PONCE FINANCIAL GROUP INC Stock Price, News & Analysis

Ponce Financial Group (NASDAQ: PDLB) reported a net income of $0.3 million, or $0.01 per diluted share, for Q1 2023, a notable recovery from net losses of $9.2 million in Q4 2022 and $6.8 million in Q1 2022. The increase was largely driven by an improved provision recovery related to Grain Technology. Net interest income fell to $15.2 million, down 5.7% from the previous quarter and 12.1% year-over-year, primarily due to rising funding costs. The net interest margin decreased to 2.75%, while total deposits increased by 6.74% to $1.34 billion. Cash and equivalents surged 239.75% to $184.7 million. The company’s total assets rose 9.84% to $2.54 billion. Ponce Financial also highlighted its commitment to investing in technology and community support, being awarded a $3.7 million grant from the U.S. Treasury.

Ponce Financial Group (NASDAQ: PDLB) announced that Ponce Bank has received a $3.7 million grant from the U.S. Treasury under the Community Development Financial Institutions (CDFI) Equitable Recovery Program. The grant will support CDFIs in helping low-income communities recover from COVID-19 impacts. The funds are set to be disbursed in June 2023 and will be used for eligible activities as per the program guidelines. This grant is part of a larger initiative, with $1.73 billion awarded to 603 CDFIs, aimed at facilitating investments in small businesses, home loans, and community resources. Ponce Bank, founded in the Bronx in 1960, has a history of serving low-to-moderate income communities with its network of branches across New York City.

Ponce Financial Group, as the successor of PDL Community Bancorp (NASDAQ: PDLB), reported a net loss of ($9.2) million for Q4 2022, improving from a net loss of ($14.7) million in Q3 2022, but a decline from a net income of $15.0 million in Q4 2021. The net interest income decreased by 8.21% to $16.2 million, influenced by rising funding costs. Total assets surged by 39.82% to $2.31 billion, largely due to securities purchases funded by a $225 million equity raise. The allowance for loan losses increased to $15.4 million, with a focus on mitigating risks from consumer microloans. The company is winding down its partnership with Grain while exploring new partnerships.

Ponce Financial Group (NASDAQ: PDLB) reported a net loss of $14.7 million or $0.64 per diluted share for Q3 2022, compared to net income of $771,000 in Q2 2022. The loss was primarily due to $17.5 million in pre-tax charges related to Grain Technologies, Inc., including loan write-offs. Despite this, net interest income rose to $17.6 million, a 14.06% increase year-over-year, supported by a growing securities portfolio. Total assets grew by 30.53% to $2.16 billion, with stockholders' equity surging 164.55% to $500.7 million, bolstered by capital from the U.S. Treasury.

Ponce Financial Group (NASDAQ: PDLB) has established an Environmental, Social & Governance (ESG) Committee, led by its Executive Management Team and directly reporting to the Board. The Committee aims to oversee the Company’s ESG initiatives, beginning with a company-wide energy infrastructure assessment to enhance sustainability and reduce costs. Additionally, an ESG materiality assessment is underway, expected to be completed by Q4 2022. CEO Carlos P. Naudon emphasized the benefits of ESG integration for strategy and risk management, particularly in serving underbanked communities affected by climate change.

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.