Ponce Financial Group Q3 2026 earnings rise to $18M
Net loans rose 18.54% and deposits 15.69% from December 31, 2025, while total assets reached $3.69 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Ponce Financial Group, Inc. (PDLB) reported third-quarter 2026 net income available to common stockholders of $18.0 million, or $0.76 per diluted share, compared with $6.2 million and $0.27 per diluted share a year earlier. Net interest income was $34.0 million, up 34.62% year over year, and net interest margin was 3.86%, versus 3.30%. The quarter included a $5.9 million income-tax benefit, including release of a $10.5 million valuation allowance; it also recorded a $1.2 million loss on real property moved to held for sale.
For the nine months ended September 30, 2026, net income available to common stockholders was $34.5 million, up 94.79%, and net interest income was $92.3 million, up 28.38%, from the same 2025 period. As of September 30, 2026, net loans were $3.08 billion and deposits were $2.37 billion; nonperforming assets were 0.50% of total assets.
Treasury confirmed Ponce met the deep-impact threshold after 16 consecutive quarters of lending above the 60% requirement. The company said it is working with Treasury and its legal counsel on next steps for a preferred-stock repurchase; completion is subject to additional conditions, and there is no assurance whether or when it will occur.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNine-month common-stockholder income rose 94.79% to $34.5 million.
- Moderate pointNine-month net interest income rose 28.38% to $92.3 million.
Negative
- Moderate pointNine-month provision for credit losses rose 159.63% to $7.0 million.
- Minor pointNine-month non-interest income fell 25.52% to $4.4 million.
Filing Explained
The investor presentation says the December 2024 Treasury agreement is an option for a future repurchase of the
8-K Event Classification
Key Figures
Key Terms
net interest margin financial
valuation allowance financial
non-performing assets financial
Common equity Tier 1 capital financial
ECIP securities purchase option agreement regulatory
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did Ponce Financial Group (PDLB) earn in Q3 2026?
What was PDLB's net interest income in Q3 2026?
Will Ponce Financial Group repurchase its ECIP preferred stock?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 26, 2026, Ponce Financial Group, Inc. (the "Company"), the holding company for Ponce Bank, National Association ("Ponce Bank" or the "Bank"), issued a press release announcing its financial results with respect to its third quarter ended September 30, 2026. The Company’s press release is included as Exhibit 99.1 to this report.
The information set forth in this Item 2.02 and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.
Item 7.01 Regulation FD Disclosure.
The Company is scheduled to make presentations to current and prospective investors after October 26, 2026. Attached as Exhibit 99.2 of this Form 8-K is a copy of the presentation which Ponce Financial Group, Inc. will make available at these presentations and will post on its website at www.poncebank.com. This report is being furnished to the SEC and shall not be deemed "filed" for any purpose.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
Exhibit Number |
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Description |
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99.1 |
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Press release dated October 26, 2026 |
99.2 |
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Presentation of Ponce Financial Group |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL) |
SIGNATURE
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.
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Ponce Financial Group, Inc. |
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Date: |
October 26, 2026 |
By: |
/s/ Carlos P. Naudon |
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Carlos P. Naudon |
Exhibit 99.1
Ponce Financial Group, Inc. Reports Third Quarter 2026 Results
NEW YORK, October 26, 2026 - Ponce Financial Group, Inc., (the “Company”) (Nasdaq: PDLB), the holding company for Ponce Bank, National Association ("Ponce Bank" or the “Bank”), today announced results for the third quarter of 2026.
Third Quarter 2026 Highlights (Compared to Prior Periods):
Nine Months 2026 Highlights (Compared to 2025)
per diluted share for the nine months ended September 30, 2025. Net income for the nine months ended September 30, 2026 and 2025 was $35.4 million and $18.6 million, respectively. The Company paid dividends of $0.8 million on its preferred stock during both the nine months ended September 30, 2026 and 2025.
1
President and Chief Executive Officer’s Comments
Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “Ponce continues to show strong results and deliver shareholder value. While the quarter includes some non-recurring items, our performance was robust even before accounting for those one-time events. Book value per share stands at $14.60, representing a $1.90 increase over the last twelve months. Furthermore, our net interest income continues to benefit from disciplined pricing and growth in earning assets, while non-performing assets decreased during the quarter to 50 basis points. Our capital position remains exceptionally strong and well in excess of regulatory requirements. We remain deeply committed to the communities we serve, and we will continue investing in both our people and technology to drive further operational efficiency.”
Executive Chairman’s Comment
Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We are pleased with our robust business activity during the quarter. As previously reported, we filed our second-quarter Quarterly Supplemental Report (QSR), which marks 16 consecutive quarters of deep impact lending above the 60% required threshold to repurchase our Preferred Stock. The U.S. Department of the Treasury has confirmed that the Company met this deep impact threshold. Consequently, we are actively collaborating with Treasury and its legal counsel to finalize the next steps for the Preferred Stock repurchase.”
ECIP
The consummation of any such repurchase of our Preferred Stock is subject to the satisfaction of additional conditions, including satisfying certain eligibility criteria. Although the Company currently expects that it will satisfy all other necessary conditions, there can be no assurance if and when such repurchase will be consummated with Treasury.
The table below indicates the Key Metrics at or for the three months ended:
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At or for the Three Months Ended |
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September 30, |
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June 30, |
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March 31, |
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December 31, |
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September 30, |
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2026 |
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2026 |
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2026 |
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2025 |
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2025 |
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Performance Ratios: |
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Return on average assets (1) |
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1.99 |
% |
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1.00 |
% |
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1.07 |
% |
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1.26 |
% |
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0.82 |
% |
Return on common equity (1) |
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20.18 |
% |
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9.81 |
% |
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10.37 |
% |
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12.50 |
% |
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8.10 |
% |
Net interest margin (1) (2) |
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3.86 |
% |
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3.66 |
% |
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3.61 |
% |
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3.57 |
% |
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3.30 |
% |
Non-interest expense to average assets (1) |
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2.13 |
% |
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2.14 |
% |
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2.14 |
% |
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2.06 |
% |
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2.10 |
% |
Efficiency ratio (3) |
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55.21 |
% |
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57.41 |
% |
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56.96 |
% |
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52.95 |
% |
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62.15 |
% |
Capital Ratios: |
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Total capital to risk-weighted assets (Ponce Financial Group) |
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18.66 |
% |
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20.00 |
% |
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21.23 |
% |
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23.00 |
% |
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24.08 |
% |
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group) |
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10.93 |
% |
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11.51 |
% |
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12.11 |
% |
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12.98 |
% |
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13.39 |
% |
Tier 1 capital to total assets (Ponce Financial Group) |
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16.46 |
% |
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16.85 |
% |
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17.22 |
% |
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17.27 |
% |
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17.33 |
% |
Total capital to risk-weighted assets (Bank only) |
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16.98 |
% |
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18.88 |
% |
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20.00 |
% |
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21.63 |
% |
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21.79 |
% |
Common equity Tier 1 capital to risk-weighted assets (Bank only) |
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15.98 |
% |
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17.87 |
% |
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18.97 |
% |
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20.53 |
% |
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20.66 |
% |
Tier 1 capital to total assets (Bank only) |
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14.85 |
% |
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15.81 |
% |
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16.09 |
% |
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16.12 |
% |
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16.08 |
% |
Asset Quality Ratios: |
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Allowance for credit losses on loans as a percentage of total loans |
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0.94 |
% |
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0.95 |
% |
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0.96 |
% |
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0.97 |
% |
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0.98 |
% |
Allowance for credit losses on loans as a percentage of nonperforming loans |
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156.85 |
% |
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116.91 |
% |
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128.93 |
% |
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94.74 |
% |
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88.88 |
% |
Net (charge-offs) recoveries to average outstanding loans (1) |
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(0.05 |
%) |
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(0.05 |
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(0.08 |
%) |
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(0.13 |
%) |
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(0.03 |
%) |
Non-performing assets as a percentage of total assets |
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0.50 |
% |
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0.67 |
% |
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0.62 |
% |
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0.83 |
% |
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0.88 |
% |
Other: |
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Number of offices |
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17 |
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17 |
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17 |
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17 |
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18 |
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Number of full-time equivalent employees |
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236 |
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229 |
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218 |
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216 |
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209 |
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2
Summary of Results of Operations
Net income for the three months ended September 30, 2026 was $18.2 million, increased $9.8 million, or 114.82%, compared to net income of $8.5 million for the three months ended June 30, 2026 and increased $11.7 million or 180.41% compared to net income of $6.5 million for the three months ended September 30, 2025.
The $9.8 million increase of net income for the three months ended September 30, 2026 compared to the three months ended June 30, 2026 was attributed mainly to an increase of $3.9 million in net interest income and $8.7 million in benefit for income taxes, offset by increases of $1.1 million in non-interest expense, $1.1 million in provision for credit losses and a decrease of $0.7 million in non-interest income.
The $11.7 million increase of net income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was largely due to an increase of $8.7 million in net interest income and $8.1 million in benefit for income taxes, offset by increases of $2.6 million in non-interest expense and $1.9 million in provision for credit losses and a decrease of $0.6 million in non-interest income largely due to a $1.2 million loss on real property.
Net income for the nine months ended September 30, 2026 was $35.4 million, increased $16.8 million, or 90.48%, compared to net income of $18.6 million for the nine months ended September 30, 2025. The $16.8 million increase in net income was attributed mainly to an increase of $20.4 million in net interest income and $6.5 million in benefit for income taxes, offset by increases of $4.3 million in provision for credit losses and $4.2 million in non-interest expense and a decrease of $1.5 million in non-interest income largely due to a $1.2 million loss on real property.
Net Interest Income and Net Interest Margin
Net interest income for the three months ended September 30, 2026, increased $3.9 million, or 13.07%, to $34.0 million compared to $30.1 million for the three months ended June 30, 2026 and increased $8.7 million, or 34.62%, compared to $25.2 million for the three months ended September 30, 2025.
The $3.9 million increase in net interest income from the three months ended June 30, 2026 was attributable to an increase of $5.9 million in total interest and dividend income, offset by an increase of $1.9 million in total interest expense. The $8.7 million increase in net interest income from the three months ended September 30, 2025 was attributable to an increase of $10.7 million in total interest and dividend income, offset by an increase of $1.9 million in total interest expense.
Net interest income for the nine months ended September 30, 2026, increased $20.4 million, or 28.38%, to $92.3 million compared to $71.9 million for the nine months ended September 30, 2025. The $20.4 million increase in net interest income from the nine months ended September 30, 2025 was attributable to an increase of $21.1 million in total interest and dividend income, offset by an increase of $0.7 million in total interest expense.
Net interest margin was 3.86% for the three months ended September 30, 2026 compared to 3.66% for the prior quarter, an increase of 20bps and 3.30% for the same period last year, an increase of 56bps.
Net interest margin was 3.72% for the nine months ended September 30, 2026 compared to 3.18% for the nine months ended September 30, 2025, an increase of 54bps.
Non-interest Income
Non-interest income for the three months ended September 30, 2026, was $0.9 million, decreased $0.7 million, or 44.34%, compared to $1.5 million for the three months ended June 30, 2026, and decreased $0.6 million, or 43.03%, compared to $1.5 million for the three months ended September 30, 2025.
The $0.7 million decrease in non-interest income from the three months ended June 30, 2026 was largely attributable to a $1.2 million loss on real property, offset by an increase of $0.4 million in other non-interest income.
3
The $0.6 million decrease in non-interest income from the three months ended September 30, 2025 was largely attributable to a loss of $1.2 million on real property recognized in the third quarter of 2026, $0.4 million in grant income recognized in the third quarter of 2025 and a decrease of $0.2 million in late and prepayment charges, offset by an increase of $1.0 million in other non-interest income.
Non-interest income for the nine months ended September 30, 2026, was $4.4 million, a decrease of $1.5 million, or 25.52%, compared to $5.9 million for the nine months ended September 30, 2025. The $1.5 million decrease in non-interest income from the nine months ended September 30, 2025 was largely attributable to $1.2 million loss on real property, $0.8 million in grant income that was recognized during the nine months ended September 30, 2025, decreases of $0.5 million in late and prepayment charges and $0.4 million in income on sale of SBA loans, offset by increases of $1.3 million in other non-interest income and $0.2 million in service charges and fees.
Non-interest Expense
Non-interest expense for the three months ended September 30, 2026 was $19.2 million, increased $1.1 million, or 6.07%, compared to $18.1 million for the three months ended June 30, 2026 and increased $2.6 million, or 15.75%, compared to $16.6 million for the three months ended September 30, 2025.
The $1.1 million increase in non-interest expense from the three months ended June 30, 2026 was mainly attributable to an increase of $1.4 million in compensation and benefits as a result of new hires, partially offset by a decrease of $0.2 million in professional fees.
The $2.6 million increase in non-interest expense from the three months ended September 30, 2025 was mainly attributable to an increase of $2.6 million in compensation and benefits as a result of new hires.
Non-interest expense for the nine months ended September 30, 2026 was $54.6 million, increased $4.2 million, or 8.41%, compared to $50.4 million for the nine months ended September 30, 2025. The $4.2 million increase in non-interest expense from the nine months ended September 30, 2025 was mainly attributable to an increase of $5.0 million in compensation and benefits as a result of new hires, partially offset by decreases of $0.4 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.1 million in other non-interest expense.
Credit Quality:
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $21.8 million at September 30, 2026 compared to $26.8 million at June 30, 2026 and $32.4 million at September 30, 2025.
During the three months ended September 30, 2026, a credit loss provision of $3.2 million on loans was recorded, consisting of $2.0 million charged on the funded portion and $1.2 million charged on the unfunded portion on loans. During the three months ended June 30, 2026, a credit loss provision of $2.1 million on loans was recorded, consisting of $1.7 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. During the three months ended September 30, 2025, a credit loss provision of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion on loans and $0.5 million charged on the unfunded portion on loans.
During the nine months ended September 30, 2026, a credit loss provision of $7.0 million on loans was recorded, consisting of $4.9 million charged on the funded portion and $2.1 million charged on the unfunded portion on loans. During the nine months ended September 30, 2025, a credit loss provision of $2.7 million on loans was recorded, consisting of $2.9 million charged on the funded portion on loans and a $0.2 million benefit on the unfunded portion on loans.
4
Balance Sheet Summary
Total assets increased $462.7 million, or 14.35%, to $3.69 billion as of September 30, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $481.8 million in net loans receivable, $14.3 million in deferred tax assets, $6.1 million in cash and cash equivalents, $4.8 million in Federal Home Loan Bank of New York stock, $3.7 million in accrued interest receivable and $2.2 million in other assets, partially offset by decreases of $31.8 million in held-to-maturity securities, $12.7 million in available-for-sale securities, $4.7 million in premises and equipment, net, and $1.3 million in right of use assets. The $4.7 million decrease in premises and equipment, net was largely attributable to $1.8 million of real property that was reclassified to held for sale and is reflected in other assets in the Consolidated Statements of Financial Condition and a $1.2 million loss on real property that is reflected in total non-interest income in the Consolidated Statements of Operations.
Total liabilities increased $426.0 million, or 15.88%, to $3.11 billion as of September 30, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $321.1 million in deposits, $100.0 million in borrowings and $6.0 million in other liabilities, partially offset by a decrease of $1.2 million in operating lease liabilities.
Total stockholders’ equity increased $36.7 million, or 6.78%, to $578.3 million as of September 30, 2026, from $541.5 million as of December 31, 2025. The $36.7 million increase in stockholders’ equity was largely attributable to $35.4 million in net income, $1.9 million impact to additional paid in capital as a result of share-based compensation, $1.9 million from release of ESOP shares and $0.2 million from exercise of stock options, offset by $1.8 million in other comprehensive loss and $0.8 million related to the dividend paid on preferred shares during the nine months ended September 30, 2026.
About Ponce Financial Group, Inc.
Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank, N.A. also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, Federal Home Loan Bank stock and Federal Reserve Bank stock.
5
Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank, N.A. operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank, N.A.’s loans; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the global economy, including negative changes that may arise from armed conflict and geopolitical instability; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank, N.A.’s market area; Ponce Bank, N.A.’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; the risk that the repurchase of Ponce Financial Group, Inc.’s Preferred Stock issued under the ECIP may not be consummated on the anticipated timeline, on the anticipated terms, or at all; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.
6
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)
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As of |
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September 30, |
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June 30, |
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March 31, |
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December 31, |
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September 30, |
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2026 |
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2026 |
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2026 |
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2025 |
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2025 |
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ASSETS |
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Cash and due from banks: |
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Cash |
$ |
27,725 |
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$ |
25,567 |
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|
$ |
27,429 |
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$ |
28,511 |
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$ |
29,296 |
|
Interest-bearing deposits |
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104,486 |
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|
114,443 |
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|
89,817 |
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|
97,643 |
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|
117,283 |
|
Total cash and cash equivalents |
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132,211 |
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140,010 |
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117,246 |
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|
|
126,154 |
|
|
|
146,579 |
|
Available-for-sale securities, at fair value |
|
79,475 |
|
|
|
84,774 |
|
|
|
87,150 |
|
|
|
92,196 |
|
|
|
94,822 |
|
Held-to-maturity securities, at amortized cost |
|
241,176 |
|
|
|
253,616 |
|
|
|
263,514 |
|
|
|
272,982 |
|
|
|
285,125 |
|
Placement with banks |
|
249 |
|
|
|
249 |
|
|
|
249 |
|
|
|
249 |
|
|
|
249 |
|
Mortgage loans held for sale, at fair value |
|
3,701 |
|
|
|
3,050 |
|
|
|
2,127 |
|
|
|
3,388 |
|
|
|
5,794 |
|
Loans receivable, net |
|
3,081,101 |
|
|
|
2,879,740 |
|
|
|
2,698,649 |
|
|
|
2,599,258 |
|
|
|
2,490,046 |
|
Accrued interest receivable |
|
21,624 |
|
|
|
19,939 |
|
|
|
19,274 |
|
|
|
17,905 |
|
|
|
18,903 |
|
Premises and equipment, net |
|
10,924 |
|
|
|
14,645 |
|
|
|
15,159 |
|
|
|
15,638 |
|
|
|
16,129 |
|
Right of use assets |
|
26,331 |
|
|
|
27,055 |
|
|
|
27,633 |
|
|
|
27,583 |
|
|
|
28,295 |
|
Federal Home Loan Bank of New York stock (FHLBNY), at cost |
|
34,064 |
|
|
|
30,689 |
|
|
|
28,180 |
|
|
|
29,309 |
|
|
|
25,945 |
|
Federal Reserve Bank of New York stock (FRBNY), at cost |
|
10,725 |
|
|
|
10,714 |
|
|
|
10,706 |
|
|
|
10,698 |
|
|
|
— |
|
Deferred tax assets |
|
25,770 |
|
|
|
12,979 |
|
|
|
11,729 |
|
|
|
11,501 |
|
|
|
12,402 |
|
Other assets |
|
19,326 |
|
|
|
17,251 |
|
|
|
19,141 |
|
|
|
17,109 |
|
|
|
32,790 |
|
Total assets |
$ |
3,686,677 |
|
|
$ |
3,494,711 |
|
|
$ |
3,300,757 |
|
|
$ |
3,223,970 |
|
|
$ |
3,157,079 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
$ |
2,367,708 |
|
|
$ |
2,271,809 |
|
|
$ |
2,133,795 |
|
|
$ |
2,046,635 |
|
|
$ |
2,063,081 |
|
Borrowings |
|
696,100 |
|
|
|
621,100 |
|
|
|
571,100 |
|
|
|
596,100 |
|
|
|
521,100 |
|
Operating lease liabilities |
|
28,171 |
|
|
|
28,874 |
|
|
|
29,429 |
|
|
|
29,353 |
|
|
|
30,028 |
|
Accrued interest payable |
|
3,862 |
|
|
|
3,837 |
|
|
|
4,338 |
|
|
|
3,788 |
|
|
|
4,372 |
|
Other liabilities |
|
12,576 |
|
|
|
8,121 |
|
|
|
10,732 |
|
|
|
6,545 |
|
|
|
8,663 |
|
Total liabilities |
|
3,108,417 |
|
|
|
2,933,741 |
|
|
|
2,749,394 |
|
|
|
2,682,421 |
|
|
|
2,627,244 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock, $0.01 par value; 100,000,000 shares authorized |
|
225,000 |
|
|
|
225,000 |
|
|
|
225,000 |
|
|
|
225,000 |
|
|
|
225,000 |
|
Common stock, $0.01 par value; 200,000,000 shares authorized |
|
249 |
|
|
|
249 |
|
|
|
249 |
|
|
|
249 |
|
|
|
249 |
|
Treasury stock, at cost |
|
(5,738 |
) |
|
|
(5,738 |
) |
|
|
(5,738 |
) |
|
|
(6,164 |
) |
|
|
(7,270 |
) |
Additional paid-in-capital |
|
211,317 |
|
|
|
210,339 |
|
|
|
209,219 |
|
|
|
208,604 |
|
|
|
208,909 |
|
Retained earnings |
|
169,855 |
|
|
|
151,887 |
|
|
|
143,674 |
|
|
|
135,332 |
|
|
|
125,477 |
|
Accumulated other comprehensive loss |
|
(12,645 |
) |
|
|
(10,698 |
) |
|
|
(10,680 |
) |
|
|
(10,820 |
) |
|
|
(11,586 |
) |
Unearned compensation ─ ESOP |
|
(9,778 |
) |
|
|
(10,069 |
) |
|
|
(10,361 |
) |
|
|
(10,652 |
) |
|
|
(10,944 |
) |
Total stockholders' equity |
|
578,260 |
|
|
|
560,970 |
|
|
|
551,363 |
|
|
|
541,549 |
|
|
|
529,835 |
|
Total liabilities and stockholders' equity |
$ |
3,686,677 |
|
|
$ |
3,494,711 |
|
|
$ |
3,300,757 |
|
|
$ |
3,223,970 |
|
|
$ |
3,157,079 |
|
7
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
|
Three Months Ended |
|
|||||||||||||||||
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest on loans receivable |
$ |
52,910 |
|
|
$ |
46,835 |
|
|
$ |
43,982 |
|
|
$ |
43,599 |
|
|
$ |
41,486 |
|
Interest on deposits due from banks |
|
901 |
|
|
|
954 |
|
|
|
770 |
|
|
|
1,209 |
|
|
|
978 |
|
Interest and dividend on securities and FHLBNY stock |
|
3,693 |
|
|
|
3,863 |
|
|
|
3,910 |
|
|
|
4,013 |
|
|
|
4,383 |
|
Total interest and dividend income |
|
57,504 |
|
|
|
51,652 |
|
|
|
48,662 |
|
|
|
48,821 |
|
|
|
46,847 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest on certificates of deposit |
|
7,313 |
|
|
|
6,785 |
|
|
|
6,415 |
|
|
|
6,706 |
|
|
|
6,553 |
|
Interest on other deposits |
|
10,430 |
|
|
|
9,544 |
|
|
|
8,630 |
|
|
|
9,106 |
|
|
|
9,996 |
|
Interest on borrowings |
|
5,772 |
|
|
|
5,262 |
|
|
|
5,391 |
|
|
|
5,075 |
|
|
|
5,050 |
|
Total interest expense |
|
23,515 |
|
|
|
21,591 |
|
|
|
20,436 |
|
|
|
20,887 |
|
|
|
21,599 |
|
Net interest income |
|
33,989 |
|
|
|
30,061 |
|
|
|
28,226 |
|
|
|
27,934 |
|
|
|
25,248 |
|
Provision for credit losses |
|
3,219 |
|
|
|
2,148 |
|
|
|
1,656 |
|
|
|
1,078 |
|
|
|
1,364 |
|
Net interest income after provision for credit losses |
|
30,770 |
|
|
|
27,913 |
|
|
|
26,570 |
|
|
|
26,856 |
|
|
|
23,884 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service charges and fees |
|
611 |
|
|
|
600 |
|
|
|
539 |
|
|
|
542 |
|
|
|
539 |
|
Brokerage commissions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23 |
|
|
|
8 |
|
Late and prepayment charges |
|
232 |
|
|
|
138 |
|
|
|
726 |
|
|
|
1,173 |
|
|
|
385 |
|
Income on sale of mortgage loans |
|
188 |
|
|
|
161 |
|
|
|
120 |
|
|
|
139 |
|
|
|
166 |
|
Grant income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
428 |
|
|
|
429 |
|
Loss on real property |
|
(1,166 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other |
|
985 |
|
|
|
628 |
|
|
|
657 |
|
|
|
1,174 |
|
|
|
(35 |
) |
Total non-interest income |
|
850 |
|
|
|
1,527 |
|
|
|
2,042 |
|
|
|
3,479 |
|
|
|
1,492 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Compensation and benefits |
|
10,509 |
|
|
|
9,070 |
|
|
|
8,663 |
|
|
|
8,113 |
|
|
|
7,868 |
|
Occupancy and equipment |
|
3,879 |
|
|
|
3,901 |
|
|
|
3,672 |
|
|
|
4,033 |
|
|
|
3,934 |
|
Data processing expenses |
|
1,202 |
|
|
|
1,195 |
|
|
|
1,219 |
|
|
|
1,223 |
|
|
|
1,296 |
|
Direct loan expenses |
|
89 |
|
|
|
187 |
|
|
|
121 |
|
|
|
116 |
|
|
|
155 |
|
Insurance and surety bond premiums |
|
332 |
|
|
|
332 |
|
|
|
333 |
|
|
|
324 |
|
|
|
318 |
|
Office supplies, telephone and postage |
|
147 |
|
|
|
152 |
|
|
|
193 |
|
|
|
186 |
|
|
|
170 |
|
Professional fees |
|
1,305 |
|
|
|
1,470 |
|
|
|
1,346 |
|
|
|
1,392 |
|
|
|
1,409 |
|
Marketing and promotional expenses |
|
144 |
|
|
|
190 |
|
|
|
228 |
|
|
|
94 |
|
|
|
184 |
|
Federal deposit insurance and regulatory assessment |
|
495 |
|
|
|
408 |
|
|
|
409 |
|
|
|
97 |
|
|
|
266 |
|
Other operating expenses |
|
1,134 |
|
|
|
1,230 |
|
|
|
1,056 |
|
|
|
1,056 |
|
|
|
1,018 |
|
Total non-interest expense |
|
19,236 |
|
|
|
18,135 |
|
|
|
17,240 |
|
|
|
16,634 |
|
|
|
16,618 |
|
Income before income taxes |
|
12,384 |
|
|
|
11,305 |
|
|
|
11,372 |
|
|
|
13,701 |
|
|
|
8,758 |
|
(Benefit) provision for income taxes |
|
(5,865 |
) |
|
|
2,810 |
|
|
|
2,749 |
|
|
|
3,565 |
|
|
|
2,250 |
|
Net income |
$ |
18,249 |
|
|
$ |
8,495 |
|
|
$ |
8,623 |
|
|
$ |
10,136 |
|
|
$ |
6,508 |
|
Dividends on preferred shares |
|
281 |
|
|
|
282 |
|
|
|
281 |
|
|
|
281 |
|
|
|
281 |
|
Net income available to common stockholders |
$ |
17,968 |
|
|
$ |
8,213 |
|
|
$ |
8,342 |
|
|
$ |
9,855 |
|
|
$ |
6,227 |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.78 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.43 |
|
|
$ |
0.27 |
|
Diluted |
$ |
0.76 |
|
|
$ |
0.35 |
|
|
$ |
0.36 |
|
|
$ |
0.42 |
|
|
$ |
0.27 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
23,086,892 |
|
|
|
23,053,460 |
|
|
|
22,988,317 |
|
|
|
22,837,044 |
|
|
|
22,766,195 |
|
Diluted |
|
23,650,370 |
|
|
|
23,508,153 |
|
|
|
23,331,314 |
|
|
|
23,263,708 |
|
|
|
23,135,448 |
|
8
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
|
|
For the Nine Months Ended September 30, |
|
|||||||||||||
|
|
2026 |
|
|
2025 |
|
|
Variance $ |
|
|
Variance % |
|
||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest on loans receivable |
|
$ |
143,727 |
|
|
$ |
118,913 |
|
|
$ |
24,814 |
|
|
|
20.87 |
% |
Interest on deposits due from banks |
|
|
2,625 |
|
|
|
3,453 |
|
|
|
(828 |
) |
|
|
(23.98 |
%) |
Interest and dividend on securities and FHLBNY stock |
|
|
11,466 |
|
|
|
14,338 |
|
|
|
(2,872 |
) |
|
|
(20.03 |
%) |
Total interest and dividend income |
|
|
157,818 |
|
|
|
136,704 |
|
|
|
21,114 |
|
|
|
15.45 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest on certificates of deposit |
|
|
20,513 |
|
|
|
21,689 |
|
|
|
(1,176 |
) |
|
|
(5.42 |
%) |
Interest on other deposits |
|
|
28,604 |
|
|
|
27,608 |
|
|
|
996 |
|
|
|
3.61 |
% |
Interest on borrowings |
|
|
16,425 |
|
|
|
15,530 |
|
|
|
895 |
|
|
|
5.76 |
% |
Total interest expense |
|
|
65,542 |
|
|
|
64,827 |
|
|
|
715 |
|
|
|
1.10 |
% |
Net interest income |
|
|
92,276 |
|
|
|
71,877 |
|
|
|
20,399 |
|
|
|
28.38 |
% |
Provision for credit losses |
|
|
7,023 |
|
|
|
2,705 |
|
|
|
4,318 |
|
|
|
159.63 |
% |
Net interest income after provision for credit losses |
|
|
85,253 |
|
|
|
69,172 |
|
|
|
16,081 |
|
|
|
23.25 |
% |
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service charges and fees |
|
|
1,750 |
|
|
|
1,575 |
|
|
|
175 |
|
|
|
11.11 |
% |
Brokerage commissions |
|
|
— |
|
|
|
12 |
|
|
|
(12 |
) |
|
|
(100.00 |
%) |
Late and prepayment charges |
|
|
1,096 |
|
|
|
1,612 |
|
|
|
(516 |
) |
|
|
(32.01 |
%) |
Income on sale of mortgage loans |
|
|
469 |
|
|
|
483 |
|
|
|
(14 |
) |
|
|
(2.90 |
%) |
Income on sale of SBA loans |
|
|
— |
|
|
|
404 |
|
|
|
(404 |
) |
|
|
(100.00 |
%) |
Grant income |
|
|
— |
|
|
|
857 |
|
|
|
(857 |
) |
|
|
(100.00 |
%) |
Loss on real property |
|
|
(1,166 |
) |
|
|
— |
|
|
|
(1,166 |
) |
|
|
— |
% |
Other |
|
|
2,270 |
|
|
|
990 |
|
|
|
1,280 |
|
|
|
129.29 |
% |
Total non-interest income |
|
|
4,419 |
|
|
|
5,933 |
|
|
|
(1,514 |
) |
|
|
(25.52 |
%) |
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits |
|
|
28,242 |
|
|
|
23,275 |
|
|
|
4,967 |
|
|
|
21.34 |
% |
Occupancy and equipment |
|
|
11,452 |
|
|
|
11,754 |
|
|
|
(302 |
) |
|
|
(2.57 |
%) |
Data processing expenses |
|
|
3,616 |
|
|
|
3,636 |
|
|
|
(20 |
) |
|
|
(0.55 |
%) |
Direct loan expenses |
|
|
397 |
|
|
|
784 |
|
|
|
(387 |
) |
|
|
(49.36 |
%) |
Insurance and surety bond premiums |
|
|
997 |
|
|
|
930 |
|
|
|
67 |
|
|
|
7.20 |
% |
Office supplies, telephone and postage |
|
|
492 |
|
|
|
514 |
|
|
|
(22 |
) |
|
|
(4.28 |
%) |
Professional fees |
|
|
4,121 |
|
|
|
4,140 |
|
|
|
(19 |
) |
|
|
(0.46 |
%) |
Marketing and promotional expenses |
|
|
562 |
|
|
|
533 |
|
|
|
29 |
|
|
|
5.44 |
% |
Federal deposit insurance and regulatory assessments |
|
|
1,312 |
|
|
|
1,273 |
|
|
|
39 |
|
|
|
3.06 |
% |
Other operating expenses |
|
|
3,420 |
|
|
|
3,536 |
|
|
|
(116 |
) |
|
|
(3.28 |
%) |
Total non-interest expense |
|
|
54,611 |
|
|
|
50,375 |
|
|
|
4,236 |
|
|
|
8.41 |
% |
Income before income taxes |
|
|
35,061 |
|
|
|
24,730 |
|
|
|
10,331 |
|
|
|
41.78 |
% |
(Benefit) provision for income taxes |
|
|
(306 |
) |
|
|
6,163 |
|
|
|
(6,469 |
) |
|
|
(104.97 |
%) |
Net income |
|
$ |
35,367 |
|
|
$ |
18,567 |
|
|
$ |
16,800 |
|
|
|
90.48 |
% |
Dividends on preferred shares |
|
|
844 |
|
|
|
844 |
|
|
|
— |
|
|
|
— |
% |
Net income available to common stockholders |
|
$ |
34,523 |
|
|
$ |
17,723 |
|
|
$ |
16,800 |
|
|
|
94.79 |
% |
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.50 |
|
|
$ |
0.78 |
|
|
$ |
0.72 |
|
|
|
92.31 |
% |
Diluted |
|
$ |
1.47 |
|
|
$ |
0.77 |
|
|
$ |
0.70 |
|
|
|
90.91 |
% |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
23,043,250 |
|
|
|
22,715,620 |
|
|
|
327,630 |
|
|
|
1.44 |
% |
Diluted |
|
|
23,496,728 |
|
|
|
22,992,655 |
|
|
|
504,073 |
|
|
|
2.19 |
% |
9
Ponce Financial Group, Inc. and Subsidiaries
Loans Receivable excluding Mortgage Loans Held for Sale
|
|
As of |
|
|||||||||||||||||||||||||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||||||||||||||||||||||
|
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||||||||||||||||||||||||
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
||||||||||
|
|
(Dollars in thousands) |
|
|||||||||||||||||||||||||||||||||||||
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family residential |
|
$ |
413,064 |
|
|
|
13.26 |
% |
|
$ |
426,343 |
|
|
|
14.65 |
% |
|
$ |
431,377 |
|
|
|
15.82 |
% |
|
$ |
434,374 |
|
|
|
16.54 |
% |
|
$ |
444,602 |
|
|
|
17.67 |
% |
Multifamily residential |
|
|
1,051,642 |
|
|
|
33.76 |
% |
|
|
1,057,612 |
|
|
|
36.35 |
% |
|
|
915,333 |
|
|
|
33.58 |
% |
|
|
756,542 |
|
|
|
28.83 |
% |
|
|
688,574 |
|
|
|
27.39 |
% |
Nonresidential properties |
|
|
557,449 |
|
|
|
17.89 |
% |
|
|
535,521 |
|
|
|
18.41 |
% |
|
|
534,256 |
|
|
|
19.60 |
% |
|
|
526,210 |
|
|
|
20.05 |
% |
|
|
436,175 |
|
|
|
17.35 |
% |
Construction and land |
|
|
1,016,809 |
|
|
|
32.64 |
% |
|
|
817,151 |
|
|
|
28.08 |
% |
|
|
763,990 |
|
|
|
28.03 |
% |
|
|
854,096 |
|
|
|
32.54 |
% |
|
|
886,369 |
|
|
|
35.25 |
% |
Total mortgage loans |
|
|
3,038,964 |
|
|
|
97.55 |
% |
|
|
2,836,627 |
|
|
|
97.49 |
% |
|
|
2,644,956 |
|
|
|
97.03 |
% |
|
|
2,571,222 |
|
|
|
97.96 |
% |
|
|
2,455,720 |
|
|
|
97.66 |
% |
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans |
|
|
75,852 |
|
|
|
2.43 |
% |
|
|
72,438 |
|
|
|
2.49 |
% |
|
|
80,366 |
|
|
|
2.95 |
% |
|
|
53,063 |
|
|
|
2.02 |
% |
|
|
58,012 |
|
|
|
2.31 |
% |
Consumer loans |
|
|
581 |
|
|
|
0.02 |
% |
|
|
577 |
|
|
|
0.02 |
% |
|
|
596 |
|
|
|
0.02 |
% |
|
|
625 |
|
|
|
0.02 |
% |
|
|
727 |
|
|
|
0.03 |
% |
Total non-mortgage loans |
|
|
76,433 |
|
|
|
2.45 |
% |
|
|
73,015 |
|
|
|
2.51 |
% |
|
|
80,962 |
|
|
|
2.97 |
% |
|
|
53,688 |
|
|
|
2.04 |
% |
|
|
58,739 |
|
|
|
2.34 |
% |
Total loans, gross |
|
|
3,115,397 |
|
|
|
100.00 |
% |
|
|
2,909,642 |
|
|
|
100.00 |
% |
|
|
2,725,918 |
|
|
|
100.00 |
% |
|
|
2,624,910 |
|
|
|
100.00 |
% |
|
|
2,514,459 |
|
|
|
100.00 |
% |
Net deferred loan origination fees |
|
|
(5,128 |
) |
|
|
|
|
|
(2,348 |
) |
|
|
|
|
|
(1,031 |
) |
|
|
|
|
|
(203 |
) |
|
|
|
|
|
351 |
|
|
|
|
|||||
Allowance for credit losses on loans |
|
|
(29,168 |
) |
|
|
|
|
|
(27,554 |
) |
|
|
|
|
|
(26,238 |
) |
|
|
|
|
|
(25,449 |
) |
|
|
|
|
|
(24,764 |
) |
|
|
|
|||||
Loans, net |
|
$ |
3,081,101 |
|
|
|
|
|
$ |
2,879,740 |
|
|
|
|
|
$ |
2,698,649 |
|
|
|
|
|
$ |
2,599,258 |
|
|
|
|
|
$ |
2,490,046 |
|
|
|
|
|||||
10
Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans
|
For the Three Months Ended |
|
|||||||||||||||||
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||||
|
(Dollars in thousands) |
|
|||||||||||||||||
Allowance for credit losses on loans at beginning of the period |
$ |
27,554 |
|
|
$ |
26,238 |
|
|
$ |
25,449 |
|
|
$ |
24,764 |
|
|
$ |
24,100 |
|
Provision for credit losses on loans |
|
1,996 |
|
|
|
1,669 |
|
|
|
1,293 |
|
|
|
1,526 |
|
|
|
864 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1-4 family residential |
|
(5 |
) |
|
|
— |
|
|
|
— |
|
|
|
(32 |
) |
|
|
— |
|
Multifamily residences |
|
(65 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business |
|
(317 |
) |
|
|
(354 |
) |
|
|
(504 |
) |
|
|
(801 |
) |
|
|
(200 |
) |
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(44 |
) |
|
|
— |
|
Total charge-offs |
|
(387 |
) |
|
|
(354 |
) |
|
|
(504 |
) |
|
|
(877 |
) |
|
|
(200 |
) |
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1-4 family residential |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business |
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
— |
|
Total recoveries |
|
5 |
|
|
|
1 |
|
|
|
— |
|
|
|
36 |
|
|
|
— |
|
Net (charge-offs) recoveries |
|
(382 |
) |
|
|
(353 |
) |
|
|
(504 |
) |
|
|
(841 |
) |
|
|
(200 |
) |
Allowance for credit losses on loans at end of the period |
$ |
29,168 |
|
|
$ |
27,554 |
|
|
$ |
26,238 |
|
|
$ |
25,449 |
|
|
$ |
24,764 |
|
11
Ponce Financial Group, Inc. and Subsidiaries
Deposits
|
|
As of |
|
|||||||||||||||||||||||||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||||||||||||||||||||||
|
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||||||||||||||||||||||||
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
||||||||||
|
|
(Dollars in thousands) |
|
|||||||||||||||||||||||||||||||||||||
Demand |
|
$ |
244,860 |
|
|
|
10.34 |
% |
|
$ |
251,919 |
|
|
|
11.10 |
% |
|
$ |
241,012 |
|
|
|
11.29 |
% |
|
$ |
208,250 |
|
|
|
10.18 |
% |
|
$ |
192,595 |
|
|
|
9.34 |
% |
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW/IOLA accounts |
|
|
76,392 |
|
|
|
3.23 |
% |
|
|
71,987 |
|
|
|
3.17 |
% |
|
|
78,192 |
|
|
|
3.66 |
% |
|
|
84,012 |
|
|
|
4.10 |
% |
|
|
75,051 |
|
|
|
3.64 |
% |
Money market accounts |
|
|
898,719 |
|
|
|
37.96 |
% |
|
|
929,002 |
|
|
|
40.89 |
% |
|
|
811,982 |
|
|
|
38.05 |
% |
|
|
779,532 |
|
|
|
38.09 |
% |
|
|
821,844 |
|
|
|
39.84 |
% |
Reciprocal deposits |
|
|
188,016 |
|
|
|
7.94 |
% |
|
|
164,883 |
|
|
|
7.26 |
% |
|
|
162,926 |
|
|
|
7.64 |
% |
|
|
152,630 |
|
|
|
7.46 |
% |
|
|
154,548 |
|
|
|
7.49 |
% |
Savings accounts |
|
|
118,727 |
|
|
|
5.01 |
% |
|
|
115,233 |
|
|
|
5.07 |
% |
|
|
118,373 |
|
|
|
5.55 |
% |
|
|
117,708 |
|
|
|
5.75 |
% |
|
|
117,401 |
|
|
|
5.69 |
% |
Total NOW, money market, reciprocal and savings accounts |
|
|
1,281,854 |
|
|
|
54.14 |
% |
|
|
1,281,105 |
|
|
|
56.39 |
% |
|
|
1,171,473 |
|
|
|
54.90 |
% |
|
|
1,133,882 |
|
|
|
55.40 |
% |
|
|
1,168,844 |
|
|
|
56.66 |
% |
Certificates of deposit of $250K or more |
|
|
202,702 |
|
|
|
8.56 |
% |
|
|
194,462 |
|
|
|
8.56 |
% |
|
|
258,093 |
|
|
|
12.10 |
% |
|
|
202,500 |
|
|
|
9.89 |
% |
|
|
209,819 |
|
|
|
10.17 |
% |
Brokered certificates of deposit (1) |
|
|
144,569 |
|
|
|
6.11 |
% |
|
|
94,557 |
|
|
|
4.16 |
% |
|
|
54,553 |
|
|
|
2.56 |
% |
|
|
67,942 |
|
|
|
3.32 |
% |
|
|
67,952 |
|
|
|
3.29 |
% |
Listing service deposits (1) |
|
|
994 |
|
|
|
0.04 |
% |
|
|
994 |
|
|
|
0.04 |
% |
|
|
1,243 |
|
|
|
0.06 |
% |
|
|
4,150 |
|
|
|
0.20 |
% |
|
|
4,150 |
|
|
|
0.20 |
% |
All other certificates of deposit less than $250K |
|
|
492,729 |
|
|
|
20.81 |
% |
|
|
448,772 |
|
|
|
19.75 |
% |
|
|
407,421 |
|
|
|
19.09 |
% |
|
|
429,911 |
|
|
|
21.01 |
% |
|
|
419,721 |
|
|
|
20.34 |
% |
Total certificates of deposit |
|
|
840,994 |
|
|
|
35.52 |
% |
|
|
738,785 |
|
|
|
32.51 |
% |
|
|
721,310 |
|
|
|
33.81 |
% |
|
|
704,503 |
|
|
|
34.42 |
% |
|
|
701,642 |
|
|
|
34.00 |
% |
Total interest-bearing deposits |
|
|
2,122,848 |
|
|
|
89.66 |
% |
|
|
2,019,890 |
|
|
|
88.90 |
% |
|
|
1,892,783 |
|
|
|
88.71 |
% |
|
|
1,838,385 |
|
|
|
89.82 |
% |
|
|
1,870,486 |
|
|
|
90.66 |
% |
Total deposits |
|
$ |
2,367,708 |
|
|
|
100.00 |
% |
|
$ |
2,271,809 |
|
|
|
100.00 |
% |
|
$ |
2,133,795 |
|
|
|
100.00 |
% |
|
$ |
2,046,635 |
|
|
|
100.00 |
% |
|
$ |
2,063,081 |
|
|
|
100.00 |
% |
12
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
|
As of |
|
|||||||||||||||||
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||||
|
(Dollars in thousands) |
|
|||||||||||||||||
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1-4 family residential |
$ |
2,767 |
|
|
$ |
5,843 |
|
|
$ |
3,158 |
|
|
$ |
4,427 |
|
|
$ |
3,176 |
|
Multifamily residential |
|
11,100 |
|
|
|
12,133 |
|
|
|
9,228 |
|
|
|
13,112 |
|
|
|
14,202 |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and land |
|
4,100 |
|
|
|
5,040 |
|
|
|
7,061 |
|
|
|
8,247 |
|
|
|
8,907 |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business |
|
146 |
|
|
|
77 |
|
|
|
427 |
|
|
|
667 |
|
|
|
880 |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) |
$ |
18,113 |
|
|
$ |
23,093 |
|
|
$ |
19,874 |
|
|
$ |
26,453 |
|
|
$ |
27,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accruing modifications to borrowers experiencing financial difficulty (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1-4 family residential |
|
483 |
|
|
|
475 |
|
|
|
477 |
|
|
|
410 |
|
|
|
698 |
|
Total non-accruing modifications to borrowers experiencing financial difficulty (1) |
|
483 |
|
|
|
475 |
|
|
|
477 |
|
|
|
410 |
|
|
|
698 |
|
Total non-performing assets (2) |
$ |
18,596 |
|
|
$ |
23,568 |
|
|
$ |
20,351 |
|
|
$ |
26,863 |
|
|
$ |
27,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accruing modifications to borrowers experiencing financial difficulty (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1-4 family residential |
|
2,431 |
|
|
|
2,456 |
|
|
|
2,481 |
|
|
|
2,574 |
|
|
|
3,725 |
|
Nonresidential properties |
|
598 |
|
|
|
618 |
|
|
|
613 |
|
|
|
621 |
|
|
|
629 |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business |
|
168 |
|
|
|
175 |
|
|
|
185 |
|
|
|
190 |
|
|
|
196 |
|
Total accruing modifications to borrowers experiencing financial difficulty (1) |
$ |
3,197 |
|
|
$ |
3,249 |
|
|
$ |
3,279 |
|
|
$ |
3,385 |
|
|
$ |
4,550 |
|
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) |
$ |
21,793 |
|
|
$ |
26,817 |
|
|
$ |
23,630 |
|
|
$ |
30,248 |
|
|
$ |
32,413 |
|
Total non-performing assets to total assets |
|
0.50 |
% |
|
|
0.67 |
% |
|
|
0.62 |
% |
|
|
0.83 |
% |
|
|
0.88 |
% |
(1) Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
(2) Includes nonperforming mortgage loans held for sale.
13
Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets
|
For the Three Months Ended September 30, |
||||||||||||||||||
|
2026 |
|
2025 |
||||||||||||||||
|
Average |
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
||||
|
Outstanding |
|
|
|
|
|
Average |
|
Outstanding |
|
|
|
|
|
Average |
||||
|
Balance |
|
|
Interest |
|
|
Yield/Rate (1) |
|
Balance |
|
|
Interest |
|
|
Yield/Rate (1) |
||||
|
(Dollars in thousands) |
||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans (2) |
$ |
3,025,085 |
|
|
$ |
52,910 |
|
|
6.94% |
|
$ |
2,499,268 |
|
|
$ |
41,486 |
|
|
6.59% |
Securities (3) |
|
332,919 |
|
|
|
3,067 |
|
|
3.65% |
|
|
418,513 |
|
|
|
3,913 |
|
|
3.71% |
Other (4) |
|
133,827 |
|
|
|
1,527 |
|
|
4.53% |
|
|
119,262 |
|
|
|
1,448 |
|
|
4.82% |
Total interest-earning assets |
|
3,491,831 |
|
|
|
57,504 |
|
|
6.53% |
|
|
3,037,043 |
|
|
|
46,847 |
|
|
6.12% |
Non-interest-earning assets |
|
97,667 |
|
|
|
|
|
|
|
|
96,095 |
|
|
|
|
|
|
||
Total assets |
$ |
3,589,498 |
|
|
|
|
|
|
|
$ |
3,133,138 |
|
|
|
|
|
|
||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NOW/IOLA |
$ |
76,801 |
|
|
$ |
145 |
|
|
0.75% |
|
$ |
78,526 |
|
|
$ |
137 |
|
|
0.69% |
Money market |
|
1,109,784 |
|
|
|
10,254 |
|
|
3.67% |
|
|
958,277 |
|
|
|
9,831 |
|
|
4.07% |
Savings |
|
119,109 |
|
|
|
31 |
|
|
0.10% |
|
|
119,159 |
|
|
|
28 |
|
|
0.09% |
Certificates of deposit |
|
794,477 |
|
|
|
7,313 |
|
|
3.65% |
|
|
698,019 |
|
|
|
6,553 |
|
|
3.72% |
Total deposits |
|
2,100,171 |
|
|
|
17,743 |
|
|
3.35% |
|
|
1,853,981 |
|
|
|
16,549 |
|
|
3.54% |
Borrowings |
|
624,361 |
|
|
|
5,772 |
|
|
3.67% |
|
|
521,100 |
|
|
|
5,050 |
|
|
3.84% |
Total interest-bearing liabilities |
|
2,724,532 |
|
|
|
23,515 |
|
|
3.42% |
|
|
2,375,081 |
|
|
|
21,599 |
|
|
3.61% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-interest-bearing demand |
|
251,823 |
|
|
|
— |
|
|
|
|
|
199,922 |
|
|
|
— |
|
|
|
Other non-interest-bearing liabilities |
|
43,730 |
|
|
|
— |
|
|
|
|
|
31,406 |
|
|
|
— |
|
|
|
Total non-interest-bearing liabilities |
|
295,553 |
|
|
|
— |
|
|
|
|
|
231,328 |
|
|
|
— |
|
|
|
Total liabilities |
|
3,020,085 |
|
|
|
23,515 |
|
|
|
|
|
2,606,409 |
|
|
|
21,599 |
|
|
|
Total equity |
|
569,413 |
|
|
|
|
|
|
|
|
526,729 |
|
|
|
|
|
|
||
Total liabilities and total equity |
$ |
3,589,498 |
|
|
|
|
|
3.42% |
|
$ |
3,133,138 |
|
|
|
|
|
3.61% |
||
Net interest income |
|
|
|
$ |
33,989 |
|
|
|
|
|
|
|
$ |
25,248 |
|
|
|
||
Net interest rate spread (5) |
|
|
|
|
|
|
3.11% |
|
|
|
|
|
|
|
2.51% |
||||
Net interest-earning assets (6) |
$ |
767,299 |
|
|
|
|
|
|
|
$ |
661,962 |
|
|
|
|
|
|
||
Net interest margin (7) |
|
|
|
|
|
|
3.86% |
|
|
|
|
|
|
|
3.30% |
||||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
|
128.16% |
|
|
|
|
|
|
|
127.87% |
||||
14
Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets
|
For the Nine Months Ended September 30, |
|
|||||||||||||||||||||
|
2026 |
|
|
2025 |
|
||||||||||||||||||
|
Average |
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
||||||
|
Outstanding |
|
|
|
|
|
Average |
|
|
Outstanding |
|
|
|
|
|
Average |
|
||||||
|
Balance |
|
|
Interest |
|
|
Yield/Rate (1) |
|
|
Balance |
|
|
Interest |
|
|
Yield/Rate (1) |
|
||||||
|
(Dollars in thousands) |
|
|||||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (2) |
$ |
2,836,725 |
|
|
$ |
143,727 |
|
|
|
6.77 |
% |
|
$ |
2,439,280 |
|
|
$ |
118,913 |
|
|
|
6.52 |
% |
Securities (3) |
|
346,223 |
|
|
|
9,474 |
|
|
|
3.66 |
% |
|
|
445,130 |
|
|
|
12,680 |
|
|
|
3.81 |
% |
Other (4) |
|
136,792 |
|
|
|
4,617 |
|
|
|
4.51 |
% |
|
|
135,600 |
|
|
|
5,111 |
|
|
|
5.04 |
% |
Total interest-earning assets |
|
3,319,740 |
|
|
|
157,818 |
|
|
|
6.36 |
% |
|
|
3,020,010 |
|
|
|
136,704 |
|
|
|
6.05 |
% |
Non-interest-earning assets |
|
96,477 |
|
|
|
|
|
|
|
|
|
103,059 |
|
|
|
|
|
|
|
||||
Total assets |
$ |
3,416,217 |
|
|
|
|
|
|
|
|
$ |
3,123,069 |
|
|
|
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW/IOLA |
$ |
76,737 |
|
|
$ |
397 |
|
|
|
0.69 |
% |
|
$ |
73,034 |
|
|
$ |
352 |
|
|
|
0.64 |
% |
Money market |
|
1,029,534 |
|
|
|
28,120 |
|
|
|
3.65 |
% |
|
|
884,115 |
|
|
|
27,172 |
|
|
|
4.11 |
% |
Savings |
|
120,029 |
|
|
|
87 |
|
|
|
0.10 |
% |
|
|
118,656 |
|
|
|
84 |
|
|
|
0.09 |
% |
Certificates of deposit |
|
752,638 |
|
|
|
20,513 |
|
|
|
3.64 |
% |
|
|
754,531 |
|
|
|
21,689 |
|
|
|
3.84 |
% |
Total deposits |
|
1,978,938 |
|
|
|
49,117 |
|
|
|
3.32 |
% |
|
|
1,830,336 |
|
|
|
49,297 |
|
|
|
3.60 |
% |
Borrowings |
|
594,800 |
|
|
|
16,425 |
|
|
|
3.69 |
% |
|
|
536,851 |
|
|
|
15,530 |
|
|
|
3.87 |
% |
Total interest-bearing liabilities |
|
2,573,738 |
|
|
|
65,542 |
|
|
|
3.40 |
% |
|
|
2,367,187 |
|
|
|
64,827 |
|
|
|
3.66 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest-bearing demand |
|
239,239 |
|
|
|
— |
|
|
|
|
|
|
199,978 |
|
|
|
— |
|
|
|
|
||
Other non-interest-bearing liabilities |
|
44,440 |
|
|
|
— |
|
|
|
|
|
|
37,206 |
|
|
|
— |
|
|
|
|
||
Total non-interest-bearing liabilities |
|
283,679 |
|
|
|
— |
|
|
|
|
|
|
237,184 |
|
|
|
— |
|
|
|
|
||
Total liabilities |
|
2,857,417 |
|
|
|
65,542 |
|
|
|
|
|
|
2,604,371 |
|
|
|
64,827 |
|
|
|
|
||
Total equity |
|
558,800 |
|
|
|
|
|
|
|
|
|
518,698 |
|
|
|
|
|
|
|
||||
Total liabilities and total equity |
$ |
3,416,217 |
|
|
|
|
|
|
3.40 |
% |
|
$ |
3,123,069 |
|
|
|
|
|
|
3.66 |
% |
||
Net interest income |
|
|
|
$ |
92,276 |
|
|
|
|
|
|
|
|
$ |
71,877 |
|
|
|
|
||||
Net interest rate spread (5) |
|
|
|
|
|
|
|
2.96 |
% |
|
|
|
|
|
|
|
|
2.39 |
% |
||||
Net interest-earning assets (6) |
$ |
746,002 |
|
|
|
|
|
|
|
|
$ |
652,823 |
|
|
|
|
|
|
|
||||
Net interest margin (7) |
|
|
|
|
|
|
|
3.72 |
% |
|
|
|
|
|
|
|
|
3.18 |
% |
||||
Average interest-earning assets to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
interest-bearing liabilities |
|
|
|
|
|
|
|
128.99 |
% |
|
|
|
|
|
|
|
|
127.58 |
% |
||||
15
Ponce Financial Group, Inc. and Subsidiaries
Other Data
|
As of |
|
|||||||||||||||||
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||||
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common shares issued |
|
24,886,711 |
|
|
|
24,886,711 |
|
|
|
24,886,711 |
|
|
|
24,886,711 |
|
|
|
24,886,711 |
|
Less treasury shares |
|
698,810 |
|
|
|
698,810 |
|
|
|
698,810 |
|
|
|
750,785 |
|
|
|
885,586 |
|
Common shares outstanding at end of period |
|
24,187,901 |
|
|
|
24,187,901 |
|
|
|
24,187,901 |
|
|
|
24,135,926 |
|
|
|
24,001,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Book value per common share |
$ |
14.60 |
|
|
$ |
13.89 |
|
|
$ |
13.49 |
|
|
$ |
13.12 |
|
|
$ |
12.70 |
|
Tangible book value per common share (1) |
$ |
14.60 |
|
|
$ |
13.89 |
|
|
$ |
13.49 |
|
|
$ |
13.12 |
|
|
$ |
12.70 |
|
16
President & Chief Executive Officer Carlos P. Naudon Executive Vice President & Chief Financial Officer Sergio J. Vaccaro Exhibit 99.2 Presentation of
Cautionary Statements Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank, N.A. operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank, N.A.’s loans; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the global economy, including negative changes that may arise from armed conflict and geopolitical instability; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank, N.A.’s market area; Ponce Bank, N.A.’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation. Forward Looking Statements The market and industry data used throughout this presentation is based, in part, on third-party sources, as indicated. Although management believes these third-party sources are reliable, they have not independently verified the information and cannot guarantee its accuracy and completeness. Market and Industry Data Copyright © 2026. All Right Reserved
Corporate Headquarters and Office Location Branch Locations On October 10, 2025, the Company wholly-owned subsidiary, Ponce Bank (formerly a federally chartered stock savings association), has completed its previously announced conversion to a national bank and commenced operations as Ponce Bank, National Association (the “Bank”). In connection with the conversion of the 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. Aim to provide long-term value to stakeholders by executing a safe and sound business strategy that produces increasing value. Number of full-time equivalent employees as of September 30th, 2026, was 236 equating to $15.6 million in assets per employee. The Company provides a full range of financial services in a community-focused manner. Ticker NASDAQ: PDLB Established 1960 Headquarters Bronx, NY Branches 13 full-service branches, 3 loan production / representative offices and 1 ATM center Total Assets $3.69 billion (as of 9/30/26) Total Loans $3.08 billion (as of 9/30/26) Total Deposits $2.37 billion (as of 9/30/26) Earnings Per Share (Basic) $0.78 (for three months ended 9/30/26) Market Cap TBV Per Common Share* $485 million (as of 9/30/26) $14.60 (as of 9/30/26) Copyright © 2026. All Right Reserved (*) TBV Per Common Share is a Non-GAAP financial measure. Non-GAAP financial measures are not a substitute for GAAP financial measures. See the appendix of this presentation for a reconciliation to the most directly comparable GAAP financial measure.
Franchise Evolution 2015 - 2022 Carlos P. Naudon named President in 2015; CEO in 2018 Certified SBA lender Continued to remain focused on residential and commercial real estate Optimized real estate footprint by improving loan efficiency Certification as an MDI & CDFI Grew assets from $700 million to $2+ billion Path to Conversion 2022 - Present Converted from Mutual Holding Company on January 27, 2022 PFG became a Bank Holding Company and a Financial Holding Company and Ponce Bank became a National Bank Established a robust capital base to continue executing on strategic initiatives Continued focusing on residential and commercial lending with an emphasis on technological integration Received low-cost funding Preferred Stock in the amount of $225 million from the ECIP Public Ownership 1960 - 2015 Established 65-year-old institution focused on residential and nonresidential lending Headquartered in the Bronx, NY with branch presence in the Bronx, Brooklyn, Queens, New Jersey, and Manhattan Grew assets from de novo to $700 million Mutual Bank Copyright © 2026. All Right Reserved
PFG Executive Management Executive Chairman of the Board Steven A. Tsavaris Executive Vice President and Chief Lending Officer Ioannis Kouzilos Madeline V. Marquez President and Chief Executive Officer Carlos P. Naudon Executive Vice President and Chief Financial Officer Sergio J. Vaccaro Executive Vice President and Chief Operating Officer Luis G. Gonzalez Jr. Copyright © 2026. All Right Reserved 50+ years of experience Former President and CEO of Ponce De Leon Federal Savings Bank Former Chairman and CEO of PDLB Community Bancorp 15+ years of experience Former VP of Credit Administration Experienced at various financial institutions 50+ years of experience Retired Attorney and CPA Former Acting CEO and Director of Open Solutions, Inc., a fintech public company 25+ years of experience Former CFO of Private Bank Americas at HSBC Former US Head of FP&A at HSBC Former CFO of Home Loans at Morgan Stanley 17+ years of experience Former Bank Examiner Former Acting Assistant Deputy Comptroller, OCC Executive Vice President and Chief External Affairs Officer Executive Vice President and Chief Human Resources Officer Melissa DeLeon 15+ years of experience Former SVP of Human Resources Driver of people strategy Led culture transformation Retail banking operations expertise Executive Vice President and Chief Banking Officer Betty Campiz 15+ years of experience Former SVP of Digital Banking Led Ponce’s digital transformation (Salesforce, nCino) Extensive retail banking and CX expertise 25+ years of experience Former SVP of SBA & CDFI Initiatives Former Vice President at Business Initiative Corporation of New York Former Managing Director at Brooklyn Economic Development Corp.
Highlights – nine months ended September 30, 2026 and 2025 Strong loan growth. Net loans receivable were $3.08 billion as of September 30, 2026, an increase of $591.1 million, or 23.7%, from September 30, 2025. Higher NIM and stable expenses YoY. Net interest margin at 3.72% for nine months ended September 30, 2026, an increase of 54bps from prior period. The non-interest expenses were $54.6 million for nine months ended September 30, 2026, an increase of $4.2 million from September 30, 2025. Strong deposit growth. Deposits were $2.37 billion as of September 30, 2026, an increase of $304.6 million, or 14.8%, from September 30, 2025. Increasing profitability. Net income available to common stockholders of $34.5 million, or $1.47 per diluted share for nine months ended September 30, 2026. Copyright © 2026. All Right Reserved Nine Months Highlight Overview YTD 2026 YTD 2025 Change % Net interest income $92.3M $71.9M 28.4% Net income available to common stockholders $34.5M $17.7M 94.8% Deposits $2.37B $2.06B 14.8% Net loans receivable $3.08B $2.49B 23.7% Earnings per diluted share $1.47 $0.77 90.9%
Our Vision Growing alongside fastest growing, best clients Reaching Capital Deployment Capabilities Qualify for ECIP disposition Grow core deposits, with an emphasis on cross-selling commercial customers, growing Ponce Direct, mission driven and specialty deposits Grow our loan portfolio Increase our utilization of technology Increase profitability and continue to manage expenses Robust capital position, inclusive of $225 million in ECIP funds provided by the U.S. Treasury Focused on growing loan book: Expanding CRE & Non-Residential Loans Stay with successful clients as they grow Low-Cost, Excess Capital - Ready to Deploy The Bank is designated as both a Community Development Financial Institution (CDFI) and a Minority Deposit Institution (MDI) MDI and CDFI Status; Mission Driven Business Model Aligns with ESG Completed the second-step in January 2022 Ability to return capital to shareholders – priorities De-Mutualization Opportunity The Company is well-positioned with a weighted average loan-to-value ratio of 53.9% as of September 30, 2026 Total CRE Loans comprise 452.0% of Risk Based Capital Financial Strength Strategies and Focus Growth Drivers Accelerating Loan Growth Through Deployment of Excess Capital CRE and Residential Markets – Single Family & Multi-family markets Net Interest Income Growth Upgrading electronic infrastructure Expanding digital banking services Creating greater resiliency, capacity, and redundancies Modernization Program Across Company Infrastructure Restructure/Refocus the retail business model Upgrade sales force Attract, develop and retain an engaged workforce Ensure risk management and controls are aligned with strategic priorities Manage credit risk to maintain a low level of nonperforming assets. Copyright © 2026. All Right Reserved 57% 123%
ECIP Disposition – Executed Agreement On December 20, 2024, PFG entered into an ECIP securities purchase option agreement with the US Department of the Treasury (Treasury), allowing repurchase at a future date, subject to compliance with certain qualifications Determination of sale price: based on the dividend discount model While there can be no assurance as to the final repurchase price, the price could be as low as 6.11% under the current guidelines, (assuming a dividend rate of 0.50%, RFR of 5.68% (20 Yr Treasury as of 9/30/26), Beta of 0.50 and ERP of 5.00% and satisfaction of the deep impact condition) Impact of ~8.73 $ per share, under the above assumptions, $225 million ECIP, 24.2 million common shares outstanding The repurchase date could occur as soon as 4Q 2026, assuming satisfaction of the necessary conditions Status on progress: The U.S. Department of the Treasury has formally confirmed that the Company met this deep impact threshold. Consequently, we are actively collaborating with Treasury and its legal counsel to finalize the next steps for the Preferred Stock disposition. Copyright © 2026. All Right Reserved
Community Development Financial Institution The CDFI Program offers both Financial Assistance and Technical Assistance awards to CDFIs. These competitive awards support and enhance the ability of the Company to meet the needs of the communities they serve. Financial Assistance awards are made in the form of loans, grants, equity investments, and deposits, which CDFIs are required to match dollar-for-dollar with non-federal funds. This requirement enables the Company to multiply the impact of federal investment to meet the demand for affordable financial products in economically distressed communities. Technical Assistance grants are offered to CDFIs and Certifiable CDFIs to build their organizational capacity. Out of the 20 top CDFI Banks (in Total Assets): in housing focus in DLI-HMDA (% of housing lending in LMI communities) in total loans in total assets As a CDFI, the Company has received over $5 million in federal grants As of June 30, 2025, there were approximately 1,400 CDFI’s operating nationwide, but fewer than 200 are banks, and the Bank ranks amongst the largest The CDFI designation qualifies the Company for grants and capital opportunities such as the Emergency Capital Investment Program (ECIP), which the Company benefitted from in the form of a $225 million investment from the U.S. Treasury for Senior Non-Cumulative Perpetual Preferred Stock; only CDFIs and MDIs were able to participate in this program – it comes at no cost (to capital) for the first two years and includes rate reduction incentives after that with a cap of 2.00% Ponce Bank has won awards and mandates for community development and ranks as one of the largest and most housing focused CDFIs in the country. Rankings as of 2Q 2025 5th 6th Copyright © 2026. All Right Reserved
Minority Depository Institution One of 32 banks in the country designated as both an MDI and a CDFI. As of September 30, 2025, the FDIC recognized 156 MDIs across the United States and its territories, with collective assets of approximately $385 billion. As an MDI the Bank can provide financial services to and for underserved communities as designated by the federal government including African, Asian, Hispanic, and Native Americans. MDI designation allows the Bank to provide many benefits to low-to-moderate income communities, including access to credit, values-driven banking, international languages and locations, financial education, and community-specific services. Out of all the MDI Banks in Assets, the Bank ranks: Rankings as of 3Q 2025 The Bank is designated an MDI, classified under the Federal Deposit Insurance Corporation (FDIC). The FDIC defines an MDI as a federally insured depository institution for which (1) 51% or more of the voting stock is owned by minority individuals; or (2) majority of the board of directors is a minority and the community that the institution serves is predominantly minority. in total assets New York in total assets out of 156 MDIs 3rd 22nd Copyright © 2026. All Right Reserved
Appendix
Total Assets Total Deposits Financial Highlights (in thousands) Net Loans Revenue (NII + Non-interest income) & Non-interest expense Copyright © 2026. All Right Reserved
Appx. 1 Portfolio Composition 13.3% 32.6% 17.9% 33.8% 1-4 Family Residential Construction and Land Multifamily Residential Nonresidential Property $ 2,286,599 $ 2,599,258 $ 3,081,101 $ 1,525,668 $ 1,895,886 Loan Portfolio Growth (in thousands) Net Loans Receivable Loans Portfolio As of September 30, 2026 Other Copyright © 2026. All Right Reserved
Total Securities - as of September 30, 2026 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Securities: Corporate Bonds $13,500 - $(367) $13,133 Mortgage-Backed Securities: Collateralized Mortgage Obligations¹ 28,421 - (5,455) 22,966 FHLMC Certificates 7,103 - (961) 6,142 FNMA Certificates 46,826 - (9,664) 37,162 GNMA Certificates 71 1 - 72 Total available-for-sale securities $95,921 $1 $(16,447) $79,475 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-Maturity Securities: Corporate Bonds $7,500 $9 $(132) $7,377 Mortgage-Backed Securities: Collateralized Mortgage Obligations¹ 140,748 - (7,182) 133,566 FHLMC Certificates 2,901 44 (160) 2,785 FNMA Certificates 80,536 - (5,158) 75,378 SBA Certificates 9,697 54 - 9,751 Allowance for Credit Losses (206) - - - Total available-for-sale securities $241,176 $107 $(12,632) $228,857 (1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities. (in thousand) (in thousand) Copyright © 2026. All Right Reserved
Actual Amount Ratio For Capital Adequacy Purposes Amount Ratio To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio December 31, 2025 (in thousands) 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% Actual Amount Ratio For Capital Adequacy Purposes Amount Ratio To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio September 30, 2026 (in thousands) Ponce Financial Group, Inc. Total Capital to Risk-Weighted Assets $ 624,205 18.66% $ 267,677 8.00% $ 334,596 10.00% Tier 1 Capital to Risk-Weighted Assets 590,817 17.66% 200,758 6.00% 267,677 8.00% Common Equity Tier 1 Capital Ratio 365,817 10.93% 150,568 4.50% 217,487 6.50% Tier 1 Capital to Total Assets 590,817 16.46% 143,576 4.00% 179,471 5.00% Ponce Bank Total Capital to Risk-Weighted Assets $ 566,305 16.98% $ 266,781 8.00% $ 333,477 10.00% Tier 1 Capital to Risk-Weighted Assets 532,917 15.98% 200,086 6.00% 266,781 8.00% Common Equity Tier 1 Capital Ratio 532,917 15.98% 150,064 4.50% 216,760 6.50% Tier 1 Capital to Total Assets 532,917 14.85% 143,571 4.00% 179,464 5.00% Regulatory Capital Ratios Copyright © 2026. All Right Reserved
Reconciliation to GAAP September 30, 2026 Common shares issued 24,886,711 Less treasury shares 698,810 Common shares outstanding at end of period 24,187,901 Total Equity $ 578,258,858 Common shares outstanding 24,187,901 Total equity per share - GAAP $ 23.91 Total Equity $ 578,258,858 Less Preferred Stock $ (225,000,000) Tangible book value $ 353,258,858 Tangible book value per common share -Non-GAAP $ 14.60 Copyright © 2026. All Right Reserved Tangible book value per common share is a non-GAAP financial measure and is calculated by dividing tangible common equity by common shares outstanding. Tangible common equity is defined as total shareholders’ equity less goodwill and other intangible assets, net of applicable deferred taxes. The Company believes that tangible book value per share is a useful measure for investors, regulators, and analysts because it reflects the Company’s capital position excluding the impact of goodwill and other intangible assets, which may not be realizable in a liquidation scenario. This measure is commonly used in the banking industry to assess financial condition and capital adequacy. Tangible book value per share should not be considered a substitute for book value per common share, which is calculated in accordance with GAAP, and the Company’s definition of tangible book value per share may differ from similarly titled measures used by other companies. During the periods presented, the Company did not make any adjustments for goodwill and other intangible assets, so tangible book value per common share is equal to the book value per common share as calculated in accordance with GAAP.
Community Sponsorships and Donations Includes Sponsorships and Donations by the Company and the Ponce De Leon Foundation Sponsorships & Scholarships Small Business Bootcamp (PB$BB) Over 173 grants to charitable causes since 2017 $3.6 million was given to Ponce Bank Branch communities focusing on youth services, education, housing, healthcare, social services, senior services, economic development, and the Arts Ponce De Leon Foundation Financial Mastery Workshops American Cancer Society Morris Heights Health Center Urban Youth Alliance Int Castle Hill Little League Southern Boulevard BID Phipps Neighborhood InHisName United YMCA of Greater NY Washington Heights BID Unique People Services Hostos Community College Foundation New Bronx Chamber of Commerce POINT Community Development Corp. Castle Hill BID Business Initiative Corporation Neighborhood SHOPP VIP Community Services Bronx Tourism Council NYS CDFI Coalition Part of the Solution, Inc Bronx Arts Ensemble Inc Bronx Overall Economic Development Corp Unique People Services Opportunities for a Better Tomorrow Union Settlement LSA Covid Relief Citivas LIFT Inc Hope Community AHRC Daniels Music Foundation NYC Hispanic Chamber Upper Manhattan Mental Health Center New Heights Youth Inc Emma’s Torch LTD Comite Noviembre RAICES Spanish Speaking Elderly Council Braata Productions MyTime Inc Brooklyn Hospital Foundation Brooklyn Children’s Museum CommonPoint Queens Immaculate Conception Catholic Academy Hellenic Orthodox Community of Astoria Greater Jamaica Development Corp Queens Economic Development Corporation Andromeda Community Initiative Inc Palisades Emergency Residence Corp Jersey City Theatre Center Inc Queens Women's Chamber of Commerce Union City Music Project First Jamaica Community & Urban Development Corp Forest Hills Chambers of Commerce Greater NY Chamber of Commerce Sharing and Caring Inc Educational Video Center The Possibility Project Chamber Of Commerce of Washington Heights and Inwood in Manhattan & MANY MORE Save Latin America NY Women Chamber of Commerce Women for Afghan Women Copyright © 2026. All Right Reserved Total 259 Sponsorships Over $558,,000 contributed in the communities we serve 22 Scholarships awarded 37 volunteer events, 146 volunteers Series 1 total registered 245, with 179 participants, and 66 graduated Series 2 total registered 63, with 54 participants, and 41 graduated Series 3 total registered 35, with 32 participants, and 26 graduated First Time Homebuyers Program Non-Profit Grassroots Program PB$BB Program Protect Your Legacy Program 74 sessions, 1,487 participants
NASDAQ: PDLB Thank you.