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

Fourth Quarter 2024 Highlights (Compared to Prior Periods):

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

Full Year 2024 Highlights (Compared to 2023):

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

President and Chief Executive Officer's Comments

Carlos P. Naudon, Ponce Financial Group, Inc.'s President and CEO, stated, "We are pleased with the progress we have made in 2024. We executed an agreement with the U.S. Treasury that gives us the option, upon achievement of certain conditions, to buy back the ECIP preferred shares we previously issued at favorable prices, we launched our PonceDirect digital bank and gained significant traction with SBA loans. Our levels of liquidity and capital remain strong, while our loans grew by 20.61% and deposits by 25.02%. We have seen consistent profitability over the past several quarters as we continue to see increases both in net interest income as well as net interest margin, while expenses are down year on year, reflecting both reduced development and continued adoption of our new technology. We remain committed to the communities we serve and our status as a Minority Depository Institution ("MDI")/Community Development Financial Institution ("CDFI"), and we continue to invest in our people and in technology to improve our efficiency."

Executive Chairman's Comment

Steven A. Tsavaris, Ponce Financial Group's Executive Chairman added, "We are working diligently to ensure that we will meet the conditions necessary to allow us to repurchase our ECIP preferred stock in the future. The agreement we executed with the U.S. Treasury in December 2024, allows for a repurchase of the ECIP preferred stock once we have achieved Deep Impact Lending, as defined under the ECIP program, that is at least 60% of our total originations on average over 16 consecutive quarters, provided that we also meet certain other conditions at the time we exercise the repurchase option. As of December 31, 2024, our Deep Impact Lending over the last 10 consecutive quarters stands at 79%, well above the threshold. Also, from second quarter of 2024 to fourth quarter of 2024, we have originated $514 million of Deep Impact Lending as well as $54 million of qualified lending which represents 383% of our base, which period, together with the first quarter of 2025, will determine the rate of dividends payable on the ECIP preferred stock from the third quarter of 2025 to the second quarter of 2026. With one quarter to go, we are confident that we will get to over 400% of our base and ensure another year of preferred dividends of 0.50%, which is the lowest dividend rate."

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

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

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

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

	(1)	Annualized where appropriate.
	(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
	(5)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

Summary of Results of Operations

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

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

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

Net income for the year ended December 31, 2024 was $11.0 million compared to a net income of $3.4 million for the year ended December 31, 2023. The $7.6 million increase in net income was attributable to an increase of $11.2 million in net interest income and

a decrease of $1.9 million in non-interest expense, partially offset by a decrease of $2.9 million in non-interest income and increases of $2.2 million in provision for income taxes and $0.4 million in provision for credit losses.

Net Interest Income and Net Margin

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

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

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

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

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

Non-interest Income

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

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

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

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

Non-interest Expense

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

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

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

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

Balance Sheet Summary

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

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

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

About Ponce Financial Group, Inc.

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

Forward Looking Statements

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

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)


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

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

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

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

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

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

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

Ponce Financial Group, Inc. and Subsidiaries

Key Metrics

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

	(1)	Annualized where appropriate.
	(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and non-interest income.
	(5)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

Ponce Financial Group, Inc. and Subsidiaries

Securities Portfolio

	December 31, 2024										December 31, 2023
				Gross		Gross								Gross		Gross
	Amortized			Unrealized		Unrealized					Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value		Cost			Gains		Losses			Fair Value
	(in thousands)										(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,994		$	—	$	(121	)	$	2,873	$	2,990		$	—	$	(206	)	$	2,784
Corporate Bonds		21,762			10		(1,368	)		20,404		25,790			—		(2,122	)		23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		34,526			—		(5,991	)		28,535		39,375			—		(6,227	)		33,148
FHLMC Certificates		9,028			—		(1,366	)		7,662		10,163			—		(1,482	)		8,681
FNMA Certificates		56,010			—		(10,602	)		45,408		61,359			—		(9,842	)		51,517
GNMA Certificates		88			—		—			88		104			—		—			104
Total available-for-sale securities	$	124,408		$	10	$	(19,448	)	$	104,970	$	139,781		$	—	$	(19,879	)	$	119,902

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(40	)	$	24,960	$	25,000		$	—	$	(181	)	$	24,819
Corporate Bonds		32,500			12		(535	)		31,977		82,500			—		(2,691	)		79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		186,634			—		(7,052	)		179,582		212,093			104		(5,170	)		207,027
FHLMC Certificates		3,229			—		(223	)		3,006		3,897			—		(244	)		3,653
FNMA Certificates		105,417			—		(5,114	)		100,303		118,944			—		(4,088	)		114,856
SBA Certificates		15,374			92		—			15,466		19,712			166		—			19,878
Allowance for Credit Losses		(216	)		—		—			—		(398	)		—		—			—
Total held-to-maturity securities	$	367,938		$	104	$	(12,964	)	$	355,294	$	461,748		$	270	$	(12,374	)	$	450,042

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

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

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

Ponce Financial Group, Inc. and Subsidiaries

Loan Portfolio

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

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

Ponce Financial Group, Inc. and Subsidiaries

Microloans Exposure (previously originated by the Bank under its arrangement with Grain)

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

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

Ponce Financial Group, Inc. and Subsidiaries

Allowance for Credit Losses on Loans

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

Ponce Financial Group, Inc. and Subsidiaries

Deposits

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

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

Ponce Financial Group, Inc. and Subsidiaries

Borrowings

	December 31,							December 31,
	2024							2023
	Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate			Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate
	(Dollars in thousands)
Overnight line of credit advance	$	25,000	$	25,000		4.69	%	$	—	$	—		—	%

Term advances ending:
2024		—		—		—			363,321		363,321		4.55
2025		100,000		100,000		4.48			50,000		50,000		4.41
2026		200,000		200,000		4.25			—		—		—
2027		212,000		212,000		3.44			212,000		212,000		3.44
2028		9,100		9,100		3.84			9,100		9,100		3.84
2029		50,000		50,000		3.35			50,000		50,000		3.35
	$	596,100	$	596,100		3.94	%	$	684,421	$	684,421		4.10	%

Ponce Financial Group, Inc. and Subsidiaries

Nonperforming Assets

	As of Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	436		$	436		$	436		$	399		$	793
Owner occupied		1,423			1,423			1,423			1,426			1,682
Multifamily residential		10,271			4,685			5,754			4,098			2,979
Nonresidential properties		—			824			828			441			—
Construction and land		14,158			8,907			8,907			10,277			10,759
Non-mortgage loans:
Business		343			180			396			146			165
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) ⁽¹⁾	$	26,631		$	16,455		$	17,744		$	16,787		$	16,378

Non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	279		$	278		$	277		$	270		$	270
Owner occupied		435			444			448			447			447
Multifamily residential		—			—			—			—			—
Nonresidential properties		—			—			—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾		714			722			725			717			717
Total non-accrual loans ⁽²⁾	$	27,345		$	17,177		$	18,469		$	17,504		$	17,095

Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	1,807		$	1,821		$	1,830		$	1,850		$	2,112
Owner occupied		2,062			2,116			2,171			2,288			2,313
Multifamily residential		—			—			—			—			—
Nonresidential properties		652			672			707			748			757
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		215			222			—			—			—
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	4,736		$	4,831		$	4,708		$	4,886		$	5,182
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	32,081		$	22,008		$	23,177		$	22,390		$	22,277
Total non-performing loans to total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Total non-performing assets to total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets ⁽¹⁾		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%

	(1)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
	(2)	Includes nonperforming mortgage loans held for sale.

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

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

	(1)	Annualized where appropriate.
	(2)	Loans include loans and mortgage loans held for sale, at fair value.
	(3)	Securities include available-for-sale securities and held-to-maturity securities.
	(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(5)	Includes reclassification of $55.7 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(6)	Includes $0.2 million of interest expense reclassified from money market to NOW/IOLA for the three months ended December 31, 2023.
	(7)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(8)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(9)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

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

	(1)	Loans include loans and mortgage loans held for sale, at fair value.
	(2)	Securities include available-for-sale securities and held-to-maturity securities.
	(3)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(4)	Includes reclassification of $48.8 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(5)	Includes $1.3 million of interest expense reclassified from money market to NOW/IOLA for the year ended December 31, 2023.
	(6)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(7)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(8)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries

Other Data

	As of
	December 31,		September 30,		June 30,		March 31,		December 31,
	2024		2024		2024		2024		2023
Other Data
Common shares issued		24,886,711		24,886,711		24,886,711		24,886,711		24,886,711
Less treasury shares		925,497		1,067,248		1,074,979		1,096,214		1,101,191
Common shares outstanding at end of period		23,961,214		23,819,463		23,811,732		23,790,497		23,785,520

Book value per common share	$	11.71	$	11.74	$	11.45	$	11.29	$	11.20
Tangible book value per common share	$	11.71	$	11.74	$	11.45	$	11.29	$	11.20

Contact:

Sergio Vaccaro

Sergio.vaccaro@poncebank.net

718-931-9000

Ponce Financial Group, Inc. Reports Fourth Quarter 2024 Results