YORK, July 30, 2024 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the second quarter of 2024.
Second Quarter 2024 Highlights (Compared to Prior Periods):
Net income available to common stockholders was $3.1 million, or $0.14 per diluted share for the three months ended June 30, 2024, as compared to net income available to common stockholders of $2.4 million, or $0.11 per diluted share for the three months ended March 31, 2024 and net loss to common stockholders of ($0.1) million, or $0.00 per diluted share for the three months ended June 30, 2023. Net income for the three months ended June 30, 2024, which excludes $0.1 million in dividends on preferred shares, was $3.2 million. The Company began paying dividends on its preferred stock during the quarter ended June 30, 2024, as required by the terms thereof.
Included in the $3.1 million of net income available to common stockholders for the second quarter of 2024 results is $38.8 million in interest and dividend income, $2.3 million in non-interest income and $0.4 million in benefit for credit losses, offset by $20.9 million in interest expense, $16.1 million in non-interest expense and $0.1 million in payments and accrued dividends on preferred shares.
Net interest income of $17.9 million for the second quarter of 2024 decreased $0.9 million, or 4.88%, from the prior quarter and increased $1.6 million, or 9.96%, from the same quarter last year. As discussed in our prior earnings release, the first quarter of 2024 included a $1.0 million recovery of interest from a previously non-performing loan, which increased net interest income in that period as compared to the current period.
Net interest margin was 2.62% for the second quarter of 2024, versus 2.71% for the prior quarter and versus 2.65% for the same quarter last year. A significant driver of the reduction in net interest margin is the aforementioned recovery.
Six Months 2024 Highlights (Compared to 2023):
Net income available to common stockholders was $5.5 million, or $0.25 per diluted share for the six months ended June 30, 2024, as compared to net income available to common stockholders of $0.2 million, or $0.01 per diluted share for the six months ended June 30, 2023. Net income for the six months ended June 30, 2024, which excludes $0.1 million in dividends on preferred shares, was $5.6 million.
Net interest income for the six months ended June 30, 2024 was $36.7 million, an increase of $5.2 million, or 16.49%, compared to $31.5 million for the six months ended June 30, 2023.
Non-interest income for the six months ended June 30, 2024 was $4.0 million, an increase of $0.7 million, or 19.75%, from $3.3 million for the six months ended June 30, 2023.
Non-interest expense for the six months ended June 30, 2024 was $33.1 million, a decrease of $0.4 million, or 1.06%, compared to $33.5 million for the six months ended June 30, 2023.
Cash and equivalents were $103.2 million as of June 30, 2024, a decrease of $36.0 million, or 25.88%, from December 31, 2023.
Securities totaled $555.2 million as of June 30, 2024, a decrease of $26.4 million, or 4.54%, from December 31, 2023 primarily due to regular principal payments.
Net loans receivable were $2.02 billion as of June 30, 2024, an increase of $126.3 million, or 6.66%, from December 31, 2023.
Deposits were $1.61 billion as of June 30, 2024, an increase of $98.5 million, or 6.53%, from December 31, 2023.
President and Chief Executive Officer’s Comments
Carlos P. Naudon, Ponce Financial Group’s President and CEO, stated “Despite the challenging operating environment, we continue to make progress both in terms of improving our economic performance as well as serving our communities. We have exceeded our qualified lending targets under ECIP and qualified for a 0.50% preferred dividend rate. Book value per share continues to grow and is now $11.45 (up $0.51 vs last year) and total equity per common share stands at $20.90. We’re also making progress on the expense side and have reduced headcount by 7% year over year. We continue to show strong levels of capital and liquidity. On the capital front, our total capital ratio at Ponce Bank stands at 22.47%, well in excess of regulatory requirements. In terms of liquidity, our liquid assets plus borrowing capacity at the Federal Home Loan Bank of New York ("FHLBNY") stands at $679.9 million, approximately 1.7 times of our uninsured deposits of $401.7 million. 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 continue to grow both loans and deposits while maintaining credit quality. While we see resiliency in our client base, our prudent approach might result in lower growth in the coming quarters as we prioritize sound underwriting practices and balance sheet management over loan growth.”
Selected performance metrics are as follows (refer to “Key Metrics” for additional information):
At or for the Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
Performance Ratios (Annualized):
2024
2024
2023
2023
2023
Return on average assets (1)
0.45
%
0.33
%
0.08
%
0.39
%
(0.01
%)
Return on average equity (1)
2.59
%
1.97
%
0.42
%
2.11
%
(0.07
%)
Net interest rate spread (1) (2)
1.72
%
1.82
%
1.74
%
1.68
%
1.75
%
Net interest margin (1) (3)
2.62
%
2.71
%
2.66
%
2.58
%
2.65
%
Non-interest expense to average assets (1)
2.28
%
2.35
%
2.66
%
2.58
%
2.65
%
Efficiency ratio (4)
80.09
%
82.56
%
96.83
%
78.11
%
96.15
%
Average interest-earning assets to average interest- bearing liabilities
129.73
%
129.69
%
133.50
%
134.49
%
137.67
%
Average equity to average assets
17.41
%
17.00
%
18.25
%
18.32
%
19.21
%
At or for the Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
Capital Ratios (Annualized):
2024
2024
2023
2023
2023
Total capital to risk-weighted assets (Bank only)
22.47
%
22.79
%
23.30
%
25.10
%
26.30
%
Tier 1 capital to risk-weighted assets (Bank only)
21.24
%
21.54
%
22.05
%
23.85
%
25.05
%
Common equity Tier 1 capital to risk-weighted assets (Bank only)
21.24
%
21.54
%
22.05
%
23.85
%
25.05
%
Tier 1 capital to average assets (Bank only)
16.70
%
16.26
%
17.49
%
17.51
%
17.95
%
At or for the Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
Asset Quality Ratios (Annualized):
2024
2024
2023
2023
2023
Allowance for loan losses as a percentage of total loans
1.18
%
1.23
%
1.36
%
1.51
%
1.64
%
Allowance for loan losses as a percentage of nonperforming loans
130.28
%
140.90
%
152.99
%
169.49
%
167.06
%
Net (charge-offs) recoveries to average outstanding loans (1)
(0.10
%)
(0.25
%)
(0.24
%)
(0.34
%)
(0.41
%)
Non-performing loans as a percentage of total gross loans
0.89
%
0.87
%
0.89
%
0.89
%
0.98
%
Non-performing loans as a percentage of total assets
0.65
%
0.62
%
0.62
%
0.62
%
0.63
%
Total non-performing assets as a percentage of total assets
0.65
%
0.62
%
0.62
%
0.62
%
0.63
%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)
0.82
%
0.79
%
0.81
%
0.82
%
0.83
%
Annualized where appropriate.
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
Net interest margin represents net interest income divided by average total interest-earning assets.
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
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 June 30, 2024 was $3.2 million compared to net income of $2.4 million for the three months ended March 31, 2024 and net loss of $0.1 million for the three months ended June 30, 2023.
The increase of net income for the three months ended June 30, 2024 compared to the three months ended March 31, 2024 was attributed mainly to a decrease in non-interest expense, an increase in non-interest income, a decrease in provision for income taxes and an increase in benefit for credit losses, partially offset by a decrease in net interest income.
The increase of net income for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was largely due to increases in net interest income, an increase to benefit for credit losses, a decrease in non-interest expense and an increase in non-interest income, partially offset by an increase in provision for income taxes.
Net income for the six months ended June 30, 2024 was $5.6 million compared to a net income of $0.2 million for the six months ended June 30, 2023. The increase in net income was attributable to increases in net interest income, benefit for credit losses and non-interest income and a decrease in non-interest expense, partially offset by an increase in provision for income taxes.
Net Interest Income and Net Margin
Net interest income for the three months ended June 30, 2024, decreased $0.9 million, or 4.88%, to $17.9 million compared to $18.8 million for the three months ended March 31, 2024 and increased $1.6 million, or 9.96%, compared to $16.3 million for the three months ended June 30, 2023. As discussed in our prior earnings release, the first quarter of 2024 included a $1.0 million recovery of interest from a previously non-performing loan, which increased net interest income in that period as compared to the current period.
Net interest income for the six months ended June 30, 2024, increased $5.2 million, or 16.49%, to $36.7 million, compared to $31.5 million for the six months ended June 30, 2023.
For the six months ended June 30, 2024, benefit for credit losses amounted to $0.6 million consisting of a benefit for credit losses on loans in the amount of $0.4 million and a release in the provision for credit losses on held-to-maturity securities in the amount of $0.2 million. The $0.4 million benefit for credit losses on loans for the six months ended June 30, 2024 resulted from a benefit of $1.5 million related to micro loans offset by a provision of $1.1 million related to non-micro loans.
Net interest margin was 2.62% for the three months ended June 30, 2024 compared to 2.71% for the prior quarter, a decrease of 9bps and 2.65% for the same period last year, a decrease of 3bps.
Net interest margin was 2.67% for the six months ended June 30, 2024 compared to 2.71% for the six months ended June 30, 2023, a decrease of 4bps.
Non-interest Income
Non-interest income for the three months ended June 30, 2024, was $2.3 million, an increase of $0.6 million, or 32.28%, compared to $1.7 million the three months ended March 31, 2024 and an increase of $0.8 million, or 51.34%, compared to $1.5 million the three months ended June 30, 2023.
The $0.6 million increase in non-interest income for the three months ended June 30, 2024 compared to the three months ended March 31, 2024 was largely attributable to an increase of $0.5 million in other non-interest income related to the mark to market adjustments on a private equity fund and $0.1 million in late and prepayment charges.
The $0.8 million increase in non-interest income for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was largely attributable to increases of $0.5 million in other non-interest income related to the mark to market adjustments on a private equity fund, $0.2 million in income on sale of mortgage loans and $0.1 million in late and prepayment charges.
Non-interest income for the six months ended June 30, 2024, was $4.0 million, an increase of $0.7 million, or 19.75%, compared to $3.3 million for the six months ended June 30, 2023. The increase was largely attributable to increases of $0.6 million in other non-interest income and $0.4 million in income on sale of mortgage loans, partially offset by a decrease of $0.3 million in late and prepayment charges.
Non-interest Expense
Non-interest expense for the three months ended June 30, 2024, was $16.1 million, a decrease of $0.8 million, or 4.74%, compared to $17.0 million for the three months ended March 31, 2024 and a decrease of $0.9 million, or 5.51%, compared to $17.1 million for the three months ended June 30, 2023.
The $0.8 million decrease from the three months ended March 31, 2024 was mainly attributable to decreases of $0.7 million in provision for contingencies, $0.4 million in professional fees, $0.1 million in compensation and benefits, $0.1 million in occupancy and equipment and $0.1 million in data processing, partially offset by an increase of $0.6 million in other operating expense.
The $0.9 million decrease from the three months ended June 30, 2023 was mainly attributable to decreases of $1.0 million in provision for contingencies, $0.5 million in professional fees, $0.3 million in office supplies, telephone and postage, $0.2 million in occupancy and equipment, $0.2 million in data processing expenses and $0.1 million in marketing and promotional expenses, partially offset by increases of $0.4 million in other operating expense, $0.3 million in direct loan expenses and $0.3 million in compensation and benefits and a decrease of $0.3 million in Grain recoveries.
Non-interest expense for the six months ended June 30, 2024, was $33.1 million, a decrease of $0.4 million, or 1.06%, compared to $33.5 million for the six months ended June 30, 2023. The $0.4 million decrease from the six months ended June 30, 2023 was mainly attributable to decreases of $1.8 million in provision for contingencies, $0.4 million in office supplies, telephone and postage, $0.3 million in professional fees, $0.3 million in data processing expenses, $0.2 million in marketing and promotional expenses and $0.1 million in occupancy and equipment, partially offset by a decrease of $1.1 million in Grain recoveries, and increases of $0.7 million in compensation and benefits and $0.6 million in direct loan expenses.
Balance Sheet Summary
Total assets increased $91.3 million, or 3.32%, to $2.84 billion as of June 30, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $126.3 million in net loans receivable, $27.8 million in mortgage loans held for sale and $4.6 million in Federal Home Loan Bank of New York stock, partially offset by decreases of $36.0 million in cash and cash equivalents, $19.6 million in held-to-maturity securities, $6.8 million in available-for-sale securities, $3.2 million in other assets, $1.2 million in deferred tax assets and $0.6 million in accrued interest receivable.
Total liabilities increased $85.0 million, or 3.76%, to $2.34 billion as of June 30, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $98.5 million in deposits, partially offset by decreases of $5.1 million in accrued interest payable, $4.0 million in borrowings, $3.5 million in other liabilities and $0.8 million in operating lease liabilities.
Total stockholders’ equity increased $6.3 million, or 1.27%, to $497.7 million as of June 30, 2024, from $491.4 million as of December 31, 2023. This increase in stockholders’ equity was largely attributable to $5.5 million in net income available to common stockholders, $1.0 million impact to additional paid in capital as a result of share-based compensation and $0.6 million from release of ESOP shares, offset by $0.9 million in other comprehensive loss.
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
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
ASSETS
Cash and due from banks:
Cash
$
23,128
$
29,972
$
28,930
$
26,046
$
31,162
Interest-bearing deposits
80,038
104,752
110,260
90,966
212,627
Total cash and cash equivalents
103,166
134,724
139,190
117,012
243,789
Available-for-sale securities, at fair value
113,125
116,044
119,902
116,753
123,720
Held-to-maturity securities, at amortized cost
442,113
452,955
461,748
471,065
481,952
Placement with banks
249
249
249
996
996
Mortgage loans held for sale, at fair value
37,764
7,860
9,980
14,103
10,070
Loans receivable, net
2,022,173
1,981,428
1,895,886
1,787,607
1,695,047
Accrued interest receivable
17,441
18,063
18,010
16,624
16,054
Premises and equipment, net
16,976
17,396
16,053
16,453
16,856
Right of use assets
30,349
31,021
31,272
32,110
32,435
Federal Home Loan Bank of New York stock (FHLBNY), at cost
23,972
23,892
19,377
18,870
19,195
Deferred tax assets
13,172
13,919
14,332
15,984
15,924
Other assets
21,507
21,151
24,723
16,286
15,919
Total assets
$
2,842,007
$
2,818,702
$
2,750,722
$
2,623,863
$
2,671,957
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
$
1,606,097
$
1,585,784
$
1,507,620
$
1,401,132
$
1,442,013
Operating lease liabilities
31,861
32,486
32,684
33,459
33,716
Accrued interest payable
6,820
4,218
11,965
8,385
4,704
Advance payments by borrowers for taxes and insurance
10,838
13,245
10,778
13,743
12,402
Borrowings
680,421
680,421
684,421
675,100
682,100
Other liabilities
8,313
8,866
11,859
6,986
6,540
Total liabilities
2,344,350
2,325,020
2,259,327
2,138,805
2,181,475
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
(9,519
)
(9,702
)
(9,747
)
(10,975
)
(5,202
)
Additional paid-in-capital
207,934
207,584
207,106
207,626
207,287
Retained earnings
102,951
99,834
97,420
96,902
94,312
Accumulated other comprehensive loss
(16,557
)
(16,590
)
(15,649
)
(20,468
)
(17,597
)
Unearned compensation ─ ESOP
(12,401
)
(12,693
)
(12,984
)
(13,276
)
(13,567
)
Total stockholders' equity
497,657
493,682
491,395
485,058
490,482
Total liabilities and stockholders' equity
$
2,842,007
$
2,818,702
$
2,750,722
$
2,623,863
$
2,671,957
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
Interest and dividend income:
Interest on loans receivable
$
31,281
$
30,664
$
27,814
$
25,276
$
23,015
Interest on deposits due from banks
1,542
2,911
990
1,969
1,817
Interest and dividend on securities and FHLBNY stock
5,969
6,091
6,146
6,261
6,223
Total interest and dividend income
38,792
39,666
34,950
33,506
31,055
Interest expense:
Interest on certificates of deposit
6,358
6,380
5,103
4,362
3,881
Interest on other deposits
7,389
6,540
5,706
5,639
4,413
Interest on borrowings
7,141
7,923
6,944
6,963
6,479
Total interest expense
20,888
20,843
17,753
16,964
14,773
Net interest income
17,904
18,823
17,197
16,542
16,282
(Benefit) provision for credit losses
(374
)
(180
)
(375
)
535
987
Net interest income after (benefit) provision for credit losses
18,278
19,003
17,572
16,007
15,295
Non-interest income:
Service charges and fees
492
473
498
516
481
Brokerage commissions
9
8
13
17
35
Late and prepayment charges
426
359
365
899
372
Income on sale of mortgage loans
274
302
244
173
82
Grant income
—
—
438
3,718
—
Other
1,057
565
(273
)
304
522
Total non-interest income
2,258
1,707
1,285
5,627
1,492
Non-interest expense:
Compensation and benefits
7,724
7,844
8,262
7,566
7,425
Occupancy and equipment
3,564
3,667
3,686
3,588
3,724
Data processing expenses
1,013
1,127
1,101
1,582
1,208
Direct loan expenses
633
732
497
369
345
(Benefit) provision for contingencies
(493
)
164
418
391
517
Insurance and surety bond premiums
263
253
250
255
248
Office supplies, telephone and postage
233
249
294
301
489
Professional fees
1,369
1,723
2,040
1,693
1,904
Grain recoveries
(65
)
(53
)
(152
)
(69
)
(346
)
Marketing and promotional expenses
145
100
146
248
303
Directors fees and regulatory assessment
176
179
173
169
160
Other operating expenses
1,585
965
1,182
1,223
1,112
Total non-interest expense
16,147
16,950
17,897
17,316
17,089
Income (loss) before income taxes
4,389
3,760
960
4,318
(302
)
Provision (benefit) for income taxes
1,197
1,346
442
1,728
(215
)
Net income (loss)
$
3,192
$
2,414
$
518
$
2,590
$
(87
)
Dividends on preferred shares
75
—
—
—
—
Net income (loss) available to common stockholders
$
3,117
$
2,414
$
518
$
2,590
$
(87
)
Earnings per common share:
Basic
$
0.14
$
0.11
$
0.02
$
0.12
$
(0.00
)
Diluted
$
0.14
$
0.11
$
0.02
$
0.12
$
(0.00
)
Weighted average common shares outstanding:
Basic
22,409,803
22,353,492
22,224,945
22,272,076
23,208,168
Diluted
22,419,309
22,366,728
22,406,102
22,349,217
23,208,168
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
For the Six Months Ended June 30,
2024
2023
Variance $
Variance %
Interest and dividend income:
Interest on loans receivable
$
61,945
$
42,715
$
19,230
45.02
%
Interest on deposits due from banks
4,453
2,014
2,439
121.10
%
Interest and dividend on securities and FHLBNY stock
12,060
12,682
(622
)
(4.90
%)
Total interest and dividend income
78,458
57,411
21,047
36.66
%
Interest expense:
Interest on certificates of deposit
12,738
7,106
5,632
79.26
%
Interest on other deposits
13,929
7,225
6,704
92.79
%
Interest on borrowings
15,064
11,553
3,511
30.39
%
Total interest expense
41,731
25,884
15,847
61.22
%
Net interest income
36,727
31,527
5,200
16.49
%
(Benefit) provision for credit losses
(554
)
813
(1,367
)
(168.14
%)
Net interest income after benefit for credit losses
37,281
30,714
6,567
21.38
%
Non-interest income:
Service charges and fees
965
972
(7
)
(0.72
%)
Brokerage commissions
17
50
(33
)
(66.00
%)
Late and prepayment charges
785
1,101
(316
)
(28.70
%)
Income on sale of mortgage loans
576
181
395
218.23
%
Other
1,622
1,007
615
61.07
%
Total non-interest income
3,965
3,311
654
19.75
%
Non-interest expense:
Compensation and benefits
15,568
14,871
697
4.69
%
Occupancy and equipment
7,231
7,294
(63
)
(0.86
%)
Data processing expenses
2,140
2,400
(260
)
(10.83
%)
Direct loan expenses
1,365
757
608
80.32
%
(Benefit) provision for contingencies
(329
)
1,502
(1,831
)
(121.90
%)
Insurance and surety bond premiums
516
513
3
0.58
%
Office supplies, telephone and postage
482
888
(406
)
(45.72
%)
Professional fees
3,092
3,359
(267
)
(7.95
%)
Grain recoveries
(118
)
(1,260
)
1,142
(90.63
%)
Marketing and promotional expenses
245
431
(186
)
(43.16
%)
Directors fees and regulatory assessment
355
315
40
12.70
%
Other operating expenses
2,550
2,380
170
7.14
%
Total non-interest expense
33,097
33,450
(353
)
(1.06
%)
Income before income taxes
8,149
575
7,574
1,317.22
%
Provision for income taxes
2,543
331
2,212
668.28
%
Net income
$
5,606
$
244
$
5,362
2,197.54
%
Dividends on preferred shares
75
—
75
Net income available to common stockholders
$
5,531
$
244
$
5,287
2,166.80
%
Earnings per common share:
Basic
$
0.25
$
0.01
$
0.24
2,254.79
%
Diluted
$
0.25
$
0.01
$
0.24
2,256.11
%
Weighted average common shares outstanding:
Basic
22,381,647
23,250,357
(868,710
)
(3.74
%)
Diluted
22,393,018
23,275,201
(882,183
)
(3.79
%)
Ponce Financial Group, Inc. and Subsidiaries
Key Metrics
At or for the Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
Performance Ratios:
Return on average assets (1)
0.45
%
0.33
%
0.08
%
0.39
%
(0.01
%)
Return on average equity (1)
2.59
%
1.97
%
0.42
%
2.11
%
(0.07
%)
Net interest rate spread (1) (2)
1.72
%
1.82
%
1.74
%
1.68
%
1.75
%
Net interest margin (1) (3)
2.62
%
2.71
%
2.66
%
2.58
%
2.65
%
Non-interest expense to average assets (1)
2.28
%
2.35
%
2.66
%
2.58
%
2.65
%
Efficiency ratio (4)
80.09
%
82.56
%
96.83
%
78.11
%
96.15
%
Average interest-earning assets to average interest- bearing liabilities
129.73
%
129.69
%
133.50
%
134.49
%
137.67
%
Average equity to average assets
17.41
%
17.00
%
18.25
%
18.32
%
19.21
%
Capital Ratios:
Total capital to risk-weighted assets (Bank only)
22.47
%
22.79
%
23.30
%
25.10
%
26.30
%
Tier 1 capital to risk-weighted assets (Bank only)
21.24
%
21.54
%
22.05
%
23.85
%
25.05
%
Common equity Tier 1 capital to risk-weighted assets (Bank only)
21.24
%
21.54
%
22.05
%
23.85
%
25.05
%
Tier 1 capital to average assets (Bank only)
16.70
%
16.26
%
17.49
%
17.51
%
17.95
%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans
1.18
%
1.23
%
1.36
%
1.51
%
1.64
%
Allowance for credit losses on loans as a percentage of nonperforming loans
130.28
%
140.90
%
152.99
%
169.49
%
167.06
%
Net (charge-offs) recoveries to average outstanding loans (1)
(0.10
%)
(0.25
%)
(0.24
%)
(0.34
%)
(0.41
%)
Non-performing loans as a percentage of total gross loans
0.89
%
0.87
%
0.89
%
0.89
%
0.98
%
Non-performing loans as a percentage of total assets
0.65
%
0.62
%
0.62
%
0.62
%
0.63
%
Total non-performing assets as a percentage of total assets
0.65
%
0.62
%
0.62
%
0.62
%
0.63
%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)
0.82
%
0.79
%
0.81
%
0.82
%
0.83
%
Other:
Number of offices
18
18
18
19
19
Number of full-time equivalent employees
227
233
237
243
244
Annualized where appropriate.
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Net interest margin represents net interest income divided by average total interest-earning assets.
Efficiency ratio represents noninterest expense divided by the sum of net interest income and non-interest income.
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
June 30, 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
$
2,992
$
—
$
(196
)
$
2,796
$
2,990
$
—
$
(206
)
$
2,784
Corporate Bonds
25,773
—
(1,859
)
23,914
25,790
—
(2,122
)
23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations(1)
36,886
—
(6,280
)
30,606
39,375
—
(6,227
)
33,148
FHLMC Certificates
9,611
—
(1,523
)
8,088
10,163
—
(1,482
)
8,681
FNMA Certificates
58,797
—
(11,174
)
47,623
61,359
—
(9,842
)
51,517
GNMA Certificates
99
—
(1
)
98
104
—
—
104
Total available-for-sale securities
$
134,158
$
—
$
(21,033
)
$
113,125
$
139,781
$
—
$
(19,879
)
$
119,902
Held-to-Maturity Securities:
U.S. Agency Bonds
$
25,000
$
—
$
(253
)
$
24,747
$
25,000
$
—
$
(181
)
$
24,819
Corporate Bonds
82,500
—
(2,230
)
80,270
82,500
—
(2,691
)
79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations(1)
200,684
—
(8,533
)
192,151
212,093
104
(5,170
)
207,027
FHLMC Certificates
3,664
—
(274
)
3,390
3,897
—
(244
)
3,653
FNMA Certificates
112,925
—
(5,565
)
107,360
118,944
—
(4,088
)
114,856
SBA Certificates
17,558
169
—
17,727
19,712
166
—
19,878
Allowance for Credit Losses
(218
)
—
—
—
(398
)
—
—
—
Total held-to-maturity securities
$
442,113
$
169
$
(16,855
)
$
425,645
$
461,748
$
270
$
(12,374
)
$
450,042
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 Six
For the
Months Ended
Year Ended
June 30, 2024
December 31, 2023
Allowance for credit losses on securities at beginning of the period
$
398
$
—
CECL adoption
—
662
Benefit for credit losses
(180
)
(264
)
Allowance for credit losses on securities at end of the period
$
218
$
398
Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio
As of
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned
$
337,292
16.49
%
$
339,331
16.92
%
$
343,689
17.89
%
$
347,082
19.13
%
$
351,754
20.43
%
Owner-Occupied
147,485
7.21
%
150,842
7.52
%
152,311
7.93
%
151,866
8.37
%
154,116
8.94
%
Multifamily residential
545,323
26.66
%
545,825
27.22
%
550,559
28.65
%
553,694
30.52
%
550,033
31.94
%
Nonresidential properties
337,583
16.51
%
327,350
16.32
%
342,343
17.81
%
321,472
17.71
%
317,416
18.43
%
Construction and land
641,879
31.39
%
608,665
30.35
%
503,925
26.22
%
411,383
22.67
%
315,843
18.34
%
Total mortgage loans
2,009,562
98.26
%
1,972,013
98.33
%
1,892,827
98.50
%
1,785,497
98.40
%
1,689,162
98.08
%
Non-mortgage loans:
Business loans
30,222
1.48
%
26,664
1.33
%
19,779
1.03
%
18,416
1.02
%
21,041
1.22
%
Consumer loans (1)
5,305
0.26
%
6,741
0.34
%
8,966
0.47
%
10,416
0.58
%
11,958
0.70
%
Total non-mortgage loans
35,527
1.74
%
33,405
1.67
%
28,745
1.50
%
28,832
1.60
%
32,999
1.92
%
Total loans, gross
2,045,089
100.00
%
2,005,418
100.00
%
1,921,572
100.00
%
1,814,329
100.00
%
1,722,161
100.00
%
Net deferred loan origination costs
1,145
674
468
692
1,059
Allowance for credit losses on loans
(24,061
)
(24,664
)
(26,154
)
(27,414
)
(28,173
)
Loans, net
$
2,022,173
$
1,981,428
$
1,895,886
$
1,787,607
$
1,695,047
As of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, consumer loans include $4.3 million, $5.7 million, $8.0 million, $9.3 million and $11.2 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain.
Ponce Financial Group, Inc. and Subsidiaries
Grain Loan Exposure
Grain Technologies, Inc. ("Grain") Total Exposure as of June 30, 2024
(in thousands)
Receivable from Grain
Microloans originated - put back to Grain (inception-to-June 30, 2024)
$
23,986
Write-downs, net of recoveries (inception-to-date as of June 30, 2024)
(15,341
)
Cash receipts from Grain (inception-to-June 30, 2024)
(6,819
)
Grant/reserve
(1,826
)
Net receivable as of June 30, 2024
$
—
Microloan receivables from Grain Borrowers
Grain originated loans receivable as of June 30, 2024
$
4,277
Allowance for credit losses on loans as of June 30, 2024(1)
(3,623
)
Microloans, net of allowance for credit losses on loans as of June 30, 2024
$
654
Investments
Investment in Grain
$
1,000
Investment in Grain write-off in Q3 2022
(1,000
)
Investment in Grain as of June 30, 2024
—
Total exposure related to Grain as of June 30, 2024(2)
$
654
Excludes $1.6 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.
Total remaining exposure to Grain borrowers. These loans are now serviced by the Bank.
On November 1, 2023, Ponce Financial Group, Inc. and Grain signed a Perpetual Software License Agreement in order for the Bank to assume the servicing of the remaining Grain loans. In order to facilitate the transfer of the servicing responsibilities to the Bank, Grain granted the Bank a perpetual right and license to use the Grain software, including the source code to service the remaining loans.
Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans
For the Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period
$
24,664
$
26,154
$
27,414
$
28,173
$
28,975
(Benefit) provision for credit losses on loans
(120
)
(255
)
(126
)
750
934
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned
—
—
—
—
—
Owner occupied
—
—
—
—
—
Multifamily residences
—
—
—
—
—
Nonresidential properties
—
—
—
—
—
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
—
(52
)
(63
)
—
—
Consumer
(747
)
(1,302
)
(1,135
)
(1,592
)
(1,931
)
Total charge-offs
(747
)
(1,354
)
(1,198
)
(1,592
)
(1,931
)
Recoveries:
Mortgage loans:
1-4 family residences
Investor owned
—
—
—
—
—
Owner occupied
—
—
—
—
—
Multifamily residences
—
—
—
—
—
Nonresidential properties
—
—
—
—
—
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
7
1
—
3
—
Consumer
257
118
64
80
195
Total recoveries
264
119
64
83
195
Net (charge-offs) recoveries
(483
)
(1,235
)
(1,134
)
(1,509
)
(1,736
)
Allowance for credit losses on loans at end of the period
$
24,061
$
24,664
$
26,154
$
27,414
$
28,173
Ponce Financial Group, Inc. and Subsidiaries
Deposits
As of
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
(Dollars in thousands)
Demand(1)
$
178,125
11.09
%
$
191,541
12.07
%
$
185,151
12.28
%
$
214,326
15.30
%
$
225,106
15.61
%
Interest-bearing deposits:
NOW/IOLA accounts(1)
81,178
5.05
%
73,202
4.62
%
77,909
5.17
%
74,055
5.29
%
64,193
4.45
%
Money market accounts(2)
502,255
31.27
%
482,344
30.42
%
432,735
28.70
%
370,500
26.44
%
387,970
26.91
%
Reciprocal deposits
109,945
6.85
%
97,718
6.16
%
96,860
6.42
%
82,670
5.90
%
100,919
7.00
%
Savings accounts
109,694
6.83
%
112,713
7.11
%
114,139
7.57
%
117,870
8.41
%
119,635
8.30
%
Total NOW, money market, reciprocal and savings accounts
803,072
50.00
%
765,977
48.31
%
721,643
47.86
%
645,095
46.04
%
672,717
46.66
%
Certificates of deposit of $250K or more(2)
156,224
9.73
%
146,296
9.23
%
132,153
8.77
%
122,353
8.73
%
120,043
8.32
%
Brokered certificates of deposit(3)
94,614
5.89
%
94,689
5.97
%
98,729
6.55
%
98,729
7.05
%
98,729
6.85
%
Listing service deposits(3)
9,361
0.58
%
12,688
0.80
%
14,433
0.96
%
15,180
1.08
%
20,258
1.40
%
All other certificates of deposit less than $250K(2)
364,701
22.71
%
374,593
23.62
%
355,511
23.58
%
305,449
21.80
%
305,160
21.16
%
Total certificates of deposit
624,900
38.91
%
628,266
39.62
%
600,826
39.86
%
541,711
38.66
%
544,190
37.73
%
Total interest-bearing deposits
1,427,972
88.91
%
1,394,243
87.93
%
1,322,469
87.72
%
1,186,806
84.70
%
1,216,907
84.39
%
Total deposits
$
1,606,097
100.00
%
$
1,585,784
100.00
%
$
1,507,620
100.00
%
$
1,401,132
100.00
%
$
1,442,013
100.00
%
As of December 31, 2023, September 30, 2023 and June 30, 2023, $58.2 million, $51.5 million and $41.4 million, respectively, were reclassified from demand to NOW/IOLA accounts.
As of June 30, 2023, $150.6 million of Raisin deposits were reclassified from money market accounts to certificates of deposits. $36.4 million were reclassified to Certificates of deposits of $250K or more and $114.2 million were reclassified to certificates of deposit less than $250K.
As of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, there were $1.5 million, $1.5 million, $0.3 million, $0.3 million and $3.3 million, respectively, in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
Ponce Financial Group, Inc. and Subsidiaries
Borrowings
June 30,
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)
Term advances ending:
2024
$
109,321
$
109,321
4.69
%
$
363,321
$
363,321
4.55
%
2025
250,000
250,000
4.69
50,000
50,000
4.41
2026
50,000
50,000
4.83
—
—
—
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
Thereafter
50,000
50,000
3.35
50,000
50,000
3.35
$
680,421
$
680,421
4.20
%
$
684,421
$
684,421
4.10
%
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
As of Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned
$
436
$
399
$
793
$
396
$
296
Owner occupied
1,423
1,426
1,682
1,685
2,363
Multifamily residential
5,754
4,098
2,979
1,444
1,435
Nonresidential properties
828
441
—
—
—
Construction and land
8,907
10,277
10,759
11,721
11,721
Non-mortgage loans:
Business
396
146
165
209
—
Consumer
—
—
—
—
—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty)(1)
$
17,744
$
16,787
$
16,378
$
15,455
$
15,815
Non-accruing modifications to borrowers experiencing financial difficulty(1):
Mortgage loans:
1-4 family residential
Investor owned
$
277
$
270
$
270
$
270
$
209
Owner occupied
448
447
447
449
840
Multifamily residential
—
—
—
—
—
Nonresidential properties
—
—
—
—
—
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
—
Total non-accruing modifications to borrowers experiencing financial difficulty(1)
725
717
717
719
1,049
Total non-accrual loans(2)
$
18,469
$
17,504
$
17,095
$
16,174
$
16,864
Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned
$
1,830
$
1,850
$
2,112
$
2,131
$
2,161
Owner occupied
2,171
2,288
2,313
2,335
2,353
Multifamily residential
—
—
—
—
—
Nonresidential properties
707
748
757
765
783
Construction and land
—
—
—
—
—
Non-mortgage loans:
Business
—
—
—
—
—
Consumer
—
—
—
—
—
Total accruing modifications to borrowers experiencing financial difficulty(1)
$
4,708
$
4,886
$
5,182
$
5,231
$
5,297
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty(1)
$
23,177
$
22,390
$
22,277
$
21,405
$
22,161
Total non-performing loans to total gross loans
0.89
%
0.87
%
0.89
%
0.89
%
0.98
%
Total non-performing assets to total assets
0.65
%
0.62
%
0.62
%
0.62
%
0.63
%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets(1)
0.82
%
0.79
%
0.81
%
0.82
%
0.83
%
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.
Includes nonperforming mortgage loans held for sale.
Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets
For the Three Months Ended June 30,
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)
$
2,040,149
$
31,281
6.17
%
$
1,683,117
$
23,015
5.48
%
Securities(3)
562,560
5,486
3.92
%
614,598
5,731
3.74
%
Other(4)(5)
141,368
2,025
5.76
%
164,509
2,309
5.63
%
Total interest-earning assets
2,744,077
38,792
5.69
%
2,462,224
31,055
5.06
%
Non-interest-earning assets(5)
105,774
121,169
Total assets
$
2,849,851
$
2,583,393
Interest-bearing liabilities:
NOW/IOLA(6) (7)
$
72,932
$
151
0.83
%
$
66,314
$
305
1.84
%
Money market(7) (8)
599,209
7,209
4.84
%
408,329
4,077
4.00
%
Savings
111,859
27
0.10
%
122,802
29
0.09
%
Certificates of deposit(8)
635,850
6,358
4.02
%
524,445
3,881
2.97
%
Total deposits
1,419,850
13,745
3.89
%
1,121,890
8,292
2.96
%
Advance payments by borrowers
14,948
2
0.05
%
16,967
2
0.05
%
Borrowings
680,421
7,141
4.22
%
649,652
6,479
4.00
%
Total interest-bearing liabilities
2,115,219
20,888
3.97
%
1,788,509
14,773
3.31
%
Non-interest-bearing liabilities:
Non-interest-bearing demand(6)
188,920
—
255,673
—
Other non-interest-bearing liabilities
49,437
—
42,906
—
Total non-interest-bearing liabilities
238,357
—
298,579
—
Total liabilities
2,353,576
20,888
2,087,088
14,773
Total equity
496,275
496,305
Total liabilities and total equity
$
2,849,851
3.97
%
$
2,583,393
3.31
%
Net interest income
$
17,904
$
16,282
Net interest rate spread(9)
1.72
%
1.75
%
Net interest-earning assets(10)
$
628,858
$
673,715
Net interest margin(11)
2.62
%
2.65
%
Average interest-earning assets to interest-bearing liabilities
129.73
%
137.67
%
Annualized where appropriate.
Loans include loans and mortgage loans held for sale, at fair value.
Securities include available-for-sale securities and held-to-maturity securities.
Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
FRBNY demand deposits for prior period have been reclassified for consistency.
Includes reclassification of $44.0 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended June 30, 2023.
Includes $0.3 million of interest expense reclassified from money market to NOW/IOLA for the three months ended June 30, 2023.
Includes reclassification of $130.7 million average outstanding balances and $1.5 million of interest expenses from money market to certificates of deposit for the three months ended June 30, 2023.
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
Net interest margin represents net interest income divided by average total interest-earning assets.
Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets
For the Six Months Ended June 30,
2024
2023
Average
Average
Outstanding
Average
Outstanding
Average
Balance
Interest
Yield/Rate(1)
Balance
Interest
Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans(2)
$
2,009,706
$
61,945
6.20
%
$
1,627,939
$
42,715
5.29
%
Securities(3)
569,397
11,105
3.92
%
622,822
11,806
3.82
%
Other(4)(5)
189,899
5,408
5.73
%
106,812
2,890
5.46
%
Total interest-earning assets
2,769,002
78,458
5.70
%
2,357,573
57,411
4.91
%
Non-interest-earning assets(5)
106,172
122,083
Total assets
$
2,875,174
$
2,479,656
Interest-bearing liabilities:
NOW/IOLA(6) (7)
$
77,891
$
369
0.95
%
$
69,024
$
993
2.90
%
Money market(7) (8)
571,886
13,501
4.75
%
361,557
6,168
3.44
%
Savings
112,680
55
0.10
%
125,823
59
0.09
%
Certificates of deposit(8)
632,689
12,738
4.05
%
520,420
7,106
2.75
%
Total deposits
1,395,146
26,663
3.84
%
1,076,824
14,326
2.68
%
Advance payments by borrowers
13,917
4
0.06
%
14,954
5
0.07
%
Borrowings
725,745
15,064
4.17
%
587,026
11,553
3.97
%
Total interest-bearing liabilities
2,134,808
41,731
3.93
%
1,678,804
25,884
3.11
%
Non-interest-bearing liabilities:
Non-interest-bearing demand(6)
193,891
—
261,988
—
Other non-interest-bearing liabilities
51,749
—
42,451
—
Total non-interest-bearing liabilities
245,640
—
304,439
—
Total liabilities
2,380,448
41,731
1,983,243
25,884
Total equity
494,726
496,413
Total liabilities and total equity
$
2,875,174
3.93
%
$
2,479,656
3.11
%
Net interest income
$
36,727
$
31,527
Net interest rate spread(9)
1.77
%
1.80
%
Net interest-earning assets(10)
$
634,194
$
678,769
Net interest margin(11)
2.67
%
2.71
%
Average interest-earning assets to
interest-bearing liabilities
129.71
%
140.43
%
Annualized where appropriate.
Loans include loans and mortgage loans held for sale, at fair value.
Securities include available-for-sale securities and held-to-maturity securities.
Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
FRBNY demand deposits for prior period have been reclassified for consistency.
Includes reclassification of $46.2 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the six months ended June 30, 2023.
Includes $1.0 million of interest expense reclassified from money market to NOW/IOLA for the six months ended June 30, 2023.
Includes reclassification of $132.8 million average outstanding balances and $2.8 million of interest expenses from money market to certificates of deposit for the six months ended June 30, 2023.
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
Net interest margin represents net interest income divided by average total interest-earning assets.
Ponce Financial Group, Inc. and Subsidiaries
Other Data
As of
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
Other Data
Common shares issued
24,886,711
24,886,711
24,886,711
24,886,711
24,886,711
Less treasury shares
1,074,979
1,096,214
1,101,191
1,233,111
617,924
Common shares outstanding at end of period
23,811,732
23,790,497
23,785,520
23,653,600
24,268,787
Book value per common share
$
11.45
$
11.29
$
11.20
$
10.99
$
10.94
Tangible book value per common share
$
11.45
$
11.29
$
11.20
$
10.99
$
10.94
Contact:
Sergio Vaccaro
Sergio.vaccaro@poncebank.net
718-931-9000
Source: Ponce Financial Group, Inc.