Ponce Financial Group, Inc. Reports Fourth Quarter 2023 Results
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