PONCE FINANCIAL GROUP INC Stock Price, News & Analysis

Ponce Financial Group, as the successor of PDL Community Bancorp (NASDAQ: PDLB), reported a net income of $771,000 ($0.03/share) for Q2 2022, recovering from a $6.8 million net loss in Q1 2022. Highlights include a $225 million preferred stock issuance to the U.S. Treasury and increased net loans receivable by $19.2 million. However, net interest income decreased by $1.9 million to $15.5 million. Total assets rose to $2.04 billion, while total stockholders’ equity surged by 173.75% to $518.1 million, primarily due to new capital infusion.

Ponce Financial Group, Inc. (NASDAQ: PDLB) announced the completion of a $225 million private placement of Senior Non-Cumulative Perpetual Preferred Stock, Series A, to the U.S. Department of the Treasury under the Emergency Capital Investment Program (ECIP) on June 7, 2022. This investment aims to bolster lending to underserved communities affected by the COVID-19 pandemic. The initial dividend rate is zero for the first two years, then adjusts annually between 0.50% and 2.00%. The Preferred Stock is redeemable after June 15, 2027.

Ponce Financial Group announced the appointment of Sergio Vaccaro as Chief Financial Officer, effective June 1, 2022. Vaccaro, formerly CFO at HSBC's Private Bank Americas, brings 27 years of accounting experience to the role. Frank Perez transitions to Chief Investor Relations Officer, a position emphasizing community engagement. CEO Carlos P. Naudon expressed gratitude for Perez's leadership during mutual-to-stock conversion efforts and highlighted the strategic importance of Vaccaro's hiring for the company's growth. The management team aims to enhance the bank's investment appeal and operational execution.

SLB Capital Advisors successfully guided Ponce Financial Group in a significant sale leaseback transaction involving its Bronx headquarters and New York metro bank branches. This strategic move unlocked approximately $0.89 per share in book value and facilitated an additional $160 million in lending capacity. Ponce Bank aims to enhance community support while capturing the benefits of favorable market conditions for sale leasebacks. The transaction illustrates a trend where well-capitalized banks are leveraging real estate value to bolster their core business operations.

Ponce Financial Group, Inc. (NASDAQ: PDLB) reported a net loss of $6.8 million for Q1 2022, a stark contrast to a net income of $15 million in Q4 2021. This loss resulted from non-interest income declining by $16.9 million and a significant increase in non-interest expenses by $12.2 million. Meanwhile, net interest income rose to $17.3 million, marking a 34.5% increase year-over-year. Total assets decreased by 3.6% to $1.59 billion, while stockholders' equity surged 58.3% to $299.6 million, mainly due to the recent conversion and reorganization.

Ponce Financial Group, Inc. has appointed Mr. Luis Gonzalez, Jr. as Executive Vice President and Chief Operating Officer, effective April 1, 2022. With 15 years of experience at the Office of the Comptroller of the Currency, Mr. Gonzalez is expected to positively impact the management of Ponce Bank. CEO Carlos P. Naudon and Executive Chairman Steven A. Tsavaris praised his industry knowledge and community focus. Ponce Financial Group serves as the holding company for Ponce Bank, which is committed to minority and community development lending.

Ponce Financial Group announced the appointment of James Perez to its Board of Directors during a meeting on March 17, 2022. This expansion increases the board size from seven to eight members. Perez, a well-respected figure in the New York/New Jersey business community, has over 32 years of banking experience with Ponce Bank and extensive expertise in retail and real estate sectors. His nomination for election at the upcoming Annual Meeting on May 25, 2022, aims to enhance the company's focus on minority and community-based initiatives, as emphasized by both the CEO and Executive Chairman.

Ponce Financial Group, Inc. (NASDAQ: PDLB) reported a significant rise in financial performance for Q4 2021, with net income soaring to $15.0 million, compared to $2.1 million in Q3 2021 and $1.6 million in Q4 2020. This increase was largely driven by a $15.4 million gain from the sale of real properties. Net interest income also rose by 43.8% year-over-year to $16.8 million, reflecting improved interest rates. Total assets increased by 22.0% to $1.65 billion, and stockholders’ equity grew by 18.6% to $189.3 million. As of December 31, 2021, non-performing loans slightly decreased to $11.4 million.