0000950170-23-021896 | 10-Q | XBRL Viewer | Ponce Financial Group INC

Premises and Equipment (Tables)

3 Months Ended

Mar. 31, 2023

Property Plant And Equipment [Abstract]

Premises and equipment at March 31, 2023 and December 31, 2022 are summarized as follows:


	March 31,			December 31,
	2023			2022
	(in thousands)
Land	$	932		$	932
Buildings and improvements		4,717			4,717
Leasehold improvements		15,945			15,808
Furniture, fixtures and equipment		8,595			8,497
		30,189			29,954
Less: accumulated depreciation and amortization		(12,974	)		(12,508	)
Total premises and equipment	$	17,215		$	17,446

Deposits - Summarized Deposits (Details) - USD ($)
$ in Thousands

Mar. 31, 2023

Dec. 31, 2022

Banking And Thrifts [Abstract]

Demand

$ 282,741

$ 289,149

NOW/IOLA accounts

21,735

24,349

Money market accounts

408,404

317,815

Reciprocal deposits

109,649

114,049

Savings accounts

127,731

130,432

Total NOW, money market, reciprocal and savings

667,519

586,645

Certificates of deposit of $250K or more

76,893

70,113

Brokered certificates of deposits

^[1]

98,754

Listing service deposits

^[1]

28,417

35,813

Certificates of deposit less than $250K

182,553

171,938

Total certificates of deposit

386,617

376,618

Total interest-bearing deposits

1,054,136

963,263

Total deposits

$ 1,336,877

$ 1,252,412

[1]	As of March 31, 2023 and December 31, 2022, there were $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.

Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 331	$ (6,820)
Net change in unrealized gain (losses) on securities:
Unrealized gain (losses)	1,564	(7,108)
Income (tax) benefit effect	(333)	1,529
Total other comprehensive income (loss), net of tax	1,231	(5,579)
Total comprehensive income (loss)	$ 1,562	$ (12,399)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Securities - Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities (Details) - USD ($)
$ in Thousands

Mar. 31, 2023

Dec. 31, 2022

Available-for-Sale Securities:

Amortized Cost

$ 149,196

$ 151,943

Gross Unrealized Losses

(20,876)

(22,438)

Fair Value

128,320

129,505

Held-to-Maturity Securities:

Amortized Cost

510,820

Amortized Cost, Allowance for Credit Losstes

(809)

Amortized Cost, after Allowance for Credit Loss

491,649

Gross Unrealized Gains

924

283

Gross Unrealized Losses

(10,761)

(15,252)

Fair Value

482,621

495,851

US Agency Bonds

Held-to-Maturity Securities:

Amortized Cost

25,000

35,000

Gross Unrealized Losses

(206)

(380)

Fair Value

24,794

34,620

U.S. Government Bonds

Available-for-Sale Securities:

Amortized Cost

2,987

2,985

Gross Unrealized Losses

(241)

(296)

Fair Value

2,746

2,689

Corporate Bonds

Available-for-Sale Securities:

Amortized Cost

25,816

25,824

Gross Unrealized Losses

(2,639)

(2,465)

Fair Value

23,177

23,359

Held-to-Maturity Securities:

Amortized Cost

82,500

Gross Unrealized Gains

Gross Unrealized Losses

(4,158)

(3,819)

Fair Value

78,342

78,738

Collateralized Mortgage Obligations

Available-for-Sale Securities:

Amortized Cost

43,421

^[1]

44,503

^[2]

Gross Unrealized Losses

(6,030)

^[1]

(6,726)

^[2]

Fair Value

37,391

^[1]

37,777

^[2]

Held-to-Maturity Securities:

Amortized Cost

230,531

^[1]

235,479

^[2]

Gross Unrealized Gains

853

^[1]

192

^[2]

Gross Unrealized Losses

(2,457)

^[1]

(5,558)

^[2]

Fair Value

228,927

^[1]

230,113

^[2]

FHLMC Certificates

Available-for-Sale Securities:

Amortized Cost

11,036

11,310

Gross Unrealized Losses

(1,490)

(1,676)

Fair Value

9,546

9,634

Held-to-Maturity Securities:

Amortized Cost

4,008

4,120

Gross Unrealized Losses

(245)

(268)

Fair Value

3,763

3,852

FNMA Certificates

Available-for-Sale Securities:

Amortized Cost

65,819

67,199

Gross Unrealized Losses

(10,474)

(11,271)

Fair Value

55,345

55,928

Held-to-Maturity Securities:

Amortized Cost

128,968

131,918

Gross Unrealized Losses

(3,695)

(5,227)

Fair Value

125,273

126,691

GNMA Certificates

Available-for-Sale Securities:

Amortized Cost

117

122

Gross Unrealized Losses

(2)

(4)

Fair Value

115

118

SBA Certificates

Held-to-Maturity Securities:

Amortized Cost

21,451

21,803

Gross Unrealized Gains

Fair Value

$ 21,522

$ 21,837

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

Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2023

Disclosure Of Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements

Note 14. Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by the Federal Reserve Board, the OCC and the U.S. Department of Housing and Urban Development. Failure to meet minimum capital requirements can initiate certain

mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s operations and financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation require the maintenance of minimum amounts and ratios (set forth in the table below) of total risk-based and Tier 1 capital to risk-weighted assets (as defined), common equity Tier 1 capital (as defined), and Tier 1 capital to adjusted total assets (as defined) adjusted total assets (as defined). As of March 31, 2023 and December 31, 2022, the applicable capital adequacy requirements specified below have been met.

The below minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions including dividend payments and certain discretionary bonus payments to executive officers. The applicable capital buffer for the Bank was 19.54% at March 31, 2023 and 22.53% at December 31, 2022.

The most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and the Bank must maintain minimum total risk-based, common equity risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There were no conditions or events since then that have changed the Bank's category.

The Company's and the Bank’s actual capital amounts and ratios as of March 31, 2023 and December 31, 2022 as compared to regulatory requirements are as follows:


									To Be Well
									Capitalized Under
						For Capital			Prompt Corrective
	Actual					Adequacy Purposes			Action Provisions
	Amount		Ratio			Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
March 31, 2023
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets	$	534,770		30.38	%	$	140,819	8.00%	$	176,024		10.00	%
Tier 1 Capital to Risk-Weighted Assets		512,652		29.12	%		105,614	6.00%		140,819		8.00	%
Common Equity Tier 1 Capital Ratio		512,652		29.12	%		79,211	4.50%		114,415		6.50	%
Tier 1 Capital to Total Assets		512,652		21.59	%		94,990	4.00%		118,738		5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets	$	481,303		27.54	%	$	139,808	8.00%	$	174,760		10.00	%
Tier 1 Capital to Risk-Weighted Assets		459,342		26.28	%		104,856	6.00%		139,808		8.00	%
Common Equity Tier 1 Capital Ratio		459,342		26.28	%		78,642	4.50%		113,594		6.50	%
Tier 1 Capital to Total Assets		459,342		19.51	%		94,169	4.00%		117,712		5.00	%


											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
December 31, 2022
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets	$	530,241		33.72	%	$	125,791		8.00	%	$	157,238		10.00	%
Tier 1 Capital to Risk-Weighted Assets		510,537		32.47	%		94,343		6.00	%		125,791		8.00	%
Common Equity Tier 1 Capital Ratio		510,537		32.47	%		70,757		4.50	%		102,205		6.50	%
Tier 1 Capital to Total Assets		510,537		26.29	%		77,665		4.00	%		97,082		5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets	$	476,519		30.53	%	$	124,883		8.00	%	$	156,104		10.00	%
Tier 1 Capital to Risk-Weighted Assets		456,816		29.26	%		93,662		6.00	%		124,883		8.00	%
Common Equity Tier 1 Capital Ratio		456,816		29.26	%		70,247		4.50	%		101,468		6.50	%
Tier 1 Capital to Total Assets		456,816		20.47	%		89,264		4.00	%		111,580		5.00	%

Ponce Bank, through its Mortgage World division, is subject to various net worth requirements in connection with lending agreements that Ponce Bank has entered with purchase facility lenders. Failure to maintain minimum capital requirements could result in the Bank’s Mortgage World division being unable to originate and service loans, and, therefore, could have a direct material effect on the Company’s consolidated financial statements.

The Bank's minimum net worth requirements as of March 31, 2023 and December 31, 2022 are reflected below:


	Minimum
	Requirement
	(in thousands)
March 31, 2023
HUD	$	1,000


	Minimum
	Requirement
	(in thousands)
December 31, 2022
HUD	$	1,000

As of March 31, 2023 and December 31, 2022, the Bank was in compliance with the applicable minimum capital requirements specified above.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Compensation and Benefit Plans - Schedule of Restricted Stock Units Awards Activity and Related Information (Details) - Restricted Stock Units - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Non-vested, beginning of year	245,840	237,687
Number of Shares, Conversion and reorganization		93,933
Number of Shares, Granted	0	63,715
Number of Shares, Vested	(4,147)	(149,495)
Number of Shares, Forfeited	0	0
Number of Shares, Non-vested, ending of year	241,693	245,840
Weighted-Average Grant Date Fair Value Per Share, Non-vested, beginning of year	$ 9.40	$ 12.65
Weighted-Average Grant Date Fair Value Per Share, Conversion and reorganization		0
Weighted-Average Grant Date Fair Value Per Share, Granted	0	10.44
Weighted-Average Grant Date Fair Value Per Share, Vested	9.27	9.11
Weighted-Average Grant Date Fair Value Per Share, Forfeited	0	0
Weighted-Average Grant Date Fair Value Per Share, Non-vested, ending of year	$ 9.40	$ 9.40

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 15. Accumulated Other Comprehensive Income (Loss)

The accumulated other comprehensive income (loss) is as follows:


	March 31, 2023
	December 31, 2022			Change		March 31, 2023
	(in thousands)
Unrealized gains (losses) on available-for-sale securities, net	$	(17,860	)	$	1,231	$	(16,629	)
Total	$	(17,860	)	$	1,231	$	(16,629	)


	December 31, 2022
	December 31, 2021			Change			December 31, 2022
	(in thousands)
Unrealized gains on available-for-sale securities, net	$	(1,456	)	$	(16,404	)	$	(17,860	)
Total	$	(1,456	)	$	(16,404	)	$	(17,860	)

Deposits (Tables)

3 Months Ended

Mar. 31, 2023

Banking And Thrifts [Abstract]

Summarized Deposits

Deposits at March 31, 2023 and December 31, 2022 are summarized as follows:


	March 31,		December 31,
	2023		2022
	(in thousands)
Demand	$	282,741	$	289,149
Interest-bearing deposits:
NOW/IOLA accounts		21,735		24,349
Money market accounts		408,404		317,815
Reciprocal deposits		109,649		114,049
Savings accounts		127,731		130,432
Total NOW, money market, reciprocal and savings		667,519		586,645
Certificates of deposit of $250K or more		76,893		70,113
Brokered certificates of deposits (1)		98,754		98,754
Listing service deposits (1)		28,417		35,813
Certificates of deposit less than $250K		182,553		171,938
Total certificates of deposit		386,617		376,618
Total interest-bearing deposits		1,054,136		963,263
Total deposits	$	1,336,877	$	1,252,412

(1)

As of March 31, 2023 and December 31, 2022, there were $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.

Scheduled Maturities of Certificates of Deposit

At March 31, 2023 scheduled maturities of certificates of deposit were as follows:


	(in thousands)
2023	$	160,146
2024		88,763
2025		45,094
2026		43,891
2027		48,544
Thereafter		179
	$	386,617

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)

+ Details

Leases - Summary of Lease Expense and Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lessee, Lease, Description [Line Items]
Total lease cost	$ 1,056	$ 1,073
Occupancy and equipment
Lessee, Lease, Description [Line Items]
Operating lease cost	1,015	1,021
Variable lease cost	31	47
Other operating expenses
Lessee, Lease, Description [Line Items]
Operating lease cost	4	1
Short-term lease cost	$ 6	$ 4

Income Taxes - Significant Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Allowance for loan losses	$ 9,485	$ 11,324
Interest on nonaccrual loans	537	317
Unrealized loss on available-for-sale securities	4,444	4,777
Amortization of intangible assets	27	32
Operating lease liabilities	11,230	11,304
Net operating losses	9,296	9,119
Charitable contribution carryforward	1,872	1,859
Compensation and benefits	788	562
Other	1,418	478
Total gross deferred tax assets	39,097	39,772
Deferred tax liabilities:
Depreciation of premises and equipment	1,049	1,049
Right of use assets	10,850	10,941
Deferred loan fees	687	671
Other	29	29
Total gross deferred tax liabilities	12,615	12,690
Valuation allowance	11,069	10,945
Net deferred tax assets	$ 15,413	$ 16,137

Commitments, Contingencies and Credit Risk - Additional Information (Details) - USD ($)		1 Months Ended		3 Months Ended
	Oct. 01, 2022	Apr. 30, 2022	Dec. 31, 2021	Mar. 31, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Repurchase or indemnification requests for loans sold				$ 0
Lease expiration year				2038
Unfunded Commitments with Bamboo
Loss Contingencies [Line Items]
Membership Interest Units purchased	180
Maximum percentage of total issued and outstanding membership interest	18.00%
Purchase price of Membership Interest Units	$ 2,500,000
Additional contribution committed				$ 500,000
Total investment committed				3,000,000.0
Unfunded Commitments with Oaktree
Loss Contingencies [Line Items]
Amount committed to invest			$ 5,000,000.0
Total unfunded commitment				2,400,000	$ 2,800,000
Unfunded Commitments with Silvergate
Loss Contingencies [Line Items]
Amount committed to invest		$ 5,000,000.0
Total unfunded commitment				$ 2,700,000	$ 3,300,000

Borrowings - Schedule of Borrowed Funds FHLBNY and Correspondent Bank Advances Maturity and Call Date (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Line Of Credit Facility [Line Items]
2023	$ 24,775	$ 178,375
2024	302,500	50,000
2025	50,000	50,000
2027	212,000	183,000
Thereafter	59,100
Total	648,375	517,375
2023	24,775	178,375
2024	302,500	50,000
2025	50,000	50,000
2027	212,000	183,000
Thereafter	59,100	50,000
Total	$ 648,375	$ 517,375
2023	2.81%	4.32%
2024	4.51%	4.75%
2025	4.41%	4.41%
2027	3.44%	3.25%
Thereafter	3.43%	3.35%
Total	3.99%	3.90%
FHLBNY
Line Of Credit Facility [Line Items]
Overnight line of credit advance		$ 6,000
Overnight line of credit advance		$ 6,000
Overnight advances		4.60%

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Earnings Per Common Share

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share:


	For the Three Months Ended March 31,
	2023		2022
	(Dollars in thousands except share data)

Net income (loss)	$	331	$	(6,820	)

Common shares outstanding for basic EPS:
Weighted average common shares outstanding		24,862,118		22,744,101
Less: Weighted average unallocated Employee Stock Ownership Plan (ESOP) shares		1,569,105		1,022,988
Basic weighted average common shares outstanding		23,293,013		21,721,113
Basic earnings (loss) per common share	$	0.01	$	(0.31	)
Potential dilutive common shares:
Add: Dilutive effect of restricted stock awards and stock options		31,519		—
Diluted weighted average common shares outstanding		23,324,532		21,721,113
Diluted earnings (loss) per common share	$	0.01	$	(0.31	)

Compensation and Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2023

Compensation And Retirement Disclosure [Abstract]

Summary of ESOP Shares

A summary of the ESOP shares as of March 31, 2023 and December 31, 2022 are as follows:


	March 31, 2023		December 31, 2022
	(Dollars in thousands)
Shares committed-to-be released		167,180		133,744
Shares allocated to participants		358,630		354,227
Unallocated shares		1,536,040		1,569,475
Total		2,061,850		2,057,446
Fair value of unallocated shares	$	12,058	$	14,628

Schedule of Restricted Stock Units Awards Activity and Related Information

A summary of the Company’s restricted stock unit awards activity and related information for three months ended March 31, 2023 and year ended December 31, 2022 are as follows:


	March 31, 2023
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Non-vested, beginning of year		245,840		$	9.40
Granted		—			—
Vested		(4,147	)		9.27
Forfeited		—			—
Non-vested at March 31		241,693		$	9.40

	December 31, 2022
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Non-vested, beginning of year		237,687		$	12.65
Conversion and reorganization		93,933			—
Granted		63,715			10.44
Vested		(149,495	)		9.11
Forfeited		—			—
Non-vested at December 31		245,840		$	9.40

Schedule of Stock Option Awards Activity and Related Information

A summary of the Company’s stock option awards activity and related information for three months ended March 31, 2023 and year ended December 31, 2022 are as follows:


	March 31, 2023
	Options		Weighted- Average Exercise Price Per Share
Outstanding, beginning of year		352,621	$	8.97
Granted		—		—
Exercised		—		—
Forfeited		—		—
Outstanding at March 31 (1)		352,621		8.97
Exercisable at March 31 (1)		191,752	$	8.83


	December 31, 2022
	Options		Weighted- Average Exercise Price Per Share
Outstanding, beginning of year		203,766	$	12.02
Conversion and reorganization		80,526	$	—
Granted		68,329		10.44
Exercised		—		—
Forfeited		—		—
Outstanding at December 31 (1)		352,621	$	8.97
Exercisable at December 31 (1)		190,508	$	8.83

(1)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at respective periods and the stated exercise price of the underlying options, was $0 for outstanding options and $0 for exercisable options at March 31, 2023 and was $0.1 million for outstanding options and $0.1 million for exercisable options December 31, 2022.

Nature of Business and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Estimated Useful Lives of Assets

Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation.

Depreciation is computed and charged to operations using the straight-line method over the estimated useful lives of the respective assets as follows:


		Years
Buildings		39
Building improvements		15 - 39
Furniture, fixtures, and equipment		3 - 10

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (loss), net of tax	$ 1,231	$ (16,404)
Unrealized gains (losses) on available-for-sale securities, net
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss) beginning balance	(17,860)	(1,456)
Other comprehensive income (loss), net of tax	1,231	(16,404)
Accumulated other comprehensive income (loss) ending balance	(16,629)	(17,860)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss) beginning balance	(17,860)	(1,456)
Accumulated other comprehensive income (loss) ending balance	$ (16,629)	$ (17,860)

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

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- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (b)(3)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=128097895&loc=SL121327923-165333

+ Details

Fair Value - Summary of Changes in Derivatives From Interest Rate Lock Commitments are Measured at Fair Value (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract]
Beginning Balance	$ 22
Change in fair value of derivative instrument reported in earnings	97
Ending Balance	$ 119

Securities - Company's Securities' Gross Unrealized Losses and Fair Values, Aggregated by Length of Time Individual Securities Have Been in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Available-for-Sale Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	$ 5,701	$ 29,904
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(448)	(2,720)
Securities With Gross Unrealized Losses 12 Months or More, Fair Value	122,619	99,601
Securities With Gross Unrealized Losses 12 Months or More, Unrealized Losses	(20,428)	(19,718)
Securities With Gross Unrealized Losses, Total Fair Value	128,320	129,505
Securities With Gross Unrealized Losses, Total Unrealized Losses	(20,876)	(22,438)
Held-to-Maturity Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	355,731	444,969
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(10,622)	(15,099)
Securities With Gross Unrealized Losses 12 Months or More, Fair Value	683	675
Securities With Gross Unrealized Losses 12 Months or More, Unrealized Losses	(139)	(153)
Securities With Gross Unrealized Losses, Total Fair Value	356,414	445,644
Securities With Gross Unrealized Losses, Total Unrealized Losses	(10,761)	(15,252)
U.S. Government Bonds
Available-for-Sale Securities:
Securities With Gross Unrealized Losses 12 Months or More, Fair Value	2,746	2,689
Securities With Gross Unrealized Losses 12 Months or More, Unrealized Losses	(241)	(296)
Securities With Gross Unrealized Losses, Total Fair Value	2,746	2,689
Securities With Gross Unrealized Losses, Total Unrealized Losses	(241)	(296)
Corporate Bonds
Available-for-Sale Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	5,586	13,138
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(446)	(1,186)
Securities With Gross Unrealized Losses 12 Months or More, Fair Value	17,591	10,221
Securities With Gross Unrealized Losses 12 Months or More, Unrealized Losses	(2,193)	(1,279)
Securities With Gross Unrealized Losses, Total Fair Value	23,177	23,359
Securities With Gross Unrealized Losses, Total Unrealized Losses	(2,639)	(2,465)
Held-to-Maturity Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	78,342	75,181
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(4,158)	(3,819)
Securities With Gross Unrealized Losses, Total Fair Value	78,342	75,181
Securities With Gross Unrealized Losses, Total Unrealized Losses	(4,158)	(3,819)
US Agency Bonds
Held-to-Maturity Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	24,794	24,620
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(206)	(380)
Securities With Gross Unrealized Losses, Total Fair Value	24,794	24,620
Securities With Gross Unrealized Losses, Total Unrealized Losses	(206)	(380)
Collateralized Mortgage Obligations
Available-for-Sale Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value		4,537
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses		(300)
Securities With Gross Unrealized Losses 12 Months or More, Fair Value	37,391	33,240
Securities With Gross Unrealized Losses 12 Months or More, Unrealized Losses	(6,030)	(6,426)
Securities With Gross Unrealized Losses, Total Fair Value	37,391	37,777
Securities With Gross Unrealized Losses, Total Unrealized Losses	(6,030)	(6,726)
Held-to-Maturity Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	124,242	215,300
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(2,457)	(5,558)
Securities With Gross Unrealized Losses, Total Fair Value	124,242	215,300
Securities With Gross Unrealized Losses, Total Unrealized Losses	(2,457)	(5,558)
FHLMC Certificates
Available-for-Sale Securities:
Securities With Gross Unrealized Losses 12 Months or More, Fair Value	9,546	9,634
Securities With Gross Unrealized Losses 12 Months or More, Unrealized Losses	(1,490)	(1,676)
Securities With Gross Unrealized Losses, Total Fair Value	9,546	9,634
Securities With Gross Unrealized Losses, Total Unrealized Losses	(1,490)	(1,676)
Held-to-Maturity Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	3,080	3,177
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(106)	(115)
Securities With Gross Unrealized Losses 12 Months or More, Fair Value	683	675
Securities With Gross Unrealized Losses 12 Months or More, Unrealized Losses	(139)	(153)
Securities With Gross Unrealized Losses, Total Fair Value	3,763	3,852
Securities With Gross Unrealized Losses, Total Unrealized Losses	(245)	(268)
FNMA Certificates
Available-for-Sale Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value		12,111
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses		(1,230)
Securities With Gross Unrealized Losses 12 Months or More, Fair Value	55,345	43,817
Securities With Gross Unrealized Losses 12 Months or More, Unrealized Losses	(10,474)	(10,041)
Securities With Gross Unrealized Losses, Total Fair Value	55,345	55,928
Securities With Gross Unrealized Losses, Total Unrealized Losses	(10,474)	(11,271)
Held-to-Maturity Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	125,273	126,691
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(3,695)	(5,227)
Securities With Gross Unrealized Losses, Total Fair Value	125,273	126,691
Securities With Gross Unrealized Losses, Total Unrealized Losses	(3,695)	(5,227)
GNMA Certificates
Available-for-Sale Securities:
Securities With Gross Unrealized Losses Less Than 12 Months, Fair Value	115	118
Securities With Gross Unrealized Losses Less Than 12 Months, Unrealized Losses	(2)	(4)
Securities With Gross Unrealized Losses, Total Fair Value	115	118
Securities With Gross Unrealized Losses, Total Unrealized Losses	$ (2)	$ (4)

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Summary of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:


	March 31,			December 31,
	2023			2022
	(Dollars in thousands)
Operating lease ROU assets	$	33,147		$	33,423
Operating lease liabilities		34,308			34,532
Weighted-average remaining lease term-operating leases	13.2 years			13.5 years
Weighted average discount rate-operating leases		4.9	%		4.9	%

Summary of Lease Expense and Cash Flow Information Related to Leases

The components of lease expense and cash flow information related to leases were as follows:


		For the Three Months Ended March 31,
		2023		2022
		(Dollars in thousands)
Lease Cost
Operating lease cost	Occupancy and equipment	$	1,015	$	1,021
Operating lease cost	Other operating expenses		4		1
Short-term lease cost	Other operating expenses		6		4
Variable lease cost	Occupancy and equipment		31		47
Total lease cost		$	1,056	$	1,073

Summary of Minimum Annual Rental Payments under Terms of Leases

The Company’s minimum annual rental payments under the terms of the leases are as follows at March 31, 2023:


	Minimum Rental
Years ended December 31:	(in thousands)
Remainder of 2023	$	2,864
2024		3,833
2025		3,635
2026		3,422
2027		3,495
2028		3,566
Thereafter		25,476
Total Minimum payments required		46,291
Less: implied interest		11,983
Present value of lease liabilities	$	34,308

Nature of Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details)	3 Months Ended
	Mar. 31, 2023
Buildings
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	39 years
Minimum \| Building Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	15 years
Minimum \| Furniture, Fixtures and Equipment
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	3 years
Maximum \| Building Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	39 years
Maximum \| Furniture, Fixtures and Equipment
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	10 years

Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2023

Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]

Summary of Bank's Actual Capital Amounts and Ratios As Compared to Regulatory Requirements

The Company's and the Bank’s actual capital amounts and ratios as of March 31, 2023 and December 31, 2022 as compared to regulatory requirements are as follows:


									To Be Well
									Capitalized Under
						For Capital			Prompt Corrective
	Actual					Adequacy Purposes			Action Provisions
	Amount		Ratio			Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
March 31, 2023
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets	$	534,770		30.38	%	$	140,819	8.00%	$	176,024		10.00	%
Tier 1 Capital to Risk-Weighted Assets		512,652		29.12	%		105,614	6.00%		140,819		8.00	%
Common Equity Tier 1 Capital Ratio		512,652		29.12	%		79,211	4.50%		114,415		6.50	%
Tier 1 Capital to Total Assets		512,652		21.59	%		94,990	4.00%		118,738		5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets	$	481,303		27.54	%	$	139,808	8.00%	$	174,760		10.00	%
Tier 1 Capital to Risk-Weighted Assets		459,342		26.28	%		104,856	6.00%		139,808		8.00	%
Common Equity Tier 1 Capital Ratio		459,342		26.28	%		78,642	4.50%		113,594		6.50	%
Tier 1 Capital to Total Assets		459,342		19.51	%		94,169	4.00%		117,712		5.00	%


											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
December 31, 2022
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets	$	530,241		33.72	%	$	125,791		8.00	%	$	157,238		10.00	%
Tier 1 Capital to Risk-Weighted Assets		510,537		32.47	%		94,343		6.00	%		125,791		8.00	%
Common Equity Tier 1 Capital Ratio		510,537		32.47	%		70,757		4.50	%		102,205		6.50	%
Tier 1 Capital to Total Assets		510,537		26.29	%		77,665		4.00	%		97,082		5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets	$	476,519		30.53	%	$	124,883		8.00	%	$	156,104		10.00	%
Tier 1 Capital to Risk-Weighted Assets		456,816		29.26	%		93,662		6.00	%		124,883		8.00	%
Common Equity Tier 1 Capital Ratio		456,816		29.26	%		70,247		4.50	%		101,468		6.50	%
Tier 1 Capital to Total Assets		456,816		20.47	%		89,264		4.00	%		111,580		5.00	%

Mortgage World Bankers Inc

Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]

Summary of Bank's Actual Capital Amounts and Ratios As Compared to Regulatory Requirements

The Bank's minimum net worth requirements as of March 31, 2023 and December 31, 2022 are reflected below:


	Minimum
	Requirement
	(in thousands)
March 31, 2023
HUD	$	1,000


	Minimum
	Requirement
	(in thousands)
December 31, 2022
HUD	$	1,000

Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Note 11. Earnings Per Share

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share:


	For the Three Months Ended March 31,
	2023		2022
	(Dollars in thousands except share data)

Net income (loss)	$	331	$	(6,820	)

Common shares outstanding for basic EPS:
Weighted average common shares outstanding		24,862,118		22,744,101
Less: Weighted average unallocated Employee Stock Ownership Plan (ESOP) shares		1,569,105		1,022,988
Basic weighted average common shares outstanding		23,293,013		21,721,113
Basic earnings (loss) per common share	$	0.01	$	(0.31	)
Potential dilutive common shares:
Add: Dilutive effect of restricted stock awards and stock options		31,519		—
Diluted weighted average common shares outstanding		23,324,532		21,721,113
Diluted earnings (loss) per common share	$	0.01	$	(0.31	)

Loans Receivable and Allowance for Credit Losses - Summary of Allowance for Off-Balance-Sheet Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Off-Balance-Sheet, Credit Loss, Liability [Abstract]
Balance at beginning of period	$ 354	$ 229
Impact on CECL adoption	948
Provision	985	17
Allowance for credit losses	$ 2,287	$ 246

Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Cash and due from banks:
Cash	$ 83,670	$ 34,074
Interest-bearing deposits in banks	101,017	20,286
Total cash and cash equivalents	184,687	54,360
Available-for-sale securities, at fair value (Note 3)	128,320	129,505
Held-to-maturity securities, net of allowance for credit losses of $809 at March 31, 2023 and $0 at December 31, 2022; at amortized cost (fair value 2023 $482,621; 2022 $495,851) (Note 3)	491,649	510,820
Placements with banks	1,245	1,494
Mortgage loans held for sale, at fair value	2,987	1,979
Loans receivable, net of allowance for credit losses - 2023 $28,975; 2022 $34,592 (Note 4)	1,614,428	1,493,127
Accrued interest receivable	15,435	15,049
Premises and equipment, net (Note 5)	17,215	17,446
Right of use assets (Note 6)	33,147	33,423
Federal Home Loan Bank of New York (FHLBNY) stock, at cost	19,209	24,661
Deferred tax assets (Note 9)	15,413	16,137
Other assets	15,799	13,988
Total assets	2,539,534	2,311,989
Liabilities:
Deposits (Note 7)	1,336,877	1,252,412
Operating lease liabilities	34,308	34,532
Accrued interest payable	1,767	1,390
Advance payments by borrowers for taxes and insurance	14,902	9,724
Borrowings (Note 8)	648,375	517,375
Other liabilities	7,264	3,856
Total liabilities	2,043,493	1,819,289
Commitments and contingencies (Note 12)
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized, 225,000 shares issued and outstanding as of March 31, 2023 and as of December 31, 2022.	225,000	225,000
Common stock, $0.01 par value; 200,000,000 shares authorized; 24,865,476 shares issued and 24,863,500 shares outstanding as of March 31, 2023 and 24,861,329 shares issued and 24,859,353 shares outstanding as of December 31, 2022	249	249
Treasury stock, at cost; 1,976 shares as of March 31, 2023 and December 31, 2022 (Note 10)	(2)	(2)
Additional paid-in-capital	206,883	206,508
Retained earnings	94,399	92,955
Accumulated other comprehensive loss (Note 15)	(16,629)	(17,860)
Unearned compensation - ESOP; 1,536,040 shares as of March 31, 2023 and 1,569,475 shares as of December 31, 2022 (Note 10)	(13,859)	(14,150)
Total stockholders' equity	496,041	492,700
Total liabilities and stockholders' equity	$ 2,539,534	$ 2,311,989

Loans Receivable and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Summary of Loans

Loans receivable at March 31, 2023 and December 31, 2022 are summarized as follows:


	March 31,			December 31,
	2023			2022
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	354,559		$	343,968
Owner-Occupied		149,481			134,878
Multifamily residential		553,430			494,667
Nonresidential properties		314,560			308,043
Construction and land		235,157			185,018
Total mortgage loans		1,607,187			1,466,574
Nonmortgage loans:
Business loans (1)		19,890			39,965
Consumer loans (2)		14,227			19,129
Total non-mortgage loans		34,117			59,094
Total loans, gross		1,641,304			1,525,668
Net deferred loan origination costs		2,099			2,051
Allowance for Credit Losses		(28,975	)		(34,592	)
Loans receivable, net	$	1,614,428		$	1,493,127

(1)

As of March 31, 2023 and December 31, 2022, business loans include $3.6 million and $20.0 million, respectively, of SBA Paycheck Protection Program (“PPP”) loans.

(2)

As of March 31, 2023 and December 31, 2022, consumer loans include $13.4 million and $18.2 million, respectively, of microloans originated by Grain through its mobile application that is geared to the underbanked and new generations entering the financial services market and uses non-traditional underwriting methodologies.

Schedule of Credit Risk Ratings by Loan Segment

The following tables present credit risk ratings by loan segment as of March 31, 2023 and December 31, 2022:


	March 31, 2023
	Mortgage Loans								Nonmortgage Loans
							Construction						Total
	1-4 Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	487,441	$	551,992	$	314,435	$	223,251	$	19,849	$	14,227	$	1,611,195
Special mention		5,283		1,439		—		—		—		—		6,722
Substandard		11,316		—		125		11,906		40		—		23,387
Total	$	504,040	$	553,430	$	314,560	$	235,157	$	19,890	$	14,227	$	1,641,304


	December 31, 2022
	Mortgage Loans								Nonmortgage Loans
							Construction						Total
	1-4 Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	462,126	$	492,556	$	307,307	$	173,351	$	39,965	$	19,129	$	1,494,434
Special mention		7,692		1,437		606		—		—		—		9,735
Substandard		9,028		674		130		11,667		—		—		21,499
Total	$	478,846	$	494,667	$	308,043	$	185,018	$	39,965	$	19,129	$	1,525,668

Schedule of Aging Analysis of Loans

An aging analysis of loans, as of March 31, 2023 and December 31, 2022, is as follows:


	March 31, 2023
			30-59		60-89		90 Days						90 Days
			Days		Days		or More				Nonaccrual		or More
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	350,105	$	2,589	$	—	$	1,865	$	354,559	$	3,049	$	—
Owner-Occupied		146,929		493		—		2,059		149,481		4,265		—
Multifamily residential		550,939		1,052		—		1,439		553,430		—		—
Nonresidential properties		310,591		3,969		—		—		314,560		91		—
Construction and land		223,252		—		—		11,905		235,157		11,906		—
Nonmortgage loans:
Business		17,393		4		1		2,492		19,890		40		2,452
Consumer		12,931		752		544		—		14,227		—		—
Total	$	1,612,140	$	8,859	$	545	$	19,760	$	1,641,304	$	19,351	$	2,452


	December 31, 2022
			30-59		60-89		90 Days						90 Days
			Days		Days		or More				Nonaccrual		or More
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	340,495	$	1,530	$	78	$	1,865	$	343,968	$	3,061	$	—
Owner-Occupied		131,510		2,553		—		815		134,878		2,987		—
Multifamily residential		490,024		4,643		—		—		494,667		—		—
Nonresidential properties		303,190		4,246		607		—		308,043		93		—
Construction and land		173,351		—		4,100		7,567		185,018		7,567		—
Nonmortgage loans:
Business		27,657		1,466		7,869		2,973		39,965		—		2,973
Consumer		16,743		1,267		1,119		—		19,129		—		—
Total	$	1,482,970	$	15,705	$	13,773	$	13,220	$	1,525,668	$	13,708	$	2,973

Schedule of Composition of Allowance for Loan Losses and Related Recorded Investment

The following schedules detail the composition of the allowance for credit losses on loans and the related recorded investment in loans as of and for the three months ended March 31, 2023 and 2022, and as of and for the year ended December 31, 2022:



	For the Three Months Ended March 31, 2023
	Mortgage Loans												Nonmortgage Loans					Total
	1-4 Family Investor Owned		1-4 Family Owner Occupied		Multifamily			Nonresidential		Construction and Land			Business		Consumer			For the Period
	(in thousands)
Allowance for Credit Losses:
Balance, beginning of period	$	3,863	$	1,723	$	8,021		$	2,724	$	2,683		$	120	$	15,458		$	34,592
Provision (benefit) charged to expense		135		182		455			16		750			1		(1,860	)		(321	)
Impact of CECL adoption		766		146		(3,962	)		578		(911	)		236		57			(3,090	)
Charge-offs		—		—		—			—		—			—		(2,569	)		(2,569	)
Recoveries		—		—		—			—		—			—		363			363
Balance, end of period	$	4,764	$	2,051	$	4,514		$	3,318	$	2,522		$	357	$	11,449		$	28,975
Ending balance: individually evaluated for impairment	$	60	$	100	$	—		$	37	$	—		$	40	$	—		$	237
Ending balance: collectively evaluated for impairment		4,704		1,951		4,514			3,281		2,522			317		11,449			28,738
Total	$	4,764	$	2,051	$	4,514		$	3,318	$	2,522		$	357	$	11,449		$	28,975
Loans:
Ending balance: individually evaluated for impairment	$	5,234	$	5,576	$	1,439		$	792	$	11,905		$	40	$	—		$	24,986
Ending balance: collectively evaluated for impairment		349,325		143,905		551,991			313,768		223,252			19,850		14,227			1,616,318
Total	$	354,559	$	149,481	$	553,430		$	314,560	$	235,157		$	19,890	$	14,227		$	1,641,304


	For the Three Months Ended March 31, 2022
	Mortgage Loans												Nonmortgage Loans					Total
	1-4 Family Investor Owned		1-4 Family Owner Occupied			Multifamily		Nonresidential		Construction and Land			Business		Consumer			For the Period
	(in thousands)
Allowance for loan losses:
Balance, beginning of period	$	3,540	$	1,178		$	5,684	$	2,165	$	2,024		$	306	$	1,455		$	16,352
Provision charged to expense		41		(6	)		304		104		(7	)		55		767			1,258
Charge-offs		—		—			—		—		—			—		(751	)		(751	)
Recoveries		—		—			—		—		—			2		32			34
Balance, end of period	$	3,581	$	1,172		$	5,988	$	2,269	$	2,017		$	363	$	1,503		$	16,893
Ending balance: individually evaluated for impairment	$	93	$	114		$	—	$	38	$	—		$	—	$	—		$	245
Ending balance: collectively evaluated for impairment		3,488		1,058			5,988		2,231		2,017			363		1,503			16,648
Total	$	3,581	$	1,172		$	5,988	$	2,269	$	2,017		$	363	$	1,503		$	16,893
Loans:
Ending balance: individually evaluated for impairment	$	5,970	$	4,828		$	—	$	1,991	$	7,567		$	—	$	—		$	20,356
Ending balance: collectively evaluated for impairment		317,472		90,406			368,133		249,902		137,314			100,253		31,899			1,295,379
Total	$	323,442	$	95,234		$	368,133	$	251,893	$	144,881		$	100,253	$	31,899		$	1,315,735


	For the Year Ended December 31, 2022
	Mortgage Loans										Nonmortgage Loans						Total
	1-4 Family Investor Owned		1-4 Family Owner Occupied		Multifamily		Nonresidential		Construction and Land		Business			Consumer			For the Period
	(in thousands)
Allowance for loan losses:
Balance, beginning of year	$	3,540	$	1,178	$	5,684	$	2,165	$	2,024	$	306		$	1,455		$	16,352
Provision charged to expense		167		506		2,337		559		659		(280	)		20,098			24,046
Charge-offs		—		—		—		—		—		—			(6,660	)		(6,660	)
Recoveries		156		39		—		—		—		94			565			854
Balance, end of year	$	3,863	$	1,723	$	8,021	$	2,724	$	2,683	$	120		$	15,458		$	34,592
Ending balance: individually evaluated for impairment	$	63	$	96	$	—	$	37	$	—	$	—		$	—		$	196
Ending balance: collectively evaluated for impairment		3,800		1,627		8,021		2,687		2,683		120			15,458			34,396
Total	$	3,863	$	1,723	$	8,021	$	2,724	$	2,683	$	120		$	15,458		$	34,592
Loans:
Ending balance: individually evaluated for impairment	$	5,269	$	4,315	$	—	$	801	$	7,567	$	—		$	—		$	17,952
Ending balance: collectively evaluated for impairment		338,699		130,563		494,667		307,242		177,451		39,965			19,129			1,507,716
Total	$	343,968	$	134,878	$	494,667	$	308,043	$	185,018	$	39,965		$	19,129		$	1,525,668

Schedule of Information Relates to Impaired Loans

The following information relates to impaired loans as of and for the three months ended March 31, 2023 and 2022 and as of and for the year ended December 31, 2022:


	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and For the Three Months Ended March 31, 2023	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	11,212	$	9,452	$	1,358	$	10,810	$	160	$	10,197	$	83
Multifamily residential		1,437		1,439		—		1,439		—		720		—
Nonresidential properties		833		452		340		792		37		796		7
Construction and land		11,905		11,905		—		11,905		—		9,736		—
Nonmortgage loans:
Business		40		—		40		40		40		20		—
Consumer		—				—		—		—		—		—
Total	$	25,427	$	23,248	$	1,738	$	24,986	$	237	$	21,469	$	90

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and For the Three Months Ended March 31, 2022	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	11,131	$	8,386	$	2,412	$	10,798	$	207	$	11,970	$	76
Multifamily residential		—		—		—		—		—		1,104		—
Nonresidential properties		2,023		1,636		355		1,991		38		3,399		20
Construction and land		7,567		7,567		—		7,567		—		1,568		17
Nonmortgage loans:
Business		—		—		—		—		—		12		—
Consumer		—		—		—		—		—		24		—
Total	$	20,721	$	17,589	$	2,767	$	20,356	$	245	$	18,077	$	113


	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and for the Year Ended December 31, 2022	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	9,986	$	7,827	$	1,757	$	9,584	$	159	$	11,072	$	307
Multifamily residential		—		—		—		—		—		630		—
Nonresidential properties		843		457		344		801		37		1,930		30
Construction and land		7,567		7,567		—		7,567		—		6,408		—
Nonmortgage loans:
Business		—		—		—		—		—		3		—
Consumer		—		—		—		—		—		—		—
Total	$	18,396	$	15,851	$	2,101	$	17,952	$	196	$	20,043	$	337

Schedule of Total Exposure


Grain Technology, Inc. ("Grain") Total Exposure as of March 31, 2023
(in thousands)
Receivable from Grain
Microloans originated - put back to Grain (inception-to-March 31, 2023)	$	25,057
Write-downs, net of recoveries (inception-to-date as of March 31, 2023)		(16,541	)
Cash receipts from Grain (inception-to-March 31, 2023)		(6,690	)
Grant/reserve (inception-to-March 31, 2023)		(1,826	)
Net receivable as of March 31, 2023	$	—
Microloan receivables from Grain borrowers
Grain originated loans receivable as of March 31, 2023	$	13,365
Allowance for credit losses as of March 31, 2023 (1)		(11,597	)
Microloans, net of allowance for credit losses as of March 31, 2023	$	1,768
Investments
Investment in Grain	$	1,000
Investment in Grain write-off		(1,000	)
Investment in Grain as of March 31, 2023	$	—
Total exposure to Grain as of March 31, 2023	$	1,768

(1) Includes $0.3 million for allowance for unused commitments on the $2.4 million of unused commitments available to Grain borrowers reported in other liabilities in the accompanying Consolidated Statements of Financial Conditions. Excludes $1.2 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.

Summary of Allowance for Off-Balance-Sheet Credit Losses

The following table presents the activity in the allowance for off-balance-sheet credit losses:


	For the Three Months Ended March 31,
	2023		2022
Balance at beginning of period	$	354	$	229
Impact on CECL adoption		948		—
Provision		985		17
Allowance for credit losses	$	2,287	$	246

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Treasury Stock, At Cost	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Unallocated Common Stock of ESOP
Balance at Dec. 31, 2021	$ 189,256		$ 185	$ (13,687)	$ 85,601	$ 122,956	$ (1,456)	$ (4,343)
Balance, Shares at Dec. 31, 2021			17,425,987
Net (loss) income	(6,820)					(6,820)
Other comprehensive income (loss), net of tax	(5,579)						(5,579)
Conversion and reorganization of PDL Community Bancorp	118,010		$ 58		117,952
Conversion and reorganization of PDL Community Bancorp, shares			5,788,972
Retirement of treasury stock			$ (11)	13,687	(13,676)
Purchase of shares by the Employee Stock Ownership Plan ("ESOP')			$ 11		10,963			(10,974)
Purchase of shares by the Employee Stock Ownership Plan ("ESOP'), shares			1,097,353
Issuance of shares to the Ponce De Leon Foundation	3,995		$ 4		3,991
Issuance of shares to the Ponce De Leon Foundation, shares			399,522
Release of restricted stock units, shares			12,440
ESOP shares committed to be released	366				61			305
Share-based compensation	351				351
Balance at Mar. 31, 2022	299,579		$ 247		205,243	116,136	(7,035)	(15,012)
Balance, Shares at Mar. 31, 2022			24,724,274
Balance at Dec. 31, 2022	492,700	$ 225,000	$ 249	(2)	206,508	92,955	(17,860)	(14,150)
Balance, Shares at Dec. 31, 2022		225,000	24,859,353
Net (loss) income	331					331
Other comprehensive income (loss), net of tax	1,231						1,231
Impact of CECL adoption, net of tax	1,113					1,113
Release of restricted stock units, shares			4,147
ESOP shares committed to be released	262				(29)			291
Share-based compensation	404				404
Balance at Mar. 31, 2023	$ 496,041	$ 225,000	$ 249	$ (2)	$ 206,883	$ 94,399	$ (16,629)	$ (13,859)
Balance, Shares at Mar. 31, 2023		225,000	24,863,500

Leases - Additional Information (Details)	3 Months Ended
Leases - Additional Information (Details)	Mar. 31, 2023 Lease
Lessee, Lease, Description [Line Items]
Operating lease, description	Our leases have remaining lease terms ranging from less than one year to approximately 17 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.
Lessee, non-cancelable operating lease agreements expiration year	2038
Lease expiration year	2038
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease terms	17 years
Branches and Office Spaces
Lessee, Lease, Description [Line Items]
Number of operating leases	16
Equipment
Lessee, Lease, Description [Line Items]
Number of operating leases	5

Aggregate Loan Transactions with Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Receivables [Abstract]
Beginning balance	$ 8,318	$ 5,631
Originations	578	4,048
Payments	(65)	(1,475)
Ending balance	$ 8,831	$ 8,204

Transactions with Related Parties - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Related Party Transactions [Abstract]
Deposits from directors, executive officers and non-executive officers	$ 7.9	$ 8.0

Preferred Stock Issuance; Plan of Conversion and Stock Offering

3 Months Ended

Mar. 31, 2023

Plan Of Conversion And Stock Offering [Abstract]

Preferred Stock Issuance; Plan of Conversion and Stock Offering

Note 2. Preferred Stock Issuance; Plan of Conversion and Stock Offering

Preferred Stock Issuance

On June 7, 2022, the Company‎ closed a private placement (the “Private Placement”) of 225,000 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series A‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225.0 million in cash, to the United States Department of the Treasury (the “Treasury”) pursuant to the Emergency Capital Investment Program (“ECIP”).‎ The holders of the Preferred Stock will be entitled to a dividend payable in cash quarterly at an annual rate dependent on certain factors as reported by the Company to Treasury in a quarterly supplemental report. The initial dividend rate is zero percent for the first two years after issuance, and thereafter the floor dividend rate is 0.50% and the ceiling dividend rate is 2.00%. After 10 years of issuance, the perpetual dividend rate in effect, will be determined based on said floor and ceiling. The actual dividend rate that will be paid by the Company on the Preferred Stock cannot be determined at this time.

The ECIP investment by the Treasury is part of a program to invest over $8.7 billion into Community Development Financial Institution (“CDFI”) or ‎Minority Depository Institution (“MDI”), of which Ponce Bank is both. The ECIP is intended to incentivize CDFIs and MDIs to provide loans, grants, ‎and forbearance to small businesses, minority-owned businesses, and consumers in low-income and underserved communities that may have been ‎disproportionately impacted by the economic effects of the COVID-19 pandemic.‎

In the event of a liquidation, dissolution or winding up of the Company, the Preferred Stock will be entitled to a liquidation preference, subject to certain limitations, in the amount of the sum of $1,000 per share plus declared and unpaid dividends (without accumulation of undeclared dividends) on each share.

Plan of Conversion and Common Stock Offering

On May 25, 2021, Ponce Bank Mutual Holding Company and PDL Community Bancorp, the then holding company for Ponce Bank and Mortgage World Bankers, Inc., announced that their Boards of Directors had unanimously adopted a Plan of Conversion and Reorganization (the “Plan”) pursuant to which Ponce Bank Mutual Holding Company and PDL Community Bancorp reorganized into a new stock holding company and conducted a second-step stock offering of new shares of common stock.

On January 26, 2022, Mortgage World transferred its assets and liabilities to Ponce Bank and ceased operating as an independent mortgage banking entity. Mortgage World’s business is now conducted as a division of Ponce Bank.

On January 27, 2022, Ponce Financial Group, Inc. and PDL Community Bancorp announced that the conversion and reorganization of Ponce Bank Mutual Holding Company from the mutual to stock form of organization and related stock offering was consummated at the close of business. As a result of the closing of the conversion and reorganization and stock offering, Ponce Financial Group, Inc. is now the holding company for Ponce Bank. Ponce Bank’s former mutual holding companies, PDL Community Bancorp and Ponce Bank Mutual Holding Company, have ceased to exist.

PDL Community Bancorp’s stock ceased trading at the close of the market on January 27, 2022. Ponce Financial Group, Inc.’s common stock began trading on the Nasdaq Global Market under the same trading symbol “PDLB” on January 28, 2022.

As a result of the conversion and reorganization, each issued and outstanding share of PDL Community Bancorp common stock was converted into the right to receive 1.3952 shares of Ponce Financial Group, Inc. common stock. Cash was paid in lieu of any fractional shares based on the sale price in the offering of $10.00 per share. Ponce Financial Group Inc.’s total issued and outstanding shares on January 28, 2022 was 24,711,834 shares. All shares of treasury stock of PDL Community Bancorp were eliminated on January 27, 2022.

On January 27, 2022, the Company made a $5.0 million in contribution to the Ponce De Leon Foundation as part of the conversion and reorganization, which is included in the non-interest expense for the three months ended March 31, 2022, in the accompanying Consolidated Statements of Operations.

Fair Value - Assets Measured at Fair Value on Nonrecurring Basis (Details) - Impaired Loans - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value on nonrecurring basis	$ 24,986	$ 17,952
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value on nonrecurring basis	$ 24,986	$ 17,952

Deposits - Summarized Deposits (Parenthetical) (Details) - USD ($)

Mar. 31, 2023

Dec. 31, 2022

Time Deposits [Line Items]

Individual brokered certification of deposit

$ 9,500,000

$ 13,600,000

Listing service deposits

^[1]

28,417,000

35,813,000

Brokered certificates of deposits

^[1]

98,754,000

$ 98,754,000

Minimum

Time Deposits [Line Items]

Listing service deposits

250,000

Maximum

Time Deposits [Line Items]

Brokered certificates of deposits

$ 250,000

[1]	As of March 31, 2023 and December 31, 2022, there were $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.

Commitments, Contingencies and Credit Risk - Financial Instruments Whose Contractual Amounts Represent Credit Risk (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Concentration Of Risk Financial Statement Captions [Line Items]
Contractual amounts represent credit risk	$ 378,825	$ 281,311
Commitments to Grant Mortgage Loans
Fair Value Concentration Of Risk Financial Statement Captions [Line Items]
Contractual amounts represent credit risk	306,709	207,105
Commitments to Sell Loans at Lock-In Rates
Fair Value Concentration Of Risk Financial Statement Captions [Line Items]
Contractual amounts represent credit risk	4,888	1,676
Unfunded Commitments Under Lines of Credit
Fair Value Concentration Of Risk Financial Statement Captions [Line Items]
Contractual amounts represent credit risk	$ 67,228	$ 72,530

Loans Receivable and Allowance for Credit Losses - Schedule of Total Exposure (Parenthetical) (Details) $ in Millions	Mar. 31, 2023 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Security deposits	$ 1.2
Other Liabilities
Accounts Notes And Loans Receivable [Line Items]
Allowance for unused commitments	0.3
Allowance for unused commitments available to grain borrowers	$ 2.4

Loans Receivable and Allowance for Credit Losses - Information Relates to Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 25,427	$ 20,721	$ 18,396
Recorded Investment With No Allowance	23,248	17,589	15,851
Recorded Investment With Allowance	1,738	2,767	2,101
Total Recorded Investment	24,986	20,356	17,952
Related Allowance	237	245	196
Average Recorded Investment	21,469	18,077	20,043
Interest Income Recognized on Cash Basis	90	113	337
1-4 Family Residential
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	11,212	11,131	9,986
Recorded Investment With No Allowance	9,452	8,386	7,827
Recorded Investment With Allowance	1,358	2,412	1,757
Total Recorded Investment	10,810	10,798	9,584
Related Allowance	160	207	159
Average Recorded Investment	10,197	11,970	11,072
Interest Income Recognized on Cash Basis	83	76	307
Multifamily Residential
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	1,437
Recorded Investment With No Allowance	1,439
Total Recorded Investment	1,439
Average Recorded Investment	720	1,104	630
Nonresidential Properties
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	833	2,023	843
Recorded Investment With No Allowance	452	1,636	457
Recorded Investment With Allowance	340	355	344
Total Recorded Investment	792	1,991	801
Related Allowance	37	38	37
Average Recorded Investment	796	3,399	1,930
Interest Income Recognized on Cash Basis	7	20	30
Construction and Land
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	11,905	7,567	7,567
Recorded Investment With No Allowance	11,905	7,567	7,567
Total Recorded Investment	11,905	7,567	7,567
Average Recorded Investment	9,736	1,568	6,408
Interest Income Recognized on Cash Basis		17
Business Loans
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	40
Recorded Investment With Allowance	40
Total Recorded Investment	40
Related Allowance	40
Average Recorded Investment	$ 20	12	$ 3
Consumer
Financing Receivable Impaired [Line Items]
Average Recorded Investment		$ 24

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

The accumulated other comprehensive income (loss) is as follows:


	March 31, 2023
	December 31, 2022			Change		March 31, 2023
	(in thousands)
Unrealized gains (losses) on available-for-sale securities, net	$	(17,860	)	$	1,231	$	(16,629	)
Total	$	(17,860	)	$	1,231	$	(16,629	)


	December 31, 2022
	December 31, 2021			Change			December 31, 2022
	(in thousands)
Unrealized gains on available-for-sale securities, net	$	(1,456	)	$	(16,404	)	$	(17,860	)
Total	$	(1,456	)	$	(16,404	)	$	(17,860	)

Summary of Premises and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 30,189	$ 29,954
Less: accumulated depreciation and amortization	(12,974)	(12,508)
Total premises and equipment	17,215	17,446
Land
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	932	932
Buildings and Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	4,717	4,717
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	15,945	15,808
Furniture, Fixtures and Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 8,595	$ 8,497

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	May 12, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Trading Symbol	PDLB
Entity Registrant Name	Ponce Financial Group, Inc.
Entity Current Reporting Status	Yes
Entity Central Index Key	0001874071
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		24,884,735
Entity File Number	001-41255
Entity Tax Identification Number	87-1893965
Entity Address, Address Line One	2244 Westchester Avenue
Entity Address, City or Town	Bronx
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10462
City Area Code	718
Local Phone Number	931-9000
Title of 12(b) Security	Common stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	NY
Document Transition Report	false
Document Quarterly Report	true

Securities - Schedule of Activity in Allowance for Credit Losses for Held-to-maturity Securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 0
Impact on CECL adoption	662
Provision for credit losses	147
Ending Balance	$ 809

Borrowings

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Borrowings

Note 8. Borrowings

The Bank had $648.4 million of outstanding term advances from the FHLBNY and the FRBNY at March 31, 2023 and $511.4 million of outstanding term advances from the FHLBNY December 31, 2022, respectively. The Bank also had $6.0 million of overnight line of credit advance from the FHLBNY at December 31, 2022. Additionally, the Bank had two unsecured lines of credit in the amount of $90.0 million with two correspondent banks, under which there was nothing outstanding at both March 31, 2023 and December 31, 2022.

FHLBNY Advances: As a member of the FHLBNY, the Bank has the ability to borrow from the FHLBNY based on a certain percentage of the value of the Bank's qualified collateral, as defined in the FHLBNY Statement of Credit Policy, at the time of the borrowing. In accordance with an agreement with the FHLBNY, the qualified collateral must be free and clear of liens, pledges and encumbrances.

The Bank had $395.9 million and $511.4 million of outstanding term advances from the FHLBNY at March 31, 2023 and December 31, 2022, respectively and $6.0 million of overnight line of credit advance from the FHLBNY at December 31, 2022. The Bank had no overnight line of credit advance from the FHLBNY at March 31, 2023. The Bank also had a guarantee from the FHLBNY through letters of credit of up to $9.3 million at March 31, 2023 and $21.5 million at December 31, 2022.

As of March 31, 2023 and December 31, 2022, the Bank had eligible collateral of approximately $529.7 million and $478.8 million, respectively, in residential 1-4 family and multifamily mortgage loans available to secure advances from the FHLBNY.

FRBNY Advances: The Bank also has additional borrowing capacity under a secured line with the Federal Reserve Bank of New York ("FRBNY") secured by 39.0% of our total securities portfolio with amortized cost of $250.2 million at March 31, 2023. The Bank had $252.5 million of outstanding term advances from the FRBNY at March 31, 2023. No amounts were outstanding at December 31, 2022.

Borrowed funds at March 31, 2023 and December 31, 2022 consist of the following and are summarized by maturity and call date below:


	March 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		4.6	%

Term advances ending:
2023	$	24,775	$	24,775		2.81		$	178,375	$	178,375		4.32
2024		302,500		302,500		4.51			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
Thereafter		59,100		59,100		3.43			50,000		50,000		3.35
	$	648,375	$	648,375		3.99	%	$	517,375	$	517,375		3.90	%

Interest expense on term advances totaled $3.9 million and $0.5 million for the three months ended March 31, 2023 and 2022, respectively. There were $0.9 million in interest expense on overnight advances for the three months ended March 31, 2023. There was no interest expense on overnight advances for the three months ended March 31, 2022. Interest expense on term advances totaled $0.3 million for the three months ended March 31, 2023. There were no interest expense on term advances for the three months ended March 31, 2022.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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-Paragraph 1B
-Subparagraph (h)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income Taxes [Line Items]
Federal income tax rate	21.00%	21.00%
Decreased and increased in valuation allowance	$ (123,000)	$ (168,000)
Net operating loss to offset income limited	80.00%
Net operating loss carryforwards	$ 400,000
pre-2015 carryforwards [Member] \| New York State
Income Taxes [Line Items]
Net operating loss carryforwards	600,000
pre-2015 carryforwards [Member] \| New York City
Income Taxes [Line Items]
Net operating loss carryforwards	500,000
post-2015 carryforwards [Member] \| New York State
Income Taxes [Line Items]
Net operating loss carryforwards	63,600,000
post-2015 carryforwards [Member] \| New York City
Income Taxes [Line Items]
Net operating loss carryforwards	35,500,000
CARES ACT [Member]
Income Taxes [Line Items]
Net operating loss carryforwards	12,700,000
NEW YORK
Income Taxes [Line Items]
Decreased and increased in valuation allowance	100,000	$ 200,000
Unrecognized tax benefits	$ 0		$ 0

Compensation and Benefit Plans - Schedule of Stock Option Awards Activity and Related Information (Parenthetical) (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Average Intrinsic Value, Outstanding, end of year	$ 0	$ 100,000
Average Intrinsic Value, Exercisable, end of year	$ 0	$ 100,000

Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income Taxes

The provision (benefit) for income taxes for the three months ended March 31, 2023 and 2022 consists of the following:


	For the Three Months Ended March 31,
	2023			2022
	(in thousands)
Federal:
Current	$	40		$	(1,053	)
Deferred		105			(1,715	)
		145			(2,768	)
State and local:
Current		430			195
Deferred		(152	)		(543	)
		278			(348	)
Valuation allowance		123			168
Provision (benefit) for income taxes	$	546		$	(2,948	)

Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the three months ended March 31, 2023 and 2022, respectively, to income before income taxes as a result of the following:


	For the Three Months Ended March 31,
	2023		2022
	(in thousands)
Income tax, at federal rate	$	184	$	(2,051	)
State and local tax, net of federal taxes		220		(275	)
Valuation allowance, net of the federal benefit		123		168
Other		19		(790	)
	$	546	$	(2,948	)

Management maintains a valuation allowance against its net New York State and New York City deferred tax assets as it is unlikely these deferred tax assets will be utilized to reduce the Company's tax liability in future years. For the three months ended March 31, 2023 and 2022, the valuation allowance increased by $0.1 million and $0.2 million, respectively. In 2022, the Company generated large net operating losses in New York State and New York City which in turn increased the 2022 valuation allowance.

Management has determined that it is not required to establish a valuation allowance against any other deferred tax assets since it is more likely than not that the deferred tax assets will be fully utilized in future periods. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income, and the projected future taxable income over the periods that the temporary differences comprising the deferred tax assets will be deductible.

For federal income tax purposes, a financial institution may carry net operating losses (“NOLs”) to forward tax years indefinitely. The use of NOLs to offset income is limited to 80%. At March 31, 2023, the Bank had a federal NOL carryforward of $12.7 million.

The state and city of New York allow for a three-year carryback period and carryforward period of twenty years on NOLs generated on or after tax year 2015. For tax years prior to 2015, no carryback period is allowed. Ponce De Leon Federal Bank, the predecessor of Ponce Bank, has pre-2015 carryforwards of $0.6 million for New York State purposes and $0.5 million for New York City purposes. Furthermore, there are post-2015 carryforwards available of $63.6 million for New York State purposes and $35.5 million for New York City purposes. Finally, for New Jersey purposes, losses may only be carried forward 20 years, with no allowable carryback period. At March 31, 2023, the Bank had a New Jersey NOL carryforward of $0.4 million.

At March 31, 2023 and December 31, 2022, the Company had no unrecognized tax benefits recorded. The Company does not expect that the total amount of unrecognized tax benefits will significantly increase in the next twelve months.

The Company is subject to U.S. federal income tax, New York State income tax, Connecticut income tax, New Jersey income tax, Florida income tax, Pennsylvania income tax and New York City income tax. The Company is no longer subject to examination by taxing authorities for years before 2019.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31, 2023 and December 31, 2022 are presented below:


	March 31,		December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	9,485	$	11,324
Interest on nonaccrual loans		537		317
Unrealized loss on available-for-sale securities		4,444		4,777
Amortization of intangible assets		27		32
Operating lease liabilities		11,230		11,304
Net operating losses		9,296		9,119
Charitable contribution carryforward		1,872		1,859
Compensation and benefits		788		562
Other		1,418		478
Total gross deferred tax assets		39,097		39,772
Deferred tax liabilities:
Depreciation of premises and equipment		1,049		1,049
Right of use assets		10,850		10,941
Deferred loan fees		687		671
Other		29		29
Total gross deferred tax liabilities		12,615		12,690
Valuation allowance		11,069		10,945
Net deferred tax assets	$	15,413	$	16,137

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement Of Financial Position [Abstract]
Held-to-maturity securities, at fair value	$ 482,621	$ 495,851
Held-to-maturity securities, allowance for credit losses	809	0
Loans receivable, allowance for loan losses	$ 28,975	$ 34,592
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	225,000	225,000
Preferred stock, shares outstanding	225,000	225,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares, issued	24,865,476	24,861,329
Common stock, shares, outstanding	24,863,500	24,859,353
Treasury stock,repurchased	1,976	1,976
Unearned compensation, ESOP shares	1,536,040	1,569,475

Loans Receivable and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Loans Receivable and Allowance for Credit Losses

Note 4. Loans Receivable and Allowance for Credit Losses

Loans receivable at March 31, 2023 and December 31, 2022 are summarized as follows:


	March 31,			December 31,
	2023			2022
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	354,559		$	343,968
Owner-Occupied		149,481			134,878
Multifamily residential		553,430			494,667
Nonresidential properties		314,560			308,043
Construction and land		235,157			185,018
Total mortgage loans		1,607,187			1,466,574
Nonmortgage loans:
Business loans (1)		19,890			39,965
Consumer loans (2)		14,227			19,129
Total non-mortgage loans		34,117			59,094
Total loans, gross		1,641,304			1,525,668
Net deferred loan origination costs		2,099			2,051
Allowance for Credit Losses		(28,975	)		(34,592	)
Loans receivable, net	$	1,614,428		$	1,493,127

(1)

As of March 31, 2023 and December 31, 2022, business loans include $3.6 million and $20.0 million, respectively, of SBA Paycheck Protection Program (“PPP”) loans.

(2)

The Company’s lending activities are conducted principally in metropolitan New York City. The Company primarily grants loans secured by real estate to individuals and businesses pursuant to an established credit policy applicable to each type of lending activity in which it engages. Although collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrowers’ ability to generate continuing cash flows. The Company also evaluates the collateral and creditworthiness of each customer. The credit policy provides that depending on the borrowers’ creditworthiness and type of collateral, credit may be extended up to predetermined percentages of the market value of the collateral or on an unsecured basis. Real estate is the primary form of collateral. Other important forms of collateral are time deposits and marketable securities.

For disclosures related to the allowance for credit losses and credit quality, the Company does not have any disaggregated classes of loans below the segment level.

Credit-Quality Indicators: Internally assigned risk ratings are used as credit-quality indicators, which are reviewed by management on a quarterly basis.

The objectives of the Company’s risk-rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for credit losses.

Below are the definitions of the internally assigned risk ratings:

•

Strong Pass – Loans to a new or existing borrower collateralized at least 90 percent by an unimpaired deposit account at the Company.

•

Good Pass – Loans to a new or existing borrower in a well-established enterprise in excellent financial condition with strong liquidity and a history of consistently high level of earnings, cash flow and debt service capacity.

•

Satisfactory Pass – Loans to a new or existing borrower of average strength with acceptable financial condition, satisfactory record of earnings and sufficient historical and projected cash flow to service the debt.

•

Performance Pass – Existing loans that evidence strong payment history but document less than average strength, financial condition, record of earnings, or projected cash flows with which to service the debt.

•

Special Mention – Loans in this category are currently protected but show one or more potential weaknesses and risks which may inadequately protect collectability or borrower’s ability to meet repayment terms at some future date if the weakness or weaknesses are not monitored or remediated.

•

Substandard – Loans that are inadequately protected by the repayment capacity of the borrower or the current sound net worth of the collateral pledged, if any. Loans in this category have well defined weaknesses and risks that jeopardize the repayment. They are characterized by the distinct possibility that some loss may be sustained if the deficiencies are not remediated.

•

Doubtful – Loans that have all the weaknesses of loans classified as “Substandard” with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable.

Loans within the top four categories above are considered pass rated, as commonly defined. Risk ratings are assigned as necessary to differentiate risk within the portfolio. Risk ratings are reviewed on an ongoing basis and revised to reflect changes in the borrowers’ financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage as well as other considerations.

The following tables present credit risk ratings by loan segment as of March 31, 2023 and December 31, 2022:


	March 31, 2023
	Mortgage Loans								Nonmortgage Loans
							Construction						Total
	1-4 Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	487,441	$	551,992	$	314,435	$	223,251	$	19,849	$	14,227	$	1,611,195
Special mention		5,283		1,439		—		—		—		—		6,722
Substandard		11,316		—		125		11,906		40		—		23,387
Total	$	504,040	$	553,430	$	314,560	$	235,157	$	19,890	$	14,227	$	1,641,304


	December 31, 2022
	Mortgage Loans								Nonmortgage Loans
							Construction						Total
	1-4 Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	462,126	$	492,556	$	307,307	$	173,351	$	39,965	$	19,129	$	1,494,434
Special mention		7,692		1,437		606		—		—		—		9,735
Substandard		9,028		674		130		11,667		—		—		21,499
Total	$	478,846	$	494,667	$	308,043	$	185,018	$	39,965	$	19,129	$	1,525,668

An aging analysis of loans, as of March 31, 2023 and December 31, 2022, is as follows:


	March 31, 2023
			30-59		60-89		90 Days						90 Days
			Days		Days		or More				Nonaccrual		or More
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	350,105	$	2,589	$	—	$	1,865	$	354,559	$	3,049	$	—
Owner-Occupied		146,929		493		—		2,059		149,481		4,265		—
Multifamily residential		550,939		1,052		—		1,439		553,430		—		—
Nonresidential properties		310,591		3,969		—		—		314,560		91		—
Construction and land		223,252		—		—		11,905		235,157		11,906		—
Nonmortgage loans:
Business		17,393		4		1		2,492		19,890		40		2,452
Consumer		12,931		752		544		—		14,227		—		—
Total	$	1,612,140	$	8,859	$	545	$	19,760	$	1,641,304	$	19,351	$	2,452


	December 31, 2022
			30-59		60-89		90 Days						90 Days
			Days		Days		or More				Nonaccrual		or More
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	340,495	$	1,530	$	78	$	1,865	$	343,968	$	3,061	$	—
Owner-Occupied		131,510		2,553		—		815		134,878		2,987		—
Multifamily residential		490,024		4,643		—		—		494,667		—		—
Nonresidential properties		303,190		4,246		607		—		308,043		93		—
Construction and land		173,351		—		4,100		7,567		185,018		7,567		—
Nonmortgage loans:
Business		27,657		1,466		7,869		2,973		39,965		—		2,973
Consumer		16,743		1,267		1,119		—		19,129		—		—
Total	$	1,482,970	$	15,705	$	13,773	$	13,220	$	1,525,668	$	13,708	$	2,973



	For the Three Months Ended March 31, 2023
	Mortgage Loans												Nonmortgage Loans					Total
	1-4 Family Investor Owned		1-4 Family Owner Occupied		Multifamily			Nonresidential		Construction and Land			Business		Consumer			For the Period
	(in thousands)
Allowance for Credit Losses:
Balance, beginning of period	$	3,863	$	1,723	$	8,021		$	2,724	$	2,683		$	120	$	15,458		$	34,592
Provision (benefit) charged to expense		135		182		455			16		750			1		(1,860	)		(321	)
Impact of CECL adoption		766		146		(3,962	)		578		(911	)		236		57			(3,090	)
Charge-offs		—		—		—			—		—			—		(2,569	)		(2,569	)
Recoveries		—		—		—			—		—			—		363			363
Balance, end of period	$	4,764	$	2,051	$	4,514		$	3,318	$	2,522		$	357	$	11,449		$	28,975
Ending balance: individually evaluated for impairment	$	60	$	100	$	—		$	37	$	—		$	40	$	—		$	237
Ending balance: collectively evaluated for impairment		4,704		1,951		4,514			3,281		2,522			317		11,449			28,738
Total	$	4,764	$	2,051	$	4,514		$	3,318	$	2,522		$	357	$	11,449		$	28,975
Loans:
Ending balance: individually evaluated for impairment	$	5,234	$	5,576	$	1,439		$	792	$	11,905		$	40	$	—		$	24,986
Ending balance: collectively evaluated for impairment		349,325		143,905		551,991			313,768		223,252			19,850		14,227			1,616,318
Total	$	354,559	$	149,481	$	553,430		$	314,560	$	235,157		$	19,890	$	14,227		$	1,641,304


	For the Three Months Ended March 31, 2022
	Mortgage Loans												Nonmortgage Loans					Total
	1-4 Family Investor Owned		1-4 Family Owner Occupied			Multifamily		Nonresidential		Construction and Land			Business		Consumer			For the Period
	(in thousands)
Allowance for loan losses:
Balance, beginning of period	$	3,540	$	1,178		$	5,684	$	2,165	$	2,024		$	306	$	1,455		$	16,352
Provision charged to expense		41		(6	)		304		104		(7	)		55		767			1,258
Charge-offs		—		—			—		—		—			—		(751	)		(751	)
Recoveries		—		—			—		—		—			2		32			34
Balance, end of period	$	3,581	$	1,172		$	5,988	$	2,269	$	2,017		$	363	$	1,503		$	16,893
Ending balance: individually evaluated for impairment	$	93	$	114		$	—	$	38	$	—		$	—	$	—		$	245
Ending balance: collectively evaluated for impairment		3,488		1,058			5,988		2,231		2,017			363		1,503			16,648
Total	$	3,581	$	1,172		$	5,988	$	2,269	$	2,017		$	363	$	1,503		$	16,893
Loans:
Ending balance: individually evaluated for impairment	$	5,970	$	4,828		$	—	$	1,991	$	7,567		$	—	$	—		$	20,356
Ending balance: collectively evaluated for impairment		317,472		90,406			368,133		249,902		137,314			100,253		31,899			1,295,379
Total	$	323,442	$	95,234		$	368,133	$	251,893	$	144,881		$	100,253	$	31,899		$	1,315,735


	For the Year Ended December 31, 2022
	Mortgage Loans										Nonmortgage Loans						Total
	1-4 Family Investor Owned		1-4 Family Owner Occupied		Multifamily		Nonresidential		Construction and Land		Business			Consumer			For the Period
	(in thousands)
Allowance for loan losses:
Balance, beginning of year	$	3,540	$	1,178	$	5,684	$	2,165	$	2,024	$	306		$	1,455		$	16,352
Provision charged to expense		167		506		2,337		559		659		(280	)		20,098			24,046
Charge-offs		—		—		—		—		—		—			(6,660	)		(6,660	)
Recoveries		156		39		—		—		—		94			565			854
Balance, end of year	$	3,863	$	1,723	$	8,021	$	2,724	$	2,683	$	120		$	15,458		$	34,592
Ending balance: individually evaluated for impairment	$	63	$	96	$	—	$	37	$	—	$	—		$	—		$	196
Ending balance: collectively evaluated for impairment		3,800		1,627		8,021		2,687		2,683		120			15,458			34,396
Total	$	3,863	$	1,723	$	8,021	$	2,724	$	2,683	$	120		$	15,458		$	34,592
Loans:
Ending balance: individually evaluated for impairment	$	5,269	$	4,315	$	—	$	801	$	7,567	$	—		$	—		$	17,952
Ending balance: collectively evaluated for impairment		338,699		130,563		494,667		307,242		177,451		39,965			19,129			1,507,716
Total	$	343,968	$	134,878	$	494,667	$	308,043	$	185,018	$	39,965		$	19,129		$	1,525,668

Loans are considered impaired when current information and events indicate all amounts due may not be collectable according to the contractual terms of the related loan agreements. Impaired loans, including troubled debt restructurings, are identified by applying normal loan review procedures in accordance with the allowance for credit losses methodology. Management periodically assesses loans to determine whether impairment exists. Any loan that is, or will potentially be, no longer performing in accordance with the terms of the original loan contract is evaluated to determine impairment.

The following information relates to impaired loans as of and for the three months ended March 31, 2023 and 2022 and as of and for the year ended December 31, 2022:


	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and For the Three Months Ended March 31, 2023	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	11,212	$	9,452	$	1,358	$	10,810	$	160	$	10,197	$	83
Multifamily residential		1,437		1,439		—		1,439		—		720		—
Nonresidential properties		833		452		340		792		37		796		7
Construction and land		11,905		11,905		—		11,905		—		9,736		—
Nonmortgage loans:
Business		40		—		40		40		40		20		—
Consumer		—				—		—		—		—		—
Total	$	25,427	$	23,248	$	1,738	$	24,986	$	237	$	21,469	$	90

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and For the Three Months Ended March 31, 2022	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	11,131	$	8,386	$	2,412	$	10,798	$	207	$	11,970	$	76
Multifamily residential		—		—		—		—		—		1,104		—
Nonresidential properties		2,023		1,636		355		1,991		38		3,399		20
Construction and land		7,567		7,567		—		7,567		—		1,568		17
Nonmortgage loans:
Business		—		—		—		—		—		12		—
Consumer		—		—		—		—		—		24		—
Total	$	20,721	$	17,589	$	2,767	$	20,356	$	245	$	18,077	$	113


	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and for the Year Ended December 31, 2022	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	9,986	$	7,827	$	1,757	$	9,584	$	159	$	11,072	$	307
Multifamily residential		—		—		—		—		—		630		—
Nonresidential properties		843		457		344		801		37		1,930		30
Construction and land		7,567		7,567		—		7,567		—		6,408		—
Nonmortgage loans:
Business		—		—		—		—		—		3		—
Consumer		—		—		—		—		—		—		—
Total	$	18,396	$	15,851	$	2,101	$	17,952	$	196	$	20,043	$	337

Prior to the adoption of ASU 2022-02 on January 1, 2023, the Company classified certain loans as troubled debt restructuring (“TDR”) loans when credit terms to a borrower in financial difficulty were modified, in accordance with ASC 310-40. With the adoption of ASU 2022-02 as of January 1, 2023, the Company has ceased to recognize or measure for new TDRs but those existing at December 31, 2022 will remain until settled.

During the three months ended March 31, 2023, and for the year ended December 31, 2022, there were no loans restructured as a troubled debt restructuring.

At March 31, 2023, there were 23 troubled debt restructured loans totaling $6.5 million of which $4.2 million are on accrual status. At December 31, 2022, there were 23 troubled debt restructured loans totaling $6.6 million of which $4.2 million are on accrual status. There were no commitments to lend additional funds to borrowers whose loans have been modified in a troubled debt restructuring. The financial impact from the concessions made represents specific impairment reserves on these loans, which aggregated to $0.2 million both at March 31, 2023 and December 31, 2022, respectively.

Mortgage Loans Held for Sale at Fair Value

At March 31, 2023 and at December 31, 2022, 5 loans and 4 loans related to Mortgage World in the amount of $3.0 million and $2.0 million, respectively, were held for sale and accounted for under the fair value option accounting guidance for financial assets and financial liabilities.

Write-off and write-down of Microloans

In 2020, the Company entered into a business arrangement with the FinTech startup company Grain. Grain’s product is a mobile application geared to the underbanked, minorities and new generations entering the financial services market. In employing this mobile application, the Bank uses non-traditional underwriting methodologies to provide revolving credit to borrowers who otherwise may gravitate to using alternative non-bank lenders. Under the terms of its agreement with Grain, the Bank is the lender for Grain-originated microloans with credit lines currently up to $1,500 and, where applicable, the depository for related security deposits. Grain originates and services these microloans and is responsible for maintaining compliance with the Bank's origination and servicing standards, as well as applicable regulatory and legal requirements. If a microloan is found to be fraudulent, becomes 90 days delinquent upon 90 days of origination or defaults due to a failure of Grain to properly service the microloan, the Bank’s applicable standards for origination or servicing are deemed to have not been complied with and the microloan is put back to Grain, who then becomes responsible for the microloan and any related losses. The microloans put back to Grain are accounted for as an “other asset,” specifically referred to herein as the “Grain Receivable.” At December 31, 2022, the Bank had 27,886 Grain microloans outstanding, net of put backs, with an aggregate balance totaling $18.2 million and which were performing, in management's opinion, comparably to similar portfolios, offset by a $15.4 million allowance for loan losses, resulting in $2.8 million in Grain microloans, net of allowance for loan losses.

At March 31, 2023, the Bank had 22,859 Grain microloans outstanding, net of put backs, with an aggregate balance totaling $13.4 million and which were performing, in management’s opinion, comparably to similar portfolios, offset by an $11.6 million allowance for credit losses, resulting in $1.8 million in Grain microloans. Since the beginning of the Bank’s agreement with Grain and through March 31, 2023, 45,322 microloans amounting to $25.1 million have been deemed to be fraudulent and put back to Grain. The Company has written-down a total of $16.5 million, net of recoveries, of the Grain Receivable and received $6.7 million in cash from Grain and through the application of security deposits connected to fraudulent loan accounts. The Bank also opted to use the $1.8 million grant it received from the U.S. Treasury Department’s Rapid Response ‎Program to defray the Grain Receivable. The application of those amounts resulted in no net receivable. Additionally, the Company wrote-off its equity investment in Grain of $1.0 million during the year ended December 31, 2022. As of March 31, 2023, the Company’s total exposure to Grain was $1.8 million of the remaining microloans, net of allowance for credit losses, excluding $2.4 million of unused commitments available to Grain borrowers and $1.4 million of security deposits by Grain borrowers. The $0.9 million of recoveries for the three months ended March 31, 2023 and the $8.1 million write-off for the three months ended March 31, 2022 related to Grain is included in non-interest expense in the accompanying Consolidated Statements of Operations. Of the $0.9 million of recoveries for the three months ended March 31, 2023, $0.5 million were payments received from Grain on the Grain Receivable and the remainder were payments from Grain borrowers.


Grain Technology, Inc. ("Grain") Total Exposure as of March 31, 2023
(in thousands)
Receivable from Grain
Microloans originated - put back to Grain (inception-to-March 31, 2023)	$	25,057
Write-downs, net of recoveries (inception-to-date as of March 31, 2023)		(16,541	)
Cash receipts from Grain (inception-to-March 31, 2023)		(6,690	)
Grant/reserve (inception-to-March 31, 2023)		(1,826	)
Net receivable as of March 31, 2023	$	—
Microloan receivables from Grain borrowers
Grain originated loans receivable as of March 31, 2023	$	13,365
Allowance for credit losses as of March 31, 2023 (1)		(11,597	)
Microloans, net of allowance for credit losses as of March 31, 2023	$	1,768
Investments
Investment in Grain	$	1,000
Investment in Grain write-off		(1,000	)
Investment in Grain as of March 31, 2023	$	—
Total exposure to Grain as of March 31, 2023	$	1,768

Off-Balance Sheet Credit Losses

Also included within the scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and construction loans.

The Company estimates expected credit losses over the contractual period in which the company is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet exposures is adjusted as a provision for credit loss expense. The Company uses similar assumptions and risk factors that are developed for collectively evaluated financing receivables. This estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments to be funded over its estimated life.

At March 31, 2023, the allowance for off-balance sheet credit losses was $2.3 million, which is included in the "Other liabilities" on the Consolidated Statements of Financial Condition. During the three months ended March 31, 2023, the Company had $1.0 million in credit loss provision for off-balance-sheet items, which are included in "Provision for contingencies" on the Consolidated Statements of Income.

The following table presents the activity in the allowance for off-balance-sheet credit losses:


	For the Three Months Ended March 31,
	2023		2022
Balance at beginning of period	$	354	$	229
Impact on CECL adoption		948		—
Provision		985		17
Allowance for credit losses	$	2,287	$	246

Deposits

3 Months Ended

Mar. 31, 2023

Banking And Thrifts [Abstract]

Deposits

Note 7. Deposits

Deposits at March 31, 2023 and December 31, 2022 are summarized as follows:


	March 31,		December 31,
	2023		2022
	(in thousands)
Demand	$	282,741	$	289,149
Interest-bearing deposits:
NOW/IOLA accounts		21,735		24,349
Money market accounts		408,404		317,815
Reciprocal deposits		109,649		114,049
Savings accounts		127,731		130,432
Total NOW, money market, reciprocal and savings		667,519		586,645
Certificates of deposit of $250K or more		76,893		70,113
Brokered certificates of deposits (1)		98,754		98,754
Listing service deposits (1)		28,417		35,813
Certificates of deposit less than $250K		182,553		171,938
Total certificates of deposit		386,617		376,618
Total interest-bearing deposits		1,054,136		963,263
Total deposits	$	1,336,877	$	1,252,412

(1)

At March 31, 2023 scheduled maturities of certificates of deposit were as follows:


	(in thousands)
2023	$	160,146
2024		88,763
2025		45,094
2026		43,891
2027		48,544
Thereafter		179
	$	386,617

Overdrawn deposit accounts that have been reclassified to loans amounted to $0.2 million and $0.1 million as of March 31, 2023 and December 31, 2022, respectively.

Securities - Additional Information (Details)	3 Months Ended	12 Months Ended
Securities - Additional Information (Details)	Mar. 31, 2023 USD ($) Security	Dec. 31, 2022 USD ($) Security
Schedule Of Available For Sale Securities [Line Items]
Available For Sale Securities \| Security	42	42
Held to maturity \| Security	33	34
Sale of Held - to maturity Securities	$ 0	$ 0
Sale of available-for-sale securities	$ 0	$ 0
Number of available-for-sale securities matured or called \| Security	1	2
Available-for-sale securities matured	$ 10,000,000.0	$ 5,400,000
Purchases of available-for-sale securities	0	58,400,000
Purchases of Held-to-maturity securities	$ 0	$ 528,900,000
Number of available-for-sale securities with unrealized loss positions \| Security	42	42
Number of held-to-maturity securities with unrealized loss positions \| Security	26	27
Held to maturity securities, amortized costs	$ 491,649,000	$ 510,820,000
Available-for-sale securities, at fair value	128,320,000	129,505,000
FHLBNY
Schedule Of Available For Sale Securities [Line Items]
Held to maturity securities, amortized costs	$ 130,000,000.0	$ 194,900,000
Number of held-to-maturity securities \| Security	10	6
Number of available-for-sale securities \| Security	26
Available for sale securities fair value	$ 102,300,000
Available-for-sale securities, at fair value		$ 0

Fair Value - Schedule of Beginning and Ending Balances for Debt Securities Available-for-Sale Recognized at Fair Value On Recurring Basis (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Ending balance	$ 129,505
Fair Value Measurement Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Beginning balance	4,929
Total loss included in earnings	(344)
Transfer out of level 3	$ (4,585)

Income Taxes - Reconciliation of Differences Between Federal Income Tax Rate and Total Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]
Income tax, at federal rate	$ 184	$ (2,051)
State and local tax, net of federal taxes	220	(275)
Valuation allowance, net of the federal benefit	123	168
Other	19	(790)
(Benefit) provision for income taxes	$ 546	$ (2,948)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Loans Receivable and Allowance for Credit Losses - Additional Information (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Mar. 31, 2023

USD ($)

Loan

Mar. 31, 2022

USD ($)

Dec. 31, 2022

USD ($)

Loan

Dec. 31, 2021

USD ($)

Accounts, Notes, Loans and Financing Receivable [Line Items]

Restructured loans | Loan

Number of troubled debt restructured loans | Loan

Troubled debt restructured loans

$ 6,500

$ 6,600

Troubled debt restructured loan, accrual status

4,200

Impairment reserves

237

$ 245

196

Loans before net deferred loan origination cost and allowance for losses on loan

1,641,304

1,525,668

Aggregate balance of grain

13,365

Allowance for credit losses

^[1]

(11,597)

Microloans, net of allowance for loan losses

1,768

Microloans originated - put back to Grain

25,057

Grain Write-Downs

(16,541)

Cash Receipts From Grain

6,690

Grant/reserve (inception-to-March 31, 2023)

(1,826)

Investment in Grain wrote-off

(1,000)

Exposure to Grain

1,768

Loans receivable, allowance for loan losses

28,975

34,592

Loans receivable, net

1,614,428

1,493,127

Grain write-off and write-down

(914)

8,074

Allowance for off-balance sheet credit losses

2,287

246

$ 354

$ 229

Provision for Contingencies

Accounts, Notes, Loans and Financing Receivable [Line Items]

Provision for off-balance-sheet credit loss

1,000

Other Liabilities

Accounts, Notes, Loans and Financing Receivable [Line Items]

Allowance for off-balance sheet credit losses

2,300

Grain Technologies LLC

Accounts, Notes, Loans and Financing Receivable [Line Items]

Micro loan credit limit

$ 1,500

Number of micro loan outstanding | Loan

22,859

27,886

Aggregate balance of grain

$ 13,400

$ 18,200

Allowance for credit losses

(11,600)

(15,400)

Microloans, net of allowance for loan losses

1,800

$ 2,800

Microloans originated - put back to Grain

25,100

Grain Write-Downs

(16,500)

Cash Receipts From Grain

6,700

Grant/reserve (inception-to-March 31, 2023)

(1,800)

Unused commitments available to borrowers

2,400

Security deposits by borrowers

1,400

Investment in Grain wrote-off

(1,000)

Exposure to Grain

1,800

Grain recoveries

900

Payments received from Grain

$ 500

Grain write-off and write-down

$ 8,100

Grain Technologies LLC | Microloans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Number of micro loan outstanding | Loan

45,322

Mortgage World Bankers Inc

Accounts, Notes, Loans and Financing Receivable [Line Items]

Number of loan held for sale | Loan

Loans held for sale

$ 3,000

$ 2,000

Troubled Debt Restructured Loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Impairment reserves

$ 200

Minimum

Accounts, Notes, Loans and Financing Receivable [Line Items]

Strong Pass Loans to new or existing borrowers collateralized percentage

90.00%

[1]

Includes $0.3 million for allowance for unused commitments on the $2.4 million of unused commitments available to Grain borrowers reported in other liabilities in the accompanying Consolidated Statements of Financial Conditions. Excludes $1.2 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.

Earnings Per Share - Schedule of Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ 331	$ (6,820)
Common shares outstanding for basic EPS:
Weighted average common shares outstanding	24,862,118	22,744,101
Less: Weighted average unallocated Employee Stock Ownership Plan (ESOP) shares	1,569,105	1,022,988
Basic weighted average common shares outstanding	23,293,013	21,721,113
Basic earnings (loss) per common share	$ 0.01	$ (0.31)
Potential dilutive common shares:
Add: Dilutive effect of restricted stock awards and stock options	31,519
Diluted weighted average common shares outstanding	23,324,532	21,721,113
Diluted earnings (loss) per common share	$ 0.01	$ (0.31)

Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Summary of Changes in Derivatives From Interest Rate Lock Commitments are Measured at Fair Value

The table below presents the changes in derivatives from interest rate lock commitments that are measured at fair value on a recurring basis:


	(in thousands)
Balance as of December 31, 2022	$	22
Change in fair value of derivative instrument reported in earnings		97
Balance as of March 31, 2023	$	119

Assets Measured at Fair Value on Recurring Basis

The following tables detail the assets that are carried at fair value and measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, and indicate the level within the fair value hierarchy utilized to determine the fair value:


			March 31, 2023
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds	$	2,746	$	2,746	$	—	$	—
Corporate bonds		23,177		649		22,528		—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		37,391		—		37,391		—
FHLMC Certificates		9,546				9,546
FNMA Certificates		55,345		—		55,345		—
GNMA Certificates		115		—		115		—
Mortgage Loans Held for Sale, at fair value		2,987		—		2,987		—
Derivatives from interest rate lock commitments		119		—		—		119
	$	131,426	$	3,395	$	127,912	$	119


			December 31, 2022
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds	$	2,689	$	2,689	$	—	$	—
Corporate bonds		23,359		730		22,629		—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		37,777		—		37,777		—
FHLMC Certificates		9,634				9,634
FNMA Certificates		55,928		—		55,928		—
GNMA Certificates		118		—		118		—
Mortgage Loans Held for Sale, at fair value		1,979		—		1,979		—
Derivatives from interest rate lock commitments		22		—		—		22
	$	131,506	$	3,419	$	128,065	$	22

Assets Measured at Fair Value on Nonrecurring Basis

The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022 and indicate the fair value hierarchy utilized to determine the fair value:


	March 31, 2023
	Total		Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	24,986	$	—	$	—	$	24,986


	December 31, 2022
	Total		Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	17,952	$	—	$	—	$	17,952

Estimated Fair Values of Financial Instruments

As of March 31, 2023 and December 31, 2022, the carrying values and estimated fair values of the Company's financial instruments were as follows:


	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
March 31, 2023
Financial assets:
Cash and cash equivalents	$	184,687	$	184,687	$	—	$	—	$	184,687
Available-for-sale securities, at fair value		128,320		3,395		124,925		—		128,320
Held-to-maturity securities, at amortized cost, net		491,649		—		482,621		—		482,621
Placements with banks		1,245		—		1,245		—		1,245
Mortgage loans held for sale, at fair value		2,987		—		2,987		—		2,987
Loans receivable, net		1,614,428		—		—		1,551,627		1,551,627
Accrued interest receivable		15,435		—		15,435		—		15,435
FHLBNY stock		19,209		19,209		—		—		19,209
Financial liabilities:
Deposits:
Demand deposits		282,741		282,741		—		—		282,741
Interest-bearing deposits		667,519		667,519		—		—		667,519
Certificates of deposit		386,617		—		383,066		—		383,066
Advance payments by borrowers for taxes and insurance		14,902		—		14,902		—		14,902
Borrowings		648,375		—		636,704		—		636,704
Accrued interest payable		1,767		—		1,767		—		1,767


	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
December 31, 2022
Financial assets:
Cash and cash equivalents	$	54,360	$	54,360	$	—	$	—	$	54,360
Available-for-sale securities, at fair value		129,505		3,419		126,086		—		129,505
Held-to-maturity securities, at amortized cost		510,820		—		495,851		—		495,851
Placements with banks		1,494		—		1,494		—		1,494
Mortgage loans held for sale, at fair value		1,979		—		1,979				1,979
Loans receivable, net		1,493,127		—		—		1,430,864		1,430,864
Accrued interest receivable		15,049		—		15,049		—		15,049
FHLBNY stock		24,661		24,661		—		—		24,661
Financial liabilities:
Deposits:
Demand deposits		289,149		289,149		—		—		289,149
Interest-bearing deposits		586,645		586,645		—		—		586,645
Certificates of deposit		376,618		—		37,005		—		37,005
Advance payments by borrowers for taxes and insurance		9,724		—		9,724		—		9,724
Borrowings		517,618		—		503,406		—		503,406
Accrued interest payable		1,390		—		1,390		—		1,390

Schedule of Beginning and Ending Balances for Debt Securities Available-for-Sale Recognized at Fair Value On Recurring Basis

The following table reconciles, at March 31, 2023 and December 31, 2022, the beginning and ending balances for debt securities available-for-sale that are recognized at fair value on a recurring basis, in the Consolidated Statements of Financial Condition, using significant unobservable inputs.


	March 31,		December 31,
	2023		2022
	(in thousands)
Beginning balance	$	—	$	4,929
Total loss included in earnings		—		(344	)
Transfer out of level 3		—		(4,585	)
Ending balance	$	—	$	—

Loans Receivable and Allowance for Credit Losses - Schedule of Total Exposure (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2023

USD ($)

Receivable from Grain

Microloans originated - put back to Grain (inception-to-March 31, 2023)

$ 25,057

Write-downs, net of recoveries (inception-to-date as of March 31, 2023)

16,541

Cash receipts from Grain (inception-to-March 31, 2023)

(6,690)

Grant/reserve (inception-to-March 31, 2023)

(1,826)

Microloan receivables

Grain originated loans receivable as of March 31, 2023

13,365

Allowance for credit losses as of March 31, 2023

(11,597)

^[1]

Microloans, net of allowance for credit losses as of March 31, 2023

1,768

Investments

Investment in Grain

1,000

Investment in Grain wrote-off

(1,000)

Total exposure to Grain as of March 31, 2023

$ 1,768

[1]

Fair Value - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities, at fair value	$ 128,320	$ 129,505
Held-to-maturity securities, at amortized cost, net		510,820
Mortgage loans held for sale, at fair value	3,000
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	184,687	54,360
Available-for-sale securities, at fair value	128,320	129,505
Held-to-maturity securities, at amortized cost, net	491,649	510,820
Placements with banks	1,245	1,494
Mortgage loans held for sale, at fair value	2,987	1,979
Loans receivable, net	1,614,428	1,493,127
Accrued interest receivable	15,435	15,049
FHLBNY stock	19,209	24,661
Demand deposits	282,741	289,149
Interest-bearing deposits	667,519	586,645
Certificates of deposit	386,617	376,618
Advance payments by borrowers for taxes and insurance	14,902	9,724
Borrowings	648,375	517,618
Accrued interest payable	1,767	1,390
Fair Value Measurements
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	184,687	54,360
Available-for-sale securities, at fair value	128,320	129,505
Held-to-maturity securities, at amortized cost, net	482,621	495,851
Placements with banks	1,245	1,494
Mortgage loans held for sale, at fair value	2,987	1,979
Loans receivable, net	1,551,627	1,430,864
Accrued interest receivable	15,435	15,049
FHLBNY stock	19,209	24,661
Demand deposits	282,741	289,149
Interest-bearing deposits	667,519	586,645
Certificates of deposit	383,066	37,005
Advance payments by borrowers for taxes and insurance	14,902	9,724
Borrowings	636,704	503,406
Accrued interest payable	1,767	1,390
Fair Value Measurements \| Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	184,687	54,360
Available-for-sale securities, at fair value	3,395	3,419
FHLBNY stock	19,209	24,661
Demand deposits	282,741	289,149
Interest-bearing deposits	667,519	586,645
Fair Value Measurements \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities, at fair value	124,925	126,086
Held-to-maturity securities, at amortized cost, net	482,621	495,851
Placements with banks	1,245	1,494
Mortgage loans held for sale, at fair value	2,987	1,979
Accrued interest receivable	15,435	15,049
Certificates of deposit	383,066	37,005
Advance payments by borrowers for taxes and insurance	14,902	9,724
Borrowings	636,704	503,406
Accrued interest payable	1,767	1,390
Fair Value Measurements \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable, net	$ 1,551,627	$ 1,430,864

Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement Of Stockholders Equity [Abstract]
Number of ESOP shares committed to be released	(33,436)	(35,119)

Regulatory Capital Requirements - Summary of Actual Capital Amounts and Ratios As Compared to Regulatory Requirements (Details)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Ponce Financial Group, Inc.
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total Capital to Risk-Weighted Assets, Actual Amount	$ 534,770	$ 530,241
Tier 1 Capital to Risk-Weighted Assets, Actual Amount	512,652	510,537
Common Equity Tier 1 Capital Ratio, Actual Amount	512,652	510,537
Tier 1 Capital to Total Assets, Actual Amount	$ 512,652	$ 510,537
Total Capital to Risk-Weighted Assets, Actual Ratio	0.3038	0.3372
Tier 1 Capital to Risk-Weighted Assets, Actual Ratio	0.2912	0.3247
Common Equity Tier 1 Capital Ratio, Actual Ratio	0.2912	0.3247
Tier 1 Capital to Total Assets, Actual Ratio	0.2159	0.2629
Total Capital to Risk-Weighted Assets, For Capital Adequacy Amount	$ 140,819	$ 125,791
Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Amount	105,614	94,343
Common Equity Tier 1 Capital Ratio, For Capital Adequacy Amount	79,211	70,757
Tier 1 Capital to Total Assets, For Capital Adequacy Amount	$ 94,990	$ 77,665
Total Capital to Risk-Weighted Assets, For Capital Adequacy Ratio	0.0800	0.0800
Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Ratio	0.0600	0.0600
Common Equity Tier 1 Capital Ratio, For Capital Adequacy Ratio	0.0450	0.0450
Tier 1 Capital to Total Assets, For Capital Adequacy Ratio	0.0400	0.0400
Total Capital to Risk-Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 176,024	$ 157,238
Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	140,819	125,791
Common Equity Tier 1 Capital Ratio, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	114,415	102,205
Tier 1 Capital to Total Assets, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 118,738	$ 97,082
Total Capital to Risk-Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.1000	0.1000
Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.0800	0.0800
Common Equity Tier 1 Capital Ratio, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.0650	0.0650
Tier 1 Capital to Total Assets, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.0500	0.0500
Ponce Bank
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total Capital to Risk-Weighted Assets, Actual Amount	$ 481,303	$ 476,519
Tier 1 Capital to Risk-Weighted Assets, Actual Amount	459,342	456,816
Common Equity Tier 1 Capital Ratio, Actual Amount	459,342	456,816
Tier 1 Capital to Total Assets, Actual Amount	$ 459,342	$ 456,816
Total Capital to Risk-Weighted Assets, Actual Ratio	0.2754	0.3053
Tier 1 Capital to Risk-Weighted Assets, Actual Ratio	0.2628	0.2926
Common Equity Tier 1 Capital Ratio, Actual Ratio	0.2628	0.2926
Tier 1 Capital to Total Assets, Actual Ratio	0.1951	0.2047
Total Capital to Risk-Weighted Assets, For Capital Adequacy Amount	$ 139,808	$ 124,883
Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Amount	104,856	93,662
Common Equity Tier 1 Capital Ratio, For Capital Adequacy Amount	78,642	70,247
Tier 1 Capital to Total Assets, For Capital Adequacy Amount	$ 94,169	$ 89,264
Total Capital to Risk-Weighted Assets, For Capital Adequacy Ratio	0.0800	0.0800
Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Ratio	0.0600	0.0600
Common Equity Tier 1 Capital Ratio, For Capital Adequacy Ratio	0.0450	0.0450
Tier 1 Capital to Total Assets, For Capital Adequacy Ratio	0.0400	0.0400
Total Capital to Risk-Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 174,760	$ 156,104
Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	139,808	124,883
Common Equity Tier 1 Capital Ratio, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	113,594	101,468
Tier 1 Capital to Total Assets, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 117,712	$ 111,580
Total Capital to Risk-Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.1000	0.1000
Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.0800	0.0800
Common Equity Tier 1 Capital Ratio, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.0650	0.0650
Tier 1 Capital to Total Assets, For Capital Adequacy Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.0500	0.0500

Nature of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) MortgageOffice BranchLease BranchOffice	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Number of branch banking offices \| BranchOffice	13
Number of branch mortgage loan offices \| MortgageOffice	6
(Benefit) provision for credit losses (Note 3) (Note 4)	$ (174)	$ 1,258	$ 24,046
Provisions related to held-to-maturity securities	$ 809		0
Percentage of largest amount of tax benefits likely to realize	50.00%
Percentage of employee discretionary matching, profit sharing and safe harbor contributions, maximum	4.00%
Present value of lease payments	2.50%
Number of leased branches \| BranchLease	15
Operating lease ROU assets	$ 33,147		33,423	$ 36,200
Operating lease liabilities	34,308		34,532	$ 36,700
Increase allowance for credit losses on held-to-maturity debt securities	500
Increases of unfunded commitments	800
Reduction allowance credit losses on loans	(2,400)
Grain Technology, Inc.
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Provisions related to held-to-maturity securities	$ 100
ASU 2016-02
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 01, 2022
Construction Loans
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
(Benefit) provision for credit losses (Note 3) (Note 4)	$ 750	(7)	659
Business Loans
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
(Benefit) provision for credit losses (Note 3) (Note 4)	1	$ 55	$ (280)
COVID-19 \| Grain Technology, Inc.
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
(Benefit) provision for credit losses (Note 3) (Note 4)	200
Net benefit related to provision for loan and credit losses	$ 300
Bronx
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Number of branch banking offices \| BranchOffice	4
Manhattan
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Number of branch banking offices \| BranchOffice	2
Queens
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Number of branch banking offices \| BranchOffice	(3)
Number of branch mortgage loan offices \| MortgageOffice	4
Brooklyn
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Number of branch banking offices \| BranchOffice	3
Number of branch mortgage loan offices \| MortgageOffice	1
Union City
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Number of branch banking offices \| BranchOffice	1
New York and Bergenfield
Nature Of Business And Summary Of Significant Accounting Policies Table Of Statement [Line Items]
Number of branch mortgage loan offices \| MortgageOffice	1

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Note 6. Leases

Effective January 1, 2022, the Company adopted the provisions of Topic 842 using the prospective transition approach. Therefore, prior period comparative information has not been adjusted and continues to be reported under GAAP in effect prior to the adoption of Topic 842.

The Company has 16 operating leases for branches (including headquarters) and office spaces and five operating leases for equipment. Our leases have remaining lease terms ranging from less than one year to approximately 17 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2038.

Supplemental balance sheet information related to leases was as follows:


	March 31,			December 31,
	2023			2022
	(Dollars in thousands)
Operating lease ROU assets	$	33,147		$	33,423
Operating lease liabilities		34,308			34,532
Weighted-average remaining lease term-operating leases	13.2 years			13.5 years
Weighted average discount rate-operating leases		4.9	%		4.9	%

The components of lease expense and cash flow information related to leases were as follows:


		For the Three Months Ended March 31,
		2023		2022
		(Dollars in thousands)
Lease Cost
Operating lease cost	Occupancy and equipment	$	1,015	$	1,021
Operating lease cost	Other operating expenses		4		1
Short-term lease cost	Other operating expenses		6		4
Variable lease cost	Occupancy and equipment		31		47
Total lease cost		$	1,056	$	1,073

The Company’s minimum annual rental payments under the terms of the leases are as follows at March 31, 2023:


	Minimum Rental
Years ended December 31:	(in thousands)
Remainder of 2023	$	2,864
2024		3,833
2025		3,635
2026		3,422
2027		3,495
2028		3,566
Thereafter		25,476
Total Minimum payments required		46,291
Less: implied interest		11,983
Present value of lease liabilities	$	34,308

Lease Commitments: As of March 31, 2023, there are noncancelable operating leases for office space that expire on various dates through 2038. Certain of these leases contains escalation clauses providing for increased rental based on pre-scheduled annual increases or on increases in real estate taxes.

Securities (Tables)

3 Months Ended

Mar. 31, 2023

Investments Debt And Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities at March 31, 2023 and December 31, 2022 are summarized as follows:


	March 31, 2023
				Gross		Gross
	Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,987		$	—	$	(241	)	$	2,746
Corporate Bonds		25,816			—		(2,639	)		23,177
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		43,421			—		(6,030	)		37,391
FHLMC Certificates		11,036			—		(1,490	)		9,546
FNMA Certificates		65,819			—		(10,474	)		55,345
GNMA Certificates		117			—		(2	)		115
Total available-for-sale securities	$	149,196		$	—	$	(20,876	)	$	128,320

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(206	)	$	24,794
Corporate Bonds		82,500			—		(4,158	)		78,342
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		230,531			853		(2,457	)		228,927
FHLMC Certificates		4,008			—		(245	)		3,763
FNMA Certificates		128,968			—		(3,695	)		125,273
SBA Certificates		21,451			71		—			21,522
Allowance for Credit Losses		(809	)		—		—			—
Total held-to-maturity securities	$	491,649		$	924	$	(10,761	)	$	482,621

(1)

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


	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,985	$	—	$	(296	)	$	2,689
Corporate Bonds		25,824		—		(2,465	)		23,359
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		44,503		—		(6,726	)		37,777
FHLMC Certificates		11,310		—		(1,676	)		9,634
FNMA Certificates		67,199		—		(11,271	)		55,928
GNMA Certificates		122		—		(4	)		118
Total available-for-sale securities	$	151,943	$	—	$	(22,438	)	$	129,505

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
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

(1)

Comprised of FHLMC, FNMA and GNMA issued securities.

Company's Securities Gross Unrealized Losses and Fair Values, Aggregated by Length of Time Individual Securities Have Been in a Continuous Unrealized Loss Position

The following table presents the Company's gross unrealized losses and fair values of its securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2023 and December 31, 2022:


	March 31, 2023
	Securities With Gross Unrealized Losses
	Less Than 12 Months					12 Months or More					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	—	$	—		$	2,746	$	(241	)	$	2,746	$	(241	)
Corporate Bonds		5,586		(446	)		17,591		(2,193	)		23,177		(2,639	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		—		—			37,391		(6,030	)		37,391		(6,030	)
FHLMC Certificates		—		—			9,546		(1,490	)		9,546		(1,490	)
FNMA Certificates		—		—			55,345		(10,474	)		55,345		(10,474	)
GNMA Certificates		115		(2	)		—		—			115		(2	)
Total available-for-sale securities	$	5,701	$	(448	)	$	122,619	$	(20,428	)	$	128,320	$	(20,876	)
Held-to-Maturity Securities:
U.S. Agency Bonds	$	24,794	$	(206	)	$	—	$	—		$	24,794	$	(206	)
Corporate Bonds		78,342		(4,158	)		—		—			78,342		(4,158	)
Collateralized Mortgage Obligations		124,242		(2,457	)		—		—			124,242		(2,457	)
FHLMC Certificates		3,080		(106	)		683		(139	)		3,763		(245	)
FNMA Certificates		125,273		(3,695	)		—		—			125,273		(3,695	)
Total held-to-maturity securities	$	355,731	$	(10,622	)	$	683	$	(139	)	$	356,414	$	(10,761	)


	December 31, 2022
	Securities With Gross Unrealized Losses
	Less Than 12 Months					12 Months or More					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	—	$	—		$	2,689	$	(296	)	$	2,689	$	(296	)
Corporate Bonds		13,138		(1,186	)		10,221		(1,279	)		23,359		(2,465	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		4,537		(300	)		33,240		(6,426	)		37,777		(6,726	)
FHLMC Certificates		—		—			9,634		(1,676	)		9,634		(1,676	)
FNMA Certificates		12,111		(1,230	)		43,817		(10,041	)		55,928		(11,271	)
GNMA Certificates		118		(4	)		—		—			118		(4	)
Total available-for-sale securities	$	29,904	$	(2,720	)	$	99,601	$	(19,718	)	$	129,505	$	(22,438	)
Held-to-Maturity Securities:
U.S. Agency Bonds	$	24,620	$	(380	)	$	—	$	—		$	24,620	$	(380	)
Corporate Bonds		75,181		(3,819	)		—		—			75,181		(3,819	)
Collateralized Mortgage Obligations		215,300		(5,558	)		—		—			215,300		(5,558	)
FHLMC Certificates		3,177		(115	)		675		(153	)		3,852		(268	)
FNMA Certificates		126,691		(5,227	)		—		—			126,691		(5,227	)
Total held-to-maturity securities	$	444,969	$	(15,099	)	$	675	$	(153	)	$	445,644	$	(15,252	)

Summary of Maturities of Securities

The following is a summary of maturities of securities at March 31, 2023 and December 31, 2022. Amounts are shown by contractual maturity. Because borrowers for mortgage-backed securities have the right to prepay obligations with or without prepayment penalties, at any time, these securities are included as a total within the table.


	March 31, 2023
	Amortized			Fair
	Cost			Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		2,987			2,746
More than five years through ten years		—			—
		2,987			2,746
Corporate Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		4,000			3,709
More than five years through ten years		21,816			19,468
		25,816			23,177
Mortgage-Backed Securities		120,393			102,397
Total available-for-sale securities	$	149,196		$	128,320
Held-to-Maturity Securities:
U.S. Agency Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		25,000			24,794
More than five years through ten years		—			—
		25,000			24,794
Corporate Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		75,000			71,101
More than five years through ten years		7,500			7,241
		82,500			78,342
Mortgage-Backed Securities		384,958			379,485
Allowance for Credit Losses		(809	)		—
Total held-to-maturity securities	$	491,649		$	482,621


	December 31, 2022
	Amortized		Fair
	Cost		Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds:
Amounts maturing:
Three months or less	$	—	$	—
More than three months through one year		—		—
More than one year through five years		2,985		2,689
More than five years through ten years		—		—
		2,985		2,689
Corporate Bonds:
Amounts maturing:
Three months or less	$	—	$	—
More than three months through one year		—		—
More than one year through five years		4,000		3,710
More than five years through ten years		21,824		19,649
		25,824		23,359
Mortgage-Backed Securities		123,134		103,457
Total available-for-sale securities	$	151,943	$	129,505
Held-to-Maturity Securities:
U.S. Agency Bonds:
Amounts maturing:
Three months or less	$	—	$	—
More than three months through one year		—		—
More than one year through five years		35,000		34,620
More than five years through ten years		—		—
		35,000		34,620
Corporate Bonds:
Amounts maturing:
Three months or less	$	—	$	—
More than three months through one year		—		—
More than one year through five years		75,000		71,328
More than five years through ten years		7,500		7,410
		82,500		78,738
Mortgage-Backed Securities		393,320		382,493
Total held-to-maturity securities	$	510,820	$	495,851

Schedule of Activity in Allowance for Credit Losses for Held-to-maturity Securities

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


	For the Three Months Ended March 31,
	2023		2022
Beginning balance	$	—	$	—
Impact on CECL adoption		662		—
Provision for credit losses		147		—
Allowance for credit losses	$	809	$	—

Loans Receivable and Allowance for Credit Losses - Summary of Loans (Details) - USD ($)
$ in Thousands

Mar. 31, 2023

Dec. 31, 2022

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

$ 1,641,304

$ 1,525,668

Net deferred loan origination costs

2,099

2,051

Allowance for Credit Losses

(28,975)

(34,592)

Loans receivable, net

1,614,428

1,493,127

Multifamily Residential

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

553,430

494,667

Nonresidential Properties

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

314,560

308,043

Construction and Land

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

235,157

185,018

Business Loans

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

19,890

39,965

Consumer Loans

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

14,227

19,129

Mortgage Loans

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

1,607,187

1,466,574

Mortgage Loans | 1-4 Family Residential Investor Owned

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

354,559

343,968

Mortgage Loans | 1-4 Family Residential Owner-Occupied

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

149,481

134,878

Mortgage Loans | Multifamily Residential

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

553,430

494,667

Mortgage Loans | Nonresidential Properties

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

314,560

308,043

Mortgage Loans | Construction and Land

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

235,157

185,018

Non-mortgage Loans

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

34,117

59,094

Non-mortgage Loans | Business Loans

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

^[1]

19,890

39,965

Non-mortgage Loans | Consumer Loans

Financing Receivable Recorded Investment Past Due [Line Items]

Total loans, gross

^[2]

$ 14,227

$ 19,129

[1]	As of March 31, 2023 and December 31, 2022, business loans include $3.6 million and $20.0 million, respectively, of SBA Paycheck Protection Program (“PPP”) loans.
[2]	As of March 31, 2023 and December 31, 2022, consumer loans include $13.4 million and $18.2 million, respectively, of microloans originated by Grain through its mobile application that is geared to the underbanked and new generations entering the financial services market and uses non-traditional underwriting methodologies.

Compensation and Benefit Plans - Schedule of Stock Option Awards Activity and Related Information (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding, beginning of year	352,621	203,766
Options, Conversion and reorganization		80,526
Options, Granted	0	68,329
Options, Exercised	0	0
Options, Forfeited	0	0
Options, Outstanding, end of year	352,621	352,621
Options, Exercisable, end of year	191,752	190,508
Weighted-Average Exercise Price Per Share, Outstanding, beginning of year	$ 8.97	$ 12.02
Weighted-Average Exercise Price Per Share, Conversion and reorganization		0
Weighted-Average Exercise Price Per Share, Granted	0	10.44
Weighted-Average Exercise Price Per Share, Exercised	0	0
Weighted-Average Exercise Price Per Share, Forfeited	0	0
Weighted-Average Exercise Price Per Share, Outstanding, end of year	8.97	8.97
Weighted-Average Exercise Price Per Share, Exercisable, end of year	$ 8.83	$ 8.83

Deposits - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Banking And Thrifts [Abstract]
Overdrawn deposit reclassified to loans amounted	$ 0.2	$ 0.1

Regulatory Capital Requirements - Summary of Minimum Net Worth Requirements (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Mortgage World Bankers Inc \| HUD
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total Capital to Risk-Weighted Assets, Actual Amount	$ 1,000	$ 1,000

Transactions with Related Parties (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of Aggregate Loan Transactions with Related Parties

Aggregate loan transactions with related parties for the three months ended March 31, 2023 and 2022 were as follows:


	For the Three Months Ended March 31,
	2023			2022
	(in thousand)
Beginning balance (1)	$	8,318		$	5,631
Originations (1)		578			4,048
Payments		(65	)		(1,475	)
Ending balance	$	8,831		$	8,204

(1)

Includes loans held by James Perez who became a director on March 17, 2022.

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest and dividend income:
Interest on loans receivable	$ 19,700	$ 18,200
Interest on deposits due from banks	197	36
Interest and dividend on securities and FHLBNY stock	6,459	782
Total interest and dividend income	26,356	19,018
Interest expense:
Interest on certificates of deposit	1,871	803
Interest on other deposits	4,166	284
Interest on borrowings	5,074	593
Total interest expense	11,111	1,680
Net interest income	15,245	17,338
(Benefit) provision for credit losses (Note 3) (Note 4)	(174)	1,258
Net interest income after (benefit) provision for credit losses	15,419	16,080
Non-interest income:
Service charges and fees	491	440
Brokerage commissions	15	338
Late and prepayment charges	729	58
Income on sale of mortgage loans	99	418
Loan origination		625
Other	485	347
Total non-interest income	1,819	2,226
Non-interest expense:
Compensation and benefits	7,446	7,125
Occupancy and equipment	3,570	3,192
Data processing expenses	1,192	847
Direct loan expenses	412	874
Provision for contingencies	985	17
Insurance and surety bond premiums	265	147
Office supplies, telephone and postage	399	405
Professional fees	1,455	1,334
Contribution to the Ponce De Leon Foundation (Note 2)		4,995
Grain (recoveries) write-off (Note 4)	(914)	8,074
Marketing and promotional expenses	128	71
Directors' fees and regulatory assessment	155	154
Other operating expenses	1,268	839
Total non-interest expense	16,361	28,074
Income (loss) before income taxes	877	(9,768)
Provision (benefit) for income taxes (Note 9)	546	(2,948)
Net income (loss)	$ 331	$ (6,820)
Earnings (loss) per common share (Note 10):
Basic	$ 0.01	$ (0.31)
Diluted	$ 0.01	$ (0.31)
Weighted average common shares outstanding (Note 10):
Basic	23,293,013	21,721,113
Diluted	23,324,532	21,721,113

Loans Receivable and Allowance for Credit Losses - Composition of Allowance for Loan Losses and Related Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	$ 34,592	$ 16,352	$ 16,352
Provision (benefit) charged to expense	(174)	1,258	24,046
Benefit for credit loss on loans	(321)
Impact of CECL adoption	(3,090)
Charge-offs	(2,569)	(751)	(6,660)
Recoveries	363	34	854
Balance, end of period	28,975	16,893	34,592
Ending balance: individually evaluated for impairment	237	245	196
Ending balance: collectively evaluated for impairment	28,738	16,648	34,396
Ending balance: individually evaluated for impairment	24,986	20,356	17,952
Ending balance: collectively evaluated for impairment	1,616,318	1,295,379	1,507,716
Total	1,641,304	1,315,735	1,525,668
1-4 Family Investor Owned
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	3,863	3,540	3,540
Provision (benefit) charged to expense	135	41	167
Impact of CECL adoption	766
Recoveries			156
Balance, end of period	4,764	3,581	3,863
Ending balance: individually evaluated for impairment	60	93	63
Ending balance: collectively evaluated for impairment	4,704	3,488	3,800
Ending balance: individually evaluated for impairment	5,234	5,970	5,269
Ending balance: collectively evaluated for impairment	349,325	317,472	338,699
Total	354,559	323,442	343,968
1-4 Family Owner-Occupied
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	1,723	1,178	1,178
Provision (benefit) charged to expense	182	(6)	506
Impact of CECL adoption	146
Recoveries			39
Balance, end of period	2,051	1,172	1,723
Ending balance: individually evaluated for impairment	100	114	96
Ending balance: collectively evaluated for impairment	1,951	1,058	1,627
Ending balance: individually evaluated for impairment	5,576	4,828	4,315
Ending balance: collectively evaluated for impairment	143,905	90,406	130,563
Total	149,481	95,234	134,878
Multifamily
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	8,021	5,684	5,684
Provision (benefit) charged to expense	455	304	2,337
Impact of CECL adoption	(3,962)
Balance, end of period	4,514	5,988	8,021
Ending balance: collectively evaluated for impairment	4,514	5,988	8,021
Ending balance: individually evaluated for impairment	1,439
Ending balance: collectively evaluated for impairment	551,991	368,133	494,667
Total	553,430	368,133	494,667
Nonresidential
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	2,724	2,165	2,165
Provision (benefit) charged to expense	16	104	559
Impact of CECL adoption	578
Balance, end of period	3,318	2,269	2,724
Ending balance: individually evaluated for impairment	37	38	37
Ending balance: collectively evaluated for impairment	3,281	2,231	2,687
Ending balance: individually evaluated for impairment	792	1,991	801
Ending balance: collectively evaluated for impairment	313,768	249,902	307,242
Total	314,560	251,893	308,043
Construction and Land
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	2,683	2,024	2,024
Provision (benefit) charged to expense	750	(7)	659
Impact of CECL adoption	(911)
Balance, end of period	2,522	2,017	2,683
Ending balance: collectively evaluated for impairment	2,522	2,017	2,683
Ending balance: individually evaluated for impairment	11,905	7,567	7,567
Ending balance: collectively evaluated for impairment	223,252	137,314	177,451
Total	235,157	144,881	185,018
Business Loans
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	120	306	306
Provision (benefit) charged to expense	1	55	(280)
Impact of CECL adoption	236
Recoveries		2	94
Balance, end of period	357	363	120
Ending balance: collectively evaluated for impairment	317	363	120
Ending balance: individually evaluated for impairment	40
Ending balance: collectively evaluated for impairment	19,850	100,253	39,965
Total	19,890	100,253	39,965
Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Balance, beginning of period	15,458	1,455	1,455
Provision (benefit) charged to expense	(1,860)	767	20,098
Impact of CECL adoption	57
Charge-offs	(2,569)	(751)	(6,660)
Recoveries	363	32	565
Balance, end of period	11,449	1,503	15,458
Ending balance: individually evaluated for impairment	40
Ending balance: collectively evaluated for impairment	11,449	1,503	15,458
Ending balance: collectively evaluated for impairment	14,227	31,899	19,129
Total	$ 14,227	$ 31,899	$ 19,129

Regulatory Capital Requirements - Additional Information (Details)	Mar. 31, 2023	Dec. 31, 2022
Disclosure Of Regulatory Capital Requirements [Abstract]
Percentage of capital buffer	19.54%	22.53%

Transactions with Related Parties

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Transactions with Related Parties

Note 16. Transactions with Related Parties

Directors, executive officers and non-executive officers of the Company have been customers of and have had transactions with the Bank, and it is expected that such persons will continue to have such transactions in the future. Aggregate loan transactions with related parties for the three months ended March 31, 2023 and 2022 were as follows:


	For the Three Months Ended March 31,
	2023			2022
	(in thousand)
Beginning balance (1)	$	8,318		$	5,631
Originations (1)		578			4,048
Payments		(65	)		(1,475	)
Ending balance	$	8,831		$	8,204

(1)

Includes loans held by James Perez who became a director on March 17, 2022.

The Company held deposits in the amount of $7.9 million and $8.0 million from directors, executive officers and non-executive officers at March 31, 2023 and December 31, 2022, respectively.

Loans Receivable and Allowance for Credit Losses - Summary of Loans (Parenthetical) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable Recorded Investment Past Due [Line Items]
Loans before net deferred loan origination cost and allowance for losses on loan	$ 1,641,304	$ 1,525,668
Business Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Loans before net deferred loan origination cost and allowance for losses on loan	19,890	39,965
Business Loans \| PPP Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Loans before net deferred loan origination cost and allowance for losses on loan	3,600	20,000
Consumer Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Loans before net deferred loan origination cost and allowance for losses on loan	14,227	19,129
Consumer Loans \| PPP Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Loans before net deferred loan origination cost and allowance for losses on loan	$ 13,400	$ 18,200

Segment Reporting - Schedule of Operations and Total Assets of Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Interest expense	$ 11,111	$ 1,680
Net interest income after (benefit) provision for credit losses	15,419	16,080
Non-interest income	1,819	2,226
Non-interest expense	16,361	28,074
Income (loss) before income taxes	877	(9,768)
Provision (benefit) for income taxes	546	$ (2,948)
Total assets	$ 2,539,534		$ 2,311,989

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Fair Value - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
Fair Value - Additional Information (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage loans held for sale, at fair value	$ 3,000,000.0
Aggregate unpaid principal balance	$ 3,000,000.0
Significant purchase commitment description	The Bank, through its Mortgage World division, enters into rate lock commitments to extend credit to borrowers for generally up to a 60 day period for origination and/or purchase of loans. To the extent that a loan is ultimately granted and the borrower ultimately accepts the terms of the loan, these loan commitments expose the Bank’s Mortgage World division to variability in its fair value due to changes in interest rates.
Derivative, notional amount	$ 4,900,000	$ 1,700,000
Derivatives from interest rate lock commitments	100,000	20,000.00
Fair value, transfers into Level 3 assets	0
Fair value, transfers out of Level 3 assets	0	1
Fair value, transfers into Level 3 liabilities	0
Fair value, transfers out of Level 3 liabilities	$ 0	$ 1
Warehouse Line of Credit #1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Warehouse line of credit termination date	Feb. 07, 2023
Warehouse Line of Credit #2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Warehouse line of credit termination date	Mar. 31, 2022

Securities

3 Months Ended

Mar. 31, 2023

Investments Debt And Equity Securities [Abstract]

Securities

Note 3. Securities

Adoption of Topic 326

Effective January 1, 2023, the Company adopted the provisions of Topic 326 using the modified retrospective method. Therefore, prior period comparative information has not been adjusted and continues to be reported under GAAP in effect prior to the adoption of Topic 326. There was no ACL on available-for-sale securities recognized upon the adoption of Topic 326.

The amortized cost, gross unrealized gains and losses, and fair value of securities at March 31, 2023 and December 31, 2022 are summarized as follows:


	March 31, 2023
				Gross		Gross
	Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,987		$	—	$	(241	)	$	2,746
Corporate Bonds		25,816			—		(2,639	)		23,177
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		43,421			—		(6,030	)		37,391
FHLMC Certificates		11,036			—		(1,490	)		9,546
FNMA Certificates		65,819			—		(10,474	)		55,345
GNMA Certificates		117			—		(2	)		115
Total available-for-sale securities	$	149,196		$	—	$	(20,876	)	$	128,320

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(206	)	$	24,794
Corporate Bonds		82,500			—		(4,158	)		78,342
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		230,531			853		(2,457	)		228,927
FHLMC Certificates		4,008			—		(245	)		3,763
FNMA Certificates		128,968			—		(3,695	)		125,273
SBA Certificates		21,451			71		—			21,522
Allowance for Credit Losses		(809	)		—		—			—
Total held-to-maturity securities	$	491,649		$	924	$	(10,761	)	$	482,621

(1)

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


	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,985	$	—	$	(296	)	$	2,689
Corporate Bonds		25,824		—		(2,465	)		23,359
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		44,503		—		(6,726	)		37,777
FHLMC Certificates		11,310		—		(1,676	)		9,634
FNMA Certificates		67,199		—		(11,271	)		55,928
GNMA Certificates		122		—		(4	)		118
Total available-for-sale securities	$	151,943	$	—	$	(22,438	)	$	129,505

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
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

(1)

Comprised of FHLMC, FNMA and GNMA issued securities.

The Company’s securities portfolio had 42 and 42 available-for-sale securities and 33 and 34 held-to-maturity securities at March 31, 2023 and December 31, 2022, respectively. There were no available-for-sale and held-to-maturity securities sold during the three months ended March 31, 2023. There were no available-for-sale securities and held-to-maturity securities sold during the year ended December 31, 2022. One available-for-sale security in the amount of $10.0 million matured and/or was called during the three months ended March 31, 2023 and two available-for-sale securities in the amount of $5.4 million matured and/or were called during the year ended December 31, 2022. The Company did not purchased any available-for-sale securities and held-to-maturity securities during the three months ended March 31, 2023 and purchased $58.4 million in available-for-sale securities and $528.9 million in held-to-maturity securities during the year ended December 31, 2022.


	March 31, 2023
	Securities With Gross Unrealized Losses
	Less Than 12 Months					12 Months or More					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	—	$	—		$	2,746	$	(241	)	$	2,746	$	(241	)
Corporate Bonds		5,586		(446	)		17,591		(2,193	)		23,177		(2,639	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		—		—			37,391		(6,030	)		37,391		(6,030	)
FHLMC Certificates		—		—			9,546		(1,490	)		9,546		(1,490	)
FNMA Certificates		—		—			55,345		(10,474	)		55,345		(10,474	)
GNMA Certificates		115		(2	)		—		—			115		(2	)
Total available-for-sale securities	$	5,701	$	(448	)	$	122,619	$	(20,428	)	$	128,320	$	(20,876	)
Held-to-Maturity Securities:
U.S. Agency Bonds	$	24,794	$	(206	)	$	—	$	—		$	24,794	$	(206	)
Corporate Bonds		78,342		(4,158	)		—		—			78,342		(4,158	)
Collateralized Mortgage Obligations		124,242		(2,457	)		—		—			124,242		(2,457	)
FHLMC Certificates		3,080		(106	)		683		(139	)		3,763		(245	)
FNMA Certificates		125,273		(3,695	)		—		—			125,273		(3,695	)
Total held-to-maturity securities	$	355,731	$	(10,622	)	$	683	$	(139	)	$	356,414	$	(10,761	)


	December 31, 2022
	Securities With Gross Unrealized Losses
	Less Than 12 Months					12 Months or More					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	—	$	—		$	2,689	$	(296	)	$	2,689	$	(296	)
Corporate Bonds		13,138		(1,186	)		10,221		(1,279	)		23,359		(2,465	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		4,537		(300	)		33,240		(6,426	)		37,777		(6,726	)
FHLMC Certificates		—		—			9,634		(1,676	)		9,634		(1,676	)
FNMA Certificates		12,111		(1,230	)		43,817		(10,041	)		55,928		(11,271	)
GNMA Certificates		118		(4	)		—		—			118		(4	)
Total available-for-sale securities	$	29,904	$	(2,720	)	$	99,601	$	(19,718	)	$	129,505	$	(22,438	)
Held-to-Maturity Securities:
U.S. Agency Bonds	$	24,620	$	(380	)	$	—	$	—		$	24,620	$	(380	)
Corporate Bonds		75,181		(3,819	)		—		—			75,181		(3,819	)
Collateralized Mortgage Obligations		215,300		(5,558	)		—		—			215,300		(5,558	)
FHLMC Certificates		3,177		(115	)		675		(153	)		3,852		(268	)
FNMA Certificates		126,691		(5,227	)		—		—			126,691		(5,227	)
Total held-to-maturity securities	$	444,969	$	(15,099	)	$	675	$	(153	)	$	445,644	$	(15,252	)

At March 31, 2023 and December 31, 2022, the Company had 42 and 42 available-for-sale securities, respectively, and 26 and 27 held-to-maturity securities at March 31, 2023 and December 31, 2022 with gross unrealized loss positions. Management reviewed the financial condition of the entities underlying the securities at both March 31, 2023 and December 31, 2022. The unrealized losses related to the Company debt securities were issued by U.S. government-sponsored entities and agencies. The Company does not believe that the debt securities that were in an unrealized loss position as of March 31, 2023 represents a credit loss impairment. The gross unrealized loss positions related to mortgage-backed securities and other obligations issued by the U.S government agencies or U.S.

government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Total gross unrealized losses were primarily attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities.

Management reviewed the collectability of the corporate bonds taking into consideration of such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting date. Management believes the unrealized losses on the corporate bonds are primarily attributable to changes in the interest rates and not changes in the credit quality of the issuers of the corporate bonds.


	March 31, 2023
	Amortized			Fair
	Cost			Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		2,987			2,746
More than five years through ten years		—			—
		2,987			2,746
Corporate Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		4,000			3,709
More than five years through ten years		21,816			19,468
		25,816			23,177
Mortgage-Backed Securities		120,393			102,397
Total available-for-sale securities	$	149,196		$	128,320
Held-to-Maturity Securities:
U.S. Agency Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		25,000			24,794
More than five years through ten years		—			—
		25,000			24,794
Corporate Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		75,000			71,101
More than five years through ten years		7,500			7,241
		82,500			78,342
Mortgage-Backed Securities		384,958			379,485
Allowance for Credit Losses		(809	)		—
Total held-to-maturity securities	$	491,649		$	482,621


	December 31, 2022
	Amortized		Fair
	Cost		Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds:
Amounts maturing:
Three months or less	$	—	$	—
More than three months through one year		—		—
More than one year through five years		2,985		2,689
More than five years through ten years		—		—
		2,985		2,689
Corporate Bonds:
Amounts maturing:
Three months or less	$	—	$	—
More than three months through one year		—		—
More than one year through five years		4,000		3,710
More than five years through ten years		21,824		19,649
		25,824		23,359
Mortgage-Backed Securities		123,134		103,457
Total available-for-sale securities	$	151,943	$	129,505
Held-to-Maturity Securities:
U.S. Agency Bonds:
Amounts maturing:
Three months or less	$	—	$	—
More than three months through one year		—		—
More than one year through five years		35,000		34,620
More than five years through ten years		—		—
		35,000		34,620
Corporate Bonds:
Amounts maturing:
Three months or less	$	—	$	—
More than three months through one year		—		—
More than one year through five years		75,000		71,328
More than five years through ten years		7,500		7,410
		82,500		78,738
Mortgage-Backed Securities		393,320		382,493
Total held-to-maturity securities	$	510,820	$	495,851

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


	For the Three Months Ended March 31,
	2023		2022
Beginning balance	$	—	$	—
Impact on CECL adoption		662		—
Provision for credit losses		147		—
Allowance for credit losses	$	809	$	—

At March 31, 2023, 26 available-for-sale securities with a fair value totaling $102.3 million and 10 held-to-maturity securities with an amortized cost totaling $130.0 million were pledged at the FHLBNY as collateral for borrowing activities. At December 31, 2022 six held-to-maturity securities with an amortized costs totaling $194.9 million were pledged at the FHLBNY as collateral for borrowing activities. No available-for-sale securities were pledged at December 31, 2022.

Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jan. 01, 2022
Leases [Abstract]
Operating lease ROU assets	$ 33,147	$ 33,423	$ 36,200
Operating lease liabilities	$ 34,308	$ 34,532	$ 36,700
Weighted-average remaining lease term-operating leases	13 years 2 months 12 days	13 years 6 months
Weighted average discount rate-operating leases	4.90%	4.90%

Compensation and Benefit Plans - Summary of ESOP Shares (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares committed-to-be released	167,180	133,744
Shares allocated to participants	358,630	354,227
Unallocated shares	1,536,040	1,569,475
Total	2,061,850	2,057,446
Fair value of unallocated shares	$ 12,058	$ 14,628

Commitments, Contingencies and Credit Risk

3 Months Ended

Mar. 31, 2023

Commitments And Contingencies Disclosure [Abstract]

Commitments, Contingencies and Credit Risk

Note 12. Commitments, Contingencies and Credit Risk

Financial Instruments With Off-Balance-Sheet Risk: In the normal course of business, financial instruments with off-balance-sheet risk may be used to meet the financing needs of customers. These financial instruments include commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized

on the Consolidated Statements of Financial Condition. The contractual amounts of these instruments reflect the extent of involvement in particular classes of financial instruments.

The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. The same credit policies are used in making commitments and contractual obligations as for on-balance-sheet instruments. Financial instruments whose contractual amounts represent credit risk at March 31, 2023 and December 31, 2022 are as follows:


	March 31,		December 31,
	2023		2022
	(in thousands)
Commitments to grant mortgage loans	$	306,709	$	207,105
Commitments to sell loans at lock-in rates		4,888		1,676
Unfunded commitments under lines of credit		67,228		72,530
	$	378,825	$	281,311

Commitments to Grant Mortgage Loans: Commitments to grant mortgage loans are agreements to lend to a customer as long as all terms and conditions are met as established in the contract. Commitments generally have fixed expiration dates or other termination clauses, and may require payment of a fee by the borrower. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate and income-producing commercial properties. Material losses are not anticipated as a result of these transactions.

Commitments to Sell Loans at Lock-in Rates: In order to assure itself of a marketplace to sell its loans, Mortgage World has agreements with investors who will commit to purchase loans at locked-in rates. Mortgage World has off-balance sheet market risk to the extent that Mortgage World does not obtain matching commitments from these investors to purchase the loans. This will expose Mortgage World to the lower of cost or market valuation environment.

Repurchases, Indemnifications and Premium Recaptures: Loans sold by Mortgage World under investor programs are subject to repurchase or indemnification if they fail to meet the origination criteria of those programs. In addition, loans sold to investors are also subject to repurchase or indemnifications if the loan is two or three months delinquent during a set period which usually varies from six months to a year after the loan is sold. There are no open repurchase or indemnification requests for loans sold as a correspondent lender or where the Company acted as a broker in the transaction as of March 31, 2023.

Unfunded Commitments Under Lines of Credit: Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extension of credit to existing customers. These lines of credit are uncollateralized and usually contain a specified maturity date and, ultimately, may not be drawn upon to the total extent to which the Company is committed.

Unfunded Commitments with Bamboo: On October 1, 2022, the Bank entered into a Membership Interest Purchase Agreement with Bamboo Payment Holding LLC ("Bamboo"). Under the agreement, the Bank purchased from Bamboo 180 Membership Interest Units representing an aggregate amount equal to up to 18% of total issued and outstanding Membership Interest in Bamboo for a purchase price of $2.5 million. During the first quarter of 2023, the Bank made an additional contribution of $0.5 million for a total investment in Bamboo of $3.0 million. With over a decade processing payments in Latin America, Bamboo has a diverse network connects Latin American local payment processing to global companies as well as domestic solutions to locally based organizations.

Unfunded Commitments with Oaktree: In December of 2021, the Bank committed to invest $5.0 million in Oaktree SBIC Fund, L.P. ("Oaktree"). As of March 31, 2023 and December 31, 2022, the total unfunded commitment was $2.4 million and $2.8 million, respectively.

Unfunded Commitments with Silvergate: In April of 2022, the Bank committed to invest $5.0 million in EJF Silvergate Ventures Fund LP ("Silvergate"). As of March 31, 2023 and December 31, 2022, the total unfunded commitment was $2.7 million and $3.3 million, respectively.

Letters of Credit: Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Letters of credit are largely cash secured.

Concentration by Geographic Location: Loans, commitments to extend credit and letters of credit have been granted to customers who are located primarily in the New York City metropolitan area. Generally, such loans most often are secured by one-to-four family residential properties. The loans are expected to be repaid from the borrowers' cash flows.

Legal Matters: The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations.

Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Depreciation and amortization	$ 742	$ 467
Depreciation and amortization expense, excluding ROU assets portion	500	$ 500
Property, plant and equipment, gross	30,189		$ 29,954
Leasehold Improvements
Property Plant And Equipment [Line Items]
Increase (decrease) in property, plant and equipment	(100)
Property, plant and equipment, gross	15,945		15,808
Furniture, Fixtures and Equipment
Property Plant And Equipment [Line Items]
Increase (decrease) in property, plant and equipment	100
Property, plant and equipment, gross	$ 8,595		$ 8,497

Compensation and Benefit Plans - Additional Information (Details)							3 Months Ended		12 Months Ended
	Apr. 01, 2022 shares	Jan. 28, 2022 shares	Jan. 27, 2022 USD ($) shares	Jan. 01, 2021 USD ($)	Dec. 04, 2018 shares	Sep. 29, 2017 USD ($) shares	Mar. 31, 2023 USD ($) Executive $ / shares shares	Mar. 31, 2022 USD ($) Executive	Dec. 31, 2022 $ / shares shares	Dec. 31, 2020 shares	Dec. 31, 2021 $ / shares
Compensation And Benefit Plans Disclosure [Line Items]
Additional number of shares							2,061,850		2,057,446
ESOP related compensation expense including equalization expense \| $							$ 300,000	$ 400,000
Number of option grants							0		68,329
Total remaining unrecognized compensation cost \| $							$ 1,800,000
Weighted average period expected to be recognized							57 months
Weighted-average exercise price for options \| $ / shares							$ 8.97		$ 8.97		$ 12.02
Weighted average remaining contractual life							6 years 4 months 24 days
Weighted average period expected to be recognized							3 years 3 months 18 days
Number of shares exercisable							191,752		190,508
Treasury stock							1,976		1,976
Executive Officers
Compensation And Benefit Plans Disclosure [Line Items]
Vesting percentage										20.00%
Non-Executive Officers
Compensation And Benefit Plans Disclosure [Line Items]
Vesting percentage										20.00%
Non-Executive Officers Not Director
Compensation And Benefit Plans Disclosure [Line Items]
Vesting percentage										20.00%
Restricted Stock Units
Compensation And Benefit Plans Disclosure [Line Items]
Number of stock grants							0		63,715
Compensation expense \| $							$ 400,000	300,000
Total remaining unrecognized compensation cost \| $							$ 400,000
Weighted average period expected to be recognized							57 months
Stock Options
Compensation And Benefit Plans Disclosure [Line Items]
Compensation expense \| $							$ 50,000.00	50,000.00
2018 Long-Term Incentive Plan
Compensation And Benefit Plans Disclosure [Line Items]
Equity incentive plans, maximum number of shares issuable							1,248,469
Common stock reserved for future issuance							1,248,469
Conversion of issuable stock options to issuable restricted stock ratio							3.0
Number of issuable stock options converted into restricted stock units							462,522
Number of restricted stock units converted from issuable stock options							154,174
Number of grants					674,645
2018 Long-Term Incentive Plan \| Executive Officers
Compensation And Benefit Plans Disclosure [Line Items]
Vesting percentage										20.00%
2018 Long-Term Incentive Plan \| Directors
Compensation And Benefit Plans Disclosure [Line Items]
Vesting percentage										20.00%
Vesting period										10 years
2018 Long-Term Incentive Plan \| Stock Options or Stock Appreciation Rights
Compensation And Benefit Plans Disclosure [Line Items]
Common stock reserved for future issuance							891,764
Shares available for future awards							4,883		4,883
2018 Long-Term Incentive Plan \| Restricted Stock Units
Compensation And Benefit Plans Disclosure [Line Items]
Common stock reserved for future issuance							356,705
Shares available for future awards							0		0
2018 Long-Term Incentive Plan \| Restricted Stock Units \| Executive Officers
Compensation And Benefit Plans Disclosure [Line Items]
Number of stock grants	40,460				322,254
2018 Long-Term Incentive Plan \| Restricted Stock Units \| Outside Directors
Compensation And Benefit Plans Disclosure [Line Items]
Number of stock grants	23,255				148,625
2018 Long-Term Incentive Plan \| Restricted Stock Units \| Non-Executive Officers
Compensation And Benefit Plans Disclosure [Line Items]
Number of stock grants	30,659				40,000
2018 Long-Term Incentive Plan \| Restricted Stock Units \| Non-Executive Officers \| December 31, 2020
Compensation And Benefit Plans Disclosure [Line Items]
Number of stock grants										15,000
2018 Long-Term Incentive Plan \| Incentive Options \| Executive Officers
Compensation And Benefit Plans Disclosure [Line Items]
Number of option grants	23,718				119,176
2018 Long-Term Incentive Plan \| Incentive Options \| Non-Executive Officers \| December 31, 2020
Compensation And Benefit Plans Disclosure [Line Items]
Number of stock grants										40,000
2018 Long-Term Incentive Plan \| Non-qualified Options \| Outside Directors
Compensation And Benefit Plans Disclosure [Line Items]
Number of option grants	13,952				44,590
2020 Long-Term Incentive Plan
Compensation And Benefit Plans Disclosure [Line Items]
Number of issuable stock options converted into restricted stock units							45,000
Number of restricted stock units converted from issuable stock options							15,000
2022 Long-Term Incentive Plan
Compensation And Benefit Plans Disclosure [Line Items]
Number of issuable stock options converted into restricted stock units							191,145
Number of restricted stock units converted from issuable stock options							63,715
Supplemental Executive Retirement Plan
Compensation And Benefit Plans Disclosure [Line Items]
Expense recognized \| $							$ 20,000.00	$ 20,000.00
Number of key executive under retirement plan \| Executive							1	1
Non-qualified Supplemental Executive Retirement Plan
Compensation And Benefit Plans Disclosure [Line Items]
Number of key executive under retirement plan \| Executive							2
Common Stock
Compensation And Benefit Plans Disclosure [Line Items]
Total issued shares		24,711,834
PDL Community Bancorp \| Common Stock
Compensation And Benefit Plans Disclosure [Line Items]
Conversion of stock		1.3952	977,880
KSOP
Compensation And Benefit Plans Disclosure [Line Items]
Defined contribution plan, maximum annual contributions per employee, amount \| $				$ 22,500
Defined contribution plan additional cost \| $				$ 7,500
Employer matching contribution percentage				3.00%
Expense recognized \| $				$ 30,000
Defined contribution plan, employers matching contribution, annual vesting percentage				100.00%
Maximum employer matching contribution percentage				20.00%
Defined contribution plan additional cost percentage				20
Number of years discretionary matching and profit sharing contributions				2 years
Number of additional year of service cost				6 years
KSOP \| PDL Community Bancorp \| Common Stock
Compensation And Benefit Plans Disclosure [Line Items]
Additional number of shares			1,097,353
Percentage of Shares Outstanding			4.44
Employee Stock Ownership Plan
Compensation And Benefit Plans Disclosure [Line Items]
Defined contribution plan, employers matching contribution, annual vesting percentage			100.00%
Number of years discretionary matching and profit sharing contributions			3 years
Employee Stock Ownership Plan \| PDL Community Bancorp \| Common Stock
Compensation And Benefit Plans Disclosure [Line Items]
Additional number of shares						723,751
First ESOP Loan
Compensation And Benefit Plans Disclosure [Line Items]
Total issued shares							13,900,000
First ESOP Loan \| PDL Community Bancorp
Compensation And Benefit Plans Disclosure [Line Items]
Employee stock ownership plan ESOP loan term						15 years
Employee stock ownership plan ESOP interest percentage						2.60
First ESOP Loan \| PDL Community Bancorp \| Common Stock
Compensation And Benefit Plans Disclosure [Line Items]
Aggregate purchase price of common \| $						$ 7,200,000
Second ESOP Loan
Compensation And Benefit Plans Disclosure [Line Items]
Total issued shares							13,900,000
Second ESOP Loan \| PDL Community Bancorp
Compensation And Benefit Plans Disclosure [Line Items]
Employee stock ownership plan ESOP loan term			15 years
Employee stock ownership plan ESOP interest percentage			1.82
Second ESOP Loan \| PDL Community Bancorp \| Common Stock
Compensation And Benefit Plans Disclosure [Line Items]
Aggregate purchase price of common \| $			$ 11,000,000.0

Premises and Equipment

3 Months Ended

Mar. 31, 2023

Property Plant And Equipment [Abstract]

Premises and Equipment

Note 5. Premises and Equipment

Premises and equipment at March 31, 2023 and December 31, 2022 are summarized as follows:


	March 31,			December 31,
	2023			2022
	(in thousands)
Land	$	932		$	932
Buildings and improvements		4,717			4,717
Leasehold improvements		15,945			15,808
Furniture, fixtures and equipment		8,595			8,497
		30,189			29,954
Less: accumulated depreciation and amortization		(12,974	)		(12,508	)
Total premises and equipment	$	17,215		$	17,446

Depreciation and amortization expense amounted to $0.5 million and $0.5 million for the three months ended March 31, 2023 and 2022, respectively, and are included in occupancy and equipment in the accompanying consolidated statements of operations. Compared to December 31, 2022, leasehold improvements increased by $0.1 million to $15.9 million primarily as a result of asset additions and furniture, fixtures and equipment increased by $0.1 million to $8.6 million.

Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Federal:
Current	$ 40	$ (1,053)
Deferred	105	(1,715)
Federal income tax provision (benefit)	145	(2,768)
State and local:
Current	430	195
Deferred	(152)	(543)
State and local income tax provision (benefit)	278	(348)
Valuation allowance	123	168
(Benefit) provision for income taxes	$ 546	$ (2,948)

Borrowings - Additional Information (Details) - USD ($)	3 Months Ended
Borrowings - Additional Information (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Line Of Credit Facility [Line Items]
Outstanding term advances from FHLBNY and FRBNY	$ 648,375,000		$ 517,375,000
Advance from the Federal Home Loan Bank	395,900,000		511,400,000
Guarantee from the FHLBNY through a standby letter of credit	9,300,000		21,500,000
Unsecured fed fund line amount outstanding	90,000,000.0		90,000,000.0
Interest expense on FHLBNY advances	3,900,000	$ 500,000
Interest Expense on overnight advances	900,000	0
Collateral in residential 1-4 and multifamily mortgage loans available to secure advances from the FHLBNY	1,641,304,000		1,525,668,000
Interest expense on FRBNY term advances	300,000	0
Interest expense	11,111,000	$ 1,680,000
Asset Pledged as Collateral without Right
Line Of Credit Facility [Line Items]
Collateral in residential 1-4 and multifamily mortgage loans available to secure advances from the FHLBNY	529,700,000		478,800,000
Overnight Line of Credit Advance
Line Of Credit Facility [Line Items]
Advance from the Federal Home Loan Bank	$ 0		6,000,000.0
Warehouse Line of Credit #1
Line Of Credit Facility [Line Items]
Warehouse line of credit termination date	Feb. 07, 2023
Warehouse Line of Credit #2
Line Of Credit Facility [Line Items]
Warehouse line of credit termination date	Mar. 31, 2022
FHLBNY and FRBNY
Line Of Credit Facility [Line Items]
Unsecured fed fund line amount outstanding	$ 0		0
FRBNY
Line Of Credit Facility [Line Items]
Percentage of total securities portfolio	39.00%
Securities portfolio amortized cost	$ 250,200,000
Outstanding term advances from FRBNY	$ 252,500,000		$ 0

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the three months ended March 31, 2023 and 2022 consists of the following:


	For the Three Months Ended March 31,
	2023			2022
	(in thousands)
Federal:
Current	$	40		$	(1,053	)
Deferred		105			(1,715	)
		145			(2,768	)
State and local:
Current		430			195
Deferred		(152	)		(543	)
		278			(348	)
Valuation allowance		123			168
Provision (benefit) for income taxes	$	546		$	(2,948	)

Schedule of Reconciliation of Differences Between Federal Income Tax Rate and Total Income Tax Expense


	For the Three Months Ended March 31,
	2023		2022
	(in thousands)
Income tax, at federal rate	$	184	$	(2,051	)
State and local tax, net of federal taxes		220		(275	)
Valuation allowance, net of the federal benefit		123		168
Other		19		(790	)
	$	546	$	(2,948	)

Schedule of Significant Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31, 2023 and December 31, 2022 are presented below:


	March 31,		December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	9,485	$	11,324
Interest on nonaccrual loans		537		317
Unrealized loss on available-for-sale securities		4,444		4,777
Amortization of intangible assets		27		32
Operating lease liabilities		11,230		11,304
Net operating losses		9,296		9,119
Charitable contribution carryforward		1,872		1,859
Compensation and benefits		788		562
Other		1,418		478
Total gross deferred tax assets		39,097		39,772
Deferred tax liabilities:
Depreciation of premises and equipment		1,049		1,049
Right of use assets		10,850		10,941
Deferred loan fees		687		671
Other		29		29
Total gross deferred tax liabilities		12,615		12,690
Valuation allowance		11,069		10,945
Net deferred tax assets	$	15,413	$	16,137

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Cash Flows From Operating Activities:
Net income (loss)	$ 331	$ (6,820)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of premiums/discounts on securities, net	(30)	67
Gain on sale of loans	0	(7)
Gain on derivatives	(119)	(152)
Grain recoveries	(914)	0
Provision for credit losses	(174)	1,258	$ 24,046
Depreciation and amortization	742	467
ESOP compensation	262	375
Share-based compensation expense	404	356
Deferred income taxes	391	(2,090)
Changes in assets and liabilities:
(Increase) decrease in mortgage loans held for sale, fair value	(1,008)	7,864
Increase in accrued interest receivable	(386)	(437)
(Increase) decrease in other assets	(778)	6,554
Increase (decrease) in accrued interest payable	377	(5)
Decrease in operating lease liabilities	(224)	0
Increase in advance payments by borrowers	5,178	2,504
Increase in other liabilities	2,094	2,024
Net cash provided by operating activities	6,146	11,958
Cash Flows From Investing Activities:
Proceeds from redemption of FHLBNY stock	240,691	581
Purchases of FHLBNY Stock	(235,239)	0
Purchases of available-for-sale securities	0	(53,385)
Proceeds from maturities, calls and principal repayments on available-for-sale securities	21,140	4,763
Placements with banks	249	0
Proceeds from sales of loans	0	3,699
Net increase in loans	(117,890)	(317)
Purchases of premises and equipment	(235)	(130)
Net cash used in investing activities	(91,284)	(44,789)
Cash Flows From Financing Activities:
Net increase (decrease) in deposits	84,465	(23,551)
Contribution to the Ponce De Leon Foundation	0	(1,000)
Net proceeds from borrowings	131,000	(12,880)
Net advances on warehouse lines of credit	0	(14,337)
Net cash provided by (used in) financing activities	215,465	(51,768)
Net increase (decrease) in cash and cash equivalents	130,327	(84,599)
Cash and Cash Equivalents including restricted cash:
Beginning	54,360	153,894	153,894
Ending	184,687	69,295	$ 54,360
Supplemental disclosures of cash flow information:
Cash paid for interest on deposits and borrowings	10,734	1,685
Cash paid for income taxes	$ 37	$ 42

Borrowings (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Borrowed Funds FHLBNY and Correspondent Bank Advances Maturity and Call Date

Borrowed funds at March 31, 2023 and December 31, 2022 consist of the following and are summarized by maturity and call date below:


	March 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		4.6	%

Term advances ending:
2023	$	24,775	$	24,775		2.81		$	178,375	$	178,375		4.32
2024		302,500		302,500		4.51			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
Thereafter		59,100		59,100		3.43			50,000		50,000		3.35
	$	648,375	$	648,375		3.99	%	$	517,375	$	517,375		3.90	%

Leases - Summary of Minimum Annual Rental Payments under Terms of Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jan. 01, 2022
Operating Leases Future Minimum Payments Due [Abstract]
Remainder of 2023	$ 2,864
2024	3,833
2025	3,635
2026	3,422
2027	3,495
2028	3,566
Thereafter	25,476
Total Minimum payments required	46,291
Less: implied interest	11,983
Lease obligations	$ 34,308	$ 34,532	$ 36,700

Fair Value

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value

Note 13. Fair Value

The following fair value hierarchy is used based on the lowest level of input significant to the fair value measurement. There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate fair value:

Cash and Cash Equivalents, Placements with Banks, Accrued Interest Receivable, Advance Payments by Borrowers for Taxes and Insurance, and Accrued Interest Payable: The carrying amount is a reasonable estimate of fair value. These assets and liabilities are not recorded at fair value on a recurring basis.

Available-for-Sale Securities: These financial instruments are recorded at fair value in the consolidated financial statements on a recurring basis. Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted prices are not available, then fair values are estimated by using pricing models (e.g., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds and mortgage-backed securities. Level 3 securities are securities for which significant unobservable inputs are utilized. There were no changes in valuation techniques used to measure similar assets during the period.

FHLBNY Stock: The carrying value of FHLBNY stock approximates fair value since the Bank can redeem such stock with FHLBNY at cost. As a member of the FHLBNY, the Company is required to purchase this stock, which is carried at cost and classified as restricted equity securities.

Loans Receivable: For variable rate loans, which reprice frequently and have no significant change in credit risk, carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using estimated market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. Impaired loans are valued using a present value discounted cash flow method, or the fair value of the collateral. Loans are not recorded at fair value on a recurring basis.

Mortgage Loans Held for Sale: Mortgage loans held for sale, at fair value, consists of mortgage loans originated for sale by Mortgage World and accounted for under the fair value option. These assets are valued using stated investor pricing for substantially equivalent loans as Level 2. In determining fair value, such measurements are derived based on observable market data, including whole-loan transaction pricing and similar market transactions adjusted for portfolio composition, servicing value and market conditions. Loans held for sale by the Bank are carried at the lower of cost or fair value as determined by investor bid prices.

Under the fair value option, management has elected, on an instrument-by-instrument basis, fair value for substantially all forms of mortgage loans originated for sale on a recurring basis. The fair value carrying amount of mortgages held for sale measured under the fair value option was $3.0 million and the aggregate unpaid principal amounted to $3.0 million.

Interest Rate Lock Commitments: The Bank, through its Mortgage World division, enters into rate lock commitments to extend credit to borrowers for generally up to a 60 day period for origination and/or purchase of loans. To the extent that a loan is ultimately granted and the borrower ultimately accepts the terms of the loan, these loan commitments expose the Bank’s Mortgage World division to variability in its fair value due to changes in interest rates.

The FASB determined that loan commitments related to the origination or acquisition of mortgage loans that will be held for sale must be accounted for as derivative instruments. Such commitments, along with any related fees received from potential borrowers, are recorded at fair value in derivative assets or liabilities, with changes in fair value recorded in income on sale of mortgage loans. Fair value is based on active market pricing for substantially similar underlying mortgage loans commonly referred to as best execution pricing or investment commitment pricing, if the loan is committed to an investor through a best efforts contract. In valuing interest rate lock commitments, there are several unobservable inputs such as the fair value of the mortgage servicing rights, estimated remaining cost to originate the loans, and the pull through rate of the open pipeline. Accordingly, such derivative is classified as Level 3.

The approximate notional amounts of Mortgage World’s derivative instruments were $4.9 million and $1.7 million at March 31, 2023 and December 31, 2022, respectively. The fair value of derivatives related to interest rate lock commitments not subject to a forward loan sale commitment, amounted to $0.1 million and $0.02 million as of March 31, 2023 and December 31, 2022 and is included in other assets on the Consolidated Statements of Financial Condition.

The table below presents the changes in derivatives from interest rate lock commitments that are measured at fair value on a recurring basis:


	(in thousands)
Balance as of December 31, 2022	$	22
Change in fair value of derivative instrument reported in earnings		97
Balance as of March 31, 2023	$	119

Other Real Estate Owned: Other real estate owned represents real estate acquired through foreclosure, and is recorded at fair value less estimated disposal costs on a nonrecurring basis. Fair value is based upon independent market prices, appraised values of the collateral or management's estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the asset is classified as Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the asset is classified as Level 3.

Deposits: The fair values of demand deposits, savings, NOW and money market accounts equal their carrying amounts, which represent the amounts payable on demand at the reporting date. Fair values for fixed-term, fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on certificates of deposit to a schedule of aggregated expected monthly maturities on such deposits. Deposits are not recorded at fair value on a recurring basis.

FHLBNY Advances: The fair value of the advances is estimated using a discounted cash flow calculation that applies current market-based FHLBNY interest rates for advances of similar maturity to a schedule of maturities of such advances. These borrowings are not recorded at fair value on a recurring basis.

Warehouse Lines of Credit: The carrying amounts of warehouse lines of credit and mortgage loan funding payable approximate fair value and due to their short-term nature are classified as Level 2. One of the warehouse lines of credit was terminated on March 31, 2022 and one was terminated on February 7, 2023

Off-Balance-Sheet Instruments: Fair values for off-balance-sheet instruments (lending commitments and standby letters of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. Off-balance-sheet instruments are not recorded at fair value on a recurring basis.


			March 31, 2023
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds	$	2,746	$	2,746	$	—	$	—
Corporate bonds		23,177		649		22,528		—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		37,391		—		37,391		—
FHLMC Certificates		9,546				9,546
FNMA Certificates		55,345		—		55,345		—
GNMA Certificates		115		—		115		—
Mortgage Loans Held for Sale, at fair value		2,987		—		2,987		—
Derivatives from interest rate lock commitments		119		—		—		119
	$	131,426	$	3,395	$	127,912	$	119


			December 31, 2022
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds	$	2,689	$	2,689	$	—	$	—
Corporate bonds		23,359		730		22,629		—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		37,777		—		37,777		—
FHLMC Certificates		9,634				9,634
FNMA Certificates		55,928		—		55,928		—
GNMA Certificates		118		—		118		—
Mortgage Loans Held for Sale, at fair value		1,979		—		1,979		—
Derivatives from interest rate lock commitments		22		—		—		22
	$	131,506	$	3,419	$	128,065	$	22

Management’s assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred.


	March 31, 2023
	Total		Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	24,986	$	—	$	—	$	24,986


	December 31, 2022
	Total		Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	17,952	$	—	$	—	$	17,952

Losses on assets carried at fair value on a nonrecurring basis were de minimis for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023 and December 31, 2022, the carrying values and estimated fair values of the Company's financial instruments were as follows:


	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
March 31, 2023
Financial assets:
Cash and cash equivalents	$	184,687	$	184,687	$	—	$	—	$	184,687
Available-for-sale securities, at fair value		128,320		3,395		124,925		—		128,320
Held-to-maturity securities, at amortized cost, net		491,649		—		482,621		—		482,621
Placements with banks		1,245		—		1,245		—		1,245
Mortgage loans held for sale, at fair value		2,987		—		2,987		—		2,987
Loans receivable, net		1,614,428		—		—		1,551,627		1,551,627
Accrued interest receivable		15,435		—		15,435		—		15,435
FHLBNY stock		19,209		19,209		—		—		19,209
Financial liabilities:
Deposits:
Demand deposits		282,741		282,741		—		—		282,741
Interest-bearing deposits		667,519		667,519		—		—		667,519
Certificates of deposit		386,617		—		383,066		—		383,066
Advance payments by borrowers for taxes and insurance		14,902		—		14,902		—		14,902
Borrowings		648,375		—		636,704		—		636,704
Accrued interest payable		1,767		—		1,767		—		1,767


	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
December 31, 2022
Financial assets:
Cash and cash equivalents	$	54,360	$	54,360	$	—	$	—	$	54,360
Available-for-sale securities, at fair value		129,505		3,419		126,086		—		129,505
Held-to-maturity securities, at amortized cost		510,820		—		495,851		—		495,851
Placements with banks		1,494		—		1,494		—		1,494
Mortgage loans held for sale, at fair value		1,979		—		1,979				1,979
Loans receivable, net		1,493,127		—		—		1,430,864		1,430,864
Accrued interest receivable		15,049		—		15,049		—		15,049
FHLBNY stock		24,661		24,661		—		—		24,661
Financial liabilities:
Deposits:
Demand deposits		289,149		289,149		—		—		289,149
Interest-bearing deposits		586,645		586,645		—		—		586,645
Certificates of deposit		376,618		—		37,005		—		37,005
Advance payments by borrowers for taxes and insurance		9,724		—		9,724		—		9,724
Borrowings		517,618		—		503,406		—		503,406
Accrued interest payable		1,390		—		1,390		—		1,390


	March 31,		December 31,
	2023		2022
	(in thousands)
Beginning balance	$	—	$	4,929
Total loss included in earnings		—		(344	)
Transfer out of level 3		—		(4,585	)
Ending balance	$	—	$	—

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no transfers into or out of Level 3 assets or liabilities in the fair value hierarchy at March 31, 2023 and one security transferred out of Level 3 assets in the fair value hierarchy at December 31, 2022. Fair value for Level 3 securities was determined using a third-party pricing service with limited levels of activity and price transparency.

Off-Balance-Sheet Instruments: Loan commitments on which the committed interest rate is less than the current market rate are insignificant at March 31, 2023 and December 31, 2022.

The fair value information about financial instruments are disclosed, whether or not recognized in the consolidated statements of financial condition, for which it is practicable to estimate that value. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair value amounts for 2023 and 2022 have been measured as of their respective period-ends and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than amounts reported at each period.

The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company's assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other banks may not be meaningful.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Nature of Business and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Nature of Business and Summary of Significant Accounting Policies

Note 1. Nature of Business and Summary of Significant Accounting Policies

Basis of Presentation and Consolidation:

Ponce Financial Group, Inc. (hereafter referred to as “we,” “our,” “us,” “Ponce Financial Group, Inc.,” or the “Company”) is the holding company of Ponce Bank (“Ponce Bank” or the “Bank”), a federally chartered stock savings association. The Company’s Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiary Ponce Bank (the “Bank”) and the Bank’s wholly-owned subsidiary, Ponce De Leon Mortgage Corp., which is a mortgage banking entity. All significant intercompany transactions and balances have been eliminated in consolidation.

Nature of Operations:

The Company is a savings and loan holding company. The Company is subject to the regulation and examination by the Board of Governors of the Federal Reserve. The Company’s business is conducted through the administrative office and 13 full service banking and 6 mortgage loan offices. The banking offices are located in New York City – the Bronx (4 branches), Queens (3 branches), Brooklyn (3 branches), Manhattan (2 branches) and Union City (1 branch), New Jersey. The mortgage loan offices are located in Queens (4) and Brooklyn (1), New York and Bergenfield (1), New Jersey. The Company’s primary market area currently consists of the New York City metropolitan area.

The Bank is a federally chartered stock savings association headquartered in the Bronx, New York. It was originally chartered in 1960 as a federally chartered mutual savings and loan association under the name Ponce De Leon Federal Savings and Loan Association. In 1985, the Bank changed its name to “Ponce De Leon Federal Savings Bank.” In 1997, the Bank changed its name again to “Ponce De Leon Federal Bank.” Upon the completion of its reorganization into a mutual holding company structure in September of 2017, the assets and liabilities of Ponce De Leon Federal Bank were transferred to and assumed by the Bank. The Bank is a Minority Depository Institution (“MDI”), a Community Development Financial Institution (“CDFI”), and a certified Small Business Administration (“SBA”) lender. The Bank is subject to comprehensive regulation and examination by the Office of Comptroller of the Currency (the “OCC”).

The Bank’s business primarily consists of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of one-to-four family residential (both investor-owned and owner-occupied), multifamily residential, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. The Bank also invests in securities, which have historically consisted of U.S. government and federal agency securities and securities issued by government-sponsored or owned enterprises, mortgage-backed securities and Federal Home Loan Bank of New York (the “FHLBNY”) stock. The Bank offers a variety of deposit accounts, including demand, savings, money markets and certificates of deposit accounts.

Risks and Uncertainties:

With the continuation of the sustained conflict and disruption in the Ukraine, the impact to Ukraine as well as actions taken by other countries, including new and stricter sanctions imposed by Canada, the United Kingdom, the European Union, the U.S. and other countries and companies and organizations against officials, individuals, regions, and industries in Russia, and actions taken by Russia in response to such sanctions, and each country’s potential response to such sanctions, tensions, and military actions could have a material adverse effect on our operations.

Inflation and interest rates may continue to adversely impact several industries within our geographic footprint and impair the ability of the Company’s customers to fulfill their contractual obligations to the Company. This could cause the Company to experience adverse effects on its business operations, loan portfolio, financial condition, and results of operations. During the three months ended March 31, 2023, the benefit for credit losses amounted to $0.2 million primarily due to a net benefit of $0.3 million related to loans originated by Grain Technology, Inc. ("Grain") (see Note 4 for additional information related to Grain reserves) countered by increases in the loan portfolio and a provisions of $0.1 million related to held-to-maturity securities.

Summary of Significant Accounting Policies:

Use of Estimates: In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the consolidated statement of financial condition, and revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of loans held for sale, the valuation of deferred tax assets and investment securities and the estimates relating to the valuation for share-based awards.

Interim Financial Statements: The interim consolidated financial statements at March 31, 2023, and for the three months ended March 31, 2023 and 2022 are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results to be achieved for the remainder of the year ending December 31, 2023, or any other period.

Significant Group Concentrations of Credit Risk: Most of the Bank's activities are with customers located within New York City. Accordingly, the ultimate collectability of a substantial portion of the Bank's loan portfolio and the ability of Mortgage World, a division of the Bank, to sell originated loans in the secondary markets are susceptible to changes in the local market conditions. Note 3 discusses the types of securities in which the Bank invests. Notes 4 and 12 discuss the types of lending that the Bank engages in, and other concentrations.

Cash and Cash Equivalents: Cash and cash equivalents include cash on hand and amounts due from banks (including items in process of clearing). For purposes of reporting cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash flows from loans originated by the Company, interest-bearing deposits in financial institutions, and deposits are reported net. Included in cash and cash equivalents are restricted cash from escrows and good faith deposits. Escrows consist of U.S. Department of Housing and Urban Development (“HUD”) upfront mortgage insurance premiums and escrows on unsold mortgages that are held on behalf of borrowers. Good faith deposits consist of deposits received from commercial loan customers for use in various disbursements relating to the closing of a commercial loan.

Securities: Management determines the appropriate classification of securities at the date individual investment securities are acquired, and the appropriateness of such classification is reassessed at each statement of financial condition date.

Debt securities that management has the positive intent and ability to hold to maturity are classified as "held-to-maturity" and recorded at amortized cost. Trading securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held-to-maturity or trading, are classified as "available-for-sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of tax. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities.

Held-to maturity securities: Effective January 1, 2023, the Company adopted Accounting Standards Topic 326, "Financial Instruments - Credit Losses" which replaced the previously existing U.S. GAAP "incurred loss" approach to "expected credit losses" approach, which is referred as Current Expected Credit Losses ("CECL"). CECL modifies the accounting of impairment on held-for-sale debt securities by recognizing a credit loss through an allowance for credit losses. The Company methodology to measure the allowance for credit loss ("ACL") incorporates both quantitative and qualitative information to assess lifetime expected credit losses at the portfolio level. The quantitative component includes the calculation of loss rates using an open pool method. The Company differentiates its loss-rate method for a pool of held-to-maturity corporate securities by looking to publicly available historical default and recovery statistics based on the attributes of issuer type, rating category and time to maturity. The Company measures expected credit losses of these financial assets by applying loss rates to the amortized cost basis of each asset taking into consideration amortization, prepayment and default assumptions.

The Company considers qualitative adjustments to expected credit losses for information not already captured in the loss estimation process. Qualitative factor adjustments may increase or decrease management's estimate of expected credit losses. Adjustments will not be made for information that has already been considered and included in the quantitative allowance.

Available-for-sale securities: The impairment model for available-for-sale ("AFS") debt securities differs from the CECL approach utilized by held-to-maturity ("HTM") debt securities since AFS debt securities are measured at fair value rather than amortized cost. For AFS debt securities in an unrealized loss position, the Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income.

On a quarterly basis, the Company evaluates the available-for-sale securities for impairment. Securities that are in an unrealized loss position are reviewed to determine if a securities credit loss exists based on certain quantitative and qualitative factors. The primary factors considered in evaluating whether an impairment exists include: (a) the extent to which the fair value is less than the amortized cost basis, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments, and (d) whether the Company intends to sell the security and whether it is more likely than not the Company will not be required to sell the security.

If a determination is made that a security is impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as a securities credit loss as a provision expense through the establishment of an allowance for available for sale securities. The securities credit loss expense will be limited to the difference between the security's amortized cost basis and fair value and any future changes may be reversed, limited to the amount previously expensed in the period they occur. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income, net of tax.

The evaluation of securities for impairment is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether declines in the estimated fair value of investments should be recognized in current period earnings. The risks and uncertainties include change in general economic conditions, the issuer's financial condition and/or future prospects, the effects of changes in interest rates or credit spreads, and the expected recovery period. See Note 3 ("Securities") of the Notes to the Consolidated Financial Statements.

Federal Home Loan Bank of New York Stock: The Bank is a member of the FHLBNY. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBNY stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Loans Receivable: Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at current unpaid principal balances, net of the allowance for credit losses on loans and including net deferred loan origination fees and costs.

Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the interest method without anticipating prepayments.

A loan is moved to nonaccrual status in accordance with the Company’s policy typically after 90 days of non-payment. The accrual of interest on mortgage and commercial loans is generally discontinued at the time the loan becomes 90 days past due unless the loan is well-secured and in process of collection. Consumer loans are typically charged-off no later than 90 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off if collection of principal or interest is considered doubtful. All nonaccrual loans are considered impaired loans.

All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Interest received on such loans is accounted for on the cash basis or recorded against principal balances, until qualifying for return to accrual. Cash basis interest recognition is only applied on nonaccrual loans with a sufficient collateral margin to ensure no doubt with respect to the collectability of principal. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and remain current for a period of time (typically six months) and future payments are reasonably assured. Accrued interest receivable is closely monitored for collectability and will be charged-off in a timely manner if deemed uncollectable. In the event that collection of principal becomes uncertain, the Company has policies in place to write-off accrued interest receivable by reversing interest income in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the amortized cost basis and therefore excludes it from the measurement of the ACL.

Allowance for Credit Losses: The allowance for credit losses (“ACL”) on loans is management's estimate of expected credit losses over the expected life of the loans at the reporting date. The ACL on loans is increased through a provision for credit losses (“PCL”) recognized in the Consolidated Statements of Operations and by recoveries of amounts previously charged off. The ACL on loans is reduced by charge-offs on loans. Loan charge-offs are recognized when Management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral-dependent individually analyzed loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan.

According to ASC 326-20-30-9, estimating expected credit losses is highly judgmental and generally will require Ponce Bank to make specific judgments. One of these specific judgments around how Ponce Bank will make or obtain reasonable and supportable forecasts of expected credit losses. Ponce Bank uses Federal Open Market Committee to obtain various forecasts for unemployment rate, national gross domestic product and the National Consumer Price Index. Ponce Bank has elected to forecast the first four quarters of the credit loss estimate and revert to a long-run average of each considered economic factor as permitted in ASC 326-20-30-9.

The level of the ACL on loans is based on Management's ongoing review of all relevant information, from internal and external sources, related to past events, current conditions and reasonable forecast. Historical credit loss experience provides the basis for calculation of probability of default, loss given default, exposure at default and the estimation of expected credit losses. As discussed further below, adjustments to historical information are made for differences in specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, that may not be reflected in historical loss rates.

Management employs a process and methodology to estimate the ACL on loans that evaluates both quantitative and qualitative factors. Under ASC 326-20-30-2 and 326-20-55-5, Ponce Bank should aggregate financial assets on the basis of similar risk characteristics. Management selected a Call Code segmentation, as based on the Bank's call report. Management’s criteria for determining an appropriate segmentation (1) groups loans based on similar risk characteristics; (2) allows for mapping and utilization/application of publicly available external information (Call Report Filings); (3) allows for mapping and utilization/application of publicly available external information; (4) federal call code is granular enough to accommodate enough to accommodate a “like-kind” notion, yet broad enough to maintain statistical relevance and/or a meaningful number of loan observations within material segments and (5) federal call code designation is identifiable throughout historical data sets, which is critical component of segmentation selection.

Quantitative loss factors are also supplemented by certain qualitative risk factors reflecting Management's view of how losses may vary from those represented by quantitative loss rates. These qualitative risk factors include: (1) changes in lending policies, procedures and strategies including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; (2) economic conditions such as the Bank’s market area, customer demographics, portfolio composition, along with national indicators considered impactful to the model; (3) changes in the nature and volume of the portfolio; (4) credit and lending staff/administration; (5) problem with loan trends; (6) concentrations; (7) loan review results; (8) collateral values and regulatory and business environment.

Because the methodology is based upon historical experience and trends, current economic data, reasonable and supportable forecasts, as well as Management's judgment, factors may arise that result in different estimations. Deteriorating conditions or assumptions could lead to further increases in the ACL on loans. The ACL on loans is determined by an estimate of future credit losses, and ultimate losses may vary from Management's estimate..

Allowances for Credit Losses on Unfunded Commitments: The ACL on unfunded commitments is Management's estimate of expected credit losses over the expected credit losses over the expected contractual term (or life) in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditional cancellable by the Company. For each portfolio, estimated loss rates and funding factors are applied to the corresponding balance of unfunded commitments and the estimated loss rates applied to unfunded commitments are the same quantitative and qualitative loss rates applied to the corresponding on-balance sheet amounts in determining the ACL on loans. The estimated funding factor applied to unfunded commitments represents the likelihood that the funding will occur and is based upon the Company's average historical utilization rate each portfolio.

The ACL on unfunded commitments in included in other liabilities in the Consolidated Statements of Financial Conditions. The ACL on unfunded commitments is adjusted through non-interest expense in the Consolidated Statements of Operations.

Mortgage Loans Held for Sale, at Fair Value: Mortgage loans held for sale, at fair value, include residential mortgages that were originated in accordance with secondary market pricing and underwriting standards. These loans are loans originated by the Bank’s Mortgage World division and the Company intends to sell these loans on the secondary market. Mortgage loans held for sale are carried at fair value under the fair value option accounting guidance for financial assets and financial liabilities. The gains or losses for the changes in fair value of these loans are included in income on sale of mortgage loans on the consolidated statements of operations. Interest income on mortgage loans held for sale measured under the fair value option is calculated based on the principal amount of the loan and is included in interest loans receivable on the consolidated statements of operations.

Derivative Financial Instruments: The Company, through the Bank’s Mortgage World division, uses derivative financial instruments as a part of its price risk management activities. All such derivative financial instruments are designated as free-standing derivative instruments. In accordance with FASB ASC 815-25, Derivatives and Hedging, all derivative instruments are recognized as assets or liabilities on the balance sheet at their fair value. Change in the fair value of these derivatives is reported in current period earnings.

Additionally, to facilitate the sale of mortgage loans, the Bank, through its Mortgage World division, may enter into forward sale positions on securities, and mandatory delivery positions. Exposure to losses or gains on these positions is limited to the net difference between the calculated amounts to be received and paid. As of March 31, 2023, the Company did not enter into any forward sale or mandatory delivery positions on their financial instruments.

Revenue from Contracts with Customers: The Company’s revenue from contracts with customers in the scope of ASC 606, Revenue from Contract with Customers, is recognized within noninterest income. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Management determined the revenue streams impacted by ASC 606 included those related to service charges on deposit accounts, ATM and card fees and other services fees. The Company’s revenue recognition pattern for these revenue streams did not change from current practice. The Company's primary sources of revenue are interest income on financial assets and income from mortgage banking activities, which are explicitly excluded from the scope of ASC 606.

Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when all of the components meet the definition of a participating interest and when control over the assets has been surrendered. A participating interest generally represents (1) a proportionate (pro rata) ownership interest in an entire financial asset, (2) a relationship where from the date of transfer all cash flows received from the entire financial asset are divided proportionately among the participating interest holders in an amount equal to their share of ownership, (3) the priority of cash flows has certain characteristics, including no reduction in priority, subordination of interest, or recourse to the transferor other than standard representation or warranties, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through either (a) an agreement to repurchase them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a clean-up call.

Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation.

Depreciation is computed and charged to operations using the straight-line method over the estimated useful lives of the respective assets as follows:


		Years
Buildings		39
Building improvements		15 - 39
Furniture, fixtures, and equipment		3 - 10

Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms, including extensions expected to be exercised. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. Leasehold improvements in process are not amortized until the assets are placed in operation.

Impairment of Long-Lived Assets: Long-lived assets, including premises and leasehold improvements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment is indicated by that review, the asset is written down to its estimated fair value through a charge to noninterest expense.

Leases: The Company leases office space and certain equipment under non-cancellable operating lease agreements and determines if an arrangement is a lease at inception. The Company does not currently have any financing lease arrangements.

Right of use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right of use assets are recognized on the commencement date based on the present value of lease payments over the lease term adjusted for initial direct costs, if any, and lease incentives received or deemed probable of being received. The Company uses the rate implicit in the lease if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The implicit rates of Company leases are not readily determinable and accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date for all leases. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The Company uses its FHLBNY borrowing rate based on the information available on the commencement date plus a spread of 2.50% in determining the present value of lease payments.

Lease expense is recognized on a straight-line basis over the lease term and is included in “Occupancy and equipment” in the Consolidated Statement of Operations. Some of the Company’s lease agreements include rental payments adjusted periodically for inflation which are accounted for as variable lease amounts but are not reflected as a component of the Company’s lease liability. Certain leases also require the Company to pay real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises or equipment which are also not reflected as a component of the Company’s lease liability

Other Real Estate Owned: Other Real Estate Owned (“OREO”) represents properties acquired through, or in lieu of, loan foreclosure or other proceedings. OREO is initially recorded at fair value, less estimated disposal costs, at the date of foreclosure, which establishes a new cost basis. After foreclosure, the properties are held for sale and are carried at the lower of cost or fair value, less estimated costs of disposal. Any write-down to fair value, at the time of transfer to OREO, is charged to the allowance for credit losses.

Properties are evaluated regularly to ensure that the recorded amounts are supported by current fair values and charges against earnings are recorded as necessary to reduce the carrying amount to fair value, less estimated costs to dispose. Costs relating to the development and improvement of the property are capitalized, subject to the limit of fair value of the OREO, while costs relating to holding the property are expensed. Gains or losses are included in operations upon disposal.

Income Taxes: The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income, in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Interest and penalties associated with unrecognized tax benefits, if any, would be classified as additional provision for income taxes in the consolidated statements of operations.

Related Party Transactions: Directors and officers of the Company and their affiliates have been customers of and have had transactions with the Company, and it is expected that such persons will continue to have such transactions in the future. Management believes that all deposit accounts, loans, services and commitments comprising such transactions were made in the ordinary course of business, on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other customers who are not directors or officers. In the opinion of management, the transactions with related parties did not involve more than normal risk of collectability, nor favored treatment or terms, nor present other unfavorable features. Note 16 contains details regarding related party transactions.

Employee Benefit Plans: The Company maintains a KSOP, an Employee Stock Ownership Plan with 401(k) provisions incorporated, a Long-Term Incentive Plan that includes grants of restricted stock units and stock options, and a Supplemental Executive Retirement Plan (the “SERP”).

KSOP, the Employee Stock Ownership Plan with 401(k) Provisions: Compensation expense is recorded as shares are committed to be released with a corresponding credit to unearned KSOP equity account at the average fair market value of the shares during the period and the shares become outstanding for earnings per share computations. Compensation expense is recognized ratably over the service period based upon management’s estimate of the number of shares expected to be allocated by the KSOP. The difference between the average fair market value and the cost of the shares allocated by the KSOP is recorded as an adjustment to additional paid-in-capital. Unallocated common shares held by the Company’s KSOP are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for both basic and diluted earnings per share calculations until they are committed to be released. The 401(k) provisions provide for elective employee/participant deferrals of income. Discretionary matching, profit-sharing, and safe harbor contributions, not to exceed 4% of employee compensation and profit-sharing contributions may be provided.

Stock Options: The Company recognizes the value of shared-based payment transactions as compensation costs in the financial statements over the period that an employee provides service in exchange for the award. The fair value of the share-based payments for

stock options is estimated using the Black-Scholes option-pricing model. The Company accounts for forfeitures as they occur during the period.

Restricted Stock Units: The Company recognizes compensation cost related to restricted stock units based on the market price of the stock units at the grant date over the vesting period. The product of the number of units granted and the grant date market price of the Company’s common stock determines the fair value of restricted stock units. The Company recognizes compensation expense for the fair value of the restricted stock units on a straight-line basis over the requisite service period.

Comprehensive Income (Loss): Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which are both recognized as separate components of stockholder’s equity. Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale.

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the operations and financial position of the Company.

Fair Value of Financial Instruments: Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 13. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Segment Reporting: Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment and one reportable segment.

Loan Commitments and Related Financial Instruments: Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Earnings (Loss) per Share (“EPS”): Basic EPS represents net income (loss) attributable to common shareholders divided by the basic weighted average common shares outstanding. Diluted EPS is computed by dividing net income (loss) attributable to common shareholders by the basic weighted average common shares outstanding, plus the effect of potential dilutive common stock equivalents outstanding during the period. Basic weighted common shares outstanding is weighted average common shares outstanding less weighted average unallocated ESOP shares.

Treasury Stock: Shares repurchased under the Company’s share repurchase programs were purchased in open-market transactions and are held as treasury stock. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity.

Reclassification of Prior Periods Presentation: Certain prior periods amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reporting results of operations and did not affect previously reported amounts in the Consolidated Statements of Operations

Recently Adopted Accounting Standards Updates ("ASU"):

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, for public business entities. The Company took advantage of the extended transition period for complying with new or revised accounting standards as an EGC, and it adopted the amendments in this update for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022..

The Company has evaluated the amended guidance including the potential impact on its consolidated financial statements. The Company has identified its leased office spaces and equipment as within the scope of the guidance. The Company currently leases its administrative office and 15 branches and mortgage offices and the new guidance resulted in the establishment of a right to use asset of $36.2 million and corresponding lease obligations of $36.7 million as of January 1, 2022. The Company has adopted this standard on December 31, 2022, effective January 1, 2022.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard is to replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, is to apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also reportedly simplifies the accounting model for purchased credit-impaired debt, securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years, for public business entities, that are not deemed to be smaller reporting companies as defined by the SEC as of November 15, 2019. The Company has adopted the amendments in this update on January 1, 2023. Entities have to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings (i.e., modified retrospective approach).

As a result of the required change in approach toward determining estimated credit losses from the current “incurred loss” model to one based on estimated cash flows over a loan’s contractual life, adjusted for prepayments (a “life of loan” model), the Company recognized, net of taxes, a reduction of $2.4 million in the allowance credit for losses on loans, countered by increases of $0.8 million in unfunded commitments and $0.5 million in the allowance for credit losses on held-to-maturity debt securities.

In March 2022, the FASB issued ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326).” This ASU eliminates troubled debt restructuring guidance for organizations that adopted the amendments in ASU 2016-13 while providing for additional disclosures for loan modifications. This new guidance introduces new disclosure requirements for modifications of receivables to borrowers experiencing financial difficulty. Creditors should evaluate all modifications as either a new loan or continuation of an existing loan under the general guidance on loan refinancing and restructuring in ASC 310-20-35-9 through 35-11. The Company has adopted the amendments in this update on January 1, 2023. The Company has evaluated the impact of this guidance and it has no impact on the Company's consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted:

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848).” This ASU provides optional means and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of the reference rate reform. The amendments in this ASU were initially effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date (Topic 848)." This ASU extends the sunset (or expiration) date of Accounting Standards Codification (ASC) Topic 848 to December 31, 2024. This gives reporting entities two additional years to apply the accounting relief provided under ASC Topic 848 for matters related to reference rate reform. ASU 2022-06 is effective for all reporting entities immediately upon issuance and must be applied on a prospective basis. The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial statements.

Loans Receivable and Allowance for Credit Losses - Aging Analysis of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 1,641,304	$ 1,525,668
Nonaccrual Loans	19,351	13,708
90 Days or More Accruing	2,452	2,973
1-4 Family Investor Owned
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	354,559	343,968
Nonaccrual Loans	3,049	3,061
1-4 Family Residential Owner-Occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	149,481	134,878
Nonaccrual Loans	4,265	2,987
Multifamily Residential
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	553,430	494,667
Nonresidential Properties
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	314,560	308,043
Nonaccrual Loans	91	93
Construction and Land
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	235,157	185,018
Nonaccrual Loans	11,906	7,567
Current
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,612,140	1,482,970
Current \| 1-4 Family Investor Owned
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	350,105	340,495
Current \| 1-4 Family Residential Owner-Occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	146,929	131,510
Current \| Multifamily Residential
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	550,939	490,024
Current \| Nonresidential Properties
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	310,591	303,190
Current \| Construction and Land
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	223,252	173,351
Financial Asset, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	8,859	15,705
Financial Asset, 30 to 59 Days Past Due \| 1-4 Family Investor Owned
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,589	1,530
Financial Asset, 30 to 59 Days Past Due \| 1-4 Family Residential Owner-Occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	493	2,553
Financial Asset, 30 to 59 Days Past Due \| Multifamily Residential
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,052	4,643
Financial Asset, 30 to 59 Days Past Due \| Nonresidential Properties
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,969	4,246
Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	545	13,773
Financing Receivables, 60 to 89 Days Past Due \| 1-4 Family Investor Owned
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		78
Financing Receivables, 60 to 89 Days Past Due \| Nonresidential Properties
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		607
Financing Receivables, 60 to 89 Days Past Due \| Construction and Land
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		4,100
Financing Receivables, 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	19,760	13,220
Financing Receivables, 90 Days or More Past Due \| 1-4 Family Investor Owned
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,865	1,865
Financing Receivables, 90 Days or More Past Due \| 1-4 Family Residential Owner-Occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,059	815
Financing Receivables, 90 Days or More Past Due \| Multifamily Residential
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,439
Financing Receivables, 90 Days or More Past Due \| Construction and Land
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	11,905	7,567
Business Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	19,890	39,965
Nonaccrual Loans	40
90 Days or More Accruing	2,452	2,973
Business Loans \| Current
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	17,393	27,657
Business Loans \| Financial Asset, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	4	1,466
Business Loans \| Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1	7,869
Business Loans \| Financing Receivables, 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,492	2,973
Consumer
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	14,227	19,129
Consumer \| Current
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	12,931	16,743
Consumer \| Financial Asset, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	752	1,267
Consumer \| Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 544	$ 1,119

Securities - Summary of Maturities of Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Available-for-Sale Securities:
Available-for-Sale Securities, Amortized Cost	$ 149,196	$ 151,943
Available-for-sale securities, at fair value	128,320	129,505
Held-to-Maturity Securities:
Held To Maturity Securities, Amortized Cost		510,820
Allowance for Credit Losses	(809)
Held To Maturity Securities, Amortized Cost, After Allowance for Credit Losses	491,649
Held-to-maturity securities, at amortized cost ,fair value	482,621	495,851
Corporate Bonds
Available-for-Sale Securities:
Available-for-Sale Securities After one year through five years, Amortized Cost	4,000	4,000
Available-for-Sale Securities After five years through ten years, Amortized Cost	21,816	21,824
Available-for-Sale Securities, Amortized Cost	25,816	25,824
Available-for-Sale Securities After one year through five years, Amortized Cost	3,709	3,710
Available-for-Sale Securities After five years through ten years, Amortized Cost	19,468	19,649
Available-for-sale securities, at fair value	23,177	23,359
Held-to-Maturity Securities:
Held-to-Maturity Securities, More than one year through five years, Amortized Cost	75,000	75,000
Held-to-Maturity Securities, More than five years through ten years, Amortized Cost	7,500	7,500
Held To Maturity Securities, Amortized Cost	82,500	82,500
Held-to-Maturity Securities, More than one year through five years, Fair Value	71,101	71,328
Held-to-Maturity Securities, More than five years through ten years, Fair Value	7,241	7,410
Held-to-maturity securities, at amortized cost ,fair value	78,342	78,738
U.S. Government Bonds
Available-for-Sale Securities:
Available-for-Sale Securities After one year through five years, Amortized Cost	2,987	2,985
Available-for-Sale Securities, Amortized Cost	2,987	2,985
Available-for-Sale Securities After one year through five years, Amortized Cost	2,746	2,689
Available-for-sale securities, at fair value	2,746	2,689
Mortgage-Backed Securities
Available-for-Sale Securities:
Available-for-Sale Securities, Amortized Cost	120,393	123,134
Available-for-sale securities, at fair value	102,397	103,457
Held-to-Maturity Securities:
Held To Maturity Securities, Amortized Cost	384,958	393,320
Held-to-maturity securities, at amortized cost ,fair value	379,485	382,493
FHLMC Certificates
Available-for-Sale Securities:
Available-for-Sale Securities, Amortized Cost	11,036	11,310
Available-for-sale securities, at fair value	9,546	9,634
Held-to-Maturity Securities:
Held-to-maturity securities, at amortized cost ,fair value	3,763	3,852
US Agency Bonds
Held-to-Maturity Securities:
Held-to-Maturity Securities, More than one year through five years, Amortized Cost	25,000	35,000
Held To Maturity Securities, Amortized Cost	25,000	35,000
Held-to-Maturity Securities, More than one year through five years, Fair Value	24,794	34,620
Held-to-maturity securities, at amortized cost ,fair value	$ 24,794	$ 34,620

Compensation and Benefit Plans

3 Months Ended

Mar. 31, 2023

Compensation And Retirement Disclosure [Abstract]

Compensation and Benefit Plans

Note 10. Compensation and Benefit Plans

Ponce Bank Employee Stock Ownership Plan with 401(k) Provisions (the “KSOP”). Effective January 1, 2021, Ponce Bank amended and restated the terms of the Ponce Bank Employee Stock Ownership Plan (the “ESOP”) and merged the Ponce Bank 401(k) Plan into the ESOP to form the KSOP. There were no changes to the provisions of the ESOP as discussed below. The KSOP is for eligible employees of Ponce Bank and those of its affiliates. The named executive officers are eligible to participate in the KSOP just like other employees. An employee must attain the age of 21 and will be eligible to participate in the 401(k) features of the KSOP in the quarter following thirty days of service and the ESOP feature of the KSOP upon the first entry date commencing on or after the eligible employee’s completion of one year of service. Employees are eligible to participate in the 401(k) Plan at the beginning of each quarter (January 1, April 1, July 1, or October 1).

401(k) Component:

Under the 401(k) features of the KSOP (“401(k) Component”), a participant may elect to defer, on a pre-tax basis, the maximum amount as permitted by the Internal Revenue Code. For 2023, the salary deferral contribution limit was $22,500; provided, however, that a participant over age 50 may contribute an additional $7,500 to the 401(k) for a total of $30,000. In addition to salary deferral contributions, Ponce Bank may make discretionary matching contributions, discretionary profit sharing contributions or safe harbor contributions to the 401(k) Component. Discretionary matching contributions are allocated on the basis of salary deferral contributions. Discretionary profit sharing contributions are based on three classifications set forth in the 401(k) feature (i) Class A — Chairman, President, and Executive Vice Presidents; (ii) Class B — Senior Vice Presidents, Vice Presidents and Assistant Vice Presidents; and (iii) Class C — all other eligible employees. The contribution for a class will be the same percentage of compensation for all participants in that class. If Ponce Bank decides to make a safe harbor contribution for a plan year, each participant will receive a contribution equal to 3% of his or her compensation for the plan year.

A participant is always 100% vested in his or her salary deferral contributions and safe harbor contributions. Discretionary matching and profit sharing contributions are 20% vested after two years of service, plus an additional 20% for each additional year of service; so all participants are fully vested in such contributions after six years of service. Participants also will become fully vested in his or her account balance in the 401(k) Component automatically upon normal retirement, death or disability, a change in control, or termination of the KSOP. Generally, participants will receive distributions from the KSOP upon separation from service in accordance with the terms of the governing document.

ESOP Component:

On September 29, 2017, in connection with the Bank’s reorganization into the mutual holding company form of organization, the ESOP trustee purchased, on behalf of the ESOP, 723,751 shares of PDL Community Bancorp common stock. The ESOP funded its stock purchase with a loan (“First ESOP loan”) from PDL Community Bancorp in the amount of $7.2 million, which was equal to the aggregate purchase price of the common stock. The First ESOP loan is being repaid principally through Ponce Bank’s contributions to the ESOP over the 15-year term of such loan. The interest rate for the First ESOP loan is 2.60%.

On January 27, 2022, concurrent with the completion of the conversion and reorganization of Ponce Bank Mutual Holding Company from a mutual form to a stock form of organization and the merger of PDL Community Bancorp with and into Ponce Financial Group, Inc., the shares of PDL Community Bancorp common stock held by the KSOP were converted into 977,880 shares of Ponce Financial Group, Inc. common stock.

On January 27, 2022, the KSOP trustee purchased, on behalf of the ESOP feature of the KSOP (“ESOP Component”), an additional 1,097,353 shares of Ponce Financial Group, Inc. common stock, or 4.44% of the total number of shares of Ponce Financial Group, Inc. common stock outstanding on January 27, 2022 (including shares issued to the Foundation). The KSOP funded this stock purchase with a loan (“Second ESOP loan”) from Ponce Financial Group, Inc. in the amount of $11.0 million, which was equal to the aggregate purchase price of the common stock. The Second ESOP loan is being repaid principally through Ponce Bank’s contributions to the ESOP Component over the 15-year term of such loan. The interest rate for the Second ESOP loan is 1.82%.

The trustee of the trust funding the KSOP holds the shares of Ponce Financial Group, Inc. common stock purchased by the KSOP in an unallocated suspense account, and shares will be released from the suspense account on a pro-rata basis as the loans are repaid. The trustee will allocate the shares released among participants on the basis of each participant’s proportional share of qualifying compensation relative to all participants participating in the ESOP Component. A participant will become 100% vested in his or her account balance in the ESOP Component after three years of service. In addition, participants will become fully vested in his or her account balance in the ESOP Component automatically upon normal retirement, death or disability, a change in control, or termination of the KSOP. Generally, participants will receive distributions from the KSOP upon separation from service in accordance with the terms of the plan document. The KSOP reallocates any unvested shares of Ponce Financial Group, Inc. common stock forfeited upon termination of employment among the remaining participants in the ESOP Component.

Contributions to the ESOP are to be sufficient to pay principal and interest currently due under the loan agreement. Under applicable accounting requirements, Ponce Bank will record a compensation expense for the ESOP at the average market price of the shares as they are committed to be released from the unallocated suspense account to participants’ accounts, which may be more or less than the original issue price. The compensation expense resulting from the release of the common stock from the suspense account and allocation to plan participants will result in a corresponding reduction in the earnings of Ponce Financial Group, Inc. The ESOP shares become outstanding for earnings per share computations (see Note 11). As of March 31, 2023, the combined outstanding balance of both the First ESOP loan and Second ESOP loan was $13.9 million.

A summary of the ESOP shares as of March 31, 2023 and December 31, 2022 are as follows:


	March 31, 2023		December 31, 2022
	(Dollars in thousands)
Shares committed-to-be released		167,180		133,744
Shares allocated to participants		358,630		354,227
Unallocated shares		1,536,040		1,569,475
Total		2,061,850		2,057,446
Fair value of unallocated shares	$	12,058	$	14,628

The Company recognized ESOP related compensation expense, including ESOP equalization expense, of $0.3 million and $0.4 million for the three months ended March 31, 2023 and 2022, respectively.

Supplemental Executive Retirement Plan:

The Bank maintains a non-qualified supplemental executive retirement plan (“SERP”) for the benefit of two key executive officers. The SERP expense recognized for the three months ended March 31, 2023 and 2022 was $0.02 million each for one key executive officer.

2018 Incentive Plan

The Company’s stockholders approved the PDL Community Bancorp 2018 Long-Term Incentive Plan (the “2018 Incentive Plan”) at the Special Meeting of Stockholders on October 30, 2018. The maximum number of shares of common stock which can be issued under the 2018 Incentive Plan is 1,248,469. Of the 1,248,469 shares, the maximum number of shares that may be awarded under the 2018 Incentive Plan pursuant to the exercise of stock options or stock appreciation rights (“SARs”) is 891,764 shares (all of which may be granted as incentive stock options), and the number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 356,705 shares. However, the 2018 Incentive Plan contains a flex feature that provides that awards of restricted stock and restricted stock units in excess of the 356,705 share limitation may be granted but each share of stock covered by such excess award shall reduce the 891,764 share limitation for awards of stock options and SARs by 3.0 shares of common stock. The Company converted 462,522 awards of stock options into 154,174 restricted stock units in 2018, 45,000 awards of stock options into 15,000 restricted stock units in 2020 and 191,145 awards of stock options into 63,715 restricted stock units in 2022.

Under the 2018 Incentive Plan, the Company made grants equal to 674,645 shares on December 4, 2018 which include 119,176 incentive options to executive officers, 44,590 non-qualified options to outside directors, 322,254 restricted stock units to executive officers, 40,000 restricted stock units to non-executive officers and 148,625 restricted stock units to outside directors. During the year ended December 31, 2020, the Company awarded 40,000 incentive options and 15,000 restricted stock units to non-executive officers under the 2018 Incentive Plan. Awards to directors generally vest 20% annually beginning with the first anniversary of the date of grant. Awards to a director with fewer than five years of service at the time of grant vest over a longer period and will not become fully vested until the director has completed ten years of service. Awards to the executive officer who is not a director vest 20% annually beginning on December 4, 2020. On April 1, 2022, the Company awarded 23,718 incentive options to an executive officer, 30,659 incentive options to non-executive officers and 13,952 non-qualified options to an outside director. In addition, on April 1, 2022 the Company awarded 40,460 restricted stock units to executive officers and 23,255 restricted stock units to outside directors. As of December 31, 2022 and March 31, 2023, the maximum number of stock options and SARs remaining to be awarded under the Incentive Plan for both periods was 4,883, after the conversion from PDL Community Bancorp common stock to Ponce Financial Group, Inc. common stock. As of March 31, 2023 and December 31, 2022, the maximum number of shares of common stock that may be issued as restricted stock or restricted stock units remaining to be awarded under the Incentive Plan was none, for both periods.

The product of the number of units granted and the grant date market price of the Company’s common stock determine the fair value of restricted stock units under the Company’s 2018 Incentive Plan. The Company recognizes compensation expense for the fair value of restricted stock units on a straight-line basis over the requisite service period for the entire award.

A summary of the Company’s restricted stock unit awards activity and related information for three months ended March 31, 2023 and year ended December 31, 2022 are as follows:


	March 31, 2023
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Non-vested, beginning of year		245,840		$	9.40
Granted		—			—
Vested		(4,147	)		9.27
Forfeited		—			—
Non-vested at March 31		241,693		$	9.40

	December 31, 2022
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Non-vested, beginning of year		237,687		$	12.65
Conversion and reorganization		93,933			—
Granted		63,715			10.44
Vested		(149,495	)		9.11
Forfeited		—			—
Non-vested at December 31		245,840		$	9.40

Compensation expense related to restricted stock units was $0.4 million and $0.3 million for the three months ended March 31, 2023 and 2022. As of March 31, 2023, the total remaining unrecognized compensation cost related to restricted stock units was $1.8 million, which is expected to be recognized over the next 19 quarters.

A summary of the Company’s stock option awards activity and related information for three months ended March 31, 2023 and year ended December 31, 2022 are as follows:


	March 31, 2023
	Options		Weighted- Average Exercise Price Per Share
Outstanding, beginning of year		352,621	$	8.97
Granted		—		—
Exercised		—		—
Forfeited		—		—
Outstanding at March 31 (1)		352,621		8.97
Exercisable at March 31 (1)		191,752	$	8.83


	December 31, 2022
	Options		Weighted- Average Exercise Price Per Share
Outstanding, beginning of year		203,766	$	12.02
Conversion and reorganization		80,526	$	—
Granted		68,329		10.44
Exercised		—		—
Forfeited		—		—
Outstanding at December 31 (1)		352,621	$	8.97
Exercisable at December 31 (1)		190,508	$	8.83

(1)

The weighted-average exercise price for the options as of March 31, 2023 was $8.97 per share and the weighted average remaining contractual life is 6.4 years. The weighted average period over which compensation expenses are expected to be recognized is 3.3 years. There were 191,752 shares and 190,508 shares exercisable as of March 31, 2023 and December 31, 2022, respectively. Total compensation cost related to stock options recognized was $0.05 million both for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the total remaining unrecognized compensation cost related to unvested stock options was $0.4 million, which is expected to be recognized over the next 19 quarters.

Treasury Stock:

As of March 31, 2023 and December 31, 2022, 1,976 shares were held as treasury stock as a result of restricted stock units vested during 2022.

Commitments, Contingencies and Credit Risk (Tables)

3 Months Ended

Mar. 31, 2023

Commitments And Contingencies Disclosure [Abstract]

Financial Instruments Whose Contractual Amounts Represent Credit Risk

Financial instruments whose contractual amounts represent credit risk at March 31, 2023 and December 31, 2022 are as follows:


	March 31,		December 31,
	2023		2022
	(in thousands)
Commitments to grant mortgage loans	$	306,709	$	207,105
Commitments to sell loans at lock-in rates		4,888		1,676
Unfunded commitments under lines of credit		67,228		72,530
	$	378,825	$	281,311

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

Deposits - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Banking And Thrifts [Abstract]
2023	$ 160,146
2024	88,763
2025	45,094
2026	43,891
2027	48,544
Thereafter	179
Total certificates of deposit	$ 386,617	$ 376,618

Nature of Business and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Financial Statement Presentation

Basis of Presentation and Consolidation:

Nature of Operations

Nature of Operations:

Risks and Uncertainties

Risks and Uncertainties:

Use of Estimates

Interim Financial Statements

Significant Group Concentrations of Credit Risk

Cash and Cash Equivalents

Securities

Available-For-Sale Securities

Held-to Maturity Securities

Federal Home Loan Bank of New York Stock

Loans Receivable

Allowance for Credit Losses

Allowances for Credit Losses on Unfunded Commitments

Mortgage Loans Held for Sale, at Fair Value

Derivative Financial Instrument

Revenue from Contracts with Customers

Transfers of Financial Assets

Premises and Equipment

Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation.

Depreciation is computed and charged to operations using the straight-line method over the estimated useful lives of the respective assets as follows:


		Years
Buildings		39
Building improvements		15 - 39
Furniture, fixtures, and equipment		3 - 10

Impairment of Long-Lived Assets

Leases

Other Real Estate Owned

Income Taxes

Interest and penalties associated with unrecognized tax benefits, if any, would be classified as additional provision for income taxes in the consolidated statements of operations.

Related Party Transactions

Employee Benefit Plans

KSOP, the Employee Stock Ownership Plan with 401(k) Provisions

Stock Options

stock options is estimated using the Black-Scholes option-pricing model. The Company accounts for forfeitures as they occur during the period.

Restricted Stock Units

Comprehensive Income (Loss)

Loss Contingencies

Fair Value of Financial Instruments

Segment Reporting

Loan Commitments and Related Financial Instruments

Earnings (Loss) per Share ("EPS")

Treasury Stock

Reclassification of Prior Periods Presentation

Recently Accounting Pronouncements Adopted and Not Yet Adopted

Recently Adopted Accounting Standards Updates ("ASU"):

Recent Accounting Pronouncements Not Yet Adopted:

Preferred Stock Issuance; Plan of Conversion and Stock Offering - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended
	Jun. 07, 2022	Jan. 28, 2022	Jan. 27, 2022	Mar. 31, 2022	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Conversion Of Stock [Line Items]
Cash and cash equivalents					$ 184,687	$ 54,360
Contribution to the Ponce De Leon Foundation (Note 2)			$ 5,000	$ 4,995
Common Stock
Conversion Of Stock [Line Items]
Sale of stock, price per share		$ 10.00
Total outstanding shares		24,711,834		24,724,274	24,863,500	24,859,353	17,425,987
Total issued shares		24,711,834
Common Stock \| PDL Community Bancorp
Conversion Of Stock [Line Items]
Conversion of stock		1.3952	977,880
Private Placement
Conversion Of Stock [Line Items]
Shares issued in transaction	225,000
Sale of stock, price per share	$ 0.01
Purchase price equal to cash	$ 225,000
ECIP investment by Treasury	$ 8,700,000
Initial dividend rate	0.00%
Floor dividend rate	0.50%
Ceiling dividend rate	2.00%
Preferred stock, liquidation preference per share					$ 1,000

Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	$ 3,000
Available-for-sale securities measure at fair value on recurring basis	100	$ 20
Fair Value Measurement Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	131,426	131,506
Available-for-sale securities measure at fair value on recurring basis	2,987	1,979
Available-for-sale securities measure at fair value on recurring basis	119	22
Fair Value Measurement Recurring \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	3,395	3,419
Fair Value Measurement Recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	127,912	128,065
Available-for-sale securities measure at fair value on recurring basis	2,987	1,979
Fair Value Measurement Recurring \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	119	22
Available-for-sale securities measure at fair value on recurring basis	119	22
U.S. Government Bonds \| Fair Value Measurement Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	2,746	2,689
U.S. Government Bonds \| Fair Value Measurement Recurring \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	2,746	2,689
Corporate Bonds \| Fair Value Measurement Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	23,177	23,359
Corporate Bonds \| Fair Value Measurement Recurring \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	649	730
Corporate Bonds \| Fair Value Measurement Recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	22,528	22,629
Collateralized Mortgage Obligations \| Fair Value Measurement Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	37,391	37,777
Collateralized Mortgage Obligations \| Fair Value Measurement Recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	37,391	37,777
FHLMC Certificates \| Fair Value Measurement Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	9,546	9,634
FHLMC Certificates \| Fair Value Measurement Recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	9,546	9,634
FNMA Certificates \| Fair Value Measurement Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	55,345	55,928
FNMA Certificates \| Fair Value Measurement Recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	55,345	55,928
GNMA Certificates \| Fair Value Measurement Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	115	118
GNMA Certificates \| Fair Value Measurement Recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities measure at fair value on recurring basis	$ 115	$ 118