NEW YORK, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the "Company") $(PDLB)$, the holding company for Ponce Bank, N.A. (the "Bank"), today announced results for the fourth quarter of 2025.
Fourth Quarter 2025 Highlights (Compared to Prior Periods):
-- Net income available to common stockholders was $9.9 million, or $0.42
per diluted share for the three months ended December 31, 2025, as
compared to net income available to common stockholders of $6.2 million,
or $0.27 per diluted share for the three months ended September 30, 2025
and net income available to common stockholders of $2.7 million, or $0.12
per diluted share for the three months ended December 31, 2024. Total net
income for the three months ended December 31, 2025 was $10.1 million.
The Company paid dividends of $0.3 million on its preferred stock during
the three months ended December 31, 2025.
-- Included in the $9.9 million of net income available to common
stockholders for the fourth quarter of 2025 results is $48.8 million in
interest and dividend income and $3.5 million in non-interest income,
offset by $20.9 million in interest expense, $16.6 million in
non-interest expense, $3.6 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 $27.9 million for the fourth quarter of 2025
increased $2.7 million, or 10.64%, from the prior quarter and increased
$7.2 million, or 34.75%, from the same quarter last year.
-- Net interest margin was 3.57% for the fourth quarter of 2025, versus
3.30% for the prior quarter and 2.80% for the same quarter last year.
Full Year 2025 Highlights (Compared to 2024):
-- Net income available to common stockholders was $27.6 million, or $1.20
per diluted share for the year ended December 31, 2025, as compared to
net income available to common stockholders of $10.3 million, or $0.46
per diluted share for the year ended December 31, 2024. The Company paid
dividends of $1.1 million on its preferred stock during the
for the year ended December 31, 2025 and $0.6 million for the year ended
December 31, 2024.
-- Net interest income for the year ended December 31, 2025 was $99.8
million, an increase of $23.3 million, or 30.51%, compared to $76.5
million for the year ended December 31, 2024.
-- Non-interest income for the year ended December 31, 2025 was $9.4 million,
an increase of $2.2 million, or 30.49%, from $7.2 million
for the year ended December 31, 2024.
-- Non-interest expense for the year ended December 31, 2025 was $67.0
million, a decrease of $0.4 million, or 0.66%, compared to $67.5 million
for the year ended December 31, 2024.
-- Cash and equivalents were $126.2 million as of December 31, 2025, a
decrease of $13.7 million, or 9.79%, from $139.8 million as
of December 31, 2024.
-- Securities totaled $365.2 million as of December 31, 2025, a decrease of
$107.7 million, or 22.78%, from $472.9 million as of December 31, 2024
primarily due to regular principal payments, the call of four
available-for-sale securities in the total amount of $8.3 million and the
maturity/call of three held-to-maturity securities in the amount of $50.0
million.
-- Net loans receivable were $2.60 billion as of December 31, 2025, an
increase of $312.7 million, or 13.67%, from $2.29 billion as of
December 31, 2024.
-- Deposits were $2.05 billion as of December 31, 2025, an increase of
$151.4 million, or 7.99%, from $1.90 billion as of December 31, 2024.
President and Chief Executive Officer's Comments
Carlos P. Naudon, Ponce Financial Group, Inc.'s President and CEO, stated "The focused execution of our long-term strategy continues to bear fruits. We're pleased with the increase in profitability over the last several quarters driven by incremental net interest income and controlled operating expenses. Our net interest margin grew 78bps this quarter versus the same quarter last year, and our non-interest expense remains flat for the last three consecutive years. Our capital ratios continue to be well in excess of regulatory requirements. We remain committed to the communities we serve and we'll continue investing 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're pleased with our levels of loan growth as we continue to make progress towards our commitments under the U.S. Treasury's Emergency Capital Investment Program. As previously reported, we expect that our dividend yield will continue at the 0.50% level in the next dividend period starting later this year and we're close to achieving 16 quarters of a cumulative deep impact lending percentage of more than 60%. After 14 quarters, including the quarter ended December 31, 2025, we are at 82% deep impact lending."
The table below indicate the Key Metrics at or for the three months ended:
At or for the Three Months Ended
-------------------------------------------------------------
December September June March December
31, 30, 30, 31, 31,
2025 2025 2025 2025 2024
--------- --------- ------ ----- --------
Performance
Ratios:
Return on average
assets(1) 1.26% 0.82% 0.79% 0.77% 0.38%
Return on common
equity(1) 12.50% 8.10% 7.88% 7.97% 3.76%
Net interest
margin(1) (2) 3.57% 3.30% 3.27% 2.98% 2.80%
Non-interest
expense to
average
assets(1) 2.06% 2.10% 2.18% 2.19% 2.25%
Efficiency
ratio(3) 52.95% 62.15% 63.69% 68.70% 75.63%
Capital Ratios:
Total capital to
risk-weighted
assets (Ponce
Financial Group) 23.72% 24.08% 22.65% 22.84% 22.98%
Common equity Tier
1 capital to
risk-weighted
assets (Ponce
Financial Group) 13.39% 13.39% 12.49% 12.51% 12.44%
Tier 1 capital to
total assets
(Ponce Financial
Group) 17.28% 17.33% 17.13% 16.84% 17.70%
Total capital to
risk-weighted
assets (Bank
only) 21.63% 21.79% 21.22% 21.38% 21.47%
Common equity Tier
1 capital to
risk-weighted
assets (Bank
only) 20.53% 20.66% 20.15% 20.35% 20.40%
Tier 1 capital to
total assets
(Bank only) 16.12% 16.08% 15.99% 15.61% 15.81%
Asset Quality
Ratios:
Allowance for
credit losses on
loans as a
percentage of
total loans 0.97% 0.98% 0.97% 0.96% 0.97%
Allowance for
credit losses on
loans as a
percentage of
nonperforming
loans 94.74% 88.88% 101.01% 84.15% 82.29%
Net (charge-offs)
recoveries to
average
outstanding
loans(1) (0.13%) (0.03%) (0.04%) (0.04%) (0.45%)
Non-performing
loans as a
percentage of
total assets 0.83% 0.88% 0.76% 0.88% 0.90%
Other:
Number of offices 17 18 17 18 19
Number of
full-time
equivalent
employees 216 209 206 211 218
(1) Annualized.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
Summary of Results of Operations
Net income for the three months ended December 31, 2025 was $10.1 million compared to net income of $6.5 million for the three months ended September 30, 2025 and net income of $2.9 million for the three months ended December 31, 2024.
The $3.6 million increase of net income for the three months ended December 31, 2025 compared to the three months ended September 30, 2025 was attributed mainly to increases of $2.7 million in net interest income and $2.0 million in non-interest income and a decrease of $0.3 million in provision for credit losses, offset by and an increase of $1.3 million in provision for income taxes while remaining relatively flat on non-interest expense.
The $7.2 million increase of net income for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 was largely due to increases of $7.2 million in net interest income and $1.4 million in non-interest income and a decrease of $0.8 million in non-interest expense, offset by increases of $2.0 million in provision for income taxes and $0.2 million in provision for credit losses.
Net income for the year ended December 31, 2025 was $28.7 million compared to net income of $11.0 million for the year ended December 31, 2024. The $17.7 million increase of net income for the year ended December 31, 2025 compared to the year ended December 31, 2024 was attributed mainly to increases of $23.3 million in net interest income as a result of a $22.9 million increase in total interest and dividend and a $0.4 million decrease in total interest expense, and $2.2 million in non-interest income and a decrease of $0.4 million in non-interest expense, partially offset by increases of $5.0 million in provision for income taxes, $3.2 million in provision for credit losses and $0.5 million in dividend on preferred shares.
Net Interest Income and Net Interest Margin
Net interest income for the three months ended December 31, 2025, increased $2.7 million, or 10.64%, to $27.9 million compared to $25.2 million for the three months ended September 30, 2025 and increased $7.2 million, or 34.75%, compared to $20.7 million for the three months ended December 31, 2024.
The $2.7 million increase in net interest income from the three months ended September 30, 2025 was attributable to an increase of $2.0 million in total interest and dividend income and a decrease of $0.7 million in total interest expense. The $7.2 million increase in net interest income from the three months ended December 31, 2024 was attributable to an increase of $5.9 million in total interest and dividend income and a decrease of $1.3 million in total interest expense.
Net interest income for the year ended December 31, 2025, increased $23.3 million, or 30.51%, to $99.8 million compared to $76.5 million for the year ended December 31, 2024. The $23.3 million increase in net interest income was attributable to an increase of $22.9 million in total interest and dividend income and a decrease of $0.4 million in total interest expense.
Net interest margin was 3.57% for the three months ended December 31, 2025 compared to 3.30% for the prior quarter, an increase of 27bps and 2.80% for the same period last year, an increase of 77bps.
Net interest margin was 3.28% for the year ended December 31, 2025 compared to 2.70% for the year ended December 31, 2024, an increase of 58bps.
Non-interest Income
Non-interest income for the three months ended December 31, 2025, was $3.5 million, an increase of $2.0 million, or 133.18%, compared to $1.5 million for the three months ended September 30, 2025 and an increase of $1.4 million, or 65.90%, compared to $2.1 million for the three months ended December 31, 2024.
The $2.0 million increase in non-interest income from the three months ended September 30, 2025 was largely attributable to increases of $1.2 million in other non-interest income and $0.8 million in late and prepayment charges. The increase of $1.2 million in other non-interest income is largely attributable to positive valuation adjustments of the Bank's investments in Oaktree SBIC Fund, L.P. ("Oaktree") and EJF Silvergate Ventures Fund LP ("Silvergate").
The $1.4 million increase in non-interest income from the three months ended December 31, 2024 was largely attributable to increases of $0.9 million in late and prepayment charges, $0.4 million in grant income and $0.3 million in other non-interest income attributable to positive valuation adjustments for the Bank's investments in Oaktree and Silvergate, partially offset by decreases of $0.1 million in income on sale of SBA loans and $0.1 million in income on the sale of mortgage loans.
Non-interest income for the year ended December 31, 2025, was $9.4 million, an increase of $2.2 million, or 30.49%, compared to $7.2 million for the year ended December 31, 2024. The $2.2 million increase in non-interest income was largely attributable to increases of $1.6 million in late and prepayment charges, $1.3 million in grant income and $0.3 million in income on sale of SBA loans, partially offset by decreases of $0.6 million in other non-interest income and $0.4 million in income on the sale of mortgage loans.
Non-interest Expense
Non-interest expense for the three months ended December 31, 2025 was $16.6 million, remaining flat compared to the three months ended September 30, 2025 and a decrease of $0.8 million compared to $17.5 million when compared to the three months ended December 31, 2024.
The $0.8 million decrease in non-interest expense from the three months ended December 31, 2024 was mainly attributable to decreases of $0.5 million in direct loan expenses, $0.3 million in federal deposit insurance and regulatory assessment, and $0.3 million in professional fees, partially offset by an increase of $0.4 million in compensation and benefits.
Non-interest expense for the year ended December 31, 2025, was $67.0 million, a decrease of $0.4 million, or 0.66%, compared to $67.5 million for the year ended December 31, 2024. The $0.4 million decrease in non-interest expense was mainly attributable to decreases of $1.7 million in direct loan expenses and $0.6 million in professional fees, $0.3 million in federal deposit insurance and regulatory assessment, and $0.3 million in office supplies, telephone and postage, partially offset by increases of $0.9 million in occupancy and equipment, $0.5 million in compensation and benefits, $0.5 million in data processing expenses and $0.2 million in other operating expense.
Credit Quality:
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $30.2 million at December 31, 2025 compared to $32.4 million at September 30, 2025 and $32.1 million at December 31, 2024.
During the three months ended December 31, 2025, a credit loss provision of $1.1 million on loans was recorded, consisting of $1.5 million charged on the funded portion and $0.4 million benefit 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 and $0.5 million charged on the unfunded portion on loans. During the three months ended December 31, 2024, a credit loss provision of $0.9 million on loans was recorded, consisting of $1.1 million charged on the funded portion on loans and a benefit of $0.2 million on the unfunded portion on loans.
During the year ended December 31, 2025, a credit loss provision of $3.8 million on loans was recorded, consisting of $4.5 million charged on the funded portion and a benefit of $0.7 million on the unfunded portion on loans. During the year ended December 31, 2024, a credit loss provision of $0.8 million on loans was recorded, consisting of $1.5 million charged on the funded portion on loans and a benefit of $0.7 million on unfunded portion on loans.
Balance Sheet Summary
Total assets increased $184.0 million, or 6.05%, to $3.22 billion as of December 31, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $312.7 million in net loans receivable and $10.7 million in purchases of Federal Reserve Bank of New York stock, partially offset by decreases of $95.0 million in held-to-maturity securities, $13.7 million in cash and cash equivalents, $12.8 million in available-for-sale securities, $7.6 million in other assets, $7.3 million in mortgage loans held for sale, $1.5 million in right of use asset, $1.2 million in premises and equipment, net and $0.6 million in deferred tax assets.
Total liabilities increased $148.0 million, or 5.84%, to $2.68 billion as of December 31, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to an increase of $151.4 million in deposits, partially offset by decreases of $2.2 million in other liabilities and $1.3 million in operating lease liabilities.
Total stockholders' equity increased $36.0 million, or 7.13%, to $541.5 million as of December 31, 2025, from $505.5 million as of December 31, 2024. The $36.0 million increase in stockholders' equity was largely attributable to $28.7 million in net income, $4.5 million in other comprehensive 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 $0.1 million from exercise of stock options, offset by $1.1 million in dividends on preferred shares.
About Ponce Financial Group, Inc.
Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A.. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.'s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank. N.A. also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, Federal Home Loan Bank stock and Federal Reserve Bank stock.
Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as "believes," "will," "would," "expects," "project," "may," "could," "developments," "strategic," "launching," "opportunities," "anticipates, " "estimates," "intends," "plans," "targets" and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank, N.A. operates, including changes that adversely affect borrowers' ability to service and repay Ponce Bank, N.A.'s loans; changes in
U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank, N.A.'s market area; Ponce Bank, N.A.'s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.'s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the "SEC"), which are available at the SEC's website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)
As of
--------------------------------------------------------------
December September December
31, 30, June 30, March 31, 31,
2025 2025 2025 2025 2024
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and due from
banks:
Cash $ 28,511 $ 29,296 $ 35,767 $ 32,113 $ 35,478
Interest-bearing
deposits 97,643 117,283 90,872 97,780 104,361
--------- --------- --------- --------- ---------
Total cash and
cash
equivalents 126,154 146,579 126,639 129,893 139,839
Available-for-sale
securities, at fair
value 92,196 94,822 96,562 103,570 104,970
Held-to-maturity
securities, at
amortized cost 272,982 285,125 336,879 358,024 367,938
Placement with banks 249 249 249 249 249
Mortgage loans held
for sale, at fair
value 3,388 5,794 5,703 8,567 10,736
Loans receivable,
net 2,599,258 2,490,046 2,458,712 2,370,931 2,286,599
Accrued interest
receivable 17,905 18,903 19,126 19,008 17,771
Premises and
equipment, net 15,638 16,129 16,067 16,417 16,794
Right of use assets 27,583 28,295 28,806 29,496 29,093
Federal Home Loan
Bank of New York
stock (FHLBNY), at
cost 29,309 25,945 26,620 25,807 29,182
Federal Reserve Bank
of New York stock
(FRBNY), at cost 10,698 -- -- -- --
Deferred tax assets 11,501 12,402 12,143 11,629 12,074
Other assets 17,109 32,790 26,363 16,245 24,693
--------- --------- --------- --------- ---------
Total assets $3,223,970 $3,157,079 $3,153,869 $3,089,836 $3,039,938
========= ========= ========= ========= =========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Liabilities:
Deposits $2,046,635 $2,063,081 $2,053,151 $2,017,848 $1,895,213
Borrowings 596,100 521,100 536,100 521,100 596,100
Operating lease
liabilities 29,353 30,028 30,501 31,126 30,696
Accrued interest
payable 3,788 4,372 4,161 4,628 3,712
Other liabilities 6,545 8,663 8,868 1,248 8,717
--------- --------- --------- --------- ---------
Total
liabilities 2,682,421 2,627,244 2,632,781 2,575,950 2,534,438
--------- --------- --------- --------- ---------
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 (6,164) (7,270) (7,404) (7,641) (7,707)
Additional
paid-in-capital 208,604 208,909 208,275 207,888 207,319
Retained earnings 135,332 125,477 119,250 113,432 107,754
Accumulated other
comprehensive
loss (10,820) (11,586) (13,047) (13,515) (15,297)
Unearned
compensation --
ESOP (10,652) (10,944) (11,235) (11,527) (11,818)
--------- --------- --------- --------- ---------
Total
stockholders'
equity 541,549 529,835 521,088 513,886 505,500
--------- --------- --------- --------- ---------
Total
liabilities
and
stockholders'
equity $3,223,970 $3,157,079 $3,153,869 $3,089,836 $3,039,938
========= ========= ========= ========= =========
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended
-----------------------------------------------------------------
December September December
31, 30, June 30, March 31, 31,
2025 2025 2025 2025 2024
----------- ----------- ----------- ----------- -----------
Interest and
dividend income:
Interest on
loans
receivable $ 43,599 $ 41,486 $ 40,291 $ 37,136 $ 35,622
Interest on
deposits due
from banks 1,209 978 807 1,668 1,783
Interest and
dividend on
securities and
FHLBNY stock 4,013 4,383 4,762 5,193 5,481
---------- ---------- ---------- ---------- ----------
Total
interest and
dividend
income 48,821 46,847 45,860 43,997 42,886
---------- ---------- ---------- ---------- ----------
Interest expense:
Interest on
certificates
of deposit 6,706 6,553 7,382 7,754 8,104
Interest on
other
deposits 9,106 9,996 9,058 8,554 8,476
Interest on
borrowings 5,075 5,050 4,994 5,486 5,576
---------- ---------- ---------- ---------- ----------
Total
interest
expense 20,887 21,599 21,434 21,794 22,156
---------- ---------- ---------- ---------- ----------
Net interest
income 27,934 25,248 24,426 22,203 20,730
Provision
(benefit) for
credit losses 1,078 1,364 1,626 (285) 897
---------- ---------- ---------- ---------- ----------
Net interest
income after
provision
(benefit)
for credit
losses 26,856 23,884 22,800 22,488 19,833
---------- ---------- ---------- ---------- ----------
Non-interest
income:
Service charges
and fees 542 539 511 525 500
Brokerage
commissions 23 8 -- 4 44
Late and
prepayment
charges 1,173 385 530 697 318
Income on sale
of mortgage
loans 139 166 169 148 254
Income on sale
of SBA loans -- -- -- 404 148
Grant income 428 429 428 -- --
Other 1,174 (35) 422 603 833
---------- ---------- ---------- ---------- ----------
Total
non-interest
income 3,479 1,492 2,060 2,381 2,097
---------- ---------- ---------- ---------- ----------
Non-interest
expense:
Compensation
and benefits 8,113 7,868 7,627 7,780 7,668
Occupancy and
equipment 4,033 3,934 3,907 3,913 3,863
Data processing
expenses 1,223 1,296 1,188 1,152 1,143
Direct loan
expenses 116 155 241 388 617
Insurance and
surety bond
premiums 324 318 297 315 293
Office
supplies,
telephone and
postage 186 170 174 170 294
Professional
fees 1,392 1,409 1,367 1,364 1,703
Microloans
recoveries -- -- -- -- (29)
Marketing and
promotional
expenses 94 184 266 83 289
Federal deposit
insurance and
regulatory
assessment 97 266 546 461 418
Other operating
expenses 1,056 1,018 1,256 1,262 1,206
---------- ---------- ---------- ---------- ----------
Total
non-interest
expense 16,634 16,618 16,869 16,888 17,465
---------- ---------- ---------- ---------- ----------
Income before
income
taxes 13,701 8,758 7,991 7,981 4,465
Provision for
income taxes 3,565 2,250 1,891 2,022 1,532
---------- ---------- ---------- ---------- ----------
Net income $ 10,136 $ 6,508 $ 6,100 $ 5,959 $ 2,933
Dividends on
preferred shares 281 281 282 281 282
---------- ---------- ---------- ---------- ----------
Net income
available to
common
stockholders $ 9,855 $ 6,227 $ 5,818 $ 5,678 $ 2,651
========== ========== ========== ========== ==========
Earnings per
common share:
Basic $ 0.43 $ 0.27 $ 0.26 $ 0.25 $ 0.12
========== ========== ========== ========== ==========
Diluted $ 0.42 $ 0.27 $ 0.25 $ 0.25 $ 0.12
========== ========== ========== ========== ==========
Weighted average
common shares
outstanding:
Basic 22,837,044 22,766,195 22,716,615 22,662,916 22,528,160
========== ========== ========== ========== ==========
Diluted 23,263,708 23,135,448 22,947,769 22,876,740 22,807,644
========== ========== ========== ========== ==========
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
For the Years Ended December 31,
----------------------------------------------------
2025 2024 Variance $ Variance %
----------- ----------- ------------ ----------
Interest and
dividend income:
Interest on
loans
receivable $ 162,512 $ 130,512 $ 32,000 24.52%
Interest on
deposits due
from banks 4,662 8,666 (4,004) (46.20%)
Interest and
dividend on
securities and
FHLBNY stock 18,351 23,459 (5,108) (21.77%)
---------- ---------- -------- ----------
Total interest
and dividend
income 185,525 162,637 22,888 14.07%
---------- ---------- -------- ----------
Interest expense:
Interest on
certificates of
deposit 28,395 27,768 627 2.26%
Interest on
other deposits 36,714 30,924 5,790 18.72%
Interest on
borrowings 20,605 27,465 (6,860) (24.98%)
---------- ---------- -------- ----------
Total interest
expense 85,714 86,157 (443) (0.51%)
---------- ---------- -------- ----------
Net interest
income 99,811 76,480 23,331 30.51%
Provision for
credit losses 3,783 551 3,232 586.57%
---------- ---------- -------- ----------
Net interest
income after
provision for
credit
losses 96,028 75,929 20,099 26.47%
---------- ---------- -------- ----------
Non-interest
income:
Service charges
and fees 2,117 1,973 144 7.30%
Brokerage
commissions 35 61 (26) (42.62%)
Late and
prepayment
charges 2,785 1,180 1,605 136.02%
Income on sale
of mortgage
loans 622 1,048 (426) (40.65%)
Income on sale
of SBA loans 404 148 256 172.97%
Grant income 1,285 -- 1,285 --%
Other 2,164 2,803 (639) (22.80%)
---------- ---------- -------- ----------
Total
non-interest
income 9,412 7,213 2,199 30.49%
---------- ---------- -------- ----------
Non-interest
expense:
Compensation and
benefits 31,388 30,910 478 1.55%
Occupancy and
equipment 15,787 14,880 907 6.10%
Data processing
expenses 4,859 4,382 477 10.89%
Direct loan
expenses 900 2,555 (1,655) (64.77%)
Insurance and
surety bond
premiums 1,254 1,101 153 13.90%
Office supplies,
telephone and
postage 700 998 (298) (29.86%)
Professional
fees 5,532 6,146 (614) (9.99%)
Microloans
recoveries -- (201) 201 (100.00%)
Marketing and
promotional
expenses 627 714 (87) (12.18%)
Federal deposit
insurance and
regulatory
assessments 1,370 1,627 (257) (15.80%)
Other operating
expenses 4,592 4,345 247 5.68%
---------- ---------- -------- ----------
Total
non-interest
expense 67,009 67,457 (448) (0.66%)
---------- ---------- -------- ----------
Income before
income taxes 38,431 15,685 22,746 145.02%
Provision for
income taxes 9,728 4,713 5,015 106.41%
---------- ---------- -------- ----------
Net income $ 28,703 $ 10,972 $ 17,731 161.60%
Dividends on
preferred shares 1,125 638 487 76.33%
---------- ---------- -------- ----------
Net income
available to
common
stockholders $ 27,578 $ 10,334 $ 17,244 166.87%
========== ========== ======== ----------
Earnings per
common share:
Basic $ 1.21 $ 0.46 $ 0.75 163.00%
========== ========== ======== ==========
Diluted $ 1.20 $ 0.46 $ 0.74 160.87%
========== ========== ======== ==========
Weighted average
common shares
outstanding:
Basic 22,746,226 22,434,654 311,572 1.39%
========== ========== ======== ==========
Diluted 23,060,669 22,551,715 508,954 2.26%
========== ========== ======== ==========
Ponce Financial Group, Inc. and Subsidiaries
Loans Receivable excluding Mortgage Loans Held for Sale
As of
----------------------------------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2025 2025 2025 2025 2024
-------------------- -------------------- -------------------- -------------------- --------------------
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
---------- ------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
(Dollars in thousands)
Mortgage loans:
1-4 family
residential
Investor Owned $ 307,267 11.70% $ 311,728 12.39% $ 317,488 12.78% $ 325,866 13.62% $ 330,053 14.30%
Owner-Occupied 127,107 4.84% 132,874 5.28% 134,862 5.43% 137,676 5.75% 142,363 6.17%
Multifamily
residential 756,542 28.83% 688,574 27.39% 693,670 27.96% 675,541 28.24% 670,159 29.04%
Nonresidential
properties 526,210 20.05% 436,175 17.35% 404,512 16.30% 390,681 16.33% 389,898 16.89%
Construction and
land 854,096 32.54% 886,369 35.25% 883,462 35.59% 815,425 34.08% 733,660 31.79%
--------- ------- --------- ------- --------- ------- --------- ------- --------- -------
Total mortgage
loans 2,571,222 97.96% 2,455,720 97.66% 2,433,994 98.06% 2,345,189 98.02% 2,266,133 98.19%
Non-mortgage
loans:
Business loans 53,063 2.02% 58,012 2.31% 47,372 1.91% 46,329 1.94% 40,849 1.77%
Consumer loans 625 0.02% 727 0.03% 840 0.03% 997 0.04% 1,038 0.04%
--------- ------- --------- ------- --------- ------- --------- ------- --------- -------
Total
non-mortgage
loans 53,688 2.04% 58,739 2.34% 48,212 1.94% 47,326 1.98% 41,887 1.81%
--------- ------- --------- ------- --------- ------- --------- ------- --------- -------
Total loans, gross 2,624,910 100.00% 2,514,459 100.00% 2,482,206 100.00% 2,392,515 100.00% 2,308,020 100.00%
======= ======= ======= ======= =======
Net deferred loan
origination costs (203) 351 606 1,390 1,081
Allowance for
credit losses on
loans (25,449) (24,764) (24,100) (22,974) (22,502)
--------- --------- --------- --------- ---------
Loans, net $2,599,258 $2,490,046 $2,458,712 $2,370,931 $2,286,599
========= ========= ========= ========= =========
Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans
For the Three Months Ended
-------------------------------------------------------
December September June March December
31, 30, 30, 31, 31,
2025 2025 2025 2025 2024
--------- ---------- ------- ------- ----------
(Dollars in thousands)
Allowance for
credit losses on
loans at
beginning of the
period $ 24,764 $ 24,100 $22,974 $22,502 $ 23,966
Provision for
credit losses on
loans 1,526 864 1,348 731 1,090
Charge-offs:
Mortgage loans:
1-4 family
residences
Investor
owned (32) -- -- (38) --
Non-mortgage
loans:
Business (801) (200) (222) (222) (232)
Consumer (44) -- -- (3) (2,465)
-------- --------- ------ ------ ------
Total
charge-offs (877) (200) (222) (263) (2,697)
Recoveries:
Mortgage loans:
1-4 family
residences
Investor
owned 1 -- -- -- --
Non-mortgage
loans:
Business 35 -- -- 4 --
Consumer -- -- -- -- 143
-------- --------- ------ ------ ------
Total
recoveries 36 -- -- 4 143
Net (charge-offs)
recoveries (841) (200) (222) (259) (2,554)
Allowance for
credit losses on
loans at end of
the period $ 25,449 $ 24,764 $24,100 $22,974 $ 22,502
======== ========= ====== ====== ======
Ponce Financial Group, Inc. and Subsidiaries
Deposits
As of
-----------------------------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2025 2025 2025 2025 2024
------------------- ------------------- ------------------- ------------------- -------------------
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
---------- ------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
(Dollars in thousands)
Demand $ 208,250 10.18% $ 192,595 9.34% $ 197,671 9.63% $ 212,139 10.51% $ 169,178 8.93%
Interest-bearing
deposits:
NOW/IOLA
accounts 84,012 4.10% 75,051 3.64% 63,626 3.10% 74,430 3.69% 62,616 3.30%
Money market
accounts 779,532 38.09% 821,844 39.84% 790,939 38.52% 692,753 34.33% 636,219 33.57%
Reciprocal
deposits 152,630 7.46% 154,548 7.49% 136,693 6.66% 141,838 7.03% 130,677 6.90%
Savings
accounts(1) 117,708 5.75% 117,401 5.69% 113,701 5.53% 119,023 5.90% 116,219 6.12%
--------- --------- --------- --------- ---------
Total NOW,
money market,
reciprocal
and savings
accounts 1,133,882 55.40% 1,168,844 56.66% 1,104,959 53.81% 1,028,044 50.95% 945,731 49.89%
--------- ------- --------- ------- --------- ------- --------- ------- --------- -------
Certificates of
deposit of
$250K or more 202,500 9.89% 209,819 10.17% 220,671 10.75% 219,721 10.89% 204,293 10.78%
Brokered
certificates of
deposit(2) 67,942 3.32% 67,952 3.29% 69,531 3.39% 84,531 4.19% 94,531 4.99%
Listing service
deposits(2) 4,150 0.20% 4,150 0.20% 6,140 0.30% 6,140 0.30% 7,376 0.39%
All other
certificates of
deposit less
than $250K 429,911 21.01% 419,721 20.34% 454,179 22.12% 467,273 23.16% 474,104 25.02%
--------- --------- --------- --------- ---------
Total
certificates
of deposit 704,503 34.42% 701,642 34.00% 750,521 36.56% 777,665 38.54% 780,304 41.18%
--------- ------- --------- ------- --------- ------- --------- ------- --------- -------
Total
interest-bearing
deposits 1,838,385 89.82% 1,870,486 90.66% 1,855,480 90.37% 1,805,709 89.49% 1,726,035 91.07%
--------- ------- --------- ------- --------- ------- --------- ------- --------- -------
Total deposits $2,046,635 100.00% $2,063,081 100.00% $2,053,151 100.00% $2,017,848 100.00% $1,895,213 100.00%
========= ======= ========= ======= ========= ======= ========= ======= ========= =======
(1) As of June 30, 2025, March 31, 2025 and December 31, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million and $10.3 million, respectively, were reclassified to Deposits.
(2) There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
As of Three Months Ended
-------------------------------------------------------------------
December September June March December
31, 30, 30, 31, 31,
2025 2025 2025 2025 2024
--------- ---------- ------- ------- ----------
(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family
residential
Investor owned $ 2,870 $ 2,527 $ 1,859 $ 1,052 $ 436
Owner occupied 1,557 649 -- 1,423 1,423
Multifamily
residential 13,112 14,202 11,703 9,788 10,271
Nonresidential
properties -- -- 405 -- --
Construction and
land 8,247 8,907 8,907 14,159 14,158
Non-mortgage loans:
Business 667 880 276 170 343
Consumer -- -- -- -- --
-------- --------- ------ ------ ------
Total
non-accrual
loans (not
including
non-accruing
modifications
to borrowers
experiencing
financial
difficulty)(1) $ 26,453 $ 27,165 $23,150 $26,592 $ 26,631
======== ========= ====== ====== ======
Non-accruing
modifications to
borrowers
experiencing
financial
difficulty(1) :
Mortgage loans:
1-4 family
residential
Investor owned $ -- $ 284 $ 284 $ 279 $ 279
Owner occupied 410 414 424 431 435
Total
non-accruing
modifications
to borrowers
experiencing
financial
difficulty(1) 410 698 708 710 714
Total
non-performing
assets(2) $ 26,863 $ 27,863 $23,858 $27,302 $ 27,345
======== ========= ====== ====== ======
Accruing
modifications to
borrowers
experiencing
financial
difficulty(1) :
Mortgage loans:
1-4 family
residential
Investor owned $ 1,753 $ 1,766 $ 1,779 $ 1,792 $ 1,807
Owner occupied 821 1,959 2,012 2,038 2,062
Multifamily
residential -- -- -- -- --
Nonresidential
properties 621 629 655 644 652
Construction and
land -- -- -- -- --
Non-mortgage loans:
Business 190 196 203 209 215
Consumer -- -- -- -- --
-------- --------- ------ ------ ------
Total accruing
modifications
to borrowers
experiencing
financial
difficulty(1) $ 3,385 $ 4,550 $ 4,649 $ 4,683 $ 4,736
-------- --------- ------ ------ ------
Total non-performing
assets and accruing
modifications to
borrowers
experiencing
financial
difficulty(1) $ 30,248 $ 32,413 $28,507 $31,985 $ 32,081
======== ========= ====== ====== ======
Total non-performing
assets to total
assets 0.83% 0.88% 0.76% 0.87% 0.90%
(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,
2025 2024
------------------------------------------ ------------------------------------------
Average Average
Outstanding Average Outstanding Average
Balance Interest Yield/Rate(1) Balance Interest Yield/Rate(1)
(Dollars in thousands)
Interest-earning assets:
Loans(2) $ 2,572,286 $ 43,599 6.72% $ 2,261,426 $ 35,622 6.27%
Securities(3) 373,333 3,370 3.58% 507,510 4,860 3.81%
Other(4) 157,430 1,852 4.67% 179,701 2,404 5.32%
Total
interest-earning
assets 3,103,049 48,821 6.24% 2,948,637 42,886 5.79%
Non-interest-earning
assets 94,050 108,558
Total assets $ 3,197,099 $ 3,057,195
========= =========
Interest-bearing
liabilities:
NOW/IOLA $ 73,304 $ 131 0.71% $ 68,776 $ 119 0.69%
Money market 953,849 8,947 3.72% 761,130 8,329 4.35%
Savings(5) 121,352 28 0.09% 124,364 28 0.09%
Certificates of deposit 713,390 6,706 3.73% 783,335 8,104 4.12%
Total deposits 1,861,895 15,812 3.37% 1,737,605 16,580 3.80%
Borrowings 526,263 5,075 3.83% 573,316 5,576 3.87%
Total
interest-bearing
liabilities 2,388,158 20,887 3.47% 2,310,921 22,156 3.81%
Non-interest-bearing
liabilities:
Non-interest-bearing
demand 228,978 -- 191,355 --
Other
non-interest-bearing
liabilities 42,062 -- 47,875 --
Total
non-interest-bearing
liabilities 271,040 -- 239,230 --
--------- ------ --------- ------
Total liabilities 2,659,198 20,887 2,550,151 22,156
Total equity 537,901 507,044
Total liabilities and
total equity $ 3,197,099 3.47% $ 3,057,195 3.81%
========= =========
Net interest income $ 27,934 $ 20,730
====== ======
Net interest rate
spread(6) 2.77% 1.98%
Net interest-earning
assets(7) $ 714,891 $ 637,716
========= =========
Net interest margin(8) 3.57% 2.80%
Average interest-earning
assets to
interest-bearing
liabilities 129.93% 127.60%
(1) Annualized where appropriate.
(2) Loans include loans and mortgage loans held for sale, at fair value.
(3) Securities include available-for-sale securities and held-to-maturity securities.
(4) Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5) For the three months ended December 31, 2024, advance payments by borrowers for taxes and insurance in the amounts of $15.1 million, were reclassified to savings.
(6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8) Net interest margin represents net interest income divided by average total interest-earning assets.
Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets
For the Years Ended December 31,
-------------------------------------------------------------------------------
2025 2024
----------------------------------- --------------------------------------
Average Average
Outstanding Average Outstanding Average
Balance Interest Yield/Rate Balance Interest Yield/Rate(1)
------------- -------- ---------- ------------- -------- -------------
(Dollars in thousands)
Interest-earning assets:
Loans(1) $ 2,472,805 $162,512 6.57% $ 2,094,820 $130,512 6.23%
Securities(2) 427,033 16,050 3.76% 548,641 21,289 3.88%
Other(3) 141,438 6,963 4.92% 192,403 10,836 5.63%
--------- ------- --------- -------
Total
interest-earning
assets 3,041,276 185,525 6.10% 2,835,864 162,637 5.74%
Non-interest-earning
assets 100,790 107,017
--------- ---------
Total assets $ 3,142,066 $ 2,942,881
========= =========
Interest-bearing
liabilities:
NOW/IOLA $ 73,102 $ 483 0.66% $ 74,796 $ 662 0.89%
Money market 901,692 36,119 4.01% 654,521 30,148 4.61%
Savings(4) 119,335 112 0.09% 125,062 114 0.09%
Certificates of deposit 744,497 28,395 3.81% 676,306 27,768 4.11%
--------- ------- --------- -------
Total deposits 1,838,626 65,109 3.54% 1,530,685 58,692 3.83%
Borrowings 534,183 20,605 3.86% 670,982 27,465 4.09%
--------- ------- --------- -------
Total
interest-bearing
liabilities 2,372,809 85,714 3.61% 2,201,667 86,157 3.91%
Non-interest-bearing
liabilities:
Non-interest-bearing
demand 207,288 -- 191,155 --
Other
non-interest-bearing
liabilities 38,431 -- 50,259 --
--------- ------- --------- -------
Total
non-interest-bearing
liabilities 245,719 -- 241,414 --
--------- ------- --------- -------
Total liabilities 2,618,528 85,714 2,443,081 86,157
Total equity 523,538 499,800
--------- ---------
Total liabilities and
total equity $ 3,142,066 3.61% $ 2,942,881 3.91%
========= -------- ========= --------
Net interest income $ 99,811 $ 76,480
======= =======
Net interest rate
spread(5) 2.49% 1.83%
------------- -------------
Net interest-earning
assets(6) $ 668,467 $ 634,197
========= =========
Net interest margin(7) 3.28% 2.70%
Average interest-earning
assets to
interest-bearing
liabilities 128.17% 128.81%
(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) For the year ended December 31, 2024, advance payments by borrowers for taxes and insurance in the amounts of $14.0 million, were reclassified to savings.
(5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(6) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(7) Net interest margin represents net interest income divided by average total interest-earning assets.
Ponce Financial Group, Inc. and Subsidiaries
Other Data
As of
---------------------------------------------------------------
December September December
31, 30, June 30, March 31, 31,
2025 2025 2025 2025 2024
----------- ----------- ----------- ----------- -----------
Other Data
Common
shares
issued 24,886,711 24,886,711 24,886,711 24,886,711 24,886,711
Less
treasury
shares 750,785 885,586 901,911 920,520 925,497
---------- ---------- ---------- ---------- ----------
Common
shares
outstanding
at end of
period 24,135,926 24,001,125 23,984,800 23,966,191 23,961,214
========== ========== ========== ========== ==========
Book value
per common
share $ 13.12 $ 12.70 $ 12.34 $ 12.05 $ 11.71
Tangible
book value
per common
share $ 13.12 $ 12.70 $ 12.34 $ 12.05 $ 11.71
Contact:
Sergio Vaccaro
sergio.vaccaro@poncebank.net
718-931-9000
(END) Dow Jones Newswires
January 27, 2026 17:21 ET (22:21 GMT)