NEW YORK, July 30, 2024 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the "Company") (NASDAQ:PDLB), the holding company for Ponce Bank (the "Bank"), today announced results for the second quarter of 2024.

Second Quarter 2024 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $3.1 million, or $0.14 per diluted share for the three months ended June 30, 2024, as compared to net income available to common stockholders of $2.4 million, or $0.11 per diluted share for the three months ended March 31, 2024 and net loss to common stockholders of ($0.1) million, or $0.00 per diluted share for the three months ended June 30, 2023. Net income for the three months ended June 30, 2024, which excludes $0.1 million in dividends on preferred shares, was $3.2 million. The Company began paying dividends on its preferred stock during the quarter ended June 30, 2024, as required by the terms thereof.

Included in the $3.1 million of net income available to common stockholders for the second quarter of 2024 results is $38.8 million in interest and dividend income, $2.3 million in non-interest income and $0.4 million in benefit for credit losses, offset by $20.9 million in interest expense, $16.1 million in non-interest expense and $0.1 million in payments and accrued dividends on preferred shares.

Net interest income of $17.9 million for the second quarter of 2024 decreased $0.9 million, or 4.88%, from the prior quarter and increased $1.6 million, or 9.96%, from the same quarter last year. As discussed in our prior earnings release, the first quarter of 2024 included a $1.0 million recovery of interest from a previously non-performing loan, which increased net interest income in that period as compared to the current period.

Net interest margin was 2.62% for the second quarter of 2024, versus 2.71% for the prior quarter and versus 2.65% for the same quarter last year. A significant driver of the reduction in net interest margin is the aforementioned recovery.

Six Months 2024 Highlights (Compared to 2023):

Net income available to common stockholders was $5.5 million, or $0.25 per diluted share for the six months ended June 30, 2024, as compared to net income available to common stockholders of $0.2 million, or $0.01 per diluted share for the six months ended June 30, 2023. Net income for the six months ended June 30, 2024, which excludes $0.1 million in dividends on preferred shares, was $5.6 million.

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

Non-interest income for the six months ended June 30, 2024 was $4.0 million, an increase of $0.7 million, or 19.75%, from $3.3 million for the six months ended June 30, 2023.

Non-interest expense for the six months ended June 30, 2024 was $33.1 million, a decrease of $0.4 million, or 1.06%, compared to $33.5 million for the six months ended June 30, 2023.

Cash and equivalents were $103.2 million as of June 30, 2024, a decrease of $36.0 million, or 25.88%, from December 31, 2023.

Securities totaled $555.2 million as of June 30, 2024, a decrease of $26.4 million, or 4.54%, from December 31, 2023 primarily due to regular principal payments.

Net loans receivable were $2.02 billion as of June 30, 2024, an increase of $126.3 million, or 6.66%, from December 31, 2023.

Deposits were $1.61 billion as of June 30, 2024, an increase of $98.5 million, or 6.53%, from December 31, 2023.

President and Chief Executive Officer's Comments

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

Executive Chairman's Comment

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

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

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

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

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

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

Summary of Results of Operations

Net income for the three months ended June 30, 2024 was $3.2 million compared to net income of $2.4 million for the three months ended March 31, 2024 and net loss of $0.1 million for the three months ended June 30, 2023.

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

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

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

Net Interest Income and Net Margin

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

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

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

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

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

Non-interest Income

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

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

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

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

Non-interest Expense

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

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

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

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

Balance Sheet Summary

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

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

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

About Ponce Financial Group, Inc.

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

Forward Looking Statements

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

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except for share data)


	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
ASSETS
Cash and due from banks:
Cash	$	23,128		$	29,972		$	28,930		$	26,046		$	31,162
Interest-bearing deposits		80,038			104,752			110,260			90,966			212,627
Total cash and cash equivalents		103,166			134,724			139,190			117,012			243,789
Available-for-sale securities, at fair value		113,125			116,044			119,902			116,753			123,720
Held-to-maturity securities, at amortized cost		442,113			452,955			461,748			471,065			481,952
Placement with banks		249			249			249			996			996
Mortgage loans held for sale, at fair value		37,764			7,860			9,980			14,103			10,070
Loans receivable, net		2,022,173			1,981,428			1,895,886			1,787,607			1,695,047
Accrued interest receivable		17,441			18,063			18,010			16,624			16,054
Premises and equipment, net		16,976			17,396			16,053			16,453			16,856
Right of use assets		30,349			31,021			31,272			32,110			32,435
Federal Home Loan Bank of New York stock (FHLBNY), at cost		23,972			23,892			19,377			18,870			19,195
Deferred tax assets		13,172			13,919			14,332			15,984			15,924
Other assets		21,507			21,151			24,723			16,286			15,919
Total assets	$	2,842,007		$	2,818,702		$	2,750,722		$	2,623,863		$	2,671,957
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	1,606,097		$	1,585,784		$	1,507,620		$	1,401,132		$	1,442,013
Operating lease liabilities		31,861			32,486			32,684			33,459			33,716
Accrued interest payable		6,820			4,218			11,965			8,385			4,704
Advance payments by borrowers for taxes and insurance		10,838			13,245			10,778			13,743			12,402
Borrowings		680,421			680,421			684,421			675,100			682,100
Other liabilities		8,313			8,866			11,859			6,986			6,540
Total liabilities		2,344,350			2,325,020			2,259,327			2,138,805			2,181,475
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized		225,000			225,000			225,000			225,000			225,000
Common stock, $0.01 par value; 200,000,000 shares authorized		249			249			249			249			249
Treasury stock, at cost		(9,519	)		(9,702	)		(9,747	)		(10,975	)		(5,202	)
Additional paid-in-capital		207,934			207,584			207,106			207,626			207,287
Retained earnings		102,951			99,834			97,420			96,902			94,312
Accumulated other comprehensive loss		(16,557	)		(16,590	)		(15,649	)		(20,468	)		(17,597	)
Unearned compensation ─ ESOP		(12,401	)		(12,693	)		(12,984	)		(13,276	)		(13,567	)
Total stockholders' equity		497,657			493,682			491,395			485,058			490,482
Total liabilities and stockholders' equity	$	2,842,007		$	2,818,702		$	2,750,722		$	2,623,863		$	2,671,957

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

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

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

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

Ponce Financial Group, Inc. and Subsidiaries

Key Metrics

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

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

Ponce Financial Group, Inc. and Subsidiaries

Securities Portfolio

	June 30, 2024										December 31, 2023
				Gross		Gross								Gross		Gross
	Amortized			Unrealized		Unrealized					Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value		Cost			Gains		Losses			Fair Value
	(in thousands)										(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,992		$	—	$	(196	)	$	2,796	$	2,990		$	—	$	(206	)	$	2,784
Corporate Bonds		25,773			—		(1,859	)		23,914		25,790			—		(2,122	)		23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations⁽¹⁾		36,886			—		(6,280	)		30,606		39,375			—		(6,227	)		33,148
FHLMC Certificates		9,611			—		(1,523	)		8,088		10,163			—		(1,482	)		8,681
FNMA Certificates		58,797			—		(11,174	)		47,623		61,359			—		(9,842	)		51,517
GNMA Certificates		99			—		(1	)		98		104			—		—			104
Total available-for-sale securities	$	134,158		$	—	$	(21,033	)	$	113,125	$	139,781		$	—	$	(19,879	)	$	119,902

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(253	)	$	24,747	$	25,000		$	—	$	(181	)	$	24,819
Corporate Bonds		82,500			—		(2,230	)		80,270		82,500			—		(2,691	)		79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations⁽¹⁾		200,684			—		(8,533	)		192,151		212,093			104		(5,170	)		207,027
FHLMC Certificates		3,664			—		(274	)		3,390		3,897			—		(244	)		3,653
FNMA Certificates		112,925			—		(5,565	)		107,360		118,944			—		(4,088	)		114,856
SBA Certificates		17,558			169		—			17,727		19,712			166		—			19,878
Allowance for Credit Losses		(218	)		—		—			—		(398	)		—		—			—
Total held-to-maturity securities	$	442,113		$	169	$	(16,855	)	$	425,645	$	461,748		$	270	$	(12,374	)	$	450,042

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

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

	For the Six			For the
	Months Ended			Year Ended
	June 30, 2024			December 31, 2023
Allowance for credit losses on securities at beginning of the period	$	398		$	—
CECL adoption		—			662
Benefit for credit losses		(180	)		(264	)
Allowance for credit losses on securities at end of the period	$	218		$	398

Ponce Financial Group, Inc. and Subsidiaries

Loan Portfolio

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

As of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, consumer loans include $4.3 million, $5.7 million, $8.0 million, $9.3 million and $11.2 million, respectively, of loans originated by the Bank pursuant to its arrangement with Grain.

Ponce Financial Group, Inc. and Subsidiaries

Grain Loan Exposure

Grain Technologies, Inc. ("Grain") Total Exposure as of June 30, 2024
(in thousands)
Receivable from Grain
Microloans originated - put back to Grain (inception-to-June 30, 2024)	$	23,986
Write-downs, net of recoveries (inception-to-date as of June 30, 2024)		(15,341	)
Cash receipts from Grain (inception-to-June 30, 2024)		(6,819	)
Grant/reserve		(1,826	)
Net receivable as of June 30, 2024	$	—
Microloan receivables from Grain Borrowers
Grain originated loans receivable as of June 30, 2024	$	4,277
Allowance for credit losses on loans as of June 30, 2024⁽¹⁾		(3,623	)
Microloans, net of allowance for credit losses on loans as of June 30, 2024	$	654
Investments
Investment in Grain	$	1,000
Investment in Grain write-off in Q3 2022		(1,000	)
Investment in Grain as of June 30, 2024		—
Total exposure related to Grain as of June 30, 2024⁽²⁾	$	654

Excludes $1.6 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.
Total remaining exposure to Grain borrowers. These loans are now serviced by the Bank.

On November 1, 2023, Ponce Financial Group, Inc. and Grain signed a Perpetual Software License Agreement in order for the Bank to assume the servicing of the remaining Grain loans. In order to facilitate the transfer of the servicing responsibilities to the Bank, Grain granted the Bank a perpetual right and license to use the Grain software, including the source code to service the remaining loans.

Ponce Financial Group, Inc. and Subsidiaries

Allowance for Credit Losses on Loans

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

Ponce Financial Group, Inc. and Subsidiaries

Deposits

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

As of December 31, 2023, September 30, 2023 and June 30, 2023, $58.2 million, $51.5 million and $41.4 million, respectively, were reclassified from demand to NOW/IOLA accounts.
As of June 30, 2023, $150.6 million of Raisin deposits were reclassified from money market accounts to certificates of deposits. $36.4 million were reclassified to Certificates of deposits of $250K or more and $114.2 million were reclassified to certificates of deposit less than $250K.
As of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, there were $1.5 million, $1.5 million, $0.3 million, $0.3 million and $3.3 million, respectively, in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.

Ponce Financial Group, Inc. and Subsidiaries

Borrowings

	June 30,							December 31,
	2024							2023
	Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate			Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate
	(Dollars in thousands)
Term advances ending:
2024	$	109,321	$	109,321		4.69	%	$	363,321	$	363,321		4.55	%
2025		250,000		250,000		4.69			50,000		50,000		4.41
2026		50,000		50,000		4.83			—		—		—
2027		212,000		212,000		3.44			212,000		212,000		3.44
2028		9,100		9,100		3.84			9,100		9,100		3.84
Thereafter		50,000		50,000		3.35			50,000		50,000		3.35
	$	680,421	$	680,421		4.20	%	$	684,421	$	684,421		4.10	%

Ponce Financial Group, Inc. and Subsidiaries

Nonperforming Assets

	As of Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	436		$	399		$	793		$	396		$	296
Owner occupied		1,423			1,426			1,682			1,685			2,363
Multifamily residential		5,754			4,098			2,979			1,444			1,435
Nonresidential properties		828			441			—			—			—
Construction and land		8,907			10,277			10,759			11,721			11,721
Non-mortgage loans:
Business		396			146			165			209			—
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty)⁽¹⁾	$	17,744		$	16,787		$	16,378		$	15,455		$	15,815

Non-accruing modifications to borrowers experiencing financial difficulty⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	277		$	270		$	270		$	270		$	209
Owner occupied		448			447			447			449			840
Multifamily residential		—			—			—			—			—
Nonresidential properties		—			—			—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing modifications to borrowers experiencing financial difficulty⁽¹⁾		725			717			717			719			1,049
Total non-accrual loans⁽²⁾	$	18,469		$	17,504		$	17,095		$	16,174		$	16,864

Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	1,830		$	1,850		$	2,112		$	2,131		$	2,161
Owner occupied		2,171			2,288			2,313			2,335			2,353
Multifamily residential		—			—			—			—			—
Nonresidential properties		707			748			757			765			783
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty⁽¹⁾	$	4,708		$	4,886		$	5,182		$	5,231		$	5,297
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty⁽¹⁾	$	23,177		$	22,390		$	22,277		$	21,405		$	22,161
Total non-performing loans to total gross loans		0.89	%		0.87	%		0.89	%		0.89	%		0.98	%
Total non-performing assets to total assets		0.65	%		0.62	%		0.62	%		0.62	%		0.63	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets⁽¹⁾		0.82	%		0.79	%		0.81	%		0.82	%		0.83	%

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

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

	For the Three Months Ended June 30,
	2024						2023
	Average						Average
	Outstanding				Average		Outstanding				Average
	Balance		Interest		Yield/Rate⁽¹⁾		Balance		Interest		Yield/Rate⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans⁽²⁾	$	2,040,149	$	31,281	6.17	%	$	1,683,117	$	23,015	5.48	%
Securities⁽³⁾		562,560		5,486	3.92	%		614,598		5,731	3.74	%
Other⁽⁴⁾⁽⁵⁾		141,368		2,025	5.76	%		164,509		2,309	5.63	%
Total interest-earning assets		2,744,077		38,792	5.69	%		2,462,224		31,055	5.06	%
Non-interest-earning assets⁽⁵⁾		105,774						121,169
Total assets	$	2,849,851					$	2,583,393
Interest-bearing liabilities:
NOW/IOLA^{(6) (7)}	$	72,932	$	151	0.83	%	$	66,314	$	305	1.84	%
Money market^{(7) (8)}		599,209		7,209	4.84	%		408,329		4,077	4.00	%
Savings		111,859		27	0.10	%		122,802		29	0.09	%
Certificates of deposit⁽⁸⁾		635,850		6,358	4.02	%		524,445		3,881	2.97	%
Total deposits		1,419,850		13,745	3.89	%		1,121,890		8,292	2.96	%
Advance payments by borrowers		14,948		2	0.05	%		16,967		2	0.05	%
Borrowings		680,421		7,141	4.22	%		649,652		6,479	4.00	%
Total interest-bearing liabilities		2,115,219		20,888	3.97	%		1,788,509		14,773	3.31	%
Non-interest-bearing liabilities:
Non-interest-bearing demand⁽⁶⁾		188,920		—				255,673		—
Other non-interest-bearing liabilities		49,437		—				42,906		—
Total non-interest-bearing liabilities		238,357		—				298,579		—
Total liabilities		2,353,576		20,888				2,087,088		14,773
Total equity		496,275						496,305
Total liabilities and total equity	$	2,849,851			3.97	%	$	2,583,393			3.31	%
Net interest income			$	17,904					$	16,282
Net interest rate spread⁽⁹⁾					1.72	%					1.75	%
Net interest-earning assets⁽¹⁰⁾	$	628,858					$	673,715
Net interest margin⁽¹¹⁾					2.62	%					2.65	%
Average interest-earning assets to interest-bearing liabilities					129.73	%					137.67	%

Annualized where appropriate.
Loans include loans and mortgage loans held for sale, at fair value.
Securities include available-for-sale securities and held-to-maturity securities.
Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
FRBNY demand deposits for prior period have been reclassified for consistency.
Includes reclassification of $44.0 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended June 30, 2023.
Includes $0.3 million of interest expense reclassified from money market to NOW/IOLA for the three months ended June 30, 2023.
Includes reclassification of $130.7 million average outstanding balances and $1.5 million of interest expenses from money market to certificates of deposit for the three months ended June 30, 2023.
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

	For the Six Months Ended June 30,
	2024							2023
	Average							Average
	Outstanding				Average			Outstanding				Average
	Balance		Interest		Yield/Rate⁽¹⁾			Balance		Interest		Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans⁽²⁾	$	2,009,706	$	61,945		6.20	%	$	1,627,939	$	42,715		5.29	%
Securities⁽³⁾		569,397		11,105		3.92	%		622,822		11,806		3.82	%
Other⁽⁴⁾⁽⁵⁾		189,899		5,408		5.73	%		106,812		2,890		5.46	%
Total interest-earning assets		2,769,002		78,458		5.70	%		2,357,573		57,411		4.91	%
Non-interest-earning assets⁽⁵⁾		106,172							122,083
Total assets	$	2,875,174						$	2,479,656
Interest-bearing liabilities:
NOW/IOLA^{(6) (7)}	$	77,891	$	369		0.95	%	$	69,024	$	993		2.90	%
Money market^{(7) (8)}		571,886		13,501		4.75	%		361,557		6,168		3.44	%
Savings		112,680		55		0.10	%		125,823		59		0.09	%
Certificates of deposit⁽⁸⁾		632,689		12,738		4.05	%		520,420		7,106		2.75	%
Total deposits		1,395,146		26,663		3.84	%		1,076,824		14,326		2.68	%
Advance payments by borrowers		13,917		4		0.06	%		14,954		5		0.07	%
Borrowings		725,745		15,064		4.17	%		587,026		11,553		3.97	%
Total interest-bearing liabilities		2,134,808		41,731		3.93	%		1,678,804		25,884		3.11	%
Non-interest-bearing liabilities:
Non-interest-bearing demand⁽⁶⁾		193,891		—					261,988		—
Other non-interest-bearing liabilities		51,749		—					42,451		—
Total non-interest-bearing liabilities		245,640		—					304,439		—
Total liabilities		2,380,448		41,731					1,983,243		25,884
Total equity		494,726							496,413
Total liabilities and total equity	$	2,875,174				3.93	%	$	2,479,656				3.11	%
Net interest income			$	36,727						$	31,527
Net interest rate spread⁽⁹⁾						1.77	%						1.80	%
Net interest-earning assets⁽¹⁰⁾	$	634,194						$	678,769
Net interest margin⁽¹¹⁾						2.67	%						2.71	%
Average interest-earning assets to
interest-bearing liabilities						129.71	%						140.43	%

Annualized where appropriate.
Loans include loans and mortgage loans held for sale, at fair value.
Securities include available-for-sale securities and held-to-maturity securities.
Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
FRBNY demand deposits for prior period have been reclassified for consistency.
Includes reclassification of $46.2 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the six months ended June 30, 2023.
Includes $1.0 million of interest expense reclassified from money market to NOW/IOLA for the six months ended June 30, 2023.
Includes reclassification of $132.8 million average outstanding balances and $2.8 million of interest expenses from money market to certificates of deposit for the six months ended June 30, 2023.
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries

Other Data

	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
	2024		2024		2023		2023		2023
Other Data
Common shares issued		24,886,711		24,886,711		24,886,711		24,886,711		24,886,711
Less treasury shares		1,074,979		1,096,214		1,101,191		1,233,111		617,924
Common shares outstanding at end of period		23,811,732		23,790,497		23,785,520		23,653,600		24,268,787

Book value per common share	$	11.45	$	11.29	$	11.20	$	10.99	$	10.94
Tangible book value per common share	$	11.45	$	11.29	$	11.20	$	10.99	$	10.94

Contact:

Sergio Vaccaro

Sergio.vaccaro@poncebank.net

718-931-9000

Ponce Financial Group, Inc. Reports Second Quarter 2024 Results