Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the
holding company for Ponce Bank (the “Bank”), today announced
results for the third quarter of 2023.
Third Quarter 2023 Highlights (Compared
to Prior Periods):
- Net income of $2.6
million, or $0.12 per diluted share for the three months ended
September 30, 2023, as compared to net loss of ($0.1) million,
or $0.00 per diluted share for the three months ended June 30,
2023 and net loss of ($14.7) million, or ($0.64) per diluted share
for the three months ended September 30, 2022.
- Included in the
$2.6 million of net income for the third quarter of 2023 results is
$33.5 million in interest and dividend income and $5.6 million in
non-interest income, offset by a $17.3 million in non-interest
expense and $17.0 million in interest expense.
- Net interest income
of $16.5 million for the third quarter of 2023 increased $0.3
million, or 1.60%, from the prior quarter and decreased $1.1
million, or 6.07%, from the same quarter last year.
- Net interest margin
was 2.58% for the third quarter of 2023, decreased from 2.65% for
the prior quarter and from 3.59% for the same quarter last
year.
- Cash and
equivalents were $117.0 million as of September 30, 2023, an
increase of $62.7 million, or 115.25%, from December 31, 2022,
as we decided to keep ample sources of liquidity at hand while
taking advantage of the positive spread between our interest
bearing overnight deposits at the Fed and borrowing costs under the
Bank Term Funding Program ("BTFP").
- Securities totaled
$587.8 million as of September 30, 2023, a decrease of $52.5
million, or 8.20%, from December 31, 2022 primarily due to a call
on one of the securities amounting to $10.0 million, maturities on
two securities amounting to $3.0 million and regular principal
payments.
- Net loans
receivable were $1.79 billion as of September 30, 2023, an
increase of $294.5 million, or 19.72%, from December 31, 2022.
- Deposits were $1.40
billion as of September 30, 2023, an increase of $148.7
million, or 11.87%, from December 31, 2022.
President and Chief Executive Officer’s
Comments
Carlos P. Naudon, Ponce Financial Group’s
President and CEO, stated “During the quarter, we completed our
share buyback program at a cost of $8.91 per share, almost a 20%
discount to our book value at September 30, 2023. Despite the
headwinds caused by the increase in interest rates, which impacts
our AOCI and drives down our net interest margin, we were able to
increase book value per share by 5 cents quarter over quarter as
well as grow our net interest income for the second quarter in a
row. As previously announced, in addition to the $3.7 million grant
received this quarter, we have been informed that we will receive
an additional grant of approximately $0.5 million from the
Community Development Financial Institutions ("CDFI") fund in the
fourth quarter of 2023.
We continue to show strong levels of capital and
liquidity. On the capital front, our total capital ratio at Ponce
Bank stands at 25.10% well in excess of regulatory requirements. In
terms of liquidity, our liquid assets plus borrowing capacity at
the Federal Home Loan Bank of New York ("FHLBNY") stand at $695.0
million, more than two times of our uninsured deposits of $334.0
million. We remain committed to the communities we
serve, our Minority Depository Institution (“MDI”)/CDFI status and
continuing 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 “While the increase in rates continues to
put pressure on our operations, we still see resiliency on our
client base, strong credit conditions and loan demand. While our
credit metrics continue to improve, we will be prudent on our
underwriting and balance sheet management even at the expense of
loan growth.”
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): |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Return on average assets (1) |
|
|
0.39 |
% |
|
|
(0.01 |
%) |
|
|
0.06 |
% |
|
|
(1.62 |
%) |
|
|
(2.80 |
%) |
Return on average equity
(1) |
|
|
2.11 |
% |
|
|
(0.07 |
%) |
|
|
0.27 |
% |
|
|
(7.28 |
%) |
|
|
(11.25 |
%) |
Net interest rate spread (1)
(2) |
|
|
1.58 |
% |
|
|
1.66 |
% |
|
|
1.78 |
% |
|
|
2.13 |
% |
|
|
3.08 |
% |
Net interest margin (1)
(3) |
|
|
2.58 |
% |
|
|
2.65 |
% |
|
|
2.75 |
% |
|
|
2.97 |
% |
|
|
3.59 |
% |
Non-interest expense to
average assets (1) |
|
|
2.58 |
% |
|
|
2.65 |
% |
|
|
2.79 |
% |
|
|
2.78 |
% |
|
|
4.83 |
% |
Efficiency ratio (4) |
|
|
78.11 |
% |
|
|
96.15 |
% |
|
|
95.88 |
% |
|
|
94.95 |
% |
|
|
132.46 |
% |
Average interest-earning
assets to average interest- bearing liabilities |
|
|
137.92 |
% |
|
|
141.14 |
% |
|
|
148.20 |
% |
|
|
152.30 |
% |
|
|
162.67 |
% |
Average equity to average
assets |
|
|
18.32 |
% |
|
|
19.21 |
% |
|
|
20.91 |
% |
|
|
22.32 |
% |
|
|
24.90 |
% |
|
|
At or for the Three Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
Capital Ratios
(Annualized): |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Total capital to risk weighted assets (Bank only) |
|
|
25.10 |
% |
|
|
26.30 |
% |
|
|
27.54 |
% |
|
|
30.53 |
% |
|
|
33.39 |
% |
Tier 1 capital to risk
weighted assets (Bank only) |
|
|
23.85 |
% |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
|
|
32.13 |
% |
Common equity Tier 1 capital
to risk-weighted assets (Bank only) |
|
|
23.85 |
% |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
|
|
32.13 |
% |
Tier 1 capital to average
assets (Bank only) |
|
|
17.51 |
% |
|
|
17.95 |
% |
|
|
19.51 |
% |
|
|
20.47 |
% |
|
|
22.91 |
% |
|
|
At or for the Three Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
Asset Quality Ratios
(Annualized): |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Allowance for loan losses as a percentage of total loans |
|
|
1.51 |
% |
|
|
1.64 |
% |
|
|
1.77 |
% |
|
|
2.27 |
% |
|
|
1.77 |
% |
Allowance for loan losses as a
percentage of nonperforming loans |
|
|
169.49 |
% |
|
|
167.06 |
% |
|
|
149.73 |
% |
|
|
252.33 |
% |
|
|
118.43 |
% |
Net (charge-offs) recoveries
to average outstanding loans (1) |
|
|
(0.34 |
%) |
|
|
(0.41 |
%) |
|
|
(0.57 |
%) |
|
|
(0.85 |
%) |
|
|
(0.52 |
%) |
Non-performing loans as a
percentage of total gross loans |
|
|
0.89 |
% |
|
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
|
|
1.50 |
% |
Non-performing loans as a
percentage of total assets |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
Total non-performing assets as
a percentage of total assets |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
Total non-performing assets
and accruing modifications to borrowers experiencing financial
difficulty as a percentage of total assets(5) |
|
|
0.82 |
% |
|
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
|
|
1.16 |
% |
(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 noninterest
income.(5) For periods in 2023, 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. For periods in 2022, the balances
only include troubled debt restructurings.Summary of
Results of Operations
Net income for the three months ended
September 30, 2023 was $2.6 million compared to net loss of
($0.1) million for the three months ended June 30, 2023 and net
loss of ($14.7) million for the three months ended
September 30, 2022. The increase of net income for the three
months ended September 30, 2023 compared to the three months
ended June 30, 2023 was attributed mainly to increases in
non-interest income and net interest income and a decrease in
provision for credit loss, partially offset by increases provision
for income taxes and non-interest expense. The increase of net
income for the three months ended September 30, 2023 compared
to the three months ended September 30, 2022 was largely due
to decreases in provision for credit loss and non-interest expense
and an increase in non-interest income, partially offset by an
increase in provision for income taxes and a decrease in net
interest income.
Net income for the nine months ended
September 30, 2023 was $2.8 million compared to a net loss of
($20.8) million for the nine months ended September 30, 2022.
The increase in net income was attributable to decreases in
non-interest expense and provision for credit losses and an
increase in non-interest income, partially offset by an increase in
provision for income taxes and a decrease in net interest
income.
Net Interest Income and Net
Margin
Net interest income for the three months ended
September 30, 2023, increased $0.3 million, or 1.60%, to $16.5
million compared to $16.3 million for the three months ended June
30, 2023 and decreased $1.1 million, or 6.07%, compared to $17.6
million for the three months end September 30, 2022.
Net interest margin was 2.58% for the three
months ended September 30, 2023 compared to 2.65% for the
prior quarter, a decrease of 7bps and 3.59% for the same period
last year, a decrease of 101bps. The decrease in net interest
margin was a result of an increase in the cost of funds driven by
higher interest rates.
Non-interest Income
Non-interest income for the three months ended
September 30, 2023, was $5.6 million, an increase of $4.1
million, or 277.14%, compared to the three months ended
June 30, 2023 and an increase of $4.1 million, or 256.82%,
compared to the three months ended September 30, 2022.
The $4.1 million increase in non-interest income
for the three months ended September 30, 2023 compared to the
three months ended June 30, 2023 and the three months ended
September 30, 2022 was largely attributable to a grant of $3.7
million received in the third quarter of 2023 from the U.S.
Treasury as part of the CDFI Equitable Recovery Program and a $0.5
million assignment fee that was recognized in the third quarter of
2023.
Non-interest income for the nine months ended
September 30, 2023, was $8.9 million, an increase of $3.0
million, or 49.41%, compared to $6.0 million for the nine months
ended September 30, 2022. The $3.0 million increase from the
nine months ended September 30, 2022 was attributable to a
grant of $3.7 million received from the U.S. Treasury and an
increase of $1.6 million in late and prepayment charges, partially
offset by a decrease of $1.8 million in loan origination.
Non-interest Expense
Non-interest expense for the three months ended
September 30, 2023, was $17.3 million, an increase of $0.2
million, or 1.33%, compared to $17.1 million for the three months
ended June 30, 2023 and a decrease of $8.1 million, or 31.87%,
compared to $25.4 million for the three months ended
September 30, 2022.
The $8.1 million decrease from the three months
ended September 30, 2022 was mainly attributable to $8.9
million of Grain consumer microloans write-offs during the third
quarter of 2022 and a decrease of $0.3 million in direct loan
expense, partially offset by increases of $0.6 million in data
processing expenses and $0.4 million in professional fees.
Non-interest expense for the nine months ended
September 30, 2023, was $50.8 million, a decrease of $19.3
million, or 27.54%, compared to the nine months ended
September 30, 2022. The $19.3 million decrease of non-interest
expense from the nine months ended September 30, 2022 was
attributable to $18.5 million of Grain consumer microloan write-off
during the corresponding period last year compared with $1.3
million of Grain consumer microloan recoveries recognized during
the current period. The decrease in non-interest expense was also
impacted by a $5.0 million contribution to the Ponce De Leon
Foundation during the corresponding period last year, partially
offset by increases of $1.3 million in provision for contingencies,
$1.3 million in data processing expenses, $1.0 million in
compensation and benefits and $0.7 million in professional
fees.
Balance Sheet Summary
Total assets increased $311.9 million, or
13.49%, to $2.62 billion as of September 30, 2023 from $2.31
billion as of December 31, 2022. The increase in total assets
is largely attributable to increases of $294.5 million in net loans
receivable, $62.7 million in cash and cash equivalents, $12.1
million in mortgage loans held for sale and $2.5 million in other
assets, offset by decreases of $39.8 million in held-to-maturity
securities, $12.8 million in available-for-sale securities, and
$5.8 million in Federal Home Loan Bank of New York stock.
Total liabilities increased $319.5 million, or
17.56%, to $2.14 billion as of September 30, 2023 from $1.82
billion as of December 31, 2022. The increase in total
liabilities was largely attributable to increases of $157.7 million
in borrowings and $148.7 million in deposits.
Total stockholders’ equity decreased $7.6
million, or 1.55%, to $485.1 million as of September 30, 2023,
from $492.7 million as of December 31, 2022. This decrease in
stockholders’ equity was largely attributable to $11.0 million in
share repurchases and an increase of $2.6 million in other
comprehensive loss, partially offset by increases of $2.8 million
in net income, $1.2 million in share-based compensation, $1.1
million as a result of implementation of CECL and $0.8 million in
ESOP.
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.
Ponce Financial Group, Inc. and
SubsidiariesConsolidated Statements of Financial
Condition(Dollars in thousands, except for share
data)
|
|
|
As of |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
$ |
26,046 |
|
|
$ |
31,162 |
|
|
$ |
26,951 |
|
|
$ |
31,977 |
|
|
$ |
34,007 |
|
Interest-bearing deposits |
|
90,966 |
|
|
|
212,627 |
|
|
|
157,736 |
|
|
|
22,383 |
|
|
|
28,514 |
|
Total cash and cash equivalents |
|
117,012 |
|
|
|
243,789 |
|
|
|
184,687 |
|
|
|
54,360 |
|
|
|
62,521 |
|
Available-for-sale securities,
at fair value |
|
116,753 |
|
|
|
123,720 |
|
|
|
128,320 |
|
|
|
129,505 |
|
|
|
131,977 |
|
Held-to-maturity securities,
at amortized cost(1) |
|
471,065 |
|
|
|
481,952 |
|
|
|
491,649 |
|
|
|
510,820 |
|
|
|
494,297 |
|
Placement with banks |
|
996 |
|
|
|
996 |
|
|
|
1,245 |
|
|
|
1,494 |
|
|
|
2,490 |
|
Mortgage loans held for sale,
at fair value |
|
14,103 |
|
|
|
10,070 |
|
|
|
2,987 |
|
|
|
1,979 |
|
|
|
3,357 |
|
Loans receivable, net |
|
1,787,607 |
|
|
|
1,695,047 |
|
|
|
1,614,428 |
|
|
|
1,493,127 |
|
|
|
1,392,553 |
|
Accrued interest
receivable |
|
16,624 |
|
|
|
16,054 |
|
|
|
15,435 |
|
|
|
15,049 |
|
|
|
14,063 |
|
Premises and equipment,
net |
|
16,453 |
|
|
|
16,856 |
|
|
|
17,215 |
|
|
|
17,446 |
|
|
|
17,759 |
|
Right of use assets |
|
32,110 |
|
|
|
32,435 |
|
|
|
33,147 |
|
|
|
33,423 |
|
|
|
34,121 |
|
Federal Home Loan Bank of New
York stock (FHLBNY), at cost |
|
18,870 |
|
|
|
19,195 |
|
|
|
19,209 |
|
|
|
24,661 |
|
|
|
14,272 |
|
Deferred tax assets |
|
15,984 |
|
|
|
15,924 |
|
|
|
15,413 |
|
|
|
16,137 |
|
|
|
13,822 |
|
Other assets |
|
16,286 |
|
|
|
15,919 |
|
|
|
15,799 |
|
|
|
13,988 |
|
|
|
11,170 |
|
Total assets |
$ |
2,623,863 |
|
|
$ |
2,671,957 |
|
|
$ |
2,539,534 |
|
|
$ |
2,311,989 |
|
|
$ |
2,192,402 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
1,401,132 |
|
|
$ |
1,442,013 |
|
|
$ |
1,336,877 |
|
|
$ |
1,252,412 |
|
|
$ |
1,351,189 |
|
Operating lease liabilities |
|
33,459 |
|
|
|
33,716 |
|
|
|
34,308 |
|
|
|
34,532 |
|
|
|
35,081 |
|
Accrued interest payable |
|
8,385 |
|
|
|
4,704 |
|
|
|
1,767 |
|
|
|
1,390 |
|
|
|
854 |
|
Advance payments by borrowers for taxes and insurance |
|
13,743 |
|
|
|
12,402 |
|
|
|
14,902 |
|
|
|
9,724 |
|
|
|
10,589 |
|
Borrowings |
|
675,100 |
|
|
|
682,100 |
|
|
|
648,375 |
|
|
|
517,375 |
|
|
|
286,375 |
|
Other liabilities |
|
6,986 |
|
|
|
6,540 |
|
|
|
7,264 |
|
|
|
3,856 |
|
|
|
7,631 |
|
Total liabilities |
|
2,138,805 |
|
|
|
2,181,475 |
|
|
|
2,043,493 |
|
|
|
1,819,289 |
|
|
|
1,691,719 |
|
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 |
|
|
|
247 |
|
Treasury stock, at cost |
|
(10,975 |
) |
|
|
(5,202 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
— |
|
Additional paid-in-capital |
|
207,626 |
|
|
|
207,287 |
|
|
|
206,883 |
|
|
|
206,508 |
|
|
|
206,092 |
|
Retained earnings |
|
96,902 |
|
|
|
94,312 |
|
|
|
94,399 |
|
|
|
92,955 |
|
|
|
102,169 |
|
Accumulated other comprehensive loss |
|
(20,468 |
) |
|
|
(17,597 |
) |
|
|
(16,629 |
) |
|
|
(17,860 |
) |
|
|
(18,420 |
) |
Unearned compensation ─ ESOP |
|
(13,276 |
) |
|
|
(13,567 |
) |
|
|
(13,859 |
) |
|
|
(14,150 |
) |
|
|
(14,405 |
) |
Total stockholders' equity |
|
485,058 |
|
|
|
490,482 |
|
|
|
496,041 |
|
|
|
492,700 |
|
|
|
500,683 |
|
Total liabilities and stockholders' equity |
$ |
2,623,863 |
|
|
$ |
2,671,957 |
|
|
$ |
2,539,534 |
|
|
$ |
2,311,989 |
|
|
$ |
2,192,402 |
|
(1) Included for the quarterly period ended
September 30, 2023, June 30, 2023 and March 31, 2023 were $0.6
million, $0.9 million and $0.8 million, respectively, related to
the allowance for credit loss on held-to-maturity securities.
Ponce Financial Group, Inc. and
SubsidiariesConsolidated Statements of
Operations(Dollars in thousands, except per share
data)
|
Three Months Ended |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans receivable |
$ |
25,276 |
|
|
$ |
23,015 |
|
|
$ |
19,700 |
|
|
$ |
18,550 |
|
|
$ |
17,058 |
|
Interest on deposits due from banks |
|
1,969 |
|
|
|
1,817 |
|
|
|
197 |
|
|
|
199 |
|
|
|
346 |
|
Interest and dividend on securities and FHLBNY stock |
|
6,261 |
|
|
|
6,223 |
|
|
|
6,459 |
|
|
|
6,184 |
|
|
|
4,230 |
|
Total interest and dividend income |
|
33,506 |
|
|
|
31,055 |
|
|
|
26,356 |
|
|
|
24,933 |
|
|
|
21,634 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on certificates of deposit |
|
4,362 |
|
|
|
3,881 |
|
|
|
3,225 |
|
|
|
1,786 |
|
|
|
855 |
|
Interest on other deposits |
|
5,639 |
|
|
|
4,413 |
|
|
|
2,812 |
|
|
|
3,649 |
|
|
|
1,375 |
|
Interest on borrowings |
|
6,963 |
|
|
|
6,479 |
|
|
|
5,074 |
|
|
|
3,332 |
|
|
|
1,793 |
|
Total interest expense |
|
16,964 |
|
|
|
14,773 |
|
|
|
11,111 |
|
|
|
8,767 |
|
|
|
4,023 |
|
Net interest income |
|
16,542 |
|
|
|
16,282 |
|
|
|
15,245 |
|
|
|
16,166 |
|
|
|
17,611 |
|
Provision (benefit) for credit
losses |
|
535 |
|
|
|
987 |
|
|
|
(174 |
) |
|
|
12,641 |
|
|
|
9,330 |
|
Net interest income after provision (benefit) for credit
losses |
|
16,007 |
|
|
|
15,295 |
|
|
|
15,419 |
|
|
|
3,525 |
|
|
|
8,281 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
516 |
|
|
|
481 |
|
|
|
491 |
|
|
|
481 |
|
|
|
464 |
|
Brokerage commissions |
|
17 |
|
|
|
35 |
|
|
|
15 |
|
|
|
180 |
|
|
|
288 |
|
Late and prepayment charges |
|
899 |
|
|
|
372 |
|
|
|
729 |
|
|
|
263 |
|
|
|
109 |
|
Income on sale of mortgage loans |
|
173 |
|
|
|
82 |
|
|
|
99 |
|
|
|
7 |
|
|
|
116 |
|
Loan origination(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(557 |
) |
|
|
522 |
|
Grant income |
|
3,718 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Loss) gain on sale of premises and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(436 |
) |
Other |
|
304 |
|
|
|
522 |
|
|
|
485 |
|
|
|
63 |
|
|
|
514 |
|
Total non-interest income |
|
5,627 |
|
|
|
1,492 |
|
|
|
1,819 |
|
|
|
437 |
|
|
|
1,577 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
7,566 |
|
|
|
7,425 |
|
|
|
7,446 |
|
|
|
6,501 |
|
|
|
7,377 |
|
Occupancy and equipment |
|
3,588 |
|
|
|
3,724 |
|
|
|
3,570 |
|
|
|
3,928 |
|
|
|
3,611 |
|
Data processing expenses |
|
1,582 |
|
|
|
1,208 |
|
|
|
1,192 |
|
|
|
1,114 |
|
|
|
994 |
|
Direct loan expenses |
|
369 |
|
|
|
345 |
|
|
|
412 |
|
|
|
454 |
|
|
|
654 |
|
Provision for contingencies |
|
391 |
|
|
|
517 |
|
|
|
985 |
|
|
|
(440 |
) |
|
|
519 |
|
Insurance and surety bond premiums |
|
255 |
|
|
|
248 |
|
|
|
265 |
|
|
|
270 |
|
|
|
297 |
|
Office supplies, telephone and postage |
|
301 |
|
|
|
489 |
|
|
|
399 |
|
|
|
375 |
|
|
|
369 |
|
Professional fees |
|
1,693 |
|
|
|
1,904 |
|
|
|
1,455 |
|
|
|
1,571 |
|
|
|
1,251 |
|
Grain (recoveries) and write-off |
|
(69 |
) |
|
|
(346 |
) |
|
|
(914 |
) |
|
|
(515 |
) |
|
|
8,881 |
|
Marketing and promotional expenses |
|
248 |
|
|
|
303 |
|
|
|
128 |
|
|
|
256 |
|
|
|
214 |
|
Directors fees and regulatory assessment |
|
169 |
|
|
|
160 |
|
|
|
155 |
|
|
|
196 |
|
|
|
188 |
|
Other operating expenses |
|
1,223 |
|
|
|
1,112 |
|
|
|
1,268 |
|
|
|
2,055 |
|
|
|
1,061 |
|
Total non-interest expense |
|
17,316 |
|
|
|
17,089 |
|
|
|
16,361 |
|
|
|
15,765 |
|
|
|
25,416 |
|
Income (loss) before income taxes |
|
4,318 |
|
|
|
(302 |
) |
|
|
877 |
|
|
|
(11,803 |
) |
|
|
(15,558 |
) |
Provision (benefit) for income
taxes |
|
1,728 |
|
|
|
(215 |
) |
|
|
546 |
|
|
|
(2,589 |
) |
|
|
(820 |
) |
Net income (loss) |
$ |
2,590 |
|
|
$ |
(87 |
) |
|
$ |
331 |
|
|
$ |
(9,214 |
) |
|
$ |
(14,738 |
) |
Earnings (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.12 |
|
|
$ |
(0.00 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.64 |
) |
Diluted |
$ |
0.12 |
|
|
$ |
(0.00 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.64 |
) |
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
22,272,076 |
|
|
|
23,208,168 |
|
|
|
23,293,013 |
|
|
|
23,168,097 |
|
|
|
23,094,859 |
|
Diluted |
|
22,349,217 |
|
|
|
23,208,168 |
|
|
|
23,324,532 |
|
|
|
23,168,097 |
|
|
|
23,094,859 |
|
(1) Amounts for the quarterly
period ended December 31, 2022 include the reversal of $0.8 million
of loan origination income that had been taken upfront in prior
quarters of 2022 (as opposed to deferred over the life of the
loan).Ponce Financial Group, Inc. and
SubsidiariesConsolidated Statements of
Operations(Dollars in thousands, except per share
data)
|
|
For the Nine Months Ended September
30, |
|
|
|
2023 |
|
|
2022 |
|
|
Variance $ |
|
|
Variance % |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans receivable |
|
$ |
67,991 |
|
|
$ |
51,315 |
|
|
$ |
16,676 |
|
|
|
32.50 |
% |
Interest on deposits due from banks |
|
|
3,983 |
|
|
|
514 |
|
|
|
3,469 |
|
|
|
674.90 |
% |
Interest and dividend on securities and FHLBNY stock |
|
|
18,943 |
|
|
|
5,990 |
|
|
|
12,953 |
|
|
|
216.24 |
% |
Total interest and dividend income |
|
|
90,917 |
|
|
|
57,819 |
|
|
|
33,098 |
|
|
|
57.24 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on certificates of deposit |
|
|
11,468 |
|
|
|
2,361 |
|
|
|
9,107 |
|
|
|
385.73 |
% |
Interest on other deposits |
|
|
12,864 |
|
|
|
2,154 |
|
|
|
10,710 |
|
|
|
497.21 |
% |
Interest on borrowings |
|
|
18,516 |
|
|
|
2,867 |
|
|
|
15,649 |
|
|
|
545.83 |
% |
Total interest expense |
|
|
42,848 |
|
|
|
7,382 |
|
|
|
35,466 |
|
|
|
480.44 |
% |
Net interest income |
|
|
48,069 |
|
|
|
50,437 |
|
|
|
(2,368 |
) |
|
|
(4.69 |
%) |
Provision for credit
losses |
|
|
1,348 |
|
|
|
11,405 |
|
|
|
(10,057 |
) |
|
|
(88.18 |
%) |
Net interest income after provision for credit
losses |
|
|
46,721 |
|
|
|
39,032 |
|
|
|
7,689 |
|
|
|
19.70 |
% |
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
1,488 |
|
|
|
1,349 |
|
|
|
139 |
|
|
|
10.30 |
% |
Brokerage commissions |
|
|
67 |
|
|
|
840 |
|
|
|
(773 |
) |
|
|
(92.02 |
%) |
Late and prepayment charges |
|
|
2,000 |
|
|
|
360 |
|
|
|
1,640 |
|
|
|
455.56 |
% |
Income on sale of mortgage loans |
|
|
354 |
|
|
|
734 |
|
|
|
(380 |
) |
|
|
(51.77 |
%) |
Loan origination |
|
|
— |
|
|
|
1,843 |
|
|
|
(1,843 |
) |
|
|
(100.00 |
%) |
Grant income |
|
|
3,718 |
|
|
|
— |
|
|
|
3,718 |
|
|
|
— |
% |
(Loss) gain on sale of premises and equipment |
|
|
— |
|
|
|
(436 |
) |
|
|
436 |
|
|
|
(100.00 |
%) |
Other |
|
|
1,311 |
|
|
|
1,292 |
|
|
|
19 |
|
|
|
1.47 |
% |
Total non-interest income |
|
|
8,938 |
|
|
|
5,982 |
|
|
|
2,956 |
|
|
|
49.41 |
% |
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
22,437 |
|
|
|
21,413 |
|
|
|
1,024 |
|
|
|
4.78 |
% |
Occupancy and equipment |
|
|
10,882 |
|
|
|
10,040 |
|
|
|
842 |
|
|
|
8.39 |
% |
Data processing expenses |
|
|
3,982 |
|
|
|
2,665 |
|
|
|
1,317 |
|
|
|
49.42 |
% |
Direct loan expenses |
|
|
1,126 |
|
|
|
2,033 |
|
|
|
(907 |
) |
|
|
(44.61 |
%) |
Provision for contingencies |
|
|
1,893 |
|
|
|
566 |
|
|
|
1,327 |
|
|
|
234.45 |
% |
Insurance and surety bond premiums |
|
|
768 |
|
|
|
600 |
|
|
|
168 |
|
|
|
28.00 |
% |
Office supplies, telephone and postage |
|
|
1,189 |
|
|
|
1,180 |
|
|
|
9 |
|
|
|
0.76 |
% |
Professional fees |
|
|
5,052 |
|
|
|
4,333 |
|
|
|
719 |
|
|
|
16.59 |
% |
Contribution to the Ponce De Leon Foundation |
|
|
— |
|
|
|
4,995 |
|
|
|
(4,995 |
) |
|
|
(100.00 |
%) |
Grain (recoveries) and write-off |
|
|
(1,329 |
) |
|
|
18,455 |
|
|
|
(19,784 |
) |
|
|
(107.20 |
%) |
Marketing and promotional expenses |
|
|
679 |
|
|
|
337 |
|
|
|
342 |
|
|
|
101.48 |
% |
Directors fees and regulatory assessment |
|
|
484 |
|
|
|
509 |
|
|
|
(25 |
) |
|
|
(4.91 |
%) |
Other operating expenses |
|
|
3,603 |
|
|
|
2,931 |
|
|
|
672 |
|
|
|
22.93 |
% |
Total non-interest expense |
|
|
50,766 |
|
|
|
70,057 |
|
|
|
(19,291 |
) |
|
|
(27.54 |
%) |
Income (loss) before income taxes |
|
|
4,893 |
|
|
|
(25,043 |
) |
|
|
29,936 |
|
|
|
(119.54 |
%) |
Provision (benefit) for income
taxes |
|
|
2,059 |
|
|
|
(4,256 |
) |
|
|
6,315 |
|
|
|
(148.38 |
%) |
Net income (loss) |
|
$ |
2,834 |
|
|
$ |
(20,787 |
) |
|
$ |
23,621 |
|
|
|
(113.63 |
%) |
Earnings (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.12 |
|
|
$ |
(0.92 |
) |
|
$ |
1.05 |
|
|
|
(113.40 |
%) |
Diluted |
|
$ |
0.12 |
|
|
$ |
(0.92 |
) |
|
$ |
1.05 |
|
|
|
(113.37 |
%) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
22,920,680 |
|
|
|
22,524,477 |
|
|
|
396,203 |
|
|
|
1.76 |
% |
Diluted |
|
|
22,962,956 |
|
|
|
22,524,477 |
|
|
|
438,479 |
|
|
|
1.95 |
% |
Ponce Financial Group, Inc. and
SubsidiariesKey Metrics
|
At or for the Three Months Ended |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
0.39 |
% |
|
|
(0.01 |
%) |
|
|
0.06 |
% |
|
|
(1.62 |
%) |
|
|
(2.80 |
%) |
Return on average equity
(1) |
|
2.11 |
% |
|
|
(0.07 |
%) |
|
|
0.27 |
% |
|
|
(7.28 |
%) |
|
|
(11.25 |
%) |
Net interest rate spread (1)
(2) |
|
1.58 |
% |
|
|
1.66 |
% |
|
|
1.78 |
% |
|
|
2.13 |
% |
|
|
3.08 |
% |
Net interest margin (1)
(3) |
|
2.58 |
% |
|
|
2.65 |
% |
|
|
2.75 |
% |
|
|
2.97 |
% |
|
|
3.59 |
% |
Non-interest expense to
average assets (1) |
|
2.58 |
% |
|
|
2.65 |
% |
|
|
2.79 |
% |
|
|
2.78 |
% |
|
|
4.83 |
% |
Efficiency ratio (4) |
|
78.11 |
% |
|
|
96.15 |
% |
|
|
95.88 |
% |
|
|
94.95 |
% |
|
|
132.46 |
% |
Average interest-earning
assets to average interest- bearing liabilities |
|
137.92 |
% |
|
|
141.14 |
% |
|
|
148.20 |
% |
|
|
152.30 |
% |
|
|
162.67 |
% |
Average equity to average
assets |
|
18.32 |
% |
|
|
19.21 |
% |
|
|
20.91 |
% |
|
|
22.32 |
% |
|
|
24.90 |
% |
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to risk weighted
assets (Bank only) |
|
25.10 |
% |
|
|
26.30 |
% |
|
|
27.54 |
% |
|
|
30.53 |
% |
|
|
33.39 |
% |
Tier 1 capital to risk
weighted assets (Bank only) |
|
23.85 |
% |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
|
|
32.13 |
% |
Common equity Tier 1 capital
to risk-weighted assets (Bank only) |
|
23.85 |
% |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
|
|
32.13 |
% |
Tier 1 capital to average
assets (Bank only) |
|
17.51 |
% |
|
|
17.95 |
% |
|
|
19.51 |
% |
|
|
20.47 |
% |
|
|
22.91 |
% |
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on
loans as a percentage of total loans |
|
1.51 |
% |
|
|
1.64 |
% |
|
|
1.77 |
% |
|
|
2.27 |
% |
|
|
1.77 |
% |
Allowance for credit losses on
loans as a percentage of nonperforming loans |
|
169.49 |
% |
|
|
167.06 |
% |
|
|
149.73 |
% |
|
|
252.33 |
% |
|
|
118.43 |
% |
Net (charge-offs) recoveries
to average outstanding loans (1) |
|
(0.34 |
%) |
|
|
(0.41 |
%) |
|
|
(0.57 |
%) |
|
|
(0.85 |
%) |
|
|
(0.52 |
%) |
Non-performing loans as a
percentage of total gross loans |
|
0.89 |
% |
|
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
|
|
1.50 |
% |
Non-performing loans as a
percentage of total assets |
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
Total non-performing assets as
a percentage of total assets |
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
Total non-performing assets
and accruing modifications to borrowers experiencing financial
difficulty as a percentage of total assets(5) |
|
0.82 |
% |
|
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
|
|
1.16 |
% |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of offices |
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
Number of full-time equivalent
employees |
|
243 |
|
|
|
244 |
|
|
|
251 |
|
|
|
253 |
|
|
|
257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 noninterest
income.(5) For periods in 2023, 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. For periods in 2022, the balances
only include troubled debt restructurings.
Ponce Financial Group, Inc. and
Subsidiaries Securities
Portfolio
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
|
|
|
|
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 |
|
$ |
2,989 |
|
|
$ |
— |
|
|
$ |
(276 |
) |
|
$ |
2,713 |
|
|
$ |
2,985 |
|
|
$ |
— |
|
|
$ |
(296 |
) |
|
$ |
2,689 |
|
Corporate Bonds |
|
|
25,799 |
|
|
|
— |
|
|
|
(2,609 |
) |
|
|
23,190 |
|
|
|
25,824 |
|
|
|
— |
|
|
|
(2,465 |
) |
|
|
23,359 |
|
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations(1) |
|
|
40,646 |
|
|
|
— |
|
|
|
(7,657 |
) |
|
|
32,989 |
|
|
|
44,503 |
|
|
|
— |
|
|
|
(6,726 |
) |
|
|
37,777 |
|
FHLMC Certificates |
|
|
10,441 |
|
|
|
— |
|
|
|
(1,904 |
) |
|
|
8,537 |
|
|
|
11,310 |
|
|
|
— |
|
|
|
(1,676 |
) |
|
|
9,634 |
|
FNMA Certificates |
|
|
62,771 |
|
|
|
— |
|
|
|
(13,552 |
) |
|
|
49,219 |
|
|
|
67,199 |
|
|
|
— |
|
|
|
(11,271 |
) |
|
|
55,928 |
|
GNMA Certificates |
|
|
108 |
|
|
|
— |
|
|
|
(3 |
) |
|
|
105 |
|
|
|
122 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
118 |
|
Total available-for-sale securities |
|
$ |
142,754 |
|
|
$ |
— |
|
|
$ |
(26,001 |
) |
|
$ |
116,753 |
|
|
$ |
151,943 |
|
|
$ |
— |
|
|
$ |
(22,438 |
) |
|
$ |
129,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-Maturity
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency Bonds |
|
$ |
25,000 |
|
|
$ |
— |
|
|
$ |
(504 |
) |
|
$ |
24,496 |
|
|
$ |
35,000 |
|
|
$ |
— |
|
|
$ |
(380 |
) |
|
$ |
34,620 |
|
Corporate Bonds |
|
|
82,500 |
|
|
|
— |
|
|
|
(5,117 |
) |
|
|
77,383 |
|
|
|
82,500 |
|
|
|
57 |
|
|
|
(3,819 |
) |
|
|
78,738 |
|
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations(1) |
|
|
217,632 |
|
|
|
— |
|
|
|
(12,198 |
) |
|
|
205,434 |
|
|
|
235,479 |
|
|
|
192 |
|
|
|
(5,558 |
) |
|
|
230,113 |
|
FHLMC Certificates |
|
|
3,923 |
|
|
|
— |
|
|
|
(358 |
) |
|
|
3,565 |
|
|
|
4,120 |
|
|
|
— |
|
|
|
(268 |
) |
|
|
3,852 |
|
FNMA Certificates |
|
|
121,940 |
|
|
|
— |
|
|
|
(8,818 |
) |
|
|
113,122 |
|
|
|
131,918 |
|
|
|
— |
|
|
|
(5,227 |
) |
|
|
126,691 |
|
SBA Certificates |
|
|
20,717 |
|
|
|
147 |
|
|
|
— |
|
|
|
20,864 |
|
|
|
21,803 |
|
|
|
34 |
|
|
|
— |
|
|
|
21,837 |
|
Allowance for Credit
Losses |
|
|
(647 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total held-to-maturity securities |
|
$ |
471,065 |
|
|
$ |
147 |
|
|
$ |
(26,995 |
) |
|
$ |
444,864 |
|
|
$ |
510,820 |
|
|
$ |
283 |
|
|
$ |
(15,252 |
) |
|
$ |
495,851 |
|
(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.
|
|
September 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Beginning balance |
|
$ |
— |
|
|
$ |
— |
|
CECL adoption |
|
|
662 |
|
|
|
— |
|
Provision for credit
losses |
|
|
(15 |
) |
|
|
— |
|
Allowance for credit losses on
securities |
|
$ |
647 |
|
|
$ |
— |
|
Ponce Financial Group, Inc. and
SubsidiariesLoan Portfolio
|
|
As of |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Owned |
|
$ |
347,082 |
|
|
|
19.13 |
% |
|
$ |
351,754 |
|
|
|
20.43 |
% |
|
$ |
354,559 |
|
|
|
21.60 |
% |
|
$ |
343,968 |
|
|
|
22.54 |
% |
|
$ |
336,667 |
|
|
|
23.79 |
% |
Owner-Occupied |
|
|
151,866 |
|
|
|
8.37 |
% |
|
|
154,116 |
|
|
|
8.94 |
% |
|
|
149,481 |
|
|
|
9.10 |
% |
|
|
134,878 |
|
|
|
8.84 |
% |
|
|
112,749 |
|
|
|
7.97 |
% |
Multifamily residential |
|
|
553,694 |
|
|
|
30.52 |
% |
|
|
550,033 |
|
|
|
31.94 |
% |
|
|
553,430 |
|
|
|
33.71 |
% |
|
|
494,667 |
|
|
|
32.42 |
% |
|
|
421,917 |
|
|
|
29.81 |
% |
Nonresidential properties |
|
|
321,472 |
|
|
|
17.71 |
% |
|
|
317,416 |
|
|
|
18.43 |
% |
|
|
314,560 |
|
|
|
19.17 |
% |
|
|
308,043 |
|
|
|
20.19 |
% |
|
|
282,642 |
|
|
|
19.97 |
% |
Construction and land |
|
|
411,383 |
|
|
|
22.67 |
% |
|
|
315,843 |
|
|
|
18.34 |
% |
|
|
235,157 |
|
|
|
14.33 |
% |
|
|
185,018 |
|
|
|
12.13 |
% |
|
|
197,437 |
|
|
|
13.95 |
% |
Total mortgage loans |
|
|
1,785,497 |
|
|
|
98.40 |
% |
|
|
1,689,162 |
|
|
|
98.08 |
% |
|
|
1,607,187 |
|
|
|
97.91 |
% |
|
|
1,466,574 |
|
|
|
96.12 |
% |
|
|
1,351,412 |
|
|
|
95.49 |
% |
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business loans (1) |
|
|
18,416 |
|
|
|
1.02 |
% |
|
|
21,041 |
|
|
|
1.22 |
% |
|
|
19,890 |
|
|
|
1.21 |
% |
|
|
39,965 |
|
|
|
2.62 |
% |
|
|
41,398 |
|
|
|
2.92 |
% |
Consumer loans (2) |
|
|
10,416 |
|
|
|
0.58 |
% |
|
|
11,958 |
|
|
|
0.70 |
% |
|
|
14,227 |
|
|
|
0.88 |
% |
|
|
19,129 |
|
|
|
1.26 |
% |
|
|
22,563 |
|
|
|
1.59 |
% |
Total non-mortgage loans |
|
|
28,832 |
|
|
|
1.60 |
% |
|
|
32,999 |
|
|
|
1.92 |
% |
|
|
34,117 |
|
|
|
2.09 |
% |
|
|
59,094 |
|
|
|
3.88 |
% |
|
|
63,961 |
|
|
|
4.51 |
% |
Total loans, gross |
|
|
1,814,329 |
|
|
|
100.00 |
% |
|
|
1,722,161 |
|
|
|
100.00 |
% |
|
|
1,641,304 |
|
|
|
100.00 |
% |
|
|
1,525,668 |
|
|
|
100.00 |
% |
|
|
1,415,373 |
|
|
|
100.00 |
% |
Net deferred loan origination
costs |
|
|
692 |
|
|
|
|
|
|
1,059 |
|
|
|
|
|
|
2,099 |
|
|
|
|
|
|
2,051 |
|
|
|
|
|
|
2,288 |
|
|
|
|
Allowance for credit losses on
loans |
|
|
(27,414 |
) |
|
|
|
|
|
(28,173 |
) |
|
|
|
|
|
(28,975 |
) |
|
|
|
|
|
(34,592 |
) |
|
|
|
|
|
(25,108 |
) |
|
|
|
Loans, net |
|
$ |
1,787,607 |
|
|
|
|
|
$ |
1,695,047 |
|
|
|
|
|
$ |
1,614,428 |
|
|
|
|
|
$ |
1,493,127 |
|
|
|
|
|
$ |
1,392,553 |
|
|
|
|
(1) As of September 30, 2023,
June 30, 2023, March 31, 2023, December 31, 2022 and September 30,
2022, business loans include $1.1 million, $3.2 million, $3.6
million, $20.0 million and $24.7 million, respectively, of PPP
loans.
(2) As of September 30, 2023,
June 30, 2023, March 31, 2023, December 31, 2022 and September 30,
2022, consumer loans include $9.3 million, $11.2 million, $13.4
million, $18.2 million and $21.5 million, respectively, of loans
originated by the Bank pursuant to its arrangement with Grain.
Ponce Financial Group, Inc. and
SubsidiariesGrain Loan Exposure
Grain Technologies, Inc. ("Grain") Total Exposure as of
September 30, 2023 |
|
(in thousands) |
|
Receivable from
Grain |
|
|
|
Microloans originated - put back to Grain (inception-to-September
30, 2023) |
|
$ |
24,255 |
|
Write-downs, net of recoveries
(inception-to-date as of September 30, 2023) |
|
|
(15,610 |
) |
Cash receipts from Grain
(inception-to-September 30, 2023) |
|
|
(6,819 |
) |
Grant/reserve |
|
|
(1,826 |
) |
Net receivable as of September
30, 2023 |
|
$ |
— |
|
Microloan receivables
from Grain Borrowers |
|
|
|
Grain originated loans
receivable as of September 30, 2023 |
|
$ |
9,318 |
|
Allowance for credit losses on
loans as of September 30, 2023(1) |
|
|
(8,163 |
) |
Microloans, net of allowance
for credit losses on loans as of September 30, 2023 |
|
$ |
1,155 |
|
Investments |
|
|
|
Investment in Grain |
|
$ |
1,000 |
|
Investment in Grain write-off
in Q3 2022 |
|
|
(1,000 |
) |
Investment in Grain as of
September 30, 2023 |
|
|
— |
|
Total exposure to Grain as of
September 30, 2023 |
|
$ |
1,155 |
|
(1) Includes $0.3 million for allowance for unused commitments
on the $2.4 million of unused commitments available to Grain
originated borrowers reported in other liabilities in the
accompanying Consolidated Statements of Financial Conditions.
Excludes $1.6 million of security deposits by Grain originated
borrowers reported in deposits in the accompanying Consolidated
Statements of Financial Conditions.
Ponce Financial Group, Inc. and
SubsidiariesAllowance for Credit Losses on
Loans
|
For the Three Months Ended |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
|
|
|
(Dollars in thousands) |
|
Allowance for credit losses on loans at beginning of the
period |
$ |
28,173 |
|
|
$ |
28,975 |
|
|
$ |
34,592 |
|
|
$ |
25,108 |
|
|
$ |
17,535 |
|
Provision (benefit) for credit
losses on loans |
|
750 |
|
|
|
934 |
|
|
|
(321 |
) |
|
|
12,641 |
|
|
|
9,330 |
|
Adoption of CECL |
|
— |
|
|
|
— |
|
|
|
(3,090 |
) |
|
|
— |
|
|
|
— |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Owner occupied |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Multifamily residences |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
(1,592 |
) |
|
|
(1,931 |
) |
|
|
(2,569 |
) |
|
|
(3,659 |
) |
|
|
(1,799 |
) |
Total charge-offs |
|
(1,592 |
) |
|
|
(1,931 |
) |
|
|
(2,569 |
) |
|
|
(3,659 |
) |
|
|
(1,799 |
) |
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Owner occupied |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
Multifamily residences |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Consumer |
|
80 |
|
|
|
195 |
|
|
|
363 |
|
|
|
502 |
|
|
|
2 |
|
Total recoveries |
|
83 |
|
|
|
195 |
|
|
|
363 |
|
|
|
502 |
|
|
|
42 |
|
Net (charge-offs)
recoveries |
|
(1,509 |
) |
|
|
(1,736 |
) |
|
|
(2,206 |
) |
|
|
(3,157 |
) |
|
|
(1,757 |
) |
Allowance for credit losses on
loans at end of the period |
$ |
27,414 |
|
|
$ |
28,173 |
|
|
$ |
28,975 |
|
|
$ |
34,592 |
|
|
$ |
25,108 |
|
Ponce Financial Group, Inc. and
SubsidiariesDeposits
|
|
As of |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Demand |
|
$ |
265,862 |
|
|
|
18.98 |
% |
|
$ |
266,545 |
|
|
|
18.48 |
% |
|
$ |
282,741 |
|
|
|
21.15 |
% |
|
$ |
289,149 |
|
|
|
23.08 |
% |
|
$ |
288,654 |
|
|
|
21.37 |
% |
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA accounts |
|
|
22,519 |
|
|
|
1.61 |
% |
|
|
22,754 |
|
|
|
1.57 |
% |
|
|
21,735 |
|
|
|
1.63 |
% |
|
|
24,349 |
|
|
|
1.94 |
% |
|
|
28,799 |
|
|
|
2.13 |
% |
Money market accounts |
|
|
370,500 |
|
|
|
26.44 |
% |
|
|
387,970 |
|
|
|
26.91 |
% |
|
|
293,140 |
|
|
|
21.93 |
% |
|
|
236,143 |
|
|
|
18.86 |
% |
|
|
257,409 |
|
|
|
19.05 |
% |
Reciprocal deposits |
|
|
82,670 |
|
|
|
5.90 |
% |
|
|
100,919 |
|
|
|
7.00 |
% |
|
|
109,649 |
|
|
|
8.20 |
% |
|
|
114,049 |
|
|
|
9.11 |
% |
|
|
162,858 |
|
|
|
12.05 |
% |
Savings accounts |
|
|
117,870 |
|
|
|
8.41 |
% |
|
|
119,635 |
|
|
|
8.30 |
% |
|
|
127,731 |
|
|
|
9.55 |
% |
|
|
130,432 |
|
|
|
10.41 |
% |
|
|
140,055 |
|
|
|
10.37 |
% |
Total NOW, money market, reciprocal and savings
accounts |
|
|
593,559 |
|
|
|
42.36 |
% |
|
|
631,278 |
|
|
|
43.78 |
% |
|
|
552,255 |
|
|
|
41.31 |
% |
|
|
504,973 |
|
|
|
40.32 |
% |
|
|
589,121 |
|
|
|
43.60 |
% |
Certificates of deposit of $250K or more |
|
|
122,353 |
|
|
|
8.73 |
% |
|
|
120,043 |
|
|
|
8.32 |
% |
|
|
113,955 |
|
|
|
8.52 |
% |
|
|
106,336 |
|
|
|
8.49 |
% |
|
|
114,016 |
|
|
|
8.43 |
% |
Brokered certificates of deposit(1) |
|
|
98,729 |
|
|
|
7.05 |
% |
|
|
98,729 |
|
|
|
6.85 |
% |
|
|
98,754 |
|
|
|
7.39 |
% |
|
|
98,754 |
|
|
|
7.89 |
% |
|
|
98,760 |
|
|
|
7.31 |
% |
Listing service deposits(1) |
|
|
15,180 |
|
|
|
1.08 |
% |
|
|
20,258 |
|
|
|
1.40 |
% |
|
|
28,417 |
|
|
|
2.13 |
% |
|
|
35,813 |
|
|
|
2.86 |
% |
|
|
40,964 |
|
|
|
3.03 |
% |
All other certificates of deposit less than $250K |
|
|
305,449 |
|
|
|
21.80 |
% |
|
|
305,160 |
|
|
|
21.17 |
% |
|
|
260,755 |
|
|
|
19.50 |
% |
|
|
217,387 |
|
|
|
17.36 |
% |
|
|
219,674 |
|
|
|
16.26 |
% |
Total certificates of deposit |
|
|
541,711 |
|
|
|
38.66 |
% |
|
|
544,190 |
|
|
|
37.74 |
% |
|
|
501,881 |
|
|
|
37.54 |
% |
|
|
458,290 |
|
|
|
36.60 |
% |
|
|
473,414 |
|
|
|
35.03 |
% |
Total interest-bearing
deposits |
|
|
1,135,270 |
|
|
|
81.02 |
% |
|
|
1,175,468 |
|
|
|
81.52 |
% |
|
|
1,054,136 |
|
|
|
78.85 |
% |
|
|
963,263 |
|
|
|
76.92 |
% |
|
|
1,062,535 |
|
|
|
78.63 |
% |
Total deposits |
|
$ |
1,401,132 |
|
|
|
100.00 |
% |
|
$ |
1,442,013 |
|
|
|
100.00 |
% |
|
$ |
1,336,877 |
|
|
|
100.00 |
% |
|
$ |
1,252,412 |
|
|
|
100.00 |
% |
|
$ |
1,351,189 |
|
|
|
100.00 |
% |
(1) As of September 30, 2023,
June 30, 2023, March 31, 2023, December 31, 2022 and September 30,
2022, there were $0.3 million, $3.3 million, $9.5 million, $13.6
million and $13.8 million, respectively, in individual listing
service deposits amounting to $250,000 or more. All brokered
certificates of deposit individually amounted to less than
$250,000.
Ponce Financial Group, Inc. and Subsidiaries
Borrowings
|
September 30, |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
ScheduledMaturity |
|
|
Redeemableat Call Date |
|
|
WeightedAverageRate |
|
|
ScheduledMaturity |
|
|
Redeemableat Call Date |
|
|
WeightedAverageRate |
|
|
|
|
|
(Dollars in thousands) |
|
Overnight line of creditadvance |
$ |
— |
|
|
$ |
— |
|
|
|
— |
% |
|
$ |
6,000 |
|
|
$ |
6,000 |
|
|
|
4.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term advances ending: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
178,375 |
|
|
$ |
178,375 |
|
|
|
4.32 |
|
2024 |
|
354,000 |
|
|
|
354,000 |
|
|
|
4.53 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
4.75 |
|
2025 |
|
50,000 |
|
|
|
50,000 |
|
|
|
4.41 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
4.41 |
|
2026 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
2027 |
|
212,000 |
|
|
|
212,000 |
|
|
|
3.44 |
|
|
|
183,000 |
|
|
|
183,000 |
|
|
|
3.25 |
|
Thereafter |
|
59,100 |
|
|
|
59,100 |
|
|
|
3.43 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
3.35 |
|
|
$ |
675,100 |
|
|
$ |
675,100 |
|
|
|
4.08 |
% |
|
$ |
517,375 |
|
|
$ |
517,375 |
|
|
|
3.90 |
% |
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
|
As of Three Months Ended |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
|
|
(Dollars in thousands) |
|
Non-accrual
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
396 |
|
|
$ |
296 |
|
|
$ |
2,836 |
|
|
$ |
2,844 |
|
|
$ |
5,902 |
|
Owner occupied |
|
1,685 |
|
|
|
2,363 |
|
|
|
2,245 |
|
|
|
961 |
|
|
|
971 |
|
Multifamily residential |
|
1,444 |
|
|
|
1,435 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
778 |
|
Construction and land |
|
11,721 |
|
|
|
11,721 |
|
|
|
11,906 |
|
|
|
7,567 |
|
|
|
10,660 |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
209 |
|
|
|
— |
|
|
|
40 |
|
|
|
— |
|
|
|
359 |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-accrual loans (not including non-accruing modifications
to borrowers experiencing financial difficulty)(1) |
$ |
15,455 |
|
|
$ |
15,815 |
|
|
$ |
17,027 |
|
|
$ |
11,372 |
|
|
$ |
18,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accruing
modifications to borrowers experiencing financial
difficulty(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
270 |
|
|
$ |
209 |
|
|
$ |
213 |
|
|
$ |
217 |
|
|
$ |
221 |
|
Owner occupied |
|
449 |
|
|
|
840 |
|
|
|
2,020 |
|
|
|
2,027 |
|
|
|
2,215 |
|
Multifamily residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
93 |
|
|
|
95 |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-accruing modifications to borrowers experiencing
financial difficulty(1) |
|
719 |
|
|
|
1,049 |
|
|
|
2,324 |
|
|
|
2,337 |
|
|
|
2,531 |
|
Total non-accrual loans |
$ |
16,174 |
|
|
$ |
16,864 |
|
|
$ |
19,351 |
|
|
$ |
13,709 |
|
|
$ |
21,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing modifications
to borrowers experiencing financial difficulty (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
2,131 |
|
|
$ |
2,161 |
|
|
$ |
2,185 |
|
|
$ |
2,207 |
|
|
$ |
2,228 |
|
Owner occupied |
|
2,335 |
|
|
|
2,353 |
|
|
|
1,310 |
|
|
|
1,328 |
|
|
|
1,254 |
|
Multifamily residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
765 |
|
|
|
783 |
|
|
|
701 |
|
|
|
708 |
|
|
|
715 |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total accruing modifications to borrowers experiencing financial
difficulty(1) |
$ |
5,231 |
|
|
$ |
5,297 |
|
|
$ |
4,196 |
|
|
$ |
4,243 |
|
|
$ |
4,197 |
|
Total non-performing assets
and accruing modifications to borrowers experiencing financial
difficulty(1) |
$ |
21,405 |
|
|
$ |
22,161 |
|
|
$ |
23,547 |
|
|
$ |
17,952 |
|
|
$ |
25,398 |
|
Total non-performing loans to
total gross loans |
|
0.89 |
% |
|
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
|
|
1.50 |
% |
Total non-performing assets to
total assets |
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
Total non-performing assets
and accruing modifications to borrowers experiencing financial
difficulty as a percentage of total assets(1) |
|
0.82 |
% |
|
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
|
|
1.16 |
% |
(1) For periods in 2023, 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. For periods in 2022, the balances
only include troubled debt restructurings.
Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets
|
For the Three Months Ended
September 30, |
|
2023 |
|
|
2022 |
|
|
Average |
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
Outstanding |
|
|
|
|
|
Average |
|
Outstanding |
|
|
|
|
|
Average |
|
Balance |
|
|
Interest |
|
|
Yield/Rate(1) |
|
Balance |
|
|
Interest |
|
|
Yield/Rate(1) |
|
|
|
(Dollars in thousands) |
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(2) |
$ |
1,777,585 |
|
|
$ |
25,276 |
|
|
5.64 |
% |
|
$ |
1,379,029 |
|
|
$ |
17,058 |
|
|
4.91 |
% |
Securities(3) |
|
599,573 |
|
|
|
5,821 |
|
|
3.85 |
% |
|
|
492,337 |
|
|
|
4,153 |
|
|
3.35 |
% |
Other(4)(5) |
|
169,570 |
|
|
|
2,409 |
|
|
5.64 |
% |
|
|
74,055 |
|
|
|
423 |
|
|
2.27 |
% |
Total interest-earning assets |
|
2,546,728 |
|
|
|
33,506 |
|
|
5.22 |
% |
|
|
1,945,421 |
|
|
|
21,634 |
|
|
4.41 |
% |
Non-interest-earning
assets(5) |
|
111,771 |
|
|
|
|
|
|
|
|
108,329 |
|
|
|
|
|
|
Total assets |
$ |
2,658,499 |
|
|
|
|
|
|
|
$ |
2,053,750 |
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA |
$ |
22,876 |
|
|
$ |
8 |
|
|
0.14 |
% |
|
$ |
29,939 |
|
|
$ |
13 |
|
|
0.17 |
% |
Money market |
|
485,042 |
|
|
|
5,601 |
|
|
4.58 |
% |
|
|
381,606 |
|
|
|
1,303 |
|
|
1.35 |
% |
Savings |
|
118,095 |
|
|
|
29 |
|
|
0.10 |
% |
|
|
141,200 |
|
|
|
57 |
|
|
0.16 |
% |
Certificates of deposit |
|
527,302 |
|
|
|
4,362 |
|
|
3.28 |
% |
|
|
382,163 |
|
|
|
855 |
|
|
0.89 |
% |
Total deposits |
|
1,153,315 |
|
|
|
10,000 |
|
|
3.44 |
% |
|
|
934,908 |
|
|
|
2,228 |
|
|
0.95 |
% |
Advance payments by
borrowers |
|
14,537 |
|
|
|
1 |
|
|
0.03 |
% |
|
|
10,918 |
|
|
|
2 |
|
|
0.07 |
% |
Borrowings |
|
678,676 |
|
|
|
6,963 |
|
|
4.07 |
% |
|
|
250,112 |
|
|
|
1,793 |
|
|
2.84 |
% |
Total interest-bearing liabilities |
|
1,846,528 |
|
|
|
16,964 |
|
|
3.64 |
% |
|
|
1,195,938 |
|
|
|
4,023 |
|
|
1.33 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand |
|
278,358 |
|
|
|
— |
|
|
|
|
|
321,556 |
|
|
|
— |
|
|
|
Other non-interest-bearing
liabilities |
|
46,643 |
|
|
|
— |
|
|
|
|
|
16,377 |
|
|
|
— |
|
|
|
Total non-interest-bearing liabilities |
|
325,001 |
|
|
|
— |
|
|
|
|
|
337,933 |
|
|
|
— |
|
|
|
Total liabilities |
|
2,171,529 |
|
|
|
16,964 |
|
|
|
|
|
1,533,871 |
|
|
|
4,023 |
|
|
|
Total equity |
|
486,970 |
|
|
|
|
|
|
|
|
519,879 |
|
|
|
|
|
|
Total liabilities and total equity |
$ |
2,658,499 |
|
|
|
|
|
3.64 |
% |
|
$ |
2,053,750 |
|
|
|
|
|
1.33 |
% |
Net interest income |
|
|
|
$ |
16,542 |
|
|
|
|
|
|
|
$ |
17,611 |
|
|
|
Net interest rate
spread(6) |
|
|
|
|
|
|
1.58 |
% |
|
|
|
|
|
|
|
3.08 |
% |
Net interest-earning
assets(7) |
$ |
700,200 |
|
|
|
|
|
|
|
$ |
749,483 |
|
|
|
|
|
|
Net interest margin(8) |
|
|
|
|
|
|
2.58 |
% |
|
|
|
|
|
|
|
3.59 |
% |
Average interest-earning
assets to interest-bearing liabilities |
|
|
|
|
|
|
137.92 |
% |
|
|
|
|
|
|
|
162.67 |
% |
(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 FRB demand
deposits.(5) FRB demand deposits for prior period
have been reclassified for consistency.(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
|
For the Nine Months Ended
September 30, |
|
|
2023 |
|
|
2022 |
|
|
Average |
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
Outstanding |
|
|
|
|
|
Average |
|
|
Outstanding |
|
|
|
|
|
Average |
|
|
Balance |
|
|
Interest |
|
|
Yield/Rate(1) |
|
|
Balance |
|
|
Interest |
|
|
Yield/Rate |
|
|
(Dollars in thousands) |
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(2) |
$ |
1,678,369 |
|
|
$ |
67,991 |
|
|
5.42 |
% |
|
$ |
1,341,151 |
|
|
$ |
51,315 |
|
|
5.12 |
% |
Securities(3) |
|
614,987 |
|
|
|
17,627 |
|
|
3.83 |
% |
|
|
263,421 |
|
|
|
5,778 |
|
|
2.93 |
% |
Other(4)(5) |
|
127,961 |
|
|
|
5,299 |
|
|
5.54 |
% |
|
|
96,623 |
|
|
|
726 |
|
|
1.00 |
% |
Total interest-earning assets |
|
2,421,317 |
|
|
|
90,917 |
|
|
5.02 |
% |
|
|
1,701,195 |
|
|
|
57,819 |
|
|
4.54 |
% |
Non-interest-earning
assets(5) |
|
118,609 |
|
|
|
|
|
|
|
|
|
136,650 |
|
|
|
|
|
|
|
Total assets |
$ |
2,539,926 |
|
|
|
|
|
|
|
|
$ |
1,837,845 |
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA |
$ |
22,828 |
|
|
$ |
25 |
|
|
0.15 |
% |
|
$ |
31,769 |
|
|
$ |
43 |
|
|
0.18 |
% |
Money market |
|
403,171 |
|
|
|
12,745 |
|
|
4.23 |
% |
|
|
344,361 |
|
|
|
1,986 |
|
|
0.77 |
% |
Savings |
|
123,218 |
|
|
|
88 |
|
|
0.10 |
% |
|
|
137,808 |
|
|
|
120 |
|
|
0.12 |
% |
Certificates of deposit |
|
522,740 |
|
|
|
11,468 |
|
|
2.93 |
% |
|
|
398,661 |
|
|
|
2,361 |
|
|
0.79 |
% |
Total deposits |
|
1,071,957 |
|
|
|
24,326 |
|
|
3.03 |
% |
|
|
912,599 |
|
|
|
4,510 |
|
|
0.66 |
% |
Advance payments by
borrowers |
|
14,814 |
|
|
|
6 |
|
|
0.05 |
% |
|
|
11,033 |
|
|
|
5 |
|
|
0.06 |
% |
Borrowings |
|
617,912 |
|
|
|
18,516 |
|
|
4.01 |
% |
|
|
152,084 |
|
|
|
2,867 |
|
|
2.52 |
% |
Total interest-bearing liabilities |
|
1,704,683 |
|
|
|
42,848 |
|
|
3.36 |
% |
|
|
1,075,716 |
|
|
|
7,382 |
|
|
0.92 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand |
|
298,148 |
|
|
|
— |
|
|
|
|
|
|
350,871 |
|
|
|
— |
|
|
|
|
Other non-interest-bearing
liabilities |
|
43,864 |
|
|
|
— |
|
|
|
|
|
|
43,606 |
|
|
|
— |
|
|
|
|
Total non-interest-bearing liabilities |
|
342,012 |
|
|
|
— |
|
|
|
|
|
|
394,477 |
|
|
|
— |
|
|
|
|
Total liabilities |
|
2,046,695 |
|
|
|
42,848 |
|
|
|
|
|
|
1,470,193 |
|
|
|
7,382 |
|
|
|
|
Total equity |
|
493,231 |
|
|
|
|
|
|
|
|
|
367,652 |
|
|
|
|
|
|
|
Total liabilities and total equity |
$ |
2,539,926 |
|
|
|
|
|
3.36 |
% |
|
$ |
1,837,845 |
|
|
|
|
|
0.92 |
% |
Net interest income |
|
|
|
$ |
48,069 |
|
|
|
|
|
|
|
|
$ |
50,437 |
|
|
|
|
Net interest rate
spread(6) |
|
|
|
|
|
|
1.66 |
% |
|
|
|
|
|
|
|
3.62 |
% |
Net interest-earning
assets(7) |
$ |
716,634 |
|
|
|
|
|
|
|
|
$ |
625,479 |
|
|
|
|
|
|
|
Net interest margin(8) |
|
|
|
|
|
|
2.65 |
% |
|
|
|
|
|
|
|
3.96 |
% |
Average interest-earning
assets to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing
liabilities |
|
|
|
|
|
|
142.04 |
% |
|
|
|
|
|
|
|
158.15 |
% |
(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 FRB demand deposit.(5) FRB demand
deposits for prior period have been reclassified for
consistency.(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
SubsidiariesOther Data
|
As of |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued |
|
24,886,711 |
|
|
|
24,886,711 |
|
|
|
24,865,476 |
|
|
|
24,861,329 |
|
|
|
24,728,460 |
|
Less treasury shares |
|
1,233,111 |
|
|
|
617,924 |
|
|
|
1,976 |
|
|
|
1,976 |
|
|
|
— |
|
Common shares outstanding at
end of period |
|
23,653,600 |
|
|
|
24,268,787 |
|
|
|
24,863,500 |
|
|
|
24,859,353 |
|
|
|
24,728,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
10.99 |
|
|
$ |
10.94 |
|
|
$ |
10.90 |
|
|
$ |
10.77 |
|
|
$ |
11.15 |
|
Tangible book value per common
share |
$ |
10.99 |
|
|
$ |
10.94 |
|
|
$ |
10.90 |
|
|
$ |
10.77 |
|
|
$ |
11.15 |
|
Contact:Frank Perezfrank.perez@poncebank.net718-981-9000
Ponce Financial (NASDAQ:PDLB)
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