NEW YORK, Oct. 24, 2025 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the "Company") (NASDAQ:PDLB), the holding company for Ponce Bank, N.A. (the "Bank"), today announced results for the third quarter of 2025.

Third Quarter 2025 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $6.2 million, or $0.27 per diluted share for the three months ended September 30, 2025, as compared to net income available to common stockholders of $5.8 million, or $0.25 per diluted share for the three months ended June 30, 2025 and net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024. Total net income for the three months ended September 30, 2025 was $6.5 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended September 30, 2025.
Included in the $6.2 million of net income available to common stockholders for the third quarter of 2025 results is $46.8 million in interest and dividend income and $1.5 million in non-interest income, offset by $21.6 million in interest expense, $16.6 million in non-interest expense, $2.3 million in provision for income taxes, $1.5 million in provision for credit losses and $0.3 million in dividends on preferred shares.
Net interest income of $25.2 million for the third quarter of 2025 increased $0.8 million, or 3.37%, from the prior quarter and increased $6.2 million, or 32.72%, from the same quarter last year.
Net interest margin was 3.30% for the third quarter of 2025, versus 3.27% for the prior quarter and 2.65% for the same quarter last year.

Nine Months 2025 Highlights (Compared to 2024):

Net income available to common stockholders was $17.7 million, or $0.77 per diluted share for the nine months ended September 30, 2025, as compared to net income available to common stockholders of $7.7 million, or $0.34 per diluted share for the nine months ended September 30, 2024. Total net income for the nine months ended September 30, 2025 was $18.6 million. The Company paid dividends of $0.8 million on its preferred stock during the nine months ended September 30, 2025.
Net interest income for the nine months ended September 30, 2025 was $71.9 million, an increase of $16.1 million, or 28.93%, compared to $55.8 million for the nine months ended September 30, 2024.
Non-interest income for the nine months ended September 30, 2025 was $5.9 million, an increase of $0.8 million, or 15.97%, from $5.1 million for the nine months ended September 30, 2024.
Non-interest expense for the nine months ended September 30, 2025 was $50.4 million, an increase of $0.4 million, or 0.77%, compared to $50.0 million for the nine months ended September 30, 2024.
Cash and equivalents were $146.6 million as of September 30, 2025, an increase of $6.7 million, or 4.82%, from $139.8 million as of December 31, 2024.
Securities totaled $379.9 million as of September 30, 2025, a decrease of $93.0 million, or 19.66%, from $472.9 million as of December 31, 2024 primarily due to regular principal payments, the call of three available-for-sale securities in the total amount of $7.0 million and the maturity/call of three held-for-sale securities in the amount of $50.0 million.
Net loans receivable were $2.49 billion as of September 30, 2025, an increase of $203.4 million, or 8.90%, from $2.29 billion as of December 31, 2024.
Deposits were $2.06 billion as of September 30, 2025, an increase of $167.9 million, or 8.86%, from $1.90 billion as of December 31, 2024.

President and Chief Executive Officer's Comments

Carlos P. Naudon, Ponce Financial Group, Inc.'s President and CEO, stated "In these uncertain times, we continue to execute on our long-term strategy of increasing margin through yield improvement and controlled cost of funds and operating expenses. We are very pleased with the results. We note our incremental profitability year-on-year and the consistency of our earnings. Our diluted earnings per share of $0.77 for the nine months ended September 30, 2025, more than doubled from the same period last year, driven by incremental net interest and non-interest income, achieved while keeping non-interest expenses almost flat. Our net interest margin this quarter increased by 3 basis points compared to the prior quarter, reflecting our decreasing funding costs. We were also busy working on the future and opened a new branch in the Inwood neighborhood of Manhattan and modernized our charter, becoming both a financial holding company and a bank holding company while Ponce Bank converted to a national bank. These developments should enhance our funding sources and level our playing fields."

Executive Chairman's Comment

Steven A. Tsavaris, Ponce Financial Group's Executive Chairman added "We continue to make progress towards our commitments under the U.S. Treasury's Emergency Capital Investment Program. Our strong level of loan originations from April 2025 to September 2025 ensures that our dividend yield will continue at the 0.50% level in the next dividend period starting in 2026. Also, we're mindful of our percentage of deep impact lending, as we need to be at 60% or above for 16 quarters cumulatively, as a condition to buy the preferred stock back. After 13 quarters, including the quarter ended September 30, 2025, we are at 81% deep impact lending."

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

	At or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2025			2025			2025			2024			2024
Performance Ratios:
Return on average assets ⁽¹⁾		0.82	%		0.79	%		0.77	%		0.38	%		0.33	%
Return on common equity ⁽¹⁾		8.10	%		7.88	%		7.97	%		3.76	%		3.06	%
Net interest margin ^{(1) (2)}		3.30	%		3.27	%		2.98	%		2.80	%		2.65	%
Non-interest expense to average assets ⁽¹⁾		2.10	%		2.18	%		2.19	%		2.25	%		2.19	%
Efficiency ratio ⁽³⁾		62.15	%		63.69	%		68.70	%		75.63	%		80.87	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)		24.08	%		22.65	%		22.84	%		22.98	%		22.87	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)		13.39	%		12.49	%		12.51	%		12.44	%		12.28	%
Tier 1 capital to total assets (Ponce Financial Group)		17.33	%		17.13	%		16.84	%		17.70	%		17.81	%
Total capital to risk-weighted assets (Bank only)		21.79	%		21.22	%		21.38	%		21.47	%		21.61	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.66	%		20.15	%		20.35	%		20.40	%		20.45	%
Tier 1 capital to total assets (Bank only)		16.08	%		15.99	%		15.61	%		15.81	%		16.19	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.98	%		0.97	%		0.96	%		0.97	%		1.09	%
Allowance for credit losses on loans as a percentage of nonperforming loans		88.88	%		101.01	%		84.15	%		82.29	%		139.52	%
Net (charge-offs) recoveries to average outstanding loans ⁽¹⁾		(0.03	%)		(0.04	%)		(0.04	%)		(0.45	%)		(0.17	%)
Non-performing loans as a percentage of total assets		0.88	%		0.76	%		0.88	%		0.90	%		0.57	%
Other:
Number of offices		18			17			18			19			19
Number of full-time equivalent employees		209			206			211			218			228

(1)   Annualized where appropriate.

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

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

Summary of Results of Operations

Net income for the three months ended September 30, 2025 was $6.5 million compared to net income of $6.1 million for the three months ended June 30, 2025 and net income of $2.4 million for the three months ended September 30, 2024.

The $0.4 million increase of net income for the three months ended September 30, 2025 compared to the three months ended June 30, 2025 was attributed mainly to an increase of $0.8 million in net interest income and decreases of $0.3 million in provision for credit losses and $0.3 million in non-interest expense, offset by a decrease of $0.6 million in non-interest income and an increase of $0.4 million in provision for income taxes.

The $4.1 million increase of net income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was largely due to increases of $6.2 million in net interest income and $0.3 million in non-interest income, offset by increases of $1.6 million in provision for income taxes and $0.8 million in provision for credit losses while remain flat on non-interest expense

Net income for the nine months ended September 30, 2025 was $18.6 million compared to net income of $8.0 million for the nine months ended September 30, 2024. The $10.5 million increase of net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was attributed mainly to increases of $16.1 million in net interest income and $0.8 million in non-interest income, partially offset by increases of $3.1 million in provision for credit losses, $2.9 million in provision for income taxes and $0.4 million in non-interest expense.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended September 30, 2025, increased $0.8 million, or 3.37%, to $25.2 million compared to $24.4 million for the three months ended June 30, 2025 and increased $6.2 million, or 32.72%, compared to $19.0 million for the three months ended September 30, 2024.

The $0.8 million increase in net interest income from the three months ended June 30, 2025 was attributable to an increase of $1.0 million in total interest and dividend income, offset by an increase of $0.2 million in total interest expense. The $6.2 million increase in net interest income from the three months ended September 30, 2024 was attributable to an increase of $5.6 million in total interest and dividend income and a decrease of $0.7 million in total interest expense.

Net interest income for the nine months ended September 30, 2025, increased $16.1 million, or 28.93%, to $71.9 million compared to $55.8 million for the nine months ended September 30, 2024. The $16.1 million increase in net interest income was attributable to an increase of $17.0 million in total interest and dividend income, offset by an increase of $0.8 million in total interest expense.

Net interest margin was 3.30% for the three months ended September 30, 2025 compared to 3.27% for the prior quarter, an increase of 3bps and 2.65% for the same period last year, an increase of 65bps.

Net interest margin was 3.18% for the nine months ended September 30, 2025 compared to 2.66% for the nine months ended September 30, 2024, an increase of 52bps.

Non-interest Income

Non-interest income for the three months ended September 30, 2025, was $1.5 million, a decrease of $0.6 million, or 27.57%, compared to $2.1 million for the three months ended June 30, 2025 and an increase of $0.3 million, or 29.63%, compared to $1.2 million for the three months ended September 30, 2024.

The $0.6 million decrease in non-interest income from the three months ended June 30, 2025 was largely attributable to decreases of

$0.5 million in other non-interest income attributable to the Bank's investment in Oaktree SBIC Fund, L.P. ("Oaktree") as a result of a loss from Oaktree's investment and $0.1 million in late and prepayment charges.

The $0.3 million increase in non-interest income from the three months ended September 30, 2024 was largely attributable to increases of $0.4 million in grant income and $0.3 million in late and prepayment charges, partially offset by a decrease of $0.4 million in other non-interest income attributable to the Bank's investment in Oaktree as a result of a loss from Oaktree's investment.

Non-interest income for the nine months ended September 30, 2025, was $5.9 million, an increase of $0.8 million, or 15.97%, compared to $5.1 million for the nine months ended September 30, 2024. The $0.8 million increase in non-interest income was largely attributable to increases of $0.9 million in grant income, $0.8 million in late and prepayment charges and $0.4 million in income on sale of SBA loans, partially offset by decreases of $1.0 million in other non-interest income attributable to the Bank's investment in Oaktree as a result of a loss from Oaktree's investment and $0.3 million in income on the sale of mortgage loans.

Non-interest Expense

Non-interest expense for the three months ended September 30, 2025 was $16.6 million, a decrease of $0.3 million, or 1.49%, compared to $16.9 million for the three months ended June 30, 2025 and remained flat at $16.6 million when compared to the three months ended September 30, 2024.

The $0.3 million decrease in non-interest expense from the three months ended June 30, 2025 was mainly attributable to decreases of $0.3 million in federal deposit insurance and regulatory assessment, $0.2 million in other non-interest expense, partially offset by an increase of $0.2 million in compensation and benefits.

Non-interest expense for the nine months ended September 30, 2025, was $50.4 million, an increase of $0.4 million, or 0.77%, compared to $50.0 million for the nine months ended September 30, 2024. The $0.4 million increase in non-interest expense was mainly attributable to increases of $0.7 million in occupancy and equipment, $0.4 million in data processing expenses and $0.4 million in other operating expense, partially offset by decreases of $1.2 million in direct loan expenses and $0.3 million in professional fees.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $32.4 million at September 30, 2025 compared to $28.5 million at June 30, 2025 and $22.0 million at September 30, 2024.

During the three months ended September 30, 2025, a credit loss provision of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion and $0.5 million charged on the unfunded portion on loans. During the three months ended June 30, 2025, a credit loss provision of $1.6 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.3 million charged on the unfunded portion on loans. During the three months ended September 30, 2024, a credit loss provision of $0.5 million on loans was recorded, consisting of $0.8 million charged on the funded portion on loans and a benefit of $0.3 million on the unfunded portion on loans.

During the nine months ended September 30, 2025, a credit loss provision of $2.7 million on loans was recorded, consisting of $2.9 million charged on the funded portion and a benefit of $0.2 million on the unfunded portion on loans. During the nine months ended September 30, 2024, a credit loss benefit of $0.2 million on loans was recorded, consisting of $0.4 million charged on the funded portion on loans and a benefit of $0.6 million on unfunded portion on loans.

Balance Sheet Summary

Total assets increased $117.1 million, or 3.85%, to $3.16 billion as of September 30, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $203.4 million in net loans receivable, $8.1 million in other assets, $6.7 million in cash and cash equivalents, $1.1 million in accrued interest receivable and $0.3 million in deferred tax asset, partially offset by decreases of $82.8 million in held-to-maturity securities, $10.1 million in available-for-sale securities, $4.9 million in mortgage loans held for sale, $3.2 million in Federal Home Loan Bank of New York stock, $0.8 million in right of use asset and $0.7 million in premises and equipment, net.

Total liabilities increased $92.8 million, or 3.66%, to $2.63 billion as of September 30, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to increases of $164.0 million in deposits, $3.9 million in advance payments by borrowers for taxes and insurance and $0.7 million in accrued interest payable, partially offset by decreases of $75.0 million in borrowings and $0.7 million in operating lease liabilities.

Total stockholders' equity increased $24.3 million, or 4.81%, to $529.8 million as of September 30, 2025, from $505.5 million as of December 31, 2024. The $24.3 million increase in stockholders' equity was largely attributable to $18.6 million in net income, $3.7 million in other comprehensive income, $1.4 million impact to additional paid in capital as a result of share-based compensation, $1.4 million from release of ESOP shares and $0.1 million from exercise of stock options, offset by $0.8 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

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

Forward Looking Statements

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

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Dollars in thousands, except for share data)
	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
	2025			2025			2025			2024			2024
ASSETS
Cash and due from banks:
Cash	$	29,296		$	35,767		$	32,113		$	35,478		$	32,061
Interest-bearing deposits		117,283			90,872			97,780			104,361			123,751
Total cash and cash equivalents		146,579			126,639			129,893			139,839			155,812
Available-for-sale securities, at fair value		94,822			96,562			103,570			104,970			111,005
Held-to-maturity securities, at amortized cost		285,125			336,879			358,024			367,938			403,736
Placement with banks		249			249			249			249			249
Mortgage loans held for sale, at fair value		5,794			5,703			8,567			10,736			9,566
Loans receivable, net		2,490,046			2,458,712			2,370,931			2,286,599			2,180,331
Accrued interest receivable		18,903			19,126			19,008			17,771			16,890
Premises and equipment, net		16,129			16,067			16,417			16,794			16,843
Right of use assets		28,295			28,806			29,496			29,093			29,785
Federal Home Loan Bank of New York stock (FHLBNY), at cost		25,945			26,620			25,807			29,182			28,515
Deferred tax assets		12,402			12,143			11,629			12,074			11,845
Other assets		32,790			26,363			16,245			24,693			51,392
Total assets	$	3,157,079		$	3,153,869		$	3,089,836		$	3,039,938		$	3,015,969
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits ⁽¹⁾	$	2,063,081		$	2,053,151		$	2,017,848		$	1,895,213		$	1,884,056
Operating lease liabilities		30,028			30,501			31,126			30,696			31,343
Accrued interest payable		4,372			4,161			4,628			3,712			2,918
Borrowings		521,100			536,100			521,100			596,100			580,421
Other liabilities		8,663			8,868			1,248			8,717			12,642
Total liabilities		2,627,244			2,632,781			2,575,950			2,534,438			2,511,380
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized		225,000			225,000			225,000			225,000			225,000
Common stock, $0.01 par value; 200,000,000 shares authorized		249			249			249			249			249
Treasury stock, at cost		(7,270	)		(7,404	)		(7,641	)		(7,707	)		(9,445	)
Additional paid-in-capital		208,909			208,275			207,888			207,319			208,478
Retained earnings		125,477			119,250			113,432			107,754			105,103
Accumulated other comprehensive loss		(11,586	)		(13,047	)		(13,515	)		(15,297	)		(12,686	)
Unearned compensation ─ ESOP		(10,944	)		(11,235	)		(11,527	)		(11,818	)		(12,110	)
Total stockholders' equity		529,835			521,088			513,886			505,500			504,589
Total liabilities and stockholders' equity	$	3,157,079		$	3,153,869		$	3,089,836		$	3,039,938		$	3,015,969

(1) As of June 30, 2025, March 31. 2025, December 31, 2024 and September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million, $10.3 million and $13.7 million, respectively, were reclassified to Deposits.

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,
	2025			2025		2025			2024			2024
Interest and dividend income:
Interest on loans receivable	$	41,486		$	40,291	$	37,136		$	35,622		$	32,945
Interest on deposits due from banks		978			807		1,668			1,783			2,430
Interest and dividend on securities and FHLBNY stock		4,383			4,762		5,193			5,481			5,918
Total interest and dividend income		46,847			45,860		43,997			42,886			41,293
Interest expense:
Interest on certificates of deposit		6,553			7,382		7,754			8,104			6,926
Interest on other deposits		9,996			9,058		8,554			8,476			8,519
Interest on borrowings		5,050			4,994		5,486			5,576			6,825
Total interest expense		21,599			21,434		21,794			22,156			22,270
Net interest income		25,248			24,426		22,203			20,730			19,023
Provision (benefit) for credit losses ⁽¹⁾		1,364			1,626		(285	)		897			537
Net interest income after provision (benefit) for credit losses		23,884			22,800		22,488			19,833			18,486
Non-interest income:
Service charges and fees		539			511		525			500			508
Brokerage commissions		8			—		4			44			—
Late and prepayment charges		385			530		697			318			77
Income on sale of mortgage loans		166			169		148			254			218
Income on sale of SBA loans		—			—		404			148			—
Grant income		429			428		—			—			—
Other		(35	)		422		603			833			348
Total non-interest income		1,492			2,060		2,381			2,097			1,151
Non-interest expense:
Compensation and benefits		7,868			7,627		7,780			7,668			7,674
Occupancy and equipment		3,934			3,907		3,913			3,863			3,786
Data processing expenses		1,296			1,188		1,152			1,143			1,099
Direct loan expenses		155			241		388			617			573
Insurance and surety bond premiums		318			297		315			293			292
Office supplies, telephone and postage		170			174		170			294			222
Professional fees		1,409			1,367		1,364			1,703			1,351
Microloans recoveries		—			—		—			(29	)		(54	)
Marketing and promotional expenses		184			266		83			289			180
Federal deposit insurance and regulatory assessment ⁽²⁾		266			546		461			418			392
Other operating expenses ⁽²⁾		1,018			1,256		1,262			1,206			1,051
Total non-interest expense ⁽¹⁾		16,618			16,869		16,888			17,465			16,566
Income before income taxes		8,758			7,991		7,981			4,465			3,071
Provision for income taxes		2,250			1,891		2,022			1,532			638
Net income	$	6,508		$	6,100	$	5,959		$	2,933		$	2,433
Dividends on preferred shares		281			282		281			282			281
Net income available to common stockholders	$	6,227		$	5,818	$	5,678		$	2,651		$	2,152
Earnings per common share:
Basic	$	0.27		$	0.26	$	0.25		$	0.12		$	0.10
Diluted	$	0.27		$	0.25	$	0.25		$	0.12		$	0.10
Weighted average common shares outstanding:
Basic		22,766,195			22,716,615		22,662,916			22,528,160			22,446,009
Diluted		23,135,448			22,947,769		22,876,740			22,807,644			22,612,028

(1) For the three months ended December 31, 2024, and September 30, 2024, benefit for contingencies in the amounts of $0.2 million and $0.3 million were reclassified from total non-interest expense to benefit for credit losses.

(2) For the three months ended September 30, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each of the periods.

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Operations (Dollars in thousands, except per share data)

	For the Nine Months Ended September 30,
	2025		2024			Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	118,913	$	94,890		$	24,023			25.32	%
Interest on deposits due from banks		3,453		6,883			(3,430	)		(49.83	%)
Interest and dividend on securities and FHLBNY stock		14,338		17,978			(3,640	)		(20.25	%)
Total interest and dividend income		136,704		119,751			16,953			14.16	%
Interest expense:
Interest on certificates of deposit		21,689		19,664			2,025			10.30	%
Interest on other deposits		27,608		22,448			5,160			22.99	%
Interest on borrowings		15,530		21,889			(6,359	)		(29.05	%)
Total interest expense		64,827		64,001			826			1.29	%
Net interest income		71,877		55,750			16,127			28.93	%
Provision (benefit) for credit losses		2,705		(346	)		3,051			(881.79	%)
Net interest income after provision (benefit) for credit losses		69,172		56,096			13,076			23.31	%
Non-interest income:
Service charges and fees		1,575		1,473			102			6.92	%
Brokerage commissions		12		17			(5	)		(29.41	%)
Late and prepayment charges		1,612		862			750			87.01	%
Income on sale of mortgage loans		483		794			(311	)		(39.17	%)
Income on sale of SBA loans		404		—			404			—	%
Grant income		857		—			857			—	%
Other		990		1,970			(980	)		(49.75	%)
Total non-interest income		5,933		5,116			817			15.97	%
Non-interest expense:
Compensation and benefits		23,275		23,242			33			0.14	%
Occupancy and equipment		11,754		11,017			737			6.69	%
Data processing expenses		3,636		3,239			397			12.26	%
Direct loan expenses		784		1,938			(1,154	)		(59.55	%)
Insurance and surety bond premiums		930		808			122			15.10	%
Office supplies, telephone and postage		514		704			(190	)		(26.99	%)
Professional fees		4,140		4,443			(303	)		(6.82	%)
Microloans recoveries		—		(172	)		172			(100.00	%)
Marketing and promotional expenses		533		425			108			25.41	%
Federal deposit insurance and regulatory assessments		1,273		1,209			64			5.29	%
Other operating expenses		3,536		3,139			397			12.65	%
Total non-interest expense		50,375		49,992			383			0.77	%
Income before income taxes		24,730		11,220			13,510			120.41	%
Provision for income taxes		6,163		3,181			2,982			93.74	%
Net income	$	18,567	$	8,039		$	10,528			130.96	%
Dividends on preferred shares		844		356			488			137.08	%
Net income available to common stockholders	$	17,723	$	7,683		$	10,040			130.68	%
Earnings per common share:
Basic	$	0.78	$	0.34		$	0.44			129.41	%
Diluted	$	0.77	$	0.34		$	0.43			126.47	%
Weighted average common shares outstanding:
Basic		22,715,620		22,403,258			312,362			1.39	%
Diluted		22,992,655		22,466,178			526,477			2.34	%

Ponce Financial Group, Inc. and Subsidiaries Loans Receivable excluding Mortgage Loans Held for Sale

	As of
	September 30,						June 30,						March 31,						December 31,						September 30,
	2025						2025						2025						2024						2024
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned	$	311,728			12.39	%	$	317,488			12.78	%	$	325,866			13.62	%	$	330,053			14.30	%	$	332,380			15.09	%
Owner-Occupied		132,874			5.28	%		134,862			5.43	%		137,676			5.75	%		142,363			6.17	%		145,065			6.59	%
Multifamily residential		688,574			27.39	%		693,670			27.96	%		675,541			28.24	%		670,159			29.04	%		678,029			30.78	%
Nonresidential properties		436,175			17.35	%		404,512			16.30	%		390,681			16.33	%		389,898			16.89	%		383,277			17.40	%
Construction and land		886,369			35.25	%		883,462			35.59	%		815,425			34.08	%		733,660			31.79	%		631,461			28.67	%
Total mortgage loans		2,455,720			97.66	%		2,433,994			98.06	%		2,345,189			98.02	%		2,266,133			98.19	%		2,170,212			98.53	%
Non-mortgage loans:
Business loans		58,012			2.31	%		47,372			1.91	%		46,329			1.94	%		40,849			1.77	%		28,499			1.29	%
Consumer loans ⁽¹⁾		727			0.03	%		840			0.03	%		997			0.04	%		1,038			0.04	%		4,021			0.18	%
Total non-mortgage loans		58,739			2.34	%		48,212			1.94	%		47,326			1.98	%		41,887			1.81	%		32,520			1.47	%
Total loans, gross		2,514,459			100.00	%		2,482,206			100.00	%		2,392,515			100.00	%		2,308,020			100.00	%		2,202,732			100.00	%
Net deferred loan origination costs		351						606						1,390						1,081						1,565
Allowance for credit losses on loans		(24,764	)					(24,100	)					(22,974	)					(22,502	)					(23,966	)
Loans, net	$	2,490,046					$	2,458,712					$	2,370,931					$	2,286,599					$	2,180,331

(1)

As of September 30, 2024, consumer loans include $3.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.

Ponce Financial Group, Inc. and Subsidiaries Allowance for Credit Losses on Loans

	For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2025			2025			2025			2024			2024
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	24,100		$	22,974		$	22,502		$	23,966		$	24,061
Provision for credit losses on loans		864			1,348			731			1,090			801
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned		—			—			(38	)		—			—
Owner occupied		—			—			—			—			—
Multifamily residences		—			—			—			—			—
Nonresidential properties		—			—			—			—			(7	)
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		(200	)		(222	)		(222	)		(232	)		(450	)
Consumer		—			—			(3	)		(2,465	)		(634	)
Total charge-offs		(200	)		(222	)		(263	)		(2,697	)		(1,091	)
Recoveries:
Non-mortgage loans:
Business		—			—			4			—			1
Consumer		—			—			—			143			194
Total recoveries		—			—			4			143			195
Net (charge-offs) recoveries		(200	)		(222	)		(259	)		(2,554	)		(896	)
Allowance for credit losses on loans at end of the period	$	24,764		$	24,100		$	22,974		$	22,502		$	23,966

Ponce Financial Group, Inc. and Subsidiaries Deposits

	As of
	September 30,					June 30,					March 31,					December 31,					September 30,
	2025					2025					2025					2024					2024
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand	$	192,595		9.34	%	$	197,671		9.63	%	$	212,139		10.51	%	$	169,178		8.93	%	$	182,737		9.71	%
Interest-bearing deposits:
NOW/IOLA accounts		75,051		3.64	%		63,626		3.10	%		74,430		3.69	%		62,616		3.30	%		71,445		3.79	%
Money market accounts		821,844		39.84	%		790,939		38.52	%		692,753		34.33	%		636,219		33.57	%		660,168		35.04	%
Reciprocal deposits		154,548		7.49	%		136,693		6.66	%		141,838		7.03	%		130,677		6.90	%		94,145		5.00	%
Savings accounts ⁽¹⁾ ⁽²⁾		117,401		5.69	%		113,701		5.54	%		119,023		5.90	%		116,219		6.13	%		122,674		6.51	%
Total NOW, money market, reciprocal and savings accounts		1,168,844		56.66	%		1,104,959		53.82	%		1,028,044		50.95	%		945,731		49.90	%		948,432		50.34	%
Certificates of deposit of $250K or more⁽¹⁾		209,819		10.17	%		220,671		10.75	%		219,721		10.89	%		204,293		10.78	%		210,262		11.17	%
Brokered certificates of deposit ⁽³⁾		67,952		3.29	%		69,531		3.39	%		84,531		4.19	%		94,531		4.99	%		94,531		5.02	%
Listing service deposits ⁽³⁾		4,150		0.20	%		6,140		0.30	%		6,140		0.30	%		7,376		0.39	%		7,376		0.39	%
All other certificates of deposit less than $250K ⁽¹⁾		419,721		20.34	%		454,179		22.12	%		467,273		23.16	%		474,104		25.02	%		440,718		23.39	%
Total certificates of deposit		701,642		34.00	%		750,521		36.56	%		777,665		38.54	%		780,304		41.18	%		752,887		39.97	%
Total interest-bearing deposits		1,870,486		90.66	%		1,855,480		90.38	%		1,805,709		89.49	%		1,726,035		91.08	%		1,701,319		90.31	%
Total deposits	$	2,063,081		100.00	%	$	2,053,151		100.01	%	$	2,017,848		100.00	%	$	1,895,213		100.01	%	$	1,884,056		100.02	%

(1)	As of September 30, 2024, $36.2 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.
(2)	As of June 30, 2025, March 31. 2025, December 31, 2024 and September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million, $10.3 million and $13.7 million, respectively, were reclassified to Deposits.
(3)	There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.

Ponce Financial Group, Inc. and Subsidiaries Nonperforming Assets

	As of Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2025			2025			2025			2024			2024
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	2,527		$	1,859		$	1,052		$	436		$	436
Owner occupied		649			—			1,423			1,423			1,423
Multifamily residential		14,202			11,703			9,788			10,271			4,685
Nonresidential properties		—			405			—			—			824
Construction and land		8,907			8,907			14,159			14,158			8,907
Non-mortgage loans:
Business		880			276			170			343			180
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) ⁽¹⁾	$	27,165		$	23,150		$	26,592		$	26,631		$	16,455

Non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	284		$	284		$	279		$	279		$	278
Owner occupied		414			424			431			435			444
Multifamily residential		—			—			—			—			—
Nonresidential properties		—			—			—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾		698			708			710			714			722
Total non-performing assets ⁽²⁾	$	27,863		$	23,858		$	27,302		$	27,345		$	17,177

Accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	1,766		$	1,779		$	1,792		$	1,807		$	1,821
Owner occupied		1,959			2,012			2,038			2,062			2,116
Multifamily residential		—			—			—			—			—
Nonresidential properties		629			655			644			652			672
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		196			203			209			215			222
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	4,550		$	4,649		$	4,683		$	4,736		$	4,831
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	32,413		$	28,507		$	31,985		$	32,081		$	22,008
Total non-performing assets to total assets		0.88	%		0.76	%		0.87	%		0.90	%		0.57	%

(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,
	2025						2024
	Average						Average
	Outstanding				Average		Outstanding				Average
	Balance		Interest		Yield/Rate ⁽¹⁾		Balance		Interest		Yield/Rate ⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽²⁾	$	2,499,268	$	41,486	6.59	%	$	2,096,592	$	32,945	6.25	%
Securities ⁽³⁾		418,513		3,913	3.71	%		548,708		5,324	3.86	%
Other ⁽⁴⁾		119,262		1,448	4.82	%		210,057		3,024	5.73	%
Total interest-earning assets		3,037,043		46,847	6.12	%		2,855,357		41,293	5.75	%
Non-interest-earning assets		96,095						107,153
Total assets	$	3,133,138					$	2,962,510
Interest-bearing liabilities:
NOW/IOLA	$	78,526	$	137	0.69	%	$	74,690	$	174	0.93	%
Money market		958,277		9,831	4.07	%		711,385		8,318	4.65	%
Savings ⁽⁵⁾		119,159		28	0.09	%		122,722		27	0.09	%
Certificates of deposit		698,019		6,553	3.72	%		655,562		6,926	4.20	%
Total deposits		1,853,981		16,549	3.54	%		1,564,359		15,445	3.93	%
Borrowings		521,100		5,050	3.84	%		660,312		6,825	4.11	%
Total interest-bearing liabilities		2,375,081		21,599	3.61	%		2,224,671		22,270	3.98	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		199,922		—				185,543		—
Other non-interest-bearing liabilities		31,406		—				49,702		—
Total non-interest-bearing liabilities		231,328		—				235,245		—
Total liabilities		2,606,409		21,599				2,459,916		22,270
Total equity		526,729						502,594
Total liabilities and total equity	$	3,133,138			3.61	%	$	2,962,510			3.98	%
Net interest income			$	25,248					$	19,023
Net interest rate spread ⁽⁶⁾					2.51	%					1.77	%
Net interest-earning assets ⁽⁷⁾	$	661,962					$	630,686
Net interest margin⁽⁸⁾					3.30	%					2.65	%
Average interest-earning assets to interest-bearing liabilities					127.87	%					128.35	%

(1)	Annualized where appropriate.
(2)	Loans include loans and mortgage loans held for sale, at fair value.
(3)	Securities include available-for-sale securities and held-to-maturity securities.
(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5)	For the three months ended September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $13.2 million, were reclassified to Savings.
(6)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries Average Balance Sheets

	Nine Months Ended September 30,
	2025							2024
	Average							Average
	Outstanding				Average			Outstanding				Average
	Balance		Interest		Yield/Rate ⁽¹⁾			Balance		Interest		Yield/Rate ⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans⁽²⁾	$	2,439,280	$	118,913		6.52	%	$	2,038,879	$	94,890		6.22	%
Securities ⁽³⁾		445,130		12,680		3.81	%		562,451		16,429		3.90	%
Other ⁽⁴⁾		135,600		5,111		5.04	%		196,668		8,432		5.73	%
Total interest-earning assets		3,020,010		136,704		6.05	%		2,797,998		119,751		5.72	%
Non-interest-earning assets		103,059							106,500
Total assets	$	3,123,069						$	2,904,498
Interest-bearing liabilities:
NOW/IOLA	$	73,034	$	352		0.64	%	$	76,817	$	543		0.94	%
Money market		884,115		27,172		4.11	%		618,725		21,819		4.71	%
Savings ⁽⁵⁾		118,656		84		0.09	%		125,296		86		0.09	%
Certificates of deposit		754,531		21,689		3.84	%		640,369		19,664		4.10	%
Total deposits		1,830,336		49,297		3.60	%		1,461,207		42,112		3.85	%
Borrowings		536,851		15,530		3.87	%		703,775		21,889		4.15	%
Total interest-bearing liabilities		2,367,187		64,827		3.66	%		2,164,982		64,001		3.95	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		199,978		—					191,087		—
Other non-interest-bearing liabilities		37,206		—					51,061		—
Total non-interest-bearing liabilities		237,184		—					242,148		—
Total liabilities		2,604,371		64,827					2,407,130		64,001
Total equity		518,698							497,368
Total liabilities and total equity	$	3,123,069				3.66	%	$	2,904,498				3.95	%
Net interest income			$	71,877						$	55,750
Net interest rate spread⁽⁶⁾						2.39	%						1.77	%
Net interest-earning assets ⁽⁷⁾	$	652,823						$	633,016
Net interest margin ⁽⁸⁾						3.18	%						2.66	%
Average interest-earning assets to
interest-bearing liabilities						127.58	%						129.24	%

(1)	Annualized where appropriate.
(2)	Loans include loans and mortgage loans held for sale, at fair value.
(3)	Securities include available-for-sale securities and held-to-maturity securities.
(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
(5)	For the nine months ended September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $13.7 million, were reclassified to Savings.
(6)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(7)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(8)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries Other Data

	As of
	September 30,		June 30,		March 31,		December 31,		September 30,
	2025		2025		2025		2024		2024
Other Data
Common shares issued		24,886,711		24,886,711		24,886,711		24,886,711		24,886,711
Less treasury shares		885,586		901,911		920,520		925,497		1,067,248
Common shares outstanding at end of period		24,001,125		23,984,800		23,966,191		23,961,214		23,819,463

Book value per common share	$	12.70	$	12.34	$	12.05	$	11.71	$	11.74
Tangible book value per common share	$	12.70	$	12.34	$	12.05	$	11.71	$	11.74

Contact:

Sergio J. Vaccaro

sergio.vaccaro@poncebank.net

718-931-9000

Ponce Financial Group, Inc. Reports Third Quarter 2025 Results