NEW YORK, April 24, 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 first quarter of 2026.
First Quarter 2026 Highlights (Compared to Prior Periods):
- Net income available to common stockholders was $8.3 million, or $0.36 per diluted share for the three months ended March 31, 2026, as compared to net income available to common stockholders of $9.9 million, or $0.42 per diluted share for the three months ended December 31, 2025 and net income available to common stockholders of $5.7 million, or $0.25 per diluted share for the three months ended March 31, 2025. Total net income for the three months ended March 31, 2026 was $8.6 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended March 31, 2026.
- Included in the $8.3 million of net income available to common stockholders for the first quarter of 2026 results is $48.7 million in total interest and dividend income and $2.0 million in non-interest income, offset by $20.4 million in interest expense, $17.2 million in non-interest expense, $2.7 million in provision for income taxes, $1.7 million in provision for credit losses and $0.3 million in dividends on preferred shares.
- Net interest income of $28.2 million for the first quarter of 2026 increased $0.3 million, or 1.05%, from the prior quarter and increased $6.0 million, or 27.13%, from the same quarter last year.
- Net interest margin was 3.61% for the first quarter of 2026, versus 3.57% for the prior quarter and 2.98% for the same quarter last year.
- Cash and equivalents were $117.2 million as of March 31, 2026, a decrease of $8.9 million, or 7.06%, from $126.2 million as of December 31, 2025.
- Securities totaled $350.7 million as of March 31, 2026, a decrease of $14.5 million, or 3.97%, 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 $2.70 billion as of March 31, 2026, an increase of $99.4 million, or 3.82%, from $2.60 billion as of December 31, 2025.
- Deposits were $2.13 billion as of March 31, 2026, an increase of $87.2 million, or 4.26%, 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 “Our disciplined execution continues to serve Ponce well. Our diluted earnings per share of $0.36 this quarter is up 44% vs the same quarter last year and our book value per share of $13.49 is up $1.44 or 12% over the same period. Net interest margin is up 4 basis points versus last quarter and 63 basis points vs the same quarter last year. Our non-performing assets went down this quarter by 22 basis points and now stand at 62 basis points of total assets. 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 business activity during the quarter and by our loan and deposit growth. We continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program and we’re one quarter away from achieving 16 quarters of a cumulative deep impact lending percentage of more than 60%. After 15 quarters, including the quarter ended March 31, 2026, we are at 82% deep impact lending.”
The table below indicates the Key Metrics at or for the three months ended:
At or for the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Performance Ratios: Return on average assets (1) 1.07% 1.26% 0.82% 0.79% 0.77%Return on common equity (1) 10.37% 12.50% 8.10% 7.88% 7.97%Net interest margin (1) (2) 3.61% 3.57% 3.30% 3.27% 2.98%Non-interest expense to average assets (1) 2.14% 2.06% 2.10% 2.18% 2.19%Efficiency ratio (3) 56.96% 52.95% 62.15% 63.69% 68.70%Capital Ratios: Total capital to risk-weighted assets (Ponce Financial Group) 21.23% 23.00% 24.08% 22.65% 22.84%Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group) 12.11% 12.98% 13.39% 12.49% 12.51%Tier 1 capital to total assets (Ponce Financial Group) 17.22% 17.27% 17.33% 17.13% 16.84%Total capital to risk-weighted assets (Bank only) 20.00% 21.63% 21.79% 21.22% 21.38%Common equity Tier 1 capital to risk-weighted assets (Bank only) 18.97% 20.53% 20.66% 20.15% 20.35%Tier 1 capital to total assets (Bank only) 16.09% 16.12% 16.08% 15.99% 15.61%Asset Quality Ratios: Allowance for credit losses on loans as a percentage of total loans 0.96% 0.97% 0.98% 0.97% 0.96%Allowance for credit losses on loans as a percentage of nonperforming loans 128.93% 94.74% 88.88% 101.01% 84.15%Net (charge-offs) recoveries to average outstanding loans (1) (0.08%) (0.13%) (0.03%) (0.04%) (0.04%)Non-performing loans as a percentage of total assets 0.62% 0.83% 0.88% 0.76% 0.88%Other: Number of offices 17 17 18 17 18 Number of full-time equivalent employees 218 216 209 206 211(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 March 31, 2026 was $8.6 million compared to net income of $10.1 million for the three months ended December 31, 2025 and net income of $6.0 million for the three months ended March 31, 2025.
The $1.5 million decrease of net income for the three months ended March 31, 2026 compared to the three months ended December 31, 2025 was attributed mainly to a decrease of $1.4 million in non-interest income and increases of $0.6 million non-interest expense and $0.6 million in provision for credit losses, offset by an increase of $0.3 million in net interest income and a decrease of $0.8 million in provision for income taxes.
The $2.7 million increase of net income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was largely due to an increase of $6.0 million in net interest income, offset by increases of $1.9 million in provision for credit losses, $0.7 million in provision for income taxes and $0.4 million in non-interest expense and a decrease of $0.3 million in non-interest income.
Net Interest Income and Net Interest Margin
Net interest income for the three months ended March 31, 2026, increased $0.3 million, or 1.05%, to $28.2 million compared to $27.9 million for the three months ended December 31, 2025 and increased $6.0 million, or 27.13%, compared to $22.2 million for the three months ended March 31, 2025.
The $0.3 million increase in net interest income from the three months ended December 31, 2025 was attributable to decreases of $0.5 million in total interest expense and $0.2 million in total interest and dividend income. The $6.0 million increase in net interest income from the three months ended March 31, 2025 was attributable to an increase of $4.7 million in total interest and dividend income and a decrease of $1.4 million in total interest expense.
Net interest margin was 3.61% for the three months ended March 31, 2026 compared to 3.57% for the prior quarter, an increase of 4bps and 2.98% for the same period last year, an increase of 63bps.
Non-interest Income
Non-interest income for the three months ended March 31, 2026, was $2.0 million, a decrease of $1.4 million, or 41.30%, compared to $3.5 million for the three months ended December 31, 2025, a decrease of $0.3 million, or 14.24%, compared to the three months ended March 31, 2025.
The $1.4 million decrease in non-interest income from the three months ended December 31, 2025 was largely attributable to a decrease of $0.5 million in other non-interest income, grant income of $0.4 million which had been recognized in the prior quarter and a decrease of $0.4 million in late and prepayment charges.
The $0.3 million decrease in non-interest income from the three months ended March 31, 2025 was largely attributable to a decrease of $0.4 million in income on sale of SBA loans.
Non-interest Expense
Non-interest expense for the three months ended March 31, 2026 was $17.2 million, an increase of $0.6 million, or 3.64%, compared to $16.6 million for the three months ended December 31, 2025 and an increase of $0.4 million, or 2.08%, compared to $16.9 million for the three months ended March 31, 2025.
The $0.6 million increase in non-interest expense from the three months ended December 31, 2025 was mainly attributable to increases of $0.6 million in compensation and benefits, $0.3 million in federal deposit insurance and regulatory assessment and $0.1 million in marketing and promotional expenses, partially offset by a decrease of $0.4 million in occupancy and equipment.
The $0.4 million increase in non-interest expense from the three months ended March 31, 2025 was mainly attributable to increases of $0.8 million in compensation and benefit and $0.1 million in marketing and promotional expenses, partially offset by decreases of $0.3 million in direct loan expenses, $0.2 million in occupancy and equipment and $0.2 million in other operating expenses.
Credit Quality:
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $23.6 million at March 31, 2026 compared to $30.2 million at December 31, 2025 and $32.0 million at March 31, 2025.
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 December 31, 2025, a credit loss provision of $1.1 million on loans was recorded, consisting of $1.5 million charged on the funded portion and $0.4 million benefit 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 on loans and a benefit of $1.0 million on the unfunded portion on loans.
Balance Sheet Summary
Total assets increased $76.8 million, or 2.38%, to $3.30 billion as of March 31, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $99.4 million in net loans receivable, $2.0 million in other assets, $1.4 million in accrued interest receivable and $0.2 million in deferred tax assets, partially offset by decreases of $9.5 million in held-to-maturity securities, $8.9 million in cash and cash equivalents, $5.0 million in available-for-sale securities, $1.3 million in mortgage loans held for sale, $1.1 million in Federal Home Loan Bank of New York stock and $0.5 million in premises and equipment, net.
Total liabilities increased $67.0 million, or 2.50%, to $2.75 billion as of March 31, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $87.2 million in deposits, $4.2 million in other liabilities and $0.6 million in accrued interest payable, partially offset by a decrease of $25.0 million in borrowings.
Total stockholders’ equity increased $9.8 million, or 1.81%, to $551.4 million as of March 31, 2026, from $541.5 million as of December 31, 2025. The $9.8 million increase in stockholders’ equity was largely attributable to $8.6 million in net income, $0.6 million impact to additional paid in capital as a result of share-based compensation, $0.6 million from release of ESOP shares and $0.2 million from exercise of stock options and $0.1 million in other comprehensive income, offset by $0.3 million related to the dividend paid on preferred shares during the quarter ended March 31, 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.
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data) As of March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 ASSETS Cash and due from banks: Cash$27,429 $28,511 $29,296 $35,767 $32,113 Interest-bearing deposits 89,817 97,643 117,283 90,872 97,780 Total cash and cash equivalents 117,246 126,154 146,579 126,639 129,893 Available-for-sale securities, at fair value 87,150 92,196 94,822 96,562 103,570 Held-to-maturity securities, at amortized cost 263,514 272,982 285,125 336,879 358,024 Placement with banks 249 249 249 249 249 Mortgage loans held for sale, at fair value 2,127 3,388 5,794 5,703 8,567 Loans receivable, net 2,698,649 2,599,258 2,490,046 2,458,712 2,370,931 Accrued interest receivable 19,274 17,905 18,903 19,126 19,008 Premises and equipment, net 15,159 15,638 16,129 16,067 16,417 Right of use assets 27,633 27,583 28,295 28,806 29,496 Federal Home Loan Bank of New York stock (FHLBNY), at cost 28,180 29,309 25,945 26,620 25,807 Federal Reserve Bank of New York stock (FRBNY), at cost 10,706 10,698 — — — Deferred tax assets 11,729 11,501 12,402 12,143 11,629 Other assets 19,141 17,109 32,790 26,363 16,245 Total assets$3,300,757 $3,223,970 $3,157,079 $3,153,869 $3,089,836 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits$2,133,795 $2,046,635 $2,063,081 $2,053,151 $2,017,848 Borrowings 571,100 596,100 521,100 536,100 521,100 Operating lease liabilities 29,429 29,353 30,028 30,501 31,126 Accrued interest payable 4,338 3,788 4,372 4,161 4,628 Other liabilities 10,732 6,545 8,663 8,868 1,248 Total liabilities 2,749,394 2,682,421 2,627,244 2,632,781 2,575,950 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) (6,164) (7,270) (7,404) (7,641)Additional paid-in-capital 209,219 208,604 208,909 208,275 207,888 Retained earnings 143,674 135,332 125,477 119,250 113,432 Accumulated other comprehensive loss (10,680) (10,820) (11,586) (13,047) (13,515)Unearned compensation ─ ESOP (10,361) (10,652) (10,944) (11,235) (11,527)Total stockholders' equity 551,363 541,549 529,835 521,088 513,886 Total liabilities and stockholders' equity$3,300,757 $3,223,970 $3,157,079 $3,153,869 $3,089,836
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Interest and dividend income: Interest on loans receivable$43,982 $43,599 $41,486 $40,291 $37,136 Interest on deposits due from banks 770 1,209 978 807 1,668 Interest and dividend on securities and FHLBNY stock 3,910 4,013 4,383 4,762 5,193 Total interest and dividend income 48,662 48,821 46,847 45,860 43,997 Interest expense: Interest on certificates of deposit 6,415 6,706 6,553 7,382 7,754 Interest on other deposits 8,630 9,106 9,996 9,058 8,554 Interest on borrowings 5,391 5,075 5,050 4,994 5,486 Total interest expense 20,436 20,887 21,599 21,434 21,794 Net interest income 28,226 27,934 25,248 24,426 22,203 Provision (benefit) for credit losses 1,656 1,078 1,364 1,626 (285)Net interest income after provision (benefit) for credit losses 26,570 26,856 23,884 22,800 22,488 Non-interest income: Service charges and fees 539 542 539 511 525 Brokerage commissions — 23 8 — 4 Late and prepayment charges 726 1,173 385 530 697 Income on sale of mortgage loans 120 139 166 169 148 Income on sale of SBA loans — — — — 404 Grant income — 428 429 428 — Other 657 1,174 (35) 422 603 Total non-interest income 2,042 3,479 1,492 2,060 2,381 Non-interest expense: Compensation and benefits 8,663 8,113 7,868 7,627 7,780 Occupancy and equipment 3,672 4,033 3,934 3,907 3,913 Data processing expenses 1,219 1,223 1,296 1,188 1,152 Direct loan expenses 121 116 155 241 388 Insurance and surety bond premiums 333 324 318 297 315 Office supplies, telephone and postage 193 186 170 174 170 Professional fees 1,346 1,392 1,409 1,367 1,364 Marketing and promotional expenses 228 94 184 266 83 Federal deposit insurance and regulatory assessment 409 97 266 546 461 Other operating expenses 1,056 1,056 1,018 1,256 1,262 Total non-interest expense 17,240 16,634 16,618 16,869 16,888 Income before income taxes 11,372 13,701 8,758 7,991 7,981 Provision for income taxes 2,749 3,565 2,250 1,891 2,022 Net income$8,623 $10,136 $6,508 $6,100 $5,959 Dividends on preferred shares 281 281 281 282 281 Net income available to common stockholders$8,342 $9,855 $6,227 $5,818 $5,678 Earnings per common share: Basic$0.36 $0.43 $0.27 $0.26 $0.25 Diluted$0.36 $0.42 $0.27 $0.25 $0.25 Weighted average common shares outstanding: Basic 22,988,317 22,837,044 22,766,195 22,716,615 22,662,916 Diluted 23,331,314 23,263,708 23,135,448 22,947,769 22,876,740
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
For the Three Months Ended March 31, 2026 2025 Variance $ Variance % Interest and dividend income: Interest on loans receivable $43,982 $37,136 $6,846 18.43%Interest on deposits due from banks 770 1,668 (898) (53.84%)Interest and dividend on securities and FHLBNY stock 3,910 5,193 (1,283) (24.71%)Total interest and dividend income 48,662 43,997 4,665 10.60%Interest expense: Interest on certificates of deposit 6,415 7,754 (1,339) (17.27%)Interest on other deposits 8,630 8,554 76 0.89%Interest on borrowings 5,391 5,486 (95) (1.73%)Total interest expense 20,436 21,794 (1,358) (6.23%)Net interest income 28,226 22,203 6,023 27.13%Provision (benefit) for credit losses 1,656 (285) 1,941 (681.05%)Net interest income after provision (benefit) for credit losses 26,570 22,488 4,082 18.15%Non-interest income: Service charges and fees 539 525 14 2.67%Brokerage commissions — 4 (4) (100.00%)Late and prepayment charges 726 697 29 4.16%Income on sale of mortgage loans 120 148 (28) (18.92%)Income on sale of SBA loans — 404 (404) (100.00%)Other 657 603 54 8.96%Total non-interest income 2,042 2,381 (339) (14.24%)Non-interest expense: Compensation and benefits 8,663 7,780 883 11.35%Occupancy and equipment 3,672 3,913 (241) (6.16%)Data processing expenses 1,219 1,152 67 5.82%Direct loan expenses 121 388 (267) (68.81%)Insurance and surety bond premiums 333 315 18 5.71%Office supplies, telephone and postage 193 170 23 13.53%Professional fees 1,346 1,364 (18) (1.32%)Marketing and promotional expenses 228 83 145 174.70%Federal deposit insurance and regulatory assessments 409 461 (52) (11.28%)Other operating expenses 1,056 1,262 (206) (16.32%)Total non-interest expense 17,240 16,888 352 2.08%Income before income taxes 11,372 7,981 3,391 42.49%Provision for income taxes 2,749 2,022 727 35.95%Net income $8,623 $5,959 $2,664 44.71%Dividends on preferred shares 281 281 — 0.00%Net income available to common stockholders $8,342 $5,678 $2,664 46.92%Earnings per common share: Basic $0.36 $0.25 $0.11 44.00%Diluted $0.36 $0.25 $0.11 44.00%Weighted average common shares outstanding: Basic 22,988,317 22,662,916 325,401 1.44%Diluted 23,331,314 22,876,740 454,574 1.99%
Loans Receivable excluding Mortgage Loans Held for Sale
As of March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (Dollars in thousands) Mortgage loans: 1-4 family residential $431,377 15.82% $434,374 16.54% $444,602 17.67% $452,350 18.21% $463,542 19.37%Multifamily residential 915,333 33.58% 756,542 28.83% 688,574 27.39% 693,670 27.96% 675,541 28.24%Nonresidential properties 534,256 19.60% 526,210 20.05% 436,175 17.35% 404,512 16.30% 390,681 16.33%Construction and land 763,990 28.03% 854,096 32.54% 886,369 35.25% 883,462 35.59% 815,425 34.08%Total mortgage loans 2,644,956 97.03% 2,571,222 97.96% 2,455,720 97.66% 2,433,994 98.06% 2,345,189 98.02%Non-mortgage loans: Business loans 80,366 2.95% 53,063 2.02% 58,012 2.31% 47,372 1.91% 46,329 1.94%Consumer loans 596 0.02% 625 0.02% 727 0.03% 840 0.03% 997 0.04%Total non-mortgage loans 80,962 2.97% 53,688 2.04% 58,739 2.34% 48,212 1.94% 47,326 1.98%Total loans, gross 2,725,918 100.00% 2,624,910 100.00% 2,514,459 100.00% 2,482,206 100.00% 2,392,515 100.00%Net deferred loan origination costs (1,031) (203) 351 606 1,390 Allowance for credit losses on loans (26,238) (25,449) (24,764) (24,100) (22,974) Loans, net $2,698,649 $2,599,258 $2,490,046 $2,458,712 $2,370,931
Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans
For the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 (Dollars in thousands) Allowance for credit losses on loans at beginning
of the period$25,449 $24,764 $24,100 $22,974 $22,502 Provision for credit losses on loans 1,293 1,526 864 1,348 731 Charge-offs: Mortgage loans: 1-4 family residential — (32) — — (38)Non-mortgage loans: Business (504) (801) (200) (222) (222)Consumer — (44) — — (3)Total charge-offs (504) (877) (200) (222) (263)Recoveries: Mortgage loans: 1-4 family residential — 1 — — — Non-mortgage loans: Business — 35 — — 4 Consumer — — — — — Total recoveries — 36 — — 4 Net (charge-offs) recoveries (504) (841) (200) (222) (259)Allowance for credit losses on loans at end of the period$26,238 $25,449 $24,764 $24,100 $22,974
Ponce Financial Group, Inc. and Subsidiaries
Deposits
As of March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (Dollars in thousands) Demand $241,012 11.29% $208,250 10.18% $192,595 9.34% $197,671 9.63% $212,139 10.51%Interest-bearing deposits: NOW/IOLA accounts 78,192 3.66% 84,012 4.10% 75,051 3.64% 63,626 3.10% 74,430 3.69%Money market accounts 811,982 38.05% 779,532 38.09% 821,844 39.84% 790,939 38.52% 692,753 34.33%Reciprocal deposits 162,926 7.64% 152,630 7.46% 154,548 7.49% 136,693 6.66% 141,838 7.03%Savings accounts (1) 118,373 5.55% 117,708 5.75% 117,401 5.69% 113,701 5.53% 119,023 5.90%Total NOW, money market, reciprocal and savings accounts 1,171,473 54.90% 1,133,882 55.40% 1,168,844 56.66% 1,104,959 53.81% 1,028,044 50.95%Certificates of deposit of $250K or more 258,093 12.10% 202,500 9.89% 209,819 10.17% 220,671 10.75% 219,721 10.89%Brokered certificates of deposit (2) 54,553 2.56% 67,942 3.32% 67,952 3.29% 69,531 3.39% 84,531 4.19%Listing service deposits (2) 1,243 0.06% 4,150 0.20% 4,150 0.20% 6,140 0.30% 6,140 0.30%All other certificates of deposit less than $250K 407,421 19.09% 429,911 21.01% 419,721 20.34% 454,179 22.12% 467,273 23.16%Total certificates of deposit 721,310 33.81% 704,503 34.42% 701,642 34.00% 750,521 36.56% 777,665 38.54%Total interest-bearing deposits 1,892,783 88.71% 1,838,385 89.82% 1,870,486 90.66% 1,855,480 90.37% 1,805,709 89.49%Total deposits $2,133,795 100.00% $2,046,635 100.00% $2,063,081 100.00% $2,053,151 100.00% $2,017,848 100.00%
(1) As of June 30, 2025 and March 31, 2025, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million and $12.9 million, respectively, were reclassified to Deposits.
(2) There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.
Nonperforming Assets
As of March 31, December
31, September
30, June
30, March
31, 2026 2025 2025 2025 2025 (Dollars in thousands) Non-accrual loans: Mortgage loans: 1-4 family residential$3,158 $4,427 $3,176 $1,859 $2,475 Multifamily residential 9,228 13,112 14,202 11,703 9,788 Nonresidential properties — — — 405 — Construction and land 7,061 8,247 8,907 8,907 14,159 Non-mortgage loans: Business 427 667 880 276 170 Consumer — — — — — Total non-accrual loans (not including non-accruing modifications to borrowers
experiencing financial difficulty) (1)$19,874 $26,453 $27,165 $23,150 $26,592 Non-accruing modifications to borrowers experiencing financial difficulty (1): Mortgage loans: 1-4 family residential 477 410 698 708 710 Total non-accruing modifications to borrowers experiencing financial difficulty (1) 477 410 698 708 710 Total non-performing assets (2)$20,351 $26,863 $27,863 $23,858 $27,302 Accruing modifications to borrowers experiencing financial difficulty (1): Mortgage loans: 1-4 family residential 2,481 2,574 3,725 3,791 3,830 Multifamily residential — — — — — Nonresidential properties 613 621 629 655 644 Construction and land — — — — — Non-mortgage loans: Business 185 190 196 203 209 Consumer — — — — — Total accruing modifications to borrowers experiencing financial difficulty (1)$3,279 $3,385 $4,550 $4,649 $4,683 Total non-performing assets and accruing modifications to borrowers
experiencing financial difficulty (1)$23,630 $30,248 $32,413 $28,507 $31,985 Total non-performing assets to total assets 0.62% 0.83% 0.88% 0.76% 0.87%
(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.
Average Balance Sheets
For the Three Months Ended March 31, 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)$2,680,018 $43,982 6.66% $2,369,433 $37,136 6.36%Securities (3) 360,452 3,248 3.65% 467,560 4,521 3.92%Other (4) 129,585 1,432 4.48% 186,021 2,340 5.10%Total interest-earning assets 3,170,055 48,662 6.23% 3,023,014 43,997 5.90%Non-interest-earning assets 93,219 109,166 Total assets$3,263,274 $3,132,180 Interest-bearing liabilities: NOW/IOLA$77,833 $134 0.70% $72,354 $115 0.64%Money market 949,007 8,468 3.62% 827,948 8,411 4.12%Savings (5) 120,205 28 0.09% 117,616 28 0.10%Certificates of deposit 718,301 6,415 3.62% 794,270 7,754 3.96%Total deposits 1,865,346 15,045 3.27% 1,812,188 16,308 3.65%Borrowings 584,100 5,391 3.74% 568,601 5,486 3.91%Total interest-bearing liabilities 2,449,446 20,436 3.38% 2,380,789 21,794 3.71%Non-interest-bearing liabilities: Non-interest-bearing demand 221,056 — 196,627 — Other non-interest-bearing liabilities 44,038 — 43,915 — Total non-interest-bearing liabilities 265,094 — 240,542 — Total liabilities 2,714,540 20,436 2,621,331 21,794 Total equity 548,735 510,849 Total liabilities and total equity$3,263,275 3.38% $3,132,180 3.71%Net interest income $28,226 $22,203 Net interest rate spread (6) 2.85% 2.19%Net interest-earning assets (7)$720,609 $642,225 Net interest margin (8) 3.61% 2.98%Average interest-earning assets to interest-bearing liabilities 129.42% 126.98%
(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 March 31, 2025, advance payments by borrowers for taxes and insurance in the amounts of $12.4 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.
Other Data
As of March 31, December 31, September
30, June 30, March 31, 2026 2025 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 698,810 750,785 885,586 901,911 920,520 Common shares outstanding at end of period 24,187,901 24,135,926 24,001,125 23,984,800 23,966,191 Book value per common share$13.49 $13.12 $12.70 $12.34 $12.05 Tangible book value per common share (1)$13.49 $13.12 $12.70 $12.34 $12.05
Contact:
Sergio Vaccaro
[email protected]
718-931-9000