Ponce Bank receives approval for an award of approximately $0.5 million as part of the CDFI Bank Enterprise Award Program and received the previously announced $3.7 million in cash that was granted as part of CDFI Equitable Recovery Program
September 27 2023 - 4:32PM
Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the
holding company for Ponce Bank (the “Bank”), today announced that
the Bank received approval for a grant in the amount of $451,025 as
part of the Bank Enterprise Award Program from the Community
Development Financial Institutions ("CDFI"). Awards under the Bank
Enterprise Award Program are subject to the program terms and must
be used for qualified activities, which include providing loans,
investments and financial services to residents and businesses in
distressed communities.
The Bank also announced today that it has
received the previously announced $3.7 million in cash that was
granted from the U.S. Treasury as part of the Community Development
Financial Institutions ("CDFI") Equitable Recovery Program ("ERP")
which aims to help CDFI's further their mission of helping low and
low-to-moderate income communities recover from the impact of the
COVID-19 pandemic. The ERP grant must be used for eligible
activities and the Company must provide reporting in accordance
with the ERP requirements.
“There’s been a lot of talk lately about which
banks are “systemically important” and I think that one just needs
to read the purpose of this ERP program to understand that CDFIs
like Ponce Bank are critical to a huge swath of our society that
isn’t supported by the traditional banking system” said Ponce Bank
CEO Carlos Naudon. He added “We proved throughout the pandemic that
Community Banks, CDFIs and MDIs are able to strategically deploy
capital, where it’s needed most, both quickly and efficiently. If
that’s not systemically important then I’m not sure I understand
the term.”
Ponce Bank has a long history of service to low
and low-to-moderate income communities that these funds are
targeted to support. The Bank was founded in the Bronx in 1960 at a
time when most financial institutions had fled the neighborhoods
and has grown to serve immigrant communities throughout the greater
New York City area with 13 branches and 6 mortgage loan offices in
the Bronx, Brooklyn, Queens, Manhattan and Bergenfield and Union
City, NJ.
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;
anticipated losses with respect to the Company's investment in
Grain; 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.
Contact: Frank Perez frank.perez@poncebank.net
718-981-9000
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