NEW YORK, Jan. 30, 2024 (GLOBE NEWSWIRE) --
Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the
holding company for Ponce Bank (the “Bank”), today announced
results for the fourth quarter of 2023.
Fourth Quarter 2023 Highlights (Compared
to Prior Periods):
- Net income of $0.5
million, or $0.02 per diluted share for the three months ended
December 31, 2023, as compared to net income of $2.6 million,
or $0.12 per diluted share for the three months ended
September 30, 2023 and net loss of ($9.2) million, or ($0.40)
per diluted share for the three months ended December 31,
2022.
- Included in the
$0.5 million of net income for the fourth quarter of 2023 results
is $35.0 million in interest and dividend income and $1.3 million
in non-interest income, offset by $17.9 million in non-interest
expense and $17.8 million in interest expense.
- Net interest income
of $17.2 million for the fourth quarter of 2023 increased $0.7
million, or 3.96%, from the prior quarter and increased $1.0
million, or 6.38%, from the same quarter last year.
- Net interest margin
was 2.66% for the fourth quarter of 2023, increased from 2.58% for
the prior quarter and decreased from 2.97% for the same quarter
last year.
Full Year 2023 Highlights (Compared to
2022):
- Net income of $3.4
million, or $0.15 per diluted share for the year ended
December 31, 2023, as compared to a net loss of ($30.0)
million, or ($1.32) per diluted share for the year ended
December 31, 2022.
- Net interest income
for the year ended December 31, 2023 was $65.3 million, decreased
$1.3 million, or 2.01%, compared to $66.6 million for the year
ended December 31, 2022.
- Non-interest income
for the year ended December 31, 2023 was $10.2 million,
increased $3.8 million, or 59.26%, compared to $6.4 million for the
year ended December 31, 2022.
- Non-interest
expense for the year ended December 31, 2023 was $68.7
million, decreased $17.2 million, or 19.99%, compared to $85.8
million for the year ended December 31, 2022.
- Net interest margin
was 2.66% for the year ended December 31, 2023, decreased from
3.66% for the same period last year.
- Cash and
equivalents were $139.2 million as of December 31, 2023,
increased $84.8 million, or 156.05%, 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
$581.7 million as of December 31, 2023, decreased $58.7
million, or 9.16%, from December 31, 2022 primarily due to a call
on one of the securities amounting to $10.0 million and regular
principal payments.
- Net loans
receivable were $1.90 billion as of December 31, 2023,
increased $402.8 million, or 26.97%, from December 31, 2022.
- Deposits were $1.51
billion as of December 31, 2023, increased $255.2 million, or
20.38%, from December 31, 2022.
President and Chief Executive Officer’s
Comments
Carlos P. Naudon, Ponce Financial Group’s
President and CEO, stated “We were pleased to see continued
improvement during the quarter: Net interest income grew for the
third quarter in a row and, despite the challenging operating
environment, net interest income was also up quarter over quarter.
Book value per share was $11.20 at year-end, up $0.21 quarter over
quarter and up $0.43 versus last year. Total equity per share now
stands at $20.66. Additionally, in order to better manage our
interest risk, during the fourth quarter, we entered into two pay
fixed, receiver SOFR swaps, one with notional amount of $150
million for 2 years and one with notional amount of $100 million
for 3 years.
We continue to show strong levels of capital and
liquidity. On the capital front, our total capital ratio at Ponce
Bank stands at 23.30%, 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") stands at $778.8
million, two times of our uninsured deposits of $389.4 million.
We remain committed to the communities we serve, our Minority
Depository Institution (“MDI”)/Community Development Financial
Institutions ("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 “We were able to grow both loans and
deposits by over $100 million this quarter. We continue to see
resiliency of our client base, but we’ll prioritize sound
underwriting practices 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 |
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
Performance Ratios
(Annualized): |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Return on average assets (1) |
|
|
0.08 |
% |
|
|
0.39 |
% |
|
|
(0.01 |
%) |
|
|
0.06 |
% |
|
|
(1.62 |
%) |
Return on average equity
(1) |
|
|
0.42 |
% |
|
|
2.11 |
% |
|
|
(0.07 |
%) |
|
|
0.27 |
% |
|
|
(7.28 |
%) |
Net interest rate spread (1)
(2) |
|
|
1.63 |
% |
|
|
1.58 |
% |
|
|
1.66 |
% |
|
|
1.78 |
% |
|
|
2.13 |
% |
Net interest margin (1)
(3) |
|
|
2.66 |
% |
|
|
2.58 |
% |
|
|
2.65 |
% |
|
|
2.75 |
% |
|
|
2.97 |
% |
Non-interest expense to
average assets (1) |
|
|
2.66 |
% |
|
|
2.58 |
% |
|
|
2.65 |
% |
|
|
2.79 |
% |
|
|
2.78 |
% |
Efficiency ratio (4) |
|
|
96.83 |
% |
|
|
78.11 |
% |
|
|
96.15 |
% |
|
|
95.88 |
% |
|
|
94.95 |
% |
Average interest-earning
assets to average interest- bearing liabilities |
|
|
137.49 |
% |
|
|
137.92 |
% |
|
|
141.14 |
% |
|
|
148.20 |
% |
|
|
152.30 |
% |
Average equity to average
assets |
|
|
18.25 |
% |
|
|
18.32 |
% |
|
|
19.21 |
% |
|
|
20.91 |
% |
|
|
22.32 |
% |
|
|
At or for the Three Months Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
Capital Ratios
(Annualized): |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Total capital to risk weighted assets (Bank only) |
|
|
23.30 |
% |
|
|
25.10 |
% |
|
|
26.30 |
% |
|
|
27.54 |
% |
|
|
30.53 |
% |
Tier 1 capital to risk
weighted assets (Bank only) |
|
|
22.05 |
% |
|
|
23.85 |
% |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
Common equity Tier 1 capital
to risk-weighted assets (Bank only) |
|
|
22.05 |
% |
|
|
23.85 |
% |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
Tier 1 capital to average
assets (Bank only) |
|
|
17.49 |
% |
|
|
17.51 |
% |
|
|
17.95 |
% |
|
|
19.51 |
% |
|
|
20.47 |
% |
|
|
At or for the Three Months Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
Asset Quality Ratios
(Annualized): |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Allowance for loan losses as a percentage of total loans |
|
|
1.36 |
% |
|
|
1.51 |
% |
|
|
1.64 |
% |
|
|
1.77 |
% |
|
|
2.27 |
% |
Allowance for loan losses as a
percentage of nonperforming loans |
|
|
152.99 |
% |
|
|
169.49 |
% |
|
|
167.06 |
% |
|
|
149.73 |
% |
|
|
252.33 |
% |
Net (charge-offs) recoveries
to average outstanding loans (1) |
|
|
(0.24 |
%) |
|
|
(0.34 |
%) |
|
|
(0.41 |
%) |
|
|
(0.57 |
%) |
|
|
(0.85 |
%) |
Non-performing loans as a
percentage of total gross loans |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
Non-performing loans as a
percentage of total assets |
|
|
0.62 |
% |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
Total non-performing assets as
a percentage of total assets |
|
|
0.62 |
% |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
Total non-performing assets
and accruing modifications to borrowers experiencing financial
difficulty as a percentage of total assets (5) |
|
|
0.81 |
% |
|
|
0.82 |
% |
|
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
(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 the period in
2022, the balances only include troubled debt
restructurings.
Summary of Results of Operations
Net income for the three months ended
December 31, 2023 was $0.5 million compared to net income of
$2.6 million for the three months ended September 30, 2023 and a
net loss of ($9.2) million for the three months ended
December 31, 2022. The decrease of net income for the three
months ended December 31, 2023 compared to the three months
ended September 30, 2023 was attributed mainly to a decrease in
non-interest income and an increase in non-interest expense,
partially offset by a decrease in provision for income taxes and,
increases in a benefit for credit losses and net interest income.
The increase of net income for the three months ended
December 31, 2023 compared to the three months ended
December 31, 2022 was largely due to increases in benefit for
credit losses, net interest income and non-interest income,
partially offset by increases in provision for income taxes and
non-interest expense.
Net income for the year ended December 31,
2023 was $3.4 million compared to a net loss of ($30.0) million for
the year ended December 31, 2022. The increase in net income
was attributable to an increase in benefit for credit losses and a
decrease in 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 Interest Income and Net
Margin
Net interest income for the three months ended
December 31, 2023, increased $0.7 million, or 3.96%, to $17.2
million compared to $16.5 million for the three months ended
September 30, 2023 and increased $1.0 million, or 6.38%, compared
to $16.2 million for the three months ended December 31,
2022.
Net interest margin was 2.66% for the three
months ended December 31, 2023 compared to 2.58% for the prior
quarter, an increase of 8bps and 2.97% for the same period last
year, a decrease of 31bps. The decrease in net interest margin for
the three months ended December 31, 2023 when compared to the same
period last year 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
December 31, 2023, was $1.3 million, a decrease of $4.3
million, or 77.16%, compared to the three months ended
September 30, 2023 and an increase of $0.8 million, or
194.05%, compared to the three months ended December 31,
2022.
The $4.3 million decrease in non-interest income
for the three months ended December 31, 2023 compared to the
three months ended September 30, 2023 was largely attributable
to a grant of $3.7 million received in the third quarter of 2023
from the U.S. Treasury, partially offset by a smaller grant of $0.4
million received in the fourth quarter of 2023 from the U.S.
Treasury. The decrease in non-interest income was also impacted by
decreases of $0.6 million in other non-interest income and $0.5
million in late and prepayment charges.
Non-interest income for the year ended
December 31, 2023, was $10.2 million, an increase of $3.8
million, or 59.26%, compared to $6.4 million for the year ended
December 31, 2022. The $3.8 million increase from the year
ended December 31, 2022 was attributable to two grants totaled
$4.2 million received from the U.S. Treasury and an increase of
$1.7 million in late and prepayment charges, partially offset by
decreases of $1.3 million in loan origination and $0.9 million in
brokerage commission.
Non-interest Expense
Non-interest expense for the three months ended
December 31, 2023, was $17.9 million, an increase of $0.6
million, or 3.36%, compared to $17.3 million for the three months
ended September 30, 2023 and an increase of $2.1 million, or
13.52%, compared to $15.8 million for the three months ended
December 31, 2022.
The $2.1 million increase from the three months
ended December 31, 2022 was mainly attributable to increases
of $1.8 million in compensation and benefits, $0.9 million in
provision for contingencies and $0.5 million in professional fees,
partially offset by a decrease of $0.9 million in other operating
expense.
Non-interest expense for the year ended
December 31, 2023 was $68.7 million, a decrease of $17.2
million, or 19.99%, compared to $85.8 million for the year ended
December 31, 2022. The $17.2 million decrease of non-interest
expense from the year ended December 31, 2022 was attributable
to $17.9 million Grain consumer microloan write-off during 2022
compared with $1.5 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 2022, partially offset by increases
of $2.8 million in compensation and benefits, $2.2 million in
provision for contingencies, $1.3 million in data processing
expenses and $1.2 million in professional fees.
Balance Sheet Summary
Total assets increased $438.7 million, or
18.98%, to $2.75 billion as of December 31, 2023 from $2.31
billion as of December 31, 2022. The increase in total assets
is largely attributable to increases of $402.8 million in net loans
receivable, $84.8 million in cash and cash equivalents, $10.7
million in other assets and $8.0 million in mortgage loans held for
sale, partially offset by decreases of $49.1 million in
held-to-maturity securities, $9.6 million in available-for-sale
securities and $5.3 million in Federal Home Loan Bank of New York
stock.
Total liabilities increased $440.0 million, or
24.19%, to $2.26 billion as of December 31, 2023 from $1.82
billion as of December 31, 2022. The increase in total
liabilities was largely attributable to increases of $255.2 million
in deposits, $167.0 million in borrowings, $10.6 million in accrued
interest payable and $8.0 million in other liabilities.
Total stockholders’ equity decreased $1.3
million, or 0.26%, to $491.4 million as of December 31, 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 during 2023 and $2.2 million in other
comprehensive loss, offset by $3.4 million in net income, $1.9
million impact to additional paid in capital as a result of
share-based compensation, $1.1 million as a result of
implementation of CECL and $1.1 million from release of ESOP
shares.
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 Subsidiaries
Consolidated
Statements of Financial Condition
(Dollars in
thousands, except for share data)
|
As of |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
$ |
28,930 |
|
|
$ |
26,046 |
|
|
$ |
31,162 |
|
|
$ |
26,951 |
|
|
$ |
31,977 |
|
Interest-bearing deposits |
|
110,260 |
|
|
|
90,966 |
|
|
|
212,627 |
|
|
|
157,736 |
|
|
|
22,383 |
|
Total cash and cash equivalents |
|
139,190 |
|
|
|
117,012 |
|
|
|
243,789 |
|
|
|
184,687 |
|
|
|
54,360 |
|
Available-for-sale securities,
at fair value |
|
119,902 |
|
|
|
116,753 |
|
|
|
123,720 |
|
|
|
128,320 |
|
|
|
129,505 |
|
Held-to-maturity securities,
at amortized cost (1) |
|
461,748 |
|
|
|
471,065 |
|
|
|
481,952 |
|
|
|
491,649 |
|
|
|
510,820 |
|
Placement with banks |
|
249 |
|
|
|
996 |
|
|
|
996 |
|
|
|
1,245 |
|
|
|
1,494 |
|
Mortgage loans held for sale,
at fair value |
|
9,980 |
|
|
|
14,103 |
|
|
|
10,070 |
|
|
|
2,987 |
|
|
|
1,979 |
|
Loans receivable, net |
|
1,895,886 |
|
|
|
1,787,607 |
|
|
|
1,695,047 |
|
|
|
1,614,428 |
|
|
|
1,493,127 |
|
Accrued interest
receivable |
|
18,010 |
|
|
|
16,624 |
|
|
|
16,054 |
|
|
|
15,435 |
|
|
|
15,049 |
|
Premises and equipment,
net |
|
16,053 |
|
|
|
16,453 |
|
|
|
16,856 |
|
|
|
17,215 |
|
|
|
17,446 |
|
Right of use assets |
|
31,272 |
|
|
|
32,110 |
|
|
|
32,435 |
|
|
|
33,147 |
|
|
|
33,423 |
|
Federal Home Loan Bank of New
York stock (FHLBNY), at cost |
|
19,377 |
|
|
|
18,870 |
|
|
|
19,195 |
|
|
|
19,209 |
|
|
|
24,661 |
|
Deferred tax assets |
|
14,332 |
|
|
|
15,984 |
|
|
|
15,924 |
|
|
|
15,413 |
|
|
|
16,137 |
|
Other assets |
|
24,723 |
|
|
|
16,286 |
|
|
|
15,919 |
|
|
|
15,799 |
|
|
|
13,988 |
|
Total assets |
$ |
2,750,722 |
|
|
$ |
2,623,863 |
|
|
$ |
2,671,957 |
|
|
$ |
2,539,534 |
|
|
$ |
2,311,989 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
1,507,620 |
|
|
$ |
1,401,132 |
|
|
$ |
1,442,013 |
|
|
$ |
1,336,877 |
|
|
$ |
1,252,412 |
|
Operating lease liabilities |
|
32,684 |
|
|
|
33,459 |
|
|
|
33,716 |
|
|
|
34,308 |
|
|
|
34,532 |
|
Accrued interest payable |
|
11,965 |
|
|
|
8,385 |
|
|
|
4,704 |
|
|
|
1,767 |
|
|
|
1,390 |
|
Advance payments by borrowers for taxes and insurance |
|
10,778 |
|
|
|
13,743 |
|
|
|
12,402 |
|
|
|
14,902 |
|
|
|
9,724 |
|
Borrowings |
|
684,421 |
|
|
|
675,100 |
|
|
|
682,100 |
|
|
|
648,375 |
|
|
|
517,375 |
|
Other liabilities |
|
11,859 |
|
|
|
6,986 |
|
|
|
6,540 |
|
|
|
7,264 |
|
|
|
3,856 |
|
Total liabilities |
|
2,259,327 |
|
|
|
2,138,805 |
|
|
|
2,181,475 |
|
|
|
2,043,493 |
|
|
|
1,819,289 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value; 100,000,000 shares
authorized |
|
225,000 |
|
|
|
225,000 |
|
|
|
225,000 |
|
|
|
225,000 |
|
|
|
225,000 |
|
Common stock, $0.01 par value; 200,000,000 shares authorized |
|
249 |
|
|
|
249 |
|
|
|
249 |
|
|
|
249 |
|
|
|
249 |
|
Treasury stock, at cost |
|
(9,747 |
) |
|
|
(10,975 |
) |
|
|
(5,202 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Additional paid-in-capital |
|
207,106 |
|
|
|
207,626 |
|
|
|
207,287 |
|
|
|
206,883 |
|
|
|
206,508 |
|
Retained earnings |
|
97,420 |
|
|
|
96,902 |
|
|
|
94,312 |
|
|
|
94,399 |
|
|
|
92,955 |
|
Accumulated other comprehensive loss |
|
(15,649 |
) |
|
|
(20,468 |
) |
|
|
(17,597 |
) |
|
|
(16,629 |
) |
|
|
(17,860 |
) |
Unearned compensation ─ ESOP |
|
(12,984 |
) |
|
|
(13,276 |
) |
|
|
(13,567 |
) |
|
|
(13,859 |
) |
|
|
(14,150 |
) |
Total stockholders' equity |
|
491,395 |
|
|
|
485,058 |
|
|
|
490,482 |
|
|
|
496,041 |
|
|
|
492,700 |
|
Total liabilities and stockholders' equity |
$ |
2,750,722 |
|
|
$ |
2,623,863 |
|
|
$ |
2,671,957 |
|
|
$ |
2,539,534 |
|
|
$ |
2,311,989 |
|
(1) Included for the
quarterly period ended December 31, 2023, September 30, 2023, June
30, 2023 and March 31, 2023 were $0.4 million, $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
Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
|
Three Months Ended |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans receivable |
$ |
27,814 |
|
|
$ |
25,276 |
|
|
$ |
23,015 |
|
|
$ |
19,700 |
|
|
$ |
18,550 |
|
Interest on deposits due from banks |
|
990 |
|
|
|
1,969 |
|
|
|
1,817 |
|
|
|
197 |
|
|
|
199 |
|
Interest and dividend on securities and FHLBNY stock |
|
6,146 |
|
|
|
6,261 |
|
|
|
6,223 |
|
|
|
6,459 |
|
|
|
6,184 |
|
Total interest and dividend income |
|
34,950 |
|
|
|
33,506 |
|
|
|
31,055 |
|
|
|
26,356 |
|
|
|
24,933 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on certificates of deposit |
|
5,103 |
|
|
|
4,362 |
|
|
|
3,881 |
|
|
|
3,225 |
|
|
|
1,786 |
|
Interest on other deposits |
|
5,706 |
|
|
|
5,639 |
|
|
|
4,413 |
|
|
|
2,812 |
|
|
|
3,649 |
|
Interest on borrowings |
|
6,944 |
|
|
|
6,963 |
|
|
|
6,479 |
|
|
|
5,074 |
|
|
|
3,332 |
|
Total interest expense |
|
17,753 |
|
|
|
16,964 |
|
|
|
14,773 |
|
|
|
11,111 |
|
|
|
8,767 |
|
Net interest income |
|
17,197 |
|
|
|
16,542 |
|
|
|
16,282 |
|
|
|
15,245 |
|
|
|
16,166 |
|
(Benefit) provision for credit
losses |
|
(375 |
) |
|
|
535 |
|
|
|
987 |
|
|
|
(174 |
) |
|
|
12,641 |
|
Net interest income after provision (benefit) for credit
losses |
|
17,572 |
|
|
|
16,007 |
|
|
|
15,295 |
|
|
|
15,419 |
|
|
|
3,525 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
498 |
|
|
|
516 |
|
|
|
481 |
|
|
|
491 |
|
|
|
481 |
|
Brokerage commissions |
|
13 |
|
|
|
17 |
|
|
|
35 |
|
|
|
15 |
|
|
|
180 |
|
Late and prepayment charges |
|
365 |
|
|
|
899 |
|
|
|
372 |
|
|
|
729 |
|
|
|
263 |
|
Income on sale of mortgage loans |
|
244 |
|
|
|
173 |
|
|
|
82 |
|
|
|
99 |
|
|
|
7 |
|
Loan origination (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(557 |
) |
Grant income |
|
438 |
|
|
|
3,718 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other |
|
(273 |
) |
|
|
304 |
|
|
|
522 |
|
|
|
485 |
|
|
|
63 |
|
Total non-interest income |
|
1,285 |
|
|
|
5,627 |
|
|
|
1,492 |
|
|
|
1,819 |
|
|
|
437 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
8,262 |
|
|
|
7,566 |
|
|
|
7,425 |
|
|
|
7,446 |
|
|
|
6,501 |
|
Occupancy and equipment |
|
3,686 |
|
|
|
3,588 |
|
|
|
3,724 |
|
|
|
3,570 |
|
|
|
3,928 |
|
Data processing expenses |
|
1,101 |
|
|
|
1,582 |
|
|
|
1,208 |
|
|
|
1,192 |
|
|
|
1,114 |
|
Direct loan expenses |
|
497 |
|
|
|
369 |
|
|
|
345 |
|
|
|
412 |
|
|
|
454 |
|
Provision for contingencies |
|
418 |
|
|
|
391 |
|
|
|
517 |
|
|
|
985 |
|
|
|
(440 |
) |
Insurance and surety bond premiums |
|
250 |
|
|
|
255 |
|
|
|
248 |
|
|
|
265 |
|
|
|
270 |
|
Office supplies, telephone and postage |
|
294 |
|
|
|
301 |
|
|
|
489 |
|
|
|
399 |
|
|
|
375 |
|
Professional fees |
|
2,040 |
|
|
|
1,693 |
|
|
|
1,904 |
|
|
|
1,455 |
|
|
|
1,571 |
|
Grain (recoveries) and write-off |
|
(152 |
) |
|
|
(69 |
) |
|
|
(346 |
) |
|
|
(914 |
) |
|
|
(515 |
) |
Marketing and promotional expenses |
|
146 |
|
|
|
248 |
|
|
|
303 |
|
|
|
128 |
|
|
|
256 |
|
Directors fees and regulatory assessment |
|
173 |
|
|
|
169 |
|
|
|
160 |
|
|
|
155 |
|
|
|
196 |
|
Other operating expenses |
|
1,182 |
|
|
|
1,223 |
|
|
|
1,112 |
|
|
|
1,268 |
|
|
|
2,055 |
|
Total non-interest expense |
|
17,897 |
|
|
|
17,316 |
|
|
|
17,089 |
|
|
|
16,361 |
|
|
|
15,765 |
|
Income (loss) before income taxes |
|
960 |
|
|
|
4,318 |
|
|
|
(302 |
) |
|
|
877 |
|
|
|
(11,803 |
) |
Provision (benefit) for income
taxes |
|
442 |
|
|
|
1,728 |
|
|
|
(215 |
) |
|
|
546 |
|
|
|
(2,589 |
) |
Net income (loss) |
$ |
518 |
|
|
$ |
2,590 |
|
|
$ |
(87 |
) |
|
$ |
331 |
|
|
$ |
(9,214 |
) |
Earnings (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.02 |
|
|
$ |
0.12 |
|
|
$ |
(0.00 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
Diluted |
$ |
0.02 |
|
|
$ |
0.12 |
|
|
$ |
(0.00 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
22,224,945 |
|
|
|
22,272,076 |
|
|
|
23,208,168 |
|
|
|
23,293,013 |
|
|
|
23,168,097 |
|
Diluted |
|
22,406,102 |
|
|
|
22,349,217 |
|
|
|
23,208,168 |
|
|
|
23,324,532 |
|
|
|
23,168,097 |
|
(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
Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
|
|
For the Years Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
Variance $ |
|
|
Variance % |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans receivable |
|
$ |
95,805 |
|
|
$ |
69,865 |
|
|
$ |
25,940 |
|
|
|
37.13 |
% |
Interest on deposits due from banks |
|
|
4,973 |
|
|
|
713 |
|
|
|
4,260 |
|
|
|
597.48 |
% |
Interest and dividend on securities and FHLBNY stock |
|
|
25,089 |
|
|
|
12,174 |
|
|
|
12,915 |
|
|
|
106.09 |
% |
Total interest and dividend income |
|
|
125,867 |
|
|
|
82,752 |
|
|
|
43,115 |
|
|
|
52.10 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on certificates of deposit |
|
|
16,571 |
|
|
|
4,148 |
|
|
|
12,423 |
|
|
|
299.49 |
% |
Interest on other deposits |
|
|
18,570 |
|
|
|
5,802 |
|
|
|
12,768 |
|
|
|
220.06 |
% |
Interest on borrowings |
|
|
25,460 |
|
|
|
6,199 |
|
|
|
19,261 |
|
|
|
310.71 |
% |
Total interest expense |
|
|
60,601 |
|
|
|
16,149 |
|
|
|
44,452 |
|
|
|
275.26 |
% |
Net interest income |
|
|
65,266 |
|
|
|
66,603 |
|
|
|
(1,337 |
) |
|
|
(2.01 |
%) |
Provision for credit
losses |
|
|
973 |
|
|
|
24,046 |
|
|
|
(23,073 |
) |
|
|
(95.95 |
%) |
Net interest income after provision for credit
losses |
|
|
64,293 |
|
|
|
42,557 |
|
|
|
21,736 |
|
|
|
51.08 |
% |
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
1,986 |
|
|
|
1,830 |
|
|
|
156 |
|
|
|
8.52 |
% |
Brokerage commissions |
|
|
80 |
|
|
|
1,020 |
|
|
|
(940 |
) |
|
|
(92.16 |
%) |
Late and prepayment charges |
|
|
2,365 |
|
|
|
623 |
|
|
|
1,742 |
|
|
|
279.61 |
% |
Income on sale of mortgage loans |
|
|
598 |
|
|
|
741 |
|
|
|
(143 |
) |
|
|
(19.30 |
%) |
Loan origination |
|
|
— |
|
|
|
1,286 |
|
|
|
(1,286 |
) |
|
|
(100.00 |
%) |
Grant income |
|
|
4,156 |
|
|
|
— |
|
|
|
4,156 |
|
|
|
— |
% |
Loss on sale of premises and equipment |
|
|
— |
|
|
|
(436 |
) |
|
|
436 |
|
|
|
(100.00 |
%) |
Other |
|
|
1,038 |
|
|
|
1,355 |
|
|
|
(317 |
) |
|
|
(23.39 |
%) |
Total non-interest income |
|
|
10,223 |
|
|
|
6,419 |
|
|
|
3,804 |
|
|
|
59.26 |
% |
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
30,699 |
|
|
|
27,914 |
|
|
|
2,785 |
|
|
|
9.98 |
% |
Occupancy and equipment |
|
|
14,568 |
|
|
|
13,968 |
|
|
|
600 |
|
|
|
4.30 |
% |
Data processing expenses |
|
|
5,083 |
|
|
|
3,779 |
|
|
|
1,304 |
|
|
|
34.51 |
% |
Direct loan expenses |
|
|
1,623 |
|
|
|
2,487 |
|
|
|
(864 |
) |
|
|
(34.74 |
%) |
Provision for contingencies |
|
|
2,311 |
|
|
|
126 |
|
|
|
2,185 |
|
|
|
1,734.13 |
% |
Insurance and surety bond premiums |
|
|
1,018 |
|
|
|
870 |
|
|
|
148 |
|
|
|
17.01 |
% |
Office supplies, telephone and postage |
|
|
1,483 |
|
|
|
1,555 |
|
|
|
(72 |
) |
|
|
(4.63 |
%) |
Professional fees |
|
|
7,092 |
|
|
|
5,904 |
|
|
|
1,188 |
|
|
|
20.12 |
% |
Contribution to the Ponce De Leon Foundation |
|
|
— |
|
|
|
4,995 |
|
|
|
(4,995 |
) |
|
|
(100.00 |
%) |
Grain (recoveries) and write-off |
|
|
(1,481 |
) |
|
|
17,940 |
|
|
|
(19,421 |
) |
|
|
(108.26 |
%) |
Marketing and promotional expenses |
|
|
825 |
|
|
|
593 |
|
|
|
232 |
|
|
|
39.12 |
% |
Directors fees and regulatory assessment |
|
|
657 |
|
|
|
705 |
|
|
|
(48 |
) |
|
|
(6.81 |
%) |
Other operating expenses |
|
|
4,785 |
|
|
|
4,986 |
|
|
|
(201 |
) |
|
|
(4.03 |
%) |
Total non-interest expense |
|
|
68,663 |
|
|
|
85,822 |
|
|
|
(17,159 |
) |
|
|
(19.99 |
%) |
Income (loss) before income taxes |
|
|
5,853 |
|
|
|
(36,846 |
) |
|
|
42,699 |
|
|
|
(115.89 |
%) |
Provision (benefit) for income
taxes |
|
|
2,501 |
|
|
|
(6,845 |
) |
|
|
9,346 |
|
|
|
(136.54 |
%) |
Net income (loss) |
|
$ |
3,352 |
|
|
$ |
(30,001 |
) |
|
$ |
33,353 |
|
|
|
(111.17 |
%) |
Earnings (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.15 |
|
|
$ |
(1.32 |
) |
|
$ |
1.47 |
|
|
|
(111.15 |
%) |
Diluted |
|
$ |
0.15 |
|
|
$ |
(1.32 |
) |
|
$ |
1.47 |
|
|
|
(111.11 |
%) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
22,745,317 |
|
|
|
22,690,943 |
|
|
|
54,374 |
|
|
|
0.24 |
% |
Diluted |
|
|
22,822,313 |
|
|
|
22,690,943 |
|
|
|
131,370 |
|
|
|
0.58 |
% |
Ponce Financial Group, Inc. and Subsidiaries
Key Metrics
|
At or for the Three Months Ended |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
0.08 |
% |
|
|
0.39 |
% |
|
|
(0.01 |
%) |
|
|
0.06 |
% |
|
|
(1.62 |
%) |
Return on average equity
(1) |
|
0.42 |
% |
|
|
2.11 |
% |
|
|
(0.07 |
%) |
|
|
0.27 |
% |
|
|
(7.28 |
%) |
Net interest rate spread (1)
(2) |
|
1.63 |
% |
|
|
1.58 |
% |
|
|
1.66 |
% |
|
|
1.78 |
% |
|
|
2.13 |
% |
Net interest margin (1)
(3) |
|
2.66 |
% |
|
|
2.58 |
% |
|
|
2.65 |
% |
|
|
2.75 |
% |
|
|
2.97 |
% |
Non-interest expense to
average assets (1) |
|
2.66 |
% |
|
|
2.58 |
% |
|
|
2.65 |
% |
|
|
2.79 |
% |
|
|
2.78 |
% |
Efficiency ratio (4) |
|
96.83 |
% |
|
|
78.11 |
% |
|
|
96.15 |
% |
|
|
95.88 |
% |
|
|
94.95 |
% |
Average interest-earning
assets to average interest- bearing liabilities |
|
137.49 |
% |
|
|
137.92 |
% |
|
|
141.14 |
% |
|
|
148.20 |
% |
|
|
152.30 |
% |
Average equity to average
assets |
|
18.25 |
% |
|
|
18.32 |
% |
|
|
19.21 |
% |
|
|
20.91 |
% |
|
|
22.32 |
% |
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to risk weighted
assets (Bank only) |
|
23.30 |
% |
|
|
25.10 |
% |
|
|
26.30 |
% |
|
|
27.54 |
% |
|
|
30.53 |
% |
Tier 1 capital to risk
weighted assets (Bank only) |
|
22.05 |
% |
|
|
23.85 |
% |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
Common equity Tier 1 capital
to risk-weighted assets (Bank only) |
|
22.05 |
% |
|
|
23.85 |
% |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
Tier 1 capital to average
assets (Bank only) |
|
17.49 |
% |
|
|
17.51 |
% |
|
|
17.95 |
% |
|
|
19.51 |
% |
|
|
20.47 |
% |
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on
loans as a percentage of total loans |
|
1.36 |
% |
|
|
1.51 |
% |
|
|
1.64 |
% |
|
|
1.77 |
% |
|
|
2.27 |
% |
Allowance for credit losses on
loans as a percentage of nonperforming loans |
|
152.99 |
% |
|
|
169.49 |
% |
|
|
167.06 |
% |
|
|
149.73 |
% |
|
|
252.33 |
% |
Net (charge-offs) recoveries
to average outstanding loans (1) |
|
(0.24 |
%) |
|
|
(0.34 |
%) |
|
|
(0.41 |
%) |
|
|
(0.57 |
%) |
|
|
(0.85 |
%) |
Non-performing loans as a
percentage of total gross loans |
|
0.89 |
% |
|
|
0.89 |
% |
|
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
Non-performing loans as a
percentage of total assets |
|
0.62 |
% |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
Total non-performing assets as
a percentage of total assets |
|
0.62 |
% |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
Total non-performing assets
and accruing modifications to borrowers experiencing financial
difficulty as a percentage of total assets (5) |
|
0.81 |
% |
|
|
0.82 |
% |
|
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of offices |
|
18 |
|
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
Number of full-time equivalent
employees |
|
237 |
|
|
|
243 |
|
|
|
244 |
|
|
|
251 |
|
|
|
253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 the period in
2022, the balances only include troubled debt
restructurings.
Ponce Financial Group, Inc. and
Subsidiaries
Securities Portfolio
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
|
|
(in thousands) |
|
|
(in thousands) |
|
Available-for-Sale
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Bonds |
|
$ |
2,990 |
|
|
$ |
— |
|
|
$ |
(206 |
) |
|
$ |
2,784 |
|
|
$ |
2,985 |
|
|
$ |
— |
|
|
$ |
(296 |
) |
|
$ |
2,689 |
|
Corporate Bonds |
|
|
25,790 |
|
|
|
— |
|
|
|
(2,122 |
) |
|
|
23,668 |
|
|
|
25,824 |
|
|
|
— |
|
|
|
(2,465 |
) |
|
|
23,359 |
|
Mortgage-Backed
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (1) |
|
|
39,375 |
|
|
|
— |
|
|
|
(6,227 |
) |
|
|
33,148 |
|
|
|
44,503 |
|
|
|
— |
|
|
|
(6,726 |
) |
|
|
37,777 |
|
FHLMC Certificates |
|
|
10,163 |
|
|
|
— |
|
|
|
(1,482 |
) |
|
|
8,681 |
|
|
|
11,310 |
|
|
|
— |
|
|
|
(1,676 |
) |
|
|
9,634 |
|
FNMA Certificates |
|
|
61,359 |
|
|
|
— |
|
|
|
(9,842 |
) |
|
|
51,517 |
|
|
|
67,199 |
|
|
|
— |
|
|
|
(11,271 |
) |
|
|
55,928 |
|
GNMA Certificates |
|
|
104 |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
|
|
122 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
118 |
|
Total available-for-sale securities |
|
$ |
139,781 |
|
|
$ |
— |
|
|
$ |
(19,879 |
) |
|
$ |
119,902 |
|
|
$ |
151,943 |
|
|
$ |
— |
|
|
$ |
(22,438 |
) |
|
$ |
129,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-Maturity
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency Bonds |
|
$ |
25,000 |
|
|
$ |
— |
|
|
$ |
(181 |
) |
|
$ |
24,819 |
|
|
$ |
35,000 |
|
|
$ |
— |
|
|
$ |
(380 |
) |
|
$ |
34,620 |
|
Corporate Bonds |
|
|
82,500 |
|
|
|
— |
|
|
|
(2,691 |
) |
|
|
79,809 |
|
|
|
82,500 |
|
|
|
57 |
|
|
|
(3,819 |
) |
|
|
78,738 |
|
Mortgage-Backed
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (1) |
|
|
212,093 |
|
|
|
104 |
|
|
|
(5,170 |
) |
|
|
207,027 |
|
|
|
235,479 |
|
|
|
192 |
|
|
|
(5,558 |
) |
|
|
230,113 |
|
FHLMC Certificates |
|
|
3,897 |
|
|
|
— |
|
|
|
(244 |
) |
|
|
3,653 |
|
|
|
4,120 |
|
|
|
— |
|
|
|
(268 |
) |
|
|
3,852 |
|
FNMA Certificates |
|
|
118,944 |
|
|
|
— |
|
|
|
(4,088 |
) |
|
|
114,856 |
|
|
|
131,918 |
|
|
|
— |
|
|
|
(5,227 |
) |
|
|
126,691 |
|
SBA Certificates |
|
|
19,712 |
|
|
|
166 |
|
|
|
— |
|
|
|
19,878 |
|
|
|
21,803 |
|
|
|
34 |
|
|
|
— |
|
|
|
21,837 |
|
Allowance for Credit
Losses |
|
|
(398 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total held-to-maturity securities |
|
$ |
461,748 |
|
|
$ |
270 |
|
|
$ |
(12,374 |
) |
|
$ |
450,042 |
|
|
$ |
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.
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Beginning balance |
|
$ |
— |
|
|
$ |
— |
|
CECL adoption |
|
|
662 |
|
|
|
— |
|
Provision for credit
losses |
|
|
(264 |
) |
|
|
— |
|
Allowance for credit losses on
securities |
|
$ |
398 |
|
|
$ |
— |
|
Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio
|
|
As of |
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
|
(Dollars in thousands) |
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Owned |
|
$ |
343,689 |
|
|
|
17.89 |
% |
|
$ |
347,082 |
|
|
|
19.13 |
% |
|
$ |
351,754 |
|
|
|
20.43 |
% |
|
$ |
354,559 |
|
|
|
21.60 |
% |
|
$ |
343,968 |
|
|
|
22.54 |
% |
Owner-Occupied |
|
|
152,311 |
|
|
|
7.93 |
% |
|
|
151,866 |
|
|
|
8.37 |
% |
|
|
154,116 |
|
|
|
8.94 |
% |
|
|
149,481 |
|
|
|
9.10 |
% |
|
|
134,878 |
|
|
|
8.84 |
% |
Multifamily residential |
|
|
550,559 |
|
|
|
28.65 |
% |
|
|
553,694 |
|
|
|
30.52 |
% |
|
|
550,033 |
|
|
|
31.94 |
% |
|
|
553,430 |
|
|
|
33.71 |
% |
|
|
494,667 |
|
|
|
32.42 |
% |
Nonresidential properties |
|
|
342,343 |
|
|
|
17.81 |
% |
|
|
321,472 |
|
|
|
17.71 |
% |
|
|
317,416 |
|
|
|
18.43 |
% |
|
|
314,560 |
|
|
|
19.17 |
% |
|
|
308,043 |
|
|
|
20.19 |
% |
Construction and land |
|
|
503,925 |
|
|
|
26.22 |
% |
|
|
411,383 |
|
|
|
22.67 |
% |
|
|
315,843 |
|
|
|
18.34 |
% |
|
|
235,157 |
|
|
|
14.33 |
% |
|
|
185,018 |
|
|
|
12.13 |
% |
Total mortgage loans |
|
|
1,892,827 |
|
|
|
98.50 |
% |
|
|
1,785,497 |
|
|
|
98.40 |
% |
|
|
1,689,162 |
|
|
|
98.08 |
% |
|
|
1,607,187 |
|
|
|
97.91 |
% |
|
|
1,466,574 |
|
|
|
96.12 |
% |
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business loans (1) |
|
|
19,779 |
|
|
|
1.03 |
% |
|
|
18,416 |
|
|
|
1.02 |
% |
|
|
21,041 |
|
|
|
1.22 |
% |
|
|
19,890 |
|
|
|
1.21 |
% |
|
|
39,965 |
|
|
|
2.62 |
% |
Consumer loans (2) |
|
|
8,966 |
|
|
|
0.47 |
% |
|
|
10,416 |
|
|
|
0.58 |
% |
|
|
11,958 |
|
|
|
0.70 |
% |
|
|
14,227 |
|
|
|
0.88 |
% |
|
|
19,129 |
|
|
|
1.26 |
% |
Total non-mortgage loans |
|
|
28,745 |
|
|
|
1.50 |
% |
|
|
28,832 |
|
|
|
1.60 |
% |
|
|
32,999 |
|
|
|
1.92 |
% |
|
|
34,117 |
|
|
|
2.09 |
% |
|
|
59,094 |
|
|
|
3.88 |
% |
Total loans, gross |
|
|
1,921,572 |
|
|
|
100.00 |
% |
|
|
1,814,329 |
|
|
|
100.00 |
% |
|
|
1,722,161 |
|
|
|
100.00 |
% |
|
|
1,641,304 |
|
|
|
100.00 |
% |
|
|
1,525,668 |
|
|
|
100.00 |
% |
Net deferred loan origination
costs |
|
|
468 |
|
|
|
|
|
|
692 |
|
|
|
|
|
|
1,059 |
|
|
|
|
|
|
2,099 |
|
|
|
|
|
|
2,051 |
|
|
|
|
Allowance for credit losses on
loans |
|
|
(26,154 |
) |
|
|
|
|
|
(27,414 |
) |
|
|
|
|
|
(28,173 |
) |
|
|
|
|
|
(28,975 |
) |
|
|
|
|
|
(34,592 |
) |
|
|
|
Loans, net |
|
$ |
1,895,886 |
|
|
|
|
|
$ |
1,787,607 |
|
|
|
|
|
$ |
1,695,047 |
|
|
|
|
|
$ |
1,614,428 |
|
|
|
|
|
$ |
1,493,127 |
|
|
|
|
(1) As of December 31,
2023, September 30, 2023, June 30, 2023, March 31, 2023 and
December 31, 2022, business loans include $1.0 million, $1.1
million, $3.2 million, $3.6 million and $20.0 million,
respectively, of PPP loans.
(2) As of December 31, 2023, September 30,
2023, June 30, 2023, March 31, 2023 and December 31, 2022, consumer
loans include $8.0 million, $9.3 million, $11.2 million, $13.4
million and $18.2 million, respectively, of loans originated by the
Bank pursuant to its arrangement with Grain.
Ponce Financial Group, Inc. and
Subsidiaries
Grain Loan Exposure
Grain Technologies, Inc. ("Grain") Total Exposure as of
December 31, 2023 |
|
(in thousands) |
|
Receivable from
Grain |
|
|
|
Microloans originated - put back to Grain (inception-to-December
31, 2023) |
|
$ |
24,104 |
|
Write-downs, net of recoveries
(inception-to-date as of December 31, 2023) |
|
|
(15,459 |
) |
Cash receipts from Grain
(inception-to-December 31, 2023) |
|
|
(6,819 |
) |
Grant/reserve |
|
|
(1,826 |
) |
Net receivable as of December
31, 2023 |
|
$ |
— |
|
Microloan receivables
from Grain Borrowers |
|
|
|
Grain originated loans
receivable as of December 31, 2023 |
|
$ |
7,985 |
|
Allowance for credit losses on
loans as of December 31, 2023 (1) |
|
|
(7,026 |
) |
Microloans, net of allowance
for credit losses on loans as of December 31, 2023 |
|
$ |
959 |
|
Investments |
|
|
|
Investment in Grain |
|
$ |
1,000 |
|
Investment in Grain write-off
in Q3 2022 |
|
|
(1,000 |
) |
Investment in Grain as of
December 31, 2023 |
|
|
— |
|
Total exposure related to
Grain as of December 31, 2023 (2) |
|
$ |
959 |
|
(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.
(2) Total remaining exposure to Grain borrowers.
These loans are now serviced by the Bank.
On November 1, 2023, Ponce Financial Group, Inc. and Grain
signed a Perpetual Software License Agreement in order for the Bank
to assume the servicing of the remaining Grain loans. In order to
facilitate the transfer of the servicing responsibilities to the
Bank, Grain granted the Bank a perpetual right and license to use
the Grain software, including the source code to service the
remaining loans.
Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans
|
For the Three Months Ended |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
(Dollars in thousands) |
|
Allowance for credit losses on loans at beginning of the
period |
$ |
27,414 |
|
|
$ |
28,173 |
|
|
$ |
28,975 |
|
|
$ |
34,592 |
|
|
$ |
25,108 |
|
Provision (benefit) for credit
losses on loans |
|
(126 |
) |
|
|
750 |
|
|
|
934 |
|
|
|
(321 |
) |
|
|
12,641 |
|
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 |
|
(63 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
(1,135 |
) |
|
|
(1,592 |
) |
|
|
(1,931 |
) |
|
|
(2,569 |
) |
|
|
(3,659 |
) |
Total charge-offs |
|
(1,198 |
) |
|
|
(1,592 |
) |
|
|
(1,931 |
) |
|
|
(2,569 |
) |
|
|
(3,659 |
) |
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Owner occupied |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Multifamily residences |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
64 |
|
|
|
80 |
|
|
|
195 |
|
|
|
363 |
|
|
|
502 |
|
Total recoveries |
|
64 |
|
|
|
83 |
|
|
|
195 |
|
|
|
363 |
|
|
|
502 |
|
Net (charge-offs)
recoveries |
|
(1,134 |
) |
|
|
(1,509 |
) |
|
|
(1,736 |
) |
|
|
(2,206 |
) |
|
|
(3,157 |
) |
Allowance for credit losses on
loans at end of the period |
$ |
26,154 |
|
|
$ |
27,414 |
|
|
$ |
28,173 |
|
|
$ |
28,975 |
|
|
$ |
34,592 |
|
Ponce Financial Group, Inc. and Subsidiaries
Deposits
|
|
As of |
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
|
(Dollars in thousands) |
|
Demand |
|
$ |
243,384 |
|
|
|
16.14 |
% |
|
$ |
265,862 |
|
|
|
18.98 |
% |
|
$ |
266,545 |
|
|
|
18.48 |
% |
|
$ |
282,741 |
|
|
|
21.15 |
% |
|
$ |
289,149 |
|
|
|
23.08 |
% |
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA accounts |
|
|
19,676 |
|
|
|
1.31 |
% |
|
|
22,519 |
|
|
|
1.61 |
% |
|
|
22,754 |
|
|
|
1.57 |
% |
|
|
21,735 |
|
|
|
1.63 |
% |
|
|
24,349 |
|
|
|
1.94 |
% |
Money market accounts (1) |
|
|
432,735 |
|
|
|
28.70 |
% |
|
|
370,500 |
|
|
|
26.44 |
% |
|
|
387,970 |
|
|
|
26.91 |
% |
|
|
293,140 |
|
|
|
21.93 |
% |
|
|
236,143 |
|
|
|
18.86 |
% |
Reciprocal deposits |
|
|
96,860 |
|
|
|
6.42 |
% |
|
|
82,670 |
|
|
|
5.90 |
% |
|
|
100,919 |
|
|
|
7.00 |
% |
|
|
109,649 |
|
|
|
8.20 |
% |
|
|
114,049 |
|
|
|
9.11 |
% |
Savings accounts |
|
|
114,139 |
|
|
|
7.57 |
% |
|
|
117,870 |
|
|
|
8.41 |
% |
|
|
119,635 |
|
|
|
8.30 |
% |
|
|
127,731 |
|
|
|
9.55 |
% |
|
|
130,432 |
|
|
|
10.41 |
% |
Total NOW, money market, reciprocal and savings
accounts |
|
|
663,410 |
|
|
|
44.00 |
% |
|
|
593,559 |
|
|
|
42.36 |
% |
|
|
631,278 |
|
|
|
43.78 |
% |
|
|
552,255 |
|
|
|
41.31 |
% |
|
|
504,973 |
|
|
|
40.32 |
% |
Certificates of deposit of $250K or more (1) |
|
|
132,153 |
|
|
|
8.77 |
% |
|
|
122,353 |
|
|
|
8.73 |
% |
|
|
120,043 |
|
|
|
8.32 |
% |
|
|
113,955 |
|
|
|
8.52 |
% |
|
|
106,336 |
|
|
|
8.49 |
% |
Brokered certificates of deposit (2) |
|
|
98,729 |
|
|
|
6.55 |
% |
|
|
98,729 |
|
|
|
7.05 |
% |
|
|
98,729 |
|
|
|
6.85 |
% |
|
|
98,754 |
|
|
|
7.39 |
% |
|
|
98,754 |
|
|
|
7.89 |
% |
Listing service deposits (2) |
|
|
14,433 |
|
|
|
0.96 |
% |
|
|
15,180 |
|
|
|
1.08 |
% |
|
|
20,258 |
|
|
|
1.40 |
% |
|
|
28,417 |
|
|
|
2.13 |
% |
|
|
35,813 |
|
|
|
2.86 |
% |
All other certificates of deposit less than $250K
(1) |
|
|
355,511 |
|
|
|
23.58 |
% |
|
|
305,449 |
|
|
|
21.80 |
% |
|
|
305,160 |
|
|
|
21.17 |
% |
|
|
260,755 |
|
|
|
19.50 |
% |
|
|
217,387 |
|
|
|
17.36 |
% |
Total certificates of deposit |
|
|
600,826 |
|
|
|
39.86 |
% |
|
|
541,711 |
|
|
|
38.66 |
% |
|
|
544,190 |
|
|
|
37.74 |
% |
|
|
501,881 |
|
|
|
37.54 |
% |
|
|
458,290 |
|
|
|
36.60 |
% |
Total interest-bearing
deposits |
|
|
1,264,236 |
|
|
|
83.86 |
% |
|
|
1,135,270 |
|
|
|
81.02 |
% |
|
|
1,175,468 |
|
|
|
81.52 |
% |
|
|
1,054,136 |
|
|
|
78.85 |
% |
|
|
963,263 |
|
|
|
76.92 |
% |
Total deposits |
|
$ |
1,507,620 |
|
|
|
100.00 |
% |
|
$ |
1,401,132 |
|
|
|
100.00 |
% |
|
$ |
1,442,013 |
|
|
|
100.00 |
% |
|
$ |
1,336,877 |
|
|
|
100.00 |
% |
|
$ |
1,252,412 |
|
|
|
100.00 |
% |
(1) As of June 30, 2023,
March 31, 2023 and December 31, 2022, $150.6 million, $115.3
million and $81.7 million, respectively, of SaveBetter deposits
were reclassified from money market accounts to certificates of
deposits. $36.4 million, $37.1 million and $36.2 million,
respectively, were reclassified to Certificates of deposits of
$250K or more and $114.2 million, $78.2 million and $45.5 million,
respectively, were reclassified to certificates of deposit less
than $250K.
(2) As of December 31, 2023, September 30,
2023, June 30, 2023, March 31, 2023 and December 31, 2022, there
were $0.3 million, $0.3 million, $3.3 million, $9.5 million and
$13.6 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
|
December 31, |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
Scheduled
Maturity |
|
|
Redeemable
at Call Date |
|
|
Weighted
Average
Rate |
|
|
Scheduled
Maturity |
|
|
Redeemable
at Call Date |
|
|
Weighted
Average
Rate |
|
|
(Dollars in thousands) |
|
Overnight line of credit
advance |
$ |
— |
|
|
$ |
— |
|
|
|
— |
% |
|
$ |
6,000 |
|
|
$ |
6,000 |
|
|
|
4.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term advances
ending: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
178,375 |
|
|
$ |
178,375 |
|
|
|
4.32 |
|
2024 |
|
363,321 |
|
|
|
363,321 |
|
|
|
4.55 |
|
|
|
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 |
|
2028 |
|
9,100 |
|
|
|
9,100 |
|
|
|
3.84 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Thereafter |
|
50,000 |
|
|
|
50,000 |
|
|
|
3.35 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
3.35 |
|
|
$ |
684,421 |
|
|
$ |
684,421 |
|
|
|
4.10 |
% |
|
$ |
517,375 |
|
|
$ |
517,375 |
|
|
|
3.90 |
% |
Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets
|
As of Three Months Ended |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
(Dollars in thousands) |
|
Non-accrual
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
793 |
|
|
$ |
396 |
|
|
$ |
296 |
|
|
$ |
2,836 |
|
|
$ |
2,844 |
|
Owner occupied |
|
1,682 |
|
|
|
1,685 |
|
|
|
2,363 |
|
|
|
2,245 |
|
|
|
961 |
|
Multifamily residential |
|
2,979 |
|
|
|
1,444 |
|
|
|
1,435 |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and land |
|
10,759 |
|
|
|
11,721 |
|
|
|
11,721 |
|
|
|
11,906 |
|
|
|
7,567 |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
19 |
|
|
|
209 |
|
|
|
— |
|
|
|
40 |
|
|
|
— |
|
Consumer |
|
146 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-accrual loans (not including non-accruing modifications
to borrowers experiencing financial difficulty) (1) |
$ |
16,378 |
|
|
$ |
15,455 |
|
|
$ |
15,815 |
|
|
$ |
17,027 |
|
|
$ |
11,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accruing
modifications to borrowers experiencing financial
difficulty
(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
270 |
|
|
$ |
270 |
|
|
$ |
209 |
|
|
$ |
213 |
|
|
$ |
217 |
|
Owner occupied |
|
447 |
|
|
|
449 |
|
|
|
840 |
|
|
|
2,020 |
|
|
|
2,027 |
|
Multifamily residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
93 |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-accruing modifications to borrowers experiencing
financial difficulty (1) |
|
717 |
|
|
|
719 |
|
|
|
1,049 |
|
|
|
2,324 |
|
|
|
2,337 |
|
Total non-accrual loans |
$ |
17,095 |
|
|
$ |
16,174 |
|
|
$ |
16,864 |
|
|
$ |
19,351 |
|
|
$ |
13,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing modifications
to borrowers experiencing financial difficulty (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
2,112 |
|
|
$ |
2,131 |
|
|
$ |
2,161 |
|
|
$ |
2,185 |
|
|
$ |
2,207 |
|
Owner occupied |
|
2,313 |
|
|
|
2,335 |
|
|
|
2,353 |
|
|
|
1,310 |
|
|
|
1,328 |
|
Multifamily residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
757 |
|
|
|
765 |
|
|
|
783 |
|
|
|
701 |
|
|
|
708 |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total accruing modifications to borrowers experiencing financial
difficulty (1) |
$ |
5,182 |
|
|
$ |
5,231 |
|
|
$ |
5,297 |
|
|
$ |
4,196 |
|
|
$ |
4,243 |
|
Total non-performing assets
and accruing modifications to borrowers experiencing financial
difficulty (1) |
$ |
22,277 |
|
|
$ |
21,405 |
|
|
$ |
22,161 |
|
|
$ |
23,547 |
|
|
$ |
17,952 |
|
Total non-performing loans to
total gross loans |
|
0.89 |
% |
|
|
0.89 |
% |
|
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
Total non-performing assets to
total assets |
|
0.62 |
% |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
Total non-performing assets
and accruing modifications to borrowers experiencing financial
difficulty as a percentage of total assets (1) |
|
0.81 |
% |
|
|
0.82 |
% |
|
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
(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 the period in
2022, the balances only include troubled debt
restructurings.
Ponce Financial Group, Inc. and
Subsidiaries
Average Balance Sheets
|
For the Three Months Ended
December 31, |
|
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) |
$ |
1,884,301 |
|
|
$ |
27,814 |
|
|
5.86 |
% |
|
$ |
1,478,308 |
|
|
$ |
18,550 |
|
|
4.98 |
% |
Securities (3) |
|
582,563 |
|
|
|
5,715 |
|
|
3.89 |
% |
|
|
636,457 |
|
|
|
5,931 |
|
|
3.70 |
% |
Other (4)
(5) |
|
96,070 |
|
|
|
1,421 |
|
|
5.87 |
% |
|
|
47,069 |
|
|
|
452 |
|
|
3.81 |
% |
Total interest-earning assets |
|
2,562,934 |
|
|
|
34,950 |
|
|
5.41 |
% |
|
|
2,161,834 |
|
|
|
24,933 |
|
|
4.58 |
% |
Non-interest-earning assets
(5) |
|
107,305 |
|
|
|
|
|
|
|
|
87,861 |
|
|
|
|
|
|
Total assets |
$ |
2,670,239 |
|
|
|
|
|
|
|
$ |
2,249,695 |
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA |
$ |
20,210 |
|
|
$ |
8 |
|
|
0.16 |
% |
|
$ |
25,349 |
|
|
$ |
22 |
|
|
0.34 |
% |
Money market
(6) |
|
474,306 |
|
|
|
5,668 |
|
|
4.74 |
% |
|
|
437,813 |
|
|
|
3,619 |
|
|
3.28 |
% |
Savings |
|
116,600 |
|
|
|
28 |
|
|
0.10 |
% |
|
|
139,115 |
|
|
|
8 |
|
|
0.02 |
% |
Certificates of deposit
(6) |
|
559,713 |
|
|
|
5,103 |
|
|
3.62 |
% |
|
|
434,368 |
|
|
|
1,786 |
|
|
1.63 |
% |
Total deposits |
|
1,170,829 |
|
|
|
10,807 |
|
|
3.66 |
% |
|
|
1,036,645 |
|
|
|
5,435 |
|
|
2.08 |
% |
Advance payments by
borrowers |
|
15,033 |
|
|
|
2 |
|
|
0.05 |
% |
|
|
12,942 |
|
|
|
— |
|
|
— |
% |
Borrowings |
|
678,235 |
|
|
|
6,944 |
|
|
4.06 |
% |
|
|
369,832 |
|
|
|
3,332 |
|
|
3.57 |
% |
Total interest-bearing liabilities |
|
1,864,097 |
|
|
|
17,753 |
|
|
3.78 |
% |
|
|
1,419,419 |
|
|
|
8,767 |
|
|
2.45 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand |
|
267,150 |
|
|
|
— |
|
|
|
|
|
325,616 |
|
|
|
— |
|
|
|
Other non-interest-bearing
liabilities |
|
51,764 |
|
|
|
— |
|
|
|
|
|
2,424 |
|
|
|
— |
|
|
|
Total non-interest-bearing liabilities |
|
318,914 |
|
|
|
— |
|
|
|
|
|
328,040 |
|
|
|
— |
|
|
|
Total liabilities |
|
2,183,011 |
|
|
|
17,753 |
|
|
|
|
|
1,747,459 |
|
|
|
8,767 |
|
|
|
Total equity |
|
487,228 |
|
|
|
|
|
|
|
|
502,236 |
|
|
|
|
|
|
Total liabilities and total equity |
$ |
2,670,239 |
|
|
|
|
|
3.78 |
% |
|
$ |
2,249,695 |
|
|
|
|
|
2.45 |
% |
Net interest income |
|
|
|
$ |
17,197 |
|
|
|
|
|
|
|
$ |
16,166 |
|
|
|
Net interest rate spread
(7) |
|
|
|
|
|
|
1.63 |
% |
|
|
|
|
|
|
|
2.13 |
% |
Net interest-earning assets
(8) |
$ |
698,837 |
|
|
|
|
|
|
|
$ |
742,415 |
|
|
|
|
|
|
Net interest margin
(9) |
|
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
|
|
2.97 |
% |
Average interest-earning
assets to interest-bearing liabilities |
|
|
|
|
|
|
137.49 |
% |
|
|
|
|
|
|
|
152.30 |
% |
(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) Includes reclassification of $65.5
million average outstanding balances and $0.5 million of interest
expenses from money market to certificates of deposit for the three
months ended December 31, 2022.
(7) Net interest rate spread represents the
difference between the weighted average yield on interest-earning
assets and the weighted average rate of interest-bearing
liabilities.
(8) Net interest-earning assets represent
total interest-earning assets less total interest-bearing
liabilities.
(9) Net interest margin represents net
interest income divided by average total interest-earning
assets.
Ponce Financial Group, Inc. and
Subsidiaries
Average Balance
Sheets
|
For the Years Ended December 31, |
|
|
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) |
$ |
1,730,275 |
|
|
$ |
95,805 |
|
|
|
5.54 |
% |
|
$ |
1,375,723 |
|
|
$ |
69,865 |
|
|
|
5.08 |
% |
Securities (3) |
|
606,815 |
|
|
|
23,342 |
|
|
|
3.85 |
% |
|
|
357,446 |
|
|
|
11,709 |
|
|
|
3.28 |
% |
Other (4)
(5) |
|
119,923 |
|
|
|
6,720 |
|
|
|
5.60 |
% |
|
|
84,133 |
|
|
|
1,178 |
|
|
|
1.40 |
% |
Total interest-earning assets |
|
2,457,013 |
|
|
|
125,867 |
|
|
|
5.12 |
% |
|
|
1,817,302 |
|
|
|
82,752 |
|
|
|
4.55 |
% |
Non-interest-earning assets
(5) |
|
115,760 |
|
|
|
|
|
|
|
|
|
124,351 |
|
|
|
|
|
|
|
Total assets |
$ |
2,572,773 |
|
|
|
|
|
|
|
|
$ |
1,941,653 |
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA |
$ |
22,168 |
|
|
$ |
33 |
|
|
|
0.15 |
% |
|
$ |
30,151 |
|
|
$ |
65 |
|
|
|
0.22 |
% |
Money market
(6) |
|
424,160 |
|
|
|
18,413 |
|
|
|
4.34 |
% |
|
|
367,838 |
|
|
|
5,604 |
|
|
|
1.52 |
% |
Savings |
|
121,550 |
|
|
|
116 |
|
|
|
0.10 |
% |
|
|
138,137 |
|
|
|
128 |
|
|
|
0.09 |
% |
Certificates of deposit
(6) |
|
528,999 |
|
|
|
16,571 |
|
|
|
3.13 |
% |
|
|
407,739 |
|
|
|
4,148 |
|
|
|
1.02 |
% |
Total deposits |
|
1,096,877 |
|
|
|
35,133 |
|
|
|
3.20 |
% |
|
|
943,865 |
|
|
|
9,945 |
|
|
|
1.05 |
% |
Advance payments by
borrowers |
|
14,869 |
|
|
|
8 |
|
|
|
0.05 |
% |
|
|
11,514 |
|
|
|
5 |
|
|
|
0.04 |
% |
Borrowings |
|
633,116 |
|
|
|
25,460 |
|
|
|
4.02 |
% |
|
|
206,969 |
|
|
|
6,199 |
|
|
|
3.00 |
% |
Total interest-bearing liabilities |
|
1,744,862 |
|
|
|
60,601 |
|
|
|
3.47 |
% |
|
|
1,162,348 |
|
|
|
16,149 |
|
|
|
1.39 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand |
|
290,335 |
|
|
|
— |
|
|
|
|
|
|
344,505 |
|
|
|
— |
|
|
|
|
Other non-interest-bearing
liabilities |
|
45,858 |
|
|
|
— |
|
|
|
|
|
|
33,225 |
|
|
|
— |
|
|
|
|
Total non-interest-bearing liabilities |
|
336,193 |
|
|
|
— |
|
|
|
|
|
|
377,730 |
|
|
|
— |
|
|
|
|
Total liabilities |
|
2,081,055 |
|
|
|
60,601 |
|
|
|
|
|
|
1,540,078 |
|
|
|
16,149 |
|
|
|
|
Total equity |
|
491,718 |
|
|
|
|
|
|
|
|
|
401,575 |
|
|
|
|
|
|
|
Total liabilities and total equity |
$ |
2,572,773 |
|
|
|
|
|
|
3.47 |
% |
|
$ |
1,941,653 |
|
|
|
|
|
|
1.39 |
% |
Net interest income |
|
|
|
$ |
65,266 |
|
|
|
|
|
|
|
|
$ |
66,603 |
|
|
|
|
Net interest rate spread
(7) |
|
|
|
|
|
|
|
1.65 |
% |
|
|
|
|
|
|
|
|
3.16 |
% |
Net interest-earning assets
(8) |
$ |
712,151 |
|
|
|
|
|
|
|
|
$ |
654,954 |
|
|
|
|
|
|
|
Net interest margin
(9) |
|
|
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
|
|
|
3.66 |
% |
Average interest-earning
assets to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing
liabilities |
|
|
|
|
|
|
|
140.81 |
% |
|
|
|
|
|
|
|
|
156.35 |
% |
(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 FRB demand deposit.
(5) FRB demand deposits for prior period have
been reclassified for consistency.
(6) Includes reclassification of $25.7
million average outstanding balances and $0.7 million of interest
expenses from money market to certificates of deposit for the year
ended December 31, 2022.
(7) Net interest rate spread represents the
difference between the weighted average yield on interest-earning
assets and the weighted average rate of interest-bearing
liabilities.
(8) Net interest-earning assets represent
total interest-earning assets less total interest-bearing
liabilities.
(9) Net interest margin represents net
interest income divided by average total interest-earning
assets.
Ponce Financial Group, Inc. and
Subsidiaries
Other Data
|
As of |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued |
|
24,886,711 |
|
|
|
24,886,711 |
|
|
|
24,886,711 |
|
|
|
24,865,476 |
|
|
|
24,861,329 |
|
Less treasury shares |
|
1,101,191 |
|
|
|
1,233,111 |
|
|
|
617,924 |
|
|
|
1,976 |
|
|
|
1,976 |
|
Common shares outstanding at
end of period |
|
23,785,520 |
|
|
|
23,653,600 |
|
|
|
24,268,787 |
|
|
|
24,863,500 |
|
|
|
24,859,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
11.20 |
|
|
$ |
10.99 |
|
|
$ |
10.94 |
|
|
$ |
10.90 |
|
|
$ |
10.77 |
|
Tangible book value per common
share |
$ |
11.20 |
|
|
$ |
10.99 |
|
|
$ |
10.94 |
|
|
$ |
10.90 |
|
|
$ |
10.77 |
|
Contact:
Frank Perez
frank.perez@poncebank.net
718-981-9000
Ponce Financial (NASDAQ:PDLB)
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From Apr 2024 to May 2024
Ponce Financial (NASDAQ:PDLB)
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From May 2023 to May 2024