Ponce Financial Group, Inc. Reports First Quarter 2025 Results

/EIN News/ -- NEW YORK, April 25, 2025 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the first quarter of 2025.

First Quarter 2025 Highlights (Compared to Prior Periods):

• Net income available to common stockholders was $5.7 million, or $0.25 per diluted share for the three months ended March 31, 2025, as compared to net income available to common stockholders of $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024 and net income available to common stockholders of $2.4 million, or $0.11 per diluted share for the three months ended March 31, 2024. Total net income for the three months ended March 31, 2025 was $6.0 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended March 31, 2025.
• Included in the $5.7 million of net income available to common stockholders for the first quarter of 2025 results is $44.0 million in interest and dividend income, $2.4 million in non-interest income and $0.3 million in benefit for credit losses, offset by $21.8 million in interest expense, $16.9 million in non-interest expense, $2.0 million in provision for income taxes and $0.3 million in dividends on preferred shares.
• Net interest income of $22.2 million for the first quarter of 2025 increased $1.5 million, or 7.11%, from the prior quarter and increased $3.4 million, or 17.96%, from the same quarter last year. 
• Net interest margin was 2.98% for the first quarter of 2025, versus 2.80% for the prior quarter and 2.71% for the same quarter last year.
• Non-interest income for the three months ended March 31, 2025 was $2.4 million, an increase of $0.3 million, or 13.54%, from $2.1 million for the three months ended December 31, 2024, and an increase of $0.7 million, or 39.48%, from $1.7 million for the three months ended March 31, 2024.
• Non-interest expense for the three months ended March 31, 2025 was $16.9 million, a decrease of $0.6 million, or 3.30%, from $17.5 million for the three months ended December 31, 2024, and an increase of $0.1 million, or 0.61%, compared to $16.8 million for the three months ended March 31, 2024.
• Cash and equivalents were $129.9 million as of March 31, 2025, a decrease of $9.9 million, or 7.11%, from $139.8 million as of December 31, 2024.
• Securities totaled $461.6 million as of March 31, 2025, a decrease of $11.3 million, or 2.39%, from $472.9 million as of December 31, 2024 primarily due to regular principal payments and the call of one available-for-sale security in the amount of $1.0 million.
• Net loans receivable were $2.37 billion as of March 31, 2025, an increase of $84.3 million, or 3.69%, from $2.29 billion as of December 31, 2024.
• Deposits were $2.00 billion as of March 31, 2025, an increase of $120.1 million, or 6.37%, from $1.88 billion as of December 31, 2024.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “We continued executing well our strategy of focusing on net interest margin, operating expenses and fee income, which translated into several positive trends this quarter. Our net interest margin this quarter increased by 18 basis points, reflecting both our high-yielding construction loans and our decreasing borrowing costs. In fact, our loan yields rose by 9 basis points while our cost of funds decreased by 10 basis points. Our operating expenses have decreased quarter over quarter, and our non-interest income compares favorably to prior periods. All-in-all, a very good quarter in these turbulent and uncertain times."

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “Most of our high-yielding construction lending has an additional benefit – it qualifies as Deep Impact lending under the U.S. Treasury’s Emergency Capital Investment Program and serves to lower the dividends payable on our preferred stock to the U.S. Treasury. Importantly, our construction initiatives also reflect our conservative underwriting, high developer equity requirements and short duration. Of our 64 on-going projects, more than 43 percent already have at least a temporary certificate of occupancy and 80 percent are at least halfway through construction.” 

The table below indicate the Key Metrics at or for the three months ended:

		At or for the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
Performance Ratios:
Return on average assets(1)			0.77	%			0.38	%			0.33	%			0.45	%			0.33	%
Return on common equity(1)			7.97	%			3.76	%			3.06	%			4.60	%			3.61	%
Net interest margin(1) (2)			2.98	%			2.80	%			2.65	%			2.62	%			2.71	%
Non-interest expense to average assets(1)			2.19	%			2.25	%			2.19	%			2.28	%			2.35	%
Efficiency ratio(3)			68.70	%			75.63	%			80.87	%			80.09	%			82.56	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)			22.84	%			22.98	%			22.87	%			23.86	%			24.47	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)			12.51	%			12.44	%			12.28	%			12.71	%			12.98	%
Tier 1 capital to total assets (Ponce Financial Group)			16.84	%			17.70	%			17.81	%			17.88	%			17.59	%
Total capital to risk-weighted assets (Bank only)			21.38	%			21.47	%			21.61	%			22.47	%			22.79	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)			20.35	%			20.40	%			20.45	%			21.24	%			21.54	%
Tier 1 capital to total assets (Bank only)			15.61	%			15.81	%			16.19	%			16.70	%			16.26	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans			0.96	%			0.97	%			1.09	%			1.18	%			1.23	%
Allowance for credit losses on loans as a percentage of nonperforming loans			84.15	%			82.29	%			139.52	%			130.28	%			140.90	%
Net (charge-offs) recoveries to average outstanding loans(1)			(0.04	%)			(0.45	%)			(0.17	%)			(0.10	%)			(0.25	%)
Non-performing loans as a percentage of total assets			0.88	%			0.90	%			0.57	%			0.65	%			0.62	%
Other:
Number of offices			18				19				19				18				18
Number of full-time equivalent employees			211				218				228				227				233

(1) Annualized where appropriate.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

Summary of Results of Operations

Net income for the three months ended March 31, 2025 was $6.0 million compared to net income of $2.9 million for the three months ended December 31, 2024 and net income of $2.4 million for the three months ended March 31, 2024.

The $3.0 million increase of net income for the three months ended March 31, 2025 compared to the three months ended December 31, 2024 was attributed mainly to increases of $1.5 million in net interest income, an increase of $1.2 million in benefit for credit losses, a decrease of $0.6 million in non-interest expense and an increase of $0.3 million in non-interest income; partially offset by an increase of $0.5 million in provision for income taxes.

The $3.5 million increase of net income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was largely due to increases of $3.4 million in net interest income, $0.7 million in non-interest income and $0.3 million in benefit for credit losses, partially offset by increases of $0.7 million in provision for income taxes and $0.1 million in non-interest expense

Net Interest Income and Net Margin

Net interest income for the three months ended March 31, 2025, increased $1.5 million, or 7.11%, to $22.2 million compared to $20.7 million for the three months ended December 31, 2024 and increased $3.4 million, or 17.96%, compared to $18.8 million for the three months ended March 31, 2024.

The $1.5 million increase in net interest income from the three months ended December 31, 2024 was attributable to an increase of $1.1 million in total interest and dividend income and a decrease of $0.4 million in total interest expense.

The $3.4 million increase in net interest income from the three months ended March 31, 2024 was attributable to an increase of $4.3 million in total interest and dividend income, offset by an increase of $0.9 million in total interest expense.

For the three months ended March 31, 2025, benefit for credit losses amounted to $0.3 million, compared to $0.9 million in provision for credit losses for the prior quarter and a credit loss benefit on loans of less than $0.1 million during the first quarter of 2024.

Net interest margin was 2.98% for the three months ended March 31, 2025 compared to 2.80% for the prior quarter, an increase of 18bps and 2.71% for the same period last year, an increase of 27bps.

Non-interest Income

Non-interest income for the three months ended March 31, 2025, was $2.4 million, an increase of $0.3 million, or 13.54%, compared to $2.1 million for the three months ended December 31, 2024 and an increase of $0.7 million, or 39.48%, compared to $1.7 million for the three months ended March 31, 2024.

The $0.3 million increase in non-interest income from the three months ended December 31, 2024 was largely attributable to increases of $0.4 million in late and prepayment charges and $0.3 million in income on sale of SBA loans, partially offset by decreases of $0.2 million in other non-interest income and $0.1 million in income on sale of mortgage loans.

The $0.7 million increase in non-interest income from the three months ended March 31, 2024 was largely attributable to increases of $0.4 million in income on sale of SBA loans and $0.3 million in late and prepayment charges, partially offset by a decrease of $0.2 million in income on the sale of mortgage loans.

Non-interest Expense

Non-interest expense for the three months ended March 31, 2025, was $16.9 million, a decrease of $0.6 million, or 3.30%, compared to $17.5 million for the three months ended December 31, 2024 and an increase of $0.1 million, or 0.61%, compared to $16.8 million for the three months ended March 31, 2024.

The $0.6 million decrease in non-interest expense from the three months ended December 31, 2024 was mainly attributable to decreases of $0.3 million in professional fees, $0.2 million in marketing and promotional expenses, $0.2 million in direct loan expenses, $0.1 million in office supplies, telephone and postage, partially offset by an increase of $0.1 million in compensation and benefits.

The $0.1 million increase in non-interest expense from the three months ended March 31, 2024 was mainly attributable to increases of $0.5 million in other operating expense and $0.2 million in occupancy and equipment, partially offset by decreases of $0.4 million in professional fees and $0.3 million in direct loan expenses.

Credit Quality:

Non-performing loans were $32.0 million at March 31, 2025 compared to $32.1 million at December 31, 2024 and $22.4 million at March 31, 2024.

During the three months ended March 31, 2025, a credit loss benefit of $0.3 million on loans was recorded, consisting of $0.7 million charged on the funded portion and a benefit of $1.0 million on the unfunded portion on loans. During the three months ended December 31, 2024, a credit loss provision of $0.9 million on loans were recorded, consisting of $1.1 million charged on the funded portion and a benefit of $0.2 million on unfunded portion on loans. During the three months ended March 31, 2024, a credit loss benefit of $0.1 million on loans were recorded, consisting of $0.3 million benefit on the funded portion and a $0.2 million charged on the on unfunded portion on loans.

Balance Sheet Summary

Total assets increased $49.9 million, or 1.64%, to $3.09 billion as of March 31, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $84.3 million in net loans receivable, $1.2 million in accrued interest receivable and $0.4 million in right of use assets, partially offset by decreases of $9.9 million in cash and cash equivalents, $9.9 million in held-to-maturity securities, $8.4 million in other assets, $3.4 million in Federal Home Loan Bank of New York stock, $2.2 million in mortgage loans held for sale and $1.4 million in available-for-sale securities.

Total liabilities increased $41.5 million, or 1.64%, to $2.58 billion as of March 31, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to an increase of $120.1 million in deposits, $2.6 million in advance payments by borrowers for taxes, $0.9 million in accrued interest payable, $0.4 million in operating lease liabilities, partially offset by decreases of $75.0 million in borrowings and $7.5 million in other liabilities.

Total stockholders’ equity increased $8.4 million, or 1.66%, to $513.9 million as of March 31, 2025, from $505.5 million as of December 31, 2024. The $8.4 million increase in stockholders’ equity was largely attributable to $6.0 million in net income, $1.8 million in other comprehensive income, $0.5 million impact to additional paid in capital as a result of share-based compensation and $0.4 million from release of ESOP shares, offset by $0.3 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’s loans; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank’s market area; Ponce Bank’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

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

		As of
		March 31,				December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
ASSETS
Cash and due from banks:
Cash		$	32,113			$	35,478			$	32,061			$	23,128			$	29,972
Interest-bearing deposits			97,780				104,361				123,751				80,038				104,752
Total cash and cash equivalents			129,893				139,839				155,812				103,166				134,724
Available-for-sale securities, at fair value			103,570				104,970				111,005				113,125				116,044
Held-to-maturity securities, at amortized cost			358,024				367,938				403,736				442,113				452,955
Placement with banks			249				249				249				249				249
Mortgage loans held for sale, at fair value			8,567				10,736				9,566				37,764				7,860
Loans receivable, net			2,370,931				2,286,599				2,180,331				2,022,173				1,981,428
Accrued interest receivable			19,008				17,771				16,890				17,441				18,063
Premises and equipment, net			16,417				16,794				16,843				16,976				17,396
Right of use assets			29,496				29,093				29,785				30,349				31,021
Federal Home Loan Bank of New York stock (FHLBNY), at cost			25,807				29,182				28,515				23,972				23,892
Deferred tax assets			11,629				12,074				11,845				13,172				13,919
Other assets			16,245				24,693				51,392				21,507				21,151
Total assets		$	3,089,836			$	3,039,938			$	3,015,969			$	2,842,007			$	2,818,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits		$	2,004,947			$	1,884,864			$	1,870,323			$	1,606,097			$	1,585,784
Operating lease liabilities			31,126				30,696				31,343				31,861				32,486
Accrued interest payable			4,628				3,712				2,918				6,820				4,218
Advance payments by borrowers for taxes and insurance			12,901				10,349				13,733				10,838				13,245
Borrowings			521,100				596,100				580,421				680,421				680,421
Other liabilities			1,248				8,717				12,642				8,313				8,866
Total liabilities			2,575,950				2,534,438				2,511,380				2,344,350				2,325,020
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized			225,000				225,000				225,000				225,000				225,000
Common stock, $0.01 par value; 200,000,000 shares authorized			249				249				249				249				249
Treasury stock, at cost			(7,641	)			(7,707	)			(9,445	)			(9,519	)			(9,702	)
Additional paid-in-capital			207,888				207,319				208,478				207,934				207,584
Retained earnings			113,432				107,754				105,103				102,951				99,834
Accumulated other comprehensive loss			(13,515	)			(15,297	)			(12,686	)			(16,557	)			(16,590	)
Unearned compensation ─ ESOP			(11,527	)			(11,818	)			(12,110	)			(12,401	)			(12,693	)
Total stockholders' equity			513,886				505,500				504,589				497,657				493,682
Total liabilities and stockholders' equity		$	3,089,836			$	3,039,938			$	3,015,969			$	2,842,007			$	2,818,702

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

		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
Interest and dividend income:
Interest on loans receivable		$	37,136			$	35,622			$	32,945			$	31,281			$	30,664
Interest on deposits due from banks			1,668				1,783				2,430				1,542				2,911
Interest and dividend on securities and FHLBNY stock			5,193				5,481				5,918				5,969				6,091
Total interest and dividend income			43,997				42,886				41,293				38,792				39,666
Interest expense:
Interest on certificates of deposit			7,754				8,104				6,926				6,358				6,380
Interest on other deposits			8,554				8,476				8,519				7,389				6,540
Interest on borrowings			5,486				5,576				6,825				7,141				7,923
Total interest expense			21,794				22,156				22,270				20,888				20,843
Net interest income			22,203				20,730				19,023				17,904				18,823
(Benefit) provision for credit losses(1)			(285	)			897				537				(867	)			(16	)
Net interest income after (benefit) provision for credit losses			22,488				19,833				18,486				18,771				18,839
Non-interest income:
Service charges and fees			525				500				508				492				473
Brokerage commissions			4				44				—				9				8
Late and prepayment charges			697				318				77				426				359
Income on sale of mortgage loans			148				254				218				274				302
Income on sale of SBA loans			404				148				—				—				—
Other			603				833				348				1,057				565
Total non-interest income			2,381				2,097				1,151				2,258				1,707
Non-interest expense:
Compensation and benefits			7,780				7,668				7,674				7,724				7,844
Occupancy and equipment			3,913				3,863				3,786				3,564				3,667
Data processing expenses			1,152				1,143				1,099				1,013				1,127
Direct loan expenses			388				617				573				633				732
Insurance and surety bond premiums			315				293				292				263				253
Office supplies, telephone and postage			170				294				222				233				249
Professional fees			1,364				1,703				1,351				1,369				1,723
Microloans recoveries			—				(29	)			(54	)			(65	)			(53	)
Marketing and promotional expenses			83				289				180				145				100
Federal deposit insurance and regulatory assessment(2)			461				418				392				428				389
Other operating expenses(2)			1,262				1,206				1,051				1,333				755
Total non-interest expense(1)			16,888				17,465				16,566				16,640				16,786
Income before income taxes			7,981				4,465				3,071				4,389				3,760
Provision for income taxes			2,022				1,532				638				1,197				1,346
Net income		$	5,959			$	2,933			$	2,433			$	3,192			$	2,414
Dividends on preferred shares			281				282				281				75				—
Net income available to common stockholders		$	5,678			$	2,651			$	2,152			$	3,117			$	2,414
Earnings per common share:
Basic		$	0.25			$	0.12			$	0.10			$	0.14			$	0.11
Diluted		$	0.25			$	0.12			$	0.10			$	0.14			$	0.11
Weighted average common shares outstanding:
Basic			22,662,916				22,528,160				22,446,009				22,409,803				22,353,492
Diluted			22,876,740				22,807,644				22,612,028				22,419,309				22,366,728

(1) For the three months ended December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, (benefit) provision for contingencies in the amounts of ($0.2 million), ($0.3 million), ($0.5 million) and $0.2 million were reclassified from total non-interest expense to (benefit) provision for credit losses.

(2) For the three months ended September 30, 2024, June 30, 2024, and March 31, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each periods.


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

		For the Three Months Ended March 31,
		2025				2024				Variance $				Variance %
Interest and dividend income:
Interest on loans receivable		$	37,136			$	30,664			$	6,472				21.11	%
Interest on deposits due from banks			1,668				2,911				(1,243	)			(42.70	%)
Interest and dividend on securities and FHLBNY stock			5,193				6,091				(898	)			(14.74	%)
Total interest and dividend income			43,997				39,666				4,331				10.92	%
Interest expense:
Interest on certificates of deposit			7,754				6,380				1,374				21.54	%
Interest on other deposits			8,554				6,540				2,014				30.80	%
Interest on borrowings			5,486				7,923				(2,437	)			(30.76	%)
Total interest expense			21,794				20,843				951				4.56	%
Net interest income			22,203				18,823				3,380				17.96	%
Benefit for credit losses (1)			(285	)			(16	)			(269	)			1,681.25	%
Net interest income after benefit for credit losses			22,488				18,839				3,649				19.37	%
Non-interest income:
Service charges and fees			525				473				52				10.99	%
Brokerage commissions			4				8				(4	)			(50.00	%)
Late and prepayment charges			697				359				338				94.15	%
Income on sale of mortgage loans			148				302				(154	)			(50.99	%)
Income on sale of SBA loans			404				—				404				—	%
Other			603				565				38				6.73	%
Total non-interest income			2,381				1,707				674				39.48	%
Non-interest expense:
Compensation and benefits			7,780				7,844				(64	)			(0.82	%)
Occupancy and equipment			3,913				3,667				246				6.71	%
Data processing expenses			1,152				1,127				25				2.22	%
Direct loan expenses			388				732				(344	)			(46.99	%)
Insurance and surety bond premiums			315				253				62				24.51	%
Office supplies, telephone and postage			170				249				(79	)			(31.73	%)
Professional fees			1,364				1,723				(359	)			(20.84	%)
Microloans recoveries			—				(53	)			53				(100.00	%)
Marketing and promotional expenses			83				100				(17	)			(17.00	%)
Federal deposit insurance and regulatory assessments (2)			461				389				72				18.51	%
Other operating expenses (2)			1,262				755				507				67.15	%
Total non-interest expense (1)			16,888				16,786				102				0.61	%
Income before income taxes			7,981				3,760				4,221				112.26	%
Provision for income taxes			2,022				1,346				676				50.22	%
Net income		$	5,959			$	2,414			$	3,545				146.85	%
Dividends on preferred shares			281				—				281				—	%
Net income available to common stockholders		$	5,678			$	2,414			$	3,264				135.21	%
Earnings per common share:
Basic		$	0.25			$	0.11			$	0.14				127.27	%
Diluted		$	0.25			$	0.11			$	0.14				127.27	%
Weighted average common shares outstanding:
Basic			22,662,916				22,353,492				309,424				1.38	%
Diluted			22,876,740				22,366,728				510,012				2.28	%

(1) For the three months ended March 31, 2024, provision for contingencies in the amount of $0.2 million were reclassified from total non-interest expense to benefit for credit losses.

(2) For the three months ended March 31, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.  

Ponce Financial Group, Inc. and Subsidiaries
Loans Receivable excluding Mortgage Loans Held for Sale

		As of
		March 31,								December 31,								September 30,								June 30,								March 31,
		2025								2024								2024								2024								2024
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	325,866				13.62	%		$	330,053				14.30	%		$	332,380				15.09	%		$	337,292				16.49	%		$	339,331				16.92	%
Owner-Occupied			137,676				5.75	%			142,363				6.17	%			145,065				6.59	%			147,485				7.21	%			150,842				7.52	%
Multifamily residential			675,541				28.24	%			670,159				29.04	%			678,029				30.78	%			545,323				26.66	%			545,825				27.22	%
Nonresidential properties			390,681				16.33	%			389,898				16.89	%			383,277				17.40	%			337,583				16.51	%			327,350				16.32	%
Construction and land			815,425				34.08	%			733,660				31.79	%			631,461				28.67	%			641,879				31.39	%			608,665				30.35	%
Total mortgage loans			2,345,189				98.02	%			2,266,133				98.19	%			2,170,212				98.53	%			2,009,562				98.26	%			1,972,013				98.33	%
Non-mortgage loans:
Business loans			46,329				1.94	%			40,849				1.77	%			28,499				1.29	%			30,222				1.48	%			26,664				1.33	%
Consumer loans(1)			997				0.04	%			1,038				0.04	%			4,021				0.18	%			5,305				0.26	%			6,741				0.34	%
Total non-mortgage loans			47,326				1.98	%			41,887				1.81	%			32,520				1.47	%			35,527				1.74	%			33,405				1.67	%
Total loans, gross			2,392,515				100.00	%			2,308,020				100.00	%			2,202,732				100.00	%			2,045,089				100.00	%			2,005,418				100.00	%
Net deferred loan origination costs			1,390								1,081								1,565								1,145								674
Allowance for credit losses on loans			(22,974	)							(22,502	)							(23,966	)							(24,061	)							(24,664	)
Loans, net		$	2,370,931							$	2,286,599							$	2,180,331							$	2,022,173							$	1,981,428

(1)   As of September 30, 2024, June 30, 2024, and March 31, 2024, consumer loans include $3.0 million, $4.3 million, and $5.7 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.

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

		For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2024				2024				2024				2024				2024
		(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period		$	22,502			$	23,966			$	24,061			$	24,664			$	26,154
Provision (benefit) for credit losses on loans			731				1,090				801				(120	)			(255	)
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned			(38	)			—				—				—				—
Owner occupied			—				—				—				—				—
Multifamily residences			—				—				—				—				—
Nonresidential properties			—				—				(7	)			—				—
Construction and land			—				—				—				—				—
Non-mortgage loans:
Business			(222	)			(232	)			(450	)			—				(52	)
Consumer			(3	)			(2,465	)			(634	)			(747	)			(1,302	)
Total charge-offs			(263	)			(2,697	)			(1,091	)			(747	)			(1,354	)
Recoveries:
Non-mortgage loans:
Business			4				—				1				7				1
Consumer			—				143				194				257				118
Total recoveries			4				143				195				264				119
Net (charge-offs) recoveries			(259	)			(2,554	)			(896	)			(483	)			(1,235	)
Allowance for credit losses on loans at end of the period		$	22,974			$	22,502			$	23,966			$	24,061			$	24,664

Ponce Financial Group, Inc. and Subsidiaries
Deposits

		As of
		March 31,								December 31,								September 30,								June 30,								March 31,
		2025								2024								2024								2024								2024
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Demand		$	212,139				10.58	%		$	169,178				8.98	%		$	182,737				9.78	%		$	178,125				11.09	%		$	191,541				12.07	%
Interest-bearing deposits:
NOW/IOLA accounts			74,430				3.71	%			62,616				3.32	%			71,445				3.82	%			81,178				5.05	%			73,202				4.62	%
Money market accounts			692,753				34.55	%			636,219				33.75	%			660,168				35.30	%			502,255				31.27	%			482,344				30.42	%
Reciprocal deposits			141,838				7.07	%			130,677				6.93	%			94,145				5.03	%			109,945				6.85	%			97,718				6.16	%
Savings accounts			106,122				5.29	%			105,870				5.62	%			108,941				5.82	%			109,694				6.83	%			112,713				7.11	%
Total NOW, money market, reciprocal and savings accounts			1,015,143				50.62	%			935,382				49.62	%			934,699				49.97	%			803,072				50.00	%			765,977				48.31	%
Certificates of deposit of $250K or more(1)			219,721				10.96	%			204,293				10.84	%			210,262				11.25	%			189,683				11.82	%			183,478				11.57	%
Brokered certificates of deposit(2)			84,531				4.22	%			94,531				5.02	%			94,531				5.05	%			94,614				5.89	%			94,689				5.97	%
Listing service deposits(2)			6,140				0.31	%			7,376				0.39	%			7,376				0.39	%			9,361				0.58	%			12,688				0.80	%
All other certificates of deposit less than $250K(1)			467,273				23.31	%			474,104				25.15	%			440,718				23.56	%			331,242				20.62	%			337,411				21.28	%
Total certificates of deposit			777,665				38.80	%			780,304				41.40	%			752,887				40.25	%			624,900				38.91	%			628,266				39.62	%
Total interest-bearing deposits			1,792,808				89.42	%			1,715,686				91.02	%			1,687,586				90.22	%			1,427,972				88.91	%			1,394,243				87.93	%
Total deposits		$	2,004,947				100.00	%		$	1,884,864				100.00	%		$	1,870,323				100.00	%		$	1,606,097				100.00	%		$	1,585,784				100.00	%

(1) As of September 30, 2024, June 30, 2024 and March 31, 2024, $36.2 million, $33.5 million and $37.2 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.

(2) There were no individual listing service deposits amounting to $250,000 or more. There was one brokered certificates of deposit in the amount of $1.5 million amounting to $250,000 or more. All other brokered certificates of deposit individually amounted to less than $250,000.

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets

		As of Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
		(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned		$	1,052			$	436			$	436			$	436			$	399
Owner occupied			1,423				1,423				1,423				1,423				1,426
Multifamily residential			9,788				10,271				4,685				5,754				4,098
Nonresidential properties			—				—				824				828				441
Construction and land			14,159				14,158				8,907				8,907				10,277
Non-mortgage loans:
Business			170				343				180				396				146
Consumer			—				—				—				—				—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty)(1)		$	26,592			$	26,631			$	16,455			$	17,744			$	16,787
Non-accruing modifications to borrowers experiencing financial difficulty(1):
Mortgage loans:
1-4 family residential
Investor owned		$	279			$	279			$	278			$	277			$	270
Owner occupied			431				435				444				448				447
Multifamily residential			—				—				—				—				—
Nonresidential properties			—				—				—				—				—
Construction and land			—				—				—				—				—
Non-mortgage loans:
Business			—				—				—				—				—
Consumer			—				—				—				—				—
Total non-accruing modifications to borrowers experiencing financial difficulty(1)			710				714				722				725				717
Total non-accrual loans(2)		$	27,302			$	27,345			$	17,177			$	18,469			$	17,504
Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned		$	1,792			$	1,807			$	1,821			$	1,830			$	1,850
Owner occupied			2,038				2,062				2,116				2,171				2,288
Multifamily residential			—				—				—				—				—
Nonresidential properties			644				652				672				707				748
Construction and land			—				—				—				—				—
Non-mortgage loans:
Business			209				215				222				—				—
Consumer			—				—				—				—				—
Total accruing modifications to borrowers experiencing financial difficulty(1)		$	4,683			$	4,736			$	4,831			$	4,708			$	4,886
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty(1)		$	31,985			$	32,081			$	22,008			$	23,177			$	22,390
Total non-performing assets to total assets			0.88	%			0.90	%			0.57	%			0.65	%			0.62	%

(1) Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

(2) Includes nonperforming mortgage loans held for sale.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

		For the Three Months Ended March 31,
		2025											2024
		Average											Average
		Outstanding								Average			Outstanding								Average
		Balance				Interest				Yield/Rate(1)			Balance				Interest				Yield/Rate(1)
		(Dollars in thousands)
Interest-earning assets:
Loans(2)		$	2,369,433			$	37,136			6.36	%		$	1,979,263			$	30,664			6.23	%
Securities(3)			467,560				4,521			3.92	%			576,235				5,619			3.92	%
Other(4)			186,021				2,340			5.10	%			238,432				3,383			5.71	%
Total interest-earning assets			3,023,014				43,997			5.90	%			2,793,930				39,666			5.71	%
Non-interest-earning assets			109,166											106,566
Total assets		$	3,132,180										$	2,900,496
Interest-bearing liabilities:
NOW/IOLA		$	72,354			$	115			0.64	%		$	82,849			$	218			1.06	%
Money market			827,948				8,411			4.12	%			544,563				6,292			4.65	%
Savings			105,171				26			0.10	%			113,501				28			0.10	%
Certificates of deposit			794,270				7,754			3.96	%			629,528				6,380			4.08	%
Total deposits			1,799,743				16,306			3.67	%			1,370,441				12,918			3.79	%
Advance payments by borrowers			12,445				2			0.07	%			12,886				2			0.06	%
Borrowings			568,601				5,486			3.91	%			771,070				7,923			4.13	%
Total interest-bearing liabilities			2,380,789				21,794			3.71	%			2,154,397				20,843			3.89	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			196,627				—							198,862				—
Other non-interest-bearing liabilities			43,915				—							54,061				—
Total non-interest-bearing liabilities			240,542				—							252,923				—
Total liabilities			2,621,331				21,794							2,407,320				20,843
Total equity			510,849											493,176
Total liabilities and total equity		$	3,132,180							3.71	%		$	2,900,496							3.89	%
Net interest income						$	22,203										$	18,823
Net interest rate spread(5)										2.19	%										1.82	%
Net interest-earning assets(6)		$	642,225										$	639,533
Net interest margin(7)										2.98	%										2.71	%
Average interest-earning assets to interest-bearing liabilities										126.98	%										129.69	%

(1) Annualized where appropriate.
(2) Loans include loans and mortgage loans held for sale, at fair value.
(3) Securities include available-for-sale securities and held-to-maturity securities.
(4) Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(6) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(7) Net interest margin represents net interest income divided by average total interest-earning assets.


Ponce Financial Group, Inc. and Subsidiaries
Other Data

		As of
		March 31,				December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
Other Data
Common shares issued			24,886,711				24,886,711				24,886,711				24,886,711				24,886,711
Less treasury shares			920,520				925,497				1,067,248				1,074,979				1,096,214
Common shares outstanding at end of period			23,966,191				23,961,214				23,819,463				23,811,732				23,790,497
Book value per common share		$	12.05			$	11.71			$	11.74			$	11.45			$	11.29
Tangible book value per common share		$	12.05			$	11.71			$	11.74			$	11.45			$	11.29

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