PONCE FINANCIAL GROUP INC Stock Price, News & Analysis

PDL Community Bancorp, through its subsidiary PFS Service Corp, has entered a leaseback agreement for its real property located at 3821 Bergenline Avenue, Union City, New Jersey, valued at $2.4 million, while its carrying value was $512,000 as of the transaction date, December 22, 2020. The Bank will lease the property for an initial 15 years with an annual rent of $145,000, increasing by 1.5% annually. CEO Carlos P. Naudon stated that 2021 will focus on investing in organizational safety and stakeholder value enhancement.

PDL Community Bancorp announced a share repurchase program aimed at enhancing shareholder value, effective December 14, 2020. The program allows for the repurchase of up to 852,302 shares, approximately 5% of outstanding shares. The repurchases will comply with SEC regulations and may be conducted through privately negotiated transactions depending on market conditions. Shares repurchased will be held as Treasury shares, and the program may be suspended or terminated without prior notice by June 13, 2021.

PDL Community Bancorp (NASDAQ: PDLB) reported a net income of $4.0 million, or $0.24 per share, for Q3 2020, rebounding from a net loss of ($571,000) in Q2 2020. This represents a significant increase from $709,000 in Q3 2019. For the nine months ended September 30, 2020, net income decreased slightly to $2.2 million compared to $2.3 million in the same period of 2019, a 4.4% decline. Total assets rose to $1.3 billion, largely driven by increases in loans and deposits. The Company implemented significant investments totalling $5.1 million and reported a 20 basis point increase in net interest margin to 3.65%.

PDL Community Bancorp (NASDAQ: PDLB) reported a net loss of $571,000, or $0.03 per share, for Q2 2020, a reduction from a $1.2 million loss in Q1. This contrasts with a net income of $950,000 in Q2 2019. The company noted an investment in community support and business resilience amid COVID-19, securing over 1,000 PPP loans. Despite decreasing interest income and rising noninterest expenses, they maintained asset quality and resumed share repurchases. Total assets increased 15.8% to $1.22 billion, while stockholders’ equity declined by 2.1% to $155 million due to losses and stock buybacks.

On July 27, 2020, Ponce Bank, a subsidiary of PDL Community Bancorp, sold its former branch property in the Bronx for $4.7 million, with an anticipated gain of $4.4 million against a carrying value of $82,000. The sale incurred $250,000 in expenses. Concurrently, the Bank plans to acquire a new property at 135-14 Northern Boulevard, Flushing, NY, pending regulatory approvals. The move aims to enhance shareholder value and ensure continuity of service. No operational disruptions are reported, as branch operations had been previously relocated.

PDL Community Bancorp (NASDAQ: PDLB) completed its acquisition of Mortgage World Bankers, Inc. (MWB) on July 10, 2020. This strategic move enhances PDLB's access to secondary markets, expanding its community reach. Michael Lagoudis remains as President and CEO of MWB, while Carlos P. Naudon, PDLB’s CEO, joins MWB’s Board. Executive Chairman Steven A. Tsavaris emphasized improved offerings for customers. The acquisition is poised to strengthen PDLB’s market position amidst ongoing economic challenges, including the impacts of COVID-19.

Ponce Bank, a subsidiary of PDL Community Bancorp (NASDAQ: PDLB), partners with Grain Technology Inc. to offer revolving lines of credit to individuals with limited or damaged credit. Utilizing the Grain app, powered by Ponce, this collaboration aims to enhance financial literacy and leverage AI tools for credit history development. By analyzing cash flow in real-time, the banks can offer credit lines based on actual income. This initiative addresses the financial needs of underserved communities, helping consumers develop better credit management and spending habits.

PDL Community Bancorp (NASDAQ: PDLB) has received approval from the New York State Department of Financial Services for its acquisition of 100% of Mortgage World Bankers, Inc. (MWB), a mortgage banking firm based in Astoria, New York. The transaction is expected to close on or around July 1, 2020. This strategic acquisition aims to enhance PDLB's mortgage origination capacity and expand its competitive offerings in consumer mortgage products. Management anticipates the deal to be accretive within 18 months, with the integration led by MWB's President, Michael Lagoudis.

PDL Community Bancorp announced a share repurchase program effective June 1, 2020, aiming to enhance shareholder value. The program allows for the buyback of up to 864,987 shares, representing approximately 5% of outstanding shares. The repurchases will comply with Rule 10b5-1 of the Securities Exchange Act, executed through an independent broker as per market conditions. The program may be suspended or terminated at any time and will conclude by November 30, 2020.