 NEW YORK, July 31, 2020 GLOBE NEWSWIRE -- PDL Community Bancorp the Company NASDAQ: PDLB, the holding company for Ponce Bank the Bank, reported a net loss of 571,000, or 0.03 per basic and diluted share, for the second quarter of 2020, compared to a net loss of 1.2 million, or 0.07 per basic and diluted share, for the prior quarter and net income of 950,000, or 0.05 per basic and diluted share, for the second quarter of 2019.Carlos P. Naudon, the Companys President and CEO, noted 2020 continues to be a year of investing in the safety of our people and the future of our organization and our communities with the clear goal of enhancing stakeholder values. Although the COVID-19 pandemic slowed our business, we continued our implementation of GPS, our Salesforce based CRM; we attended to the needs of Ponce Bankers by maintaining their jobs and temporarily enhancing their benefits; we responded to the needs of our communities by handling over 1,000 applications for Paycheck Protection Program PPP loans from customers and non-customers alike, allowing loan forbearances upon requests and ensuring that we publicly stood by our commitment to fairness and justice for all; we enhanced our asset quality by significantly increasing reserves; and, we increased our shareholders value by resuming repurchases of our shares. Although these steps resulted in a loss per share of 0.11 for the six months ended June 30, 2020, we remain confident that our investments in the first half of the year, coupled with the closing of the Mortgage World Bankers, Inc. transaction in July as well as other initiatives, will continue to build stakeholder value.Steven A. Tsavaris, the Companys Executive Chairman, added It is gratifying that our commitment to our communities was recognized by the National Community Investment Fund in their Banking Industry Peer Group report for the first quarter of 2020. Ponce Bank was ranked 11th nationally in total assets and 7th in total loans among the 140 banks that also are CDFIs. Among the 20 largest, we were ranked 1st in our housing focus, 2nd in our lending in LMI areas and 6th in the proportion of branches in LMI areas. This data is not an anomaly; we are consistently a top performer in their Social Performance Metrics.Net Income LossThe 571,000 net loss for the three months ended June 30, 2020 is 642,000 less than the 1.2 million net loss for the three months ended March 31, 2020 and is primarily the result of an 875,000, or 76.4, decrease in provision for loan losses, a 387,000, or 3.6, decrease in noninterest expense and a 234,000, or 7.5, decrease in interest expense, offset by a 637,000, or 4.9, decrease in interest and dividend income, a 169,000, or 80.9, decrease in benefit for income taxes and a 48,000, or 7.7, decrease in noninterest income.The 571,000 net loss for the quarter ended June 30, 2020 compared to 950,000 in net income for the second quarter of 2019 reflects a 1.7 million, or 19.8, increase in noninterest expense, a 271,000 increase in provision for loan losses, a 112,000, or 16.3, decrease in noninterest income and a 21,000, or 0.2, decrease in interest and dividend income, offset by a 413,000, or 110.7, decrease in provision for income taxes and a 198,000, or 6.4, decrease in interest expense.The 1.8 million net loss for the six months ended June 30, 2020 compared to 1.6 million in net income for the six months ended June 30, 2019 reflects a 3.5 million, or 19.4, increase in noninterest expense, a 1.3 million increase in provision for loan losses and a 243,000, or 16.9, decrease in noninterest income, offset by a 929,000, or 136.6, decrease in provision for income taxes, a 627,000, or 2.5, increase in interest and dividend income and a 12,000, or 0.2, decrease in interest expense.Net Interest Margin Net interest margin decreased by 42 basis points to 3.45 for the three months ended June 30, 2020 from 3.87 for the three months ended March 31, 2020, while the net interest rate spread decreased by 38 basis points to 3.13 from 3.51 for the same periods. Average interest-earning assets increased by 77.7 million, or 7.5, mainly as a result of 30.3 million in average outstanding Payment Protection Program PPP loans, to 1,109.7 million for the three months ended June 30, 2020 from 1,031.9 million for the three months ended March 31, 2020. The average yield on interest-earning assets decreased by 58 basis points to 4.49 from 5.07, for the same periods. Average interest-bearing liabilities increased by 49.9 million, or 6.2, mainly as a result of 48.9 million in average net PPP funding, to 848.9 million for the three months ended June 30, 2020 from 799.0 million for the three months ended March 31, 2020. The weighted average rate on interest-bearing liabilities decreased by 20 basis points to 1.36 from 1.56 for the same periods. Net interest margin decreased by 30 basis points to 3.45 for the three months ended June 30, 2020 from 3.75 for the three months ended June 30, 2019, while the net interest rate spread decreased by 21 basis points to 3.13 from 3.34 for the same periods. Average interest-earning assets increased by 110.2 million, or 11.0, mainly as a result of 30.3 million in average outstanding PPP loans, to 1,109.7 million, for the three months ended June 30, 2020 from 999.4 million for the three months ended June 30, 2019. The average yield on interest-earning assets decreased by 49 basis points to 4.49 from 4.98, for the same periods. Average interest-bearing liabilities increased by 98.5 million, or 13.1, mainly as a result of 48.9 million in average net PPP funding, to 848.9 million, for the three months ended June 30, 2020 from 750.3 million for the three months ended June 30, 2019. The average rate on interest-bearing liabilities decreased by 28 basis points to 1.36 from 1.64 for the same periods.Noninterest Income Noninterest income was 574,000 for the three months ended June 30, 2020, down 48,000, or 7.7, from 622,000 for the three months ended March 31, 2020. The decrease was attributable to decreases of 106,000, or 89.1, in late and prepayment charges related to mortgage loans, 103,000, or 41.5, in service charges and fees and 28,000, or 56.0, in brokerage commissions, offset by an increase of 189,000, or 92.2, in other noninterest income, of which 163,000 were fees related to PPP loans.Noninterest income was 574,000 for the three months ended June 30, 2020, down 112,000, or 16.3, from 686,000 for the three months ended June 30, 2019. The decrease was mainly attributable to decreases of 249,000, or 95.0, in late and prepayment charges related to mortgage loans, 83,000, or 36.4, in service charges and fees and 2,000, or 8.3, in brokerage commissions, offset by an increase of 222,000, or 129.1, in other noninterest income, of which 163,000 were fees related to PPP loans.Noninterest ExpenseTotal noninterest expense decreased 387,000, or 3.6, to 10.4 million for the three months ended June 30, 2020 compared to 10.8 million for the three months ended March 31, 2020. Compensation and benefits decreased 363,000, which primarily includes 256,000 of deferred compensation expenses related to PPP loan originations. Other decreases in noninterest expense at June 30, 2020 from March 31, 2020 are 291,000 of professional services, 89,000 of marketing and promotional expenses and 13,000 in direct loan expenses. The decrease in noninterest expense was offset by increases of 260,000 in occupancy and equipment, 67,000 in other noninterest expenses, 29,000 in data processing expenses, 10,000 in regulatory dues and 7,000 in insurance and surety bond premiums. Included in noninterest expense for the three months ended June 30, 2020 is 475,000 of additional expenses incurred as a result of the COVID-19 pandemic.Total noninterest expense increased 1.7 million, or 19.8, to 10.4 million for the three months ended June 30, 2020, compared to 8.7 million for the three months ended June 30, 2019. The increase in noninterest expense was attributable to increases of 603,000 in professional fees, 545,000 in occupancy and equipment expense mainly due to investments in software licenses, 169,000 in compensation and benefits, 140,000 in other operating expenses mainly due to employment agency fees, 98,000 in marketing and promotional expenses, 65,000 in data processing expenses as a result of system enhancements and implementation charges related to software upgrades, 45,000 in insurance and surety bond premiums, 41,000 in office supplies, telephone and postage and 17,000 in direct loan expenses. The increase of 603,000 in professional fees is mainly attributable to increases in consulting fees of 250,000 and professional services of 344,000 related to the document imaging project adopted in late 2019.Asset QualityTotal nonperforming assets were 11.6 million, or 0.95 of total assets, at June 30, 2020, an increase of 1.9 million from 9.7 million, or 0.85 of total assets, at March 31, 2020 and remain comparable with total nonperforming assets of 11.6 million, or 1.10 of total assets, at December 31, 2019. Comparing nonperforming assets at June 30, 2020 to March 31, 2020, total nonaccruals inclusive of TDRs related to nonresidential loans increased by 1.1 million and 1-4 family residential loans increased by 707,000. Comparing nonperforming assets at June 30, 2020 to December 31, 2019, total nonaccruals inclusive of TDRs related to construction and land loans decreased by 1.1 million, nonresidential loans increased by 810,000 and 1-4 family residential loans increased by 285,000. 