(GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the fourth quarter of 2024.
Fourth Quarter 2024 Highlights (Compared to Prior Periods):
Net income available to common stockholders was $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024, as compared to net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024 and net income available to common stockholders of $0.5 million, or $0.02 per diluted share for the three months ended December 31, 2023. Total net income for the three months ended December 31, 2024 was $2.9 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended December 31, 2024.
Included in the $2.7 million of net income available to common stockholders for the fourth quarter of 2024 results is $42.9 million in interest and dividend income and $2.1 million in non-interest income, offset by $22.2 million in interest expense, $17.3 million in non-interest expense, $1.5 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 $20.7 million for the fourth quarter of 2024 increased $1.7 million, or 8.97%, from the prior quarter and increased $3.5 million, or 20.54%, from the same quarter last year.
Net interest margin was 2.80% for the fourth quarter of 2024, versus 2.65% for the prior quarter and 2.66% for the same quarter last year.
Full Year 2024 Highlights (Compared to 2023):
Net income available to common stockholders was $10.3 million, or $0.46 per diluted share for the year ended December 31, 2024, compared to net income available to common stockholders of $3.4 million, or $0.15 per diluted share for the year ended December 31, 2023. Total net income for the year ended December 31, 2024, prior to the payment of $0.6 million in dividends on preferred shares, was $11.0 million.
Net interest income for the year ended December 31, 2024 was $76.5 million, an increase of $11.2 million, or 17.18%, compared to $65.3 million for the year ended December 31, 2023.
Non-interest income for the year ended December 31, 2024 was $7.2 million, a decrease of $3.0 million, or 29.44%, from $10.2 million for the year ended December 31, 2023. The decrease was primarily driven by $4.2 million in grants that were received in the prior year.
Non-interest expense for the year ended December 31, 2024 was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023.
Cash and equivalents were $139.8 million as of December 31, 2024, an increase of $0.6 million, or 0.47%, from $139.2 million as of December 31, 2023.
Securities totaled $472.9 million as of December 31, 2024, a decrease of $108.7 million, or 18.70%, from $581.7 million as of December 31, 2023 primarily due to regular principal payments, the maturity of one available-for-sale security in the amount of $4.0 million and one held-to-maturity security in the amount of $25.0 million and the call of one held-to-maturity security in the amount of $25.0 million.
Net loans receivable were $2.29 billion as of December 31, 2024, an increase of $390.7 million, or 20.61%, from $1.90 billion as of December 31, 2023.
Deposits were $1.88 billion as of December 31, 2024, an increase of $377.2 million, or 25.02%, from $1.51 billion as of December 31, 2023.
President and Chief Executive Officer’s Comments
Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated, “We are pleased with the progress we have made in 2024. We executed an agreement with the U.S. Treasury that gives us the option, upon achievement of certain conditions, to buy back the ECIP preferred shares we previously issued at favorable prices, we launched our PonceDirect digital bank and gained significant traction with SBA loans. Our levels of liquidity and capital remain strong, while our loans grew by 20.61% and deposits by 25.02%. We have seen consistent profitability over the past several quarters as we continue to see increases both in net interest income as well as net interest margin, while expenses are down year on year, reflecting both reduced development and continued adoption of our new technology. We remain committed to the communities we serve and our status as a Minority Depository Institution (“MDI”)/Community Development Financial Institution ("CDFI"), and we continue to invest 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 are working diligently to ensure that we will meet the conditions necessary to allow us to repurchase our ECIP preferred stock in the future. The agreement we executed with the U.S. Treasury in December 2024, allows for a repurchase of the ECIP preferred stock once we have achieved Deep Impact Lending, as defined under the ECIP program, that is at least 60% of our total originations on average over 16 consecutive quarters, provided that we also meet certain other conditions at the time we exercise the repurchase option. As of December 31, 2024, our Deep Impact Lending over the last 10 consecutive quarters stands at 79%, well above the threshold. Also, from second quarter of 2024 to fourth quarter of 2024, we have originated $514 million of Deep Impact Lending as well as $54 million of qualified lending which represents 383% of our base, which period, together with the first quarter of 2025, will determine the rate of dividends payable on the ECIP preferred stock from the third quarter of 2025 to the second quarter of 2026. With one quarter to go, we are confident that we will get to over 400% of our base and ensure another year of preferred dividends of 0.50%, which is the lowest dividend rate.”
Selected performance metrics are as follows (refer to “Key Metrics” for additional information):
At or for the Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
Performance Ratios (Annualized):
2024
2024
2024
2024
2023
Return on average assets (1)
0.38
%
0.33
%
0.45
%
0.33
%
0.08
%
Return on average equity (1)
2.30
%
1.93
%
2.59
%
1.97
%
0.42
%
Net interest rate spread (1) (2)
1.98
%
1.77
%
1.72
%
1.82
%
1.74
%
Net interest margin (1) (3)
2.80
%
2.65
%
2.62
%
2.71
%
2.66
%
Non-interest expense to average assets (1)
2.25
%
2.19
%
2.28
%
2.35
%
2.66
%
Efficiency ratio (4)
75.63
%
80.87
%
80.09
%
82.56
%
96.83
%
Average interest-earning assets to average interest- bearing liabilities
127.60
%
128.35
%
129.73
%
129.69
%
133.50
%
Average equity to average assets
16.59
%
16.97
%
17.41
%
17.00
%
18.25
%
At or for the Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
Capital Ratios (Annualized):
2024
2024
2024
2024
2023
Total capital to risk-weighted assets (Bank only)
21.47
%
21.61
%
22.47
%
22.79
%
23.30
%
Tier 1 capital to risk-weighted assets (Bank only)
20.40
%
20.45
%
21.24
%
21.54
%
22.05
%
Common equity Tier 1 capital to risk-weighted assets (Bank only)
20.40
%
20.45
%
21.24
%
21.54
%
22.05
%
Tier 1 capital to average assets (Bank only)
15.81
%
16.19
%
16.70
%
16.26
%
17.49
%
At or for the Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
Asset Quality Ratios (Annualized):
2024
2024
2024
2024
2023
Allowance for loan losses as a percentage of total loans
0.97
%
1.09
%
1.18
%
1.23
%
1.36
%
Allowance for loan losses as a percentage of nonperforming loans
82.29
%
139.52
%
130.28
%
140.90
%
152.99
%
Net (charge-offs) recoveries to average outstanding loans (1)
(0.45
%)
(0.17
%)
(0.10
%)
(0.25
%)
(0.24
%)
Non-performing loans as a percentage of total gross loans
1.18
%
0.78
%
0.89
%
0.87
%
0.89
%
Non-performing loans as a percentage of total assets
0.90
%
0.57
%
0.65
%
0.62
%
0.62
%
Total non-performing assets as a percentage of total assets
0.90
%
0.57
%
0.65
%
0.62
%
0.62
%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)
1.06
%
0.73
%
0.82
%
0.79
%
0.81
%
(1)
Annualized where appropriate.
(2)
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.
(3)
Net interest margin represents net interest income divided by average total interest-earning assets.
(4)
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
(5)
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.
Summary of Results of Operations
Net income for the three months ended December 31, 2024 was $2.9 million compared to net income of $2.4 million for the three months ended September 30, 2024 and net income of $0.5 million for the three months ended December 31, 2023.
The $0.5 million increase of net income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was attributed mainly to increases of $1.7 million in net interest income and $1.0 million in non-interest income, partially offset by increases of $1.0 million in non-interest expense, $0.9 million in provision for income taxes and $0.3 million in provision for credit losses.
The $2.4 million increase of net income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely due to increases of $3.5 million in net interest income and $0.9 million in non-interest income and a decrease of $0.5 million in non-interest expense, partially offset by increases of $1.5 million in provision for credit losses and $1.1 million in provision for income taxes.
Net income for the year ended December 31, 2024 was $11.0 million compared to a net income of $3.4 million for the year ended December 31, 2023. The $7.6 million increase in net income was attributable to an increase of $11.2 million in net interest income and
a decrease of $1.9 million in non-interest expense, partially offset by a decrease of $2.9 million in non-interest income and increases of $2.2 million in provision for income taxes and $0.4 million in provision for credit losses.
Net Interest Income and Net Margin
Net interest income for the three months ended December 31, 2024, increased $1.7 million, or 8.97%, to $20.7 million compared to $19.0 million for the three months ended September 30, 2024 and increased $3.5 million, or 20.54%, compared to $17.2 million for the three months ended December 31, 2023.
Net interest income for the year ended December 31, 2024, increased $11.2 million, or 17.18%, to $76.5 million, compared to $65.3 million for the year ended December 31, 2023. The $11.2 million increase in net interest income was attributable to an increase of $36.8 million in total interest and dividend income, offset by an increase of $25.6 million in total interest expense.
For the year ended December 31, 2024, provision for credit losses amounted to $1.3 million, consisting of a provision for credit losses on loans in the amount of $1.5 million and a benefit on credit losses on held-to-maturity securities in the amount of $0.2 million.
Net interest margin was 2.80% for the three months ended December 31, 2024 compared to 2.65% for the prior quarter, an increase of 15bps and 2.66% for the same period last year, an increase of 14bps.
Net interest margin was 2.70% for the year ended December 31, 2024 compared to 2.66% for the year ended December 31, 2023, an increase of 4bps.
Non-interest Income
Non-interest income for the three months ended December 31, 2024, was $2.1 million, an increase of $0.9 million, or 82.19%, compared to $1.2 million for the three months ended September 30, 2024 and an increase of $0.8 million, or 63.19%, compared to $1.3 million for the three months ended December 31, 2023.
The $0.9 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was largely attributable to increases of $0.5 million in other non-interest income, $0.2 million in late and prepayment charges and $0.1 million in income on sale of SBA loans.
The $0.8 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely attributable to increases of $1.1 million in other non-interest income and $0.1 million in income on sale of SBA loans, partially offset by a decrease of $0.4 million in grant income received in the fourth quarter of 2023.
Non-interest income for the year ended December 31, 2024, was $7.2 million, a decrease of $3.0 million, or 29.44%, compared to $10.2 million for the year ended December 31, 2023. The $3.0 million decrease in non-interest income was largely attributable to $4.2 million related to grants received in 2023 and a decrease of $1.2 million in late and prepayment charges, partially offset by increases of $1.8 million in other non-interest income, $0.5 million in income on sale of mortgage loans and $0.1 million in income on sale of SBA loans.
Non-interest Expense
Non-interest expense for the three months ended December 31, 2024, was $17.3 million, an increase of $0.9 million, or 5.82%, compared to $16.3 million for the three months ended September 30, 2024 and a decrease of $0.6 million, or 3.54%, compared to $17.9 million for the three months ended December 31, 2023.
The $0.9 million increase in non-interest expense from the three months ended September 30, 2024 was mainly attributable to increases of $0.4 million in professional fees, $0.2 million in other operating expense, $0.1 million in marketing and promotional expenses, $0.1 million in office supplies, telephone and postage and $0.1 million in occupancy and equipment.
The $0.6 million decrease in non-interest expense from the three months ended December 31, 2023 was mainly attributable to decreases of $0.6 million in provision for contingencies, $0.6 million in compensation and benefits and $0.3 million in professional fees, partially offset by increases of $0.3 million in other operating expense, $0.2 million in occupancy and equipment, $0.1 million in marketing and promotional expenses and $0.1 million in direct loan expenses.
Non-interest expense for the year ended December 31, 2024, was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023. The $2.0 million decrease in non-interest expense from the year ended December 31, 2023 was mainly attributable to decreases of $3.1 million in provision for contingencies, $0.9 million in professional fees, $0.7 million in data processing expenses, $0.5 million in office supplies, telephone and postage, partially offset by a decrease in microloans recoveries of $1.3 million and increases of $0.9 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.2 million in compensation and benefits.
Balance Sheet Summary
Total assets increased $289.2 million, or 10.51%, to $3.04 billion as of December 31, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $390.7 million in net loans receivable, $9.8 million in Federal Home Loan Bank of New York stock, $0.8 million in mortgage loans held for sale, $0.7 million in premises and equipment and $0.6 million in cash and cash equivalents, partially offset by decreases of $93.8 million in held-to-maturity securities, $14.9 million in available-for-sale securities, $2.3 million in deferred tax assets and $2.2 million in right of use assets.
Total liabilities increased $275.1 million, or 12.18%, to $2.53 billion as of December 31, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $377.2 million in deposits, partially offset by decreases of $88.3 million in borrowings, $8.3 million in accrued interest payable, $3.1 million in other liabilities, $2.0 million in operating lease liabilities and $0.4 million in advance payments by borrowers for taxes.
Total stockholders’ equity increased $14.1 million, or 2.87%, to $505.5 million as of December 31, 2024, from $491.4 million as of December 31, 2023. The $14.1 million increase in stockholders’ equity was largely attributable to $11.0 million in net income, $2.1 million impact to additional paid in capital as a result of share-based compensation and $1.4 million from release of ESOP shares and $0.3 million in other comprehensive income, offset by $0.6 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 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
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
ASSETS
Cash and due from banks:
Cash
$
35,478
$
32,061
$
23,128
$
29,972
$
28,930
Interest-bearing deposits
104,361
123,751
80,038
104,752
110,260
Total cash and cash equivalents
139,839
155,812
103,166
134,724
139,190
Available-for-sale securities, at fair value
104,970
111,005
113,125
116,044
119,902
Held-to-maturity securities, at amortized cost
367,938
403,736
442,113
452,955
461,748
Placement with banks
249
249
249
249
249
Mortgage loans held for sale, at fair value
10,736
9,566
37,764
7,860
9,980
Loans receivable, net
2,286,599
2,180,331
2,022,173
1,981,428
1,895,886
Accrued interest receivable
17,771
16,890
17,441
18,063
18,010
Premises and equipment, net
16,794
16,843
16,976
17,396
16,053
Right of use assets
29,093
29,785
30,349
31,021
31,272
Federal Home Loan Bank of New York stock (FHLBNY), at cost
29,182
28,515
23,972
23,892
19,377
Deferred tax assets
12,074
11,845
13,172
13,919
14,332
Other assets
24,693
51,392
21,507
21,151
24,723
Total assets
$
3,039,938
$
3,015,969
$
2,842,007
$
2,818,702
$
2,750,722
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
$
1,884,864
$
1,870,323
$
1,606,097
$
1,585,784
$
1,507,620
Operating lease liabilities
30,696
31,343
31,861
32,486
32,684
Accrued interest payable
3,712
2,918
6,820
4,218
11,965
Advance payments by borrowers for taxes and insurance
10,349
13,733
10,838
13,245
10,778
Borrowings
596,100
580,421
680,421
680,421
684,421
Other liabilities
8,717
12,642
8,313
8,866
11,859
Total liabilities
2,534,438
2,511,380
2,344,350
2,325,020
2,259,327
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
(7,707
)
(9,445
)
(9,519
)
(9,702
)
(9,747
)
Additional paid-in-capital
207,319
208,478
207,934
207,584
207,106
Retained earnings
107,754
105,103
102,951
99,834
97,420
Accumulated other comprehensive loss
(15,297
)
(12,686
)
(16,557
)
(16,590
)
(15,649
)
Unearned compensation ─ ESOP
(11,818
)
(12,110
)
(12,401
)
(12,693
)
(12,984
)
Total stockholders' equity
505,500
504,589
497,657
493,682
491,395
Total liabilities and stockholders' equity
$
3,039,938
$
3,015,969
$
2,842,007
$
2,818,702
$
2,750,722
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,
2024
2024
2024
2024
2023
Interest and dividend income:
Interest on loans receivable
$
35,622
$
32,945
$
31,281
$
30,664
$
27,814
Interest on deposits due from banks
1,783
2,430
1,542
2,911
990
Interest and dividend on securities and FHLBNY stock
5,481
5,918
5,969
6,091
6,146
Total interest and dividend income
42,886
41,293
38,792
39,666
34,950
Interest expense:
Interest on certificates of deposit
8,104
6,926
6,358
6,380
5,103
Interest on other deposits
8,476
8,519
7,389
6,540
5,706
Interest on borrowings
5,576
6,825
7,141
7,923
6,944
Total interest expense
22,156
22,270
20,888
20,843
17,753
Net interest income
20,730
19,023
17,904
18,823
17,197
Provision (benefit) for credit losses
1,099
789
(374
)
(180
)
(375
)
Net interest income after provision (benefit) for credit losses
19,631
18,234
18,278
19,003
17,572
Non-interest income:
Service charges and fees
500
508
492
473
498
Brokerage commissions
44
—
9
8
13
Late and prepayment charges
318
77
426
359
365
Income on sale of mortgage loans
254
218
274
302
244
Income on sale of SBA loans
148
—
—
—
—
Grant income
—
—
—
—
438
Other
833
348
1,057
565
(273
)
Total non-interest income
2,097
1,151
2,258
1,707
1,285
Non-interest expense:
Compensation and benefits
7,668
7,674
7,724
7,844
8,262
Occupancy and equipment
3,863
3,786
3,564
3,667
3,686
Data processing expenses
1,143
1,099
1,013
1,127
1,101
Direct loan expenses
617
573
633
732
497
(Benefit) provision for contingencies
(202
)
(252
)
(493
)
164
418
Insurance and surety bond premiums
293
292
263
253
250
Office supplies, telephone and postage
294
222
233
249
294
Professional fees
1,703
1,351
1,369
1,723
2,040
Microloans recoveries
(29
)
(54
)
(65
)
(53
)
(152
)
Marketing and promotional expenses
289
180
145
100
146
Federal deposit insurance and regulatory assessment (1)
418
392
428
389
395
Other operating expenses (1)
1,206
1,051
1,333
755
960
Total non-interest expense
17,263
16,314
16,147
16,950
17,897
Income before income taxes
4,465
3,071
4,389
3,760
960
Provision for income taxes
1,532
638
1,197
1,346
442
Net income
$
2,933
$
2,433
$
3,192
$
2,414
$
518
Dividends on preferred shares
282
281
75
—
—
Net income available to common stockholders
$
2,651
$
2,152
$
3,117
$
2,414
$
518
Earnings per common share:
Basic
$
0.12
$
0.10
$
0.14
$
0.11
$
0.02
Diluted
$
0.12
$
0.10
$
0.14
$
0.11
$
0.02
Weighted average common shares outstanding:
Basic
22,528,160
22,446,009
22,409,803
22,353,492
22,224,945
Diluted
22,807,644
22,612,028
22,419,309
22,366,728
22,406,102
(1) For the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, $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 Years Ended December 31,
2024
2023
Variance $
Variance %
Interest and dividend income:
Interest on loans receivable
$
130,512
$
95,805
$
34,707
36.23
%
Interest on deposits due from banks
8,666
4,973
3,693
74.26
%
Interest and dividend on securities and FHLBNY stock
23,459
25,089
(1,630
)
(6.50
%)
Total interest and dividend income
162,637
125,867
36,770
29.21
%
Interest expense:
Interest on certificates of deposit
27,768
16,571
11,197
67.57
%
Interest on other deposits
30,924
18,570
12,354
66.53
%
Interest on borrowings
27,465
25,460
2,005
7.88
%
Total interest expense
86,157
60,601
25,556
42.17
%
Net interest income
76,480
65,266
11,214
17.18
%
Provision for credit losses
1,334
973
361
37.10
%
Net interest income after provision for credit losses
75,146
64,293
10,853
16.88
%
Non-interest income:
Service charges and fees
1,973
1,986
(13
)
(0.65
%)
Brokerage commissions
61
80
(19
)
(23.75
%)
Late and prepayment charges
1,180
2,365
(1,185
)
(50.11
%)
Income on sale of mortgage loans
1,048
598
450
75.25
%
Income on sale of SBA loans
148
—
148
100.00
%
Grant income
—
4,156
(4,156
)
(100.00
%)
Other
2,803
1,038
1,765
170.04
%
Total non-interest income
7,213
10,223
(3,010
)
(29.44
%)
Non-interest expense:
Compensation and benefits
30,910
30,699
211
0.69
%
Occupancy and equipment
14,880
14,568
312
2.14
%
Data processing expenses
4,382
5,083
(701
)
(13.79
%)
Direct loan expenses
2,555
1,623
932
57.42
%
(Benefit) provision for contingencies
(783
)
2,311
(3,094
)
(133.88
%)
Insurance and surety bond premiums
1,101
1,018
83
8.15
%
Office supplies, telephone and postage
998
1,483
(485
)
(32.70
%)
Professional fees
6,146
7,092
(946
)
(13.34
%)
Microloans recoveries
(201
)
(1,481
)
1,280
(86.43
%)
Marketing and promotional expenses
714
825
(111
)
(13.45
%)
Federal deposit insurance and regulatory assessments (1)
1,627
1,472
155
10.53
%
Other operating expenses (1)
4,345
3,970
375
9.45
%
Total non-interest expense
66,674
68,663
(1,989
)
(2.90
%)
Income before income taxes
15,685
5,853
9,832
167.98
%
Provision for income taxes
4,713
2,501
2,212
88.44
%
Net income
$
10,972
$
3,352
$
7,620
227.33
%
Dividends on preferred shares
638
—
638
100.00
%
Net income available to common stockholders
$
10,334
$
3,352
$
6,982
208.29
%
Earnings per common share:
Basic
$
0.46
$
0.15
$
0.31
206.67
%
Diluted
$
0.46
$
0.15
$
0.31
206.67
%
Weighted average common shares outstanding:
Basic
22,434,654
22,745,317
(310,663
)
(1.37
%)
Diluted
22,551,715
22,822,313
(270,598
)
(1.19
%)
(1) For the year ended December 31, 2023, $1.2 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.4 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.
Ponce Financial Group, Inc. and Subsidiaries
Key Metrics
At or for the Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
Performance Ratios:
Return on average assets (1)
0.38
%
0.33
%
0.45
%
0.33
%
0.08
%
Return on average equity (1)
2.30
%
1.93
%
2.59
%
1.97
%
0.42
%
Net interest rate spread (1) (2)
1.98
%
1.77
%
1.72
%
1.82
%
1.74
%
Net interest margin (1) (3)
2.80
%
2.65
%
2.62
%
2.71
%
2.66
%
Non-interest expense to average assets (1)
2.25
%
2.19
%
2.28
%
2.35
%
2.66
%
Efficiency ratio (4)
75.63
%
80.87
%
80.09
%
82.56
%
96.83
%
Average interest-earning assets to average interest- bearing liabilities
127.60
%
128.35
%
129.73
%
129.69
%
133.50
%
Average equity to average assets
16.59
%
16.97
%
17.41
%
17.00
%
18.25
%
Capital Ratios:
Total capital to risk-weighted assets (Bank only)
21.47
%
21.61
%
22.47
%
22.79
%
23.30
%
Tier 1 capital to risk-weighted assets (Bank only)
20.40
%
20.45
%
21.24
%
21.54
%
22.05
%
Common equity Tier 1 capital to risk-weighted assets (Bank only)
20.40
%
20.45
%
21.24
%
21.54
%
22.05
%
Tier 1 capital to average assets (Bank only)
15.81
%
16.19
%
16.70
%
16.26
%
17.49
%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans
0.97
%
1.09
%
1.18
%
1.23
%
1.36
%
Allowance for credit losses on loans as a percentage of nonperforming loans
82.29
%
139.52
%
130.28
%
140.90
%
152.99
%
Net (charge-offs) recoveries to average outstanding loans (1)
(0.45
%)
(0.17
%)
(0.10
%)
(0.25
%)
(0.24
%)
Non-performing loans as a percentage of total gross loans
1.18
%
0.78
%
0.89
%
0.87
%
0.89
%
Non-performing loans as a percentage of total assets
0.90
%
0.57
%
0.65
%
0.62
%
0.62
%
Total non-performing assets as a percentage of total assets
0.90
%
0.57
%
0.65
%
0.62
%
0.62
%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)
1.06
%
0.73
%
0.82
%
0.79
%
0.81
%
Other:
Number of offices
19
19
18
18
18
Number of full-time equivalent employees
218
228
227
233
237
(1)
Annualized where appropriate.
(2)
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.
(3)
Net interest margin represents net interest income divided by average total interest-earning assets.
(4)
Efficiency ratio represents noninterest expense divided by the sum of net interest income and non-interest income.
(5)
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.
Ponce Financial Group, Inc. and Subsidiaries
Securities Portfolio
December 31, 2024
December 31, 2023
Gross
Gross
Gross
Gross
Amortized
Unrealized
Unrealized
Amortized
Unrealized
Unrealized
Cost
Gains
Losses
Fair Value
Cost
Gains
Losses
Fair Value
(in thousands)
(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds
$
2,994
$
—
$
(121
)
$
2,873
$
2,990
$
—
$
(206
)
$
2,784
Corporate Bonds
21,762
10
(1,368
)
20,404
25,790
—
(2,122
)
23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)
34,526
—
(5,991
)
28,535
39,375
—
(6,227
)
33,148
FHLMC Certificates
9,028
—
(1,366
)
7,662
10,163
—
(1,482
)
8,681
FNMA Certificates
56,010
—
(10,602
)
45,408
61,359
—
(9,842
)
51,517
GNMA Certificates
88
—
—
88
104
—
—
104
Total available-for-sale securities
$
124,408
$
10
$
(19,448
)
$
104,970
$
139,781
$
—
$
(19,879
)
$
119,902
Held-to-Maturity Securities:
U.S. Agency Bonds
$
25,000
$
—
$
(40
)
$
24,960
$
25,000
$
—
$
(181
)
$
24,819
Corporate Bonds
32,500
12
(535
)
31,977
82,500
—
(2,691
)
79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)
186,634
—
(7,052
)
179,582
212,093
104
(5,170
)
207,027
FHLMC Certificates
3,229
—
(223
)
3,006
3,897
—
(244
)
3,653
FNMA Certificates
105,417
—
(5,114
)
100,303
118,944
—
(4,088
)
114,856
SBA Certificates
15,374
92
—
15,466
19,712
166
—
19,878
Allowance for Credit Losses
(216
)
—
—
—
(398
)
—
—
—
Total held-to-maturity securities
$
367,938
$
104
$
(12,964
)
$
355,294
$
461,748
$
270
$
(12,374
)
$
450,042
(1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.
The following table presents the activity in the allowance for credit losses for held-to-maturity securities.
For the Years Ended December 31,
2024
2023
Allowance for credit losses on securities at beginning of the period
$
398
$
—
CECL adoption
—
662
Benefit for credit losses
(182
)
(264
)
Allowance for credit losses on securities at end of the period
$
216
$
398
Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio
As of
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned
$
330,053
14.30
%
$
332,380
15.09
%
$
337,292
16.49
%
$
339,331
16.92
%
$
343,689
17.89
%
Owner-Occupied
142,363
6.17
%
145,065
6.59
%
147,485
7.21
%
150,842
7.52
%
152,311
7.93
%
Multifamily residential
670,159
29.04
%
678,029
30.78
%
545,323
26.66
%
545,825
27.22
%
550,559
28.65
%
Nonresidential properties
389,898
16.89
%
383,277
17.40
%
337,583
16.51
%
327,350
16.32
%
342,343
17.81
%
Construction and land
733,660
31.79
%
631,461
28.67
%
641,879
31.39
%
608,665
30.35
%
503,925
26.22
%
Total mortgage loans
2,266,133
98.19
%
2,170,212
98.53
%
2,009,562
98.26
%
1,972,013
98.33
%
1,892,827
98.50
%
Non-mortgage loans:
Business loans
40,849
1.77
%
28,499
1.29
%
30,222
1.48
%
26,664
1.33
%
19,779
1.03
%
Consumer loans (1)
1,038
0.04
%
4,021
0.18
%
5,305
0.26
%
6,741
0.34
%
8,966
0.47
%
Total non-mortgage loans
41,887
1.81
%
32,520
1.47
%
35,527
1.74
%
33,405
1.67
%
28,745
1.50
%
Total loans, gross
2,308,020
100.00
%
2,202,732
100.00
%
2,045,089
100.00
%
2,005,418
100.00
%
1,921,572
100.00
%
Net deferred loan origination costs
1,081
1,565
1,145
674
468
Allowance for credit losses on loans
(22,502
)
(23,966
)
(24,061
)
(24,664
)
(26,154
)
Loans, net
$
2,286,599
$
2,180,331
$
2,022,173
$
1,981,428
$
1,895,886
(1) As of September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, consumer loans include $3.0 million, $4.3 million, $5.7 million and $8.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.
Ponce Financial Group, Inc. and Subsidiaries
Microloans Exposure (previously originated by the Bank under its arrangement with Grain)
Total Microloans Exposure as of December 31, 2024
(in thousands)
Microloans Receivable from Grain
Microloans originated - put back (inception-to-December 31, 2024)
$
23,903
Write-downs, net of recoveries (inception-to-date as of December 31, 2024)
(15,258
)
Cash receipts (inception-to-December 31, 2024)
(6,819
)
Grant/reserve
(1,826
)
Net receivable as of December 31, 2024
$
—
Microloans Receivables from Borrowers
Microloans receivable as of December 31, 2024
$
—
Allowance for credit losses on loans as of December 31, 2024
—
Microloans, net of allowance for credit losses on loans as of December 31, 2024
$
—
Investments
Investment in Grain
$
1,000
Investment write-off in Q3 2022
(1,000
)
Net investment as of December 31, 2024
—
Total exposure related to microloans as of December 31, 2024 (1)
$
—
(1) As of December 31, 2024, the remaining microloans were charged-off.
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,
2024
2024
2024
2024
2023
(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period
$
23,966
$
24,061
$
24,664
$
26,154
$
27,414
Provision (benefit) for credit losses on loans
1,090
801
(120
)
(255
)
(126
)
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned
—
—
—
—
—
Owner occupied
—
—
—
—
—
Multifamily residences
—
—
—
—
—
Nonresidential properties
—
(7
)
—
—
—
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
(232
)
(450
)
—
(52
)
(63
)
Consumer
(2,465
)
(634
)
(747
)
(1,302
)
(1,135
)
Total charge-offs
(2,697
)
(1,091
)
(747
)
(1,354
)
(1,198
)
Recoveries:
Non-mortgage loans:
Business
—
1
7
1
—
Consumer
143
194
257
118
64
Total recoveries
143
195
264
119
64
Net (charge-offs) recoveries
(2,554
)
(896
)
(483
)
(1,235
)
(1,134
)
Allowance for credit losses on loans at end of the period
$
22,502
$
23,966
$
24,061
$
24,664
$
26,154
Ponce Financial Group, Inc. and Subsidiaries
Deposits
As of
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Demand (1)
$
169,178
8.98
%
$
182,737
9.78
%
$
178,125
11.09
%
$
191,541
12.07
%
$
185,151
12.28
%
Interest-bearing deposits:
NOW/IOLA accounts (1)
62,616
3.32
%
71,445
3.82
%
81,178
5.05
%
73,202
4.62
%
77,909
5.17
%
Money market accounts
636,219
33.75
%
660,168
35.30
%
502,255
31.27
%
482,344
30.42
%
432,735
28.70
%
Reciprocal deposits
130,677
6.93
%
94,145
5.03
%
109,945
6.85
%
97,718
6.16
%
96,860
6.42
%
Savings accounts
105,870
5.62
%
108,941
5.82
%
109,694
6.83
%
112,713
7.11
%
114,139
7.57
%
Total NOW, money market, reciprocal and savings accounts
935,382
49.62
%
934,699
49.97
%
803,072
50.00
%
765,977
48.31
%
721,643
47.86
%
Certificates of deposit of $250K or more (3)
204,293
10.84
%
210,262
11.25
%
189,683
11.82
%
183,478
11.57
%
167,530
11.12
%
Brokered certificates of deposit (2)
94,531
5.02
%
94,531
5.05
%
94,614
5.89
%
94,689
5.97
%
98,729
6.55
%
Listing service deposits (2)
7,376
0.39
%
7,376
0.39
%
9,361
0.58
%
12,688
0.80
%
14,433
0.96
%
All other certificates of deposit less than $250K (3)
474,104
25.15
%
440,718
23.56
%
331,242
20.62
%
337,411
21.28
%
320,134
21.23
%
Total certificates of deposit
780,304
41.40
%
752,887
40.25
%
624,900
38.91
%
628,266
39.62
%
600,826
39.86
%
Total interest-bearing deposits
1,715,686
91.02
%
1,687,586
90.22
%
1,427,972
88.91
%
1,394,243
87.93
%
1,322,469
87.72
%
Total deposits
$
1,884,864
100.00
%
$
1,870,323
100.00
%
$
1,606,097
100.00
%
$
1,585,784
100.00
%
$
1,507,620
100.00
%
(1)
As of December 31, 2023, $58.2 million was reclassified from demand to NOW/IOLA accounts.
(2)
As of December 31, 2023, there were $0.3 million in individual listing service deposits amounting to $250,000 or more. As of December 31, 2024, there were no individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
(3)
As of September 30, 2024, June 30,2024, March 31, 2024 and December 31, 2023, $36.2 million, $33.5 million, $37.2 million and $35.4 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.
Ponce Financial Group, Inc. and Subsidiaries
Borrowings
December 31,
December 31,
2024
2023
Scheduled
Maturity
Redeemable
at Call Date
Weighted
Average
Rate
Scheduled
Maturity
Redeemable
at Call Date
Weighted
Average
Rate
(Dollars in thousands)
Overnight line of credit
advance
$
25,000
$
25,000
4.69
%
$
—
$
—
—
%
Term advances ending:
2024
—
—
—
363,321
363,321
4.55
2025
100,000
100,000
4.48
50,000
50,000
4.41
2026
200,000
200,000
4.25
—
—
—
2027
212,000
212,000
3.44
212,000
212,000
3.44
2028
9,100
9,100
3.84
9,100
9,100
3.84
2029
50,000
50,000
3.35
50,000
50,000
3.35
$
596,100
$
596,100
3.94
%
$
684,421
$
684,421
4.10
%
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
As of Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned
$
436
$
436
$
436
$
399
$
793
Owner occupied
1,423
1,423
1,423
1,426
1,682
Multifamily residential
10,271
4,685
5,754
4,098
2,979
Nonresidential properties
—
824
828
441
—
Construction and land
14,158
8,907
8,907
10,277
10,759
Non-mortgage loans:
Business
343
180
396
146
165
Consumer
—
—
—
—
—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)
$
26,631
$
16,455
$
17,744
$
16,787
$
16,378
Non-accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned
$
279
$
278
$
277
$
270
$
270
Owner occupied
435
444
448
447
447
Multifamily residential
—
—
—
—
—
Nonresidential properties
—
—
—
—
—
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
—
Total non-accruing modifications to borrowers experiencing financial difficulty (1)
714
722
725
717
717
Total non-accrual loans (2)
$
27,345
$
17,177
$
18,469
$
17,504
$
17,095
Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned
$
1,807
$
1,821
$
1,830
$
1,850
$
2,112
Owner occupied
2,062
2,116
2,171
2,288
2,313
Multifamily residential
—
—
—
—
—
Nonresidential properties
652
672
707
748
757
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
215
222
—
—
—
Consumer
—
—
—
—
—
Total accruing modifications to borrowers experiencing financial difficulty (1)
$
4,736
$
4,831
$
4,708
$
4,886
$
5,182
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)
$
32,081
$
22,008
$
23,177
$
22,390
$
22,277
Total non-performing loans to total gross loans
1.18
%
0.78
%
0.89
%
0.87
%
0.89
%
Total non-performing assets to total assets
0.90
%
0.57
%
0.65
%
0.62
%
0.62
%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1)
1.06
%
0.73
%
0.82
%
0.79
%
0.81
%
(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,
2024
2023
Average
Average
Outstanding
Average
Outstanding
Average
Balance
Interest
Yield/Rate (1)
Balance
Interest
Yield/Rate (1)
(Dollars in thousands)
Interest-earning assets:
Loans (2)
$
2,261,426
$
35,622
6.27
%
$
1,884,301
$
27,814
5.86
%
Securities (3)
507,510
4,860
3.81
%
582,563
5,715
3.89
%
Other (4)
179,701
2,404
5.32
%
96,070
1,421
5.87
%
Total interest-earning assets
2,948,637
42,886
5.79
%
2,562,934
34,950
5.41
%
Non-interest-earning assets
108,558
107,305
Total assets
$
3,057,195
$
2,670,239
Interest-bearing liabilities:
NOW/IOLA (5) (6)
$
68,776
$
119
0.69
%
$
75,926
$
181
0.95
%
Money market (6)
761,130
8,329
4.35
%
474,306
5,495
4.60
%
Savings
109,217
27
0.10
%
116,600
28
0.10
%
Certificates of deposit
783,335
8,104
4.12
%
559,713
5,103
3.62
%
Total deposits
1,722,458
16,579
3.83
%
1,226,545
10,807
3.50
%
Advance payments by borrowers
15,147
1
0.03
%
15,033
2
0.05
%
Borrowings
573,316
5,576
3.87
%
678,235
6,944
4.06
%
Total interest-bearing liabilities
2,310,921
22,156
3.81
%
1,919,813
17,753
3.67
%
Non-interest-bearing liabilities:
Non-interest-bearing demand (5)
191,355
—
211,434
—
Other non-interest-bearing liabilities
47,875
—
51,764
—
Total non-interest-bearing liabilities
239,230
—
263,198
—
Total liabilities
2,550,151
22,156
2,183,011
17,753
Total equity
507,044
487,228
Total liabilities and total equity
$
3,057,195
3.81
%
$
2,670,239
3.67
%
Net interest income
$
20,730
$
17,197
Net interest rate spread (7)
1.98
%
1.74
%
Net interest-earning assets (8)
$
637,716
$
643,121
Net interest margin (9)
2.80
%
2.66
%
Average interest-earning assets to interest-bearing liabilities
127.60
%
133.50
%
(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)
Includes reclassification of $55.7 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
(6)
Includes $0.2 million of interest expense reclassified from money market to NOW/IOLA for the three months ended December 31, 2023.
(7)
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.
(8)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(9)
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,
2024
2023
Average
Average
Outstanding
Average
Outstanding
Average
Balance
Interest
Yield/Rate
Balance
Interest
Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans (1)
$
2,094,820
$
130,512
6.23
%
$
1,730,275
$
95,805
5.54
%
Securities (2)
548,641
21,289
3.88
%
606,815
23,342
3.85
%
Other (3)
192,403
10,836
5.63
%
119,923
6,720
5.60
%
Total interest-earning assets
2,835,864
162,637
5.74
%
2,457,013
125,867
5.12
%
Non-interest-earning assets
107,017
115,760
Total assets
$
2,942,881
$
2,572,773
Interest-bearing liabilities:
NOW/IOLA (4) (5)
$
74,796
$
662
0.89
%
$
70,993
$
1,314
1.85
%
Money market (5)
654,521
30,148
4.61
%
424,160
17,132
4.04
%
Savings
111,028
107
0.10
%
121,550
116
0.10
%
Certificates of deposit
676,306
27,768
4.11
%
528,999
16,571
3.13
%
Total deposits
1,516,651
58,685
3.87
%
1,145,702
35,133
3.07
%
Advance payments by borrowers
14,034
7
0.05
%
14,869
8
0.05
%
Borrowings
670,982
27,465
4.09
%
633,116
25,460
4.02
%
Total interest-bearing liabilities
2,201,667
86,157
3.91
%
1,793,687
60,601
3.38
%
Non-interest-bearing liabilities:
Non-interest-bearing demand (4)
191,155
—
241,510
—
Other non-interest-bearing liabilities
50,259
—
45,858
—
Total non-interest-bearing liabilities
241,414
—
287,368
—
Total liabilities
2,443,081
86,157
2,081,055
60,601
Total equity
499,800
491,718
Total liabilities and total equity
$
2,942,881
3.91
%
$
2,572,773
3.38
%
Net interest income
$
76,480
$
65,266
Net interest rate spread (6)
1.83
%
1.74
%
Net interest-earning assets (7)
$
634,197
$
663,326
Net interest margin (8)
2.70
%
2.66
%
Average interest-earning assets to
interest-bearing liabilities
128.81
%
136.98
%
(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)
Includes reclassification of $48.8 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
(5)
Includes $1.3 million of interest expense reclassified from money market to NOW/IOLA for the year ended December 31, 2023.
(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
Other Data
As of
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
Other Data
Common shares issued
24,886,711
24,886,711
24,886,711
24,886,711
24,886,711
Less treasury shares
925,497
1,067,248
1,074,979
1,096,214
1,101,191
Common shares outstanding at end of period
23,961,214
23,819,463
23,811,732
23,790,497
23,785,520
Book value per common share
$
11.71
$
11.74
$
11.45
$
11.29
$
11.20
Tangible book value per common share
$
11.71
$
11.74
$
11.45
$
11.29
$
11.20
Contact:
Sergio Vaccaro
Sergio.vaccaro@poncebank.net
718-931-9000
Source: Ponce Financial Group, Inc.