NEW YORK, April 24, 2026 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the "Company") (Nasdaq: PDLB), the holding company for Ponce Bank, National Association ("Ponce Bank" or the "Bank"), today announced results for the first quarter of 2026.
First Quarter 2026 Highlights (Compared to Prior Periods):
-- Net income available to common stockholders was $8.3 million, or $0.36
per diluted share for the three months ended March 31, 2026, as compared
to net income available to common stockholders of $9.9 million, or $0.42
per diluted share for the three months ended December 31, 2025 and net
income available to common stockholders of $5.7 million, or $0.25 per
diluted share for the three months ended March 31, 2025. Total net income
for the three months ended March 31, 2026 was $8.6 million. The Company
paid dividends of $0.3 million on its preferred stock during the three
months ended March 31, 2026.
-- Included in the $8.3 million of net income available to common
stockholders for the first quarter of 2026 results is $48.7 million in
total interest and dividend income and $2.0 million in non-interest
income, offset by $20.4 million in interest expense, $17.2 million in
non-interest expense, $2.7 million in provision for income taxes, $1.7
million in provision for credit losses and $0.3 million in dividends on
preferred shares.
-- Net interest income of $28.2 million for the first quarter of 2026
increased $0.3 million, or 1.05%, from the prior quarter and increased
$6.0 million, or 27.13%, from the same quarter last year.
-- Net interest margin was 3.61% for the first quarter of 2026, versus 3.57%
for the prior quarter and 2.98% for the same quarter last year.
-- Cash and equivalents were $117.2 million as of March 31, 2026, a decrease
of $8.9 million, or 7.06%, from $126.2 million as of December 31, 2025.
-- Securities totaled $350.7 million as of March 31, 2026, a decrease of
$14.5 million, or 3.97%, from $365.2 million as of December 31, 2025
primarily due to regular principal payments and the maturity of one
available-for-sale security in the amount of $3.0 million.
-- Net loans receivable were $2.70 billion as of March 31, 2026, an increase
of $99.4 million, or 3.82%, from $2.60 billion as of December 31, 2025.
-- Deposits were $2.13 billion as of March 31, 2026, an increase of $87.2
million, or 4.26%, from $2.05 billion as of December 31, 2025.
President and Chief Executive Officer's Comments
Carlos P. Naudon, Ponce Financial Group, Inc.'s President and CEO, stated "Our disciplined execution continues to serve Ponce well. Our diluted earnings per share of $0.36 this quarter is up 44% vs the same quarter last year and our book value per share of $13.49 is up $1.44 or 12% over the same period. Net interest margin is up 4 basis points versus last quarter and 63 basis points vs the same quarter last year. Our non-performing assets went down this quarter by 22 basis points and now stand at 62 basis points of total assets. 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 business activity during the quarter and by our loan and deposit growth. We continue to make progress towards our commitments under the U.S. Treasury's Emergency Capital Investment Program and we're one quarter away from achieving 16 quarters of a cumulative deep impact lending percentage of more than 60%. After 15 quarters, including the quarter ended March 31, 2026, we are at 82% deep impact lending."
The table below indicates the Key Metrics at or for the three months ended:
At or for the Three Months Ended
------------------------------------------------------------
March December September June March
31, 31, 30, 30, 31,
2026 2025 2025 2025 2025
------- -------- --------- ------ ------
Performance
Ratios:
Return on average
assets (1) 1.07% 1.26% 0.82% 0.79% 0.77%
Return on common
equity (1) 10.37% 12.50% 8.10% 7.88% 7.97%
Net interest
margin (1) (2) 3.61% 3.57% 3.30% 3.27% 2.98%
Non-interest
expense to
average assets
(1) 2.14% 2.06% 2.10% 2.18% 2.19%
Efficiency ratio
(3) 56.96% 52.95% 62.15% 63.69% 68.70%
Capital Ratios:
Total capital to
risk-weighted
assets (Ponce
Financial Group) 21.23% 23.00% 24.08% 22.65% 22.84%
Common equity Tier
1 capital to
risk-weighted
assets (Ponce
Financial Group) 12.11% 12.98% 13.39% 12.49% 12.51%
Tier 1 capital to
total assets
(Ponce Financial
Group) 17.22% 17.27% 17.33% 17.13% 16.84%
Total capital to
risk-weighted
assets (Bank
only) 20.00% 21.63% 21.79% 21.22% 21.38%
Common equity Tier
1 capital to
risk-weighted
assets (Bank
only) 18.97% 20.53% 20.66% 20.15% 20.35%
Tier 1 capital to
total assets
(Bank only) 16.09% 16.12% 16.08% 15.99% 15.61%
Asset Quality
Ratios:
Allowance for
credit losses on
loans as a
percentage of
total loans 0.96% 0.97% 0.98% 0.97% 0.96%
Allowance for
credit losses on
loans as a
percentage of
nonperforming
loans 128.93% 94.74% 88.88% 101.01% 84.15%
Net (charge-offs)
recoveries to
average
outstanding loans
(1) (0.08%) (0.13%) (0.03%) (0.04%) (0.04%)
Non-performing
loans as a
percentage of
total assets 0.62% 0.83% 0.88% 0.76% 0.88%
Other:
Number of offices 17 17 18 17 18
Number of
full-time
equivalent
employees 218 216 209 206 211
(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 March 31, 2026 was $8.6 million compared to net income of $10.1 million for the three months ended December 31, 2025 and net income of $6.0 million for the three months ended March 31, 2025.
The $1.5 million decrease of net income for the three months ended March 31, 2026 compared to the three months ended December 31, 2025 was attributed mainly to a decrease of $1.4 million in non-interest income and increases of $0.6 million non-interest expense and $0.6 million in provision for credit losses, offset by an increase of $0.3 million in net interest income and a decrease of $0.8 million in provision for income taxes.
The $2.7 million increase of net income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was largely due to an increase of $6.0 million in net interest income, offset by increases of $1.9 million in provision for credit losses, $0.7 million in provision for income taxes and $0.4 million in non-interest expense and a decrease of $0.3 million in non-interest income.
Net Interest Income and Net Interest Margin
Net interest income for the three months ended March 31, 2026, increased $0.3 million, or 1.05%, to $28.2 million compared to $27.9 million for the three months ended December 31, 2025 and increased $6.0 million, or 27.13%, compared to $22.2 million for the three months ended March 31, 2025.
The $0.3 million increase in net interest income from the three months ended December 31, 2025 was attributable to decreases of $0.5 million in total interest expense and $0.2 million in total interest and dividend income. The $6.0 million increase in net interest income from the three months ended March 31, 2025 was attributable to an increase of $4.7 million in total interest and dividend income and a decrease of $1.4 million in total interest expense.
Net interest margin was 3.61% for the three months ended March 31, 2026 compared to 3.57% for the prior quarter, an increase of 4bps and 2.98% for the same period last year, an increase of 63bps.
Non-interest Income
Non-interest income for the three months ended March 31, 2026, was $2.0 million, a decrease of $1.4 million, or 41.30%, compared to $3.5 million for the three months ended December 31, 2025, a decrease of $0.3 million, or 14.24%, compared to the three months ended March 31, 2025.
The $1.4 million decrease in non-interest income from the three months ended December 31, 2025 was largely attributable to a decrease of $0.5 million in other non-interest income, grant income of $0.4 million which had been recognized in the prior quarter and a decrease of $0.4 million in late and prepayment charges.
The $0.3 million decrease in non-interest income from the three months ended March 31, 2025 was largely attributable to a decrease of $0.4 million in income on sale of SBA loans.
Non-interest Expense
Non-interest expense for the three months ended March 31, 2026 was $17.2 million, an increase of $0.6 million, or 3.64%, compared to $16.6 million for the three months ended December 31, 2025 and an increase of $0.4 million, or 2.08%, compared to $16.9 million for the three months ended March 31, 2025.
The $0.6 million increase in non-interest expense from the three months ended December 31, 2025 was mainly attributable to increases of $0.6 million in compensation and benefits, $0.3 million in federal deposit insurance and regulatory assessment and $0.1 million in marketing and promotional expenses, partially offset by a decrease of $0.4 million in occupancy and equipment.
The $0.4 million increase in non-interest expense from the three months ended March 31, 2025 was mainly attributable to increases of $0.8 million in compensation and benefit and $0.1 million in marketing and promotional expenses, partially offset by decreases of $0.3 million in direct loan expenses, $0.2 million in occupancy and equipment and $0.2 million in other operating expenses.
Credit Quality:
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $23.6 million at March 31, 2026 compared to $30.2 million at December 31, 2025 and $32.0 million at March 31, 2025.
During the three months ended March 31, 2026, a credit loss provision of $1.7 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. During the three months ended 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 March 31, 2025, a credit loss benefit of $0.3 million on loans was recorded, consisting of $0.7 million charged on the funded portion on loans and a benefit of $1.0 million on the unfunded portion on loans.
Balance Sheet Summary
Total assets increased $76.8 million, or 2.38%, to $3.30 billion as of March 31, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $99.4 million in net loans receivable, $2.0 million in other assets, $1.4 million in accrued interest receivable and $0.2 million in deferred tax assets, partially offset by decreases of $9.5 million in held-to-maturity securities, $8.9 million in cash and cash equivalents, $5.0 million in available-for-sale securities, $1.3 million in mortgage loans held for sale, $1.1 million in Federal Home Loan Bank of New York stock and $0.5 million in premises and equipment, net.
Total liabilities increased $67.0 million, or 2.50%, to $2.75 billion as of March 31, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $87.2 million in deposits, $4.2 million in other liabilities and $0.6 million in accrued interest payable, partially offset by a decrease of $25.0 million in borrowings.
Total stockholders' equity increased $9.8 million, or 1.81%, to $551.4 million as of March 31, 2026, from $541.5 million as of December 31, 2025. The $9.8 million increase in stockholders' equity was largely attributable to $8.6 million in net income, $0.6 million impact to additional paid in capital as a result of share-based compensation, $0.6 million from release of ESOP shares and $0.2 million from exercise of stock options and $0.1 million in other comprehensive income, offset by $0.3 million related to the dividend paid on preferred shares during the quarter ended March 31, 2026.
About Ponce Financial Group, Inc.
Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.'s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank. N.A. also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, Federal Home Loan Bank stock and Federal Reserve Bank stock.
Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as "believes," "will," "would," "expects," "project," "may," "could," "developments," "strategic," "launching," "opportunities," "anticipates, " "estimates," "intends," "plans," "targets" and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank, N.A. operates, including changes that adversely affect borrowers' ability to service and repay Ponce Bank, N.A.'s loans; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the global economy, including negative changes that may arise from armed conflict and geopolitical instability; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank, N.A.'s market area; Ponce Bank, N.A.'s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; 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
March 31, 31, 30, June 30, March 31,
2026 2025 2025 2025 2025
ASSETS
Cash and due from
banks:
Cash $ 27,429 $ 28,511 $ 29,296 $ 35,767 $ 32,113
Interest-bearing
deposits 89,817 97,643 117,283 90,872 97,780
Total cash and
cash
equivalents 117,246 126,154 146,579 126,639 129,893
Available-for-sale
securities, at fair
value 87,150 92,196 94,822 96,562 103,570
Held-to-maturity
securities, at
amortized cost 263,514 272,982 285,125 336,879 358,024
Placement with banks 249 249 249 249 249
Mortgage loans held
for sale, at fair
value 2,127 3,388 5,794 5,703 8,567
Loans receivable,
net 2,698,649 2,599,258 2,490,046 2,458,712 2,370,931
Accrued interest
receivable 19,274 17,905 18,903 19,126 19,008
Premises and
equipment, net 15,159 15,638 16,129 16,067 16,417
Right of use assets 27,633 27,583 28,295 28,806 29,496
Federal Home Loan
Bank of New York
stock (FHLBNY), at
cost 28,180 29,309 25,945 26,620 25,807
Federal Reserve Bank
of New York stock
(FRBNY), at cost 10,706 10,698 -- -- --
Deferred tax assets 11,729 11,501 12,402 12,143 11,629
Other assets 19,141 17,109 32,790 26,363 16,245
Total assets $3,300,757 $3,223,970 $3,157,079 $3,153,869 $3,089,836
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Liabilities:
Deposits $2,133,795 $2,046,635 $2,063,081 $2,053,151 $2,017,848
Borrowings 571,100 596,100 521,100 536,100 521,100
Operating lease
liabilities 29,429 29,353 30,028 30,501 31,126
Accrued interest
payable 4,338 3,788 4,372 4,161 4,628
Other liabilities 10,732 6,545 8,663 8,868 1,248
Total
liabilities 2,749,394 2,682,421 2,627,244 2,632,781 2,575,950
Commitments and
contingencies
Stockholders'
Equity:
Preferred stock,
$0.01 par value;
100,000,000
shares
authorized 225,000 225,000 225,000 225,000 225,000
Common stock,
$0.01 par value;
200,000,000
shares
authorized 249 249 249 249 249
Treasury stock,
at cost (5,738) (6,164) (7,270) (7,404) (7,641)
Additional
paid-in-capital 209,219 208,604 208,909 208,275 207,888
Retained earnings 143,674 135,332 125,477 119,250 113,432
Accumulated other
comprehensive
loss (10,680) (10,820) (11,586) (13,047) (13,515)
Unearned
compensation --
ESOP (10,361) (10,652) (10,944) (11,235) (11,527)
Total
stockholders'
equity 551,363 541,549 529,835 521,088 513,886
Total
liabilities
and
stockholders'
equity $3,300,757 $3,223,970 $3,157,079 $3,153,869 $3,089,836
========= ========= ========= ========= =========
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended
December September
March 31, 31, 30, June 30, March 31,
2026 2025 2025 2025 2025
Interest and
dividend income:
Interest on
loans
receivable $ 43,982 $ 43,599 $ 41,486 $ 40,291 $ 37,136
Interest on
deposits due
from banks 770 1,209 978 807 1,668
Interest and
dividend on
securities and
FHLBNY stock 3,910 4,013 4,383 4,762 5,193
Total
interest and
dividend
income 48,662 48,821 46,847 45,860 43,997
---------- ---------- ---------- ---------- ----------
Interest expense:
Interest on
certificates
of deposit 6,415 6,706 6,553 7,382 7,754
Interest on
other
deposits 8,630 9,106 9,996 9,058 8,554
Interest on
borrowings 5,391 5,075 5,050 4,994 5,486
Total
interest
expense 20,436 20,887 21,599 21,434 21,794
---------- ---------- ---------- ---------- ----------
Net interest
income 28,226 27,934 25,248 24,426 22,203
Provision
(benefit) for
credit losses 1,656 1,078 1,364 1,626 (285)
Net interest
income after
provision
(benefit)
for credit
losses 26,570 26,856 23,884 22,800 22,488
---------- ---------- ---------- ---------- ----------
Non-interest
income:
Service charges
and fees 539 542 539 511 525
Brokerage
commissions -- 23 8 -- 4
Late and
prepayment
charges 726 1,173 385 530 697
Income on sale
of mortgage
loans 120 139 166 169 148
Income on sale
of SBA loans -- -- -- -- 404
Grant income -- 428 429 428 --
Other 657 1,174 (35) 422 603
Total
non-interest
income 2,042 3,479 1,492 2,060 2,381
---------- ---------- ---------- ---------- ----------
Non-interest
expense:
Compensation
and benefits 8,663 8,113 7,868 7,627 7,780
Occupancy and
equipment 3,672 4,033 3,934 3,907 3,913
Data processing
expenses 1,219 1,223 1,296 1,188 1,152
Direct loan
expenses 121 116 155 241 388
Insurance and
surety bond
premiums 333 324 318 297 315
Office
supplies,
telephone and
postage 193 186 170 174 170
Professional
fees 1,346 1,392 1,409 1,367 1,364
Marketing and
promotional
expenses 228 94 184 266 83
Federal deposit
insurance and
regulatory
assessment 409 97 266 546 461
Other operating
expenses 1,056 1,056 1,018 1,256 1,262
Total
non-interest
expense 17,240 16,634 16,618 16,869 16,888
---------- ---------- ---------- ---------- ----------
Income before
income
taxes 11,372 13,701 8,758 7,991 7,981
Provision for
income taxes 2,749 3,565 2,250 1,891 2,022
Net income $ 8,623 $ 10,136 $ 6,508 $ 6,100 $ 5,959
Dividends on
preferred shares 281 281 281 282 281
Net income
available to
common
stockholders $ 8,342 $ 9,855 $ 6,227 $ 5,818 $ 5,678
========== ========== ========== ========== ==========
Earnings per
common share:
Basic $ 0.36 $ 0.43 $ 0.27 $ 0.26 $ 0.25
Diluted $ 0.36 $ 0.42 $ 0.27 $ 0.25 $ 0.25
========== ========== ========== ========== ==========
Weighted average
common shares
outstanding:
Basic 22,988,317 22,837,044 22,766,195 22,716,615 22,662,916
Diluted 23,331,314 23,263,708 23,135,448 22,947,769 22,876,740
========== ========== ========== ========== ==========
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
For the Three Months Ended March 31,
2026 2025 Variance $ Variance %
----------- ----------- ------------ ----------
Interest and
dividend income:
Interest on
loans
receivable $ 43,982 $ 37,136 $ 6,846 18.43%
Interest on
deposits due
from banks 770 1,668 (898) (53.84%)
Interest and
dividend on
securities and
FHLBNY stock 3,910 5,193 (1,283) (24.71%)
Total interest
and dividend
income 48,662 43,997 4,665 10.60%
Interest expense:
Interest on
certificates of
deposit 6,415 7,754 (1,339) (17.27%)
Interest on
other deposits 8,630 8,554 76 0.89%
Interest on
borrowings 5,391 5,486 (95) (1.73%)
Total interest
expense 20,436 21,794 (1,358) (6.23%)
Net interest
income 28,226 22,203 6,023 27.13%
Provision (benefit)
for credit losses 1,656 (285) 1,941 (681.05%)
Net interest
income after
provision
(benefit) for
credit
losses 26,570 22,488 4,082 18.15%
Non-interest
income:
Service charges
and fees 539 525 14 2.67%
Brokerage
commissions -- 4 (4) (100.00%)
Late and
prepayment
charges 726 697 29 4.16%
Income on sale
of mortgage
loans 120 148 (28) (18.92%)
Income on sale
of SBA loans -- 404 (404) (100.00%)
Other 657 603 54 8.96%
Total
non-interest
income 2,042 2,381 (339) (14.24%)
Non-interest
expense:
Compensation and
benefits 8,663 7,780 883 11.35%
Occupancy and
equipment 3,672 3,913 (241) (6.16%)
Data processing
expenses 1,219 1,152 67 5.82%
Direct loan
expenses 121 388 (267) (68.81%)
Insurance and
surety bond
premiums 333 315 18 5.71%
Office supplies,
telephone and
postage 193 170 23 13.53%
Professional
fees 1,346 1,364 (18) (1.32%)
Marketing and
promotional
expenses 228 83 145 174.70%
Federal deposit
insurance and
regulatory
assessments 409 461 (52) (11.28%)
Other operating
expenses 1,056 1,262 (206) (16.32%)
Total
non-interest
expense 17,240 16,888 352 2.08%
Income before
income taxes 11,372 7,981 3,391 42.49%
Provision for
income taxes 2,749 2,022 727 35.95%
Net income $ 8,623 $ 5,959 $ 2,664 44.71%
Dividends on
preferred shares 281 281 -- 0.00%
Net income
available to
common
stockholders $ 8,342 $ 5,678 $ 2,664 46.92%
========== ========== ======== ----------
Earnings per
common share:
Basic $ 0.36 $ 0.25 $ 0.11 44.00%
Diluted $ 0.36 $ 0.25 $ 0.11 44.00%
========== ========== ======== ==========
Weighted average
common shares
outstanding:
Basic 22,988,317 22,662,916 325,401 1.44%
Diluted 23,331,314 22,876,740 454,574 1.99%
========== ========== ======== ==========
Ponce Financial Group, Inc. and Subsidiaries
Loans Receivable excluding Mortgage Loans Held for
Sale
As of
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
---------- ------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
(Dollars in thousands)
Mortgage loans:
1-4 family
residential $ 431,377 15.82% $ 434,374 16.54% $ 444,602 17.67% $ 452,350 18.21% $ 463,542 19.37%
Multifamily
residential 915,333 33.58% 756,542 28.83% 688,574 27.39% 693,670 27.96% 675,541 28.24%
Nonresidential
properties 534,256 19.60% 526,210 20.05% 436,175 17.35% 404,512 16.30% 390,681 16.33%
Construction and
land 763,990 28.03% 854,096 32.54% 886,369 35.25% 883,462 35.59% 815,425 34.08%
Total mortgage
loans 2,644,956 97.03% 2,571,222 97.96% 2,455,720 97.66% 2,433,994 98.06% 2,345,189 98.02%
Non-mortgage
loans:
Business loans 80,366 2.95% 53,063 2.02% 58,012 2.31% 47,372 1.91% 46,329 1.94%
Consumer loans 596 0.02% 625 0.02% 727 0.03% 840 0.03% 997 0.04%
Total
non-mortgage
loans 80,962 2.97% 53,688 2.04% 58,739 2.34% 48,212 1.94% 47,326 1.98%
--------- ------- --------- ------- --------- ------- --------- ------- --------- -------
Total loans,
gross 2,725,918 100.00% 2,624,910 100.00% 2,514,459 100.00% 2,482,206 100.00% 2,392,515 100.00%
======= ======= ======= ======= =======
Net deferred loan
origination
costs (1,031) (203) 351 606 1,390
Allowance for
credit losses on
loans (26,238) (25,449) (24,764) (24,100) (22,974)
Loans, net $2,698,649 $2,599,258 $2,490,046 $2,458,712 $2,370,931
Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans
For the Three Months Ended
March December September June March
31, 31, 30, 30, 31,
2026 2025 2025 2025 2025
(Dollars in thousands)
Allowance for
credit losses on
loans at
beginning of the
period $25,449 $ 24,764 $ 24,100 $22,974 $22,502
Provision for
credit losses on
loans 1,293 1,526 864 1,348 731
Charge-offs:
Mortgage loans:
1-4 family
residential -- (32) -- -- (38)
Non-mortgage
loans:
Business (504) (801) (200) (222) (222)
Consumer -- (44) -- -- (3)
Total
charge-offs (504) (877) (200) (222) (263)
Recoveries:
Mortgage loans:
1-4 family
residential -- 1 -- -- --
Non-mortgage
loans:
Business -- 35 -- -- 4
Consumer -- -- -- -- --
Total
recoveries -- 36 -- -- 4
Net (charge-offs)
recoveries (504) (841) (200) (222) (259)
Allowance for
credit losses on
loans at end of
the period $26,238 $ 25,449 $ 24,764 $24,100 $22,974
====== ======== ========= ====== ======
Ponce Financial Group, Inc. and Subsidiaries
Deposits
As of
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
---------- ------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
(Dollars in thousands)
Demand $ 241,012 11.29% $ 208,250 10.18% $ 192,595 9.34% $ 197,671 9.63% $ 212,139 10.51%
Interest-bearing
deposits:
NOW/IOLA
accounts 78,192 3.66% 84,012 4.10% 75,051 3.64% 63,626 3.10% 74,430 3.69%
Money market
accounts 811,982 38.05% 779,532 38.09% 821,844 39.84% 790,939 38.52% 692,753 34.33%
Reciprocal
deposits 162,926 7.64% 152,630 7.46% 154,548 7.49% 136,693 6.66% 141,838 7.03%
Savings accounts
(1) 118,373 5.55% 117,708 5.75% 117,401 5.69% 113,701 5.53% 119,023 5.90%
Total NOW,
money market,
reciprocal
and savings
accounts 1,171,473 54.90% 1,133,882 55.40% 1,168,844 56.66% 1,104,959 53.81% 1,028,044 50.95%
------- ------- ------- ------- -------
Certificates of
deposit of
$250K or more 258,093 12.10% 202,500 9.89% 209,819 10.17% 220,671 10.75% 219,721 10.89%
Brokered
certificates of
deposit (2) 54,553 2.56% 67,942 3.32% 67,952 3.29% 69,531 3.39% 84,531 4.19%
Listing service
deposits (2) 1,243 0.06% 4,150 0.20% 4,150 0.20% 6,140 0.30% 6,140 0.30%
All other
certificates of
deposit less
than $250K 407,421 19.09% 429,911 21.01% 419,721 20.34% 454,179 22.12% 467,273 23.16%
Total
certificates
of deposit 721,310 33.81% 704,503 34.42% 701,642 34.00% 750,521 36.56% 777,665 38.54%
------- ------- ------- ------- -------
Total
interest-bearing
deposits 1,892,783 88.71% 1,838,385 89.82% 1,870,486 90.66% 1,855,480 90.37% 1,805,709 89.49%
------- ------- ------- ------- -------
Total deposits $2,133,795 100.00% $2,046,635 100.00% $2,063,081 100.00% $2,053,151 100.00% $2,017,848 100.00%
======= ======= ======= ======= =======
(1) As of June 30, 2025 and March 31, 2025, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million and $12.9 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
March December September June March
31, 31, 30, 30, 31,
2026 2025 2025 2025 2025
(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family
residential $ 3,158 $ 4,427 $ 3,176 $ 1,859 $ 2,475
Multifamily
residential 9,228 13,112 14,202 11,703 9,788
Nonresidential
properties -- -- -- 405 --
Construction and
land 7,061 8,247 8,907 8,907 14,159
Non-mortgage loans:
Business 427 667 880 276 170
Consumer -- -- -- -- --
Total
non-accrual
loans (not
including
non-accruing
modifications
to borrowers
experiencing
financial
difficulty)
(1) $19,874 $ 26,453 $ 27,165 $23,150 $26,592
====== ====== ======= ====== ======
Non-accruing
modifications to
borrowers
experiencing
financial difficulty
(1) :
Mortgage loans:
1-4 family
residential 477 410 698 708 710
Total
non-accruing
modifications
to borrowers
experiencing
financial
difficulty
(1) 477 410 698 708 710
Total
non-performing
assets (2) $20,351 $ 26,863 $ 27,863 $23,858 $27,302
====== ====== ======= ====== ======
Accruing
modifications to
borrowers
experiencing
financial difficulty
(1) :
Mortgage loans:
1-4 family
residential 2,481 2,574 3,725 3,791 3,830
Multifamily
residential -- -- -- -- --
Nonresidential
properties 613 621 629 655 644
Construction and
land -- -- -- -- --
Non-mortgage loans:
Business 185 190 196 203 209
Consumer -- -- -- -- --
Total accruing
modifications
to borrowers
experiencing
financial
difficulty
(1) $ 3,279 $ 3,385 $ 4,550 $ 4,649 $ 4,683
------ ------ ------- ------ ------
Total non-performing
assets and accruing
modifications to
borrowers
experiencing
financial
difficulty (1) $23,630 $ 30,248 $ 32,413 $28,507 $31,985
====== ====== ======= ====== ======
Total non-performing
assets to total
assets 0.62% 0.83% 0.88% 0.76% 0.87%
(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 March 31,
2026 2025
------------------------------------- -------------------------------------
Average Average
Outstanding Average Outstanding Average
Yield/Rate Yield/Rate
Balance Interest (1) Balance Interest (1)
(Dollars in thousands)
Interest-earning assets:
Loans (2) $ 2,680,018 $ 43,982 6.66% $ 2,369,433 $ 37,136 6.36%
Securities (3) 360,452 3,248 3.65% 467,560 4,521 3.92%
Other (4) 129,585 1,432 4.48% 186,021 2,340 5.10%
Total
interest-earning
assets 3,170,055 48,662 6.23% 3,023,014 43,997 5.90%
Non-interest-earning
assets 93,219 109,166
Total assets $ 3,263,274 $ 3,132,180
========= =========
Interest-bearing
liabilities:
NOW/IOLA $ 77,833 $ 134 0.70% $ 72,354 $ 115 0.64%
Money market 949,007 8,468 3.62% 827,948 8,411 4.12%
Savings (5) 120,205 28 0.09% 117,616 28 0.10%
Certificates of deposit 718,301 6,415 3.62% 794,270 7,754 3.96%
Total deposits 1,865,346 15,045 3.27% 1,812,188 16,308 3.65%
Borrowings 584,100 5,391 3.74% 568,601 5,486 3.91%
Total
interest-bearing
liabilities 2,449,446 20,436 3.38% 2,380,789 21,794 3.71%
Non-interest-bearing
liabilities:
Non-interest-bearing
demand 221,056 -- 196,627 --
Other
non-interest-bearing
liabilities 44,038 -- 43,915 --
Total
non-interest-bearing
liabilities 265,094 -- 240,542 --
--------- ------ --------- ------
Total liabilities 2,714,540 20,436 2,621,331 21,794
Total equity 548,735 510,849
Total liabilities and
total equity $ 3,263,275 3.38% $ 3,132,180 3.71%
========= =========
Net interest income $ 28,226 $ 22,203
====== ======
Net interest rate spread
(6) 2.85% 2.19%
Net interest-earning
assets (7) $ 720,609 $ 642,225
========= =========
Net interest margin (8) 3.61% 2.98%
Average interest-earning
assets to
interest-bearing
liabilities 129.42% 126.98%
(1) Annualized where appropriate.
(2) Loans include loans and mortgage loans held for sale, at fair value.
(3) Securities include available-for-sale securities and held-to-maturity securities.
(4) Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5) For the three months ended March 31, 2025, advance payments by borrowers for taxes and insurance in the amounts of $12.4 million, were reclassified to savings.
(6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8) Net interest margin represents net interest income divided by average total interest-earning assets.
Ponce Financial Group, Inc. and Subsidiaries
Other Data
As of
December September
March 31, 31, 30, June 30, March 31,
2026 2025 2025 2025 2025
Other Data
Common
shares
issued 24,886,711 24,886,711 24,886,711 24,886,711 24,886,711
Less
treasury
shares 698,810 750,785 885,586 901,911 920,520
Common
shares
outstanding
at end of
period 24,187,901 24,135,926 24,001,125 23,984,800 23,966,191
========== ========== ========== ========== ==========
Book value
per common
share $ 13.49 $ 13.12 $ 12.70 $ 12.34 $ 12.05
Tangible
book value
per common
share (1) $ 13.49 $ 13.12 $ 12.70 $ 12.34 $ 12.05
(1) Tangible book value per common share is a non-GAAP
financial measure and is calculated by dividing tangible
common equity by common shares outstanding. Tangible
common equity is defined as total shareholders' equity
less goodwill and other intangible assets, net of
applicable deferred taxes. The Company believes that
tangible book value per common share is a useful measure
for investors, regulators, and analysts because it
reflects the Company's capital position excluding
the impact of goodwill and other intangible assets,
which may not be realizable in a liquidation scenario.
This measure is commonly used in the banking industry
to assess financial condition and capital adequacy.
Tangible book value per common share should not be
considered a substitute for book value per common
share, which is calculated in accordance with GAAP,
and the Company's definition of tangible book value
per common share may differ from similarly titled
measures used by other companies. During the periods
presented, the Company did not make any adjustments
for goodwill and other intangible assets, so tangible
book value per common share is equal to the book value
per common share as calculated in accordance with
GAAP.
Contact:
Sergio Vaccaro
Sergio.vaccaro@poncebank.net
718-931-9000
(END) Dow Jones Newswires
April 24, 2026 07:32 ET (11:32 GMT)