NEW YORK, Oct. 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 third quarter of 2024.

Third Quarter 2024 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024, as compared to net income available to common stockholders of $3.1 million, or $0.14 per diluted share for the three months ended June 30, 2024 and net income available to common stockholders of $2.6 million, or $0.12 per diluted share for the three months ended September 30, 2023. Total net income for the three months ended September 30, 2024 was $2.4 million. The Company paid dividends of $0.3 million on its preferred stock during the quarter ended September 30, 2024.
Included in the $2.2 million of net income available to common stockholders for the third quarter of 2024 results is $41.3 million in interest and dividend income and $1.2 million in non-interest income, offset by $22.3 million in interest expense, $16.3 million in non-interest expense, $0.8 million in provision for credit losses, $0.6 million in provision for income taxes and $0.3 million in dividends on preferred shares.
Net interest income of $19.0 million for the third quarter of 2024 increased $1.1 million, or 6.25%, from the prior quarter and increased $2.5 million, or 15.00%, from the same quarter last year.
Net interest margin was 2.65% for the third quarter of 2024, versus 2.62% for the prior quarter and versus 2.58% for the same quarter last year.

Nine Months 2024 Highlights (Compared to 2023):

Net income available to common stockholders was $7.7 million, or $0.34 per diluted share for the nine months ended September 30, 2024, as compared to net income available to common stockholders of $2.8 million, or $0.12 per diluted share for the nine months ended September 30, 2023. Total net income for the nine months ended September 30, 2024, prior to the payment of $0.4 million in dividends on preferred shares, was $8.0 million.
Net interest income for the nine months ended September 30, 2024 was $55.8 million, an increase of $7.7 million, or 15.98%, compared to $48.1 million for the nine months ended September 30, 2023.
Non-interest income for the nine months ended September 30, 2024 was $5.1 million, a decrease of $3.8 million, or 42.76%, from $8.9 million for the nine months ended September 30, 2023. The decrease was primarily driven by a $3.7 million in grants that were received in the prior year.
Non-interest expense for the nine months ended September 30, 2024 was $49.4 million, a decrease of $1.4 million, or 2.67%, compared to $50.8 million for the nine months ended September 30, 2023.
Cash and equivalents were $155.8 million as of September 30, 2024, an increase of $16.6 million, or 11.94%, from $139.2 million as of December 31, 2023.
Securities totaled $514.7 million as of September 30, 2024, a decrease of $66.9 million, or 11.50%, from $581.7 million as of December 31, 2023 primarily due to regular principal payments, maturity of one available-for-sale security in the amount of $4.0 million and call of one held-to-maturity security in the amount of $25.0 million.
Net loans receivable were $2.18 billion as of September 30, 2024, an increase of $284.4 million, or 15.00%, from $1.90 billion as of December 31, 2023.
Deposits were $1.87 billion as of September 30, 2024, an increase of $362.7 million, or 24.06%, from $1.51 billion as of December 31, 2023.

President and Chief Executive Officer's Comments

Carlos P. Naudon, Ponce Financial Group's President and CEO, stated, "We continue to make progress quarter over quarter both in terms of our economic performance as well as serving our communities. Book value per share continues to grow and is now $11.74 (up $0.75 vs last year) and total equity per common share stands at $21.18. Our levels of liquidity and capital remain strong. Our net interest income grew quarter over quarter, and we're well positioned for a decline in interest rates. We reduced our borrowings during the quarter, paying off the entirety of our Bank Term Funding Program Loan, while lowering the overall cost and extending our maturities. 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, "During the quarter, the US Treasury Department issued proposed guidelines under which it may sell their ECIP investment back to the issuers or related non-profit affiliates. We believe the adoption of the proposed regulations would be greatly beneficial to Ponce Financial Group, although there can be no assurance that the proposed regulations will be adopted, or that that will be adopted in their current form. Most of our loan growth of $157.6 million this quarter is explained by our desire to ensure qualification under the proposed regulations, if adopted. Deposits also grew significantly during the quarter including $35.0 million from the Banking Development District program of New York."

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

	At or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Performance Ratios (Annualized):	2024			2024			2024			2023			2023
Return on average assets (1)		0.33	%		0.45	%		0.33	%		0.08	%		0.39	%
Return on average equity (1)		1.93	%		2.59	%		1.97	%		0.42	%		2.11	%
Net interest rate spread (1) (2)		1.77	%		1.72	%		1.82	%		1.74	%		1.68	%
Net interest margin (1) (3)		2.65	%		2.62	%		2.71	%		2.66	%		2.58	%
Non-interest expense to average assets (1)		2.19	%		2.28	%		2.35	%		2.66	%		2.58	%
Efficiency ratio (4)		80.87	%		80.09	%		82.56	%		96.83	%		78.11	%
Average interest-earning assets to average interest- bearing liabilities		128.35	%		129.73	%		129.69	%		133.50	%		134.49	%
Average equity to average assets		16.97	%		17.41	%		17.00	%		18.25	%		18.32	%

	At or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Capital Ratios (Annualized):	2024			2024			2024			2023			2023
Total capital to risk-weighted assets (Bank only)		21.61	%		22.47	%		22.79	%		23.30	%		25.10	%
Tier 1 capital to risk-weighted assets (Bank only)		20.45	%		21.24	%		21.54	%		22.05	%		23.85	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.45	%		21.24	%		21.54	%		22.05	%		23.85	%
Tier 1 capital to average assets (Bank only)		16.19	%		16.70	%		16.26	%		17.49	%		17.51	%

	At or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Asset Quality Ratios (Annualized):	2024			2024			2024			2023			2023
Allowance for loan losses as a percentage of total loans		1.09	%		1.18	%		1.23	%		1.36	%		1.51	%
Allowance for loan losses as a percentage of nonperforming loans		139.52	%		130.28	%		140.90	%		152.99	%		169.49	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.17	%)		(0.10	%)		(0.25	%)		(0.24	%)		(0.34	%)
Non-performing loans as a percentage of total gross loans		0.78	%		0.89	%		0.87	%		0.89	%		0.89	%
Non-performing loans as a percentage of total assets		0.57	%		0.65	%		0.62	%		0.62	%		0.62	%
Total non-performing assets as a percentage of total assets		0.57	%		0.65	%		0.62	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		0.73	%		0.82	%		0.79	%		0.81	%		0.82	%

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

Summary of Results of Operations

Net income for the three months ended September 30, 2024 was $2.4 million compared to net income of $3.2 million for the three months ended June 30, 2024 and net income of $2.6 million for the three months ended September 30, 2023.

The decrease of net income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was attributed mainly to an increase of $1.2 million in provision for credit losses, a decrease of $1.1 million in non-interest income, an increase of $0.2 million in non-interest expense, partially offset by an increase of $1.1 million in net interest income and a decrease of $0.6 million in provision for income taxes .

The decrease of net income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was largely due to a decrease of $4.5 million in non-interest income as a result of a $3.7 million grant reported in the third quarter of 2023 and an increase of $0.3 million in provision for credit losses, partially offset by an increase of $2.5 million in net interest income and decreases of $1.1 million in provision for income taxes and $ 1.0 million in non-interest expense.

Net income for the nine months ended September 30, 2024 was $8.0 million compared to a net income of $2.8 million for the nine months ended September 30, 2023. The increase of $5.2 million in net income was attributable to an increase of $7.7 million in net interest income, a decrease of $1.3 million in non-interest expense and a decrease of $1.1 million in provision for credit losses, partially offset by a decrease of $3.8 million in non-interest income and an increase of $1.1 million in provision for income taxes.

Net Interest Income and Net Margin

Net interest income for the three months ended September 30, 2024, increased $1.1 million, or 6.25%, to $19.0 million compared to $17.9 million for the three months ended June 30, 2024 and increased $2.5 million, or 15.00%, compared to $16.5 million for the three months ended September 30, 2023.

Net interest income for the nine months ended September 30, 2024, increased $7.7 million, or 15.98%, to $55.8 million, compared to $48.1 million for the nine months ended September 30, 2023. The increase of $7.7 million of net interest income was attributable to an increase of $28.8 million in total interest and dividend income, offset by an increase of $21.1 million in total interest expense.

For the nine months ended September 30, 2024, provision for credit losses amounted to $0.2 million consisting of a provision for credit losses on loans in the amount of $0.4 million and a benefit for credit losses on held-to-maturity securities in the amount of $0.2 million. The $0.4 million provision for credit losses on loans for the nine months ended September 30, 2024 resulted from a benefit of $2.1 million related to microloans offset by a provision of $2.5 million related to non-microloans.

Net interest margin was 2.65% for the three months ended September 30, 2024 compared to 2.62% for the prior quarter, an increase of 3bps and 2.58% for the same period last year, an increase of 7bps.

Net interest margin was 2.66% for the nine months ended September 30, 2024 compared to 2.65% for the nine months ended September 30, 2023, an increase of 1bp.

Non-interest Income

Non-interest income for the three months ended September 30, 2024, was $1.2 million, a decrease of $1.1 million, or 49.03%, compared to $2.3 million the three months ended June 30, 2024 and a decrease of $4.5 million, or 79.55%, compared to $5.6 million the three months ended September 30, 2023.

The $1.1 million decrease in non-interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was largely attributable to decreases of $0.7 million in other non-interest income related to the mark to market adjustments on a private equity fund investment and $0.3 million in late and prepayment charges.

The $4.5 million decrease in non-interest income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was largely attributable to $3.7 million in grants received in the third quarter of 2023 and a decrease of $0.8 million in late and prepayment charges.

Non-interest income for the nine months ended September 30, 2024, was $5.1 million, a decrease of $3.8 million, or 42.76%, compared to $8.9 million for the nine months ended September 30, 2023. The decrease was largely attributable to $3.7 million related to grants received in the third quarter of 2023 and a decrease of $1.1 million in late and prepayment charges, partially, offset by increases of $0.6 million in other non-interest income and $0.4 million in income on sale of mortgage loans.

Non-interest Expense

Non-interest expense for the three months ended September 30, 2024, was $16.3 million, an increase of $0.2 million, or 1.03%, compared to $16.1 million for the three months ended June 30, 2024 and a decrease of $1.0 million, or 5.79%, compared to $17.3 million for the three months ended September 30, 2023.

The $0.2 million increase from the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was mainly attributable to a decrease of $0.2 million in benefit for contingencies and an increase of $0.2 million in occupancy and equipment, partially offset by a decrease of $0.3 million in other operating expense.

The $1.0 million decrease from the three months ended September 30, 2023 compared to the three months ended September 30, 2023 was mainly attributable to decreases of $0.6 million in provision for contingencies, $0.5 million in data processing expenses and $0.3 million in professional fees, partially offset by increases of $0.2 million in direct loan expenses, $0.2 million in occupancy and equipment and $0.1 million in compensation and benefits.

Non-interest expense for the nine months ended September 30, 2024, was $49.4 million, a decrease of $1.4 million, or 2.67%, compared to $50.8 million for the nine months ended September 30, 2023. The $1.4 million decrease from the nine months ended September 30, 2023 was mainly attributable to decreases of $2.5 million in provision for contingencies, $0.7 million in data processing expenses, $0.6 million in professional fees and $0.5 million in office supplies, telephone and postage, partially offset by a decrease of $1.2 million in microloans recoveries and increases of $0.8 million in compensation and benefits and $0.8 million in direct loan expenses.

Balance Sheet Summary

Total assets increased $265.2 million, or 9.64%, to $3.02 billion as of September 30, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $284.4 million in net loans receivable, $26.7 million in other assets, $16.6 million in cash and cash equivalents, $9.1 million in Federal Home Loan Bank of New York stock and $0.8 million in net premises and equipment, partially offset by decreases of $58.0 million in held-to-maturity securities, $8.9 million in available-for-sale securities, $2.5 million in deferred tax assets, $1.5 million in right of use assets, $1.1 million in accrued interest receivable and $0.4 million in mortgage loans held for sale.

Total liabilities increased $252.1 million, or 11.16%, to $2.51 billion as of September 30, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $362.7 million in deposits, $3.0 million in advance payments by borrowers for taxes and insurance and $0.8 million in other liabilities, partially offset by decreases of $104.0 million in borrowings, $9.0 million in accrued interest payable and $1.4 million in operating lease liabilities.

Total stockholders' equity increased $13.2 million, or 2.69%, to $504.6 million as of September 30, 2024, from $491.4 million as of December 31, 2023. This increase in stockholders' equity was largely attributable to $8.0 million in net income, $3.0 million in other comprehensive income, $1.6 million impact to additional paid in capital as a result of share-based compensation and $1.0 million from release of ESOP shares, offset by $0.4 million in preferred stock dividend for shares issued pursuant to the ECIP.

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
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
ASSETS
Cash and due from banks:
Cash	$	32,061		$	23,128		$	29,972		$	28,930		$	26,046
Interest-bearing deposits		123,751			80,038			104,752			110,260			90,966
Total cash and cash equivalents		155,812			103,166			134,724			139,190			117,012
Available-for-sale securities, at fair value		111,005			113,125			116,044			119,902			116,753
Held-to-maturity securities, at amortized cost		403,736			442,113			452,955			461,748			471,065
Placement with banks		249			249			249			249			996
Mortgage loans held for sale, at fair value		9,566			37,764			7,860			9,980			14,103
Loans receivable, net		2,180,331			2,022,173			1,981,428			1,895,886			1,787,607
Accrued interest receivable		16,890			17,441			18,063			18,010			16,624
Premises and equipment, net		16,843			16,976			17,396			16,053			16,453
Right of use assets		29,785			30,349			31,021			31,272			32,110
Federal Home Loan Bank of New York stock (FHLBNY), at cost		28,515			23,972			23,892			19,377			18,870
Deferred tax assets		11,845			13,172			13,919			14,332			15,984
Other assets		51,392			21,507			21,151			24,723			16,286
Total assets	$	3,015,969		$	2,842,007		$	2,818,702		$	2,750,722		$	2,623,863
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	1,870,323		$	1,606,097		$	1,585,784		$	1,507,620		$	1,401,132
Operating lease liabilities		31,343			31,861			32,486			32,684			33,459
Accrued interest payable		2,918			6,820			4,218			11,965			8,385
Advance payments by borrowers for taxes and insurance		13,733			10,838			13,245			10,778			13,743
Borrowings		580,421			680,421			680,421			684,421			675,100
Other liabilities		12,642			8,313			8,866			11,859			6,986
Total liabilities		2,511,380			2,344,350			2,325,020			2,259,327			2,138,805
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		(9,445	)		(9,519	)		(9,702	)		(9,747	)		(10,975	)
Additional paid-in-capital		208,478			207,934			207,584			207,106			207,626
Retained earnings		105,103			102,951			99,834			97,420			96,902
Accumulated other comprehensive loss		(12,686	)		(16,557	)		(16,590	)		(15,649	)		(20,468	)
Unearned compensation ─ ESOP		(12,110	)		(12,401	)		(12,693	)		(12,984	)		(13,276	)
Total stockholders' equity		504,589			497,657			493,682			491,395			485,058
Total liabilities and stockholders' equity	$	3,015,969		$	2,842,007		$	2,818,702		$	2,750,722		$	2,623,863

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
Interest and dividend income:
Interest on loans receivable	$	32,945		$	31,281		$	30,664		$	27,814		$	25,276
Interest on deposits due from banks		2,430			1,542			2,911			990			1,969
Interest and dividend on securities and FHLBNY stock		5,918			5,969			6,091			6,146			6,261
Total interest and dividend income		41,293			38,792			39,666			34,950			33,506
Interest expense:
Interest on certificates of deposit		6,926			6,358			6,380			5,103			4,362
Interest on other deposits		8,519			7,389			6,540			5,706			5,639
Interest on borrowings		6,825			7,141			7,923			6,944			6,963
Total interest expense		22,270			20,888			20,843			17,753			16,964
Net interest income		19,023			17,904			18,823			17,197			16,542
Provision (benefit) for credit losses		789			(374	)		(180	)		(375	)		535
Net interest income after provision (benefit) for credit losses		18,234			18,278			19,003			17,572			16,007
Non-interest income:
Service charges and fees		508			492			473			498			516
Brokerage commissions		—			9			8			13			17
Late and prepayment charges		77			426			359			365			899
Income on sale of mortgage loans		218			274			302			244			173
Grant income		—			—			—			438			3,718
Other		348			1,057			565			(273	)		304
Total non-interest income		1,151			2,258			1,707			1,285			5,627
Non-interest expense:
Compensation and benefits		7,674			7,724			7,844			8,262			7,566
Occupancy and equipment		3,786			3,564			3,667			3,686			3,588
Data processing expenses		1,099			1,013			1,127			1,101			1,582
Direct loan expenses		573			633			732			497			369
(Benefit) provision for contingencies		(252	)		(493	)		164			418			391
Insurance and surety bond premiums		292			263			253			250			255
Office supplies, telephone and postage		222			233			249			294			301
Professional fees		1,351			1,369			1,723			2,040			1,693
Microloans recoveries		(54	)		(65	)		(53	)		(152	)		(69	)
Marketing and promotional expenses		180			145			100			146			248
Directors fees and regulatory assessment		178			176			179			173			169
Other operating expenses		1,265			1,585			965			1,182			1,223
Total non-interest expense		16,314			16,147			16,950			17,897			17,316
Income before income taxes		3,071			4,389			3,760			960			4,318
Provision for income taxes		638			1,197			1,346			442			1,728
Net income	$	2,433		$	3,192		$	2,414		$	518		$	2,590
Dividends on preferred shares		281			75			—			—			—
Net income available to common stockholders	$	2,152		$	3,117		$	2,414		$	518		$	2,590
Earnings per common share:
Basic	$	0.10		$	0.14		$	0.11		$	0.02		$	0.12
Diluted	$	0.10		$	0.14		$	0.11		$	0.02		$	0.12
Weighted average common shares outstanding:
Basic		22,446,009			22,409,803			22,353,492			22,224,945			22,272,076
Diluted		22,612,028			22,419,309			22,366,728			22,406,102			22,349,217

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

	For the Nine Months Ended September 30,
	2024			2023			Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	94,890		$	67,991		$	26,899			39.56	%
Interest on deposits due from banks		6,883			3,983			2,900			72.81	%
Interest and dividend on securities and FHLBNY stock		17,978			18,943			(965	)		(5.09	%)
Total interest and dividend income		119,751			90,917			28,834			31.71	%
Interest expense:
Interest on certificates of deposit		19,664			11,468			8,196			71.47	%
Interest on other deposits		22,448			12,864			9,584			74.50	%
Interest on borrowings		21,889			18,516			3,373			18.22	%
Total interest expense		64,001			42,848			21,153			49.37	%
Net interest income		55,750			48,069			7,681			15.98	%
Provision for credit losses		235			1,348			(1,113	)		(82.57	%)
Net interest income after provision for credit losses		55,515			46,721			8,794			18.82	%
Non-interest income:
Service charges and fees		1,473			1,488			(15	)		(1.01	%)
Brokerage commissions		17			67			(50	)		(74.63	%)
Late and prepayment charges		862			2,000			(1,138	)		(56.90	%)
Income on sale of mortgage loans		794			354			440			124.29	%
Grant income		—			3,718			(3,718	)		(100.00	%)
Other		1,970			1,311			659			50.27	%
Total non-interest income		5,116			8,938			(3,822	)		(42.76	%)
Non-interest expense:
Compensation and benefits		23,242			22,437			805			3.59	%
Occupancy and equipment		11,017			10,882			135			1.24	%
Data processing expenses		3,239			3,982			(743	)		(18.66	%)
Direct loan expenses		1,938			1,126			812			72.11	%
(Benefit) provision for contingencies		(581	)		1,893			(2,474	)		(130.69	%)
Insurance and surety bond premiums		808			768			40			5.21	%
Office supplies, telephone and postage		704			1,189			(485	)		(40.79	%)
Professional fees		4,443			5,052			(609	)		(12.05	%)
Microloans recoveries		(172	)		(1,329	)		1,157			(87.06	%)
Marketing and promotional expenses		425			679			(254	)		(37.41	%)
Directors fees and regulatory assessment		533			484			49			10.12	%
Other operating expenses		3,815			3,603			212			5.88	%
Total non-interest expense		49,411			50,766			(1,355	)		(2.67	%)
Income before income taxes		11,220			4,893			6,327			129.31	%
Provision for income taxes		3,181			2,059			1,122			54.49	%
Net income	$	8,039		$	2,834		$	5,205			183.66	%
Dividends on preferred shares		356			—			356			100.00	%
Net income available to common stockholders	$	7,683		$	2,834		$	4,849			171.10	%
Earnings per common share:
Basic	$	0.34		$	0.12		$	0.22			177.36	%
Diluted	$	0.34		$	0.12		$	0.22			177.10	%
Weighted average common shares outstanding:
Basic		22,403,258			22,920,680			(517,422	)		(2.26	%)
Diluted		22,466,178			22,962,956			(496,778	)		(2.16	%)

Ponce Financial Group, Inc. and Subsidiaries

Key Metrics

	At or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
Performance Ratios:
Return on average assets (1)		0.33	%		0.45	%		0.33	%		0.08	%		0.39	%
Return on average equity (1)		1.93	%		2.59	%		1.97	%		0.42	%		2.11	%
Net interest rate spread (1) (2)		1.77	%		1.72	%		1.82	%		1.74	%		1.68	%
Net interest margin (1) (3)		2.65	%		2.62	%		2.71	%		2.66	%		2.58	%
Non-interest expense to average assets (1)		2.19	%		2.28	%		2.35	%		2.66	%		2.58	%
Efficiency ratio (4)		80.87	%		80.09	%		82.56	%		96.83	%		78.11	%
Average interest-earning assets to average interest- bearing liabilities		128.35	%		129.73	%		129.69	%		133.50	%		134.49	%
Average equity to average assets		16.97	%		17.41	%		17.00	%		18.25	%		18.32	%
Capital Ratios:
Total capital to risk-weighted assets (Bank only)		21.61	%		22.47	%		22.79	%		23.30	%		25.10	%
Tier 1 capital to risk-weighted assets (Bank only)		20.45	%		21.24	%		21.54	%		22.05	%		23.85	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.45	%		21.24	%		21.54	%		22.05	%		23.85	%
Tier 1 capital to average assets (Bank only)		16.19	%		16.70	%		16.26	%		17.49	%		17.51	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		1.09	%		1.18	%		1.23	%		1.36	%		1.51	%
Allowance for credit losses on loans as a percentage of nonperforming loans		139.52	%		130.28	%		140.90	%		152.99	%		169.49	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.17	%)		(0.10	%)		(0.25	%)		(0.24	%)		(0.34	%)
Non-performing loans as a percentage of total gross loans		0.78	%		0.89	%		0.87	%		0.89	%		0.89	%
Non-performing loans as a percentage of total assets		0.57	%		0.65	%		0.62	%		0.62	%		0.62	%
Total non-performing assets as a percentage of total assets		0.57	%		0.65	%		0.62	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		0.73	%		0.82	%		0.79	%		0.81	%		0.82	%
Other:
Number of offices		19			18			18			18			19
Number of full-time equivalent employees		228			227			233			237			243

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

Ponce Financial Group, Inc. and Subsidiaries

Securities Portfolio

	September 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	$	2,993		$	—	$	(124	)	$	2,869	$	2,990		$	—	$	(206	)	$	2,784
Corporate Bonds		21,766			—		(1,438	)		20,328		25,790			—		(2,122	)		23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		35,620			—		(4,976	)		30,644		39,375			—		(6,227	)		33,148
FHLMC Certificates		9,310			—		(1,119	)		8,191		10,163			—		(1,482	)		8,681
FNMA Certificates		57,345			—		(8,463	)		48,882		61,359			—		(9,842	)		51,517
GNMA Certificates		91			—		—			91		104			—		—			104
Total available-for-sale securities	$	127,125		$	—	$	(16,120	)	$	111,005	$	139,781		$	—	$	(19,879	)	$	119,902

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(49	)	$	24,951	$	25,000		$	—	$	(181	)	$	24,819
Corporate Bonds		57,500			—		(618	)		56,882		82,500			—		(2,691	)		79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		193,440			454		(2,946	)		190,948		212,093			104		(5,170	)		207,027
FHLMC Certificates		3,441			—		(169	)		3,272		3,897			—		(244	)		3,653
FNMA Certificates		108,577			22		(1,967	)		106,632		118,944			—		(4,088	)		114,856
SBA Certificates		15,985			153		—			16,138		19,712			166		—			19,878
Allowance for Credit Losses		(207	)		—		—			—		(398	)		—		—			—
Total held-to-maturity securities	$	403,736		$	629	$	(5,749	)	$	398,823	$	461,748		$	270	$	(12,374	)	$	450,042

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

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

	For the Nine			For the
	Months Ended			Year Ended
	September 30, 2024			December 31, 2023
Allowance for credit losses on securities at beginning of the period	$	398		$	—
CECL adoption		—			662
Benefit for credit losses		(191	)		(264	)
Allowance for credit losses on securities at end of the period	$	207		$	398

Ponce Financial Group, Inc. and Subsidiaries

Loan Portfolio

	As of
	September 30,						June 30,						March 31,						December 31,						September 30,
	2024						2024						2024						2023						2023
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned	$	332,380			15.09	%	$	337,292			16.49	%	$	339,331			16.92	%	$	343,689			17.89	%	$	347,082			19.13	%
Owner-Occupied		145,065			6.59	%		147,485			7.21	%		150,842			7.52	%		152,311			7.93	%		151,866			8.37	%
Multifamily residential		678,029			30.78	%		545,323			26.66	%		545,825			27.22	%		550,559			28.65	%		553,694			30.52	%
Nonresidential properties		383,277			17.40	%		337,583			16.51	%		327,350			16.32	%		342,343			17.81	%		321,472			17.71	%
Construction and land		631,461			28.67	%		641,879			31.39	%		608,665			30.35	%		503,925			26.22	%		411,383			22.67	%
Total mortgage loans		2,170,212			98.53	%		2,009,562			98.26	%		1,972,013			98.33	%		1,892,827			98.50	%		1,785,497			98.40	%
Non-mortgage loans:
Business loans		28,499			1.29	%		30,222			1.48	%		26,664			1.33	%		19,779			1.03	%		18,416			1.02	%
Consumer loans (1)		4,021			0.18	%		5,305			0.26	%		6,741			0.34	%		8,966			0.47	%		10,416			0.58	%
Total non-mortgage loans		32,520			1.47	%		35,527			1.74	%		33,405			1.67	%		28,745			1.50	%		28,832			1.60	%
Total loans, gross		2,202,732			100.00	%		2,045,089			100.00	%		2,005,418			100.00	%		1,921,572			100.00	%		1,814,329			100.00	%
Net deferred loan origination costs		1,565						1,145						674						468						692
Allowance for credit losses on loans		(23,966	)					(24,061	)					(24,664	)					(26,154	)					(27,414	)
Loans, net	$	2,180,331					$	2,022,173					$	1,981,428					$	1,895,886					$	1,787,607

	(1)	As of September 30, 2024, June 30,2024, March 31, 2024, December 31, 2023, and September 30, 2023, consumer loans include $3.0 million, $4.3 million, $5.7 million, $8.0 million, and $9.3 million, respectively, of microloans originated by the Bank.

Ponce Financial Group, Inc. and Subsidiaries

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

Total Microloans Exposure as of September 30, 2024
(in thousands)
Microloans Receivable from Grain
Microloans originated - put back (inception-to-September 30, 2024)	$	23,932
Write-downs, net of recoveries (inception-to-date as of September 30, 2024)		(15,287	)
Cash receipts (inception-to-September 30, 2024)		(6,819	)
Grant/reserve		(1,826	)
Net receivable as of September 30, 2024	$	—
Microloans Receivables from Borrowers
Microloans receivable as of September 30, 2024	$	3,033
Allowance for credit losses on loans as of September 30, 2024 ⁽¹⁾		(2,570	)
Microloans, net of allowance for credit losses on loans as of September 30, 2024	$	463
Investments
Investment in Grain	$	1,000
Investment write-off in Q3 2022		(1,000	)
Net investment as of September 30, 2024		—
Total exposure related to microloans as of September 30, 2024 ⁽²⁾	$	463

	(1)	Excludes $1.5 million of security deposits by microloans originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.
	(2)	Total remaining exposure to microloan borrowers. These loans are now serviced by the Bank.

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

Ponce Financial Group, Inc. and Subsidiaries

Allowance for Credit Losses on Loans

	For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	24,061		$	24,664		$	26,154		$	27,414		$	28,173
Provision (benefit) for credit losses on loans		801			(120	)		(255	)		(126	)		750
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned		—			—			—			—			—
Owner occupied		—			—			—			—			—
Multifamily residences		—			—			—			—			—
Nonresidential properties		(7	)		—			—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		(450	)		—			(52	)		(63	)		—
Consumer		(634	)		(747	)		(1,302	)		(1,135	)		(1,592	)
Total charge-offs		(1,091	)		(747	)		(1,354	)		(1,198	)		(1,592	)
Recoveries:
Non-mortgage loans:
Business		1			7			1			—			3
Consumer		194			257			118			64			80
Total recoveries		195			264			119			64			83
Net (charge-offs) recoveries		(896	)		(483	)		(1,235	)		(1,134	)		(1,509	)
Allowance for credit losses on loans at end of the period	$	23,966		$	24,061		$	24,664		$	26,154		$	27,414

Ponce Financial Group, Inc. and Subsidiaries

Deposits

	As of
	September 30,					June 30,					March 31,					December 31,					September 30,
	2024					2024					2024					2023					2023
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand ⁽¹⁾	$	182,737		9.78	%	$	178,125		11.09	%	$	191,541		12.07	%	$	185,151		12.28	%	$	214,326		15.30	%
Interest-bearing deposits:
NOW/IOLA accounts ⁽¹⁾		71,445		3.82	%		81,178		5.05	%		73,202		4.62	%		77,909		5.17	%		74,055		5.29	%
Money market accounts		660,168		35.30	%		502,255		31.27	%		482,344		30.42	%		432,735		28.70	%		370,500		26.44	%
Reciprocal deposits		94,145		5.03	%		109,945		6.85	%		97,718		6.16	%		96,860		6.42	%		82,670		5.90	%
Savings accounts		108,941		5.82	%		109,694		6.83	%		112,713		7.11	%		114,139		7.57	%		117,870		8.41	%
Total NOW, money market, reciprocal and savings accounts		934,699		49.97	%		803,072		50.00	%		765,977		48.31	%		721,643		47.86	%		645,095		46.04	%
Certificates of deposit of $250K or more		174,053		9.31	%		156,224		9.73	%		146,296		9.23	%		132,153		8.77	%		122,353		8.73	%
Brokered certificates of deposit ⁽²⁾		94,531		5.05	%		94,614		5.89	%		94,689		5.97	%		98,729		6.55	%		98,729		7.05	%
Listing service deposits ⁽²⁾		7,376		0.39	%		9,361		0.58	%		12,688		0.80	%		14,433		0.96	%		15,180		1.08	%
All other certificates of deposit less than $250K		476,927		25.50	%		364,701		22.71	%		374,593		23.62	%		355,511		23.58	%		305,449		21.80	%
Total certificates of deposit		752,887		40.25	%		624,900		38.91	%		628,266		39.62	%		600,826		39.86	%		541,711		38.66	%
Total interest-bearing deposits		1,687,586		90.22	%		1,427,972		88.91	%		1,394,243		87.93	%		1,322,469		87.72	%		1,186,806		84.70	%
Total deposits	$	1,870,323		100.00	%	$	1,606,097		100.00	%	$	1,585,784		100.00	%	$	1,507,620		100.00	%	$	1,401,132		100.00	%

	(1)	As of December 31, 2023 and September 30, 2023 $58.2 million and $51.5 million, respectively, were reclassified from demand to NOW/IOLA accounts.
	(2)	As of December 31, 2023, and September 30, 2023, there were $0.3 million and $0.3 million, respectively, in individual listing service deposits amounting to $250,000 or more. As of September 30, 2024, there were no individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.

Ponce Financial Group, Inc. and Subsidiaries

Borrowings

	September 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	$	59,321	$	59,321		4.00	%	$	363,321	$	363,321		4.55	%
2025		50,000		50,000		4.41			50,000		50,000		4.41
2026		200,000		200,000		4.25			—		—		—
2027		212,000		212,000		3.44			212,000		212,000		3.44
2028		9,100		9,100		3.84			9,100		9,100		3.84
Thereafter		50,000		50,000		3.35			50,000		50,000		3.35
	$	580,421	$	580,421		3.86	%	$	684,421	$	684,421		4.10	%

Ponce Financial Group, Inc. and Subsidiaries

Nonperforming Assets

	As of Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	436		$	436		$	399		$	793		$	396
Owner occupied		1,423			1,423			1,426			1,682			1,685
Multifamily residential		4,685			5,754			4,098			2,979			1,444
Nonresidential properties		824			828			441			—			—
Construction and land		8,907			8,907			10,277			10,759			11,721
Non-mortgage loans:
Business		180			396			146			165			209
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) ⁽¹⁾	$	16,455		$	17,744		$	16,787		$	16,378		$	15,455

Non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	278		$	277		$	270		$	270		$	270
Owner occupied		444			448			447			447			449
Multifamily residential		—			—			—			—			—
Nonresidential properties		—			—			—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾		722			725			717			717			719
Total non-accrual loans ⁽²⁾	$	17,177		$	18,469		$	17,504		$	17,095		$	16,174

Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	1,821		$	1,830		$	1,850		$	2,112		$	2,131
Owner occupied		2,116			2,171			2,288			2,313			2,335
Multifamily residential		—			—			—			—			—
Nonresidential properties		672			707			748			757			765
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		222			—			—			—			—
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	4,831		$	4,708		$	4,886		$	5,182		$	5,231
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	22,008		$	23,177		$	22,390		$	22,277		$	21,405
Total non-performing loans to total gross loans		0.78	%		0.89	%		0.87	%		0.89	%		0.89	%
Total non-performing assets to total assets		0.57	%		0.65	%		0.62	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets ⁽¹⁾		0.73	%		0.82	%		0.79	%		0.81	%		0.82	%

	(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 September 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⁾	$	2,096,592	$	32,945	6.25	%	$	1,777,585	$	25,276	5.64	%
Securities ⁽³⁾		548,708		5,324	3.86	%		599,573		5,821	3.85	%
Other ⁽⁴⁾		210,057		3,024	5.73	%		169,570		2,409	5.64	%
Total interest-earning assets		2,855,357		41,293	5.75	%		2,546,728		33,506	5.22	%
Non-interest-earning assets		107,153						111,771
Total assets	$	2,962,510					$	2,658,499
Interest-bearing liabilities:
NOW/IOLA^{(5) (6)}	$	74,690	$	174	0.93	%	$	69,935	$	141	0.80	%
Money market ⁽⁶⁾		711,385		8,318	4.65	%		485,042		5,468	4.47	%
Savings		109,571		25	0.09	%		118,095		29	0.10	%
Certificates of deposit		655,562		6,926	4.20	%		527,302		4,362	3.28	%
Total deposits		1,551,208		15,443	3.96	%		1,200,374		10,000	3.31	%
Advance payments by borrowers		13,151		2	0.06	%		14,537		1	0.03	%
Borrowings		660,312		6,825	4.11	%		678,676		6,963	4.07	%
Total interest-bearing liabilities		2,224,671		22,270	3.98	%		1,893,587		16,964	3.55	%
Non-interest-bearing liabilities:
Non-interest-bearing demand ⁽⁵⁾		185,543		—				231,299		—
Other non-interest-bearing liabilities		49,702		—				46,643		—
Total non-interest-bearing liabilities		235,245		—				277,942		—
Total liabilities		2,459,916		22,270				2,171,529		16,964
Total equity		502,594						486,970
Total liabilities and total equity	$	2,962,510			3.98	%	$	2,658,499			3.55	%
Net interest income			$	19,023					$	16,542
Net interest rate spread ⁽⁷⁾					1.77	%					1.67	%
Net interest-earning assets ⁽⁸⁾	$	630,686					$	653,141
Net interest margin⁽⁹⁾					2.65	%					2.58	%
Average interest-earning assets to interest-bearing liabilities					128.35	%					134.49	%

	(1)	Annualized where appropriate.
	(2)	Loans include loans and mortgage loans held for sale, at fair value.
	(3)	Securities include available-for-sale securities and held-to-maturity securities.
	(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(5)	Includes reclassification of $47.1 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended September 30, 2023.
	(6)	Includes $0.1 million of interest expense reclassified from money market to NOW/IOLA for the three months ended September 30, 2023.
	(7)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(8)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(9)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries

Average Balance Sheets

	For the Nine Months Ended September 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⁾	$	2,038,879	$	94,890		6.22	%	$	1,678,369	$	67,991		5.42	%
Securities ⁽³⁾		562,451		16,429		3.90	%		614,987		17,627		3.83	%
Other ⁽⁴⁾		196,668		8,432		5.73	%		127,961		5,299		5.54	%
Total interest-earning assets		2,797,998		119,751		5.72	%		2,421,317		90,917		5.02	%
Non-interest-earning assets		106,500							118,609
Total assets	$	2,904,498						$	2,539,926
Interest-bearing liabilities:
NOW/IOLA ^{(5) (6)}	$	76,817	$	543		0.94	%	$	69,331	$	1,133		2.18	%
Money market ⁽⁶⁾		618,725		21,819		4.71	%		403,171		11,637		3.86	%
Savings		111,636		80		0.10	%		123,218		88		0.10	%
Certificates of deposit		640,369		19,664		4.10	%		522,740		11,468		2.93	%
Total deposits		1,447,547		42,106		3.89	%		1,118,460		24,326		2.91	%
Advance payments by borrowers		13,660		6		0.06	%		14,814		6		0.05	%
Borrowings		703,775		21,889		4.15	%		617,912		18,516		4.01	%
Total interest-bearing liabilities		2,164,982		64,001		3.95	%		1,751,186		42,848		3.27	%
Non-interest-bearing liabilities:
Non-interest-bearing demand ⁽⁵⁾		191,087		—					251,645		—
Other non-interest-bearing liabilities		51,061		—					43,864		—
Total non-interest-bearing liabilities		242,148		—					295,509		—
Total liabilities		2,407,130		64,001					2,046,695		42,848
Total equity		497,368							493,231
Total liabilities and total equity	$	2,904,498				3.95	%	$	2,539,926				3.27	%
Net interest income			$	55,750						$	48,069
Net interest rate spread⁽⁷⁾						1.77	%						1.74	%
Net interest-earning assets ⁽⁸⁾	$	633,016						$	670,131
Net interest margin ⁽⁹⁾						2.66	%						2.65	%
Average interest-earning assets to
interest-bearing liabilities						129.24	%						138.27	%

	(1)	Annualized where appropriate.
	(2)	Loans include loans and mortgage loans held for sale, at fair value.
	(3)	Securities include available-for-sale securities and held-to-maturity securities.
	(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(5)	Includes reclassification of $46.5 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the nine months ended September 30, 2023.
	(6)	Includes $1.1 million of interest expense reclassified from money market to NOW/IOLA for the nine months ended September 30, 2023.
	(7)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(8)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(9)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries

Other Data

	As of
	September 30,		June 30,		March 31,		December 31,		September 30,
	2024		2024		2024		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		1,067,248		1,074,979		1,096,214		1,101,191		1,233,111
Common shares outstanding at end of period		23,819,463		23,811,732		23,790,497		23,785,520		23,653,600

Book value per common share	$	11.74	$	11.45	$	11.29	$	11.20	$	10.99
Tangible book value per common share	$	11.74	$	11.45	$	11.29	$	11.20	$	10.99

Contact:

Sergio Vaccaro

sergio.vaccaro@poncebank.net

718-931-9000

Ponce Financial Group, Inc. Reports Third Quarter 2024 Results