NEW YORK, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the "Company") (NASDAQ:PDLB), the holding company for Ponce Bank, N.A. (the "Bank"), today announced results for the fourth quarter of 2025.

Fourth Quarter 2025 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $9.9 million, or $0.42 per diluted share for the three months ended December 31, 2025, as compared to net income available to common stockholders of $6.2 million, or $0.27 per diluted share for the three months ended September 30, 2025 and net income available to common stockholders of $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024. Total net income for the three months ended December 31, 2025 was $10.1 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended December 31, 2025.
Included in the $9.9 million of net income available to common stockholders for the fourth quarter of 2025 results is $48.8 million in interest and dividend income and $3.5 million in non-interest income, offset by $20.9 million in interest expense, $16.6 million in non-interest expense, $3.6 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 $27.9 million for the fourth quarter of 2025 increased $2.7 million, or 10.64%, from the prior quarter and increased $7.2 million, or 34.75%, from the same quarter last year.
Net interest margin was 3.57% for the fourth quarter of 2025, versus 3.30% for the prior quarter and 2.80% for the same quarter last year.

Full Year 2025 Highlights (Compared to 2024):

Net income available to common stockholders was $27.6 million, or $1.20 per diluted share for the year ended December 31, 2025, as compared to net income available to common stockholders of $10.3 million, or $0.46 per diluted share for the year ended December 31, 2024. The Company paid dividends of $1.1 million on its preferred stock during the for the year ended December 31, 2025 and $0.6 million for the year ended December 31, 2024.
Net interest income for the year ended December 31, 2025 was $99.8 million, an increase of $23.3 million, or 30.51%, compared to $76.5 million for the year ended December 31, 2024.
Non-interest income for the year ended December 31, 2025 was $9.4 million, an increase of $2.2 million, or 30.49%, from $7.2 million for the year ended December 31, 2024.
Non-interest expense for the year ended December 31, 2025 was $67.0 million, a decrease of $0.4 million, or 0.66%, compared to $67.5 million for the year ended December 31, 2024.
Cash and equivalents were $126.2 million as of December 31, 2025, a decrease of $13.7 million, or 9.79%, from $139.8 million as of December 31, 2024.
Securities totaled $365.2 million as of December 31, 2025, a decrease of $107.7 million, or 22.78%, from $472.9 million as of December 31, 2024 primarily due to regular principal payments, the call of four available-for-sale securities in the total amount of $8.3 million and the maturity/call of three held-to-maturity securities in the amount of $50.0 million.
Net loans receivable were $2.60 billion as of December 31, 2025, an increase of $312.7 million, or 13.67%, from $2.29 billion as of December 31, 2024.
Deposits were $2.05 billion as of December 31, 2025, an increase of $151.4 million, or 7.99%, from $1.90 billion as of December 31, 2024.

President and Chief Executive Officer's Comments

Carlos P. Naudon, Ponce Financial Group, Inc.'s President and CEO, stated "The focused execution of our long-term strategy continues to bear fruits. We're pleased with the increase in profitability over the last several quarters driven by incremental net interest income and controlled operating expenses. Our net interest margin grew 78bps this quarter versus the same quarter last year, and our non-interest expense remains flat for the last three consecutive years. Our capital ratios continue to be well in excess of regulatory requirements. We remain committed to the communities we serve and we'll continue investing 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're pleased with our levels of loan growth as we continue to make progress towards our commitments under the U.S. Treasury's Emergency Capital Investment Program. As previously reported, we expect that our dividend yield will continue at the 0.50% level in the next dividend period starting later this year and we're close to achieving 16 quarters of a cumulative deep impact lending percentage of more than 60%. After 14 quarters, including the quarter ended December 31, 2025, we are at 82% deep impact lending."

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

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2025			2025			2025			2025			2024
Performance Ratios:
Return on average assets⁽¹⁾		1.26	%		0.82	%		0.79	%		0.77	%		0.38	%
Return on common equity⁽¹⁾		12.50	%		8.10	%		7.88	%		7.97	%		3.76	%
Net interest margin^{(1) (2)}		3.57	%		3.30	%		3.27	%		2.98	%		2.80	%
Non-interest expense to average assets⁽¹⁾		2.06	%		2.10	%		2.18	%		2.19	%		2.25	%
Efficiency ratio⁽³⁾		52.95	%		62.15	%		63.69	%		68.70	%		75.63	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)		23.72	%		24.08	%		22.65	%		22.84	%		22.98	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)		13.39	%		13.39	%		12.49	%		12.51	%		12.44	%
Tier 1 capital to total assets (Ponce Financial Group)		17.28	%		17.33	%		17.13	%		16.84	%		17.70	%
Total capital to risk-weighted assets (Bank only)		21.63	%		21.79	%		21.22	%		21.38	%		21.47	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.53	%		20.66	%		20.15	%		20.35	%		20.40	%
Tier 1 capital to total assets (Bank only)		16.12	%		16.08	%		15.99	%		15.61	%		15.81	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.97	%		0.98	%		0.97	%		0.96	%		0.97	%
Allowance for credit losses on loans as a percentage of nonperforming loans		94.74	%		88.88	%		101.01	%		84.15	%		82.29	%
Net (charge-offs) recoveries to average outstanding loans⁽¹⁾		(0.13	%)		(0.03	%)		(0.04	%)		(0.04	%)		(0.45	%)
Non-performing loans as a percentage of total assets		0.83	%		0.88	%		0.76	%		0.88	%		0.90	%
Other:
Number of offices		17			18			17			18			19
Number of full-time equivalent employees		216			209			206			211			218

(1) Annualized.

(2) Net interest margin represents net interest income divided by average total interest-earning assets.

(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

Summary of Results of Operations

Net income for the three months ended December 31, 2025 was $10.1 million compared to net income of $6.5 million for the three months ended September 30, 2025 and net income of $2.9 million for the three months ended December 31, 2024.

The $3.6 million increase of net income for the three months ended December 31, 2025 compared to the three months ended September 30, 2025 was attributed mainly to increases of $2.7 million in net interest income and $2.0 million in non-interest income and a decrease of $0.3 million in provision for credit losses, offset by and an increase of $1.3 million in provision for income taxes while remaining relatively flat on non-interest expense.

The $7.2 million increase of net income for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 was largely due to increases of $7.2 million in net interest income and $1.4 million in non-interest income and a decrease of $0.8 million in non-interest expense, offset by increases of $2.0 million in provision for income taxes and $0.2 million in provision for credit losses.

Net income for the year ended December 31, 2025 was $28.7 million compared to net income of $11.0 million for the year ended December 31, 2024. The $17.7 million increase of net income for the year ended December 31, 2025 compared to the year ended December 31, 2024 was attributed mainly to increases of $23.3 million in net interest income as a result of a $22.9 million increase in total interest and dividend and a $0.4 million decrease in total interest expense, and $2.2 million in non-interest income and a decrease of $0.4 million in non-interest expense, partially offset by increases of $5.0 million in provision for income taxes, $3.2 million in provision for credit losses and $0.5 million in dividend on preferred shares.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended December 31, 2025, increased $2.7 million, or 10.64%, to $27.9 million compared to $25.2 million for the three months ended September 30, 2025 and increased $7.2 million, or 34.75%, compared to $20.7 million for the three months ended December 31, 2024.

The $2.7 million increase in net interest income from the three months ended September 30, 2025 was attributable to an increase of $2.0 million in total interest and dividend income and a decrease of $0.7 million in total interest expense. The $7.2 million increase in net interest income from the three months ended December 31, 2024 was attributable to an increase of $5.9 million in total interest and dividend income and a decrease of $1.3 million in total interest expense.

Net interest income for the year ended December 31, 2025, increased $23.3 million, or 30.51%, to $99.8 million compared to $76.5 million for the year ended December 31, 2024. The $23.3 million increase in net interest income was attributable to an increase of $22.9 million in total interest and dividend income and a decrease of $0.4 million in total interest expense.

Net interest margin was 3.57% for the three months ended December 31, 2025 compared to 3.30% for the prior quarter, an increase of 27bps and 2.80% for the same period last year, an increase of 77bps.

Net interest margin was 3.28% for the year ended December 31, 2025 compared to 2.70% for the year ended December 31, 2024, an increase of 58bps.

Non-interest Income

Non-interest income for the three months ended December 31, 2025, was $3.5 million, an increase of $2.0 million, or 133.18%, compared to $1.5 million for the three months ended September 30, 2025 and an increase of $1.4 million, or 65.90%, compared to $2.1 million for the three months ended December 31, 2024.

The $2.0 million increase in non-interest income from the three months ended September 30, 2025 was largely attributable to increases of $1.2 million in other non-interest income and $0.8 million in late and prepayment charges. The increase of $1.2 million in other non-interest income is largely attributable to positive valuation adjustments of the Bank's investments in Oaktree SBIC Fund, L.P. ("Oaktree") and EJF Silvergate Ventures Fund LP ("Silvergate").

The $1.4 million increase in non-interest income from the three months ended December 31, 2024 was largely attributable to increases of $0.9 million in late and prepayment charges, $0.4 million in grant income and $0.3 million in other non-interest income attributable to positive valuation adjustments for the Bank's investments in Oaktree and Silvergate, partially offset by decreases of $0.1 million in income on sale of SBA loans and $0.1 million in income on the sale of mortgage loans.

Non-interest income for the year ended December 31, 2025, was $9.4 million, an increase of $2.2 million, or 30.49%, compared to $7.2 million for the year ended December 31, 2024. The $2.2 million increase in non-interest income was largely attributable to increases of $1.6 million in late and prepayment charges, $1.3 million in grant income and $0.3 million in income on sale of SBA loans, partially offset by decreases of $0.6 million in other non-interest income and $0.4 million in income on the sale of mortgage loans.

Non-interest Expense

Non-interest expense for the three months ended December 31, 2025 was $16.6 million, remaining flat compared to the three months ended September 30, 2025 and a decrease of $0.8 million compared to $17.5 million when compared to the three months ended December 31, 2024.

The $0.8 million decrease in non-interest expense from the three months ended December 31, 2024 was mainly attributable to decreases of $0.5 million in direct loan expenses, $0.3 million in federal deposit insurance and regulatory assessment, and $0.3 million in professional fees, partially offset by an increase of $0.4 million in compensation and benefits.

Non-interest expense for the year ended December 31, 2025, was $67.0 million, a decrease of $0.4 million, or 0.66%, compared to $67.5 million for the year ended December 31, 2024. The $0.4 million decrease in non-interest expense was mainly attributable to decreases of $1.7 million in direct loan expenses and $0.6 million in professional fees, $0.3 million in federal deposit insurance and regulatory assessment, and $0.3 million in office supplies, telephone and postage, partially offset by increases of $0.9 million in occupancy and equipment, $0.5 million in compensation and benefits, $0.5 million in data processing expenses and $0.2 million in other operating expense.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $30.2 million at December 31, 2025 compared to $32.4 million at September 30, 2025 and $32.1 million at December 31, 2024.

During the three months ended December 31, 2025, a credit loss provision of $1.1 million on loans was recorded, consisting of $1.5 million charged on the funded portion and $0.4 million benefit on the unfunded portion on loans. During the three months ended September 30, 2025, a credit loss provision of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion and $0.5 million charged on the unfunded portion on loans. During the three months ended December 31, 2024, a credit loss provision of $0.9 million on loans was recorded, consisting of $1.1 million charged on the funded portion on loans and a benefit of $0.2 million on the unfunded portion on loans.

During the year ended December 31, 2025, a credit loss provision of $3.8 million on loans was recorded, consisting of $4.5 million charged on the funded portion and a benefit of $0.7 million on the unfunded portion on loans. During the year ended December 31, 2024, a credit loss provision of $0.8 million on loans was recorded, consisting of $1.5 million charged on the funded portion on loans and a benefit of $0.7 million on unfunded portion on loans.

Balance Sheet Summary

Total assets increased $184.0 million, or 6.05%, to $3.22 billion as of December 31, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $312.7 million in net loans receivable and $10.7 million in purchases of Federal Reserve Bank of New York stock, partially offset by decreases of $95.0 million in held-to-maturity securities, $13.7 million in cash and cash equivalents, $12.8 million in available-for-sale securities, $7.6 million in other assets, $7.3 million in mortgage loans held for sale, $1.5 million in right of use asset, $1.2 million in premises and equipment, net and $0.6 million in deferred tax assets.

Total liabilities increased $148.0 million, or 5.84%, to $2.68 billion as of December 31, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to an increase of $151.4 million in deposits, partially offset by decreases of $2.2 million in other liabilities and $1.3 million in operating lease liabilities.

Total stockholders' equity increased $36.0 million, or 7.13%, to $541.5 million as of December 31, 2025, from $505.5 million as of December 31, 2024. The $36.0 million increase in stockholders' equity was largely attributable to $28.7 million in net income, $4.5 million in other comprehensive income, $1.9 million impact to additional paid in capital as a result of share-based compensation, $1.9 million from release of ESOP shares and $0.1 million from exercise of stock options, offset by $1.1 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

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

Forward Looking Statements

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

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)

	As of
	December 31,			September 30,			June 30,			March 31,			December 31,
	2025			2025			2025			2025			2024
ASSETS
Cash and due from banks:
Cash	$	28,511		$	29,296		$	35,767		$	32,113		$	35,478
Interest-bearing deposits		97,643			117,283			90,872			97,780			104,361
Total cash and cash equivalents		126,154			146,579			126,639			129,893			139,839
Available-for-sale securities, at fair value		92,196			94,822			96,562			103,570			104,970
Held-to-maturity securities, at amortized cost		272,982			285,125			336,879			358,024			367,938
Placement with banks		249			249			249			249			249
Mortgage loans held for sale, at fair value		3,388			5,794			5,703			8,567			10,736
Loans receivable, net		2,599,258			2,490,046			2,458,712			2,370,931			2,286,599
Accrued interest receivable		17,905			18,903			19,126			19,008			17,771
Premises and equipment, net		15,638			16,129			16,067			16,417			16,794
Right of use assets		27,583			28,295			28,806			29,496			29,093
Federal Home Loan Bank of New York stock (FHLBNY), at cost		29,309			25,945			26,620			25,807			29,182
Federal Reserve Bank of New York stock (FRBNY), at cost		10,698			—			—			—			—
Deferred tax assets		11,501			12,402			12,143			11,629			12,074
Other assets		17,109			32,790			26,363			16,245			24,693
Total assets	$	3,223,970		$	3,157,079		$	3,153,869		$	3,089,836		$	3,039,938
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	2,046,635		$	2,063,081		$	2,053,151		$	2,017,848		$	1,895,213
Borrowings		596,100			521,100			536,100			521,100			596,100
Operating lease liabilities		29,353			30,028			30,501			31,126			30,696
Accrued interest payable		3,788			4,372			4,161			4,628			3,712
Other liabilities		6,545			8,663			8,868			1,248			8,717
Total liabilities		2,682,421			2,627,244			2,632,781			2,575,950			2,534,438
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		(6,164	)		(7,270	)		(7,404	)		(7,641	)		(7,707	)
Additional paid-in-capital		208,604			208,909			208,275			207,888			207,319
Retained earnings		135,332			125,477			119,250			113,432			107,754
Accumulated other comprehensive loss		(10,820	)		(11,586	)		(13,047	)		(13,515	)		(15,297	)
Unearned compensation ─ ESOP		(10,652	)		(10,944	)		(11,235	)		(11,527	)		(11,818	)
Total stockholders' equity		541,549			529,835			521,088			513,886			505,500
Total liabilities and stockholders' equity	$	3,223,970		$	3,157,079		$	3,153,869		$	3,089,836		$	3,039,938

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,
	2025		2025			2025		2025			2024
Interest and dividend income:
Interest on loans receivable	$	43,599	$	41,486		$	40,291	$	37,136		$	35,622
Interest on deposits due from banks		1,209		978			807		1,668			1,783
Interest and dividend on securities and FHLBNY stock		4,013		4,383			4,762		5,193			5,481
Total interest and dividend income		48,821		46,847			45,860		43,997			42,886
Interest expense:
Interest on certificates of deposit		6,706		6,553			7,382		7,754			8,104
Interest on other deposits		9,106		9,996			9,058		8,554			8,476
Interest on borrowings		5,075		5,050			4,994		5,486			5,576
Total interest expense		20,887		21,599			21,434		21,794			22,156
Net interest income		27,934		25,248			24,426		22,203			20,730
Provision (benefit) for credit losses		1,078		1,364			1,626		(285	)		897
Net interest income after provision (benefit) for credit losses		26,856		23,884			22,800		22,488			19,833
Non-interest income:
Service charges and fees		542		539			511		525			500
Brokerage commissions		23		8			—		4			44
Late and prepayment charges		1,173		385			530		697			318
Income on sale of mortgage loans		139		166			169		148			254
Income on sale of SBA loans		—		—			—		404			148
Grant income		428		429			428		—			—
Other		1,174		(35	)		422		603			833
Total non-interest income		3,479		1,492			2,060		2,381			2,097
Non-interest expense:
Compensation and benefits		8,113		7,868			7,627		7,780			7,668
Occupancy and equipment		4,033		3,934			3,907		3,913			3,863
Data processing expenses		1,223		1,296			1,188		1,152			1,143
Direct loan expenses		116		155			241		388			617
Insurance and surety bond premiums		324		318			297		315			293
Office supplies, telephone and postage		186		170			174		170			294
Professional fees		1,392		1,409			1,367		1,364			1,703
Microloans recoveries		—		—			—		—			(29	)
Marketing and promotional expenses		94		184			266		83			289
Federal deposit insurance and regulatory assessment		97		266			546		461			418
Other operating expenses		1,056		1,018			1,256		1,262			1,206
Total non-interest expense		16,634		16,618			16,869		16,888			17,465
Income before income taxes		13,701		8,758			7,991		7,981			4,465
Provision for income taxes		3,565		2,250			1,891		2,022			1,532
Net income	$	10,136	$	6,508		$	6,100	$	5,959		$	2,933
Dividends on preferred shares		281		281			282		281			282
Net income available to common stockholders	$	9,855	$	6,227		$	5,818	$	5,678		$	2,651
Earnings per common share:
Basic	$	0.43	$	0.27		$	0.26	$	0.25		$	0.12
Diluted	$	0.42	$	0.27		$	0.25	$	0.25		$	0.12
Weighted average common shares outstanding:
Basic		22,837,044		22,766,195			22,716,615		22,662,916			22,528,160
Diluted		23,263,708		23,135,448			22,947,769		22,876,740			22,807,644

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

	For the Years Ended December 31,
	2025		2024			Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	162,512	$	130,512		$	32,000			24.52	%
Interest on deposits due from banks		4,662		8,666			(4,004	)		(46.20	%)
Interest and dividend on securities and FHLBNY stock		18,351		23,459			(5,108	)		(21.77	%)
Total interest and dividend income		185,525		162,637			22,888			14.07	%
Interest expense:
Interest on certificates of deposit		28,395		27,768			627			2.26	%
Interest on other deposits		36,714		30,924			5,790			18.72	%
Interest on borrowings		20,605		27,465			(6,860	)		(24.98	%)
Total interest expense		85,714		86,157			(443	)		(0.51	%)
Net interest income		99,811		76,480			23,331			30.51	%
Provision for credit losses		3,783		551			3,232			586.57	%
Net interest income after provision for credit losses		96,028		75,929			20,099			26.47	%
Non-interest income:
Service charges and fees		2,117		1,973			144			7.30	%
Brokerage commissions		35		61			(26	)		(42.62	%)
Late and prepayment charges		2,785		1,180			1,605			136.02	%
Income on sale of mortgage loans		622		1,048			(426	)		(40.65	%)
Income on sale of SBA loans		404		148			256			172.97	%
Grant income		1,285		—			1,285			—	%
Other		2,164		2,803			(639	)		(22.80	%)
Total non-interest income		9,412		7,213			2,199			30.49	%
Non-interest expense:
Compensation and benefits		31,388		30,910			478			1.55	%
Occupancy and equipment		15,787		14,880			907			6.10	%
Data processing expenses		4,859		4,382			477			10.89	%
Direct loan expenses		900		2,555			(1,655	)		(64.77	%)
Insurance and surety bond premiums		1,254		1,101			153			13.90	%
Office supplies, telephone and postage		700		998			(298	)		(29.86	%)
Professional fees		5,532		6,146			(614	)		(9.99	%)
Microloans recoveries		—		(201	)		201			(100.00	%)
Marketing and promotional expenses		627		714			(87	)		(12.18	%)
Federal deposit insurance and regulatory assessments		1,370		1,627			(257	)		(15.80	%)
Other operating expenses		4,592		4,345			247			5.68	%
Total non-interest expense		67,009		67,457			(448	)		(0.66	%)
Income before income taxes		38,431		15,685			22,746			145.02	%
Provision for income taxes		9,728		4,713			5,015			106.41	%
Net income	$	28,703	$	10,972		$	17,731			161.60	%
Dividends on preferred shares		1,125		638			487			76.33	%
Net income available to common stockholders	$	27,578	$	10,334		$	17,244			166.87	%
Earnings per common share:
Basic	$	1.21	$	0.46		$	0.75			163.00	%
Diluted	$	1.20	$	0.46		$	0.74			160.87	%
Weighted average common shares outstanding:
Basic		22,746,226		22,434,654			311,572			1.39	%
Diluted		23,060,669		22,551,715			508,954			2.26	%

Ponce Financial Group, Inc. and Subsidiaries

Loans Receivable excluding Mortgage Loans Held for Sale

	As of
	December 31,						September 30,						June 30,						March 31,						December 31,
	2025						2025						2025						2025						2024
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned	$	307,267			11.70	%	$	311,728			12.39	%	$	317,488			12.78	%	$	325,866			13.62	%	$	330,053			14.30	%
Owner-Occupied		127,107			4.84	%		132,874			5.28	%		134,862			5.43	%		137,676			5.75	%		142,363			6.17	%
Multifamily residential		756,542			28.83	%		688,574			27.39	%		693,670			27.96	%		675,541			28.24	%		670,159			29.04	%
Nonresidential properties		526,210			20.05	%		436,175			17.35	%		404,512			16.30	%		390,681			16.33	%		389,898			16.89	%
Construction and land		854,096			32.54	%		886,369			35.25	%		883,462			35.59	%		815,425			34.08	%		733,660			31.79	%
Total mortgage loans		2,571,222			97.96	%		2,455,720			97.66	%		2,433,994			98.06	%		2,345,189			98.02	%		2,266,133			98.19	%
Non-mortgage loans:
Business loans		53,063			2.02	%		58,012			2.31	%		47,372			1.91	%		46,329			1.94	%		40,849			1.77	%
Consumer loans		625			0.02	%		727			0.03	%		840			0.03	%		997			0.04	%		1,038			0.04	%
Total non-mortgage loans		53,688			2.04	%		58,739			2.34	%		48,212			1.94	%		47,326			1.98	%		41,887			1.81	%
Total loans, gross		2,624,910			100.00	%		2,514,459			100.00	%		2,482,206			100.00	%		2,392,515			100.00	%		2,308,020			100.00	%
Net deferred loan origination costs		(203	)					351						606						1,390						1,081
Allowance for credit losses on loans		(25,449	)					(24,764	)					(24,100	)					(22,974	)					(22,502	)
Loans, net	$	2,599,258					$	2,490,046					$	2,458,712					$	2,370,931					$	2,286,599

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,
	2025			2025			2025			2025			2024
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	24,764		$	24,100		$	22,974		$	22,502		$	23,966
Provision for credit losses on loans		1,526			864			1,348			731			1,090
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned		(32	)		—			—			(38	)		—
Non-mortgage loans:
Business		(801	)		(200	)		(222	)		(222	)		(232	)
Consumer		(44	)		—			—			(3	)		(2,465	)
Total charge-offs		(877	)		(200	)		(222	)		(263	)		(2,697	)
Recoveries:
Mortgage loans:
1-4 family residences
Investor owned		1			—			—			—			—
Non-mortgage loans:
Business		35			—			—			4			—
Consumer		—			—			—			—			143
Total recoveries		36			—			—			4			143
Net (charge-offs) recoveries		(841	)		(200	)		(222	)		(259	)		(2,554	)
Allowance for credit losses on loans at end of the period	$	25,449		$	24,764		$	24,100		$	22,974		$	22,502

Ponce Financial Group, Inc. and Subsidiaries

Deposits

	As of
	December 31,					September 30,					June 30,					March 31,					December 31,
	2025					2025					2025					2025					2024
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand	$	208,250		10.18	%	$	192,595		9.34	%	$	197,671		9.63	%	$	212,139		10.51	%	$	169,178		8.93	%
Interest-bearing deposits:
NOW/IOLA accounts		84,012		4.10	%		75,051		3.64	%		63,626		3.10	%		74,430		3.69	%		62,616		3.30	%
Money market accounts		779,532		38.09	%		821,844		39.84	%		790,939		38.52	%		692,753		34.33	%		636,219		33.57	%
Reciprocal deposits		152,630		7.46	%		154,548		7.49	%		136,693		6.66	%		141,838		7.03	%		130,677		6.90	%
Savings accounts⁽¹⁾		117,708		5.75	%		117,401		5.69	%		113,701		5.53	%		119,023		5.90	%		116,219		6.12	%
Total NOW, money market, reciprocal and savings accounts		1,133,882		55.40	%		1,168,844		56.66	%		1,104,959		53.81	%		1,028,044		50.95	%		945,731		49.89	%
Certificates of deposit of $250K or more		202,500		9.89	%		209,819		10.17	%		220,671		10.75	%		219,721		10.89	%		204,293		10.78	%
Brokered certificates of deposit⁽²⁾		67,942		3.32	%		67,952		3.29	%		69,531		3.39	%		84,531		4.19	%		94,531		4.99	%
Listing service deposits⁽²⁾		4,150		0.20	%		4,150		0.20	%		6,140		0.30	%		6,140		0.30	%		7,376		0.39	%
All other certificates of deposit less than $250K		429,911		21.01	%		419,721		20.34	%		454,179		22.12	%		467,273		23.16	%		474,104		25.02	%
Total certificates of deposit		704,503		34.42	%		701,642		34.00	%		750,521		36.56	%		777,665		38.54	%		780,304		41.18	%
Total interest-bearing deposits		1,838,385		89.82	%		1,870,486		90.66	%		1,855,480		90.37	%		1,805,709		89.49	%		1,726,035		91.07	%
Total deposits	$	2,046,635		100.00	%	$	2,063,081		100.00	%	$	2,053,151		100.00	%	$	2,017,848		100.00	%	$	1,895,213		100.00	%

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

(2) There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.

Ponce Financial Group, Inc. and Subsidiaries

Nonperforming Assets

	As of Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2025			2025			2025			2025			2024
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	2,870		$	2,527		$	1,859		$	1,052		$	436
Owner occupied		1,557			649			—			1,423			1,423
Multifamily residential		13,112			14,202			11,703			9,788			10,271
Nonresidential properties		—			—			405			—			—
Construction and land		8,247			8,907			8,907			14,159			14,158
Non-mortgage loans:
Business		667			880			276			170			343
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty)⁽¹⁾	$	26,453		$	27,165		$	23,150		$	26,592		$	26,631

Non-accruing modifications to borrowers experiencing financial difficulty⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	—		$	284		$	284		$	279		$	279
Owner occupied		410			414			424			431			435
Total non-accruing modifications to borrowers experiencing financial difficulty⁽¹⁾		410			698			708			710			714
Total non-performing assets⁽²⁾	$	26,863		$	27,863		$	23,858		$	27,302		$	27,345

Accruing modifications to borrowers experiencing financial difficulty⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	1,753		$	1,766		$	1,779		$	1,792		$	1,807
Owner occupied		821			1,959			2,012			2,038			2,062
Multifamily residential		—			—			—			—			—
Nonresidential properties		621			629			655			644			652
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		190			196			203			209			215
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty⁽¹⁾	$	3,385		$	4,550		$	4,649		$	4,683		$	4,736
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty⁽¹⁾	$	30,248		$	32,413		$	28,507		$	31,985		$	32,081
Total non-performing assets to total assets		0.83	%		0.88	%		0.76	%		0.87	%		0.90	%

(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,
	2025						2024
	Average						Average
	Outstanding				Average		Outstanding				Average
	Balance		Interest		Yield/Rate⁽¹⁾		Balance		Interest		Yield/Rate⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans⁽²⁾	$	2,572,286	$	43,599	6.72	%	$	2,261,426	$	35,622	6.27	%
Securities⁽³⁾		373,333		3,370	3.58	%		507,510		4,860	3.81	%
Other⁽⁴⁾		157,430		1,852	4.67	%		179,701		2,404	5.32	%
Total interest-earning assets		3,103,049		48,821	6.24	%		2,948,637		42,886	5.79	%
Non-interest-earning assets		94,050						108,558
Total assets	$	3,197,099					$	3,057,195
Interest-bearing liabilities:
NOW/IOLA	$	73,304	$	131	0.71	%	$	68,776	$	119	0.69	%
Money market		953,849		8,947	3.72	%		761,130		8,329	4.35	%
Savings⁽⁵⁾		121,352		28	0.09	%		124,364		28	0.09	%
Certificates of deposit		713,390		6,706	3.73	%		783,335		8,104	4.12	%
Total deposits		1,861,895		15,812	3.37	%		1,737,605		16,580	3.80	%
Borrowings		526,263		5,075	3.83	%		573,316		5,576	3.87	%
Total interest-bearing liabilities		2,388,158		20,887	3.47	%		2,310,921		22,156	3.81	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		228,978		—				191,355		—
Other non-interest-bearing liabilities		42,062		—				47,875		—
Total non-interest-bearing liabilities		271,040		—				239,230		—
Total liabilities		2,659,198		20,887				2,550,151		22,156
Total equity		537,901						507,044
Total liabilities and total equity	$	3,197,099			3.47	%	$	3,057,195			3.81	%
Net interest income			$	27,934					$	20,730
Net interest rate spread⁽⁶⁾					2.77	%					1.98	%
Net interest-earning assets⁽⁷⁾	$	714,891					$	637,716
Net interest margin⁽⁸⁾					3.57	%					2.80	%
Average interest-earning assets to interest-bearing liabilities					129.93	%					127.60	%

(1) Annualized where appropriate.

(2) Loans include loans and mortgage loans held for sale, at fair value.

(3) Securities include available-for-sale securities and held-to-maturity securities.

(4) Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.

(5) For the three months ended December 31, 2024, advance payments by borrowers for taxes and insurance in the amounts of $15.1 million, were reclassified to savings.

(6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(7) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(8) Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

	For the Years Ended December 31,
	2025							2024
	Average							Average
	Outstanding				Average			Outstanding				Average
	Balance		Interest		Yield/Rate			Balance		Interest		Yield/Rate⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans⁽¹⁾	$	2,472,805	$	162,512		6.57	%	$	2,094,820	$	130,512		6.23	%
Securities⁽²⁾		427,033		16,050		3.76	%		548,641		21,289		3.88	%
Other⁽³⁾		141,438		6,963		4.92	%		192,403		10,836		5.63	%
Total interest-earning assets		3,041,276		185,525		6.10	%		2,835,864		162,637		5.74	%
Non-interest-earning assets		100,790							107,017
Total assets	$	3,142,066						$	2,942,881
Interest-bearing liabilities:
NOW/IOLA	$	73,102	$	483		0.66	%	$	74,796	$	662		0.89	%
Money market		901,692		36,119		4.01	%		654,521		30,148		4.61	%
Savings⁽⁴⁾		119,335		112		0.09	%		125,062		114		0.09	%
Certificates of deposit		744,497		28,395		3.81	%		676,306		27,768		4.11	%
Total deposits		1,838,626		65,109		3.54	%		1,530,685		58,692		3.83	%
Borrowings		534,183		20,605		3.86	%		670,982		27,465		4.09	%
Total interest-bearing liabilities		2,372,809		85,714		3.61	%		2,201,667		86,157		3.91	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		207,288		—					191,155		—
Other non-interest-bearing liabilities		38,431		—					50,259		—
Total non-interest-bearing liabilities		245,719		—					241,414		—
Total liabilities		2,618,528		85,714					2,443,081		86,157
Total equity		523,538							499,800
Total liabilities and total equity	$	3,142,066				3.61	%	$	2,942,881				3.91	%
Net interest income			$	99,811						$	76,480
Net interest rate spread⁽⁵⁾						2.49	%						1.83	%
Net interest-earning assets⁽⁶⁾	$	668,467						$	634,197
Net interest margin⁽⁷⁾						3.28	%						2.70	%
Average interest-earning assets to interest-bearing liabilities						128.17	%						128.81	%

(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) For the year ended December 31, 2024, advance payments by borrowers for taxes and insurance in the amounts of $14.0 million, were reclassified to savings.

(5) 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.

(6) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(7) 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,
	2025		2025		2025		2025		2024
Other Data
Common shares issued		24,886,711		24,886,711		24,886,711		24,886,711		24,886,711
Less treasury shares		750,785		885,586		901,911		920,520		925,497
Common shares outstanding at end of period		24,135,926		24,001,125		23,984,800		23,966,191		23,961,214

Book value per common share	$	13.12	$	12.70	$	12.34	$	12.05	$	11.71
Tangible book value per common share	$	13.12	$	12.70	$	12.34	$	12.05	$	11.71

Contact:

Sergio Vaccaro

sergio.vaccaro@poncebank.net

718-931-9000

Ponce Financial Group, Inc. Reports Fourth Quarter 2025 Results