Ponce Financial Group, Inc. Reports First Quarter 2026 Results
Rhea-AI Summary
Ponce Financial Group (Nasdaq: PDLB) reported first-quarter 2026 results. Net income available to common was $8.3M, or $0.36 diluted EPS; total net income was $8.6M. Net interest income was $28.2M and net interest margin 3.61%. Loans were $2.70B and deposits $2.13B. Total assets rose to $3.30B; non-performing assets were $23.6M (0.62% of assets). Book value per share was $13.49, up 12% year-over-year. Capital ratios remain well above regulatory requirements.
AI-generated analysis. Not financial advice.
Positive
- Net interest income +27.13% year-over-year to $28.2M
- Net interest margin 3.61%, up 63 bps year-over-year
- Net loans receivable +3.82% quarter-over-quarter to $2.70B
- Deposits +4.26% quarter-over-quarter to $2.13B
- Total assets +2.38% quarter-over-quarter to $3.30B
- Book value per share +12% year-over-year to $13.49
- Total capital ratio (Ponce Financial Group) 21.23%
Negative
- Net income available to common decreased from $9.9M in prior quarter to $8.3M
- Non-interest income fell 41.3% quarter-over-quarter to $2.0M
- Provision for credit losses increased to $1.7M from $1.1M prior quarter
- Efficiency ratio widened to 56.96% from 52.95% quarter-over-quarter
News Market Reaction – PDLB
On the day this news was published, PDLB gained 1.03%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PDLB was up 0.46% while peers showed mixed moves: BWFG +1.55%, USCB +0.41%, versus PCB -0.54%, PLBC -0.06%, RBB -0.91%. The lack of uniform direction points to a stock-specific reaction rather than a broad regional‑bank move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 27 | Q4 2025 earnings | Positive | +0.8% | Strong Q4 and full-year 2025 profit growth and solid net interest margin. |
| Oct 24 | Q3 2025 earnings | Positive | +1.6% | Higher Q3 net income, expanding net interest income, and loan/deposit growth. |
| Jul 25 | Q2 2025 earnings | Positive | +4.7% | Strong YoY earnings and margin gains with asset and loan growth. |
| Apr 25 | Q1 2025 earnings | Positive | +6.9% | Improving earnings, net interest income, and fee income with balance growth. |
| Jan 28 | Q4 2024 earnings | Positive | +0.5% | Full-year 2024 profit inflection with NIM expansion and strong loan growth. |
Recent earnings releases have generally been received positively, with all five past earnings events followed by positive next-day moves, suggesting the market has rewarded the bank’s improving profitability and margins.
Over the past five earnings cycles, Ponce has shown steady fundamental improvement. Net income available to common stockholders rose from $2.7M in Q4 2024 to $9.9M in Q4 2025, while net interest margin climbed from 2.80% in Q4 2024 to 3.57% in Q4 2025. Loans and deposits have expanded, and capital ratios stayed well above regulatory minimums. Today’s Q1 2026 results extend those trends with higher net interest income, further margin expansion, and continued balance-sheet growth.
Historical Comparison
Across the last five earnings releases, PDLB’s average next-day move was about 2.91%, with all reactions positive, indicating a history of constructive market responses to its financial updates.
Successive earnings reports have shown rising net income, expanding net interest margin, and balance-sheet growth, with capital ratios consistently above regulatory thresholds.
Market Pulse Summary
This announcement details Q1 2026 earnings with net income to common of $8.3M, net interest income of $28.2M, and net interest margin rising to 3.61%. Loans reached $2.70B and deposits $2.13B, while non‑performing loans fell to 0.62% of total assets and capital ratios such as the 21.23% total capital ratio remained strong. Investors may watch future quarters for trends in non‑interest income, operating expenses, and credit provisioning.
Key Terms
net interest margin financial
return on average assets financial
return on common equity financial
efficiency ratio financial
common equity tier 1 capital financial
tier 1 capital financial
allowance for credit losses financial
emergency capital investment program regulatory
AI-generated analysis. Not financial advice.
NEW YORK, April 24, 2026 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (Nasdaq: PDLB), the holding company for Ponce Bank, National Association ("Ponce Bank" or the “Bank”), today announced results for the first quarter of 2026.
First Quarter 2026 Highlights (Compared to Prior Periods):
- Net income available to common stockholders was
$8.3 million , or$0.36 per diluted share for the three months ended March 31, 2026, as compared to net income available to common stockholders of$9.9 million , or$0.42 per diluted share for the three months ended December 31, 2025 and net income available to common stockholders of$5.7 million , or$0.25 per diluted share for the three months ended March 31, 2025. Total net income for the three months ended March 31, 2026 was$8.6 million . The Company paid dividends of$0.3 million on its preferred stock during the three months ended March 31, 2026. - Included in the
$8.3 million of net income available to common stockholders for the first quarter of 2026 results is$48.7 million in total interest and dividend income and$2.0 million in non-interest income, offset by$20.4 million in interest expense,$17.2 million in non-interest expense,$2.7 million in provision for income taxes,$1.7 million in provision for credit losses and$0.3 million in dividends on preferred shares. - Net interest income of
$28.2 million for the first quarter of 2026 increased$0.3 million , or1.05% , from the prior quarter and increased$6.0 million , or27.13% , from the same quarter last year. - Net interest margin was
3.61% for the first quarter of 2026, versus3.57% for the prior quarter and2.98% for the same quarter last year. - Cash and equivalents were
$117.2 million as of March 31, 2026, a decrease of$8.9 million , or7.06% , from$126.2 million as of December 31, 2025. - Securities totaled
$350.7 million as of March 31, 2026, a decrease of$14.5 million , or3.97% , from$365.2 million as of December 31, 2025 primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of$3.0 million . - Net loans receivable were
$2.70 billion as of March 31, 2026, an increase of$99.4 million , or3.82% , from$2.60 billion as of December 31, 2025. - Deposits were
$2.13 billion as of March 31, 2026, an increase of$87.2 million , or4.26% , from$2.05 billion as of December 31, 2025.
President and Chief Executive Officer’s Comments
Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “Our disciplined execution continues to serve Ponce well. Our diluted earnings per share of
Executive Chairman’s Comment
Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We’re pleased with our business activity during the quarter and by our loan and deposit growth. We continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program and we’re one quarter away from achieving 16 quarters of a cumulative deep impact lending percentage of more than
The table below indicates 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, | |||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||
| Performance Ratios: | |||||||||||||||||||
| Return on average assets (1) | 1.07 | % | 1.26 | % | 0.82 | % | 0.79 | % | 0.77 | % | |||||||||
| Return on common equity (1) | 10.37 | % | 12.50 | % | 8.10 | % | 7.88 | % | 7.97 | % | |||||||||
| Net interest margin (1) (2) | 3.61 | % | 3.57 | % | 3.30 | % | 3.27 | % | 2.98 | % | |||||||||
| Non-interest expense to average assets (1) | 2.14 | % | 2.06 | % | 2.10 | % | 2.18 | % | 2.19 | % | |||||||||
| Efficiency ratio (3) | 56.96 | % | 52.95 | % | 62.15 | % | 63.69 | % | 68.70 | % | |||||||||
| Capital Ratios: | |||||||||||||||||||
| Total capital to risk-weighted assets (Ponce Financial Group) | 21.23 | % | 23.00 | % | 24.08 | % | 22.65 | % | 22.84 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group) | 12.11 | % | 12.98 | % | 13.39 | % | 12.49 | % | 12.51 | % | |||||||||
| Tier 1 capital to total assets (Ponce Financial Group) | 17.22 | % | 17.27 | % | 17.33 | % | 17.13 | % | 16.84 | % | |||||||||
| Total capital to risk-weighted assets (Bank only) | 20.00 | % | 21.63 | % | 21.79 | % | 21.22 | % | 21.38 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets (Bank only) | 18.97 | % | 20.53 | % | 20.66 | % | 20.15 | % | 20.35 | % | |||||||||
| Tier 1 capital to total assets (Bank only) | 16.09 | % | 16.12 | % | 16.08 | % | 15.99 | % | 15.61 | % | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Allowance for credit losses on loans as a percentage of total loans | 0.96 | % | 0.97 | % | 0.98 | % | 0.97 | % | 0.96 | % | |||||||||
| Allowance for credit losses on loans as a percentage of nonperforming loans | 128.93 | % | 94.74 | % | 88.88 | % | 101.01 | % | 84.15 | % | |||||||||
| Net (charge-offs) recoveries to average outstanding loans (1) | (0.08 | %) | (0.13 | %) | (0.03 | %) | (0.04 | %) | (0.04 | %) | |||||||||
| Non-performing loans as a percentage of total assets | 0.62 | % | 0.83 | % | 0.88 | % | 0.76 | % | 0.88 | % | |||||||||
| Other: | |||||||||||||||||||
| Number of offices | 17 | 17 | 18 | 17 | 18 | ||||||||||||||
| Number of full-time equivalent employees | 218 | 216 | 209 | 206 | 211 | ||||||||||||||
(1) Annualized.
(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, 2026 was
The
The
Net Interest Income and Net Interest Margin
Net interest income for the three months ended March 31, 2026, increased
The
Net interest margin was
Non-interest Income
Non-interest income for the three months ended March 31, 2026, was
The
The
Non-interest Expense
Non-interest expense for the three months ended March 31, 2026 was
The
The
Credit Quality:
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were
During the three months ended March 31, 2026, a credit loss provision of
Balance Sheet Summary
Total assets increased
Total liabilities increased
Total stockholders’ equity increased
About Ponce Financial Group, Inc.
Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.’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. N.A. 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, Federal Home Loan Bank stock and Federal Reserve 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, N.A. operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank, N.A.’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 global economy, including negative changes that may arise from armed conflict and geopolitical instability; 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, N.A.’s market area; Ponce Bank, N.A.’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, | |||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks: | |||||||||||||||||||
| Cash | $ | 27,429 | $ | 28,511 | $ | 29,296 | $ | 35,767 | $ | 32,113 | |||||||||
| Interest-bearing deposits | 89,817 | 97,643 | 117,283 | 90,872 | 97,780 | ||||||||||||||
| Total cash and cash equivalents | 117,246 | 126,154 | 146,579 | 126,639 | 129,893 | ||||||||||||||
| Available-for-sale securities, at fair value | 87,150 | 92,196 | 94,822 | 96,562 | 103,570 | ||||||||||||||
| Held-to-maturity securities, at amortized cost | 263,514 | 272,982 | 285,125 | 336,879 | 358,024 | ||||||||||||||
| Placement with banks | 249 | 249 | 249 | 249 | 249 | ||||||||||||||
| Mortgage loans held for sale, at fair value | 2,127 | 3,388 | 5,794 | 5,703 | 8,567 | ||||||||||||||
| Loans receivable, net | 2,698,649 | 2,599,258 | 2,490,046 | 2,458,712 | 2,370,931 | ||||||||||||||
| Accrued interest receivable | 19,274 | 17,905 | 18,903 | 19,126 | 19,008 | ||||||||||||||
| Premises and equipment, net | 15,159 | 15,638 | 16,129 | 16,067 | 16,417 | ||||||||||||||
| Right of use assets | 27,633 | 27,583 | 28,295 | 28,806 | 29,496 | ||||||||||||||
| Federal Home Loan Bank of New York stock (FHLBNY), at cost | 28,180 | 29,309 | 25,945 | 26,620 | 25,807 | ||||||||||||||
| Federal Reserve Bank of New York stock (FRBNY), at cost | 10,706 | 10,698 | — | — | — | ||||||||||||||
| Deferred tax assets | 11,729 | 11,501 | 12,402 | 12,143 | 11,629 | ||||||||||||||
| Other assets | 19,141 | 17,109 | 32,790 | 26,363 | 16,245 | ||||||||||||||
| Total assets | $ | 3,300,757 | $ | 3,223,970 | $ | 3,157,079 | $ | 3,153,869 | $ | 3,089,836 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||
| Deposits | $ | 2,133,795 | $ | 2,046,635 | $ | 2,063,081 | $ | 2,053,151 | $ | 2,017,848 | |||||||||
| Borrowings | 571,100 | 596,100 | 521,100 | 536,100 | 521,100 | ||||||||||||||
| Operating lease liabilities | 29,429 | 29,353 | 30,028 | 30,501 | 31,126 | ||||||||||||||
| Accrued interest payable | 4,338 | 3,788 | 4,372 | 4,161 | 4,628 | ||||||||||||||
| Other liabilities | 10,732 | 6,545 | 8,663 | 8,868 | 1,248 | ||||||||||||||
| Total liabilities | 2,749,394 | 2,682,421 | 2,627,244 | 2,632,781 | 2,575,950 | ||||||||||||||
| Commitments and contingencies | |||||||||||||||||||
| Stockholders' Equity: | |||||||||||||||||||
| Preferred stock, | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | ||||||||||||||
| Common stock, | 249 | 249 | 249 | 249 | 249 | ||||||||||||||
| Treasury stock, at cost | (5,738 | ) | (6,164 | ) | (7,270 | ) | (7,404 | ) | (7,641 | ) | |||||||||
| Additional paid-in-capital | 209,219 | 208,604 | 208,909 | 208,275 | 207,888 | ||||||||||||||
| Retained earnings | 143,674 | 135,332 | 125,477 | 119,250 | 113,432 | ||||||||||||||
| Accumulated other comprehensive loss | (10,680 | ) | (10,820 | ) | (11,586 | ) | (13,047 | ) | (13,515 | ) | |||||||||
| Unearned compensation ─ ESOP | (10,361 | ) | (10,652 | ) | (10,944 | ) | (11,235 | ) | (11,527 | ) | |||||||||
| Total stockholders' equity | 551,363 | 541,549 | 529,835 | 521,088 | 513,886 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,300,757 | $ | 3,223,970 | $ | 3,157,079 | $ | 3,153,869 | $ | 3,089,836 | |||||||||
| 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, | |||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||
| Interest and dividend income: | |||||||||||||||||||
| Interest on loans receivable | $ | 43,982 | $ | 43,599 | $ | 41,486 | $ | 40,291 | $ | 37,136 | |||||||||
| Interest on deposits due from banks | 770 | 1,209 | 978 | 807 | 1,668 | ||||||||||||||
| Interest and dividend on securities and FHLBNY stock | 3,910 | 4,013 | 4,383 | 4,762 | 5,193 | ||||||||||||||
| Total interest and dividend income | 48,662 | 48,821 | 46,847 | 45,860 | 43,997 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Interest on certificates of deposit | 6,415 | 6,706 | 6,553 | 7,382 | 7,754 | ||||||||||||||
| Interest on other deposits | 8,630 | 9,106 | 9,996 | 9,058 | 8,554 | ||||||||||||||
| Interest on borrowings | 5,391 | 5,075 | 5,050 | 4,994 | 5,486 | ||||||||||||||
| Total interest expense | 20,436 | 20,887 | 21,599 | 21,434 | 21,794 | ||||||||||||||
| Net interest income | 28,226 | 27,934 | 25,248 | 24,426 | 22,203 | ||||||||||||||
| Provision (benefit) for credit losses | 1,656 | 1,078 | 1,364 | 1,626 | (285 | ) | |||||||||||||
| Net interest income after provision (benefit) for credit losses | 26,570 | 26,856 | 23,884 | 22,800 | 22,488 | ||||||||||||||
| Non-interest income: | |||||||||||||||||||
| Service charges and fees | 539 | 542 | 539 | 511 | 525 | ||||||||||||||
| Brokerage commissions | — | 23 | 8 | — | 4 | ||||||||||||||
| Late and prepayment charges | 726 | 1,173 | 385 | 530 | 697 | ||||||||||||||
| Income on sale of mortgage loans | 120 | 139 | 166 | 169 | 148 | ||||||||||||||
| Income on sale of SBA loans | — | — | — | — | 404 | ||||||||||||||
| Grant income | — | 428 | 429 | 428 | — | ||||||||||||||
| Other | 657 | 1,174 | (35 | ) | 422 | 603 | |||||||||||||
| Total non-interest income | 2,042 | 3,479 | 1,492 | 2,060 | 2,381 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||||
| Compensation and benefits | 8,663 | 8,113 | 7,868 | 7,627 | 7,780 | ||||||||||||||
| Occupancy and equipment | 3,672 | 4,033 | 3,934 | 3,907 | 3,913 | ||||||||||||||
| Data processing expenses | 1,219 | 1,223 | 1,296 | 1,188 | 1,152 | ||||||||||||||
| Direct loan expenses | 121 | 116 | 155 | 241 | 388 | ||||||||||||||
| Insurance and surety bond premiums | 333 | 324 | 318 | 297 | 315 | ||||||||||||||
| Office supplies, telephone and postage | 193 | 186 | 170 | 174 | 170 | ||||||||||||||
| Professional fees | 1,346 | 1,392 | 1,409 | 1,367 | 1,364 | ||||||||||||||
| Marketing and promotional expenses | 228 | 94 | 184 | 266 | 83 | ||||||||||||||
| Federal deposit insurance and regulatory assessment | 409 | 97 | 266 | 546 | 461 | ||||||||||||||
| Other operating expenses | 1,056 | 1,056 | 1,018 | 1,256 | 1,262 | ||||||||||||||
| Total non-interest expense | 17,240 | 16,634 | 16,618 | 16,869 | 16,888 | ||||||||||||||
| Income before income taxes | 11,372 | 13,701 | 8,758 | 7,991 | 7,981 | ||||||||||||||
| Provision for income taxes | 2,749 | 3,565 | 2,250 | 1,891 | 2,022 | ||||||||||||||
| Net income | $ | 8,623 | $ | 10,136 | $ | 6,508 | $ | 6,100 | $ | 5,959 | |||||||||
| Dividends on preferred shares | 281 | 281 | 281 | 282 | 281 | ||||||||||||||
| Net income available to common stockholders | $ | 8,342 | $ | 9,855 | $ | 6,227 | $ | 5,818 | $ | 5,678 | |||||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 0.36 | $ | 0.43 | $ | 0.27 | $ | 0.26 | $ | 0.25 | |||||||||
| Diluted | $ | 0.36 | $ | 0.42 | $ | 0.27 | $ | 0.25 | $ | 0.25 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||
| Basic | 22,988,317 | 22,837,044 | 22,766,195 | 22,716,615 | 22,662,916 | ||||||||||||||
| Diluted | 23,331,314 | 23,263,708 | 23,135,448 | 22,947,769 | 22,876,740 | ||||||||||||||
| Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Operations (Dollars in thousands, except per share data) | ||||||||||||||||
| For the Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | Variance $ | Variance % | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Interest on loans receivable | $ | 43,982 | $ | 37,136 | $ | 6,846 | 18.43 | % | ||||||||
| Interest on deposits due from banks | 770 | 1,668 | (898 | ) | (53.84 | %) | ||||||||||
| Interest and dividend on securities and FHLBNY stock | 3,910 | 5,193 | (1,283 | ) | (24.71 | %) | ||||||||||
| Total interest and dividend income | 48,662 | 43,997 | 4,665 | 10.60 | % | |||||||||||
| Interest expense: | ||||||||||||||||
| Interest on certificates of deposit | 6,415 | 7,754 | (1,339 | ) | (17.27 | %) | ||||||||||
| Interest on other deposits | 8,630 | 8,554 | 76 | 0.89 | % | |||||||||||
| Interest on borrowings | 5,391 | 5,486 | (95 | ) | (1.73 | %) | ||||||||||
| Total interest expense | 20,436 | 21,794 | (1,358 | ) | (6.23 | %) | ||||||||||
| Net interest income | 28,226 | 22,203 | 6,023 | 27.13 | % | |||||||||||
| Provision (benefit) for credit losses | 1,656 | (285 | ) | 1,941 | (681.05 | %) | ||||||||||
| Net interest income after provision (benefit) for credit losses | 26,570 | 22,488 | 4,082 | 18.15 | % | |||||||||||
| Non-interest income: | ||||||||||||||||
| Service charges and fees | 539 | 525 | 14 | 2.67 | % | |||||||||||
| Brokerage commissions | — | 4 | (4 | ) | (100.00 | %) | ||||||||||
| Late and prepayment charges | 726 | 697 | 29 | 4.16 | % | |||||||||||
| Income on sale of mortgage loans | 120 | 148 | (28 | ) | (18.92 | %) | ||||||||||
| Income on sale of SBA loans | — | 404 | (404 | ) | (100.00 | %) | ||||||||||
| Other | 657 | 603 | 54 | 8.96 | % | |||||||||||
| Total non-interest income | 2,042 | 2,381 | (339 | ) | (14.24 | %) | ||||||||||
| Non-interest expense: | ||||||||||||||||
| Compensation and benefits | 8,663 | 7,780 | 883 | 11.35 | % | |||||||||||
| Occupancy and equipment | 3,672 | 3,913 | (241 | ) | (6.16 | %) | ||||||||||
| Data processing expenses | 1,219 | 1,152 | 67 | 5.82 | % | |||||||||||
| Direct loan expenses | 121 | 388 | (267 | ) | (68.81 | %) | ||||||||||
| Insurance and surety bond premiums | 333 | 315 | 18 | 5.71 | % | |||||||||||
| Office supplies, telephone and postage | 193 | 170 | 23 | 13.53 | % | |||||||||||
| Professional fees | 1,346 | 1,364 | (18 | ) | (1.32 | %) | ||||||||||
| Marketing and promotional expenses | 228 | 83 | 145 | 174.70 | % | |||||||||||
| Federal deposit insurance and regulatory assessments | 409 | 461 | (52 | ) | (11.28 | %) | ||||||||||
| Other operating expenses | 1,056 | 1,262 | (206 | ) | (16.32 | %) | ||||||||||
| Total non-interest expense | 17,240 | 16,888 | 352 | 2.08 | % | |||||||||||
| Income before income taxes | 11,372 | 7,981 | 3,391 | 42.49 | % | |||||||||||
| Provision for income taxes | 2,749 | 2,022 | 727 | 35.95 | % | |||||||||||
| Net income | $ | 8,623 | $ | 5,959 | $ | 2,664 | 44.71 | % | ||||||||
| Dividends on preferred shares | 281 | 281 | — | 0.00 | % | |||||||||||
| Net income available to common stockholders | $ | 8,342 | $ | 5,678 | $ | 2,664 | 46.92 | % | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.36 | $ | 0.25 | $ | 0.11 | 44.00 | % | ||||||||
| Diluted | $ | 0.36 | $ | 0.25 | $ | 0.11 | 44.00 | % | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 22,988,317 | 22,662,916 | 325,401 | 1.44 | % | |||||||||||
| Diluted | 23,331,314 | 22,876,740 | 454,574 | 1.99 | % | |||||||||||
| 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, | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
| 1-4 family residential | $ | 431,377 | 15.82 | % | $ | 434,374 | 16.54 | % | $ | 444,602 | 17.67 | % | $ | 452,350 | 18.21 | % | $ | 463,542 | 19.37 | % | ||||||||||||||||||||
| Multifamily residential | 915,333 | 33.58 | % | 756,542 | 28.83 | % | 688,574 | 27.39 | % | 693,670 | 27.96 | % | 675,541 | 28.24 | % | |||||||||||||||||||||||||
| Nonresidential properties | 534,256 | 19.60 | % | 526,210 | 20.05 | % | 436,175 | 17.35 | % | 404,512 | 16.30 | % | 390,681 | 16.33 | % | |||||||||||||||||||||||||
| Construction and land | 763,990 | 28.03 | % | 854,096 | 32.54 | % | 886,369 | 35.25 | % | 883,462 | 35.59 | % | 815,425 | 34.08 | % | |||||||||||||||||||||||||
| Total mortgage loans | 2,644,956 | 97.03 | % | 2,571,222 | 97.96 | % | 2,455,720 | 97.66 | % | 2,433,994 | 98.06 | % | 2,345,189 | 98.02 | % | |||||||||||||||||||||||||
| Non-mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
| Business loans | 80,366 | 2.95 | % | 53,063 | 2.02 | % | 58,012 | 2.31 | % | 47,372 | 1.91 | % | 46,329 | 1.94 | % | |||||||||||||||||||||||||
| Consumer loans | 596 | 0.02 | % | 625 | 0.02 | % | 727 | 0.03 | % | 840 | 0.03 | % | 997 | 0.04 | % | |||||||||||||||||||||||||
| Total non-mortgage loans | 80,962 | 2.97 | % | 53,688 | 2.04 | % | 58,739 | 2.34 | % | 48,212 | 1.94 | % | 47,326 | 1.98 | % | |||||||||||||||||||||||||
| Total loans, gross | 2,725,918 | 100.00 | % | 2,624,910 | 100.00 | % | 2,514,459 | 100.00 | % | 2,482,206 | 100.00 | % | 2,392,515 | 100.00 | % | |||||||||||||||||||||||||
| Net deferred loan origination costs | (1,031 | ) | (203 | ) | 351 | 606 | 1,390 | |||||||||||||||||||||||||||||||||
| Allowance for credit losses on loans | (26,238 | ) | (25,449 | ) | (24,764 | ) | (24,100 | ) | (22,974 | ) | ||||||||||||||||||||||||||||||
| Loans, net | $ | 2,698,649 | $ | 2,599,258 | $ | 2,490,046 | $ | 2,458,712 | $ | 2,370,931 | ||||||||||||||||||||||||||||||
| 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, | |||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Allowance for credit losses on loans at beginning of the period | $ | 25,449 | $ | 24,764 | $ | 24,100 | $ | 22,974 | $ | 22,502 | |||||||||
| Provision for credit losses on loans | 1,293 | 1,526 | 864 | 1,348 | 731 | ||||||||||||||
| Charge-offs: | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residential | — | (32 | ) | — | — | (38 | ) | ||||||||||||
| Non-mortgage loans: | |||||||||||||||||||
| Business | (504 | ) | (801 | ) | (200 | ) | (222 | ) | (222 | ) | |||||||||
| Consumer | — | (44 | ) | — | — | (3 | ) | ||||||||||||
| Total charge-offs | (504 | ) | (877 | ) | (200 | ) | (222 | ) | (263 | ) | |||||||||
| Recoveries: | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residential | — | 1 | — | — | — | ||||||||||||||
| Non-mortgage loans: | |||||||||||||||||||
| Business | — | 35 | — | — | 4 | ||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||
| Total recoveries | — | 36 | — | — | 4 | ||||||||||||||
| Net (charge-offs) recoveries | (504 | ) | (841 | ) | (200 | ) | (222 | ) | (259 | ) | |||||||||
| Allowance for credit losses on loans at end of the period | $ | 26,238 | $ | 25,449 | $ | 24,764 | $ | 24,100 | $ | 22,974 | |||||||||
| Ponce Financial Group, Inc. and Subsidiaries Deposits | ||||||||||||||||||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
| Demand | $ | 241,012 | 11.29 | % | $ | 208,250 | 10.18 | % | $ | 192,595 | 9.34 | % | $ | 197,671 | 9.63 | % | $ | 212,139 | 10.51 | % | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||
| NOW/IOLA accounts | 78,192 | 3.66 | % | 84,012 | 4.10 | % | 75,051 | 3.64 | % | 63,626 | 3.10 | % | 74,430 | 3.69 | % | |||||||||||||||||||||||||
| Money market accounts | 811,982 | 38.05 | % | 779,532 | 38.09 | % | 821,844 | 39.84 | % | 790,939 | 38.52 | % | 692,753 | 34.33 | % | |||||||||||||||||||||||||
| Reciprocal deposits | 162,926 | 7.64 | % | 152,630 | 7.46 | % | 154,548 | 7.49 | % | 136,693 | 6.66 | % | 141,838 | 7.03 | % | |||||||||||||||||||||||||
| Savings accounts (1) | 118,373 | 5.55 | % | 117,708 | 5.75 | % | 117,401 | 5.69 | % | 113,701 | 5.53 | % | 119,023 | 5.90 | % | |||||||||||||||||||||||||
| Total NOW, money market, reciprocal and savings accounts | 1,171,473 | 54.90 | % | 1,133,882 | 55.40 | % | 1,168,844 | 56.66 | % | 1,104,959 | 53.81 | % | 1,028,044 | 50.95 | % | |||||||||||||||||||||||||
| Certificates of deposit of | 258,093 | 12.10 | % | 202,500 | 9.89 | % | 209,819 | 10.17 | % | 220,671 | 10.75 | % | 219,721 | 10.89 | % | |||||||||||||||||||||||||
| Brokered certificates of deposit (2) | 54,553 | 2.56 | % | 67,942 | 3.32 | % | 67,952 | 3.29 | % | 69,531 | 3.39 | % | 84,531 | 4.19 | % | |||||||||||||||||||||||||
| Listing service deposits (2) | 1,243 | 0.06 | % | 4,150 | 0.20 | % | 4,150 | 0.20 | % | 6,140 | 0.30 | % | 6,140 | 0.30 | % | |||||||||||||||||||||||||
| All other certificates of deposit less than | 407,421 | 19.09 | % | 429,911 | 21.01 | % | 419,721 | 20.34 | % | 454,179 | 22.12 | % | 467,273 | 23.16 | % | |||||||||||||||||||||||||
| Total certificates of deposit | 721,310 | 33.81 | % | 704,503 | 34.42 | % | 701,642 | 34.00 | % | 750,521 | 36.56 | % | 777,665 | 38.54 | % | |||||||||||||||||||||||||
| Total interest-bearing deposits | 1,892,783 | 88.71 | % | 1,838,385 | 89.82 | % | 1,870,486 | 90.66 | % | 1,855,480 | 90.37 | % | 1,805,709 | 89.49 | % | |||||||||||||||||||||||||
| Total deposits | $ | 2,133,795 | 100.00 | % | $ | 2,046,635 | 100.00 | % | $ | 2,063,081 | 100.00 | % | $ | 2,053,151 | 100.00 | % | $ | 2,017,848 | 100.00 | % | ||||||||||||||||||||
(1) As of June 30, 2025 and March 31, 2025, Advance payments by borrowers for taxes and insurance in the amounts of
(2) There were no individual listing service deposits or brokered certificates of deposit amounting to
| Ponce Financial Group, Inc. and Subsidiaries Nonperforming Assets | |||||||||||||||||||
| As of | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Non-accrual loans: | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residential | $ | 3,158 | $ | 4,427 | $ | 3,176 | $ | 1,859 | $ | 2,475 | |||||||||
| Multifamily residential | 9,228 | 13,112 | 14,202 | 11,703 | 9,788 | ||||||||||||||
| Nonresidential properties | — | — | — | 405 | — | ||||||||||||||
| Construction and land | 7,061 | 8,247 | 8,907 | 8,907 | 14,159 | ||||||||||||||
| Non-mortgage loans: | |||||||||||||||||||
| Business | 427 | 667 | 880 | 276 | 170 | ||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||
| Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) | $ | 19,874 | $ | 26,453 | $ | 27,165 | $ | 23,150 | $ | 26,592 | |||||||||
| Non-accruing modifications to borrowers experiencing financial difficulty (1): | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residential | 477 | 410 | 698 | 708 | 710 | ||||||||||||||
| Total non-accruing modifications to borrowers experiencing financial difficulty (1) | 477 | 410 | 698 | 708 | 710 | ||||||||||||||
| Total non-performing assets (2) | $ | 20,351 | $ | 26,863 | $ | 27,863 | $ | 23,858 | $ | 27,302 | |||||||||
| Accruing modifications to borrowers experiencing financial difficulty (1): | |||||||||||||||||||
| Mortgage loans: | |||||||||||||||||||
| 1-4 family residential | 2,481 | 2,574 | 3,725 | 3,791 | 3,830 | ||||||||||||||
| Multifamily residential | — | — | — | — | — | ||||||||||||||
| Nonresidential properties | 613 | 621 | 629 | 655 | 644 | ||||||||||||||
| Construction and land | — | — | — | — | — | ||||||||||||||
| Non-mortgage loans: | |||||||||||||||||||
| Business | 185 | 190 | 196 | 203 | 209 | ||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||
| Total accruing modifications to borrowers experiencing financial difficulty (1) | $ | 3,279 | $ | 3,385 | $ | 4,550 | $ | 4,649 | $ | 4,683 | |||||||||
| Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) | $ | 23,630 | $ | 30,248 | $ | 32,413 | $ | 28,507 | $ | 31,985 | |||||||||
| Total non-performing assets to total assets | 0.62 | % | 0.83 | % | 0.88 | % | 0.76 | % | 0.87 | % | |||||||||
(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, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Average | Average | ||||||||||||||||||||||
| Outstanding | Average | Outstanding | Average | ||||||||||||||||||||
| Balance | Interest | Yield/Rate (1) | Balance | Interest | Yield/Rate (1) | ||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans (2) | $ | 2,680,018 | $ | 43,982 | 6.66 | % | $ | 2,369,433 | $ | 37,136 | 6.36 | % | |||||||||||
| Securities (3) | 360,452 | 3,248 | 3.65 | % | 467,560 | 4,521 | 3.92 | % | |||||||||||||||
| Other (4) | 129,585 | 1,432 | 4.48 | % | 186,021 | 2,340 | 5.10 | % | |||||||||||||||
| Total interest-earning assets | 3,170,055 | 48,662 | 6.23 | % | 3,023,014 | 43,997 | 5.90 | % | |||||||||||||||
| Non-interest-earning assets | 93,219 | 109,166 | |||||||||||||||||||||
| Total assets | $ | 3,263,274 | $ | 3,132,180 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| NOW/IOLA | $ | 77,833 | $ | 134 | 0.70 | % | $ | 72,354 | $ | 115 | 0.64 | % | |||||||||||
| Money market | 949,007 | 8,468 | 3.62 | % | 827,948 | 8,411 | 4.12 | % | |||||||||||||||
| Savings (5) | 120,205 | 28 | 0.09 | % | 117,616 | 28 | 0.10 | % | |||||||||||||||
| Certificates of deposit | 718,301 | 6,415 | 3.62 | % | 794,270 | 7,754 | 3.96 | % | |||||||||||||||
| Total deposits | 1,865,346 | 15,045 | 3.27 | % | 1,812,188 | 16,308 | 3.65 | % | |||||||||||||||
| Borrowings | 584,100 | 5,391 | 3.74 | % | 568,601 | 5,486 | 3.91 | % | |||||||||||||||
| Total interest-bearing liabilities | 2,449,446 | 20,436 | 3.38 | % | 2,380,789 | 21,794 | 3.71 | % | |||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||||
| Non-interest-bearing demand | 221,056 | — | 196,627 | — | |||||||||||||||||||
| Other non-interest-bearing liabilities | 44,038 | — | 43,915 | — | |||||||||||||||||||
| Total non-interest-bearing liabilities | 265,094 | — | 240,542 | — | |||||||||||||||||||
| Total liabilities | 2,714,540 | 20,436 | 2,621,331 | 21,794 | |||||||||||||||||||
| Total equity | 548,735 | 510,849 | |||||||||||||||||||||
| Total liabilities and total equity | $ | 3,263,275 | 3.38 | % | $ | 3,132,180 | 3.71 | % | |||||||||||||||
| Net interest income | $ | 28,226 | $ | 22,203 | |||||||||||||||||||
| Net interest rate spread (6) | 2.85 | % | 2.19 | % | |||||||||||||||||||
| Net interest-earning assets (7) | $ | 720,609 | $ | 642,225 | |||||||||||||||||||
| Net interest margin (8) | 3.61 | % | 2.98 | % | |||||||||||||||||||
| Average interest-earning assets to | |||||||||||||||||||||||
| interest-bearing liabilities | 129.42 | % | 126.98 | % | |||||||||||||||||||
(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) For the three months ended March 31, 2025, advance payments by borrowers for taxes and insurance in the amounts of
(6) 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.
(7) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8) 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, | |||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||
| Other Data | |||||||||||||||||||
| Common shares issued | 24,886,711 | 24,886,711 | 24,886,711 | 24,886,711 | 24,886,711 | ||||||||||||||
| Less treasury shares | 698,810 | 750,785 | 885,586 | 901,911 | 920,520 | ||||||||||||||
| Common shares outstanding at end of period | 24,187,901 | 24,135,926 | 24,001,125 | 23,984,800 | 23,966,191 | ||||||||||||||
| Book value per common share | $ | 13.49 | $ | 13.12 | $ | 12.70 | $ | 12.34 | $ | 12.05 | |||||||||
| Tangible book value per common share (1) | $ | 13.49 | $ | 13.12 | $ | 12.70 | $ | 12.34 | $ | 12.05 | |||||||||
| (1) | Tangible book value per common share is a non-GAAP financial measure and is calculated by dividing tangible common equity by common shares outstanding. Tangible common equity is defined as total shareholders’ equity less goodwill and other intangible assets, net of applicable deferred taxes. The Company believes that tangible book value per common share is a useful measure for investors, regulators, and analysts because it reflects the Company’s capital position excluding the impact of goodwill and other intangible assets, which may not be realizable in a liquidation scenario. This measure is commonly used in the banking industry to assess financial condition and capital adequacy. Tangible book value per common share should not be considered a substitute for book value per common share, which is calculated in accordance with GAAP, and the Company’s definition of tangible book value per common share may differ from similarly titled measures used by other companies. During the periods presented, the Company did not make any adjustments for goodwill and other intangible assets, so tangible book value per common share is equal to the book value per common share as calculated in accordance with GAAP. |
Contact:
Sergio Vaccaro
Sergio.vaccaro@poncebank.net
718-931-9000
