8-K
Ponce Financial Group, Inc. (PDLB)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): April 25, 2025 |
|---|
Ponce Financial Group, Inc.
(Exact name of Registrant as Specified in Its Charter)
| Maryland | 001-41255 | 87-1893965 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 2244 Westchester Avenue | ||
| Bronx, New York | 10462 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: (718) 931-9000 | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $0.01 per share | PDLB | The Nasdaq Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 25, 2025, Ponce Financial Group, Inc., the holding company for Ponce Bank (the "Bank"), issued a press release announcing its financial results with respect to its first quarter ended March 31, 2025. The Company’s press release is included as Exhibit 99.1 to this report.
The information set forth in this Item 2.02 and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.
Item 7.01 Regulation FD Disclosure.
The Company is scheduled to make presentations to current and prospective investors after April 25, 2025. Attached as Exhibit 99.2 of this Form 8-K is a copy of the presentation which Ponce Financial Group, Inc. will make available at these presentations and will post on its website at www.poncebank.com. This report is being furnished to the SEC and shall not be deemed "filed" for any purpose.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit Number | Description |
|---|---|
| 99.1 | Press release dated April 25, 2025 |
| 99.2 | Presentation of Ponce Financial Group |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Ponce Financial Group, Inc. | |||
|---|---|---|---|
| Date: | April 25, 2025 | By: | /s/ Carlos P. Naudon |
| Carlos P. Naudon<br>President and Chief Executive Officer |
EX-99.1
Exhibit 99.1
Ponce Financial Group, Inc. Reports First Quarter 2025 Results
NEW YORK, April 25, 2025 - Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the first quarter of 2025.
First Quarter 2025 Highlights (Compared to Prior Periods):
- Net income available to common stockholders was $5.7 million, or $0.25 per diluted share for the three months ended March 31, 2025, as compared to net income available to common stockholders of $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024 and net income available to common stockholders of $2.4 million, or $0.11 per diluted share for the three months ended March 31, 2024. Total net income for the three months ended March 31, 2025 was $6.0 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended March 31, 2025.
- Included in the $5.7 million of net income available to common stockholders for the first quarter of 2025 results is $44.0 million in interest and dividend income, $2.4 million in non-interest income and $0.3 million in benefit for credit losses, offset by $21.8 million in interest expense, $16.9 million in non-interest expense, $2.0 million in provision for income taxes and $0.3 million in dividends on preferred shares.
- Net interest income of $22.2 million for the first quarter of 2025 increased $1.5 million, or 7.11%, from the prior quarter and increased $3.4 million, or 17.96%, from the same quarter last year.
- Net interest margin was 2.98% for the first quarter of 2025, versus 2.80% for the prior quarter and 2.71% for the same quarter last year.
- Non-interest income for the three months ended March 31, 2025 was $2.4 million, an increase of $0.3 million, or 13.54%, from $2.1 million for the three months ended December 31, 2024, and an increase of $0.7 million, or 39.48%, from $1.7 million for the three months ended March 31, 2024.
- Non-interest expense for the three months ended March 31, 2025 was $16.9 million, a decrease of $0.6 million, or 3.30%, from $17.5 million for the three months ended December 31, 2024, and an increase of $0.1 million, or 0.61%, compared to $16.8 million for the three months ended March 31, 2024.
- Cash and equivalents were $129.9 million as of March 31, 2025, a decrease of $9.9 million, or 7.11%, from $139.8 million as of December 31, 2024.
- Securities totaled $461.6 million as of March 31, 2025, a decrease of $11.3 million, or 2.39%, from $472.9 million as of December 31, 2024 primarily due to regular principal payments and the call of one available-for-sale security in the amount of $1.0 million.
- Net loans receivable were $2.37 billion as of March 31, 2025, an increase of $84.3 million, or 3.69%, from $2.29 billion as of December 31, 2024.
- Deposits were $2.00 billion as of March 31, 2025, an increase of $120.1 million, or 6.37%, from $1.88 billion as of December 31, 2024.
President and Chief Executive Officer’s Comments
Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “We continued executing well our strategy of focusing on net interest margin, operating expenses and fee income, which translated into several positive trends this quarter. Our net interest margin this quarter increased by 18 basis points, reflecting both our high-yielding construction loans and our decreasing borrowing costs. In fact, our loan yields rose by 9 basis points while our cost of funds decreased by 10 basis points. Our operating expenses have decreased quarter over quarter, and our non-interest income compares favorably to prior periods. All-in-all, a very good quarter in these turbulent and uncertain times."
Executive Chairman’s Comment
Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “Most of our high-yielding construction lending has an additional benefit – it qualifies as Deep Impact lending under the U.S. Treasury’s Emergency Capital Investment Program and serves to lower the dividends payable on our preferred stock to the U.S. Treasury. Importantly, our construction initiatives also reflect our conservative underwriting, high developer equity requirements and short duration. Of our 64 on-going projects, more than 43 percent already have at least a temporary certificate of occupancy and 80 percent are at least halfway through construction.”
The table below indicate 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, | |||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| Performance Ratios: | |||||||||||||||
| Return on average assets (1) | 0.77 | % | 0.38 | % | 0.33 | % | 0.45 | % | 0.33 | % | |||||
| Return on common equity (1) | 7.97 | % | 3.76 | % | 3.06 | % | 4.60 | % | 3.61 | % | |||||
| Net interest margin (1) (2) | 2.98 | % | 2.80 | % | 2.65 | % | 2.62 | % | 2.71 | % | |||||
| Non-interest expense to average assets (1) | 2.19 | % | 2.25 | % | 2.19 | % | 2.28 | % | 2.35 | % | |||||
| Efficiency ratio (3) | 68.70 | % | 75.63 | % | 80.87 | % | 80.09 | % | 82.56 | % | |||||
| Capital Ratios: | |||||||||||||||
| Total capital to risk-weighted assets (Ponce Financial Group) | 22.84 | % | 22.98 | % | 22.87 | % | 23.86 | % | 24.47 | % | |||||
| Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group) | 12.51 | % | 12.44 | % | 12.28 | % | 12.71 | % | 12.98 | % | |||||
| Tier 1 capital to total assets (Ponce Financial Group) | 16.84 | % | 17.70 | % | 17.81 | % | 17.88 | % | 17.59 | % | |||||
| Total capital to risk-weighted assets (Bank only) | 21.38 | % | 21.47 | % | 21.61 | % | 22.47 | % | 22.79 | % | |||||
| Common equity Tier 1 capital to risk-weighted assets (Bank only) | 20.35 | % | 20.40 | % | 20.45 | % | 21.24 | % | 21.54 | % | |||||
| Tier 1 capital to total assets (Bank only) | 15.61 | % | 15.81 | % | 16.19 | % | 16.70 | % | 16.26 | % | |||||
| Asset Quality Ratios: | |||||||||||||||
| Allowance for credit losses on loans as a percentage of total loans | 0.96 | % | 0.97 | % | 1.09 | % | 1.18 | % | 1.23 | % | |||||
| Allowance for credit losses on loans as a percentage of nonperforming loans | 84.15 | % | 82.29 | % | 139.52 | % | 130.28 | % | 140.90 | % | |||||
| Net (charge-offs) recoveries to average outstanding loans (1) | (0.04 | %) | (0.45 | %) | (0.17 | %) | (0.10 | %) | (0.25 | %) | |||||
| Non-performing loans as a percentage of total assets | 0.88 | % | 0.90 | % | 0.57 | % | 0.65 | % | 0.62 | % | |||||
| Other: | |||||||||||||||
| Number of offices | 18 | 19 | 19 | 18 | 18 | ||||||||||
| Number of full-time equivalent employees | 211 | 218 | 228 | 227 | 233 |
- Annualized where appropriate.
- Net interest margin represents net interest income divided by average total interest-earning assets.
- 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, 2025 was $6.0 million compared to net income of $2.9 million for the three months ended December 31, 2024 and net income of $2.4 million for the three months ended March 31, 2024.
The $3.0 million increase of net income for the three months ended March 31, 2025 compared to the three months ended December 31, 2024 was attributed mainly to increases of $1.5 million in net interest income, an increase of $1.2 million in benefit for credit losses, a decrease of $0.6 million in non-interest expense and an increase of $0.3 million in non-interest income; partially offset by an increase of $0.5 million in provision for income taxes.
The $3.5 million increase of net income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was largely due to increases of $3.4 million in net interest income, $0.7 million in non-interest income and $0.3 million in benefit for credit losses, partially offset by increases of $0.7 million in provision for income taxes and $0.1 million in non-interest expense
Net Interest Income and Net Margin
Net interest income for the three months ended March 31, 2025, increased $1.5 million, or 7.11%, to $22.2 million compared to $20.7 million for the three months ended December 31, 2024 and increased $3.4 million, or 17.96%, compared to $18.8 million for the three months ended March 31, 2024.
The $1.5 million increase in net interest income from the three months ended December 31, 2024 was attributable to an increase of $1.1 million in total interest and dividend income and a decrease of $0.4 million in total interest expense.
The $3.4 million increase in net interest income from the three months ended March 31, 2024 was attributable to an increase of $4.3 million in total interest and dividend income, offset by an increase of $0.9 million in total interest expense.
For the three months ended March 31, 2025, benefit for credit losses amounted to $0.3 million, compared to $0.9 million in provision for credit losses for the prior quarter and a credit loss benefit on loans of less than $0.1 million during the first quarter of 2024.
Net interest margin was 2.98% for the three months ended March 31, 2025 compared to 2.80% for the prior quarter, an increase of 18bps and 2.71% for the same period last year, an increase of 27bps.
Non-interest Income
Non-interest income for the three months ended March 31, 2025, was $2.4 million, an increase of $0.3 million, or 13.54%, compared to $2.1 million for the three months ended December 31, 2024 and an increase of $0.7 million, or 39.48%, compared to $1.7 million for the three months ended March 31, 2024.
The $0.3 million increase in non-interest income from the three months ended December 31, 2024 was largely attributable to increases of $0.4 million in late and prepayment charges and $0.3 million in income on sale of SBA loans, partially offset by decreases of $0.2 million in other non-interest income and $0.1 million in income on sale of mortgage loans.
The $0.7 million increase in non-interest income from the three months ended March 31, 2024 was largely attributable to increases of $0.4 million in income on sale of SBA loans and $0.3 million in late and prepayment charges, partially offset by a decrease of $0.2 million in income on the sale of mortgage loans.
Non-interest Expense
Non-interest expense for the three months ended March 31, 2025, was $16.9 million, a decrease of $0.6 million, or 3.30%, compared to $17.5 million for the three months ended December 31, 2024 and an increase of $0.1 million, or 0.61%, compared to $16.8 million for the three months ended March 31, 2024.
The $0.6 million decrease in non-interest expense from the three months ended December 31, 2024 was mainly attributable to decreases of $0.3 million in professional fees, $0.2 million in marketing and promotional expenses, $0.2 million in direct loan expenses, $0.1 million in office supplies, telephone and postage, partially offset by an increase of $0.1 million in compensation and benefits.
The $0.1 million increase in non-interest expense from the three months ended March 31, 2024 was mainly attributable to increases of $0.5 million in other operating expense and $0.2 million in occupancy and equipment, partially offset by decreases of $0.4 million in professional fees and $0.3 million in direct loan expenses.
Credit Quality:
Non-performing loans were $32.0 million at March 31, 2025 compared to $32.1 million at December 31, 2024 and $22.4 million at March 31, 2024.
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 and a benefit of $1.0 million on the unfunded portion on loans. During the three months ended December 31, 2024, a credit loss provision of $0.9 million on loans were recorded, consisting of $1.1 million charged on the funded portion and a benefit of $0.2 million on unfunded portion on loans. During the three months ended March 31, 2024, a credit loss benefit of $0.1 million on loans were recorded, consisting of $0.3 million benefit on the funded portion and a $0.2 million charged on the on unfunded portion on loans.
Balance Sheet Summary
Total assets increased $49.9 million, or 1.64%, to $3.09 billion as of March 31, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $84.3 million in net loans receivable, $1.2 million in accrued interest receivable and $0.4 million in right of use assets, partially offset by decreases of $9.9 million in cash and cash equivalents, $9.9 million in held-to-maturity securities, $8.4 million in other assets, $3.4 million in Federal Home Loan Bank of New York stock, $2.2 million in mortgage loans held for sale and $1.4 million in available-for-sale securities.
Total liabilities increased $41.5 million, or 1.64%, to $2.58 billion as of March 31, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to an increase of $120.1 million in deposits, $2.6 million in advance payments by borrowers for taxes, $0.9 million in accrued interest payable, $0.4 million in operating lease liabilities, partially offset by decreases of $75.0 million in borrowings and $7.5 million in other liabilities.
Total stockholders’ equity increased $8.4 million, or 1.66%, to $513.9 million as of March 31, 2025, from $505.5 million as of December 31, 2024. The $8.4 million increase in stockholders’ equity was largely attributable to $6.0 million in net income, $1.8 million in other comprehensive income, $0.5 million impact to additional paid in capital as a result of share-based compensation and $0.4 million from release of ESOP shares, offset by $0.3 million in dividends on preferred shares.
About Ponce Financial Group, Inc.
Ponce Financial Group, Inc. is the holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’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 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, and Federal Home Loan 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 operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’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 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’s market area; Ponce Bank’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.
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)
| December 31, | September 30, | June 30, | March 31, | |||||||||||
| 2024 | 2024 | 2024 | 2024 | |||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks: | ||||||||||||||
| Cash | 32,113 | $ | 35,478 | $ | 32,061 | $ | 23,128 | $ | 29,972 | |||||
| Interest-bearing deposits | 97,780 | 104,361 | 123,751 | 80,038 | 104,752 | |||||||||
| Total cash and cash equivalents | 129,893 | 139,839 | 155,812 | 103,166 | 134,724 | |||||||||
| Available-for-sale securities, at fair value | 103,570 | 104,970 | 111,005 | 113,125 | 116,044 | |||||||||
| Held-to-maturity securities, at amortized cost | 358,024 | 367,938 | 403,736 | 442,113 | 452,955 | |||||||||
| Placement with banks | 249 | 249 | 249 | 249 | 249 | |||||||||
| Mortgage loans held for sale, at fair value | 8,567 | 10,736 | 9,566 | 37,764 | 7,860 | |||||||||
| Loans receivable, net | 2,370,931 | 2,286,599 | 2,180,331 | 2,022,173 | 1,981,428 | |||||||||
| Accrued interest receivable | 19,008 | 17,771 | 16,890 | 17,441 | 18,063 | |||||||||
| Premises and equipment, net | 16,417 | 16,794 | 16,843 | 16,976 | 17,396 | |||||||||
| Right of use assets | 29,496 | 29,093 | 29,785 | 30,349 | 31,021 | |||||||||
| Federal Home Loan Bank of New York stock (FHLBNY), at cost | 25,807 | 29,182 | 28,515 | 23,972 | 23,892 | |||||||||
| Deferred tax assets | 11,629 | 12,074 | 11,845 | 13,172 | 13,919 | |||||||||
| Other assets | 16,245 | 24,693 | 51,392 | 21,507 | 21,151 | |||||||||
| Total assets | 3,089,836 | $ | 3,039,938 | $ | 3,015,969 | $ | 2,842,007 | $ | 2,818,702 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Liabilities: | ||||||||||||||
| Deposits | 2,004,947 | $ | 1,884,864 | $ | 1,870,323 | $ | 1,606,097 | $ | 1,585,784 | |||||
| Operating lease liabilities | 31,126 | 30,696 | 31,343 | 31,861 | 32,486 | |||||||||
| Accrued interest payable | 4,628 | 3,712 | 2,918 | 6,820 | 4,218 | |||||||||
| Advance payments by borrowers for taxes and insurance | 12,901 | 10,349 | 13,733 | 10,838 | 13,245 | |||||||||
| Borrowings | 521,100 | 596,100 | 580,421 | 680,421 | 680,421 | |||||||||
| Other liabilities | 1,248 | 8,717 | 12,642 | 8,313 | 8,866 | |||||||||
| Total liabilities | 2,575,950 | 2,534,438 | 2,511,380 | 2,344,350 | 2,325,020 | |||||||||
| 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 | (7,641 | ) | (7,707 | ) | (9,445 | ) | (9,519 | ) | (9,702 | ) | ||||
| Additional paid-in-capital | 207,888 | 207,319 | 208,478 | 207,934 | 207,584 | |||||||||
| Retained earnings | 113,432 | 107,754 | 105,103 | 102,951 | 99,834 | |||||||||
| Accumulated other comprehensive loss | (13,515 | ) | (15,297 | ) | (12,686 | ) | (16,557 | ) | (16,590 | ) | ||||
| Unearned compensation ─ ESOP | (11,527 | ) | (11,818 | ) | (12,110 | ) | (12,401 | ) | (12,693 | ) | ||||
| Total stockholders' equity | 513,886 | 505,500 | 504,589 | 497,657 | 493,682 | |||||||||
| Total liabilities and stockholders' equity | 3,089,836 | $ | 3,039,938 | $ | 3,015,969 | $ | 2,842,007 | $ | 2,818,702 |
All values are in US Dollars.
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, | |||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| Interest and dividend income: | |||||||||||||||
| Interest on loans receivable | $ | 37,136 | $ | 35,622 | $ | 32,945 | $ | 31,281 | $ | 30,664 | |||||
| Interest on deposits due from banks | 1,668 | 1,783 | 2,430 | 1,542 | 2,911 | ||||||||||
| Interest and dividend on securities and FHLBNY stock | 5,193 | 5,481 | 5,918 | 5,969 | 6,091 | ||||||||||
| Total interest and dividend income | 43,997 | 42,886 | 41,293 | 38,792 | 39,666 | ||||||||||
| Interest expense: | |||||||||||||||
| Interest on certificates of deposit | 7,754 | 8,104 | 6,926 | 6,358 | 6,380 | ||||||||||
| Interest on other deposits | 8,554 | 8,476 | 8,519 | 7,389 | 6,540 | ||||||||||
| Interest on borrowings | 5,486 | 5,576 | 6,825 | 7,141 | 7,923 | ||||||||||
| Total interest expense | 21,794 | 22,156 | 22,270 | 20,888 | 20,843 | ||||||||||
| Net interest income | 22,203 | 20,730 | 19,023 | 17,904 | 18,823 | ||||||||||
| (Benefit) provision for credit losses (1) | (285 | ) | 897 | 537 | (867 | ) | (16 | ) | |||||||
| Net interest income after (benefit) provision for credit losses | 22,488 | 19,833 | 18,486 | 18,771 | 18,839 | ||||||||||
| Non-interest income: | |||||||||||||||
| Service charges and fees | 525 | 500 | 508 | 492 | 473 | ||||||||||
| Brokerage commissions | 4 | 44 | — | 9 | 8 | ||||||||||
| Late and prepayment charges | 697 | 318 | 77 | 426 | 359 | ||||||||||
| Income on sale of mortgage loans | 148 | 254 | 218 | 274 | 302 | ||||||||||
| Income on sale of SBA loans | 404 | 148 | — | — | — | ||||||||||
| Other | 603 | 833 | 348 | 1,057 | 565 | ||||||||||
| Total non-interest income | 2,381 | 2,097 | 1,151 | 2,258 | 1,707 | ||||||||||
| Non-interest expense: | |||||||||||||||
| Compensation and benefits | 7,780 | 7,668 | 7,674 | 7,724 | 7,844 | ||||||||||
| Occupancy and equipment | 3,913 | 3,863 | 3,786 | 3,564 | 3,667 | ||||||||||
| Data processing expenses | 1,152 | 1,143 | 1,099 | 1,013 | 1,127 | ||||||||||
| Direct loan expenses | 388 | 617 | 573 | 633 | 732 | ||||||||||
| Insurance and surety bond premiums | 315 | 293 | 292 | 263 | 253 | ||||||||||
| Office supplies, telephone and postage | 170 | 294 | 222 | 233 | 249 | ||||||||||
| Professional fees | 1,364 | 1,703 | 1,351 | 1,369 | 1,723 | ||||||||||
| Microloans recoveries | — | (29 | ) | (54 | ) | (65 | ) | (53 | ) | ||||||
| Marketing and promotional expenses | 83 | 289 | 180 | 145 | 100 | ||||||||||
| Federal deposit insurance and regulatory assessment (2) | 461 | 418 | 392 | 428 | 389 | ||||||||||
| Other operating expenses (2) | 1,262 | 1,206 | 1,051 | 1,333 | 755 | ||||||||||
| Total non-interest expense (1) | 16,888 | 17,465 | 16,566 | 16,640 | 16,786 | ||||||||||
| Income before income taxes | 7,981 | 4,465 | 3,071 | 4,389 | 3,760 | ||||||||||
| Provision for income taxes | 2,022 | 1,532 | 638 | 1,197 | 1,346 | ||||||||||
| Net income | $ | 5,959 | $ | 2,933 | $ | 2,433 | $ | 3,192 | $ | 2,414 | |||||
| Dividends on preferred shares | 281 | 282 | 281 | 75 | — | ||||||||||
| Net income available to common stockholders | $ | 5,678 | $ | 2,651 | $ | 2,152 | $ | 3,117 | $ | 2,414 | |||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 0.25 | $ | 0.12 | $ | 0.10 | $ | 0.14 | $ | 0.11 | |||||
| Diluted | $ | 0.25 | $ | 0.12 | $ | 0.10 | $ | 0.14 | $ | 0.11 | |||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 22,662,916 | 22,528,160 | 22,446,009 | 22,409,803 | 22,353,492 | ||||||||||
| Diluted | 22,876,740 | 22,807,644 | 22,612,028 | 22,419,309 | 22,366,728 |
(1) For the three months ended December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, (benefit) provision for contingencies in the amounts of ($0.2 million), ($0.3 million), ($0.5 million) and $0.2 million were reclassified from total non-interest expense to (benefit) provision for credit losses.
(2) For the three months ended September 30, 2024, June 30, 2024, and March 31, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each periods.
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
| For the Three Months Ended March 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Variance | Variance % | ||||||||
| Interest and dividend income: | |||||||||||
| Interest on loans receivable | $ | 37,136 | $ | 30,664 | 21.11 | % | |||||
| Interest on deposits due from banks | 1,668 | 2,911 | ) | (42.70 | %) | ||||||
| Interest and dividend on securities and FHLBNY stock | 5,193 | 6,091 | ) | (14.74 | %) | ||||||
| Total interest and dividend income | 43,997 | 39,666 | 10.92 | % | |||||||
| Interest expense: | |||||||||||
| Interest on certificates of deposit | 7,754 | 6,380 | 21.54 | % | |||||||
| Interest on other deposits | 8,554 | 6,540 | 30.80 | % | |||||||
| Interest on borrowings | 5,486 | 7,923 | ) | (30.76 | %) | ||||||
| Total interest expense | 21,794 | 20,843 | 4.56 | % | |||||||
| Net interest income | 22,203 | 18,823 | 17.96 | % | |||||||
| Benefit for credit losses (1) | (285 | ) | (16 | ) | ) | 1,681.25 | % | ||||
| Net interest income after benefit for credit losses | 22,488 | 18,839 | 19.37 | % | |||||||
| Non-interest income: | |||||||||||
| Service charges and fees | 525 | 473 | 10.99 | % | |||||||
| Brokerage commissions | 4 | 8 | ) | (50.00 | %) | ||||||
| Late and prepayment charges | 697 | 359 | 94.15 | % | |||||||
| Income on sale of mortgage loans | 148 | 302 | ) | (50.99 | %) | ||||||
| Income on sale of SBA loans | 404 | — | — | % | |||||||
| Other | 603 | 565 | 6.73 | % | |||||||
| Total non-interest income | 2,381 | 1,707 | 39.48 | % | |||||||
| Non-interest expense: | |||||||||||
| Compensation and benefits | 7,780 | 7,844 | ) | (0.82 | %) | ||||||
| Occupancy and equipment | 3,913 | 3,667 | 6.71 | % | |||||||
| Data processing expenses | 1,152 | 1,127 | 2.22 | % | |||||||
| Direct loan expenses | 388 | 732 | ) | (46.99 | %) | ||||||
| Insurance and surety bond premiums | 315 | 253 | 24.51 | % | |||||||
| Office supplies, telephone and postage | 170 | 249 | ) | (31.73 | %) | ||||||
| Professional fees | 1,364 | 1,723 | ) | (20.84 | %) | ||||||
| Microloans recoveries | — | (53 | ) | (100.00 | %) | ||||||
| Marketing and promotional expenses | 83 | 100 | ) | (17.00 | %) | ||||||
| Federal deposit insurance and regulatory assessments (2) | 461 | 389 | 18.51 | % | |||||||
| Other operating expenses (2) | 1,262 | 755 | 67.15 | % | |||||||
| Total non-interest expense (1) | 16,888 | 16,786 | 0.61 | % | |||||||
| Income before income taxes | 7,981 | 3,760 | 112.26 | % | |||||||
| Provision for income taxes | 2,022 | 1,346 | 50.22 | % | |||||||
| Net income | $ | 5,959 | $ | 2,414 | 146.85 | % | |||||
| Dividends on preferred shares | 281 | — | — | % | |||||||
| Net income available to common stockholders | $ | 5,678 | $ | 2,414 | 135.21 | % | |||||
| Earnings per common share: | |||||||||||
| Basic | $ | 0.25 | $ | 0.11 | 127.27 | % | |||||
| Diluted | $ | 0.25 | $ | 0.11 | 127.27 | % | |||||
| Weighted average common shares outstanding: | |||||||||||
| Basic | 22,662,916 | 22,353,492 | 1.38 | % | |||||||
| Diluted | 22,876,740 | 22,366,728 | 2.28 | % |
All values are in US Dollars.
(1) For the three months ended March 31, 2024, provision for contingencies in the amount of $0.2 million were reclassified from total non-interest expense to benefit for credit losses.
(2) For the three months ended March 31, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.
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, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||||||||||||
| 1-4 family residential | ||||||||||||||||||||||||||||||
| Investor Owned | $ | 325,866 | 13.62 | % | $ | 330,053 | 14.30 | % | $ | 332,380 | 15.09 | % | $ | 337,292 | 16.49 | % | $ | 339,331 | 16.92 | % | ||||||||||
| Owner-Occupied | 137,676 | 5.75 | % | 142,363 | 6.17 | % | 145,065 | 6.59 | % | 147,485 | 7.21 | % | 150,842 | 7.52 | % | |||||||||||||||
| Multifamily residential | 675,541 | 28.24 | % | 670,159 | 29.04 | % | 678,029 | 30.78 | % | 545,323 | 26.66 | % | 545,825 | 27.22 | % | |||||||||||||||
| Nonresidential properties | 390,681 | 16.33 | % | 389,898 | 16.89 | % | 383,277 | 17.40 | % | 337,583 | 16.51 | % | 327,350 | 16.32 | % | |||||||||||||||
| Construction and land | 815,425 | 34.08 | % | 733,660 | 31.79 | % | 631,461 | 28.67 | % | 641,879 | 31.39 | % | 608,665 | 30.35 | % | |||||||||||||||
| Total mortgage loans | 2,345,189 | 98.02 | % | 2,266,133 | 98.19 | % | 2,170,212 | 98.53 | % | 2,009,562 | 98.26 | % | 1,972,013 | 98.33 | % | |||||||||||||||
| Non-mortgage loans: | ||||||||||||||||||||||||||||||
| Business loans | 46,329 | 1.94 | % | 40,849 | 1.77 | % | 28,499 | 1.29 | % | 30,222 | 1.48 | % | 26,664 | 1.33 | % | |||||||||||||||
| Consumer loans (1) | 997 | 0.04 | % | 1,038 | 0.04 | % | 4,021 | 0.18 | % | 5,305 | 0.26 | % | 6,741 | 0.34 | % | |||||||||||||||
| Total non-mortgage loans | 47,326 | 1.98 | % | 41,887 | 1.81 | % | 32,520 | 1.47 | % | 35,527 | 1.74 | % | 33,405 | 1.67 | % | |||||||||||||||
| Total loans, gross | 2,392,515 | 100.00 | % | 2,308,020 | 100.00 | % | 2,202,732 | 100.00 | % | 2,045,089 | 100.00 | % | 2,005,418 | 100.00 | % | |||||||||||||||
| Net deferred loan origination costs | 1,390 | 1,081 | 1,565 | 1,145 | 674 | |||||||||||||||||||||||||
| Allowance for credit losses on loans | (22,974 | ) | (22,502 | ) | (23,966 | ) | (24,061 | ) | (24,664 | ) | ||||||||||||||||||||
| Loans, net | $ | 2,370,931 | $ | 2,286,599 | $ | 2,180,331 | $ | 2,022,173 | $ | 1,981,428 |
- As of September 30, 2024, June 30, 2024, and March 31, 2024, consumer loans include $3.0 million, $4.3 million, and $5.7 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.
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, | |||||||||||
| 2024 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| (Dollars in thousands) | |||||||||||||||
| Allowance for credit losses on loans at beginning of the period | $ | 22,502 | $ | 23,966 | $ | 24,061 | $ | 24,664 | $ | 26,154 | |||||
| Provision (benefit) for credit losses on loans | 731 | 1,090 | 801 | (120 | ) | (255 | ) | ||||||||
| Charge-offs: | |||||||||||||||
| Mortgage loans: | |||||||||||||||
| 1-4 family residences | |||||||||||||||
| Investor owned | (38 | ) | — | — | — | — | |||||||||
| Owner occupied | — | — | — | — | — | ||||||||||
| Multifamily residences | — | — | — | — | — | ||||||||||
| Nonresidential properties | — | — | (7 | ) | — | — | |||||||||
| Construction and land | — | — | — | — | — | ||||||||||
| Non-mortgage loans: | |||||||||||||||
| Business | (222 | ) | (232 | ) | (450 | ) | — | (52 | ) | ||||||
| Consumer | (3 | ) | (2,465 | ) | (634 | ) | (747 | ) | (1,302 | ) | |||||
| Total charge-offs | (263 | ) | (2,697 | ) | (1,091 | ) | (747 | ) | (1,354 | ) | |||||
| Recoveries: | |||||||||||||||
| Non-mortgage loans: | |||||||||||||||
| Business | 4 | — | 1 | 7 | 1 | ||||||||||
| Consumer | — | 143 | 194 | 257 | 118 | ||||||||||
| Total recoveries | 4 | 143 | 195 | 264 | 119 | ||||||||||
| Net (charge-offs) recoveries | (259 | ) | (2,554 | ) | (896 | ) | (483 | ) | (1,235 | ) | |||||
| Allowance for credit losses on loans at end of the period | $ | 22,974 | $ | 22,502 | $ | 23,966 | $ | 24,061 | $ | 24,664 |
Ponce Financial Group, Inc. and Subsidiaries
Deposits
| December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | |||||||||||||||||||||
| Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
| Demand | 212,139 | 10.58 | % | $ | 169,178 | 8.98 | % | $ | 182,737 | 9.78 | % | $ | 178,125 | 11.09 | % | $ | 191,541 | 12.07 | % | |||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW/IOLA accounts | 74,430 | 3.71 | % | 62,616 | 3.32 | % | 71,445 | 3.82 | % | 81,178 | 5.05 | % | 73,202 | 4.62 | % | |||||||||
| Money market accounts | 692,753 | 34.55 | % | 636,219 | 33.75 | % | 660,168 | 35.30 | % | 502,255 | 31.27 | % | 482,344 | 30.42 | % | |||||||||
| Reciprocal deposits | 141,838 | 7.07 | % | 130,677 | 6.93 | % | 94,145 | 5.03 | % | 109,945 | 6.85 | % | 97,718 | 6.16 | % | |||||||||
| Savings accounts | 106,122 | 5.29 | % | 105,870 | 5.62 | % | 108,941 | 5.82 | % | 109,694 | 6.83 | % | 112,713 | 7.11 | % | |||||||||
| Total NOW, money market, reciprocal and savings accounts | 1,015,143 | 50.62 | % | 935,382 | 49.62 | % | 934,699 | 49.97 | % | 803,072 | 50.00 | % | 765,977 | 48.31 | % | |||||||||
| Certificates of deposit of 250K or more (1) | 219,721 | 10.96 | % | 204,293 | 10.84 | % | 210,262 | 11.25 | % | 189,683 | 11.82 | % | 183,478 | 11.57 | % | |||||||||
| Brokered certificates of deposit (2) | 84,531 | 4.22 | % | 94,531 | 5.02 | % | 94,531 | 5.05 | % | 94,614 | 5.89 | % | 94,689 | 5.97 | % | |||||||||
| Listing service deposits (2) | 6,140 | 0.31 | % | 7,376 | 0.39 | % | 7,376 | 0.39 | % | 9,361 | 0.58 | % | 12,688 | 0.80 | % | |||||||||
| All other certificates of deposit less than 250K (1) | 467,273 | 23.31 | % | 474,104 | 25.15 | % | 440,718 | 23.56 | % | 331,242 | 20.62 | % | 337,411 | 21.28 | % | |||||||||
| Total certificates of deposit | 777,665 | 38.80 | % | 780,304 | 41.40 | % | 752,887 | 40.25 | % | 624,900 | 38.91 | % | 628,266 | 39.62 | % | |||||||||
| Total interest-bearing deposits | 1,792,808 | 89.42 | % | 1,715,686 | 91.02 | % | 1,687,586 | 90.22 | % | 1,427,972 | 88.91 | % | 1,394,243 | 87.93 | % | |||||||||
| Total deposits | 2,004,947 | 100.00 | % | $ | 1,884,864 | 100.00 | % | $ | 1,870,323 | 100.00 | % | $ | 1,606,097 | 100.00 | % | $ | 1,585,784 | 100.00 | % |
All values are in US Dollars.
- As of September 30, 2024, June 30, 2024 and March 31, 2024, $36.2 million, $33.5 million and $37.2 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.
- There were no individual listing service deposits amounting to $250,000 or more. There was one brokered certificates of deposit in the amount of $1.5 million amounting to $250,000 or more. All other brokered certificates of deposit individually amounted to less than $250,000.
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
| As of Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||
| (Dollars in thousands) | |||||||||||||||
| Non-accrual loans: | |||||||||||||||
| Mortgage loans: | |||||||||||||||
| 1-4 family residential | |||||||||||||||
| Investor owned | $ | 1,052 | $ | 436 | $ | 436 | $ | 436 | $ | 399 | |||||
| Owner occupied | 1,423 | 1,423 | 1,423 | 1,423 | 1,426 | ||||||||||
| Multifamily residential | 9,788 | 10,271 | 4,685 | 5,754 | 4,098 | ||||||||||
| Nonresidential properties | — | — | 824 | 828 | 441 | ||||||||||
| Construction and land | 14,159 | 14,158 | 8,907 | 8,907 | 10,277 | ||||||||||
| Non-mortgage loans: | |||||||||||||||
| Business | 170 | 343 | 180 | 396 | 146 | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) | $ | 26,592 | $ | 26,631 | $ | 16,455 | $ | 17,744 | $ | 16,787 | |||||
| Non-accruing modifications to borrowers experiencing financial difficulty (1): | |||||||||||||||
| Mortgage loans: | |||||||||||||||
| 1-4 family residential | |||||||||||||||
| Investor owned | $ | 279 | $ | 279 | $ | 278 | $ | 277 | $ | 270 | |||||
| Owner occupied | 431 | 435 | 444 | 448 | 447 | ||||||||||
| Multifamily residential | — | — | — | — | — | ||||||||||
| Nonresidential properties | — | — | — | — | — | ||||||||||
| Construction and land | — | — | — | — | — | ||||||||||
| Non-mortgage loans: | |||||||||||||||
| Business | — | — | — | — | — | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Total non-accruing modifications to borrowers experiencing financial difficulty (1) | 710 | 714 | 722 | 725 | 717 | ||||||||||
| Total non-accrual loans (2) | $ | 27,302 | $ | 27,345 | $ | 17,177 | $ | 18,469 | $ | 17,504 | |||||
| Accruing modifications to borrowers experiencing financial difficulty (1): | |||||||||||||||
| Mortgage loans: | |||||||||||||||
| 1-4 family residential | |||||||||||||||
| Investor owned | $ | 1,792 | $ | 1,807 | $ | 1,821 | $ | 1,830 | $ | 1,850 | |||||
| Owner occupied | 2,038 | 2,062 | 2,116 | 2,171 | 2,288 | ||||||||||
| Multifamily residential | — | — | — | — | — | ||||||||||
| Nonresidential properties | 644 | 652 | 672 | 707 | 748 | ||||||||||
| Construction and land | — | — | — | — | — | ||||||||||
| Non-mortgage loans: | |||||||||||||||
| Business | 209 | 215 | 222 | — | — | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Total accruing modifications to borrowers experiencing financial difficulty (1) | $ | 4,683 | $ | 4,736 | $ | 4,831 | $ | 4,708 | $ | 4,886 | |||||
| Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) | $ | 31,985 | $ | 32,081 | $ | 22,008 | $ | 23,177 | $ | 22,390 | |||||
| Total non-performing assets to total assets | 0.88 | % | 0.90 | % | 0.57 | % | 0.65 | % | 0.62 | % |
(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.
Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets
| For the Three Months Ended March 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||
| Average | Average | |||||||||
| Outstanding | Average | Outstanding | Average | |||||||
| Balance | Interest | Yield/Rate (1) | Balance | Interest | Yield/Rate (1) | |||||
| (Dollars in thousands) | ||||||||||
| Interest-earning assets: | ||||||||||
| Loans (2) | $ | 2,369,433 | $ | 37,136 | 6.36% | $ | 1,979,263 | $ | 30,664 | 6.23% |
| Securities (3) | 467,560 | 4,521 | 3.92% | 576,235 | 5,619 | 3.92% | ||||
| Other (4) | 186,021 | 2,340 | 5.10% | 238,432 | 3,383 | 5.71% | ||||
| Total interest-earning assets | 3,023,014 | 43,997 | 5.90% | 2,793,930 | 39,666 | 5.71% | ||||
| Non-interest-earning assets | 109,166 | 106,566 | ||||||||
| Total assets | $ | 3,132,180 | $ | 2,900,496 | ||||||
| Interest-bearing liabilities: | ||||||||||
| NOW/IOLA | $ | 72,354 | $ | 115 | 0.64% | $ | 82,849 | $ | 218 | 1.06% |
| Money market | 827,948 | 8,411 | 4.12% | 544,563 | 6,292 | 4.65% | ||||
| Savings | 105,171 | 26 | 0.10% | 113,501 | 28 | 0.10% | ||||
| Certificates of deposit | 794,270 | 7,754 | 3.96% | 629,528 | 6,380 | 4.08% | ||||
| Total deposits | 1,799,743 | 16,306 | 3.67% | 1,370,441 | 12,918 | 3.79% | ||||
| Advance payments by borrowers | 12,445 | 2 | 0.07% | 12,886 | 2 | 0.06% | ||||
| Borrowings | 568,601 | 5,486 | 3.91% | 771,070 | 7,923 | 4.13% | ||||
| Total interest-bearing liabilities | 2,380,789 | 21,794 | 3.71% | 2,154,397 | 20,843 | 3.89% | ||||
| Non-interest-bearing liabilities: | ||||||||||
| Non-interest-bearing demand | 196,627 | — | 198,862 | — | ||||||
| Other non-interest-bearing liabilities | 43,915 | — | 54,061 | — | ||||||
| Total non-interest-bearing liabilities | 240,542 | — | 252,923 | — | ||||||
| Total liabilities | 2,621,331 | 21,794 | 2,407,320 | 20,843 | ||||||
| Total equity | 510,849 | 493,176 | ||||||||
| Total liabilities and total equity | $ | 3,132,180 | 3.71% | $ | 2,900,496 | 3.89% | ||||
| Net interest income | $ | 22,203 | $ | 18,823 | ||||||
| Net interest rate spread (5) | 2.19% | 1.82% | ||||||||
| Net interest-earning assets (6) | $ | 642,225 | $ | 639,533 | ||||||
| Net interest margin (7) | 2.98% | 2.71% | ||||||||
| Average interest-earning assets to interest-bearing liabilities | 126.98% | 129.69% |
- Annualized where appropriate.
- Loans include loans and mortgage loans held for sale, at fair value.
- Securities include available-for-sale securities and held-to-maturity securities.
- Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
- 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.
- Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
- Net interest margin represents net interest income divided by average total interest-earning assets.
Ponce Financial Group, Inc. and Subsidiaries
Other Data
| As of | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||
| Other Data | ||||||||||
| Common shares issued | 24,886,711 | 24,886,711 | 24,886,711 | 24,886,711 | 24,886,711 | |||||
| Less treasury shares | 920,520 | 925,497 | 1,067,248 | 1,074,979 | 1,096,214 | |||||
| Common shares outstanding at end of period | 23,966,191 | 23,961,214 | 23,819,463 | 23,811,732 | 23,790,497 | |||||
| Book value per common share | $ | 12.05 | $ | 11.71 | $ | 11.74 | $ | 11.45 | $ | 11.29 |
| Tangible book value per common share | $ | 12.05 | $ | 11.71 | $ | 11.74 | $ | 11.45 | $ | 11.29 |
President & Chief Executive Officer Carlos P. Naudon EVP & Chief Financial Officer Sergio Vaccaro Exhibit 99.2 Presentation of
Cautionary 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 operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’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 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’s market area; Ponce Bank’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. Forward Looking Statements The market and industry data used throughout this presentation is based, in part, on third-party sources, as indicated. Although management believes these third-party sources are reliable, they have not independently verified the information and cannot guarantee its accuracy and completeness. Market and Industry Data Copyright © 2024. All Right Reserved
Corporate Headquarters and Office Location Branch Locations Ponce Financial Group, Inc. (the “Company”), became the holding company of Ponce Bank (the “Bank”), a federally chartered stock savings association on January 27, 2022, after successfully completing the conversion and reorganization of Ponce Bank Mutual Holding Company from the mutual to stock form of organization. Aim to provide long-term value to stakeholders by executing a safe and sound business strategy that produces increasing value. Number of full-time equivalent employees as of March 31, 2025, was 211 equating to $14.6 million in assets per employee. The Company provides a full range of financial services to minority, immigrant, and low-income borrowers in a community-focused manner. Ticker NASDAQ: PDLB Established 1960 Headquarters Bronx, NY Branches 13 full-service branches and 5 loan production/representative offices Total Assets $3.09 billion (as of 3/31/25) Total Loans $2.37 billion (as of 3/31/25) Total Deposits $2.00 billion (as of 3/31/25) Earnings Per Share $0.25 (for three months ended 3/31/25) Market Cap TBV Per Common Share* $304 million (as of 3/31/25) $12.05 (as of 3/31/25) Copyright © 2024. All Right Reserved (*) TBV Per Common Share is a Non-GAAP financial measure. Non-GAAP financial measures are not a substitute for GAAP financial measures. See the appendix of this presentation for a reconciliation to the most directly comparable GAAP financial measure.
Franchise Evolution 2015 - 2022 Carlos P. Naudon named President in 2015; CEO in 2018 Certified SBA lender Continued to remain focused on residential and commercial real estate Optimized real estate footprint by improving loan efficiency Certification as an MDI & CDFI Grew assets from $700 million to $2.3 billion Path to Conversion 2022 - Present Converted from Mutual Holding Company on January 27, 2022 Established a robust capital base to continue executing on strategic initiatives Continued focusing on residential and commercial lending with an emphasis on technological integration Received low-cost funding Preferred Stock in the amount of $225 million from the ECIP Public Ownership 1960 - 2015 Established 65-year-old institution focused on residential and nonresidential lending Headquartered in the Bronx, NY with branch presence in the Bronx, Brooklyn, Queens, New Jersey, and Manhattan Grew assets from de novo to $700 million Mutual Bank Copyright © 2024. All Right Reserved
PFG Executive Management Executive Chairman of the Board Steven A. Tsavaris Executive Vice President and Chief Lending Officer Ioannis Kouzilos Executive Vice President and Chief External Affairs Officer Madeline V. Marquez President and Chief Executive Officer Carlos P. Naudon Executive Vice President and Chief Financial Officer Sergio Vaccaro Executive Vice President and Chief Operating Officer Luis Gonzalez Jr. Copyright © 2024. All Right Reserved 50+ years of experience Former President and CEO of Ponce De Leon Federal Savings Bank Former Chairman and CEO of PDLB Community Bancorp 13+ years of experience Previously VP of Credit Administration Experienced at various financial institutions 25+ years of experience Former Vice President at Business Initiative Corporation of New York Former Managing Director at Brooklyn Economic Development Corp. 50+ years of experience Former CEO of Banking Spectrum Inc. Former Acting CEO and Director of Open Solutions, Inc., a public company 25+ years of experience Former CFO of Private Bank Americas at HSBC Former CFO of Home Loans at Morgan Stanley Former US Head of FP&A at HSBC 17+ years of experience Former Bank Examiner Former Acting Assistant Deputy Comptroller, OCC
Highlights – three months ended March 31, 2025 and 2024 Strong loan growth. Net loans receivable were $2.37 billion as of March 31, 2025, an increase of $389.5 million, or 19.7%, from March 31, 2024. Higher NIM and stable expenses YoY. Net interest margin at 2.98% for three months ended March 31, 2025, an increase of 0.27% from prior period. The non-interest expenses were $16.9 million for three months ended March 31, 2025, a slight increase of $0.1 million versus prior period. Strong deposit growth. Deposits were $2.00 billion as of March 31, 2025, an increase of $419.2 million, or 26.4%, from March 31, 2024. Increasing profitability. Net income available to common stockholders of $5.7 million, or $0.25 per diluted share for three months ended March 31, 2025. Copyright © 2024. All Right Reserved Three Month Highlight Overview YTD 2024 YTD 2023 Change % Net interest income $22.2M $18.8M 18.0% Net income available to common stockholders $5.7M $2.4M 135.2% Deposits $2.00B $1.59B 26.4% Net loans receivable $2.37B $1.98B 19.7% Earnings per diluted share $0.25 $0.11 130.0%
Our Vision Growing alongside fastest growing, best clients Reaching Capital Deployment Capabilities Enhance our multifamily and nonresidential loans. Leverage MDI/CDFI status. Build existing community lending programs. Improve core deposits, with an emphasis on low-cost commercial demand deposits and add non-core funding sources. Robust capital position, inclusive of $225 million in ECIP funds provided by the U.S. Treasury Focused on growing loan book: Expanding CRE & Non-Residential Loans Stay with successful clients as they grow Low-Cost, Excess Capital - Ready to Deploy The Bank is designated as both a Community Development Financial Institution (CDFI) and a Minority Deposit Institution (MDI) MDI and CDFI Status; Mission Driven Business Model Aligns with ESG Completed the second-step in January 2022 Ability to return capital to shareholders – priorities De-Mutualization Opportunity The Company is well-positioned with a weighted average loan-to-value ratio of 53.6% as of March 31, 2025 Total CRE Loans comprise 344.8% of Tier 1 Capital plus allowance Financial Strength Strategies and Focus Growth Drivers Accelerating Loan Growth Through Deployment of Excess Capital CRE and Residential Markets – Single Family & Multi-family markets Net Interest Income Growth Upgrading electronic infrastructure Expanding digital banking services Creating greater resiliency, capacity, and redundancies Modernization Program Across Company Infrastructure Restructure/Refocus the retail business model Upgrade sales forces Manage credit risk to maintain a low level of nonperforming assets. Enhance our digital presence to deliver impactful services to our customers. Copyright © 2024. All Right Reserved 62% 234%
ECIP Disposition – Executed Agreement On December 20, 2024, PFG entered into an ECIP securities purchase option agreement with the US Department of the Treasury, allowing repurchase at a future date, subject to compliance with certain qualifications Determination of sale price: based on the dividend discount model While there can be no assurance as to the final repurchase price, the price could be as low as 6.78% under the current guidelines, (assuming a dividend rate of 0.50%, RFR of 4.62% (20 Yr Treasury as of 3/31/25), Beta of 0.50 and ERP of 5.50% and satisfaction of the deep impact condition) Impact of ~8.75 $ per share, under the above assumptions, $225 million ECIP, 24.0 million common shares outstanding The repurchase date could occur as soon as 3Q 2026, assuming satisfaction of the necessary conditions Status on progress: Have achieved 11 consecutive quarters with a 78% rate of deep impact lending (vs 60% requirement for 16 consecutive quarters to qualify for repurchase); and ensured another year of preferred dividends of 0.50% based on our originations from 2Q24 to 1Q25
Community Development Financial Institution The CDFI Program offers both Financial Assistance and Technical Assistance awards to CDFIs. These competitive awards support and enhance the ability of the Company to meet the needs of the communities they serve. Financial Assistance awards are made in the form of loans, grants, equity investments, and deposits, which CDFIs are required to match dollar-for-dollar with non-federal funds. This requirement enables the Company to multiply the impact of federal investment to meet the demand for affordable financial products in economically distressed communities. Technical Assistance grants are offered to CDFIs and Certifiable CDFIs to build their organizational capacity. Out of the 20 top CDFI Banks (in Total Assets): in housing focus in DLI-HMDA (% of housing lending in LMI communities) in total assets in total loans As a CDFI, the Company has received over $5 million in federal grants As of September 30, 2024, there were approximately 1,400 CDFI’s operating nationwide, but fewer than 200 are banks, and the Bank ranks amongst the largest The CDFI designation qualifies the Company for grants and capital opportunities such as the Emergency Capital Investment Program (ECIP), which the Company benefitted from in the form of a $225 million investment from the U.S. Treasury for Senior Non-Cumulative Perpetual Preferred Stock; only CDFIs and MDIs were able to participate in this program – it comes at no cost (to capital) for the first two years and includes rate reduction incentives after that with a cap of 2.00% Ponce Bank has won awards and mandates for community development and ranks as one of the largest and most housing focused CDFIs in the country. Rankings as of 3rd quarter 2024 3rd 6th Copyright © 2024. All Right Reserved
Minority Depository Institution One of 32 banks in the country designated as both an MDI and a CDFI. As of December 31, 2024, the FDIC recognized 151 MDIs across the United States and its territories, with collective assets of approximately $366 billion. As an MDI the Bank can provide financial services to and for underserved communities as designated by the federal government including African, Asian, Hispanic, and Native Americans. MDI designation allows the Bank to provide many benefits to low-to-moderate income communities, including access to credit, values-driven banking, international languages and locations, financial education, and community-specific services. Out of all the MDI Banks in Assets, the Bank ranks: Rankings as of 4Q24 The Bank is designated an MDI, classified under the Federal Deposit Insurance Corporation (FDIC). The FDIC defines an MDI as a federally insured depository institution for which (1) 51% or more of the voting stock is owned by minority individuals; or (2) majority of the board of directors is a minority and the community that the institution serves is predominantly minority. in total assets New York in total assets out of 151 MDIs 3rd 22nd Copyright © 2024. All Right Reserved
ESG (Environmental, Social, Governance) Environmental Initiatives The Company focuses on sustainability, resource conservation, and waste reduction. We ensure regulatory compliance, vendor adherence, and invest in technology for efficiency. Our ESG Committee manages site compliance and flood risk, while we work with suppliers to uphold ethical practices. We mirror our community with 61% female and 86% ethnically diverse employees. Community Reflection We support communities with initiatives and partnerships. Community We value employees, offer competitive benefits, and invest in growth through training. Health, Safety and Talent Acquisition & Retention In the latest report(*) from the National Community Investment Fund, Ponce ranked: among the 20 largest CDFI Banks with a Housing Focus in Assets, Lending and Deposits #3 Data Security Compliance & Ethics Suppliers Corporate Governance We are dedicated to sustainability and building a strong ESG foundation. We prioritize accountability, ethical practices, and robust risk management to earn stakeholder trust and ensure legal compliance. in total loans among all CDFI banks nationwide (194 total) #6 in total Assets among all CDFI banks nationwide #6 We boost office efficiency with high-efficiency equipment, LED lighting, and advanced HVAC units. We promote recycling and waste separation in our offices. We consult energy experts for inspections, savings, and rebates on ESG-friendly upgrades. Copyright © 2024. All Right Reserved Environmental Responsibility Social Impact Environmental Initiatives (*) Latest report published December 2024 for 3rd quarter 2024
Appendix
Total Assets Total Deposits Balance Sheet Highlights (in thousands) Copyright © 2024. All Right Reserved Net Loans Loans-to-Deposits %
Appx. 1 Portfolio Composition 19.4% 34.1% 16.3% 28.2% 1-4 Family Residential Construction and Land Multifamily Residential Nonresidential Property $ 2,286,599 $ 2,370,931 $ 1,322,098 $ 1,525,668 $ 1,895,886 Loan Portfolio Growth (in thousands) Net Loans Receivable Loans Portfolio Copyright © 2024. All Right Reserved As of March 31, 2025 Other
Total Securities - as of March 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Securities: U.S. Government Bonds $2,995 $- $(92) $2,903 Corporate Bonds 20,759 54 (1,163) 19,650 Mortgage-Backed Securities: Collateralized Mortgage Obligations¹ 33,468 - (5,595) 27,873 FHLMC Certificates 8,767 - (1,057) 7,710 FNMA Certificates 54,668 - (9,322) 45,346 GNMA Certificates 87 1 - 88 Total available-for-sale securities $120,744 $55 $(17,229) $103,570 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-Maturity Securities: U.S. Agency Bonds $25,000 $- $(33) $24,967 Corporate Bonds 32,500 21 (420) 32,101 Mortgage-Backed Securities: Collateralized Mortgage Obligations¹ 181,178 83 (5,045) 176,216 FHLMC Certificates 3,206 - (171) 3,035 FNMA Certificates 102,472 - (3,245) 99,227 SBA Certificates 13.881 91 - 13,972 Allowance for Credit Losses (213) - - - Total available-for-sale securities $358,024 $195 $(8,914) $349,518 (1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities. (in thousand) Copyright © 2024. All Right Reserved (in thousand)
Actual Amount Ratio For Capital Adequacy Purposes Amount Ratio To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio March 31, 2025 (in thousands) Ponce Financial Group, Inc. Total Capital to Risk-Weighted Assets $ 552,191 22.84% $ 193,396 8.00% $ 241,745 10.00% Tier 1 Capital to Risk-Weighted Assets 527,401 21.82% 145,047 6.00% 193,396 8.00% Common Equity Tier 1 Capital Ratio 302,401 12.51% 108,785 4.50% 157,134 6.50% Tier 1 Capital to Total Assets 527,401 16.84% 125,287 4.00% 156,609 5.00% Ponce Bank Total Capital to Risk-Weighted Assets $ 514,077 21.38% $ 192,356 8.00% $ 240,445 10.00% Tier 1 Capital to Risk-Weighted Assets 489,287 20.35% 144,267 6.00% 192,356 8.00% Common Equity Tier 1 Capital Ratio 489,287 20.35% 108,200 4..50% 156,289 6.50% Tier 1 Capital to Total Assets 489,287 15.61% 125,381 4.00% 156,726 5.00% Actual Amount Ratio For Capital Adequacy Purposes Amount Ratio To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio December 31, 2024 (in thousands) Ponce Financial Group, Inc. Total Capital to Risk-Weighted Assets $ 546,128 22.98% $ 190,147 8.00% $ 237,684 10.00% Tier 1 Capital to Risk-Weighted Assets 520,796 21.91% 142,611 6.00% 190,147 8.00% Common Equity Tier 1 Capital Ratio 295,796 12.44% 106,958 4.50% 154,495 6.50% Tier 1 Capital to Total Assets 520,796 17.70% 117,715 4.00% 147,144 5.00% Ponce Bank Total Capital to Risk-Weighted Assets $ 507,632 21.47% $ 189,137 8.00% $ 236,421 10.00% Tier 1 Capital to Risk-Weighted Assets 482,300 20.40% 141,853 6.00% 189,137 8.00% Common Equity Tier 1 Capital Ratio 482,300 20.40% 106,390 4..50% 153,674 6.50% Tier 1 Capital to Total Assets 482,300 15.81% 122,011 4.00% 152,514 5.00% Copyright © 2024. All Right Reserved Regulatory Capital Ratios
Reconciliation to GAAP March 31, 2025 Common shares issued 24,886,711 Less treasury shares 920,520 Common shares outstanding at end of period 23,966,191 Total Equity $ 513,885,468 Common shares outstanding 23,966,191 Total equity per share - GAAP $ 21.44 Total Equity $ 513,885,468 Less Preferred Stock $ (225,000,000) Tangible book value $ 288,885,468 Tangible book value per common share -Non-GAAP $ 12.05
Community Sponsorships and Donations Includes Sponsorships and Donations by the Company and the Ponce De Leon Foundation Queens Small Business Owners & Entrepreneurs Small Business Bootcamp Over 117 grants to charitable causes since 2017 $2.3 million was given to Ponce Bank Branch communities focusing on youth services, education, healthcare, social services, economic development, and cultural diversity Ponce De Leon Foundation Financial Mastery Workshops Copyright © 2024. All Right Reserved American Cancer Society Morris Heights Health Center Urban Youth Alliance Int Castle Hill Little League Iglesia Nuevo Amanecer La Hermosa Phipps Neighborhood InHisName United YMCA of Greater NY Washington Heights BID Unique People Services Hostos Community College Foundation New Bronx Chamber of Commerce Bronx Manhattan North Board of Realtors Bronx Kings Business Initiative Corporation Neighborhood Shop COVID Relief Program BOEDC Bronx Tourism Council NYS CDFI Coalition Bronx County Bar Association Business Initiative Corporation Bronx Overall Economic Development Corp Unique People Services Hope Gathering Buy Local East Harlem & Greet Union Settlement LSA Covid Relief Citivas La Fortaleza Hope Community AHRC Society of the Educational Arts NYCHCC Women In Business Upper Manhattan Mental Health Center Riverdale Senior Services Urban Design Forum Comite Noviembre RAICES Spanish Speaking Elderly Council One Brooklyn Fund MyTime Inc Brooklyn Hospital Foundation Gay Men's Health Crisis Inc CommonPoint Queens Immaculate Conception Catholic Academy Hellenic Orthodox Community of Astoria Greater Jamaica Development Corp Queens Economic Development Corporation Immaculate Conception Catholic Academy Pancyprian Association Inc NJ Law Enforcement Queens Women's Chamber of Commerce Union City Music Project NJ Small Business Development Center at NJCU Forest Hills Chambers of Commerce Greater NY Chamber of Commerce Sharing and Caring Inc NYSCDFI Coalition Brooklyn Kings County Chamber Of Commerce of Washington Heights and Inwood in Manhattan & MANY MORE Save Latin America Hispanic Chamber of Commerce BNI Down to Business
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