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Ponce Financial Group, Inc. Reports Fourth Quarter 2023 Results

January 30, 2024 at 4:53 PM EST

NEW YORK, Jan. 30, 2024 (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 2023.

Fourth Quarter 2023 Highlights (Compared to Prior Periods):

  • Net income of $0.5 million, or $0.02 per diluted share for the three months ended December 31, 2023, as compared to net income of $2.6 million, or $0.12 per diluted share for the three months ended September 30, 2023 and net loss of ($9.2) million, or ($0.40) per diluted share for the three months ended December 31, 2022.
  • Included in the $0.5 million of net income for the fourth quarter of 2023 results is $35.0 million in interest and dividend income and $1.3 million in non-interest income, offset by $17.9 million in non-interest expense and $17.8 million in interest expense.
  • Net interest income of $17.2 million for the fourth quarter of 2023 increased $0.7 million, or 3.96%, from the prior quarter and increased $1.0 million, or 6.38%, from the same quarter last year.
  • Net interest margin was 2.66% for the fourth quarter of 2023, increased from 2.58% for the prior quarter and decreased from 2.97% for the same quarter last year.

Full Year 2023 Highlights (Compared to 2022):

  • Net income of $3.4 million, or $0.15 per diluted share for the year ended December 31, 2023, as compared to a net loss of ($30.0) million, or ($1.32) per diluted share for the year ended December 31, 2022.
  • Net interest income for the year ended December 31, 2023 was $65.3 million, decreased $1.3 million, or 2.01%, compared to $66.6 million for the year ended December 31, 2022.
  • Non-interest income for the year ended December 31, 2023 was $10.2 million, increased $3.8 million, or 59.26%, compared to $6.4 million for the year ended December 31, 2022.
  • Non-interest expense for the year ended December 31, 2023 was $68.7 million, decreased $17.2 million, or 19.99%, compared to $85.8 million for the year ended December 31, 2022.
  • Net interest margin was 2.66% for the year ended December 31, 2023, decreased from 3.66% for the same period last year.
  • Cash and equivalents were $139.2 million as of December 31, 2023, increased $84.8 million, or 156.05%, from December 31, 2022, as we decided to keep ample sources of liquidity at hand while taking advantage of the positive spread between our interest bearing overnight deposits at the Fed and borrowing costs under the Bank Term Funding Program ("BTFP").
  • Securities totaled $581.7 million as of December 31, 2023, decreased $58.7 million, or 9.16%, from December 31, 2022 primarily due to a call on one of the securities amounting to $10.0 million and regular principal payments.
  • Net loans receivable were $1.90 billion as of December 31, 2023, increased $402.8 million, or 26.97%, from December 31, 2022.
  • Deposits were $1.51 billion as of December 31, 2023, increased $255.2 million, or 20.38%, from December 31, 2022.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group’s President and CEO, stated “We were pleased to see continued improvement during the quarter: Net interest income grew for the third quarter in a row and, despite the challenging operating environment, net interest income was also up quarter over quarter. Book value per share was $11.20 at year-end, up $0.21 quarter over quarter and up $0.43 versus last year. Total equity per share now stands at $20.66. Additionally, in order to better manage our interest risk, during the fourth quarter, we entered into two pay fixed, receiver SOFR swaps, one with notional amount of $150 million for 2 years and one with notional amount of $100 million for 3 years.

We continue to show strong levels of capital and liquidity. On the capital front, our total capital ratio at Ponce Bank stands at 23.30%, well in excess of regulatory requirements. In terms of liquidity, our liquid assets plus borrowing capacity at the Federal Home Loan Bank of New York ("FHLBNY") stands at $778.8 million, two times of our uninsured deposits of $389.4 million.

We remain committed to the communities we serve, our Minority Depository Institution (“MDI”)/Community Development Financial Institutions ("CDFI") status and continuing 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 were able to grow both loans and deposits by over $100 million this quarter. We continue to see resiliency of our client base, but we’ll prioritize sound underwriting practices and balance sheet management even at the expense of loan growth.”

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):   2023     2023     2023     2023     2022  
Return on average assets (1)     0.08 %     0.39 %     (0.01 %)     0.06 %     (1.62 %)
Return on average equity (1)     0.42 %     2.11 %     (0.07 %)     0.27 %     (7.28 %)
Net interest rate spread (1) (2)     1.63 %     1.58 %     1.66 %     1.78 %     2.13 %
Net interest margin (1) (3)     2.66 %     2.58 %     2.65 %     2.75 %     2.97 %
Non-interest expense to average assets (1)     2.66 %     2.58 %     2.65 %     2.79 %     2.78 %
Efficiency ratio (4)     96.83 %     78.11 %     96.15 %     95.88 %     94.95 %
Average interest-earning assets to average interest- bearing liabilities     137.49 %     137.92 %     141.14 %     148.20 %     152.30 %
Average equity to average assets     18.25 %     18.32 %     19.21 %     20.91 %     22.32 %


    At or for the Three Months Ended  
    December 31,     September 30,     June 30,     March 31,     December 31,  
Capital Ratios (Annualized):   2023     2023     2023     2023     2022  
Total capital to risk weighted assets (Bank only)     23.30 %     25.10 %     26.30 %     27.54 %     30.53 %
Tier 1 capital to risk weighted assets (Bank only)     22.05 %     23.85 %     25.05 %     26.28 %     29.26 %
Common equity Tier 1 capital to risk-weighted assets (Bank only)     22.05 %     23.85 %     25.05 %     26.28 %     29.26 %
Tier 1 capital to average assets (Bank only)     17.49 %     17.51 %     17.95 %     19.51 %     20.47 %


    At or for the Three Months Ended  
    December 31,     September 30,     June 30,     March 31,     December 31,  
Asset Quality Ratios (Annualized):   2023     2023     2023     2023     2022  
Allowance for loan losses as a percentage of total loans     1.36 %     1.51 %     1.64 %     1.77 %     2.27 %
Allowance for loan losses as a percentage of nonperforming loans     152.99 %     169.49 %     167.06 %     149.73 %     252.33 %
Net (charge-offs) recoveries to average outstanding loans (1)     (0.24 %)     (0.34 %)     (0.41 %)     (0.57 %)     (0.85 %)
Non-performing loans as a percentage of total gross loans     0.89 %     0.89 %     0.98 %     1.18 %     0.90 %
Non-performing loans as a percentage of total assets     0.62 %     0.62 %     0.63 %     0.76 %     0.59 %
Total non-performing assets as a percentage of total assets     0.62 %     0.62 %     0.63 %     0.76 %     0.59 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)     0.81 %     0.82 %     0.83 %     0.93 %     0.78 %

(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)   For periods in 2023, 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. For the period in 2022, the balances only include troubled debt restructurings.

Summary of Results of Operations

Net income for the three months ended December 31, 2023 was $0.5 million compared to net income of $2.6 million for the three months ended September 30, 2023 and a net loss of ($9.2) million for the three months ended December 31, 2022. The decrease of net income for the three months ended December 31, 2023 compared to the three months ended September 30, 2023 was attributed mainly to a decrease in non-interest income and an increase in non-interest expense, partially offset by a decrease in provision for income taxes and, increases in a benefit for credit losses and net interest income. The increase of net income for the three months ended December 31, 2023 compared to the three months ended December 31, 2022 was largely due to increases in benefit for credit losses, net interest income and non-interest income, partially offset by increases in provision for income taxes and non-interest expense.

Net income for the year ended December 31, 2023 was $3.4 million compared to a net loss of ($30.0) million for the year ended December 31, 2022. The increase in net income was attributable to an increase in benefit for credit losses and a decrease in non-interest expense and an increase in non-interest income, partially offset by an increase in provision for income taxes and a decrease in net interest income.

Net Interest Income and Net Margin

Net interest income for the three months ended December 31, 2023, increased $0.7 million, or 3.96%, to $17.2 million compared to $16.5 million for the three months ended September 30, 2023 and increased $1.0 million, or 6.38%, compared to $16.2 million for the three months ended December 31, 2022.

Net interest margin was 2.66% for the three months ended December 31, 2023 compared to 2.58% for the prior quarter, an increase of 8bps and 2.97% for the same period last year, a decrease of 31bps. The decrease in net interest margin for the three months ended December 31, 2023 when compared to the same period last year was a result of an increase in the cost of funds driven by higher interest rates.

Non-interest Income

Non-interest income for the three months ended December 31, 2023, was $1.3 million, a decrease of $4.3 million, or 77.16%, compared to the three months ended September 30, 2023 and an increase of $0.8 million, or 194.05%, compared to the three months ended December 31, 2022.

The $4.3 million decrease in non-interest income for the three months ended December 31, 2023 compared to the three months ended September 30, 2023 was largely attributable to a grant of $3.7 million received in the third quarter of 2023 from the U.S. Treasury, partially offset by a smaller grant of $0.4 million received in the fourth quarter of 2023 from the U.S. Treasury. The decrease in non-interest income was also impacted by decreases of $0.6 million in other non-interest income and $0.5 million in late and prepayment charges.

Non-interest income for the year ended December 31, 2023, was $10.2 million, an increase of $3.8 million, or 59.26%, compared to $6.4 million for the year ended December 31, 2022. The $3.8 million increase from the year ended December 31, 2022 was attributable to two grants totaled $4.2 million received from the U.S. Treasury and an increase of $1.7 million in late and prepayment charges, partially offset by decreases of $1.3 million in loan origination and $0.9 million in brokerage commission.

Non-interest Expense

Non-interest expense for the three months ended December 31, 2023, was $17.9 million, an increase of $0.6 million, or 3.36%, compared to $17.3 million for the three months ended September 30, 2023 and an increase of $2.1 million, or 13.52%, compared to $15.8 million for the three months ended December 31, 2022.

The $2.1 million increase from the three months ended December 31, 2022 was mainly attributable to increases of $1.8 million in compensation and benefits, $0.9 million in provision for contingencies and $0.5 million in professional fees, partially offset by a decrease of $0.9 million in other operating expense.

Non-interest expense for the year ended December 31, 2023 was $68.7 million, a decrease of $17.2 million, or 19.99%, compared to $85.8 million for the year ended December 31, 2022. The $17.2 million decrease of non-interest expense from the year ended December 31, 2022 was attributable to $17.9 million Grain consumer microloan write-off during 2022 compared with $1.5 million of Grain consumer microloan recoveries recognized during the current period. The decrease in non-interest expense was also impacted by a $5.0 million contribution to the Ponce De Leon Foundation during 2022, partially offset by increases of $2.8 million in compensation and benefits, $2.2 million in provision for contingencies, $1.3 million in data processing expenses and $1.2 million in professional fees.

Balance Sheet Summary

Total assets increased $438.7 million, or 18.98%, to $2.75 billion as of December 31, 2023 from $2.31 billion as of December 31, 2022. The increase in total assets is largely attributable to increases of $402.8 million in net loans receivable, $84.8 million in cash and cash equivalents, $10.7 million in other assets and $8.0 million in mortgage loans held for sale, partially offset by decreases of $49.1 million in held-to-maturity securities, $9.6 million in available-for-sale securities and $5.3 million in Federal Home Loan Bank of New York stock.

Total liabilities increased $440.0 million, or 24.19%, to $2.26 billion as of December 31, 2023 from $1.82 billion as of December 31, 2022. The increase in total liabilities was largely attributable to increases of $255.2 million in deposits, $167.0 million in borrowings, $10.6 million in accrued interest payable and $8.0 million in other liabilities.

Total stockholders’ equity decreased $1.3 million, or 0.26%, to $491.4 million as of December 31, 2023, from $492.7 million as of December 31, 2022. This decrease in stockholders’ equity was largely attributable to $11.0 million in share repurchases during 2023 and $2.2 million in other comprehensive loss, offset by $3.4 million in net income, $1.9 million impact to additional paid in capital as a result of share-based compensation, $1.1 million as a result of implementation of CECL and $1.1 million from release of ESOP 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; anticipated losses with respect to the Company's investment in Grain; 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,  
  2023     2023     2023     2023     2022  
ASSETS                            
Cash and due from banks:                            
Cash $ 28,930     $ 26,046     $ 31,162     $ 26,951     $ 31,977  
Interest-bearing deposits   110,260       90,966       212,627       157,736       22,383  
Total cash and cash equivalents   139,190       117,012       243,789       184,687       54,360  
Available-for-sale securities, at fair value   119,902       116,753       123,720       128,320       129,505  
Held-to-maturity securities, at amortized cost (1)   461,748       471,065       481,952       491,649       510,820  
Placement with banks   249       996       996       1,245       1,494  
Mortgage loans held for sale, at fair value   9,980       14,103       10,070       2,987       1,979  
Loans receivable, net   1,895,886       1,787,607       1,695,047       1,614,428       1,493,127  
Accrued interest receivable   18,010       16,624       16,054       15,435       15,049  
Premises and equipment, net   16,053       16,453       16,856       17,215       17,446  
Right of use assets   31,272       32,110       32,435       33,147       33,423  
Federal Home Loan Bank of New York stock (FHLBNY), at cost   19,377       18,870       19,195       19,209       24,661  
Deferred tax assets   14,332       15,984       15,924       15,413       16,137  
Other assets   24,723       16,286       15,919       15,799       13,988  
Total assets $ 2,750,722     $ 2,623,863     $ 2,671,957     $ 2,539,534     $ 2,311,989  
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Liabilities:                            
Deposits $ 1,507,620     $ 1,401,132     $ 1,442,013     $ 1,336,877     $ 1,252,412  
Operating lease liabilities   32,684       33,459       33,716       34,308       34,532  
Accrued interest payable   11,965       8,385       4,704       1,767       1,390  
Advance payments by borrowers for taxes and insurance   10,778       13,743       12,402       14,902       9,724  
Borrowings   684,421       675,100       682,100       648,375       517,375  
Other liabilities   11,859       6,986       6,540       7,264       3,856  
Total liabilities   2,259,327       2,138,805       2,181,475       2,043,493       1,819,289  
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   (9,747 )     (10,975 )     (5,202 )     (2 )     (2 )
Additional paid-in-capital   207,106       207,626       207,287       206,883       206,508  
Retained earnings   97,420       96,902       94,312       94,399       92,955  
Accumulated other comprehensive loss   (15,649 )     (20,468 )     (17,597 )     (16,629 )     (17,860 )
Unearned compensation ─ ESOP   (12,984 )     (13,276 )     (13,567 )     (13,859 )     (14,150 )
Total stockholders' equity   491,395       485,058       490,482       496,041       492,700  
Total liabilities and stockholders' equity $ 2,750,722     $ 2,623,863     $ 2,671,957     $ 2,539,534     $ 2,311,989  

(1)   Included for the quarterly period ended December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023 were $0.4 million, $0.6 million, $0.9 million and $0.8 million, respectively, related to the allowance for credit loss on held-to-maturity securities.


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,  
  2023     2023     2023     2023     2022  
Interest and dividend income:                            
Interest on loans receivable $ 27,814     $ 25,276     $ 23,015     $ 19,700     $ 18,550  
Interest on deposits due from banks   990       1,969       1,817       197       199  
Interest and dividend on securities and FHLBNY stock   6,146       6,261       6,223       6,459       6,184  
Total interest and dividend income   34,950       33,506       31,055       26,356       24,933  
Interest expense:                            
Interest on certificates of deposit   5,103       4,362       3,881       3,225       1,786  
Interest on other deposits   5,706       5,639       4,413       2,812       3,649  
Interest on borrowings   6,944       6,963       6,479       5,074       3,332  
Total interest expense   17,753       16,964       14,773       11,111       8,767  
Net interest income   17,197       16,542       16,282       15,245       16,166  
(Benefit) provision for credit losses   (375 )     535       987       (174 )     12,641  
Net interest income after provision (benefit) for credit losses   17,572       16,007       15,295       15,419       3,525  
Non-interest income:                            
Service charges and fees   498       516       481       491       481  
Brokerage commissions   13       17       35       15       180  
Late and prepayment charges   365       899       372       729       263  
Income on sale of mortgage loans   244       173       82       99       7  
Loan origination (1)                           (557 )
Grant income   438       3,718                    
Other   (273 )     304       522       485       63  
Total non-interest income   1,285       5,627       1,492       1,819       437  
Non-interest expense:                            
Compensation and benefits   8,262       7,566       7,425       7,446       6,501  
Occupancy and equipment   3,686       3,588       3,724       3,570       3,928  
Data processing expenses   1,101       1,582       1,208       1,192       1,114  
Direct loan expenses   497       369       345       412       454  
Provision for contingencies   418       391       517       985       (440 )
Insurance and surety bond premiums   250       255       248       265       270  
Office supplies, telephone and postage   294       301       489       399       375  
Professional fees   2,040       1,693       1,904       1,455       1,571  
Grain (recoveries) and write-off   (152 )     (69 )     (346 )     (914 )     (515 )
Marketing and promotional expenses   146       248       303       128       256  
Directors fees and regulatory assessment   173       169       160       155       196  
Other operating expenses   1,182       1,223       1,112       1,268       2,055  
Total non-interest expense   17,897       17,316       17,089       16,361       15,765  
Income (loss) before income taxes   960       4,318       (302 )     877       (11,803 )
Provision (benefit) for income taxes   442       1,728       (215 )     546       (2,589 )
Net income (loss) $ 518     $ 2,590     $ (87 )   $ 331     $ (9,214 )
Earnings (loss) per common share:                            
Basic $ 0.02     $ 0.12     $ (0.00 )   $ 0.01     $ (0.40 )
Diluted $ 0.02     $ 0.12     $ (0.00 )   $ 0.01     $ (0.40 )
Weighted average common shares outstanding:                            
Basic   22,224,945       22,272,076       23,208,168       23,293,013       23,168,097  
Diluted   22,406,102       22,349,217       23,208,168       23,324,532       23,168,097  

(1)   Amounts for the quarterly period ended December 31, 2022 include the reversal of $0.8 million of loan origination income that had been taken upfront in prior quarters of 2022 (as opposed to deferred over the life of ‎the loan)‎.


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

    For the Years Ended December 31,  
    2023     2022     Variance $     Variance %  
Interest and dividend income:                        
Interest on loans receivable   $ 95,805     $ 69,865     $ 25,940       37.13 %
Interest on deposits due from banks     4,973       713       4,260       597.48 %
Interest and dividend on securities and FHLBNY stock     25,089       12,174       12,915       106.09 %
Total interest and dividend income     125,867       82,752       43,115       52.10 %
Interest expense:                        
Interest on certificates of deposit     16,571       4,148       12,423       299.49 %
Interest on other deposits     18,570       5,802       12,768       220.06 %
Interest on borrowings     25,460       6,199       19,261       310.71 %
Total interest expense     60,601       16,149       44,452       275.26 %
Net interest income     65,266       66,603       (1,337 )     (2.01 %)
Provision for credit losses     973       24,046       (23,073 )     (95.95 %)
Net interest income after provision for credit losses     64,293       42,557       21,736       51.08 %
Non-interest income:                        
Service charges and fees     1,986       1,830       156       8.52 %
Brokerage commissions     80       1,020       (940 )     (92.16 %)
Late and prepayment charges     2,365       623       1,742       279.61 %
Income on sale of mortgage loans     598       741       (143 )     (19.30 %)
Loan origination           1,286       (1,286 )     (100.00 %)
Grant income     4,156             4,156       %
Loss on sale of premises and equipment           (436 )     436       (100.00 %)
Other     1,038       1,355       (317 )     (23.39 %)
Total non-interest income     10,223       6,419       3,804       59.26 %
Non-interest expense:                        
Compensation and benefits     30,699       27,914       2,785       9.98 %
Occupancy and equipment     14,568       13,968       600       4.30 %
Data processing expenses     5,083       3,779       1,304       34.51 %
Direct loan expenses     1,623       2,487       (864 )     (34.74 %)
Provision for contingencies     2,311       126       2,185       1,734.13 %
Insurance and surety bond premiums     1,018       870       148       17.01 %
Office supplies, telephone and postage     1,483       1,555       (72 )     (4.63 %)
Professional fees     7,092       5,904       1,188       20.12 %
Contribution to the Ponce De Leon Foundation           4,995       (4,995 )     (100.00 %)
Grain (recoveries) and write-off     (1,481 )     17,940       (19,421 )     (108.26 %)
Marketing and promotional expenses     825       593       232       39.12 %
Directors fees and regulatory assessment     657       705       (48 )     (6.81 %)
Other operating expenses     4,785       4,986       (201 )     (4.03 %)
Total non-interest expense     68,663       85,822       (17,159 )     (19.99 %)
Income (loss) before income taxes     5,853       (36,846 )     42,699       (115.89 %)
Provision (benefit) for income taxes     2,501       (6,845 )     9,346       (136.54 %)
Net income (loss)   $ 3,352     $ (30,001 )   $ 33,353       (111.17 %)
Earnings (loss) per common share:                        
Basic   $ 0.15     $ (1.32 )   $ 1.47       (111.15 %)
Diluted   $ 0.15     $ (1.32 )   $ 1.47       (111.11 %)
Weighted average common shares outstanding:                        
Basic     22,745,317       22,690,943       54,374       0.24 %
Diluted     22,822,313       22,690,943       131,370       0.58 %



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,  
  2023     2023     2023     2023     2022  
Performance Ratios:                            
Return on average assets (1)   0.08 %     0.39 %     (0.01 %)     0.06 %     (1.62 %)
Return on average equity (1)   0.42 %     2.11 %     (0.07 %)     0.27 %     (7.28 %)
Net interest rate spread (1) (2)   1.63 %     1.58 %     1.66 %     1.78 %     2.13 %
Net interest margin (1) (3)   2.66 %     2.58 %     2.65 %     2.75 %     2.97 %
Non-interest expense to average assets (1)   2.66 %     2.58 %     2.65 %     2.79 %     2.78 %
Efficiency ratio (4)   96.83 %     78.11 %     96.15 %     95.88 %     94.95 %
Average interest-earning assets to average interest- bearing liabilities   137.49 %     137.92 %     141.14 %     148.20 %     152.30 %
Average equity to average assets   18.25 %     18.32 %     19.21 %     20.91 %     22.32 %
Capital Ratios:                            
Total capital to risk weighted assets (Bank only)   23.30 %     25.10 %     26.30 %     27.54 %     30.53 %
Tier 1 capital to risk weighted assets (Bank only)   22.05 %     23.85 %     25.05 %     26.28 %     29.26 %
Common equity Tier 1 capital to risk-weighted assets (Bank only)   22.05 %     23.85 %     25.05 %     26.28 %     29.26 %
Tier 1 capital to average assets (Bank only)   17.49 %     17.51 %     17.95 %     19.51 %     20.47 %
Asset Quality Ratios:                            
Allowance for credit losses on loans as a percentage of total loans   1.36 %     1.51 %     1.64 %     1.77 %     2.27 %
Allowance for credit losses on loans as a percentage of nonperforming loans   152.99 %     169.49 %     167.06 %     149.73 %     252.33 %
Net (charge-offs) recoveries to average outstanding loans (1)   (0.24 %)     (0.34 %)     (0.41 %)     (0.57 %)     (0.85 %)
Non-performing loans as a percentage of total gross loans   0.89 %     0.89 %     0.98 %     1.18 %     0.90 %
Non-performing loans as a percentage of total assets   0.62 %     0.62 %     0.63 %     0.76 %     0.59 %
Total non-performing assets as a percentage of total assets   0.62 %     0.62 %     0.63 %     0.76 %     0.59 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)   0.81 %     0.82 %     0.83 %     0.93 %     0.78 %
Other:                            
Number of offices   18       19       19       19       19  
Number of full-time equivalent employees   237       243       244       251       253  
                             

(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)   For periods in 2023, 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. For the period in 2022, the balances only include troubled debt restructurings.


Ponce Financial Group, Inc. and Subsidiaries
Securities Portfolio

    December 31, 2023     December 31, 2022  
          Gross     Gross                 Gross     Gross        
    Amortized     Unrealized     Unrealized     Fair     Amortized     Unrealized     Unrealized     Fair  
    Cost     Gains     Losses     Value     Cost     Gains     Losses     Value  
    (in thousands)     (in thousands)  
Available-for-Sale Securities:                                                
U.S. Government Bonds   $ 2,990     $     $ (206 )   $ 2,784     $ 2,985     $     $ (296 )   $ 2,689  
Corporate Bonds     25,790             (2,122 )     23,668       25,824             (2,465 )     23,359  
Mortgage-Backed Securities:                                                
Collateralized Mortgage Obligations (1)     39,375             (6,227 )     33,148       44,503             (6,726 )     37,777  
FHLMC Certificates     10,163             (1,482 )     8,681       11,310             (1,676 )     9,634  
FNMA Certificates     61,359             (9,842 )     51,517       67,199             (11,271 )     55,928  
GNMA Certificates     104                   104       122             (4 )     118  
Total available-for-sale securities   $ 139,781     $     $ (19,879 )   $ 119,902     $ 151,943     $     $ (22,438 )   $ 129,505  
                                                 
Held-to-Maturity Securities:                                                
U.S. Agency Bonds   $ 25,000     $     $ (181 )   $ 24,819     $ 35,000     $     $ (380 )   $ 34,620  
Corporate Bonds     82,500             (2,691 )     79,809       82,500       57       (3,819 )     78,738  
Mortgage-Backed Securities:                                                
Collateralized Mortgage Obligations (1)     212,093       104       (5,170 )     207,027       235,479       192       (5,558 )     230,113  
FHLMC Certificates     3,897             (244 )     3,653       4,120             (268 )     3,852  
FNMA Certificates     118,944             (4,088 )     114,856       131,918             (5,227 )     126,691  
SBA Certificates     19,712       166             19,878       21,803       34             21,837  
Allowance for Credit Losses     (398 )                                          
Total held-to-maturity securities   $ 461,748     $ 270     $ (12,374 )   $ 450,042     $ 510,820     $ 283     $ (15,252 )   $ 495,851  

(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.

    December 31,  
    2023     2022  
Beginning balance   $     $  
CECL adoption     662        
Provision for credit losses     (264 )      
Allowance for credit losses on securities   $ 398     $  



Ponce Financial Group, Inc. and Subsidiaries

Loan Portfolio

    As of  
    December 31,     September 30,     June 30,     March 31,     December 31,  
    2023     2023     2023     2023     2022  
    Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent  
    (Dollars in thousands)  
Mortgage loans:                                                            
1-4 family residential                                                            
Investor Owned   $ 343,689       17.89 %   $ 347,082       19.13 %   $ 351,754       20.43 %   $ 354,559       21.60 %   $ 343,968       22.54 %
Owner-Occupied     152,311       7.93 %     151,866       8.37 %     154,116       8.94 %     149,481       9.10 %     134,878       8.84 %
Multifamily residential     550,559       28.65 %     553,694       30.52 %     550,033       31.94 %     553,430       33.71 %     494,667       32.42 %
Nonresidential properties     342,343       17.81 %     321,472       17.71 %     317,416       18.43 %     314,560       19.17 %     308,043       20.19 %
Construction and land     503,925       26.22 %     411,383       22.67 %     315,843       18.34 %     235,157       14.33 %     185,018       12.13 %
Total mortgage loans     1,892,827       98.50 %     1,785,497       98.40 %     1,689,162       98.08 %     1,607,187       97.91 %     1,466,574       96.12 %
Non-mortgage loans:                                                            
Business loans (1)     19,779       1.03 %     18,416       1.02 %     21,041       1.22 %     19,890       1.21 %     39,965       2.62 %
Consumer loans (2)     8,966       0.47 %     10,416       0.58 %     11,958       0.70 %     14,227       0.88 %     19,129       1.26 %
Total non-mortgage loans     28,745       1.50 %     28,832       1.60 %     32,999       1.92 %     34,117       2.09 %     59,094       3.88 %
Total loans, gross     1,921,572       100.00 %     1,814,329       100.00 %     1,722,161       100.00 %     1,641,304       100.00 %     1,525,668       100.00 %
Net deferred loan origination costs     468             692             1,059             2,099             2,051        
Allowance for credit losses on loans     (26,154 )           (27,414 )           (28,173 )           (28,975 )           (34,592 )      
Loans, net   $ 1,895,886           $ 1,787,607           $ 1,695,047           $ 1,614,428           $ 1,493,127        

(1)   As of December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, business loans include $1.0 million, $1.1 million, $3.2 million, $3.6 million and $20.0 million, respectively, of PPP loans.
(2)   As of December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, consumer loans include $8.0 million, $9.3 million, $11.2 million, $13.4 million and $18.2 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain.


Ponce Financial Group, Inc. and Subsidiaries
Grain Loan Exposure

Grain Technologies, Inc. ("Grain") Total Exposure as of December 31, 2023  
(in thousands)  
Receivable from Grain      
Microloans originated - put back to Grain (inception-to-December 31, 2023)   $ 24,104  
Write-downs, net of recoveries (inception-to-date as of December 31, 2023)     (15,459 )
Cash receipts from Grain (inception-to-December 31, 2023)     (6,819 )
Grant/reserve     (1,826 )
Net receivable as of December 31, 2023   $  
Microloan receivables from Grain Borrowers      
Grain originated loans receivable as of December 31, 2023   $ 7,985  
Allowance for credit losses on loans as of December 31, 2023 (1)     (7,026 )
Microloans, net of allowance for credit losses on loans as of December 31, 2023   $ 959  
Investments      
Investment in Grain   $ 1,000  
Investment in Grain write-off in Q3 2022     (1,000 )
Investment in Grain as of December 31, 2023      
Total exposure related to Grain as of December 31, 2023 (2)   $ 959  

(1)   Includes $0.3 million for allowance for unused commitments on the $2.4 million of unused commitments available to Grain originated borrowers reported in other liabilities in the accompanying Consolidated Statements of Financial Conditions. Excludes $1.6 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.
(2)   Total remaining exposure to Grain borrowers. These loans are now serviced by the Bank.

On November 1, 2023, Ponce Financial Group, Inc. and Grain signed a Perpetual Software License Agreement in order for the Bank to assume the servicing of the remaining Grain loans. In order to facilitate the transfer of the servicing responsibilities to the Bank, Grain granted the Bank a perpetual right and license to use the Grain software, including the source code to service the remaining loans.



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,  
  2023     2023     2023     2023     2022  
  (Dollars in thousands)  
Allowance for credit losses on loans at beginning of the period $ 27,414     $ 28,173     $ 28,975     $ 34,592     $ 25,108  
Provision (benefit) for credit losses on loans   (126 )     750       934       (321 )     12,641  
Adoption of CECL                     (3,090 )      
Charge-offs:                            
Mortgage loans:                            
1-4 family residences                            
Investor owned                            
Owner occupied                            
Multifamily residences                            
Nonresidential properties                            
Construction and land                            
Non-mortgage loans:                            
Business   (63 )                        
Consumer   (1,135 )     (1,592 )     (1,931 )     (2,569 )     (3,659 )
Total charge-offs   (1,198 )     (1,592 )     (1,931 )     (2,569 )     (3,659 )
Recoveries:                            
Mortgage loans:                            
1-4 family residences                            
Investor owned                            
Owner occupied                            
Multifamily residences                            
Nonresidential properties                            
Construction and land                            
Non-mortgage loans:                            
Business         3                    
Consumer   64       80       195       363       502  
Total recoveries   64       83       195       363       502  
Net (charge-offs) recoveries   (1,134 )     (1,509 )     (1,736 )     (2,206 )     (3,157 )
Allowance for credit losses on loans at end of the period $ 26,154     $ 27,414     $ 28,173     $ 28,975     $ 34,592  



Ponce Financial Group, Inc. and Subsidiaries

Deposits

    As of  
    December 31,     September 30,     June 30,     March 31,     December 31,  
    2023     2023     2023     2023     2022  
    Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent  
    (Dollars in thousands)  
Demand   $ 243,384       16.14 %   $ 265,862       18.98 %   $ 266,545       18.48 %   $ 282,741       21.15 %   $ 289,149       23.08 %
Interest-bearing deposits:                                                            
NOW/IOLA accounts     19,676       1.31 %     22,519       1.61 %     22,754       1.57 %     21,735       1.63 %     24,349       1.94 %
Money market accounts (1)     432,735       28.70 %     370,500       26.44 %     387,970       26.91 %     293,140       21.93 %     236,143       18.86 %
Reciprocal deposits     96,860       6.42 %     82,670       5.90 %     100,919       7.00 %     109,649       8.20 %     114,049       9.11 %
Savings accounts     114,139       7.57 %     117,870       8.41 %     119,635       8.30 %     127,731       9.55 %     130,432       10.41 %
Total NOW, money market, reciprocal and savings accounts     663,410       44.00 %     593,559       42.36 %     631,278       43.78 %     552,255       41.31 %     504,973       40.32 %
Certificates of deposit of $250K or more (1)     132,153       8.77 %     122,353       8.73 %     120,043       8.32 %     113,955       8.52 %     106,336       8.49 %
Brokered certificates of deposit (2)     98,729       6.55 %     98,729       7.05 %     98,729       6.85 %     98,754       7.39 %     98,754       7.89 %
Listing service deposits (2)     14,433       0.96 %     15,180       1.08 %     20,258       1.40 %     28,417       2.13 %     35,813       2.86 %
All other certificates of deposit less than $250K (1)     355,511       23.58 %     305,449       21.80 %     305,160       21.17 %     260,755       19.50 %     217,387       17.36 %
Total certificates of deposit     600,826       39.86 %     541,711       38.66 %     544,190       37.74 %     501,881       37.54 %     458,290       36.60 %
Total interest-bearing deposits     1,264,236       83.86 %     1,135,270       81.02 %     1,175,468       81.52 %     1,054,136       78.85 %     963,263       76.92 %
Total deposits   $ 1,507,620       100.00 %   $ 1,401,132       100.00 %   $ 1,442,013       100.00 %   $ 1,336,877       100.00 %   $ 1,252,412       100.00 %

(1)   As of June 30, 2023, March 31, 2023 and December 31, 2022, $150.6 million, $115.3 million and $81.7 million, respectively, of SaveBetter deposits were reclassified from money market accounts to certificates of deposits. $36.4 million, $37.1 million and $36.2 million, respectively, were reclassified to Certificates of deposits of $250K or more and $114.2 million, $78.2 million and $45.5 million, respectively, were reclassified to certificates of deposit less than $250K.
(2)   As of December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, there were $0.3 million, $0.3 million, $3.3 million, $9.5 million and $13.6 million, respectively, in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.


Ponce Financial Group, Inc. and Subsidiaries
Borrowings

  December 31,     December 31,  
  2023     2022  
  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
$     $       %   $ 6,000     $ 6,000       4.61 %
                                   
Term advances ending:                                  
2023 $     $           $ 178,375     $ 178,375       4.32  
2024   363,321       363,321       4.55       50,000       50,000       4.75  
2025   50,000       50,000       4.41       50,000       50,000       4.41  
2026                                  
2027   212,000       212,000       3.44       183,000       183,000       3.25  
2028   9,100       9,100       3.84                    
Thereafter   50,000       50,000       3.35       50,000       50,000       3.35  
  $ 684,421     $ 684,421       4.10 %   $ 517,375     $ 517,375       3.90 %



Ponce Financial Group, Inc. and Subsidiaries

Nonperforming Assets

  As of Three Months Ended  
  December 31,     September 30,     June 30,     March 31,     December 31,  
  2023     2023     2023     2023     2022  
  (Dollars in thousands)  
Non-accrual loans:                            
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 793     $ 396     $ 296     $ 2,836     $ 2,844  
Owner occupied   1,682       1,685       2,363       2,245       961  
Multifamily residential   2,979       1,444       1,435              
Nonresidential properties                            
Construction and land   10,759       11,721       11,721       11,906       7,567  
Non-mortgage loans:                            
Business   19       209             40        
Consumer   146                          
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) $ 16,378     $ 15,455     $ 15,815     $ 17,027     $ 11,372  
                             
Non-accruing modifications to borrowers experiencing financial difficulty (1):                            
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 270     $ 270     $ 209     $ 213     $ 217  
Owner occupied   447       449       840       2,020       2,027  
Multifamily residential                            
Nonresidential properties                     91       93  
Construction and land                            
Non-mortgage loans:                            
Business                            
Consumer                            
Total non-accruing modifications to borrowers experiencing financial difficulty (1)   717       719       1,049       2,324       2,337  
Total non-accrual loans $ 17,095     $ 16,174     $ 16,864     $ 19,351     $ 13,709  
                             
Accruing modifications to borrowers experiencing financial difficulty (1):                            
Mortgage loans:                            
1-4 family residential                            
Investor owned $ 2,112     $ 2,131     $ 2,161     $ 2,185     $ 2,207  
Owner occupied   2,313       2,335       2,353       1,310       1,328  
Multifamily residential                            
Nonresidential properties   757       765       783       701       708  
Construction and land                            
Non-mortgage loans:                            
Business                            
Consumer                            
Total accruing modifications to borrowers experiencing financial difficulty (1) $ 5,182     $ 5,231     $ 5,297     $ 4,196     $ 4,243  
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) $ 22,277     $ 21,405     $ 22,161     $ 23,547     $ 17,952  
Total non-performing loans to total gross loans   0.89 %     0.89 %     0.98 %     1.18 %     0.90 %
Total non-performing assets to total assets   0.62 %     0.62 %     0.63 %     0.76 %     0.59 %
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1)   0.81 %     0.82 %     0.83 %     0.93 %     0.78 %

(1)   For periods in 2023, 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. For the period in 2022, the balances only include troubled debt restructurings.


Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

  For the Three Months Ended December 31,
  2023   2022
  Average               Average            
  Outstanding           Average   Outstanding           Average
  Balance     Interest     Yield/Rate (1)   Balance     Interest     Yield/Rate (1)
  (Dollars in thousands)
Interest-earning assets:                              
Loans (2) $ 1,884,301     $ 27,814     5.86 %   $ 1,478,308     $ 18,550     4.98 %
Securities (3)   582,563       5,715     3.89 %     636,457       5,931     3.70 %
Other (4) (5)   96,070       1,421     5.87 %     47,069       452     3.81 %
Total interest-earning assets   2,562,934       34,950     5.41 %     2,161,834       24,933     4.58 %
Non-interest-earning assets (5)   107,305                 87,861            
Total assets $ 2,670,239               $ 2,249,695            
Interest-bearing liabilities:                              
NOW/IOLA $ 20,210     $ 8     0.16 %   $ 25,349     $ 22     0.34 %
Money market (6)   474,306       5,668     4.74 %     437,813       3,619     3.28 %
Savings   116,600       28     0.10 %     139,115       8     0.02 %
Certificates of deposit (6)   559,713       5,103     3.62 %     434,368       1,786     1.63 %
Total deposits   1,170,829       10,807     3.66 %     1,036,645       5,435     2.08 %
Advance payments by borrowers   15,033       2     0.05 %     12,942           %
Borrowings   678,235       6,944     4.06 %     369,832       3,332     3.57 %
Total interest-bearing liabilities   1,864,097       17,753     3.78 %     1,419,419       8,767     2.45 %
Non-interest-bearing liabilities:                              
Non-interest-bearing demand   267,150                 325,616            
Other non-interest-bearing liabilities   51,764                 2,424            
Total non-interest-bearing liabilities   318,914                 328,040            
Total liabilities   2,183,011       17,753           1,747,459       8,767      
Total equity   487,228                 502,236            
Total liabilities and total equity $ 2,670,239           3.78 %   $ 2,249,695           2.45 %
Net interest income       $ 17,197               $ 16,166      
Net interest rate spread (7)             1.63 %               2.13 %
Net interest-earning assets (8) $ 698,837               $ 742,415            
Net interest margin (9)             2.66 %               2.97 %
Average interest-earning assets to interest-bearing liabilities             137.49 %               152.30 %

(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 FRB demand deposits.
(5)   FRB demand deposits for prior period have been reclassified for consistency.
(6)   Includes reclassification of $65.5 million average outstanding balances and $0.5 million of interest expenses from money market to certificates of deposit for the three months ended December 31, 2022.
(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,  
  2023     2022  
  Average                 Average              
  Outstanding           Average     Outstanding           Average  
  Balance     Interest     Yield/Rate (1)     Balance     Interest     Yield/Rate  
  (Dollars in thousands)  
Interest-earning assets:                                  
Loans (2) $ 1,730,275     $ 95,805       5.54 %   $ 1,375,723     $ 69,865       5.08 %
Securities (3)   606,815       23,342       3.85 %     357,446       11,709       3.28 %
Other (4) (5)   119,923       6,720       5.60 %     84,133       1,178       1.40 %
Total interest-earning assets   2,457,013       125,867       5.12 %     1,817,302       82,752       4.55 %
Non-interest-earning assets (5)   115,760                   124,351              
Total assets $ 2,572,773                 $ 1,941,653              
Interest-bearing liabilities:                                  
NOW/IOLA $ 22,168     $ 33       0.15 %   $ 30,151     $ 65       0.22 %
Money market (6)   424,160       18,413       4.34 %     367,838       5,604       1.52 %
Savings   121,550       116       0.10 %     138,137       128       0.09 %
Certificates of deposit (6)   528,999       16,571       3.13 %     407,739       4,148       1.02 %
Total deposits   1,096,877       35,133       3.20 %     943,865       9,945       1.05 %
Advance payments by borrowers   14,869       8       0.05 %     11,514       5       0.04 %
Borrowings   633,116       25,460       4.02 %     206,969       6,199       3.00 %
Total interest-bearing liabilities   1,744,862       60,601       3.47 %     1,162,348       16,149       1.39 %
Non-interest-bearing liabilities:                                  
Non-interest-bearing demand   290,335                   344,505              
Other non-interest-bearing liabilities   45,858                   33,225              
Total non-interest-bearing liabilities   336,193                   377,730              
Total liabilities   2,081,055       60,601             1,540,078       16,149        
Total equity   491,718                   401,575              
Total liabilities and total equity $ 2,572,773             3.47 %   $ 1,941,653             1.39 %
Net interest income       $ 65,266                 $ 66,603        
Net interest rate spread (7)               1.65 %                 3.16 %
Net interest-earning assets (8) $ 712,151                 $ 654,954              
Net interest margin (9)               2.66 %                 3.66 %
Average interest-earning assets to                                  
interest-bearing liabilities               140.81 %                 156.35 %

(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 FRB demand deposit.
(5)   FRB demand deposits for prior period have been reclassified for consistency.
(6)   Includes reclassification of $25.7 million average outstanding balances and $0.7 million of interest expenses from money market to certificates of deposit for the year ended December 31, 2022.
(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
Other Data

  As of  
  December 31,     September 30,     June 30,     March 31,     December 31,  
  2023     2023     2023     2023     2022  
Other Data                            
Common shares issued   24,886,711       24,886,711       24,886,711       24,865,476       24,861,329  
Less treasury shares   1,101,191       1,233,111       617,924       1,976       1,976  
Common shares outstanding at end of period   23,785,520       23,653,600       24,268,787       24,863,500       24,859,353  
                             
Book value per common share $ 11.20     $ 10.99     $ 10.94     $ 10.90     $ 10.77  
Tangible book value per common share $ 11.20     $ 10.99     $ 10.94     $ 10.90     $ 10.77  


Contact:
Frank Perez
frank.perez@poncebank.net
718-981-9000

 


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Source: Ponce Financial Group, Inc.

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