NEW YORK, July 25, 2025 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the second quarter of 2025.

Second Quarter 2025 Highlights (Compared to Prior Periods):

• Net income available to common stockholders was $5.8 million, or $0.25 per diluted share for the three months ended June 30, 2025, as compared to net income available to common stockholders of $5.7 million, or $0.25 per diluted share for the three months ended March 31, 2025, and net income available to common stockholders of $3.1 million, or $0.14 per diluted share for the three months ended June 30, 2024. Total net income for the three months ended June 30, 2025, was $6.1 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended June 30, 2025.
• Included in the $5.8 million of net income available to common stockholders for the second quarter of 2025 results is $45.9 million in interest and dividend income and $2.1 million in non-interest income, offset by $21.4 million in interest expense, $16.9 million in non-interest expense, $1.9 million in provision for income taxes, $1.6 million in provision for credit losses and $0.3 million in dividends on preferred shares.
• Net interest income of $24.4 million for the second quarter of 2025 increased $2.2 million, or 10.01%, from the prior quarter and increased $6.5 million, or 36.43%, from the same quarter last year. 
• Net interest margin was 3.27% for the second quarter of 2025, versus 2.98% for the prior quarter and 2.62% for the same quarter last year.
  
  

Six Months 2025 Highlights (Compared to 2024):

• Net income available to common stockholders was $11.5 million, or $0.50 per diluted share for the six months ended June 30, 2025, as compared to net income available to common stockholders of $5.5 million, or $0.25 per diluted share for the six months ended June 30, 2024. Total net income for the six months ended June 30, 2025, was $12.1 million. The Company paid dividends of $0.6 million on its preferred stock during the six months ended June 30, 2025.
• Net interest income for the six months ended June 30, 2025, was $46.6 million, an increase of $9.9 million, or 26.96%, compared to $36.7 million for the six months ended June 30, 2024. 
• Non-interest income for the six months ended June 30, 2025, was $4.4 million, an increase of $0.5 million, or 12.01%, from $4.0 million for the six months ended June 30, 2024.
• Non-interest expense for the six months ended June 30, 2025, was $33.8 million, an increase of $0.3 million, or 0.99%, compared to $33.4 million for the six months ended June 30, 2024.
• Cash and equivalents were $126.6 million as of June 30, 2025, a decrease of $13.2 million, or 9.44%, from $139.8 million as of December 31, 2024.
• Securities totaled $433.4 million as of June 30, 2025, a decrease of $39.5 million, or 8.35%, from $472.9 million as of December 31, 2024, primarily due to regular principal payments, the call of two available-for-sale securities in the total amount of $6.0 million and the maturity of one held-for-sale security in the amount of $10.0 million.
• Net loans receivable were $2.46 billion as of June 30, 2025, an increase of $172.1 million, or 7.53%, from $2.29 billion as of December 31, 2024.
• Deposits were $2.04 billion as of June 30, 2025, an increase of $157.3 million, or 8.35%, from $1.88 billion as of December 31, 2024.
  
  

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “We continue to execute on our strategy of prudent growth and incremental profitability. Our diluted earnings per share of $0.50 for the six months ended June 30, 2025, doubled from the same period last year driven by incremental net interest income and non-interest income while keeping non-interest expenses almost flat. Our net interest margin this quarter increased by 29 basis points compared to the prior quarter, reflecting both our high-yielding construction loans and our decreasing borrowing costs. Our non-performing loans also decreased this quarter. All-in-all, a very good quarter in these turbulent and uncertain times.” 

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman, added “We continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program. As we previously communicated, given our level of originations from April 2024 to March 2025, we have ensured another year of the lowest possible preferred stock dividend of 0.50%. Regarding next year’s dividend period, we’re at 69% of the goal to qualify for the 0.50% rate with three more quarters to go. Also, we’re mindful of our percentage of deep impact lending, as we need to be at 60% or above for 16 quarters cumulatively, as a condition to buy the preferred stock back. After 12 quarters, including the quarter ended June 30, 2025, we are at 80% deep impact lending.” 

The table below indicates the Key Metrics at or for the three months ended:

	At or for the Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
	2025				2025				2024				2024				2024
Performance Ratios:
Return on average assets (1)		0.79	%			0.77	%			0.38	%			0.33	%			0.45	%
Return on common equity (1)		7.88	%			7.97	%			3.76	%			3.06	%			4.60	%
Net interest margin (1) (2)		3.27	%			2.98	%			2.80	%			2.65	%			2.62	%
Non-interest expense to average assets (1)		2.18	%			2.19	%			2.25	%			2.19	%			2.28	%
Efficiency ratio (3)		63.69	%			68.70	%			75.63	%			80.87	%			80.09	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)		22.65	%			22.84	%			22.98	%			22.87	%			23.86	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)		12.49	%			12.51	%			12.44	%			12.28	%			12.71	%
Tier 1 capital to total assets (Ponce Financial Group)		17.13	%			16.84	%			17.70	%			17.81	%			17.88	%
Total capital to risk-weighted assets (Bank only)		21.22	%			21.38	%			21.47	%			21.61	%			22.47	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.15	%			20.35	%			20.40	%			20.45	%			21.24	%
Tier 1 capital to total assets (Bank only)		15.99	%			15.61	%			15.81	%			16.19	%			16.70	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.97	%			0.96	%			0.97	%			1.09	%			1.18	%
Allowance for credit losses on loans as a percentage of nonperforming loans		101.01	%			84.15	%			82.29	%			139.52	%			130.28	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.04	%)			(0.04	%)			(0.45	%)			(0.17	%)			(0.10	%)
Non-performing loans as a percentage of total assets		0.76	%			0.88	%			0.90	%			0.57	%			0.65	%
Other:
Number of offices		17				18				19				19				18
Number of full-time equivalent employees		206				211				218				228				227

(1)   Annualized where appropriate.
(2)   Net interest margin represents net interest income divided by average total interest-earning assets.
(3)   Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

Summary of Results of Operations

Net income for the three months ended June 30, 2025, was $6.1 million compared to net income of $6.0 million for the three months ended March 31, 2025, and net income of $3.2 million for the three months ended June 30, 2024.

The $0.1 million increase of net income for the three months ended June 30, 2025, compared to the three months ended March 31, 2025, was attributed mainly to increase of $2.2 million in net interest income and a decrease of $0.1 million in provision for income taxes while remaining flat on non-interest expense, partially offset by an increase of $1.9 million in provision for credit losses and a decrease of $0.3 million in non-interest income.

The $2.9 million increase of net income for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 was largely due to increases of $6.5 million in net interest income, partially offset by increases of $2.5 million in provision for credit losses, $0.7 million in provision for income taxes and $0.2 million in non-interest expense and a decrease of $0.2 million in non-interest income.

Net income for the six months ended June 30, 2025, was $12.1 million compared to net income of $5.6 million for the six months ended June 30, 2024. The $6.5 million increase of net income for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was attributed mainly to increases of $9.9 million in net interest income and $0.5 million in non-interest income; partially offset by increases of $2.2 million in provision for credit losses, $1.4 million in provision for income taxes and $0.3 million in non-interest expense.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended June 30, 2025, increased $2.2 million, or 10.01%, to $24.4 million compared to $22.2 million for the three months ended March 31, 2025, and increased $6.5 million, or 36.43%, compared to $17.9 million for the three months ended June 30, 2024.

The $2.2 million increase in net interest income from the three months ended March 31, 2025, was attributable to an increase of $1.9 million in total interest and dividend income and a decrease of $0.3 million in total interest expense. The $6.5 million increase in net interest income from the three months ended June 30, 2024, was attributable to an increase of $7.0 million in total interest and dividend income, offset by an increase of $0.5 million in total interest expense.

Net interest income for the six months ended June 30, 2025, increased $9.9 million, or 26.96%, to $46.6 million compared to $36.7 million for the six months ended June 30, 2024. The $9.9 million increase in net interest income was attributable to an increase of $11.4 million in total interest and dividend income, offset by an increase of $1.5 million in total interest expense.

Net interest margin was 3.27% for the three months ended June 30, 2025, compared to 2.98% for the prior quarter, an increase of 29bps and 2.62% for the same period last year, an increase of 65bps.

Net interest margin was 3.12% for the six months ended June 30, 2025 compared to 2.67% for the six months ended June 30, 2024, an increase of 45bps.

Non-interest Income

Non-interest income for the three months ended June 30, 2025, was $2.1 million, a decrease of $0.3 million, or 13.48%, compared to $2.4 million for the three months ended March 31, 2025, and a decrease of $0.2 million, or 8.77%, compared to $2.3 million for the three months ended June 30, 2024.

The $0.3 million decrease in non-interest income from the three months ended March 31, 2025, was largely attributable to decreases of
$0.4 million in income on sale of SBA loans, $0.2 million in late and prepayment charges and $0.2 million in other non-interest income, partially offset by an increase of $0.4 million in grant income.

The $0.2 million decrease in non-interest income from the three months ended June 30, 2024, was largely attributable to decreases of $0.6 million in other non-interest income and $0.1 million in income on the sale of mortgage loans, partially offset by increases of $0.4 million in grant income and $0.1 million in late and prepayment charges.

Non-interest income for the six months ended June 30, 2025, was $4.4 million, an increase of $0.5 million, or 12.01%, compared to $4.0 million for the six months ended June 30, 2024. The $0.5 million increase in non-interest income was largely attributable to increases of $0.4 million in grant income, $0.4 million in income on sale of SBA loans and $0.4 million in late and prepayment charges, partially offset by decreases of $0.6 million in other non-interest income and $0.3 million in income on the sale of mortgage loans.

Non-interest Expense

Non-interest expense for the three months ended June 30, 2025, remained flat at $16.9 million compared to the three months ended March 31, 2025, and increased $0.2 million, or 1.38%, compared to $16.6 million for the three months ended June 30, 2024.

The $0.2 million increase in non-interest expense from the three months ended June 30, 2024, was mainly attributable to increases of $0.3 million in occupancy and equipment, $0.2 million in data processing expenses, $0.1 million in marketing and promotional expenses and $0.1 million in federal deposit insurance and regulatory assessment, partially offset by a decrease of $0.4 million in direct loan expenses.

Non-interest expense for the six months ended June 30, 2025, was $33.8 million, an increase of $0.3 million, or 0.99%, compared to $33.4 million for the six months ended June 30, 2024. The $0.3 million increase in non-interest expense was mainly attributable to increases of $0.6 million in occupancy and equipment, $0.4 million in other operating expense and $0.2 million in data processing expenses, partially offset by decreases of $0.7 million in direct loan expenses and $0.4 million in professional fees.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $28.5 million at June 30, 2025, compared to $32.0 million at March 31, 2025, and $23.2 million at June 30, 2024.

During the three months ended June 30, 2025, a credit loss provision of $1.6 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.3 million charged on the unfunded portion on loans. During the three months ended March 31, 2025, a credit loss benefit of $0.3 million on loans was recorded, consisting of $0.7 million charged on the funded portion and a benefit of $1.0 million on the unfunded portion on loans. During the three months ended June 30, 2024, a credit loss benefit of $0.6 million on loans was recorded, consisting of $0.5 million benefit on the unfunded portion on loans and $0.1 million benefit on the funded portion.

During the six months ended June 30, 2025, a credit loss provision of $1.3 million on loans was recorded, consisting of $2.1 million charged on the funded portion and a benefit of $0.8 million on the unfunded portion on loans. During the six months ended June 30, 2024, a credit loss benefit of $0.7 million on loans was recorded, consisting of $0.4 million benefit on the funded portion and a benefit of $0.3 million on unfunded portion on loans.

Balance Sheet Summary

Total assets increased $113.9 million, or 3.75%, to $3.15 billion as of June 30, 2025, from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $172.1 million in net loans receivable, $1.7 million in other assets and $1.4 million in accrued interest receivable, partially offset by decreases of $31.1 million in held-to-maturity securities, $13.2 million in cash and cash equivalents, $8.4 million in available-for-sale securities, $5.0 million in mortgage loans held for sale and $2.6 million in Federal Home Loan Bank of New York stock.

Total liabilities increased $98.3 million, or 3.88%, to $2.63 billion as of June 30, 2025, from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to an increase of $157.3 million in deposits, $0.6 million in advance payments by borrowers for taxes and insurance and $0.4 million in accrued interest payable, partially offset by decreases of $60.0 million in borrowings and $0.2 million in operating lease liabilities.

Total stockholders’ equity increased $15.6 million, or 3.08%, to $521.1 million as of June 30, 2025, from $505.5 million as of December 31, 2024. The $15.6 million increase in stockholders’ equity was largely attributable to $12.1 million in net income, $2.3 million in other comprehensive income, $1.0 million impact to additional paid in capital as a result of share-based compensation and $0.9 million from release of ESOP shares, offset by $0.6 million in dividends on preferred shares.

About Ponce Financial Group, Inc. 

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

Forward-Looking Statements

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

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

		As of
		June 30,				March 31,				December 31,				September 30,				June 30,
		2025				2025				2024				2024				2024
ASSETS
Cash and due from banks:
Cash		$	35,767			$	32,113			$	35,478			$	32,061			$	23,128
Interest-bearing deposits			90,872				97,780				104,361				123,751				80,038
Total cash and cash equivalents			126,639				129,893				139,839				155,812				103,166
Available-for-sale securities, at fair value			96,562				103,570				104,970				111,005				113,125
Held-to-maturity securities, at amortized cost			336,879				358,024				367,938				403,736				442,113
Placement with banks			249				249				249				249				249
Mortgage loans held for sale, at fair value			5,703				8,567				10,736				9,566				37,764
Loans receivable, net			2,458,712				2,370,931				2,286,599				2,180,331				2,022,173
Accrued interest receivable			19,126				19,008				17,771				16,890				17,441
Premises and equipment, net			16,067				16,417				16,794				16,843				16,976
Right of use assets			28,806				29,496				29,093				29,785				30,349
Federal Home Loan Bank of New York stock (FHLBNY), at cost			26,620				25,807				29,182				28,515				23,972
Deferred tax assets			12,143				11,629				12,074				11,845				13,172
Other assets			26,363				16,245				24,693				51,392				21,507
Total assets		$	3,153,869			$	3,089,836			$	3,039,938			$	3,015,969			$	2,842,007
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits		$	2,042,209			$	2,004,947			$	1,884,864			$	1,870,323			$	1,606,097
Operating lease liabilities			30,501				31,126				30,696				31,343				31,861
Accrued interest payable			4,161				4,628				3,712				2,918				6,820
Advance payments by borrowers for taxes and insurance			10,942				12,901				10,349				13,733				10,838
Borrowings			536,100				521,100				596,100				580,421				680,421
Other liabilities			8,868				1,248				8,717				12,642				8,313
Total liabilities			2,632,781				2,575,950				2,534,438				2,511,380				2,344,350
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized			225,000				225,000				225,000				225,000				225,000
Common stock, $0.01 par value; 200,000,000 shares authorized			249				249				249				249				249
Treasury stock, at cost			(7,404	)			(7,641	)			(7,707	)			(9,445	)			(9,519	)
Additional paid-in-capital			208,275				207,888				207,319				208,478				207,934
Retained earnings			119,250				113,432				107,754				105,103				102,951
Accumulated other comprehensive loss			(13,047	)			(13,515	)			(15,297	)			(12,686	)			(16,557	)
Unearned compensation ─ ESOP			(11,235	)			(11,527	)			(11,818	)			(12,110	)			(12,401	)
Total stockholders' equity			521,088				513,886				505,500				504,589				497,657
Total liabilities and stockholders' equity		$	3,153,869			$	3,089,836			$	3,039,938			$	3,015,969			$	2,842,007

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

		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2025				2025				2024				2024				2024
Interest and dividend income:
Interest on loans receivable		$	40,291			$	37,136			$	35,622			$	32,945			$	31,281
Interest on deposits due from banks			807				1,668				1,783				2,430				1,542
Interest and dividend on securities and FHLBNY stock			4,762				5,193				5,481				5,918				5,969
Total interest and dividend income			45,860				43,997				42,886				41,293				38,792
Interest expense:
Interest on certificates of deposit			7,382				7,754				8,104				6,926				6,358
Interest on other deposits			9,058				8,554				8,476				8,519				7,389
Interest on borrowings			4,994				5,486				5,576				6,825				7,141
Total interest expense			21,434				21,794				22,156				22,270				20,888
Net interest income			24,426				22,203				20,730				19,023				17,904
Provision (benefit) for credit losses (1)			1,626				(285	)			897				537				(867	)
Net interest income after provision (benefit) for credit losses			22,800				22,488				19,833				18,486				18,771
Non-interest income:
Service charges and fees			511				525				500				508				492
Brokerage commissions			—				4				44				—				9
Late and prepayment charges			530				697				318				77				426
Income on sale of mortgage loans			169				148				254				218				274
Income on sale of SBA loans			—				404				148				—				—
Grant income			428				—				—				—				—
Other			422				603				833				348				1,057
Total non-interest income			2,060				2,381				2,097				1,151				2,258
Non-interest expense:
Compensation and benefits			7,627				7,780				7,668				7,674				7,724
Occupancy and equipment			3,907				3,913				3,863				3,786				3,564
Data processing expenses			1,188				1,152				1,143				1,099				1,013
Direct loan expenses			241				388				617				573				633
Insurance and surety bond premiums			297				315				293				292				263
Office supplies, telephone and postage			174				170				294				222				233
Professional fees			1,367				1,364				1,703				1,351				1,369
Microloans recoveries			—				—				(29	)			(54	)			(65	)
Marketing and promotional expenses			266				83				289				180				145
Federal deposit insurance and regulatory assessment (2)			546				461				418				392				428
Other operating expenses (2)			1,256				1,262				1,206				1,051				1,333
Total non-interest expense (1)			16,869				16,888				17,465				16,566				16,640
Income before income taxes			7,991				7,981				4,465				3,071				4,389
Provision for income taxes			1,891				2,022				1,532				638				1,197
Net income		$	6,100			$	5,959			$	2,933			$	2,433			$	3,192
Dividends on preferred shares			282				281				282				281				75
Net income available to common stockholders		$	5,818			$	5,678			$	2,651			$	2,152			$	3,117
Earnings per common share:
Basic		$	0.26			$	0.25			$	0.12			$	0.10			$	0.14
Diluted		$	0.25			$	0.25			$	0.12			$	0.10			$	0.14
Weighted average common shares outstanding:
Basic			22,716,615				22,662,916				22,528,160				22,446,009				22,409,803
Diluted			22,947,769				22,876,740				22,807,644				22,612,028				22,419,309

(1) For the three months ended December 31, 2024, September 30, 2024, and June 30, 2024, benefit for contingencies in the amounts of $0.2 million, $0.3 million and $0.5 million were reclassified from total non-interest expense to benefit for credit losses.

(2) For the three months ended September 30, 2024, and June 30, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each of the periods.

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

		For the Six Months Ended June 30,
		2025				2024				Variance $				Variance %
Interest and dividend income:
Interest on loans receivable		$	77,427			$	61,945			$	15,482				24.99	%
Interest on deposits due from banks			2,475				4,453				(1,978	)			(44.42	%)
Interest and dividend on securities and FHLBNY stock			9,955				12,060				(2,105	)			(17.45	%)
Total interest and dividend income			89,857				78,458				11,399				14.53	%
Interest expense:
Interest on certificates of deposit			15,136				12,738				2,398				18.83	%
Interest on other deposits			17,612				13,929				3,683				26.44	%
Interest on borrowings			10,480				15,064				(4,584	)			(30.43	%)
Total interest expense			43,228				41,731				1,497				3.59	%
Net interest income			46,629				36,727				9,902				26.96	%
Provision (benefit) for credit losses (1)			1,341				(883	)			2,224				(251.87	%)
Net interest income after provision (benefit) for credit losses			45,288				37,610				7,678				20.41	%
Non-interest income:
Service charges and fees			1,036				965				71				7.36	%
Brokerage commissions			4				17				(13	)			(76.47	%)
Late and prepayment charges			1,227				785				442				56.31	%
Income on sale of mortgage loans			317				576				(259	)			(44.97	%)
Income on sale of SBA loans			404				—				404				—	%
Grant income			428				—				428				—	%
Other			1,025				1,622				(597	)			(36.81	%)
Total non-interest income			4,441				3,965				476				12.01	%
Non-interest expense:
Compensation and benefits			15,407				15,568				(161	)			(1.03	%)
Occupancy and equipment			7,820				7,231				589				8.15	%
Data processing expenses			2,340				2,140				200				9.35	%
Direct loan expenses			629				1,365				(736	)			(53.92	%)
Insurance and surety bond premiums			612				516				96				18.60	%
Office supplies, telephone and postage			344				482				(138	)			(28.63	%)
Professional fees			2,731				3,092				(361	)			(11.68	%)
Microloans recoveries			—				(118	)			118				(100.00	%)
Marketing and promotional expenses			349				245				104				42.45	%
Federal deposit insurance and regulatory assessments (2)			1,007				817				190				23.26	%
Other operating expenses (2)			2,518				2,088				430				20.59	%
Total non-interest expense (1)			33,757				33,426				331				0.99	%
Income before income taxes			15,972				8,149				7,823				96.00	%
Provision for income taxes			3,913				2,543				1,370				53.87	%
Net income		$	12,059			$	5,606			$	6,453				115.11	%
Dividends on preferred shares			563				75				488				650.67	%
Net income available to common stockholders		$	11,496			$	5,531			$	5,965				107.85	%
Earnings per common share:
Basic		$	0.51			$	0.25			$	0.26				104.00	%
Diluted		$	0.50			$	0.25			$	0.25				100.00	%
Weighted average common shares outstanding:
Basic			22,689,914				22,381,647				308,267				1.38	%
Diluted			22,920,841				22,393,018				527,823				2.36	%

(1) For the six months ended June 30, 2024, benefit for contingencies in the amount of $0.3 million were reclassified from total non-interest expense to benefit for credit losses.

(2) For the six months ended June 30, 2024, $0.6 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.2 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each of the periods.

Ponce Financial Group, Inc. and Subsidiaries
Loans Receivable excluding Mortgage Loans Held for Sale

		As of
		June 30,								March 31,								December 31,								September 30,								June 30,
		2025								2025								2024								2024								2024
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	317,488				12.78	%		$	325,866				13.62	%		$	330,053				14.30	%		$	332,380				15.09	%		$	337,292				16.49	%
Owner-Occupied			134,862				5.43	%			137,676				5.75	%			142,363				6.17	%			145,065				6.59	%			147,485				7.21	%
Multifamily residential			693,670				27.96	%			675,541				28.24	%			670,159				29.04	%			678,029				30.78	%			545,323				26.66	%
Nonresidential properties			404,512				16.30	%			390,681				16.33	%			389,898				16.89	%			383,277				17.40	%			337,583				16.51	%
Construction and land			883,462				35.59	%			815,425				34.08	%			733,660				31.79	%			631,461				28.67	%			641,879				31.39	%
Total mortgage loans			2,433,994				98.06	%			2,345,189				98.02	%			2,266,133				98.19	%			2,170,212				98.53	%			2,009,562				98.26	%
Non-mortgage loans:
Business loans			47,372				1.91	%			46,329				1.94	%			40,849				1.77	%			28,499				1.29	%			30,222				1.48	%
Consumer loans (1)			840				0.03	%			997				0.04	%			1,038				0.04	%			4,021				0.18	%			5,305				0.26	%
Total non-mortgage loans			48,212				1.94	%			47,326				1.98	%			41,887				1.81	%			32,520				1.47	%			35,527				1.74	%
Total loans, gross			2,482,206				100.00	%			2,392,515				100.00	%			2,308,020				100.00	%			2,202,732				100.00	%			2,045,089				100.00	%
Net deferred loan origination costs			606								1,390								1,081								1,565								1,145
Allowance for credit losses on loans			(24,100	)							(22,974	)							(22,502	)							(23,966	)							(24,061	)
Loans, net		$	2,458,712							$	2,370,931							$	2,286,599							$	2,180,331							$	2,022,173

(1)   As of September 30, 2024, and June 30, 2024, consumer loans include $3.0 million, and $4.3 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.

Ponce Financial Group, Inc. and Subsidiaries

Allowance for Credit Losses on Loans

		For the Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2025				2025				2024				2024				2024
		(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period		$	22,974			$	22,502			$	23,966			$	24,061			$	24,664
Provision (benefit) for credit losses on loans			1,348				731				1,090				801				(120	)
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned			—				(38	)			—				—				—
Owner occupied			—				—				—				—				—
Multifamily residences			—				—				—				—				—
Nonresidential properties			—				—				—				(7	)			—
Construction and land			—				—				—				—				—
Non-mortgage loans:
Business			(222	)			(222	)			(232	)			(450	)			—
Consumer			—				(3	)			(2,465	)			(634	)			(747	)
Total charge-offs			(222	)			(263	)			(2,697	)			(1,091	)			(747	)
Recoveries:
Non-mortgage loans:
Business			—				4				—				1				7
Consumer			—				—				143				194				257
Total recoveries			—				4				143				195				264
Net (charge-offs) recoveries			(222	)			(259	)			(2,554	)			(896	)			(483	)
Allowance for credit losses on loans at end of the period		$	24,100			$	22,974			$	22,502			$	23,966			$	24,061

Ponce Financial Group, Inc. and Subsidiaries
Deposits

		As of
		June 30,								March 31,								December 31,								September 30,								June 30,
		2025								2025								2024								2024								2024
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Demand		$	197,671				9.68	%		$	212,139				10.58	%		$	169,178				8.98	%		$	182,737				9.78	%		$	178,125				11.09	%
Interest-bearing deposits:
NOW/IOLA accounts			63,626				3.12	%			74,430				3.71	%			62,616				3.32	%			71,445				3.82	%			81,178				5.05	%
Money market accounts			790,939				38.73	%			692,753				34.55	%			636,219				33.75	%			660,168				35.30	%			502,255				31.27	%
Reciprocal deposits			136,693				6.69	%			141,838				7.07	%			130,677				6.93	%			94,145				5.03	%			109,945				6.85	%
Savings accounts			102,759				5.03	%			106,122				5.29	%			105,870				5.62	%			108,941				5.82	%			109,694				6.83	%
Total NOW, money market, reciprocal and savings accounts			1,094,017				53.57	%			1,015,143				50.62	%			935,382				49.62	%			934,699				49.97	%			803,072				50.00	%
Certificates of deposit of $250K or more (1)			220,671				10.81	%			219,721				10.96	%			204,293				10.84	%			210,262				11.25	%			189,683				11.82	%
Brokered certificates of deposit (2)			69,531				3.40	%			84,531				4.22	%			94,531				5.02	%			94,531				5.05	%			94,614				5.89	%
Listing service deposits (2)			6,140				0.30	%			6,140				0.31	%			7,376				0.39	%			7,376				0.39	%			9,361				0.58	%
All other certificates of deposit less than $250K (1)			454,179				22.24	%			467,273				23.31	%			474,104				25.15	%			440,718				23.56	%			331,242				20.62	%
Total certificates of deposit			750,521				36.75	%			777,665				38.80	%			780,304				41.40	%			752,887				40.25	%			624,900				38.91	%
Total interest-bearing deposits			1,844,538				90.32	%			1,792,808				89.42	%			1,715,686				91.02	%			1,687,586				90.22	%			1,427,972				88.91	%
Total deposits		$	2,042,209				100.00	%		$	2,004,947				100.00	%		$	1,884,864				100.00	%		$	1,870,323				100.00	%		$	1,606,097				100.00	%

(1)  As of September 30, 2024, and June 30, 2024, $36.2 million, and $33.5 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.

(2)  There were no individual listing service deposits amounting to $250,000 or more. There was one brokered certificates of deposit in the amount of $1.5 million amounting to $250,000 or more. All other brokered certificates of deposit individually amounted to less than $250,000.

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets

		As of Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2025				2025				2024				2024				2024
		(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned		$	1,859			$	1,052			$	436			$	436			$	436
Owner occupied			—				1,423				1,423				1,423				1,423
Multifamily residential			11,703				9,788				10,271				4,685				5,754
Nonresidential properties			405				—				—				824				828
Construction and land			8,907				14,159				14,158				8,907				8,907
Non-mortgage loans:
Business			276				170				343				180				396
Consumer			—				—				—				—				—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)		$	23,150			$	26,592			$	26,631			$	16,455			$	17,744
Non-accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned		$	284			$	279			$	279			$	278			$	277
Owner occupied			424				431				435				444				448
Multifamily residential			—				—				—				—				—
Nonresidential properties			—				—				—				—				—
Construction and land			—				—				—				—				—
Non-mortgage loans:
Business			—				—				—				—				—
Consumer			—				—				—				—				—
Total non-accruing modifications to borrowers experiencing financial difficulty (1)			708				710				714				722				725
Total non-performing assets (2)		$	23,858			$	27,302			$	27,345			$	17,177			$	18,469
Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned		$	1,779			$	1,792			$	1,807			$	1,821			$	1,830
Owner occupied			2,012				2,038				2,062				2,116				2,171
Multifamily residential			—				—				—				—				—
Nonresidential properties			655				644				652				672				707
Construction and land			—				—				—				—				—
Non-mortgage loans:
Business			203				209				215				222				—
Consumer			—				—				—				—				—
Total accruing modifications to borrowers experiencing financial difficulty (1)		$	4,649			$	4,683			$	4,736			$	4,831			$	4,708
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)		$	28,507			$	31,985			$	32,081			$	22,008			$	23,177
Total non-performing assets to total assets			0.76	%			0.88	%			0.90	%			0.57	%			0.65	%

(1) Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
(2) Includes nonperforming mortgage loans held for sale.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

		For the Three Months Ended June 30,
		2025											2024
		Average											Average
		Outstanding								Average			Outstanding								Average
		Balance				Interest				Yield/Rate (1)			Balance				Interest				Yield/Rate (1)
		(Dollars in thousands)
Interest-earning assets:
Loans (2)		$	2,447,713			$	40,291			6.60	%		$	2,040,149			$	31,281			6.17	%
Securities (3)			449,858				4,246			3.79	%			562,560				5,486			3.92	%
Other (4)			102,252				1,323			5.19	%			141,368				2,025			5.76	%
Total interest-earning assets			2,999,823				45,860			6.13	%			2,744,077				38,792			5.69	%
Non-interest-earning assets			104,059											105,774
Total assets		$	3,103,882										$	2,849,851
Interest-bearing liabilities:
NOW/IOLA		$	68,155			$	100			0.59	%		$	72,932			$	151			0.83	%
Money market			864,688				8,930			4.14	%			599,209				7,209			4.84	%
Savings			104,243				26			0.10	%			111,859				27			0.10	%
Certificates of deposit			772,363				7,382			3.83	%			635,850				6,358			4.02	%
Total deposits			1,809,449				16,438			3.64	%			1,419,850				13,745			3.89	%
Advance payments by borrowers			14,934				2			0.05	%			14,948				2			0.05	%
Borrowings			521,375				4,994			3.84	%			680,421				7,141			4.22	%
Total interest-bearing liabilities			2,345,758				21,434			3.66	%			2,115,219				20,888			3.97	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			203,349				—							188,920				—
Other non-interest-bearing liabilities			36,435				—							49,437				—
Total non-interest-bearing liabilities			239,784				—							238,357				—
Total liabilities			2,585,542				21,434							2,353,576				20,888
Total equity			518,340											496,275
Total liabilities and total equity		$	3,103,882							3.66	%		$	2,849,851							3.97	%
Net interest income						$	24,426										$	17,904
Net interest rate spread (5)										2.47	%										1.72	%
Net interest-earning assets (6)		$	654,065										$	628,858
Net interest margin (7)										3.27	%										2.62	%
Average interest-earning assets to interest-bearing liabilities										127.88	%										129.73	%

   

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

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

		Six Months Ended June 30,
		2025												2024
		Average												Average
		Outstanding								Average				Outstanding								Average
		Balance				Interest				Yield/Rate (1)				Balance				Interest				Yield/Rate (1)
		(Dollars in thousands)
Interest-earning assets:
Loans (2)		$	2,408,788			$	77,427				6.48	%		$	2,009,706			$	61,945				6.20	%
Securities (3)			458,660				8,767				3.85	%			569,397				11,105				3.92	%
Other (4)			143,905				3,663				5.13	%			189,899				5,408				5.73	%
Total interest-earning assets			3,011,353				89,857				6.02	%			2,769,002				78,458				5.70	%
Non-interest-earning assets			106,600												106,172
Total assets		$	3,117,953											$	2,875,174
Interest-bearing liabilities:
NOW/IOLA		$	70,243			$	215				0.62	%		$	77,891			$	369				0.95	%
Money market			846,420				17,341				4.13	%			571,886				13,501				4.75	%
Savings			104,704				52				0.10	%			112,680				55				0.10	%
Certificates of deposit			783,256				15,136				3.90	%			632,689				12,738				4.05	%
Total deposits			1,804,623				32,744				3.66	%			1,395,146				26,663				3.84	%
Advance payments by borrowers			13,696				4				0.06	%			13,917				4				0.06	%
Borrowings			544,857				10,480				3.88	%			725,745				15,064				4.17	%
Total interest-bearing liabilities			2,363,176				43,228				3.69	%			2,134,808				41,731				3.93	%
Non-interest-bearing liabilities:
Non-interest-bearing demand			200,007				—								193,891				—
Other non-interest-bearing liabilities			40,155				—								51,749				—
Total non-interest-bearing liabilities			240,162				—								245,640				—
Total liabilities			2,603,338				43,228								2,380,448				41,731
Total equity			514,615												494,726
Total liabilities and total equity		$	3,117,953								3.69	%		$	2,875,174								3.93	%
Net interest income						$	46,629											$	36,727
Net interest rate spread (5)											2.33	%											1.77	%
Net interest-earning assets (6)		$	648,177											$	634,194
Net interest margin (7)											3.12	%											2.67	%
Average interest-earning assets to
interest-bearing liabilities											127.43	%											129.71	%

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

Ponce Financial Group, Inc. and Subsidiaries
Other Data

		As of
		June 30,				March 31,				December 31,				September 30,				June 30,
		2025				2025				2024				2024				2024
Other Data
Common shares issued			24,886,711				24,886,711				24,886,711				24,886,711				24,886,711
Less treasury shares			901,911				920,520				925,497				1,067,248				1,074,979
Common shares outstanding at end of period			23,984,800				23,966,191				23,961,214				23,819,463				23,811,732
Book value per common share		$	12.34			$	12.05			$	11.71			$	11.74			$	11.45
Tangible book value per common share		$	12.34			$	12.05			$	11.71			$	11.74			$	11.45

Contact:
Sergio J. Vaccaro
sergio.vaccaro@poncebank.net
718-931-9000

Source: Ponce Financial Group, Inc.