Ponce Financial Group, Inc. Reports Third Quarter 2025 Results

Rhea-AI Summary

Ponce Financial Group (NASDAQ: PDLB) reported third quarter 2025 results for the period ended September 30, 2025. Q3 net income available to common was $6.2M or $0.27 diluted EPS; nine‑month net income available to common was $17.7M or $0.77 diluted EPS. Net interest income was $25.2M in Q3 (net interest margin 3.30%), up 32.7% YoY for the quarter. Loans and deposits grew: net loans $2.49B (+8.90% vs Dec 31, 2024) and deposits $2.06B (+8.86% vs Dec 31, 2024). Total assets were $3.16B at Sept 30, 2025.

Positive

• Q3 net income available to common of $6.2M
• Net interest income +32.72% year-over-year for the quarter
• Net loans receivable $2.49B, +8.90% vs Dec 31, 2024
• Deposits $2.06B, +8.86% vs Dec 31, 2024

Negative

• Securities declined $93.0M (−19.66%) vs Dec 31, 2024
• Total non-performing assets $32.4M at Sept 30, 2025, up from $22.0M year‑ago
• Credit loss provision nine months $2.7M vs benefit $0.2M for prior nine months

Insights

Banking financial analyst

Ponce Financial shows clear earnings and margin improvement with controlled expenses but rising nonperformers warrant monitoring.

Ponce Financial Group reported net income available to common stockholders of $6.2 million (EPS $0.27) for the quarter ended September 30, 2025, and $17.7 million (EPS $0.77) for the nine months ended September 30, 2025. Net interest income was $25.2 million in Q3 and $71.9 million year-to-date, while net interest margin widened to 3.30% for the quarter. Loan growth and deposit growth were material: net loans receivable of $2.49 billion and deposits of $2.06 billion as of September 30, 2025.

The business driver is higher net interest income and improved margin, achieved with almost flat non-interest expense year-over-year. Risks and dependencies are explicit in the numbers: credit provisions increased (Q3 provision for credit losses $1.5 million and nine-month provision $2.7 million), total non-performing assets rose to $32.4 million, and the allowance for credit losses on loans was 0.98%. Also, securities balances declined by 19.66% from year-end 2024 to $379.9 million, which affects liquidity composition.

Concrete items to watch: quarterly trends in net interest margin and net interest income, sequential credit metrics (non-performing assets and provision levels) and the allowance coverage, and progress on the U.S. Treasury Emergency Capital Investment Program conditions (the company reports 81% deep impact lending after 13 quarters against a 60% threshold for 16 cumulative quarters and a maintained dividend yield at 0.50% for the dividend period starting in 2026). Near-term horizon: monitor Q4 2025 results and the next dividend period starting in 2026 for confirmation of sustained margin and credit stability.

NEW YORK, Oct. 24, 2025 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank, N.A. (the “Bank”), today announced results for the third quarter of 2025.

Third Quarter 2025 Highlights (Compared to Prior Periods):

• Net income available to common stockholders was $6.2 million, or $0.27 per diluted share for the three months ended September 30, 2025, as compared to net income available to common stockholders of $5.8 million, or $0.25 per diluted share for the three months ended June 30, 2025 and net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024. Total net income for the three months ended September 30, 2025 was $6.5 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended September 30, 2025.
• Included in the $6.2 million of net income available to common stockholders for the third quarter of 2025 results is $46.8 million in interest and dividend income and $1.5 million in non-interest income, offset by $21.6 million in interest expense, $16.6 million in non-interest expense, $2.3 million in provision for income taxes, $1.5 million in provision for credit losses and $0.3 million in dividends on preferred shares.
• Net interest income of $25.2 million for the third quarter of 2025 increased $0.8 million, or 3.37%, from the prior quarter and increased $6.2 million, or 32.72%, from the same quarter last year. 
• Net interest margin was 3.30% for the third quarter of 2025, versus 3.27% for the prior quarter and 2.65% for the same quarter last year.

Nine Months 2025 Highlights (Compared to 2024):

• Net income available to common stockholders was $17.7 million, or $0.77 per diluted share for the nine months ended September 30, 2025, as compared to net income available to common stockholders of $7.7 million, or $0.34 per diluted share for the nine months ended September 30, 2024. Total net income for the nine months ended September 30, 2025 was $18.6 million. The Company paid dividends of $0.8 million on its preferred stock during the nine months ended September 30, 2025.
• Net interest income for the nine months ended September 30, 2025 was $71.9 million, an increase of $16.1 million, or 28.93%, compared to $55.8 million for the nine months ended September 30, 2024. 
• Non-interest income for the nine months ended September 30, 2025 was $5.9 million, an increase of $0.8 million, or 15.97%, from $5.1 million for the nine months ended September 30, 2024.
• Non-interest expense for the nine months ended September 30, 2025 was $50.4 million, an increase of $0.4 million, or 0.77%, compared to $50.0 million for the nine months ended September 30, 2024.
• Cash and equivalents were $146.6 million as of September 30, 2025, an increase of $6.7 million, or 4.82%, from $139.8 million as of December 31, 2024.
• Securities totaled $379.9 million as of September 30, 2025, a decrease of $93.0 million, or 19.66%, from $472.9 million as of December 31, 2024 primarily due to regular principal payments, the call of three available-for-sale securities in the total amount of $7.0 million and the maturity/call of three held-for-sale securities in the amount of $50.0 million.
• Net loans receivable were $2.49 billion as of September 30, 2025, an increase of $203.4 million, or 8.90%, from $2.29 billion as of December 31, 2024.
• Deposits were $2.06 billion as of September 30, 2025, an increase of $167.9 million, or 8.86%, from $1.90 billion as of December 31, 2024.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “In these uncertain times, we continue to execute on our long-term strategy of increasing margin through yield improvement and controlled cost of funds and operating expenses. We are very pleased with the results. We note our incremental profitability year-on-year and the consistency of our earnings. Our diluted earnings per share of $0.77 for the nine months ended September 30, 2025, more than doubled from the same period last year, driven by incremental net interest and non-interest income, achieved while keeping non-interest expenses almost flat. Our net interest margin this quarter increased by 3 basis points compared to the prior quarter, reflecting our decreasing funding costs. We were also busy working on the future and opened a new branch in the Inwood neighborhood of Manhattan and modernized our charter, becoming both a financial holding company and a bank holding company while Ponce Bank converted to a national bank.  These developments should enhance our funding sources and level our playing fields."

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program. Our strong level of loan originations from April 2025 to September 2025 ensures that our dividend yield will continue at the 0.50% level in the next dividend period starting in 2026. Also, we’re mindful of our percentage of deep impact lending, as we need to be at 60% or above for 16 quarters cumulatively, as a condition to buy the preferred stock back. After 13 quarters, including the quarter ended September 30, 2025, we are at 81% deep impact lending.”  

The table below indicate the Key Metrics at or for the three months ended:

	At or for the Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
Performance Ratios:
Return on average assets (1)		0.82	%			0.79	%			0.77	%			0.38	%			0.33	%
Return on common equity (1)		8.10	%			7.88	%			7.97	%			3.76	%			3.06	%
Net interest margin (1) (2)		3.30	%			3.27	%			2.98	%			2.80	%			2.65	%
Non-interest expense to average assets (1)		2.10	%			2.18	%			2.19	%			2.25	%			2.19	%
Efficiency ratio (3)		62.15	%			63.69	%			68.70	%			75.63	%			80.87	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)		24.08	%			22.65	%			22.84	%			22.98	%			22.87	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)		13.39	%			12.49	%			12.51	%			12.44	%			12.28	%
Tier 1 capital to total assets (Ponce Financial Group)		17.33	%			17.13	%			16.84	%			17.70	%			17.81	%
Total capital to risk-weighted assets (Bank only)		21.79	%			21.22	%			21.38	%			21.47	%			21.61	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.66	%			20.15	%			20.35	%			20.40	%			20.45	%
Tier 1 capital to total assets (Bank only)		16.08	%			15.99	%			15.61	%			15.81	%			16.19	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.98	%			0.97	%			0.96	%			0.97	%			1.09	%
Allowance for credit losses on loans as a percentage of nonperforming loans		88.88	%			101.01	%			84.15	%			82.29	%			139.52	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.03	%)			(0.04	%)			(0.04	%)			(0.45	%)			(0.17	%)
Non-performing loans as a percentage of total assets		0.88	%			0.76	%			0.88	%			0.90	%			0.57	%
Other:
Number of offices		18				17				18				19				19
Number of full-time equivalent employees		209				206				211				218				228

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

Summary of Results of Operations

Net income for the three months ended September 30, 2025 was $6.5 million compared to net income of $6.1 million for the three months ended June 30, 2025 and net income of $2.4 million for the three months ended September 30, 2024.

The $0.4 million increase of net income for the three months ended September 30, 2025 compared to the three months ended June 30, 2025 was attributed mainly to an increase of $0.8 million in net interest income and decreases of $0.3 million in provision for credit losses and $0.3 million in non-interest expense, offset by a decrease of $0.6 million in non-interest income and an increase of $0.4 million in provision for income taxes.

The $4.1 million increase of net income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was largely due to increases of $6.2 million in net interest income and $0.3 million in non-interest income, offset by increases of $1.6 million in provision for income taxes and $0.8 million in provision for credit losses while remain flat on non-interest expense

Net income for the nine months ended September 30, 2025 was $18.6 million compared to net income of $8.0 million for the nine months ended September 30, 2024. The $10.5 million increase of net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was attributed mainly to increases of $16.1 million in net interest income and $0.8 million in non-interest income, partially offset by increases of $3.1 million in provision for credit losses, $2.9 million in provision for income taxes and $0.4 million in non-interest expense.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended September 30, 2025, increased $0.8 million, or 3.37%, to $25.2 million compared to $24.4 million for the three months ended June 30, 2025 and increased $6.2 million, or 32.72%, compared to $19.0 million for the three months ended September 30, 2024.

The $0.8 million increase in net interest income from the three months ended June 30, 2025 was attributable to an increase of $1.0 million in total interest and dividend income, offset by an increase of $0.2 million in total interest expense. The $6.2 million increase in net interest income from the three months ended September 30, 2024 was attributable to an increase of $5.6 million in total interest and dividend income and a decrease of $0.7 million in total interest expense.

Net interest income for the nine months ended September 30, 2025, increased $16.1 million, or 28.93%, to $71.9 million compared to $55.8 million for the nine months ended September 30, 2024. The $16.1 million increase in net interest income was attributable to an increase of $17.0 million in total interest and dividend income, offset by an increase of $0.8 million in total interest expense.

Net interest margin was 3.30% for the three months ended September 30, 2025 compared to 3.27% for the prior quarter, an increase of 3bps and 2.65% for the same period last year, an increase of 65bps.

Net interest margin was 3.18% for the nine months ended September 30, 2025 compared to 2.66% for the nine months ended September 30, 2024, an increase of 52bps.

Non-interest Income

Non-interest income for the three months ended September 30, 2025, was $1.5 million, a decrease of $0.6 million, or 27.57%, compared to $2.1 million for the three months ended June 30, 2025 and an increase of $0.3 million, or 29.63%, compared to $1.2 million for the three months ended September 30, 2024.

The $0.6 million decrease in non-interest income from the three months ended June 30, 2025 was largely attributable to decreases of
$0.5 million in other non-interest income attributable to the Bank's investment in Oaktree SBIC Fund, L.P. ("Oaktree") as a result of a loss from Oaktree's investment and $0.1 million in late and prepayment charges.

The $0.3 million increase in non-interest income from the three months ended September 30, 2024 was largely attributable to increases of $0.4 million in grant income and $0.3 million in late and prepayment charges, partially offset by a decrease of $0.4 million in other non-interest income attributable to the Bank's investment in Oaktree as a result of a loss from Oaktree's investment.

Non-interest income for the nine months ended September 30, 2025, was $5.9 million, an increase of $0.8 million, or 15.97%, compared to $5.1 million for the nine months ended September 30, 2024. The $0.8 million increase in non-interest income was largely attributable to increases of $0.9 million in grant income, $0.8 million in late and prepayment charges and $0.4 million in income on sale of SBA loans, partially offset by decreases of $1.0 million in other non-interest income attributable to the Bank's investment in Oaktree as a result of a loss from Oaktree's investment and $0.3 million in income on the sale of mortgage loans.

Non-interest Expense

Non-interest expense for the three months ended September 30, 2025 was $16.6 million, a decrease of $0.3 million, or 1.49%, compared to $16.9 million for the three months ended June 30, 2025 and remained flat at $16.6 million when compared to the three months ended September 30, 2024.

The $0.3 million decrease in non-interest expense from the three months ended June 30, 2025 was mainly attributable to decreases of $0.3 million in federal deposit insurance and regulatory assessment, $0.2 million in other non-interest expense, partially offset by an increase of $0.2 million in compensation and benefits.

Non-interest expense for the nine months ended September 30, 2025, was $50.4 million, an increase of $0.4 million, or 0.77%, compared to $50.0 million for the nine months ended September 30, 2024. The $0.4 million increase in non-interest expense was mainly attributable to increases of $0.7 million in occupancy and equipment, $0.4 million in data processing expenses and $0.4 million in other operating expense, partially offset by decreases of $1.2 million in direct loan expenses and $0.3 million in professional fees.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $32.4 million at September 30, 2025 compared to $28.5 million at June 30, 2025 and $22.0 million at September 30, 2024.

During the three months ended September 30, 2025, a credit loss provision of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion and $0.5 million charged on the unfunded portion on loans. During the three months ended June 30, 2025, a credit loss provision of $1.6 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.3 million charged on the unfunded portion on loans. During the three months ended September 30, 2024, a credit loss provision of $0.5 million on loans was recorded, consisting of $0.8 million charged on the funded portion on loans and a benefit of $0.3 million on the unfunded portion on loans.

During the nine months ended September 30, 2025, a credit loss provision of $2.7 million on loans was recorded, consisting of $2.9 million charged on the funded portion and a benefit of $0.2 million on the unfunded portion on loans. During the nine months ended September 30, 2024, a credit loss benefit of $0.2 million on loans was recorded, consisting of $0.4 million charged on the funded portion on loans and a benefit of $0.6 million on unfunded portion on loans.

Balance Sheet Summary

Total assets increased $117.1 million, or 3.85%, to $3.16 billion as of September 30, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $203.4 million in net loans receivable, $8.1 million in other assets, $6.7 million in cash and cash equivalents, $1.1 million in accrued interest receivable and $0.3 million in deferred tax asset, partially offset by decreases of $82.8 million in held-to-maturity securities, $10.1 million in available-for-sale securities, $4.9 million in mortgage loans held for sale, $3.2 million in Federal Home Loan Bank of New York stock, $0.8 million in right of use asset and $0.7 million in premises and equipment, net.

Total liabilities increased $92.8 million, or 3.66%, to $2.63 billion as of September 30, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to increases of $164.0 million in deposits, $3.9 million in advance payments by borrowers for taxes and insurance and $0.7 million in accrued interest payable, partially offset by decreases of $75.0 million in borrowings and $0.7 million in operating lease liabilities.

Total stockholders’ equity increased $24.3 million, or 4.81%, to $529.8 million as of September 30, 2025, from $505.5 million as of December 31, 2024. The $24.3 million increase in stockholders’ equity was largely attributable to $18.6 million in net income, $3.7 million in other comprehensive income, $1.4 million impact to additional paid in capital as a result of share-based compensation, $1.4 million from release of ESOP shares and $0.1 million from exercise of stock options, offset by $0.8 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

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

Forward Looking Statements

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

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Dollars in thousands, except for share data)
	As of
	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
ASSETS
Cash and due from banks:
Cash	$	29,296			$	35,767			$	32,113			$	35,478			$	32,061
Interest-bearing deposits		117,283				90,872				97,780				104,361				123,751
Total cash and cash equivalents		146,579				126,639				129,893				139,839				155,812
Available-for-sale securities, at fair value		94,822				96,562				103,570				104,970				111,005
Held-to-maturity securities, at amortized cost		285,125				336,879				358,024				367,938				403,736
Placement with banks		249				249				249				249				249
Mortgage loans held for sale, at fair value		5,794				5,703				8,567				10,736				9,566
Loans receivable, net		2,490,046				2,458,712				2,370,931				2,286,599				2,180,331
Accrued interest receivable		18,903				19,126				19,008				17,771				16,890
Premises and equipment, net		16,129				16,067				16,417				16,794				16,843
Right of use assets		28,295				28,806				29,496				29,093				29,785
Federal Home Loan Bank of New York stock (FHLBNY), at cost		25,945				26,620				25,807				29,182				28,515
Deferred tax assets		12,402				12,143				11,629				12,074				11,845
Other assets		32,790				26,363				16,245				24,693				51,392
Total assets	$	3,157,079			$	3,153,869			$	3,089,836			$	3,039,938			$	3,015,969
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits (1)	$	2,063,081			$	2,053,151			$	2,017,848			$	1,895,213			$	1,884,056
Operating lease liabilities		30,028				30,501				31,126				30,696				31,343
Accrued interest payable		4,372				4,161				4,628				3,712				2,918
Borrowings		521,100				536,100				521,100				596,100				580,421
Other liabilities		8,663				8,868				1,248				8,717				12,642
Total liabilities		2,627,244				2,632,781				2,575,950				2,534,438				2,511,380
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		(7,270	)			(7,404	)			(7,641	)			(7,707	)			(9,445	)
Additional paid-in-capital		208,909				208,275				207,888				207,319				208,478
Retained earnings		125,477				119,250				113,432				107,754				105,103
Accumulated other comprehensive loss		(11,586	)			(13,047	)			(13,515	)			(15,297	)			(12,686	)
Unearned compensation ─ ESOP		(10,944	)			(11,235	)			(11,527	)			(11,818	)			(12,110	)
Total stockholders' equity		529,835				521,088				513,886				505,500				504,589
Total liabilities and stockholders' equity	$	3,157,079			$	3,153,869			$	3,089,836			$	3,039,938			$	3,015,969

(1) As of June 30, 2025, March 31. 2025, December 31, 2024 and September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million, $10.3 million and $13.7 million, respectively, were reclassified to Deposits. 

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,
	2025				2025				2025				2024				2024
Interest and dividend income:
Interest on loans receivable	$	41,486			$	40,291			$	37,136			$	35,622			$	32,945
Interest on deposits due from banks		978				807				1,668				1,783				2,430
Interest and dividend on securities and FHLBNY stock		4,383				4,762				5,193				5,481				5,918
Total interest and dividend income		46,847				45,860				43,997				42,886				41,293
Interest expense:
Interest on certificates of deposit		6,553				7,382				7,754				8,104				6,926
Interest on other deposits		9,996				9,058				8,554				8,476				8,519
Interest on borrowings		5,050				4,994				5,486				5,576				6,825
Total interest expense		21,599				21,434				21,794				22,156				22,270
Net interest income		25,248				24,426				22,203				20,730				19,023
Provision (benefit) for credit losses (1)		1,364				1,626				(285	)			897				537
Net interest income after provision (benefit) for credit losses		23,884				22,800				22,488				19,833				18,486
Non-interest income:
Service charges and fees		539				511				525				500				508
Brokerage commissions		8				—				4				44				—
Late and prepayment charges		385				530				697				318				77
Income on sale of mortgage loans		166				169				148				254				218
Income on sale of SBA loans		—				—				404				148				—
Grant income		429				428				—				—				—
Other		(35	)			422				603				833				348
Total non-interest income		1,492				2,060				2,381				2,097				1,151
Non-interest expense:
Compensation and benefits		7,868				7,627				7,780				7,668				7,674
Occupancy and equipment		3,934				3,907				3,913				3,863				3,786
Data processing expenses		1,296				1,188				1,152				1,143				1,099
Direct loan expenses		155				241				388				617				573
Insurance and surety bond premiums		318				297				315				293				292
Office supplies, telephone and postage		170				174				170				294				222
Professional fees		1,409				1,367				1,364				1,703				1,351
Microloans recoveries		—				—				—				(29	)			(54	)
Marketing and promotional expenses		184				266				83				289				180
Federal deposit insurance and regulatory assessment (2)		266				546				461				418				392
Other operating expenses (2)		1,018				1,256				1,262				1,206				1,051
Total non-interest expense (1)		16,618				16,869				16,888				17,465				16,566
Income before income taxes		8,758				7,991				7,981				4,465				3,071
Provision for income taxes		2,250				1,891				2,022				1,532				638
Net income	$	6,508			$	6,100			$	5,959			$	2,933			$	2,433
Dividends on preferred shares		281				282				281				282				281
Net income available to common stockholders	$	6,227			$	5,818			$	5,678			$	2,651			$	2,152
Earnings per common share:
Basic	$	0.27			$	0.26			$	0.25			$	0.12			$	0.10
Diluted	$	0.27			$	0.25			$	0.25			$	0.12			$	0.10
Weighted average common shares outstanding:
Basic		22,766,195				22,716,615				22,662,916				22,528,160				22,446,009
Diluted		23,135,448				22,947,769				22,876,740				22,807,644				22,612,028

(1) For the three months ended December 31, 2024, and September 30, 2024, benefit for contingencies in the amounts of $0.2 million and $0.3 million were reclassified from total non-interest expense to benefit for credit losses.

(2) For the three months ended September 30, 2024, $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 of the periods.

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Operations (Dollars in thousands, except per share data)
		For the Nine Months Ended September 30,
		2025				2024				Variance $				Variance %
Interest and dividend income:
Interest on loans receivable		$	118,913			$	94,890			$	24,023				25.32	%
Interest on deposits due from banks			3,453				6,883				(3,430	)			(49.83	%)
Interest and dividend on securities and FHLBNY stock			14,338				17,978				(3,640	)			(20.25	%)
Total interest and dividend income			136,704				119,751				16,953				14.16	%
Interest expense:
Interest on certificates of deposit			21,689				19,664				2,025				10.30	%
Interest on other deposits			27,608				22,448				5,160				22.99	%
Interest on borrowings			15,530				21,889				(6,359	)			(29.05	%)
Total interest expense			64,827				64,001				826				1.29	%
Net interest income			71,877				55,750				16,127				28.93	%
Provision (benefit) for credit losses			2,705				(346	)			3,051				(881.79	%)
Net interest income after provision (benefit) for credit losses			69,172				56,096				13,076				23.31	%
Non-interest income:
Service charges and fees			1,575				1,473				102				6.92	%
Brokerage commissions			12				17				(5	)			(29.41	%)
Late and prepayment charges			1,612				862				750				87.01	%
Income on sale of mortgage loans			483				794				(311	)			(39.17	%)
Income on sale of SBA loans			404				—				404				—	%
Grant income			857				—				857				—	%
Other			990				1,970				(980	)			(49.75	%)
Total non-interest income			5,933				5,116				817				15.97	%
Non-interest expense:
Compensation and benefits			23,275				23,242				33				0.14	%
Occupancy and equipment			11,754				11,017				737				6.69	%
Data processing expenses			3,636				3,239				397				12.26	%
Direct loan expenses			784				1,938				(1,154	)			(59.55	%)
Insurance and surety bond premiums			930				808				122				15.10	%
Office supplies, telephone and postage			514				704				(190	)			(26.99	%)
Professional fees			4,140				4,443				(303	)			(6.82	%)
Microloans recoveries			—				(172	)			172				(100.00	%)
Marketing and promotional expenses			533				425				108				25.41	%
Federal deposit insurance and regulatory assessments			1,273				1,209				64				5.29	%
Other operating expenses			3,536				3,139				397				12.65	%
Total non-interest expense			50,375				49,992				383				0.77	%
Income before income taxes			24,730				11,220				13,510				120.41	%
Provision for income taxes			6,163				3,181				2,982				93.74	%
Net income		$	18,567			$	8,039			$	10,528				130.96	%
Dividends on preferred shares			844				356				488				137.08	%
Net income available to common stockholders		$	17,723			$	7,683			$	10,040				130.68	%
Earnings per common share:
Basic		$	0.78			$	0.34			$	0.44				129.41	%
Diluted		$	0.77			$	0.34			$	0.43				126.47	%
Weighted average common shares outstanding:
Basic			22,715,620				22,403,258				312,362				1.39	%
Diluted			22,992,655				22,466,178				526,477				2.34	%

Ponce Financial Group, Inc. and Subsidiaries Loans Receivable excluding Mortgage Loans Held for Sale
		As of
		September 30,								June 30,								March 31,								December 31,								September 30,
		2025								2025								2025								2024								2024
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned		$	311,728				12.39	%		$	317,488				12.78	%		$	325,866				13.62	%		$	330,053				14.30	%		$	332,380				15.09	%
Owner-Occupied			132,874				5.28	%			134,862				5.43	%			137,676				5.75	%			142,363				6.17	%			145,065				6.59	%
Multifamily residential			688,574				27.39	%			693,670				27.96	%			675,541				28.24	%			670,159				29.04	%			678,029				30.78	%
Nonresidential properties			436,175				17.35	%			404,512				16.30	%			390,681				16.33	%			389,898				16.89	%			383,277				17.40	%
Construction and land			886,369				35.25	%			883,462				35.59	%			815,425				34.08	%			733,660				31.79	%			631,461				28.67	%
Total mortgage loans			2,455,720				97.66	%			2,433,994				98.06	%			2,345,189				98.02	%			2,266,133				98.19	%			2,170,212				98.53	%
Non-mortgage loans:
Business loans			58,012				2.31	%			47,372				1.91	%			46,329				1.94	%			40,849				1.77	%			28,499				1.29	%
Consumer loans (1)			727				0.03	%			840				0.03	%			997				0.04	%			1,038				0.04	%			4,021				0.18	%
Total non-mortgage loans			58,739				2.34	%			48,212				1.94	%			47,326				1.98	%			41,887				1.81	%			32,520				1.47	%
Total loans, gross			2,514,459				100.00	%			2,482,206				100.00	%			2,392,515				100.00	%			2,308,020				100.00	%			2,202,732				100.00	%
Net deferred loan origination costs			351								606								1,390								1,081								1,565
Allowance for credit losses on loans			(24,764	)							(24,100	)							(22,974	)							(22,502	)							(23,966	)
Loans, net		$	2,490,046							$	2,458,712							$	2,370,931							$	2,286,599							$	2,180,331

(1)	As of September 30, 2024, consumer loans include $3.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.

Ponce Financial Group, Inc. and Subsidiaries Allowance for Credit Losses on Loans
	For the Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	24,100			$	22,974			$	22,502			$	23,966			$	24,061
Provision for credit losses on loans		864				1,348				731				1,090				801
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned		—				—				(38	)			—				—
Owner occupied		—				—				—				—				—
Multifamily residences		—				—				—				—				—
Nonresidential properties		—				—				—				—				(7	)
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		(200	)			(222	)			(222	)			(232	)			(450	)
Consumer		—				—				(3	)			(2,465	)			(634	)
Total charge-offs		(200	)			(222	)			(263	)			(2,697	)			(1,091	)
Recoveries:
Non-mortgage loans:
Business		—				—				4				—				1
Consumer		—				—				—				143				194
Total recoveries		—				—				4				143				195
Net (charge-offs) recoveries		(200	)			(222	)			(259	)			(2,554	)			(896	)
Allowance for credit losses on loans at end of the period	$	24,764			$	24,100			$	22,974			$	22,502			$	23,966

Ponce Financial Group, Inc. and Subsidiaries Deposits
		As of
		September 30,								June 30,								March 31,								December 31,								September 30,
		2025								2025								2025								2024								2024
		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Demand		$	192,595				9.34	%		$	197,671				9.63	%		$	212,139				10.51	%		$	169,178				8.93	%		$	182,737				9.71	%
Interest-bearing deposits:
NOW/IOLA accounts			75,051				3.64	%			63,626				3.10	%			74,430				3.69	%			62,616				3.30	%			71,445				3.79	%
Money market accounts			821,844				39.84	%			790,939				38.52	%			692,753				34.33	%			636,219				33.57	%			660,168				35.04	%
Reciprocal deposits			154,548				7.49	%			136,693				6.66	%			141,838				7.03	%			130,677				6.90	%			94,145				5.00	%
Savings accounts (1) (2)			117,401				5.69	%			113,701				5.54	%			119,023				5.90	%			116,219				6.13	%			122,674				6.51	%
Total NOW, money market, reciprocal and savings accounts			1,168,844				56.66	%			1,104,959				53.82	%			1,028,044				50.95	%			945,731				49.90	%			948,432				50.34	%
Certificates of deposit of $250K or more (1)			209,819				10.17	%			220,671				10.75	%			219,721				10.89	%			204,293				10.78	%			210,262				11.17	%
Brokered certificates of deposit (3)			67,952				3.29	%			69,531				3.39	%			84,531				4.19	%			94,531				4.99	%			94,531				5.02	%
Listing service deposits (3)			4,150				0.20	%			6,140				0.30	%			6,140				0.30	%			7,376				0.39	%			7,376				0.39	%
All other certificates of deposit less than $250K (1)			419,721				20.34	%			454,179				22.12	%			467,273				23.16	%			474,104				25.02	%			440,718				23.39	%
Total certificates of deposit			701,642				34.00	%			750,521				36.56	%			777,665				38.54	%			780,304				41.18	%			752,887				39.97	%
Total interest-bearing deposits			1,870,486				90.66	%			1,855,480				90.38	%			1,805,709				89.49	%			1,726,035				91.08	%			1,701,319				90.31	%
Total deposits		$	2,063,081				100.00	%		$	2,053,151				100.01	%		$	2,017,848				100.00	%		$	1,895,213				100.01	%		$	1,884,056				100.02	%

(1)	As of September 30, 2024, $36.2 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.
(2)	As of June 30, 2025, March 31. 2025, December 31, 2024 and September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million, $10.3 million and $13.7 million, respectively, were reclassified to Deposits.
(3)	There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.

Ponce Financial Group, Inc. and Subsidiaries Nonperforming Assets
	As of Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	2,527			$	1,859			$	1,052			$	436			$	436
Owner occupied		649				—				1,423				1,423				1,423
Multifamily residential		14,202				11,703				9,788				10,271				4,685
Nonresidential properties		—				405				—				—				824
Construction and land		8,907				8,907				14,159				14,158				8,907
Non-mortgage loans:
Business		880				276				170				343				180
Consumer		—				—				—				—				—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1)	$	27,165			$	23,150			$	26,592			$	26,631			$	16,455
Non-accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	284			$	284			$	279			$	279			$	278
Owner occupied		414				424				431				435				444
Multifamily residential		—				—				—				—				—
Nonresidential properties		—				—				—				—				—
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		—				—				—				—				—
Consumer		—				—				—				—				—
Total non-accruing modifications to borrowers experiencing financial difficulty (1)		698				708				710				714				722
Total non-performing assets (2)	$	27,863			$	23,858			$	27,302			$	27,345			$	17,177
Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	1,766			$	1,779			$	1,792			$	1,807			$	1,821
Owner occupied		1,959				2,012				2,038				2,062				2,116
Multifamily residential		—				—				—				—				—
Nonresidential properties		629				655				644				652				672
Construction and land		—				—				—				—				—
Non-mortgage loans:
Business		196				203				209				215				222
Consumer		—				—				—				—				—
Total accruing modifications to borrowers experiencing financial difficulty (1)	$	4,550			$	4,649			$	4,683			$	4,736			$	4,831
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1)	$	32,413			$	28,507			$	31,985			$	32,081			$	22,008
Total non-performing assets to total assets		0.88	%			0.76	%			0.87	%			0.90	%			0.57	%

(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,
	2025											2024
	Average											Average
	Outstanding								Average			Outstanding								Average
	Balance				Interest				Yield/Rate (1)			Balance				Interest				Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans (2)	$	2,499,268			$	41,486			6.59	%		$	2,096,592			$	32,945			6.25	%
Securities (3)		418,513				3,913			3.71	%			548,708				5,324			3.86	%
Other (4)		119,262				1,448			4.82	%			210,057				3,024			5.73	%
Total interest-earning assets		3,037,043				46,847			6.12	%			2,855,357				41,293			5.75	%
Non-interest-earning assets		96,095											107,153
Total assets	$	3,133,138										$	2,962,510
Interest-bearing liabilities:
NOW/IOLA	$	78,526			$	137			0.69	%		$	74,690			$	174			0.93	%
Money market		958,277				9,831			4.07	%			711,385				8,318			4.65	%
Savings (5)		119,159				28			0.09	%			122,722				27			0.09	%
Certificates of deposit		698,019				6,553			3.72	%			655,562				6,926			4.20	%
Total deposits		1,853,981				16,549			3.54	%			1,564,359				15,445			3.93	%
Borrowings		521,100				5,050			3.84	%			660,312				6,825			4.11	%
Total interest-bearing liabilities		2,375,081				21,599			3.61	%			2,224,671				22,270			3.98	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		199,922				—							185,543				—
Other non-interest-bearing liabilities		31,406				—							49,702				—
Total non-interest-bearing liabilities		231,328				—							235,245				—
Total liabilities		2,606,409				21,599							2,459,916				22,270
Total equity		526,729											502,594
Total liabilities and total equity	$	3,133,138							3.61	%		$	2,962,510							3.98	%
Net interest income					$	25,248										$	19,023
Net interest rate spread (6)									2.51	%										1.77	%
Net interest-earning assets (7)	$	661,962										$	630,686
Net interest margin (8)									3.30	%										2.65	%
Average interest-earning assets to interest-bearing liabilities									127.87	%										128.35	%

(1)	Annualized where appropriate.
(2)	Loans include loans and mortgage loans held for sale, at fair value.
(3)	Securities include available-for-sale securities and held-to-maturity securities.
(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5)	For the three months ended September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $13.2 million, were reclassified to Savings.
(6)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)	Net interest margin represents net interest income divided by average total interest-earning assets.

       

Ponce Financial Group, Inc. and Subsidiaries Average Balance Sheets
	Nine Months Ended September 30,
	2025												2024
	Average												Average
	Outstanding								Average				Outstanding								Average
	Balance				Interest				Yield/Rate (1)				Balance				Interest				Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans (2)	$	2,439,280			$	118,913				6.52	%		$	2,038,879			$	94,890				6.22	%
Securities (3)		445,130				12,680				3.81	%			562,451				16,429				3.90	%
Other (4)		135,600				5,111				5.04	%			196,668				8,432				5.73	%
Total interest-earning assets		3,020,010				136,704				6.05	%			2,797,998				119,751				5.72	%
Non-interest-earning assets		103,059												106,500
Total assets	$	3,123,069											$	2,904,498
Interest-bearing liabilities:
NOW/IOLA	$	73,034			$	352				0.64	%		$	76,817			$	543				0.94	%
Money market		884,115				27,172				4.11	%			618,725				21,819				4.71	%
Savings (5)		118,656				84				0.09	%			125,296				86				0.09	%
Certificates of deposit		754,531				21,689				3.84	%			640,369				19,664				4.10	%
Total deposits		1,830,336				49,297				3.60	%			1,461,207				42,112				3.85	%
Borrowings		536,851				15,530				3.87	%			703,775				21,889				4.15	%
Total interest-bearing liabilities		2,367,187				64,827				3.66	%			2,164,982				64,001				3.95	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		199,978				—								191,087				—
Other non-interest-bearing liabilities		37,206				—								51,061				—
Total non-interest-bearing liabilities		237,184				—								242,148				—
Total liabilities		2,604,371				64,827								2,407,130				64,001
Total equity		518,698												497,368
Total liabilities and total equity	$	3,123,069								3.66	%		$	2,904,498								3.95	%
Net interest income					$	71,877											$	55,750
Net interest rate spread (6)										2.39	%											1.77	%
Net interest-earning assets (7)	$	652,823											$	633,016
Net interest margin (8)										3.18	%											2.66	%
Average interest-earning assets to
interest-bearing liabilities										127.58	%											129.24	%

(1)	Annualized where appropriate.
(2)	Loans include loans and mortgage loans held for sale, at fair value.
(3)	Securities include available-for-sale securities and held-to-maturity securities.
(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5)	For the nine months ended September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $13.7 million, were reclassified to Savings.
(6)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries Other Data
	As of
	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
Other Data
Common shares issued		24,886,711				24,886,711				24,886,711				24,886,711				24,886,711
Less treasury shares		885,586				901,911				920,520				925,497				1,067,248
Common shares outstanding at end of period		24,001,125				23,984,800				23,966,191				23,961,214				23,819,463
Book value per common share	$	12.70			$	12.34			$	12.05			$	11.71			$	11.74
Tangible book value per common share	$	12.70			$	12.34			$	12.05			$	11.71			$	11.74

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

FAQ

What were PDLB Q3 2025 earnings per share and net income?

Ponce reported Q3 2025 diluted EPS of $0.27 and net income available to common of $6.2M.

How did PDLB's net interest margin and net interest income perform in Q3 2025?

Net interest margin was 3.30% in Q3 2025 and net interest income was $25.2M, up 32.7% YoY for the quarter.

What balance sheet growth did PDLB report as of September 30, 2025?

As of Sept 30, 2025, total assets were $3.16B, net loans $2.49B (+8.90% vs Dec 31, 2024) and deposits $2.06B (+8.86%).

Did PDLB report any material credit or asset quality changes in Q3 2025?

Yes. Total non‑performing assets were $32.4M at Sept 30, 2025 and the company recorded a credit loss provision of $1.4M in Q3 2025.

How did PDLB's securities portfolio change in 2025 through September 30?

Securities totaled $379.9M at Sept 30, 2025, a decrease of $93.0M (−19.66%) from Dec 31, 2024.

What dividend guidance or remarks did PDLB management provide related to the Treasury program?

Management said dividend yield will continue at the 0.50% level in the next dividend period starting in 2026, tied to Emergency Capital Investment Program commitments.