Earnings jump at Ponce Financial (NASDAQ: PDLB) as Q1 net income hits $8.6M

Rhea-AI Filing Summary

Ponce Financial Group, Inc. reported stronger results for the quarter ended March 31, 2026. Net income rose to $8.6M from $6.0M a year earlier, with net income available to common stockholders of $8.3M. Basic and diluted earnings per common share increased to $0.36 from $0.25.

Total assets reached $3.30B, driven mainly by loan growth, as loans receivable, net, increased to $2.70B. Deposits grew to $2.13B, while Federal Home Loan Bank advances stood at $571.1M. Net interest income improved to $28.2M, supported by higher interest on loans receivable.

Credit quality metrics remained controlled. The allowance for credit losses on loans was $26.2M, up from $25.4M, and nonaccrual loans totaled $20.4M, down from $26.9M at year-end 2025. The company also continues to carry $225.0M of ECIP preferred stock paying a current 0.5% dividend rate.

Insights

Banking sector equity analyst

Ponce posted solid Q1 2026 earnings growth with controlled credit costs.

Ponce Financial Group delivered higher profitability as net income rose to $8.6M from $6.0M, and net interest income increased to $28.2M. Loan balances expanded to $2.73B gross, indicating continued portfolio growth across multifamily, construction, and business lending.

Credit quality stayed manageable. The allowance for credit losses on loans increased modestly to $26.2M while nonaccrual loans declined to $20.4M from $26.9M at year-end. Charge-offs were limited, mainly in business loans, and off-balance-sheet allowance for credit losses rose to $2.5M, reflecting conservative treatment of unfunded commitments.

Funding remains deposit-centric, with total deposits up to $2.13B, complemented by $571.1M of FHLBNY term advances at a weighted average rate of 3.67%. The ECIP preferred stock of $225.0M continues to provide capital, with a 0.5% dividend rate tied to qualified and deep impact lending performance.

Key Figures

Total assets: $3.30B Net income: $8.6M EPS (basic): $0.36 +5 more

8 metrics

Total assets $3.30B As of March 31, 2026

Net income $8.6M Q1 2026 vs $6.0M in Q1 2025

EPS (basic) $0.36 Q1 2026, up from $0.25 in Q1 2025

Loans receivable, net $2.70B As of March 31, 2026

Total deposits $2.13B As of March 31, 2026

FHLBNY advances $571.1M Outstanding term advances at March 31, 2026

Allowance for credit losses on loans $26.2M As of March 31, 2026

Off-balance-sheet commitments $497.6M Mortgage commitments and credit lines at March 31, 2026

Key Terms

allowance for credit losses, ECIP, Deep Impact Lending, mortgage-backed securities, +2 more

6 terms

allowance for credit losses financial

"Allowance for credit losses on loans was $26,238 at March 31, 2026"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

ECIP financial

"issued 225,000 shares of the Company’s Preferred Stock pursuant to the Treasury’s ECIP"

Deep Impact Lending financial

"an average of at least 60% of the Company’s Total Originations qualifies as “Deep Impact Lending”"

mortgage-backed securities financial

"Mortgage-Backed Securities: Collateralized Mortgage Obligations, FHLMC Certificates, FNMA Certificates"

A mortgage-backed security is an investment made by pooling many home loans and selling the right to the borrowers’ monthly payments to investors, so you receive a stream of principal and interest much like collecting payments on a bundle of IOUs. It matters to investors because it provides regular income but carries risks from homeowners missing payments or paying off loans early, and its value moves with interest rates and housing market conditions.

troubled debt restructuring financial

"certain loans as troubled debt restructuring (“TDR”) loans when credit terms to a borrower in financial difficulty were modified"

fair value hierarchy financial

"The following fair value hierarchy is used based on the lowest level of input significant to the fair value measurement"

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-41255

Ponce Financial Group, Inc.

(Exact Name of Registrant as Specified in its Charter)

Maryland	87-1893965
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2244 Westchester Avenue Bronx, NY	10462
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (718) 931-9000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, par value $0.01 per share		PDLB		The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		☐		Accelerated filer		☒
Non-accelerated filer		☐		Smaller reporting company		☐
Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 5, 2026, the registrant had 24,187,901 shares of common stock, $0.01 par value per share, outstanding.

Auditor Firm Id: 686 Auditor Name: Forvis Mazars, LLP Auditor Location: New York, New York, USA

Table of Contents

Table of Contents

				Page
PART I.		FINANCIAL INFORMATION		1
Item 1.		Consolidated Financial Statements		1
		Consolidated Statements of Financial Condition (Unaudited)		1
		Consolidated Statements of Operations (Unaudited)		2
		Consolidated Statements of Comprehensive Income (Unaudited)		3
		Consolidated Statements of Stockholders’ Equity (Unaudited)		4
		Consolidated Statements of Cash Flows (Unaudited)		5
		Notes to Consolidated Financial Statements (Unaudited)		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		30
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		49
Item 4.		Controls and Procedures		49
PART II.		OTHER INFORMATION		50
Item 1.		Legal Proceedings		50
Item 1A.		Risk Factors		50
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		50
Item 3.		Defaults Upon Senior Securities		50
Item 4.		Mine Safety Disclosures		50
Item 5.		Other Information		50
Item 6.		Exhibits		51
Signatures				52

i

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements.

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

March 31, 2026 and December 31, 2025

(Dollars in thousands, except share data)

		March 31,				December 31,
		2026				2025
		(unaudited)
ASSETS
Cash and due from banks:
Cash		$	27,429			$	28,511
Interest-bearing deposits			89,817				97,643
Total cash and cash equivalents			117,246				126,154
Available-for-sale securities, at fair value (Note 3)			87,150				92,196
Held-to-maturity securities, net of allowance for credit losses of $211 at March 31, 2026 and $236 at December 31, 2025; at amortized cost (fair value at March 31, 2026 $258,007 and at December 31. 2025 $268,875) (Note 3)			263,514				272,982
Placement with banks			249				249
Mortgage loans held for sale, at fair value (Note 4)			2,127				3,388
Loans receivable, net of allowance for credit losses of $26,238 at March 31, 2026 and $25,449 at December 31, 2025 (Note 5)			2,698,649				2,599,258
Accrued interest receivable			19,274				17,905
Premises and equipment, net			15,159				15,638
Right of use assets (Note 6)			27,633				27,583
Federal Home Loan Bank of New York (FHLBNY) stock, at cost			28,180				29,309
Federal Reserve Bank of New York (FRBNY) stock, at cost			10,706				10,698
Deferred tax assets			11,729				11,501
Other assets			19,141				17,109
Total assets		$	3,300,757			$	3,223,970
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits (Note 7)		$	2,133,795			$	2,046,635
Borrowings (Note 8)			571,100				596,100
Operating lease liabilities			29,429				29,353
Accrued interest payable			4,338				3,788
Other liabilities			10,732				6,545
Total liabilities			2,749,394				2,682,421
Commitments and contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized:
Series A, senior non-cumulative perpetual, $1,000 per share liquidation preference, 225,000 shares issued and outstanding as of March 31, 2026 and December 31, 2025			225,000				225,000
Common stock, $0.01 par value; 200,000,000 shares authorized; 24,886,711 shares issued at both March 31, 2026 and December 31, 2025; 24,187,901 shares outstanding as of March 31, 2026 and 24,135,926 shares outstanding as of December 31, 2025			249				249
Treasury stock, at cost; 698,810 shares as of March 31, 2026 and 750,785 shares as of December 31, 2025			(5,738	)			(6,164	)
Additional paid-in-capital			209,219				208,604
Retained earnings			143,674				135,332
Accumulated other comprehensive loss (Note 13)			(10,680	)			(10,820	)
Unearned compensation ─ ESOP; 1,134,808 shares as of March 31, 2026 and 1,168,244  shares as of December 31, 2025			(10,361	)			(10,652	)
Total stockholders' equity			551,363				541,549
Total liabilities and stockholders' equity		$	3,300,757			$	3,223,970

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

Three Months Ended March 31, 2026 and 2025

(Dollars in thousands, except share data)

		For the Three Months Ended March 31,
		2026				2025
Interest and dividend income:
Interest on loans receivable		$	43,982			$	37,136
Interest on deposits due from banks			770				1,668
Interest and dividend on securities and FHLBNY stock			3,910				5,193
Total interest and dividend income			48,662				43,997
Interest expense:
Interest on certificates of deposit			6,415				7,754
Interest on other deposits			8,630				8,554
Interest on borrowings			5,391				5,486
Total interest expense			20,436				21,794
Net interest income			28,226				22,203
Provision (benefit) for credit losses (Note 3) (Note 5)			1,656				(285	)
Net interest income after provision (benefit) for credit losses			26,570				22,488
Non-interest income:
Service charges and fees			539				525
Brokerage commissions			—				4
Late and prepayment charges			726				697
Income on sale of mortgage loans			120				148
Income on sale of SBA loans			—				404
Other			657				603
Total non-interest income			2,042				2,381
Non-interest expense:
Compensation and benefits			8,663				7,780
Occupancy and equipment			3,672				3,913
Data processing expenses			1,219				1,152
Direct loan expenses			121				388
Insurance and surety bond premiums			333				315
Office supplies, telephone and postage			193				170
Professional fees			1,346				1,364
Marketing and promotional expenses			228				83
Federal deposit insurance and regulatory assessment			409				461
Other operating expenses			1,056				1,262
Total non-interest expense			17,240				16,888
Income before income taxes			11,372				7,981
Provision for income taxes			2,749				2,022
Net income		$	8,623			$	5,959
Dividends on preferred shares			281				281
Net income available to common stockholders		$	8,342			$	5,678
Earnings per common share (Note 9):
Basic		$	0.36			$	0.25
Diluted		$	0.36			$	0.25
Weighted average common shares outstanding (Note 9):
Basic			22,988,317				22,662,916
Diluted			23,331,314				22,876,740

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended March 31, 2026 and 2025

(In thousands)

		For the Three Months Ended March 31,
		2026				2025
Net income		$	8,623			$	5,959
Net change in unrealized gain on securities:
Unrealized gain			178				2,264
Income tax effect			(38	)			(482	)
Total other comprehensive income, net of tax			140				1,782
Total comprehensive income			8,763				7,741
Less: Dividends on preferred shares			281				281
Total comprehensive income available to common stockholders		$	8,482			$	7,460

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Unaudited)

Three Months Ended March 31, 2026 and 2025

(Dollars in thousands, except share data)

																														Accumulated				Unallocated
																		Treasury				Additional								Other				Common
		Preferred Stock								Common Stock								Stock,				Paid-in				Retained				Comprehensive				Stock
		Shares				Amount				Shares				Amount				At Cost				Capital				Earnings				Loss				of ESOP				Total
Balance, December 31, 2025			225,000			$	225,000				24,135,926			$	249			$	(6,164	)		$	208,604			$	135,332			$	(10,820	)		$	(10,652	)		$	541,549
Net income			—				—				—				—				—				—				8,623				—				—				8,623
Preferred stock dividend			—				—				—				—				—				—				(281	)			—				—				(281	)
Other comprehensive income, net of tax			—				—				—				—				—				—				—				140				—				140
Release of restricted stock units			—				—				26,094				—				214				(214	)							—				—				—
Exercise of stock options			—				—				25,881				—				212				10				—				—				—				222
ESOP shares committed to be released (33,436 shares)			—				—				—				—				—				267				—				—				291				558
Share-based compensation			—				—				—				—				—				552				—				—				—				552
Balance, March 31, 2026			225,000			$	225,000				24,187,901			$	249			$	(5,738	)		$	209,219			$	143,674			$	(10,680	)		$	(10,361	)		$	551,363

																														Accumulated				Unallocated
																		Treasury				Additional								Other				Common
		Preferred Stock								Common Stock								Stock,				Paid-in				Retained				Comprehensive				Stock
		Shares				Amount				Shares				Amount				At Cost				Capital				Earnings				Loss				of ESOP				Total
Balance, December 31, 2024			225,000			$	225,000				23,961,214			$	249			$	(7,707	)		$	207,319			$	107,754			$	(15,297	)		$	(11,818	)		$	505,500
Net income			—				—				—				—				—				—				5,959				—				—				5,959
Preferred stock dividend			—				—				—				—				—				—				(281	)			—				—				(281	)
Other comprehensive income, net of tax			—				—				—				—				—				—				—				1,782				—				1,782
Release of restricted stock units			—				—				4,977				—				66				(66	)			—				—				—				—
ESOP shares committed to be released (33,436 shares)			—				—				—				—				—				132				—				—				291				423
Share-based compensation			—				—				—				—				—				503				—				—				—				503
Balance, March 31, 2025			225,000			$	225,000				23,966,191			$	249			$	(7,641	)		$	207,888			$	113,432			$	(13,515	)		$	(11,527	)		$	513,886

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended March 31, 2026 and 2025

(In thousands)

		Three Months Ended
		March 31,
		2026				2025
Cash Flows From Operating Activities:
Net income		$	8,623			$	5,959
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums/discounts on securities, net			(3	)			(22	)
Gain on sale of loans			(120	)			(552	)
Provision (benefit) for credit losses			1,656				(285	)
Depreciation and amortization			1,232				1,207
ESOP compensation expense			587				560
Share-based compensation expense			552				503
Deferred income taxes			(266	)			(37	)
Changes in assets and liabilities:
Decrease in mortgage loans held for sale, fair value			1,381				2,317
Increase in accrued interest receivable			(1,369	)			(1,237	)
(Increase) decrease in other assets			(2,032	)			8,448
Increase in accrued interest payable			550				916
Decrease in operating lease liabilities			(684	)			(730	)
Increase (decrease) in other liabilities			3,774				(3,960	)
Net cash provided by operating activities			13,881				13,087
Cash Flows From Investing Activities:
Net redemption and (purchase) of FHLBNY stock			1,129				3,375
Net redemption and (purchase) of FRBNY stock			(8	)			—
Proceeds from maturities, calls and principal repayments on securities			14,720				13,603
Proceeds from sale of loans			1,067				5,738
Net increase in loans			(101,751	)			(90,397	)
Purchases of premises and equipment			(47	)			(154	)
Net cash used in investing activities			(84,890	)			(67,835	)
Cash Flows From Financing Activities:
Net increase in deposits			87,160				120,083
Net repayment from borrowings			(25,000	)			(75,000	)
Stock options exercised			222				—
Dividends paid on preferred stock			(281	)			(281	)
Net cash provided by financing activities			62,101				44,802
Net decrease in cash and cash equivalents			(8,908	)			(9,946	)
Cash and cash equivalents at beginning of period			126,154				139,839
Cash and cash equivalents at end of period		$	117,246			$	129,893
Supplemental disclosures of cash flow information:
Cash paid for interest on deposits and borrowings		$	19,886			$	20,878
Cash paid for income taxes		$	520			$	409
Operating lease assets in exchange for operating lease liabilities		$	760			$	—

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1. Nature of Business

Basis of Presentation and Consolidation:

Ponce Financial Group, Inc. (hereafter referred to as “we,” “our,” “us,” “Ponce Financial Group, Inc.,” or the “Company”) is a financial holding company and the holding company of Ponce Bank, National Association. (“Ponce Bank” or the “Bank”), a national bank. The Company’s Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary Ponce Bank. All significant intercompany transactions and balances have been eliminated in consolidation. For further information, refer to the audited Consolidated Financial Statements and Notes included in the Company' Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 13, 2026 (the "2025 Form 10-K").

Use of Estimates: In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the consolidated statement of financial condition, and revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of loans held for sale, the valuation of deferred tax assets and investment securities and the estimates relating to the valuation for share-based awards.

Segment Reporting: Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment and one reportable segment.

Note 2. Preferred Stock

On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP. Under the ECIP, Treasury provided investment capital directly to depository institutions that are CDFIs or MDIs or their holding companies, to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, in low-income and underserved communities. No dividends accrued or were due for the first two years after issuance. For years three through ten, depending upon the level of qualified and/or deep impact lending made in targeted communities, as defined in the ECIP guidelines, dividends will be at an annual rate of either 2.0%, 1.25% or 0.5% and, thereafter, will be fixed at one of the foregoing rates. If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates. Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending requirements for the lower dividend rates and/or to qualify for the purchase option under the Repurchase Agreement (as described below).

Holders of Preferred Stock generally do not have any voting rights, with the exception of voting rights on certain matters as outlined in the Certificate of Designations. The Treasury is the holder of the Preferred Stock and a governmental entity, and the Treasury may hold interests that are different from a private investor in exercising its voting and other rights. In the event of a liquidation, dissolution or winding up of the Company, the Preferred Stock will be entitled to a liquidation preference, subject to certain limitations, in the amount of the sum of $1,000 per share plus declared and unpaid dividends (without accumulation of undeclared dividends) on each share.

As a participant in the ECIP, the Company must comply with certain operating requirements. Specifically, the Company must adopt the Treasury's standards for executive compensation and luxury expenses for the period during which the Treasury holds equity issued under the ECIP. These restrictions may make it difficult to adequately compensate our management team, which could impact our ability to retain qualified management. Additionally, under the ECIP regulations, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.3 million for the three months ended March 31, 2026 and $0.3 million for the three months ended March 31, 2025.

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Notes to Consolidated Financial Statements (Unaudited)

On December 20, 2024, the Company entered into an ECIP Securities Purchase Option Agreement (the “Repurchase Agreement”) with Treasury. Pursuant to the Repurchase Agreement, Treasury has granted the Company an option to purchase all of the Preferred Stock during the Option Period, which is the first fifteen years following the Original Closing Date. The purchase price for the Preferred Stock pursuant to the purchase option is determined based on a formula equal to the present value of the Preferred Stock, calculated as set forth in the Repurchase Agreement, together with any accrued and unpaid dividends thereon, as of the closing date. Subject to variations in interest rates and the equity risk premium, which are components included in the purchase price calculation, the Company presently expects that the purchase price will be at a substantial discount from the face value of the Preferred Stock.

The purchase option may not be exercised unless and until at least one of the Threshold Conditions under the Repurchase Agreement has been met. The Threshold Conditions are as follows: during the ten years that follow the Original Closing Date (the “ECIP Period”) either (1) over any sixteen consecutive quarters, an average of at least 60% of the Company’s Total Originations, as defined pursuant to the terms of the ECIP, qualifies as “Deep Impact Lending,” as defined pursuant to the terms of the ECIP (the “Deep Impact Condition”); (2) over any twenty-four consecutive quarters, an average of at least 85% of the Company’s Total Originations qualifies as “Qualified Lending,” as defined pursuant to the terms of the ECIP (the “Qualified Lending Condition”); or (3) the Preferred Stock has a dividend rate of no more than 0.5%, which dividend rate is calculated pursuant to the ECIP and the terms thereof, at each of six consecutive Reset Dates, as defined in the ECIP.

The earliest possible date by which a Threshold Condition may be met is June 30, 2026, which is the end of the sixteenth consecutive quarter following the Original Closing Date. However, the Company does not currently meet any of the Threshold Conditions to exercise the purchase option, and there can be no assurance if and when the Threshold Conditions will be met. The closing of the repurchase of the Preferred Stock, if consummated, would occur between thirty and ninety days following the satisfaction of the Threshold Condition and all other applicable conditions. At present, the Company has reported 15 consecutive quarters for which it has met both the Deep Impact and Qualified Lending Conditions. The Preferred Stock currently has a dividend rate of 0.5%.

In addition to the requirement that a Threshold Condition be met, the Repurchase Agreement requires that the Company meet certain other eligibility conditions in order to exercise the purchase option in the future, including compliance with the terms of the original ECIP purchase agreement and the terms of the Preferred Stock, maintaining qualification as either a CDFI or an MDI, and meeting other legal and regulatory criteria. Although the Company currently meets the general eligibility criteria, other than satisfying one of the Threshold Conditions, there can be no assurance that the Company will meet such criteria, or any amended or additional criteria that may be imposed, in the future.

The purchase option granted under the agreement is a freestanding financial instrument under GAAP. The Company analyzed the fair value of the repurchase option in accordance with ASC Topic 820 “Fair Value Measurements” and determined that the purchase option value is de minimis as of December 20, 2024, December 31, 2025 and March 31, 2026.

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Notes to Consolidated Financial Statements (Unaudited)

Note 3. Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities at March 31, 2026 and December 31, 2025 are summarized as follows:

		March 31, 2026
						Gross				Gross
		Amortized				Unrealized				Unrealized
		Cost				Gains				Losses				Fair Value
		(in thousands)
Available-for-Sale Securities:
Corporate Bonds		$	13,500			$	—			$	(558	)		$	12,942
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			30,077				—				(4,494	)			25,583
FHLMC Certificates			7,660				—				(790	)			6,870
FNMA Certificates			49,414				—				(7,735	)			41,679
GNMA Certificates			75				1				—				76
Total available-for-sale securities		$	100,726			$	1			$	(13,577	)		$	87,150
Held-to-Maturity Securities:
Corporate Bonds		$	7,500			$	25			$	(192	)		$	7,333
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			155,069				41				(3,453	)			151,657
FHLMC Certificates			3,107				42				(119	)			3,030
FNMA Certificates			87,438				—				(2,125	)			85,313
SBA Certificates			10,611				63				—				10,674
Allowance for Credit Losses			(211	)			—				—				—
Total held-to-maturity securities		$	263,514			$	171			$	(5,889	)		$	258,007

(1)Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.

		December 31, 2025
						Gross				Gross
		Amortized				Unrealized				Unrealized
		Cost				Gains				Losses				Fair Value
		(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds		$	2,999			$	—			$	(20	)		$	2,979
Corporate Bonds			13,501				—				(738	)			12,763
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			30,839				—				(4,493	)			26,346
FHLMC Certificates			7,915				—				(790	)			7,125
FNMA Certificates			50,620				—				(7,714	)			42,906
GNMA Certificates			76				1				—				77
Total available-for-sale securities		$	105,950			$	1			$	(13,755	)		$	92,196
Held-to-Maturity Securities:
Corporate Bonds		$	7,500			$	36			$	(138	)		$	7,398
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			160,786				100				(2,876	)			158,010
FHLMC Certificates			3,133				22				(119	)			3,036
FNMA Certificates			90,868				53				(1,453	)			89,468
SBA Certificates			10,931				32				—				10,963
Allowance for Credit Losses			(236	)			—				—				—
Total held-to-maturity securities		$	272,982			$	243			$	(4,586	)		$	268,875

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

(1)Comprised of FHLMC, FNMA and GNMA issued securities.

The Company’s securities portfolio had 33 and 34 available-for-sale securities and 28 and 28 held-to-maturity securities at March 31, 2026 and December 31, 2025, respectively. There were no available-for-sale and held-to-maturity securities sold during the three months ended March 31, 2026 and for the year ended December 31, 2025. There was one available-for-sale security in the amount of $3.0 million that matured during the three months ended March 31, 2026. There were four available-for-sale securities in the total amount of $8.3 million and three held-to-maturity securities in the total amount of $50.0 million that matured or were called during the year ended December 31, 2025. The Company did not purchase any available-for-sale securities and held-to-maturity securities during the three months ended March 31, 2026 and during the year ended December 31, 2025.

The following table presents the Company's gross unrealized losses and fair values of its securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2026 and December 31, 2025:

		March 31, 2026
		Securities With Gross Unrealized Losses
		Less Than 12 Months								12 Months or More								Total				Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
		(in thousands)
Available-for-Sale Securities:
Corporate Bonds		$	—			$	—			$	12,942			$	(558	)		$	12,942			$	(558	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			—				—				25,583				(4,494	)			25,583				(4,494	)
FHLMC Certificates			—				—				6,870				(790	)			6,870				(790	)
FNMA Certificates			—				—				41,679				(7,735	)			41,679				(7,735	)
Total available-for-sale securities		$	—			$	—			$	87,074			$	(13,577	)		$	87,074			$	(13,577	)
Held-to-Maturity Securities:
Corporate Bonds		$	—			$	—			$	5,308			$	(192	)		$	5,308			$	(192	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			16,013				(21	)			127,773				(3,432	)			143,786				(3,453	)
FHLMC Certificates			—				—				605				(119	)			605				(119	)
FNMA Certificates			3,464				(48	)			81,849				(2,077	)			85,313				(2,125	)
Total held-to-maturity securities		$	19,477			$	(69	)		$	215,535			$	(5,820	)		$	235,012			$	(5,889	)

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Notes to Consolidated Financial Statements (Unaudited)

		December 31, 2025
		Securities With Gross Unrealized Losses
		Less Than 12 Months								12 Months or More								Total				Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
		(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds		$	—			$	—			$	2,979			$	(20	)		$	2,979			$	(20	)
Corporate Bonds			—				—				12,763				(738	)			12,763				(738	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			—				—				26,346				(4,493	)			26,346				(4,493	)
FHLMC Certificates			—				—				7,125				(790	)			7,125				(790	)
FNMA Certificates			—				—				42,906				(7,714	)			42,906				(7,714	)
Total available-for-sale securities		$	—			$	—			$	92,119			$	(13,755	)		$	92,119			$	(13,755	)
Held-to-Maturity Securities:
Corporate Bonds		$	—			$	—			$	5,362			$	(138	)		$	5,362			$	(138	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			16,561				(50	)			132,942				(2,826	)			149,503				(2,876	)
FHLMC Certificates			—				—				616				(119	)			616				(119	)
FNMA Certificates			—				—				85,670				(1,453	)			85,670				(1,453	)
Total held-to-maturity securities		$	16,561			$	(50	)		$	224,590			$	(4,536	)		$	241,151			$	(4,586	)

At March 31, 2026 and December 31, 2025, the Company had 32 and 33 available-for-sale securities and 22 and 21 held-to-maturity securities at March 31, 2026 and December 31, 2025, respectively, with gross unrealized loss positions. Management reviewed the financial condition of the entities underlying the securities at both March 31, 2026 and December 31, 2025. The unrealized losses related to the Company debt securities were issued by U.S. government-sponsored entities and agencies and corporate bonds. The Company does not believe that the debt securities that were in an unrealized loss position as of March 31, 2026 represents a credit loss impairment. The gross unrealized loss positions related to mortgage-backed securities and other obligations issued by the U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Total gross unrealized losses were primarily attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities.

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Notes to Consolidated Financial Statements (Unaudited)

Management reviewed the collectability of the corporate bonds taking into consideration of such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting date. Management believes the unrealized losses on the corporate bonds are primarily attributable to changes in the interest rates and not changes in the credit quality of the issuers of the corporate bonds.

The following is a summary of maturities of securities at March 31, 2026. Amounts are shown by contractual maturity. Because borrowers for mortgage-backed securities have the right to prepay obligations with or without prepayment penalties, at any time, these securities are included as a total within the table.

		March 31, 2026
		Amortized				Fair
		Cost				Value
		(in thousands)
Available-for-Sale Securities:
Corporate Bonds:
Amounts maturing:
Three months or less		$	—			$	—
More than three months through one year			—				—
More than one year through five years			4,000				3,602
More than five years through ten years			9,500				9,340
			13,500				12,942
Mortgage-Backed Securities			87,226				74,208
Total available-for-sale securities		$	100,726			$	87,150
Held-to-Maturity Securities:
Corporate Bonds:
Amounts maturing:
Three months or less		$	—			$	—
More than three months through one year			—				—
More than one year through five years			—				—
More than five years through ten years			7,500				7,333
			7,500				7,333
Mortgage-Backed Securities			256,225				250,674
Allowance for Credit Losses			(211	)			—
Total held-to-maturity securities		$	263,514			$	258,007

At March 31, 2026 and December 31, 2025, no securities were pledged as collateral for borrowing activities.

The following table presents the activity in the allowance for credit losses for held-to-maturity securities:

		For the Three
		Months Ended				For the Year Ended
		March 31, 2026				December 31, 2025
		(in thousands)
Allowance for credit losses on securities at beginning of period		$	236			$	216
(Benefit) provision for credit losses			(25	)			20
Allowance for credit losses on securities at end of period		$	211			$	236

At March 31, 2026 and December 31, 2025, the entire allowance for credit losses on securities was allocated to corporate bonds.

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Notes to Consolidated Financial Statements (Unaudited)

Note 4. Mortgage Loans Held-for-Sale

The following table provides the fair value and contractual principal balance outstanding of mortgage loans held-for-sale accounted for under the fair value option:

		March 31,				December 31,
		2026				2025
		(in thousands)
Mortgage loans held-for-sale, at fair value		$	2,127			$	3,388
Mortgage loans held-for-sale, contractual principal outstanding			2,084				3,337
Fair value less unpaid principal balance		$	43			$	51

At March 31, 2026 and December 31, 2025, the Company had 7 loans and 10 loans in the amount of $2.1 million and $3.4 million, respectively, that were classified as held-for-sale and accounted for under the fair value option accounting guidance for financial assets and financial liabilities.

At March 31, 2026 and December 31, 2025, there were no mortgage loans held for sale that were greater than 90 days past due and non-accrual with a substandard risk rating.

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Notes to Consolidated Financial Statements (Unaudited)

Note 5. Loans Receivable, Net and Allowance for Credit Losses

Loans receivable, net at March 31, 2026 and December 31, 2025 are summarized as follows:

		March 31,				December 31,
		2026				2025
		(in thousands)
Mortgage loans:
1-4 Family residential (1)		$	431,377			$	434,374
Multifamily residential			915,333				756,542
Nonresidential properties			534,256				526,210
Construction and land			763,990				854,096
Total mortgage loans			2,644,956				2,571,222
Nonmortgage loans:
Business loans			80,366				53,063
Consumer loans			596				625
Total non-mortgage loans			80,962				53,688
Total loans, gross			2,725,918				2,624,910
Net deferred loan origination fees			(1,031	)			(203	)
Allowance for Credit Losses			(26,238	)			(25,449	)
Loans receivable, net		$	2,698,649			$	2,599,258

(1)Includes both investor owned and owner occupied 1-4 family residential properties combined, which were previously reported separately.

The Company’s lending activities are conducted principally in metropolitan New York City. The Company primarily grants loans secured by real estate to individuals and businesses pursuant to an established credit policy applicable to each type of lending activity in which it engages. Although collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrowers’ ability to generate continuing cash flows. The Company also evaluates the collateral and creditworthiness of each customer. The credit policy provides that depending on the borrowers’ creditworthiness and type of collateral, credit may be extended up to predetermined percentages of the market value of the collateral or on an unsecured basis. Real estate is the primary form of collateral. Other important forms of collateral are time deposits and marketable securities.

For disclosures related to the allowance for credit losses and credit quality, the Company does not have any disaggregated classes of loans below the segment level.

Credit-Quality Indicators: Internally assigned risk ratings are used as credit-quality indicators, which are reviewed by management on a quarterly basis.

The objectives of the Company’s risk-rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for credit losses.

Below are the definitions of the internally assigned risk ratings:

•Strong Pass – Loans to a new or existing borrower collateralized at least 90 percent by an unimpaired deposit account at the Company.

•Good Pass – Loans to a new or existing borrower in a well-established enterprise in excellent financial condition with strong liquidity and a history of consistently high level of earnings, cash flow and debt service capacity.

•Satisfactory Pass – Loans to a new or existing borrower of average strength with acceptable financial condition, satisfactory record of earnings and sufficient historical and projected cash flow to service the debt.

•Performance Pass – Existing loans that evidence strong payment history but document less than average strength, financial condition, record of earnings, or projected cash flows with which to service the debt.

•Special Mention – Loans in this category are currently protected but show one or more potential weaknesses and risks which may inadequately protect collectability or borrower’s ability to meet repayment terms at some future date if the weakness or weaknesses are not monitored or remediated.

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Notes to Consolidated Financial Statements (Unaudited)

•Substandard – Loans that are inadequately protected by the repayment capacity of the borrower or the current sound net worth of the collateral pledged, if any. Loans in this category have well defined weaknesses and risks that jeopardize the repayment. They are characterized by the distinct possibility that some loss may be sustained if the deficiencies are not remediated.

•Doubtful – Loans that have all the weaknesses of loans classified as “Substandard” with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable.

Loans within the top four categories above are considered pass rated, as commonly defined. Risk ratings are assigned as necessary to differentiate risk within the portfolio. Risk ratings are reviewed on an ongoing basis and revised to reflect changes in the borrowers’ financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage as well as other considerations.

The following tables summarize total loans by year of origination and internally assigned credit risk ratings:

		2026				2025				2024				2023				2022				2021 and Prior				Total
		(in thousands)
March 31, 2026
Mortgage Loans:
1-4 Family residential
Pass		$	2,577			$	6,299			$	6,743			$	41,302			$	98,061			$	267,817			$	422,799
Special mention			—				—				—				839				—				1,527				2,366
Substandard			—				—				—				—				—				6,212				6,212
Total 1-4 Family residential			2,577				6,299				6,743				42,141				98,061				275,556				431,377
Multifamily residential
Pass			185,930				137,161				104,458				72,837				156,666				243,226				900,278
Special mention			—				—				—				1,120				—				2,018				3,138
Substandard			—				—				—				5,005				—				6,912				11,917
Total Multifamily residential			185,930				137,161				104,458				78,962				156,666				252,156				915,333
Nonresidential properties
Pass			20,827				166,854				75,267				28,249				75,447				166,254				532,898
Special mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				1,358				1,358
Total Nonresidential properties			20,827				166,854				75,267				28,249				75,447				167,612				534,256
Construction and Land
Pass			69,229				281,505				143,481				243,289				11,501				—				749,005
Special mention			—				—				—				4,744				—				—				4,744
Substandard			—				—				—				—				—				10,241				10,241
Total Construction and land			69,229				281,505				143,481				248,033				11,501				10,241				763,990
Total mortgage loans			278,563				591,819				329,949				397,385				341,675				705,565				2,644,956
Nonmortgage Loans:
Business loans
Pass			918				52,897				17,162				6,518				90				1,958				79,543
Special mention			—				255				—				—				—				185				440
Substandard			—				67				235				—				9				72				383
Total Business loans			918				53,219				17,397				6,518				99				2,215				80,366
Consumer loans
Pass			103				202				99				140				48				4				596
Special mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total Consumer loans			103				202				99				140				48				4				596
Total nonmortgage loans			1,021				53,421				17,496				6,658				147				2,219				80,962
Total loans, gross		$	279,584			$	645,240			$	347,445			$	404,043			$	341,822			$	707,784			$	2,725,918

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

		2025				2024				2023				2022				2021				2020 and Prior				Total
		(in thousands)
December 31, 2025
Mortgage Loans:
1-4 Family residential
Pass		$	3,843			$	4,108			$	43,110			$	98,048			$	53,740			$	221,194			$	424,043
Special mention			—				—				842				—				823				1,180				2,845
Substandard			—				—				—				—				2,302				5,184				7,486
Total 1-4 Family residential			3,843				4,108				43,952				98,048				56,865				227,558				434,374
Multifamily residential
Pass			149,358				107,129				73,769				157,228				58,343				186,331				732,158
Special mention			—				4,462				1,121				—				4,332				1,357				11,272
Substandard			—				—				5,063				—				—				8,049				13,112
Total Multifamily residential			149,358				111,591				79,953				157,228				62,675				195,737				756,542
Nonresidential properties
Pass			170,449				77,935				28,328				74,281				59,835				112,768				523,596
Special mention			—				—				—				2,614				—				—				2,614
Substandard			—								—				—				—				—				—
Total Nonresidential properties			170,449				77,935				28,328				76,895				59,835				112,768				526,210
Construction and Land
Pass			279,271				143,515				358,926				56,297				—				—				838,009
Special mention			—				—				4,659				—				—				—				4,659
Substandard			—				—				—				—				3,180				8,248				11,428
Total Construction and land			279,271				143,515				363,585				56,297				3,180				8,248				854,096
Total mortgage loans			602,921				337,149				515,818				388,468				182,555				544,311				2,571,222
Nonmortgage Loans:
Business loans
Pass			26,618				17,183				6,421				105				457				1,609				52,393
Special mention			344				—				—				7				—				192				543
Substandard			—				37				—				12				78				—				127
Total Business loans			26,962				17,220				6,421				124				535				1,801				53,063
Consumer loans
Pass			275				127				160				57				6				—				625
Special mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total Consumer loans			275				127				160				57				6				—				625
Total nonmortgage loans			27,237				17,347				6,581				181				541				1,801				53,688
Total loans, gross		$	630,158			$	354,496			$	522,399			$	388,649			$	183,096			$	546,112			$	2,624,910

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Notes to Consolidated Financial Statements (Unaudited)

An aging analysis of loans, as of March 31, 2026 and December 31, 2025, is as follows:

		March 31, 2026
						30-59				60-89				90 Days												90 Days
						Days				Days				or More								Nonaccrual				or More
		Current				Past Due				Past Due				Past Due				Total				Loans				Accruing
		(in thousands)
Mortgage loans:
1-4 Family residential		$	422,323			$	4,598			$	821			$	3,635			$	431,377			$	3,635			$	—
Multifamily residential			899,936				6,169				—				9,228				915,333				9,228				—
Nonresidential properties			533,429				827				—				—				534,256				—				—
Construction and land			756,929				—				—				7,061				763,990				7,061				—
Nonmortgage loans:
Business			78,933				1,006				—				427				80,366				427				—
Consumer			596				—				—				—				596				—				—
Total		$	2,692,146			$	12,600			$	821			$	20,351			$	2,725,918			$	20,351			$	—

		December 31, 2025
						30-59				60-89				90 Days												90 Days
						Days				Days				or More								Nonaccrual				or More
		Current				Past Due				Past Due				Past Due				Total				Loans				Accruing
		(in thousands)
Mortgage loans:
1-4 Family residential		$	420,591			$	6,836			$	2,110			$	4,837			$	434,374			$	4,837			$	—
Multifamily residential			740,222				3,208				—				13,112				756,542				13,112				—
Nonresidential properties			524,446				1,764				—				—				526,210				—				—
Construction and land			845,849				—				—				8,247				854,096				8,247				—
Nonmortgage loans:
Business			52,278				118				—				667				53,063				667				—
Consumer			625				—				—				—				625				—				—
Total		$	2,584,011			$	11,926			$	2,110			$	26,863			$	2,624,910			$	26,863			$	—

The following schedules detail the composition of the allowance for credit losses on loans and the related recorded investment in loans as of and for the three months ended March 31, 2026 and 2025, and as of and for the year ended December 31, 2025:

		For the Three Months Ended March 31, 2026
		Mortgage Loans																Nonmortgage Loans								Total
		1-4 Family Residential				Multifamily				Nonresidential				Construction and Land				Business				Consumer				For the Period
		(in thousands)
Allowance for Credit Losses:
Balance, beginning of period		$	3,873			$	9,041			$	4,353			$	6,149			$	2,017			$	16			$	25,449
Provision (benefit) charged to expense			801				(1,095	)			389				(541	)			1,745				(6	)			1,293
Charge-offs			—				—				—				—				(504	)			—				(504	)
Recoveries			—				—				—				—				—				—				—
Balance, end of period		$	4,674			$	7,946			$	4,742			$	5,608			$	3,258			$	10			$	26,238
Ending balance: individually    evaluated for impairment		$	—			$	—			$	—			$	—			$	427			$	—			$	427
Ending balance: collectively    evaluated for impairment			4,674				7,946				4,742				5,608				2,831				10				25,811
Total		$	4,674			$	7,946			$	4,742			$	5,608			$	3,258			$	10			$	26,238
Loans:
Ending balance: individually    evaluated for impairment		$	3,635			$	9,228			$	—			$	7,061			$	427			$	—			$	20,351
Ending balance: collectively    evaluated for impairment			427,742				906,105				534,256				756,929				79,939				596				2,705,567
Total		$	431,377			$	915,333			$	534,256			$	763,990			$	80,366			$	596			$	2,725,918

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Notes to Consolidated Financial Statements (Unaudited)

		For the Three Months Ended March 31, 2025
		Mortgage Loans																Nonmortgage Loans								Total
		1-4 Family Residential				Multifamily				Nonresidential				Construction and Land				Business				Consumer				For the Period
		(in thousands)
Allowance for loan losses:
Balance, beginning of period		$	5,932			$	5,004			$	2,697			$	7,710			$	1,113			$	46			$	22,502
(Benefit) provision charged to expense			(1,393	)			2,836				300				(1,064	)			52				—				731
Charge-offs			(38	)			—				—				—				(222	)			(3	)			(263	)
Recoveries			—				—				—				—				4				—				4
Balance, end of period		$	4,501			$	7,840			$	2,997			$	6,646			$	947			$	43			$	22,974
Ending balance: individually    evaluated for impairment		$	—			$	—			$	—			$	—			$	171			$	—			$	171
Ending balance: collectively    evaluated for impairment			4,501				7,840				2,997				6,646				776				43				22,803
Total		$	4,501			$	7,840			$	2,997			$	6,646			$	947			$	43			$	22,974
Loans:
Ending balance: individually    evaluated for impairment		$	2,906			$	9,788			$	—			$	10,058			$	171			$	—			$	22,923
Ending balance: collectively    evaluated for impairment			460,636				665,753				390,681				805,367				46,158				997				2,369,592
Total		$	463,542			$	675,541			$	390,681			$	815,425			$	46,329			$	997			$	2,392,515

		For the Year Ended December 31, 2025
		Mortgage Loans																Nonmortgage Loans								Total
		1-4 Family Residential				Multifamily				Nonresidential				Construction and Land				Business				Consumer				For the Period
		(in thousands)
Allowance for loan losses:
Balance, beginning of year		$	5,932			$	5,004			$	2,697			$	7,710			$	1,113			$	46			$	22,502
(Benefit) provision charged to expense			(1,990	)			4,037				1,656				(1,561	)			2,309				18				4,469
Charge-offs			(69	)			—				—				—				(1,444	)			(48	)			(1,561	)
Recoveries			—				—				—				—				39				—				39
Balance, end of year		$	3,873			$	9,041			$	4,353			$	6,149			$	2,017			$	16			$	25,449
Ending balance: individually    evaluated for impairment		$	—			$	—			$	—			$	—			$	667			$	—			$	667
Ending balance: collectively    evaluated for impairment			3,873				9,041				4,353				6,149				1,350				16				24,782
Total		$	3,873			$	9,041			$	4,353			$	6,149			$	2,017			$	16			$	25,449
Loans:
Ending balance: individually    evaluated for impairment		$	4,837			$	13,112			$	—			$	8,247			$	667			$	—			$	26,863
Ending balance: collectively    evaluated for impairment			429,537				743,430				526,210				845,849				52,396				625				2,598,047
Total		$	434,374			$	756,542			$	526,210			$	854,096			$	53,063			$	625			$	2,624,910

The following tables summarize gross charge-offs by vintage:

		2026				2025				2024				2023				2022				2021 and Prior				Total
		(in thousands)
For the Three Months Ended March 31, 2026
Business loans		$	—			$	—			$	100			$	393			$	11			$	—			$	504
Total charge-offs		$	—			$	—			$	100			$	393			$	11			$	—			$	504

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Notes to Consolidated Financial Statements (Unaudited)

		2025				2024				2023				2022				2021				2020 and Prior				Total
		(in thousands)
For the Three Months Ended March 31, 2025
1-4 Family residential		$	—			$	—			$	—			$	—			$	—			$	38			$	38
Business loans			—				197				—				—				—				25				222
Consumer loans			—				—				3				—				—				—				3
Total charge-offs		$	—			$	197			$	3			$	—			$	—			$	63			$	263

Loans are considered non-accrual when current information and events indicate all amounts due may not be collectable according to the contractual terms of the related loan agreements. Non-accrual loans are identified by applying normal loan review procedures in accordance with the allowance for credit losses methodology. Management periodically assesses loans to determine whether impairment exists. Any loan that is, or will potentially be, no longer performing in accordance with the terms of the original loan contract is evaluated to determine impairment.

The following information relates to non-accrual loans as of and for the three months ended March 31, 2026 and 2025 and as of and for the year ended December 31, 2025:

		Unpaid Contractual				Recorded Investment				Recorded Investment				Total								Average				Interest Income
As of and For the Three Months Ended		Principal				With No				With				Recorded				Related				Recorded				Recognized
March 31, 2026		Balance				Allowance				Allowance				Investment				Allowance				Investment				on a Cash Basis
		(in thousands)
Mortgage loans:
1-4 Family residential		$	3,624			$	3,635			$	—			$	3,635			$	—			$	4,236			$	28
Multifamily residential			9,072				9,228				—				9,228				—				11,170				64
Nonresidential properties			—				—				—				—				—				—				—
Construction and land			7,061				7,061				—				7,061				—				7,654				—
Nonmortgage loans:
Business			227				—				427				427				427				547				2
Consumer			—				—				—				—				—				—				—
Total		$	19,984			$	19,924			$	427			$	20,351			$	427			$	23,607			$	94
		Unpaid Contractual				Recorded Investment				Recorded Investment				Total								Average				Interest Income
As of and For the Three Months Ended		Principal				With No				With				Recorded				Related				Recorded				Recognized
March 31, 2025		Balance				Allowance				Allowance				Investment				Allowance				Investment				on a Cash Basis
		(in thousands)
Mortgage loans:
1-4 Family residential		$	2,892			$	2,906			$	—			$	2,906			$	—			$	2,600			$	12
Multifamily residential			9,527				9,788				—				9,788				—				10,030				32
Nonresidential properties			—				—				—				—				—				—				—
Construction and land			10,058				10,058				—				10,058				—				10,058				—
Nonmortgage loans:
Business			171				—				171				171				171				257				—
Consumer			—				—				—				—				—				—				—
Total		$	22,648			$	22,752			$	171			$	22,923			$	171			$	22,945			$	44

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Notes to Consolidated Financial Statements (Unaudited)

		Unpaid Contractual				Recorded Investment				Recorded Investment				Total								Average				Interest Income
As of and for the Year Ended		Principal				With No				With				Recorded				Related				Recorded				Recognized
December 31, 2025		Balance				Allowance				Allowance				Investment				Allowance				Investment				on a Cash Basis
		(in thousands)
Mortgage loans:
1-4 Family residential		$	4,819			$	4,837			$	—			$	4,837			$	—			$	3,182			$	209
Multifamily residential			12,731				13,112				—				13,112				—				11,815				390
Nonresidential properties			—				—				—				—				—				101				—
Construction and land			8,800				8,247				—				8,247				—				7,596				—
Nonmortgage loans:
Business			667				—				667				667				667				467				10
Consumer			—				—				—				—				—				—				—
Total		$	27,017			$	26,196			$	667			$	26,863			$	667			$	23,161			$	609

Collateral Dependent Loans

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral.

The Company had collateral dependent loans which were individually evaluated to determine expected credit losses as of the dates indicated.

		March 31, 2026								December 31, 2025
						Associated								Associated
		Collateral				Allowance for				Collateral				Allowance for
		Dependent				Credit Losses				Dependent				Credit Losses
		(in thousands)
1-4 Family residential		$	3,636			$	—			$	4,837			$	—
Multifamily residential			9,228				—				13,112				—
Construction and land			7,060				—				8,247				—
Total		$	19,924			$	—			$	26,196			$	—

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company adopted Accounting Standards Update (“ASU”) 2022-02 on January 1, 2023. Since adoption, the Company has modified one loan with borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. At March 31, 2026 and December 31, 2025, there was one loan in the amount of $0.2 million with modifications to a borrower experiencing financial difficulty.

Prior to the adoption of ASU 2022-02 on January 1, 2023, the Company classified certain loans as troubled debt restructuring (“TDR”) loans when credit terms to a borrower in financial difficulty were modified, in accordance with ASC 310-40. With the adoption of ASU 2022-02 as of January 1, 2023, the Company has ceased to recognize or measure for new TDRs but those existing at December 31, 2022 will remain until settled.

At March 31, 2026 and December 31, 2025, there were 14 and 14 troubled debt restructured loans totaling $3.6 million and $3.6 million, respectively, of which $3.3 million and $3.2 million are on accrual status at March 31, 2026 and December 31, 2025, respectively. There were no commitments to lend additional funds to borrowers whose loans have been modified in a troubled debt restructuring.

Off-Balance Sheet Credit Losses

Also included within the scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and construction loans.

The Company estimates expected credit losses over the contractual period in which the company is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit

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Notes to Consolidated Financial Statements (Unaudited)

losses on off-balance sheet exposures is adjusted as a provision for credit loss expense. The Company uses similar assumptions and risk factors that are developed for collectively evaluated financing receivables. This estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments to be funded over its estimated life.

At March 31, 2026 and December 31, 2025, the allowance for off-balance sheet credit losses was $2.5 million and $2.1 million, respectively, which is included in the "Other liabilities" on the Consolidated Statements of Financial Condition. During the three months ended March 31, 2026 and 2025, the Company had $0.4 million charged for the provision for credit losses and $1.0 million in benefit for credit losses, for off-balance items, which are included in "Provision (benefit) for contingencies" in the Consolidated Statements of Operations.

Note 6. Leases

The Company has 16 operating leases for branches and office spaces (including headquarters) and six operating leases for equipment at both March 31, 2026 and December 31, 2025. Our leases have remaining lease terms ranging from less than one year to approximately 13.8 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term. Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through February of 2040.

Supplemental balance sheet information related to leases was as follows:

		March 31,				December 31,
		2026				2025
		(Dollars in thousands)
Operating lease ROU assets		$	27,633			$	27,583
Operating lease liabilities			29,429				29,353
Weighted-average remaining lease term-operating leases		11.1 years				11.2 years
Weighted average discount rate-operating leases			5.1	%			5.1	%

The components of lease expense and cash flow information related to leases were as follows:

				For the Three
				Months Ended
				March 31,
				2026				2025
				(Dollars in thousands)
Lease Cost
Operating lease cost		Occupancy and equipment		$	1,049			$	1,126
Operating lease cost		Other operating expenses			3				—
Short-term lease cost		Other operating expenses			7				9
Variable lease cost		Occupancy and equipment			38				46
Total lease cost				$	1,097			$	1,181

The Company’s minimum annual rental payments under the terms of the leases are as follows at March 31, 2026:

		Minimum Rental
Years ended December 31:		(in thousands)
Remainder of 2026		$	3,009
2027			3,780
2028			3,808
2029			3,360
2030			3,423
Thereafter			21,157
Total Minimum payments required			38,537
Less: implied interest			9,108
Present value of lease liabilities		$	29,429

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Notes to Consolidated Financial Statements (Unaudited)

Note 7. Deposits

Deposits at March 31, 2026 and December 31, 2025 are summarized as follows:

		March 31,				December 31,
		2026				2025
		(in thousands)
Demand		$	241,012			$	208,250
Interest-bearing deposits:
NOW/IOLA accounts			78,192				84,012
Money market accounts (1)			811,982				779,532
Reciprocal deposits			162,926				152,630
Savings accounts			118,373				117,708
Total NOW, money market, reciprocal and savings			1,171,473				1,133,882
Certificates of deposit of $250K or more			258,093				202,500
Brokered certificates of deposits (2)			54,553				67,942
Listing service deposits (2)			1,243				4,150
Certificates of deposit less than $250K			407,421				429,911
Total certificates of deposit			721,310				704,503
Total interest-bearing deposits			1,892,783				1,838,385
Total deposits		$	2,133,795			$	2,046,635

(1)At March 31, 2026 and December 31, 2025, there were $0.3 million each in brokered deposits.

(2)At March 31, 2026 and December 31, 2025, there were no individual listing service deposits amounting to $250,000 or more. All other brokered certificates of deposit individually amounted to less than $250,000.

At March 31, 2026 scheduled maturities of certificates of deposit were as follows:

		(in thousands)
2026		$	521,073
2027			162,344
2028			24,307
2029			9,769
2030			3,272
Thereafter			545
		$	721,310

Overdrawn deposit accounts that have been reclassified to loans amounted to $0.1 million as of both March 31, 2026 and December 31, 2025.

Note 8. Borrowings

The Bank had outstanding term advances from the FHLBNY at March 31, 2026 and December 31, 2025 as indicated below.

FHLBNY Advances: As a member of the FHLBNY, the Bank has the ability to borrow from the FHLBNY based on a certain percentage of the value of the Bank's qualified collateral, as defined in the FHLBNY Statement of Credit Policy, at the time of the borrowing. In accordance with an agreement with the FHLBNY, the qualified collateral must be free and clear of liens, pledges and encumbrances.

The Bank had $571.1 million and $596.1 million of outstanding term advances from the FHLBNY at March 31, 2026 and December 31, 2025, respectively. The Bank had no overnight line of credit advance from the FHLBNY at March 31, 2026 and December 31, 2025.

FRBNY Advances: The Bank had no term and overnight line of credit advances outstanding from the FRBNY at March 31, 2026 and December 31, 2025.

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Notes to Consolidated Financial Statements (Unaudited)

Letters of Credit: The Bank had two unsecured lines of credit in the amount of $75.0 million with two correspondent banks for both periods at March 31, 2026 and December 31, 2025.

Borrowed funds at March 31, 2026 and December 31, 2025 consist of the following and are summarized by maturity and call date below:

	March 31, 2026												December 31, 2025
	Scheduled Maturity				Redeemable at Call Date				Weighted Average Rate				Scheduled Maturity				Redeemable at Call Date				Weighted Average Rate
	(Dollars in thousands)
FHLBNY Term advances ending:
2026	$	150,000			$	150,000				4.06	%		$	225,000			$	225,000				4.20	%
2027		212,000				212,000				3.44				212,000				212,000				3.44
2028		109,100				109,100				3.74				109,100				109,100				3.74
2029		100,000				100,000				3.50				50,000				50,000				3.35
	$	571,100			$	571,100				3.67	%		$	596,100			$	596,100				3.78	%

Interest expense on advances totaled $5.4 million and $5.5 million for the three months ended March 31, 2026 and 2025, respectively.

Note 9. Earnings Per Common Share

The following table presents a reconciliation of the number of common shares used in the calculation of basic and diluted earnings per common share:

		For the Three Months Ended March 31,
		2026				2025
		(Dollars in thousands except share data)
Net income available to common stockholders		$	8,342			$	5,678
Common shares outstanding for basic EPS:
Weighted average common shares outstanding			24,156,189				23,964,532
Less: Weighted average unallocated Employee Stock    Ownership Plan (ESOP) shares			1,167,872				1,301,616
Basic weighted average common shares outstanding			22,988,317				22,662,916
Basic earnings per common share		$	0.36			$	0.25
Potential dilutive common shares:
Add: Dilutive effect of restricted stock awards and stock options			342,997				213,824
Diluted weighted average common shares outstanding			23,331,314				22,876,740
Diluted earnings per common share		$	0.36			$	0.25

Note 10. Commitments, Contingencies and Credit Risk

Financial Instruments With Off-Balance-Sheet Risk: In the normal course of business, financial instruments with off-balance-sheet risk may be used to meet the financing needs of customers. These financial instruments include commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized

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Notes to Consolidated Financial Statements (Unaudited)

on the Consolidated Statements of Financial Condition. The contractual amounts of these instruments reflect the extent of involvement in particular classes of financial instruments.

The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. The same credit policies are used in making commitments and contractual obligations as for on-balance-sheet instruments. Financial instruments whose contractual amounts represent credit risk at March 31, 2026 and December 31, 2025 are as follows:

		March 31,				December 31,
		2026				2025
		(in thousands)
Commitments to grant mortgage loans		$	443,536			$	395,388
Unfunded commitments under lines of credit			54,083				86,284
Total commitments		$	497,619			$	481,672

Commitments to Grant Mortgage Loans: Commitments to grant mortgage loans are agreements to lend to a customer as long as all terms and conditions are met as established in the contract. Commitments generally have fixed expiration dates or other termination clauses, and may require payment of a fee by the borrower. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate and income-producing commercial properties. Material losses are not anticipated as a result of these transactions.

Commitments to Sell Loans at Lock-in Rates: In order to assure itself of a marketplace to sell its loans, the Bank has agreements with investors who will commit to purchase loans at locked-in rates. The Bank has off-balance sheet market risk to the extent that the Bank does not obtain matching commitments from these investors to purchase the loans. This will expose the Bank to the lower of cost or market valuation environment.

Repurchases, Indemnifications and Premium Recaptures: Loans sold by the Bank under investor programs are subject to repurchase or indemnification if they fail to meet the origination criteria of those programs. In addition, loans sold to investors are also subject to repurchase or indemnifications if the loan is two or three months delinquent during a set period which usually varies from six months to a year after the loan is sold. There are no open repurchase or indemnification requests for loans sold as a correspondent lender or where the Company acted as a broker in the transaction as of March 31, 2026.

Unfunded Commitments Under Lines of Credit: Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extension of credit to existing customers. These lines of credit are uncollateralized and usually contain a specified maturity date and, ultimately, may not be drawn upon to the total extent to which the Company is committed.

Unfunded Commitments with Oaktree: In December of 2021, the Bank committed to invest $5.0 million in Oaktree SBIC Fund, L.P. ("Oaktree"). As of March 31, 2026, the total unfunded commitment was $1.7 million.

Unfunded Commitments with Silvergate: In April of 2022, the Company committed to invest $5.2 million in EJF Silvergate Ventures Fund LP ("Silvergate"). As of March 31, 2026, the total unfunded commitment was $1.2 million.

Letters of Credit: Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Letters of credit are largely cash secured.

Concentration by Geographic Location: Loans, commitments to extend credit and letters of credit have been granted to customers who are located primarily in the New York City metropolitan area. Generally, such loans most often are secured by residential properties. The loans are expected to be repaid from the borrowers' payment sources.

Legal Matters: The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations.

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Notes to Consolidated Financial Statements (Unaudited)

Note 11. Fair Value

The following fair value hierarchy is used based on the lowest level of input significant to the fair value measurement. There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate fair value:

Cash and Cash Equivalents, Placement with Banks, Accrued Interest Receivable, and Accrued Interest Payable: The carrying amount is a reasonable estimate of fair value. These assets and liabilities are not recorded at fair value on a recurring basis.

Available-for-Sale Securities: These financial instruments are recorded at fair value in the consolidated financial statements on a recurring basis. Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted prices are not available, then fair values are estimated by using pricing models (e.g., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds and mortgage-backed securities. Level 3 securities are securities for which significant unobservable inputs are utilized. There were no changes in valuation techniques used to measure similar assets during the period.

FHLBNY Stock: FHLBNY stock is carried at cost and classified as restricted equity securities. As a member of the FHLBNY, the Company is required to purchase and hold this stock.

FRBNY Stock: FRBNY stock is carried at cost and classified as restricted equity securities. As a member of the FRBNY, the Company is required to purchase and hold this stock.

Loans Receivable: For variable rate loans, which reprice frequently and have no significant change in credit risk, carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using estimated market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. Individual assessed loans are valued using a present value discounted cash flow method, or the fair value of the collateral. Loans are not recorded at fair value on a recurring basis.

Mortgage Loans Held for Sale: Loans held for sale, at fair value, consists of loans originated for sale by the Bank and accounted for under the fair value option. These assets are valued using stated investor pricing for substantially equivalent loans as Level 2. In determining fair value, such measurements are derived based on observable market data, including whole-loan transaction pricing and similar market transactions adjusted for portfolio composition, servicing value and market conditions. Loans held for sale by the Bank are carried at the lower of cost or fair value as determined by investor bid prices.

Under the fair value option, management has elected, on an instrument-by-instrument basis, fair value for substantially all forms of mortgage loans originated for sale on a recurring basis. As of March 31, 2026, the fair value carrying amount of mortgages held for sale measured under the fair value option was $2.1 million and the aggregate unpaid principal amounted to $2.1 million.

Other Real Estate Owned: Other real estate owned represents real estate acquired through foreclosure, and is recorded at fair value less estimated disposal costs on a nonrecurring basis. Fair value is based upon independent market prices, appraised values of the collateral or management's estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the asset is classified as Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the asset is classified as Level 3.

Deposits: The fair values of demand deposits, savings, NOW and money market accounts equal their carrying amounts, which represent the amounts payable on demand at the reporting date. Fair values for fixed-term, fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on certificates of deposit to a schedule of aggregated expected monthly maturities on such deposits. Deposits are not recorded at fair value on a recurring basis.

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Notes to Consolidated Financial Statements (Unaudited)

FHLBNY Advances: The fair value of the advances is estimated using a discounted cash flow calculation that applies current market-based FHLBNY interest rates for advances of similar maturity to a schedule of maturities of such advances. These borrowings are not recorded at fair value on a recurring basis.

Off-Balance-Sheet Instruments: Fair values for off-balance-sheet instruments (lending commitments and standby letters of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. Off-balance-sheet instruments are not recorded at fair value on a recurring basis.

The following tables detail the assets that are carried at fair value and measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, and indicate the level within the fair value hierarchy utilized to determine the fair value:

						March 31, 2026
Description		Total				Level 1				Level 2				Level 3
		(in thousands)
Available-for-Sale Securities, at fair value:
Corporate bonds		$	12,942			$	646			$	12,296			$	—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			25,583				—				25,583				—
FHLMC Certificates			6,870				—				6,870				—
FNMA Certificates			41,679				—				41,679				—
GNMA Certificates			76				—				76				—
Mortgage Loans Held for Sale, at fair value			2,127				—				2,127				—
		$	89,277			$	646			$	88,631			$	—

						December 31, 2025
Description		Total				Level 1				Level 2				Level 3
		(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds		$	2,979			$	2,979			$	—			$	—
Corporate bonds			12,763				492				12,271				—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations			26,346				—				26,346				—
FHLMC Certificates			7,125				—				7,125				—
FNMA Certificates			42,906				—				42,906				—
GNMA Certificates			77				—				77				—
Mortgage Loans Held for Sale, at fair value			3,388				—				3,388				—
		$	95,584			$	3,471			$	92,113			$	—

Management’s assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred.

The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of March 31, 2026 and December 31, 2025 and indicate the fair value hierarchy utilized to determine the fair value:

		March 31, 2026
		Total				Level 1				Level 2				Level 3
		(in thousands)
Individually evaluated loans		$	20,351			$	—			$	—			$	20,351

		December 31, 2025
		Total				Level 1				Level 2				Level 3
		(in thousands)
Individually evaluated loans		$	26,863			$	—			$	—			$	26,863

Losses on assets carried at fair value on a nonrecurring basis were de minimis for the three months ended March 31, 2026 and 2025, respectively.

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Notes to Consolidated Financial Statements (Unaudited)

As of March 31, 2026 and December 31, 2025, the carrying values and estimated fair values of the Company's financial instruments were as follows:

		Carrying				Fair Value Measurements
		Amount				Level 1				Level 2				Level 3				Total
		(in thousands)
March 31, 2026
Financial assets:
Cash and cash equivalents		$	117,246			$	117,246			$	—			$	—			$	117,246
Available-for-sale securities, at fair value			87,150				646				86,504				—				87,150
Held-to-maturity securities, at amortized cost, net			263,514				—				258,007				—				258,007
Placement with banks			249				—				249				—				249
Mortgage loans held for sale, at fair value			2,127				—				2,127				—				2,127
Loans receivable, net			2,698,649				—				—				2,667,660				2,667,660
Accrued interest receivable			19,274				—				19,274				—				19,274
FHLBNY stock			28,180				28,180				—				—				28,180
FRBNY stock			10,706				10,706				—				—				10,706
Financial liabilities:
Deposits:
Demand deposits			241,012				241,012				—				—				241,012
Interest-bearing deposits			1,171,473				1,171,473				—				—				1,171,473
Certificates of deposit			721,310				—				719,990				—				719,990
Borrowings			571,100				—				567,043				—				567,043
Accrued interest payable			4,338				—				4,338				—				4,338

		Carrying				Fair Value Measurements
		Amount				Level 1				Level 2				Level 3				Total
		(in thousands)
December 31, 2025
Financial assets:
Cash and cash equivalents		$	126,154			$	126,154			$	—			$	—			$	126,154
Available-for-sale securities, at fair value			92,196				3,471				88,725				—				92,196
Held-to-maturity securities, at amortized cost			272,982				—				268,875				—				268,875
Placement with banks			249				—				249				—				249
Mortgage loans held for sale, at fair value			3,388				—				3,388				—				3,388
Loans receivable, net			2,599,258				—				—				2,577,298				2,577,298
Accrued interest receivable			17,905				—				17,905				—				17,905
FHLBNY stock			29,309				29,309				—				—				29,309
FRBNY stock			10,698				—				10,698				—				10,698
Financial liabilities:
Deposits:
Demand deposits			208,250				208,250				—				—				208,250
Interest-bearing deposits			1,133,882				1,133,882				—				—				1,133,882
Certificates of deposit			704,503				—				704,205				—				704,205
Borrowings			596,100				—				595,031				—				595,031
Accrued interest payable			3,788				—				3,788				—				3,788

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no transfers of Level 3 assets in the fair value hierarchy at March 31, 2026 and December 31, 2025. Fair value for Level 3 securities was determined using a third-party pricing service with limited levels of activity and price transparency.

Off-Balance-Sheet Instruments: Loan commitments on which the committed interest rate is less than the current market rate are insignificant at March 31, 2026 and December 31, 2025.

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The fair value information about financial instruments are disclosed, whether or not recognized in the consolidated statements of financial condition, for which it is practicable to estimate that value. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair value amounts for 2026 and 2025 have been measured as of their respective period-ends and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than amounts reported at each period.

The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company's assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other banks may not be meaningful.

Note 12. Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by the Federal Reserve Board, the OCC and the U.S. Department of Housing and Urban Development. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s operations and financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation require the maintenance of minimum amounts and ratios (set forth in the table below) of total risk-based and Tier 1 capital to risk-weighted assets (as defined), common equity Tier 1 capital (as defined), and Tier 1 capital to adjusted total assets (as defined) adjusted total assets (as defined). As of March 31, 2026 and December 31, 2025, the applicable capital adequacy requirements specified below have been met.

The below minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions including dividend payments and certain discretionary bonus payments to executive officers. The applicable capital buffer for the Bank was 12.0% at March 31, 2026 and 13.6% at December 31, 2025.

The most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and the Bank must maintain minimum total risk-based, common equity risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There were no conditions or events since then of which management is aware that have changed the Bank's category.

The Company's and the Bank’s actual capital amounts and ratios as of March 31, 2026 and December 31, 2025 as compared to regulatory requirements are as follows:

																To Be Well
																Capitalized Under
										For Capital						Prompt Corrective
		Actual								Adequacy Purposes						Action Provisions
		Amount				Ratio				Amount				Ratio		Amount				Ratio
		(Dollars in thousands)
March 31, 2026
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets		$	590,692				21.23	%		$	222,591			8.00%		$	278,238				10.00	%
Tier 1 Capital to Risk-Weighted Assets			561,941				20.20	%			166,943			6.00%			222,591				8.00	%
Common Equity Tier 1 Capital Ratio			336,941				12.11	%			125,207			4.50%			180,855				6.50	%
Tier 1 Capital to Total Assets			561,941				17.22	%			130,554			4.00%			163,192				5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets		$	554,166				20.00	%		$	221,631			8.00%		$	277,039				10.00	%
Tier 1 Capital to Risk-Weighted Assets			525,415				18.97	%			166,224			6.00%			221,631				8.00	%
Common Equity Tier 1 Capital Ratio			525,415				18.97	%			124,668			4.50%			180,076				6.50	%
Tier 1 Capital to Total Assets			525,415				16.09	%			130,593			4.00%			163,241				5.00	%

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

																		To Be Well
																		Capitalized Under
										For Capital								Prompt Corrective
		Actual								Adequacy Purposes								Action Provisions
		Amount				Ratio				Amount				Ratio				Amount				Ratio
		(Dollars in thousands)
December 31, 2025
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets		$	579,833				23.00	%		$	201,663				8.00	%		$	252,079				10.00	%
Tier 1 Capital to Risk-Weighted Assets			552,260				21.91	%			151,247				6.00	%			201,663				8.00	%
Common Equity Tier 1 Capital Ratio			327,260				12.98	%			113,436				4.50	%			163,851				6.50	%
Tier 1 Capital to Total Assets			552,260				17.27	%			127,880				4.00	%			159,850				5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets		$	543,076				21.63	%		$	200,847				8.00	%		$	251,059				10.00	%
Tier 1 Capital to Risk-Weighted Assets			515,502				20.53	%			150,635				6.00	%			200,847				8.00	%
Common Equity Tier 1 Capital Ratio			515,502				20.53	%			112,976				4.50	%			163,188				6.50	%
Tier 1 Capital to Total Assets			515,502				16.12	%			127,945				4.00	%			159,931				5.00	%

As of March 31, 2026 and December 31, 2025, the Bank was in compliance with the applicable minimum capital requirements specified above.

Note 13. Accumulated Other Comprehensive Loss

The accumulated other comprehensive loss is as follows:

		March 31, 2026
		December 31, 2025				Change				March 31, 2026
		(in thousands)
Unrealized losses on available-for-sale securities, net		$	(10,820	)		$	140			$	(10,680	)
Total		$	(10,820	)		$	140			$	(10,680	)

		March 31, 2025
		December 31, 2024				Change				March 31, 2025
		(in thousands)
Unrealized losses on available-for-sale securities, net		$	(15,297	)		$	1,782			$	(13,515	)
Total		$	(15,297	)		$	1,782			$	(13,515	)

Note 14. Transactions with Related Parties

Directors, executive officers and non-executive officers of the Company have been customers of and have had transactions with the Bank, and it is expected that such persons will continue to have such transactions in the future. Aggregate loan transactions with related parties for the three months ended March 31, 2026 and 2025 were as follows:

		For the Three Months Ended March 31,
		2026				2025
		(in thousand)
Beginning balance		$	9,092			$	7,671
Originations			—				185
Payments			(2,636	)			(91	)
Ending balance		$	6,456			$	7,765

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The Company held deposits in the amount of $8.7 million and $8.6 million from directors, executive officers and non-executive officers at March 31, 2026 and December 31, 2025, respectively.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

General

Management’s discussion and analysis of the financial condition at March 31, 2026 and December 31, 2025, and results of operations for the three months ended March 31, 2026 and 2025, is intended to assist in understanding the financial condition and results of operations of Ponce Financial Group, Inc. (the “Company”). The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this quarterly report on Form 10-Q.

Overview

Our principal business is attracting retail deposits from the general public and investing those deposits together with funds generated from ongoing operations and borrowings, primarily in (1) loan originations for purchases and construction of multi-family residential properties, commercial business loans, commercial real estate mortgage loans, one-to-four family (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) construction loans; (3) SBA loans; (4) mortgage-backed securities; and (5) U.S. government securities, corporate fixed-income securities and other marketable securities. We also originate certain other consumer loans including overdraft lines of credit. Our results of operations depend primarily on net interest income, which is the difference between the income earned on its interest-earning assets and the cost of our interest-bearing liabilities. We also generate non-interest income mainly from service charges and fees, late and prepayment charges, income on sale of mortgage loans and grant income. Our non-interest expense consists principally of employee compensation and benefits, occupancy and equipment costs, data processing expenses, direct loan expenses, professional fees, other operating expenses and income tax expense. Our results of operations can also be significantly affected by our periodic provision for credit losses.

Cautionary Note Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements, which can be identified by the use of words such as "estimate," "project," "intend," "anticipate," "assume," "plan," "seek," "expect," "will," "may," "should," "indicate," "would," "believe," "contemplate," "continue," "target" and words of similar meaning. These forward-looking statements include, but are not limited to:

•statements of the Company’s goals, intentions and expectations;

•statements regarding its business plans, prospects, growth and operating strategies;

•statements regarding the quality of its loan and investment portfolios; and

•estimates of the risks and future costs and benefits;

These forward-looking statements are based on current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

•the scope, duration and severity of rising interest rates, and its effects on our business and operations, our customers, including their ability to make timely payments on loans, our service providers, and on the economy and financial markets in general;

•changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy;

•changes in consumer spending, borrowing and savings habits;

•general economic conditions that are worse than expected, particularly in connection with low or negative growth in the. economy as well as economic uncertainty (including from an economic slowdown or recession, the federal government shutdown, unemployment, or limited growth in consumer income or spending), either nationally or in the market areas;

•volatility in the financial services sector, including failures or rumors of failures of other depository institutions, along with actions taken by governmental agencies to address such turmoil, and the effects on the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital;

•the Company’s ability to manage market risk, credit risk and operational risk in the current economic environment;

•changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses;

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•the ability to access cost-effective funding;

•fluctuations in real estate values and real estate market conditions;

•demand for loans and deposits in the market areas;

•the Company’s ability to implement and change its business strategies;

•competition among depository and other financial institutions;

•inflation and changes in the interest rate environment that reduce the Company’s margins and yields, its mortgage banking revenues, the fair value of financial instruments or the level of loan originations, or increase the level of defaults, losses and prepayments on loans the Company have made and make;

•adverse changes in the securities or secondary mortgage markets;

•changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;

•monetary, fiscal and regulatory policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve Board;

•the sufficiency of liquidity and changes in our capital position;

•adverse changes related to the businesses of our partners;

•changes in the quality or composition of the Company’s loan or investment portfolios;

•technological changes that may be more difficult or expensive than expected; and cyber threats, attacks or events;

•the inability of third party providers to perform as expected;

•the Company’s ability to enter new markets successfully and capitalize on growth opportunities;

•the Company’s ability to successfully integrate into its operations, any assets, liabilities, customers, systems and management personnel the Company may acquire and management’s ability to realize related revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto;

•changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;

•the Company’s ability to retain key employees;

•the Company’s compensation expense associated with equity allocated or awarded to its employees;

•the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events (such as pandemics), and of governmental and societal responses thereto; and

•changes in the financial condition, results of operations or future prospects of issuers of securities that the Company may own.

Additional factors that may affect the Company’s results are discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 under the heading “Risk Factors” filed with the Securities and Exchange Commission (“SEC”) on March 13, 2026.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. The Company is under no duty to and does not assume any obligation to update any forward-looking statements after the date they were made, whether as a result of new information, future events or otherwise.

Federal Economic Relief Funds To Aid Lending

Emergency Capital Investment Program

On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP. Under the ECIP, Treasury provided investment capital directly to depository institutions that are CDFIs or MDIs or their holding companies, to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, in low-income and underserved communities. No dividends accrued or were due for the first two years after issuance. For years three through ten, depending upon the level of qualified and/or deep impact lending made in targeted communities, as defined in the ECIP guidelines, dividends will be at an annual rate of either 2.0%, 1.25% or 0.5% and, thereafter, will be fixed at one of the foregoing rates. If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates.

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Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending requirements for the lower dividend rates and/or to qualify for the purchase option under the Repurchase Agreement (as described below).

Holders of Preferred Stock generally do not have any voting rights, with the exception of voting rights on certain matters as outlined in the Certificate of Designations. The Treasury is the holder of the Preferred Stock and a governmental entity, and the Treasury may hold interests that are different from a private investor in exercising its voting and other rights. In the event of a liquidation, dissolution or winding up of the Company, the Preferred Stock will be entitled to a liquidation preference, subject to certain limitations, in the amount of the sum of $1,000 per share plus declared and unpaid dividends (without accumulation of undeclared dividends) on each share.

As a participant in the ECIP, the Company must comply with certain operating requirements. Specifically, the Company must adopt the Treasury's standards for executive compensation and luxury expenses for the period during which the Treasury holds equity issued under the ECIP. These restrictions may make it difficult to adequately compensate our management team, which could impact our ability to retain qualified management. Additionally, under the ECIP regulations, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.3 million for the three months ended March 31, 2026 and $1.1 million for the year ended December 31, 2025.

On December 20, 2024, the Company entered into an ECIP Securities Purchase Option Agreement (the “Repurchase Agreement”) with Treasury. Pursuant to the Repurchase Agreement, Treasury has granted the Company an option to purchase all of the Preferred Stock during the Option Period, which is the first fifteen years following the Original Closing Date. The purchase price for the Preferred Stock pursuant to the purchase option is determined based on a formula equal to the present value of the Preferred Stock, calculated as set forth in the Repurchase Agreement, together with any accrued and unpaid dividends thereon, as of the closing date. Subject to variations in interest rates and the equity risk premium, which are components included in the purchase price calculation, the Company presently expects that the purchase price will be at a substantial discount from the face value of the Preferred Stock.

The purchase option may not be exercised unless and until at least one of the Threshold Conditions under the Repurchase Agreement has been met. The Threshold Conditions are as follows: during the ten years that follow the Original Closing Date (the “ECIP Period”) either (1) over any sixteen consecutive quarters, an average of at least 60% of the Company’s Total Originations, as defined pursuant to the terms of the ECIP, qualifies as “Deep Impact Lending,” as defined pursuant to the terms of the ECIP (the “Deep Impact Condition”); (2) over any twenty-four consecutive quarters, an average of at least 85% of the Company’s Total Originations qualifies as “Qualified Lending,” as defined pursuant to the terms of the ECIP (the “Qualified Lending Condition”); or (3) the Preferred Stock has a dividend rate of no more than 0.5%, which dividend rate is calculated pursuant to the ECIP and the terms thereof, at each of six consecutive Reset Dates, as defined in the ECIP.

The earliest possible date by which a Threshold Condition may be met is June 30, 2026, which is the end of the sixteenth consecutive quarter following the Original Closing Date. However, the Company does not currently meet any of the Threshold Conditions to exercise the purchase option, and there can be no assurance if and when the Threshold Conditions will be met. The closing of the repurchase of the Preferred Stock, if consummated, would occur between thirty and ninety days following the satisfaction of the Threshold Condition and all other applicable conditions. At present, the Company has reported 15 consecutive quarters for which it has met both the Deep Impact and Qualified Lending Conditions. The Preferred Stock currently has a dividend rate of 0.5%.

In addition to the requirement that a Threshold Condition be met, the Repurchase Agreement requires that the Company meet certain other eligibility conditions in order to exercise the purchase option in the future, including compliance with the terms of the original ECIP purchase agreement and the terms of the Preferred Stock, maintaining qualification as either a CDFI or an MDI, and meeting other legal and regulatory criteria. Although the Company currently meets the general eligibility criteria, other than satisfying one of the Threshold Conditions, there can be no assurance that the Company will meet such criteria, or any amended or additional criteria that may be imposed, in the future.

The Company believes that consummation of the repurchase of the Preferred Stock as contemplated by the Repurchase Agreement would be beneficial to its stockholders. As such, the Company expects it continue to emphasize its qualified Deep Impact Lending.

The purchase option granted under the agreement is a freestanding financial instrument under GAAP. The Company analyzed the fair value of the repurchase option in accordance with ASC Topic 820 “Fair Value Measurements” and determined that the purchase option value is de minimis as of December 20, 2024, December 31, 2025 and March 31, 2026.

CDFI Financial Assistance Award

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On February 6, 2025, the Bank received a $1.3 million grant from the U.S. Treasury as part of the CDFI Financial Assistance Award Program. This award is given to CDFIs to support their operations and expand services in economically distressed communities.

Banking Development District

The Bank's Westchester Avenue Branch located at 2244 Westchester Avenue in the Castle Hill area of the Bronx was approved as a Banking Development District ("BDD"). New York State’s BDD Program, administered by the Department of Financial Services ("DFS"), supports the establishment of bank and credit union branches in areas across New York State where there is a demonstrated need for banking services. To encourage participation, approved BDD branches receive access to subsidized and market rate deposits from New York State. On July 30, 2024, Ponce Bank received total program deposits of $35.0 million. On June 24, 2025, the Bank received an additional $10.0 million from the New York City Department of Finance resulting in a total BDD Program deposit of $45.0 million.

On February 4, 2026, the Bank's Inwood Branch location 3879 9th Avenue in the Inwood area of New York was approved as a BDD by the DFS. In April of 2026, the Bank received additional program deposits of $35.0 million for the Inwood location.

Westchester Avenue Branch Re-Design

On February 27, 2025, Ponce Bank officers and administrators and members of the public celebrated the Bank’s transformed Westchester Avenue Branch at its grand reopening. The transformed Branch is the result of the State-of-the-art Banking Technologies combined with Community Centric Banking that is customer friendly and supportive.

The transformation relaunched a process aimed at reinforcing the role of each banking branch as a "community hub" that attracts new depositors and business customers, but anchors Ponce Bank branches as community-centric destinations. The revitalization efforts include Open Tellers that invite a more consultative experience, managers located at a central hub of the branch, private space for sensitive conversations, and meeting spaces as well as open areas with teleconferencing and AV equipment to encourage community-wide gatherings.

Inwood, New York Branch

On September 16, 2025, Ponce Bank opened another branch at its new location 3879 9th Avenue, New York, NY 10034. With its ribbon cutting ceremony on October 6, 2025, the Bank noted that this new branch at this Inwood location will create opportunities for residents and small business owners in one of Manhattan's most vibrant and diverse neighborhoods.

Ponce Bank Conversion

On October 10, 2025, the Company's wholly-owned subsidiary, Ponce Bank (formerly a federally chartered stock savings association), completed its previously announced conversion to a national bank and commenced operations as Ponce Bank, National Association. In connection with the conversion of Ponce Bank, the Company also commenced operations as a bank holding company as of the same date. Further, the Company also became a financial holding company, which is an additional election that allows the Company to engage in activities that are financial in nature or incidental to a financial activity.

Ponce Bank sought to become a national bank in order to increase bank powers, including its eligibility to receive municipal deposits in New York. However, the Company and Ponce Bank do not expect any material changes in their core business as a result of the Company becoming a bank holding company and a financial holding company, and Ponce Bank becoming a national bank.

Critical Accounting Policies

Accounting estimates are necessary in the application of certain accounting policies and procedures and are particularly susceptible to significant change. Critical accounting policies are defined as those involving significant judgments and assumptions by management and that could have a material impact on the carrying value of certain assets, liabilities or on income under different assumptions or conditions. Management believes that the most critical accounting policy relates to the allowance for credit losses.

Allowance for credit losses in accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), was a critical accounting policy in the preparation of the consolidated financial statements as of and for the period ended March 31, 2026.

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Allowance for credit loss. The ACL on loans is management's estimate of expected credit losses over the expected life of the loans at the reporting date. The ACL on loans is increased through a provision for credit losses (“PCL”) recognized in the Consolidated Statements of Operations and by recoveries of amounts previously charged off. The ACL on loans is reduced by charge-offs on loans. Loan charge-offs are recognized when Management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral-dependent individually analyzed loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan.

Policies with respect to the methodology used to determine the allowance for credit losses is a critical accounting policy and estimate because of its importance to presentation of the Company's financial condition and results of operations and high level of subjectivity. The critical accounting policy involves a higher degree of complexity and requires management to make difficult and subjective judgments which often require assumptions or estimates about highly uncertain matters. The use of different judgments, assumptions, and estimates could result in material differences in the results of operations or financial condition. The allowance for credit losses policy and its application is reviewed periodically, and at least annually, with the Audit Committee of the Board of Directors.

If our loss rate factor was to increase 10 basis points, our reserve would increase by approximately $2.7 million. Likewise, if our loss rate factor was to decrease 10 basis points, our reserve would decrease by approximately $2.7 million.

The discussion and analysis of the financial condition and results of operations are based on the Company’s consolidated financial statements, which are prepared in conformity with GAAP. The preparation of these consolidated financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. The estimates and assumptions used are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.

Company's Growth

The Company continues its relationship with Raisin Solutions US LLC ("Raisin"), a fintech that focuses on gathering deposits for financial institutions through the Internet. As of March 31, 2026 and December 31, 2025, the Company had $678.4 million and $643.9 million, respectively, in such deposits, which the Company classifies as core deposits.

Because the Company, through Ponce Bank, is an MDI and a CDFI, deposits made by other financial institutions may be treated as CRA credits by those depository institutions.

At December 31, 2018, the first year after our initial public offering, the Company had approximately $1.06 billion in assets, $918.5 million in loans, net of allowance for credit losses of $12.7 million, and $809.8 million in deposits. The Company has since grown to $3.30 billion in assets, $2.70 billion in loans, net of allowance for credit losses of $26.2 million, and $2.13 billion in deposits at March 31, 2026, all while investing in infrastructure, implementing digital banking and diversifying its product offering. Now, the Company believes that it is poised to enhance its presence, locally and in similar communities outside New York, as a leading CDFI and MDI financial institution holding company.

Asset Quality Ratios

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,				March 31,
		2026				2025				2025
Allowance for credit losses on loans as a percentage of total loans			0.96	%			0.97	%			0.96	%
Allowance for credit losses on loans as a percentage of nonperforming loans (1)			128.93	%			94.74	%			84.15	%
Net (charge-offs) recoveries to average outstanding loans (2)			(0.08	%)			(0.13	%)			(0.04	%)
Non-performing loans as a percentage of total gross loans			0.62	%			0.83	%			0.88	%

(1)Allowance for credit losses on loans as a percentage of nonperforming loans increased for the three months ended March 31, 2026 as a result of an increase in allowance for credit losses on loans to $26.2 million and a decrease in nonperforming loans to $20.4 million.

(2)Annualized.

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Comparison of Financial Condition at March 31, 2026 and December 31, 2025

Total Assets. Total consolidated assets increased $76.8 million, or 2.4%, to $3.30 billion at March 31, 2026 from $3.22 billion at December 31, 2025. The increase in total assets is largely attributable to increases of $99.4 million in net loans receivable, $2.0 million in other assets, $1.4 million in accrued interest receivable and $0.2 million in deferred tax assets, partially offset by decreases of $9.5 million in held-to-maturity securities, $8.9 million in cash and cash equivalents, $5.0 million in available-for-sale securities, $1.3 million in mortgage loans held for sale, $1.1 million in Federal Home Loan Bank of New York stock and $0.5 million in premises and equipment, net.

Cash and Cash Equivalents. Cash and cash equivalents decreased $8.9 million, or 7.1%, to $117.2 million at March 31, 2026, compared to $126.2 million at December 31, 2025. The decrease in cash and cash equivalents was primarily the result of an increase of $101.8 million in net loans and $25.0 million in net repayment of borrowings, increases of $2.0 million in other assets and $1.4 million in accrued interest receivable. The decrease in cash and cash equivalents was offset primarily by an increase of $87.2 million in net deposits, $14.7 million in proceeds from maturities, calls and principal repayment on securities, an increase of $3.8 million in other liabilities, decreases of $1.4 million in loans held for sale and $1.1 million from sale of loans.

Securities. The Company securities portfolio decreased $5.0 million, or 5.5%, to $87.2 million in available-for-sale at March 31, 2026 from $92.2 million December 31, 2025 and decreased $9.5 million, or 3.5%, to $263.5 million in held-to-maturity at March 31, 2026 from $273.0 million at December 31, 2025. The decrease in the securities portfolio was primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of $3.0 million.

Portfolio Maturities and Yields. The composition and maturities of the investment securities portfolio at March 31, 2026 are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. Adjustable-rate mortgage-backed securities are included in the period in which interest rates are next scheduled to adjust. The weighted average yield is calculated based on the yield to maturity weighted for the size of each debt security over the entire portfolio of debt securities. The weighted average yields on tax-exempt obligations have been computed on a tax-equivalent basis.

		One Year or Less								More than One Year through Five Years								More than Five Years through Ten Years								More than Ten Years								Total
		Amortized Cost				Weighted Average Yield				Amortized Cost				Weighted Average Yield				Amortized Cost				Weighted Average Yield				Amortized Cost				Weighted Average Yield				Amortized Cost				Fair Value				Weighted Average Yield
		(Dollars in thousands)
Available-for-Sale    Securities:
Corporate Bonds		$	—				—	%		$	4,000				3.97	%		$	9,500				3.78	%		$	—				—	%		$	13,500			$	12,942				3.82	%
Mortgage-Backed    Securities
Collateralized Mortgage Obligations (1)			—				—				—				—				—				—				30,077				1.46	%			30,077				25,583				1.46	%
FHLMC Certificates			—				—				—				—				—				—				7,660				1.18	%			7,660				6,870				1.18	%
FNMA Certificates			—				—				—				—				3,744				1.55	%			45,670				1.79	%			49,414				41,679				1.77	%
GNMA Certificates			—				—				—				—				—				—				75				5.44	%			75				76				5.44	%
Total available-for-sale securities		$	—				—	%		$	4,000				3.97	%	5.23	$	13,244				3.18	%		$	83,482				1.62	%		$	100,726			$	87,150				1.91	%
Held-to-Maturity    Securities:
Corporate Bonds		$	—				—	%		$	—				—	%		$	7,500				6.40	%		$	—				—				7,500			$	7,333				6.40	%
Mortgage-Backed    Securities
Collateralized Mortgage Obligations (1)			—				—				2,270				3.46	%			—				—				152,800				3.95	%			155,070				151,657				3.93	%
FHLMC Certificates			—				—				—				—				—				—				3,107				4.90	%			3,107				3,030				4.90	%
FNMA Certificates			—				—				5,932				3.47	%			—				—				81,506				4.65	%			87,438				85,313				4.57	%
SBA Certificates			—				—				—				—				4,019				5.97	%			6,592				5.82	%			10,611				10,674				5.88	%
Allowance for Credit Losses			—				—				—				—				—				—				—				—				(211	)			—				—
Total held-to-maturity securities		$	—				—	%		$	8,202				3.47	%		$	11,519				6.25	%		$	244,005				4.24	%		$	263,514			$	258,007				4.30	%

(1)Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.

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Gross Loans Receivable. The composition of gross loans receivable at March 31, 2026 and at December 31, 2025 and the percentage of each classification to total loans are summarized as follows:

		March 31, 2026								December 31, 2025								Increase (Decrease)
		Amount				Percent				Amount				Percent				Dollars				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 Family residential (1)		$	431,377				15.8	%		$	434,374				16.5	%			(2,997	)			(0.7	%)
Multifamily residential			915,333				33.6	%			756,542				28.8	%			158,791				21.0	%
Nonresidential properties			534,256				19.6	%			526,210				20.1	%			8,046				1.5	%
Construction and land			763,990				28.0	%			854,096				32.5	%			(90,106	)			(10.5	%)
Total mortgage loans			2,644,956				97.0	%			2,571,222				98.0	%			73,734				2.9	%
Nonmortgage loans:
Business loans			80,366				3.0	%			53,063				2.0	%			27,303				51.5	%
Consumer loans			596				—	%			625				—	%			(29	)			(4.6	%)
			80,962				3.0	%			53,688				2.0	%			27,274				50.8	%
Total		$	2,725,918				100.0	%		$	2,624,910				100.0	%		$	101,008				3.8	%

(1)Includes both investor owned and owner occupied 1-4 family residential properties combined, which were previously reported separately.

Contractual Maturities. The following table sets forth the contractual maturities of the Bank’s total loan portfolio, excluding mortgage loans held for sale, at March 31, 2026. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. The table presents contractual maturities and does not reflect repricing or the effect of prepayments. Actual maturities may differ.

		At March 31, 2026
		One year or less				More than one year  to five years				More than Five to Fifteen Years				More than Fifteen Years				Total
		(in thousands)
Mortgage loans:
1-4 family residential		$	3,080			$	8,127			$	174,099			$	246,071			$	431,377
Multifamily residential			178,605				72,721				399,193				264,814				915,333
Nonresidential properties			18,888				140,396				330,991				43,981				534,256
Construction and land			518,603				245,387				—				—				763,990
Total mortgage loans			719,176				466,631				904,283				554,866				2,644,956
Nonmortgage loans:
Business loans			19,895				39,066				18,254				3,151				80,366
Consumer loans			85				511				—				—				596
Total nonmortgage loans			19,980				39,577				18,254				3,151				80,962
Total		$	739,156			$	506,208			$	922,537			$	558,017			$	2,725,918

The follow table sets forth the Bank's fixed and adjustable-rate loans at March 31, 2026 that are contractually due after March 31, 2027.

		Due After March 31, 2027
		Fixed				Adjustable				Total
		(in thousands)
Mortgage loans:
1-4 family residential		$	74,806			$	353,491				428,297
Multifamily residential			198,821				537,907				736,728
Nonresidential properties			156,581				358,787				515,368
Construction and land			245,387				—				245,387
Total mortgage loans			675,595				1,250,185				1,925,780
Nonmortgage loans:
Business loans			40,671				19,800				60,471
Consumer loans			511				—				511
Total nonmortgage loans			41,182				19,800				60,982
Total		$	716,777			$	1,269,985			$	1,986,762

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Based on current internal loan reviews, the Company believes that the quality of our underwriting, our weighted average loan-to-value ratio of 50.5% and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio.

Multifamily residential loans increased $158.8 million, or 21.0%, when compared to December 31, 2025. The majority of the increases in multifamily residential loans that were refinanced from construction and land loans to a new permanent loan facility.

Construction and land loans decreased $90.1 million, or 10.5%, when compared to December 31, 2025. The $90.1 million decrease in construction and land mortgage loans is related to loans that were refinanced from construction and land loans to new permanent loan facilities, offset by funding of existing commitments prior to 2026 and new commitments.

Our commitments to grant new mortgage loans increased by $48.1 million as of March 31, 2026 compared to December 31, 2025. See Note 10 ("Commitments, Contingencies and Credit Risk") of Notes to the Consolidated Financial Statements.

The Company had 68 construction and land mortgage loans with balances of $764.0 million as indicated in the table above. Of those loans, 29 loans with aggregate balances of $380.2 million, or 49.8%, of the total, have a percentage of completion of 80% or more. Within those 29 loans there are 14 loans with balances of $193.3 million that are 100% completed and 13 of these properties received their certificates of occupancy.

Commercial real estate loans, as defined by applicable banking regulations, include multifamily residential, nonresidential properties, and construction and land mortgage loans. At March 31, 2026 and December 31, 2025, approximately 2.9% and 3.1%, respectively, of the outstanding principal balance of the Bank’s commercial real estate mortgage loans were secured by owner-occupied commercial real estate. Owner-occupied commercial real estate is similar in many ways to commercial and industrial lending in that these loans are generally made to businesses predominantly on the basis of the cash flows of the business rather than on valuation of the real estate.

Banking regulations have established guidelines relating to the amount of construction and land mortgage loans and investor- owned commercial real estate mortgage loans of 100% and 300% of total risk-based capital, respectively. Should a bank’s ratios be in excess of these guidelines, banking regulations generally require an increased level of monitoring in these lending areas by bank management. The Bank’s policy is to operate within the 200% guideline for construction and land mortgage loans and up to 450% for investor-owned commercial real estate mortgage loans. Both ratios are calculated by dividing certain types of loan balances for each of the two categories by the Bank’s total risk-based capital. At March 31, 2026 and December 31, 2025, the Bank’s construction and land mortgage loans as a percentage of total risk-based capital was 137.2% and 156.7%, respectively. Investor-owned commercial real estate mortgage loans as a percentage of total risk-based capital was 399.0% and 393.1% as of March 31, 2026 and December 31, 2025, respectively. At March 31, 2026, the Bank was above the 100% guidelines established by the banking regulations and under the 200% guidelines set by the Bank for construction and land mortgage loans and above the 300% guideline established by banking regulators but under the 450% guidelines set by the Bank for investor owned commercial real estate mortgage loans. Management believes that it has established the appropriate level of controls to monitor the Bank’s lending in these areas.

Allocation of Allowance for Credit Losses. The table below presents a breakdown of the allowance for credit losses by loan class.

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		March 31, 2026								December 31, 2025
						Percent of Loans								Percent of Loans
		Allowance for				in Each Category				Allowance for				in Each Category
		Credit Losses				to Total Loans				Credit Losses				to Total Loans
		(in thousands)
Mortgage loans:
1-4 family residential		$	4,674				15.8	%		$	3,873				16.5	%
Multifamily residential			7,946				33.6	%			9,041				28.8	%
Nonresidential properties			4,742				19.6	%			4,353				20.1	%
Construction and land			5,608				28.0	%			6,149				32.5	%
Total mortgage loans			22,970				97.0	%			23,416				98.0	%
Nonmortgage loans:
Business loans			3,258				3.0	%			2,017				2.0	%
Consumer loans			10				—	%			16				—	%
Total nonmortgage loans			3,268				3.0	%			2,033				2.0	%
Total		$	26,238				100.0	%		$	25,449				100.0	%

Loans Held For Sale. Loans held for sale, at fair value, at March 31, 2026 decreased $1.3 million, or 37.2%, to $2.1 million from $3.4 million at December 31, 2025.

Deposits. The composition of deposits at March 31, 2026 and December 31, 2025 and changes in dollars and percentages are summarized as follows:

		March 31, 2026								December 31, 2025								Increase (Decrease)
						Percent								Percent
		Amount				of Total				Amount				of Total				Dollars				Percent
		(Dollars in thousands)
Demand		$	241,012				11.3	%		$	208,250				10.2	%		$	32,762				15.7	%
Interest-bearing deposits:
NOW/IOLA accounts			78,192				3.7	%			84,012				4.1	%			(5,820	)			(6.9	%)
Money market accounts (1)			811,982				38.1	%			779,532				38.1	%			32,450				4.2	%
Reciprocal deposits			162,926				7.6	%			152,630				7.5	%			10,296				6.7	%
Savings accounts			118,373				5.5	%			117,708				5.8	%			665				0.6	%
Total NOW, money market, reciprocal and savings			1,171,473				54.9	%			1,133,882				55.4	%			37,591				3.3	%
Certificates of deposit of $250K or more			258,093				12.1	%			202,500				9.9	%			55,593				27.5	%
Brokered certificates of deposit  (2)			54,553				2.6	%			67,942				3.3	%			(13,389	)			(19.7	%)
Listing service deposits (2)			1,243				0.1	%			4,150				0.2	%			(2,907	)			(70.0	%)
Certificates of deposit less than $250K			407,421				19.1	%			429,911				21.0	%			(22,490	)			(5.2	%)
Total certificates of deposit			721,310				33.8	%			704,503				34.4	%			16,807				2.4	%
Total interest-bearing deposits			1,892,783				88.7	%			1,838,385				89.8	%			54,398				3.0	%
Total deposits		$	2,133,795				100.0	%		$	2,046,635				100.0	%		$	87,160				4.3	%

(1)As of March 31, 2026 and December 31, 2025, there were $0.3 million each in brokered deposits.

(2)At March 31, 2026 and December 31, 2025, there were no individual listing service deposits amounting to $250,000 or more. All other brokered certificates of deposit individually amounted to less than $250,000.

When wholesale funding is necessary to complement the Company's core deposit base, management determines which source is best suited to address both liquidity risk and interest rate risk in line with management objectives. The Company’s Interest Rate Risk Policy imposes limitations on overall wholesale funding and noncore funding reliance. The overall reliance on wholesale funding and noncore funding were within those policy limitations as of March 31, 2026 and December 31, 2025. The Management Asset/Liability Committee generally meets on a monthly basis to review funding needs, if any, and to ensure the Company operates within the approved limitations.

The following table sets forth the average balance and weighted average rate of deposits for the periods indicated.

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		For the Three Months Ended March 31,
		2026												2025
		Average Balance				Percent				Weighted Average Rate				Average Balance				Percent				Weighted Average Rate
		(Dollars in thousands)
Deposit type:
NOW/IOLA (1)		$	77,833				3.73	%			0.70	%		$	72,354				3.6	%			0.64	%
Money market			949,007				45.49	%			3.62	%			827,948				41.2	%			4.12	%
Savings			120,205				5.76	%			0.09	%			117,616				5.9	%			0.10	%
Certificates of deposit			718,301				34.43	%			3.62	%			794,270				39.5	%			3.96	%
Interest-bearing deposits			1,865,346				89.40	%			3.27	%			1,812,188				90.2	%			3.65	%
Non-interest bearing demand (1)			221,056				10.60	%			—	%			196,627				9.8	%			—	%
Total deposits		$	2,086,402				100.00	%			2.92	%		$	2,008,815				100.0	%			3.29	%

The following table presents the time deposits with balances exceeding the $250,000 Federal Deposits Insurance Corporation ("FDIC") insurance limit by maturity at March 31, 2026.

Maturity Period:	(in thousands)
Three months or less	$		62,998
Over three months through six months			59,117
Over six months through one year			62,577
More than one year			73,401
Total	$		258,093

At March 31, 2026, the portion of uninsured deposits in excess of $250,000 FDIC insurance limit was $471.3 million.

Borrowings. The Bank had outstanding borrowings at March 31, 2026 and December 31, 2025 of $571.1 million and $596.1 million in term advances from the FHLBNY. The Bank had no overnight line of credit advance from the FHLBNY at March 31, 2026 and December 31, 2025. Additionally, the Bank had two unsecured lines of credit in the amount of $75.0 million with two correspondent banks for both periods at March 31, 2026 and December 31, 2025. The Bank did not have any term and overnight line of credit advances from the FRBNY at March 31, 2026 and December 31, 2025.

Stockholders’ Equity. The Company’s consolidated stockholders’ equity increased $9.8 million, or 1.8%, to $551.4 million as of March 31, 2026 from $541.5 million as of December 31, 2025. The $9.8 million increase in stockholders’ equity was largely attributable to $8.6 million in net income, $0.6 million impact to additional paid in capital as a result of share-based compensation, $0.6 million from release of ESOP shares and $0.2 million from exercise of stock options and $0.1 million in other comprehensive income, offset by $0.3 million related to dividend paid on preferred shares during the three months ended March 31, 2026.

Comparison of Results of Operations for the Three Months Ended March 31, 2026 and 2025

The discussion of the Company’s results of operations for the three months ended March 31, 2026 and 2025 are presented below. The results of operations for interim periods may not be indicative of future results.

Overview. Net income available to common stockholders was $8.3 million for the three months ended March 31, 2026 compared to net income available to common stockholders of $5.7 million for the three months ended March 31, 2025. Earnings per basic and diluted share was $0.36 for the three months ended March 31, 2026 compared to earnings per basic and diluted share of $0.25 for the three months ended March 31, 2025. The $2.7 million increase of net income available to common stockholders from the three months ended March 31, 2025, was due to increases of $6.0 million in net interest income, partially offset by increases of $1.9 million in provision for credit losses, $0.7 million in provision for income taxes, $0.4 million in non-interest expense and a decrease of $0.3 million in non-interest income. Net income for the three months ended March 31, 2026 and 2025, which excludes $0.3 million and $0.3 million, respectively, in dividends on preferred shares, were $8.6 million and $6.0 million, respectively.

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The following table presents the results of operations for the periods indicated:

		For the Three Months Ended March 31,								Increase (Decrease)
		2026				2025				Dollars				Percent
		(Dollars in thousands)
Interest and dividend income		$	48,662			$	43,997			$	4,665				10.6	%
Interest expense			20,436				21,794				(1,358	)			(6.2	%)
Net interest income			28,226				22,203				6,023				27.1	%
Provision (benefit) for credit losses			1,656				(285	)			1,941				(681.1	%)
Net interest income after provision for credit losses			26,570				22,488				4,082				18.2	%
Non-interest income			2,042				2,381				(339	)			(14.2	%)
Non-interest expense			17,240				16,888				352				2.1	%
Income before income taxes			11,372				7,981				3,391				42.5	%
Provision for income taxes			2,749				2,022				727				36.0	%
Net income		$	8,623			$	5,959			$	2,664				44.7	%
Dividends on preferred shares			281				281				—				—	%
Net income available to common stockholders		$	8,342			$	5,678			$	2,664				46.9	%
Earnings per share:
Basic		$	0.36			$	0.25			$	0.11				44.0	%
Diluted		$	0.36			$	0.25			$	0.11				44.0	%

Interest and Dividend Income. Interest and dividend income increased $4.7 million, or 10.6%, to $48.7 million for the three months ended March 31, 2026 from $44.0 million for the three months ended March 31, 2025. Interest income on loans receivable, which is the Company’s primary source of income, increased $6.8 million, or 18.4%, to $44.0 million for the three months ended March 31, 2026 from $37.1 million for the three months ended March 31, 2025.

Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $2.2 million or 31.8%, to $4.7 million for the three months ended March 31, 2026 from $6.9 million for the three months ended March 31, 2025. The decrease was primarily attributable to decreases of $1.3 million in interest on securities and $0.9 million in interest on deposits due from banks.

The following table presents interest income on loans receivable for the periods indicated:

		For the Three Months Ended March 31,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
1-4 Family residential		$	6,464			$	7,092			$	(628	)			(8.9	%)
Multifamily residential			11,811				9,150				2,661				29.1	%
Nonresidential properties			11,546				5,677				5,869				103.4	%
Construction and land			12,197				14,602				(2,405	)			(16.5	%)
Business loans			1,950				592				1,358				229.4	%
Consumer loans			14				23				(9	)			(39.1	%)
Total interest income on loans receivable		$	43,982			$	37,136			$	6,846				18.4	%

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The following table presents interest and dividend income on securities and FHLBNY stock and deposits due from banks for the periods indicated:

		For the Three Months Ended March 31,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Interest on deposits due from banks		$	770			$	1,668			$	(898	)			(53.8	%)
Interest on securities			3,247				4,521				(1,274	)			(28.2	%)
Dividend on FHLBNY stock			663				672				(9	)			(1.3	%)
Total interest and dividend income		$	4,680			$	6,861			$	(2,181	)			(31.8	%)

Interest Expense. Interest expense decreased $1.4 million, or 6.2%, to $20.4 million for the three months ended March 31, 2026 from $21.8 million for the three months ended March 31, 2025.

The following table presents interest expense for the periods indicated:

		For the Three Months Ended March 31,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Certificates of deposit		$	6,415			$	7,754			$	(1,339	)			(17.3	%)
Money market			8,468				8,411				57				0.7	%
Savings			28				28				—				0.0	%
NOW/IOLA			134				115				19				16.5	%
Borrowings			5,391				5,486				(95	)			(1.7	%)
Total interest expense		$	20,436			$	21,794			$	(1,358	)			(6.2	%)

Net Interest Income. Net interest income increased $6.0 million, or 27.1%, to $28.2 million for the three months ended March 31, 2026 from $22.2 million for the three months ended March 31, 2025. The $6.0 million increase in net interest income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was attributable to an increase of $4.7 million in total interest and dividend income primarily due to increases in average loans receivable and a decrease of $1.4 million in interest expense due primarily to a lower average cost of funds on interest bearing liabilities.

Net interest rate spread increased by 66 basis points to 2.85% for the three months ended March 31, 2026 from 2.19% for the three months ended March 31, 2025. The increase in the net interest rate spread for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to an increase in the average yields on interest-earning assets of 32 basis points to 6.23% for the three months ended March 31, 2026 from 5.90% for the three months ended March 31, 2025, and a decrease in the average rates paid on interest-bearing liabilities of 33 basis points to 3.38% for the three months ended March 31, 2026 from 3.71% for the three months ended March 31, 2025.

Net interest margin increased 63 basis points for the three months ended March 31, 2026, to 3.61% from 2.98% for the three months ended March 31, 2025.

Non-Interest Income. Non-interest income decreased $0.3 million, or 14.2%, to $2.0 million for the three months ended March 31, 2026 from $2.4 million for the three months ended March 31, 2025. The $0.3 million decrease in non-interest income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was largely attributable to a decrease of $0.4 million in income of sale of SBA loans.

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The following table presents non-interest income for the periods indicated:

		For the Three Months Ended March 31,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Service charges and fees		$	539			$	525			$	14				2.7	%
Brokerage commissions			—				4				(4	)			—	%
Late and prepayment charges			726				697				29				4.2	%
Income on sale of mortgage loans			120				148				(28	)			(18.9	%)
Income on sale of SBA loans			—				404				(404	)			—	%
Other			657				603				54				9.0	%
Total non-interest income		$	2,042			$	2,381			$	(339	)			(14.2	%)

Non-Interest Expense. Non-interest expense increased $0.4 million, or 2.1%, to $17.2 million for the three months ended March 31, 2026 from $16.9 million for the three months ended March 31, 2025. The $0.4 million increase in non-interest expense was mainly attributable to increases of $0.8 million in compensation and benefit and $0.1 million in marketing and promotional expenses, partially offset by decreases of $0.3 million in direct loan expenses, $0.2 million in occupancy and equipment and $0.2 million in other operating expenses.

The following table presents non-interest expense for the periods indicated:

		For the Three Months Ended March 31,								Change
		2026				2025				Amount				Percent
		(Dollars in thousands)
Compensation and benefits		$	8,663			$	7,780			$	883				11.3	%
Occupancy and equipment			3,672				3,913				(241	)			(6.2	%)
Data processing expenses			1,219				1,152				67				5.8	%
Direct loan expenses			121				388				(267	)			(68.8	%)
Insurance and surety bond premiums			333				315				18				5.7	%
Office supplies, telephone and postage			193				170				23				13.5	%
Professional fees			1,346				1,364				(18	)			(1.3	%)
Marketing and promotional expenses			228				83				145				174.7	%
Federal deposit insurance and regulatory assessment			409				461				(52	)			(11.3	%)
Other operating expenses			1,056				1,262				(206	)			(16.3	%)
Total non-interest expense		$	17,240			$	16,888			$	352				2.1	%

Income Tax Provision. The Company had a provision for income taxes of $2.7 million for the three months ended March 31, 2026 compared to a provision for income taxes of $2.0 million for the three months ended March 31, 2025.

Credit Quality. Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $23.6 million at March 31, 2026 compared to $30.2 million at December 31, 2025 and $32.0 million at March 31, 2025.

During the three months ended March 31, 2026, a credit loss provision of $1.7 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. During the three months ended March 31, 2025, a credit loss benefit of $0.3 million on loans was recorded, consisting of $0.7 million charged on the funded portion on loans and a benefit of $1.0 million on the unfunded portion on loans.

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Average Balance Sheets

The following table sets forth average outstanding balances, average yields and rates, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. Average balances are derived from average daily balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense.

		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				3,247				3.65	%			467,560				4,521				3.92	%
Other (4)			129,585				1,433				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			44,037				—								43,915				—
Total non-interest-bearing liabilities			265,093				—								240,542				—
Total liabilities			2,714,539				20,436								2,621,331				21,794
Total equity			548,735												510,849
Total liabilities and total equity		$	3,263,274								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 and 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 amount of $12.4 million, were reclassified to Savings.

(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.

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Rate/Volume Analysis

The following table presents the effects of changing rates and volumes on the Company’s net interest income for the periods indicated. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.

		For the Three Months Ended March 31,
		2026 vs. 2025
		Increase (Decrease) Due to								Total Increase
		Volume				Rate				(Decrease)
		(In thousands)
Interest-earning assets:
Loans (1)		$	4,868			$	1,978			$	6,846
Securities (2)			(1,036	)			(238	)			(1,274	)
Other			(710	)			(197	)			(907	)
Total interest-earning assets			3,122				1,543				4,665
Interest-bearing liabilities:
NOW/IOLA			9				10				19
Money market			1,230				(1,173	)			57
Savings			1				(1	)			—
Certificates of deposit			(742	)			(597	)			(1,339	)
Total deposits			498				(1,761	)			(1,263	)
Borrowings			150				(245	)			(95	)
Total interest-bearing liabilities			648				(2,006	)			(1,358	)
Change in net interest income		$	2,474			$	3,549			$	6,023

(1) Loans include loans and mortgage loans held for sale, at fair value.

(2) Securities include available-for-sale securities and held-to-maturity securities.

Management of Market Risk

General. The most significant form of market risk is interest rate risk because, as a financial institution, the majority of the Bank’s assets and liabilities are sensitive to changes in interest rates. Therefore, a principal part of our operations is to manage interest rate risk and limit the exposure of its financial condition and results of operations to changes in market interest rates. The Bank’s Asset/Liability Committee ("ALCO") is responsible for evaluating the interest rate risk inherent in the Bank’s assets and liabilities, for determining the level of risk that is appropriate, given the business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with policies and guidelines approved by the Board of Directors. The Bank currently utilizes a third-party modeling solution that is prepared on a quarterly basis, to evaluate its sensitivity to changing interest rates, given the Bank’s business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the Board of Directors.

Net Interest Income Simulation Models. Management utilizes a respected, sophisticated third party designed asset liability modeling software that measures the Bank’s earnings through simulation modeling. Earning assets, interest-bearing liabilities and off-balance sheet financial instruments are combined with forecasts of interest rates for the next 12 months and are combined with other factors in order to produce various earnings simulations over that same 12-month period. To limit interest rate risk, the Bank has policy guidelines for earnings risk which seek to limit the variance of net interest income under instantaneous changes to interest rates. As of

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March 31, 2026, in the event of an instantaneous upward and downward change in rates from management's interest rate forecast over the next twelve months, assuming a static balance sheet, the following estimated changes are calculated:

		Net Interest Income				Year 1 Change
Rate Shift (1)		Year 1 Forecast				from Level
		(Dollars in thousands)
+400		$	108,732			(5.30%)
+300			110,221			(4.00%)
+200			111,807			(2.62%)
+100			113,231			(1.38%)
Level			114,815			— %
-100			115,444			0.55%
-200			115,859			0.91%
-300			116,462			1.43%
-400			115,831			0.88%

(1)Assumes an instantaneous uniform change in interest rates at all maturities.

Although an instantaneous and severe shift in interest rates was used in this analysis to provide an estimate of exposure under these scenarios, management believes that a gradual shift in interest rates would have a more modest impact. Further, the earnings simulation model does not take into account factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships, and changing product spreads that could alter any potential adverse impact of changes in interest rates.

The behavior of the deposit portfolio in the baseline forecast and in alternate interest rate scenarios set out in the table above is a key assumption in the projected estimates of net interest income. The projected impact on net interest income in the table above assumes no change in deposit portfolio size or mix from the baseline forecast in alternative rate environments. In higher rate scenarios, any customer activity resulting in the replacement of low-cost or non-interest-bearing deposits with higher-yielding deposits or market-based funding would reduce the benefit in those scenarios.

At March 31, 2026, the earnings simulation model indicated that the Bank was in compliance with the Board of Directors approved Interest Rate Risk Policy.

Economic Value of Equity Model. While earnings simulation modeling attempts to determine the impact of a changing rate environment to net interest income, the Economic Value of Equity Model (“EVE”) measures estimated changes to the economic values of assets, liabilities and off-balance sheet items as a result of interest rate changes. Economic values are determined by discounting expected cash flows from assets, liabilities and off-balance sheet items, which establishes a base case EVE. Rates are then shocked as prescribed by the Interest Rate Risk Policy to measure the sensitivity in EVE values for each of those shocked rate scenarios versus the base case. The Interest Rate Risk Policy sets limits for those sensitivities. At March 31, 2026, the EVE modeling calculated the following estimated changes in EVE due to instantaneous upward and downward changes in rates:

														EVE as a Percentage of Present
														Value of Assets (3)
						Estimated Increase (Decrease) in												Increase
Change in Interest		Estimated				EVE								EVE				(Decrease)
Rates (basis points) (1)		EVE (2)				Amount				Percent				Ratio (4)				(basis points)
		(Dollars in thousands)
+400		$	490,084			$	(96,066	)			(16.39	%)			16.02	%			(1,639	)
+300			512,124				(74,026	)			(12.63	%)			16.48	%			(1,263	)
+200			535,242				(50,908	)			(8.69	%)			16.95	%			(869	)
+100			560,335				(25,815	)			(4.40	%)			17.46	%			(440	)
Level			586,150				—				—	%			17.96	%			—
-100			610,077				23,927				4.08	%			18.35	%			408
-200			632,450				46,300				7.90	%			18.68	%			790
-300			657,312				71,162				12.14	%			19.02	%			1,214
-400			696,113				109,963				18.76	%			19.62	%			1,876

(1)Assumes an instantaneous uniform change in interest rates at all maturities.

(2)EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

(3)Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4)EVE Ratio represents EVE divided by the present value of assets.

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Although an instantaneous and severe shift in interest rates was used in this analysis to provide an estimate of exposure under these scenarios, management believes that a gradual shift in interest rates would have a more modest impact. Since EVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in EVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon (i.e., the current year). Further, EVE does not take into account factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships, and changing product spreads that could alter the adverse impact of changes in interest rates.

At March 31, 2026, the EVE model indicated that the Bank was in compliance with the Board of Directors’ approved Interest Rate Risk Policy.

Most Likely Earnings Simulation Models. Management also analyzes a most-likely earnings simulation scenario that projects the expected change in rates based on a forward yield curve adopted by management using expected balance sheet volumes forecasted by management. Separate growth assumptions are developed for loans, investments, deposits, etc. Other interest rate scenarios analyzed by management may include delayed rate shocks, yield curve steepening or flattening, or other variations in rate movements to further analyze or stress the balance sheet under various interest rate scenarios. Each scenario is evaluated by management and weighted to determine the most likely result. These processes assist management to better anticipate financial results and, as a result, management may determine the need to review other operating strategies and tactics which might enhance results or better position the balance sheet to reduce interest rate risk going forward.

Each of the above analyses may not, on its own, be an accurate indicator of how net interest income will be affected by changes in interest rates. Income associated with interest-earning assets and costs associated with interest-bearing liabilities may not be affected uniformly by changes in interest rates. In addition, the magnitude and duration of changes in interest rates may have a significant impact on net interest income. For example, although certain assets and liabilities may have similar maturities or periods of repricing, they may react in different degrees to changes in market interest rates. Interest rates on certain types of assets and liabilities fluctuate in advance of changes in general market rates, while interest rates on other types may lag behind changes in general market rates. In addition, certain assets, such as adjustable rate mortgage loans, have features (generally referred to as interest rate caps and floors) which limit changes in interest rates. Prepayment and early withdrawal levels also could deviate significantly from those assumed in calculating the maturity of certain instruments. The ability of many borrowers to service their debts also may decrease during periods of rising interest rates. The ALCO Committee reviews each of the above interest rate sensitivity analyses along with several different interest rate scenarios as part of its responsibility to provide a satisfactory, consistent level of profitability within the framework of established liquidity, loan, investment, borrowing and capital policies.

Management's model governance, model implementation and model validation processes and controls are subject to review in the Bank’s regulatory examinations to ensure they are in compliance with the most recent regulatory guidelines and industry and regulatory practices. Management utilizes a respected, sophisticated third party designed asset liability modeling software to help ensure implementation of management's assumptions into the model are processed as intended in a robust manner. That said, there are numerous assumptions regarding financial instrument behaviors that are integrated into the model. The assumptions are formulated by combining observations gleaned from the Bank’s historical studies of financial instruments and the best estimations of how, if at all, these instruments may behave in the future given changes in economic conditions, technology, etc. These assumptions may prove to be inaccurate. Additionally, given the large number of assumptions built into Bank’s asset liability modeling software, it is difficult, at best, to compare its results to other banks.

The ALCO Committee may determine that the Company should over time become more or less asset or liability sensitive depending on the underlying balance sheet circumstances and its conclusions regarding interest rate fluctuations in future periods. The historically low benchmark federal funds interest rate of the last several years implemented in response the turmoil resulting from COVID-19 pandemic has ended.

On September 18, 2024, the Federal Reserve announced that the target range for the federal funds rate decreased by 50 basis points to 4.75% to 5.00% effective on September 19, 2024. It marked the first rate cut in over four years and signaled a shift in strategy aimed at bolstering the economy and preventing a rise in unemployment. In November 2024, the Federal Reserve lowered the target range by 25 basis points to 4.50% to 4.75% and in December 2024 another 25 basis points to 4.25% to 4.50%. The Federal Reserve reduced the federal funds rate by 25 basis points each in September 2025, October 2025 and December 2025, resulting in the current federal funds rate range of 3.50% to 3.75%. At its January 2026 and April 2026 meetings, the Federal Reserve kept its interest rate steady at 3.50% to 3.75%. Our net interest income may be positively impacted if the demand for loans increases due to the lower rates, alone or in tandem with lower inflation, or it may be negatively impacted if we fail to appropriately time adjustments to our funding costs and the rates we earn on our loans.

GAP Analysis. In addition, management analyzes interest rate sensitivity by monitoring the Bank’s interest rate sensitivity "gap." The interest rate sensitivity gap is the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest bearing-liabilities maturing or repricing within that same time period. A gap is considered positive

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when the amount of interest rate sensitive assets maturing or repricing during a period exceeds the amount of interest rate sensitive liabilities maturing or repricing during the same period, and a gap is considered negative when the amount of interest rate sensitive liabilities maturing or repricing during a period exceeds the amount of interest rate sensitive assets maturing or repricing during the same period.

The following table sets forth the Company’s interest-earning assets and its interest-bearing liabilities at March 31, 2026, which are anticipated to reprice or mature in each of the future time periods shown based upon certain assumptions. The amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at March 31, 2026, on the basis of contractual maturities, anticipated prepayments and scheduled rate adjustments. The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and as a result of contractual rate adjustments on adjustable-rate loans.

		March 31, 2026
		Time to Repricing
		Zero to 90 Days				Zero to 180 Days				Zero Days to One Year				Zero Days to Five Years				Five Years Plus				Total Earning Assets & Costing Liabilities				Non Earning Assets & Non Costing Liabilities				Total
		(Dollars in thousands)
Assets:
Interest-bearing deposits in banks		$	89,817			$	89,817			$	89,817			$	89,817			$	—			$	89,817			$	27,429			$	117,246
Securities (1)			24,076				37,694				64,547				222,771				141,861				364,632				(13,968	)			350,664
Placement with banks			-				-				-				249				—				249				—				249
Net loans (includes LHFS)			636,891				931,799				1,476,898				2,634,698				85,788				2,720,486				(19,710	)			2,700,776
FHLBNY stock			—				—				—				—				—				—				28,180				28,180
FRBNY stock			—				—				—				—				—				—				10,706				10,706
Other assets			—				—				—				—				—				—				92,936				92,936
Total		$	750,784			$	1,059,310			$	1,631,262			$	2,947,535			$	227,649			$	3,175,184			$	125,573			$	3,300,757
Liabilities:
Non-maturity deposits		$	82,939			$	165,730			$	330,893			$	1,017,773			$	399,400				1,417,173			$	(4,688	)		$	1,412,485
Certificates of deposit			269,705				423,353				594,501				721,310				—				721,310				—				721,310
Borrowings			—				150,000				179,000				571,100				—				571,100				—				571,100
Other liabilities			—				—				—				—				—				—				44,499				44,499
Total liabilities			352,644				739,083				1,104,394				2,310,183				399,400				2,709,583				39,811				2,749,394
Capital			—				—				—				—				—				—				551,363				551,363
Total liabilities and capital		$	352,644			$	739,083			$	1,104,394			$	2,310,183			$	399,400			$	2,709,583			$	591,174			$	3,300,757
Asset/liability gap		$	398,140			$	320,227			$	526,868			$	637,352			$	(171,751	)		$	465,601
Gap/assets ratio			212.90	%			143.33	%			147.71	%			127.59	%			57.00	%			117.18	%

(1)Includes available-for-sale securities and held-to-maturity securities.

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The following table sets forth the Company’s interest-earning assets and its interest-bearing liabilities at December 31, 2025, which are anticipated to reprice or mature in each of the future time periods shown based upon certain assumptions. The amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at December 31, 2025, on the basis of contractual maturities, anticipated prepayments and scheduled rate adjustments. The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and as a result of contractual rate adjustments on adjustable-rate loans.

		December 31, 2025
		Time to Repricing
		Zero to 90 Days				Zero to 180 Days				Zero Days to One Year				Zero Days to Five Years				Five Years Plus				Total Earning Assets & Costing Liabilities				Non Earning Assets & Non Costing Liabilities				Total
		(Dollars in thousands)
Assets:
Interest-bearing deposits in banks		$	97,643			$	97,643			$	97,643			$	97,643			$	—			$	97,643			$	28,511			$	126,154
Securities (1)			27,429				37,828				63,963				235,594				143,993				379,587				(14,409	)			365,178
Placement with banks			—				—				—				249				—				249				—				249
Net loans (includes LHFS)			784,821				1,022,289				1,454,001				2,568,380				53,141				2,621,521				(18,875	)			2,602,646
FHLBNY stock			29,309				29,309				29,309				29,309				—				29,309				—				29,309
FRBNY stock			10,698				10,698				10,698				10,698				—				10,698				—				10,698
Other assets			—				—				—				—				—				—				89,736				89,736
Total		$	949,900			$	1,197,767			$	1,655,614			$	2,941,873			$	197,134			$	3,139,007			$	84,963			$	3,223,970
Liabilities:
Non-maturity deposits		$	79,323			$	158,647			$	317,295			$	975,246			$	375,933			$	1,351,179			$	(9,047	)		$	1,342,132
Certificates of deposit			283,828				450,633				594,370				704,503				—				704,503				—				704,503
Borrowings			75,000				75,000				225,000				596,100				—				596,100				—				596,100
Other liabilities			—				—				—				—				—				—				39,686				39,686
Total liabilities			438,151				684,280				1,136,665				2,275,849				375,933				2,651,782				30,639				2,682,421
Capital			—				—				—				—				—				—				541,549				541,549
Total liabilities and capital		$	438,151			$	684,280			$	1,136,665			$	2,275,849			$	375,933			$	2,651,782			$	572,188			$	3,223,970
Asset/liability gap		$	511,749			$	513,487			$	518,949			$	666,024			$	(178,799	)		$	487,225
Gap/assets ratio			216.80	%			175.04	%			145.66	%			129.26	%			52.44	%			118.37	%

(1)Includes available-for-sale securities and held-to-maturity securities.

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the net interest income and EVE tables presented assume that the composition of the interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the net interest income and EVE tables provide an indication of the interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on net interest income and EVE and will differ from actual results. Furthermore, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates. Additionally, certain assets, such as adjustable-rate loans, have features that restrict changes in interest rates both on a short-term basis and over the life of the asset.

In the event of changes in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in calculating the gap table.

Interest rate risk calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of loans, deposits and borrowings.

Liquidity and Capital Resources

Liquidity describes the ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of the Company’s customers and to fund current and future planned expenditures.

Although maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and competition. The most liquid assets are cash and interest-bearing deposits in banks. The levels of these assets are dependent on operating, financing, lending, and investing activities during any given period. The Bank had $571.1 million and $596.1 million of outstanding term advances from FHLBNY at March 31, 2026 and December 31, 2025, respectively. The Bank had no overnight line of credit advance from the FHLBNY at March 31, 2026 and December 31, 2025.

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Net cash provided by operating activities was $13.9 million and $13.1 million for the three months ended March 31, 2026 and 2025, respectively. Net cash used in investing activities, which consists primarily of disbursements for loan originations, net purchase and redemption of FHLBNY stock and purchase of equipment offset by principal collections on loans and proceeds from maturities, calls and principal repayments on securities was ($84.9) million and ($67.8) million for the three months ended March 31, 2026 and 2025, respectively. Net cash provided by financing activities, consisting of activities in borrowing, deposit accounts and dividends paid on preferred stock, was $62.1 million and $44.8 million for the three months ended March 31, 2026 and 2025, respectively.

At March 31, 2026 and December 31, 2025, all regulatory capital requirements were met, resulting in the Company and the Bank being categorized as well capitalized. Management is not aware of any conditions or events that would change this categorization.

Material Cash Requirements

Commitments. As a financial services provider, the Company routinely is a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. Although these contractual obligations represent the Company’s future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans originated. At March 31, 2026 and December 31, 2025, the Company had outstanding commitments to originate loans and extend credit of $497.6 million and $481.7 million, respectively.

It is anticipated that the Company will have sufficient funds available to meet its current lending commitments. Certificates of deposit that are scheduled to mature in 2026 totaled $521.1 million. Management expects that a substantial portion of the maturing time deposits will be renewed. However, if a substantial portion of these deposits are not retained, the Company may utilize FHLBNY advances, FRBNY advances,unsecured credit lines with correspondent banks, or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Contractual Obligations. In the ordinary course of its operations, the Company enters into certain contractual obligations. Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities. There have been no material changes in the Company’s material cash requirements under its contractual obligations as discussed in its most recent annual report on Form 10-K.

Dividend on Preferred Stock. Pursuant to the terms of its Preferred Stock, the Company is required to pay a quarterly dividend on its Preferred Stock, beginning during the quarter ended June 30, 2024. The floor dividend rate is 0.50% and the ceiling dividend rate is 2.00%, based on achievement of certain qualified lending targets. For quarterly dividends through June 15, 2025, the Company is required to pay quarterly dividends on the Preferred Stock at a rate of 0.50%. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.3 million for the three months ended March 31, 2026 and $0.3 million for the three months ended December 31, 2025.

Other Material Cash Requirements. In addition to contractual obligations, the Company’s material cash requirements also includes compensation and benefits expenses for its employees, which were $8.7 million for the three months ended March 31, 2026. The Company also has material cash requirements for occupancy and equipment expenses, excluding depreciation and amortization of $0.5 million, related to rental expenses, general maintenance and cleaning supplies, guard services, software licenses and other miscellaneous expenses, which were $3.2 million for the three months ended March 31, 2026.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The information required by this item is included in Part I, Item 2 of this report under “Management of Market Risk”.

Item 4. Controls and Procedures.

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of March 31, 2026. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Registrant’s disclosure controls and procedures were effective.

During the three months ended March 31, 2026, there were no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is not involved in any pending legal proceedings as a plaintiff or a defendant other than routine legal proceeding occurring in the ordinary course of business. At March 31, 2026, the Company was not involved in any legal proceedings the outcome of which management believes would be material to its financial condition or results of operations.

Item 1A. Risk Factors.

In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors” included in our 2025 Form 10-K and the risk factors and other cautionary statements contained in our other SEC filings, which could materially affect our businesses, financial condition or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results. There have been no material changes in our Risk Factors from those disclosed in Item 1A of our 2025 Form 10-K or our other SEC filings.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures.

None

Item 5. Other Information.

None

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Item 6. Exhibits

Exhibit Number		Description
3.1		Articles of Incorporation of Ponce Financial Group, Inc. (attached as Exhibit 3.1 to the Registrant’s Form S-1 (File No. 333-258394) filed with the Commission on August 3, 2021).
3.2		Bylaws of Ponce Financial Group, Inc. (attached as Exhibit 3.2 to the Registrant’s Form S-1 (File No. 333-258394) filed with the Commission on August 3, 2021).
3.3		Articles Supplementary to the Charter of Ponce Financial Group, Inc. (attached as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 001-41255) filed with the Commission on June 9, 2022).
31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Ponce Financial Group, Inc. (Registrant)
Date: May 6, 2026		By:	/s/ Carlos P. Naudon
			Carlos P. Naudon
			President and Chief Executive Officer
Date: May 6, 2026		By:	/s/ Sergio J. Vaccaro
			Sergio J. Vaccaro
			Executive Vice President and Chief Financial Officer

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FAQ

How did Ponce Financial Group (PDLB) perform in Q1 2026?

Ponce Financial Group generated higher profits in Q1 2026, with net income of $8.6 million, up from $6.0 million a year earlier. Net interest income reached $28.2 million, and earnings per common share rose to $0.36 from $0.25.

What were Ponce Financial Group (PDLB) total assets and loan balances?

Total assets increased to $3.30 billion at March 31, 2026. Loans receivable, net of the allowance for credit losses, grew to $2.70 billion, supported by balances in multifamily, construction and land, nonresidential, and business loans across the New York City metropolitan market.

How strong were Ponce Financial Group (PDLB) deposits and funding in Q1 2026?

Total deposits were $2.13 billion, including $241.0 million in demand deposits and $1.89 billion in interest-bearing balances. The bank also had $571.1 million of fixed-rate Federal Home Loan Bank advances with a weighted average rate of 3.67%.

What is Ponce Financial Group’s (PDLB) credit quality and allowance for credit losses?

The allowance for credit losses on loans stood at $26.2 million at March 31, 2026, up from $25.4 million at year-end. Nonaccrual loans totaled $20.4 million, lower than $26.9 million at December 31, 2025, and net charge-offs remained relatively modest.

How does the ECIP preferred stock affect Ponce Financial Group (PDLB)?

Ponce Financial Group has 225,000 ECIP preferred shares outstanding with a total liquidation preference of $225 million. These carry a current dividend rate of 0.5%, contingent on meeting specified qualified and deep impact lending thresholds in underserved communities.

What off-balance-sheet commitments does Ponce Financial Group (PDLB) have?

At March 31, 2026, the company had $497.6 million of commitments, including $443.5 million to grant mortgage loans and $54.1 million of unfunded credit lines. An allowance for off-balance-sheet credit losses of $2.5 million is recorded within other liabilities.