NEW YORK, July 27, 2026 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (Nasdaq: PDLB), the holding company for Ponce Bank, National Association ("Ponce Bank" or the “Bank”), today announced results for the second quarter of 2026.

Second Quarter 2026 Highlights (Compared to Prior Periods):

• Net income available to common stockholders was $8.2 million, or $0.35 per diluted share for the three months ended June 30, 2026, as compared to net income available to common stockholders of $8.3 million, or $0.36 per diluted share for the three months ended March 31, 2026 and net income available to common stockholders of $5.8 million, or $0.25 per diluted share for the three months ended June 30, 2025. Total net income for the three months ended June 30, 2026 was $8.5 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended June 30, 2026.
• Included in the $8.2 million of net income available to common stockholders for the second quarter of 2026 results is $51.7 million in total interest and dividend income and $1.5 million in non-interest income, offset by $21.6 million in interest expense, $18.1 million in non-interest expense, $2.8 million in provision for income taxes, $2.1 million in provision for credit losses and $0.3 million in dividends on preferred shares.
• Net interest income of $30.1 million for the second quarter of 2026 increased $1.8 million, or 6.50%, from the prior quarter and increased $5.6 million, or 23.07%, from the same quarter last year. 
• Net interest margin was 3.66% for the second quarter of 2026, versus 3.61% for the prior quarter and 3.27% for the same quarter last year.

Six Months 2026 Highlights (Compared to 2025)

• Net income available to common stockholders was $16.6 million, or $0.71 per diluted share for the six months ended June 30, 2026, as compared to net income available to common stockholders of $11.5 million, or $0.50 per diluted share for the six months ended June 30, 2025. The Company paid dividends of $0.6 million on its preferred stock during each of the six months ended June 30, 2026 and June 30, 2025.
• Net interest income for the six months ended June 30, 2026 was $58.3 million, an increase of $11.7 million, or 25.0%, compared to $46.6 million for the six months ended June 30, 2025.
• Non-interest income for six months ended June 30, 2026 was $3.6 million, a decrease of $0.9 million, or 19.6%, from $4.4 million for the six months ended June 30, 2025.
• Non-interest expense for the six months ended June 30, 2026 was $35.4 million, an increase of $1.6 million, or 4.8%, compared to $33.8 million for the six months ended June 30, 2025.
• Cash and equivalents were $140.0 million as of June 30, 2026, an increase of $13.9 million, or 10.98%, from $126.2 million as of December 31, 2025.
• Securities totaled $338.4 million as of June 30, 2026, a decrease of $26.8 million, or 7.34%, from $365.2 million as of December 31, 2025 primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of $3.0 million.
• Net loans receivable were $2.88 billion as of June 30, 2026, an increase of $280.5 million, or 10.79%, from $2.60 billion as of December 31, 2025.
• Deposits were $2.27 billion as of June 30, 2026, an increase of $225.2 million, or 11.00%, from $2.05 billion as of December 31, 2025.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “The consistent execution of our strategy continues to produce strong growth and financial results. Our diluted earnings per share of $0.71 year to date are up 42% versus the same period last year and our book value per share of $13.89 is up $1.55 or 13% over the same period. Net interest margin is up 5 basis points versus last quarter and 39 basis points versus the same quarter last year. Our capital ratios continue to be well in excess of regulatory requirements. We remain committed to the communities we serve, and we’ll continue investing in our people and in technology to improve our efficiency.”  

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We’re pleased with our strong loan and deposit growth this quarter. We’ve filed our 2^nd quarter of 2026 QSR (Quarterly Supplemental Report) and believe we have met the necessary lending conditions to repurchase our Preferred Stock under the terms of the ECIP Purchase Option Agreement that we previously entered into with the U.S. Department of the Treasury in late 2024. We are excited about this milestone and the possibilities that the repurchase regulatory process will bring to the Company.”  

ECIP

The consummation of any such repurchase of our Preferred Stock is subject to the satisfaction of additional conditions, including satisfying certain eligibility criteria. Although the Company currently expects that it will satisfy all other necessary conditions, there can be no assurance if and when such repurchase will be consummated with Treasury.  

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,
	2026				2026				2025				2025				2025
Performance Ratios:
Return on average assets(1)		1.00	%			1.07	%			1.26	%			0.82	%			0.79	%
Return on common equity(1)		9.81	%			10.37	%			12.50	%			8.10	%			7.88	%
Net interest margin(1) (2)		3.66	%			3.61	%			3.57	%			3.30	%			3.27	%
Non-interest expense to average assets(1)		2.14	%			2.14	%			2.06	%			2.10	%			2.18	%
Efficiency ratio(3)		57.41	%			56.96	%			52.95	%			62.15	%			63.69	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)		20.00	%			21.23	%			23.00	%			24.08	%			22.65	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)		11.51	%			12.11	%			12.98	%			13.39	%			12.49	%
Tier 1 capital to total assets (Ponce Financial Group)		16.85	%			17.22	%			17.27	%			17.33	%			17.13	%
Total capital to risk-weighted assets (Bank only)		18.88	%			20.00	%			21.63	%			21.79	%			21.22	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		17.87	%			18.97	%			20.53	%			20.66	%			20.15	%
Tier 1 capital to total assets (Bank only)		15.81	%			16.09	%			16.12	%			16.08	%			15.99	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.95	%			0.96	%			0.97	%			0.98	%			0.97	%
Allowance for credit losses on loans as a percentage of nonperforming loans		116.91	%			128.93	%			94.74	%			88.88	%			101.01	%
Net (charge-offs) recoveries to average outstanding loans(1)		(0.05	%)			(0.08	%)			(0.13	%)			(0.03	%)			(0.04	%)
Non-performing loans as a percentage of total assets		0.67	%			0.62	%			0.83	%			0.88	%			0.76	%
Other:
Number of offices		17				17				17				18				17
Number of full-time equivalent employees		229				218				216				209				206

(1) Annualized.
(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, 2026 was $8.5 million compared to net income of $8.6 million for the three months ended March 31, 2026 and net income of $6.1 million for the three months ended June 30, 2025.

The $0.1 million decrease of net income for the three months ended June 30, 2026 compared to the three months ended March 31, 2026 was attributed mainly to an increase of $0.9 million non-interest expense, a decrease of $0.5 million in non-interest income and an increase of $0.5 million in provision for credit losses, offset by an increase of $1.8 million in net interest income.

The $2.4 million increase of net income for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was largely due to an increase of $5.6 million in net interest income, offset by increases of $1.3 million in non-interest expense, $0.9 million in provision for income taxes and $0.5 million in provision for credit losses and a decrease of $0.5 million in non-interest income recognized in the second quarter of 2025.

Net income for the six months ended June 30, 2026 was $17.1 million compared to net income of $12.1 million for the six months ended June 30, 2025. The $5.1 million increase in net income was attributed mainly to an increase of $11.7 million in net interest income, offset by increases of $2.5 million in provision for credit losses, $1.6 million in non-interest expense, $1.6 million in provision for income taxes and a decrease of $0.9 million in non-interest income.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended June 30, 2026, increased $1.8 million, or 6.50%, to $30.1 million compared to $28.2 million for the three months ended March 31, 2026 and increased $5.6 million, or 23.07%, compared to $24.4 million for the three months ended June 30, 2025.

The $1.8 million increase in net interest income from the three months ended March 31, 2026 was attributable to an increase of $3.0 million in total interest and dividend income, offset by an increase of $1.2 million in total interest expense. The $5.6 million increase in net interest income from the three months ended June 30, 2025 was attributable to an increase of $5.8 million in total interest and dividend income, offset by an increase of $0.2 million in total interest expense.

Net interest income for the six months ended June 30, 2026, increased $11.7 million, or 25.00%, to $58.3 million compared to $46.6 million for the six months ended June 30, 2025. The $11.7 million increase in net interest income from the six months ended June 30, 2025 was attributable to an increase of $10.5 million in total interest and dividend income and a decrease of $1.2 million in total interest expense.

Net interest margin was 3.66% for the three months ended June 30, 2026 compared to 3.61% for the prior quarter, an increase of 5bps and 3.27% for the same period last year, an increase of 39bps.

Net interest margin was 3.64% for the six months ended June 30, 2026 compared to 3.12% for the six months ended June 30, 2025, an increase of 52bps.

Non-interest Income

Non-interest income for the three months ended June 30, 2026, was $1.5 million, a decrease of $0.5 million, or 25.22%, compared to $2.0 million for the three months ended March 31, 2026, and a decrease of $0.5 million, or 25.87%, compared to the three months ended June 30, 2025.

The $0.5 million decrease in non-interest income from the three months ended March 31, 2026 was largely attributable to a decrease of $0.6 million in late and prepayment charges.

The $0.5 million decrease in non-interest income from the three months ended June 30, 2025 was largely attributable to decreases of $0.4 million in late and prepayment charges and $0.4 million in grant income recognized in the second quarter of 2025, offset by an increase of $0.2 million in other non-interest income.

Non-interest income for the six months ended June 30, 2026, was $3.6 million, a decrease of $0.9 million, or 19.64%, compared to $4.4 million for the six months ended June 30, 2025. The $0.9 million decrease in non-interest income from the six months ended June 30, 2025 was largely attributable to decreases of $0.4 million in late and prepayment charges, $0.4 million in income on sale of SBA loans and $0.4 million in grant income recognized in the second quarter of 2025, offset by increases on $0.3 million in other non-interest income and $0.1 million in service charges and fees.

Non-interest Expense

Non-interest expense for the three months ended June 30, 2026 was $18.1 million, an increase of $0.9 million, or 5.19%, compared to $17.2 million for the three months ended March 31, 2026 and an increase of $1.3 million, or 7.50%, compared to $16.9 million for the three months ended June 30, 2025.

The $0.9 million increase in non-interest expense from the three months ended March 31, 2026 was mainly attributable to increases of $0.4 million in compensation and benefits, $0.2 million in occupancy and equipment, $0.2 million in other non-interest expenses and $0.1 million in professional fees.

The $1.3 million increase in non-interest expense from the three months ended June 30, 2025 was mainly attributable to an increase of $1.4 million in compensation and benefits, partially offset by a decrease of $0.1 million in federal deposit insurance and regulatory assessment.

Non-interest expense for the six months ended June 30, 2026 was $35.4 million, an increase of $1.6 million, or 4.79%, compared to $33.8 million for the six months ended June 30, 2025. The $1.6 million increase in non-interest expense from the six months ended June 30, 2025 was mainly attributable to an increase of $2.3 million in compensation and benefits, partially offset by decreases of $0.3 million in direct loan expenses, $0.2 million in occupancy and equipment, $0.2 million in other non-interest expenses and $0.2 million in federal deposit insurance and regulatory assessment.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $26.8 million at June 30, 2026 compared to $23.6 million at March 31, 2026 and $28.5 million at June 30, 2025.

During the three months ended June 30, 2026, a credit loss provision of $2.1 million on loans was recorded, consisting of $1.7 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. During the three months ended March 31, 2026, a credit loss provision of $1.7 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. 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 on loans and $0.3 million charged on the unfunded portion on loans.

During the six months ended June 30, 2026, a credit loss provision of $3.8 million on loans was recorded, consisting of $3.0 million charged on the funded portion and $0.8 million charged on the unfunded portion on loans. During the six months ended June 30, 2025, a credit loss provision of $1.3 million on loans was recorded, consisting of $2.0 million charged on the funded portion on loans and a $0.7 million benefit on the unfunded portion on loans.

Balance Sheet Summary

Total assets increased $270.7 million, or 8.40%, to $3.49 billion as of June 30, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $280.5 million in net loans receivable, $13.9 million in cash and cash equivalents, $2.0 million in accrued interest receivable, $1.5 million in deferred tax assets, $1.4 million in Federal Home Loan Bank of New York stock and $0.1 million in other assets, partially offset by decreases of $19.4 million in held-to-maturity securities, $7.4 million in available-for-sale securities, $1.0 million in premises and equipment, net, $0.5 million in right of use assets and $0.3 million in mortgage loans held for sale, at fair value.

Total liabilities increased $251.3 million, or 9.37%, to $2.93 billion as of June 30, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $225.2 million in deposits, $25.0 million in borrowings and $1.6 million in other liabilities, partially offset by a decrease of $0.5 million in operating lease liabilities.

Total stockholders’ equity increased $19.4 million, or 3.59%, to $561.0 million as of June 30, 2026, from $541.5 million as of December 31, 2025. The $19.4 million increase in stockholders’ equity was largely attributable to $17.1 million in net income, $0.2 million from exercise of stock options, $1.3 million impact to additional paid in capital as a result of share-based compensation, $1.2 million from release of ESOP shares, and $0.1 million in other comprehensive income, offset by $0.6 million related to the dividend paid on preferred shares during the six months ended June 30, 2026.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.’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. N.A. 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, Federal Home Loan Bank stock and Federal Reserve 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, N.A. operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank, N.A.’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 global economy, including negative changes that may arise from armed conflict and geopolitical instability; 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, N.A.’s market area; Ponce Bank, N.A.’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,
	2026				2026				2025				2025				2025
ASSETS
Cash and due from banks:
Cash	$	25,567			$	27,429			$	28,511			$	29,296			$	35,767
Interest-bearing deposits		114,443				89,817				97,643				117,283				90,872
Total cash and cash equivalents		140,010				117,246				126,154				146,579				126,639
Available-for-sale securities, at fair value		84,774				87,150				92,196				94,822				96,562
Held-to-maturity securities, at amortized cost		253,616				263,514				272,982				285,125				336,879
Placement with banks		249				249				249				249				249
Mortgage loans held for sale, at fair value		3,050				2,127				3,388				5,794				5,703
Loans receivable, net		2,879,740				2,698,649				2,599,258				2,490,046				2,458,712
Accrued interest receivable		19,939				19,274				17,905				18,903				19,126
Premises and equipment, net		14,645				15,159				15,638				16,129				16,067
Right of use assets		27,055				27,633				27,583				28,295				28,806
Federal Home Loan Bank of New York stock (FHLBNY), at cost		30,689				28,180				29,309				25,945				26,620
Federal Reserve Bank of New York stock (FRBNY), at cost		10,714				10,706				10,698				—				—
Deferred tax assets		12,979				11,729				11,501				12,402				12,143
Other assets		17,251				19,141				17,109				32,790				26,363
Total assets	$	3,494,711			$	3,300,757			$	3,223,970			$	3,157,079			$	3,153,869
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	2,271,809			$	2,133,795			$	2,046,635			$	2,063,081			$	2,053,151
Borrowings		621,100				571,100				596,100				521,100				536,100
Operating lease liabilities		28,874				29,429				29,353				30,028				30,501
Accrued interest payable		3,837				4,338				3,788				4,372				4,161
Other liabilities		8,121				10,732				6,545				8,663				8,868
Total liabilities		2,933,741				2,749,394				2,682,421				2,627,244				2,632,781
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		(5,738	)			(5,738	)			(6,164	)			(7,270	)			(7,404	)
Additional paid-in-capital		210,339				209,219				208,604				208,909				208,275
Retained earnings		151,887				143,674				135,332				125,477				119,250
Accumulated other comprehensive loss		(10,698	)			(10,680	)			(10,820	)			(11,586	)			(13,047	)
Unearned compensation ─ ESOP		(10,069	)			(10,361	)			(10,652	)			(10,944	)			(11,235	)
Total stockholders' equity		560,970				551,363				541,549				529,835				521,088
Total liabilities and stockholders' equity	$	3,494,711			$	3,300,757			$	3,223,970			$	3,157,079			$	3,153,869

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,
	2026				2026				2025				2025				2025
Interest and dividend income:
Interest on loans receivable	$	46,835			$	43,982			$	43,599			$	41,486			$	40,291
Interest on deposits due from banks		954				770				1,209				978				807
Interest and dividend on securities and FHLBNY stock		3,863				3,910				4,013				4,383				4,762
Total interest and dividend income		51,652				48,662				48,821				46,847				45,860
Interest expense:
Interest on certificates of deposit		6,785				6,415				6,706				6,553				7,382
Interest on other deposits		9,544				8,630				9,106				9,996				9,058
Interest on borrowings		5,262				5,391				5,075				5,050				4,994
Total interest expense		21,591				20,436				20,887				21,599				21,434
Net interest income		30,061				28,226				27,934				25,248				24,426
Provision for credit losses		2,148				1,656				1,078				1,364				1,626
Net interest income after provision for credit losses		27,913				26,570				26,856				23,884				22,800
Non-interest income:
Service charges and fees		600				539				542				539				511
Brokerage commissions		—				—				23				8				—
Late and prepayment charges		138				726				1,173				385				530
Income on sale of mortgage loans		161				120				139				166				169
Grant income		—				—				428				429				428
Other		628				657				1,174				(35	)			422
Total non-interest income		1,527				2,042				3,479				1,492				2,060
Non-interest expense:
Compensation and benefits		9,070				8,663				8,113				7,868				7,627
Occupancy and equipment		3,901				3,672				4,033				3,934				3,907
Data processing expenses		1,195				1,219				1,223				1,296				1,188
Direct loan expenses		187				121				116				155				241
Insurance and surety bond premiums		332				333				324				318				297
Office supplies, telephone and postage		152				193				186				170				174
Professional fees		1,470				1,346				1,392				1,409				1,367
Marketing and promotional expenses		190				228				94				184				266
Federal deposit insurance and regulatory assessment		408				409				97				266				546
Other operating expenses		1,230				1,056				1,056				1,018				1,256
Total non-interest expense		18,135				17,240				16,634				16,618				16,869
Income before income taxes		11,305				11,372				13,701				8,758				7,991
Provision for income taxes		2,810				2,749				3,565				2,250				1,891
Net income	$	8,495			$	8,623			$	10,136			$	6,508			$	6,100
Dividends on preferred shares		282				281				281				281				282
Net income available to common stockholders	$	8,213			$	8,342			$	9,855			$	6,227			$	5,818
Earnings per common share:
Basic	$	0.36			$	0.36			$	0.43			$	0.27			$	0.26
Diluted	$	0.35			$	0.36			$	0.42			$	0.27			$	0.25
Weighted average common shares outstanding:
Basic		23,053,460				22,988,317				22,837,044				22,766,195				22,716,615
Diluted		23,508,153				23,331,314				23,263,708				23,135,448				22,947,769

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

		For the Six Months Ended June 30,
		2026				2025				Variance $				Variance %
Interest and dividend income:
Interest on loans receivable		$	90,817			$	77,427			$	13,390				17.29	%
Interest on deposits due from banks			1,724				2,475				(751	)			(30.34	%)
Interest and dividend on securities and FHLBNY stock			7,773				9,955				(2,182	)			(21.92	%)
Total interest and dividend income			100,314				89,857				10,457				11.64	%
Interest expense:
Interest on certificates of deposit			13,200				15,136				(1,936	)			(12.79	%)
Interest on other deposits			18,174				17,612				562				3.19	%
Interest on borrowings			10,653				10,480				173				1.65	%
Total interest expense			42,027				43,228				(1,201	)			(2.78	%)
Net interest income			58,287				46,629				11,658				25.00	%
Provision for credit losses			3,804				1,341				2,463				183.67	%
Net interest income after provision for credit losses			54,483				45,288				9,195				20.30	%
Non-interest income:
Service charges and fees			1,139				1,036				103				9.94	%
Brokerage commissions			—				4				(4	)			(100.00	%)
Late and prepayment charges			864				1,227				(363	)			(29.58	%)
Income on sale of mortgage loans			281				317				(36	)			(11.36	%)
Income on sale of SBA loans			—				404				(404	)			(100.00	%)
Grant income			—				428				(428	)			(100.00	%)
Other			1,285				1,025				260				25.37	%
Total non-interest income			3,569				4,441				(872	)			(19.64	%)
Non-interest expense:
Compensation and benefits			17,733				15,407				2,326				15.10	%
Occupancy and equipment			7,573				7,820				(247	)			(3.16	%)
Data processing expenses			2,414				2,340				74				3.16	%
Direct loan expenses			308				629				(321	)			(51.03	%)
Insurance and surety bond premiums			665				612				53				8.66	%
Office supplies, telephone and postage			345				344				1				0.29	%
Professional fees			2,816				2,731				85				3.11	%
Marketing and promotional expenses			418				349				69				19.77	%
Federal deposit insurance and regulatory assessments			817				1,007				(190	)			(18.87	%)
Other operating expenses			2,286				2,518				(232	)			(9.21	%)
Total non-interest expense			35,375				33,757				1,618				4.79	%
Income before income taxes			22,677				15,972				6,705				41.98	%
Provision for income taxes			5,559				3,913				1,646				42.06	%
Net income		$	17,118			$	12,059			$	5,059				41.95	%
Dividends on preferred shares			563				563				—				0.00	%
Net income available to common stockholders		$	16,555			$	11,496			$	5,059				44.01	%
Earnings per common share:
Basic		$	0.72			$	0.51			$	0.21				41.18	%
Diluted		$	0.71			$	0.50			$	0.21				42.00	%
Weighted average common shares outstanding:
Basic			23,021,069				22,689,914				331,155				1.46	%
Diluted			23,419,915				22,920,841				499,074				2.18	%

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,
		2026								2026								2025								2025								2025
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential		$	426,343				14.65	%		$	431,377				15.82	%		$	434,374				16.54	%		$	444,602				17.67	%		$	452,350				18.21	%
Multifamily residential			1,057,612				36.35	%			915,333				33.58	%			756,542				28.83	%			688,574				27.39	%			693,670				27.96	%
Nonresidential properties			535,521				18.41	%			534,256				19.60	%			526,210				20.05	%			436,175				17.35	%			404,512				16.30	%
Construction and land			817,151				28.08	%			763,990				28.03	%			854,096				32.54	%			886,369				35.25	%			883,462				35.59	%
Total mortgage loans			2,836,627				97.49	%			2,644,956				97.03	%			2,571,222				97.96	%			2,455,720				97.66	%			2,433,994				98.06	%
Non-mortgage loans:
Business loans			72,438				2.49	%			80,366				2.95	%			53,063				2.02	%			58,012				2.31	%			47,372				1.91	%
Consumer loans			577				0.02	%			596				0.02	%			625				0.02	%			727				0.03	%			840				0.03	%
Total non-mortgage loans			73,015				2.51	%			80,962				2.97	%			53,688				2.04	%			58,739				2.34	%			48,212				1.94	%
Total loans, gross			2,909,642				100.00	%			2,725,918				100.00	%			2,624,910				100.00	%			2,514,459				100.00	%			2,482,206				100.00	%
Net deferred loan origination (fees) costs			(2,348	)							(1,031	)							(203	)							351								606
Allowance for credit losses on loans			(27,554	)							(26,238	)							(25,449	)							(24,764	)							(24,100	)
Loans, net		$	2,879,740							$	2,698,649							$	2,599,258							$	2,490,046							$	2,458,712

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,
	2026				2026				2025				2025				2025
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	26,238			$	25,449			$	24,764			$	24,100			$	22,974
Provision for credit losses on loans		1,669				1,293				1,526				864				1,348
Charge-offs:
Mortgage loans:
1-4 family residential		—				—				(32	)			—				—
Non-mortgage loans:
Business		(354	)			(504	)			(801	)			(200	)			(222	)
Consumer		—				—				(44	)			—				—
Total charge-offs		(354	)			(504	)			(877	)			(200	)			(222	)
Recoveries:
Mortgage loans:
1-4 family residential		1				—				1				—				—
Non-mortgage loans:
Business		—				—				35				—				—
Total recoveries		1				—				36				—				—
Net (charge-offs) recoveries		(353	)			(504	)			(841	)			(200	)			(222	)
Allowance for credit losses on loans at end of the period	$	27,554			$	26,238			$	25,449			$	24,764			$	24,100

Ponce Financial Group, Inc. and Subsidiaries
Deposits

		As of
		June 30,								March 31,								December 31,								September 30,								June 30,
		2026								2026								2025								2025								2025
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Demand		$	251,919				11.10	%		$	241,012				11.29	%		$	208,250				10.18	%		$	192,595				9.34	%		$	197,671				9.63	%
Interest-bearing deposits:
NOW/IOLA accounts			71,987				3.17	%			78,192				3.66	%			84,012				4.10	%			75,051				3.64	%			63,626				3.10	%
Money market accounts (1)			929,002				40.89	%			811,982				38.05	%			779,532				38.09	%			821,844				39.84	%			790,939				38.52	%
Reciprocal deposits			164,883				7.26	%			162,926				7.64	%			152,630				7.46	%			154,548				7.49	%			136,693				6.66	%
Savings accounts (2)			115,233				5.07	%			118,373				5.55	%			117,708				5.75	%			117,401				5.69	%			113,701				5.53	%
Total NOW, money market, reciprocal and savings accounts			1,281,105				56.39	%			1,171,473				54.90	%			1,133,882				55.40	%			1,168,844				56.66	%			1,104,959				53.81	%
Certificates of deposit of $250K or more			194,462				8.56	%			258,093				12.10	%			202,500				9.89	%			209,819				10.17	%			220,671				10.75	%
Brokered certificates of deposit (3)			94,557				4.16	%			54,553				2.56	%			67,942				3.32	%			67,952				3.29	%			69,531				3.39	%
Listing service deposits (3)			994				0.04	%			1,243				0.06	%			4,150				0.20	%			4,150				0.20	%			6,140				0.30	%
All other certificates of deposit less than $250K			448,772				19.75	%			407,421				19.09	%			429,911				21.01	%			419,721				20.34	%			454,179				22.12	%
Total certificates of deposit			738,785				32.51	%			721,310				33.81	%			704,503				34.42	%			701,642				34.00	%			750,521				36.56	%
Total interest-bearing deposits			2,019,890				88.90	%			1,892,783				88.71	%			1,838,385				89.82	%			1,870,486				90.66	%			1,855,480				90.37	%
Total deposits		$	2,271,809				100.00	%		$	2,133,795				100.00	%		$	2,046,635				100.00	%		$	2,063,081				100.00	%		$	2,053,151				100.00	%

(1) At June 30, 2026, there was $50.2 million in brokered deposits. At March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, there were $0.3 million each in brokered deposits.

(2) As of June 30, 2025, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million were reclassified to Deposits.

(3) At June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025. there were no individual listing service deposits amounting to $250,000 or more. At June 30, 2025, there was $1.5 million in individual listing service deposits 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
	June 30,				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential	$	5,843			$	3,158			$	4,427			$	3,176			$	1,859
Multifamily residential		12,133				9,228				13,112				14,202				11,703
Nonresidential properties		—				—				—				—				405
Construction and land		5,040				7,061				8,247				8,907				8,907
Non-mortgage loans:
Business		77				427				667				880				276
Consumer		—				—				—				—				—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)	$	23,093			$	19,874			$	26,453			$	27,165			$	23,150
Non-accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential		475				477				410				698				708
Total non-accruing modifications to borrowers experiencing financial difficulty (1)		475				477				410				698				708
Total non-performing assets(2)	$	23,568			$	20,351			$	26,863			$	27,863			$	23,858
Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential		2,456				2,481				2,574				3,725				3,791
Multifamily residential		—				—				—				—				—
Nonresidential properties		618				613				621				629				655
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		175				185				190				196				203
Consumer		—				—				—				—				—
Total accruing modifications to borrowers experiencing financial difficulty (1)	$	3,249			$	3,279			$	3,385			$	4,550			$	4,649
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)	$	26,817			$	23,630			$	30,248			$	32,413			$	28,507
Total non-performing assets to total assets		0.67	%			0.62	%			0.83	%			0.88	%			0.76	%

(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,
	2026											2025
	Average											Average
	Outstanding								Average			Outstanding								Average
	Balance				Interest				Yield/Rate(1)			Balance				Interest				Yield/Rate(1)
	(Dollars in thousands)
Interest-earning assets:
Loans (2)	$	2,801,281			$	46,835			6.71	%		$	2,447,713			$	40,291			6.60	%
Securities (3)		345,599				3,160			3.67	%			449,858				4,246			3.79	%
Other (4)		146,919				1,657			4.52	%			102,252				1,323			5.19	%
Total interest-earning assets		3,293,799				51,652			6.29	%			2,999,823				45,860			6.13	%
Non-interest-earning assets		98,497											104,059
Total assets	$	3,392,296										$	3,103,882
Interest-bearing liabilities:
NOW/IOLA	$	75,589			$	118			0.63	%		$	68,155			$	100			0.59	%
Money market		1,028,044				9,398			3.67	%			864,688				8,930			4.14	%
Savings (5)		120,801				28			0.09	%			119,177				28			0.10	%
Certificates of deposit		744,298				6,785			3.66	%			772,363				7,382			3.83	%
Total deposits		1,968,732				16,329			3.33	%			1,824,383				16,440			3.61	%
Borrowings		575,496				5,262			3.67	%			521,375				4,994			3.84	%
Total interest-bearing liabilities		2,544,228				21,591			3.40	%			2,345,758				21,434			3.66	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		244,483				—							203,349				—
Other non-interest-bearing liabilities		45,560				—							36,435				—
Total non-interest-bearing liabilities		290,043				—							239,784				—
Total liabilities		2,834,271				21,591							2,585,542				21,434
Total equity		558,025											518,340
Total liabilities and total equity	$	3,392,296							3.40	%		$	3,103,882							3.66	%
Net interest income					$	30,061										$	24,426
Net interest rate spread (6)									2.89	%										2.47	%
Net interest-earning assets (7)	$	749,571										$	654,065
Net interest margin (8)									3.66	%										3.27	%
Average interest-earning assets to interest-bearing liabilities									129.46	%										127.88	%

(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) For the three months ended June 30, 2025, Advance payments by borrowers for taxes and insurance in the amount of $14.9 million, were reclassified to Savings.
(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.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

	For the Six Months Ended June 30,
	2026												2025
	Average												Average
	Outstanding								Average				Outstanding								Average
	Balance				Interest				Yield/Rate(1)				Balance				Interest				Yield/Rate(1)
	(Dollars in thousands)
Interest-earning assets:
Loans (2)	$	2,740,985			$	90,817				6.68	%		$	2,408,788			$	77,427				6.48	%
Securities (3)		352,985				6,407				3.66	%			458,660				8,767				3.85	%
Other (4)		138,299				3,090				4.51	%			143,905				3,663				5.13	%
Total interest-earning assets		3,232,269				100,314				6.26	%			3,011,353				89,857				6.02	%
Non-interest-earning assets		95,873												106,600
Total assets	$	3,328,142											$	3,117,953
Interest-bearing liabilities:
NOW/IOLA	$	76,705			$	252				0.66	%		$	70,243			$	215				0.62	%
Money market		988,744				17,866				3.64	%			846,420				17,341				4.13	%
Savings (5)		120,505				56				0.09	%			118,400				56				0.10	%
Certificates of deposit		731,371				13,200				3.64	%			783,256				15,136				3.90	%
Total deposits		1,917,325				31,374				3.30	%			1,818,319				32,748				3.63	%
Borrowings		579,774				10,653				3.71	%			544,857				10,480				3.88	%
Total interest-bearing liabilities		2,497,099				42,027				3.39	%			2,363,176				43,228				3.69	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		232,834				—								200,007				—
Other non-interest-bearing liabilities		44,804				—								40,155				—
Total non-interest-bearing liabilities		277,638				—								240,162				—
Total liabilities		2,774,737				42,027								2,603,338				43,228
Total equity		553,405												514,615
Total liabilities and total equity	$	3,328,142								3.39	%		$	3,117,953								3.69	%
Net interest income					$	58,287											$	46,629
Net interest rate spread (6)										2.87	%											2.33	%
Net interest-earning assets (7)	$	735,170											$	648,177
Net interest margin (8)										3.64	%											3.12	%
Average interest-earning assets to
interest-bearing liabilities										129.44	%											127.43	%

(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) For the six months ended June 30, 2025, Advance payments by borrowers for taxes and insurance in the amount of $13.7 million, were reclassified to Savings.
(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.

Ponce Financial Group, Inc. and Subsidiaries
Other Data

	As of
	June 30,				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
Other Data
Common shares issued		24,886,711				24,886,711				24,886,711				24,886,711				24,886,711
Less treasury shares		698,810				698,810				750,785				885,586				901,911
Common shares outstanding at end of period		24,187,901				24,187,901				24,135,926				24,001,125				23,984,800
Book value per common share	$	13.89			$	13.49			$	13.12			$	12.70			$	12.34
Tangible book value per common share (1)	$	13.89			$	13.49			$	13.12			$	12.70			$	12.34

(1) Tangible book value per common share is a non-GAAP financial measure and is calculated by dividing tangible common equity by common shares outstanding. Tangible common equity is defined as total shareholders’ equity less goodwill and other intangible assets, net of applicable deferred taxes. The Company believes that tangible book value per common share is a useful measure for investors, regulators, and analysts because it reflects the Company’s capital position excluding the impact of goodwill and other intangible assets, which may not be realizable in a liquidation scenario. This measure is commonly used in the banking industry to assess financial condition and capital adequacy. Tangible book value per common share should not be considered a substitute for book value per common share, which is calculated in accordance with GAAP, and the Company’s definition of tangible book value per common share may differ from similarly titled measures used by other companies. During the periods presented, the Company did not make any adjustments for goodwill and other intangible assets, so tangible book value per common share is equal to the book value per common share as calculated in accordance with GAAP.

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

Source: Ponce Financial Group, Inc.