PDL Community Bancorp Announces 2020 First Quarter Results

NEW YORK, May 01, 2020 (GLOBE NEWSWIRE) -- PDL Community Bancorp (the a??Companya??) (NASDAQ: PDLB), the holding company for Ponce Bank (the a??Banka??), reported a net loss of ($1.2 million), or ($0.07) per basic and diluted share, for the first quarter of 2020, compared to a net loss of ($7.5 million), or ($0.43) per basic and diluted share, for the prior quarter and net income of $668,000, or $0.04 per basic and diluted share, for the first quarter of 2019.
Based on our current assessment of the economic impact of the Coronavirus pandemic (a??COVID-19a??) on our borrowers, we have determined that it will likely be a detriment to borrowersa?? 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. Accordingly, and in consideration of its loan payment forbearance programs initiated in March 2020, the Company increased its allowance for loan losses by $1.2 million for the quarter ended March 31, 2020 when compared to December 31, 2019. As a result, the Companya??s allowance for loan losses to total loans increased to 1.37% at March 31, 2020 compared to 1.28% at December 31, 2019. Given that total non-accrual loans decreased to $9.7 million at March 31, 2020 from $11.6 million at December 31, 2019, the allowance for loan losses of $13.5 million at March 31, 2020 provides a coverage ratio to non-accrual loans of 138.5% compared to 106.3% at December 31, 2019.Bank Operations and Customer ServiceAs New York became the hotbed of the COVID-19 pandemic in the United States, the Bank altered the way it has historically provided services to its deposit customers while seeking to maintain normal day-to-day back-office operations and lending functions. To that end, all back-office and lending personnel transitioned to a remote work environment while the branch network provided traditional banking services to its communities using varying hours of operations and shifting service delivery to electronic and web-based products. The Bank embarked on an extensive and intensive communications program geared to informing customers of the alternative resources provided by the Bank for retaining access to financial services, closing loans and conducting banking transactions, such as ATM networks, online banking, mobile applications, remote deposits and the Banka??s Contact Center. The Bank proactively manages its day-to-day operations by using video and telephonic conferences.a??Although 2020 started off in much the same way as any year, as the rapidly progressing COVID-19 pandemic hit, our primary focus shifted to protecting our employees, customers and the communities we serve,a?? said Carlos P. Naudon, the Companya??s President and Chief Executive Officer. a??We also shifted to ensuring the viability of our institution. Our loan portfolio has significant concentrations in a few types of real estate. Accordingly, we reallocated resources to reviewing salient segments and assessing whether they might be disproportionately impacted by COVID-19 consequences. We were, and continue to be, in contact with borrowers that have requested payment deferrals and those that have applied for loans under the Small Business Administrationa??s Paycheck Protection Program. We will continue to work with our borrowers as we navigate through the probable effects of this pandemic and we will continuously evaluate the potential of loan losses, given the shifting economic environment. However, based on our current reviews, we remain confident that the quality of our underwriting, our weighted average loan-to-value ratio of 55.8% and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio.a??
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