Ponce Financial Group, Inc. Reports Third Quarter 2024 Results

NEW YORK, Oct. 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 third quarter of 2024.

Third Quarter 2024 Highlights (Compared to Prior Periods):

  • Net income available to common stockholders was $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024, as compared to net income available to common stockholders of $3.1 million, or $0.14 per diluted share for the three months ended June 30, 2024 and net income available to common stockholders of $2.6 million, or $0.12 per diluted share for the three months ended September 30, 2023. Total net income for the three months ended September 30, 2024 was $2.4 million. The Company paid dividends of $0.3 million on its preferred stock during the quarter ended September 30, 2024.
  • Included in the $2.2 million of net income available to common stockholders for the third quarter of 2024 results is $41.3 million in interest and dividend income and $1.2 million in non-interest income, offset by $22.3 million in interest expense, $16.3 million in non-interest expense, $0.8 million in provision for credit losses, $0.6 million in provision for income taxes and $0.3 million in dividends on preferred shares.
  • Net interest income of $19.0 million for the third quarter of 2024 increased $1.1 million, or 6.25%, from the prior quarter and increased $2.5 million, or 15.00%, from the same quarter last year.
  • Net interest margin was 2.65% for the third quarter of 2024, versus 2.62% for the prior quarter and versus 2.58% for the same quarter last year.

Nine Months 2024 Highlights (Compared to 2023):

  • Net income available to common stockholders was $7.7 million, or $0.34 per diluted share for the nine months ended September 30, 2024, as compared to net income available to common stockholders of $2.8 million, or $0.12 per diluted share for the nine months ended September 30, 2023. Total net income for the nine months ended September 30, 2024, prior to the payment of $0.4 million in dividends on preferred shares, was $8.0 million.
  • Net interest income for the nine months ended September 30, 2024 was $55.8 million, an increase of $7.7 million, or 15.98%, compared to $48.1 million for the nine months ended September 30, 2023.
  • Non-interest income for the nine months ended September 30, 2024 was $5.1 million, a decrease of $3.8 million, or 42.76%, from $8.9 million for the nine months ended September 30, 2023. The decrease was primarily driven by a $3.7 million in grants that were received in the prior year.
  • Non-interest expense for the nine months ended September 30, 2024 was $49.4 million, a decrease of $1.4 million, or 2.67%, compared to $50.8 million for the nine months ended September 30, 2023.
  • Cash and equivalents were $155.8 million as of September 30, 2024, an increase of $16.6 million, or 11.94%, from $139.2 million as of December 31, 2023.
  • Securities totaled $514.7 million as of September 30, 2024, a decrease of $66.9 million, or 11.50%, from $581.7 million as of December 31, 2023 primarily due to regular principal payments, maturity of one available-for-sale security in the amount of $4.0 million and call of one held-to-maturity security in the amount of $25.0 million.
  • Net loans receivable were $2.18 billion as of September 30, 2024, an increase of $284.4 million, or 15.00%, from $1.90 billion as of December 31, 2023.
  • Deposits were $1.87 billion as of September 30, 2024, an increase of $362.7 million, or 24.06%, from $1.51 billion as of December 31, 2023.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group’s President and CEO, stated, “We continue to make progress quarter over quarter both in terms of our economic performance as well as serving our communities. Book value per share continues to grow and is now $11.74 (up $0.75 vs last year) and total equity per common share stands at $21.18. Our levels of liquidity and capital remain strong. Our net interest income grew quarter over quarter, and we’re well positioned for a decline in interest rates. We reduced our borrowings during the quarter, paying off the entirety of our Bank Term Funding Program Loan, while lowering the overall cost and extending our maturities. 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, “During the quarter, the US Treasury Department issued proposed guidelines under which it may sell their ECIP investment back to the issuers or related non-profit affiliates. We believe the adoption of the proposed regulations would be greatly beneficial to Ponce Financial Group, although there can be no assurance that the proposed regulations will be adopted, or that that will be adopted in their current form.  Most of our loan growth of $157.6 million this quarter is explained by our desire to ensure qualification under the proposed regulations, if adopted. Deposits also grew significantly during the quarter including $35.0 million from the Banking Development District program of New York.” 

Selected performance metrics are as follows (refer to “Key Metrics” for additional information):

    At or for the Three Months Ended  
    September 30,     June 30,     March 31,     December 31,     September 30,  
Performance Ratios (Annualized):   2024     2024     2024     2023     2023  
Return on average assets (1)     0.33 %     0.45 %     0.33 %     0.08 %     0.39 %
Return on average equity (1)     1.93 %     2.59 %     1.97 %     0.42 %     2.11 %
Net interest rate spread (1) (2)     1.77 %     1.72 %     1.82 %     1.74 %     1.68 %
Net interest margin (1) (3)     2.65 %     2.62 %     2.71 %     2.66 %     2.58 %
Non-interest expense to average assets (1)     2.19 %     2.28 %     2.35 %     2.66 %     2.58 %
Efficiency ratio (4)     80.87 %     80.09 %     82.56 %     96.83 %     78.11 %
Average interest-earning assets to average interest- bearing liabilities     128.35 %     129.73 %     129.69 %     133.50 %     134.49 %
Average equity to average assets     16.97 %     17.41 %     17.00 %     18.25 %     18.32 %
                                         

    At or for the Three Months Ended  
    September 30,     June 30,     March 31,     December 31,     September 30,  
Capital Ratios (Annualized):   2024     2024     2024     2023     2023  
Total capital to risk-weighted assets (Bank only)     21.61 %     22.47 %     22.79 %     23.30 %     25.10 %
Tier 1 capital to risk-weighted assets (Bank only)     20.45 %     21.24 %     21.54 %     22.05 %     23.85 %
Common equity Tier 1 capital to risk-weighted assets (Bank only)     20.45 %     21.24 %     21.54 %     22.05 %     23.85 %
Tier 1 capital to average assets (Bank only)     16.19 %     16.70 %     16.26 %     17.49 %     17.51 %
                                         

    At or for the Three Months Ended  
    September 30,     June 30,     March 31,     December 31,     September 30,  
Asset Quality Ratios (Annualized):   2024     2024     2024     2023     2023  
Allowance for loan losses as a percentage of total loans     1.09 %     1.18 %     1.23 %     1.36 %     1.51 %
Allowance for loan losses as a percentage of nonperforming loans     139.52 %     130.28 %     140.90 %     152.99 %     169.49 %
Net (charge-offs) recoveries to average outstanding loans (1)     (0.17 %)     (0.10 %)     (0.25 %)     (0.24 %)     (0.34 %)
Non-performing loans as a percentage of total gross loans     0.78 %     0.89 %     0.87 %     0.89 %     0.89 %
Non-performing loans as a percentage of total assets     0.57 %     0.65 %     0.62 %     0.62 %     0.62 %
Total non-performing assets as a percentage of total assets     0.57 %     0.65 %     0.62 %     0.62 %     0.62 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)     0.73 %     0.82 %     0.79 %     0.81 %     0.82 %
                                         

  (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 cost 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 September 30, 2024 was $2.4 million compared to net income of $3.2 million for the three months ended June 30, 2024 and net income of $2.6 million for the three months ended September 30, 2023.

The decrease of net income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was attributed mainly to an increase of $1.2 million in provision for credit losses, a decrease of $1.1 million in non-interest income, an increase of $0.2 million in non-interest expense, partially offset by an increase of $1.1 million in net interest income and a decrease of $0.6 million in provision for income taxes .

The decrease of net income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was largely due to a decrease of $4.5 million in non-interest income as a result of a $3.7 million grant reported in the third quarter of 2023 and an increase of $0.3 million in provision for credit losses, partially offset by an increase of $2.5 million in net interest income and decreases of $1.1 million in provision for income taxes and $ 1.0 million in non-interest expense.

Net income for the nine months ended September 30, 2024 was $8.0 million compared to a net income of $2.8 million for the nine months ended September 30, 2023. The increase of $5.2 million in net income was attributable to an increase of $7.7 million in net interest income, a decrease of $1.3 million in non-interest expense and a decrease of $1.1 million in provision for credit losses, partially offset by a decrease of $3.8 million in non-interest income and an increase of $1.1 million in provision for income taxes.

Net Interest Income and Net Margin

Net interest income for the three months ended September 30, 2024, increased $1.1 million, or 6.25%, to $19.0 million compared to $17.9 million for the three months ended June 30, 2024 and increased $2.5 million, or 15.00%, compared to $16.5 million for the three months ended September 30, 2023.

Net interest income for the nine months ended September 30, 2024, increased $7.7 million, or 15.98%, to $55.8 million, compared to $48.1 million for the nine months ended September 30, 2023. The increase of $7.7 million of net interest income was attributable to an increase of $28.8 million in total interest and dividend income, offset by an increase of $21.1 million in total interest expense.

For the nine months ended September 30, 2024, provision for credit losses amounted to $0.2 million consisting of a provision for credit losses on loans in the amount of $0.4 million and a benefit for credit losses on held-to-maturity securities in the amount of $0.2 million. The $0.4 million provision for credit losses on loans for the nine months ended September 30, 2024 resulted from a benefit of $2.1 million related to microloans offset by a provision of $2.5 million related to non-microloans.

Net interest margin was 2.65% for the three months ended September 30, 2024 compared to 2.62% for the prior quarter, an increase of 3bps and 2.58% for the same period last year, an increase of 7bps.

Net interest margin was 2.66% for the nine months ended September 30, 2024 compared to 2.65% for the nine months ended September 30, 2023, an increase of 1bp.

Non-interest Income

Non-interest income for the three months ended September 30, 2024, was $1.2 million, a decrease of $1.1 million, or 49.03%, compared to $2.3 million the three months ended June 30, 2024 and a decrease of $4.5 million, or 79.55%, compared to $5.6 million the three months ended September 30, 2023.

The $1.1 million decrease in non-interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was largely attributable to decreases of $0.7 million in other non-interest income related to the mark to market adjustments on a private equity fund investment and $0.3 million in late and prepayment charges.

The $4.5 million decrease in non-interest income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was largely attributable to $3.7 million in grants received in the third quarter of 2023 and a decrease of $0.8 million in late and prepayment charges.

Non-interest income for the nine months ended September 30, 2024, was $5.1 million, a decrease of $3.8 million, or 42.76%, compared to $8.9 million for the nine months ended September 30, 2023. The decrease was largely attributable to $3.7 million related to grants received in the third quarter of 2023 and a decrease of $1.1 million in late and prepayment charges, partially, offset by increases of $0.6 million in other non-interest income and $0.4 million in income on sale of mortgage loans.

Non-interest Expense

Non-interest expense for the three months ended September 30, 2024, was $16.3 million, an increase of $0.2 million, or 1.03%, compared to $16.1 million for the three months ended June 30, 2024 and a decrease of $1.0 million, or 5.79%, compared to $17.3 million for the three months ended September 30, 2023.

The $0.2 million increase from the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was mainly attributable to a decrease of $0.2 million in benefit for contingencies and an increase of $0.2 million in occupancy and equipment, partially offset by a decrease of $0.3 million in other operating expense.

The $1.0 million decrease from the three months ended September 30, 2023 compared to the three months ended September 30, 2023 was mainly attributable to decreases of $0.6 million in provision for contingencies, $0.5 million in data processing expenses and $0.3 million in professional fees, partially offset by increases of $0.2 million in direct loan expenses, $0.2 million in occupancy and equipment and $0.1 million in compensation and benefits.

Non-interest expense for the nine months ended September 30, 2024, was $49.4 million, a decrease of $1.4 million, or 2.67%, compared to $50.8 million for the nine months ended September 30, 2023. The $1.4 million decrease from the nine months ended September 30, 2023 was mainly attributable to decreases of $2.5 million in provision for contingencies, $0.7 million in data processing expenses, $0.6 million in professional fees and $0.5 million in office supplies, telephone and postage, partially offset by a decrease of $1.2 million in microloans recoveries and increases of $0.8 million in compensation and benefits and $0.8 million in direct loan expenses.

Balance Sheet Summary

Total assets increased $265.2 million, or 9.64%, to $3.02 billion as of September 30, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $284.4 million in net loans receivable, $26.7 million in other assets, $16.6 million in cash and cash equivalents, $9.1 million in Federal Home Loan Bank of New York stock and $0.8 million in net premises and equipment, partially offset by decreases of $58.0 million in held-to-maturity securities, $8.9 million in available-for-sale securities, $2.5 million in deferred tax assets, $1.5 million in right of use assets, $1.1 million in accrued interest receivable and $0.4 million in mortgage loans held for sale.

Total liabilities increased $252.1 million, or 11.16%, to $2.51 billion as of September 30, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $362.7 million in deposits, $3.0 million in advance payments by borrowers for taxes and insurance and $0.8 million in other liabilities, partially offset by decreases of $104.0 million in borrowings, $9.0 million in accrued interest payable and $1.4 million in operating lease liabilities.

Total stockholders’ equity increased $13.2 million, or 2.69%, to $504.6 million as of September 30, 2024, from $491.4 million as of December 31, 2023. This increase in stockholders’ equity was largely attributable to $8.0 million in net income, $3.0 million in other comprehensive income, $1.6 million impact to additional paid in capital as a result of share-based compensation and $1.0 million from release of ESOP shares, offset by $0.4 million in preferred stock dividend for shares issued pursuant to the ECIP.

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  
  September 30,     June 30,     March 31,     December 31,     September 30,  
  2024     2024     2024     2023     2023  
ASSETS                            
Cash and due from banks:                            
Cash $ 32,061     $ 23,128     $ 29,972     $ 28,930     $ 26,046  
Interest-bearing deposits   123,751       80,038       104,752       110,260       90,966  
Total cash and cash equivalents   155,812       103,166       134,724       139,190       117,012  
Available-for-sale securities, at fair value   111,005       113,125       116,044       119,902       116,753  
Held-to-maturity securities, at amortized cost   403,736       442,113       452,955       461,748       471,065  
Placement with banks   249       249       249       249       996  
Mortgage loans held for sale, at fair value   9,566       37,764       7,860       9,980       14,103  
Loans receivable, net   2,180,331       2,022,173       1,981,428       1,895,886       1,787,607  
Accrued interest receivable   16,890       17,441       18,063       18,010       16,624  
Premises and equipment, net   16,843       16,976       17,396       16,053       16,453  
Right of use assets   29,785       30,349       31,021       31,272       32,110  
Federal Home Loan Bank of New York stock (FHLBNY), at cost   28,515       23,972       23,892       19,377       18,870  
Deferred tax assets   11,845       13,172       13,919       14,332       15,984  
Other assets   51,392       21,507       21,151       24,723       16,286  
Total assets $ 3,015,969     $ 2,842,007     $ 2,818,702     $ 2,750,722     $ 2,623,863  
LIABILITIES AND STOCKHOLDERS’ EQUITY                            
Liabilities:                            
Deposits $ 1,870,323     $ 1,606,097     $ 1,585,784     $ 1,507,620     $ 1,401,132  
Operating lease liabilities   31,343       31,861       32,486       32,684       33,459  
Accrued interest payable   2,918       6,820       4,218       11,965       8,385  
Advance payments by borrowers for taxes and insurance   13,733       10,838       13,245       10,778       13,743  
Borrowings   580,421       680,421       680,421       684,421       675,100  
Other liabilities   12,642       8,313       8,866       11,859       6,986  
Total liabilities   2,511,380       2,344,350       2,325,020       2,259,327       2,138,805  
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   (9,445 )     (9,519 )     (9,702 )     (9,747 )     (10,975 )
Additional paid-in-capital   208,478       207,934       207,584       207,106       207,626  
Retained earnings   105,103       102,951       99,834       97,420       96,902  
Accumulated other comprehensive loss   (12,686 )     (16,557 )     (16,590 )     (15,649 )     (20,468 )
Unearned compensation ─ ESOP   (12,110 )     (12,401 )     (12,693 )     (12,984 )     (13,276 )
Total stockholders’ equity   504,589       497,657       493,682       491,395       485,058  
Total liabilities and stockholders’ equity $ 3,015,969     $ 2,842,007     $ 2,818,702     $ 2,750,722     $ 2,623,863  
                                       

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

  Three Months Ended  
  September 30,     June 30,     March 31,     December 31,     September 30,  
  2024     2024     2024     2023     2023  
Interest and dividend income:                            
Interest on loans receivable $ 32,945     $ 31,281     $ 30,664     $ 27,814     $ 25,276  
Interest on deposits due from banks   2,430       1,542       2,911       990       1,969  
Interest and dividend on securities and FHLBNY stock   5,918       5,969       6,091       6,146       6,261  
Total interest and dividend income   41,293       38,792       39,666       34,950       33,506  
Interest expense:                            
Interest on certificates of deposit   6,926       6,358       6,380       5,103       4,362  
Interest on other deposits   8,519       7,389       6,540       5,706       5,639  
Interest on borrowings   6,825       7,141       7,923       6,944       6,963  
Total interest expense   22,270       20,888       20,843       17,753       16,964  
Net interest income   19,023       17,904       18,823       17,197       16,542  
Provision (benefit) for credit losses   789       (374 )     (180 )     (375 )     535  
Net interest income after provision (benefit) for credit losses   18,234       18,278       19,003       17,572       16,007  
Non-interest income:                            
Service charges and fees   508       492       473       498       516  
Brokerage commissions         9       8       13       17  
Late and prepayment charges   77       426       359       365       899  
Income on sale of mortgage loans   218       274       302       244       173  
Grant income                     438       3,718  
Other   348       1,057       565       (273 )     304  
Total non-interest income   1,151       2,258       1,707       1,285       5,627  
Non-interest expense:                            
Compensation and benefits   7,674       7,724       7,844       8,262       7,566  
Occupancy and equipment   3,786       3,564       3,667       3,686       3,588  
Data processing expenses   1,099       1,013       1,127       1,101       1,582  
Direct loan expenses   573       633       732       497       369  
(Benefit) provision for contingencies   (252 )     (493 )     164       418       391  
Insurance and surety bond premiums   292       263       253       250       255  
Office supplies, telephone and postage   222       233       249       294       301  
Professional fees   1,351       1,369       1,723       2,040       1,693  
Microloans recoveries   (54 )     (65 )     (53 )     (152 )     (69 )
Marketing and promotional expenses   180       145       100       146       248  
Directors fees and regulatory assessment   178       176       179       173       169  
Other operating expenses   1,265       1,585       965       1,182       1,223  
Total non-interest expense   16,314       16,147       16,950       17,897       17,316  
Income before income taxes   3,071       4,389       3,760       960       4,318  
Provision for income taxes   638       1,197       1,346       442       1,728  
Net income $ 2,433     $ 3,192     $ 2,414     $ 518     $ 2,590  
Dividends on preferred shares   281       75                    
Net income available to common stockholders $ 2,152     $ 3,117     $ 2,414     $ 518     $ 2,590  
Earnings per common share:                            
Basic $ 0.10     $ 0.14     $ 0.11     $ 0.02     $ 0.12  
Diluted $ 0.10     $ 0.14     $ 0.11     $ 0.02     $ 0.12  
Weighted average common shares outstanding:                            
Basic   22,446,009       22,409,803       22,353,492       22,224,945       22,272,076  
Diluted   22,612,028       22,419,309       22,366,728       22,406,102       22,349,217  
                                       

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

    For the Nine Months Ended September 30,  
    2024     2023     Variance $     Variance %  
Interest and dividend income:                        
Interest on loans receivable   $ 94,890     $ 67,991     $ 26,899       39.56 %
Interest on deposits due from banks     6,883       3,983       2,900       72.81 %
Interest and dividend on securities and FHLBNY stock     17,978       18,943       (965 )     (5.09 %)
Total interest and dividend income     119,751       90,917       28,834       31.71 %
Interest expense:                        
Interest on certificates of deposit     19,664       11,468       8,196       71.47 %
Interest on other deposits     22,448       12,864       9,584       74.50 %
Interest on borrowings     21,889       18,516       3,373       18.22 %
Total interest expense     64,001       42,848       21,153       49.37 %
Net interest income     55,750       48,069       7,681       15.98 %
Provision for credit losses     235       1,348       (1,113 )     (82.57 %)
Net interest income after provision for credit losses     55,515       46,721       8,794       18.82 %
Non-interest income:                        
Service charges and fees     1,473       1,488       (15 )     (1.01 %)
Brokerage commissions     17       67       (50 )     (74.63 %)
Late and prepayment charges     862       2,000       (1,138 )     (56.90 %)
Income on sale of mortgage loans     794       354       440       124.29 %
Grant income           3,718       (3,718 )     (100.00 %)
Other     1,970       1,311       659       50.27 %
Total non-interest income     5,116       8,938       (3,822 )     (42.76 %)
Non-interest expense:                        
Compensation and benefits     23,242       22,437       805       3.59 %
Occupancy and equipment     11,017       10,882       135       1.24 %
Data processing expenses     3,239       3,982       (743 )     (18.66 %)
Direct loan expenses     1,938       1,126       812       72.11 %
(Benefit) provision for contingencies     (581 )     1,893       (2,474 )     (130.69 %)
Insurance and surety bond premiums     808       768       40       5.21 %
Office supplies, telephone and postage     704       1,189       (485 )     (40.79 %)
Professional fees     4,443       5,052       (609 )     (12.05 %)
Microloans recoveries     (172 )     (1,329 )     1,157       (87.06 %)
Marketing and promotional expenses     425       679       (254 )     (37.41 %)
Directors fees and regulatory assessment     533       484       49       10.12 %
Other operating expenses     3,815       3,603       212       5.88 %
Total non-interest expense     49,411       50,766       (1,355 )     (2.67 %)
Income before income taxes     11,220       4,893       6,327       129.31 %
Provision for income taxes     3,181       2,059       1,122       54.49 %
Net income   $ 8,039     $ 2,834     $ 5,205       183.66 %
Dividends on preferred shares     356             356       100.00 %
Net income available to common stockholders   $ 7,683     $ 2,834     $ 4,849       171.10 %
Earnings per common share:                        
Basic   $ 0.34     $ 0.12     $ 0.22       177.36 %
Diluted   $ 0.34     $ 0.12     $ 0.22       177.10 %
Weighted average common shares outstanding:                        
Basic     22,403,258       22,920,680       (517,422 )     (2.26 %)
Diluted     22,466,178       22,962,956       (496,778 )     (2.16 %)
                                 

Ponce Financial Group, Inc. and Subsidiaries
Key Metrics

  At or for the Three Months Ended  
  September 30,     June 30,     March 31,     December 31,     September 30,  
  2024     2024     2024     2023     2023  
Performance Ratios:                            
Return on average assets (1)   0.33 %     0.45 %     0.33 %     0.08 %     0.39 %
Return on average equity (1)   1.93 %     2.59 %     1.97 %     0.42 %     2.11 %
Net interest rate spread (1) (2)   1.77 %     1.72 %     1.82 %     1.74 %     1.68 %
Net interest margin (1) (3)   2.65 %     2.62 %     2.71 %     2.66 %     2.58 %
Non-interest expense to average assets (1)   2.19 %     2.28 %     2.35 %     2.66 %     2.58 %
Efficiency ratio (4)   80.87 %     80.09 %     82.56 %     96.83 %     78.11 %
Average interest-earning assets to average interest- bearing liabilities   128.35 %     129.73 %     129.69 %     133.50 %     134.49 %
Average equity to average assets   16.97 %     17.41 %     17.00 %     18.25 %     18.32 %
Capital Ratios:                            
Total capital to risk-weighted assets (Bank only)   21.61 %     22.47 %     22.79 %     23.30 %     25.10 %
Tier 1 capital to risk-weighted assets (Bank only)   20.45 %     21.24 %     21.54 %     22.05 %     23.85 %
Common equity Tier 1 capital to risk-weighted assets (Bank only)   20.45 %     21.24 %     21.54 %     22.05 %     23.85 %
Tier 1 capital to average assets (Bank only)   16.19 %     16.70 %     16.26 %     17.49 %     17.51 %
Asset Quality Ratios:                            
Allowance for credit losses on loans as a percentage of total loans   1.09 %     1.18 %     1.23 %     1.36 %     1.51 %
Allowance for credit losses on loans as a percentage of nonperforming loans   139.52 %     130.28 %     140.90 %     152.99 %     169.49 %
Net (charge-offs) recoveries to average outstanding loans (1)   (0.17 %)     (0.10 %)     (0.25 %)     (0.24 %)     (0.34 %)
Non-performing loans as a percentage of total gross loans   0.78 %     0.89 %     0.87 %     0.89 %     0.89 %
Non-performing loans as a percentage of total assets   0.57 %     0.65 %     0.62 %     0.62 %     0.62 %
Total non-performing assets as a percentage of total assets   0.57 %     0.65 %     0.62 %     0.62 %     0.62 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)   0.73 %     0.82 %     0.79 %     0.81 %     0.82 %
Other:                            
Number of offices   19       18       18       18       19  
Number of full-time equivalent employees   228       227       233       237       243  
                             

  (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

    September 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   $ 2,993     $     $ (124 )   $ 2,869     $ 2,990     $     $ (206 )   $ 2,784  
Corporate Bonds     21,766             (1,438 )     20,328       25,790             (2,122 )     23,668  
Mortgage-Backed Securities:                                                
Collateralized Mortgage Obligations (1)     35,620             (4,976 )     30,644       39,375             (6,227 )     33,148  
FHLMC Certificates     9,310             (1,119 )     8,191       10,163             (1,482 )     8,681  
FNMA Certificates     57,345             (8,463 )     48,882       61,359             (9,842 )     51,517  
GNMA Certificates     91                   91       104                   104  
Total available-for-sale securities   $ 127,125     $     $ (16,120 )   $ 111,005     $ 139,781     $     $ (19,879 )   $ 119,902  
                                                 
Held-to-Maturity Securities:                                                
U.S. Agency Bonds   $ 25,000     $     $ (49 )   $ 24,951     $ 25,000     $     $ (181 )   $ 24,819  
Corporate Bonds     57,500             (618 )     56,882       82,500             (2,691 )     79,809  
Mortgage-Backed Securities:                                                
Collateralized Mortgage Obligations (1)     193,440       454       (2,946 )     190,948       212,093       104       (5,170 )     207,027  
FHLMC Certificates     3,441             (169 )     3,272       3,897             (244 )     3,653  
FNMA Certificates     108,577       22       (1,967 )     106,632       118,944             (4,088 )     114,856  
SBA Certificates     15,985       153             16,138       19,712       166             19,878  
Allowance for Credit Losses     (207 )                       (398 )                  
Total held-to-maturity securities   $ 403,736     $ 629     $ (5,749 )   $ 398,823     $ 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 Nine     For the  
    Months Ended     Year Ended  
    September 30, 2024     December 31, 2023  
Allowance for credit losses on securities at beginning of the period   $ 398     $  
CECL adoption           662  
Benefit for credit losses     (191 )     (264 )
Allowance for credit losses on securities at end of the period   $ 207     $ 398  
                 

Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio

    As of  
    September 30,     June 30,     March 31,     December 31,     September 30,  
    2024     2024     2024     2023     2023  
    Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent  
    (Dollars in thousands)  
Mortgage loans:                                                            
1-4 family residential                                                            
Investor Owned   $ 332,380       15.09 %   $ 337,292       16.49 %   $ 339,331       16.92 %   $ 343,689       17.89 %   $ 347,082       19.13 %
Owner-Occupied     145,065       6.59 %     147,485       7.21 %     150,842       7.52 %     152,311       7.93 %     151,866       8.37 %
Multifamily residential     678,029       30.78 %     545,323       26.66 %     545,825       27.22 %     550,559       28.65 %     553,694       30.52 %
Nonresidential properties     383,277       17.40 %     337,583       16.51 %     327,350       16.32 %     342,343       17.81 %     321,472       17.71 %
Construction and land     631,461       28.67 %     641,879       31.39 %     608,665       30.35 %     503,925       26.22 %     411,383       22.67 %
Total mortgage loans     2,170,212       98.53 %     2,009,562       98.26 %     1,972,013       98.33 %     1,892,827       98.50 %     1,785,497       98.40 %
Non-mortgage loans:                                                            
Business loans     28,499       1.29 %     30,222       1.48 %     26,664       1.33 %     19,779       1.03 %     18,416       1.02 %
Consumer loans (1)     4,021       0.18 %     5,305       0.26 %     6,741       0.34 %     8,966       0.47 %     10,416       0.58 %
Total non-mortgage loans     32,520       1.47 %     35,527       1.74 %     33,405       1.67 %     28,745       1.50 %     28,832       1.60 %
Total loans, gross     2,202,732       100.00 %     2,045,089       100.00 %     2,005,418       100.00 %     1,921,572       100.00 %     1,814,329       100.00 %
Net deferred loan origination costs     1,565             1,145             674             468             692        
Allowance for credit losses on loans     (23,966 )           (24,061 )           (24,664 )           (26,154 )           (27,414 )      
Loans, net   $ 2,180,331           $ 2,022,173           $ 1,981,428           $ 1,895,886           $ 1,787,607        
                                                                       

  (1) As of September 30, 2024, June 30,2024, March 31, 2024, December 31, 2023, and September 30, 2023, consumer loans include $3.0 million, $4.3 million, $5.7 million, $8.0 million, and $9.3 million, respectively, of microloans originated by the Bank.
     

Ponce Financial Group, Inc. and Subsidiaries
Microloans Exposure (previously originated by the Bank under its arrangement with Grain)

Total Microloans Exposure as of September 30, 2024  
(in thousands)  
Microloans Receivable from Grain      
Microloans originated – put back (inception-to-September 30, 2024)   $ 23,932  
Write-downs, net of recoveries (inception-to-date as of September 30, 2024)     (15,287 )
Cash receipts (inception-to-September 30, 2024)     (6,819 )
Grant/reserve     (1,826 )
Net receivable as of September 30, 2024   $  
Microloans Receivables from Borrowers      
Microloans receivable as of September 30, 2024   $ 3,033  
Allowance for credit losses on loans as of September 30, 2024 (1)     (2,570 )
Microloans, net of allowance for credit losses on loans as of September 30, 2024   $ 463  
Investments      
Investment in Grain   $ 1,000  
Investment write-off in Q3 2022     (1,000 )
Net investment as of September 30, 2024      
Total exposure related to microloans as of September 30, 2024 (2)   $ 463  
         

  (1) Excludes $1.5 million of security deposits by microloans originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.
  (2) Total remaining exposure to microloan borrowers. These loans are now serviced by the Bank.
     

On November 1, 2023, Ponce Financial Group, Inc. and Grain Technologies, Inc. (“Grain”) signed a Perpetual Software License Agreement in order for the Bank to assume the servicing of the remaining microloans. 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 microloans.

Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans

  For the Three Months Ended  
  September 30,     June 30,     March 31,     December 31,     September 30,  
  2024     2024     2024     2023     2023  
  (Dollars in thousands)  
Allowance for credit losses on loans at beginning of the period $ 24,061     $ 24,664     $ 26,154     $ 27,414     $ 28,173  
Provision (benefit) for credit losses on loans   801       (120 )     (255 )     (126 )     750  
Charge-offs:                            
Mortgage loans:                            
1-4 family residences                            
Investor owned                            
Owner occupied                            
Multifamily residences                            
Nonresidential properties   (7 )                        
Construction and land                            
Non-mortgage loans:                            
Business   (450 )           (52 )     (63 )      
Consumer   (634 )     (747 )     (1,302 )     (1,135 )     (1,592 )
Total charge-offs   (1,091 )     (747 )     (1,354 )     (1,198 )     (1,592 )
Recoveries:                            
Non-mortgage loans:                            
Business   1       7       1             3  
Consumer   194       257       118       64       80  
Total recoveries   195       264       119       64       83  
Net (charge-offs) recoveries   (896 )     (483 )     (1,235 )     (1,134 )     (1,509 )
Allowance for credit losses on loans at end of the period $ 23,966     $ 24,061     $ 24,664     $ 26,154     $ 27,414  
                                       

Ponce Financial Group, Inc. and Subsidiaries
Deposits

    As of  
    September 30,     June 30,     March 31,     December 31,     September 30,  
    2024     2024     2024     2023     2023  
    Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent  
    (Dollars in thousands)  
Demand (1)   $ 182,737       9.78 %   $ 178,125       11.09 %   $ 191,541       12.07 %   $ 185,151       12.28 %   $ 214,326       15.30 %
Interest-bearing deposits:                                                            
NOW/IOLA accounts (1)     71,445       3.82 %     81,178       5.05 %     73,202       4.62 %     77,909       5.17 %     74,055       5.29 %
Money market accounts     660,168       35.30 %     502,255       31.27 %     482,344       30.42 %     432,735       28.70 %     370,500       26.44 %
Reciprocal deposits     94,145       5.03 %     109,945       6.85 %     97,718       6.16 %     96,860       6.42 %     82,670       5.90 %
Savings accounts     108,941       5.82 %     109,694       6.83 %     112,713       7.11 %     114,139       7.57 %     117,870       8.41 %
Total NOW, money market, reciprocal and savings accounts     934,699       49.97 %     803,072       50.00 %     765,977       48.31 %     721,643       47.86 %     645,095       46.04 %
Certificates of deposit of $250K or more     174,053       9.31 %     156,224       9.73 %     146,296       9.23 %     132,153       8.77 %     122,353       8.73 %
Brokered certificates of deposit (2)     94,531       5.05 %     94,614       5.89 %     94,689       5.97 %     98,729       6.55 %     98,729       7.05 %
Listing service deposits (2)     7,376       0.39 %     9,361       0.58 %     12,688       0.80 %     14,433       0.96 %     15,180       1.08 %
All other certificates of deposit less than $250K     476,927       25.50 %     364,701       22.71 %     374,593       23.62 %     355,511       23.58 %     305,449       21.80 %
Total certificates of deposit     752,887       40.25 %     624,900       38.91 %     628,266       39.62 %     600,826       39.86 %     541,711       38.66 %
Total interest-bearing deposits     1,687,586       90.22 %     1,427,972       88.91 %     1,394,243       87.93 %     1,322,469       87.72 %     1,186,806       84.70 %
Total deposits   $ 1,870,323       100.00 %   $ 1,606,097       100.00 %   $ 1,585,784       100.00 %   $ 1,507,620       100.00 %   $ 1,401,132       100.00 %
                                                                                 

  (1) As of December 31, 2023 and September 30, 2023 $58.2 million and $51.5 million, respectively, were reclassified from demand to NOW/IOLA accounts.
  (2) As of December 31, 2023, and September 30, 2023, there were $0.3 million and $0.3 million, respectively, in individual listing service deposits amounting to $250,000 or more. As of September 30, 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.
     

Ponce Financial Group, Inc. and Subsidiaries
Borrowings

  September 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 $ 59,321     $ 59,321       4.00 %   $ 363,321     $ 363,321       4.55 %
2025   50,000       50,000       4.41       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  
Thereafter   50,000       50,000       3.35       50,000       50,000       3.35  
  $ 580,421     $ 580,421       3.86 %   $ 684,421     $ 684,421       4.10 %
                                               

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets

  As of Three Months Ended  
  September 30,     June 30,     March 31,     December 31,     September 30,  
  2024     2024     2024     2023     2023  
  (Dollars in thousands)  
Non-accrual loans:                            
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 436     $ 436     $ 399     $ 793     $ 396  
Owner occupied   1,423       1,423       1,426       1,682       1,685  
Multifamily residential   4,685       5,754       4,098       2,979       1,444  
Nonresidential properties   824       828       441              
Construction and land   8,907       8,907       10,277       10,759       11,721  
Non-mortgage loans:                            
Business   180       396       146       165       209  
Consumer                            
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) $ 16,455     $ 17,744     $ 16,787     $ 16,378     $ 15,455  
                             
Non-accruing modifications to borrowers experiencing financial difficulty (1):              
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 278     $ 277     $ 270     $ 270     $ 270  
Owner occupied   444       448       447       447       449  
Multifamily residential                            
Nonresidential properties                            
Construction and land                            
Non-mortgage loans:                            
Business                            
Consumer                            
Total non-accruing modifications to borrowers experiencing financial difficulty (1)   722       725       717       717       719  
Total non-accrual loans (2) $ 17,177     $ 18,469     $ 17,504     $ 17,095     $ 16,174  
                             
Accruing modifications to borrowers experiencing financial difficulty (1):              
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 1,821     $ 1,830     $ 1,850     $ 2,112     $ 2,131  
Owner occupied   2,116       2,171       2,288       2,313       2,335  
Multifamily residential                            
Nonresidential properties   672       707       748       757       765  
Construction and land                            
Non-mortgage loans:                            
Business   222                          
Consumer                            
Total accruing modifications to borrowers experiencing financial difficulty (1) $ 4,831     $ 4,708     $ 4,886     $ 5,182     $ 5,231  
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) $ 22,008     $ 23,177     $ 22,390     $ 22,277     $ 21,405  
Total non-performing loans to total gross loans   0.78 %     0.89 %     0.87 %     0.89 %     0.89 %
Total non-performing assets to total assets   0.57 %     0.65 %     0.62 %     0.62 %     0.62 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1)   0.73 %     0.82 %     0.79 %     0.81 %     0.82 %
                                       

  (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 September 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) $ 2,096,592     $ 32,945     6.25 %   $ 1,777,585     $ 25,276     5.64 %
Securities (3)   548,708       5,324     3.86 %     599,573       5,821     3.85 %
Other (4)   210,057       3,024     5.73 %     169,570       2,409     5.64 %
Total interest-earning assets   2,855,357       41,293     5.75 %     2,546,728       33,506     5.22 %
Non-interest-earning assets   107,153                 111,771            
Total assets $ 2,962,510               $ 2,658,499            
Interest-bearing liabilities:                              
NOW/IOLA (5) (6) $ 74,690     $ 174     0.93 %   $ 69,935     $ 141     0.80 %
Money market (6)   711,385       8,318     4.65 %     485,042       5,468     4.47 %
Savings   109,571       25     0.09 %     118,095       29     0.10 %
Certificates of deposit   655,562       6,926     4.20 %     527,302       4,362     3.28 %
Total deposits   1,551,208       15,443     3.96 %     1,200,374       10,000     3.31 %
Advance payments by borrowers   13,151       2     0.06 %     14,537       1     0.03 %
Borrowings   660,312       6,825     4.11 %     678,676       6,963     4.07 %
Total interest-bearing liabilities   2,224,671       22,270     3.98 %     1,893,587       16,964     3.55 %
Non-interest-bearing liabilities:                              
Non-interest-bearing demand (5)   185,543                 231,299            
Other non-interest-bearing liabilities   49,702                 46,643            
Total non-interest-bearing liabilities   235,245                 277,942            
Total liabilities   2,459,916       22,270           2,171,529       16,964      
Total equity   502,594                 486,970            
Total liabilities and total equity $ 2,962,510           3.98 %   $ 2,658,499           3.55 %
Net interest income       $ 19,023               $ 16,542      
Net interest rate spread (7)             1.77 %               1.67 %
Net interest-earning assets (8) $ 630,686               $ 653,141            
Net interest margin (9)             2.65 %               2.58 %
Average interest-earning assets to interest-bearing liabilities             128.35 %               134.49 %
                                   

  (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 $47.1 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended September 30, 2023.
  (6) Includes $0.1 million of interest expense reclassified from money market to NOW/IOLA for the three months ended September 30, 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 Nine Months Ended September 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) $ 2,038,879     $ 94,890       6.22 %   $ 1,678,369     $ 67,991       5.42 %
Securities (3)   562,451       16,429       3.90 %     614,987       17,627       3.83 %
Other (4)   196,668       8,432       5.73 %     127,961       5,299       5.54 %
Total interest-earning assets   2,797,998       119,751       5.72 %     2,421,317       90,917       5.02 %
Non-interest-earning assets   106,500                   118,609              
Total assets $ 2,904,498                 $ 2,539,926              
Interest-bearing liabilities:                                  
NOW/IOLA (5) (6) $ 76,817     $ 543       0.94 %   $ 69,331     $ 1,133       2.18 %
Money market (6)   618,725       21,819       4.71 %     403,171       11,637       3.86 %
Savings   111,636       80       0.10 %     123,218       88       0.10 %
Certificates of deposit   640,369       19,664       4.10 %     522,740       11,468       2.93 %
Total deposits   1,447,547       42,106       3.89 %     1,118,460       24,326       2.91 %
Advance payments by borrowers   13,660       6       0.06 %     14,814       6       0.05 %
Borrowings   703,775       21,889       4.15 %     617,912       18,516       4.01 %
Total interest-bearing liabilities   2,164,982       64,001       3.95 %     1,751,186       42,848       3.27 %
Non-interest-bearing liabilities:                                  
Non-interest-bearing demand (5)   191,087                   251,645              
Other non-interest-bearing liabilities   51,061                   43,864              
Total non-interest-bearing liabilities   242,148                   295,509              
Total liabilities   2,407,130       64,001             2,046,695       42,848        
Total equity   497,368                   493,231              
Total liabilities and total equity $ 2,904,498             3.95 %   $ 2,539,926             3.27 %
Net interest income       $ 55,750                 $ 48,069        
Net interest rate spread (7)               1.77 %                 1.74 %
Net interest-earning assets (8) $ 633,016                 $ 670,131              
Net interest margin (9)               2.66 %                 2.65 %
Average interest-earning assets to                                  
interest-bearing liabilities               129.24 %                 138.27 %
                                       

  (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 $46.5 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the nine months ended September 30, 2023.
  (6) Includes $1.1 million of interest expense reclassified from money market to NOW/IOLA for the nine months ended September 30, 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
Other Data

  As of  
  September 30,     June 30,     March 31,     December 31,     September 30,  
  2024     2024     2024     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   1,067,248       1,074,979       1,096,214       1,101,191       1,233,111  
Common shares outstanding at end of period   23,819,463       23,811,732       23,790,497       23,785,520       23,653,600  
                             
Book value per common share $ 11.74     $ 11.45     $ 11.29     $ 11.20     $ 10.99  
Tangible book value per common share $ 11.74     $ 11.45     $ 11.29     $ 11.20     $ 10.99  
                                       

Contact:
Sergio Vaccaro
sergio.vaccaro@poncebank.net
718-931-9000

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