Ponce Financial Group, Inc. Reports Fourth Quarter 2024 Results

Rhea-AI Summary

Ponce Financial Group (NASDAQ: PDLB) reported Q4 2024 results with net income available to common stockholders of $2.7 million ($0.12 per diluted share), compared to $2.2 million in Q3 2024 and $0.5 million in Q4 2023. Full-year 2024 net income reached $10.3 million ($0.46 per diluted share), up from $3.4 million in 2023.

Key financial metrics showed strong growth: net interest income increased 17.18% to $76.5 million for 2024, net loans grew 20.61% to $2.29 billion, and deposits rose 25.02% to $1.88 billion. The net interest margin improved to 2.80% in Q4 2024, up from 2.65% in Q3 2024.

The company executed an agreement with the U.S. Treasury allowing potential buyback of ECIP preferred shares upon meeting certain conditions. Deep Impact Lending reached 79% over the last 10 quarters, well above the required 60% threshold.

Positive

• Net income increased significantly to $10.3 million in 2024 from $3.4 million in 2023
• Net loans grew 20.61% to $2.29 billion
• Deposits increased 25.02% to $1.88 billion
• Net interest margin improved to 2.80% in Q4 2024 from 2.65% in Q3
• Non-interest expense decreased by $2.0 million (2.90%) year-over-year

Negative

• Non-interest income decreased by $3.0 million (29.44%) year-over-year
• Non-performing loans increased to 1.18% of total gross loans in Q4 2024 from 0.78% in Q3
• Net charge-offs increased to 0.45% in Q4 2024 from 0.17% in Q3

Insights

Financial Analyst

Ponce Financial Group's Q4 2024 results demonstrate robust operational execution and strategic advancement. The 440% YoY increase in quarterly net income to $2.7 million reflects successful margin expansion and cost management initiatives. The net interest margin improvement to 2.80% from 2.66% YoY showcases effective balance sheet management amid a challenging rate environment.

Two critical developments merit attention: First, the efficiency ratio improved significantly to 75.63% from 96.83% YoY, indicating successful cost optimization and technology integration. Second, the Deep Impact Lending achievement of 79% over 10 consecutive quarters, substantially exceeding the 60% threshold, positions the bank favorably for potential ECIP preferred stock repurchase.

The loan portfolio's 20.61% growth demonstrates strong origination capabilities, while deposit growth of 25.02% reflects successful funding strategies. However, the allowance for loan losses ratio decreased to 0.97% from 1.36% YoY, while non-performing loans increased to 1.18% of total gross loans, warranting monitoring of asset quality trends.

The successful launch of PonceDirect digital banking platform, coupled with significant SBA lending traction, indicates effective modernization while maintaining the bank's important MDI/CDFI mission. The 2.90% reduction in non-interest expenses year-over-year to $66.7 million demonstrates disciplined cost management during this digital transformation phase.

NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the fourth quarter of 2024.

Fourth Quarter 2024 Highlights (Compared to Prior Periods):

• Net income available to common stockholders was $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024, as compared to net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024 and net income available to common stockholders of $0.5 million, or $0.02 per diluted share for the three months ended December 31, 2023. Total net income for the three months ended December 31, 2024 was $2.9 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended December 31, 2024.
• Included in the $2.7 million of net income available to common stockholders for the fourth quarter of 2024 results is $42.9 million in interest and dividend income and $2.1 million in non-interest income, offset by $22.2 million in interest expense, $17.3 million in non-interest expense, $1.5 million in provision for income taxes. $1.1 million in provision for credit losses and $0.3 million in dividends on preferred shares.
• Net interest income of $20.7 million for the fourth quarter of 2024 increased $1.7 million, or 8.97%, from the prior quarter and increased $3.5 million, or 20.54%, from the same quarter last year. 
• Net interest margin was 2.80% for the fourth quarter of 2024, versus 2.65% for the prior quarter and 2.66% for the same quarter last year.

Full Year 2024 Highlights (Compared to 2023):

• Net income available to common stockholders was $10.3 million, or $0.46 per diluted share for the year ended December 31, 2024, compared to net income available to common stockholders of $3.4 million, or $0.15 per diluted share for the year ended December 31, 2023. Total net income for the year ended December 31, 2024, prior to the payment of $0.6 million in dividends on preferred shares, was $11.0 million.
• Net interest income for the year ended December 31, 2024 was $76.5 million, an increase of $11.2 million, or 17.18%, compared to $65.3 million for the year ended December 31, 2023.
• Non-interest income for the year ended December 31, 2024 was $7.2 million, a decrease of $3.0 million, or 29.44%, from $10.2 million for the year ended December 31, 2023. The decrease was primarily driven by $4.2 million in grants that were received in the prior year.
• Non-interest expense for the year ended December 31, 2024 was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023.
• Cash and equivalents were $139.8 million as of December 31, 2024, an increase of $0.6 million, or 0.47%, from $139.2 million as of December 31, 2023.
• Securities totaled $472.9 million as of December 31, 2024, a decrease of $108.7 million, or 18.70%, from $581.7 million as of December 31, 2023 primarily due to regular principal payments, the maturity of one available-for-sale security in the amount of $4.0 million and one held-to-maturity security in the amount of $25.0 million and the call of one held-to-maturity security in the amount of $25.0 million.
• Net loans receivable were $2.29 billion as of December 31, 2024, an increase of $390.7 million, or 20.61%, from $1.90 billion as of December 31, 2023.
• Deposits were $1.88 billion as of December 31, 2024, an increase of $377.2 million, or 25.02%, from $1.51 billion as of December 31, 2023.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated, “We are pleased with the progress we have made in 2024. We executed an agreement with the U.S. Treasury that gives us the option, upon achievement of certain conditions, to buy back the ECIP preferred shares we previously issued at favorable prices, we launched our PonceDirect digital bank and gained significant traction with SBA loans. Our levels of liquidity and capital remain strong, while our loans grew by 20.61% and deposits by 25.02%. We have seen consistent profitability over the past several quarters as we continue to see increases both in net interest income as well as net interest margin, while expenses are down year on year, reflecting both reduced development and continued adoption of our new technology. We remain committed to the communities we serve and our status as a Minority Depository Institution (“MDI”)/Community Development Financial Institution ("CDFI"), and we continue to invest 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 are working diligently to ensure that we will meet the conditions necessary to allow us to repurchase our ECIP preferred stock in the future. The agreement we executed with the U.S. Treasury in December 2024, allows for a repurchase of the ECIP preferred stock once we have achieved Deep Impact Lending, as defined under the ECIP program, that is at least 60% of our total originations on average over 16 consecutive quarters, provided that we also meet certain other conditions at the time we exercise the repurchase option. As of December 31, 2024, our Deep Impact Lending over the last 10 consecutive quarters stands at 79%, well above the threshold. Also, from second quarter of 2024 to fourth quarter of 2024, we have originated $514 million of Deep Impact Lending as well as $54 million of qualified lending which represents 383% of our base, which period, together with the first quarter of 2025, will determine the rate of dividends payable on the ECIP preferred stock from the third quarter of 2025 to the second quarter of 2026. With one quarter to go, we are confident that we will get to over 400% of our base and ensure another year of preferred dividends of 0.50%, which is the lowest dividend rate.” 

Selected performance metrics are as follows (refer to “Key Metrics” for additional information):

		At or for the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
Performance Ratios (Annualized):		2024				2024				2024				2024				2023
Return on average assets (1)			0.38	%			0.33	%			0.45	%			0.33	%			0.08	%
Return on average equity (1)			2.30	%			1.93	%			2.59	%			1.97	%			0.42	%
Net interest rate spread (1) (2)			1.98	%			1.77	%			1.72	%			1.82	%			1.74	%
Net interest margin (1) (3)			2.80	%			2.65	%			2.62	%			2.71	%			2.66	%
Non-interest expense to average assets (1)			2.25	%			2.19	%			2.28	%			2.35	%			2.66	%
Efficiency ratio (4)			75.63	%			80.87	%			80.09	%			82.56	%			96.83	%
Average interest-earning assets to average interest- bearing liabilities			127.60	%			128.35	%			129.73	%			129.69	%			133.50	%
Average equity to average assets			16.59	%			16.97	%			17.41	%			17.00	%			18.25	%

		At or for the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
Capital Ratios (Annualized):		2024				2024				2024				2024				2023
Total capital to risk-weighted assets (Bank only)			21.47	%			21.61	%			22.47	%			22.79	%			23.30	%
Tier 1 capital to risk-weighted assets (Bank only)			20.40	%			20.45	%			21.24	%			21.54	%			22.05	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)			20.40	%			20.45	%			21.24	%			21.54	%			22.05	%
Tier 1 capital to average assets (Bank only)			15.81	%			16.19	%			16.70	%			16.26	%			17.49	%

		At or for the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
Asset Quality Ratios (Annualized):		2024				2024				2024				2024				2023
Allowance for loan losses as a percentage of total loans			0.97	%			1.09	%			1.18	%			1.23	%			1.36	%
Allowance for loan losses as a percentage of nonperforming loans			82.29	%			139.52	%			130.28	%			140.90	%			152.99	%
Net (charge-offs) recoveries to average outstanding loans (1)			(0.45	%)			(0.17	%)			(0.10	%)			(0.25	%)			(0.24	%)
Non-performing loans as a percentage of total gross loans			1.18	%			0.78	%			0.89	%			0.87	%			0.89	%
Non-performing loans as a percentage of total assets			0.90	%			0.57	%			0.65	%			0.62	%			0.62	%
Total non-performing assets as a percentage of total assets			0.90	%			0.57	%			0.65	%			0.62	%			0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)			1.06	%			0.73	%			0.82	%			0.79	%			0.81	%

	(1)	Annualized where appropriate.
	(2)	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.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
	(5)	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.

Summary of Results of Operations

Net income for the three months ended December 31, 2024 was $2.9 million compared to net income of $2.4 million for the three months ended September 30, 2024 and net income of $0.5 million for the three months ended December 31, 2023.

The $0.5 million increase of net income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was attributed mainly to increases of $1.7 million in net interest income and $1.0 million in non-interest income, partially offset by increases of $1.0 million in non-interest expense, $0.9 million in provision for income taxes and $0.3 million in provision for credit losses.

The $2.4 million increase of net income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely due to increases of $3.5 million in net interest income and $0.9 million in non-interest income and a decrease of $0.5 million in non-interest expense, partially offset by increases of $1.5 million in provision for credit losses and $1.1 million in provision for income taxes.

Net income for the year ended December 31, 2024 was $11.0 million compared to a net income of $3.4 million for the year ended December 31, 2023. The $7.6 million increase in net income was attributable to an increase of $11.2 million in net interest income and
a decrease of $1.9 million in non-interest expense, partially offset by a decrease of $2.9 million in non-interest income and increases of $2.2 million in provision for income taxes and $0.4 million in provision for credit losses.

Net Interest Income and Net Margin

Net interest income for the three months ended December 31, 2024, increased $1.7 million, or 8.97%, to $20.7 million compared to $19.0 million for the three months ended September 30, 2024 and increased $3.5 million, or 20.54%, compared to $17.2 million for the three months ended December 31, 2023.

Net interest income for the year ended December 31, 2024, increased $11.2 million, or 17.18%, to $76.5 million, compared to $65.3 million for the year ended December 31, 2023. The $11.2 million increase in net interest income was attributable to an increase of $36.8 million in total interest and dividend income, offset by an increase of $25.6 million in total interest expense.

For the year ended December 31, 2024, provision for credit losses amounted to $1.3 million, consisting of a provision for credit losses on loans in the amount of $1.5 million and a benefit on credit losses on held-to-maturity securities in the amount of $0.2 million.

Net interest margin was 2.80% for the three months ended December 31, 2024 compared to 2.65% for the prior quarter, an increase of 15bps and 2.66% for the same period last year, an increase of 14bps.

Net interest margin was 2.70% for the year ended December 31, 2024 compared to 2.66% for the year ended December 31, 2023, an increase of 4bps.

Non-interest Income

Non-interest income for the three months ended December 31, 2024, was $2.1 million, an increase of $0.9 million, or 82.19%, compared to $1.2 million for the three months ended September 30, 2024 and an increase of $0.8 million, or 63.19%, compared to $1.3 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was largely attributable to increases of $0.5 million in other non-interest income, $0.2 million in late and prepayment charges and $0.1 million in income on sale of SBA loans.

The $0.8 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely attributable to increases of $1.1 million in other non-interest income and $0.1 million in income on sale of SBA loans, partially offset by a decrease of $0.4 million in grant income received in the fourth quarter of 2023.

Non-interest income for the year ended December 31, 2024, was $7.2 million, a decrease of $3.0 million, or 29.44%, compared to $10.2 million for the year ended December 31, 2023. The $3.0 million decrease in non-interest income was largely attributable to $4.2 million related to grants received in 2023 and a decrease of $1.2 million in late and prepayment charges, partially offset by increases of $1.8 million in other non-interest income, $0.5 million in income on sale of mortgage loans and $0.1 million in income on sale of SBA loans.

Non-interest Expense

Non-interest expense for the three months ended December 31, 2024, was $17.3 million, an increase of $0.9 million, or 5.82%, compared to $16.3 million for the three months ended September 30, 2024 and a decrease of $0.6 million, or 3.54%, compared to $17.9 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest expense from the three months ended September 30, 2024 was mainly attributable to increases of $0.4 million in professional fees, $0.2 million in other operating expense, $0.1 million in marketing and promotional expenses, $0.1 million in office supplies, telephone and postage and $0.1 million in occupancy and equipment.

The $0.6 million decrease in non-interest expense from the three months ended December 31, 2023 was mainly attributable to decreases of $0.6 million in provision for contingencies, $0.6 million in compensation and benefits and $0.3 million in professional fees, partially offset by increases of $0.3 million in other operating expense, $0.2 million in occupancy and equipment, $0.1 million in marketing and promotional expenses and $0.1 million in direct loan expenses.

Non-interest expense for the year ended December 31, 2024, was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023. The $2.0 million decrease in non-interest expense from the year ended December 31, 2023 was mainly attributable to decreases of $3.1 million in provision for contingencies, $0.9 million in professional fees, $0.7 million in data processing expenses, $0.5 million in office supplies, telephone and postage, partially offset by a decrease in microloans recoveries of $1.3 million and increases of $0.9 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.2 million in compensation and benefits.

Balance Sheet Summary

Total assets increased $289.2 million, or 10.51%, to $3.04 billion as of December 31, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $390.7 million in net loans receivable, $9.8 million in Federal Home Loan Bank of New York stock, $0.8 million in mortgage loans held for sale, $0.7 million in premises and equipment and $0.6 million in cash and cash equivalents, partially offset by decreases of $93.8 million in held-to-maturity securities, $14.9 million in available-for-sale securities, $2.3 million in deferred tax assets and $2.2 million in right of use assets.

Total liabilities increased $275.1 million, or 12.18%, to $2.53 billion as of December 31, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $377.2 million in deposits, partially offset by decreases of $88.3 million in borrowings, $8.3 million in accrued interest payable, $3.1 million in other liabilities, $2.0 million in operating lease liabilities and $0.4 million in advance payments by borrowers for taxes.

Total stockholders’ equity increased $14.1 million, or 2.87%, to $505.5 million as of December 31, 2024, from $491.4 million as of December 31, 2023. The $14.1 million increase in stockholders’ equity was largely attributable to $11.0 million in net income, $2.1 million impact to additional paid in capital as a result of share-based compensation and $1.4 million from release of ESOP shares and $0.3 million in other comprehensive income, offset by $0.6 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

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

Forward Looking Statements

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

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

	As of
	December 31,				September 30,				June 30,				March 31,				December 31,
	2024				2024				2024				2024				2023
ASSETS
Cash and due from banks:
Cash	$	35,478			$	32,061			$	23,128			$	29,972			$	28,930
Interest-bearing deposits		104,361				123,751				80,038				104,752				110,260
Total cash and cash equivalents		139,839				155,812				103,166				134,724				139,190
Available-for-sale securities, at fair value		104,970				111,005				113,125				116,044				119,902
Held-to-maturity securities, at amortized cost		367,938				403,736				442,113				452,955				461,748
Placement with banks		249				249				249				249				249
Mortgage loans held for sale, at fair value		10,736				9,566				37,764				7,860				9,980
Loans receivable, net		2,286,599				2,180,331				2,022,173				1,981,428				1,895,886
Accrued interest receivable		17,771				16,890				17,441				18,063				18,010
Premises and equipment, net		16,794				16,843				16,976				17,396				16,053
Right of use assets		29,093				29,785				30,349				31,021				31,272
Federal Home Loan Bank of New York stock (FHLBNY), at cost		29,182				28,515				23,972				23,892				19,377
Deferred tax assets		12,074				11,845				13,172				13,919				14,332
Other assets		24,693				51,392				21,507				21,151				24,723
Total assets	$	3,039,938			$	3,015,969			$	2,842,007			$	2,818,702			$	2,750,722
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	1,884,864			$	1,870,323			$	1,606,097			$	1,585,784			$	1,507,620
Operating lease liabilities		30,696				31,343				31,861				32,486				32,684
Accrued interest payable		3,712				2,918				6,820				4,218				11,965
Advance payments by borrowers for taxes and insurance		10,349				13,733				10,838				13,245				10,778
Borrowings		596,100				580,421				680,421				680,421				684,421
Other liabilities		8,717				12,642				8,313				8,866				11,859
Total liabilities		2,534,438				2,511,380				2,344,350				2,325,020				2,259,327
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized		225,000				225,000				225,000				225,000				225,000
Common stock, $0.01 par value; 200,000,000 shares authorized		249				249				249				249				249
Treasury stock, at cost		(7,707	)			(9,445	)			(9,519	)			(9,702	)			(9,747	)
Additional paid-in-capital		207,319				208,478				207,934				207,584				207,106
Retained earnings		107,754				105,103				102,951				99,834				97,420
Accumulated other comprehensive loss		(15,297	)			(12,686	)			(16,557	)			(16,590	)			(15,649	)
Unearned compensation ─ ESOP		(11,818	)			(12,110	)			(12,401	)			(12,693	)			(12,984	)
Total stockholders' equity		505,500				504,589				497,657				493,682				491,395
Total liabilities and stockholders' equity	$	3,039,938			$	3,015,969			$	2,842,007			$	2,818,702			$	2,750,722

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

	Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
	2024				2024				2024				2024				2023
Interest and dividend income:
Interest on loans receivable	$	35,622			$	32,945			$	31,281			$	30,664			$	27,814
Interest on deposits due from banks		1,783				2,430				1,542				2,911				990
Interest and dividend on securities and FHLBNY stock		5,481				5,918				5,969				6,091				6,146
Total interest and dividend income		42,886				41,293				38,792				39,666				34,950
Interest expense:
Interest on certificates of deposit		8,104				6,926				6,358				6,380				5,103
Interest on other deposits		8,476				8,519				7,389				6,540				5,706
Interest on borrowings		5,576				6,825				7,141				7,923				6,944
Total interest expense		22,156				22,270				20,888				20,843				17,753
Net interest income		20,730				19,023				17,904				18,823				17,197
Provision (benefit) for credit losses		1,099				789				(374	)			(180	)			(375	)
Net interest income after provision (benefit) for credit losses		19,631				18,234				18,278				19,003				17,572
Non-interest income:
Service charges and fees		500				508				492				473				498
Brokerage commissions		44				—				9				8				13
Late and prepayment charges		318				77				426				359				365
Income on sale of mortgage loans		254				218				274				302				244
Income on sale of SBA loans		148				—				—				—				—
Grant income		—				—				—				—				438
Other		833				348				1,057				565				(273	)
Total non-interest income		2,097				1,151				2,258				1,707				1,285
Non-interest expense:
Compensation and benefits		7,668				7,674				7,724				7,844				8,262
Occupancy and equipment		3,863				3,786				3,564				3,667				3,686
Data processing expenses		1,143				1,099				1,013				1,127				1,101
Direct loan expenses		617				573				633				732				497
(Benefit) provision for contingencies		(202	)			(252	)			(493	)			164				418
Insurance and surety bond premiums		293				292				263				253				250
Office supplies, telephone and postage		294				222				233				249				294
Professional fees		1,703				1,351				1,369				1,723				2,040
Microloans recoveries		(29	)			(54	)			(65	)			(53	)			(152	)
Marketing and promotional expenses		289				180				145				100				146
Federal deposit insurance and regulatory assessment (1)		418				392				428				389				395
Other operating expenses (1)		1,206				1,051				1,333				755				960
Total non-interest expense		17,263				16,314				16,147				16,950				17,897
Income before income taxes		4,465				3,071				4,389				3,760				960
Provision for income taxes		1,532				638				1,197				1,346				442
Net income	$	2,933			$	2,433			$	3,192			$	2,414			$	518
Dividends on preferred shares		282				281				75				—				—
Net income available to common stockholders	$	2,651			$	2,152			$	3,117			$	2,414			$	518
Earnings per common share:
Basic	$	0.12			$	0.10			$	0.14			$	0.11			$	0.02
Diluted	$	0.12			$	0.10			$	0.14			$	0.11			$	0.02
Weighted average common shares outstanding:
Basic		22,528,160				22,446,009				22,409,803				22,353,492				22,224,945
Diluted		22,807,644				22,612,028				22,419,309				22,366,728				22,406,102

_{⁽¹⁾ For the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each periods.}

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

		For the Years Ended December 31,
		2024				2023				Variance $				Variance %
Interest and dividend income:
Interest on loans receivable		$	130,512			$	95,805			$	34,707				36.23	%
Interest on deposits due from banks			8,666				4,973				3,693				74.26	%
Interest and dividend on securities and FHLBNY stock			23,459				25,089				(1,630	)			(6.50	%)
Total interest and dividend income			162,637				125,867				36,770				29.21	%
Interest expense:
Interest on certificates of deposit			27,768				16,571				11,197				67.57	%
Interest on other deposits			30,924				18,570				12,354				66.53	%
Interest on borrowings			27,465				25,460				2,005				7.88	%
Total interest expense			86,157				60,601				25,556				42.17	%
Net interest income			76,480				65,266				11,214				17.18	%
Provision for credit losses			1,334				973				361				37.10	%
Net interest income after provision for credit losses			75,146				64,293				10,853				16.88	%
Non-interest income:
Service charges and fees			1,973				1,986				(13	)			(0.65	%)
Brokerage commissions			61				80				(19	)			(23.75	%)
Late and prepayment charges			1,180				2,365				(1,185	)			(50.11	%)
Income on sale of mortgage loans			1,048				598				450				75.25	%
Income on sale of SBA loans			148				—				148				100.00	%
Grant income			—				4,156				(4,156	)			(100.00	%)
Other			2,803				1,038				1,765				170.04	%
Total non-interest income			7,213				10,223				(3,010	)			(29.44	%)
Non-interest expense:
Compensation and benefits			30,910				30,699				211				0.69	%
Occupancy and equipment			14,880				14,568				312				2.14	%
Data processing expenses			4,382				5,083				(701	)			(13.79	%)
Direct loan expenses			2,555				1,623				932				57.42	%
(Benefit) provision for contingencies			(783	)			2,311				(3,094	)			(133.88	%)
Insurance and surety bond premiums			1,101				1,018				83				8.15	%
Office supplies, telephone and postage			998				1,483				(485	)			(32.70	%)
Professional fees			6,146				7,092				(946	)			(13.34	%)
Microloans recoveries			(201	)			(1,481	)			1,280				(86.43	%)
Marketing and promotional expenses			714				825				(111	)			(13.45	%)
Federal deposit insurance and regulatory assessments (1)			1,627				1,472				155				10.53	%
Other operating expenses (1)			4,345				3,970				375				9.45	%
Total non-interest expense			66,674				68,663				(1,989	)			(2.90	%)
Income before income taxes			15,685				5,853				9,832				167.98	%
Provision for income taxes			4,713				2,501				2,212				88.44	%
Net income		$	10,972			$	3,352			$	7,620				227.33	%
Dividends on preferred shares			638				—				638				100.00	%
Net income available to common stockholders		$	10,334			$	3,352			$	6,982				208.29	%
Earnings per common share:
Basic		$	0.46			$	0.15			$	0.31				206.67	%
Diluted		$	0.46			$	0.15			$	0.31				206.67	%
Weighted average common shares outstanding:
Basic			22,434,654				22,745,317				(310,663	)			(1.37	%)
Diluted			22,551,715				22,822,313				(270,598	)			(1.19	%)

_{⁽¹⁾ For the year ended December 31, 2023, $1.2 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.4 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.}  

Ponce Financial Group, Inc. and Subsidiaries
Key Metrics

	At or for the Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
	2024				2024				2024				2024				2023
Performance Ratios:
Return on average assets (1)		0.38	%			0.33	%			0.45	%			0.33	%			0.08	%
Return on average equity (1)		2.30	%			1.93	%			2.59	%			1.97	%			0.42	%
Net interest rate spread (1) (2)		1.98	%			1.77	%			1.72	%			1.82	%			1.74	%
Net interest margin (1) (3)		2.80	%			2.65	%			2.62	%			2.71	%			2.66	%
Non-interest expense to average assets (1)		2.25	%			2.19	%			2.28	%			2.35	%			2.66	%
Efficiency ratio (4)		75.63	%			80.87	%			80.09	%			82.56	%			96.83	%
Average interest-earning assets to average interest- bearing liabilities		127.60	%			128.35	%			129.73	%			129.69	%			133.50	%
Average equity to average assets		16.59	%			16.97	%			17.41	%			17.00	%			18.25	%
Capital Ratios:
Total capital to risk-weighted assets (Bank only)		21.47	%			21.61	%			22.47	%			22.79	%			23.30	%
Tier 1 capital to risk-weighted assets (Bank only)		20.40	%			20.45	%			21.24	%			21.54	%			22.05	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.40	%			20.45	%			21.24	%			21.54	%			22.05	%
Tier 1 capital to average assets (Bank only)		15.81	%			16.19	%			16.70	%			16.26	%			17.49	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.97	%			1.09	%			1.18	%			1.23	%			1.36	%
Allowance for credit losses on loans as a percentage of nonperforming loans		82.29	%			139.52	%			130.28	%			140.90	%			152.99	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.45	%)			(0.17	%)			(0.10	%)			(0.25	%)			(0.24	%)
Non-performing loans as a percentage of total gross loans		1.18	%			0.78	%			0.89	%			0.87	%			0.89	%
Non-performing loans as a percentage of total assets		0.90	%			0.57	%			0.65	%			0.62	%			0.62	%
Total non-performing assets as a percentage of total assets		0.90	%			0.57	%			0.65	%			0.62	%			0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		1.06	%			0.73	%			0.82	%			0.79	%			0.81	%
Other:
Number of offices		19				19				18				18				18
Number of full-time equivalent employees		218				228				227				233				237

	(1)	Annualized where appropriate.
	(2)	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.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and non-interest income.
	(5)	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.

Ponce Financial Group, Inc. and Subsidiaries
Securities Portfolio

		December 31, 2024																December 31, 2023
						Gross				Gross												Gross				Gross
		Amortized				Unrealized				Unrealized								Amortized				Unrealized				Unrealized
		Cost				Gains				Losses				Fair Value				Cost				Gains				Losses				Fair Value
		(in thousands)																(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds		$	2,994			$	—			$	(121	)		$	2,873			$	2,990			$	—			$	(206	)		$	2,784
Corporate Bonds			21,762				10				(1,368	)			20,404				25,790				—				(2,122	)			23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			34,526				—				(5,991	)			28,535				39,375				—				(6,227	)			33,148
FHLMC Certificates			9,028				—				(1,366	)			7,662				10,163				—				(1,482	)			8,681
FNMA Certificates			56,010				—				(10,602	)			45,408				61,359				—				(9,842	)			51,517
GNMA Certificates			88				—				—				88				104				—				—				104
Total available-for-sale securities		$	124,408			$	10			$	(19,448	)		$	104,970			$	139,781			$	—			$	(19,879	)		$	119,902
Held-to-Maturity Securities:
U.S. Agency Bonds		$	25,000			$	—			$	(40	)		$	24,960			$	25,000			$	—			$	(181	)		$	24,819
Corporate Bonds			32,500				12				(535	)			31,977				82,500				—				(2,691	)			79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)			186,634				—				(7,052	)			179,582				212,093				104				(5,170	)			207,027
FHLMC Certificates			3,229				—				(223	)			3,006				3,897				—				(244	)			3,653
FNMA Certificates			105,417				—				(5,114	)			100,303				118,944				—				(4,088	)			114,856
SBA Certificates			15,374				92				—				15,466				19,712				166				—				19,878
Allowance for Credit Losses			(216	)			—				—				—				(398	)			—				—				—
Total held-to-maturity securities		$	367,938			$	104			$	(12,964	)		$	355,294			$	461,748			$	270			$	(12,374	)		$	450,042

_{⁽¹⁾ Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.}

The following table presents the activity in the allowance for credit losses for held-to-maturity securities.

		For the Years Ended December 31,
		2024				2023
Allowance for credit losses on securities at beginning of the period		$	398			$	—
CECL adoption			—				662
Benefit for credit losses			(182	)			(264	)
Allowance for credit losses on securities at end of the period		$	216			$	398

Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio

		As of
		December 31,								September 30,								June 30,								March 31,								December 31,
		2024								2024								2024								2024								2023
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	330,053				14.30	%		$	332,380				15.09	%		$	337,292				16.49	%		$	339,331				16.92	%		$	343,689				17.89	%
Owner-Occupied			142,363				6.17	%			145,065				6.59	%			147,485				7.21	%			150,842				7.52	%			152,311				7.93	%
Multifamily residential			670,159				29.04	%			678,029				30.78	%			545,323				26.66	%			545,825				27.22	%			550,559				28.65	%
Nonresidential properties			389,898				16.89	%			383,277				17.40	%			337,583				16.51	%			327,350				16.32	%			342,343				17.81	%
Construction and land			733,660				31.79	%			631,461				28.67	%			641,879				31.39	%			608,665				30.35	%			503,925				26.22	%
Total mortgage loans			2,266,133				98.19	%			2,170,212				98.53	%			2,009,562				98.26	%			1,972,013				98.33	%			1,892,827				98.50	%
Non-mortgage loans:
Business loans			40,849				1.77	%			28,499				1.29	%			30,222				1.48	%			26,664				1.33	%			19,779				1.03	%
Consumer loans (1)			1,038				0.04	%			4,021				0.18	%			5,305				0.26	%			6,741				0.34	%			8,966				0.47	%
Total non-mortgage loans			41,887				1.81	%			32,520				1.47	%			35,527				1.74	%			33,405				1.67	%			28,745				1.50	%
Total loans, gross			2,308,020				100.00	%			2,202,732				100.00	%			2,045,089				100.00	%			2,005,418				100.00	%			1,921,572				100.00	%
Net deferred loan origination costs			1,081								1,565								1,145								674								468
Allowance for credit losses on loans			(22,502	)							(23,966	)							(24,061	)							(24,664	)							(26,154	)
Loans, net		$	2,286,599							$	2,180,331							$	2,022,173							$	1,981,428							$	1,895,886

_{⁽¹⁾ As of September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, consumer loans include $3.0 million, $4.3 million, $5.7 million and $8.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.}

Ponce Financial Group, Inc. and Subsidiaries
Microloans Exposure (previously originated by the Bank under its arrangement with Grain)

Total Microloans Exposure as of December 31, 2024
(in thousands)
Microloans Receivable from Grain
Microloans originated - put back (inception-to-December 31, 2024)		$	23,903
Write-downs, net of recoveries (inception-to-date as of December 31, 2024)			(15,258	)
Cash receipts (inception-to-December 31, 2024)			(6,819	)
Grant/reserve			(1,826	)
Net receivable as of December 31, 2024		$	—
Microloans Receivables from Borrowers
Microloans receivable as of December 31, 2024		$	—
Allowance for credit losses on loans as of December 31, 2024			—
Microloans, net of allowance for credit losses on loans as of December 31, 2024		$	—
Investments
Investment in Grain		$	1,000
Investment write-off in Q3 2022			(1,000	)
Net investment as of December 31, 2024			—
Total exposure related to microloans as of December 31, 2024 (1)		$	—

_{⁽¹⁾ As of December 31, 2024, the remaining microloans were charged-off.}

Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans

	For the Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
	2024				2024				2024				2024				2023
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	23,966			$	24,061			$	24,664			$	26,154			$	27,414
Provision (benefit) for credit losses on loans		1,090				801				(120	)			(255	)			(126	)
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned		—				—				—				—				—
Owner occupied		—				—				—				—				—
Multifamily residences		—				—				—				—				—
Nonresidential properties		—				(7	)			—				—				—
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		(232	)			(450	)			—				(52	)			(63	)
Consumer		(2,465	)			(634	)			(747	)			(1,302	)			(1,135	)
Total charge-offs		(2,697	)			(1,091	)			(747	)			(1,354	)			(1,198	)
Recoveries:
Non-mortgage loans:
Business		—				1				7				1				—
Consumer		143				194				257				118				64
Total recoveries		143				195				264				119				64
Net (charge-offs) recoveries		(2,554	)			(896	)			(483	)			(1,235	)			(1,134	)
Allowance for credit losses on loans at end of the period	$	22,502			$	23,966			$	24,061			$	24,664			$	26,154

Ponce Financial Group, Inc. and Subsidiaries
Deposits

		As of
		December 31,								September 30,								June 30,								March 31,								December 31,
		2024								2024								2024								2024								2023
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Demand (1)		$	169,178				8.98	%		$	182,737				9.78	%		$	178,125				11.09	%		$	191,541				12.07	%		$	185,151				12.28	%
Interest-bearing deposits:
NOW/IOLA accounts (1)			62,616				3.32	%			71,445				3.82	%			81,178				5.05	%			73,202				4.62	%			77,909				5.17	%
Money market accounts			636,219				33.75	%			660,168				35.30	%			502,255				31.27	%			482,344				30.42	%			432,735				28.70	%
Reciprocal deposits			130,677				6.93	%			94,145				5.03	%			109,945				6.85	%			97,718				6.16	%			96,860				6.42	%
Savings accounts			105,870				5.62	%			108,941				5.82	%			109,694				6.83	%			112,713				7.11	%			114,139				7.57	%
Total NOW, money market, reciprocal and savings accounts			935,382				49.62	%			934,699				49.97	%			803,072				50.00	%			765,977				48.31	%			721,643				47.86	%
Certificates of deposit of $250K or more (3)			204,293				10.84	%			210,262				11.25	%			189,683				11.82	%			183,478				11.57	%			167,530				11.12	%
Brokered certificates of deposit (2)			94,531				5.02	%			94,531				5.05	%			94,614				5.89	%			94,689				5.97	%			98,729				6.55	%
Listing service deposits (2)			7,376				0.39	%			7,376				0.39	%			9,361				0.58	%			12,688				0.80	%			14,433				0.96	%
All other certificates of deposit less than $250K (3)			474,104				25.15	%			440,718				23.56	%			331,242				20.62	%			337,411				21.28	%			320,134				21.23	%
Total certificates of deposit			780,304				41.40	%			752,887				40.25	%			624,900				38.91	%			628,266				39.62	%			600,826				39.86	%
Total interest-bearing deposits			1,715,686				91.02	%			1,687,586				90.22	%			1,427,972				88.91	%			1,394,243				87.93	%			1,322,469				87.72	%
Total deposits		$	1,884,864				100.00	%		$	1,870,323				100.00	%		$	1,606,097				100.00	%		$	1,585,784				100.00	%		$	1,507,620				100.00	%

	(1)	As of December 31, 2023, $58.2 million was reclassified from demand to NOW/IOLA accounts.
	(2)	As of December 31, 2023, there were $0.3 million in individual listing service deposits amounting to $250,000 or more. As of December 31, 2024, there were no individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
	(3)	As of September 30, 2024, June 30,2024, March 31, 2024 and December 31, 2023, $36.2 million, $33.5 million, $37.2 million and $35.4 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.

Ponce Financial Group, Inc. and Subsidiaries
Borrowings

	December 31,												December 31,
	2024												2023
	Scheduled Maturity				Redeemable at Call Date				Weighted Average Rate				Scheduled Maturity				Redeemable at Call Date				Weighted Average Rate
	(Dollars in thousands)
Overnight line of credit advance	$	25,000			$	25,000				4.69	%		$	—			$	—				—	%
Term advances ending:
2024		—				—				—				363,321				363,321				4.55
2025		100,000				100,000				4.48				50,000				50,000				4.41
2026		200,000				200,000				4.25				—				—				—
2027		212,000				212,000				3.44				212,000				212,000				3.44
2028		9,100				9,100				3.84				9,100				9,100				3.84
2029		50,000				50,000				3.35				50,000				50,000				3.35
	$	596,100			$	596,100				3.94	%		$	684,421			$	684,421				4.10	%

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets

	As of Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
	2024				2024				2024				2024				2023
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	436			$	436			$	436			$	399			$	793
Owner occupied		1,423				1,423				1,423				1,426				1,682
Multifamily residential		10,271				4,685				5,754				4,098				2,979
Nonresidential properties		—				824				828				441				—
Construction and land		14,158				8,907				8,907				10,277				10,759
Non-mortgage loans:
Business		343				180				396				146				165
Consumer		—				—				—				—				—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)	$	26,631			$	16,455			$	17,744			$	16,787			$	16,378
Non-accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	279			$	278			$	277			$	270			$	270
Owner occupied		435				444				448				447				447
Multifamily residential		—				—				—				—				—
Nonresidential properties		—				—				—				—				—
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		—				—				—				—				—
Consumer		—				—				—				—				—
Total non-accruing modifications to borrowers experiencing financial difficulty (1)		714				722				725				717				717
Total non-accrual loans (2)	$	27,345			$	17,177			$	18,469			$	17,504			$	17,095
Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	1,807			$	1,821			$	1,830			$	1,850			$	2,112
Owner occupied		2,062				2,116				2,171				2,288				2,313
Multifamily residential		—				—				—				—				—
Nonresidential properties		652				672				707				748				757
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		215				222				—				—				—
Consumer		—				—				—				—				—
Total accruing modifications to borrowers experiencing financial difficulty (1)	$	4,736			$	4,831			$	4,708			$	4,886			$	5,182
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)	$	32,081			$	22,008			$	23,177			$	22,390			$	22,277
Total non-performing loans to total gross loans		1.18	%			0.78	%			0.89	%			0.87	%			0.89	%
Total non-performing assets to total assets		0.90	%			0.57	%			0.65	%			0.62	%			0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1)		1.06	%			0.73	%			0.82	%			0.79	%			0.81	%

	(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 December 31,
	2024											2023
	Average											Average
	Outstanding								Average			Outstanding								Average
	Balance				Interest				Yield/Rate (1)			Balance				Interest				Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans (2)	$	2,261,426			$	35,622			6.27	%		$	1,884,301			$	27,814			5.86	%
Securities (3)		507,510				4,860			3.81	%			582,563				5,715			3.89	%
Other (4)		179,701				2,404			5.32	%			96,070				1,421			5.87	%
Total interest-earning assets		2,948,637				42,886			5.79	%			2,562,934				34,950			5.41	%
Non-interest-earning assets		108,558											107,305
Total assets	$	3,057,195										$	2,670,239
Interest-bearing liabilities:
NOW/IOLA (5) (6)	$	68,776			$	119			0.69	%		$	75,926			$	181			0.95	%
Money market (6)		761,130				8,329			4.35	%			474,306				5,495			4.60	%
Savings		109,217				27			0.10	%			116,600				28			0.10	%
Certificates of deposit		783,335				8,104			4.12	%			559,713				5,103			3.62	%
Total deposits		1,722,458				16,579			3.83	%			1,226,545				10,807			3.50	%
Advance payments by borrowers		15,147				1			0.03	%			15,033				2			0.05	%
Borrowings		573,316				5,576			3.87	%			678,235				6,944			4.06	%
Total interest-bearing liabilities		2,310,921				22,156			3.81	%			1,919,813				17,753			3.67	%
Non-interest-bearing liabilities:
Non-interest-bearing demand (5)		191,355				—							211,434				—
Other non-interest-bearing liabilities		47,875				—							51,764				—
Total non-interest-bearing liabilities		239,230				—							263,198				—
Total liabilities		2,550,151				22,156							2,183,011				17,753
Total equity		507,044											487,228
Total liabilities and total equity	$	3,057,195							3.81	%		$	2,670,239							3.67	%
Net interest income					$	20,730										$	17,197
Net interest rate spread (7)									1.98	%										1.74	%
Net interest-earning assets (8)	$	637,716										$	643,121
Net interest margin (9)									2.80	%										2.66	%
Average interest-earning assets to interest-bearing liabilities									127.60	%										133.50	%

	(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)	Includes reclassification of $55.7 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(6)	Includes $0.2 million of interest expense reclassified from money market to NOW/IOLA for the three months ended December 31, 2023.
	(7)	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.
	(8)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(9)	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 Years Ended December 31,
	2024												2023
	Average												Average
	Outstanding								Average				Outstanding								Average
	Balance				Interest				Yield/Rate				Balance				Interest				Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans (1)	$	2,094,820			$	130,512				6.23	%		$	1,730,275			$	95,805				5.54	%
Securities (2)		548,641				21,289				3.88	%			606,815				23,342				3.85	%
Other (3)		192,403				10,836				5.63	%			119,923				6,720				5.60	%
Total interest-earning assets		2,835,864				162,637				5.74	%			2,457,013				125,867				5.12	%
Non-interest-earning assets		107,017												115,760
Total assets	$	2,942,881											$	2,572,773
Interest-bearing liabilities:
NOW/IOLA (4) (5)	$	74,796			$	662				0.89	%		$	70,993			$	1,314				1.85	%
Money market (5)		654,521				30,148				4.61	%			424,160				17,132				4.04	%
Savings		111,028				107				0.10	%			121,550				116				0.10	%
Certificates of deposit		676,306				27,768				4.11	%			528,999				16,571				3.13	%
Total deposits		1,516,651				58,685				3.87	%			1,145,702				35,133				3.07	%
Advance payments by borrowers		14,034				7				0.05	%			14,869				8				0.05	%
Borrowings		670,982				27,465				4.09	%			633,116				25,460				4.02	%
Total interest-bearing liabilities		2,201,667				86,157				3.91	%			1,793,687				60,601				3.38	%
Non-interest-bearing liabilities:
Non-interest-bearing demand (4)		191,155				—								241,510				—
Other non-interest-bearing liabilities		50,259				—								45,858				—
Total non-interest-bearing liabilities		241,414				—								287,368				—
Total liabilities		2,443,081				86,157								2,081,055				60,601
Total equity		499,800												491,718
Total liabilities and total equity	$	2,942,881								3.91	%		$	2,572,773								3.38	%
Net interest income					$	76,480											$	65,266
Net interest rate spread (6)										1.83	%											1.74	%
Net interest-earning assets (7)	$	634,197											$	663,326
Net interest margin (8)										2.70	%											2.66	%
Average interest-earning assets to
interest-bearing liabilities										128.81	%											136.98	%

	(1)	Loans include loans and mortgage loans held for sale, at fair value.
	(2)	Securities include available-for-sale securities and held-to-maturity securities.
	(3)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(4)	Includes reclassification of $48.8 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(5)	Includes $1.3 million of interest expense reclassified from money market to NOW/IOLA for the year ended December 31, 2023.
	(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
	December 31,				September 30,				June 30,				March 31,				December 31,
	2024				2024				2024				2024				2023
Other Data
Common shares issued		24,886,711				24,886,711				24,886,711				24,886,711				24,886,711
Less treasury shares		925,497				1,067,248				1,074,979				1,096,214				1,101,191
Common shares outstanding at end of period		23,961,214				23,819,463				23,811,732				23,790,497				23,785,520
Book value per common share	$	11.71			$	11.74			$	11.45			$	11.29			$	11.20
Tangible book value per common share	$	11.71			$	11.74			$	11.45			$	11.29			$	11.20

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

FAQ

What was Ponce Financial Group's (PDLB) net income for Q4 2024?

Ponce Financial Group reported net income of $2.7 million ($0.12 per diluted share) for Q4 2024.

How much did PDLB's deposits grow in 2024?

PDLB's deposits grew by 25.02% to $1.88 billion in 2024 compared to $1.51 billion in 2023.

What was PDLB's net interest margin in Q4 2024?

PDLB's net interest margin was 2.80% in Q4 2024, up from 2.65% in Q3 2024.

How did PDLB's loan portfolio perform in 2024?

Net loans receivable increased by 20.61% to $2.29 billion in 2024 from $1.90 billion in 2023.

What is PDLB's Deep Impact Lending percentage as of Q4 2024?

PDLB's Deep Impact Lending stood at 79% over the last 10 consecutive quarters, exceeding the 60% threshold required.