(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
Source: Ponce Financial Group, Inc.