Ponce Bank Received $35 Million in Deposits as part of the Banking Development District Program
Ponce Financial Group, Inc. (NASDAQ: PDLB) announced that its Ponce Bank Westchester Avenue Branch in the Bronx has been approved as a Banking Development District (BDD). This designation, covering Bronx Community District 9, is part of New York State's program to support bank branches in underserved areas. As a result, Ponce Bank received $35 million in program deposits on July 30, 2024.
The bank has also applied for designation under the New York City BDD program, which could potentially bring in an additional $20 million in subsidized deposits. Ponce Bank aims to use this designation to expand access to affordable financial services, offer competitive products, and provide financial education to local residents and small businesses in the community.
Ponce Financial Group, Inc. (NASDAQ: PDLB) ha annunciato che la sua filiale Ponce Bank Westchester Avenue nel Bronx è stata approvata come Distretto di Sviluppo Bancario (BDD). Questa designazione, che copre il Distretto Comunitario 9 del Bronx, fa parte del programma dello Stato di New York per sostenere le filiali bancarie in aree svantaggiate. Di conseguenza, Ponce Bank ha ricevuto $35 milioni in depositi programmati il 30 luglio 2024.
La banca ha anche fatto richiesta di designazione sotto il programma BDD della città di New York, il che potrebbe portare a ulteriori $20 milioni in depositi sovvenzionati. Ponce Bank intende utilizzare questa designazione per ampliare l'accesso a servizi finanziari accessibili, offrire prodotti competitivi e fornire educazione finanziaria ai residenti locali e alle piccole imprese della comunità.
Ponce Financial Group, Inc. (NASDAQ: PDLB) anunció que su sucursal Ponce Bank Westchester Avenue en el Bronx ha sido aprobada como Distrito de Desarrollo Bancario (BDD). Esta designación, que abarca el Distrito Comunitario 9 del Bronx, forma parte del programa del Estado de Nueva York para apoyar las sucursales bancarias en áreas desatendidas. Como resultado, Ponce Bank recibió $35 millones en depósitos programados el 30 de julio de 2024.
El banco también ha solicitado la designación bajo el programa BDD de la ciudad de Nueva York, lo que podría traer $20 millones adicionales en depósitos subsidiados. Ponce Bank tiene como objetivo utilizar esta designación para expandir el acceso a servicios financieros asequibles, ofrecer productos competitivos y proporcionar educación financiera a los residentes locales y pequeñas empresas de la comunidad.
Ponce Financial Group, Inc. (NASDAQ: PDLB)는 브롱크스의 Ponce Bank Westchester Avenue 지점이 은행 개발 구역(BDD)으로 승인되었다고 발표했습니다. 이 지정은 브롱크스 커뮤니티 구역 9을 포함하며, 뉴욕 주의 은행 지점을 취약 지역에서 지원하기 위한 프로그램의 일환입니다. 그 결과로, Ponce Bank는 2024년 7월 30일에 $3,500만의 프로그램 예치금을 받았습니다.
은행은 뉴욕시 BDD 프로그램에 대한 지정을 신청했으며, 이는 추가로 $2,000만의 보조금 예치금을 유치할 수 있습니다. Ponce Bank는 이 지정을 활용하여 저렴한 금융 서비스에 대한 접근을 확대하고, 경쟁력 있는 제품을 제공하며, 지역 주민 및 소규모 기업에 재정 교육을 제공하는 것을 목표로 하고 있습니다.
Ponce Financial Group, Inc. (NASDAQ: PDLB) a annoncé que sa succursale Ponce Bank Westchester Avenue dans le Bronx a été approuvée en tant que District de Développement Bancaire (BDD). Cette désignation, couvrant le District Communautaire 9 du Bronx, fait partie du programme de l'État de New York visant à soutenir les succursales bancaires dans les zones mal desservies. En conséquence, Ponce Bank a reçu 35 millions de dollars en dépôts de programme le 30 juillet 2024.
La banque a également demandé une désignation dans le cadre du programme BDD de la ville de New York, ce qui pourrait potentiellement apporter 20 millions de dollars supplémentaires en dépôts subventionnés. Ponce Bank vise à utiliser cette désignation pour élargir l'accès à des services financiers abordables, offrir des produits compétitifs et fournir une éducation financière aux résidents locaux ainsi qu'aux petites entreprises de la communauté.
Ponce Financial Group, Inc. (NASDAQ: PDLB) hat bekannt gegeben, dass seine Filiale Ponce Bank Westchester Avenue im Bronx als Bankentwicklungsbezirk (BDD) genehmigt wurde. Diese Bezeichnung, die den Bronx Community District 9 umfasst, ist Teil des Programms des Bundesstaates New York zur Unterstützung von Bankfilialen in unterversorgten Gebieten. Infolgedessen erhielt Ponce Bank am 30. Juli 2024 35 Millionen Dollar an Programmeinlagen.
Die Bank hat ebenfalls einen Antrag auf Bezeichnung im Rahmen des NYC BDD-Programms gestellt, was potenziell zu zusätzlichen 20 Millionen Dollar an subventionierten Einlagen führen könnte. Ponce Bank verfolgt das Ziel, diese Bezeichnung zu nutzen, um den Zugang zu erschwinglichen Finanzdienstleistungen zu erweitern, wettbewerbsfähige Produkte anzubieten und den lokalen Bewohnern sowie kleinen Unternehmen in der Gemeinschaft finanzielle Bildung bereitzustellen.
- Received $35 million in deposits through the Banking Development District Program
- Potential for additional $20 million in subsidized deposits from New York City BDD program
- Expansion of services in underserved areas, potentially increasing customer base
- Opportunity to offer competitive, affordable financial products to local residents and businesses
- None.
Insights
The $35 million deposit from the Banking Development District (BDD) Program represents a significant boost to Ponce Bank's liquidity. This influx of funds could potentially enhance the bank's lending capacity and overall financial stability. The possibility of an additional $20 million from New York City's BDD program further amplifies this positive impact.
From an investor's perspective, this development is favorable as it demonstrates Ponce Bank's ability to leverage government programs effectively. The BDD designation also positions the bank to expand its customer base in underserved areas, potentially leading to long-term growth in deposits and loan originations. However, it's important to note that these subsidized deposits may come with obligations to provide specific services or meet certain performance metrics, which could impact profitability in the short term.
Overall, this news suggests a positive outlook for Ponce Financial Group (NASDAQ: PDLB), as it strengthens the bank's position in a key market and aligns with broader industry trends towards financial inclusion.
The approval of Ponce Bank's Westchester Avenue Branch as a Banking Development District (BDD) is a significant milestone for both the bank and the community. This designation in Bronx Community District 9 addresses a critical need for banking services in an underserved area, encompassing Soundview, Parkchester and Castle Hill neighborhoods.
The BDD program's public-private collaboration model is particularly noteworthy. It not only brings essential financial services to the community but also promotes financial education and empowerment. This approach can lead to improved financial literacy and economic stability in the area, potentially reducing reliance on predatory financial services.
For Ponce Bank, this initiative aligns with growing ESG (Environmental, Social and Governance) trends in the financial sector. By demonstrating a commitment to community development, the bank may enhance its reputation and attract socially conscious investors. However, the success of this venture will depend on the bank's ability to tailor its services to the specific needs of the local population and effectively engage with community stakeholders.
NEW YORK, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today reported that the Ponce Bank Westchester Avenue Branch located at 2244 Westchester Avenue in the Castle Hill area of the Bronx was approved as a Banking Development District ("BDD"). The designation covers Bronx Community District 9 and includes the neighborhoods of Soundview, Parkchester, and Castle Hill.
New York State’s BDD Program, administered by the Department of Financial Services ("DFS"), supports the establishment of bank and credit union branches in areas across New York State where there is a demonstrated need for banking services. The program is a public-private collaboration among DFS, local communities, and financial institutions. Strong community support from local organizations, residents, small businesses, and elected officials is a critical piece of establishing a BDD.
Participating financial institutions open or maintain a branch and offer affordable and accessible products and services in an underserved community. To encourage participation, approved BDD branches receive access to subsidized and market rate deposits from New York State. On July 30, 2024, Ponce Bank received total program deposits of
Ponce Bank will use the BDD designation to continue its efforts to expand access to affordable financial services to serve local residents and small businesses in the neighborhood by offering access to competitive, affordable financial products. Ponce Bank will also provide financial education to consumers and businesses to help foster financial empowerment and inclusion in the community.
About Ponce Financial Group, Inc.
Ponce Financial Group, Inc. is the holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock.
Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’s loans; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank’s market area; Ponce Bank’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.
Contact:
Sergio Vaccaro
sergio.vaccaro@poncebank.net
718-931-9000
FAQ
What is the Banking Development District (BDD) Program that Ponce Bank (PDLB) is participating in?
How much in deposits did Ponce Bank (PDLB) receive through the BDD Program on July 30, 2024?
What additional funding might Ponce Bank (PDLB) receive if approved for the New York City BDD program?
Which Ponce Bank branch was approved as a Banking Development District?
