PDL Community Bancorp Announces Update Regarding Emergency Capital Investment Program Application
BRONX, New York, December 15, 2021 (GLOBE NEWSWIRE) – PDL Community Bancorp (âPDLâ or the âCompanyâ) (NASDAQ: PDLB), the holding company of Ponce Bank (the âBankâ), Mortgage World Bankers, Inc. (âMortgage Worldâ) and Ponce Financial Group, Inc. (âPonce Financial Groupâ), the proposed holding company for Bank and Mortgage World following the completion of the second stage of the proposed conversion and reorganization of Ponce Bank Mutual Holding Company (âPBMHCâ), today announced that it has received a letter, dated December 14, 2021, from the United States Department of the Treasury (âTreasuryâ) indicating that it is eligible to participate in the Capital Investment Program (“ECIP”). Subject to the completion of the conversion and reorganization of PBMHC and the full execution of the investment and ECIP program documents not yet available, we may receive an ECIP investment that may be reach $ 185.6 million in exchange for the issuance by Ponce Financial Group senior perpetual non-cumulative preferred shares directly to the Treasury on terms established by the Treasury. The Treasury has indicated that it will provide additional information regarding the ECIP process, including, but not limited to, meeting unspecified closing conditions, additional documents and additional information.
PDL cannot provide any assurance or guarantee as to whether it will ultimately be a participant in the ECIP, what actual amount, if any, the Treasury will offer to invest, whether that amount will be acceptable, what the terms, conditions and the actual preferences of the First Preferred Shares will be or will be acceptable to Ponce Financial Group.
About PDL Community Bancorp
PDL Community Bancorp is the financial holding company of Ponce Bank and Mortgage World Bankers, Inc. Ponce Bank is a minority depository institution, community development financial institution and approved lender by the Small Business Administration. The activity of the Bank consists mainly in receiving deposits from the general public and to a lesser extent in alternative sources of financing and in investing these deposits, as well as the funds generated by operations and borrowings, in mortgages, composed of 1-4 family residences (investor-owned and owner-occupied), multi-family residences, non-residential properties and construction and land, and, to a lesser extent, in business and consumer loans. The Bank also invests in securities, which include securities of the US government and federal agencies and securities issued by companies sponsored or owned by the government, as well as mortgage-backed securities, bonds and corporate bonds. and shares of the Federal Home Loan Bank. Mortgage World Bankers, Inc. is a mortgage lender operating in five states. As a Federal Housing Administration (âFHAâ) approved Title II lender, Mortgage World Bankers, Inc. creates and sells FHA-guaranteed single-family mortgages to investors, as well as conventional mortgages.
Certain statements contained in this document 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 provisions of the sphere of security of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes”, “will”, “will”, “expects”, “draft”, “may”, ” could â,â developments â,â strategic â,â launch, ââ opportunities â,â anticipates â,â estimates â,â intentions â,â plans â,â objectives âand similar expressions. These statements are based on the beliefs and current expectations of the management of the Company and are subject to significant risks and uncertainties. Actual results may differ materially from those stated in forward-looking statements due to many factors. Factors that could cause such differences 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 on the local markets in which the Company operates, including changes that adversely affect the ability of borrowers to service and repay Company loans; the anticipated impact of the novel coronavirus COVID-19 pandemic and the Company’s mitigation attempts; changes in the value of the securities in the Company’s investment portfolio; changes in loan default and write-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; declines in deposit levels requiring increased borrowing to finance loans and investments; operational risks, including, but not limited to cybersecurity, fraud and natural disasters; changes in government regulations; changes in accounting standards and practices; the risk that intangible assets recorded in the Company’s financial statements will be impaired; demand for loans in the Company’s market area; the Company’s ability to attract and hold deposits; risks associated with the implementation of acquisitions, disposals and restructuring; the risk that the Company will not succeed in implementing its business strategy; changes in the assumptions used to make these forward-looking statements and the risk factors described in the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the âSECâ), which are available on the SEC’s website, www.sec.gov. If one or more of these risks materialize or if any underlying beliefs or assumptions prove to be incorrect, the actual results of PDL Community Bancorp 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 press release. The Company disclaims any obligation to publicly update or revise forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law or regulation applicable requires it.