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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Annualized where appropriate.
- 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.
- Net interest margin represents net interest income divided by
average total interest-earning assets.
- Efficiency ratio represents noninterest expense divided by the
sum of net interest income and noninterest income.
- 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Annualized where appropriate.
- 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.
- Net interest margin represents net interest income divided by
average total interest-earning assets.
- Efficiency ratio represents noninterest expense divided by the
sum of net interest income and non-interest income.
- 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 |
|
|
- 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 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 |
|
|
|
|
|
|
- Excludes $1.6 million of security deposits by Grain originated
borrowers reported in deposits in the accompanying Consolidated
Statements of Financial Conditions.
- 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 |
% |
|
- 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.
- 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.
- 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 |
% |
|
- 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.
- 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 |
% |
|
- Annualized where appropriate.
- Loans include loans and mortgage loans held for sale, at fair
value.
- Securities include available-for-sale securities and
held-to-maturity securities.
- Includes FHLBNY demand account, FHLBNY stock dividends and
FRBNY demand deposits.
- FRBNY demand deposits for prior period have been reclassified
for consistency.
- 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.
- Includes $0.3 million of interest expense reclassified from
money market to NOW/IOLA for the three months ended June 30,
2023.
- 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.
- 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.
- Net interest-earning assets represent total interest-earning
assets less total interest-bearing liabilities.
- 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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Annualized where appropriate.
- Loans include loans and mortgage loans held for sale, at fair
value.
- Securities include available-for-sale securities and
held-to-maturity securities.
- Includes FHLBNY demand account, FHLBNY stock dividends and
FRBNY demand deposits.
- FRBNY demand deposits for prior period have been reclassified
for consistency.
- 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.
- Includes $1.0 million of interest expense reclassified from
money market to NOW/IOLA for the six months ended June 30,
2023.
- 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.
- 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.
- Net interest-earning assets represent total interest-earning
assets less total interest-bearing liabilities.
- 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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