Ponce Financial Group, Inc. Reports Third Quarter 2026 Results

A $10.5 million tax valuation allowance release contributed to earnings, alongside higher net interest income and margin.

Rhea-AI Summary

Ponce Financial Group (Nasdaq: PDLB) reported third-quarter 2026 net income available to common stockholders of $18.0 million, more than doubling year over year. Diluted earnings were $0.76 per share, versus $0.35 in the prior quarter and $0.27 a year earlier. Results included a $10.5 million deferred-tax valuation allowance release and a $1.2 million property loss. Net interest income rose 34.62% year over year to $34.0 million, while net interest margin widened to 3.86% from 3.30%.

Nine-month common earnings reached $34.5 million, versus $17.7 million a year earlier. At September 30, net loans were $3.08 billion and deposits were $2.37 billion, up 18.54% and 15.69% from year-end. Non-performing assets fell to 0.50% of assets from 0.67% in June, while the quarterly credit-loss provision increased to $3.2 million from $2.1 million. A planned Treasury preferred-stock repurchase remains subject to additional eligibility conditions.

21 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter common earnings reached $18.0 million, or $0.76 diluted, versus $8.2 million/$0.35 sequentially and $6.2 million/$0.27 year-over-year.
• Moderate pointThird-quarter net interest income rose 13.07% sequentially and 34.62% year over year to $34.0 million.
• Moderate pointThird-quarter net interest margin widened to 3.86%, versus 3.66% sequentially and 3.30% a year earlier.
• Moderate pointNet loans increased 18.54% to $3.08 billion from December 31, 2025.
• Moderate pointDeposits increased 15.69% to $2.37 billion from December 31, 2025.
• Moderate pointAnnualized return on average assets rose to 1.99%, versus 1.00% sequentially and 0.82% a year earlier.
• Moderate pointAnnualized return on common equity rose to 20.18%, versus 9.81% sequentially and 8.10% a year earlier.
• Moderate pointEfficiency ratio improved to 55.21%, versus 57.41% sequentially and 62.15% a year earlier.
• Moderate pointNon-performing assets fell to 0.50% of total assets, from 0.67% sequentially and 0.88% a year earlier.
• Moderate pointLoan-loss allowance coverage of nonperforming loans rose to 156.85%, versus 116.91% sequentially and 88.88% a year earlier.

11 minor points

• Minor pointDeferred-tax valuation allowance release of $10.5 million contributed to third-quarter earnings.
• Minor pointInterest income included $0.8 million from a satisfied former non-accrual loan in the third quarter.
• Minor pointOaktree and Silvergate fund investments generated a $0.4 million gain in the third quarter.
• Minor pointNine-month common earnings rose to $34.5 million, or $1.47 diluted, from $17.7 million, or $0.77.
• Minor pointNine-month net interest income increased 28.38% to $92.3 million from $71.9 million a year earlier.
• Minor pointNine-month net interest margin expanded to 3.72% from 3.18% a year earlier.
• Minor pointCash and equivalents increased 4.80% to $132.2 million from December 31, 2025.
• Minor pointBook value per share reached $14.60, a $1.90 increase over the last twelve months.
• Minor pointNon-performing assets plus accruing troubled-borrower modifications fell to $21.8 million, versus $26.8 million in June and $32.4 million a year earlier.
• Minor pointTreasury confirmed the 60% deep impact lending threshold was met; Ponce is working toward preferred-stock repurchase.
• Minor point. Forward-looking: it has not happened yet and may not happen.Ponce plans continued investment in people and technology to pursue operational efficiency.

Negative

• Moderate pointThird-quarter non-interest expense increased 6.07% sequentially and 15.75% year over year to $19.2 million.
• Moderate pointThird-quarter credit-loss provision increased to $3.2 million from $2.1 million sequentially, up $1.9 million year over year.
• Moderate pointThird-quarter interest expense increased $1.9 million both sequentially and year over year, reaching $23.5 million.
• Moderate pointCompany total risk-based capital ratio declined to 18.66%, versus 20.00% sequentially and 24.08% a year earlier.
• Minor pointThird-quarter non-interest income fell 44.34% sequentially and 43.03% year over year to $0.9 million.

12 minor points

• Minor pointNine-month non-interest income declined 25.52% to $4.4 million from $5.9 million a year earlier.
• Minor pointNine-month non-interest expense rose 8.41% to $54.6 million from $50.4 million a year earlier.
• Minor pointNine-month credit-loss provision increased $4.3 million from the same period in 2025.
• Minor pointNine-month interest expense increased $0.7 million year over year.
• Minor pointCompany common equity Tier 1 capital ratio declined to 10.93%, versus 11.51% sequentially and 13.39% a year earlier.
• Minor pointCompany Tier 1 capital-to-assets ratio declined to 16.46%, versus 16.85% sequentially and 17.33% a year earlier.
• Minor pointBank total risk-based capital ratio declined to 16.98%, versus 18.88% sequentially and 21.79% a year earlier.
• Minor pointBank common equity Tier 1 capital ratio declined to 15.98%, versus 17.87% sequentially and 20.66% a year earlier.
• Minor pointBank Tier 1 capital-to-assets ratio declined to 14.85%, versus 15.81% sequentially and 16.08% a year earlier.
• Minor pointLoan-loss allowance as a percentage of loans declined to 0.94%, versus 0.95% sequentially and 0.98% a year earlier.
• Minor pointAnnualized net charge-offs were 0.05% of average loans, unchanged sequentially but above 0.03% a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Preferred-stock repurchase remains subject to additional eligibility conditions; completion and timing are uncertain.

News Explained

Treasury has confirmed Ponce met the deep-impact lending threshold for repurchasing its preferred stock, and the company is working with Treasury on next steps; the repurchase is not reported as completed and remains subject to further conditions, with no assurance on whether or when it will occur.

Key Figures

Q3 net income available to common stockholders: $18.0 million Diluted EPS: $0.76 Net interest income: $34.0 million; +13.07% +5 more

Q3 net income available to common stockholders

$18.0 million

Third quarter 2026

Diluted EPS

$0.76

Third quarter 2026

Net interest income

$34.0 million; +13.07%

Third quarter 2026 versus prior quarter

Net interest margin

3.86%

Third quarter 2026; 3.66% in the prior quarter

Deferred tax valuation allowance release

$10.5 million

New York State and New York City deferred tax assets; included in the quarter’s tax benefit

Nine-month net income available to common stockholders

$34.5 million

Nine months ended September 30, 2026

Non-performing assets

0.50% of total assets

At September 30, 2026

Deep impact lending threshold record

16 consecutive quarters; above the 60% required threshold

Threshold associated with the potential Preferred Stock repurchase; additional conditions remain

Previous Earnings Reports

5 past events · Latest: Jul 27

Same Type 5 events

1. Jul 27

   Quarterly earnings

   24h Move

   -0.8%

   Reported $8.2 million in common earnings and $30.1 million net interest income.

2. Apr 24

   Quarterly earnings

   24h Move

   +1.0%

   Reported $8.3 million in common earnings and a 3.61% net interest margin.

3. Jan 27

   Quarterly earnings

   24h Move

   +0.8%

   Reported $9.9 million in fourth-quarter common earnings and $27.9 million net interest income.

4. Oct 24

   Quarterly earnings

   24h Move

   +1.6%

   Reported $6.2 million in third-quarter common earnings and $25.2 million net interest income.

5. Jul 25

   Quarterly earnings

   24h Move

   +4.7%

   Reported $5.8 million in second-quarter common earnings and 36.43% year-over-year net interest income growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, valuation allowance, deferred tax assets, non-accrual loan

4 terms

net interest margin financial

"Net interest margin was 3.86% for the third quarter of 2026"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

valuation allowance financial

"release of the $10.5 million valuation allowance against the Company’s New York State"

A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.

deferred tax assets financial

"valuation allowance against the Company’s New York State and New York City deferred tax assets"

An item on a company’s balance sheet showing tax benefits it can use later to reduce future tax bills — think of it as an IOU from the tax system for past losses or timing differences. It matters to investors because it can boost future cash flow and apparent value if the company expects profits ahead, but those benefits vanish if the company cannot generate taxable income and the asset must be reduced.

non-accrual loan financial

"Interest income for the quarter includes $0.8 million from a satisfied, former non-accrual loan"

A non-accrual loan is a bank loan that has been reclassified so the lender stops recording interest income on an accrual basis because collection of principal or interest is doubtful or the borrower is significantly past due. When a loan is placed on non-accrual, interest previously recognized but not collected is usually reversed and future interest is recorded only when received in cash (or under strict conditions), and the lender must evaluate the loan for impairment and possible loss provisioning. Many regulatory and accounting frameworks set practical triggers (for example, a loan more than 90 days past due or clear evidence of borrower financial difficulty) for placing a loan on non-accrual, but the exact trigger can vary by jurisdiction and loan type.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Oct. 26, 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 third quarter of 2026.

Third Quarter 2026 Highlights (Compared to Prior Periods):

• Net income available to common stockholders was $18.0 million, or $0.76 per diluted share for the three months ended September 30, 2026, as compared to net income available to common stockholders of $8.2 million, or $0.35 per diluted share for the three months ended June 30, 2026 and net income available to common stockholders of $6.2 million, or $0.27 per diluted share for the three months ended September 30, 2025. Net income for the three months ended September 30, 2026 was $18.2 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended September 30, 2026.
• Included in the $18.0 million of net income available to common stockholders for the third quarter of 2026 results is $57.5 million in total interest and dividend income, $5.9 million in benefit for income taxes and $0.9 million in non-interest income, offset by $23.5 million in interest expense, $19.2 million in non-interest expense, $3.2 million in provision for credit losses and $0.3 million in dividends on preferred shares.
• The third quarter of 2026 results include certain unusual, non-recurring items. Specifically, the benefit for income taxes includes the release of the $10.5 million valuation allowance against the Company’s New York State and New York City deferred tax assets. The $1.2 million loss on real property included in non-interest income is due to the move of our Flushing property to held for sale. Non-interest income also includes a $0.4 million gain from the Company’s investment in Oaktree and Silvergate funds.
• Net interest income of $34.0 million for the third quarter of 2026 increased $3.9 million, or 13.07%, from the prior quarter and increased $8.7 million, or 34.62%, from the same quarter last year. Interest income for the quarter includes $0.8 million from a satisfied, former non-accrual loan. 
• Net interest margin was 3.86% for the third quarter of 2026, versus 3.66% for the prior quarter and 3.30% for the same quarter last year.
  

Nine Months 2026 Highlights (Compared to 2025)

• Net income available to common stockholders was $34.5 million, or $1.47 per diluted share for the nine months ended September 30, 2026, as compared to net income available to common stockholders of $17.7 million, or $0.77
  per diluted share for the nine months ended September 30, 2025. Net income for the nine months ended September 30, 2026 and 2025 was $35.4 million and $18.6 million, respectively. The Company paid dividends of $0.8 million on its preferred stock during both the nine months ended September 30, 2026 and 2025.
• Net interest income for the nine months ended September 30, 2026 was $92.3 million, an increase of $20.4 million, or 28.38%, compared to $71.9 million for the nine months ended September 30, 2025.
• Non-interest income for the nine months ended September 30, 2026 was $4.4 million, a decrease of $1.5 million, or 25.52%, from $5.9 million for the nine months ended September 30, 2025.
• Non-interest expense for the nine months ended September 30, 2026 was $54.6 million, an increase of $4.2 million, or 8.41%, compared to $50.4 million for the nine months ended September 30, 2025.
• Cash and equivalents were $132.2 million as of September 30, 2026, an increase of $6.1 million, or 4.80%, from $126.2 million as of December 31, 2025.
• Securities totaled $320.7 million as of September 30, 2026, a decrease of $44.5 million, or 12.19%, 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 $3.08 billion as of September 30, 2026, an increase of $481.8 million, or 18.54%, from $2.60 billion as of December 31, 2025.
• Deposits were $2.37 billion as of September 30, 2026, an increase of $321.1 million, or 15.69%, 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 “Ponce continues to show strong results and deliver shareholder value. While the quarter includes some non-recurring items, our performance was robust even before accounting for those one-time events. Book value per share stands at $14.60, representing a $1.90 increase over the last twelve months. Furthermore, our net interest income continues to benefit from disciplined pricing and growth in earning assets, while non-performing assets decreased during the quarter to 50 basis points. Our capital position remains exceptionally strong and well in excess of regulatory requirements. We remain deeply committed to the communities we serve, and we will continue investing in both our people and technology to drive further operational efficiency.”

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We are pleased with our robust business activity during the quarter. As previously reported, we filed our second-quarter Quarterly Supplemental Report (QSR), which marks 16 consecutive quarters of deep impact lending above the 60% required threshold to repurchase our Preferred Stock. The U.S. Department of the Treasury has confirmed that the Company met this deep impact threshold. Consequently, we are actively collaborating with Treasury and its legal counsel to finalize the next steps for the Preferred Stock repurchase.”  

ECIP

The consummation of any such repurchase of our Preferred Stock is subject to the satisfaction of additional conditions, including satisfying certain eligibility criteria. Although the Company currently expects that it will satisfy all other necessary conditions, there can be no assurance if and when such repurchase will be consummated with Treasury.  

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

	At or for the Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
Performance Ratios:
Return on average assets (1)		1.99	%			1.00	%			1.07	%			1.26	%			0.82	%
Return on common equity (1)		20.18	%			9.81	%			10.37	%			12.50	%			8.10	%
Net interest margin (1) (2)		3.86	%			3.66	%			3.61	%			3.57	%			3.30	%
Non-interest expense to average assets (1)		2.13	%			2.14	%			2.14	%			2.06	%			2.10	%
Efficiency ratio (3)		55.21	%			57.41	%			56.96	%			52.95	%			62.15	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)		18.66	%			20.00	%			21.23	%			23.00	%			24.08	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)		10.93	%			11.51	%			12.11	%			12.98	%			13.39	%
Tier 1 capital to total assets (Ponce Financial Group)		16.46	%			16.85	%			17.22	%			17.27	%			17.33	%
Total capital to risk-weighted assets (Bank only)		16.98	%			18.88	%			20.00	%			21.63	%			21.79	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		15.98	%			17.87	%			18.97	%			20.53	%			20.66	%
Tier 1 capital to total assets (Bank only)		14.85	%			15.81	%			16.09	%			16.12	%			16.08	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.94	%			0.95	%			0.96	%			0.97	%			0.98	%
Allowance for credit losses on loans as a percentage of nonperforming loans		156.85	%			116.91	%			128.93	%			94.74	%			88.88	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.05	%)			(0.05	%)			(0.08	%)			(0.13	%)			(0.03	%)
Non-performing assets as a percentage of total assets		0.50	%			0.67	%			0.62	%			0.83	%			0.88	%
Other:
Number of offices		17				17				17				17				18
Number of full-time equivalent employees		236				229				218				216				209

(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 September 30, 2026 was $18.2 million, increased $9.8 million, or 114.82%, compared to net income of $8.5 million for the three months ended June 30, 2026 and increased $11.7 million or 180.41% compared to net income of $6.5 million for the three months ended September 30, 2025.

The $9.8 million increase of net income for the three months ended September 30, 2026 compared to the three months ended June 30, 2026 was attributed mainly to an increase of $3.9 million in net interest income and $8.7 million in benefit for income taxes, offset by increases of $1.1 million in non-interest expense, $1.1 million in provision for credit losses and a decrease of $0.7 million in non-interest income.

The $11.7 million increase of net income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was largely due to an increase of $8.7 million in net interest income and $8.1 million in benefit for income taxes, offset by increases of $2.6 million in non-interest expense and $1.9 million in provision for credit losses and a decrease of $0.6 million in non-interest income largely due to a $1.2 million loss on real property.

Net income for the nine months ended September 30, 2026 was $35.4 million, increased $16.8 million, or 90.48%, compared to net income of $18.6 million for the nine months ended September 30, 2025. The $16.8 million increase in net income was attributed mainly to an increase of $20.4 million in net interest income and $6.5 million in benefit for income taxes, offset by increases of $4.3 million in provision for credit losses and $4.2 million in non-interest expense and a decrease of $1.5 million in non-interest income largely due to a $1.2 million loss on real property.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended September 30, 2026, increased $3.9 million, or 13.07%, to $34.0 million compared to $30.1 million for the three months ended June 30, 2026 and increased $8.7 million, or 34.62%, compared to $25.2 million for the three months ended September 30, 2025.

The $3.9 million increase in net interest income from the three months ended June 30, 2026 was attributable to an increase of $5.9 million in total interest and dividend income, offset by an increase of $1.9 million in total interest expense. The $8.7 million increase in net interest income from the three months ended September 30, 2025 was attributable to an increase of $10.7 million in total interest and dividend income, offset by an increase of $1.9 million in total interest expense.

Net interest income for the nine months ended September 30, 2026, increased $20.4 million, or 28.38%, to $92.3 million compared to $71.9 million for the nine months ended September 30, 2025. The $20.4 million increase in net interest income from the nine months ended September 30, 2025 was attributable to an increase of $21.1 million in total interest and dividend income, offset by an increase of $0.7 million in total interest expense.

Net interest margin was 3.86% for the three months ended September 30, 2026 compared to 3.66% for the prior quarter, an increase of 20bps and 3.30% for the same period last year, an increase of 56bps.

Net interest margin was 3.72% for the nine months ended September 30, 2026 compared to 3.18% for the nine months ended September 30, 2025, an increase of 54bps.

Non-interest Income

Non-interest income for the three months ended September 30, 2026, was $0.9 million, decreased $0.7 million, or 44.34%, compared to $1.5 million for the three months ended June 30, 2026, and decreased $0.6 million, or 43.03%, compared to $1.5 million for the three months ended September 30, 2025.

The $0.7 million decrease in non-interest income from the three months ended June 30, 2026 was largely attributable to a $1.2 million loss on real property, offset by an increase of $0.4 million in other non-interest income.

The $0.6 million decrease in non-interest income from the three months ended September 30, 2025 was largely attributable to a loss of $1.2 million on real property recognized in the third quarter of 2026, $0.4 million in grant income recognized in the third quarter of 2025 and a decrease of $0.2 million in late and prepayment charges, offset by an increase of $1.0 million in other non-interest income.

Non-interest income for the nine months ended September 30, 2026, was $4.4 million, a decrease of $1.5 million, or 25.52%, compared to $5.9 million for the nine months ended September 30, 2025. The $1.5 million decrease in non-interest income from the nine months ended September 30, 2025 was largely attributable to $1.2 million loss on real property, $0.8 million in grant income that was recognized during the nine months ended September 30, 2025, decreases of $0.5 million in late and prepayment charges and $0.4 million in income on sale of SBA loans, offset by increases of $1.3 million in other non-interest income and $0.2 million in service charges and fees.

Non-interest Expense

Non-interest expense for the three months ended September 30, 2026 was $19.2 million, increased $1.1 million, or 6.07%, compared to $18.1 million for the three months ended June 30, 2026 and increased $2.6 million, or 15.75%, compared to $16.6 million for the three months ended September 30, 2025.

The $1.1 million increase in non-interest expense from the three months ended June 30, 2026 was mainly attributable to an increase of $1.4 million in compensation and benefits as a result of new hires, partially offset by a decrease of $0.2 million in professional fees.

The $2.6 million increase in non-interest expense from the three months ended September 30, 2025 was mainly attributable to an increase of $2.6 million in compensation and benefits as a result of new hires.

Non-interest expense for the nine months ended September 30, 2026 was $54.6 million, increased $4.2 million, or 8.41%, compared to $50.4 million for the nine months ended September 30, 2025. The $4.2 million increase in non-interest expense from the nine months ended September 30, 2025 was mainly attributable to an increase of $5.0 million in compensation and benefits as a result of new hires, partially offset by decreases of $0.4 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.1 million in other non-interest expense.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $21.8 million at September 30, 2026 compared to $26.8 million at June 30, 2026 and $32.4 million at September 30, 2025.

During the three months ended September 30, 2026, a credit loss provision of $3.2 million on loans was recorded, consisting of $2.0 million charged on the funded portion and $1.2 million charged on the unfunded portion on loans. During the three months ended June 30, 2026, a credit loss provision of $2.1 million on loans was recorded, consisting of $1.7 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. During the three months ended September 30, 2025, a credit loss provision of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion on loans and $0.5 million charged on the unfunded portion on loans.

During the nine months ended September 30, 2026, a credit loss provision of $7.0 million on loans was recorded, consisting of $4.9 million charged on the funded portion and $2.1 million charged on the unfunded portion on loans. During the nine months ended September 30, 2025, a credit loss provision of $2.7 million on loans was recorded, consisting of $2.9 million charged on the funded portion on loans and a $0.2 million benefit on the unfunded portion on loans.

Balance Sheet Summary

Total assets increased $462.7 million, or 14.35%, to $3.69 billion as of September 30, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $481.8 million in net loans receivable, $14.3 million in deferred tax assets, $6.1 million in cash and cash equivalents, $4.8 million in Federal Home Loan Bank of New York stock, $3.7 million in accrued interest receivable and $2.2 million in other assets, partially offset by decreases of $31.8 million in held-to-maturity securities, $12.7 million in available-for-sale securities, $4.7 million in premises and equipment, net, and $1.3 million in right of use assets. The $4.7 million decrease in premises and equipment, net was largely attributable to $1.8 million of real property that was reclassified to held for sale and is reflected in other assets in the Consolidated Statements of Financial Condition and a $1.2 million loss on real property that is reflected in total non-interest income in the Consolidated Statements of Operations.

Total liabilities increased $426.0 million, or 15.88%, to $3.11 billion as of September 30, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $321.1 million in deposits, $100.0 million in borrowings and $6.0 million in other liabilities, partially offset by a decrease of $1.2 million in operating lease liabilities.

Total stockholders’ equity increased $36.7 million, or 6.78%, to $578.3 million as of September 30, 2026, from $541.5 million as of December 31, 2025. The $36.7 million increase in stockholders’ equity was largely attributable to $35.4 million in net income, $1.9 million impact to additional paid in capital as a result of share-based compensation, $1.9 million from release of ESOP shares and $0.2 million from exercise of stock options, offset by $1.8 million in other comprehensive loss and $0.8 million related to the dividend paid on preferred shares during the nine months ended September 30, 2026.

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; the risk that the repurchase of Ponce Financial Group, Inc.’s Preferred Stock issued under the ECIP may not be consummated on the anticipated timeline, on the anticipated terms, or at all; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Dollars in thousands, except for share data)
	As of
	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
ASSETS
Cash and due from banks:
Cash	$	27,725			$	25,567			$	27,429			$	28,511			$	29,296
Interest-bearing deposits		104,486				114,443				89,817				97,643				117,283
Total cash and cash equivalents		132,211				140,010				117,246				126,154				146,579
Available-for-sale securities, at fair value		79,475				84,774				87,150				92,196				94,822
Held-to-maturity securities, at amortized cost		241,176				253,616				263,514				272,982				285,125
Placement with banks		249				249				249				249				249
Mortgage loans held for sale, at fair value		3,701				3,050				2,127				3,388				5,794
Loans receivable, net		3,081,101				2,879,740				2,698,649				2,599,258				2,490,046
Accrued interest receivable		21,624				19,939				19,274				17,905				18,903
Premises and equipment, net		10,924				14,645				15,159				15,638				16,129
Right of use assets		26,331				27,055				27,633				27,583				28,295
Federal Home Loan Bank of New York stock (FHLBNY), at cost		34,064				30,689				28,180				29,309				25,945
Federal Reserve Bank of New York stock (FRBNY), at cost		10,725				10,714				10,706				10,698				—
Deferred tax assets		25,770				12,979				11,729				11,501				12,402
Other assets		19,326				17,251				19,141				17,109				32,790
Total assets	$	3,686,677			$	3,494,711			$	3,300,757			$	3,223,970			$	3,157,079
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	2,367,708			$	2,271,809			$	2,133,795			$	2,046,635			$	2,063,081
Borrowings		696,100				621,100				571,100				596,100				521,100
Operating lease liabilities		28,171				28,874				29,429				29,353				30,028
Accrued interest payable		3,862				3,837				4,338				3,788				4,372
Other liabilities		12,576				8,121				10,732				6,545				8,663
Total liabilities		3,108,417				2,933,741				2,749,394				2,682,421				2,627,244
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		(5,738	)			(5,738	)			(5,738	)			(6,164	)			(7,270	)
Additional paid-in-capital		211,317				210,339				209,219				208,604				208,909
Retained earnings		169,855				151,887				143,674				135,332				125,477
Accumulated other comprehensive loss		(12,645	)			(10,698	)			(10,680	)			(10,820	)			(11,586	)
Unearned compensation ─ ESOP		(9,778	)			(10,069	)			(10,361	)			(10,652	)			(10,944	)
Total stockholders' equity		578,260				560,970				551,363				541,549				529,835
Total liabilities and stockholders' equity	$	3,686,677			$	3,494,711			$	3,300,757			$	3,223,970			$	3,157,079

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Operations (Dollars in thousands, except per share data)
	Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
Interest and dividend income:
Interest on loans receivable	$	52,910			$	46,835			$	43,982			$	43,599			$	41,486
Interest on deposits due from banks		901				954				770				1,209				978
Interest and dividend on securities and FHLBNY stock		3,693				3,863				3,910				4,013				4,383
Total interest and dividend income		57,504				51,652				48,662				48,821				46,847
Interest expense:
Interest on certificates of deposit		7,313				6,785				6,415				6,706				6,553
Interest on other deposits		10,430				9,544				8,630				9,106				9,996
Interest on borrowings		5,772				5,262				5,391				5,075				5,050
Total interest expense		23,515				21,591				20,436				20,887				21,599
Net interest income		33,989				30,061				28,226				27,934				25,248
Provision for credit losses		3,219				2,148				1,656				1,078				1,364
Net interest income after provision for credit losses		30,770				27,913				26,570				26,856				23,884
Non-interest income:
Service charges and fees		611				600				539				542				539
Brokerage commissions		—				—				—				23				8
Late and prepayment charges		232				138				726				1,173				385
Income on sale of mortgage loans		188				161				120				139				166
Grant income		—				—				—				428				429
Loss on real property		(1,166	)			—				—				—				—
Other		985				628				657				1,174				(35	)
Total non-interest income		850				1,527				2,042				3,479				1,492
Non-interest expense:
Compensation and benefits		10,509				9,070				8,663				8,113				7,868
Occupancy and equipment		3,879				3,901				3,672				4,033				3,934
Data processing expenses		1,202				1,195				1,219				1,223				1,296
Direct loan expenses		89				187				121				116				155
Insurance and surety bond premiums		332				332				333				324				318
Office supplies, telephone and postage		147				152				193				186				170
Professional fees		1,305				1,470				1,346				1,392				1,409
Marketing and promotional expenses		144				190				228				94				184
Federal deposit insurance and regulatory assessment		495				408				409				97				266
Other operating expenses		1,134				1,230				1,056				1,056				1,018
Total non-interest expense		19,236				18,135				17,240				16,634				16,618
Income before income taxes		12,384				11,305				11,372				13,701				8,758
(Benefit) provision for income taxes		(5,865	)			2,810				2,749				3,565				2,250
Net income	$	18,249			$	8,495			$	8,623			$	10,136			$	6,508
Dividends on preferred shares		281				282				281				281				281
Net income available to common stockholders	$	17,968			$	8,213			$	8,342			$	9,855			$	6,227
Earnings per common share:
Basic	$	0.78			$	0.36			$	0.36			$	0.43			$	0.27
Diluted	$	0.76			$	0.35			$	0.36			$	0.42			$	0.27
Weighted average common shares outstanding:
Basic		23,086,892				23,053,460				22,988,317				22,837,044				22,766,195
Diluted		23,650,370				23,508,153				23,331,314				23,263,708				23,135,448

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Operations (Dollars in thousands, except per share data)
		For the Nine Months Ended September 30,
		2026				2025				Variance $				Variance %
Interest and dividend income:
Interest on loans receivable		$	143,727			$	118,913			$	24,814				20.87	%
Interest on deposits due from banks			2,625				3,453				(828	)			(23.98	%)
Interest and dividend on securities and FHLBNY stock			11,466				14,338				(2,872	)			(20.03	%)
Total interest and dividend income			157,818				136,704				21,114				15.45	%
Interest expense:
Interest on certificates of deposit			20,513				21,689				(1,176	)			(5.42	%)
Interest on other deposits			28,604				27,608				996				3.61	%
Interest on borrowings			16,425				15,530				895				5.76	%
Total interest expense			65,542				64,827				715				1.10	%
Net interest income			92,276				71,877				20,399				28.38	%
Provision for credit losses			7,023				2,705				4,318				159.63	%
Net interest income after provision for credit losses			85,253				69,172				16,081				23.25	%
Non-interest income:
Service charges and fees			1,750				1,575				175				11.11	%
Brokerage commissions			—				12				(12	)			(100.00	%)
Late and prepayment charges			1,096				1,612				(516	)			(32.01	%)
Income on sale of mortgage loans			469				483				(14	)			(2.90	%)
Income on sale of SBA loans			—				404				(404	)			(100.00	%)
Grant income			—				857				(857	)			(100.00	%)
Loss on real property			(1,166	)			—				(1,166	)			—	%
Other			2,270				990				1,280				129.29	%
Total non-interest income			4,419				5,933				(1,514	)			(25.52	%)
Non-interest expense:
Compensation and benefits			28,242				23,275				4,967				21.34	%
Occupancy and equipment			11,452				11,754				(302	)			(2.57	%)
Data processing expenses			3,616				3,636				(20	)			(0.55	%)
Direct loan expenses			397				784				(387	)			(49.36	%)
Insurance and surety bond premiums			997				930				67				7.20	%
Office supplies, telephone and postage			492				514				(22	)			(4.28	%)
Professional fees			4,121				4,140				(19	)			(0.46	%)
Marketing and promotional expenses			562				533				29				5.44	%
Federal deposit insurance and regulatory assessments			1,312				1,273				39				3.06	%
Other operating expenses			3,420				3,536				(116	)			(3.28	%)
Total non-interest expense			54,611				50,375				4,236				8.41	%
Income before income taxes			35,061				24,730				10,331				41.78	%
(Benefit) provision for income taxes			(306	)			6,163				(6,469	)			(104.97	%)
Net income		$	35,367			$	18,567			$	16,800				90.48	%
Dividends on preferred shares			844				844				—				—	%
Net income available to common stockholders		$	34,523			$	17,723			$	16,800				94.79	%
Earnings per common share:
Basic		$	1.50			$	0.78			$	0.72				92.31	%
Diluted		$	1.47			$	0.77			$	0.70				90.91	%
Weighted average common shares outstanding:
Basic			23,043,250				22,715,620				327,630				1.44	%
Diluted			23,496,728				22,992,655				504,073				2.19	%

Ponce Financial Group, Inc. and Subsidiaries Loans Receivable excluding Mortgage Loans Held for Sale
		As of
		September 30,								June 30,								March 31,								December 31,								September 30,
		2026								2026								2026								2025								2025
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential		$	413,064				13.26	%		$	426,343				14.65	%		$	431,377				15.82	%		$	434,374				16.54	%		$	444,602				17.67	%
Multifamily residential			1,051,642				33.76	%			1,057,612				36.35	%			915,333				33.58	%			756,542				28.83	%			688,574				27.39	%
Nonresidential properties			557,449				17.89	%			535,521				18.41	%			534,256				19.60	%			526,210				20.05	%			436,175				17.35	%
Construction and land			1,016,809				32.64	%			817,151				28.08	%			763,990				28.03	%			854,096				32.54	%			886,369				35.25	%
Total mortgage loans			3,038,964				97.55	%			2,836,627				97.49	%			2,644,956				97.03	%			2,571,222				97.96	%			2,455,720				97.66	%
Non-mortgage loans:
Business loans			75,852				2.43	%			72,438				2.49	%			80,366				2.95	%			53,063				2.02	%			58,012				2.31	%
Consumer loans			581				0.02	%			577				0.02	%			596				0.02	%			625				0.02	%			727				0.03	%
Total non-mortgage loans			76,433				2.45	%			73,015				2.51	%			80,962				2.97	%			53,688				2.04	%			58,739				2.34	%
Total loans, gross			3,115,397				100.00	%			2,909,642				100.00	%			2,725,918				100.00	%			2,624,910				100.00	%			2,514,459				100.00	%
Net deferred loan origination fees			(5,128	)							(2,348	)							(1,031	)							(203	)							351
Allowance for credit losses on loans			(29,168	)							(27,554	)							(26,238	)							(25,449	)							(24,764	)
Loans, net		$	3,081,101							$	2,879,740							$	2,698,649							$	2,599,258							$	2,490,046

Ponce Financial Group, Inc. and Subsidiaries Allowance for Credit Losses on Loans
	For the Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	27,554			$	26,238			$	25,449			$	24,764			$	24,100
Provision for credit losses on loans		1,996				1,669				1,293				1,526				864
Charge-offs:
Mortgage loans:
1-4 family residential		(5	)			—				—				(32	)			—
Multifamily residences		(65	)			—				—				—				—
Non-mortgage loans:
Business		(317	)			(354	)			(504	)			(801	)			(200	)
Consumer		—				—				—				(44	)			—
Total charge-offs		(387	)			(354	)			(504	)			(877	)			(200	)
Recoveries:
Mortgage loans:
1-4 family residential		—				1				—				1				—
Non-mortgage loans:
Business		5				—				—				35				—
Total recoveries		5				1				—				36				—
Net (charge-offs) recoveries		(382	)			(353	)			(504	)			(841	)			(200	)
Allowance for credit losses on loans at end of the period	$	29,168			$	27,554			$	26,238			$	25,449			$	24,764

Ponce Financial Group, Inc. and Subsidiaries Deposits
		As of
		September 30,								June 30,								March 31,								December 31,								September 30,
		2026								2026								2026								2025								2025
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Demand		$	244,860				10.34	%		$	251,919				11.10	%		$	241,012				11.29	%		$	208,250				10.18	%		$	192,595				9.34	%
Interest-bearing deposits:
NOW/IOLA accounts			76,392				3.23	%			71,987				3.17	%			78,192				3.66	%			84,012				4.10	%			75,051				3.64	%
Money market accounts			898,719				37.96	%			929,002				40.89	%			811,982				38.05	%			779,532				38.09	%			821,844				39.84	%
Reciprocal deposits			188,016				7.94	%			164,883				7.26	%			162,926				7.64	%			152,630				7.46	%			154,548				7.49	%
Savings accounts			118,727				5.01	%			115,233				5.07	%			118,373				5.55	%			117,708				5.75	%			117,401				5.69	%
Total NOW, money market, reciprocal and savings accounts			1,281,854				54.14	%			1,281,105				56.39	%			1,171,473				54.90	%			1,133,882				55.40	%			1,168,844				56.66	%
Certificates of deposit of $250K or more			202,702				8.56	%			194,462				8.56	%			258,093				12.10	%			202,500				9.89	%			209,819				10.17	%
Brokered certificates of deposit (1)			144,569				6.11	%			94,557				4.16	%			54,553				2.56	%			67,942				3.32	%			67,952				3.29	%
Listing service deposits (1)			994				0.04	%			994				0.04	%			1,243				0.06	%			4,150				0.20	%			4,150				0.20	%
All other certificates of deposit less than $250K			492,729				20.81	%			448,772				19.75	%			407,421				19.09	%			429,911				21.01	%			419,721				20.34	%
Total certificates of deposit			840,994				35.52	%			738,785				32.51	%			721,310				33.81	%			704,503				34.42	%			701,642				34.00	%
Total interest-bearing deposits			2,122,848				89.66	%			2,019,890				88.90	%			1,892,783				88.71	%			1,838,385				89.82	%			1,870,486				90.66	%
Total deposits		$	2,367,708				100.00	%		$	2,271,809				100.00	%		$	2,133,795				100.00	%		$	2,046,635				100.00	%		$	2,063,081				100.00	%

(1)	At September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, there were no individual listing service deposits amounting to $250,000 or more, and no individual brokered certificates of deposits amounting to $250,000 or more.

Ponce Financial Group, Inc. and Subsidiaries Nonperforming Assets
	As of
	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential	$	2,767			$	5,843			$	3,158			$	4,427			$	3,176
Multifamily residential		11,100				12,133				9,228				13,112				14,202
Nonresidential properties		—				—				—				—				—
Construction and land		4,100				5,040				7,061				8,247				8,907
Non-mortgage loans:
Business		146				77				427				667				880
Consumer		—				—				—				—				—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)	$	18,113			$	23,093			$	19,874			$	26,453			$	27,165
Non-accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential		483				475				477				410				698
Total non-accruing modifications to borrowers experiencing financial difficulty (1)		483				475				477				410				698
Total non-performing assets (2)	$	18,596			$	23,568			$	20,351			$	26,863			$	27,863
Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential		2,431				2,456				2,481				2,574				3,725
Nonresidential properties		598				618				613				621				629
Non-mortgage loans:
Business		168				175				185				190				196
Total accruing modifications to borrowers experiencing financial difficulty (1)	$	3,197			$	3,249			$	3,279			$	3,385			$	4,550
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)	$	21,793			$	26,817			$	23,630			$	30,248			$	32,413
Total non-performing assets to total assets		0.50	%			0.67	%			0.62	%			0.83	%			0.88	%

(1)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
(2)	Includes nonperforming mortgage loans held for sale.

Ponce Financial Group, Inc. and Subsidiaries Average Balance Sheets
	For the Three Months Ended September 30,
	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)	$	3,025,085			$	52,910			6.94	%		$	2,499,268			$	41,486			6.59	%
Securities (3)		332,919				3,067			3.65	%			418,513				3,913			3.71	%
Other (4)		133,827				1,527			4.53	%			119,262				1,448			4.82	%
Total interest-earning assets		3,491,831				57,504			6.53	%			3,037,043				46,847			6.12	%
Non-interest-earning assets		97,667											96,095
Total assets	$	3,589,498										$	3,133,138
Interest-bearing liabilities:
NOW/IOLA	$	76,801			$	145			0.75	%		$	78,526			$	137			0.69	%
Money market		1,109,784				10,254			3.67	%			958,277				9,831			4.07	%
Savings		119,109				31			0.10	%			119,159				28			0.09	%
Certificates of deposit		794,477				7,313			3.65	%			698,019				6,553			3.72	%
Total deposits		2,100,171				17,743			3.35	%			1,853,981				16,549			3.54	%
Borrowings		624,361				5,772			3.67	%			521,100				5,050			3.84	%
Total interest-bearing liabilities		2,724,532				23,515			3.42	%			2,375,081				21,599			3.61	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		251,823				—							199,922				—
Other non-interest-bearing liabilities		43,730				—							31,406				—
Total non-interest-bearing liabilities		295,553				—							231,328				—
Total liabilities		3,020,085				23,515							2,606,409				21,599
Total equity		569,413											526,729
Total liabilities and total equity	$	3,589,498							3.42	%		$	3,133,138							3.61	%
Net interest income					$	33,989										$	25,248
Net interest rate spread (5)									3.11	%										2.51	%
Net interest-earning assets (6)	$	767,299										$	661,962
Net interest margin (7)									3.86	%										3.30	%
Average interest-earning assets to interest-bearing liabilities									128.16	%										127.87	%

(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 Average Balance Sheets
	For the Nine Months Ended September 30,
	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)	$	2,836,725			$	143,727				6.77	%		$	2,439,280			$	118,913				6.52	%
Securities (3)		346,223				9,474				3.66	%			445,130				12,680				3.81	%
Other (4)		136,792				4,617				4.51	%			135,600				5,111				5.04	%
Total interest-earning assets		3,319,740				157,818				6.36	%			3,020,010				136,704				6.05	%
Non-interest-earning assets		96,477												103,059
Total assets	$	3,416,217											$	3,123,069
Interest-bearing liabilities:
NOW/IOLA	$	76,737			$	397				0.69	%		$	73,034			$	352				0.64	%
Money market		1,029,534				28,120				3.65	%			884,115				27,172				4.11	%
Savings		120,029				87				0.10	%			118,656				84				0.09	%
Certificates of deposit		752,638				20,513				3.64	%			754,531				21,689				3.84	%
Total deposits		1,978,938				49,117				3.32	%			1,830,336				49,297				3.60	%
Borrowings		594,800				16,425				3.69	%			536,851				15,530				3.87	%
Total interest-bearing liabilities		2,573,738				65,542				3.40	%			2,367,187				64,827				3.66	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		239,239				—								199,978				—
Other non-interest-bearing liabilities		44,440				—								37,206				—
Total non-interest-bearing liabilities		283,679				—								237,184				—
Total liabilities		2,857,417				65,542								2,604,371				64,827
Total equity		558,800												518,698
Total liabilities and total equity	$	3,416,217								3.40	%		$	3,123,069								3.66	%
Net interest income					$	92,276											$	71,877
Net interest rate spread (5)										2.96	%											2.39	%
Net interest-earning assets (6)	$	746,002											$	652,823
Net interest margin (7)										3.72	%											3.18	%
Average interest-earning assets to
interest-bearing liabilities										128.99	%											127.58	%

(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
	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				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				698,810				698,810				750,785				885,586
Common shares outstanding at end of period		24,187,901				24,187,901				24,187,901				24,135,926				24,001,125
Book value per common share	$	14.60			$	13.89			$	13.49			$	13.12			$	12.70
Tangible book value per common share (1)	$	14.60			$	13.89			$	13.49			$	13.12			$	12.70

(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 common 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 J. Vaccaro
sergio.vaccaro@poncebank.net
718-931-9000

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Ponce Financial Group's third-quarter 2026 earnings?

Net income available to common stockholders was $18.0 million, or $0.76 per diluted share, for the three months ended September 30, 2026. That compares with $8.2 million, or $0.35, in the prior quarter and $6.2 million, or $0.27, a year earlier.

What unusual items affected PDLB's third-quarter 2026 results?

Results included a $10.5 million deferred-tax valuation allowance release, a $1.2 million property loss and a $0.4 million investment gain. The allowance related to New York State and New York City deferred tax assets. The property loss followed the move of the Flushing property to held for sale.

How was Ponce Financial Group's third-quarter 2026 credit-loss provision allocated?

The $3.2 million loan credit-loss provision consisted of $2.0 million on funded loans and $1.2 million on unfunded loans.

What drove Ponce Financial Group's higher third-quarter 2026 operating expenses?

Compensation and benefits increased because of new hires, rising $1.4 million sequentially and $2.6 million year over year. A $0.2 million sequential decline in professional fees partly offset the compensation increase.