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Ponce Financial Group, Inc. Reports Fourth Quarter 2024 Results

NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the fourth quarter of 2024.

Fourth Quarter 2024 Highlights (Compared to Prior Periods):

  • Net income available to common stockholders was $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024, as compared to net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024 and net income available to common stockholders of $0.5 million, or $0.02 per diluted share for the three months ended December 31, 2023. Total net income for the three months ended December 31, 2024 was $2.9 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended December 31, 2024.
  • Included in the $2.7 million of net income available to common stockholders for the fourth quarter of 2024 results is $42.9 million in interest and dividend income and $2.1 million in non-interest income, offset by $22.2 million in interest expense, $17.3 million in non-interest expense, $1.5 million in provision for income taxes. $1.1 million in provision for credit losses and $0.3 million in dividends on preferred shares.
  • Net interest income of $20.7 million for the fourth quarter of 2024 increased $1.7 million, or 8.97%, from the prior quarter and increased $3.5 million, or 20.54%, from the same quarter last year. 
  • Net interest margin was 2.80% for the fourth quarter of 2024, versus 2.65% for the prior quarter and 2.66% for the same quarter last year.

Full Year 2024 Highlights (Compared to 2023):

  • Net income available to common stockholders was $10.3 million, or $0.46 per diluted share for the year ended December 31, 2024, compared to net income available to common stockholders of $3.4 million, or $0.15 per diluted share for the year ended December 31, 2023. Total net income for the year ended December 31, 2024, prior to the payment of $0.6 million in dividends on preferred shares, was $11.0 million.
  • Net interest income for the year ended December 31, 2024 was $76.5 million, an increase of $11.2 million, or 17.18%, compared to $65.3 million for the year ended December 31, 2023.
  • Non-interest income for the year ended December 31, 2024 was $7.2 million, a decrease of $3.0 million, or 29.44%, from $10.2 million for the year ended December 31, 2023. The decrease was primarily driven by $4.2 million in grants that were received in the prior year.
  • Non-interest expense for the year ended December 31, 2024 was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023.
  • Cash and equivalents were $139.8 million as of December 31, 2024, an increase of $0.6 million, or 0.47%, from $139.2 million as of December 31, 2023.
  • Securities totaled $472.9 million as of December 31, 2024, a decrease of $108.7 million, or 18.70%, from $581.7 million as of December 31, 2023 primarily due to regular principal payments, the maturity of one available-for-sale security in the amount of $4.0 million and one held-to-maturity security in the amount of $25.0 million and the call of one held-to-maturity security in the amount of $25.0 million.
  • Net loans receivable were $2.29 billion as of December 31, 2024, an increase of $390.7 million, or 20.61%, from $1.90 billion as of December 31, 2023.
  • Deposits were $1.88 billion as of December 31, 2024, an increase of $377.2 million, or 25.02%, from $1.51 billion as of December 31, 2023.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated, “We are pleased with the progress we have made in 2024. We executed an agreement with the U.S. Treasury that gives us the option, upon achievement of certain conditions, to buy back the ECIP preferred shares we previously issued at favorable prices, we launched our PonceDirect digital bank and gained significant traction with SBA loans. Our levels of liquidity and capital remain strong, while our loans grew by 20.61% and deposits by 25.02%. We have seen consistent profitability over the past several quarters as we continue to see increases both in net interest income as well as net interest margin, while expenses are down year on year, reflecting both reduced development and continued adoption of our new technology. We remain committed to the communities we serve and our status as a Minority Depository Institution (“MDI”)/Community Development Financial Institution (“CDFI”), and we continue to invest in our people and in technology to improve our efficiency.” 

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added, “We are working diligently to ensure that we will meet the conditions necessary to allow us to repurchase our ECIP preferred stock in the future. The agreement we executed with the U.S. Treasury in December 2024, allows for a repurchase of the ECIP preferred stock once we have achieved Deep Impact Lending, as defined under the ECIP program, that is at least 60% of our total originations on average over 16 consecutive quarters, provided that we also meet certain other conditions at the time we exercise the repurchase option. As of December 31, 2024, our Deep Impact Lending over the last 10 consecutive quarters stands at 79%, well above the threshold. Also, from second quarter of 2024 to fourth quarter of 2024, we have originated $514 million of Deep Impact Lending as well as $54 million of qualified lending which represents 383% of our base, which period, together with the first quarter of 2025, will determine the rate of dividends payable on the ECIP preferred stock from the third quarter of 2025 to the second quarter of 2026. With one quarter to go, we are confident that we will get to over 400% of our base and ensure another year of preferred dividends of 0.50%, which is the lowest dividend rate.” 

Selected performance metrics are as follows (refer to “Key Metrics” for additional information):

    At or for the Three Months Ended  
    December 31,     September 30,     June 30,     March 31,     December 31,  
Performance Ratios (Annualized):   2024     2024     2024     2024     2023  
Return on average assets (1)     0.38 %     0.33 %     0.45 %     0.33 %     0.08 %
Return on average equity (1)     2.30 %     1.93 %     2.59 %     1.97 %     0.42 %
Net interest rate spread (1) (2)     1.98 %     1.77 %     1.72 %     1.82 %     1.74 %
Net interest margin (1) (3)     2.80 %     2.65 %     2.62 %     2.71 %     2.66 %
Non-interest expense to average assets (1)     2.25 %     2.19 %     2.28 %     2.35 %     2.66 %
Efficiency ratio (4)     75.63 %     80.87 %     80.09 %     82.56 %     96.83 %
Average interest-earning assets to average interest- bearing liabilities     127.60 %     128.35 %     129.73 %     129.69 %     133.50 %
Average equity to average assets     16.59 %     16.97 %     17.41 %     17.00 %     18.25 %
                                         

    At or for the Three Months Ended  
    December 31,     September 30,     June 30,     March 31,     December 31,  
Capital Ratios (Annualized):   2024     2024     2024     2024     2023  
Total capital to risk-weighted assets (Bank only)     21.47 %     21.61 %     22.47 %     22.79 %     23.30 %
Tier 1 capital to risk-weighted assets (Bank only)     20.40 %     20.45 %     21.24 %     21.54 %     22.05 %
Common equity Tier 1 capital to risk-weighted assets (Bank only)     20.40 %     20.45 %     21.24 %     21.54 %     22.05 %
Tier 1 capital to average assets (Bank only)     15.81 %     16.19 %     16.70 %     16.26 %     17.49 %

    At or for the Three Months Ended  
    December 31,     September 30,     June 30,     March 31,     December 31,  
Asset Quality Ratios (Annualized):   2024     2024     2024     2024     2023  
Allowance for loan losses as a percentage of total loans     0.97 %     1.09 %     1.18 %     1.23 %     1.36 %
Allowance for loan losses as a percentage of nonperforming loans     82.29 %     139.52 %     130.28 %     140.90 %     152.99 %
Net (charge-offs) recoveries to average outstanding loans (1)     (0.45 %)     (0.17 %)     (0.10 %)     (0.25 %)     (0.24 %)
Non-performing loans as a percentage of total gross loans     1.18 %     0.78 %     0.89 %     0.87 %     0.89 %
Non-performing loans as a percentage of total assets     0.90 %     0.57 %     0.65 %     0.62 %     0.62 %
Total non-performing assets as a percentage of total assets     0.90 %     0.57 %     0.65 %     0.62 %     0.62 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)     1.06 %     0.73 %     0.82 %     0.79 %     0.81 %

  (1) Annualized where appropriate.
  (2) 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.
  (3) Net interest margin represents net interest income divided by average total interest-earning assets.
  (4) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
  (5) 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.
     

Summary of Results of Operations

Net income for the three months ended December 31, 2024 was $2.9 million compared to net income of $2.4 million for the three months ended September 30, 2024 and net income of $0.5 million for the three months ended December 31, 2023.

The $0.5 million increase of net income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was attributed mainly to increases of $1.7 million in net interest income and $1.0 million in non-interest income, partially offset by increases of $1.0 million in non-interest expense, $0.9 million in provision for income taxes and $0.3 million in provision for credit losses.

The $2.4 million increase of net income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely due to increases of $3.5 million in net interest income and $0.9 million in non-interest income and a decrease of $0.5 million in non-interest expense, partially offset by increases of $1.5 million in provision for credit losses and $1.1 million in provision for income taxes.

Net income for the year ended December 31, 2024 was $11.0 million compared to a net income of $3.4 million for the year ended December 31, 2023. The $7.6 million increase in net income was attributable to an increase of $11.2 million in net interest income and
a decrease of $1.9 million in non-interest expense, partially offset by a decrease of $2.9 million in non-interest income and increases of $2.2 million in provision for income taxes and $0.4 million in provision for credit losses.

Net Interest Income and Net Margin

Net interest income for the three months ended December 31, 2024, increased $1.7 million, or 8.97%, to $20.7 million compared to $19.0 million for the three months ended September 30, 2024 and increased $3.5 million, or 20.54%, compared to $17.2 million for the three months ended December 31, 2023.

Net interest income for the year ended December 31, 2024, increased $11.2 million, or 17.18%, to $76.5 million, compared to $65.3 million for the year ended December 31, 2023. The $11.2 million increase in net interest income was attributable to an increase of $36.8 million in total interest and dividend income, offset by an increase of $25.6 million in total interest expense.

For the year ended December 31, 2024, provision for credit losses amounted to $1.3 million, consisting of a provision for credit losses on loans in the amount of $1.5 million and a benefit on credit losses on held-to-maturity securities in the amount of $0.2 million.

Net interest margin was 2.80% for the three months ended December 31, 2024 compared to 2.65% for the prior quarter, an increase of 15bps and 2.66% for the same period last year, an increase of 14bps.

Net interest margin was 2.70% for the year ended December 31, 2024 compared to 2.66% for the year ended December 31, 2023, an increase of 4bps.

Non-interest Income

Non-interest income for the three months ended December 31, 2024, was $2.1 million, an increase of $0.9 million, or 82.19%, compared to $1.2 million for the three months ended September 30, 2024 and an increase of $0.8 million, or 63.19%, compared to $1.3 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was largely attributable to increases of $0.5 million in other non-interest income, $0.2 million in late and prepayment charges and $0.1 million in income on sale of SBA loans.

The $0.8 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely attributable to increases of $1.1 million in other non-interest income and $0.1 million in income on sale of SBA loans, partially offset by a decrease of $0.4 million in grant income received in the fourth quarter of 2023.

Non-interest income for the year ended December 31, 2024, was $7.2 million, a decrease of $3.0 million, or 29.44%, compared to $10.2 million for the year ended December 31, 2023. The $3.0 million decrease in non-interest income was largely attributable to $4.2 million related to grants received in 2023 and a decrease of $1.2 million in late and prepayment charges, partially offset by increases of $1.8 million in other non-interest income, $0.5 million in income on sale of mortgage loans and $0.1 million in income on sale of SBA loans.

Non-interest Expense

Non-interest expense for the three months ended December 31, 2024, was $17.3 million, an increase of $0.9 million, or 5.82%, compared to $16.3 million for the three months ended September 30, 2024 and a decrease of $0.6 million, or 3.54%, compared to $17.9 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest expense from the three months ended September 30, 2024 was mainly attributable to increases of $0.4 million in professional fees, $0.2 million in other operating expense, $0.1 million in marketing and promotional expenses, $0.1 million in office supplies, telephone and postage and $0.1 million in occupancy and equipment.

The $0.6 million decrease in non-interest expense from the three months ended December 31, 2023 was mainly attributable to decreases of $0.6 million in provision for contingencies, $0.6 million in compensation and benefits and $0.3 million in professional fees, partially offset by increases of $0.3 million in other operating expense, $0.2 million in occupancy and equipment, $0.1 million in marketing and promotional expenses and $0.1 million in direct loan expenses.

Non-interest expense for the year ended December 31, 2024, was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023. The $2.0 million decrease in non-interest expense from the year ended December 31, 2023 was mainly attributable to decreases of $3.1 million in provision for contingencies, $0.9 million in professional fees, $0.7 million in data processing expenses, $0.5 million in office supplies, telephone and postage, partially offset by a decrease in microloans recoveries of $1.3 million and increases of $0.9 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.2 million in compensation and benefits.

Balance Sheet Summary

Total assets increased $289.2 million, or 10.51%, to $3.04 billion as of December 31, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $390.7 million in net loans receivable, $9.8 million in Federal Home Loan Bank of New York stock, $0.8 million in mortgage loans held for sale, $0.7 million in premises and equipment and $0.6 million in cash and cash equivalents, partially offset by decreases of $93.8 million in held-to-maturity securities, $14.9 million in available-for-sale securities, $2.3 million in deferred tax assets and $2.2 million in right of use assets.

Total liabilities increased $275.1 million, or 12.18%, to $2.53 billion as of December 31, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $377.2 million in deposits, partially offset by decreases of $88.3 million in borrowings, $8.3 million in accrued interest payable, $3.1 million in other liabilities, $2.0 million in operating lease liabilities and $0.4 million in advance payments by borrowers for taxes.

Total stockholders’ equity increased $14.1 million, or 2.87%, to $505.5 million as of December 31, 2024, from $491.4 million as of December 31, 2023. The $14.1 million increase in stockholders’ equity was largely attributable to $11.0 million in net income, $2.1 million impact to additional paid in capital as a result of share-based compensation and $1.4 million from release of ESOP shares and $0.3 million in other comprehensive income, offset by $0.6 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’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 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, and Federal Home Loan Bank stock.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’s loans; 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’s market area; Ponce Bank’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)

                             
  As of  
  December 31,     September 30,     June 30,     March 31,     December 31,  
  2024     2024     2024     2024     2023  
ASSETS                            
Cash and due from banks:                            
Cash $ 35,478     $ 32,061     $ 23,128     $ 29,972     $ 28,930  
Interest-bearing deposits   104,361       123,751       80,038       104,752       110,260  
Total cash and cash equivalents   139,839       155,812       103,166       134,724       139,190  
Available-for-sale securities, at fair value   104,970       111,005       113,125       116,044       119,902  
Held-to-maturity securities, at amortized cost   367,938       403,736       442,113       452,955       461,748  
Placement with banks   249       249       249       249       249  
Mortgage loans held for sale, at fair value   10,736       9,566       37,764       7,860       9,980  
Loans receivable, net   2,286,599       2,180,331       2,022,173       1,981,428       1,895,886  
Accrued interest receivable   17,771       16,890       17,441       18,063       18,010  
Premises and equipment, net   16,794       16,843       16,976       17,396       16,053  
Right of use assets   29,093       29,785       30,349       31,021       31,272  
Federal Home Loan Bank of New York stock (FHLBNY), at cost   29,182       28,515       23,972       23,892       19,377  
Deferred tax assets   12,074       11,845       13,172       13,919       14,332  
Other assets   24,693       51,392       21,507       21,151       24,723  
Total assets $ 3,039,938     $ 3,015,969     $ 2,842,007     $ 2,818,702     $ 2,750,722  
LIABILITIES AND STOCKHOLDERS’ EQUITY                            
Liabilities:                            
Deposits $ 1,884,864     $ 1,870,323     $ 1,606,097     $ 1,585,784     $ 1,507,620  
Operating lease liabilities   30,696       31,343       31,861       32,486       32,684  
Accrued interest payable   3,712       2,918       6,820       4,218       11,965  
Advance payments by borrowers for taxes and insurance   10,349       13,733       10,838       13,245       10,778  
Borrowings   596,100       580,421       680,421       680,421       684,421  
Other liabilities   8,717       12,642       8,313       8,866       11,859  
Total liabilities   2,534,438       2,511,380       2,344,350       2,325,020       2,259,327  
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   (7,707 )     (9,445 )     (9,519 )     (9,702 )     (9,747 )
Additional paid-in-capital   207,319       208,478       207,934       207,584       207,106  
Retained earnings   107,754       105,103       102,951       99,834       97,420  
Accumulated other comprehensive loss   (15,297 )     (12,686 )     (16,557 )     (16,590 )     (15,649 )
Unearned compensation ─ ESOP   (11,818 )     (12,110 )     (12,401 )     (12,693 )     (12,984 )
Total stockholders’ equity   505,500       504,589       497,657       493,682       491,395  
Total liabilities and stockholders’ equity $ 3,039,938     $ 3,015,969     $ 2,842,007     $ 2,818,702     $ 2,750,722  
                                       

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

  Three Months Ended  
  December 31,     September 30,     June 30,     March 31,     December 31,  
  2024     2024     2024     2024     2023  
Interest and dividend income:                            
Interest on loans receivable $ 35,622     $ 32,945     $ 31,281     $ 30,664     $ 27,814  
Interest on deposits due from banks   1,783       2,430       1,542       2,911       990  
Interest and dividend on securities and FHLBNY stock   5,481       5,918       5,969       6,091       6,146  
Total interest and dividend income   42,886       41,293       38,792       39,666       34,950  
Interest expense:                            
Interest on certificates of deposit   8,104       6,926       6,358       6,380       5,103  
Interest on other deposits   8,476       8,519       7,389       6,540       5,706  
Interest on borrowings   5,576       6,825       7,141       7,923       6,944  
Total interest expense   22,156       22,270       20,888       20,843       17,753  
Net interest income   20,730       19,023       17,904       18,823       17,197  
Provision (benefit) for credit losses   1,099       789       (374 )     (180 )     (375 )
Net interest income after provision (benefit) for credit losses   19,631       18,234       18,278       19,003       17,572  
Non-interest income:                            
Service charges and fees   500       508       492       473       498  
Brokerage commissions   44             9       8       13  
Late and prepayment charges   318       77       426       359       365  
Income on sale of mortgage loans   254       218       274       302       244  
Income on sale of SBA loans   148                          
Grant income                           438  
Other   833       348       1,057       565       (273 )
Total non-interest income   2,097       1,151       2,258       1,707       1,285  
Non-interest expense:                            
Compensation and benefits   7,668       7,674       7,724       7,844       8,262  
Occupancy and equipment   3,863       3,786       3,564       3,667       3,686  
Data processing expenses   1,143       1,099       1,013       1,127       1,101  
Direct loan expenses   617       573       633       732       497  
(Benefit) provision for contingencies   (202 )     (252 )     (493 )     164       418  
Insurance and surety bond premiums   293       292       263       253       250  
Office supplies, telephone and postage   294       222       233       249       294  
Professional fees   1,703       1,351       1,369       1,723       2,040  
Microloans recoveries   (29 )     (54 )     (65 )     (53 )     (152 )
Marketing and promotional expenses   289       180       145       100       146  
Federal deposit insurance and regulatory assessment (1)   418       392       428       389       395  
Other operating expenses (1)   1,206       1,051       1,333       755       960  
Total non-interest expense   17,263       16,314       16,147       16,950       17,897  
Income before income taxes   4,465       3,071       4,389       3,760       960  
Provision for income taxes   1,532       638       1,197       1,346       442  
Net income $ 2,933     $ 2,433     $ 3,192     $ 2,414     $ 518  
Dividends on preferred shares   282       281       75              
Net income available to common stockholders $ 2,651     $ 2,152     $ 3,117     $ 2,414     $ 518  
Earnings per common share:                            
Basic $ 0.12     $ 0.10     $ 0.14     $ 0.11     $ 0.02  
Diluted $ 0.12     $ 0.10     $ 0.14     $ 0.11     $ 0.02  
Weighted average common shares outstanding:                            
Basic   22,528,160       22,446,009       22,409,803       22,353,492       22,224,945  
Diluted   22,807,644       22,612,028       22,419,309       22,366,728       22,406,102  

(1) For the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each periods.

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

    For the Years Ended December 31,  
    2024     2023     Variance $     Variance %  
Interest and dividend income:                        
Interest on loans receivable   $ 130,512     $ 95,805     $ 34,707       36.23 %
Interest on deposits due from banks     8,666       4,973       3,693       74.26 %
Interest and dividend on securities and FHLBNY stock     23,459       25,089       (1,630 )     (6.50 %)
Total interest and dividend income     162,637       125,867       36,770       29.21 %
Interest expense:                        
Interest on certificates of deposit     27,768       16,571       11,197       67.57 %
Interest on other deposits     30,924       18,570       12,354       66.53 %
Interest on borrowings     27,465       25,460       2,005       7.88 %
Total interest expense     86,157       60,601       25,556       42.17 %
Net interest income     76,480       65,266       11,214       17.18 %
Provision for credit losses     1,334       973       361       37.10 %
Net interest income after provision for credit losses     75,146       64,293       10,853       16.88 %
Non-interest income:                        
Service charges and fees     1,973       1,986       (13 )     (0.65 %)
Brokerage commissions     61       80       (19 )     (23.75 %)
Late and prepayment charges     1,180       2,365       (1,185 )     (50.11 %)
Income on sale of mortgage loans     1,048       598       450       75.25 %
Income on sale of SBA loans     148             148       100.00 %
Grant income           4,156       (4,156 )     (100.00 %)
Other     2,803       1,038       1,765       170.04 %
Total non-interest income     7,213       10,223       (3,010 )     (29.44 %)
Non-interest expense:                        
Compensation and benefits     30,910       30,699       211       0.69 %
Occupancy and equipment     14,880       14,568       312       2.14 %
Data processing expenses     4,382       5,083       (701 )     (13.79 %)
Direct loan expenses     2,555       1,623       932       57.42 %
(Benefit) provision for contingencies     (783 )     2,311       (3,094 )     (133.88 %)
Insurance and surety bond premiums     1,101       1,018       83       8.15 %
Office supplies, telephone and postage     998       1,483       (485 )     (32.70 %)
Professional fees     6,146       7,092       (946 )     (13.34 %)
Microloans recoveries     (201 )     (1,481 )     1,280       (86.43 %)
Marketing and promotional expenses     714       825       (111 )     (13.45 %)
Federal deposit insurance and regulatory assessments (1)     1,627       1,472       155       10.53 %
Other operating expenses (1)     4,345       3,970       375       9.45 %
Total non-interest expense     66,674       68,663       (1,989 )     (2.90 %)
Income before income taxes     15,685       5,853       9,832       167.98 %
Provision for income taxes     4,713       2,501       2,212       88.44 %
Net income   $ 10,972     $ 3,352     $ 7,620       227.33 %
Dividends on preferred shares     638             638       100.00 %
Net income available to common stockholders   $ 10,334     $ 3,352     $ 6,982       208.29 %
Earnings per common share:                        
Basic   $ 0.46     $ 0.15     $ 0.31       206.67 %
Diluted   $ 0.46     $ 0.15     $ 0.31       206.67 %
Weighted average common shares outstanding:                        
Basic     22,434,654       22,745,317       (310,663 )     (1.37 %)
Diluted     22,551,715       22,822,313       (270,598 )     (1.19 %)

(1) For the year ended December 31, 2023, $1.2 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.4 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.  

Ponce Financial Group, Inc. and Subsidiaries
Key Metrics

  At or for the Three Months Ended  
  December 31,     September 30,     June 30,     March 31,     December 31,  
  2024     2024     2024     2024     2023  
Performance Ratios:                            
Return on average assets (1)   0.38 %     0.33 %     0.45 %     0.33 %     0.08 %
Return on average equity (1)   2.30 %     1.93 %     2.59 %     1.97 %     0.42 %
Net interest rate spread (1) (2)   1.98 %     1.77 %     1.72 %     1.82 %     1.74 %
Net interest margin (1) (3)   2.80 %     2.65 %     2.62 %     2.71 %     2.66 %
Non-interest expense to average assets (1)   2.25 %     2.19 %     2.28 %     2.35 %     2.66 %
Efficiency ratio (4)   75.63 %     80.87 %     80.09 %     82.56 %     96.83 %
Average interest-earning assets to average interest- bearing liabilities   127.60 %     128.35 %     129.73 %     129.69 %     133.50 %
Average equity to average assets   16.59 %     16.97 %     17.41 %     17.00 %     18.25 %
Capital Ratios:                            
Total capital to risk-weighted assets (Bank only)   21.47 %     21.61 %     22.47 %     22.79 %     23.30 %
Tier 1 capital to risk-weighted assets (Bank only)   20.40 %     20.45 %     21.24 %     21.54 %     22.05 %
Common equity Tier 1 capital to risk-weighted assets (Bank only)   20.40 %     20.45 %     21.24 %     21.54 %     22.05 %
Tier 1 capital to average assets (Bank only)   15.81 %     16.19 %     16.70 %     16.26 %     17.49 %
Asset Quality Ratios:                            
Allowance for credit losses on loans as a percentage of total loans   0.97 %     1.09 %     1.18 %     1.23 %     1.36 %
Allowance for credit losses on loans as a percentage of nonperforming loans   82.29 %     139.52 %     130.28 %     140.90 %     152.99 %
Net (charge-offs) recoveries to average outstanding loans (1)   (0.45 %)     (0.17 %)     (0.10 %)     (0.25 %)     (0.24 %)
Non-performing loans as a percentage of total gross loans   1.18 %     0.78 %     0.89 %     0.87 %     0.89 %
Non-performing loans as a percentage of total assets   0.90 %     0.57 %     0.65 %     0.62 %     0.62 %
Total non-performing assets as a percentage of total assets   0.90 %     0.57 %     0.65 %     0.62 %     0.62 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)   1.06 %     0.73 %     0.82 %     0.79 %     0.81 %
Other:                            
Number of offices   19       19       18       18       18  
Number of full-time equivalent employees   218       228       227       233       237  
                             

  (1) Annualized where appropriate.
  (2) 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.
  (3) Net interest margin represents net interest income divided by average total interest-earning assets.
  (4) Efficiency ratio represents noninterest expense divided by the sum of net interest income and non-interest income.
  (5) 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.
     

Ponce Financial Group, Inc. and Subsidiaries
Securities Portfolio

    December 31, 2024     December 31, 2023  
          Gross     Gross                 Gross     Gross        
    Amortized     Unrealized     Unrealized           Amortized     Unrealized     Unrealized        
    Cost     Gains     Losses     Fair Value     Cost     Gains     Losses     Fair Value  
    (in thousands)     (in thousands)  
Available-for-Sale Securities:                                                
U.S. Government Bonds   $ 2,994     $     $ (121 )   $ 2,873     $ 2,990     $     $ (206 )   $ 2,784  
Corporate Bonds     21,762       10       (1,368 )     20,404       25,790             (2,122 )     23,668  
Mortgage-Backed Securities:                                                
Collateralized Mortgage Obligations (1)     34,526             (5,991 )     28,535       39,375             (6,227 )     33,148  
FHLMC Certificates     9,028             (1,366 )     7,662       10,163             (1,482 )     8,681  
FNMA Certificates     56,010             (10,602 )     45,408       61,359             (9,842 )     51,517  
GNMA Certificates     88                   88       104                   104  
Total available-for-sale securities   $ 124,408     $ 10     $ (19,448 )   $ 104,970     $ 139,781     $     $ (19,879 )   $ 119,902  
                                                 
Held-to-Maturity Securities:                                                
U.S. Agency Bonds   $ 25,000     $     $ (40 )   $ 24,960     $ 25,000     $     $ (181 )   $ 24,819  
Corporate Bonds     32,500       12       (535 )     31,977       82,500             (2,691 )     79,809  
Mortgage-Backed Securities:                                                
Collateralized Mortgage Obligations (1)     186,634             (7,052 )     179,582       212,093       104       (5,170 )     207,027  
FHLMC Certificates     3,229             (223 )     3,006       3,897             (244 )     3,653  
FNMA Certificates     105,417             (5,114 )     100,303       118,944             (4,088 )     114,856  
SBA Certificates     15,374       92             15,466       19,712       166             19,878  
Allowance for Credit Losses     (216 )                       (398 )                  
Total held-to-maturity securities   $ 367,938     $ 104     $ (12,964 )   $ 355,294     $ 461,748     $ 270     $ (12,374 )   $ 450,042  

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

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

    For the Years Ended December 31,  
    2024     2023  
Allowance for credit losses on securities at beginning of the period   $ 398     $  
CECL adoption           662  
Benefit for credit losses     (182 )     (264 )
Allowance for credit losses on securities at end of the period   $ 216     $ 398  
                 

Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio

    As of  
    December 31,     September 30,     June 30,     March 31,     December 31,  
    2024     2024     2024     2024     2023  
    Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent  
    (Dollars in thousands)  
Mortgage loans:                                                            
1-4 family residential                                                            
Investor Owned   $ 330,053       14.30 %   $ 332,380       15.09 %   $ 337,292       16.49 %   $ 339,331       16.92 %   $ 343,689       17.89 %
Owner-Occupied     142,363       6.17 %     145,065       6.59 %     147,485       7.21 %     150,842       7.52 %     152,311       7.93 %
Multifamily residential     670,159       29.04 %     678,029       30.78 %     545,323       26.66 %     545,825       27.22 %     550,559       28.65 %
Nonresidential properties     389,898       16.89 %     383,277       17.40 %     337,583       16.51 %     327,350       16.32 %     342,343       17.81 %
Construction and land     733,660       31.79 %     631,461       28.67 %     641,879       31.39 %     608,665       30.35 %     503,925       26.22 %
Total mortgage loans     2,266,133       98.19 %     2,170,212       98.53 %     2,009,562       98.26 %     1,972,013       98.33 %     1,892,827       98.50 %
Non-mortgage loans:                                                            
Business loans     40,849       1.77 %     28,499       1.29 %     30,222       1.48 %     26,664       1.33 %     19,779       1.03 %
Consumer loans (1)     1,038       0.04 %     4,021       0.18 %     5,305       0.26 %     6,741       0.34 %     8,966       0.47 %
Total non-mortgage loans     41,887       1.81 %     32,520       1.47 %     35,527       1.74 %     33,405       1.67 %     28,745       1.50 %
Total loans, gross     2,308,020       100.00 %     2,202,732       100.00 %     2,045,089       100.00 %     2,005,418       100.00 %     1,921,572       100.00 %
Net deferred loan origination costs     1,081             1,565             1,145             674             468        
Allowance for credit losses on loans     (22,502 )           (23,966 )           (24,061 )           (24,664 )           (26,154 )      
Loans, net   $ 2,286,599           $ 2,180,331           $ 2,022,173           $ 1,981,428           $ 1,895,886        

(1) As of September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, consumer loans include $3.0 million, $4.3 million, $5.7 million and $8.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.

Ponce Financial Group, Inc. and Subsidiaries
Microloans Exposure (previously originated by the Bank under its arrangement with Grain)

Total Microloans Exposure as of December 31, 2024  
(in thousands)  
Microloans Receivable from Grain      
Microloans originated – put back (inception-to-December 31, 2024)   $ 23,903  
Write-downs, net of recoveries (inception-to-date as of December 31, 2024)     (15,258 )
Cash receipts (inception-to-December 31, 2024)     (6,819 )
Grant/reserve     (1,826 )
Net receivable as of December 31, 2024   $  
Microloans Receivables from Borrowers      
Microloans receivable as of December 31, 2024   $  
Allowance for credit losses on loans as of December 31, 2024      
Microloans, net of allowance for credit losses on loans as of December 31, 2024   $  
Investments      
Investment in Grain   $ 1,000  
Investment write-off in Q3 2022     (1,000 )
Net investment as of December 31, 2024      
Total exposure related to microloans as of December 31, 2024 (1)   $  

(1) As of December 31, 2024, the remaining microloans were charged-off.

Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans

  For the Three Months Ended  
  December 31,     September 30,     June 30,     March 31,     December 31,  
  2024     2024     2024     2024     2023  
  (Dollars in thousands)  
Allowance for credit losses on loans at beginning of the period $ 23,966     $ 24,061     $ 24,664     $ 26,154     $ 27,414  
Provision (benefit) for credit losses on loans   1,090       801       (120 )     (255 )     (126 )
Charge-offs:                            
Mortgage loans:                            
1-4 family residences                            
Investor owned                            
Owner occupied                            
Multifamily residences                            
Nonresidential properties         (7 )                  
Construction and land                            
Non-mortgage loans:                            
Business   (232 )     (450 )           (52 )     (63 )
Consumer   (2,465 )     (634 )     (747 )     (1,302 )     (1,135 )
Total charge-offs   (2,697 )     (1,091 )     (747 )     (1,354 )     (1,198 )
Recoveries:                            
Non-mortgage loans:                            
Business         1       7       1        
Consumer   143       194       257       118       64  
Total recoveries   143       195       264       119       64  
Net (charge-offs) recoveries   (2,554 )     (896 )     (483 )     (1,235 )     (1,134 )
Allowance for credit losses on loans at end of the period $ 22,502     $ 23,966     $ 24,061     $ 24,664     $ 26,154  
                                       

Ponce Financial Group, Inc. and Subsidiaries
Deposits

    As of  
    December 31,     September 30,     June 30,     March 31,     December 31,  
    2024     2024     2024     2024     2023  
    Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent  
    (Dollars in thousands)  
Demand (1)   $ 169,178       8.98 %   $ 182,737       9.78 %   $ 178,125       11.09 %   $ 191,541       12.07 %   $ 185,151       12.28 %
Interest-bearing deposits:                                                            
NOW/IOLA accounts (1)     62,616       3.32 %     71,445       3.82 %     81,178       5.05 %     73,202       4.62 %     77,909       5.17 %
Money market accounts     636,219       33.75 %     660,168       35.30 %     502,255       31.27 %     482,344       30.42 %     432,735       28.70 %
Reciprocal deposits     130,677       6.93 %     94,145       5.03 %     109,945       6.85 %     97,718       6.16 %     96,860       6.42 %
Savings accounts     105,870       5.62 %     108,941       5.82 %     109,694       6.83 %     112,713       7.11 %     114,139       7.57 %
Total NOW, money market, reciprocal and savings accounts     935,382       49.62 %     934,699       49.97 %     803,072       50.00 %     765,977       48.31 %     721,643       47.86 %
Certificates of deposit of $250K or more (3)     204,293       10.84 %     210,262       11.25 %     189,683       11.82 %     183,478       11.57 %     167,530       11.12 %
Brokered certificates of deposit (2)     94,531       5.02 %     94,531       5.05 %     94,614       5.89 %     94,689       5.97 %     98,729       6.55 %
Listing service deposits (2)     7,376       0.39 %     7,376       0.39 %     9,361       0.58 %     12,688       0.80 %     14,433       0.96 %
All other certificates of deposit less than $250K (3)     474,104       25.15 %     440,718       23.56 %     331,242       20.62 %     337,411       21.28 %     320,134       21.23 %
Total certificates of deposit     780,304       41.40 %     752,887       40.25 %     624,900       38.91 %     628,266       39.62 %     600,826       39.86 %
Total interest-bearing deposits     1,715,686       91.02 %     1,687,586       90.22 %     1,427,972       88.91 %     1,394,243       87.93 %     1,322,469       87.72 %
Total deposits   $ 1,884,864       100.00 %   $ 1,870,323       100.00 %   $ 1,606,097       100.00 %   $ 1,585,784       100.00 %   $ 1,507,620       100.00 %

  (1) As of December 31, 2023, $58.2 million was reclassified from demand to NOW/IOLA accounts.
  (2) As of December 31, 2023, there were $0.3 million in individual listing service deposits amounting to $250,000 or more. As of December 31, 2024, there were no individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
  (3) As of September 30, 2024, June 30,2024, March 31, 2024 and December 31, 2023, $36.2 million, $33.5 million, $37.2 million and $35.4 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.
     

Ponce Financial Group, Inc. and Subsidiaries
Borrowings

  December 31,     December 31,  
  2024     2023  
  Scheduled
Maturity
    Redeemable
at Call Date
    Weighted
Average
Rate
    Scheduled
Maturity
    Redeemable
at Call Date
    Weighted
Average
Rate
 
  (Dollars in thousands)  
Overnight line of credit
advance
$ 25,000     $ 25,000       4.69 %   $     $        %
                                   
Term advances ending:                                  
2024                     363,321       363,321       4.55  
2025   100,000       100,000       4.48       50,000       50,000       4.41  
2026   200,000       200,000       4.25                    
2027   212,000       212,000       3.44       212,000       212,000       3.44  
2028   9,100       9,100       3.84       9,100       9,100       3.84  
2029   50,000       50,000       3.35       50,000       50,000       3.35  
  $ 596,100     $ 596,100       3.94 %   $ 684,421     $ 684,421       4.10 %
                                               

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets

  As of Three Months Ended  
  December 31,     September 30,     June 30,     March 31,     December 31,  
  2024     2024     2024     2024     2023  
  (Dollars in thousands)  
Non-accrual loans:                            
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 436     $ 436     $ 436     $ 399     $ 793  
Owner occupied   1,423       1,423       1,423       1,426       1,682  
Multifamily residential   10,271       4,685       5,754       4,098       2,979  
Nonresidential properties         824       828       441        
Construction and land   14,158       8,907       8,907       10,277       10,759  
Non-mortgage loans:                            
Business   343       180       396       146       165  
Consumer                            
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) $ 26,631     $ 16,455     $ 17,744     $ 16,787     $ 16,378  
                             
Non-accruing modifications to borrowers experiencing financial difficulty (1):                            
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 279     $ 278     $ 277     $ 270     $ 270  
Owner occupied   435       444       448       447       447  
Multifamily residential                            
Nonresidential properties                            
Construction and land                            
Non-mortgage loans:                            
Business                            
Consumer                            
Total non-accruing modifications to borrowers experiencing financial difficulty (1)   714       722       725       717       717  
Total non-accrual loans (2) $ 27,345     $ 17,177     $ 18,469     $ 17,504     $ 17,095  
                             
Accruing modifications to borrowers experiencing financial difficulty (1):                            
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 1,807     $ 1,821     $ 1,830     $ 1,850     $ 2,112  
Owner occupied   2,062       2,116       2,171       2,288       2,313  
Multifamily residential                            
Nonresidential properties   652       672       707       748       757  
Construction and land                            
Non-mortgage loans:                            
Business   215       222                    
Consumer                            
Total accruing modifications to borrowers experiencing financial difficulty (1) $ 4,736     $ 4,831     $ 4,708     $ 4,886     $ 5,182  
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) $ 32,081     $ 22,008     $ 23,177     $ 22,390     $ 22,277  
Total non-performing loans to total gross loans   1.18 %     0.78 %     0.89 %     0.87 %     0.89 %
Total non-performing assets to total assets   0.90 %     0.57 %     0.65 %     0.62 %     0.62 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1)   1.06 %     0.73 %     0.82 %     0.79 %     0.81 %

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

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

  For the Three Months Ended December 31,
  2024     2023  
  Average               Average            
  Outstanding           Average   Outstanding           Average
  Balance     Interest     Yield/Rate (1)   Balance     Interest     Yield/Rate (1)
  (Dollars in thousands)
Interest-earning assets:                              
Loans (2) $ 2,261,426     $ 35,622     6.27 %   $ 1,884,301     $ 27,814     5.86 %
Securities (3)   507,510       4,860     3.81 %     582,563       5,715     3.89 %
Other (4)   179,701       2,404     5.32 %     96,070       1,421     5.87 %
Total interest-earning assets   2,948,637       42,886     5.79 %     2,562,934       34,950     5.41 %
Non-interest-earning assets   108,558                 107,305            
Total assets $ 3,057,195               $ 2,670,239            
Interest-bearing liabilities:                              
NOW/IOLA (5) (6) $ 68,776     $ 119     0.69 %   $ 75,926     $ 181     0.95 %
Money market (6)   761,130       8,329     4.35 %     474,306       5,495     4.60 %
Savings   109,217       27     0.10 %     116,600       28     0.10 %
Certificates of deposit   783,335       8,104     4.12 %     559,713       5,103     3.62 %
Total deposits   1,722,458       16,579     3.83 %     1,226,545       10,807     3.50 %
Advance payments by borrowers   15,147       1     0.03 %     15,033       2     0.05 %
Borrowings   573,316       5,576     3.87 %     678,235       6,944     4.06 %
Total interest-bearing liabilities   2,310,921       22,156     3.81 %     1,919,813       17,753     3.67 %
Non-interest-bearing liabilities:                              
Non-interest-bearing demand (5)   191,355                 211,434            
Other non-interest-bearing liabilities   47,875                 51,764            
Total non-interest-bearing liabilities   239,230                 263,198            
Total liabilities   2,550,151       22,156           2,183,011       17,753      
Total equity   507,044                 487,228            
Total liabilities and total equity $ 3,057,195           3.81 %   $ 2,670,239           3.67 %
Net interest income       $ 20,730               $ 17,197      
Net interest rate spread (7)             1.98 %               1.74 %
Net interest-earning assets (8) $ 637,716               $ 643,121            
Net interest margin (9)             2.80 %               2.66 %
Average interest-earning assets to interest-bearing liabilities             127.60 %               133.50 %

  (1) Annualized where appropriate.
  (2) Loans include loans and mortgage loans held for sale, at fair value.
  (3) Securities include available-for-sale securities and held-to-maturity securities.
  (4) Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
  (5) Includes reclassification of $55.7 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
  (6) Includes $0.2 million of interest expense reclassified from money market to NOW/IOLA for the three months ended December 31, 2023.
  (7) 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.
  (8) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
  (9) Net interest margin represents net interest income divided by average total interest-earning assets.
     

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

  For the Years Ended December 31,  
  2024     2023  
  Average                 Average              
  Outstanding           Average     Outstanding           Average  
  Balance     Interest     Yield/Rate     Balance     Interest     Yield/Rate  
  (Dollars in thousands)  
Interest-earning assets:                                  
Loans (1) $ 2,094,820     $ 130,512       6.23 %   $ 1,730,275     $ 95,805       5.54 %
Securities (2)   548,641       21,289       3.88 %     606,815       23,342       3.85 %
Other (3)   192,403       10,836       5.63 %     119,923       6,720       5.60 %
Total interest-earning assets   2,835,864       162,637       5.74 %     2,457,013       125,867       5.12 %
Non-interest-earning assets   107,017                   115,760              
Total assets $ 2,942,881                 $ 2,572,773              
Interest-bearing liabilities:                                  
NOW/IOLA (4) (5) $ 74,796     $ 662       0.89 %   $ 70,993     $ 1,314       1.85 %
Money market (5)   654,521       30,148       4.61 %     424,160       17,132       4.04 %
Savings   111,028       107       0.10 %     121,550       116       0.10 %
Certificates of deposit   676,306       27,768       4.11 %     528,999       16,571       3.13 %
Total deposits   1,516,651       58,685       3.87 %     1,145,702       35,133       3.07 %
Advance payments by borrowers   14,034       7       0.05 %     14,869       8       0.05 %
Borrowings   670,982       27,465       4.09 %     633,116       25,460       4.02 %
Total interest-bearing liabilities   2,201,667       86,157       3.91 %     1,793,687       60,601       3.38 %
Non-interest-bearing liabilities:                                  
Non-interest-bearing demand (4)   191,155                   241,510              
Other non-interest-bearing liabilities   50,259                   45,858              
Total non-interest-bearing liabilities   241,414                   287,368              
Total liabilities   2,443,081       86,157             2,081,055       60,601        
Total equity   499,800                   491,718              
Total liabilities and total equity $ 2,942,881             3.91 %   $ 2,572,773             3.38 %
Net interest income       $ 76,480                 $ 65,266        
Net interest rate spread (6)               1.83 %                 1.74 %
Net interest-earning assets (7) $ 634,197                 $ 663,326              
Net interest margin (8)               2.70 %                 2.66 %
Average interest-earning assets to                                  
interest-bearing liabilities               128.81 %                 136.98 %

  (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.
  (3) Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
  (4) Includes reclassification of $48.8 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
  (5) Includes $1.3 million of interest expense reclassified from money market to NOW/IOLA for the year ended December 31, 2023.
  (6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
  (7) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
  (8) Net interest margin represents net interest income divided by average total interest-earning assets.
     

Ponce Financial Group, Inc. and Subsidiaries
Other Data

  As of  
  December 31,     September 30,     June 30,     March 31,     December 31,  
  2024     2024     2024     2024     2023  
Other Data                            
Common shares issued   24,886,711       24,886,711       24,886,711       24,886,711       24,886,711  
Less treasury shares   925,497       1,067,248       1,074,979       1,096,214       1,101,191  
Common shares outstanding at end of period   23,961,214       23,819,463       23,811,732       23,790,497       23,785,520  
                             
Book value per common share $ 11.71     $ 11.74     $ 11.45     $ 11.29     $ 11.20  
Tangible book value per common share $ 11.71     $ 11.74     $ 11.45     $ 11.29     $ 11.20  
                                       

Contact:
Sergio Vaccaro
Sergio.vaccaro@poncebank.net
718-931-9000

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