Ponce Financial Group, Inc. Reports Second Quarter 2026 Results

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 2nd 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
[email protected]
718-931-9000