Ponce Financial Group, Inc. Reports Third Quarter 2024 Results
Ponce Financial Group reported Q3 2024 net income of $2.2 million ($0.10 per diluted share), down from $3.1 million ($0.14 per share) in Q2 2024. Net interest income increased to $19.0 million, up 6.25% from prior quarter and 15.00% year-over-year. Net interest margin was 2.65%. Total assets reached $3.02 billion, with net loans increasing by $284.4 million to $2.18 billion. Deposits grew by $362.7 million to $1.87 billion. The Company maintained strong capital ratios with total capital to risk-weighted assets at 21.61%.
Ponce Financial Group ha riportato un reddito netto di 2,2 milioni di dollari nel terzo trimestre del 2024 (0,10 dollari per azione diluita), in calo rispetto ai 3,1 milioni di dollari (0,14 dollari per azione) del secondo trimestre del 2024. Il reddito netto da interessi è aumentato a 19,0 milioni di dollari, con un incremento del 6,25% rispetto al trimestre precedente e del 15,00% su base annua. Il margine d’interesse netto è stato del 2,65%. Gli attivi totali hanno raggiunto 3,02 miliardi di dollari, con un aumento dei prestiti netti di 284,4 milioni di dollari, arrivando a 2,18 miliardi di dollari. I depositi sono aumentati di 362,7 milioni di dollari, arrivando a 1,87 miliardi di dollari. La Società ha mantenuto elevati rapporti di capitale, con un capitale totale sugli attivi ponderati per il rischio del 21,61%.
Ponce Financial Group reportó un ingreso neto de 2,2 millones de dólares en el tercer trimestre de 2024 (0,10 dólares por acción diluida), en comparación con 3,1 millones de dólares (0,14 dólares por acción) en el segundo trimestre de 2024. El ingreso neto por intereses aumentó a 19,0 millones de dólares, un incremento del 6,25% respecto al trimestre anterior y del 15,00% en comparación anual. El margen de interés neto fue del 2,65%. Los activos totales alcanzaron 3,02 mil millones de dólares, con un aumento de los préstamos netos de 284,4 millones de dólares, hasta 2,18 mil millones de dólares. Los depósitos crecieron en 362,7 millones de dólares, alcanzando 1,87 mil millones de dólares. La Compañía mantuvo ratios de capital sólidos, con un capital total sobre activos ponderados por riesgo del 21,61%.
폰세 파이낸셜 그룹은 2024년 3분기에 220만 달러(희석주당 0.10달러)의 순이익을 보고했으며, 이는 2024년 2분기의 310만 달러(주당 0.14달러)에서 감소한 수치입니다. 순이자 수익은 1,900만 달러로 증가하며, 이전 분기 대비 6.25% 증가하고 전년 대비 15.00% 상승하였습니다. 순이자 마진은 2.65%였습니다. 총 자산은 30억 2천만 달러에 도달하였으며, 순 대출은 2억 8,440만 달러 증가하여 21억 8천만 달러로 상승했습니다. 예금은 3억 6,270만 달러 증가하여 18억 7천만 달러에 도달했습니다. 회사는 위험 가중 자산 대비 총 자본 비율이 21.61%로 강력한 자본 비율을 유지하였습니다.
Ponce Financial Group a rapporté un revenu net de 2,2 millions de dollars au troisième trimestre 2024 (0,10 dollar par action diluée), en baisse par rapport à 3,1 millions de dollars (0,14 dollar par action) au deuxième trimestre 2024. Le revenu net d'intérêts a augmenté à 19,0 millions de dollars, soit une hausse de 6,25% par rapport au trimestre précédent et de 15,00% par rapport à l'année précédente. La marge d'intérêts nets était de 2,65%. Les actifs totaux ont atteint 3,02 milliards de dollars, avec des prêts nets augmentant de 284,4 millions de dollars à 2,18 milliards de dollars. Les dépôts ont augmenté de 362,7 millions de dollars pour atteindre 1,87 milliard de dollars. L'entreprise a maintenu des ratios de capital solides avec un ratio de capital total par rapport aux actifs pondérés par le risque de 21,61%.
Ponce Financial Group berichtete von einem Nettogewinn von 2,2 Millionen Dollar im dritten Quartal 2024 (0,10 Dollar pro verwässerter Aktie), ein Rückgang von 3,1 Millionen Dollar (0,14 Dollar pro Aktie) im zweiten Quartal 2024. Der Nettozinsertrag stieg auf 19,0 Millionen Dollar, was einer Steigerung von 6,25% im Vergleich zum Vorquartal und 15,00% im Jahresvergleich entspricht. Die Nettozinsspanne betrug 2,65%. Die Gesamtaussichten erreichten 3,02 Milliarden Dollar, wobei die Nettokredite um 284,4 Millionen Dollar auf 2,18 Milliarden Dollar anstiegen. Die Einlagen wuchsen um 362,7 Millionen Dollar auf 1,87 Milliarden Dollar. Das Unternehmen hielt starke Kapitalquoten mit einem Gesamtkapital zu den risikogewichteten Anlagen von 21,61% aufrecht.
- Net interest income increased 15% year-over-year to $19.0 million
- Net loans grew by $284.4 million (15%) to $2.18 billion
- Deposits increased by $362.7 million (24.06%) to $1.87 billion
- Strong capital position with total capital ratio at 21.61%
- Q3 2024 net income decreased to $2.2 million from $3.1 million in Q2 2024
- Non-interest income decreased by $4.5 million (79.55%) year-over-year
- Net charge-offs to average outstanding loans at 0.17%
Insights
The Q3 2024 results show mixed performance with some concerning trends. Net income available to common stockholders decreased to
Notable balance sheet changes include a
NEW YORK, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the third quarter of 2024.
Third Quarter 2024 Highlights (Compared to Prior Periods):
- Net income available to common stockholders was
$2.2 million , or$0.10 per diluted share for the three months ended September 30, 2024, as compared to net income available to common stockholders of$3.1 million , or$0.14 per diluted share for the three months ended June 30, 2024 and net income available to common stockholders of$2.6 million , or$0.12 per diluted share for the three months ended September 30, 2023. Total net income for the three months ended September 30, 2024 was$2.4 million . The Company paid dividends of$0.3 million on its preferred stock during the quarter ended September 30, 2024. - Included in the
$2.2 million of net income available to common stockholders for the third quarter of 2024 results is$41.3 million in interest and dividend income and$1.2 million in non-interest income, offset by$22.3 million in interest expense,$16.3 million in non-interest expense,$0.8 million in provision for credit losses,$0.6 million in provision for income taxes and$0.3 million in dividends on preferred shares. - Net interest income of
$19.0 million for the third quarter of 2024 increased$1.1 million , or6.25% , from the prior quarter and increased$2.5 million , or15.00% , from the same quarter last year. - Net interest margin was
2.65% for the third quarter of 2024, versus2.62% for the prior quarter and versus2.58% for the same quarter last year.
Nine Months 2024 Highlights (Compared to 2023):
- Net income available to common stockholders was
$7.7 million , or$0.34 per diluted share for the nine months ended September 30, 2024, as compared to net income available to common stockholders of$2.8 million , or$0.12 per diluted share for the nine months ended September 30, 2023. Total net income for the nine months ended September 30, 2024, prior to the payment of$0.4 million in dividends on preferred shares, was$8.0 million . - Net interest income for the nine months ended September 30, 2024 was
$55.8 million , an increase of$7.7 million , or15.98% , compared to$48.1 million for the nine months ended September 30, 2023. - Non-interest income for the nine months ended September 30, 2024 was
$5.1 million , a decrease of$3.8 million , or42.76% , from$8.9 million for the nine months ended September 30, 2023. The decrease was primarily driven by a$3.7 million in grants that were received in the prior year. - Non-interest expense for the nine months ended September 30, 2024 was
$49.4 million , a decrease of$1.4 million , or2.67% , compared to$50.8 million for the nine months ended September 30, 2023. - Cash and equivalents were
$155.8 million as of September 30, 2024, an increase of$16.6 million , or11.94% , from$139.2 million as of December 31, 2023. - Securities totaled
$514.7 million as of September 30, 2024, a decrease of$66.9 million , or11.50% , from$581.7 million as of December 31, 2023 primarily due to regular principal payments, maturity of one available-for-sale security in the amount of$4.0 million and call of one held-to-maturity security in the amount of$25.0 million . - Net loans receivable were
$2.18 billion as of September 30, 2024, an increase of$284.4 million , or15.00% , from$1.90 billion as of December 31, 2023. - Deposits were
$1.87 billion as of September 30, 2024, an increase of$362.7 million , or24.06% , from$1.51 billion as of December 31, 2023.
President and Chief Executive Officer’s Comments
Carlos P. Naudon, Ponce Financial Group’s President and CEO, stated, “We continue to make progress quarter over quarter both in terms of our economic performance as well as serving our communities. Book value per share continues to grow and is now
Executive Chairman’s Comment
Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added, “During the quarter, the US Treasury Department issued proposed guidelines under which it may sell their ECIP investment back to the issuers or related non-profit affiliates. We believe the adoption of the proposed regulations would be greatly beneficial to Ponce Financial Group, although there can be no assurance that the proposed regulations will be adopted, or that that will be adopted in their current form. Most of our loan growth of
Selected performance metrics are as follows (refer to “Key Metrics” for additional information):
At or for the Three Months Ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
Performance Ratios (Annualized): | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
Return on average assets (1) | 0.33 | % | 0.45 | % | 0.33 | % | 0.08 | % | 0.39 | % | ||||||||||
Return on average equity (1) | 1.93 | % | 2.59 | % | 1.97 | % | 0.42 | % | 2.11 | % | ||||||||||
Net interest rate spread (1) (2) | 1.77 | % | 1.72 | % | 1.82 | % | 1.74 | % | 1.68 | % | ||||||||||
Net interest margin (1) (3) | 2.65 | % | 2.62 | % | 2.71 | % | 2.66 | % | 2.58 | % | ||||||||||
Non-interest expense to average assets (1) | 2.19 | % | 2.28 | % | 2.35 | % | 2.66 | % | 2.58 | % | ||||||||||
Efficiency ratio (4) | 80.87 | % | 80.09 | % | 82.56 | % | 96.83 | % | 78.11 | % | ||||||||||
Average interest-earning assets to average interest- bearing liabilities | 128.35 | % | 129.73 | % | 129.69 | % | 133.50 | % | 134.49 | % | ||||||||||
Average equity to average assets | 16.97 | % | 17.41 | % | 17.00 | % | 18.25 | % | 18.32 | % | ||||||||||
At or for the Three Months Ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
Capital Ratios (Annualized): | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
Total capital to risk-weighted assets (Bank only) | 21.61 | % | 22.47 | % | 22.79 | % | 23.30 | % | 25.10 | % | ||||||||||
Tier 1 capital to risk-weighted assets (Bank only) | 20.45 | % | 21.24 | % | 21.54 | % | 22.05 | % | 23.85 | % | ||||||||||
Common equity Tier 1 capital to risk-weighted assets (Bank only) | 20.45 | % | 21.24 | % | 21.54 | % | 22.05 | % | 23.85 | % | ||||||||||
Tier 1 capital to average assets (Bank only) | 16.19 | % | 16.70 | % | 16.26 | % | 17.49 | % | 17.51 | % | ||||||||||
At or for the Three Months Ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
Asset Quality Ratios (Annualized): | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
Allowance for loan losses as a percentage of total loans | 1.09 | % | 1.18 | % | 1.23 | % | 1.36 | % | 1.51 | % | ||||||||||
Allowance for loan losses as a percentage of nonperforming loans | 139.52 | % | 130.28 | % | 140.90 | % | 152.99 | % | 169.49 | % | ||||||||||
Net (charge-offs) recoveries to average outstanding loans (1) | (0.17 | %) | (0.10 | %) | (0.25 | %) | (0.24 | %) | (0.34 | %) | ||||||||||
Non-performing loans as a percentage of total gross loans | 0.78 | % | 0.89 | % | 0.87 | % | 0.89 | % | 0.89 | % | ||||||||||
Non-performing loans as a percentage of total assets | 0.57 | % | 0.65 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||||
Total non-performing assets as a percentage of total assets | 0.57 | % | 0.65 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||||
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5) | 0.73 | % | 0.82 | % | 0.79 | % | 0.81 | % | 0.82 | % | ||||||||||
(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 cost 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 September 30, 2024 was
The decrease of net income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was attributed mainly to an increase of
The decrease of net income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was largely due to a decrease of
Net income for the nine months ended September 30, 2024 was
Net Interest Income and Net Margin
Net interest income for the three months ended September 30, 2024, increased
Net interest income for the nine months ended September 30, 2024, increased
For the nine months ended September 30, 2024, provision for credit losses amounted to
Net interest margin was
Net interest margin was
Non-interest Income
Non-interest income for the three months ended September 30, 2024, was
The
The
Non-interest income for the nine months ended September 30, 2024, was
Non-interest Expense
Non-interest expense for the three months ended September 30, 2024, was
The
The
Non-interest expense for the nine months ended September 30, 2024, was
Balance Sheet Summary
Total assets increased
Total liabilities increased
Total stockholders’ equity increased
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 | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks: | |||||||||||||||||||
Cash | $ | 32,061 | $ | 23,128 | $ | 29,972 | $ | 28,930 | $ | 26,046 | |||||||||
Interest-bearing deposits | 123,751 | 80,038 | 104,752 | 110,260 | 90,966 | ||||||||||||||
Total cash and cash equivalents | 155,812 | 103,166 | 134,724 | 139,190 | 117,012 | ||||||||||||||
Available-for-sale securities, at fair value | 111,005 | 113,125 | 116,044 | 119,902 | 116,753 | ||||||||||||||
Held-to-maturity securities, at amortized cost | 403,736 | 442,113 | 452,955 | 461,748 | 471,065 | ||||||||||||||
Placement with banks | 249 | 249 | 249 | 249 | 996 | ||||||||||||||
Mortgage loans held for sale, at fair value | 9,566 | 37,764 | 7,860 | 9,980 | 14,103 | ||||||||||||||
Loans receivable, net | 2,180,331 | 2,022,173 | 1,981,428 | 1,895,886 | 1,787,607 | ||||||||||||||
Accrued interest receivable | 16,890 | 17,441 | 18,063 | 18,010 | 16,624 | ||||||||||||||
Premises and equipment, net | 16,843 | 16,976 | 17,396 | 16,053 | 16,453 | ||||||||||||||
Right of use assets | 29,785 | 30,349 | 31,021 | 31,272 | 32,110 | ||||||||||||||
Federal Home Loan Bank of New York stock (FHLBNY), at cost | 28,515 | 23,972 | 23,892 | 19,377 | 18,870 | ||||||||||||||
Deferred tax assets | 11,845 | 13,172 | 13,919 | 14,332 | 15,984 | ||||||||||||||
Other assets | 51,392 | 21,507 | 21,151 | 24,723 | 16,286 | ||||||||||||||
Total assets | $ | 3,015,969 | $ | 2,842,007 | $ | 2,818,702 | $ | 2,750,722 | $ | 2,623,863 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Deposits | $ | 1,870,323 | $ | 1,606,097 | $ | 1,585,784 | $ | 1,507,620 | $ | 1,401,132 | |||||||||
Operating lease liabilities | 31,343 | 31,861 | 32,486 | 32,684 | 33,459 | ||||||||||||||
Accrued interest payable | 2,918 | 6,820 | 4,218 | 11,965 | 8,385 | ||||||||||||||
Advance payments by borrowers for taxes and insurance | 13,733 | 10,838 | 13,245 | 10,778 | 13,743 | ||||||||||||||
Borrowings | 580,421 | 680,421 | 680,421 | 684,421 | 675,100 | ||||||||||||||
Other liabilities | 12,642 | 8,313 | 8,866 | 11,859 | 6,986 | ||||||||||||||
Total liabilities | 2,511,380 | 2,344,350 | 2,325,020 | 2,259,327 | 2,138,805 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Stockholders' Equity: | |||||||||||||||||||
Preferred stock, | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | ||||||||||||||
Common stock, | 249 | 249 | 249 | 249 | 249 | ||||||||||||||
Treasury stock, at cost | (9,445 | ) | (9,519 | ) | (9,702 | ) | (9,747 | ) | (10,975 | ) | |||||||||
Additional paid-in-capital | 208,478 | 207,934 | 207,584 | 207,106 | 207,626 | ||||||||||||||
Retained earnings | 105,103 | 102,951 | 99,834 | 97,420 | 96,902 | ||||||||||||||
Accumulated other comprehensive loss | (12,686 | ) | (16,557 | ) | (16,590 | ) | (15,649 | ) | (20,468 | ) | |||||||||
Unearned compensation ─ ESOP | (12,110 | ) | (12,401 | ) | (12,693 | ) | (12,984 | ) | (13,276 | ) | |||||||||
Total stockholders' equity | 504,589 | 497,657 | 493,682 | 491,395 | 485,058 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 3,015,969 | $ | 2,842,007 | $ | 2,818,702 | $ | 2,750,722 | $ | 2,623,863 | |||||||||
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Interest on loans receivable | $ | 32,945 | $ | 31,281 | $ | 30,664 | $ | 27,814 | $ | 25,276 | |||||||||
Interest on deposits due from banks | 2,430 | 1,542 | 2,911 | 990 | 1,969 | ||||||||||||||
Interest and dividend on securities and FHLBNY stock | 5,918 | 5,969 | 6,091 | 6,146 | 6,261 | ||||||||||||||
Total interest and dividend income | 41,293 | 38,792 | 39,666 | 34,950 | 33,506 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Interest on certificates of deposit | 6,926 | 6,358 | 6,380 | 5,103 | 4,362 | ||||||||||||||
Interest on other deposits | 8,519 | 7,389 | 6,540 | 5,706 | 5,639 | ||||||||||||||
Interest on borrowings | 6,825 | 7,141 | 7,923 | 6,944 | 6,963 | ||||||||||||||
Total interest expense | 22,270 | 20,888 | 20,843 | 17,753 | 16,964 | ||||||||||||||
Net interest income | 19,023 | 17,904 | 18,823 | 17,197 | 16,542 | ||||||||||||||
Provision (benefit) for credit losses | 789 | (374 | ) | (180 | ) | (375 | ) | 535 | |||||||||||
Net interest income after provision (benefit) for credit losses | 18,234 | 18,278 | 19,003 | 17,572 | 16,007 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Service charges and fees | 508 | 492 | 473 | 498 | 516 | ||||||||||||||
Brokerage commissions | — | 9 | 8 | 13 | 17 | ||||||||||||||
Late and prepayment charges | 77 | 426 | 359 | 365 | 899 | ||||||||||||||
Income on sale of mortgage loans | 218 | 274 | 302 | 244 | 173 | ||||||||||||||
Grant income | — | — | — | 438 | 3,718 | ||||||||||||||
Other | 348 | 1,057 | 565 | (273 | ) | 304 | |||||||||||||
Total non-interest income | 1,151 | 2,258 | 1,707 | 1,285 | 5,627 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Compensation and benefits | 7,674 | 7,724 | 7,844 | 8,262 | 7,566 | ||||||||||||||
Occupancy and equipment | 3,786 | 3,564 | 3,667 | 3,686 | 3,588 | ||||||||||||||
Data processing expenses | 1,099 | 1,013 | 1,127 | 1,101 | 1,582 | ||||||||||||||
Direct loan expenses | 573 | 633 | 732 | 497 | 369 | ||||||||||||||
(Benefit) provision for contingencies | (252 | ) | (493 | ) | 164 | 418 | 391 | ||||||||||||
Insurance and surety bond premiums | 292 | 263 | 253 | 250 | 255 | ||||||||||||||
Office supplies, telephone and postage | 222 | 233 | 249 | 294 | 301 | ||||||||||||||
Professional fees | 1,351 | 1,369 | 1,723 | 2,040 | 1,693 | ||||||||||||||
Microloans recoveries | (54 | ) | (65 | ) | (53 | ) | (152 | ) | (69 | ) | |||||||||
Marketing and promotional expenses | 180 | 145 | 100 | 146 | 248 | ||||||||||||||
Directors fees and regulatory assessment | 178 | 176 | 179 | 173 | 169 | ||||||||||||||
Other operating expenses | 1,265 | 1,585 | 965 | 1,182 | 1,223 | ||||||||||||||
Total non-interest expense | 16,314 | 16,147 | 16,950 | 17,897 | 17,316 | ||||||||||||||
Income before income taxes | 3,071 | 4,389 | 3,760 | 960 | 4,318 | ||||||||||||||
Provision for income taxes | 638 | 1,197 | 1,346 | 442 | 1,728 | ||||||||||||||
Net income | $ | 2,433 | $ | 3,192 | $ | 2,414 | $ | 518 | $ | 2,590 | |||||||||
Dividends on preferred shares | 281 | 75 | — | — | — | ||||||||||||||
Net income available to common stockholders | $ | 2,152 | $ | 3,117 | $ | 2,414 | $ | 518 | $ | 2,590 | |||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 0.10 | $ | 0.14 | $ | 0.11 | $ | 0.02 | $ | 0.12 | |||||||||
Diluted | $ | 0.10 | $ | 0.14 | $ | 0.11 | $ | 0.02 | $ | 0.12 | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
Basic | 22,446,009 | 22,409,803 | 22,353,492 | 22,224,945 | 22,272,076 | ||||||||||||||
Diluted | 22,612,028 | 22,419,309 | 22,366,728 | 22,406,102 | 22,349,217 | ||||||||||||||
Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
For the Nine Months Ended September 30, | ||||||||||||||||
2024 | 2023 | Variance $ | Variance % | |||||||||||||
Interest and dividend income: | ||||||||||||||||
Interest on loans receivable | $ | 94,890 | $ | 67,991 | $ | 26,899 | 39.56 | % | ||||||||
Interest on deposits due from banks | 6,883 | 3,983 | 2,900 | 72.81 | % | |||||||||||
Interest and dividend on securities and FHLBNY stock | 17,978 | 18,943 | (965 | ) | (5.09 | %) | ||||||||||
Total interest and dividend income | 119,751 | 90,917 | 28,834 | 31.71 | % | |||||||||||
Interest expense: | ||||||||||||||||
Interest on certificates of deposit | 19,664 | 11,468 | 8,196 | 71.47 | % | |||||||||||
Interest on other deposits | 22,448 | 12,864 | 9,584 | 74.50 | % | |||||||||||
Interest on borrowings | 21,889 | 18,516 | 3,373 | 18.22 | % | |||||||||||
Total interest expense | 64,001 | 42,848 | 21,153 | 49.37 | % | |||||||||||
Net interest income | 55,750 | 48,069 | 7,681 | 15.98 | % | |||||||||||
Provision for credit losses | 235 | 1,348 | (1,113 | ) | (82.57 | %) | ||||||||||
Net interest income after provision for credit losses | 55,515 | 46,721 | 8,794 | 18.82 | % | |||||||||||
Non-interest income: | ||||||||||||||||
Service charges and fees | 1,473 | 1,488 | (15 | ) | (1.01 | %) | ||||||||||
Brokerage commissions | 17 | 67 | (50 | ) | (74.63 | %) | ||||||||||
Late and prepayment charges | 862 | 2,000 | (1,138 | ) | (56.90 | %) | ||||||||||
Income on sale of mortgage loans | 794 | 354 | 440 | 124.29 | % | |||||||||||
Grant income | — | 3,718 | (3,718 | ) | (100.00 | %) | ||||||||||
Other | 1,970 | 1,311 | 659 | 50.27 | % | |||||||||||
Total non-interest income | 5,116 | 8,938 | (3,822 | ) | (42.76 | %) | ||||||||||
Non-interest expense: | ||||||||||||||||
Compensation and benefits | 23,242 | 22,437 | 805 | 3.59 | % | |||||||||||
Occupancy and equipment | 11,017 | 10,882 | 135 | 1.24 | % | |||||||||||
Data processing expenses | 3,239 | 3,982 | (743 | ) | (18.66 | %) | ||||||||||
Direct loan expenses | 1,938 | 1,126 | 812 | 72.11 | % | |||||||||||
(Benefit) provision for contingencies | (581 | ) | 1,893 | (2,474 | ) | (130.69 | %) | |||||||||
Insurance and surety bond premiums | 808 | 768 | 40 | 5.21 | % | |||||||||||
Office supplies, telephone and postage | 704 | 1,189 | (485 | ) | (40.79 | %) | ||||||||||
Professional fees | 4,443 | 5,052 | (609 | ) | (12.05 | %) | ||||||||||
Microloans recoveries | (172 | ) | (1,329 | ) | 1,157 | (87.06 | %) | |||||||||
Marketing and promotional expenses | 425 | 679 | (254 | ) | (37.41 | %) | ||||||||||
Directors fees and regulatory assessment | 533 | 484 | 49 | 10.12 | % | |||||||||||
Other operating expenses | 3,815 | 3,603 | 212 | 5.88 | % | |||||||||||
Total non-interest expense | 49,411 | 50,766 | (1,355 | ) | (2.67 | %) | ||||||||||
Income before income taxes | 11,220 | 4,893 | 6,327 | 129.31 | % | |||||||||||
Provision for income taxes | 3,181 | 2,059 | 1,122 | 54.49 | % | |||||||||||
Net income | $ | 8,039 | $ | 2,834 | $ | 5,205 | 183.66 | % | ||||||||
Dividends on preferred shares | 356 | — | 356 | 100.00 | % | |||||||||||
Net income available to common stockholders | $ | 7,683 | $ | 2,834 | $ | 4,849 | 171.10 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.34 | $ | 0.12 | $ | 0.22 | 177.36 | % | ||||||||
Diluted | $ | 0.34 | $ | 0.12 | $ | 0.22 | 177.10 | % | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 22,403,258 | 22,920,680 | (517,422 | ) | (2.26 | %) | ||||||||||
Diluted | 22,466,178 | 22,962,956 | (496,778 | ) | (2.16 | %) | ||||||||||
Ponce Financial Group, Inc. and Subsidiaries
Key Metrics
At or for the Three Months Ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
Performance Ratios: | |||||||||||||||||||
Return on average assets (1) | 0.33 | % | 0.45 | % | 0.33 | % | 0.08 | % | 0.39 | % | |||||||||
Return on average equity (1) | 1.93 | % | 2.59 | % | 1.97 | % | 0.42 | % | 2.11 | % | |||||||||
Net interest rate spread (1) (2) | 1.77 | % | 1.72 | % | 1.82 | % | 1.74 | % | 1.68 | % | |||||||||
Net interest margin (1) (3) | 2.65 | % | 2.62 | % | 2.71 | % | 2.66 | % | 2.58 | % | |||||||||
Non-interest expense to average assets (1) | 2.19 | % | 2.28 | % | 2.35 | % | 2.66 | % | 2.58 | % | |||||||||
Efficiency ratio (4) | 80.87 | % | 80.09 | % | 82.56 | % | 96.83 | % | 78.11 | % | |||||||||
Average interest-earning assets to average interest- bearing liabilities | 128.35 | % | 129.73 | % | 129.69 | % | 133.50 | % | 134.49 | % | |||||||||
Average equity to average assets | 16.97 | % | 17.41 | % | 17.00 | % | 18.25 | % | 18.32 | % | |||||||||
Capital Ratios: | |||||||||||||||||||
Total capital to risk-weighted assets (Bank only) | 21.61 | % | 22.47 | % | 22.79 | % | 23.30 | % | 25.10 | % | |||||||||
Tier 1 capital to risk-weighted assets (Bank only) | 20.45 | % | 21.24 | % | 21.54 | % | 22.05 | % | 23.85 | % | |||||||||
Common equity Tier 1 capital to risk-weighted assets (Bank only) | 20.45 | % | 21.24 | % | 21.54 | % | 22.05 | % | 23.85 | % | |||||||||
Tier 1 capital to average assets (Bank only) | 16.19 | % | 16.70 | % | 16.26 | % | 17.49 | % | 17.51 | % | |||||||||
Asset Quality Ratios: | |||||||||||||||||||
Allowance for credit losses on loans as a percentage of total loans | 1.09 | % | 1.18 | % | 1.23 | % | 1.36 | % | 1.51 | % | |||||||||
Allowance for credit losses on loans as a percentage of nonperforming loans | 139.52 | % | 130.28 | % | 140.90 | % | 152.99 | % | 169.49 | % | |||||||||
Net (charge-offs) recoveries to average outstanding loans (1) | (0.17 | %) | (0.10 | %) | (0.25 | %) | (0.24 | %) | (0.34 | %) | |||||||||
Non-performing loans as a percentage of total gross loans | 0.78 | % | 0.89 | % | 0.87 | % | 0.89 | % | 0.89 | % | |||||||||
Non-performing loans as a percentage of total assets | 0.57 | % | 0.65 | % | 0.62 | % | 0.62 | % | 0.62 | % | |||||||||
Total non-performing assets as a percentage of total assets | 0.57 | % | 0.65 | % | 0.62 | % | 0.62 | % | 0.62 | % | |||||||||
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5) | 0.73 | % | 0.82 | % | 0.79 | % | 0.81 | % | 0.82 | % | |||||||||
Other: | |||||||||||||||||||
Number of offices | 19 | 18 | 18 | 18 | 19 | ||||||||||||||
Number of full-time equivalent employees | 228 | 227 | 233 | 237 | 243 | ||||||||||||||
(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
September 30, 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 | $ | 2,993 | $ | — | $ | (124 | ) | $ | 2,869 | $ | 2,990 | $ | — | $ | (206 | ) | $ | 2,784 | ||||||||||||||
Corporate Bonds | 21,766 | — | (1,438 | ) | 20,328 | 25,790 | — | (2,122 | ) | 23,668 | ||||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations (1) | 35,620 | — | (4,976 | ) | 30,644 | 39,375 | — | (6,227 | ) | 33,148 | ||||||||||||||||||||||
FHLMC Certificates | 9,310 | — | (1,119 | ) | 8,191 | 10,163 | — | (1,482 | ) | 8,681 | ||||||||||||||||||||||
FNMA Certificates | 57,345 | — | (8,463 | ) | 48,882 | 61,359 | — | (9,842 | ) | 51,517 | ||||||||||||||||||||||
GNMA Certificates | 91 | — | — | 91 | 104 | — | — | 104 | ||||||||||||||||||||||||
Total available-for-sale securities | $ | 127,125 | $ | — | $ | (16,120 | ) | $ | 111,005 | $ | 139,781 | $ | — | $ | (19,879 | ) | $ | 119,902 | ||||||||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||||||||||
U.S. Agency Bonds | $ | 25,000 | $ | — | $ | (49 | ) | $ | 24,951 | $ | 25,000 | $ | — | $ | (181 | ) | $ | 24,819 | ||||||||||||||
Corporate Bonds | 57,500 | — | (618 | ) | 56,882 | 82,500 | — | (2,691 | ) | 79,809 | ||||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations (1) | 193,440 | 454 | (2,946 | ) | 190,948 | 212,093 | 104 | (5,170 | ) | 207,027 | ||||||||||||||||||||||
FHLMC Certificates | 3,441 | — | (169 | ) | 3,272 | 3,897 | — | (244 | ) | 3,653 | ||||||||||||||||||||||
FNMA Certificates | 108,577 | 22 | (1,967 | ) | 106,632 | 118,944 | — | (4,088 | ) | 114,856 | ||||||||||||||||||||||
SBA Certificates | 15,985 | 153 | — | 16,138 | 19,712 | 166 | — | 19,878 | ||||||||||||||||||||||||
Allowance for Credit Losses | (207 | ) | — | — | — | (398 | ) | — | — | — | ||||||||||||||||||||||
Total held-to-maturity securities | $ | 403,736 | $ | 629 | $ | (5,749 | ) | $ | 398,823 | $ | 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 Nine | For the | |||||||
Months Ended | Year Ended | |||||||
September 30, 2024 | December 31, 2023 | |||||||
Allowance for credit losses on securities at beginning of the period | $ | 398 | $ | — | ||||
CECL adoption | — | 662 | ||||||
Benefit for credit losses | (191 | ) | (264 | ) | ||||
Allowance for credit losses on securities at end of the period | $ | 207 | $ | 398 | ||||
Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio
As of | ||||||||||||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||
Investor Owned | $ | 332,380 | 15.09 | % | $ | 337,292 | 16.49 | % | $ | 339,331 | 16.92 | % | $ | 343,689 | 17.89 | % | $ | 347,082 | 19.13 | % | ||||||||||||||||||||
Owner-Occupied | 145,065 | 6.59 | % | 147,485 | 7.21 | % | 150,842 | 7.52 | % | 152,311 | 7.93 | % | 151,866 | 8.37 | % | |||||||||||||||||||||||||
Multifamily residential | 678,029 | 30.78 | % | 545,323 | 26.66 | % | 545,825 | 27.22 | % | 550,559 | 28.65 | % | 553,694 | 30.52 | % | |||||||||||||||||||||||||
Nonresidential properties | 383,277 | 17.40 | % | 337,583 | 16.51 | % | 327,350 | 16.32 | % | 342,343 | 17.81 | % | 321,472 | 17.71 | % | |||||||||||||||||||||||||
Construction and land | 631,461 | 28.67 | % | 641,879 | 31.39 | % | 608,665 | 30.35 | % | 503,925 | 26.22 | % | 411,383 | 22.67 | % | |||||||||||||||||||||||||
Total mortgage loans | 2,170,212 | 98.53 | % | 2,009,562 | 98.26 | % | 1,972,013 | 98.33 | % | 1,892,827 | 98.50 | % | 1,785,497 | 98.40 | % | |||||||||||||||||||||||||
Non-mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Business loans | 28,499 | 1.29 | % | 30,222 | 1.48 | % | 26,664 | 1.33 | % | 19,779 | 1.03 | % | 18,416 | 1.02 | % | |||||||||||||||||||||||||
Consumer loans (1) | 4,021 | 0.18 | % | 5,305 | 0.26 | % | 6,741 | 0.34 | % | 8,966 | 0.47 | % | 10,416 | 0.58 | % | |||||||||||||||||||||||||
Total non-mortgage loans | 32,520 | 1.47 | % | 35,527 | 1.74 | % | 33,405 | 1.67 | % | 28,745 | 1.50 | % | 28,832 | 1.60 | % | |||||||||||||||||||||||||
Total loans, gross | 2,202,732 | 100.00 | % | 2,045,089 | 100.00 | % | 2,005,418 | 100.00 | % | 1,921,572 | 100.00 | % | 1,814,329 | 100.00 | % | |||||||||||||||||||||||||
Net deferred loan origination costs | 1,565 | 1,145 | 674 | 468 | 692 | |||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans | (23,966 | ) | (24,061 | ) | (24,664 | ) | (26,154 | ) | (27,414 | ) | ||||||||||||||||||||||||||||||
Loans, net | $ | 2,180,331 | $ | 2,022,173 | $ | 1,981,428 | $ | 1,895,886 | $ | 1,787,607 | ||||||||||||||||||||||||||||||
(1) | As of September 30, 2024, June 30,2024, March 31, 2024, December 31, 2023, and September 30, 2023, consumer loans include | |
Ponce Financial Group, Inc. and Subsidiaries
Microloans Exposure (previously originated by the Bank under its arrangement with Grain)
Total Microloans Exposure as of September 30, 2024 | ||||
(in thousands) | ||||
Microloans Receivable from Grain | ||||
Microloans originated - put back (inception-to-September 30, 2024) | $ | 23,932 | ||
Write-downs, net of recoveries (inception-to-date as of September 30, 2024) | (15,287 | ) | ||
Cash receipts (inception-to-September 30, 2024) | (6,819 | ) | ||
Grant/reserve | (1,826 | ) | ||
Net receivable as of September 30, 2024 | $ | — | ||
Microloans Receivables from Borrowers | ||||
Microloans receivable as of September 30, 2024 | $ | 3,033 | ||
Allowance for credit losses on loans as of September 30, 2024 (1) | (2,570 | ) | ||
Microloans, net of allowance for credit losses on loans as of September 30, 2024 | $ | 463 | ||
Investments | ||||
Investment in Grain | $ | 1,000 | ||
Investment write-off in Q3 2022 | (1,000 | ) | ||
Net investment as of September 30, 2024 | — | |||
Total exposure related to microloans as of September 30, 2024 (2) | $ | 463 | ||
(1) | Excludes | |
(2) | Total remaining exposure to microloan borrowers. These loans are now serviced by the Bank. | |
On November 1, 2023, Ponce Financial Group, Inc. and Grain Technologies, Inc. ("Grain") signed a Perpetual Software License Agreement in order for the Bank to assume the servicing of the remaining microloans. In order to facilitate the transfer of the servicing responsibilities to the Bank, Grain granted the Bank a perpetual right and license to use the Grain software, including the source code to service the remaining microloans.
Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans
For the Three Months Ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Allowance for credit losses on loans at beginning of the period | $ | 24,061 | $ | 24,664 | $ | 26,154 | $ | 27,414 | $ | 28,173 | |||||||||
Provision (benefit) for credit losses on loans | 801 | (120 | ) | (255 | ) | (126 | ) | 750 | |||||||||||
Charge-offs: | |||||||||||||||||||
Mortgage loans: | |||||||||||||||||||
1-4 family residences | |||||||||||||||||||
Investor owned | — | — | — | — | — | ||||||||||||||
Owner occupied | — | — | — | — | — | ||||||||||||||
Multifamily residences | — | — | — | — | — | ||||||||||||||
Nonresidential properties | (7 | ) | — | — | — | — | |||||||||||||
Construction and land | — | — | — | — | — | ||||||||||||||
Non-mortgage loans: | |||||||||||||||||||
Business | (450 | ) | — | (52 | ) | (63 | ) | — | |||||||||||
Consumer | (634 | ) | (747 | ) | (1,302 | ) | (1,135 | ) | (1,592 | ) | |||||||||
Total charge-offs | (1,091 | ) | (747 | ) | (1,354 | ) | (1,198 | ) | (1,592 | ) | |||||||||
Recoveries: | |||||||||||||||||||
Non-mortgage loans: | |||||||||||||||||||
Business | 1 | 7 | 1 | — | 3 | ||||||||||||||
Consumer | 194 | 257 | 118 | 64 | 80 | ||||||||||||||
Total recoveries | 195 | 264 | 119 | 64 | 83 | ||||||||||||||
Net (charge-offs) recoveries | (896 | ) | (483 | ) | (1,235 | ) | (1,134 | ) | (1,509 | ) | |||||||||
Allowance for credit losses on loans at end of the period | $ | 23,966 | $ | 24,061 | $ | 24,664 | $ | 26,154 | $ | 27,414 | |||||||||
Ponce Financial Group, Inc. and Subsidiaries
Deposits
As of | ||||||||||||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Demand (1) | $ | 182,737 | 9.78 | % | $ | 178,125 | 11.09 | % | $ | 191,541 | 12.07 | % | $ | 185,151 | 12.28 | % | $ | 214,326 | 15.30 | % | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||
NOW/IOLA accounts (1) | 71,445 | 3.82 | % | 81,178 | 5.05 | % | 73,202 | 4.62 | % | 77,909 | 5.17 | % | 74,055 | 5.29 | % | |||||||||||||||||||||||||
Money market accounts | 660,168 | 35.30 | % | 502,255 | 31.27 | % | 482,344 | 30.42 | % | 432,735 | 28.70 | % | 370,500 | 26.44 | % | |||||||||||||||||||||||||
Reciprocal deposits | 94,145 | 5.03 | % | 109,945 | 6.85 | % | 97,718 | 6.16 | % | 96,860 | 6.42 | % | 82,670 | 5.90 | % | |||||||||||||||||||||||||
Savings accounts | 108,941 | 5.82 | % | 109,694 | 6.83 | % | 112,713 | 7.11 | % | 114,139 | 7.57 | % | 117,870 | 8.41 | % | |||||||||||||||||||||||||
Total NOW, money market, reciprocal and savings accounts | 934,699 | 49.97 | % | 803,072 | 50.00 | % | 765,977 | 48.31 | % | 721,643 | 47.86 | % | 645,095 | 46.04 | % | |||||||||||||||||||||||||
Certificates of deposit of | 174,053 | 9.31 | % | 156,224 | 9.73 | % | 146,296 | 9.23 | % | 132,153 | 8.77 | % | 122,353 | 8.73 | % | |||||||||||||||||||||||||
Brokered certificates of deposit (2) | 94,531 | 5.05 | % | 94,614 | 5.89 | % | 94,689 | 5.97 | % | 98,729 | 6.55 | % | 98,729 | 7.05 | % | |||||||||||||||||||||||||
Listing service deposits (2) | 7,376 | 0.39 | % | 9,361 | 0.58 | % | 12,688 | 0.80 | % | 14,433 | 0.96 | % | 15,180 | 1.08 | % | |||||||||||||||||||||||||
All other certificates of deposit less than | 476,927 | 25.50 | % | 364,701 | 22.71 | % | 374,593 | 23.62 | % | 355,511 | 23.58 | % | 305,449 | 21.80 | % | |||||||||||||||||||||||||
Total certificates of deposit | 752,887 | 40.25 | % | 624,900 | 38.91 | % | 628,266 | 39.62 | % | 600,826 | 39.86 | % | 541,711 | 38.66 | % | |||||||||||||||||||||||||
Total interest-bearing deposits | 1,687,586 | 90.22 | % | 1,427,972 | 88.91 | % | 1,394,243 | 87.93 | % | 1,322,469 | 87.72 | % | 1,186,806 | 84.70 | % | |||||||||||||||||||||||||
Total deposits | $ | 1,870,323 | 100.00 | % | $ | 1,606,097 | 100.00 | % | $ | 1,585,784 | 100.00 | % | $ | 1,507,620 | 100.00 | % | $ | 1,401,132 | 100.00 | % | ||||||||||||||||||||
(1) | As of December 31, 2023 and September 30, 2023 | |
(2) | As of December 31, 2023, and September 30, 2023, there were | |
Ponce Financial Group, Inc. and Subsidiaries
Borrowings
September 30, | 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) | |||||||||||||||||||||||
Term advances ending: | |||||||||||||||||||||||
2024 | $ | 59,321 | $ | 59,321 | 4.00 | % | $ | 363,321 | $ | 363,321 | 4.55 | % | |||||||||||
2025 | 50,000 | 50,000 | 4.41 | 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 | |||||||||||||||||
Thereafter | 50,000 | 50,000 | 3.35 | 50,000 | 50,000 | 3.35 | |||||||||||||||||
$ | 580,421 | $ | 580,421 | 3.86 | % | $ | 684,421 | $ | 684,421 | 4.10 | % | ||||||||||||
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
As of Three Months Ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Non-accrual loans: | |||||||||||||||||||
Mortgage loans: | |||||||||||||||||||
1-4 family residential | |||||||||||||||||||
Investor owned | $ | 436 | $ | 436 | $ | 399 | $ | 793 | $ | 396 | |||||||||
Owner occupied | 1,423 | 1,423 | 1,426 | 1,682 | 1,685 | ||||||||||||||
Multifamily residential | 4,685 | 5,754 | 4,098 | 2,979 | 1,444 | ||||||||||||||
Nonresidential properties | 824 | 828 | 441 | — | — | ||||||||||||||
Construction and land | 8,907 | 8,907 | 10,277 | 10,759 | 11,721 | ||||||||||||||
Non-mortgage loans: | |||||||||||||||||||
Business | 180 | 396 | 146 | 165 | 209 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) | $ | 16,455 | $ | 17,744 | $ | 16,787 | $ | 16,378 | $ | 15,455 | |||||||||
Non-accruing modifications to borrowers experiencing financial difficulty (1): | |||||||||||||||||||
Mortgage loans: | |||||||||||||||||||
1-4 family residential | |||||||||||||||||||
Investor owned | $ | 278 | $ | 277 | $ | 270 | $ | 270 | $ | 270 | |||||||||
Owner occupied | 444 | 448 | 447 | 447 | 449 | ||||||||||||||
Multifamily residential | — | — | — | — | — | ||||||||||||||
Nonresidential properties | — | — | — | — | — | ||||||||||||||
Construction and land | — | — | — | — | — | ||||||||||||||
Non-mortgage loans: | |||||||||||||||||||
Business | — | — | — | — | — | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Total non-accruing modifications to borrowers experiencing financial difficulty (1) | 722 | 725 | 717 | 717 | 719 | ||||||||||||||
Total non-accrual loans (2) | $ | 17,177 | $ | 18,469 | $ | 17,504 | $ | 17,095 | $ | 16,174 | |||||||||
Accruing modifications to borrowers experiencing financial difficulty (1): | |||||||||||||||||||
Mortgage loans: | |||||||||||||||||||
1-4 family residential | |||||||||||||||||||
Investor owned | $ | 1,821 | $ | 1,830 | $ | 1,850 | $ | 2,112 | $ | 2,131 | |||||||||
Owner occupied | 2,116 | 2,171 | 2,288 | 2,313 | 2,335 | ||||||||||||||
Multifamily residential | — | — | — | — | — | ||||||||||||||
Nonresidential properties | 672 | 707 | 748 | 757 | 765 | ||||||||||||||
Construction and land | — | — | — | — | — | ||||||||||||||
Non-mortgage loans: | |||||||||||||||||||
Business | 222 | — | — | — | — | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Total accruing modifications to borrowers experiencing financial difficulty (1) | $ | 4,831 | $ | 4,708 | $ | 4,886 | $ | 5,182 | $ | 5,231 | |||||||||
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) | $ | 22,008 | $ | 23,177 | $ | 22,390 | $ | 22,277 | $ | 21,405 | |||||||||
Total non-performing loans to total gross loans | 0.78 | % | 0.89 | % | 0.87 | % | 0.89 | % | 0.89 | % | |||||||||
Total non-performing assets to total assets | 0.57 | % | 0.65 | % | 0.62 | % | 0.62 | % | 0.62 | % | |||||||||
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1) | 0.73 | % | 0.82 | % | 0.79 | % | 0.81 | % | 0.82 | % | |||||||||
(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 September 30, | |||||||||||||||||||||
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) | $ | 2,096,592 | $ | 32,945 | 6.25 | % | $ | 1,777,585 | $ | 25,276 | 5.64 | % | |||||||||
Securities (3) | 548,708 | 5,324 | 3.86 | % | 599,573 | 5,821 | 3.85 | % | |||||||||||||
Other (4) | 210,057 | 3,024 | 5.73 | % | 169,570 | 2,409 | 5.64 | % | |||||||||||||
Total interest-earning assets | 2,855,357 | 41,293 | 5.75 | % | 2,546,728 | 33,506 | 5.22 | % | |||||||||||||
Non-interest-earning assets | 107,153 | 111,771 | |||||||||||||||||||
Total assets | $ | 2,962,510 | $ | 2,658,499 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW/IOLA (5) (6) | $ | 74,690 | $ | 174 | 0.93 | % | $ | 69,935 | $ | 141 | 0.80 | % | |||||||||
Money market (6) | 711,385 | 8,318 | 4.65 | % | 485,042 | 5,468 | 4.47 | % | |||||||||||||
Savings | 109,571 | 25 | 0.09 | % | 118,095 | 29 | 0.10 | % | |||||||||||||
Certificates of deposit | 655,562 | 6,926 | 4.20 | % | 527,302 | 4,362 | 3.28 | % | |||||||||||||
Total deposits | 1,551,208 | 15,443 | 3.96 | % | 1,200,374 | 10,000 | 3.31 | % | |||||||||||||
Advance payments by borrowers | 13,151 | 2 | 0.06 | % | 14,537 | 1 | 0.03 | % | |||||||||||||
Borrowings | 660,312 | 6,825 | 4.11 | % | 678,676 | 6,963 | 4.07 | % | |||||||||||||
Total interest-bearing liabilities | 2,224,671 | 22,270 | 3.98 | % | 1,893,587 | 16,964 | 3.55 | % | |||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Non-interest-bearing demand (5) | 185,543 | — | 231,299 | — | |||||||||||||||||
Other non-interest-bearing liabilities | 49,702 | — | 46,643 | — | |||||||||||||||||
Total non-interest-bearing liabilities | 235,245 | — | 277,942 | — | |||||||||||||||||
Total liabilities | 2,459,916 | 22,270 | 2,171,529 | 16,964 | |||||||||||||||||
Total equity | 502,594 | 486,970 | |||||||||||||||||||
Total liabilities and total equity | $ | 2,962,510 | 3.98 | % | $ | 2,658,499 | 3.55 | % | |||||||||||||
Net interest income | $ | 19,023 | $ | 16,542 | |||||||||||||||||
Net interest rate spread (7) | 1.77 | % | 1.67 | % | |||||||||||||||||
Net interest-earning assets (8) | $ | 630,686 | $ | 653,141 | |||||||||||||||||
Net interest margin (9) | 2.65 | % | 2.58 | % | |||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 128.35 | % | 134.49 | % | |||||||||||||||||
(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 | |
(6) | Includes | |
(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 Nine Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Outstanding | Average | Outstanding | Average | ||||||||||||||||||||
Balance | Interest | Yield/Rate (1) | Balance | Interest | Yield/Rate | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans (2) | $ | 2,038,879 | $ | 94,890 | 6.22 | % | $ | 1,678,369 | $ | 67,991 | 5.42 | % | |||||||||||
Securities (3) | 562,451 | 16,429 | 3.90 | % | 614,987 | 17,627 | 3.83 | % | |||||||||||||||
Other (4) | 196,668 | 8,432 | 5.73 | % | 127,961 | 5,299 | 5.54 | % | |||||||||||||||
Total interest-earning assets | 2,797,998 | 119,751 | 5.72 | % | 2,421,317 | 90,917 | 5.02 | % | |||||||||||||||
Non-interest-earning assets | 106,500 | 118,609 | |||||||||||||||||||||
Total assets | $ | 2,904,498 | $ | 2,539,926 | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
NOW/IOLA (5) (6) | $ | 76,817 | $ | 543 | 0.94 | % | $ | 69,331 | $ | 1,133 | 2.18 | % | |||||||||||
Money market (6) | 618,725 | 21,819 | 4.71 | % | 403,171 | 11,637 | 3.86 | % | |||||||||||||||
Savings | 111,636 | 80 | 0.10 | % | 123,218 | 88 | 0.10 | % | |||||||||||||||
Certificates of deposit | 640,369 | 19,664 | 4.10 | % | 522,740 | 11,468 | 2.93 | % | |||||||||||||||
Total deposits | 1,447,547 | 42,106 | 3.89 | % | 1,118,460 | 24,326 | 2.91 | % | |||||||||||||||
Advance payments by borrowers | 13,660 | 6 | 0.06 | % | 14,814 | 6 | 0.05 | % | |||||||||||||||
Borrowings | 703,775 | 21,889 | 4.15 | % | 617,912 | 18,516 | 4.01 | % | |||||||||||||||
Total interest-bearing liabilities | 2,164,982 | 64,001 | 3.95 | % | 1,751,186 | 42,848 | 3.27 | % | |||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||||
Non-interest-bearing demand (5) | 191,087 | — | 251,645 | — | |||||||||||||||||||
Other non-interest-bearing liabilities | 51,061 | — | 43,864 | — | |||||||||||||||||||
Total non-interest-bearing liabilities | 242,148 | — | 295,509 | — | |||||||||||||||||||
Total liabilities | 2,407,130 | 64,001 | 2,046,695 | 42,848 | |||||||||||||||||||
Total equity | 497,368 | 493,231 | |||||||||||||||||||||
Total liabilities and total equity | $ | 2,904,498 | 3.95 | % | $ | 2,539,926 | 3.27 | % | |||||||||||||||
Net interest income | $ | 55,750 | $ | 48,069 | |||||||||||||||||||
Net interest rate spread (7) | 1.77 | % | 1.74 | % | |||||||||||||||||||
Net interest-earning assets (8) | $ | 633,016 | $ | 670,131 | |||||||||||||||||||
Net interest margin (9) | 2.66 | % | 2.65 | % | |||||||||||||||||||
Average interest-earning assets to | |||||||||||||||||||||||
interest-bearing liabilities | 129.24 | % | 138.27 | % | |||||||||||||||||||
(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 | |
(6) | Includes | |
(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
Other Data
As of | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
Other Data | |||||||||||||||||||
Common shares issued | 24,886,711 | 24,886,711 | 24,886,711 | 24,886,711 | 24,886,711 | ||||||||||||||
Less treasury shares | 1,067,248 | 1,074,979 | 1,096,214 | 1,101,191 | 1,233,111 | ||||||||||||||
Common shares outstanding at end of period | 23,819,463 | 23,811,732 | 23,790,497 | 23,785,520 | 23,653,600 | ||||||||||||||
Book value per common share | $ | 11.74 | $ | 11.45 | $ | 11.29 | $ | 11.20 | $ | 10.99 | |||||||||
Tangible book value per common share | $ | 11.74 | $ | 11.45 | $ | 11.29 | $ | 11.20 | $ | 10.99 | |||||||||
Contact:
Sergio Vaccaro
sergio.vaccaro@poncebank.net
718-931-9000
FAQ
What was Ponce Financial Group's (PDLB) earnings per share in Q3 2024?
How much did PDLB's deposits grow in Q3 2024 compared to December 2023?