Ponce Financial Group, Inc. Reports Fourth Quarter 2025 Results
NEW YORK, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank, N.A. (the “Bank”), today announced results for the fourth quarter of 2025.
Fourth Quarter 2025 Highlights (Compared to Prior Periods):
- Net income available to common stockholders was $9.9 million, or $0.42 per diluted share for the three months ended December 31, 2025, as compared to net income available to common stockholders of $6.2 million, or $0.27 per diluted share for the three months ended September 30, 2025 and net income available to common stockholders of $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024. Total net income for the three months ended December 31, 2025 was $10.1 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended December 31, 2025.
- Included in the $9.9 million of net income available to common stockholders for the fourth quarter of 2025 results is $48.8 million in interest and dividend income and $3.5 million in non-interest income, offset by $20.9 million in interest expense, $16.6 million in non-interest expense, $3.6 million in provision for income taxes, $1.1 million in provision for credit losses and $0.3 million in dividends on preferred shares.
- Net interest income of $27.9 million for the fourth quarter of 2025 increased $2.7 million, or 10.64%, from the prior quarter and increased $7.2 million, or 34.75%, from the same quarter last year.
- Net interest margin was 3.57% for the fourth quarter of 2025, versus 3.30% for the prior quarter and 2.80% for the same quarter last year.
Full Year 2025 Highlights (Compared to 2024):
- Net income available to common stockholders was $27.6 million, or $1.20 per diluted share for the year ended December 31, 2025, as compared to net income available to common stockholders of $10.3 million, or $0.46 per diluted share for the year ended December 31, 2024. The Company paid dividends of $1.1 million on its preferred stock during the for the year ended December 31, 2025 and $0.6 million for the year ended December 31, 2024.
- Net interest income for the year ended December 31, 2025 was $99.8 million, an increase of $23.3 million, or 30.51%, compared to $76.5 million for the year ended December 31, 2024.
- Non-interest income for the year ended December 31, 2025 was $9.4 million, an increase of $2.2 million, or 30.49%, from $7.2 million for the year ended December 31, 2024.
- Non-interest expense for the year ended December 31, 2025 was $67.0 million, a decrease of $0.4 million, or 0.66%, compared to $67.5 million for the year ended December 31, 2024.
- Cash and equivalents were $126.2 million as of December 31, 2025, a decrease of $13.7 million, or 9.79%, from $139.8 million as of December 31, 2024.
- Securities totaled $365.2 million as of December 31, 2025, a decrease of $107.7 million, or 22.78%, from $472.9 million as of December 31, 2024 primarily due to regular principal payments, the call of four available-for-sale securities in the total amount of $8.3 million and the maturity/call of three held-to-maturity securities in the amount of $50.0 million.
- Net loans receivable were $2.60 billion as of December 31, 2025, an increase of $312.7 million, or 13.67%, from $2.29 billion as of December 31, 2024.
- Deposits were $2.05 billion as of December 31, 2025, an increase of $151.4 million, or 7.99%, from $1.90 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 “The focused execution of our long-term strategy continues to bear fruits. We’re pleased with the increase in profitability over the last several quarters driven by incremental net interest income and controlled operating expenses. Our net interest margin grew 78bps this quarter versus the same quarter last year, and our non-interest expense remains flat for the last three consecutive years. 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 levels of loan growth as we continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program. As previously reported, we expect that our dividend yield will continue at the 0.50% level in the next dividend period starting later this year and we’re close to achieving 16 quarters of a cumulative deep impact lending percentage of more than 60%. After 14 quarters, including the quarter ended December 31, 2025, we are at 82% deep impact lending.”
The table below indicate the Key Metrics at or for the three months ended:
| At or for the Three Months Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||||||
| Performance Ratios: | |||||||||||||||||||
| Return on average assets(1) | 1.26 | % | 0.82 | % | 0.79 | % | 0.77 | % | 0.38 | % | |||||||||
| Return on common equity(1) | 12.50 | % | 8.10 | % | 7.88 | % | 7.97 | % | 3.76 | % | |||||||||
| Net interest margin(1) (2) | 3.57 | % | 3.30 | % | 3.27 | % | 2.98 | % | 2.80 | % | |||||||||
| Non-interest expense to average assets(1) | 2.06 | % | 2.10 | % | 2.18 | % | 2.19 | % | 2.25 | % | |||||||||
| Efficiency ratio(3) | 52.95 | % | 62.15 | % | 63.69 | % | 68.70 | % | 75.63 | % | |||||||||
| Capital Ratios: | |||||||||||||||||||
| Total capital to risk-weighted assets (Ponce Financial Group) | 23.72 | % | 24.08 | % | 22.65 | % | 22.84 | % | 22.98 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group) | 13.39 | % | 13.39 | % | 12.49 | % | 12.51 | % | 12.44 | % | |||||||||
| Tier 1 capital to total assets (Ponce Financial Group) | 17.28 | % | 17.33 | % | 17.13 | % | 16.84 | % | 17.70 | % | |||||||||
| Total capital to risk-weighted assets (Bank only) | 21.63 | % | 21.79 | % | 21.22 | % | 21.38 | % | 21.47 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets (Bank only) | 20.53 | % | 20.66 | % | 20.15 | % | 20.35 | % | 20.40 | % | |||||||||
| Tier 1 capital to total assets (Bank only) | 16.12 | % | 16.08 | % | 15.99 | % | 15.61 | % | 15.81 | % | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Allowance for credit losses on loans as a percentage of total loans | 0.97 | % | 0.98 | % | 0.97 | % | 0.96 | % | 0.97 | % | |||||||||
| Allowance for credit losses on loans as a percentage of nonperforming loans | 94.74 | % | 88.88 | % | 101.01 | % | 84.15 | % | 82.29 | % | |||||||||
| Net (charge-offs) recoveries to average outstanding loans(1) | (0.13 | %) | (0.03 | %) | (0.04 | %) | (0.04 | %) | (0.45 | %) | |||||||||
| Non-performing loans as a percentage of total assets | 0.83 | % | 0.88 | % | 0.76 | % | 0.88 | % | 0.90 | % | |||||||||
| Other: | |||||||||||||||||||
| Number of offices | 17 | 18 | 17 | 18 | 19 | ||||||||||||||
| Number of full-time equivalent employees | 216 | 209 | 206 | 211 | 218 | ||||||||||||||
(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 December 31, 2025 was $10.1 million compared to net income of $6.5 million for the three months ended September 30, 2025 and net income of $2.9 million for the three months ended December 31, 2024.
The $3.6 million increase of net income for the three months ended December 31, 2025 compared to the three months ended September 30, 2025 was attributed mainly to increases of $2.7 million in net interest income and $2.0 million in non-interest income and a decrease of $0.3 million in provision for credit losses, offset by and an increase of $1.3 million in provision for income taxes while remaining relatively flat on non-interest expense.
The $7.2 million increase of net income for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 was largely due to increases of $7.2 million in net interest income and $1.4 million in non-interest income and a decrease of $0.8 million in non-interest expense, offset by increases of $2.0 million in provision for income taxes and $0.2 million in provision for credit losses.
Net income for the year ended December 31, 2025 was $28.7 million compared to net income of $11.0 million for the year ended December 31, 2024. The $17.7 million increase of net income for the year ended December 31, 2025 compared to the year ended December 31, 2024 was attributed mainly to increases of $23.3 million in net interest income as a result of a $22.9 million increase in total interest and dividend and a $0.4 million decrease in total interest expense, and $2.2 million in non-interest income and a decrease of $0.4 million in non-interest expense, partially offset by increases of $5.0 million in provision for income taxes, $3.2 million in provision for credit losses and $0.5 million in dividend on preferred shares.
Net Interest Income and Net Interest Margin
Net interest income for the three months ended December 31, 2025, increased $2.7 million, or 10.64%, to $27.9 million compared to $25.2 million for the three months ended September 30, 2025 and increased $7.2 million, or 34.75%, compared to $20.7 million for the three months ended December 31, 2024.
The $2.7 million increase in net interest income from the three months ended September 30, 2025 was attributable to an increase of $2.0 million in total interest and dividend income and a decrease of $0.7 million in total interest expense. The $7.2 million increase in net interest income from the three months ended December 31, 2024 was attributable to an increase of $5.9 million in total interest and dividend income and a decrease of $1.3 million in total interest expense.
Net interest income for the year ended December 31, 2025, increased $23.3 million, or 30.51%, to $99.8 million compared to $76.5 million for the year ended December 31, 2024. The $23.3 million increase in net interest income was attributable to an increase of $22.9 million in total interest and dividend income and a decrease of $0.4 million in total interest expense.
Net interest margin was 3.57% for the three months ended December 31, 2025 compared to 3.30% for the prior quarter, an increase of 27bps and 2.80% for the same period last year, an increase of 77bps.
Net interest margin was 3.28% for the year ended December 31, 2025 compared to 2.70% for the year ended December 31, 2024, an increase of 58bps.
Non-interest Income
Non-interest income for the three months ended December 31, 2025, was $3.5 million, an increase of $2.0 million, or 133.18%, compared to $1.5 million for the three months ended September 30, 2025 and an increase of $1.4 million, or 65.90%, compared to $2.1 million for the three months ended December 31, 2024.
The $2.0 million increase in non-interest income from the three months ended September 30, 2025 was largely attributable to increases of $1.2 million in other non-interest income and $0.8 million in late and prepayment charges. The increase of $1.2 million in other non-interest income is largely attributable to positive valuation adjustments of the Bank's investments in Oaktree SBIC Fund, L.P. ("Oaktree") and EJF Silvergate Ventures Fund LP ("Silvergate").
The $1.4 million increase in non-interest income from the three months ended December 31, 2024 was largely attributable to increases of $0.9 million in late and prepayment charges, $0.4 million in grant income and $0.3 million in other non-interest income attributable to positive valuation adjustments for the Bank's investments in Oaktree and Silvergate, partially offset by decreases of $0.1 million in income on sale of SBA loans and $0.1 million in income on the sale of mortgage loans.
Non-interest income for the year ended December 31, 2025, was $9.4 million, an increase of $2.2 million, or 30.49%, compared to $7.2 million for the year ended December 31, 2024. The $2.2 million increase in non-interest income was largely attributable to increases of $1.6 million in late and prepayment charges, $1.3 million in grant income and $0.3 million in income on sale of SBA loans, partially offset by decreases of $0.6 million in other non-interest income and $0.4 million in income on the sale of mortgage loans.
Non-interest Expense
Non-interest expense for the three months ended December 31, 2025 was $16.6 million, remaining flat compared to the three months ended September 30, 2025 and a decrease of $0.8 million compared to $17.5 million when compared to the three months ended December 31, 2024.
The $0.8 million decrease in non-interest expense from the three months ended December 31, 2024 was mainly attributable to decreases of $0.5 million in direct loan expenses, $0.3 million in federal deposit insurance and regulatory assessment, and $0.3 million in professional fees, partially offset by an increase of $0.4 million in compensation and benefits.
Non-interest expense for the year ended December 31, 2025, was $67.0 million, a decrease of $0.4 million, or 0.66%, compared to $67.5 million for the year ended December 31, 2024. The $0.4 million decrease in non-interest expense was mainly attributable to decreases of $1.7 million in direct loan expenses and $0.6 million in professional fees, $0.3 million in federal deposit insurance and regulatory assessment, and $0.3 million in office supplies, telephone and postage, partially offset by increases of $0.9 million in occupancy and equipment, $0.5 million in compensation and benefits, $0.5 million in data processing expenses and $0.2 million in other operating expense.
Credit Quality:
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $30.2 million at December 31, 2025 compared to $32.4 million at September 30, 2025 and $32.1 million at December 31, 2024.
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 September 30, 2025, a credit loss provision of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion and $0.5 million charged on the unfunded portion on loans. During the three months ended December 31, 2024, a credit loss provision of $0.9 million on loans was recorded, consisting of $1.1 million charged on the funded portion on loans and a benefit of $0.2 million on the unfunded portion on loans.
During the year ended December 31, 2025, a credit loss provision of $3.8 million on loans was recorded, consisting of $4.5 million charged on the funded portion and a benefit of $0.7 million on the unfunded portion on loans. During the year ended December 31, 2024, a credit loss provision of $0.8 million on loans was recorded, consisting of $1.5 million charged on the funded portion on loans and a benefit of $0.7 million on unfunded portion on loans.
Balance Sheet Summary
Total assets increased $184.0 million, or 6.05%, to $3.22 billion as of December 31, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $312.7 million in net loans receivable and $10.7 million in purchases of Federal Reserve Bank of New York stock, partially offset by decreases of $95.0 million in held-to-maturity securities, $13.7 million in cash and cash equivalents, $12.8 million in available-for-sale securities, $7.6 million in other assets, $7.3 million in mortgage loans held for sale, $1.5 million in right of use asset, $1.2 million in premises and equipment, net and $0.6 million in deferred tax assets.
Total liabilities increased $148.0 million, or 5.84%, to $2.68 billion as of December 31, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to an increase of $151.4 million in deposits, partially offset by decreases of $2.2 million in other liabilities and $1.3 million in operating lease liabilities.
Total stockholders’ equity increased $36.0 million, or 7.13%, to $541.5 million as of December 31, 2025, from $505.5 million as of December 31, 2024. The $36.0 million increase in stockholders’ equity was largely attributable to $28.7 million in net income, $4.5 million in other comprehensive income, $1.9 million impact to additional paid in capital as a result of share-based compensation, $1.9 million from release of ESOP shares and $0.1 million from exercise of stock options, offset by $1.1 million in dividends on preferred shares.
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 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.
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)
| As of | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks: | |||||||||||||||||||
| Cash | $ | 28,511 | $ | 29,296 | $ | 35,767 | $ | 32,113 | $ | 35,478 | |||||||||
| Interest-bearing deposits | 97,643 | 117,283 | 90,872 | 97,780 | 104,361 | ||||||||||||||
| Total cash and cash equivalents | 126,154 | 146,579 | 126,639 | 129,893 | 139,839 | ||||||||||||||
| Available-for-sale securities, at fair value | 92,196 | 94,822 | 96,562 | 103,570 | 104,970 | ||||||||||||||
| Held-to-maturity securities, at amortized cost | 272,982 | 285,125 | 336,879 | 358,024 | 367,938 | ||||||||||||||
| Placement with banks | 249 | 249 | 249 | 249 | 249 | ||||||||||||||
| Mortgage loans held for sale, at fair value | 3,388 | 5,794 | 5,703 | 8,567 | 10,736 | ||||||||||||||
| Loans receivable, net | 2,599,258 | 2,490,046 | 2,458,712 | 2,370,931 | 2,286,599 | ||||||||||||||
| Accrued interest receivable | 17,905 | 18,903 | 19,126 | 19,008 | 17,771 | ||||||||||||||
| Premises and equipment, net | 15,638 | 16,129 | 16,067 | 16,417 | 16,794 | ||||||||||||||
| Right of use assets | 27,583 | 28,295 | 28,806 | 29,496 | 29,093 | ||||||||||||||
| Federal Home Loan Bank of New York stock (FHLBNY), at cost | 29,309 | 25,945 | 26,620 | 25,807 | 29,182 | ||||||||||||||
| Federal Reserve Bank of New York stock (FRBNY), at cost | 10,698 | — | — | — | — | ||||||||||||||
| Deferred tax assets | 11,501 | 12,402 | 12,143 | 11,629 | 12,074 | ||||||||||||||
| Other assets | 17,109 | 32,790 | 26,363 | 16,245 | 24,693 | ||||||||||||||
| Total assets | $ | 3,223,970 | $ | 3,157,079 | $ | 3,153,869 | $ | 3,089,836 | $ | 3,039,938 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||
| Deposits | $ | 2,046,635 | $ | 2,063,081 | $ | 2,053,151 | $ | 2,017,848 | $ | 1,895,213 | |||||||||
| Borrowings | 596,100 | 521,100 | 536,100 | 521,100 | 596,100 | ||||||||||||||
| Operating lease liabilities | 29,353 | 30,028 | 30,501 | 31,126 | 30,696 | ||||||||||||||
| Accrued interest payable | 3,788 | 4,372 | 4,161 | 4,628 | 3,712 | ||||||||||||||
| Other liabilities | 6,545 | 8,663 | 8,868 | 1,248 | 8,717 | ||||||||||||||
| Total liabilities | 2,682,421 | 2,627,244 | 2,632,781 | 2,575,950 | 2,534,438 | ||||||||||||||
| 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 | (6,164 | ) | (7,270 | ) | (7,404 | ) | (7,641 | ) | (7,707 | ) | |||||||||
| Additional paid-in-capital | 208,604 | 208,909 | 208,275 | 207,888 | 207,319 | ||||||||||||||
| Retained earnings | 135,332 | 125,477 | 119,250 | 113,432 | 107,754 | ||||||||||||||
| Accumulated other comprehensive loss | (10,820 | ) | (11,586 | ) | (13,047 | ) | (13,515 | ) | (15,297 | ) | |||||||||
| Unearned compensation ─ ESOP | (10,652 | ) | (10,944 | ) | (11,235 | ) | (11,527 | ) | (11,818 | ) | |||||||||
| Total stockholders' equity | 541,549 | 529,835 | 521,088 | 513,886 | 505,500 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,223,970 | $ | 3,157,079 | $ | 3,153,869 | $ | 3,089,836 | $ | 3,039,938 | |||||||||
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
| Three Months Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||||||
| Interest and dividend income: | |||||||||||||||||||
| Interest on loans receivable | $ | 43,599 | $ | 41,486 | $ | 40,291 | $ | 37,136 | $ | 35,622 | |||||||||
| Interest on deposits due from banks | 1,209 | 978 | 807 | 1,668 | 1,783 | ||||||||||||||
| Interest and dividend on securities and FHLBNY stock | 4,013 | 4,383 | 4,762 | 5,193 | 5,481 | ||||||||||||||
| Total interest and dividend income | 48,821 | 46,847 | 45,860 | 43,997 | 42,886 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Interest on certificates of deposit | 6,706 | 6,553 | 7,382 | 7,754 | 8,104 | ||||||||||||||
| Interest on other deposits | 9,106 | 9,996 | 9,058 | 8,554 | 8,476 | ||||||||||||||
| Interest on borrowings | 5,075 | 5,050 | 4,994 | 5,486 | 5,576 | ||||||||||||||
| Total interest expense | 20,887 | 21,599 | 21,434 | 21,794 | 22,156 | ||||||||||||||
| Net interest income | 27,934 | 25,248 | 24,426 | 22,203 | 20,730 | ||||||||||||||
| Provision (benefit) for credit losses | 1,078 | 1,364 | 1,626 | (285 | ) | 897 | |||||||||||||
| Net interest income after provision (benefit) for credit losses | 26,856 | 23,884 | 22,800 | 22,488 | 19,833 | ||||||||||||||
| Non-interest income: | |||||||||||||||||||
| Service charges and fees | 542 | 539 | 511 | 525 | 500 | ||||||||||||||
| Brokerage commissions | 23 | 8 | — | 4 | 44 | ||||||||||||||
| Late and prepayment charges | 1,173 | 385 | 530 | 697 | 318 | ||||||||||||||
| Income on sale of mortgage loans | 139 | 166 | 169 | 148 | 254 | ||||||||||||||
| Income on sale of SBA loans | — | — | — | 404 | 148 | ||||||||||||||
| Grant income | 428 | 429 | 428 | — | — | ||||||||||||||
| Other | 1,174 | (35 | ) | 422 | 603 | 833 | |||||||||||||
| Total non-interest income | 3,479 | 1,492 | 2,060 | 2,381 | 2,097 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||||
| Compensation and benefits | 8,113 | 7,868 | 7,627 | 7,780 | 7,668 | ||||||||||||||
| Occupancy and equipment | 4,033 | 3,934 | 3,907 | 3,913 | 3,863 | ||||||||||||||
| Data processing expenses | 1,223 | 1,296 | 1,188 | 1,152 | 1,143 | ||||||||||||||
| Direct loan expenses | 116 | 155 | 241 | 388 | 617 | ||||||||||||||
| Insurance and surety bond premiums | 324 | 318 | 297 | 315 | 293 | ||||||||||||||
| Office supplies, telephone and postage | 186 | 170 | 174 | 170 | 294 | ||||||||||||||
| Professional fees | 1,392 | 1,409 | 1,367 | 1,364 | 1,703 | ||||||||||||||
| Microloans recoveries | — | — | — | — | (29 | ) | |||||||||||||
| Marketing and promotional expenses | 94 | 184 | 266 | 83 | 289 | ||||||||||||||
| Federal deposit insurance and regulatory assessment | 97 | 266 | 546 | 461 | 418 | ||||||||||||||
| Other operating expenses | 1,056 | 1,018 | 1,256 | 1,262 | 1,206 | ||||||||||||||
| Total non-interest expense | 16,634 | 16,618 | 16,869 | 16,888 | 17,465 | ||||||||||||||
| Income before income taxes | 13,701 | 8,758 | 7,991 | 7,981 | 4,465 | ||||||||||||||
| Provision for income taxes | 3,565 | 2,250 | 1,891 | 2,022 | 1,532 | ||||||||||||||
| Net income | $ | 10,136 | $ | 6,508 | $ | 6,100 | $ | 5,959 | $ | 2,933 | |||||||||
| Dividends on preferred shares | 281 | 281 | 282 | 281 | 282 | ||||||||||||||
| Net income available to common stockholders | $ | 9,855 | $ | 6,227 | $ | 5,818 | $ | 5,678 | $ | 2,651 | |||||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 0.43 | $ | 0.27 | $ | 0.26 | $ | 0.25 | $ | 0.12 | |||||||||
| Diluted | $ | 0.42 | $ | 0.27 | $ | 0.25 | $ | 0.25 | $ | 0.12 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||
| Basic | 22,837,044 | 22,766,195 | 22,716,615 | 22,662,916 | 22,528,160 | ||||||||||||||
| Diluted | 23,263,708 | 23,135,448 | 22,947,769 | 22,876,740 | 22,807,644 | ||||||||||||||
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
| For the Years Ended December 31, | ||||||||||||||||
| 2025 | 2024 | Variance $ | Variance % | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Interest on loans receivable | $ | 162,512 | $ | 130,512 | $ | 32,000 | 24.52 | % | ||||||||
| Interest on deposits due from banks | 4,662 | 8,666 | (4,004 | ) | (46.20 | %) | ||||||||||
| Interest and dividend on securities and FHLBNY stock | 18,351 | 23,459 | (5,108 | ) | (21.77 | %) | ||||||||||
| Total interest and dividend income | 185,525 | 162,637 | 22,888 | 14.07 | % | |||||||||||
| Interest expense: | ||||||||||||||||
| Interest on certificates of deposit | 28,395 | 27,768 | 627 | 2.26 | % | |||||||||||
| Interest on other deposits | 36,714 | 30,924 | 5,790 | 18.72 | % | |||||||||||
| Interest on borrowings | 20,605 | 27,465 | (6,860 | ) | (24.98 | %) | ||||||||||
| Total interest expense | 85,714 | 86,157 | (443 | ) | (0.51 | %) | ||||||||||
| Net interest income | 99,811 | 76,480 | 23,331 | 30.51 | % | |||||||||||
| Provision for credit losses | 3,783 | 551 | 3,232 | 586.57 | % | |||||||||||
| Net interest income after provision for credit losses | 96,028 | 75,929 | 20,099 | 26.47 | % | |||||||||||
| Non-interest income: | ||||||||||||||||
| Service charges and fees | 2,117 | 1,973 | 144 | 7.30 | % | |||||||||||
| Brokerage commissions | 35 | 61 | (26 | ) | (42.62 | %) | ||||||||||
| Late and prepayment charges | 2,785 | 1,180 | 1,605 | 136.02 | % | |||||||||||
| Income on sale of mortgage loans | 622 | 1,048 | (426 | ) | (40.65 | %) | ||||||||||
| Income on sale of SBA loans | 404 | 148 | 256 | 172.97 | % | |||||||||||
| Grant income | 1,285 | — | 1,285 | — | % | |||||||||||
| Other | 2,164 | 2,803 | (639 | ) | (22.80 | %) | ||||||||||
| Total non-interest income | 9,412 | 7,213 | 2,199 | 30.49 | % | |||||||||||
| Non-interest expense: | ||||||||||||||||
| Compensation and benefits | 31,388 | 30,910 | 478 | 1.55 | % | |||||||||||
| Occupancy and equipment | 15,787 | 14,880 | 907 | 6.10 | % | |||||||||||
| Data processing expenses | 4,859 | 4,382 | 477 | 10.89 | % | |||||||||||
| Direct loan expenses | 900 | 2,555 | (1,655 | ) | (64.77 | %) | ||||||||||
| Insurance and surety bond premiums | 1,254 | 1,101 | 153 | 13.90 | % | |||||||||||
| Office supplies, telephone and postage | 700 | 998 | (298 | ) | (29.86 | %) | ||||||||||
| Professional fees | 5,532 | 6,146 | (614 | ) | (9.99 | %) | ||||||||||
| Microloans recoveries | — | (201 | ) | 201 | (100.00 | %) | ||||||||||
| Marketing and promotional expenses | 627 | 714 | (87 | ) | (12.18 | %) | ||||||||||
| Federal deposit insurance and regulatory assessments | 1,370 | 1,627 | (257 | ) | (15.80 | %) | ||||||||||
| Other operating expenses | 4,592 | 4,345 | 247 | 5.68 | % | |||||||||||
| Total non-interest expense | 67,009 | 67,457 | (448 | ) | (0.66 | %) | ||||||||||
| Income before income taxes | 38,431 | 15,685 | 22,746 | 145.02 | % | |||||||||||
| Provision for income taxes | 9,728 | 4,713 | 5,015 | 106.41 | % | |||||||||||
| Net income | $ | 28,703 | $ | 10,972 | $ | 17,731 | 161.60 | % | ||||||||
| Dividends on preferred shares | 1,125 | 638 | 487 | 76.33 | % | |||||||||||
| Net income available to common stockholders | $ | 27,578 | $ | 10,334 | $ | 17,244 | 166.87 | % | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 1.21 | $ | 0.46 | $ | 0.75 | 163.00 | % | ||||||||
| Diluted | $ | 1.20 | $ | 0.46 | $ | 0.74 | 160.87 | % | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 22,746,226 | 22,434,654 | 311,572 | 1.39 | % | |||||||||||
| Diluted | 23,060,669 | 22,551,715 | 508,954 | 2.26 | % | |||||||||||
Ponce Financial Group, Inc. and Subsidiaries
Loans Receivable excluding Mortgage Loans Held for Sale
| As of | ||||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||||||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
| 1-4 family residential | ||||||||||||||||||||||||||||||||||||||||
| Investor Owned | $ | 307,267 | 11.70 | % | $ | 311,728 | 12.39 | % | $ | 317,488 | 12.78 | % | $ | 325,866 | 13.62 | % | $ | 330,053 | 14.30 | % | ||||||||||||||||||||
| Owner-Occupied | 127,107 | 4.84 | % | 132,874 | 5.28 | % | 134,862 | 5.43 | % | 137,676 | 5.75 | % | 142,363 | 6.17 | % | |||||||||||||||||||||||||
| Multifamily residential | 756,542 | 28.83 | % | 688,574 | 27.39 | % | 693,670 | 27.96 | % | 675,541 | 28.24 | % | 670,159 | 29.04 | % | |||||||||||||||||||||||||
| Nonresidential properties | 526,210 | 20.05 | % | 436,175 | 17.35 | % | 404,512 | 16.30 | % | 390,681 | 16.33 | % | 389,898 | 16.89 | % | |||||||||||||||||||||||||
| Construction and land | 854,096 | 32.54 | % | 886,369 | 35.25 | % | 883,462 | 35.59 | % | 815,425 | 34.08 | % | 733,660 | 31.79 | % | |||||||||||||||||||||||||
| Total mortgage loans | 2,571,222 | 97.96 | % | 2,455,720 | 97.66 | % | 2,433,994 | 98.06 | % | 2,345,189 | 98.02 | % | 2,266,133 | 98.19 | % | |||||||||||||||||||||||||
| Non-mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
| Business loans | 53,063 | 2.02 | % | 58,012 | 2.31 | % | 47,372 | 1.91 | % | 46,329 | 1.94 | % | 40,849 | 1.77 | % | |||||||||||||||||||||||||
| Consumer loans | 625 | 0.02 | % | 727 | 0.03 | % | 840 | 0.03 | % | 997 | 0.04 | % | 1,038 | 0.04 | % | |||||||||||||||||||||||||
| Total non-mortgage loans | 53,688 | 2.04 | % | 58,739 | 2.34 | % | 48,212 | 1.94 | % | 47,326 | 1.98 | % | 41,887 | 1.81 | % | |||||||||||||||||||||||||
| Total loans, gross | 2,624,910 | 100.00 | % | 2,514,459 | 100.00 | % | 2,482,206 | 100.00 | % | 2,392,515 | 100.00 | % | 2,308,020 | 100.00 | % | |||||||||||||||||||||||||
| Net deferred loan origination costs | (203 | ) | 351 | 606 | 1,390 | 1,081 | ||||||||||||||||||||||||||||||||||
| Allowance for credit losses on loans | (25,449 | ) | (24,764 | ) | (24,100 | ) | (22,974 | ) | (22,502 | ) | ||||||||||||||||||||||||||||||
| Loans, net | $ | 2,599,258 | $ | 2,490,046 | $ | 2,458,712 | $ | 2,370,931 | $ | 2,286,599 | ||||||||||||||||||||||||||||||
Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans
| For the Three Months Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Allowance for credit losses on loans at beginning of the period | $ | 24,764 | $ | 24,100 | $ | 22,974 | $ | 22,502 | $ | 23,966 | |||||||||
| Provision for credit losses on loans | 1,526 | 864 | 1,348 | 731 | 1,090 | ||||||||||||||
| Charge-offs: | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residences | |||||||||||||||||||
| Investor owned | (32 | ) | — | — | (38 | ) | — | ||||||||||||
| Non-mortgage loans: | |||||||||||||||||||
| Business | (801 | ) | (200 | ) | (222 | ) | (222 | ) | (232 | ) | |||||||||
| Consumer | (44 | ) | — | — | (3 | ) | (2,465 | ) | |||||||||||
| Total charge-offs | (877 | ) | (200 | ) | (222 | ) | (263 | ) | (2,697 | ) | |||||||||
| Recoveries: | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residences | |||||||||||||||||||
| Investor owned | 1 | — | — | — | — | ||||||||||||||
| Non-mortgage loans: | |||||||||||||||||||
| Business | 35 | — | — | 4 | — | ||||||||||||||
| Consumer | — | — | — | — | 143 | ||||||||||||||
| Total recoveries | 36 | — | — | 4 | 143 | ||||||||||||||
| Net (charge-offs) recoveries | (841 | ) | (200 | ) | (222 | ) | (259 | ) | (2,554 | ) | |||||||||
| Allowance for credit losses on loans at end of the period | $ | 25,449 | $ | 24,764 | $ | 24,100 | $ | 22,974 | $ | 22,502 | |||||||||
Ponce Financial Group, Inc. and Subsidiaries
Deposits
| As of | ||||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||||||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
| Demand | $ | 208,250 | 10.18 | % | $ | 192,595 | 9.34 | % | $ | 197,671 | 9.63 | % | $ | 212,139 | 10.51 | % | $ | 169,178 | 8.93 | % | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||
| NOW/IOLA accounts | 84,012 | 4.10 | % | 75,051 | 3.64 | % | 63,626 | 3.10 | % | 74,430 | 3.69 | % | 62,616 | 3.30 | % | |||||||||||||||||||||||||
| Money market accounts | 779,532 | 38.09 | % | 821,844 | 39.84 | % | 790,939 | 38.52 | % | 692,753 | 34.33 | % | 636,219 | 33.57 | % | |||||||||||||||||||||||||
| Reciprocal deposits | 152,630 | 7.46 | % | 154,548 | 7.49 | % | 136,693 | 6.66 | % | 141,838 | 7.03 | % | 130,677 | 6.90 | % | |||||||||||||||||||||||||
| Savings accounts(1) | 117,708 | 5.75 | % | 117,401 | 5.69 | % | 113,701 | 5.53 | % | 119,023 | 5.90 | % | 116,219 | 6.12 | % | |||||||||||||||||||||||||
| Total NOW, money market, reciprocal and savings accounts | 1,133,882 | 55.40 | % | 1,168,844 | 56.66 | % | 1,104,959 | 53.81 | % | 1,028,044 | 50.95 | % | 945,731 | 49.89 | % | |||||||||||||||||||||||||
| Certificates of deposit of $250K or more | 202,500 | 9.89 | % | 209,819 | 10.17 | % | 220,671 | 10.75 | % | 219,721 | 10.89 | % | 204,293 | 10.78 | % | |||||||||||||||||||||||||
| Brokered certificates of deposit(2) | 67,942 | 3.32 | % | 67,952 | 3.29 | % | 69,531 | 3.39 | % | 84,531 | 4.19 | % | 94,531 | 4.99 | % | |||||||||||||||||||||||||
| Listing service deposits(2) | 4,150 | 0.20 | % | 4,150 | 0.20 | % | 6,140 | 0.30 | % | 6,140 | 0.30 | % | 7,376 | 0.39 | % | |||||||||||||||||||||||||
| All other certificates of deposit less than $250K | 429,911 | 21.01 | % | 419,721 | 20.34 | % | 454,179 | 22.12 | % | 467,273 | 23.16 | % | 474,104 | 25.02 | % | |||||||||||||||||||||||||
| Total certificates of deposit | 704,503 | 34.42 | % | 701,642 | 34.00 | % | 750,521 | 36.56 | % | 777,665 | 38.54 | % | 780,304 | 41.18 | % | |||||||||||||||||||||||||
| Total interest-bearing deposits | 1,838,385 | 89.82 | % | 1,870,486 | 90.66 | % | 1,855,480 | 90.37 | % | 1,805,709 | 89.49 | % | 1,726,035 | 91.07 | % | |||||||||||||||||||||||||
| Total deposits | $ | 2,046,635 | 100.00 | % | $ | 2,063,081 | 100.00 | % | $ | 2,053,151 | 100.00 | % | $ | 2,017,848 | 100.00 | % | $ | 1,895,213 | 100.00 | % | ||||||||||||||||||||
(1) As of June 30, 2025, March 31, 2025 and December 31, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million and $10.3 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.
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
| As of Three Months Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Non-accrual loans: | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residential | |||||||||||||||||||
| Investor owned | $ | 2,870 | $ | 2,527 | $ | 1,859 | $ | 1,052 | $ | 436 | |||||||||
| Owner occupied | 1,557 | 649 | — | 1,423 | 1,423 | ||||||||||||||
| Multifamily residential | 13,112 | 14,202 | 11,703 | 9,788 | 10,271 | ||||||||||||||
| Nonresidential properties | — | — | 405 | — | — | ||||||||||||||
| Construction and land | 8,247 | 8,907 | 8,907 | 14,159 | 14,158 | ||||||||||||||
| Non-mortgage loans: | |||||||||||||||||||
| Business | 667 | 880 | 276 | 170 | 343 | ||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||
| Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty)(1) | $ | 26,453 | $ | 27,165 | $ | 23,150 | $ | 26,592 | $ | 26,631 | |||||||||
| Non-accruing modifications to borrowers experiencing financial difficulty(1): | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residential | |||||||||||||||||||
| Investor owned | $ | — | $ | 284 | $ | 284 | $ | 279 | $ | 279 | |||||||||
| Owner occupied | 410 | 414 | 424 | 431 | 435 | ||||||||||||||
| Total non-accruing modifications to borrowers experiencing financial difficulty(1) | 410 | 698 | 708 | 710 | 714 | ||||||||||||||
| Total non-performing assets(2) | $ | 26,863 | $ | 27,863 | $ | 23,858 | $ | 27,302 | $ | 27,345 | |||||||||
| Accruing modifications to borrowers experiencing financial difficulty(1): | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residential | |||||||||||||||||||
| Investor owned | $ | 1,753 | $ | 1,766 | $ | 1,779 | $ | 1,792 | $ | 1,807 | |||||||||
| Owner occupied | 821 | 1,959 | 2,012 | 2,038 | 2,062 | ||||||||||||||
| Multifamily residential | — | — | — | — | — | ||||||||||||||
| Nonresidential properties | 621 | 629 | 655 | 644 | 652 | ||||||||||||||
| Construction and land | — | — | — | — | — | ||||||||||||||
| Non-mortgage loans: | |||||||||||||||||||
| Business | 190 | 196 | 203 | 209 | 215 | ||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||
| Total accruing modifications to borrowers experiencing financial difficulty(1) | $ | 3,385 | $ | 4,550 | $ | 4,649 | $ | 4,683 | $ | 4,736 | |||||||||
| Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty(1) | $ | 30,248 | $ | 32,413 | $ | 28,507 | $ | 31,985 | $ | 32,081 | |||||||||
| Total non-performing assets to total assets | 0.83 | % | 0.88 | % | 0.76 | % | 0.87 | % | 0.90 | % | |||||||||
(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 December 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) | $ | 2,572,286 | $ | 43,599 | 6.72 | % | $ | 2,261,426 | $ | 35,622 | 6.27 | % | |||||||||
| Securities(3) | 373,333 | 3,370 | 3.58 | % | 507,510 | 4,860 | 3.81 | % | |||||||||||||
| Other(4) | 157,430 | 1,852 | 4.67 | % | 179,701 | 2,404 | 5.32 | % | |||||||||||||
| Total interest-earning assets | 3,103,049 | 48,821 | 6.24 | % | 2,948,637 | 42,886 | 5.79 | % | |||||||||||||
| Non-interest-earning assets | 94,050 | 108,558 | |||||||||||||||||||
| Total assets | $ | 3,197,099 | $ | 3,057,195 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| NOW/IOLA | $ | 73,304 | $ | 131 | 0.71 | % | $ | 68,776 | $ | 119 | 0.69 | % | |||||||||
| Money market | 953,849 | 8,947 | 3.72 | % | 761,130 | 8,329 | 4.35 | % | |||||||||||||
| Savings(5) | 121,352 | 28 | 0.09 | % | 124,364 | 28 | 0.09 | % | |||||||||||||
| Certificates of deposit | 713,390 | 6,706 | 3.73 | % | 783,335 | 8,104 | 4.12 | % | |||||||||||||
| Total deposits | 1,861,895 | 15,812 | 3.37 | % | 1,737,605 | 16,580 | 3.80 | % | |||||||||||||
| Borrowings | 526,263 | 5,075 | 3.83 | % | 573,316 | 5,576 | 3.87 | % | |||||||||||||
| Total interest-bearing liabilities | 2,388,158 | 20,887 | 3.47 | % | 2,310,921 | 22,156 | 3.81 | % | |||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||
| Non-interest-bearing demand | 228,978 | — | 191,355 | — | |||||||||||||||||
| Other non-interest-bearing liabilities | 42,062 | — | 47,875 | — | |||||||||||||||||
| Total non-interest-bearing liabilities | 271,040 | — | 239,230 | — | |||||||||||||||||
| Total liabilities | 2,659,198 | 20,887 | 2,550,151 | 22,156 | |||||||||||||||||
| Total equity | 537,901 | 507,044 | |||||||||||||||||||
| Total liabilities and total equity | $ | 3,197,099 | 3.47 | % | $ | 3,057,195 | 3.81 | % | |||||||||||||
| Net interest income | $ | 27,934 | $ | 20,730 | |||||||||||||||||
| Net interest rate spread(6) | 2.77 | % | 1.98 | % | |||||||||||||||||
| Net interest-earning assets(7) | $ | 714,891 | $ | 637,716 | |||||||||||||||||
| Net interest margin(8) | 3.57 | % | 2.80 | % | |||||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 129.93 | % | 127.60 | % | |||||||||||||||||
(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 December 31, 2024, advance payments by borrowers for taxes and insurance in the amounts of $15.1 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.
Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets
| For the Years Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Average | Average | ||||||||||||||||||||||
| Outstanding | Average | Outstanding | Average | ||||||||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate(1) | ||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans(1) | $ | 2,472,805 | $ | 162,512 | 6.57 | % | $ | 2,094,820 | $ | 130,512 | 6.23 | % | |||||||||||
| Securities(2) | 427,033 | 16,050 | 3.76 | % | 548,641 | 21,289 | 3.88 | % | |||||||||||||||
| Other(3) | 141,438 | 6,963 | 4.92 | % | 192,403 | 10,836 | 5.63 | % | |||||||||||||||
| Total interest-earning assets | 3,041,276 | 185,525 | 6.10 | % | 2,835,864 | 162,637 | 5.74 | % | |||||||||||||||
| Non-interest-earning assets | 100,790 | 107,017 | |||||||||||||||||||||
| Total assets | $ | 3,142,066 | $ | 2,942,881 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| NOW/IOLA | $ | 73,102 | $ | 483 | 0.66 | % | $ | 74,796 | $ | 662 | 0.89 | % | |||||||||||
| Money market | 901,692 | 36,119 | 4.01 | % | 654,521 | 30,148 | 4.61 | % | |||||||||||||||
| Savings(4) | 119,335 | 112 | 0.09 | % | 125,062 | 114 | 0.09 | % | |||||||||||||||
| Certificates of deposit | 744,497 | 28,395 | 3.81 | % | 676,306 | 27,768 | 4.11 | % | |||||||||||||||
| Total deposits | 1,838,626 | 65,109 | 3.54 | % | 1,530,685 | 58,692 | 3.83 | % | |||||||||||||||
| Borrowings | 534,183 | 20,605 | 3.86 | % | 670,982 | 27,465 | 4.09 | % | |||||||||||||||
| Total interest-bearing liabilities | 2,372,809 | 85,714 | 3.61 | % | 2,201,667 | 86,157 | 3.91 | % | |||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||||
| Non-interest-bearing demand | 207,288 | — | 191,155 | — | |||||||||||||||||||
| Other non-interest-bearing liabilities | 38,431 | — | 50,259 | — | |||||||||||||||||||
| Total non-interest-bearing liabilities | 245,719 | — | 241,414 | — | |||||||||||||||||||
| Total liabilities | 2,618,528 | 85,714 | 2,443,081 | 86,157 | |||||||||||||||||||
| Total equity | 523,538 | 499,800 | |||||||||||||||||||||
| Total liabilities and total equity | $ | 3,142,066 | 3.61 | % | $ | 2,942,881 | 3.91 | % | |||||||||||||||
| Net interest income | $ | 99,811 | $ | 76,480 | |||||||||||||||||||
| Net interest rate spread(5) | 2.49 | % | 1.83 | % | |||||||||||||||||||
| Net interest-earning assets(6) | $ | 668,467 | $ | 634,197 | |||||||||||||||||||
| Net interest margin(7) | 3.28 | % | 2.70 | % | |||||||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 128.17 | % | 128.81 | % | |||||||||||||||||||
(1) Loans include loans and mortgage loans held for sale, at fair value.
(2) Securities include available-for-sale securities and held-to-maturity securities.
(3) Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(4) For the year ended December 31, 2024, advance payments by borrowers for taxes and insurance in the amounts of $14.0 million, were reclassified to savings.
(5) 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.
(6) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(7) Net interest margin represents net interest income divided by average total interest-earning assets.
Ponce Financial Group, Inc. and Subsidiaries
Other Data
| As of | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||||||
| Other Data | |||||||||||||||||||
| Common shares issued | 24,886,711 | 24,886,711 | 24,886,711 | 24,886,711 | 24,886,711 | ||||||||||||||
| Less treasury shares | 750,785 | 885,586 | 901,911 | 920,520 | 925,497 | ||||||||||||||
| Common shares outstanding at end of period | 24,135,926 | 24,001,125 | 23,984,800 | 23,966,191 | 23,961,214 | ||||||||||||||
| Book value per common share | $ | 13.12 | $ | 12.70 | $ | 12.34 | $ | 12.05 | $ | 11.71 | |||||||||
| Tangible book value per common share | $ | 13.12 | $ | 12.70 | $ | 12.34 | $ | 12.05 | $ | 11.71 | |||||||||
Contact:
Sergio Vaccaro
sergio.vaccaro@poncebank.net
718-931-9000
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