8-K
false000187407100018740712023-01-302023-01-30

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2023

 

 

Ponce Financial Group, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland

001-41255

87-1893965

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

2244 Westchester Avenue

 

Bronx, New York

 

10462

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 718 931-9000

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock, par value $0.01 per share

 

PDLB

 

The NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition.

On January 30, 2023, Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp (the “Company”), the holding company for Ponce Bank (the "Bank"), issued a press release announcing its financial results with respect to its fourth quarter ended December 31, 2022. The Company’s press release is included as Exhibit 99.1 to this report.

 

The information set forth in this Item 2.02 and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.

 

Exhibit Number

 

Description

 

 

 

99.1

 

Press release dated January 30, 2023

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL)

 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Ponce Financial Group, Inc.

 

 

 

 

Date:

January 30, 2023

By:

/s/ Carlos P. Naudon

 

 

 

Carlos P. Naudon
President and Chief Executive Officer

 


EX-99.1

 

Exhibit 99.1

Ponce Financial Group, Inc. Reports Fourth Quarter 2022 Results

 

NEW YORK, January 30, 2023 - Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the fourth quarter of 2022.

Fourth Quarter Highlights (Compared to Prior Periods):

Net loss of ($9.2) million or ($0.40) per diluted share, for the three months ended December 31, 2022, as compared to net loss of ($14.7) million, or ($0.64) per diluted share for the three months ended September 30, 2022 and net income of $15.0 million, or $0.89 per diluted share for the three months ended December 31, 2021.
Included in the ($9.2) million 2022 fourth quarter results is a $10.4 million increase in net provision for loan loss reserves/unused commitments to our Grain-originated microloan portfolio, as well as a reversal of $0.8 million of loan origination income that had been taken upfront (as opposed to deferred over the life of the loan).
Net interest income of $16.2 million for the fourth quarter of 2022 decreased $1.4 million, or 8.21%, from the prior quarter and $0.6 million, or 3.67%, from the same quarter last year, largely due to an increase in funding costs driven by the significant increase in interest rates during the quarter.
Net interest margin was 2.98% for the fourth quarter of 2022, a decrease from 3.62% for the prior quarter and from 4.51% for the same quarter last year. The reduction was largely attributable to an increase of lower yielding securities in the Company's portfolio and to an increase in the cost of funds.
Securities totaled $640.3 million as of December 31, 2022, an increase of $526.0 million, or 460.31%, from December 31, 2021.
Net loans receivable were $1.49 billion as of December 31, 2022, an increase of $188.0 million, or 14.41%, from December 31, 2021. The increase of $188.0 million was attributable to a $304.8 million net increase in non-PPP loans partially offset by a $116.7 million decrease in PPP loans.
Deposits were $1.25 billion as of December 31, 2022, an increase of $47.7 million, or 3.96%, from December 31, 2021.

 

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group’s President and CEO, stated “We took action this quarter, within applicable guidelines, to further reduce future exposure to our consumer microloan program with Grain by reducing available credit lines for many borrowers. Grain unused credit line exposure was reduced from $15.3 million at the end of the third quarter of 2022 to $0.4 million at the end of the fourth quarter of 2022. We also increased our allowance for loan losses for this portfolio to $15.4 million, leaving us with total possible remaining exposure, inclusive of unused commitments, of $3.2 million at year-end, down from previous exposure of $28.6 million at the end of the third quarter. We also retained $1.4 million of security deposits from Grain borrowers, which may be available to offset the remaining exposure. While we are winding down our partnership with Grain, we will continue to explore and foster other partnerships, to invest in our people and in efficiency enhancing technologies and to use all available capital management tools to deliver value to our stakeholders as a nationally recognized MDI and CDFI institution.

 

Mr. Naudon continued, “Looking to the coming year, we are focused on successfully navigating a dramatically changed environment compared to a year ago in terms of credit costs and economic uncertainty. We are keenly aware, as many others in our industry have pointed out, that the road ahead will continue to be more volatile as we navigate through this necessary adjustment from an extended period of ultra-low interest rates. Fortunately for Ponce, during 2022 we significantly increased our capital base, both due to the second-step conversion as well as the $225 million sale of our perpetual preferred stock to the U.S. Department of the Treasury, as evidenced by our strong capital ratios. Our financial strength provides significant capacity for future growth, but we will be patient and judicious in deploying this capital while at the same time making use of our strength to support underserved but not undeserving members of our communities.”

 

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman, added, “Despite a challenging environment, we were able to add almost $200 million to our loan portfolio across most categories during the quarter. We saw healthy growth in our multi-family loan

1


 

and non-qualified mortgage portfolios. The loan portfolio, excluding Grain originations, continues to show great resiliency and continues to enjoy low LTVs”.

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):

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Return on average assets (1)

 

 

(1.62

%)

 

 

(2.80

%)

 

 

0.17

%

 

 

(1.55

%)

 

 

3.69

%

Return on average equity (1)

 

 

(7.28

%)

 

 

(11.25

%)

 

 

1.01

%

 

 

(10.06

%)

 

 

31.46

%

Net interest rate spread (1) (2)

 

 

2.14

%

 

 

3.12

%

 

 

3.86

%

 

 

4.48

%

 

 

4.32

%

Net interest margin (1) (3)

 

 

2.98

%

 

 

3.62

%

 

 

4.10

%

 

 

4.68

%

 

 

4.51

%

Non-interest expense to average assets (1)

 

 

2.78

%

 

 

4.83

%

 

 

3.73

%

 

 

6.39

%

 

 

3.90

%

Efficiency ratio (4)

 

 

94.95

%

 

 

132.46

%

 

 

93.77

%

 

 

143.50

%

 

 

44.10

%

Average interest-earning assets to average interest- bearing liabilities

 

 

151.73

%

 

 

161.30

%

 

 

151.98

%

 

 

145.54

%

 

 

138.10

%

Average equity to average assets

 

 

22.32

%

 

 

24.90

%

 

 

17.32

%

 

 

15.76

%

 

 

11.71

%

 

 

 

 

At or for the Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

Capital Ratios (Annualized):

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Total capital to risk weighted assets (Bank only)

 

 

30.53

%

 

 

33.39

%

 

 

36.00

%

 

 

23.27

%

 

 

17.23

%

Tier 1 capital to risk weighted assets (Bank only)

 

 

29.26

%

 

 

32.13

%

 

 

34.75

%

 

 

22.02

%

 

 

15.98

%

Common equity Tier 1 capital to risk-weighted assets (Bank only)

 

 

29.26

%

 

 

32.13

%

 

 

34.75

%

 

 

22.02

%

 

 

15.98

%

Tier 1 capital to average assets (Bank only)

 

 

20.47

%

 

 

22.91

%

 

 

28.79

%

 

 

14.88

%

 

 

10.95

%

 

 

 

 

At or for the Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

Asset Quality Ratios (Annualized):

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Allowance for loan losses as a percentage of total loans

 

 

2.27

%

 

 

1.77

%

 

 

1.31

%

 

 

1.28

%

 

 

1.24

%

Allowance for loan losses as a percentage of nonperforming loans

 

 

252.33

%

 

 

118.43

%

 

 

94.05

%

 

 

106.84

%

 

 

142.90

%

Net (charge-offs) recoveries to average outstanding loans (1)

 

 

(0.85

%)

 

 

(0.52

%)

 

 

(0.05

%)

 

 

(0.22

%)

 

 

(0.18

%)

Non-performing loans as a percentage of total gross loans

 

 

0.90

%

 

 

1.50

%

 

 

1.39

%

 

 

1.20

%

 

 

0.87

%

Non-performing loans as a percentage of total assets

 

 

0.59

%

 

 

0.97

%

 

 

0.90

%

 

 

0.97

%

 

 

0.69

%

Total non-performing assets as a percentage of total assets

 

 

0.59

%

 

 

0.97

%

 

 

0.90

%

 

 

0.97

%

 

 

0.69

%

Total non-performing assets and accruing troubled debt restructured loans as a percentage of total assets

 

 

0.78

%

 

 

1.16

%

 

 

1.14

%

 

 

1.30

%

 

 

1.07

%

 

(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.

 

Summary of Results of Operations

 

Net loss for the year ended December 31, 2022, was ($30.0) million compared to net income of $25.4 million for the year ended December 31, 2021. This variance was largely due to charges related to Grain and a contribution to the Ponce De Leon Foundation this year, gains on property sales last year versus a loss on equipment sale this year, higher compensation and occupancy expenses and a reduction on the income on sale of mortgage loans.

 

Net Interest Income and Net Margin

 

Net interest income for the year ended December 31, 2022, was $66.6 million compared to $58.8 million for the year ended December 31, 2021. This increase is largely explained by the increases in the securities and loan portfolios.

 

Net interest margin was 3.75% for the year ended December 31, 2022 compared to 4.13% for the same period last year, a decrease of 38bps. The decrease in net interest margin was a result of an increase in the cost of funds driven by higher interest rates as well as a higher proportion of investment securities within interest-earning assets. These securities offer lower yields versus traditional loans.

2


 

 

Non-interest Income

 

Non-interest income for the three months ended December 31, 2022, was $0.4 million, a decrease of $1.1 million, or 72.29%, compared to the three months ended September 30, 2022 and a decrease of $18.7 million, or 97.72%, compared to the three months ended December 31, 2021.

 

The $1.1 million decrease in non-interest income for the three months ended December 31, 2022 compared to the three months ended September 30, 2022 was impacted by the reversal of loan origination income that had been taken upfront (as opposed to deferred) as well as lower income on sale of mortgage loans.

 

The $18.7 million decrease in non-interest income for the three months ended December 31, 2022 compared to the three months ended December 31, 2021 was attributable to the non-recurring $15.4 million gains on sale of property last year, a $1.4 million reduction in loan origination fees and a $1.3 million reduction in income on sale of mortgage loans.

 

Non-interest income for the year ended December 31, 2022, decreased $28.2 million, or 81.47%, to $6.4 million compared to $34.6 million for the year ended December 31, 2021. The decrease is primarily due to $20.3 million gains on sale of property last year versus a loss on sale of equipment of $0.4 million, a $4.5 million reduction in income on sale of mortgage loans and a $1.7 million reduction in loan origination fees this year.

 

Non-interest Expense

 

Non-interest expense for the three months ended December 31, 2022, was $15.8 million, a decrease of $9.7 million, or 37.97%, compared to the three months ended September 30, 2022 and $0.1 million, or 0.56%, compared to the three months ended December 31, 2021. The $9.7 million decrease from the three months ended September 30, 2022 was mainly attributable to the Grain write-off and write-down in the third quarter and to a lesser extent, a decrease in compensation and benefits expense as we reduced the bonus accrual during the fourth quarter. The $0.1 million decrease from the three months ended December 31, 2021 was attributable to a decrease of $0.6 million in direct loan expense, a $0.5 million recovery of Grain charge-offs and a decrease of $0.5 million in compensation and benefits expense, offset by increases of $0.9 million in occupancy and equipment, mainly due to rental expenses incurred after the sale of property during 2021 and $0.3 million in data processing expenses.

 

Non-interest expense for the year ended December 31, 2022, was $85.8 million, an increase of $28.7 million or 50.19%, compared to $57.1 million the year ended December 31, 2021. The $28.7 million increase in non-interest expense was attributable to the $17.9 million Grain write-off and write-down, $5.0 million contribution to the Ponce De Leon Foundation, and increases of $4.7 million in compensation and benefits expense, $2.6 million in occupancy and equipment expenses, $0.8 million in data processing expenses, $0.5 million in other operating expenses, $0.4 million in marketing and promotional expenses and $0.3 million in insurance and surety bond premiums. These items were partially offset by decreases of $1.7 million in professional fees, $1.4 million in direct loan expenses and $0.5 million in office supplies, telephone and postage.

 

 

Balance Sheet Summary

 

Total assets increased $658.5 million, or 39.82%, to $2.31 billion as of December 31, 2022 from $1.65 billion as of December 31, 2021. The increase in total assets is largely attributable to an increase of $509.9 million resulting from the purchases in held-to-maturity securities utilizing the $225.0 million received from the issuance of preferred stock to the U.S. Treasury pursuant to its Emergency Capital Investment Program. The increase in total assets is further impacted by increases of $188.0 million in net loans receivable (inclusive of a $116.7 million net decrease in PPP loans), $33.4 million in right of use assets, $18.7 million in Federal Home Loan Bank of New York stock, $16.2 million resulting from the purchase of available-for-sale securities and $12.3 million in deferred tax assets. These increases are partially offset by decreases of $99.5 million in cash and equivalents, $13.9 million in mortgage loans held for sale, at fair value and $6.2 million in other assets.

 

Total liabilities increased $355.0 million, or 24.25%, to $1.82 billion as of December 31, 2022 from $1.46 billion as of December 31, 2021. The increase in total liabilities was largely attributable to increases of $411.1 million in advances from FHLBNY, $47.7 million in deposits, and $34.5 million in operating lease liabilities, offset by decreases of $122.0 million in subscription liabilities related to the conversion of the mutual holding company to a stock company held as of December 31, 2021 pending the closing of the conversion and reorganization on January 27, 2022 and $15.1 million in warehouse lines of credit.

 

3


 

Total stockholders’ equity increased $303.4 million, or 160.34%, to $492.7 million as of December 31, 2022, from $189.3 million as of December 31, 2021. This increase in stockholders’ equity was largely attributable to the $225.0 million issuance of preferred stock to the U.S. Department of the Treasury pursuant to its Emergency Capital Investment Program and the $118.0 million received as a result of the sale of common stock in the conversion of the mutual holding company to a stock company.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, 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; the anticipated impact of the COVID-19 pandemic and Ponce Bank’s attempts at mitigation; 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.

 

4


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, 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,

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

34,074

 

 

$

37,235

 

 

$

53,544

 

 

$

32,168

 

 

$

98,954

 

Interest-bearing deposits in banks

 

20,286

 

 

 

25,286

 

 

 

221,262

 

 

 

37,127

 

 

 

54,940

 

Total cash and cash equivalents

 

54,360

 

 

 

62,521

 

 

 

274,806

 

 

 

69,295

 

 

 

153,894

 

Available-for-sale securities, at fair value

 

129,505

 

 

 

131,977

 

 

 

140,044

 

 

 

154,799

 

 

 

113,346

 

Held-to-maturity securities, at amortized cost

 

510,820

 

 

 

494,297

 

 

 

211,517

 

 

 

927

 

 

 

934

 

Placement with banks

 

1,494

 

 

 

2,490

 

 

 

2,490

 

 

 

2,490

 

 

 

2,490

 

Mortgage loans held for sale, at fair value

 

1,979

 

 

 

3,357

 

 

 

9,234

 

 

 

7,972

 

 

 

15,836

 

Loans receivable, net

 

1,493,127

 

 

 

1,392,553

 

 

 

1,324,320

 

 

 

1,300,446

 

 

 

1,305,078

 

Accrued interest receivable

 

15,049

 

 

 

14,063

 

 

 

13,255

 

 

 

12,799

 

 

 

12,362

 

Premises and equipment, net

 

17,446

 

 

 

17,759

 

 

 

18,945

 

 

 

19,279

 

 

 

19,617

 

Right of use assets

 

33,423

 

 

 

34,121

 

 

 

34,416

 

 

 

35,179

 

 

 

 

Federal Home Loan Bank of New York stock (FHLBNY), at cost

 

24,661

 

 

 

14,272

 

 

 

16,429

 

 

 

5,420

 

 

 

6,001

 

Deferred tax assets

 

16,137

 

 

 

13,822

 

 

 

9,658

 

 

 

7,440

 

 

 

3,820

 

Other assets

 

13,988

 

 

 

11,170

 

 

 

21,585

 

 

 

13,730

 

 

 

20,132

 

Total assets

$

2,311,989

 

 

$

2,192,402

 

 

$

2,076,699

 

 

$

1,629,776

 

 

$

1,653,510

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

1,252,412

 

 

$

1,351,189

 

 

$

1,148,728

 

 

$

1,181,165

 

 

$

1,204,716

 

Operating lease liabilities

 

34,532

 

 

 

35,081

 

 

 

35,217

 

 

 

35,821

 

 

 

 

Accrued interest payable

 

1,390

 

 

 

854

 

 

 

158

 

 

 

223

 

 

 

228

 

Advance payments by borrowers for taxes and insurance

 

9,724

 

 

 

10,589

 

 

 

8,668

 

 

 

10,161

 

 

 

7,657

 

Advances from the FHLBNY and others

 

517,375

 

 

 

286,375

 

 

 

334,375

 

 

 

93,375

 

 

 

106,255

 

Warehouse lines of credit

 

 

 

 

 

 

 

 

 

 

753

 

 

 

15,090

 

Mutual holding company conversion subscription liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

122,000

 

Other liabilities

 

3,856

 

 

 

7,631

 

 

 

31,471

 

 

 

8,699

 

 

 

8,308

 

Total liabilities

 

1,819,289

 

 

 

1,691,719

 

 

 

1,558,617

 

 

 

1,330,197

 

 

 

1,464,254

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 100,000,000 shares authorized

 

225,000

 

 

 

225,000

 

 

 

225,000

 

 

 

 

 

 

 

Common stock, $0.01 par value; 200,000,000 shares authorized

 

249

 

 

 

247

 

 

 

247

 

 

 

247

 

 

 

185

 

Treasury stock, at cost

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

(13,687

)

Additional paid-in-capital

 

206,508

 

 

 

206,092

 

 

 

205,669

 

 

 

205,243

 

 

 

85,601

 

Retained earnings

 

92,955

 

 

 

102,169

 

 

 

116,907

 

 

 

116,136

 

 

 

122,956

 

Accumulated other comprehensive loss

 

(17,860

)

 

 

(18,420

)

 

 

(15,032

)

 

 

(7,035

)

 

 

(1,456

)

Unearned compensation ─ ESOP

 

(14,150

)

 

 

(14,405

)

 

 

(14,709

)

 

 

(15,012

)

 

 

(4,343

)

Total stockholders' equity

 

492,700

 

 

 

500,683

 

 

 

518,082

 

 

 

299,579

 

 

 

189,256

 

Total liabilities and stockholders' equity

$

2,311,989

 

 

$

2,192,402

 

 

$

2,076,699

 

 

$

1,629,776

 

 

$

1,653,510

 

 

 

 

 

5


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, 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,

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

$

18,550

 

 

$

17,058

 

 

$

16,057

 

 

$

18,200

 

 

$

18,013

 

Interest on deposits due from banks

 

199

 

 

 

346

 

 

 

132

 

 

 

36

 

 

 

7

 

Interest and dividend on securities and FHLBNY stock

 

6,184

 

 

 

4,230

 

 

 

978

 

 

 

782

 

 

 

632

 

Total interest and dividend income

 

24,933

 

 

 

21,634

 

 

 

17,167

 

 

 

19,018

 

 

 

18,652

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

1,310

 

 

 

687

 

 

 

677

 

 

 

803

 

 

 

907

 

Interest on other deposits

 

4,125

 

 

 

1,543

 

 

 

521

 

 

 

284

 

 

 

309

 

Interest on borrowings

 

3,332

 

 

 

1,793

 

 

 

481

 

 

 

593

 

 

 

654

 

Total interest expense

 

8,767

 

 

 

4,023

 

 

 

1,679

 

 

 

1,680

 

 

 

1,870

 

Net interest income

 

16,166

 

 

 

17,611

 

 

 

15,488

 

 

 

17,338

 

 

 

16,782

 

Provision for loan losses

 

12,641

 

 

 

9,330

 

 

 

817

 

 

 

1,258

 

 

 

873

 

Net interest income after provision for loan losses

 

3,525

 

 

 

8,281

 

 

 

14,671

 

 

 

16,080

 

 

 

15,909

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

481

 

 

 

464

 

 

 

445

 

 

 

440

 

 

 

468

 

Brokerage commissions

 

180

 

 

 

288

 

 

 

214

 

 

 

338

 

 

 

401

 

Late and prepayment charges

 

263

 

 

 

109

 

 

 

193

 

 

 

58

 

 

 

336

 

Income on sale of mortgage loans

 

7

 

 

 

116

 

 

 

200

 

 

 

418

 

 

 

1,294

 

Loan origination (1)

 

(557

)

 

 

522

 

 

 

696

 

 

 

625

 

 

 

886

 

(Loss) gain on sale of premises and equipment

 

 

 

 

(436

)

 

 

 

 

 

 

 

 

15,431

 

Other

 

63

 

 

 

514

 

 

 

431

 

 

 

347

 

 

 

353

 

Total non-interest income

 

437

 

 

 

1,577

 

 

 

2,179

 

 

 

2,226

 

 

 

19,169

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

6,501

 

 

 

7,377

 

 

 

6,911

 

 

 

7,125

 

 

 

6,959

 

Occupancy and equipment

 

3,928

 

 

 

3,611

 

 

 

3,237

 

 

 

3,192

 

 

 

3,007

 

Data processing expenses

 

1,114

 

 

 

994

 

 

 

824

 

 

 

847

 

 

 

771

 

Direct loan expenses

 

454

 

 

 

654

 

 

 

505

 

 

 

874

 

 

 

1,032

 

Insurance and surety bond premiums

 

270

 

 

 

297

 

 

 

156

 

 

 

147

 

 

 

149

 

Office supplies, telephone and postage

 

375

 

 

 

369

 

 

 

406

 

 

 

405

 

 

 

552

 

Professional fees

 

1,571

 

 

 

1,251

 

 

 

1,748

 

 

 

1,334

 

 

 

1,700

 

Contribution to the Ponce De Leon Foundation

 

 

 

 

 

 

 

 

 

 

4,995

 

 

 

 

Grain write-off and write-down

 

(515

)

 

 

8,881

 

 

 

1,500

 

 

 

8,074

 

 

 

 

Marketing and promotional expenses

 

256

 

 

 

214

 

 

 

52

 

 

 

71

 

 

 

69

 

Directors fees

 

112

 

 

 

89

 

 

 

96

 

 

 

71

 

 

 

80

 

Regulatory assessment

 

84

 

 

 

99

 

 

 

71

 

 

 

83

 

 

 

69

 

Other operating expenses

 

1,615

 

 

 

1,580

 

 

 

1,061

 

 

 

856

 

 

 

1,466

 

Total non-interest expense

 

15,765

 

 

 

25,416

 

 

 

16,567

 

 

 

28,074

 

 

 

15,854

 

(Loss) income before income taxes

 

(11,803

)

 

 

(15,558

)

 

 

283

 

 

 

(9,768

)

 

 

19,224

 

(Benefit) provision for income taxes

 

(2,589

)

 

 

(820

)

 

 

(488

)

 

 

(2,948

)

 

 

4,245

 

Net (loss) income

$

(9,214

)

 

$

(14,738

)

 

$

771

 

 

$

(6,820

)

 

$

14,979

 

(Loss) earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.40

)

 

$

(0.64

)

 

$

0.03

 

 

$

(0.31

)

 

$

0.90

 

Diluted

$

(0.40

)

 

$

(0.64

)

 

$

0.03

 

 

$

(0.31

)

 

$

0.89

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

23,168,097

 

 

 

23,094,859

 

 

 

23,056,559

 

 

 

21,721,113

 

 

 

16,864,929

 

Diluted

 

23,168,097

 

 

 

23,094,859

 

 

 

23,128,911

 

 

 

21,721,113

 

 

 

16,924,785

 

 

(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)‎.

 

6


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

 

 

 

For the Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

Variance $

 

 

Variance %

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

 

$

69,865

 

 

$

65,532

 

 

$

4,333

 

 

 

6.61

%

Interest on deposits due from banks

 

 

713

 

 

 

20

 

 

 

693

 

 

 

3,465.00

%

Interest and dividend on securities and FHLBNY stock

 

 

12,174

 

 

 

1,546

 

 

 

10,628

 

 

 

687.45

%

Total interest and dividend income

 

 

82,752

 

 

 

67,098

 

 

 

15,654

 

 

 

23.33

%

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

 

3,477

 

 

 

4,244

 

 

 

(767

)

 

 

(18.07

%)

Interest on other deposits

 

 

6,473

 

 

 

1,427

 

 

 

5,046

 

 

 

353.61

%

Interest on borrowings

 

 

6,199

 

 

 

2,581

 

 

 

3,618

 

 

 

140.18

%

Total interest expense

 

 

16,149

 

 

 

8,252

 

 

 

7,897

 

 

 

95.70

%

Net interest income

 

 

66,603

 

 

 

58,846

 

 

 

7,757

 

 

 

13.18

%

Provision for loan losses

 

 

24,046

 

 

 

2,717

 

 

 

21,329

 

 

 

785.02

%

Net interest income after provision for loan losses

 

 

42,557

 

 

 

56,129

 

 

 

(13,572

)

 

 

(24.18

%)

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

1,830

 

 

 

1,657

 

 

 

173

 

 

 

10.44

%

Brokerage commissions

 

 

1,020

 

 

 

1,324

 

 

 

(304

)

 

 

(22.96

%)

Late and prepayment charges

 

 

623

 

 

 

1,207

 

 

 

(584

)

 

 

(48.38

%)

Income on sale of mortgage loans

 

 

741

 

 

 

5,265

 

 

 

(4,524

)

 

 

(85.93

%)

Loan origination

 

 

1,286

 

 

 

3,021

 

 

 

(1,735

)

 

 

(57.43

%)

(Loss) gain on sale of premises and equipment

 

 

(436

)

 

 

20,270

 

 

 

(20,706

)

 

 

(102.15

%)

Other

 

 

1,355

 

 

 

1,893

 

 

 

(538

)

 

 

(28.42

%)

Total non-interest income

 

 

6,419

 

 

 

34,637

 

 

 

(28,218

)

 

 

(81.47

%)

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

27,914

 

 

 

23,262

 

 

 

4,652

 

 

 

20.00

%

Occupancy and equipment

 

 

13,968

 

 

 

11,328

 

 

 

2,640

 

 

 

23.31

%

Data processing expenses

 

 

3,779

 

 

 

3,015

 

 

 

764

 

 

 

25.34

%

Direct loan expenses

 

 

2,487

 

 

 

3,888

 

 

 

(1,401

)

 

 

(36.03

%)

Insurance and surety bond premiums

 

 

870

 

 

 

585

 

 

 

285

 

 

 

48.72

%

Office supplies, telephone and postage

 

 

1,555

 

 

 

2,054

 

 

 

(499

)

 

 

(24.29

%)

Professional fees

 

 

5,904

 

 

 

7,629

 

 

 

(1,725

)

 

 

(22.61

%)

Contribution to the Ponce De Leon Foundation

 

 

4,995

 

 

 

 

 

 

4,995

 

 

 

%

Grain write-off and write-down

 

 

17,940

 

 

 

 

 

 

17,940

 

 

 

%

Marketing and promotional expenses

 

 

593

 

 

 

206

 

 

 

387

 

 

 

187.86

%

Directors fees

 

 

368

 

 

 

285

 

 

 

83

 

 

 

29.12

%

Regulatory assessment

 

 

337

 

 

 

323

 

 

 

14

 

 

 

4.33

%

Other operating expenses

 

 

5,112

 

 

 

4,567

 

 

 

545

 

 

 

11.93

%

Total non-interest expense

 

 

85,822

 

 

 

57,142

 

 

 

28,680

 

 

 

50.19

%

(Loss) income before income taxes

 

 

(36,846

)

 

 

33,624

 

 

 

(70,470

)

 

 

(209.58

%)

(Benefit) provision for income taxes

 

 

(6,845

)

 

 

8,209

 

 

 

(15,054

)

 

 

(183.38

%)

Net (loss) income

 

$

(30,001

)

 

$

25,415

 

 

$

(55,416

)

 

 

(218.04

%)

(Loss) earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(1.32

)

 

$

1.52

 

 

$

(2.84

)

 

 

(187.11

%)

Diluted

 

$

(1.32

)

 

$

1.51

 

 

$

(2.84

)

 

 

(187.35

%)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,690,943

 

 

 

16,744,561

 

 

 

5,946,382

 

 

 

35.51

%

Diluted

 

 

22,690,943

 

 

 

16,791,443

 

 

 

5,899,500

 

 

 

35.13

%

 

 

7


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Key Metrics

 

At or for the Three Months Ended

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

(1.62

%)

 

 

(2.80

%)

 

 

0.17

%

 

 

(1.55

%)

 

 

3.69

%

Return on average equity (1)

 

(7.28

%)

 

 

(11.25

%)

 

 

1.01

%

 

 

(10.06

%)

 

 

31.46

%

Net interest rate spread (1) (2)

 

2.14

%

 

 

3.12

%

 

 

3.86

%

 

 

4.48

%

 

 

4.32

%

Net interest margin (1) (3)

 

2.98

%

 

 

3.62

%

 

 

4.10

%

 

 

4.68

%

 

 

4.51

%

Non-interest expense to average assets (1)

 

2.78

%

 

 

4.83

%

 

 

3.73

%

 

 

6.39

%

 

 

3.90

%

Efficiency ratio (4)

 

94.95

%

 

 

132.46

%

 

 

93.77

%

 

 

143.50

%

 

 

44.10

%

Average interest-earning assets to average interest- bearing liabilities

 

151.73

%

 

 

161.30

%

 

 

151.98

%

 

 

145.54

%

 

 

138.10

%

Average equity to average assets

 

22.32

%

 

 

24.90

%

 

 

17.32

%

 

 

15.76

%

 

 

11.71

%

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital to risk weighted assets (Bank only)

 

30.53

%

 

 

33.39

%

 

 

36.00

%

 

 

23.27

%

 

 

17.23

%

Tier 1 capital to risk weighted assets (Bank only)

 

29.26

%

 

 

32.13

%

 

 

34.75

%

 

 

22.02

%

 

 

15.98

%

Common equity Tier 1 capital to risk-weighted assets (Bank only)

 

29.26

%

 

 

32.13

%

 

 

34.75

%

 

 

22.02

%

 

 

15.98

%

Tier 1 capital to average assets (Bank only)

 

20.47

%

 

 

22.91

%

 

 

28.79

%

 

 

14.88

%

 

 

10.95

%

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percentage of total loans

 

2.27

%

 

 

1.77

%

 

 

1.31

%

 

 

1.28

%

 

 

1.24

%

Allowance for loan losses as a percentage of nonperforming loans

 

252.33

%

 

 

118.43

%

 

 

94.05

%

 

 

106.84

%

 

 

142.90

%

Net (charge-offs) recoveries to average outstanding loans (1)

 

(0.85

%)

 

 

(0.52

%)

 

 

(0.05

%)

 

 

(0.22

%)

 

 

(0.18

%)

Non-performing loans as a percentage of total gross loans

 

0.90

%

 

 

1.50

%

 

 

1.39

%

 

 

1.20

%

 

 

0.87

%

Non-performing loans as a percentage of total assets

 

0.59

%

 

 

0.97

%

 

 

0.90

%

 

 

0.97

%

 

 

0.69

%

Total non-performing assets as a percentage of total assets

 

0.59

%

 

 

0.97

%

 

 

0.90

%

 

 

0.97

%

 

 

0.69

%

Total non-performing assets and accruing troubled debt restructured loans as a percentage of total assets

 

0.78

%

 

 

1.16

%

 

 

1.14

%

 

 

1.30

%

 

 

1.07

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of offices

 

18

 

 

 

18

 

 

 

18

 

 

 

18

 

 

 

19

 

Number of full-time equivalent employees

 

253

 

 

 

257

 

 

 

253

 

 

 

223

 

 

 

217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

8


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Securities Portfolio

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

 

 

(in thousands)

 

 

(in thousands)

 

Available-for-Sale Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds

 

$

2,985

 

 

$

 

 

$

(296

)

 

$

2,689

 

 

$

2,981

 

 

$

 

 

$

(47

)

 

$

2,934

 

Corporate Bonds

 

 

25,824

 

 

 

 

 

 

(2,465

)

 

 

23,359

 

 

 

21,243

 

 

 

144

 

 

 

(203

)

 

 

21,184

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations (1)

 

 

44,503

 

 

 

 

 

 

(6,726

)

 

 

37,777

 

 

 

18,845

 

 

 

 

 

 

(497

)

 

 

18,348

 

FHLMC Certificates

 

 

11,310

 

 

 

 

 

 

(1,676

)

 

 

9,634

 

 

 

 

 

 

 

 

 

 

 

 

 

FNMA Certificates

 

 

67,199

 

 

 

 

 

 

(11,271

)

 

 

55,928

 

 

 

71,930

 

 

 

 

 

 

(1,231

)

 

 

70,699

 

GNMA Certificates

 

 

122

 

 

 

 

 

 

(4

)

 

 

118

 

 

 

175

 

 

 

6

 

 

 

 

 

 

181

 

Total available-for-sale securities

 

$

151,943

 

 

$

 

 

$

(22,438

)

 

$

129,505

 

 

$

115,174

 

 

$

150

 

 

$

(1,978

)

 

$

113,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agency Bonds

 

$

35,000

 

 

$

 

 

$

(380

)

 

$

34,620

 

 

$

 

 

$

 

 

$

 

 

$

 

Corporate Bonds

 

 

82,500

 

 

 

57

 

 

 

(3,819

)

 

 

78,738

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations (1)

 

 

235,479

 

 

 

192

 

 

 

(5,558

)

 

 

230,113

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC Certificates

 

 

4,120

 

 

 

 

 

 

(268

)

 

 

3,852

 

 

 

934

 

 

 

 

 

 

(20

)

 

 

914

 

FNMA Certificates

 

 

131,918

 

 

 

 

 

 

(5,227

)

 

 

126,691

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA Certificates

 

 

21,803

 

 

 

34

 

 

 

 

 

 

21,837

 

 

 

 

 

 

 

 

 

 

 

 

 

Total held-to-maturity securities

 

$

510,820

 

 

$

283

 

 

$

(15,252

)

 

$

495,851

 

 

$

934

 

 

$

 

 

$

(20

)

 

$

914

 

 

 

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

 

 

 

 

 

9


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Loan Portfolio

 

 

 

As of

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

 

(Dollars in thousands)

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor Owned

 

$

343,968

 

 

 

22.54

%

 

$

336,667

 

 

 

23.79

%

 

$

321,671

 

 

 

24.02

%

 

$

323,442

 

 

 

24.59

%

 

$

317,304

 

 

 

24.01

%

Owner-Occupied

 

 

134,878

 

 

 

8.84

%

 

 

112,749

 

 

 

7.97

%

 

 

100,048

 

 

 

7.47

%

 

 

95,234

 

 

 

7.24

%

 

 

96,947

 

 

 

7.33

%

Multifamily residential

 

 

494,667

 

 

 

32.42

%

 

 

421,917

 

 

 

29.81

%

 

 

396,470

 

 

 

29.60

%

 

 

368,133

 

 

 

27.98

%

 

 

348,300

 

 

 

26.34

%

Nonresidential properties

 

 

308,043

 

 

 

20.19

%

 

 

282,642

 

 

 

19.97

%

 

 

279,877

 

 

 

20.90

%

 

 

251,893

 

 

 

19.14

%

 

 

239,691

 

 

 

18.13

%

Construction and land

 

 

185,018

 

 

 

12.13

%

 

 

197,437

 

 

 

13.95

%

 

 

165,425

 

 

 

12.35

%

 

 

144,881

 

 

 

11.01

%

 

 

134,651

 

 

 

10.19

%

Total mortgage loans

 

 

1,466,574

 

 

 

96.12

%

 

 

1,351,412

 

 

 

95.49

%

 

 

1,263,491

 

 

 

94.34

%

 

 

1,183,583

 

 

 

89.96

%

 

 

1,136,893

 

 

 

86.00

%

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business loans (1)

 

 

39,965

 

 

 

2.62

%

 

 

41,398

 

 

 

2.92

%

 

 

45,720

 

 

 

3.41

%

 

 

100,253

 

 

 

7.62

%

 

 

150,512

 

 

 

11.38

%

Consumer loans (2)

 

 

19,129

 

 

 

1.26

%

 

 

22,563

 

 

 

1.59

%

 

 

30,198

 

 

 

2.25

%

 

 

31,899

 

 

 

2.42

%

 

 

34,693

 

 

 

2.62

%

Total non-mortgage loans

 

 

59,094

 

 

 

3.88

%

 

 

63,961

 

 

 

4.51

%

 

 

75,918

 

 

 

5.66

%

 

 

132,152

 

 

 

10.04

%

 

 

185,205

 

 

 

14.00

%

Total loans, gross

 

 

1,525,668

 

 

 

100.00

%

 

 

1,415,373

 

 

 

100.00

%

 

 

1,339,409

 

 

 

100.00

%

 

 

1,315,735

 

 

 

100.00

%

 

 

1,322,098

 

 

 

100.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred loan origination costs

 

 

2,051

 

 

 

 

 

 

2,288

 

 

 

 

 

 

2,446

 

 

 

 

 

 

1,604

 

 

 

 

 

 

(668

)

 

 

 

Allowance for losses on loans

 

 

(34,592

)

 

 

 

 

 

(25,108

)

 

 

 

 

 

(17,535

)

 

 

 

 

 

(16,893

)

 

 

 

 

 

(16,352

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

1,493,127

 

 

 

 

 

$

1,392,553

 

 

 

 

 

$

1,324,320

 

 

 

 

 

$

1,300,446

 

 

 

 

 

$

1,305,078

 

 

 

 

 

(1)
As of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, business loans include $20.0 million, $24.7 million, $30.8 million, $86.0 million and $136.8 million, respectively, of PPP loans.
(2)
As of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, consumer loans include $18.2 million, $21.5 million, $28.3 million, $31.0 million and $33.9 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain.

 

 

10


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Grain Loan Exposure

 

Grain Technologies, Inc. ("Grain") Total Exposure as of December 31, 2022

 

(in thousands)

 

Receivable from Grain

 

 

 

Microloans originated - put back to Grain (inception-to-December 31, 2022)

 

$

25,467

 

Write-downs, net of recoveries (year to date as of December 31, 2022)

 

 

(17,455

)

Cash receipts from Grain (inception-to-December 31, 2022)

 

 

(6,186

)

Grant/reserve

 

 

(1,826

)

Net receivable as of December 31, 2022

 

$

 

Microloan receivables from Grain Borrowers

 

 

 

Grain originated loans receivable as of December 31, 2022

 

$

18,158

 

Allowance for loan losses as of December 31, 2022 (1)

 

 

(15,415

)

Microloans, net of allowance for loan losses as of December 31, 2022

 

$

2,743

 

Investments

 

 

 

Investment in Grain

 

$

1,000

 

Investment in Grain write-off in Q3 2022

 

 

(1,000

)

Investment in Grain as of December 31, 2022

 

 

 

Total exposure to Grain as of December 31, 2022

 

$

2,743

 

 

(1) Includes $0.03 million for allowance for unused commitments on the $0.4 million of unused commitments available to Grain originated borrowers reported in other liabilities in the accompanying Consolidated Statements of Financial Conditions. Excludes $1.4 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.

 

11


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Allowance for Loan Losses

 

 

For the Three Months Ended

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

 

(Dollars in thousands)

 

Allowance for loan losses at beginning of the period

$

25,108

 

 

$

17,535

 

 

$

16,893

 

 

$

16,352

 

 

$

16,008

 

Provision for loan losses

 

12,641

 

 

 

9,330

 

 

 

817

 

 

 

1,258

 

 

 

873

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily residences

 

 

 

 

 

 

 

 

 

 

 

 

 

(38

)

Nonresidential properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

(3,659

)

 

 

(1,799

)

 

 

(450

)

 

 

(751

)

 

 

(560

)

Total charge-offs

 

(3,659

)

 

 

(1,799

)

 

 

(450

)

 

 

(751

)

 

 

(598

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

 

 

 

 

 

 

 

156

 

 

 

 

 

 

8

 

Owner occupied

 

 

 

 

39

 

 

 

 

 

 

 

 

 

45

 

Multifamily residences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonresidential properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

 

 

 

1

 

 

 

91

 

 

 

2

 

 

 

15

 

Consumer

 

502

 

 

 

2

 

 

 

28

 

 

 

32

 

 

 

1

 

Total recoveries

 

502

 

 

 

42

 

 

 

275

 

 

 

34

 

 

 

69

 

Net (charge-offs) recoveries

 

(3,157

)

 

 

(1,757

)

 

 

(175

)

 

 

(717

)

 

 

(529

)

Allowance for loan losses at end of the period

$

34,592

 

 

$

25,108

 

 

$

17,535

 

 

$

16,893

 

 

$

16,352

 

 

 

12


 

 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Deposits

 

 

 

As of

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

 

(Dollars in thousands)

 

Demand

 

$

289,149

 

 

 

23.08

%

 

$

288,654

 

 

 

21.37

%

 

$

284,462

 

 

 

24.77

%

 

$

281,132

 

 

 

23.81

%

 

$

274,956

 

 

 

22.83

%

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA accounts

 

 

24,349

 

 

 

1.94

%

 

 

28,799

 

 

 

2.13

%

 

 

28,597

 

 

 

2.49

%

 

 

33,010

 

 

 

2.79

%

 

 

35,280

 

 

 

2.93

%

Money market accounts

 

 

317,815

 

 

 

25.38

%

 

 

360,293

 

 

 

26.66

%

 

 

181,156

 

 

 

15.77

%

 

 

169,847

 

 

 

14.38

%

 

 

186,893

 

 

 

15.51

%

Reciprocal deposits

 

 

114,049

 

 

 

9.11

%

 

 

162,858

 

 

 

12.05

%

 

 

151,264

 

 

 

13.17

%

 

 

160,510

 

 

 

13.59

%

 

 

143,221

 

 

 

11.89

%

Savings accounts

 

 

130,432

 

 

 

10.41

%

 

 

140,055

 

 

 

10.37

%

 

 

139,244

 

 

 

12.12

%

 

 

133,966

 

 

 

11.34

%

 

 

134,887

 

 

 

11.20

%

Total NOW, money market, reciprocal and savings accounts

 

 

586,645

 

 

 

46.84

%

 

 

692,005

 

 

 

51.21

%

 

 

500,261

 

 

 

43.55

%

 

 

497,333

 

 

 

42.10

%

 

 

500,281

 

 

 

41.53

%

Certificates of deposit of $250K or more

 

 

70,113

 

 

 

5.60

%

 

 

61,900

 

 

 

4.58

%

 

 

65,157

 

 

 

5.67

%

 

 

75,130

 

 

 

6.36

%

 

 

78,454

 

 

 

6.51

%

Brokered certificates of deposit (1)

 

 

98,754

 

 

 

7.89

%

 

 

98,760

 

 

 

7.31

%

 

 

62,650

 

 

 

5.45

%

 

 

79,282

 

 

 

6.71

%

 

 

79,320

 

 

 

6.58

%

Listing service deposits (1)

 

 

35,813

 

 

 

2.86

%

 

 

40,964

 

 

 

3.03

%

 

 

48,953

 

 

 

4.26

%

 

 

53,876

 

 

 

4.56

%

 

 

66,411

 

 

 

5.51

%

All other certificates of deposit less than $250K

 

 

171,938

 

 

 

13.73

%

 

 

168,906

 

 

 

12.50

%

 

 

187,245

 

 

 

16.30

%

 

 

194,412

 

 

 

16.46

%

 

 

205,294

 

 

 

17.04

%

Total certificates of deposit

 

 

376,618

 

 

 

30.08

%

 

 

370,530

 

 

 

27.42

%

 

 

364,005

 

 

 

31.68

%

 

 

402,700

 

 

 

34.09

%

 

 

429,479

 

 

 

35.64

%

Total interest-bearing deposits

 

 

963,263

 

 

 

76.92

%

 

 

1,062,535

 

 

 

78.63

%

 

 

864,266

 

 

 

75.23

%

 

 

900,033

 

 

 

76.19

%

 

 

929,760

 

 

 

77.17

%

Total deposits

 

$

1,252,412

 

 

 

100.00

%

 

$

1,351,189

 

 

 

100.00

%

 

$

1,148,728

 

 

 

100.00

%

 

$

1,181,165

 

 

 

100.00

%

 

$

1,204,716

 

 

 

100.00

%

(1)
As of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, there were $13.6 million, $13.8 million, $18.5 million, $19.0 million, and $29.0 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.

 

 

13


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Nonperforming Assets

 

 

As of Three Months Ended

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

 

(Dollars in thousands)

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

2,844

 

 

$

5,902

 

 

$

3,460

 

 

$

3,596

 

 

$

3,349

 

Owner occupied

 

961

 

 

 

971

 

 

 

1,140

 

 

 

962

 

 

 

1,284

 

Multifamily residential

 

 

 

 

 

 

 

 

 

 

 

 

 

1,200

 

Nonresidential properties

 

 

 

 

778

 

 

 

1,162

 

 

 

1,166

 

 

 

2,163

 

Construction and land

 

7,567

 

 

 

10,660

 

 

 

10,817

 

 

 

7,567

 

 

 

917

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

 

 

 

359

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-accrual loans (not including non-accruing troubled debt restructured loans)

$

11,372

 

 

$

18,670

 

 

$

16,579

 

 

$

13,291

 

 

$

8,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing troubled debt restructured loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

217

 

 

$

221

 

 

$

224

 

 

$

230

 

 

$

234

 

Owner occupied

 

2,027

 

 

 

2,215

 

 

 

1,746

 

 

 

2,192

 

 

 

2,196

 

Multifamily residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonresidential properties

 

93

 

 

 

95

 

 

 

96

 

 

 

98

 

 

 

100

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-accruing troubled debt restructured loans

 

2,337

 

 

 

2,531

 

 

 

2,066

 

 

 

2,520

 

 

 

2,530

 

Total non-accrual loans

$

13,709

 

 

$

21,201

 

 

$

18,645

 

 

$

15,811

 

 

$

11,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing troubled debt restructured loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

2,207

 

 

$

2,228

 

 

$

2,246

 

 

$

2,269

 

 

$

3,089

 

Owner occupied

 

1,328

 

 

 

1,254

 

 

 

2,019

 

 

 

2,313

 

 

 

2,374

 

Multifamily residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonresidential properties

 

708

 

 

 

715

 

 

 

725

 

 

 

726

 

 

 

732

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total accruing troubled debt restructured loans

$

4,243

 

 

$

4,197

 

 

$

4,990

 

 

$

5,308

 

 

$

6,195

 

Total non-performing assets and accruing troubled debt restructured loans

$

17,952

 

 

$

25,398

 

 

$

23,635

 

 

$

21,119

 

 

$

17,638

 

Total non-performing loans to total gross loans

 

0.90

%

 

 

1.50

%

 

 

1.39

%

 

 

1.20

%

 

 

0.87

%

Total non-performing assets to total assets

 

0.59

%

 

 

0.97

%

 

 

0.90

%

 

 

0.97

%

 

 

0.69

%

Total non-performing assets and accruing troubled debt restructured loans to total assets

 

0.78

%

 

 

1.16

%

 

 

1.14

%

 

 

1.30

%

 

 

1.07

%

 

 

14


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Average Balance Sheets

 

 

For the Three Months Ended December 31,

 

2022

 

2021

 

Average

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

Average

 

Outstanding

 

 

 

 

 

Average

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

(Dollars in thousands)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

$

1,478,308

 

 

$

18,550

 

 

4.98%

 

$

1,320,635

 

 

$

18,013

 

 

5.41%

Securities (3)

 

636,457

 

 

 

5,931

 

 

3.70%

 

 

113,826

 

 

 

566

 

 

1.97%

Other (4)

 

38,879

 

 

 

452

 

 

4.61%

 

 

43,346

 

 

 

73

 

 

0.67%

Total interest-earning assets

 

2,153,644

 

 

 

24,933

 

 

4.59%

 

 

1,477,807

 

 

 

18,652

 

 

5.01%

Non-interest-earning assets

 

96,051

 

 

 

 

 

 

 

 

134,798

 

 

 

 

 

 

Total assets

$

2,249,695

 

 

 

 

 

 

 

$

1,612,605

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA

$

25,349

 

 

$

22

 

 

0.34%

 

$

29,771

 

 

$

16

 

 

0.21%

Money market

 

503,286

 

 

 

4,095

 

 

3.23%

 

 

340,334

 

 

 

259

 

 

0.30%

Savings

 

139,115

 

 

 

8

 

 

0.02%

 

 

137,383

 

 

 

33

 

 

0.10%

Certificates of deposit

 

368,895

 

 

 

1,310

 

 

1.41%

 

 

433,571

 

 

 

907

 

 

0.83%

Total deposits

 

1,036,645

 

 

 

5,435

 

 

2.08%

 

 

941,059

 

 

 

1,215

 

 

0.51%

Advance payments by borrowers

 

12,942

 

 

 

 

 

0.00%

 

 

10,361

 

 

 

1

 

 

0.04%

Borrowings

 

369,832

 

 

 

3,332

 

 

3.57%

 

 

118,692

 

 

 

654

 

 

2.19%

Total interest-bearing liabilities

 

1,419,419

 

 

 

8,767

 

 

2.45%

 

 

1,070,112

 

 

 

1,870

 

 

0.69%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

325,616

 

 

 

 

 

 

 

 

320,074

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

2,424

 

 

 

 

 

 

 

 

33,506

 

 

 

 

 

 

Total non-interest-bearing liabilities

 

328,040

 

 

 

 

 

 

 

 

353,580

 

 

 

 

 

 

Total liabilities

 

1,747,459

 

 

 

8,767

 

 

 

 

 

1,423,692

 

 

 

1,870

 

 

 

Total equity

 

502,236

 

 

 

 

 

 

 

 

188,913

 

 

 

 

 

 

Total liabilities and total equity

$

2,249,695

 

 

 

 

 

2.45%

 

$

1,612,605

 

 

 

 

 

0.69%

Net interest income

 

 

 

$

16,166

 

 

 

 

 

 

 

$

16,782

 

 

 

Net interest rate spread (5)

 

 

 

 

 

 

2.14%

 

 

 

 

 

 

 

4.32%

Net interest-earning assets (6)

$

734,225

 

 

 

 

 

 

 

$

407,695

 

 

 

 

 

 

Net interest margin (7)

 

 

 

 

 

 

2.98%

 

 

 

 

 

 

 

4.51%

Average interest-earning assets to interest-bearing liabilities

 

 

 

 

 

 

151.73%

 

 

 

 

 

 

 

138.10%

 

 

(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 and FHLBNY stock dividends.
(5)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(6)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(7)
Net interest margin represents net interest income divided by average total interest-earning assets.

 

 

15


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Average Balance Sheets

 

 

 

For the Years Ended December 31,

 

 

2022

 

 

2021

 

 

Average

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

Average

 

 

Outstanding

 

 

 

 

 

Average

 

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

 

Balance

 

 

Interest

 

 

Yield/Rate

 

 

(Dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

$

1,375,723

 

 

$

69,865

 

 

 

5.08

%

 

$

1,312,505

 

 

$

65,532

 

 

 

4.99

%

Securities (3)

 

357,446

 

 

 

11,709

 

 

 

3.28

%

 

 

62,908

 

 

 

1,267

 

 

 

2.01

%

Other (4)

 

44,160

 

 

 

1,178

 

 

 

2.67

%

 

 

51,156

 

 

 

299

 

 

 

0.58

%

Total interest-earning assets

 

1,777,329

 

 

 

82,752

 

 

 

4.66

%

 

 

1,426,569

 

 

 

67,098

 

 

 

4.70

%

Non-interest-earning assets

 

164,324

 

 

 

 

 

 

 

 

 

89,152

 

 

 

 

 

 

 

Total assets

$

1,941,653

 

 

 

 

 

 

 

 

$

1,515,721

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA

$

30,151

 

 

$

65

 

 

 

0.22

%

 

$

30,851

 

 

$

109

 

 

 

0.35

%

Money market

 

393,555

 

 

 

6,275

 

 

 

1.59

%

 

 

310,611

 

 

 

1,168

 

 

 

0.38

%

Savings

 

138,137

 

 

 

128

 

 

 

0.09

%

 

 

133,244

 

 

 

146

 

 

 

0.11

%

Certificates of deposit

 

382,022

 

 

 

3,477

 

 

 

0.91

%

 

 

430,164

 

 

 

4,244

 

 

 

0.99

%

Total deposits

 

943,865

 

 

 

9,945

 

 

 

1.05

%

 

 

904,870

 

 

 

5,667

 

 

 

0.63

%

Advance payments by borrowers

 

11,514

 

 

 

5

 

 

 

0.04

%

 

 

10,106

 

 

 

4

 

 

 

0.04

%

Borrowings

 

206,969

 

 

 

6,199

 

 

 

3.00

%

 

 

121,319

 

 

 

2,581

 

 

 

2.13

%

Total interest-bearing liabilities

 

1,162,348

 

 

 

16,149

 

 

 

1.39

%

 

 

1,036,295

 

 

 

8,252

 

 

 

0.80

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

344,505

 

 

 

 

 

 

 

 

 

287,008

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

33,225

 

 

 

 

 

 

 

 

 

17,763

 

 

 

 

 

 

 

Total non-interest-bearing liabilities

 

377,730

 

 

 

 

 

 

 

 

 

304,771

 

 

 

 

 

 

 

Total liabilities

 

1,540,078

 

 

 

16,149

 

 

 

 

 

 

1,341,066

 

 

 

8,252

 

 

 

 

Total equity

 

401,575

 

 

 

 

 

 

 

 

 

174,655

 

 

 

 

 

 

 

Total liabilities and total equity

$

1,941,653

 

 

 

 

 

 

1.39

%

 

$

1,515,721

 

 

 

 

 

 

0.80

%

Net interest income

 

 

 

$

66,603

 

 

 

 

 

 

 

 

$

58,846

 

 

 

 

Net interest rate spread (5)

 

 

 

 

 

 

 

3.27

%

 

 

 

 

 

 

 

 

3.90

%

Net interest-earning assets (6)

$

614,981

 

 

 

 

 

 

 

 

$

390,274

 

 

 

 

 

 

 

Net interest margin (7)

 

 

 

 

 

 

 

3.75

%

 

 

 

 

 

 

 

 

4.13

%

Average interest-earning assets to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest-bearing liabilities

 

 

 

 

 

 

 

152.91

%

 

 

 

 

 

 

 

 

137.66

%

 

 

(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 and FHLBNY stock dividends.
(5)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(6)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(7)
Net interest margin represents net interest income divided by average total interest-earning assets.

 

 

16


 

Ponce Financial Group, Inc., as the successor by merger with PDL Community Bancorp, and Subsidiaries

Other Data

 

 

As of

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares issued

 

24,859,353

 

 

 

24,728,460

 

 

 

24,724,274

 

 

 

24,724,274

 

 

 

18,463,028

 

Less treasury shares

 

 

 

 

 

 

 

 

 

 

 

 

 

1,037,041

 

Common shares outstanding at end of period

 

24,859,353

 

 

 

24,728,460

 

 

 

24,724,274

 

 

 

24,724,274

 

 

 

17,425,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share

$

10.77

 

 

$

11.15

 

 

$

11.85

 

 

$

12.12

 

 

$

10.86

 

Tangible book value per common share

$

10.77

 

 

$

11.15

 

 

$

11.85

 

 

$

12.12

 

 

$

10.86

 

 

 

 

17