8-K
0001874071false00018740712023-10-302023-10-30

 

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

 

FORM 8-K

 

CURRENT REPORT

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

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

 

 

Ponce Financial Group, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland

001-41255

87-1893965

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

2244 Westchester Avenue

 

Bronx, New York

 

10462

(Address of Principal Executive Offices)

 

(Zip Code)

 

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

 

 

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

 

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

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

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


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock, par value $0.01 per share

 

PDLB

 

The Nasdaq Global Market

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

Emerging growth company

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

 

Item 2.02 Results of Operations and Financial Condition.

On October 30, 2023, Ponce Financial Group, Inc., the holding company for Ponce Bank (the "Bank"), issued a press release announcing its financial results with respect to its third quarter ended September 30, 2023. The Company’s press release is included as Exhibit 99.1 to this report.

 


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

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.

Exhibit Number

Description

99.1

Press release dated October 30, 2023

104

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

 

SIGNATURE

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

 

 

 

Ponce Financial Group, Inc.

 

 

 

 

Date:

October 30, 2023

By:

/s/ Carlos P. Naudon

 

 

 

Carlos P. Naudon
President and Chief Executive Officer

 


EX-99.1

 

Exhibit 99.1

Ponce Financial Group, Inc. Reports Third Quarter 2023 Results

 

NEW YORK, October 30, 2023 - Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the third quarter of 2023.

Third Quarter 2023 Highlights (Compared to Prior Periods):

Net income of $2.6 million, or $0.12 per diluted share for the three months ended September 30, 2023, as compared to net loss of ($0.1) million, or $0.00 per diluted share for the three months ended June 30, 2023 and net loss of ($14.7) million, or ($0.64) per diluted share for the three months ended September 30, 2022.
Included in the $2.6 million of net income for the third quarter of 2023 results is $33.5 million in interest and dividend income and $5.6 million in non-interest income, offset by a $17.3 million in non-interest expense and $17.0 million in interest expense.
Net interest income of $16.5 million for the third quarter of 2023 increased $0.3 million, or 1.60%, from the prior quarter and decreased $1.1 million, or 6.07%, from the same quarter last year.
Net interest margin was 2.58% for the third quarter of 2023, decreased from 2.65% for the prior quarter and from 3.59% for the same quarter last year.
Cash and equivalents were $117.0 million as of September 30, 2023, an increase of $62.7 million, or 115.25%, from December 31, 2022, as we decided to keep ample sources of liquidity at hand while taking advantage of the positive spread between our interest bearing overnight deposits at the Fed and borrowing costs under the Bank Term Funding Program ("BTFP").
Securities totaled $587.8 million as of September 30, 2023, a decrease of $52.5 million, or 8.20%, from December 31, 2022 primarily due to a call on one of the securities amounting to $10.0 million, maturities on two securities amounting to $3.0 million and regular principal payments.
Net loans receivable were $1.79 billion as of September 30, 2023, an increase of $294.5 million, or 19.72%, from December 31, 2022.
Deposits were $1.40 billion as of September 30, 2023, an increase of $148.7 million, or 11.87%, from December 31, 2022.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group’s President and CEO, stated “During the quarter, we completed our share buyback program at a cost of $8.91 per share, almost a 20% discount to our book value at September 30, 2023. Despite the headwinds caused by the increase in interest rates, which impacts our AOCI and drives down our net interest margin, we were able to increase book value per share by 5 cents quarter over quarter as well as grow our net interest income for the second quarter in a row. As previously announced, in addition to the $3.7 million grant received this quarter, we have been informed that we will receive an additional grant of approximately $0.5 million from the Community Development Financial Institutions ("CDFI") fund in the fourth quarter of 2023.

We continue to show strong levels of capital and liquidity. On the capital front, our total capital ratio at Ponce Bank stands at 25.10% well in excess of regulatory requirements. In terms of liquidity, our liquid assets plus borrowing capacity at the Federal Home Loan Bank of New York ("FHLBNY") stand at $695.0 million, more than two times of our uninsured deposits of $334.0 million.

We remain committed to the communities we serve, our Minority Depository Institution (“MDI”)/CDFI status and continuing to invest in our people and in technology to improve our efficiency".

Executive Chairman’s Comment

 

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “While the increase in rates continues to put pressure on our operations, we still see resiliency on our client base, strong credit conditions and loan demand. While our credit metrics continue to improve, we will be prudent on our underwriting and balance sheet management even at the expense of loan growth.”

 

1


 

Selected performance metrics are as follows (refer to “Key Metrics” for additional information):

 

 

 

At or for the Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

Performance Ratios (Annualized):

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Return on average assets (1)

 

 

0.39

%

 

 

(0.01

%)

 

 

0.06

%

 

 

(1.62

%)

 

 

(2.80

%)

Return on average equity (1)

 

 

2.11

%

 

 

(0.07

%)

 

 

0.27

%

 

 

(7.28

%)

 

 

(11.25

%)

Net interest rate spread (1) (2)

 

 

1.58

%

 

 

1.66

%

 

 

1.78

%

 

 

2.13

%

 

 

3.08

%

Net interest margin (1) (3)

 

 

2.58

%

 

 

2.65

%

 

 

2.75

%

 

 

2.97

%

 

 

3.59

%

Non-interest expense to average assets (1)

 

 

2.58

%

 

 

2.65

%

 

 

2.79

%

 

 

2.78

%

 

 

4.83

%

Efficiency ratio (4)

 

 

78.11

%

 

 

96.15

%

 

 

95.88

%

 

 

94.95

%

 

 

132.46

%

Average interest-earning assets to average interest- bearing liabilities

 

 

137.92

%

 

 

141.14

%

 

 

148.20

%

 

 

152.30

%

 

 

162.67

%

Average equity to average assets

 

 

18.32

%

 

 

19.21

%

 

 

20.91

%

 

 

22.32

%

 

 

24.90

%

 

 

 

At or for the Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

Capital Ratios (Annualized):

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Total capital to risk weighted assets (Bank only)

 

 

25.10

%

 

 

26.30

%

 

 

27.54

%

 

 

30.53

%

 

 

33.39

%

Tier 1 capital to risk weighted assets (Bank only)

 

 

23.85

%

 

 

25.05

%

 

 

26.28

%

 

 

29.26

%

 

 

32.13

%

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

 

 

23.85

%

 

 

25.05

%

 

 

26.28

%

 

 

29.26

%

 

 

32.13

%

Tier 1 capital to average assets (Bank only)

 

 

17.51

%

 

 

17.95

%

 

 

19.51

%

 

 

20.47

%

 

 

22.91

%

 

 

 

 

At or for the Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

Asset Quality Ratios (Annualized):

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Allowance for loan losses as a percentage of total loans

 

 

1.51

%

 

 

1.64

%

 

 

1.77

%

 

 

2.27

%

 

 

1.77

%

Allowance for loan losses as a percentage of nonperforming loans

 

 

169.49

%

 

 

167.06

%

 

 

149.73

%

 

 

252.33

%

 

 

118.43

%

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

 

 

(0.34

%)

 

 

(0.41

%)

 

 

(0.57

%)

 

 

(0.85

%)

 

 

(0.52

%)

Non-performing loans as a percentage of total gross loans

 

 

0.89

%

 

 

0.98

%

 

 

1.18

%

 

 

0.90

%

 

 

1.50

%

Non-performing loans as a percentage of total assets

 

 

0.62

%

 

 

0.63

%

 

 

0.76

%

 

 

0.59

%

 

 

0.97

%

Total non-performing assets as a percentage of total assets

 

 

0.62

%

 

 

0.63

%

 

 

0.76

%

 

 

0.59

%

 

 

0.97

%

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)

 

 

0.82

%

 

 

0.83

%

 

 

0.93

%

 

 

0.78

%

 

 

1.16

%

 

(1)
Annualized where appropriate.
(2)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(3)
Net interest margin represents net interest income divided by average total interest-earning assets.
(4)
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
(5)
For periods in 2023, balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings. For periods in 2022, the balances only include troubled debt restructurings.

 

Summary of Results of Operations

 

Net income for the three months ended September 30, 2023 was $2.6 million compared to net loss of ($0.1) million for the three months ended June 30, 2023 and net loss of ($14.7) million for the three months ended September 30, 2022. The increase of net income for the three months ended September 30, 2023 compared to the three months ended June 30, 2023 was attributed mainly to increases in non-interest income and net interest income and a decrease in provision for credit loss, partially offset by increases provision for income taxes and non-interest expense. The increase of net income for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 was largely due to decreases in provision for credit loss and non-interest expense and an increase in non-interest income, partially offset by an increase in provision for income taxes and a decrease in net interest income.

 

Net income for the nine months ended September 30, 2023 was $2.8 million compared to a net loss of ($20.8) million for the nine months ended September 30, 2022. The increase in net income was attributable to decreases in non-interest expense and provision for credit losses and an increase in non-interest income, partially offset by an increase in provision for income taxes and a decrease in net interest income.

 

2


 

Net Interest Income and Net Margin

 

Net interest income for the three months ended September 30, 2023, increased $0.3 million, or 1.60%, to $16.5 million compared to $16.3 million for the three months ended June 30, 2023 and decreased $1.1 million, or 6.07%, compared to $17.6 million for the three months end September 30, 2022.

Net interest margin was 2.58% for the three months ended September 30, 2023 compared to 2.65% for the prior quarter, a decrease of 7bps and 3.59% for the same period last year, a decrease of 101bps. The decrease in net interest margin was a result of an increase in the cost of funds driven by higher interest rates.

Non-interest Income

 

Non-interest income for the three months ended September 30, 2023, was $5.6 million, an increase of $4.1 million, or 277.14%, compared to the three months ended June 30, 2023 and an increase of $4.1 million, or 256.82%, compared to the three months ended September 30, 2022.

The $4.1 million increase in non-interest income for the three months ended September 30, 2023 compared to the three months ended June 30, 2023 and the three months ended September 30, 2022 was largely attributable to a grant of $3.7 million received in the third quarter of 2023 from the U.S. Treasury as part of the CDFI Equitable Recovery Program and a $0.5 million assignment fee that was recognized in the third quarter of 2023.

Non-interest income for the nine months ended September 30, 2023, was $8.9 million, an increase of $3.0 million, or 49.41%, compared to $6.0 million for the nine months ended September 30, 2022. The $3.0 million increase from the nine months ended September 30, 2022 was attributable to a grant of $3.7 million received from the U.S. Treasury and an increase of $1.6 million in late and prepayment charges, partially offset by a decrease of $1.8 million in loan origination.

 

Non-interest Expense

 

Non-interest expense for the three months ended September 30, 2023, was $17.3 million, an increase of $0.2 million, or 1.33%, compared to $17.1 million for the three months ended June 30, 2023 and a decrease of $8.1 million, or 31.87%, compared to $25.4 million for the three months ended September 30, 2022.

 

The $8.1 million decrease from the three months ended September 30, 2022 was mainly attributable to $8.9 million of Grain consumer microloans write-offs during the third quarter of 2022 and a decrease of $0.3 million in direct loan expense, partially offset by increases of $0.6 million in data processing expenses and $0.4 million in professional fees.

 

Non-interest expense for the nine months ended September 30, 2023, was $50.8 million, a decrease of $19.3 million, or 27.54%, compared to the nine months ended September 30, 2022. The $19.3 million decrease of non-interest expense from the nine months ended September 30, 2022 was attributable to $18.5 million of Grain consumer microloan write-off during the corresponding period last year compared with $1.3 million of Grain consumer microloan recoveries recognized during the current period. The decrease in non-interest expense was also impacted by a $5.0 million contribution to the Ponce De Leon Foundation during the corresponding period last year, partially offset by increases of $1.3 million in provision for contingencies, $1.3 million in data processing expenses, $1.0 million in compensation and benefits and $0.7 million in professional fees.

 

Balance Sheet Summary

 

Total assets increased $311.9 million, or 13.49%, to $2.62 billion as of September 30, 2023 from $2.31 billion as of December 31, 2022. The increase in total assets is largely attributable to increases of $294.5 million in net loans receivable, $62.7 million in cash and cash equivalents, $12.1 million in mortgage loans held for sale and $2.5 million in other assets, offset by decreases of $39.8 million in held-to-maturity securities, $12.8 million in available-for-sale securities, and $5.8 million in Federal Home Loan Bank of New York stock.

 

Total liabilities increased $319.5 million, or 17.56%, to $2.14 billion as of September 30, 2023 from $1.82 billion as of December 31, 2022. The increase in total liabilities was largely attributable to increases of $157.7 million in borrowings and $148.7 million in deposits.

Total stockholders’ equity decreased $7.6 million, or 1.55%, to $485.1 million as of September 30, 2023, from $492.7 million as of December 31, 2022. This decrease in stockholders’ equity was largely attributable to $11.0 million in share repurchases and an increase

3


 

of $2.6 million in other comprehensive loss, partially offset by increases of $2.8 million in net income, $1.2 million in share-based compensation, $1.1 million as a result of implementation of CECL and $0.8 million in ESOP.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’s loans; anticipated losses with respect to the Company's investment in Grain; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank’s market area; Ponce Bank’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

4


 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

26,046

 

 

$

31,162

 

 

$

26,951

 

 

$

31,977

 

 

$

34,007

 

Interest-bearing deposits

 

90,966

 

 

 

212,627

 

 

 

157,736

 

 

 

22,383

 

 

 

28,514

 

Total cash and cash equivalents

 

117,012

 

 

 

243,789

 

 

 

184,687

 

 

 

54,360

 

 

 

62,521

 

Available-for-sale securities, at fair value

 

116,753

 

 

 

123,720

 

 

 

128,320

 

 

 

129,505

 

 

 

131,977

 

Held-to-maturity securities, at amortized cost (1)

 

471,065

 

 

 

481,952

 

 

 

491,649

 

 

 

510,820

 

 

 

494,297

 

Placement with banks

 

996

 

 

 

996

 

 

 

1,245

 

 

 

1,494

 

 

 

2,490

 

Mortgage loans held for sale, at fair value

 

14,103

 

 

 

10,070

 

 

 

2,987

 

 

 

1,979

 

 

 

3,357

 

Loans receivable, net

 

1,787,607

 

 

 

1,695,047

 

 

 

1,614,428

 

 

 

1,493,127

 

 

 

1,392,553

 

Accrued interest receivable

 

16,624

 

 

 

16,054

 

 

 

15,435

 

 

 

15,049

 

 

 

14,063

 

Premises and equipment, net

 

16,453

 

 

 

16,856

 

 

 

17,215

 

 

 

17,446

 

 

 

17,759

 

Right of use assets

 

32,110

 

 

 

32,435

 

 

 

33,147

 

 

 

33,423

 

 

 

34,121

 

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

 

18,870

 

 

 

19,195

 

 

 

19,209

 

 

 

24,661

 

 

 

14,272

 

Deferred tax assets

 

15,984

 

 

 

15,924

 

 

 

15,413

 

 

 

16,137

 

 

 

13,822

 

Other assets

 

16,286

 

 

 

15,919

 

 

 

15,799

 

 

 

13,988

 

 

 

11,170

 

Total assets

$

2,623,863

 

 

$

2,671,957

 

 

$

2,539,534

 

 

$

2,311,989

 

 

$

2,192,402

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

1,401,132

 

 

$

1,442,013

 

 

$

1,336,877

 

 

$

1,252,412

 

 

$

1,351,189

 

Operating lease liabilities

 

33,459

 

 

 

33,716

 

 

 

34,308

 

 

 

34,532

 

 

 

35,081

 

Accrued interest payable

 

8,385

 

 

 

4,704

 

 

 

1,767

 

 

 

1,390

 

 

 

854

 

Advance payments by borrowers for taxes and insurance

 

13,743

 

 

 

12,402

 

 

 

14,902

 

 

 

9,724

 

 

 

10,589

 

Borrowings

 

675,100

 

 

 

682,100

 

 

 

648,375

 

 

 

517,375

 

 

 

286,375

 

Other liabilities

 

6,986

 

 

 

6,540

 

 

 

7,264

 

 

 

3,856

 

 

 

7,631

 

Total liabilities

 

2,138,805

 

 

 

2,181,475

 

 

 

2,043,493

 

 

 

1,819,289

 

 

 

1,691,719

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

225,000

 

 

 

225,000

 

 

 

225,000

 

 

 

225,000

 

 

 

225,000

 

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

 

249

 

 

 

249

 

 

 

249

 

 

 

249

 

 

 

247

 

Treasury stock, at cost

 

(10,975

)

 

 

(5,202

)

 

 

(2

)

 

 

(2

)

 

 

 

Additional paid-in-capital

 

207,626

 

 

 

207,287

 

 

 

206,883

 

 

 

206,508

 

 

 

206,092

 

Retained earnings

 

96,902

 

 

 

94,312

 

 

 

94,399

 

 

 

92,955

 

 

 

102,169

 

Accumulated other comprehensive loss

 

(20,468

)

 

 

(17,597

)

 

 

(16,629

)

 

 

(17,860

)

 

 

(18,420

)

Unearned compensation ─ ESOP

 

(13,276

)

 

 

(13,567

)

 

 

(13,859

)

 

 

(14,150

)

 

 

(14,405

)

Total stockholders' equity

 

485,058

 

 

 

490,482

 

 

 

496,041

 

 

 

492,700

 

 

 

500,683

 

Total liabilities and stockholders' equity

$

2,623,863

 

 

$

2,671,957

 

 

$

2,539,534

 

 

$

2,311,989

 

 

$

2,192,402

 

 

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

 

 

5


 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

 

 

Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

$

25,276

 

 

$

23,015

 

 

$

19,700

 

 

$

18,550

 

 

$

17,058

 

Interest on deposits due from banks

 

1,969

 

 

 

1,817

 

 

 

197

 

 

 

199

 

 

 

346

 

Interest and dividend on securities and FHLBNY stock

 

6,261

 

 

 

6,223

 

 

 

6,459

 

 

 

6,184

 

 

 

4,230

 

Total interest and dividend income

 

33,506

 

 

 

31,055

 

 

 

26,356

 

 

 

24,933

 

 

 

21,634

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

4,362

 

 

 

3,881

 

 

 

3,225

 

 

 

1,786

 

 

 

855

 

Interest on other deposits

 

5,639

 

 

 

4,413

 

 

 

2,812

 

 

 

3,649

 

 

 

1,375

 

Interest on borrowings

 

6,963

 

 

 

6,479

 

 

 

5,074

 

 

 

3,332

 

 

 

1,793

 

Total interest expense

 

16,964

 

 

 

14,773

 

 

 

11,111

 

 

 

8,767

 

 

 

4,023

 

Net interest income

 

16,542

 

 

 

16,282

 

 

 

15,245

 

 

 

16,166

 

 

 

17,611

 

Provision (benefit) for credit losses

 

535

 

 

 

987

 

 

 

(174

)

 

 

12,641

 

 

 

9,330

 

Net interest income after provision (benefit) for credit losses

 

16,007

 

 

 

15,295

 

 

 

15,419

 

 

 

3,525

 

 

 

8,281

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

516

 

 

 

481

 

 

 

491

 

 

 

481

 

 

 

464

 

Brokerage commissions

 

17

 

 

 

35

 

 

 

15

 

 

 

180

 

 

 

288

 

Late and prepayment charges

 

899

 

 

 

372

 

 

 

729

 

 

 

263

 

 

 

109

 

Income on sale of mortgage loans

 

173

 

 

 

82

 

 

 

99

 

 

 

7

 

 

 

116

 

Loan origination (1)

 

 

 

 

 

 

 

 

 

 

(557

)

 

 

522

 

Grant income

 

3,718

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) gain on sale of premises and equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

(436

)

Other

 

304

 

 

 

522

 

 

 

485

 

 

 

63

 

 

 

514

 

Total non-interest income

 

5,627

 

 

 

1,492

 

 

 

1,819

 

 

 

437

 

 

 

1,577

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

7,566

 

 

 

7,425

 

 

 

7,446

 

 

 

6,501

 

 

 

7,377

 

Occupancy and equipment

 

3,588

 

 

 

3,724

 

 

 

3,570

 

 

 

3,928

 

 

 

3,611

 

Data processing expenses

 

1,582

 

 

 

1,208

 

 

 

1,192

 

 

 

1,114

 

 

 

994

 

Direct loan expenses

 

369

 

 

 

345

 

 

 

412

 

 

 

454

 

 

 

654

 

Provision for contingencies

 

391

 

 

 

517

 

 

 

985

 

 

 

(440

)

 

 

519

 

Insurance and surety bond premiums

 

255

 

 

 

248

 

 

 

265

 

 

 

270

 

 

 

297

 

Office supplies, telephone and postage

 

301

 

 

 

489

 

 

 

399

 

 

 

375

 

 

 

369

 

Professional fees

 

1,693

 

 

 

1,904

 

 

 

1,455

 

 

 

1,571

 

 

 

1,251

 

Grain (recoveries) and write-off

 

(69

)

 

 

(346

)

 

 

(914

)

 

 

(515

)

 

 

8,881

 

Marketing and promotional expenses

 

248

 

 

 

303

 

 

 

128

 

 

 

256

 

 

 

214

 

Directors fees and regulatory assessment

 

169

 

 

 

160

 

 

 

155

 

 

 

196

 

 

 

188

 

Other operating expenses

 

1,223

 

 

 

1,112

 

 

 

1,268

 

 

 

2,055

 

 

 

1,061

 

Total non-interest expense

 

17,316

 

 

 

17,089

 

 

 

16,361

 

 

 

15,765

 

 

 

25,416

 

Income (loss) before income taxes

 

4,318

 

 

 

(302

)

 

 

877

 

 

 

(11,803

)

 

 

(15,558

)

Provision (benefit) for income taxes

 

1,728

 

 

 

(215

)

 

 

546

 

 

 

(2,589

)

 

 

(820

)

Net income (loss)

$

2,590

 

 

$

(87

)

 

$

331

 

 

$

(9,214

)

 

$

(14,738

)

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.12

 

 

$

(0.00

)

 

$

0.01

 

 

$

(0.40

)

 

$

(0.64

)

Diluted

$

0.12

 

 

$

(0.00

)

 

$

0.01

 

 

$

(0.40

)

 

$

(0.64

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

22,272,076

 

 

 

23,208,168

 

 

 

23,293,013

 

 

 

23,168,097

 

 

 

23,094,859

 

Diluted

 

22,349,217

 

 

 

23,208,168

 

 

 

23,324,532

 

 

 

23,168,097

 

 

 

23,094,859

 

 

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

 

6


 

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

 

 

 

For the Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

Variance $

 

 

Variance %

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on loans receivable

 

$

67,991

 

 

$

51,315

 

 

$

16,676

 

 

 

32.50

%

Interest on deposits due from banks

 

 

3,983

 

 

 

514

 

 

 

3,469

 

 

 

674.90

%

Interest and dividend on securities and FHLBNY stock

 

 

18,943

 

 

 

5,990

 

 

 

12,953

 

 

 

216.24

%

Total interest and dividend income

 

 

90,917

 

 

 

57,819

 

 

 

33,098

 

 

 

57.24

%

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on certificates of deposit

 

 

11,468

 

 

 

2,361

 

 

 

9,107

 

 

 

385.73

%

Interest on other deposits

 

 

12,864

 

 

 

2,154

 

 

 

10,710

 

 

 

497.21

%

Interest on borrowings

 

 

18,516

 

 

 

2,867

 

 

 

15,649

 

 

 

545.83

%

Total interest expense

 

 

42,848

 

 

 

7,382

 

 

 

35,466

 

 

 

480.44

%

Net interest income

 

 

48,069

 

 

 

50,437

 

 

 

(2,368

)

 

 

(4.69

%)

Provision for credit losses

 

 

1,348

 

 

 

11,405

 

 

 

(10,057

)

 

 

(88.18

%)

Net interest income after provision for credit losses

 

 

46,721

 

 

 

39,032

 

 

 

7,689

 

 

 

19.70

%

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

1,488

 

 

 

1,349

 

 

 

139

 

 

 

10.30

%

Brokerage commissions

 

 

67

 

 

 

840

 

 

 

(773

)

 

 

(92.02

%)

Late and prepayment charges

 

 

2,000

 

 

 

360

 

 

 

1,640

 

 

 

455.56

%

Income on sale of mortgage loans

 

 

354

 

 

 

734

 

 

 

(380

)

 

 

(51.77

%)

Loan origination

 

 

 

 

 

1,843

 

 

 

(1,843

)

 

 

(100.00

%)

Grant income

 

 

3,718

 

 

 

 

 

 

3,718

 

 

 

%

(Loss) gain on sale of premises and equipment

 

 

 

 

 

(436

)

 

 

436

 

 

 

(100.00

%)

Other

 

 

1,311

 

 

 

1,292

 

 

 

19

 

 

 

1.47

%

Total non-interest income

 

 

8,938

 

 

 

5,982

 

 

 

2,956

 

 

 

49.41

%

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

22,437

 

 

 

21,413

 

 

 

1,024

 

 

 

4.78

%

Occupancy and equipment

 

 

10,882

 

 

 

10,040

 

 

 

842

 

 

 

8.39

%

Data processing expenses

 

 

3,982

 

 

 

2,665

 

 

 

1,317

 

 

 

49.42

%

Direct loan expenses

 

 

1,126

 

 

 

2,033

 

 

 

(907

)

 

 

(44.61

%)

Provision for contingencies

 

 

1,893

 

 

 

566

 

 

 

1,327

 

 

 

234.45

%

Insurance and surety bond premiums

 

 

768

 

 

 

600

 

 

 

168

 

 

 

28.00

%

Office supplies, telephone and postage

 

 

1,189

 

 

 

1,180

 

 

 

9

 

 

 

0.76

%

Professional fees

 

 

5,052

 

 

 

4,333

 

 

 

719

 

 

 

16.59

%

Contribution to the Ponce De Leon Foundation

 

 

 

 

 

4,995

 

 

 

(4,995

)

 

 

(100.00

%)

Grain (recoveries) and write-off

 

 

(1,329

)

 

 

18,455

 

 

 

(19,784

)

 

 

(107.20

%)

Marketing and promotional expenses

 

 

679

 

 

 

337

 

 

 

342

 

 

 

101.48

%

Directors fees and regulatory assessment

 

 

484

 

 

 

509

 

 

 

(25

)

 

 

(4.91

%)

Other operating expenses

 

 

3,603

 

 

 

2,931

 

 

 

672

 

 

 

22.93

%

Total non-interest expense

 

 

50,766

 

 

 

70,057

 

 

 

(19,291

)

 

 

(27.54

%)

Income (loss) before income taxes

 

 

4,893

 

 

 

(25,043

)

 

 

29,936

 

 

 

(119.54

%)

Provision (benefit) for income taxes

 

 

2,059

 

 

 

(4,256

)

 

 

6,315

 

 

 

(148.38

%)

Net income (loss)

 

$

2,834

 

 

$

(20,787

)

 

$

23,621

 

 

 

(113.63

%)

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

 

$

(0.92

)

 

$

1.05

 

 

 

(113.40

%)

Diluted

 

$

0.12

 

 

$

(0.92

)

 

$

1.05

 

 

 

(113.37

%)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,920,680

 

 

 

22,524,477

 

 

 

396,203

 

 

 

1.76

%

Diluted

 

 

22,962,956

 

 

 

22,524,477

 

 

 

438,479

 

 

 

1.95

%

 

 

7


 

Ponce Financial Group, Inc. and Subsidiaries

Key Metrics

 

At or for the Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

0.39

%

 

 

(0.01

%)

 

 

0.06

%

 

 

(1.62

%)

 

 

(2.80

%)

Return on average equity (1)

 

2.11

%

 

 

(0.07

%)

 

 

0.27

%

 

 

(7.28

%)

 

 

(11.25

%)

Net interest rate spread (1) (2)

 

1.58

%

 

 

1.66

%

 

 

1.78

%

 

 

2.13

%

 

 

3.08

%

Net interest margin (1) (3)

 

2.58

%

 

 

2.65

%

 

 

2.75

%

 

 

2.97

%

 

 

3.59

%

Non-interest expense to average assets (1)

 

2.58

%

 

 

2.65

%

 

 

2.79

%

 

 

2.78

%

 

 

4.83

%

Efficiency ratio (4)

 

78.11

%

 

 

96.15

%

 

 

95.88

%

 

 

94.95

%

 

 

132.46

%

Average interest-earning assets to average interest- bearing liabilities

 

137.92

%

 

 

141.14

%

 

 

148.20

%

 

 

152.30

%

 

 

162.67

%

Average equity to average assets

 

18.32

%

 

 

19.21

%

 

 

20.91

%

 

 

22.32

%

 

 

24.90

%

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital to risk weighted assets (Bank only)

 

25.10

%

 

 

26.30

%

 

 

27.54

%

 

 

30.53

%

 

 

33.39

%

Tier 1 capital to risk weighted assets (Bank only)

 

23.85

%

 

 

25.05

%

 

 

26.28

%

 

 

29.26

%

 

 

32.13

%

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

 

23.85

%

 

 

25.05

%

 

 

26.28

%

 

 

29.26

%

 

 

32.13

%

Tier 1 capital to average assets (Bank only)

 

17.51

%

 

 

17.95

%

 

 

19.51

%

 

 

20.47

%

 

 

22.91

%

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans as a percentage of total loans

 

1.51

%

 

 

1.64

%

 

 

1.77

%

 

 

2.27

%

 

 

1.77

%

Allowance for credit losses on loans as a percentage of nonperforming loans

 

169.49

%

 

 

167.06

%

 

 

149.73

%

 

 

252.33

%

 

 

118.43

%

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

 

(0.34

%)

 

 

(0.41

%)

 

 

(0.57

%)

 

 

(0.85

%)

 

 

(0.52

%)

Non-performing loans as a percentage of total gross loans

 

0.89

%

 

 

0.98

%

 

 

1.18

%

 

 

0.90

%

 

 

1.50

%

Non-performing loans as a percentage of total assets

 

0.62

%

 

 

0.63

%

 

 

0.76

%

 

 

0.59

%

 

 

0.97

%

Total non-performing assets as a percentage of total assets

 

0.62

%

 

 

0.63

%

 

 

0.76

%

 

 

0.59

%

 

 

0.97

%

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)

 

0.82

%

 

 

0.83

%

 

 

0.93

%

 

 

0.78

%

 

 

1.16

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of offices

 

19

 

 

 

19

 

 

 

19

 

 

 

19

 

 

 

19

 

Number of full-time equivalent employees

 

243

 

 

 

244

 

 

 

251

 

 

 

253

 

 

 

257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Annualized where appropriate.
(2)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(3)
Net interest margin represents net interest income divided by average total interest-earning assets.
(4)
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
(5)
For periods in 2023, balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings. For periods in 2022, the balances only include troubled debt restructurings.

 

 

 

8


 

Ponce Financial Group, Inc. and Subsidiaries

Securities Portfolio

 

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

 

 

(in thousands)

 

 

(in thousands)

 

Available-for-Sale Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds

 

$

2,989

 

 

$

 

 

$

(276

)

 

$

2,713

 

 

$

2,985

 

 

$

 

 

$

(296

)

 

$

2,689

 

Corporate Bonds

 

 

25,799

 

 

 

 

 

 

(2,609

)

 

 

23,190

 

 

 

25,824

 

 

 

 

 

 

(2,465

)

 

 

23,359

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations (1)

 

 

40,646

 

 

 

 

 

 

(7,657

)

 

 

32,989

 

 

 

44,503

 

 

 

 

 

 

(6,726

)

 

 

37,777

 

FHLMC Certificates

 

 

10,441

 

 

 

 

 

 

(1,904

)

 

 

8,537

 

 

 

11,310

 

 

 

 

 

 

(1,676

)

 

 

9,634

 

FNMA Certificates

 

 

62,771

 

 

 

 

 

 

(13,552

)

 

 

49,219

 

 

 

67,199

 

 

 

 

 

 

(11,271

)

 

 

55,928

 

GNMA Certificates

 

 

108

 

 

 

 

 

 

(3

)

 

 

105

 

 

 

122

 

 

 

 

 

 

(4

)

 

 

118

 

Total available-for-sale securities

 

$

142,754

 

 

$

 

 

$

(26,001

)

 

$

116,753

 

 

$

151,943

 

 

$

 

 

$

(22,438

)

 

$

129,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agency Bonds

 

$

25,000

 

 

$

 

 

$

(504

)

 

$

24,496

 

 

$

35,000

 

 

$

 

 

$

(380

)

 

$

34,620

 

Corporate Bonds

 

 

82,500

 

 

 

 

 

 

(5,117

)

 

 

77,383

 

 

 

82,500

 

 

 

57

 

 

 

(3,819

)

 

 

78,738

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations (1)

 

 

217,632

 

 

 

 

 

 

(12,198

)

 

 

205,434

 

 

 

235,479

 

 

 

192

 

 

 

(5,558

)

 

 

230,113

 

FHLMC Certificates

 

 

3,923

 

 

 

 

 

 

(358

)

 

 

3,565

 

 

 

4,120

 

 

 

 

 

 

(268

)

 

 

3,852

 

FNMA Certificates

 

 

121,940

 

 

 

 

 

 

(8,818

)

 

 

113,122

 

 

 

131,918

 

 

 

 

 

 

(5,227

)

 

 

126,691

 

SBA Certificates

 

 

20,717

 

 

 

147

 

 

 

 

 

 

20,864

 

 

 

21,803

 

 

 

34

 

 

 

 

 

 

21,837

 

Allowance for Credit Losses

 

 

(647

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total held-to-maturity securities

 

$

471,065

 

 

$

147

 

 

$

(26,995

)

 

$

444,864

 

 

$

510,820

 

 

$

283

 

 

$

(15,252

)

 

$

495,851

 

 

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

 

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

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Beginning balance

 

$

 

 

$

 

CECL adoption

 

 

662

 

 

 

 

Provision for credit losses

 

 

(15

)

 

 

 

Allowance for credit losses on securities

 

$

647

 

 

$

 

 

 

 

9


 

Ponce Financial Group, Inc. and Subsidiaries

Loan Portfolio

 

 

 

As of

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

(Dollars in thousands)

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor Owned

 

$

347,082

 

 

 

19.13

%

 

$

351,754

 

 

 

20.43

%

 

$

354,559

 

 

 

21.60

%

 

$

343,968

 

 

 

22.54

%

 

$

336,667

 

 

 

23.79

%

Owner-Occupied

 

 

151,866

 

 

 

8.37

%

 

 

154,116

 

 

 

8.94

%

 

 

149,481

 

 

 

9.10

%

 

 

134,878

 

 

 

8.84

%

 

 

112,749

 

 

 

7.97

%

Multifamily residential

 

 

553,694

 

 

 

30.52

%

 

 

550,033

 

 

 

31.94

%

 

 

553,430

 

 

 

33.71

%

 

 

494,667

 

 

 

32.42

%

 

 

421,917

 

 

 

29.81

%

Nonresidential properties

 

 

321,472

 

 

 

17.71

%

 

 

317,416

 

 

 

18.43

%

 

 

314,560

 

 

 

19.17

%

 

 

308,043

 

 

 

20.19

%

 

 

282,642

 

 

 

19.97

%

Construction and land

 

 

411,383

 

 

 

22.67

%

 

 

315,843

 

 

 

18.34

%

 

 

235,157

 

 

 

14.33

%

 

 

185,018

 

 

 

12.13

%

 

 

197,437

 

 

 

13.95

%

Total mortgage loans

 

 

1,785,497

 

 

 

98.40

%

 

 

1,689,162

 

 

 

98.08

%

 

 

1,607,187

 

 

 

97.91

%

 

 

1,466,574

 

 

 

96.12

%

 

 

1,351,412

 

 

 

95.49

%

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business loans (1)

 

 

18,416

 

 

 

1.02

%

 

 

21,041

 

 

 

1.22

%

 

 

19,890

 

 

 

1.21

%

 

 

39,965

 

 

 

2.62

%

 

 

41,398

 

 

 

2.92

%

Consumer loans (2)

 

 

10,416

 

 

 

0.58

%

 

 

11,958

 

 

 

0.70

%

 

 

14,227

 

 

 

0.88

%

 

 

19,129

 

 

 

1.26

%

 

 

22,563

 

 

 

1.59

%

Total non-mortgage loans

 

 

28,832

 

 

 

1.60

%

 

 

32,999

 

 

 

1.92

%

 

 

34,117

 

 

 

2.09

%

 

 

59,094

 

 

 

3.88

%

 

 

63,961

 

 

 

4.51

%

Total loans, gross

 

 

1,814,329

 

 

 

100.00

%

 

 

1,722,161

 

 

 

100.00

%

 

 

1,641,304

 

 

 

100.00

%

 

 

1,525,668

 

 

 

100.00

%

 

 

1,415,373

 

 

 

100.00

%

Net deferred loan origination costs

 

 

692

 

 

 

 

 

 

1,059

 

 

 

 

 

 

2,099

 

 

 

 

 

 

2,051

 

 

 

 

 

 

2,288

 

 

 

 

Allowance for credit losses on loans

 

 

(27,414

)

 

 

 

 

 

(28,173

)

 

 

 

 

 

(28,975

)

 

 

 

 

 

(34,592

)

 

 

 

 

 

(25,108

)

 

 

 

Loans, net

 

$

1,787,607

 

 

 

 

 

$

1,695,047

 

 

 

 

 

$

1,614,428

 

 

 

 

 

$

1,493,127

 

 

 

 

 

$

1,392,553

 

 

 

 

 

(1)
As of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, business loans include $1.1 million, $3.2 million, $3.6 million, $20.0 million and $24.7 million, respectively, of PPP loans.
(2)
As of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, consumer loans include $9.3 million, $11.2 million, $13.4 million, $18.2 million and $21.5 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain.

 

 

 

 

10


 

Ponce Financial Group, Inc. and Subsidiaries

Grain Loan Exposure

 

Grain Technologies, Inc. ("Grain") Total Exposure as of September 30, 2023

 

(in thousands)

 

Receivable from Grain

 

 

 

Microloans originated - put back to Grain (inception-to-September 30, 2023)

 

$

24,255

 

Write-downs, net of recoveries (inception-to-date as of September 30, 2023)

 

 

(15,610

)

Cash receipts from Grain (inception-to-September 30, 2023)

 

 

(6,819

)

Grant/reserve

 

 

(1,826

)

Net receivable as of September 30, 2023

 

$

 

Microloan receivables from Grain Borrowers

 

 

 

Grain originated loans receivable as of September 30, 2023

 

$

9,318

 

Allowance for credit losses on loans as of September 30, 2023 (1)

 

 

(8,163

)

Microloans, net of allowance for credit losses on loans as of September 30, 2023

 

$

1,155

 

Investments

 

 

 

Investment in Grain

 

$

1,000

 

Investment in Grain write-off in Q3 2022

 

 

(1,000

)

Investment in Grain as of September 30, 2023

 

 

 

Total exposure to Grain as of September 30, 2023

 

$

1,155

 

 

(1) Includes $0.3 million for allowance for unused commitments on the $2.4 million of unused commitments available to Grain originated borrowers reported in other liabilities in the accompanying Consolidated Statements of Financial Conditions. Excludes $1.6 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.

 

11


 

Ponce Financial Group, Inc. and Subsidiaries

Allowance for Credit Losses on Loans

 

 

For the Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

(Dollars in thousands)

 

Allowance for credit losses on loans at beginning of the period

$

28,173

 

 

$

28,975

 

 

$

34,592

 

 

$

25,108

 

 

$

17,535

 

Provision (benefit) for credit losses on loans

 

750

 

 

 

934

 

 

 

(321

)

 

 

12,641

 

 

 

9,330

 

Adoption of CECL

 

 

 

 

 

 

 

(3,090

)

 

 

 

 

 

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily residences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonresidential properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

(1,592

)

 

 

(1,931

)

 

 

(2,569

)

 

 

(3,659

)

 

 

(1,799

)

Total charge-offs

 

(1,592

)

 

 

(1,931

)

 

 

(2,569

)

 

 

(3,659

)

 

 

(1,799

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

39

 

Multifamily residences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonresidential properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

3

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Consumer

 

80

 

 

 

195

 

 

 

363

 

 

 

502

 

 

 

2

 

Total recoveries

 

83

 

 

 

195

 

 

 

363

 

 

 

502

 

 

 

42

 

Net (charge-offs) recoveries

 

(1,509

)

 

 

(1,736

)

 

 

(2,206

)

 

 

(3,157

)

 

 

(1,757

)

Allowance for credit losses on loans at end of the period

$

27,414

 

 

$

28,173

 

 

$

28,975

 

 

$

34,592

 

 

$

25,108

 

 

 

12


 

 

Ponce Financial Group, Inc. and Subsidiaries

Deposits

 

 

 

As of

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Amount

 

 

Percent

 

 

 

(Dollars in thousands)

 

Demand

 

$

265,862

 

 

 

18.98

%

 

$

266,545

 

 

 

18.48

%

 

$

282,741

 

 

 

21.15

%

 

$

289,149

 

 

 

23.08

%

 

$

288,654

 

 

 

21.37

%

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA accounts

 

 

22,519

 

 

 

1.61

%

 

 

22,754

 

 

 

1.57

%

 

 

21,735

 

 

 

1.63

%

 

 

24,349

 

 

 

1.94

%

 

 

28,799

 

 

 

2.13

%

Money market accounts

 

 

370,500

 

 

 

26.44

%

 

 

387,970

 

 

 

26.91

%

 

 

293,140

 

 

 

21.93

%

 

 

236,143

 

 

 

18.86

%

 

 

257,409

 

 

 

19.05

%

Reciprocal deposits

 

 

82,670

 

 

 

5.90

%

 

 

100,919

 

 

 

7.00

%

 

 

109,649

 

 

 

8.20

%

 

 

114,049

 

 

 

9.11

%

 

 

162,858

 

 

 

12.05

%

Savings accounts

 

 

117,870

 

 

 

8.41

%

 

 

119,635

 

 

 

8.30

%

 

 

127,731

 

 

 

9.55

%

 

 

130,432

 

 

 

10.41

%

 

 

140,055

 

 

 

10.37

%

Total NOW, money market, reciprocal and savings accounts

 

 

593,559

 

 

 

42.36

%

 

 

631,278

 

 

 

43.78

%

 

 

552,255

 

 

 

41.31

%

 

 

504,973

 

 

 

40.32

%

 

 

589,121

 

 

 

43.60

%

Certificates of deposit of $250K or more

 

 

122,353

 

 

 

8.73

%

 

 

120,043

 

 

 

8.32

%

 

 

113,955

 

 

 

8.52

%

 

 

106,336

 

 

 

8.49

%

 

 

114,016

 

 

 

8.43

%

Brokered certificates of deposit (1)

 

 

98,729

 

 

 

7.05

%

 

 

98,729

 

 

 

6.85

%

 

 

98,754

 

 

 

7.39

%

 

 

98,754

 

 

 

7.89

%

 

 

98,760

 

 

 

7.31

%

Listing service deposits (1)

 

 

15,180

 

 

 

1.08

%

 

 

20,258

 

 

 

1.40

%

 

 

28,417

 

 

 

2.13

%

 

 

35,813

 

 

 

2.86

%

 

 

40,964

 

 

 

3.03

%

All other certificates of deposit less than $250K

 

 

305,449

 

 

 

21.80

%

 

 

305,160

 

 

 

21.17

%

 

 

260,755

 

 

 

19.50

%

 

 

217,387

 

 

 

17.36

%

 

 

219,674

 

 

 

16.26

%

Total certificates of deposit

 

 

541,711

 

 

 

38.66

%

 

 

544,190

 

 

 

37.74

%

 

 

501,881

 

 

 

37.54

%

 

 

458,290

 

 

 

36.60

%

 

 

473,414

 

 

 

35.03

%

Total interest-bearing deposits

 

 

1,135,270

 

 

 

81.02

%

 

 

1,175,468

 

 

 

81.52

%

 

 

1,054,136

 

 

 

78.85

%

 

 

963,263

 

 

 

76.92

%

 

 

1,062,535

 

 

 

78.63

%

Total deposits

 

$

1,401,132

 

 

 

100.00

%

 

$

1,442,013

 

 

 

100.00

%

 

$

1,336,877

 

 

 

100.00

%

 

$

1,252,412

 

 

 

100.00

%

 

$

1,351,189

 

 

 

100.00

%

(1)
As of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, there were $0.3 million, $3.3 million, $9.5 million, $13.6 million and $13.8 million, respectively, in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.

 

 

13


 

Ponce Financial Group, Inc. and Subsidiaries

Borrowings

 

 

September 30,

 

 

December 31,

 

 

2023

 

 

2022

 

 

Scheduled
Maturity

 

 

Redeemable
at Call Date

 

 

Weighted
Average
Rate

 

 

Scheduled
Maturity

 

 

Redeemable
at Call Date

 

 

Weighted
Average
Rate

 

 

(Dollars in thousands)

 

Overnight line of credit
   advance

$

 

 

$

 

 

 

%

 

$

6,000

 

 

$

6,000

 

 

 

4.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term advances ending:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

$

 

 

$

 

 

 

 

 

$

178,375

 

 

$

178,375

 

 

 

4.32

 

2024

 

354,000

 

 

 

354,000

 

 

 

4.53

 

 

 

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

 

$

675,100

 

 

$

675,100

 

 

 

4.08

%

 

$

517,375

 

 

$

517,375

 

 

 

3.90

%

 

14


 

Ponce Financial Group, Inc. and Subsidiaries

Nonperforming Assets

 

 

As of Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

(Dollars in thousands)

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

396

 

 

$

296

 

 

$

2,836

 

 

$

2,844

 

 

$

5,902

 

Owner occupied

 

1,685

 

 

 

2,363

 

 

 

2,245

 

 

 

961

 

 

 

971

 

Multifamily residential

 

1,444

 

 

 

1,435

 

 

 

 

 

 

 

 

 

 

Nonresidential properties

 

 

 

 

 

 

 

 

 

 

 

 

 

778

 

Construction and land

 

11,721

 

 

 

11,721

 

 

 

11,906

 

 

 

7,567

 

 

 

10,660

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

209

 

 

 

 

 

 

40

 

 

 

 

 

 

359

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)

$

15,455

 

 

$

15,815

 

 

$

17,027

 

 

$

11,372

 

 

$

18,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing modifications to borrowers experiencing financial difficulty (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

270

 

 

$

209

 

 

$

213

 

 

$

217

 

 

$

221

 

Owner occupied

 

449

 

 

 

840

 

 

 

2,020

 

 

 

2,027

 

 

 

2,215

 

Multifamily residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonresidential properties

 

 

 

 

 

 

 

91

 

 

 

93

 

 

 

95

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-accruing modifications to borrowers experiencing financial difficulty (1)

 

719

 

 

 

1,049

 

 

 

2,324

 

 

 

2,337

 

 

 

2,531

 

Total non-accrual loans

$

16,174

 

 

$

16,864

 

 

$

19,351

 

 

$

13,709

 

 

$

21,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing modifications to borrowers experiencing financial difficulty (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor owned

$

2,131

 

 

$

2,161

 

 

$

2,185

 

 

$

2,207

 

 

$

2,228

 

Owner occupied

 

2,335

 

 

 

2,353

 

 

 

1,310

 

 

 

1,328

 

 

 

1,254

 

Multifamily residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonresidential properties

 

765

 

 

 

783

 

 

 

701

 

 

 

708

 

 

 

715

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total accruing modifications to borrowers experiencing financial difficulty (1)

$

5,231

 

 

$

5,297

 

 

$

4,196

 

 

$

4,243

 

 

$

4,197

 

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)

$

21,405

 

 

$

22,161

 

 

$

23,547

 

 

$

17,952

 

 

$

25,398

 

Total non-performing loans to total gross loans

 

0.89

%

 

 

0.98

%

 

 

1.18

%

 

 

0.90

%

 

 

1.50

%

Total non-performing assets to total assets

 

0.62

%

 

 

0.63

%

 

 

0.76

%

 

 

0.59

%

 

 

0.97

%

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1)

 

0.82

%

 

 

0.83

%

 

 

0.93

%

 

 

0.78

%

 

 

1.16

%

 

 

(1) For periods in 2023, balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings. For periods in 2022, the balances only include troubled debt restructurings.

15


 

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

 

 

For the Three Months Ended September 30,

 

2023

 

2022

 

Average

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

Average

 

Outstanding

 

 

 

 

 

Average

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

(Dollars in thousands)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

$

1,777,585

 

 

$

25,276

 

 

5.64%

 

$

1,379,029

 

 

$

17,058

 

 

4.91%

Securities (3)

 

599,573

 

 

 

5,821

 

 

3.85%

 

 

492,337

 

 

 

4,153

 

 

3.35%

Other (4) (5)

 

169,570

 

 

 

2,409

 

 

5.64%

 

 

74,055

 

 

 

423

 

 

2.27%

Total interest-earning assets

 

2,546,728

 

 

 

33,506

 

 

5.22%

 

 

1,945,421

 

 

 

21,634

 

 

4.41%

Non-interest-earning assets (5)

 

111,771

 

 

 

 

 

 

 

 

108,329

 

 

 

 

 

 

Total assets

$

2,658,499

 

 

 

 

 

 

 

$

2,053,750

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA

$

22,876

 

 

$

8

 

 

0.14%

 

$

29,939

 

 

$

13

 

 

0.17%

Money market

 

485,042

 

 

 

5,601

 

 

4.58%

 

 

381,606

 

 

 

1,303

 

 

1.35%

Savings

 

118,095

 

 

 

29

 

 

0.10%

 

 

141,200

 

 

 

57

 

 

0.16%

Certificates of deposit

 

527,302

 

 

 

4,362

 

 

3.28%

 

 

382,163

 

 

 

855

 

 

0.89%

Total deposits

 

1,153,315

 

 

 

10,000

 

 

3.44%

 

 

934,908

 

 

 

2,228

 

 

0.95%

Advance payments by borrowers

 

14,537

 

 

 

1

 

 

0.03%

 

 

10,918

 

 

 

2

 

 

0.07%

Borrowings

 

678,676

 

 

 

6,963

 

 

4.07%

 

 

250,112

 

 

 

1,793

 

 

2.84%

Total interest-bearing liabilities

 

1,846,528

 

 

 

16,964

 

 

3.64%

 

 

1,195,938

 

 

 

4,023

 

 

1.33%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

278,358

 

 

 

 

 

 

 

 

321,556

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

46,643

 

 

 

 

 

 

 

 

16,377

 

 

 

 

 

 

Total non-interest-bearing liabilities

 

325,001

 

 

 

 

 

 

 

 

337,933

 

 

 

 

 

 

Total liabilities

 

2,171,529

 

 

 

16,964

 

 

 

 

 

1,533,871

 

 

 

4,023

 

 

 

Total equity

 

486,970

 

 

 

 

 

 

 

 

519,879

 

 

 

 

 

 

Total liabilities and total equity

$

2,658,499

 

 

 

 

 

3.64%

 

$

2,053,750

 

 

 

 

 

1.33%

Net interest income

 

 

 

$

16,542

 

 

 

 

 

 

 

$

17,611

 

 

 

Net interest rate spread (6)

 

 

 

 

 

 

1.58%

 

 

 

 

 

 

 

3.08%

Net interest-earning assets (7)

$

700,200

 

 

 

 

 

 

 

$

749,483

 

 

 

 

 

 

Net interest margin (8)

 

 

 

 

 

 

2.58%

 

 

 

 

 

 

 

3.59%

Average interest-earning assets to interest-bearing liabilities

 

 

 

 

 

 

137.92%

 

 

 

 

 

 

 

162.67%

 

 

(1)
Annualized where appropriate.
(2)
Loans include loans and mortgage loans held for sale, at fair value.
(3)
Securities include available-for-sale securities and held-to-maturity securities.
(4)
Includes FHLBNY demand account, FHLBNY stock dividends and FRB demand deposits.
(5)
FRB demand deposits for prior period have been reclassified for consistency.
(6)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)
Net interest margin represents net interest income divided by average total interest-earning assets.

 

16


 

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

 

 

For the Nine Months Ended September 30,

 

 

2023

 

 

2022

 

 

Average

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

Average

 

 

Outstanding

 

 

 

 

 

Average

 

 

Balance

 

 

Interest

 

 

Yield/Rate (1)

 

 

Balance

 

 

Interest

 

 

Yield/Rate

 

(Dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (2)

$

1,678,369

 

 

$

67,991

 

 

 

5.42

%

 

$

1,341,151

 

 

$

51,315

 

 

 

5.12

%

Securities (3)

 

614,987

 

 

 

17,627

 

 

 

3.83

%

 

 

263,421

 

 

 

5,778

 

 

 

2.93

%

Other (4) (5)

 

127,961

 

 

 

5,299

 

 

 

5.54

%

 

 

96,623

 

 

 

726

 

 

 

1.00

%

Total interest-earning assets

 

2,421,317

 

 

 

90,917

 

 

 

5.02

%

 

 

1,701,195

 

 

 

57,819

 

 

 

4.54

%

Non-interest-earning assets (5)

 

118,609

 

 

 

 

 

 

 

 

 

136,650

 

 

 

 

 

 

 

Total assets

$

2,539,926

 

 

 

 

 

 

 

 

$

1,837,845

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW/IOLA

$

22,828

 

 

$

25

 

 

 

0.15

%

 

$

31,769

 

 

$

43

 

 

 

0.18

%

Money market

 

403,171

 

 

 

12,745

 

 

 

4.23

%

 

 

344,361

 

 

 

1,986

 

 

 

0.77

%

Savings

 

123,218

 

 

 

88

 

 

 

0.10

%

 

 

137,808

 

 

 

120

 

 

 

0.12

%

Certificates of deposit

 

522,740

 

 

 

11,468

 

 

 

2.93

%

 

 

398,661

 

 

 

2,361

 

 

 

0.79

%

Total deposits

 

1,071,957

 

 

 

24,326

 

 

 

3.03

%

 

 

912,599

 

 

 

4,510

 

 

 

0.66

%

Advance payments by borrowers

 

14,814

 

 

 

6

 

 

 

0.05

%

 

 

11,033

 

 

 

5

 

 

 

0.06

%

Borrowings

 

617,912

 

 

 

18,516

 

 

 

4.01

%

 

 

152,084

 

 

 

2,867

 

 

 

2.52

%

Total interest-bearing liabilities

 

1,704,683

 

 

 

42,848

 

 

 

3.36

%

 

 

1,075,716

 

 

 

7,382

 

 

 

0.92

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

298,148

 

 

 

 

 

 

 

 

 

350,871

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

43,864

 

 

 

 

 

 

 

 

 

43,606

 

 

 

 

 

 

 

Total non-interest-bearing liabilities

 

342,012

 

 

 

 

 

 

 

 

 

394,477

 

 

 

 

 

 

 

Total liabilities

 

2,046,695

 

 

 

42,848

 

 

 

 

 

 

1,470,193

 

 

 

7,382

 

 

 

 

Total equity

 

493,231

 

 

 

 

 

 

 

 

 

367,652

 

 

 

 

 

 

 

Total liabilities and total equity

$

2,539,926

 

 

 

 

 

 

3.36

%

 

$

1,837,845

 

 

 

 

 

 

0.92

%

Net interest income

 

 

 

$

48,069

 

 

 

 

 

 

 

 

$

50,437

 

 

 

 

Net interest rate spread (6)

 

 

 

 

 

 

 

1.66

%

 

 

 

 

 

 

 

 

3.62

%

Net interest-earning assets (7)

$

716,634

 

 

 

 

 

 

 

 

$

625,479

 

 

 

 

 

 

 

Net interest margin (8)

 

 

 

 

 

 

 

2.65

%

 

 

 

 

 

 

 

 

3.96

%

Average interest-earning assets to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest-bearing liabilities

 

 

 

 

 

 

 

142.04

%

 

 

 

 

 

 

 

 

158.15

%

 

(1)
Annualized where appropriate.
(2)
Loans include loans and mortgage loans held for sale, at fair value.
(3)
Securities include available-for-sale securities and held-to-maturity securities.
(4)
Includes FHLBNY demand account, FHLBNY stock dividends and FRB demand deposit.
(5)
FRB demand deposits for prior period have been reclassified for consistency.
(6)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)
Net interest margin represents net interest income divided by average total interest-earning assets.

 

17


 

Ponce Financial Group, Inc. and Subsidiaries

Other Data

 

 

As of

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares issued

 

24,886,711

 

 

 

24,886,711

 

 

 

24,865,476

 

 

 

24,861,329

 

 

 

24,728,460

 

Less treasury shares

 

1,233,111

 

 

 

617,924

 

 

 

1,976

 

 

 

1,976

 

 

 

 

Common shares outstanding at end of period

 

23,653,600

 

 

 

24,268,787

 

 

 

24,863,500

 

 

 

24,859,353

 

 

 

24,728,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share

$

10.99

 

 

$

10.94

 

 

$

10.90

 

 

$

10.77

 

 

$

11.15

 

Tangible book value per common share

$

10.99

 

 

$

10.94

 

 

$

10.90

 

 

$

10.77

 

 

$

11.15

 

 

 

 

18