• Ponce Financial Group, Inc. Reports Second Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 30 Jul 2024 16:13:28   America/New_York

    NEW YORK, July 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 second quarter of 2024.

    Second Quarter 2024 Highlights (Compared to Prior Periods):

    • Net income available to common stockholders was $3.1 million, or $0.14 per diluted share for the three months ended June 30, 2024, as compared to net income available to common stockholders of $2.4 million, or $0.11 per diluted share for the three months ended March 31, 2024 and net loss to common stockholders of ($0.1) million, or $0.00 per diluted share for the three months ended June 30, 2023. Net income for the three months ended June 30, 2024, which excludes $0.1 million in dividends on preferred shares, was $3.2 million. The Company began paying dividends on its preferred stock during the quarter ended June 30, 2024, as required by the terms thereof.
    • Included in the $3.1 million of net income available to common stockholders for the second quarter of 2024 results is $38.8 million in interest and dividend income, $2.3 million in non-interest income and $0.4 million in benefit for credit losses, offset by $20.9 million in interest expense, $16.1 million in non-interest expense and $0.1 million in payments and accrued dividends on preferred shares.
    • Net interest income of $17.9 million for the second quarter of 2024 decreased $0.9 million, or 4.88%, from the prior quarter and increased $1.6 million, or 9.96%, from the same quarter last year. As discussed in our prior earnings release, the first quarter of 2024 included a $1.0 million recovery of interest from a previously non-performing loan, which increased net interest income in that period as compared to the current period.
    • Net interest margin was 2.62% for the second quarter of 2024, versus 2.71% for the prior quarter and versus 2.65% for the same quarter last year. A significant driver of the reduction in net interest margin is the aforementioned recovery.

    Six Months 2024 Highlights (Compared to 2023):

    • Net income available to common stockholders was $5.5 million, or $0.25 per diluted share for the six months ended June 30, 2024, as compared to net income available to common stockholders of $0.2 million, or $0.01 per diluted share for the six months ended June 30, 2023. Net income for the six months ended June 30, 2024, which excludes $0.1 million in dividends on preferred shares, was $5.6 million.
    • Net interest income for the six months ended June 30, 2024 was $36.7 million, an increase of $5.2 million, or 16.49%, compared to $31.5 million for the six months ended June 30, 2023.
    • Non-interest income for the six months ended June 30, 2024 was $4.0 million, an increase of $0.7 million, or 19.75%, from $3.3 million for the six months ended June 30, 2023.
    • Non-interest expense for the six months ended June 30, 2024 was $33.1 million, a decrease of $0.4 million, or 1.06%, compared to $33.5 million for the six months ended June 30, 2023.
    • Cash and equivalents were $103.2 million as of June 30, 2024, a decrease of $36.0 million, or 25.88%, from December 31, 2023.
    • Securities totaled $555.2 million as of June 30, 2024, a decrease of $26.4 million, or 4.54%, from December 31, 2023 primarily due to regular principal payments.
    • Net loans receivable were $2.02 billion as of June 30, 2024, an increase of $126.3 million, or 6.66%, from December 31, 2023.
    • Deposits were $1.61 billion as of June 30, 2024, an increase of $98.5 million, or 6.53%, from December 31, 2023.

    President and Chief Executive Officer’s Comments

    Carlos P. Naudon, Ponce Financial Group’s President and CEO, stated “Despite the challenging operating environment, we continue to make progress both in terms of improving our economic performance as well as serving our communities. We have exceeded our qualified lending targets under ECIP and qualified for a 0.50% preferred dividend rate. Book value per share continues to grow and is now $11.45 (up $0.51 vs last year) and total equity per common share stands at $20.90. We’re also making progress on the expense side and have reduced headcount by 7% year over year. We continue to show strong levels of capital and liquidity. On the capital front, our total capital ratio at Ponce Bank stands at 22.47%, well in excess of regulatory requirements. In terms of liquidity, our liquid assets plus borrowing capacity at the Federal Home Loan Bank of New York ("FHLBNY") stands at $679.9 million, approximately 1.7 times of our uninsured deposits of $401.7 million. We remain committed to the communities we serve and our status as a Minority Depository Institution (“MDI”)/Community Development Financial Institution ("CDFI"), and we continue to invest in our people and in technology to improve our efficiency.”

    Executive Chairman’s Comment

    Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We continue to grow both loans and deposits while maintaining credit quality. While we see resiliency in our client base, our prudent approach might result in lower growth in the coming quarters as we prioritize sound underwriting practices and balance sheet management over loan growth.”

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

      At or for the Three Months Ended 
      June 30,  March 31,  December 31,  September 30,  June 30, 
    Performance Ratios (Annualized): 2024  2024  2023  2023  2023 
    Return on average assets (1)  0.45%  0.33%  0.08%  0.39%  (0.01%)
    Return on average equity (1)  2.59%  1.97%  0.42%  2.11%  (0.07%)
    Net interest rate spread (1) (2)  1.72%  1.82%  1.74%  1.68%  1.75%
    Net interest margin (1) (3)  2.62%  2.71%  2.66%  2.58%  2.65%
    Non-interest expense to average assets (1)  2.28%  2.35%  2.66%  2.58%  2.65%
    Efficiency ratio (4)  80.09%  82.56%  96.83%  78.11%  96.15%
    Average interest-earning assets to average interest- bearing liabilities  129.73%  129.69%  133.50%  134.49%  137.67%
    Average equity to average assets  17.41%  17.00%  18.25%  18.32%  19.21%


      At or for the Three Months Ended 
      June 30,  March 31,  December 31,  September 30,  June 30, 
    Capital Ratios (Annualized): 2024  2024  2023  2023  2023 
    Total capital to risk-weighted assets (Bank only)  22.47%  22.79%  23.30%  25.10%  26.30%
    Tier 1 capital to risk-weighted assets (Bank only)  21.24%  21.54%  22.05%  23.85%  25.05%
    Common equity Tier 1 capital to risk-weighted assets (Bank only)  21.24%  21.54%  22.05%  23.85%  25.05%
    Tier 1 capital to average assets (Bank only)  16.70%  16.26%  17.49%  17.51%  17.95%


      At or for the Three Months Ended 
      June 30,  March 31,  December 31,  September 30,  June 30, 
    Asset Quality Ratios (Annualized): 2024  2024  2023  2023  2023 
    Allowance for loan losses as a percentage of total loans  1.18%  1.23%  1.36%  1.51%  1.64%
    Allowance for loan losses as a percentage of nonperforming loans  130.28%  140.90%  152.99%  169.49%  167.06%
    Net (charge-offs) recoveries to average outstanding loans (1)  (0.10%)  (0.25%)  (0.24%)  (0.34%)  (0.41%)
    Non-performing loans as a percentage of total gross loans  0.89%  0.87%  0.89%  0.89%  0.98%
    Non-performing loans as a percentage of total assets  0.65%  0.62%  0.62%  0.62%  0.63%
    Total non-performing assets as a percentage of total assets  0.65%  0.62%  0.62%  0.62%  0.63%
    Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)  0.82%  0.79%  0.81%  0.82%  0.83%
                         
    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 June 30, 2024 was $3.2 million compared to net income of $2.4 million for the three months ended March 31, 2024 and net loss of $0.1 million for the three months ended June 30, 2023.

    The increase of net income for the three months ended June 30, 2024 compared to the three months ended March 31, 2024 was attributed mainly to a decrease in non-interest expense, an increase in non-interest income, a decrease in provision for income taxes and an increase in benefit for credit losses, partially offset by a decrease in net interest income.

    The increase of net income for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was largely due to increases in net interest income, an increase to benefit for credit losses, a decrease in non-interest expense and an increase in non-interest income, partially offset by an increase in provision for income taxes.

    Net income for the six months ended June 30, 2024 was $5.6 million compared to a net income of $0.2 million for the six months ended June 30, 2023. The increase in net income was attributable to increases in net interest income, benefit for credit losses and non-interest income and a decrease in non-interest expense, partially offset by an increase in provision for income taxes.

    Net Interest Income and Net Margin

    Net interest income for the three months ended June 30, 2024, decreased $0.9 million, or 4.88%, to $17.9 million compared to $18.8 million for the three months ended March 31, 2024 and increased $1.6 million, or 9.96%, compared to $16.3 million for the three months ended June 30, 2023. As discussed in our prior earnings release, the first quarter of 2024 included a $1.0 million recovery of interest from a previously non-performing loan, which increased net interest income in that period as compared to the current period.

    Net interest income for the six months ended June 30, 2024, increased $5.2 million, or 16.49%, to $36.7 million, compared to $31.5 million for the six months ended June 30, 2023.

    For the six months ended June 30, 2024, benefit for credit losses amounted to $0.6 million consisting of a benefit for credit losses on loans in the amount of $0.4 million and a release in the provision for credit losses on held-to-maturity securities in the amount of $0.2 million. The $0.4 million benefit for credit losses on loans for the six months ended June 30, 2024 resulted from a benefit of $1.5 million related to micro loans offset by a provision of $1.1 million related to non-micro loans.

    Net interest margin was 2.62% for the three months ended June 30, 2024 compared to 2.71% for the prior quarter, a decrease of 9bps and 2.65% for the same period last year, a decrease of 3bps.

    Net interest margin was 2.67% for the six months ended June 30, 2024 compared to 2.71% for the six months ended June 30, 2023, a decrease of 4bps.

    Non-interest Income

    Non-interest income for the three months ended June 30, 2024, was $2.3 million, an increase of $0.6 million, or 32.28%, compared to $1.7 million the three months ended March 31, 2024 and an increase of $0.8 million, or 51.34%, compared to $1.5 million the three months ended June 30, 2023.

    The $0.6 million increase in non-interest income for the three months ended June 30, 2024 compared to the three months ended March 31, 2024 was largely attributable to an increase of $0.5 million in other non-interest income related to the mark to market adjustments on a private equity fund and $0.1 million in late and prepayment charges.

    The $0.8 million increase in non-interest income for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was largely attributable to increases of $0.5 million in other non-interest income related to the mark to market adjustments on a private equity fund, $0.2 million in income on sale of mortgage loans and $0.1 million in late and prepayment charges.

    Non-interest income for the six months ended June 30, 2024, was $4.0 million, an increase of $0.7 million, or 19.75%, compared to $3.3 million for the six months ended June 30, 2023. The increase was largely attributable to increases of $0.6 million in other non-interest income and $0.4 million in income on sale of mortgage loans, partially offset by a decrease of $0.3 million in late and prepayment charges.

    Non-interest Expense

    Non-interest expense for the three months ended June 30, 2024, was $16.1 million, a decrease of $0.8 million, or 4.74%, compared to $17.0 million for the three months ended March 31, 2024 and a decrease of $0.9 million, or 5.51%, compared to $17.1 million for the three months ended June 30, 2023.

    The $0.8 million decrease from the three months ended March 31, 2024 was mainly attributable to decreases of $0.7 million in provision for contingencies, $0.4 million in professional fees, $0.1 million in compensation and benefits, $0.1 million in occupancy and equipment and $0.1 million in data processing, partially offset by an increase of $0.6 million in other operating expense.

    The $0.9 million decrease from the three months ended June 30, 2023 was mainly attributable to decreases of $1.0 million in provision for contingencies, $0.5 million in professional fees, $0.3 million in office supplies, telephone and postage, $0.2 million in occupancy and equipment, $0.2 million in data processing expenses and $0.1 million in marketing and promotional expenses, partially offset by increases of $0.4 million in other operating expense, $0.3 million in direct loan expenses and $0.3 million in compensation and benefits and a decrease of $0.3 million in Grain recoveries.

    Non-interest expense for the six months ended June 30, 2024, was $33.1 million, a decrease of $0.4 million, or 1.06%, compared to $33.5 million for the six months ended June 30, 2023. The $0.4 million decrease from the six months ended June 30, 2023 was mainly attributable to decreases of $1.8 million in provision for contingencies, $0.4 million in office supplies, telephone and postage, $0.3 million in professional fees, $0.3 million in data processing expenses, $0.2 million in marketing and promotional expenses and $0.1 million in occupancy and equipment, partially offset by a decrease of $1.1 million in Grain recoveries, and increases of $0.7 million in compensation and benefits and $0.6 million in direct loan expenses.

    Balance Sheet Summary

    Total assets increased $91.3 million, or 3.32%, to $2.84 billion as of June 30, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $126.3 million in net loans receivable, $27.8 million in mortgage loans held for sale and $4.6 million in Federal Home Loan Bank of New York stock, partially offset by decreases of $36.0 million in cash and cash equivalents, $19.6 million in held-to-maturity securities, $6.8 million in available-for-sale securities, $3.2 million in other assets, $1.2 million in deferred tax assets and $0.6 million in accrued interest receivable.

    Total liabilities increased $85.0 million, or 3.76%, to $2.34 billion as of June 30, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $98.5 million in deposits, partially offset by decreases of $5.1 million in accrued interest payable, $4.0 million in borrowings, $3.5 million in other liabilities and $0.8 million in operating lease liabilities.

    Total stockholders’ equity increased $6.3 million, or 1.27%, to $497.7 million as of June 30, 2024, from $491.4 million as of December 31, 2023. This increase in stockholders’ equity was largely attributable to $5.5 million in net income available to common stockholders, $1.0 million impact to additional paid in capital as a result of share-based compensation and $0.6 million from release of ESOP shares, offset by $0.9 million in other comprehensive loss.

    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 
     June 30,  March 31,  December 31,  September 30,  June 30, 
     2024  2024  2023  2023  2023 
    ASSETS              
    Cash and due from banks:              
    Cash$23,128  $29,972  $28,930  $26,046  $31,162 
    Interest-bearing deposits 80,038   104,752   110,260   90,966   212,627 
    Total cash and cash equivalents 103,166   134,724   139,190   117,012   243,789 
    Available-for-sale securities, at fair value 113,125   116,044   119,902   116,753   123,720 
    Held-to-maturity securities, at amortized cost 442,113   452,955   461,748   471,065   481,952 
    Placement with banks 249   249   249   996   996 
    Mortgage loans held for sale, at fair value 37,764   7,860   9,980   14,103   10,070 
    Loans receivable, net 2,022,173   1,981,428   1,895,886   1,787,607   1,695,047 
    Accrued interest receivable 17,441   18,063   18,010   16,624   16,054 
    Premises and equipment, net 16,976   17,396   16,053   16,453   16,856 
    Right of use assets 30,349   31,021   31,272   32,110   32,435 
    Federal Home Loan Bank of New York stock (FHLBNY), at cost 23,972   23,892   19,377   18,870   19,195 
    Deferred tax assets 13,172   13,919   14,332   15,984   15,924 
    Other assets 21,507   21,151   24,723   16,286   15,919 
    Total assets$2,842,007  $2,818,702  $2,750,722  $2,623,863  $2,671,957 
    LIABILITIES AND STOCKHOLDERS' EQUITY              
    Liabilities:              
    Deposits$1,606,097  $1,585,784  $1,507,620  $1,401,132  $1,442,013 
    Operating lease liabilities 31,861   32,486   32,684   33,459   33,716 
    Accrued interest payable 6,820   4,218   11,965   8,385   4,704 
    Advance payments by borrowers for taxes and insurance 10,838   13,245   10,778   13,743   12,402 
    Borrowings 680,421   680,421   684,421   675,100   682,100 
    Other liabilities 8,313   8,866   11,859   6,986   6,540 
    Total liabilities 2,344,350   2,325,020   2,259,327   2,138,805   2,181,475 
    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 (9,519)  (9,702)  (9,747)  (10,975)  (5,202)
    Additional paid-in-capital 207,934   207,584   207,106   207,626   207,287 
    Retained earnings 102,951   99,834   97,420   96,902   94,312 
    Accumulated other comprehensive loss (16,557)  (16,590)  (15,649)  (20,468)  (17,597)
    Unearned compensation ─ ESOP (12,401)  (12,693)  (12,984)  (13,276)  (13,567)
    Total stockholders' equity 497,657   493,682   491,395   485,058   490,482 
    Total liabilities and stockholders' equity$2,842,007  $2,818,702  $2,750,722  $2,623,863  $2,671,957 
     

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

     Three Months Ended 
     June 30,  March 31,  December 31,  September 30,  June 30, 
     2024  2024  2023  2023  2023 
    Interest and dividend income:              
    Interest on loans receivable$31,281  $30,664  $27,814  $25,276  $23,015 
    Interest on deposits due from banks 1,542   2,911   990   1,969   1,817 
    Interest and dividend on securities and FHLBNY stock 5,969   6,091   6,146   6,261   6,223 
    Total interest and dividend income 38,792   39,666   34,950   33,506   31,055 
    Interest expense:              
    Interest on certificates of deposit 6,358   6,380   5,103   4,362   3,881 
    Interest on other deposits 7,389   6,540   5,706   5,639   4,413 
    Interest on borrowings 7,141   7,923   6,944   6,963   6,479 
    Total interest expense 20,888   20,843   17,753   16,964   14,773 
    Net interest income 17,904   18,823   17,197   16,542   16,282 
    (Benefit) provision for credit losses (374)  (180)  (375)  535   987 
    Net interest income after (benefit) provision for credit losses 18,278   19,003   17,572   16,007   15,295 
    Non-interest income:              
    Service charges and fees 492   473   498   516   481 
    Brokerage commissions 9   8   13   17   35 
    Late and prepayment charges 426   359   365   899   372 
    Income on sale of mortgage loans 274   302   244   173   82 
    Grant income —   —   438   3,718   — 
    Other 1,057   565   (273)  304   522 
    Total non-interest income 2,258   1,707   1,285   5,627   1,492 
    Non-interest expense:              
    Compensation and benefits 7,724   7,844   8,262   7,566   7,425 
    Occupancy and equipment 3,564   3,667   3,686   3,588   3,724 
    Data processing expenses 1,013   1,127   1,101   1,582   1,208 
    Direct loan expenses 633   732   497   369   345 
    (Benefit) provision for contingencies (493)  164   418   391   517 
    Insurance and surety bond premiums 263   253   250   255   248 
    Office supplies, telephone and postage 233   249   294   301   489 
    Professional fees 1,369   1,723   2,040   1,693   1,904 
    Grain recoveries (65)  (53)  (152)  (69)  (346)
    Marketing and promotional expenses 145   100   146   248   303 
    Directors fees and regulatory assessment 176   179   173   169   160 
    Other operating expenses 1,585   965   1,182   1,223   1,112 
    Total non-interest expense 16,147   16,950   17,897   17,316   17,089 
    Income (loss) before income taxes 4,389   3,760   960   4,318   (302)
    Provision (benefit) for income taxes 1,197   1,346   442   1,728   (215)
    Net income (loss)$3,192  $2,414  $518  $2,590  $(87)
    Dividends on preferred shares 75   —   —   —   — 
    Net income (loss) available to common stockholders$3,117  $2,414  $518  $2,590  $(87)
    Earnings per common share:              
    Basic$0.14  $0.11  $0.02  $0.12  $(0.00)
    Diluted$0.14  $0.11  $0.02  $0.12  $(0.00)
    Weighted average common shares outstanding:              
    Basic 22,409,803   22,353,492   22,224,945   22,272,076   23,208,168 
    Diluted 22,419,309   22,366,728   22,406,102   22,349,217   23,208,168 
     

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

      For the Six Months Ended June 30, 
      2024  2023  Variance $  Variance % 
    Interest and dividend income:            
    Interest on loans receivable $61,945  $42,715  $19,230   45.02%
    Interest on deposits due from banks  4,453   2,014   2,439   121.10%
    Interest and dividend on securities and FHLBNY stock  12,060   12,682   (622)  (4.90%)
    Total interest and dividend income  78,458   57,411   21,047   36.66%
    Interest expense:            
    Interest on certificates of deposit  12,738   7,106   5,632   79.26%
    Interest on other deposits  13,929   7,225   6,704   92.79%
    Interest on borrowings  15,064   11,553   3,511   30.39%
    Total interest expense  41,731   25,884   15,847   61.22%
    Net interest income  36,727   31,527   5,200   16.49%
    (Benefit) provision for credit losses  (554)  813   (1,367)  (168.14%)
    Net interest income after benefit for credit losses  37,281   30,714   6,567   21.38%
    Non-interest income:            
    Service charges and fees  965   972   (7)  (0.72%)
    Brokerage commissions  17   50   (33)  (66.00%)
    Late and prepayment charges  785   1,101   (316)  (28.70%)
    Income on sale of mortgage loans  576   181   395   218.23%
    Other  1,622   1,007   615   61.07%
    Total non-interest income  3,965   3,311   654   19.75%
    Non-interest expense:            
    Compensation and benefits  15,568   14,871   697   4.69%
    Occupancy and equipment  7,231   7,294   (63)  (0.86%)
    Data processing expenses  2,140   2,400   (260)  (10.83%)
    Direct loan expenses  1,365   757   608   80.32%
    (Benefit) provision for contingencies  (329)  1,502   (1,831)  (121.90%)
    Insurance and surety bond premiums  516   513   3   0.58%
    Office supplies, telephone and postage  482   888   (406)  (45.72%)
    Professional fees  3,092   3,359   (267)  (7.95%)
    Grain recoveries  (118)  (1,260)  1,142   (90.63%)
    Marketing and promotional expenses  245   431   (186)  (43.16%)
    Directors fees and regulatory assessment  355   315   40   12.70%
    Other operating expenses  2,550   2,380   170   7.14%
    Total non-interest expense  33,097   33,450   (353)  (1.06%)
    Income before income taxes  8,149   575   7,574   1,317.22%
    Provision for income taxes  2,543   331   2,212   668.28%
    Net income $5,606  $244  $5,362   2,197.54%
    Dividends on preferred shares  75   —   75    
    Net income available to common stockholders $5,531  $244  $5,287   2,166.80%
    Earnings per common share:            
    Basic $0.25  $0.01  $0.24   2,254.79%
    Diluted $0.25  $0.01  $0.24   2,256.11%
    Weighted average common shares outstanding:            
    Basic  22,381,647   23,250,357   (868,710)  (3.74%)
    Diluted  22,393,018   23,275,201   (882,183)  (3.79%)
     

    Ponce Financial Group, Inc. and Subsidiaries
    Key Metrics

     At or for the Three Months Ended 
     June 30,  March 31,  December 31,  September 30,  June 30, 
     2024  2024  2023  2023  2023 
    Performance Ratios:              
    Return on average assets (1) 0.45%  0.33%  0.08%  0.39%  (0.01%)
    Return on average equity (1) 2.59%  1.97%  0.42%  2.11%  (0.07%)
    Net interest rate spread (1) (2) 1.72%  1.82%  1.74%  1.68%  1.75%
    Net interest margin (1) (3) 2.62%  2.71%  2.66%  2.58%  2.65%
    Non-interest expense to average assets (1) 2.28%  2.35%  2.66%  2.58%  2.65%
    Efficiency ratio (4) 80.09%  82.56%  96.83%  78.11%  96.15%
    Average interest-earning assets to average interest- bearing liabilities 129.73%  129.69%  133.50%  134.49%  137.67%
    Average equity to average assets 17.41%  17.00%  18.25%  18.32%  19.21%
    Capital Ratios:              
    Total capital to risk-weighted assets (Bank only) 22.47%  22.79%  23.30%  25.10%  26.30%
    Tier 1 capital to risk-weighted assets (Bank only) 21.24%  21.54%  22.05%  23.85%  25.05%
    Common equity Tier 1 capital to risk-weighted assets (Bank only) 21.24%  21.54%  22.05%  23.85%  25.05%
    Tier 1 capital to average assets (Bank only) 16.70%  16.26%  17.49%  17.51%  17.95%
    Asset Quality Ratios:              
    Allowance for credit losses on loans as a percentage of total loans 1.18%  1.23%  1.36%  1.51%  1.64%
    Allowance for credit losses on loans as a percentage of nonperforming loans 130.28%  140.90%  152.99%  169.49%  167.06%
    Net (charge-offs) recoveries to average outstanding loans (1) (0.10%)  (0.25%)  (0.24%)  (0.34%)  (0.41%)
    Non-performing loans as a percentage of total gross loans 0.89%  0.87%  0.89%  0.89%  0.98%
    Non-performing loans as a percentage of total assets 0.65%  0.62%  0.62%  0.62%  0.63%
    Total non-performing assets as a percentage of total assets 0.65%  0.62%  0.62%  0.62%  0.63%
    Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5) 0.82%  0.79%  0.81%  0.82%  0.83%
    Other:              
    Number of offices 18   18   18   19   19 
    Number of full-time equivalent employees 227   233   237   243   244 
                   
    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

      June 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 $2,992  $—  $(196) $2,796  $2,990  $—  $(206) $2,784 
    Corporate Bonds  25,773   —   (1,859)  23,914   25,790   —   (2,122)  23,668 
    Mortgage-Backed Securities:                        
    Collateralized Mortgage Obligations(1)  36,886   —   (6,280)  30,606   39,375   —   (6,227)  33,148 
    FHLMC Certificates  9,611   —   (1,523)  8,088   10,163   —   (1,482)  8,681 
    FNMA Certificates  58,797   —   (11,174)  47,623   61,359   —   (9,842)  51,517 
    GNMA Certificates  99   —   (1)  98   104   —   —   104 
    Total available-for-sale securities $134,158  $—  $(21,033) $113,125  $139,781  $—  $(19,879) $119,902 
                             
    Held-to-Maturity Securities:                        
    U.S. Agency Bonds $25,000  $—  $(253) $24,747  $25,000  $—  $(181) $24,819 
    Corporate Bonds  82,500   —   (2,230)  80,270   82,500   —   (2,691)  79,809 
    Mortgage-Backed Securities:                        
    Collateralized Mortgage Obligations(1)  200,684   —   (8,533)  192,151   212,093   104   (5,170)  207,027 
    FHLMC Certificates  3,664   —   (274)  3,390   3,897   —   (244)  3,653 
    FNMA Certificates  112,925   —   (5,565)  107,360   118,944   —   (4,088)  114,856 
    SBA Certificates  17,558   169   —   17,727   19,712   166   —   19,878 
    Allowance for Credit Losses  (218)  —   —   —   (398)  —   —   — 
    Total held-to-maturity securities $442,113  $169  $(16,855) $425,645  $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 Six  For the 
      Months Ended  Year Ended 
      June 30, 2024  December 31, 2023 
    Allowance for credit losses on securities at beginning of the period $398  $— 
    CECL adoption  —   662 
    Benefit for credit losses  (180)  (264)
    Allowance for credit losses on securities at end of the period $218  $398 
             

    Ponce Financial Group, Inc. and Subsidiaries
    Loan Portfolio

      As of 
      June 30,  March 31,  December 31,  September 30,  June 30, 
      2024  2024  2023  2023  2023 
      Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent 
      (Dollars in thousands) 
    Mortgage loans:                              
    1-4 family residential                              
    Investor Owned $337,292   16.49% $339,331   16.92% $343,689   17.89% $347,082   19.13% $351,754   20.43%
    Owner-Occupied  147,485   7.21%  150,842   7.52%  152,311   7.93%  151,866   8.37%  154,116   8.94%
    Multifamily residential  545,323   26.66%  545,825   27.22%  550,559   28.65%  553,694   30.52%  550,033   31.94%
    Nonresidential properties  337,583   16.51%  327,350   16.32%  342,343   17.81%  321,472   17.71%  317,416   18.43%
    Construction and land  641,879   31.39%  608,665   30.35%  503,925   26.22%  411,383   22.67%  315,843   18.34%
    Total mortgage loans  2,009,562   98.26%  1,972,013   98.33%  1,892,827   98.50%  1,785,497   98.40%  1,689,162   98.08%
    Non-mortgage loans:                              
    Business loans  30,222   1.48%  26,664   1.33%  19,779   1.03%  18,416   1.02%  21,041   1.22%
    Consumer loans (1)  5,305   0.26%  6,741   0.34%  8,966   0.47%  10,416   0.58%  11,958   0.70%
    Total non-mortgage loans  35,527   1.74%  33,405   1.67%  28,745   1.50%  28,832   1.60%  32,999   1.92%
    Total loans, gross  2,045,089   100.00%  2,005,418   100.00%  1,921,572   100.00%  1,814,329   100.00%  1,722,161   100.00%
    Net deferred loan origination costs  1,145      674      468      692      1,059    
    Allowance for credit losses on loans  (24,061)     (24,664)     (26,154)     (27,414)     (28,173)   
    Loans, net $2,022,173     $1,981,428     $1,895,886     $1,787,607     $1,695,047    
                                        
    1. As of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, consumer loans include $4.3 million, $5.7 million, $8.0 million, $9.3 million and $11.2 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain.

    Ponce Financial Group, Inc. and Subsidiaries
    Grain Loan Exposure

    Grain Technologies, Inc. ("Grain") Total Exposure as of June 30, 2024 
    (in thousands) 
    Receivable from Grain   
    Microloans originated - put back to Grain (inception-to-June 30, 2024) $23,986 
    Write-downs, net of recoveries (inception-to-date as of June 30, 2024)  (15,341)
    Cash receipts from Grain (inception-to-June 30, 2024)  (6,819)
    Grant/reserve  (1,826)
    Net receivable as of June 30, 2024 $— 
    Microloan receivables from Grain Borrowers   
    Grain originated loans receivable as of June 30, 2024 $4,277 
    Allowance for credit losses on loans as of June 30, 2024(1)  (3,623)
    Microloans, net of allowance for credit losses on loans as of June 30, 2024 $654 
    Investments   
    Investment in Grain $1,000 
    Investment in Grain write-off in Q3 2022  (1,000)
    Investment in Grain as of June 30, 2024  — 
    Total exposure related to Grain as of June 30, 2024(2) $654 
         
    1. Excludes $1.6 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.
    2. Total remaining exposure to Grain borrowers. These loans are now serviced by the Bank.

    On November 1, 2023, Ponce Financial Group, Inc. and Grain signed a Perpetual Software License Agreement in order for the Bank to assume the servicing of the remaining Grain loans. 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 loans.

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

     For the Three Months Ended 
     June 30,  March 31,  December 31,  September 30,  June 30, 
     2024  2024  2023  2023  2023 
     (Dollars in thousands) 
    Allowance for credit losses on loans at beginning of the period$24,664  $26,154  $27,414  $28,173  $28,975 
    (Benefit) provision for credit losses on loans (120)  (255)  (126)  750   934 
    Charge-offs:              
    Mortgage loans:              
    1-4 family residences              
    Investor owned —   —   —   —   — 
    Owner occupied —   —   —   —   — 
    Multifamily residences —   —   —   —   — 
    Nonresidential properties —   —   —   —   — 
    Construction and land —   —   —   —   — 
    Non-mortgage loans:              
    Business —   (52)  (63)  —   — 
    Consumer (747)  (1,302)  (1,135)  (1,592)  (1,931)
    Total charge-offs (747)  (1,354)  (1,198)  (1,592)  (1,931)
    Recoveries:              
    Mortgage loans:              
    1-4 family residences              
    Investor owned —   —   —   —   — 
    Owner occupied —   —   —   —   — 
    Multifamily residences —   —   —   —   — 
    Nonresidential properties —   —   —   —   — 
    Construction and land —   —   —   —   — 
    Non-mortgage loans:              
    Business 7   1   —   3   — 
    Consumer 257   118   64   80   195 
    Total recoveries 264   119   64   83   195 
    Net (charge-offs) recoveries (483)  (1,235)  (1,134)  (1,509)  (1,736)
    Allowance for credit losses on loans at end of the period$24,061  $24,664  $26,154  $27,414  $28,173 
     

    Ponce Financial Group, Inc. and Subsidiaries
    Deposits

      As of 
      June 30,  March 31,  December 31,  September 30,  June 30, 
      2024  2024  2023  2023  2023 
      Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent 
      (Dollars in thousands) 
    Demand(1) $178,125   11.09% $191,541   12.07% $185,151   12.28% $214,326   15.30% $225,106   15.61%
    Interest-bearing deposits:                              
    NOW/IOLA accounts(1)  81,178   5.05%  73,202   4.62%  77,909   5.17%  74,055   5.29%  64,193   4.45%
    Money market accounts(2)  502,255   31.27%  482,344   30.42%  432,735   28.70%  370,500   26.44%  387,970   26.91%
    Reciprocal deposits  109,945   6.85%  97,718   6.16%  96,860   6.42%  82,670   5.90%  100,919   7.00%
    Savings accounts  109,694   6.83%  112,713   7.11%  114,139   7.57%  117,870   8.41%  119,635   8.30%
    Total NOW, money market, reciprocal and savings accounts  803,072   50.00%  765,977   48.31%  721,643   47.86%  645,095   46.04%  672,717   46.66%
    Certificates of deposit of $250K or more(2)  156,224   9.73%  146,296   9.23%  132,153   8.77%  122,353   8.73%  120,043   8.32%
    Brokered certificates of deposit(3)  94,614   5.89%  94,689   5.97%  98,729   6.55%  98,729   7.05%  98,729   6.85%
    Listing service deposits(3)  9,361   0.58%  12,688   0.80%  14,433   0.96%  15,180   1.08%  20,258   1.40%
    All other certificates of deposit less than $250K(2)  364,701   22.71%  374,593   23.62%  355,511   23.58%  305,449   21.80%  305,160   21.16%
    Total certificates of deposit  624,900   38.91%  628,266   39.62%  600,826   39.86%  541,711   38.66%  544,190   37.73%
    Total interest-bearing deposits  1,427,972   88.91%  1,394,243   87.93%  1,322,469   87.72%  1,186,806   84.70%  1,216,907   84.39%
    Total deposits $1,606,097   100.00% $1,585,784   100.00% $1,507,620   100.00% $1,401,132   100.00% $1,442,013   100.00%
     
    1. As of December 31, 2023, September 30, 2023 and June 30, 2023, $58.2 million, $51.5 million and $41.4 million, respectively, were reclassified from demand to NOW/IOLA accounts.
    2. As of June 30, 2023, $150.6 million of Raisin deposits were reclassified from money market accounts to certificates of deposits. $36.4 million were reclassified to Certificates of deposits of $250K or more and $114.2 million were reclassified to certificates of deposit less than $250K.
    3. As of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, there were $1.5 million, $1.5 million, $0.3 million, $0.3 million and $3.3 million, respectively, in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.

    Ponce Financial Group, Inc. and Subsidiaries
    Borrowings

     June 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$109,321  $109,321   4.69% $363,321  $363,321   4.55%
    2025 250,000   250,000   4.69   50,000   50,000   4.41 
    2026 50,000   50,000   4.83   —   —   — 
    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 
     $680,421  $680,421   4.20% $684,421  $684,421   4.10%
     

    Ponce Financial Group, Inc. and Subsidiaries
    Nonperforming Assets

     As of Three Months Ended 
     June 30,  March 31,  December 31,  September 30,  June 30, 
     2024  2024  2023  2023  2023 
     (Dollars in thousands) 
    Non-accrual loans:              
    Mortgage loans:              
    1-4 family residential              
    Investor owned$436  $399  $793  $396  $296 
    Owner occupied 1,423   1,426   1,682   1,685   2,363 
    Multifamily residential 5,754   4,098   2,979   1,444   1,435 
    Nonresidential properties 828   441   —   —   — 
    Construction and land 8,907   10,277   10,759   11,721   11,721 
    Non-mortgage loans:              
    Business 396   146   165   209   — 
    Consumer —   —   —   —   — 
    Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty)(1)$17,744  $16,787  $16,378  $15,455  $15,815 
                   
    Non-accruing modifications to borrowers experiencing financial difficulty(1):              
    Mortgage loans:              
    1-4 family residential              
    Investor owned$277  $270  $270  $270  $209 
    Owner occupied 448   447   447   449   840 
    Multifamily residential —   —   —   —   — 
    Nonresidential properties —   —   —   —   — 
    Construction and land —   —   —   —   — 
    Non-mortgage loans:              
    Business —   —   —   —   — 
    Consumer —   —   —   —   — 
    Total non-accruing modifications to borrowers experiencing financial difficulty(1) 725   717   717   719   1,049 
    Total non-accrual loans(2)$18,469  $17,504  $17,095  $16,174  $16,864 
                   
    Accruing modifications to borrowers experiencing financial difficulty (1):              
    Mortgage loans:              
    1-4 family residential              
    Investor owned$1,830  $1,850  $2,112  $2,131  $2,161 
    Owner occupied 2,171   2,288   2,313   2,335   2,353 
    Multifamily residential —   —   —   —   — 
    Nonresidential properties 707   748   757   765   783 
    Construction and land —   —   —   —   — 
    Non-mortgage loans:              
    Business —   —   —   —   — 
    Consumer —   —   —   —   — 
    Total accruing modifications to borrowers experiencing financial difficulty(1)$4,708  $4,886  $5,182  $5,231  $5,297 
    Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty(1)$23,177  $22,390  $22,277  $21,405  $22,161 
    Total non-performing loans to total gross loans 0.89%  0.87%  0.89%  0.89%  0.98%
    Total non-performing assets to total assets 0.65%  0.62%  0.62%  0.62%  0.63%
    Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets(1) 0.82%  0.79%  0.81%  0.82%  0.83%
     
    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 June 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)$2,040,149  $31,281  6.17% $1,683,117  $23,015  5.48%
    Securities(3) 562,560   5,486  3.92%  614,598   5,731  3.74%
    Other(4)(5) 141,368   2,025  5.76%  164,509   2,309  5.63%
    Total interest-earning assets 2,744,077   38,792  5.69%  2,462,224   31,055  5.06%
    Non-interest-earning assets(5) 105,774        121,169      
    Total assets$2,849,851       $2,583,393      
    Interest-bearing liabilities:               
    NOW/IOLA(6) (7)$72,932  $151  0.83% $66,314  $305  1.84%
    Money market(7) (8) 599,209   7,209  4.84%  408,329   4,077  4.00%
    Savings 111,859   27  0.10%  122,802   29  0.09%
    Certificates of deposit(8) 635,850   6,358  4.02%  524,445   3,881  2.97%
    Total deposits 1,419,850   13,745  3.89%  1,121,890   8,292  2.96%
    Advance payments by borrowers 14,948   2  0.05%  16,967   2  0.05%
    Borrowings 680,421   7,141  4.22%  649,652   6,479  4.00%
    Total interest-bearing liabilities 2,115,219   20,888  3.97%  1,788,509   14,773  3.31%
    Non-interest-bearing liabilities:               
    Non-interest-bearing demand(6) 188,920   —     255,673   —   
    Other non-interest-bearing liabilities 49,437   —     42,906   —   
    Total non-interest-bearing liabilities 238,357   —     298,579   —   
    Total liabilities 2,353,576   20,888     2,087,088   14,773   
    Total equity 496,275        496,305      
    Total liabilities and total equity$2,849,851     3.97% $2,583,393     3.31%
    Net interest income   $17,904       $16,282   
    Net interest rate spread(9)      1.72%       1.75%
    Net interest-earning assets(10)$628,858       $673,715      
    Net interest margin(11)      2.62%       2.65%
    Average interest-earning assets to interest-bearing liabilities      129.73%       137.67%
     
    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. FRBNY demand deposits for prior period have been reclassified for consistency.
    6. Includes reclassification of $44.0 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended June 30, 2023.
    7. Includes $0.3 million of interest expense reclassified from money market to NOW/IOLA for the three months ended June 30, 2023.
    8. Includes reclassification of $130.7 million average outstanding balances and $1.5 million of interest expenses from money market to certificates of deposit for the three months ended June 30, 2023.
    9. 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.
    10. Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
    11. 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 Six Months Ended June 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)$2,009,706  $61,945   6.20% $1,627,939  $42,715   5.29%
    Securities(3) 569,397   11,105   3.92%  622,822   11,806   3.82%
    Other(4)(5) 189,899   5,408   5.73%  106,812   2,890   5.46%
    Total interest-earning assets 2,769,002   78,458   5.70%  2,357,573   57,411   4.91%
    Non-interest-earning assets(5) 106,172         122,083       
    Total assets$2,875,174        $2,479,656       
    Interest-bearing liabilities:                 
    NOW/IOLA(6) (7)$77,891  $369   0.95% $69,024  $993   2.90%
    Money market(7) (8) 571,886   13,501   4.75%  361,557   6,168   3.44%
    Savings 112,680   55   0.10%  125,823   59   0.09%
    Certificates of deposit(8) 632,689   12,738   4.05%  520,420   7,106   2.75%
    Total deposits 1,395,146   26,663   3.84%  1,076,824   14,326   2.68%
    Advance payments by borrowers 13,917   4   0.06%  14,954   5   0.07%
    Borrowings 725,745   15,064   4.17%  587,026   11,553   3.97%
    Total interest-bearing liabilities 2,134,808   41,731   3.93%  1,678,804   25,884   3.11%
    Non-interest-bearing liabilities:                 
    Non-interest-bearing demand(6) 193,891   —      261,988   —    
    Other non-interest-bearing liabilities 51,749   —      42,451   —    
    Total non-interest-bearing liabilities 245,640   —      304,439   —    
    Total liabilities 2,380,448   41,731      1,983,243   25,884    
    Total equity 494,726         496,413       
    Total liabilities and total equity$2,875,174      3.93% $2,479,656      3.11%
    Net interest income   $36,727        $31,527    
    Net interest rate spread(9)       1.77%        1.80%
    Net interest-earning assets(10)$634,194        $678,769       
    Net interest margin(11)       2.67%        2.71%
    Average interest-earning assets to                 
    interest-bearing liabilities       129.71%        140.43%
                        
    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. FRBNY demand deposits for prior period have been reclassified for consistency.
    6. Includes reclassification of $46.2 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the six months ended June 30, 2023.
    7. Includes $1.0 million of interest expense reclassified from money market to NOW/IOLA for the six months ended June 30, 2023.
    8. Includes reclassification of $132.8 million average outstanding balances and $2.8 million of interest expenses from money market to certificates of deposit for the six months ended June 30, 2023.
    9. 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.
    10. Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
    11. Net interest margin represents net interest income divided by average total interest-earning assets.

    Ponce Financial Group, Inc. and Subsidiaries
    Other Data

     As of 
     June 30,  March 31,  December 31,  September 30,  June 30, 
     2024  2024  2023  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 1,074,979   1,096,214   1,101,191   1,233,111   617,924 
    Common shares outstanding at end of period 23,811,732   23,790,497   23,785,520   23,653,600   24,268,787 
                   
    Book value per common share$11.45  $11.29  $11.20  $10.99  $10.94 
    Tangible book value per common share$11.45  $11.29  $11.20  $10.99  $10.94 
                        

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


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