First Quarter 2026 Highlights (Compared to Prior Periods):
Net income available to common stockholders was $8.3 million, or $0.36 per diluted share for the three months ended March 31, 2026, as compared to net income available to common stockholders of $9.9 million, or $0.42 per diluted share for the three months ended December 31, 2025 and net income available to common stockholders of $5.7 million, or $0.25 per diluted share for the three months ended March 31, 2025. Total net income for the three months ended March 31, 2026 was $8.6 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended March 31, 2026.
Included in the $8.3 million of net income available to common stockholders for the first quarter of 2026 results is $48.7 million in total interest and dividend income and $2.0 million in non-interest income, offset by $20.4 million in interest expense, $17.2 million in non-interest expense, $2.7 million in provision for income taxes, $1.7 million in provision for credit losses and $0.3 million in dividends on preferred shares.
Net interest income of $28.2 million for the first quarter of 2026 increased $0.3 million, or 1.05%, from the prior quarter and increased $6.0 million, or 27.13%, from the same quarter last year.
Net interest margin was 3.61% for the first quarter of 2026, versus 3.57% for the prior quarter and 2.98% for the same quarter last year.
Cash and equivalents were $117.2 million as of March 31, 2026, a decrease of $8.9 million, or 7.06%, from $126.2 million as of December 31, 2025.
Securities totaled $350.7 million as of March 31, 2026, a decrease of $14.5 million, or 3.97%, from $365.2 million as of December 31, 2025 primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of $3.0 million.
Net loans receivable were $2.70 billion as of March 31, 2026, an increase of $99.4 million, or 3.82%, from $2.60 billion as of December 31, 2025.
Deposits were $2.13 billion as of March 31, 2026, an increase of $87.2 million, or 4.26%, from $2.05 billion as of December 31, 2025.
President and Chief Executive Officer's Comments
Carlos P. Naudon, Ponce Financial Group, Inc.'s President and CEO, stated "Our disciplined execution continues to serve Ponce well. Our diluted earnings per share of $0.36 this quarter is up 44% vs the same quarter last year and our book value per share of $13.49 is up $1.44 or 12% over the same period. Net interest margin is up 4 basis points versus last quarter and 63 basis points vs the same quarter last year. Our non-performing assets went down this quarter by 22 basis points and now stand at 62 basis points of total assets. Our capital ratios continue to be well in excess of regulatory requirements. We remain committed to the communities we serve, and we'll continue investing in our people and in technology to improve our efficiency."
Executive Chairman's Comment
Steven A. Tsavaris, Ponce Financial Group's Executive Chairman added "We're pleased with our business activity during the quarter and by our loan and deposit growth. We continue to make progress towards our commitments under the U.S. Treasury's Emergency Capital Investment Program and we're one quarter away from achieving 16 quarters of a cumulative deep impact lending percentage of more than 60%. After 15 quarters, including the quarter ended March 31, 2026, we are at 82% deep impact lending."
The table below indicates the Key Metrics at or for the three months ended:
At or for the Three Months Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Performance Ratios:
Return on average assets (1)
1.07
%
1.26
%
0.82
%
0.79
%
0.77
%
Return on common equity (1)
10.37
%
12.50
%
8.10
%
7.88
%
7.97
%
Net interest margin (1) (2)
3.61
%
3.57
%
3.30
%
3.27
%
2.98
%
Non-interest expense to average assets (1)
2.14
%
2.06
%
2.10
%
2.18
%
2.19
%
Efficiency ratio (3)
56.96
%
52.95
%
62.15
%
63.69
%
68.70
%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)
21.23
%
23.00
%
24.08
%
22.65
%
22.84
%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)
12.11
%
12.98
%
13.39
%
12.49
%
12.51
%
Tier 1 capital to total assets (Ponce Financial Group)
17.22
%
17.27
%
17.33
%
17.13
%
16.84
%
Total capital to risk-weighted assets (Bank only)
20.00
%
21.63
%
21.79
%
21.22
%
21.38
%
Common equity Tier 1 capital to risk-weighted assets (Bank only)
18.97
%
20.53
%
20.66
%
20.15
%
20.35
%
Tier 1 capital to total assets (Bank only)
16.09
%
16.12
%
16.08
%
15.99
%
15.61
%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans
0.96
%
0.97
%
0.98
%
0.97
%
0.96
%
Allowance for credit losses on loans as a percentage of nonperforming loans
128.93
%
94.74
%
88.88
%
101.01
%
84.15
%
Net (charge-offs) recoveries to average outstanding loans (1)
(0.08
%)
(0.13
%)
(0.03
%)
(0.04
%)
(0.04
%)
Non-performing loans as a percentage of total assets
0.62
%
0.83
%
0.88
%
0.76
%
0.88
%
Other:
Number of offices
17
17
18
17
18
Number of full-time equivalent employees
218
216
209
206
211
(1) Annualized.(2) Net interest margin represents net interest income divided by average total interest-earning assets.(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
Summary of Results of Operations
Net income for the three months ended March 31, 2026 was $8.6 million compared to net income of $10.1 million for the three months ended December 31, 2025 and net income of $6.0 million for the three months ended March 31, 2025.
The $1.5 million decrease of net income for the three months ended March 31, 2026 compared to the three months ended December 31, 2025 was attributed mainly to a decrease of $1.4 million in non-interest income and increases of $0.6 million non-interest expense and $0.6 million in provision for credit losses, offset by an increase of $0.3 million in net interest income and a decrease of $0.8 million in provision for income taxes.
The $2.7 million increase of net income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was largely due to an increase of $6.0 million in net interest income, offset by increases of $1.9 million in provision for credit losses, $0.7 million in provision for income taxes and $0.4 million in non-interest expense and a decrease of $0.3 million in non-interest income.
Net Interest Income and Net Interest Margin
Net interest income for the three months ended March 31, 2026, increased $0.3 million, or 1.05%, to $28.2 million compared to $27.9 million for the three months ended December 31, 2025 and increased $6.0 million, or 27.13%, compared to $22.2 million for the three months ended March 31, 2025.
The $0.3 million increase in net interest income from the three months ended December 31, 2025 was attributable to decreases of $0.5 million in total interest expense and $0.2 million in total interest and dividend income. The $6.0 million increase in net interest income from the three months ended March 31, 2025 was attributable to an increase of $4.7 million in total interest and dividend income and a decrease of $1.4 million in total interest expense.
Net interest margin was 3.61% for the three months ended March 31, 2026 compared to 3.57% for the prior quarter, an increase of 4bps and 2.98% for the same period last year, an increase of 63bps.
Non-interest Income
Non-interest income for the three months ended March 31, 2026, was $2.0 million, a decrease of $1.4 million, or 41.30%, compared to $3.5 million for the three months ended December 31, 2025, a decrease of $0.3 million, or 14.24%, compared to the three months ended March 31, 2025.
The $1.4 million decrease in non-interest income from the three months ended December 31, 2025 was largely attributable to a decrease of $0.5 million in other non-interest income, grant income of $0.4 million which had been recognized in the prior quarter and a decrease of $0.4 million in late and prepayment charges.
The $0.3 million decrease in non-interest income from the three months ended March 31, 2025 was largely attributable to a decrease of $0.4 million in income on sale of SBA loans.
Non-interest Expense
Non-interest expense for the three months ended March 31, 2026 was $17.2 million, an increase of $0.6 million, or 3.64%, compared to $16.6 million for the three months ended December 31, 2025 and an increase of $0.4 million, or 2.08%, compared to $16.9 million for the three months ended March 31, 2025.
The $0.6 million increase in non-interest expense from the three months ended December 31, 2025 was mainly attributable to increases of $0.6 million in compensation and benefits, $0.3 million in federal deposit insurance and regulatory assessment and $0.1 million in marketing and promotional expenses, partially offset by a decrease of $0.4 million in occupancy and equipment.
The $0.4 million increase in non-interest expense from the three months ended March 31, 2025 was mainly attributable to increases of $0.8 million in compensation and benefit and $0.1 million in marketing and promotional expenses, partially offset by decreases of $0.3 million in direct loan expenses, $0.2 million in occupancy and equipment and $0.2 million in other operating expenses.
Credit Quality:
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $23.6 million at March 31, 2026 compared to $30.2 million at December 31, 2025 and $32.0 million at March 31, 2025.
During the three months ended March 31, 2026, a credit loss provision of $1.7 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. During the three months ended December 31, 2025, a credit loss provision of $1.1 million on loans was recorded, consisting of $1.5 million charged on the funded portion and $0.4 million benefit on the unfunded portion on loans. During the three months ended March 31, 2025, a credit loss benefit of $0.3 million on loans was recorded, consisting of $0.7 million charged on the funded portion on loans and a benefit of $1.0 million on the unfunded portion on loans.
Balance Sheet Summary
Total assets increased $76.8 million, or 2.38%, to $3.30 billion as of March 31, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $99.4 million in net loans receivable, $2.0 million in other assets, $1.4 million in accrued interest receivable and $0.2 million in deferred tax assets, partially offset by decreases of $9.5 million in held-to-maturity securities, $8.9 million in cash and cash equivalents, $5.0 million in available-for-sale securities, $1.3 million in mortgage loans held for sale, $1.1 million in Federal Home Loan Bank of New York stock and $0.5 million in premises and equipment, net.
Total liabilities increased $67.0 million, or 2.50%, to $2.75 billion as of March 31, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $87.2 million in deposits, $4.2 million in other liabilities and $0.6 million in accrued interest payable, partially offset by a decrease of $25.0 million in borrowings.
Total stockholders' equity increased $9.8 million, or 1.81%, to $551.4 million as of March 31, 2026, from $541.5 million as of December 31, 2025. The $9.8 million increase in stockholders' equity was largely attributable to $8.6 million in net income, $0.6 million impact to additional paid in capital as a result of share-based compensation, $0.6 million from release of ESOP shares and $0.2 million from exercise of stock options and $0.1 million in other comprehensive income, offset by $0.3 million related to the dividend paid on preferred shares during the quarter ended March 31, 2026.
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 global economy, including negative changes that may arise from armed conflict and geopolitical instability; 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 SubsidiariesConsolidated Statements of Financial Condition(Dollars in thousands, except for share data)
As of
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
ASSETS
Cash and due from banks:
Cash
$
27,429
$
28,511
$
29,296
$
35,767
$
32,113
Interest-bearing deposits
89,817
97,643
117,283
90,872
97,780
Total cash and cash equivalents
117,246
126,154
146,579
126,639
129,893
Available-for-sale securities, at fair value
87,150
92,196
94,822
96,562
103,570
Held-to-maturity securities, at amortized cost
263,514
272,982
285,125
336,879
358,024
Placement with banks
249
249
249
249
249
Mortgage loans held for sale, at fair value
2,127
3,388
5,794
5,703
8,567
Loans receivable, net
2,698,649
2,599,258
2,490,046
2,458,712
2,370,931
Accrued interest receivable
19,274
17,905
18,903
19,126
19,008
Premises and equipment, net
15,159
15,638
16,129
16,067
16,417
Right of use assets
27,633
27,583
28,295
28,806
29,496
Federal Home Loan Bank of New York stock (FHLBNY), at cost
28,180
29,309
25,945
26,620
25,807
Federal Reserve Bank of New York stock (FRBNY), at cost
10,706
10,698
—
—
—
Deferred tax assets
11,729
11,501
12,402
12,143
11,629
Other assets
19,141
17,109
32,790
26,363
16,245
Total assets
$
3,300,757
$
3,223,970
$
3,157,079
$
3,153,869
$
3,089,836
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
$
2,133,795
$
2,046,635
$
2,063,081
$
2,053,151
$
2,017,848
Borrowings
571,100
596,100
521,100
536,100
521,100
Operating lease liabilities
29,429
29,353
30,028
30,501
31,126
Accrued interest payable
4,338
3,788
4,372
4,161
4,628
Other liabilities
10,732
6,545
8,663
8,868
1,248
Total liabilities
2,749,394
2,682,421
2,627,244
2,632,781
2,575,950
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
(5,738
)
(6,164
)
(7,270
)
(7,404
)
(7,641
)
Additional paid-in-capital
209,219
208,604
208,909
208,275
207,888
Retained earnings
143,674
135,332
125,477
119,250
113,432
Accumulated other comprehensive loss
(10,680
)
(10,820
)
(11,586
)
(13,047
)
(13,515
)
Unearned compensation ─ ESOP
(10,361
)
(10,652
)
(10,944
)
(11,235
)
(11,527
)
Total stockholders' equity
551,363
541,549
529,835
521,088
513,886
Total liabilities and stockholders' equity
$
3,300,757
$
3,223,970
$
3,157,079
$
3,153,869
$
3,089,836
Ponce Financial Group, Inc. and SubsidiariesConsolidated Statements of Operations(Dollars in thousands, except per share data)
Three Months Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Interest and dividend income:
Interest on loans receivable
$
43,982
$
43,599
$
41,486
$
40,291
$
37,136
Interest on deposits due from banks
770
1,209
978
807
1,668
Interest and dividend on securities and FHLBNY stock
3,910
4,013
4,383
4,762
5,193
Total interest and dividend income
48,662
48,821
46,847
45,860
43,997
Interest expense:
Interest on certificates of deposit
6,415
6,706
6,553
7,382
7,754
Interest on other deposits
8,630
9,106
9,996
9,058
8,554
Interest on borrowings
5,391
5,075
5,050
4,994
5,486
Total interest expense
20,436
20,887
21,599
21,434
21,794
Net interest income
28,226
27,934
25,248
24,426
22,203
Provision (benefit) for credit losses
1,656
1,078
1,364
1,626
(285
)
Net interest income after provision (benefit) for credit losses
26,570
26,856
23,884
22,800
22,488
Non-interest income:
Service charges and fees
539
542
539
511
525
Brokerage commissions
—
23
8
—
4
Late and prepayment charges
726
1,173
385
530
697
Income on sale of mortgage loans
120
139
166
169
148
Income on sale of SBA loans
—
—
—
—
404
Grant income
—
428
429
428
—
Other
657
1,174
(35
)
422
