YORK, April 25, 2025 (GLOBE NEWSWIRE) -- 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
(1) Annualized where appropriate.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
Summary of Results of Operations
Net income for the three months ended March 31, 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)
As of
March 31,
December 31,
September 30,
June 30,
March 31,
2025
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
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
$
6,472
21.11
%
Interest on deposits due from banks
1,668
2,911
(1,243
)
(42.70
%)
Interest and dividend on securities and FHLBNY stock
5,193
6,091
(898
)
(14.74
%)
Total interest and dividend income
43,997
39,666
4,331
10.92
%
Interest expense:
Interest on certificates of deposit
7,754
6,380
1,374
21.54
%
Interest on other deposits
8,554
6,540
2,014
30.80
%
Interest on borrowings
5,486
7,923
(2,437
)
(30.76
%)
Total interest expense
21,794
20,843
951
4.56
%
Net interest income
22,203
18,823
3,380
17.96
%
Benefit for credit losses (1)
(285
)
(16
)
(269
)
1,681.25
%
Net interest income after benefit for credit losses
22,488
18,839
3,649
19.37
%
Non-interest income:
Service charges and fees
525
473
52
10.99
%
Brokerage commissions
4
8
(4
)
(50.00
%)
Late and prepayment charges
697
359
338
94.15
%
Income on sale of mortgage loans
148
302
(154
)
(50.99
%)
Income on sale of SBA loans
404
—
404
—
%
Other
603
565
38
6.73
%
Total non-interest income
2,381
1,707
674
39.48
%
Non-interest expense:
Compensation and benefits
7,780
7,844
(64
)
(0.82
%)
Occupancy and equipment
3,913
3,667
246
6.71
%
Data processing expenses
1,152
1,127
25
2.22
%
Direct loan expenses
388
732
(344
)
(46.99
%)
Insurance and surety bond premiums
315
253
62
24.51
%
Office supplies, telephone and postage
170
249
(79
)
(31.73
%)
Professional fees
1,364
1,723
(359
)
(20.84
%)
Microloans recoveries
—
(53
)
53
(100.00
%)
Marketing and promotional expenses
83
100
(17
)
(17.00
%)
Federal deposit insurance and regulatory assessments (2)
461
389
72
18.51
%
Other operating expenses (2)
1,262
755
507
67.15
%
Total non-interest expense (1)
16,888
16,786
102
0.61
%
Income before income taxes
7,981
3,760
4,221
112.26
%
Provision for income taxes
2,022
1,346
676
50.22
%
Net income
$
5,959
$
2,414
$
3,545
146.85
%
Dividends on preferred shares
281
—
281
—
%
Net income available to common stockholders
$
5,678
$
2,414
$
3,264
135.21
%
Earnings per common share:
Basic
$
0.25
$
0.11
$
0.14
127.27
%
Diluted
$
0.25
$
0.11
$
0.14
127.27
%
Weighted average common shares outstanding:
Basic
22,662,916
22,353,492
309,424
1.38
%
Diluted
22,876,740
22,366,728
510,012
2.28
%
(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
(1) 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
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)
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
%
(1) 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.
(2) 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
%
(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) 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
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
Contact:
Sergio J. Vaccaro
sergio.vaccaro@poncebank.net
718-931-9000
Source: Ponce Financial Group, Inc.