. The average yield on loans increased to 5.24% for the quarter ended March 31, 2019 from 5.16% for the same period in 2018. The increase in interest expense was due to an increase in average interest-bearing liabilities of $85.0 million, or 12.9%, for the quarter ended March 31, 2019 compared to the same period in 2018. Additionally, the cost of funding interest-bearing liabilities increased to 1.60% for the quarter ended March 31, 2019 from 1.26% for the same period in 2018.

Noninterest Income

Noninterest income was $753,000 for the quarter ended March 31, 2019, down $132,000, or 14.9%, from $885,000 for the same period in 2018. The decrease is mainly attributed to a reduction in late fees and prepayment charges related to mortgage loans and other fees totaling $152,000.

Noninterest Expense

Noninterest expense was $9.1 million for the quarter ended March 31, 2019, up $832,000, or 10.1%, from $8.3 million for the same period in 2018. This quarterly variance was largely due to increases in compensation and benefits expense of $556,000 primarily due to expenses from restricted stock units and stock options totaling $326,000, and occupancy expense of $420,000. The increase in noninterest expense was partially offset by decreases in professional fees of $113,000, data processing expenses of $55,000 and marketing and promotional expenses of $26,000.

Asset Quality

Nonperforming assets increased to $8.0 million, or 0.77% of total assets at March 31, 2019, from $6.8 million, or 0.64% of total assets at December 31, 2018. The increase is mainly attributable to an increase in nonaccrual, investor-owned one-to-four family residence loans of $1.1 million.

Provision for loan losses was $149,000 for the quarter ended March 31, 2019, compared to $94,000 for the same period in 2018. The allowance for loan losses was $12.4 million, or 1.33% of total loans at March 31, 2019, compared to $12.7 million, or 1.36% of total loans at December 31, 2018. Net charge-offs totaled $360,000 for the quarter ended March 31, 2019, or 0.16% of average loans outstanding, compared to net recoveries of $244,000 for the quarter ended March 31, 2018, or 0.12% of average loans outstanding, when annualized.

Balance Sheet

Total assets decreased $26.3 million, or 2.5%, to $1,033.6 million at March 31, 2019 from $1,059.9 million at December 31, 2018. Net loans increased $6.6 million, or 0.7%, to $925.1 million at March 31, 2019 from $918.5 million at December 31, 2018. The increase in loans was primarily due to aggregate increases of $9.3 million in mortgage loans in the investor-owned and owner-occupied one-to-four family residential, multifamily and nonresidential categories, offset by decreases of $2.7 million in construction and land loans and $609,000 in business loans.

Federal Home Loan Bank advances and other decreased $25.0 million or 36.0%, to $44.4 million at March 31, 2019 from $69.4 million at December 31, 2018.

Total deposits decreased $3.0 million, or 0.4%, to $806.8 million at March 31, 2019 from $809.8 million at December 31, 2018. The quarterly variance was due to decreases in certificates of deposits of $22.9 million, NOW and savings accounts of $5.8 million, and demand deposits of $2.4 million, offset by an increase in money market accounts of $28.2 million.

Total stockholders’ equity was $170.3 million at March 31, 2019 compared to $169.2 million at December 31, 2018. The Company and the Bank exceeded all regulatory capital requirements to be deemed well-capitalized at March 31, 2019. The Bank’s total capital to risk-weighted assets ratio was 19.32%, the tier 1 capital to risk-weighted assets ratio and the common equity tier 1 capital ratio were both 18.06%, and the tier 1 capital to total assets ratio was 13.56% at March 31, 2019, compared to 19.39%, 18.14%, and 13.66% at December 31, 2018, respectively.

On March 22, the Company announced that the Board of Directors had adopted a share repurchase program. As of May 6, 2019, the Company has repurchased 234,823 shares of stock at a weighted average price $14.22 per share.

About PDL Community Bancorp

PDL Community Bancorp is the holding company for Ponce Bank. The Bank’s business primarily consists of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of one-to-four family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. The Bank also invests in securities, which have historically consisted of U.S. Government and federal agency securities and securities issued by government-sponsored or -owned enterprises, as well as, mortgage-backed securities and Federal Home Loan Bank stock. The Bank offers a variety of deposit accounts, including demand, savings, money market and certificates of deposit. 

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the prospectus and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorp’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

PDL Community Bancorp and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except for share data)

	As of
	March 31,				December 31,				September 30,				June 30,				March 31,
	2019				2018				2018				2018				2018
ASSETS
Cash and due from banks:
Cash	$	5,690			$	45,225			$	5,494			$	7,088			$	6,570
Interest-bearing deposits in banks		35,877				24,553				16,895				42,094				52,409
Total cash and cash equivalents		41,567				69,778				22,389				49,182				58,979
Available-for-sale securities, at fair value		22,166				27,144				24,177				28,144				28,422
Loans receivable, net		925,099				918,509				893,884				850,426				823,014
Accrued interest receivable		3,735				3,795				3,609				3,350				3,202
Premises and equipment, net		31,777				31,135				29,293				28,366				27,684
Federal Home Loan Bank Stock (FHLB), at cost		2,915				2,915				2,621				2,617				1,673
Deferred tax assets		3,852				3,811				4,118				3,805				3,801
Other assets		2,485				2,814				2,620				2,923				2,848
Total assets	$	1,033,596			$	1,059,901			$	982,711			$	968,813			$	949,623
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	806,781			$	809,758			$	764,792			$	753,255			$	752,267
Accrued interest payable		75				63				75				141				61
Advance payments by borrowers for taxes and insurance		8,099				6,037				7,219				5,491				6,999
Advances from the Federal Home Loan Bank and others		44,404				69,404				37,775				37,775				20,000
Other liabilities		3,975				5,467				5,706				5,573				4,582
Total liabilities		863,334				890,729				815,567				802,235				783,909
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 18,449,162 shares outstanding as of  March 31, 2019 and 18,463,028 shares issued and outstanding as of December 31,2018		185				185				185				185				185
Treasury stock, at cost; 13,866 shares at March 31, 2019 and no shares as of December 31, 2018		(193	)			—				—				—				—
Additional paid-in-capital		84,976				84,581				84,557				84,488				84,419
Retained earnings		99,481				98,813				96,896				96,495				95,796
Accumulated other comprehensive loss		(8,035	)			(8,135	)			(8,101	)			(8,076	)			(8,052	)
Unearned compensation - ESOP; 615,188 shares and 627,251 shares as of March 31, 2019 and December 31, 2018		(6,152	)			(6,272	)			(6,393	)			(6,514	)			(6,634	)
Total stockholders' equity		170,262				169,172				167,144				166,578				165,714
Total liabilities and stockholders' equity	$	1,033,596			$	1,059,901			$	982,711			$	968,813			$	949,623

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

		For the Quarters Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2019				2018				2018				2018				2018
Interest and dividend income:
Interest on loans receivable		$	12,095			$	12,026			$	11,483			$	11,053			$	10,386
Interest and dividends on investment securities and FHLB stock			287				300				254				330				324
Total interest and dividend income			12,382				12,326				11,737				11,383				10,710
Interest expense:
Interest on certificates of deposit			1,956				2,078				1,942				1,847				1,750
Interest on other deposits			631				320				272				199				185
Interest on borrowings			333				321				276				204				98
Total interest expense			2,920				2,719				2,490				2,250				2,033
Net interest income			9,462				9,607				9,247				9,133				8,677
Provision for loan losses			149				215				602				337				94
Net interest income after provision for loan losses			9,313				9,392				8,645				8,796				8,583
Noninterest income:
Service charges and fees			230				217				191				214				223
Brokerage commissions			109				108				286				42				96
Late and prepayment charges			139				278				65				52				211
Other			275				212				172				216				355
Total noninterest income			753				815				714				524				885
Noninterest expense:
Compensation and benefits			5,014				4,371				4,547				4,563				4,458
Occupancy expense			1,911				1,879				1,585				1,717				1,491
Data processing expenses			353				357				342				300				408
Direct loan expenses			156				217				265				152				155
Insurance and surety bond premiums			83				94				87				99				89
Office supplies, telephone and postage			317				349				308				352				300
FDIC deposit insurance assessment			68				70				68				66				68
Professional fees			510				1,025				978				529				623
Marketing and promotional expenses			26				68				40				55				52
Directors fees			83				69				69				70				69
Regulatory dues			56				60				63				58				56
Other operating expenses			514				515				417				494				490
Total noninterest expense			9,091				9,074				8,769				8,455				8,259
Income before income taxes			975				1,133				590				865				1,209
Provision for income taxes			307				498				188				166				268
Net income		$	668			$	635			$	402			$	699			$	941
Earnings per share:
Basic		$	0.04			$	0.04			$	0.02			$	0.04			$	0.05
Diluted		$	0.04			$	0.04			$	0.02			$	0.04			$	0.05

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

		Quarter Ended March 31,
		2019				2018				Variance $				Variance %
Interest and dividend income:
Interest on loans receivable		$	12,095			$	10,386			$	1,709				16.45	%
Interest and dividends on investment securities and FHLB stock			287				324				(37	)			(11.42	%)
Total interest and dividend income			12,382				10,710				1,672				15.61	%
Interest expense:
Interest on certificates of deposit			1,956				1,750				206				11.77	%
Interest on other deposits			631				185				446				241.08	%
Interest on borrowings			333				98				235				239.80	%
Total interest expense			2,920				2,033				887				43.63	%
Net interest income			9,462				8,677				785				9.05	%
Provision for loan losses			149				94				55				58.51	%
Net interest income after provision for loan losses			9,313				8,583				730				8.51	%
Noninterest income:
Service charges and fees			230				223				7				3.14	%
Brokerage commissions			109				96				13				13.54	%
Late and prepayment charges			139				211				(72	)			(34.12	%)
Other			275				355				(80	)			(22.54	%)
Total noninterest income			753				885				(132	)			(14.92	%)
Noninterest expense:
Compensation and benefits			5,014				4,458				556				12.47	%
Occupancy expense			1,911				1,491				420				28.17	%
Data processing expenses			353				408				(55	)			(13.48	%)
Direct loan expenses			156				155				1				0.65	%
Insurance and surety bond premiums			83				89				(6	)			(6.74	%)
Office supplies, telephone and postage			317				300				17				5.67	%
FDIC deposit insurance assessment			68				68				—				0.00	%
Professional fees			510				623				(113	)			(18.14	%)
Marketing and promotional expenses			26				52				(26	)			(50.00	%)
Directors fees			83				69				14				20.29	%
Regulatory dues			56				56				—				0.00	%
Other operating expenses			514				490				24				4.90	%
Total noninterest expense			9,091				8,259				832				10.07	%
Income before income taxes			975				1,209				(234	)			(19.35	%)
Provision for income taxes			307				268				39				14.55	%
Net income		$	668			$	941			$	(273	)			(29.01	%)
Earnings per share:
Basic		$	0.04			$	0.05			N/A				N/A
Diluted		$	0.04			$	0.05			N/A				N/A

PDL Community Bancorp and Subsidiaries
Key Metrics

		At or for the Quarters Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2019				2018				2018				2018				2018
Performance Ratios:
Return on average assets			0.26	%			0.25	%			0.16	%			0.29	%			0.41	%
Return on average equity			1.59	%			1.49	%			0.95	%			1.68	%			2.30	%
Net interest rate spread (1)			3.46	%			3.52	%			3.49	%			3.64	%			3.61	%
Net interest margin (2)			3.86	%			3.90	%			3.86	%			3.96	%			3.95	%
Noninterest expense to average assets			3.59	%			3.57	%			3.54	%			3.54	%			3.61	%
Efficiency ratio (3)			89.00	%			87.07	%			88.03	%			87.55	%			86.37	%
Average interest-earning assets to average interest- bearing liabilities			133.93	%			134.30	%			135.09	%			132.89	%			135.79	%
Average equity to average assets			16.58	%			16.69	%			17.06	%			17.45	%			17.91	%
Capital Ratios:
Total capital to risk weighted assets (bank only)			19.32	%			19.39	%			19.60	%			20.07	%			20.52	%
Tier 1 capital to risk weighted assets (bank only)			18.06	%			18.14	%			18.35	%			18.81	%			19.26	%
Common equity Tier 1 capital to risk-weighted assets (bank only)			18.06	%			18.14	%			18.35	%			18.81	%			19.26	%
Tier 1 capital to average assets (bank only)			13.56	%			13.66	%			13.78	%			14.03	%			14.25	%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans			1.33	%			1.36	%			1.37	%			1.36	%			1.37	%
Allowance for loan losses as a percentage of nonperforming loans			155.87	%			186.77	%			(186.74	%)			176.63	%			122.81	%
Net (charge-offs) recoveries to average outstanding loans during the year			(0.16	%)			0.03	%			0.00	%			0.00	%			0.12	%
Non-performing loans as a percentage of total loans			0.86	%			0.73	%			0.73	%			0.77	%			1.11	%
Non-performing loans as a percentage of total assets			0.77	%			0.64	%			0.67	%			0.69	%			0.98	%
Total non-performing assets as a percentage of total assets			0.77	%			0.64	%			0.67	%			0.69	%			0.98	%
Total non-performing assets, accruing loans past due 90 days or more,  and accruing troubled debt restructured loans as a percentage of total assets			1.74	%			1.63	%			1.79	%			1.87	%			2.25	%
Other:
Number of offices		14				14				14				14				14
Number of full-time equivalent employees		185				181				175				194				192

(1)  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.
(2)  Net interest margin represents net interest income divided by average total interest-earning assets.
(3)  Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

Key metrics calculated on income statement items were annualized where appropriate.

PDL Community Bancorp and Subsidiaries
Loan Portfolio

		For the Quarters Ended
		March 31,									December 31,									September 30,									June 30,									March 31,
		2019									2018									2018									2018									2018
		Amount				Percent					Amount				Percent					Amount				Percent					Amount				Percent					Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	304,650				32.55	%			$	303,197				32.61	%			$	295,792				32.69	%			$	296,490				34.44	%			$	290,509				34.86	%
Owner-Occupied			95,449				10.20	%				92,788				9.98	%				95,464				10.55	%				92,208				10.71	%				96,943				11.63	%
Multifamily residential			234,749				25.09	%				232,509				25.01	%				219,958				24.31	%				218,210				25.34	%				204,474				24.54	%
Nonresidential properties			199,903				21.36	%				196,917				21.18	%				191,603				21.17	%				168,788				19.60	%				158,525				19.03	%
Construction and land			84,844				9.07	%				87,572				9.42	%				85,293				9.43	%				72,574				8.43	%				67,971				8.16	%
Total mortgage loans			919,595				98.27	%				912,983				98.20	%				888,110				98.14					848,270				98.52	%				818,422				98.21	%
Nonmortgage loans:
Business loans			15,101				1.61	%				15,710				1.69	%				15,832				1.75	%				11,698				1.36	%				13,925				1.67	%
Consumer loans			1,125				0.12	%				1,068				0.11	%				992				0.11	%				1,027				0.12	%				975				0.12	%
Total nonmortgage loans			16,226				1.73	%				16,778				1.80	%				16,824				1.86	%				12,725				1.48	%				14,900				1.79	%
Total loans			935,821				100.00	%				929,761				100.00	%				904,934				100.00	%				860,995				100.00	%				833,322				100.00	%
Net deferred loan origination costs			1,727									1,407									1,316									1,182									1,101
Allowance for losses on loans			(12,449	)								(12,659	)								(12,366	)								(11,751	)								(11,409	)
Loans, net		$	925,099								$	918,509								$	893,884								$	850,426								$	823,014

PDL Community Bancorp and Subsidiaries
Nonperforming Assets

		For the Quarters Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2019				2018				2018				2018				2018
		(Dollars in thousands)
Nonaccrual loans:
Mortgage loans:
1-4 family residential
Investor owned		$	1,284			$	205			$	206			$	208			$	209
Owner occupied			933				1,092				1,098				1,481				1,951
Multifamily residential			13				16				—				—				—
Nonresidential properties			531				706				544				142				633
Construction and land			1,341				1,115				1,103				1,111				1,097
Nonmortgage loans:
Business			275				—				—				—				30
Consumer			4				—				—				—				—
Total nonaccrual loans (not including non-accruing troubled debt restructured loans)		$	4,381			$	3,134			$	2,951			$	2,942			$	3,920
Non-accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned		$	1,023			$	1,053			$	1,076			$	1,099			$	1,122
Owner occupied			1,972				1,987				1,990				2,007				2,983
Multifamily residential			—				—				—				—				—
Nonresidential properties			611				604				605				606				1,265
Construction and land			—				—				—				—				—
Nonmortgage loans:
Business			—				—				—				—				—
Consumer			—				—				—				—				—
Total non-accruing troubled debt restructured loans			3,606				3,644				3,671				3,712				5,370
Total nonaccrual loans		$	7,987			$	6,778			$	6,622			$	6,654			$	9,290
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		$	7,987			$	6,778			$	6,622			$	6,654			$	9,290
Accruing loans past due 90 days or more:
Mortgage loans:
1-4 family residential
Investor owned		$	—			$	—			$	—			$	—			$	—
Owner occupied			—				—				—				—				—
Multifamily residential			—				—				—				—				—
Nonresidential properties			—				—				—				—				—
Construction and land			—				—				—				—				—
Nonmortgage loans:
Business			—				—				—				—				—
Consumer			—				—				—				—				—
Total accruing loans past due 90 days or more		$	—			$	—			$	—			$	—			$	—
Accruing troubled debt restructured loans:
Mortgage loans:
1-4 family residential
Investor owned		$	5,157			$	5,192			$	5,224			$	5,707			$	5,738
Owner occupied			3,415				3,456				3,882				3,911				4,424
Multifamily residential			—				—				—				—				—
Nonresidential properties			1,428				1,438				1,449				1,458				1,468
Construction and land			—				—				—				—				—
Nonmortgage loans:
Business			40				374				398				421				454
Consumer			—				—				—				—				—
Total accruing troubled debt restructured loans		$	10,040			$	10,460			$	10,953			$	11,497			$	12,084
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans		$	18,027			$	17,238			$	17,575			$	18,151			$	21,374
Total nonperforming loans to total loans			0.86	%			0.73	%			0.73	%			0.77	%			1.11	%
Total nonperforming assets to total assets			0.77	%			0.64	%			0.67	%			0.69	%			0.98	%
Total nonperforming assets, accruing loans past due 90 days or more and accruing troubled debt restructured loans to total assets			1.74	%			1.63	%			1.79	%			1.87	%			2.25	%

PDL Community Bancorp and Subsidiaries
Average Balance Sheets

	For the Three Months Ended March 31,
	2019													2018
	Average													Average
	Outstanding								Average					Outstanding								Average
	Balance				Interest				Yield/Rate (1)					Balance				Interest				Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans	$	935,877			$	12,095				5.24	%			$	816,437			$	10,386				5.16	%
Available-for-sale securities		23,790				86				1.47	%				28,692				105				1.49	%
Other (2)		33,714				201				2.42	%				46,701				219				1.90	%
Total interest-earning assets		993,381				12,382				5.06	%				891,830				10,710				4.87	%
Non-interest-earning assets		34,441													35,429
Total assets	$	1,027,822												$	927,259
Interest-bearing liabilities:
Savings accounts	$	122,559			$	341				1.13	%			$	124,473			$	131				0.43	%
Interest-bearing demand		141,761				289				0.83	%				77,298				53				0.28	%
Certificates of deposit		419,108				1,956				1.89	%				430,242				1,750				1.65	%
Total deposits		683,428				2,586				1.53	%				632,013				1,934				1.24	%
Advance payments by borrowers		7,709				1				0.05	%				6,572				1				0.06	%
Borrowings		50,570				333				2.67	%				18,164				98				2.19	%
Total interest-bearing liabilities		741,707				2,920				1.60	%				656,749				2,033				1.26	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		110,644				—									99,367				—
Other non-interest-bearing liabilities		5,056				—									5,104				—
Total non-interest-bearing liabilities		115,700				—									104,471				—
Total liabilities		857,407				2,920									761,220				2,033
Total equity		170,415													166,039
Total liabilities and total equity	$	1,027,822								1.60	%			$	927,259								1.26	%
Net interest income					$	9,462												$	8,677
Net interest rate spread (3)										3.46	%												3.61	%
Net interest-earning assets (4)	$	251,674												$	235,081
Net interest margin (5)										3.86	%												3.95	%
Average interest-earning assets to   interest-bearing liabilities										133.93	%												135.79	%

(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.net 
718-931-9000