NEW YORK, July 31, 2020 (GLOBE NEWSWIRE) -- On July 27, 2020, Ponce Bank, the subsidiary of PDL Community Bancorp, completed the sale of the real property that was owned by the Bank and was the former location of a branch banking office, located at 30 East 170th Street, Bronx, New York. The purchase price for the Real Property was $4.7 million. The Bank’s carrying value of the Real Property as of July 27, 2020 was $82,000. The Bank incurred expenses related to the sale of the Real Property of approximately $250,000. The Bank anticipates recording a gain on sale of approximately $4.4 million.
The Bank has concurrently entered into a contract to purchase an existing property intended to become a full service branch banking office in a like-kind exchange. This property is located at 135-14 Northern Boulevard, Flushing NY 11354. The transaction is contingent upon, among other things, an acceptable feasibility study and necessary regulatory approvals. Assuming the contingencies are satisfied and the like-kind exchange is completed, the Bank may be permitted to defer payments of the capital gains tax associated with the sale of the Real Property.
There is no material relationship between the Bank and the Company and the Purchaser of the Real Estate and its affiliates.
The Bank had previously relocated the branch banking operations to another location in the immediate neighborhood and, therefore, the transaction did not have a negative impact on the Bank's branch banking operations.
Carlos P. Naudon, the Company’s President and CEO, noted, "We are excited about the sale of the Jerome avenue branch real property and look forward to continuing to provide the excellent products and customer service that Ponce Bank has always been known for in our new branch in the immediate neighborhood. More importantly, we see this as another step in our continuing efforts in enhancing shareholder value with minimum disruption to our current retail operations in the community.”
About PDL Community Bancorp
PDL Community Bancorp is the financial holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. The Bank’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 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 government-owned enterprises, as well as, mortgage-backed securities and Federal Home Loan Bank stock.
