EX-99.1 2 pdlb-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

Ponce Financial Group, Inc. Reports First Quarter 2026 Results

 

NEW YORK, April 24, 2026 - Ponce Financial Group, Inc., (the “Company”) (Nasdaq: PDLB), the holding company for Ponce Bank, National Association ("Ponce Bank" or the “Bank”), today announced results for the first quarter of 2026.

First Quarter 2026 Highlights (Compared to Prior Periods):

•
Net income available to common stockholders was $8.3 million, or $0.36 per diluted share for the three months ended March 31, 2026, as compared to net income available to common stockholders of $9.9 million, or $0.42 per diluted share for the three months ended December 31, 2025 and net income available to common stockholders of $5.7 million, or $0.25 per diluted share for the three months ended March 31, 2025. Total net income for the three months ended March 31, 2026 was $8.6 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended March 31, 2026.
•
Included in the $8.3 million of net income available to common stockholders for the first quarter of 2026 results is $48.7 million in total interest and dividend income and $2.0 million in non-interest income, offset by $20.4 million in interest expense, $17.2 million in non-interest expense, $2.7 million in provision for income taxes, $1.7 million in provision for credit losses and $0.3 million in dividends on preferred shares.
•
Net interest income of $28.2 million for the first quarter of 2026 increased $0.3 million, or 1.05%, from the prior quarter and increased $6.0 million, or 27.13%, from the same quarter last year.
•
Net interest margin was 3.61% for the first quarter of 2026, versus 3.57% for the prior quarter and 2.98% for the same quarter last year.
•
Cash and equivalents were $117.2 million as of March 31, 2026, a decrease of $8.9 million, or 7.06%, from $126.2 million as of December 31, 2025.
•
Securities totaled $350.7 million as of March 31, 2026, a decrease of $14.5 million, or 3.97%, from $365.2 million as of December 31, 2025 primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of $3.0 million.
•
Net loans receivable were $2.70 billion as of March 31, 2026, an increase of $99.4 million, or 3.82%, from $2.60 billion as of December 31, 2025.
•
Deposits were $2.13 billion as of March 31, 2026, an increase of $87.2 million, or 4.26%, from $2.05 billion as of December 31, 2025.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “Our disciplined execution continues to serve Ponce well. Our diluted earnings per share of $0.36 this quarter is up 44% vs the same quarter last year and our book value per share of $13.49 is up $1.44 or 12% over the same period. Net interest margin is up 4 basis points versus last quarter and 63 basis points vs the same quarter last year. Our non-performing assets went down this quarter by 22 basis points and now stand at 62 basis points of total assets. Our capital ratios continue to be well in excess of regulatory requirements. We remain committed to the communities we serve, and we’ll continue investing in our people and in technology to improve our efficiency.”

Executive Chairman’s Comment

 

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We’re pleased with our business activity during the quarter and by our loan and deposit growth. We continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program and we’re one quarter away from achieving 16 quarters of a cumulative deep impact lending percentage of more than 60%. After 15 quarters, including the quarter ended March 31, 2026, we are at 82% deep impact lending.”

 

1

 

The table below indicates the Key Metrics at or for the three months ended:

 

 

At or for the Three Months Ended

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

1.07

%

 

 

1.26

%

 

 

0.82

%

 

 

0.79

%

 

 

0.77

%

Return on common equity (1)

 

10.37

%

 

 

12.50

%

 

 

8.10

%

 

 

7.88

%

 

 

7.97

%

Net interest margin (1) (2)

 

3.61

%

 

 

3.57

%

 

 

3.30

%

 

 

3.27

%

 

 

2.98

%

Non-interest expense to average assets (1)

 

2.14

%

 

 

2.06

%

 

 

2.10

%

 

 

2.18

%

 

 

2.19

%

Efficiency ratio (3)

 

56.96

%

 

 

52.95

%

 

 

62.15

%

 

 

63.69

%

 

 

68.70

%

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital to risk-weighted assets (Ponce Financial Group)

 

21.23

%

 

 

23.00

%

 

 

24.08

%

 

 

22.65

%

 

 

22.84

%

Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)

 

12.11

%

 

 

12.98

%

 

 

13.39

%

 

 

12.49

%

 

 

12.51

%

Tier 1 capital to total assets (Ponce Financial Group)

 

17.22

%

 

 

17.27

%

 

 

17.33

%

 

 

17.13

%

 

 

16.84

%

Total capital to risk-weighted assets (Bank only)

 

20.00

%

 

 

21.63

%

 

 

21.79

%

 

 

21.22

%

 

 

21.38

%

Common equity Tier 1 capital to risk-weighted assets (Bank only)

 

18.97

%

 

 

20.53

%

 

 

20.66

%

 

 

20.15

%

 

 

20.35

%

Tier 1 capital to total assets (Bank only)

 

16.09

%

 

 

16.12

%

 

 

16.08

%

 

 

15.99

%

 

 

15.61

%

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans as a percentage of total loans

 

0.96

%

 

 

0.97

%

 

 

0.98

%

 

 

0.97

%

 

 

0.96

%

Allowance for credit losses on loans as a percentage of nonperforming loans

 

128.93

%

 

 

94.74

%

 

 

88.88

%

 

 

101.01

%

 

 

84.15

%

Net (charge-offs) recoveries to average outstanding loans (1)

 

(0.08

%)

 

 

(0.13

%)

 

 

(0.03

%)

 

 

(0.04

%)

 

 

(0.04

%)

Non-performing loans as a percentage of total assets

 

0.62

%

 

 

0.83

%

 

 

0.88

%

 

 

0.76

%

 

 

0.88

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of offices

 

17

 

 

 

17

 

 

 

18

 

 

 

17

 

 

 

18

 

Number of full-time equivalent employees

 

218

 

 

 

216

 

 

 

209

 

 

 

206

 

 

 

211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Annualized.
(2)
Net interest margin represents net interest income divided by average total interest-earning assets.
(3)
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

 

 

Summary of Results of Operations

 

Net income for the three months ended March 31, 2026 was $8.6 million compared to net income of $10.1 million for the three months ended December 31, 2025 and net income of $6.0 million for the three months ended March 31, 2025.

 

The $1.5 million decrease of net income for the three months ended March 31, 2026 compared to the three months ended December 31, 2025 was attributed mainly to a decrease of $1.4 million in non-interest income and increases of $0.6 million non-interest expense and $0.6 million in provision for credit losses, offset by an increase of $0.3 million in net interest income and a decrease of $0.8 million in provision for income taxes.

The $2.7 million increase of net income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was largely due to an increase of $6.0 million in net interest income, offset by increases of $1.9 million in provision for credit losses, $0.7 million in provision for income taxes and $0.4 million in non-interest expense and a decrease of $0.3 million in non-interest income.

 

2

 

 

Net Interest Income and Net Interest Margin

 

Net interest income for the three months ended March 31, 2026, increased $0.3 million, or 1.05%, to $28.2 million compared to $27.9 million for the three months ended December 31, 2025 and increased $6.0 million, or 27.13%, compared to $22.2 million for the three months ended March 31, 2025.

 

The $0.3 million increase in net interest income from the three months ended December 31, 2025 was attributable to decreases of $0.5 million in total interest expense and $0.2 million in total interest and dividend income. The $6.0 million increase in net interest income from the three months ended March 31, 2025 was attributable to an increase of $4.7 million in total interest and dividend income and a decrease of $1.4 million in total interest expense.

 

Net interest margin was 3.61% for the three months ended March 31, 2026 compared to 3.57% for the prior quarter, an increase of 4bps and 2.98% for the same period last year, an increase of 63bps.

 

 

Non-interest Income

 

Non-interest income for the three months ended March 31, 2026, was $2.0 million, a decrease of $1.4 million, or 41.30%, compared to $3.5 million for the three months ended December 31, 2025, a decrease of $0.3 million, or 14.24%, compared to the three months ended March 31, 2025.

The $1.4 million decrease in non-interest income from the three months ended December 31, 2025 was largely attributable to a decrease of $0.5 million in other non-interest income, grant income of $0.4 million which had been recognized in the prior quarter and a decrease of $0.4 million in late and prepayment charges.

 

The $0.3 million decrease in non-interest income from the three months ended March 31, 2025 was largely attributable to a decrease of $0.4 million in income on sale of SBA loans.

 

Non-interest Expense

 

Non-interest expense for the three months ended March 31, 2026 was $17.2 million, an increase of $0.6 million, or 3.64%, compared to $16.6 million for the three months ended December 31, 2025 and an increase of $0.4 million, or 2.08%, compared to $16.9 million for the three months ended March 31, 2025.

 

The $0.6 million increase in non-interest expense from the three months ended December 31, 2025 was mainly attributable to increases of $0.6 million in compensation and benefits, $0.3 million in federal deposit insurance and regulatory assessment and $0.1 million in marketing and promotional expenses, partially offset by a decrease of $0.4 million in occupancy and equipment.

 

The $0.4 million increase in non-interest expense from the three months ended March 31, 2025 was mainly attributable to increases of $0.8 million in compensation and benefit and $0.1 million in marketing and promotional expenses, partially offset by decreases of $0.3 million in direct loan expenses, $0.2 million in occupancy and equipment and $0.2 million in other operating expenses.

 

 

Credit Quality:

 

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $23.6 million at March 31, 2026 compared to $30.2 million at December 31, 2025 and $32.0 million at March 31, 2025.

 

During the three months ended March 31, 2026, a credit loss provision of $1.7 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. During the three months ended December 31, 2025, a credit loss provision of $1.1 million on loans was recorded, consisting of $1.5 million charged on the funded portion and $0.4 million benefit on the unfunded portion on loans. During the three months ended March 31, 2025, a credit loss benefit of $0.3 million on loans was recorded, consisting of $0.7 million charged on the funded portion on loans and a benefit of $1.0 million on the unfunded portion on loans.

3

 

 

Balance Sheet Summary

 

Total assets increased $76.8 million, or 2.38%, to $3.30 billion as of March 31, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $99.4 million in net loans receivable, $2.0 million in other assets, $1.4 million in accrued interest receivable and $0.2 million in deferred tax assets, partially offset by decreases of $9.5 million in held-to-maturity securities, $8.9 million in cash and cash equivalents, $5.0 million in available-for-sale securities, $1.3 million in mortgage loans held for sale, $1.1 million in Federal Home Loan Bank of New York stock and $0.5 million in premises and equipment, net.

 

Total liabilities increased $67.0 million, or 2.50%, to $2.75 billion as of March 31, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $87.2 million in deposits, $4.2 million in other liabilities and $0.6 million in accrued interest payable, partially offset by a decrease of $25.0 million in borrowings.

Total stockholders’ equity increased $9.8 million, or 1.81%, to $551.4 million as of March 31, 2026, from $541.5 million as of December 31, 2025. The $9.8 million increase in stockholders’ equity was largely attributable to $8.6 million in net income, $0.6 million impact to additional paid in capital as a result of share-based compensation, $0.6 million from release of ESOP shares and $0.2 million from exercise of stock options and $0.1 million in other comprehensive income, offset by $0.3 million related to the dividend paid on preferred shares during the quarter ended March 31, 2026.

 

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, 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, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank. N.A. also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, Federal Home Loan Bank stock and Federal Reserve Bank stock.

Forward Looking Statements

Certain statements herein 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 safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank, N.A. operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank, N.A.’s loans; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the global economy, including negative changes that may arise from armed conflict and geopolitical instability; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank, N.A.’s market area; Ponce Bank, N.A.’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

4

 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

27,429

 

 

$

28,511

 

 

$

29,296

 

 

$

35,767

 

 

$

32,113

 

Interest-bearing deposits

 

89,817

 

 

 

97,643

 

 

 

117,283

 

 

 

90,872

 

 

 

97,780

 

Total cash and cash equivalents

 

117,246

 

 

 

126,154

 

 

 

146,579

 

 

 

126,639

 

 

 

129,893

 

Available-for-sale securities, at fair value

 

87,150

 

 

 

92,196

 

 

 

94,822

 

 

 

96,562

 

 

 

103,570

 

Held-to-maturity securities, at amortized cost

 

263,514

 

 

 

272,982

 

 

 

285,125

 

 

 

336,879

 

 

 

358,024

 

Placement with banks

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

Mortgage loans held for sale, at fair value

 

2,127

 

 

 

3,388

 

 

 

5,794

 

 

 

5,703

 

 

 

8,567

 

Loans receivable, net

 

2,698,649

 

 

 

2,599,258

 

 

 

2,490,046

 

 

 

2,458,712

 

 

 

2,370,931

 

Accrued interest receivable

 

19,274

 

 

 

17,905

 

 

 

18,903

 

 

 

19,126

 

 

 

19,008

 

Premises and equipment, net

 

15,159

 

 

 

15,638

 

 

 

16,129

 

 

 

16,067

 

 

 

16,417

 

Right of use assets

 

27,633

 

 

 

27,583

 

 

 

28,295

 

 

 

28,806

 

 

 

29,496

 

Federal Home Loan Bank of New York stock (FHLBNY), at cost

 

28,180

 

 

 

29,309

 

 

 

25,945

 

 

 

26,620

 

 

 

25,807

 

Federal Reserve Bank of New York stock (FRBNY), at cost

 

10,706

 

 

 

10,698

 

 

 

—

 

 

 

—

 

 

 

—

 

Deferred tax assets

 

11,729

 

 

 

11,501

 

 

 

12,402

 

 

 

12,143

 

 

 

11,629

 

Other assets

 

19,141

 

 

 

17,109

 

 

 

32,790

 

 

 

26,363

 

 

 

16,245

 

Total assets

$

3,300,757

 

 

$

3,223,970

 

 

$

3,157,079

 

 

$

3,153,869

 

 

$

3,089,836

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

2,133,795

 

 

$

2,046,635

 

 

$

2,063,081

 

 

$

2,053,151

 

 

$

2,017,848

 

Borrowings

 

571,100

 

 

 

596,100

 

 

 

521,100

 

 

 

536,100

 

 

 

521,100

 

Operating lease liabilities

 

29,429

 

 

 

29,353

 

 

 

30,028

 

 

 

30,501

 

 

 

31,126

 

Accrued interest payable

 

4,338

 

 

 

3,788

 

 

 

4,372

 

 

 

4,161

 

 

 

4,628

 

Other liabilities

 

10,732

 

 

 

6,545

 

 

 

8,663

 

 

 

8,868

 

 

 

1,248

 

Total liabilities

 

2,749,394

 

 

 

2,682,421

 

 

 

2,627,244

 

 

 

2,632,781

 

 

 

2,575,950

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 100,000,000 shares authorized

 

225,000

 

 

 

225,000

 

 

 

225,000

 

 

 

225,000

 

 

 

225,000

 

Common stock, $0.01 par value; 200,000,000 shares authorized

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

Treasury stock, at cost

 

(5,738

)

 

 

(6,164

)

 

 

(7,270

)

 

 

(7,404

)

 

 

(7,641

)

Additional paid-in-capital

 

209,219

 

 

 

208,604

 

 

 

208,909

 

 

 

208,275

 

 

 

207,888

 

Retained earnings

 

143,674

 

 

 

135,332

 

 

 

125,477

 

 

 

119,250

 

 

 

113,432

 

Accumulated other comprehensive loss

 

(10,680

)

 

 

(10,820

)

 

 

(11,586

)

 

 

(13,047

)

 

 

(13,515

)

Unearned compensation ─ ESOP

 

(10,361

)

 

 

(10,652

)

 

 

(10,944

)

 

 

(11,235

)

 

 

(11,527

)

Total stockholders' equity

 

551,363

 

 

 

541,549

 

 

 

529,835

 

 

 

521,088

 

 

 

513,886

 

Total liabilities and stockholders' equity

$

3,300,757

 

 

$

3,223,970

 

 

$

3,157,079

 

 

$

3,153,869

 

 

$

3,089,836

 

 

 

 

 

5

 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

 

 

Three Months Ended

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

$

43,982

 

 

$

43,599

 

 

$

41,486

 

 

$

40,291

 

 

$

37,136

 

Interest on deposits due from banks

 

770

 

 

 

1,209

 

 

 

978

 

 

 

807

 

 

 

1,668

 

Interest and dividend on securities and FHLBNY stock

 

3,910

 

 

 

4,013

 

 

 

4,383

 

 

 

4,762

 

 

 

5,193

 

Total interest and dividend income

 

48,662

 

 

 

48,821

 

 

 

46,847

 

 

 

45,860

 

 

 

43,997

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

6,415

 

 

 

6,706

 

 

 

6,553

 

 

 

7,382

 

 

 

7,754

 

Interest on other deposits

 

8,630

 

 

 

9,106

 

 

 

9,996

 

 

 

9,058

 

 

 

8,554

 

Interest on borrowings

 

5,391

 

 

 

5,075

 

 

 

5,050

 

 

 

4,994

 

 

 

5,486

 

Total interest expense

 

20,436

 

 

 

20,887

 

 

 

21,599

 

 

 

21,434

 

 

 

21,794

 

Net interest income

 

28,226

 

 

 

27,934

 

 

 

25,248

 

 

 

24,426

 

 

 

22,203

 

Provision (benefit) for credit losses

 

1,656

 

 

 

1,078

 

 

 

1,364

 

 

 

1,626

 

 

 

(285

)

Net interest income after provision (benefit) for credit losses

 

26,570

 

 

 

26,856

 

 

 

23,884

 

 

 

22,800

 

 

 

22,488

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

539

 

 

 

542

 

 

 

539

 

 

 

511

 

 

 

525

 

Brokerage commissions

 

—

 

 

 

23

 

 

 

8

 

 

 

—

 

 

 

4

 

Late and prepayment charges

 

726

 

 

 

1,173

 

 

 

385

 

 

 

530

 

 

 

697

 

Income on sale of mortgage loans

 

120

 

 

 

139

 

 

 

166

 

 

 

169

 

 

 

148

 

Income on sale of SBA loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

404

 

Grant income

 

—

 

 

 

428

 

 

 

429

 

 

 

428

 

 

 

—

 

Other

 

657

 

 

 

1,174

 

 

 

(35

)

 

 

422

 

 

 

603

 

Total non-interest income

 

2,042

 

 

 

3,479

 

 

 

1,492

 

 

 

2,060

 

 

 

2,381

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

8,663

 

 

 

8,113

 

 

 

7,868

 

 

 

7,627

 

 

 

7,780

 

Occupancy and equipment

 

3,672

 

 

 

4,033

 

 

 

3,934

 

 

 

3,907

 

 

 

3,913

 

Data processing expenses

 

1,219

 

 

 

1,223

 

 

 

1,296

 

 

 

1,188

 

 

 

1,152

 

Direct loan expenses

 

121

 

 

 

116

 

 

 

155

 

 

 

241

 

 

 

388

 

Insurance and surety bond premiums

 

333

 

 

 

324

 

 

 

318

 

 

 

297

 

 

 

315

 

Office supplies, telephone and postage

 

193

 

 

 

186

 

 

 

170

 

 

 

174

 

 

 

170

 

Professional fees

 

1,346

 

 

 

1,392

 

 

 

1,409

 

 

 

1,367

 

 

 

1,364

 

Marketing and promotional expenses

 

228

 

 

 

94

 

 

 

184

 

 

 

266

 

 

 

83

 

Federal deposit insurance and regulatory assessment

 

409

 

 

 

97

 

 

 

266

 

 

 

546

 

 

 

461

 

Other operating expenses

 

1,056

 

 

 

1,056

 

 

 

1,018

 

 

 

1,256

 

 

 

1,262

 

Total non-interest expense

 

17,240

 

 

 

16,634

 

 

 

16,618

 

 

 

16,869

 

 

 

16,888

 

Income before income taxes

 

11,372

 

 

 

13,701

 

 

 

8,758

 

 

 

7,991

 

 

 

7,981

 

Provision for income taxes

 

2,749

 

 

 

3,565

 

 

 

2,250

 

 

 

1,891

 

 

 

2,022

 

Net income

$

8,623

 

 

$

10,136

 

 

$

6,508

 

 

$

6,100

 

 

$

5,959

 

Dividends on preferred shares

 

281

 

 

 

281

 

 

 

281

 

 

 

282

 

 

 

281

 

Net income available to common stockholders

$

8,342

 

 

$

9,855

 

 

$

6,227

 

 

$

5,818

 

 

$

5,678

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.36

 

 

$

0.43

 

 

$

0.27

 

 

$

0.26

 

 

$

0.25

 

Diluted

$

0.36

 

 

$

0.42

 

 

$

0.27

 

 

$

0.25

 

 

$

0.25

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

22,988,317

 

 

 

22,837,044

 

 

 

22,766,195

 

 

 

22,716,615

 

 

 

22,662,916

 

Diluted

 

23,331,314

 

 

 

23,263,708

 

 

 

23,135,448

 

 

 

22,947,769

 

 

 

22,876,740

 

 

 

 

 

6

 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

 

 

 

For the Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

 

Variance $

 

 

Variance %

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

 

$

43,982

 

 

$

37,136

 

 

$

6,846

 

 

 

18.43

%

Interest on deposits due from banks

 

 

770

 

 

 

1,668

 

 

 

(898

)

 

 

(53.84

%)

Interest and dividend on securities and FHLBNY stock

 

 

3,910

 

 

 

5,193

 

 

 

(1,283

)

 

 

(24.71

%)

Total interest and dividend income

 

 

48,662

 

 

 

43,997

 

 

 

4,665

 

 

 

10.60

%

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

 

6,415

 

 

 

7,754

 

 

 

(1,339

)

 

 

(17.27

%)

Interest on other deposits

 

 

8,630

 

 

 

8,554

 

 

 

76

 

 

 

0.89

%

Interest on borrowings

 

 

5,391

 

 

 

5,486

 

 

 

(95

)

 

 

(1.73

%)

Total interest expense

 

 

20,436

 

 

 

21,794

 

 

 

(1,358

)

 

 

(6.23

%)

Net interest income

 

 

28,226

 

 

 

22,203

 

 

 

6,023

 

 

 

27.13

%

Provision (benefit) for credit losses

 

 

1,656

 

 

 

(285

)

 

 

1,941

 

 

 

(681.05

%)

Net interest income after provision (benefit) for credit losses

 

 

26,570

 

 

 

22,488

 

 

 

4,082

 

 

 

18.15

%

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

539

 

 

 

525

 

 

 

14

 

 

 

2.67

%

Brokerage commissions

 

 

—

 

 

 

4

 

 

 

(4

)

 

 

(100.00

%)

Late and prepayment charges

 

 

726

 

 

 

697

 

 

 

29

 

 

 

4.16

%

Income on sale of mortgage loans

 

 

120

 

 

 

148

 

 

 

(28

)

 

 

(18.92

%)

Income on sale of SBA loans

 

 

—

 

 

 

404

 

 

 

(404

)

 

 

(100.00

%)

Other

 

 

657

 

 

 

603

 

 

 

54

 

 

 

8.96

%

Total non-interest income

 

 

2,042

 

 

 

2,381

 

 

 

(339

)

 

 

(14.24

%)

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

8,663

 

 

 

7,780

 

 

 

883

 

 

 

11.35

%

Occupancy and equipment

 

 

3,672

 

 

 

3,913

 

 

 

(241

)

 

 

(6.16

%)

Data processing expenses

 

 

1,219

 

 

 

1,152

 

 

 

67

 

 

 

5.82

%

Direct loan expenses

 

 

121

 

 

 

388

 

 

 

(267

)

 

 

(68.81

%)

Insurance and surety bond premiums

 

 

333

 

 

 

315

 

 

 

18

 

 

 

5.71

%

Office supplies, telephone and postage

 

 

193

 

 

 

170

 

 

 

23

 

 

 

13.53

%

Professional fees

 

 

1,346

 

 

 

1,364

 

 

 

(18

)

 

 

(1.32

%)

Marketing and promotional expenses

 

 

228

 

 

 

83

 

 

 

145

 

 

 

174.70

%

Federal deposit insurance and regulatory assessments

 

 

409

 

 

 

461

 

 

 

(52

)

 

 

(11.28

%)

Other operating expenses

 

 

1,056

 

 

 

1,262

 

 

 

(206

)

 

 

(16.32

%)

Total non-interest expense

 

 

17,240

 

 

 

16,888

 

 

 

352

 

 

 

2.08

%

Income before income taxes

 

 

11,372

 

 

 

7,981

 

 

 

3,391

 

 

 

42.49

%

Provision for income taxes

 

 

2,749

 

 

 

2,022

 

 

 

727

 

 

 

35.95

%

Net income

 

$

8,623

 

 

$

5,959

 

 

$

2,664

 

 

 

44.71

%

Dividends on preferred shares

 

 

281

 

 

 

281

 

 

 

—

 

 

 

0.00

%

Net income available to common stockholders

 

$

8,342

 

 

$

5,678

 

 

$

2,664

 

 

 

46.92

%

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.36

 

 

$

0.25

 

 

$

0.11

 

 

 

44.00

%

Diluted

 

$

0.36

 

 

$

0.25

 

 

$

0.11

 

 

 

44.00

%

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,988,317

 

 

 

22,662,916

 

 

 

325,401

 

 

 

1.44

%

Diluted

 

 

23,331,314

 

 

 

22,876,740

 

 

 

454,574

 

 

 

1.99

%

 

 

7

 

Ponce Financial Group, Inc. and Subsidiaries

Loans Receivable excluding Mortgage Loans Held for Sale

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

(Dollars in thousands)

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

$

431,377

 

 

 

15.82

%

 

$

434,374

 

 

 

16.54

%

 

$

444,602

 

 

 

17.67

%

 

$

452,350

 

 

 

18.21

%

 

$

463,542

 

 

 

19.37

%

Multifamily residential

 

 

915,333

 

 

 

33.58

%

 

 

756,542

 

 

 

28.83

%

 

 

688,574

 

 

 

27.39

%

 

 

693,670

 

 

 

27.96

%

 

 

675,541

 

 

 

28.24

%

Nonresidential properties

 

 

534,256

 

 

 

19.60

%

 

 

526,210

 

 

 

20.05

%

 

 

436,175

 

 

 

17.35

%

 

 

404,512

 

 

 

16.30

%

 

 

390,681

 

 

 

16.33

%

Construction and land

 

 

763,990

 

 

 

28.03

%

 

 

854,096

 

 

 

32.54

%

 

 

886,369

 

 

 

35.25

%

 

 

883,462

 

 

 

35.59

%

 

 

815,425

 

 

 

34.08

%

Total mortgage loans

 

 

2,644,956

 

 

 

97.03

%

 

 

2,571,222

 

 

 

97.96

%

 

 

2,455,720

 

 

 

97.66

%

 

 

2,433,994

 

 

 

98.06

%

 

 

2,345,189

 

 

 

98.02

%

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business loans

 

 

80,366

 

 

 

2.95

%

 

 

53,063

 

 

 

2.02

%

 

 

58,012

 

 

 

2.31

%

 

 

47,372

 

 

 

1.91

%

 

 

46,329

 

 

 

1.94

%

Consumer loans

 

 

596

 

 

 

0.02

%

 

 

625

 

 

 

0.02

%

 

 

727

 

 

 

0.03

%

 

 

840

 

 

 

0.03

%

 

 

997

 

 

 

0.04

%

Total non-mortgage loans

 

 

80,962

 

 

 

2.97

%

 

 

53,688

 

 

 

2.04

%

 

 

58,739

 

 

 

2.34

%

 

 

48,212

 

 

 

1.94

%

 

 

47,326

 

 

 

1.98

%

Total loans, gross

 

 

2,725,918

 

 

 

100.00

%

 

 

2,624,910

 

 

 

100.00

%

 

 

2,514,459

 

 

 

100.00

%

 

 

2,482,206

 

 

 

100.00

%

 

 

2,392,515

 

 

 

100.00

%

Net deferred loan origination costs

 

 

(1,031

)

 

 

 

 

 

(203

)

 

 

 

 

 

351

 

 

 

 

 

 

606

 

 

 

 

 

 

1,390

 

 

 

 

Allowance for credit losses on loans

 

 

(26,238

)

 

 

 

 

 

(25,449

)

 

 

 

 

 

(24,764

)

 

 

 

 

 

(24,100

)

 

 

 

 

 

(22,974

)

 

 

 

Loans, net

 

$

2,698,649

 

 

 

 

 

$

2,599,258

 

 

 

 

 

$

2,490,046

 

 

 

 

 

$

2,458,712

 

 

 

 

 

$

2,370,931

 

 

 

 

 

 

 

8

 

Ponce Financial Group, Inc. and Subsidiaries

Allowance for Credit Losses on Loans

 

 

For the Three Months Ended

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

 

(Dollars in thousands)

 

Allowance for credit losses on loans at beginning of the period

$

25,449

 

 

$

24,764

 

 

$

24,100

 

 

$

22,974

 

 

$

22,502

 

Provision for credit losses on loans

 

1,293

 

 

 

1,526

 

 

 

864

 

 

 

1,348

 

 

 

731

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

—

 

 

 

(32

)

 

 

—

 

 

 

—

 

 

 

(38

)

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

(504

)

 

 

(801

)

 

 

(200

)

 

 

(222

)

 

 

(222

)

Consumer

 

—

 

 

 

(44

)

 

 

—

 

 

 

—

 

 

 

(3

)

Total charge-offs

 

(504

)

 

 

(877

)

 

 

(200

)

 

 

(222

)

 

 

(263

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

—

 

 

 

35

 

 

 

—

 

 

 

—

 

 

 

4

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total recoveries

 

—

 

 

 

36

 

 

 

—

 

 

 

—

 

 

 

4

 

Net (charge-offs) recoveries

 

(504

)

 

 

(841

)

 

 

(200

)

 

 

(222

)

 

 

(259

)

Allowance for credit losses on loans at end of the period

$

26,238

 

 

$

25,449

 

 

$

24,764

 

 

$

24,100

 

 

$

22,974

 

 

9

 

 

Ponce Financial Group, Inc. and Subsidiaries

Deposits

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

 

(Dollars in thousands)

 

Demand

 

$

241,012

 

 

 

11.29

%

 

$

208,250

 

 

 

10.18

%

 

$

192,595

 

 

 

9.34

%

 

$

197,671

 

 

 

9.63

%

 

$

212,139

 

 

 

10.51

%

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA accounts

 

 

78,192

 

 

 

3.66

%

 

 

84,012

 

 

 

4.10

%

 

 

75,051

 

 

 

3.64

%

 

 

63,626

 

 

 

3.10

%

 

 

74,430

 

 

 

3.69

%

Money market accounts

 

 

811,982

 

 

 

38.05

%

 

 

779,532

 

 

 

38.09

%

 

 

821,844

 

 

 

39.84

%

 

 

790,939

 

 

 

38.52

%

 

 

692,753

 

 

 

34.33

%

Reciprocal deposits

 

 

162,926

 

 

 

7.64

%

 

 

152,630

 

 

 

7.46

%

 

 

154,548

 

 

 

7.49

%

 

 

136,693

 

 

 

6.66

%

 

 

141,838

 

 

 

7.03

%

Savings accounts (1)

 

 

118,373

 

 

 

5.55

%

 

 

117,708

 

 

 

5.75

%

 

 

117,401

 

 

 

5.69

%

 

 

113,701

 

 

 

5.53

%

 

 

119,023

 

 

 

5.90

%

Total NOW, money market, reciprocal and savings accounts

 

 

1,171,473

 

 

 

54.90

%

 

 

1,133,882

 

 

 

55.40

%

 

 

1,168,844

 

 

 

56.66

%

 

 

1,104,959

 

 

 

53.81

%

 

 

1,028,044

 

 

 

50.95

%

Certificates of deposit of $250K or more

 

 

258,093

 

 

 

12.10

%

 

 

202,500

 

 

 

9.89

%

 

 

209,819

 

 

 

10.17

%

 

 

220,671

 

 

 

10.75

%

 

 

219,721

 

 

 

10.89

%

Brokered certificates of deposit (2)

 

 

54,553

 

 

 

2.56

%

 

 

67,942

 

 

 

3.32

%

 

 

67,952

 

 

 

3.29

%

 

 

69,531

 

 

 

3.39

%

 

 

84,531

 

 

 

4.19

%

Listing service deposits (2)

 

 

1,243

 

 

 

0.06

%

 

 

4,150

 

 

 

0.20

%

 

 

4,150

 

 

 

0.20

%

 

 

6,140

 

 

 

0.30

%

 

 

6,140

 

 

 

0.30

%

All other certificates of deposit less than $250K

 

 

407,421

 

 

 

19.09

%

 

 

429,911

 

 

 

21.01

%

 

 

419,721

 

 

 

20.34

%

 

 

454,179

 

 

 

22.12

%

 

 

467,273

 

 

 

23.16

%

Total certificates of deposit

 

 

721,310

 

 

 

33.81

%

 

 

704,503

 

 

 

34.42

%

 

 

701,642

 

 

 

34.00

%

 

 

750,521

 

 

 

36.56

%

 

 

777,665

 

 

 

38.54

%

Total interest-bearing deposits

 

 

1,892,783

 

 

 

88.71

%

 

 

1,838,385

 

 

 

89.82

%

 

 

1,870,486

 

 

 

90.66

%

 

 

1,855,480

 

 

 

90.37

%

 

 

1,805,709

 

 

 

89.49

%

Total deposits

 

$

2,133,795

 

 

 

100.00

%

 

$

2,046,635

 

 

 

100.00

%

 

$

2,063,081

 

 

 

100.00

%

 

$

2,053,151

 

 

 

100.00

%

 

$

2,017,848

 

 

 

100.00

%

 

(1)
As of June 30, 2025 and March 31, 2025, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million and $12.9 million, respectively, were reclassified to Deposits.
(2)
There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.

10

 

Ponce Financial Group, Inc. and Subsidiaries

Nonperforming Assets

 

 

As of

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

 

(Dollars in thousands)

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

$

3,158

 

 

$

4,427

 

 

$

3,176

 

 

$

1,859

 

 

$

2,475

 

Multifamily residential

 

9,228

 

 

 

13,112

 

 

 

14,202

 

 

 

11,703

 

 

 

9,788

 

Nonresidential properties

 

—

 

 

 

—

 

 

 

—

 

 

 

405

 

 

 

—

 

Construction and land

 

7,061

 

 

 

8,247

 

 

 

8,907

 

 

 

8,907

 

 

 

14,159

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

427

 

 

 

667

 

 

 

880

 

 

 

276

 

 

 

170

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)

$

19,874

 

 

$

26,453

 

 

$

27,165

 

 

$

23,150

 

 

$

26,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing modifications to borrowers experiencing financial difficulty (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

477

 

 

 

410

 

 

 

698

 

 

 

708

 

 

 

710

 

Total non-accruing modifications to borrowers experiencing financial difficulty (1)

 

477

 

 

 

410

 

 

 

698

 

 

 

708

 

 

 

710

 

Total non-performing assets (2)

$

20,351

 

 

$

26,863

 

 

$

27,863

 

 

$

23,858

 

 

$

27,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing modifications to borrowers experiencing financial difficulty (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

2,481

 

 

 

2,574

 

 

 

3,725

 

 

 

3,791

 

 

 

3,830

 

Multifamily residential

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Nonresidential properties

 

613

 

 

 

621

 

 

 

629

 

 

 

655

 

 

 

644

 

Construction and land

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

185

 

 

 

190

 

 

 

196

 

 

 

203

 

 

 

209

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total accruing modifications to borrowers experiencing financial difficulty (1)

$

3,279

 

 

$

3,385

 

 

$

4,550

 

 

$

4,649

 

 

$

4,683

 

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)

$

23,630

 

 

$

30,248

 

 

$

32,413

 

 

$

28,507

 

 

$

31,985

 

Total non-performing assets to total assets

 

0.62

%

 

 

0.83

%

 

 

0.88

%

 

 

0.76

%

 

 

0.87

%

 

 

(1) Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

 

(2) Includes nonperforming mortgage loans held for sale.

11

 

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

 

 

 

For the Three Months Ended March 31,

 

 

2026

 

 

2025

 

 

Average

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

Average

 

 

Outstanding

 

 

 

 

 

Average

 

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

(Dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

$

2,680,018

 

 

$

43,982

 

 

 

6.66

%

 

$

2,369,433

 

 

$

37,136

 

 

 

6.36

%

Securities (3)

 

360,452

 

 

 

3,248

 

 

 

3.65

%

 

 

467,560

 

 

 

4,521

 

 

 

3.92

%

Other (4)

 

129,585

 

 

 

1,432

 

 

 

4.48

%

 

 

186,021

 

 

 

2,340

 

 

 

5.10

%

Total interest-earning assets

 

3,170,055

 

 

 

48,662

 

 

 

6.23

%

 

 

3,023,014

 

 

 

43,997

 

 

 

5.90

%

Non-interest-earning assets

 

93,219

 

 

 

 

 

 

 

 

 

109,166

 

 

 

 

 

 

 

Total assets

$

3,263,274

 

 

 

 

 

 

 

 

$

3,132,180

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA

$

77,833

 

 

$

134

 

 

 

0.70

%

 

$

72,354

 

 

$

115

 

 

 

0.64

%

Money market

 

949,007

 

 

 

8,468

 

 

 

3.62

%

 

 

827,948

 

 

 

8,411

 

 

 

4.12

%

Savings (5)

 

120,205

 

 

 

28

 

 

 

0.09

%

 

 

117,616

 

 

 

28

 

 

 

0.10

%

Certificates of deposit

 

718,301

 

 

 

6,415

 

 

 

3.62

%

 

 

794,270

 

 

 

7,754

 

 

 

3.96

%

Total deposits

 

1,865,346

 

 

 

15,045

 

 

 

3.27

%

 

 

1,812,188

 

 

 

16,308

 

 

 

3.65

%

Borrowings

 

584,100

 

 

 

5,391

 

 

 

3.74

%

 

 

568,601

 

 

 

5,486

 

 

 

3.91

%

Total interest-bearing liabilities

 

2,449,446

 

 

 

20,436

 

 

 

3.38

%

 

 

2,380,789

 

 

 

21,794

 

 

 

3.71

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

221,056

 

 

 

—

 

 

 

 

 

 

196,627

 

 

 

—

 

 

 

 

Other non-interest-bearing liabilities

 

44,038

 

 

 

—

 

 

 

 

 

 

43,915

 

 

 

—

 

 

 

 

Total non-interest-bearing liabilities

 

265,094

 

 

 

—

 

 

 

 

 

 

240,542

 

 

 

—

 

 

 

 

Total liabilities

 

2,714,540

 

 

 

20,436

 

 

 

 

 

 

2,621,331

 

 

 

21,794

 

 

 

 

Total equity

 

548,735

 

 

 

 

 

 

 

 

 

510,849

 

 

 

 

 

 

 

Total liabilities and total equity

$

3,263,275

 

 

 

 

 

 

3.38

%

 

$

3,132,180

 

 

 

 

 

 

3.71

%

Net interest income

 

 

 

$

28,226

 

 

 

 

 

 

 

 

$

22,203

 

 

 

 

Net interest rate spread (6)

 

 

 

 

 

 

 

2.85

%

 

 

 

 

 

 

 

 

2.19

%

Net interest-earning assets (7)

$

720,609

 

 

 

 

 

 

 

 

$

642,225

 

 

 

 

 

 

 

Net interest margin (8)

 

 

 

 

 

 

 

3.61

%

 

 

 

 

 

 

 

 

2.98

%

Average interest-earning assets to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest-bearing liabilities

 

 

 

 

 

 

 

129.42

%

 

 

 

 

 

 

 

 

126.98

%

 

(1)
Annualized where appropriate.
(2)
Loans include loans and mortgage loans held for sale, at fair value.
(3)
Securities include available-for-sale securities and held-to-maturity securities.
(4)
Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5)
For the three months ended March 31, 2025, advance payments by borrowers for taxes and insurance in the amounts of $12.4 million, were reclassified to savings.
(6)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)
Net interest margin represents net interest income divided by average total interest-earning assets.

 

12

 

Ponce Financial Group, Inc. and Subsidiaries

Other Data

 

 

As of

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares issued

 

24,886,711

 

 

 

24,886,711

 

 

 

24,886,711

 

 

 

24,886,711

 

 

 

24,886,711

 

Less treasury shares

 

698,810

 

 

 

750,785

 

 

 

885,586

 

 

 

901,911

 

 

 

920,520

 

Common shares outstanding at end of period

 

24,187,901

 

 

 

24,135,926

 

 

 

24,001,125

 

 

 

23,984,800

 

 

 

23,966,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share

$

13.49

 

 

$

13.12

 

 

$

12.70

 

 

$

12.34

 

 

$

12.05

 

Tangible book value per common share (1)

$

13.49

 

 

$

13.12

 

 

$

12.70

 

 

$

12.34

 

 

$

12.05

 

 

 

(1)
Tangible book value per common share is a non-GAAP financial measure and is calculated by dividing tangible common equity by common shares outstanding. Tangible common equity is defined as total shareholders’ equity less goodwill and other intangible assets, net of applicable deferred taxes. The Company believes that tangible book value per common share is a useful measure for investors, regulators, and analysts because it reflects the Company’s capital position excluding the impact of goodwill and other intangible assets, which may not be realizable in a liquidation scenario. This measure is commonly used in the banking industry to assess financial condition and capital adequacy. Tangible book value per common share should not be considered a substitute for book value per common share, which is calculated in accordance with GAAP, and the Company’s definition of tangible book value per common share may differ from similarly titled measures used by other companies. During the periods presented, the Company did not make any adjustments for goodwill and other intangible assets, so tangible book value per common share is equal to the book value per common share as calculated in accordance with GAAP.

 

13