Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the
holding company for Ponce Bank (the “Bank”), today announced
results for the second quarter of 2023.
Second Quarter 2023 Highlights (Compared
to Prior Periods):
- Net loss of ($0.1) million, or $0.00 per diluted share for the
three months ended June 30, 2023, as compared to net income of
$0.3 million, or $0.01 per diluted share for the three months ended
March 31, 2023 and net income of $0.8 million, or $0.03 per
diluted share for the three months ended June 30, 2022.
- Included in the ($0.1) million of net loss for the second
quarter of 2023 results is $31.1 million in interest and dividend
income and $1.5 million in non-interest income, offset by a $17.1
million in non-interest expense and $14.8 million in interest
expense.
- Net interest income of $16.3 million for the second quarter of
2023 increased $1.0 million, or 6.80%, from the prior quarter and
$0.8 million, or 5.13%, from the same quarter last year.
- Net interest margin was 2.65% for the second quarter of 2023,
decreased from 2.75% for the prior quarter and from 3.92% for the
same quarter last year.
- Cash and equivalents were $243.8 million as of June 30,
2023, an increase of $189.4 million, or 348.47%, 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 $605.7 million as of June 30, 2023, a
decrease of $34.7 million, or 5.59%, 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 $1.70 billion as of June 30,
2023, an increase of $201.9 million, or 13.52%, from December 31,
2022.
- Deposits were $1.44 billion as of June 30, 2023, an
increase of $189.6 million, or 15.14%, from December 31, 2022.
President and Chief Executive Officer’s
Comments
Carlos P. Naudon, Ponce Financial Group’s
President and CEO, stated “Despite the challenges we face, we’re
thrilled to have started our share buy-back program during the
second quarter of 2023. As of June 30, 2023, we have purchased
615,948 shares at an average price of $8.44 per share, well below
our book value of $10.94 per common share. Our book value per
common share also increased by $0.04 per share during the quarter.
We also saw our stock added to the Russell 3000 index which
increases the exposure and liquidity of our stock."
"We continue to show strong levels of capital
and liquidity. On the capital front, our total capital ratio at
Ponce Bank stands at 26.30%, 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") stand at $817 million, more than two and a half times of
our uninsured deposits of $325 million."
"As previously announced, we were awarded a
grant of $3.7 million from the U.S. Treasury as part of the
Community Development Financial Institution (“CDFI”) Equitable
Recovery Program which we expect to receive during the third
quarter of 2023."
"We remain committed to the communities we
serve, our Minority Depository Institution (“MDI”)/CDFI status and
to continue to invest in our people and in technology to improve
our efficiency."
Executive Chairman’s
Comment
Steven A. Tsavaris, Ponce Financial Group’s
Executive Chairman added “While the increase in rates will continue
to put pressure on growth, we were able to organically grow our
loans and deposits during the quarter. The US economy continues to
show resiliency and credit conditions remain strong. Our credit
metrics improved during the quarter with nonperforming loans ratios
declining quarter over quarter and year over year."
Selected performance metrics are as follows
(refer to “Key Metrics” for additional information):
|
|
At or for the Three Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
Performance Ratios (Annualized): |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
Return on average assets (1) |
|
|
(0.01 |
%) |
|
|
0.06 |
% |
|
|
(1.62 |
%) |
|
|
(2.80 |
%) |
|
|
0.17 |
% |
Return on average equity (1) |
|
|
(0.07 |
%) |
|
|
0.27 |
% |
|
|
(7.28 |
%) |
|
|
(11.25 |
%) |
|
|
1.01 |
% |
Net interest rate spread (1) (2) |
|
|
1.66 |
% |
|
|
1.78 |
% |
|
|
2.13 |
% |
|
|
3.08 |
% |
|
|
3.67 |
% |
Net interest margin (1) (3) |
|
|
2.65 |
% |
|
|
2.75 |
% |
|
|
2.97 |
% |
|
|
3.59 |
% |
|
|
3.92 |
% |
Non-interest expense to average assets (1) |
|
|
2.65 |
% |
|
|
2.79 |
% |
|
|
2.78 |
% |
|
|
4.83 |
% |
|
|
3.73 |
% |
Efficiency ratio (4) |
|
|
96.15 |
% |
|
|
95.88 |
% |
|
|
94.95 |
% |
|
|
132.46 |
% |
|
|
93.77 |
% |
Average interest-earning assets to average interest- bearing
liabilities |
|
|
141.14 |
% |
|
|
148.20 |
% |
|
|
152.30 |
% |
|
|
162.67 |
% |
|
|
158.80 |
% |
Average equity to average assets |
|
|
19.21 |
% |
|
|
20.91 |
% |
|
|
22.32 |
% |
|
|
24.90 |
% |
|
|
17.32 |
% |
|
|
At or for the Three Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
Capital Ratios (Annualized): |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
Total capital to risk weighted assets (Bank only) |
|
|
26.30 |
% |
|
|
27.54 |
% |
|
|
30.53 |
% |
|
|
33.39 |
% |
|
|
36.00 |
% |
Tier 1 capital to risk weighted assets (Bank only) |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
|
|
32.13 |
% |
|
|
34.75 |
% |
Common equity Tier 1 capital to risk-weighted assets (Bank
only) |
|
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
|
|
32.13 |
% |
|
|
34.75 |
% |
Tier 1 capital to average assets (Bank only) |
|
|
17.95 |
% |
|
|
19.51 |
% |
|
|
20.47 |
% |
|
|
22.91 |
% |
|
|
28.79 |
% |
|
|
At or for the Three Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
Asset Quality Ratios (Annualized): |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
Allowance for loan losses as a percentage of total loans |
|
|
1.64 |
% |
|
|
1.77 |
% |
|
|
2.27 |
% |
|
|
1.77 |
% |
|
|
1.31 |
% |
Allowance for loan losses as a percentage of nonperforming
loans |
|
|
167.06 |
% |
|
|
149.73 |
% |
|
|
252.33 |
% |
|
|
118.43 |
% |
|
|
94.05 |
% |
Net (charge-offs) recoveries to average outstanding loans (1) |
|
|
(0.41 |
%) |
|
|
(0.57 |
%) |
|
|
(0.85 |
%) |
|
|
(0.52 |
%) |
|
|
(0.05 |
%) |
Non-performing loans as a percentage of total gross loans |
|
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
|
|
1.50 |
% |
|
|
1.39 |
% |
Non-performing loans as a percentage of total assets |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
|
|
0.90 |
% |
Total non-performing assets as a percentage of total assets |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
|
|
0.90 |
% |
Total non-performing assets and accruing troubled debt restructured
loans as a percentage of total assets |
|
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
|
|
1.16 |
% |
|
|
1.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
Summary of Results of
Operations
Net loss for the three months ended
June 30, 2023 was ($0.1) million compared to net income of
$0.3 million for the three months ended March 31, 2023 and net
income of $0.8 million for the three months ended June 30,
2022. The decrease of net income for the three months ended
June 30, 2023 compared to the three months ended March 31,
2023 was attributed mainly to increases in provision for credit
loss and non-interest expense and a decrease in non-interest
income, partially offset by an increase in net interest income. The
decrease of net income for the three months ended June 30,
2023 compared to the three months ended June 30, 2022 was
largely due to a decrease in non-interest income and an increase in
non-interest expense, partially offset by an increase net interest
income.
Net income for the six months ended
June 30, 2023 was $0.2 million compared to a net loss of
($6.0) million for the six months ended June 30, 2022. The
increase in net income was attributable to decreases in
non-interest expense and provision for credit losses, partially
offset by decreases in net interest income and non-interest
income.
Net Interest Income and Net
Margin
Net interest income for the three months ended
June 30, 2023, was $16.3 million compared to $15.2 million for
the three months ended March 31, 2023 and $15.5 million for the
three months end June 30, 2022. This increase is largely
explained by an increase in interest and dividend income, offset by
an increase in interest expenses due to higher interest rates.
Included in net interest income are the effects of our borrowings
under the Bank Term Funding Program (BTFP). Our average borrowing
cost under the program is 4.45% while our deposit at the Fed
account yields 5.15% as of June 30, 2023. The BTFP has a maturity
of one year and allows for prepayment with no penalty.
Net interest margin was 2.65% for the three
months ended June 30, 2023 compared to 2.75% for the prior
quarter, a decrease of 10bps and 3.92% for the same period last
year, a decrease of 127bps. The decrease in net interest margin was
a result of an increase in the cost of funds driven by higher
interest rates.
Non-interest Income
Non-interest income for the three months ended
June 30, 2023, was $1.5 million, a decrease of $0.3 million,
or 17.98%, compared to the three months ended March 31, 2023
and a decrease of $0.7 million, or 31.53%, compared to the three
months ended June 30, 2022.
The $0.3 million decrease in non-interest income
for the three months ended June 30, 2023 compared to the three
months ended March 31, 2023 was related to a prepayment fee
reported in the prior quarter.
The $0.7 million decrease in non-interest income
for the three months ended June 30, 2023 compared to the three
months ended June 30, 2022 was attributable to decreases of
$0.7 million in loan origination fees, $0.2 million in brokerage
commission and $0.1 million in income on sale of mortgage loans,
partially offset by increases of $0.2 million in late and
prepayment charges and $0.1 million in other non-interest
income.
Non-interest income for the six months ended
June 30, 2023, was $3.3 million, a decrease of $1.1 million,
or 24.84%, compared to the six months ended June 30, 2022. The
$1.1 million decrease from the six months ended June 30, 2022
was attributable to decreases of $1.3 million in loan origination,
$0.5 million in brokerage commission and $0.4 million in income on
sale of mortgage loans, partially offset by increases of $0.9
million in late and prepayment charges, $0.2 million in other
non-interest income and $0.1 million in service charges and
fees.
Non-interest Expense
Non-interest expense for the three months ended
June 30, 2023, was $17.1 million, an increase of $0.7 million,
or 4.45%, compared to the three months ended March 31, 2023
and an increase of $0.5 million, or 3.15%, compared to the three
months ended June 30, 2022.
The $0.7 million increase from the three months
ended March 31, 2023 was mainly attributable to a decrease of
$0.6 million in consumer microloan recoveries, increases of $0.4
million in professional fees, $0.2 million in marketing and
promotional expenses and $0.2 million in occupancy and equipment,
offset by a decrease of $0.5 million in provision for
contingencies.
The $0.5 million increase from the three months
ended June 30, 2022 was attributable to increases of $0.5
million in compensation and benefits, $0.5 million in occupancy and
equipment, $0.5 million in provision for contingencies, $0.4
million in data processing expenses, $0.3 million marketing and
promotional expenses and $0.2 million in professional fees, offset
by a $1.5 million charge in the prior year period and a $0.4
million recovery in the current year period related to Grain.
Non-interest expense for the six months ended
June 30, 2023, was $33.5 million, a decrease of $11.2 million,
or 25.07%, compared to the six months ended June 30, 2022. The
$11.2 million decrease of non-interest expense from the six months
ended June 30, 2022 was attributable to a $9.6 million
consumer microloan write-off during the corresponding period last
year, compared with $1.3 million of consumer microloan recoveries
during the six months ending June 30, 2023 and a $5.0 million
contribution to the Ponce De Leon Foundation during the six months
ended June 30, 2022.
Balance Sheet Summary
Total assets increased $360.0 million, or
15.57%, to $2.67 billion as of June 30, 2023 from $2.31
billion as of December 31, 2022. The increase in total assets
is largely attributable to increases of $201.9 million in net loans
receivable, $189.4 million in cash and cash equivalents, $8.1
million in mortgage loans held for sale and $1.9 million in other
assets, offset by decreases of $28.9 million in held-to-maturity
securities, $5.8 million in available-for-sale securities, and $5.5
million in Federal Home Loan Bank of New York stock.
Total liabilities increased $362.2 million, or
19.91%, to $2.18 billion as of June 30, 2023 from $1.82
billion as of December 31, 2022. The increase in total
liabilities was largely attributable to increases of $189.6 million
in deposits and $164.7 million in borrowings.
Total stockholders’ equity decreased $2.2
million, or 0.45%, to $490.5 million as of June 30, 2023, from
$492.7 million as of December 31, 2022. This decrease in
stockholders’ equity was largely attributable to $5.2 million in
share repurchases, partially offset by increases in equity of $1.1
million as a result of implementation of CECL, $0.8 million in
share-based compensation, $0.6 million in ESOP, $0.3 million in
other comprehensive income related to improved valuation of
securities and $0.2 million in net income.
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 |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
$ |
31,162 |
|
|
$ |
26,951 |
|
|
$ |
31,977 |
|
|
$ |
34,007 |
|
|
$ |
24,934 |
|
Interest-bearing deposits |
|
212,627 |
|
|
|
157,736 |
|
|
|
22,383 |
|
|
|
28,514 |
|
|
|
249,872 |
|
Total cash and cash equivalents |
|
243,789 |
|
|
|
184,687 |
|
|
|
54,360 |
|
|
|
62,521 |
|
|
|
274,806 |
|
Available-for-sale securities, at fair value |
|
123,720 |
|
|
|
128,320 |
|
|
|
129,505 |
|
|
|
131,977 |
|
|
|
140,044 |
|
Held-to-maturity securities, at amortized cost (1) |
|
481,952 |
|
|
|
491,649 |
|
|
|
510,820 |
|
|
|
494,297 |
|
|
|
211,517 |
|
Placement with banks |
|
996 |
|
|
|
1,245 |
|
|
|
1,494 |
|
|
|
2,490 |
|
|
|
2,490 |
|
Mortgage loans held for sale, at fair value |
|
10,070 |
|
|
|
2,987 |
|
|
|
1,979 |
|
|
|
3,357 |
|
|
|
9,234 |
|
Loans receivable, net |
|
1,695,047 |
|
|
|
1,614,428 |
|
|
|
1,493,127 |
|
|
|
1,392,553 |
|
|
|
1,324,320 |
|
Accrued interest receivable |
|
16,054 |
|
|
|
15,435 |
|
|
|
15,049 |
|
|
|
14,063 |
|
|
|
13,255 |
|
Premises and equipment, net |
|
16,856 |
|
|
|
17,215 |
|
|
|
17,446 |
|
|
|
17,759 |
|
|
|
18,945 |
|
Right of use assets |
|
32,435 |
|
|
|
33,147 |
|
|
|
33,423 |
|
|
|
34,121 |
|
|
|
34,416 |
|
Federal Home Loan Bank of New York stock (FHLBNY), at cost |
|
19,195 |
|
|
|
19,209 |
|
|
|
24,661 |
|
|
|
14,272 |
|
|
|
16,429 |
|
Deferred tax assets |
|
15,924 |
|
|
|
15,413 |
|
|
|
16,137 |
|
|
|
13,822 |
|
|
|
9,658 |
|
Other assets |
|
15,919 |
|
|
|
15,799 |
|
|
|
13,988 |
|
|
|
11,170 |
|
|
|
21,585 |
|
Total assets |
$ |
2,671,957 |
|
|
$ |
2,539,534 |
|
|
$ |
2,311,989 |
|
|
$ |
2,192,402 |
|
|
$ |
2,076,699 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
1,442,013 |
|
|
$ |
1,336,877 |
|
|
$ |
1,252,412 |
|
|
$ |
1,351,189 |
|
|
$ |
1,148,728 |
|
Operating lease liabilities |
|
33,716 |
|
|
|
34,308 |
|
|
|
34,532 |
|
|
|
35,081 |
|
|
|
35,217 |
|
Accrued interest payable |
|
4,704 |
|
|
|
1,767 |
|
|
|
1,390 |
|
|
|
854 |
|
|
|
158 |
|
Advance payments by borrowers for taxes and insurance |
|
12,402 |
|
|
|
14,902 |
|
|
|
9,724 |
|
|
|
10,589 |
|
|
|
8,668 |
|
Borrowings |
|
682,100 |
|
|
|
648,375 |
|
|
|
517,375 |
|
|
|
286,375 |
|
|
|
334,375 |
|
Other liabilities |
|
6,540 |
|
|
|
7,264 |
|
|
|
3,856 |
|
|
|
7,631 |
|
|
|
31,471 |
|
Total liabilities |
|
2,181,475 |
|
|
|
2,043,493 |
|
|
|
1,819,289 |
|
|
|
1,691,719 |
|
|
|
1,558,617 |
|
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 |
|
|
|
247 |
|
|
|
247 |
|
Treasury stock, at cost |
|
(5,202 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
Additional paid-in-capital |
|
207,287 |
|
|
|
206,883 |
|
|
|
206,508 |
|
|
|
206,092 |
|
|
|
205,669 |
|
Retained earnings |
|
94,312 |
|
|
|
94,399 |
|
|
|
92,955 |
|
|
|
102,169 |
|
|
|
116,907 |
|
Accumulated other comprehensive loss |
|
(17,597 |
) |
|
|
(16,629 |
) |
|
|
(17,860 |
) |
|
|
(18,420 |
) |
|
|
(15,032 |
) |
Unearned compensation ─ ESOP |
|
(13,567 |
) |
|
|
(13,859 |
) |
|
|
(14,150 |
) |
|
|
(14,405 |
) |
|
|
(14,709 |
) |
Total stockholders' equity |
|
490,482 |
|
|
|
496,041 |
|
|
|
492,700 |
|
|
|
500,683 |
|
|
|
518,082 |
|
Total liabilities and stockholders' equity |
$ |
2,671,957 |
|
|
$ |
2,539,534 |
|
|
$ |
2,311,989 |
|
|
$ |
2,192,402 |
|
|
$ |
2,076,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included for
the quarterly period ended June 30, 2023 and March 31, 2023 was
$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 |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans receivable |
$ |
23,015 |
|
|
$ |
19,700 |
|
|
$ |
18,550 |
|
|
$ |
17,058 |
|
|
$ |
16,057 |
|
Interest on deposits due from banks |
|
1,817 |
|
|
|
197 |
|
|
|
199 |
|
|
|
346 |
|
|
|
132 |
|
Interest and dividend on securities and FHLBNY stock |
|
6,223 |
|
|
|
6,459 |
|
|
|
6,184 |
|
|
|
4,230 |
|
|
|
978 |
|
Total interest and dividend income |
|
31,055 |
|
|
|
26,356 |
|
|
|
24,933 |
|
|
|
21,634 |
|
|
|
17,167 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on certificates of deposit |
|
2,381 |
|
|
|
1,871 |
|
|
|
1,310 |
|
|
|
687 |
|
|
|
677 |
|
Interest on other deposits |
|
5,913 |
|
|
|
4,166 |
|
|
|
4,125 |
|
|
|
1,543 |
|
|
|
521 |
|
Interest on borrowings |
|
6,479 |
|
|
|
5,074 |
|
|
|
3,332 |
|
|
|
1,793 |
|
|
|
481 |
|
Total interest expense |
|
14,773 |
|
|
|
11,111 |
|
|
|
8,767 |
|
|
|
4,023 |
|
|
|
1,679 |
|
Net interest income |
|
16,282 |
|
|
|
15,245 |
|
|
|
16,166 |
|
|
|
17,611 |
|
|
|
15,488 |
|
Provision (benefit) for credit losses |
|
987 |
|
|
|
(174 |
) |
|
|
12,641 |
|
|
|
9,330 |
|
|
|
817 |
|
Net interest income after provision (benefit) for credit
losses |
|
15,295 |
|
|
|
15,419 |
|
|
|
3,525 |
|
|
|
8,281 |
|
|
|
14,671 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
481 |
|
|
|
491 |
|
|
|
481 |
|
|
|
464 |
|
|
|
445 |
|
Brokerage commissions |
|
35 |
|
|
|
15 |
|
|
|
180 |
|
|
|
288 |
|
|
|
214 |
|
Late and prepayment charges |
|
372 |
|
|
|
729 |
|
|
|
263 |
|
|
|
109 |
|
|
|
193 |
|
Income on sale of mortgage loans |
|
82 |
|
|
|
99 |
|
|
|
7 |
|
|
|
116 |
|
|
|
200 |
|
Loan origination (1) |
|
— |
|
|
|
— |
|
|
|
(557 |
) |
|
|
522 |
|
|
|
696 |
|
(Loss) gain on sale of premises and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(436 |
) |
|
|
— |
|
Other |
|
522 |
|
|
|
485 |
|
|
|
63 |
|
|
|
514 |
|
|
|
431 |
|
Total non-interest income |
|
1,492 |
|
|
|
1,819 |
|
|
|
437 |
|
|
|
1,577 |
|
|
|
2,179 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
7,425 |
|
|
|
7,446 |
|
|
|
6,501 |
|
|
|
7,377 |
|
|
|
6,911 |
|
Occupancy and equipment |
|
3,724 |
|
|
|
3,570 |
|
|
|
3,928 |
|
|
|
3,611 |
|
|
|
3,237 |
|
Data processing expenses |
|
1,208 |
|
|
|
1,192 |
|
|
|
1,114 |
|
|
|
994 |
|
|
|
824 |
|
Direct loan expenses |
|
345 |
|
|
|
412 |
|
|
|
454 |
|
|
|
654 |
|
|
|
505 |
|
Provision for contingencies |
|
517 |
|
|
|
985 |
|
|
|
(440 |
) |
|
|
519 |
|
|
|
30 |
|
Insurance and surety bond premiums |
|
248 |
|
|
|
265 |
|
|
|
270 |
|
|
|
297 |
|
|
|
156 |
|
Office supplies, telephone and postage |
|
489 |
|
|
|
399 |
|
|
|
375 |
|
|
|
369 |
|
|
|
406 |
|
Professional fees |
|
1,904 |
|
|
|
1,455 |
|
|
|
1,571 |
|
|
|
1,251 |
|
|
|
1,748 |
|
Grain (recoveries) and write-off |
|
(346 |
) |
|
|
(914 |
) |
|
|
(515 |
) |
|
|
8,881 |
|
|
|
1,500 |
|
Marketing and promotional expenses |
|
303 |
|
|
|
128 |
|
|
|
256 |
|
|
|
214 |
|
|
|
52 |
|
Directors fees and regulatory assessment |
|
160 |
|
|
|
155 |
|
|
|
196 |
|
|
|
188 |
|
|
|
167 |
|
Other operating expenses |
|
1,112 |
|
|
|
1,268 |
|
|
|
2,055 |
|
|
|
1,061 |
|
|
|
1,031 |
|
Total non-interest expense |
|
17,089 |
|
|
|
16,361 |
|
|
|
15,765 |
|
|
|
25,416 |
|
|
|
16,567 |
|
(Loss) income before income taxes |
|
(302 |
) |
|
|
877 |
|
|
|
(11,803 |
) |
|
|
(15,558 |
) |
|
|
283 |
|
Provision (benefit) for income taxes |
|
(215 |
) |
|
|
546 |
|
|
|
(2,589 |
) |
|
|
(820 |
) |
|
|
(488 |
) |
Net (loss) income |
$ |
(87 |
) |
|
$ |
331 |
|
|
$ |
(9,214 |
) |
|
$ |
(14,738 |
) |
|
$ |
771 |
|
Earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.00 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.64 |
) |
|
$ |
0.03 |
|
Diluted |
$ |
(0.00 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.64 |
) |
|
$ |
0.03 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
23,208,168 |
|
|
|
23,293,013 |
|
|
|
23,168,097 |
|
|
|
23,094,859 |
|
|
|
23,056,559 |
|
Diluted |
|
23,208,168 |
|
|
|
23,324,532 |
|
|
|
23,168,097 |
|
|
|
23,094,859 |
|
|
|
23,128,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
Variance $ |
|
|
Variance % |
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans receivable |
|
$ |
42,715 |
|
|
$ |
34,257 |
|
|
$ |
8,458 |
|
|
|
24.69 |
% |
Interest on deposits due from banks |
|
|
2,014 |
|
|
|
168 |
|
|
|
1,846 |
|
|
|
1,098.81 |
% |
Interest and dividend on securities and FHLBNY stock |
|
|
12,682 |
|
|
|
1,760 |
|
|
|
10,922 |
|
|
|
620.57 |
% |
Total interest and dividend income |
|
|
57,411 |
|
|
|
36,185 |
|
|
|
21,226 |
|
|
|
58.66 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on certificates of deposit |
|
|
4,252 |
|
|
|
1,480 |
|
|
|
2,772 |
|
|
|
187.30 |
% |
Interest on other deposits |
|
|
10,079 |
|
|
|
805 |
|
|
|
9,274 |
|
|
|
1,152.05 |
% |
Interest on borrowings |
|
|
11,553 |
|
|
|
1,074 |
|
|
|
10,479 |
|
|
|
975.70 |
% |
Total interest expense |
|
|
25,884 |
|
|
|
3,359 |
|
|
|
22,525 |
|
|
|
670.59 |
% |
Net interest income |
|
|
31,527 |
|
|
|
32,826 |
|
|
|
(1,299 |
) |
|
|
(3.96 |
%) |
Provision for credit losses |
|
|
813 |
|
|
|
2,075 |
|
|
|
(1,262 |
) |
|
|
(60.82 |
%) |
Net interest income after provision for credit
losses |
|
|
30,714 |
|
|
|
30,751 |
|
|
|
(37 |
) |
|
|
(0.12 |
%) |
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
972 |
|
|
|
885 |
|
|
|
87 |
|
|
|
9.83 |
% |
Brokerage commissions |
|
|
50 |
|
|
|
552 |
|
|
|
(502 |
) |
|
|
(90.94 |
%) |
Late and prepayment charges |
|
|
1,101 |
|
|
|
251 |
|
|
|
850 |
|
|
|
338.65 |
% |
Income on sale of mortgage loans |
|
|
181 |
|
|
|
618 |
|
|
|
(437 |
) |
|
|
(70.71 |
%) |
Loan origination |
|
|
— |
|
|
|
1,321 |
|
|
|
(1,321 |
) |
|
|
(100.00 |
%) |
Other |
|
|
1,007 |
|
|
|
778 |
|
|
|
229 |
|
|
|
29.43 |
% |
Total non-interest income |
|
|
3,311 |
|
|
|
4,405 |
|
|
|
(1,094 |
) |
|
|
(24.84 |
%) |
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
14,871 |
|
|
|
14,036 |
|
|
|
835 |
|
|
|
5.95 |
% |
Occupancy and equipment |
|
|
7,294 |
|
|
|
6,429 |
|
|
|
865 |
|
|
|
13.45 |
% |
Data processing expenses |
|
|
2,400 |
|
|
|
1,671 |
|
|
|
729 |
|
|
|
43.63 |
% |
Direct loan expenses |
|
|
757 |
|
|
|
1,379 |
|
|
|
(622 |
) |
|
|
(45.11 |
%) |
Provision for contingencies |
|
|
1,502 |
|
|
|
47 |
|
|
|
1,455 |
|
|
|
3,095.74 |
% |
Insurance and surety bond premiums |
|
|
513 |
|
|
|
303 |
|
|
|
210 |
|
|
|
69.31 |
% |
Office supplies, telephone and postage |
|
|
888 |
|
|
|
811 |
|
|
|
77 |
|
|
|
9.49 |
% |
Professional fees |
|
|
3,359 |
|
|
|
3,082 |
|
|
|
277 |
|
|
|
8.99 |
% |
Contribution to the Ponce De Leon Foundation |
|
|
— |
|
|
|
4,995 |
|
|
|
(4,995 |
) |
|
|
(100.00 |
%) |
Grain (recoveries) and write-off |
|
|
(1,260 |
) |
|
|
9,574 |
|
|
|
(10,834 |
) |
|
|
(113.16 |
%) |
Marketing and promotional expenses |
|
|
431 |
|
|
|
123 |
|
|
|
308 |
|
|
|
250.41 |
% |
Directors fees and regulatory assessment |
|
|
315 |
|
|
|
321 |
|
|
|
(6 |
) |
|
|
(1.87 |
%) |
Other operating expenses |
|
|
2,380 |
|
|
|
1,870 |
|
|
|
510 |
|
|
|
27.27 |
% |
Total non-interest expense |
|
|
33,450 |
|
|
|
44,641 |
|
|
|
(11,191 |
) |
|
|
(25.07 |
%) |
Income (loss) before income taxes |
|
|
575 |
|
|
|
(9,485 |
) |
|
|
10,060 |
|
|
|
(106.06 |
%) |
Provision (benefit) for income taxes |
|
|
331 |
|
|
|
(3,436 |
) |
|
|
3,767 |
|
|
|
(109.63 |
%) |
Net income (loss) |
|
$ |
244 |
|
|
$ |
(6,049 |
) |
|
$ |
6,293 |
|
|
|
(104.03 |
%) |
Earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
(0.27 |
) |
|
$ |
0.28 |
|
|
|
(103.86 |
%) |
Diluted |
|
$ |
0.01 |
|
|
$ |
(0.27 |
) |
|
$ |
0.28 |
|
|
|
(103.85 |
%) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
23,250,357 |
|
|
|
22,243,776 |
|
|
|
1,006,581 |
|
|
|
4.53 |
% |
Diluted |
|
|
23,275,201 |
|
|
|
22,243,776 |
|
|
|
1,031,425 |
|
|
|
4.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ponce Financial Group, Inc. and
Subsidiaries Key Metrics
|
At or for the Three Months Ended |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
(0.01 |
%) |
|
|
0.06 |
% |
|
|
(1.62 |
%) |
|
|
(2.80 |
%) |
|
|
0.17 |
% |
Return on average equity (1) |
|
(0.07 |
%) |
|
|
0.27 |
% |
|
|
(7.28 |
%) |
|
|
(11.25 |
%) |
|
|
1.01 |
% |
Net interest rate spread (1) (2) |
|
1.66 |
% |
|
|
1.78 |
% |
|
|
2.13 |
% |
|
|
3.08 |
% |
|
|
3.67 |
% |
Net interest margin (1) (3) |
|
2.65 |
% |
|
|
2.75 |
% |
|
|
2.97 |
% |
|
|
3.59 |
% |
|
|
3.92 |
% |
Non-interest expense to average assets (1) |
|
2.65 |
% |
|
|
2.79 |
% |
|
|
2.78 |
% |
|
|
4.83 |
% |
|
|
3.73 |
% |
Efficiency ratio (4) |
|
96.15 |
% |
|
|
95.88 |
% |
|
|
94.95 |
% |
|
|
132.46 |
% |
|
|
93.77 |
% |
Average interest-earning assets to average interest- bearing
liabilities |
|
141.14 |
% |
|
|
148.20 |
% |
|
|
152.30 |
% |
|
|
162.67 |
% |
|
|
158.80 |
% |
Average equity to average assets |
|
19.21 |
% |
|
|
20.91 |
% |
|
|
22.32 |
% |
|
|
24.90 |
% |
|
|
17.32 |
% |
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to risk weighted assets (Bank only) |
|
26.30 |
% |
|
|
27.54 |
% |
|
|
30.53 |
% |
|
|
33.39 |
% |
|
|
36.00 |
% |
Tier 1 capital to risk weighted assets (Bank only) |
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
|
|
32.13 |
% |
|
|
34.75 |
% |
Common equity Tier 1 capital to risk-weighted assets (Bank
only) |
|
25.05 |
% |
|
|
26.28 |
% |
|
|
29.26 |
% |
|
|
32.13 |
% |
|
|
34.75 |
% |
Tier 1 capital to average assets (Bank only) |
|
17.95 |
% |
|
|
19.51 |
% |
|
|
20.47 |
% |
|
|
22.91 |
% |
|
|
28.79 |
% |
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans as a percentage of total
loans |
|
1.64 |
% |
|
|
1.77 |
% |
|
|
2.27 |
% |
|
|
1.77 |
% |
|
|
1.31 |
% |
Allowance for credit losses on loans as a percentage of
nonperforming loans |
|
167.06 |
% |
|
|
149.73 |
% |
|
|
252.33 |
% |
|
|
118.43 |
% |
|
|
94.05 |
% |
Net (charge-offs) recoveries to average outstanding loans (1) |
|
(0.41 |
%) |
|
|
(0.57 |
%) |
|
|
(0.85 |
%) |
|
|
(0.52 |
%) |
|
|
(0.05 |
%) |
Non-performing loans as a percentage of total gross loans |
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
|
|
1.50 |
% |
|
|
1.39 |
% |
Non-performing loans as a percentage of total assets |
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
|
|
0.90 |
% |
Total non-performing assets as a percentage of total assets |
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
|
|
0.90 |
% |
Total non-performing assets and accruing troubled debt restructured
loans as a percentage of total assets |
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
|
|
1.16 |
% |
|
|
1.14 |
% |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of offices |
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
Number of full-time equivalent employees |
|
244 |
|
|
|
251 |
|
|
|
253 |
|
|
|
257 |
|
|
|
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.
Ponce Financial Group, Inc. and
Subsidiaries Securities Portfolio
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
|
|
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
|
|
(in thousands) |
|
|
(in thousands) |
|
Available-for-Sale Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Bonds |
|
$ |
2,988 |
|
|
$ |
— |
|
|
$ |
(279 |
) |
|
$ |
2,709 |
|
|
$ |
2,985 |
|
|
$ |
— |
|
|
$ |
(296 |
) |
|
$ |
2,689 |
|
Corporate Bonds |
|
|
25,807 |
|
|
|
— |
|
|
|
(2,784 |
) |
|
|
23,023 |
|
|
|
25,824 |
|
|
|
— |
|
|
|
(2,465 |
) |
|
|
23,359 |
|
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (1) |
|
|
42,128 |
|
|
|
— |
|
|
|
(6,724 |
) |
|
|
35,404 |
|
|
|
44,503 |
|
|
|
— |
|
|
|
(6,726 |
) |
|
|
37,777 |
|
FHLMC Certificates |
|
|
10,742 |
|
|
|
— |
|
|
|
(1,636 |
) |
|
|
9,106 |
|
|
|
11,310 |
|
|
|
— |
|
|
|
(1,676 |
) |
|
|
9,634 |
|
FNMA Certificates |
|
|
64,298 |
|
|
|
— |
|
|
|
(10,931 |
) |
|
|
53,367 |
|
|
|
67,199 |
|
|
|
— |
|
|
|
(11,271 |
) |
|
|
55,928 |
|
GNMA Certificates |
|
|
114 |
|
|
|
— |
|
|
|
(3 |
) |
|
|
111 |
|
|
|
122 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
118 |
|
Total available-for-sale securities |
|
$ |
146,077 |
|
|
$ |
— |
|
|
$ |
(22,357 |
) |
|
$ |
123,720 |
|
|
$ |
151,943 |
|
|
$ |
— |
|
|
$ |
(22,438 |
) |
|
$ |
129,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-Maturity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency Bonds |
|
$ |
25,000 |
|
|
$ |
— |
|
|
$ |
(455 |
) |
|
$ |
24,545 |
|
|
$ |
35,000 |
|
|
$ |
— |
|
|
$ |
(380 |
) |
|
$ |
34,620 |
|
Corporate Bonds |
|
|
82,500 |
|
|
|
25 |
|
|
|
(2,978 |
) |
|
|
79,547 |
|
|
|
82,500 |
|
|
|
57 |
|
|
|
(3,819 |
) |
|
|
78,738 |
|
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (1) |
|
|
224,312 |
|
|
|
— |
|
|
|
(7,312 |
) |
|
|
217,000 |
|
|
|
235,479 |
|
|
|
192 |
|
|
|
(5,558 |
) |
|
|
230,113 |
|
FHLMC Certificates |
|
|
3,948 |
|
|
|
— |
|
|
|
(291 |
) |
|
|
3,657 |
|
|
|
4,120 |
|
|
|
— |
|
|
|
(268 |
) |
|
|
3,852 |
|
FNMA Certificates |
|
|
125,943 |
|
|
|
— |
|
|
|
(5,828 |
) |
|
|
120,115 |
|
|
|
131,918 |
|
|
|
— |
|
|
|
(5,227 |
) |
|
|
126,691 |
|
SBA Certificates |
|
|
21,111 |
|
|
|
79 |
|
|
|
— |
|
|
|
21,190 |
|
|
|
21,803 |
|
|
|
34 |
|
|
|
— |
|
|
|
21,837 |
|
Allowance for Credit Losses |
|
|
(862 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total held-to-maturity securities |
|
$ |
481,952 |
|
|
$ |
104 |
|
|
$ |
(16,864 |
) |
|
$ |
466,054 |
|
|
$ |
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.
|
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
Beginning balance |
|
$ |
— |
|
|
$ |
— |
|
CECL adoption |
|
|
662 |
|
|
|
— |
|
Provision for credit losses |
|
|
200 |
|
|
|
— |
|
Allowance for credit losses on securities |
|
$ |
862 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Ponce Financial Group, Inc. and
Subsidiaries Loan Portfolio
|
|
As of |
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
|
(Dollars in thousands) |
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Owned |
|
$ |
351,754 |
|
|
|
20.43 |
% |
|
$ |
354,559 |
|
|
|
21.60 |
% |
|
$ |
343,968 |
|
|
|
22.54 |
% |
|
$ |
336,667 |
|
|
|
23.79 |
% |
|
$ |
321,671 |
|
|
|
24.02 |
% |
Owner-Occupied |
|
|
154,116 |
|
|
|
8.94 |
% |
|
|
149,481 |
|
|
|
9.10 |
% |
|
|
134,878 |
|
|
|
8.84 |
% |
|
|
112,749 |
|
|
|
7.97 |
% |
|
|
100,048 |
|
|
|
7.47 |
% |
Multifamily residential |
|
|
550,033 |
|
|
|
31.94 |
% |
|
|
553,430 |
|
|
|
33.71 |
% |
|
|
494,667 |
|
|
|
32.42 |
% |
|
|
421,917 |
|
|
|
29.81 |
% |
|
|
396,470 |
|
|
|
29.60 |
% |
Nonresidential properties |
|
|
317,416 |
|
|
|
18.43 |
% |
|
|
314,560 |
|
|
|
19.17 |
% |
|
|
308,043 |
|
|
|
20.19 |
% |
|
|
282,642 |
|
|
|
19.97 |
% |
|
|
279,877 |
|
|
|
20.90 |
% |
Construction and land |
|
|
315,843 |
|
|
|
18.34 |
% |
|
|
235,157 |
|
|
|
14.33 |
% |
|
|
185,018 |
|
|
|
12.13 |
% |
|
|
197,437 |
|
|
|
13.95 |
% |
|
|
165,425 |
|
|
|
12.35 |
% |
Total mortgage loans |
|
|
1,689,162 |
|
|
|
98.08 |
% |
|
|
1,607,187 |
|
|
|
97.91 |
% |
|
|
1,466,574 |
|
|
|
96.12 |
% |
|
|
1,351,412 |
|
|
|
95.49 |
% |
|
|
1,263,491 |
|
|
|
94.34 |
% |
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business loans (1) |
|
|
21,041 |
|
|
|
1.22 |
% |
|
|
19,890 |
|
|
|
1.21 |
% |
|
|
39,965 |
|
|
|
2.62 |
% |
|
|
41,398 |
|
|
|
2.92 |
% |
|
|
45,720 |
|
|
|
3.41 |
% |
Consumer loans (2) |
|
|
11,958 |
|
|
|
0.70 |
% |
|
|
14,227 |
|
|
|
0.88 |
% |
|
|
19,129 |
|
|
|
1.26 |
% |
|
|
22,563 |
|
|
|
1.59 |
% |
|
|
30,198 |
|
|
|
2.25 |
% |
Total non-mortgage loans |
|
|
32,999 |
|
|
|
1.92 |
% |
|
|
34,117 |
|
|
|
2.09 |
% |
|
|
59,094 |
|
|
|
3.88 |
% |
|
|
63,961 |
|
|
|
4.51 |
% |
|
|
75,918 |
|
|
|
5.66 |
% |
Total loans, gross |
|
|
1,722,161 |
|
|
|
100.00 |
% |
|
|
1,641,304 |
|
|
|
100.00 |
% |
|
|
1,525,668 |
|
|
|
100.00 |
% |
|
|
1,415,373 |
|
|
|
100.00 |
% |
|
|
1,339,409 |
|
|
|
100.00 |
% |
Net deferred loan origination costs |
|
|
1,059 |
|
|
|
|
|
|
2,099 |
|
|
|
|
|
|
2,051 |
|
|
|
|
|
|
2,288 |
|
|
|
|
|
|
2,446 |
|
|
|
|
Allowance for credit losses on loans |
|
|
(28,173 |
) |
|
|
|
|
|
(28,975 |
) |
|
|
|
|
|
(34,592 |
) |
|
|
|
|
|
(25,108 |
) |
|
|
|
|
|
(17,535 |
) |
|
|
|
Loans, net |
|
$ |
1,695,047 |
|
|
|
|
|
$ |
1,614,428 |
|
|
|
|
|
$ |
1,493,127 |
|
|
|
|
|
$ |
1,392,553 |
|
|
|
|
|
$ |
1,324,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of June 30, 2023, March 31,
2023, December 31, 2022, September 30, 2022 and June 30, 2022,
business loans include $3.2 million, $3.6 million, $20.0 million,
$24.7 million and $30.8 million, respectively, of PPP loans.(2) As
of June 30, 2023, March 31, 2023, December 31, 2022, September 30,
2022 and June 30, 2022, consumer loans include $11.2 million, $13.4
million, $18.2 million, $21.5 million and $28.3 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
June 30, 2023 |
|
(in thousands) |
|
Receivable from Grain |
|
|
|
Microloans originated - put back to Grain (inception-to-June 30,
2023) |
|
$ |
24,324 |
|
Write-downs, net of recoveries (inception-to-date as of June 30,
2023) |
|
|
(15,679 |
) |
Cash receipts from Grain (inception-to-June 30, 2023) |
|
|
(6,819 |
) |
Grant/reserve |
|
|
(1,826 |
) |
Net receivable as of June 30, 2023 |
|
$ |
— |
|
Microloan receivables from Grain Borrowers |
|
|
|
Grain originated loans receivable as of June 30, 2023 |
|
$ |
11,213 |
|
Allowance for credit losses on loans as of June 30, 2023 (1) |
|
|
(9,786 |
) |
Microloans, net of allowance for credit losses on loans as of June
30, 2023 |
|
$ |
1,427 |
|
Investments |
|
|
|
Investment in Grain |
|
$ |
1,000 |
|
Investment in Grain write-off in Q3 2022 |
|
|
(1,000 |
) |
Investment in Grain as of June 30, 2023 |
|
|
— |
|
Total exposure to Grain as of June 30, 2023 |
|
$ |
1,427 |
|
|
|
|
|
|
(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 $1.3 million of security deposits by Grain originated
borrowers reported in deposits in the accompanying Consolidated
Statements of Financial Conditions.
Ponce Financial Group, Inc. and
Subsidiaries Allowance for Credit Losses on
Loans
|
For the Three Months Ended |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
(Dollars in thousands) |
|
Allowance for credit losses on loans at beginning of the
period |
$ |
28,975 |
|
|
$ |
34,592 |
|
|
$ |
25,108 |
|
|
$ |
17,535 |
|
|
$ |
16,893 |
|
Provision (benefit) for credit losses on loans |
|
934 |
|
|
|
(321 |
) |
|
|
12,641 |
|
|
|
9,330 |
|
|
|
817 |
|
Adoption of CECL |
|
— |
|
|
|
(3,090 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Owner occupied |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Multifamily residences |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
(1,931 |
) |
|
|
(2,569 |
) |
|
|
(3,659 |
) |
|
|
(1,799 |
) |
|
|
(450 |
) |
Total charge-offs |
|
(1,931 |
) |
|
|
(2,569 |
) |
|
|
(3,659 |
) |
|
|
(1,799 |
) |
|
|
(450 |
) |
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
156 |
|
Owner occupied |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
Multifamily residences |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
91 |
|
Consumer |
|
195 |
|
|
|
363 |
|
|
|
502 |
|
|
|
2 |
|
|
|
28 |
|
Total recoveries |
|
195 |
|
|
|
363 |
|
|
|
502 |
|
|
|
42 |
|
|
|
275 |
|
Net (charge-offs) recoveries |
|
(1,736 |
) |
|
|
(2,206 |
) |
|
|
(3,157 |
) |
|
|
(1,757 |
) |
|
|
(175 |
) |
Allowance for credit losses on loans at end of the period |
$ |
28,173 |
|
|
$ |
28,975 |
|
|
$ |
34,592 |
|
|
$ |
25,108 |
|
|
$ |
17,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ponce Financial Group, Inc. and
Subsidiaries Deposits
|
|
As of |
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
|
(Dollars in thousands) |
|
Demand |
|
$ |
266,545 |
|
|
|
18.48 |
% |
|
$ |
282,741 |
|
|
|
21.15 |
% |
|
$ |
289,149 |
|
|
|
23.08 |
% |
|
$ |
288,654 |
|
|
|
21.37 |
% |
|
$ |
284,462 |
|
|
|
24.77 |
% |
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA accounts |
|
|
22,754 |
|
|
|
1.57 |
% |
|
|
21,735 |
|
|
|
1.63 |
% |
|
|
24,349 |
|
|
|
1.94 |
% |
|
|
28,799 |
|
|
|
2.13 |
% |
|
|
28,597 |
|
|
|
2.49 |
% |
Money market accounts |
|
|
538,520 |
|
|
|
37.35 |
% |
|
|
408,404 |
|
|
|
30.55 |
% |
|
|
317,815 |
|
|
|
25.38 |
% |
|
|
360,293 |
|
|
|
26.66 |
% |
|
|
181,156 |
|
|
|
15.77 |
% |
Reciprocal deposits |
|
|
100,919 |
|
|
|
7.00 |
% |
|
|
109,649 |
|
|
|
8.20 |
% |
|
|
114,049 |
|
|
|
9.11 |
% |
|
|
162,858 |
|
|
|
12.05 |
% |
|
|
151,264 |
|
|
|
13.17 |
% |
Savings accounts |
|
|
119,635 |
|
|
|
8.30 |
% |
|
|
127,731 |
|
|
|
9.55 |
% |
|
|
130,432 |
|
|
|
10.41 |
% |
|
|
140,055 |
|
|
|
10.37 |
% |
|
|
139,244 |
|
|
|
12.12 |
% |
Total NOW, money market, reciprocal and savings
accounts |
|
|
781,828 |
|
|
|
54.22 |
% |
|
|
667,519 |
|
|
|
49.93 |
% |
|
|
586,645 |
|
|
|
46.84 |
% |
|
|
692,005 |
|
|
|
51.21 |
% |
|
|
500,261 |
|
|
|
43.55 |
% |
Certificates of deposit of $250K or more |
|
|
83,646 |
|
|
|
5.80 |
% |
|
|
76,893 |
|
|
|
5.75 |
% |
|
|
70,113 |
|
|
|
5.60 |
% |
|
|
61,900 |
|
|
|
4.58 |
% |
|
|
65,157 |
|
|
|
5.67 |
% |
Brokered certificates of deposit (1) |
|
|
98,729 |
|
|
|
6.85 |
% |
|
|
98,754 |
|
|
|
7.39 |
% |
|
|
98,754 |
|
|
|
7.89 |
% |
|
|
98,760 |
|
|
|
7.31 |
% |
|
|
62,650 |
|
|
|
5.45 |
% |
Listing service deposits (1) |
|
|
20,258 |
|
|
|
1.40 |
% |
|
|
28,417 |
|
|
|
2.13 |
% |
|
|
35,813 |
|
|
|
2.86 |
% |
|
|
40,964 |
|
|
|
3.03 |
% |
|
|
48,953 |
|
|
|
4.26 |
% |
All other certificates of deposit less than $250K |
|
|
191,007 |
|
|
|
13.25 |
% |
|
|
182,553 |
|
|
|
13.65 |
% |
|
|
171,938 |
|
|
|
13.73 |
% |
|
|
168,906 |
|
|
|
12.50 |
% |
|
|
187,245 |
|
|
|
16.30 |
% |
Total certificates of deposit |
|
|
393,640 |
|
|
|
27.30 |
% |
|
|
386,617 |
|
|
|
28.92 |
% |
|
|
376,618 |
|
|
|
30.08 |
% |
|
|
370,530 |
|
|
|
27.42 |
% |
|
|
364,005 |
|
|
|
31.68 |
% |
Total interest-bearing deposits |
|
|
1,175,468 |
|
|
|
81.52 |
% |
|
|
1,054,136 |
|
|
|
78.85 |
% |
|
|
963,263 |
|
|
|
76.92 |
% |
|
|
1,062,535 |
|
|
|
78.63 |
% |
|
|
864,266 |
|
|
|
75.23 |
% |
Total deposits |
|
$ |
1,442,013 |
|
|
|
100.00 |
% |
|
$ |
1,336,877 |
|
|
|
100.00 |
% |
|
$ |
1,252,412 |
|
|
|
100.00 |
% |
|
$ |
1,351,189 |
|
|
|
100.00 |
% |
|
$ |
1,148,728 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of June
30, 2023, March 31, 2023, December 31, 2022, September 30, 2022,
June 30, 2022, there were $3.3 million, $9.5 million, $13.6
million, $13.8 million, and $18.5 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
|
June 30, |
|
|
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 |
|
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term advances ending: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
$ |
7,000 |
|
|
$ |
7,000 |
|
|
|
2.12 |
|
|
$ |
178,375 |
|
|
$ |
178,375 |
|
|
|
4.32 |
|
2024 |
|
354,000 |
|
|
|
354,000 |
|
|
|
4.53 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
4.75 |
|
2025 |
|
50,000 |
|
|
|
50,000 |
|
|
|
4.41 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
4.41 |
|
2026 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
2027 |
|
212,000 |
|
|
|
212,000 |
|
|
|
3.44 |
|
|
|
183,000 |
|
|
|
183,000 |
|
|
|
3.25 |
|
Thereafter |
|
59,100 |
|
|
|
59,100 |
|
|
|
3.43 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
3.35 |
|
|
$ |
682,100 |
|
|
$ |
682,100 |
|
|
|
4.06 |
% |
|
$ |
517,375 |
|
|
$ |
517,375 |
|
|
|
3.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ponce Financial Group, Inc. and
Subsidiaries Nonperforming Assets
|
As of Three Months Ended |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
(Dollars in thousands) |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
296 |
|
|
$ |
2,836 |
|
|
$ |
2,844 |
|
|
$ |
5,902 |
|
|
$ |
3,460 |
|
Owner occupied |
|
2,363 |
|
|
|
2,245 |
|
|
|
961 |
|
|
|
971 |
|
|
|
1,140 |
|
Multifamily residential |
|
1,435 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
778 |
|
|
|
1,162 |
|
Construction and land |
|
11,721 |
|
|
|
11,906 |
|
|
|
7,567 |
|
|
|
10,660 |
|
|
|
10,817 |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
40 |
|
|
|
— |
|
|
|
359 |
|
|
|
— |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-accrual loans (not including non-accruing troubled debt
restructured loans) |
$ |
15,815 |
|
|
$ |
17,027 |
|
|
$ |
11,372 |
|
|
$ |
18,670 |
|
|
$ |
16,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accruing troubled debt restructured
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
209 |
|
|
$ |
213 |
|
|
$ |
217 |
|
|
$ |
221 |
|
|
$ |
224 |
|
Owner occupied |
|
840 |
|
|
|
2,020 |
|
|
|
2,027 |
|
|
|
2,215 |
|
|
|
1,746 |
|
Multifamily residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
— |
|
|
|
91 |
|
|
|
93 |
|
|
|
95 |
|
|
|
96 |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-accruing troubled debt restructured loans |
|
1,049 |
|
|
|
2,324 |
|
|
|
2,337 |
|
|
|
2,531 |
|
|
|
2,066 |
|
Total non-accrual loans |
$ |
16,864 |
|
|
$ |
19,351 |
|
|
$ |
13,709 |
|
|
$ |
21,201 |
|
|
$ |
18,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing troubled debt restructured loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor owned |
$ |
2,161 |
|
|
$ |
2,185 |
|
|
$ |
2,207 |
|
|
$ |
2,228 |
|
|
$ |
2,246 |
|
Owner occupied |
|
2,353 |
|
|
|
1,310 |
|
|
|
1,328 |
|
|
|
1,254 |
|
|
|
2,019 |
|
Multifamily residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonresidential properties |
|
783 |
|
|
|
701 |
|
|
|
708 |
|
|
|
715 |
|
|
|
725 |
|
Construction and land |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total accruing troubled debt restructured loans |
$ |
5,297 |
|
|
$ |
4,196 |
|
|
$ |
4,243 |
|
|
$ |
4,197 |
|
|
$ |
4,990 |
|
Total non-performing assets and accruing troubled debt restructured
loans |
$ |
22,161 |
|
|
$ |
23,547 |
|
|
$ |
17,952 |
|
|
$ |
25,398 |
|
|
$ |
23,635 |
|
Total non-performing loans to total gross loans |
|
0.98 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
|
|
1.50 |
% |
|
|
1.39 |
% |
Total non-performing assets to total assets |
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.59 |
% |
|
|
0.97 |
% |
|
|
0.90 |
% |
Total non-performing assets and accruing troubled debt restructured
loans to total assets |
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.78 |
% |
|
|
1.16 |
% |
|
|
1.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ponce Financial Group, Inc. and
Subsidiaries Average Balance Sheets
|
For the Three Months Ended
June 30, |
|
2023 |
|
2022 |
|
Average |
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
Outstanding |
|
|
|
|
|
Average |
|
Outstanding |
|
|
|
|
|
Average |
|
Balance |
|
|
Interest |
|
|
Yield/Rate (1) |
|
Balance |
|
|
Interest |
|
|
Yield/Rate (1) |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (2) |
$ |
1,683,117 |
|
|
$ |
23,015 |
|
|
5.48 |
% |
|
$ |
1,318,400 |
|
|
$ |
16,057 |
|
|
4.89 |
% |
Securities (3) |
|
614,598 |
|
|
|
5,731 |
|
|
3.74 |
% |
|
|
155,939 |
|
|
|
908 |
|
|
2.34 |
% |
Other (4) (5) |
|
164,509 |
|
|
|
2,309 |
|
|
5.63 |
% |
|
|
109,755 |
|
|
|
202 |
|
|
0.74 |
% |
Total interest-earning assets |
|
2,462,224 |
|
|
|
31,055 |
|
|
5.06 |
% |
|
|
1,584,094 |
|
|
|
17,167 |
|
|
4.35 |
% |
Non-interest-earning assets (5) |
|
121,169 |
|
|
|
|
|
|
|
|
145,308 |
|
|
|
|
|
|
Total assets |
$ |
2,583,393 |
|
|
|
|
|
|
|
$ |
1,729,402 |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA |
$ |
22,280 |
|
|
$ |
8 |
|
|
0.14 |
% |
|
$ |
32,321 |
|
|
$ |
14 |
|
|
0.17 |
% |
Money market |
|
539,020 |
|
|
|
5,874 |
|
|
4.37 |
% |
|
|
338,984 |
|
|
|
474 |
|
|
0.56 |
% |
Savings |
|
122,802 |
|
|
|
29 |
|
|
0.09 |
% |
|
|
136,755 |
|
|
|
31 |
|
|
0.09 |
% |
Certificates of deposit |
|
393,754 |
|
|
|
2,381 |
|
|
2.43 |
% |
|
|
387,129 |
|
|
|
677 |
|
|
0.70 |
% |
Total deposits |
|
1,077,856 |
|
|
|
8,292 |
|
|
3.09 |
% |
|
|
895,189 |
|
|
|
1,196 |
|
|
0.54 |
% |
Advance payments by borrowers |
|
16,967 |
|
|
|
2 |
|
|
0.05 |
% |
|
|
12,359 |
|
|
|
2 |
|
|
0.06 |
% |
Borrowings |
|
649,652 |
|
|
|
6,479 |
|
|
4.00 |
% |
|
|
89,965 |
|
|
|
481 |
|
|
2.14 |
% |
Total interest-bearing liabilities |
|
1,744,475 |
|
|
|
14,773 |
|
|
3.40 |
% |
|
|
997,513 |
|
|
|
1,679 |
|
|
0.68 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
|
299,707 |
|
|
|
— |
|
|
|
|
|
359,181 |
|
|
|
— |
|
|
|
Other non-interest-bearing liabilities |
|
42,906 |
|
|
|
— |
|
|
|
|
|
67,220 |
|
|
|
— |
|
|
|
Total non-interest-bearing liabilities |
|
342,613 |
|
|
|
— |
|
|
|
|
|
426,401 |
|
|
|
— |
|
|
|
Total liabilities |
|
2,087,088 |
|
|
|
14,773 |
|
|
|
|
|
1,423,914 |
|
|
|
1,679 |
|
|
|
Total equity |
|
496,305 |
|
|
|
|
|
|
|
|
305,488 |
|
|
|
|
|
|
Total liabilities and total equity |
$ |
2,583,393 |
|
|
|
|
|
3.40 |
% |
|
$ |
1,729,402 |
|
|
|
|
|
0.68 |
% |
Net interest income |
|
|
|
$ |
16,282 |
|
|
|
|
|
|
|
$ |
15,488 |
|
|
|
Net interest rate spread (6) |
|
|
|
|
|
|
1.66 |
% |
|
|
|
|
|
|
|
3.67 |
% |
Net interest-earning assets (7) |
$ |
717,749 |
|
|
|
|
|
|
|
$ |
586,581 |
|
|
|
|
|
|
Net interest margin (8) |
|
|
|
|
|
|
2.65 |
% |
|
|
|
|
|
|
|
3.92 |
% |
Average interest-earning assets to interest-bearing
liabilities |
|
|
|
|
|
|
141.14 |
% |
|
|
|
|
|
|
|
158.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized where appropriate.(2)
Loans include loans and mortgage loans held for sale, at fair
value.(3) Securities include available-for-sale securities and
held-to-maturity securities.(4) Includes FHLBNY demand account,
FHLBNY stock dividends and FRB demand deposits.(5) FRB demand
deposits for prior period have been reclassified for
consistency.(6) Net interest rate spread represents the difference
between the weighted average yield on interest-earning assets and
the weighted average rate of interest-bearing liabilities.(7) Net
interest-earning assets represent total interest-earning assets
less total interest-bearing liabilities.(8) Net interest margin
represents net interest income divided by average total
interest-earning assets.
Ponce Financial Group, Inc. and
Subsidiaries Average Balance Sheets
|
For the Six Months Ended
June 30, |
|
|
2023 |
|
|
2022 |
|
|
Average |
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
Outstanding |
|
|
|
|
|
Average |
|
|
Outstanding |
|
|
|
|
|
Average |
|
|
Balance |
|
|
Interest |
|
|
Yield/Rate (1) |
|
|
Balance |
|
|
Interest |
|
|
Yield/Rate |
|
|
(Dollars in thousands) |
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (2) |
$ |
1,627,939 |
|
|
$ |
42,715 |
|
|
|
5.29 |
% |
|
$ |
1,321,897 |
|
|
$ |
34,257 |
|
|
|
5.23 |
% |
Securities (3) |
|
622,822 |
|
|
|
11,806 |
|
|
|
3.82 |
% |
|
|
147,066 |
|
|
|
1,625 |
|
|
|
2.23 |
% |
Other (4) (5) |
|
106,812 |
|
|
|
2,890 |
|
|
|
5.46 |
% |
|
|
108,094 |
|
|
|
303 |
|
|
|
0.57 |
% |
Total interest-earning assets |
|
2,357,573 |
|
|
|
57,411 |
|
|
|
4.91 |
% |
|
|
1,577,057 |
|
|
|
36,185 |
|
|
|
4.63 |
% |
Non-interest-earning assets (5) |
|
122,083 |
|
|
|
|
|
|
|
|
|
151,047 |
|
|
|
|
|
|
|
Total assets |
$ |
2,479,656 |
|
|
|
|
|
|
|
|
$ |
1,728,104 |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW/IOLA |
$ |
22,804 |
|
|
$ |
17 |
|
|
|
0.15 |
% |
|
$ |
32,700 |
|
|
$ |
30 |
|
|
|
0.19 |
% |
Money market |
|
494,385 |
|
|
|
9,998 |
|
|
|
4.08 |
% |
|
|
329,448 |
|
|
|
709 |
|
|
|
0.43 |
% |
Savings |
|
125,823 |
|
|
|
59 |
|
|
|
0.09 |
% |
|
|
136,084 |
|
|
|
63 |
|
|
|
0.09 |
% |
Certificates of deposit |
|
387,592 |
|
|
|
4,252 |
|
|
|
2.21 |
% |
|
|
403,028 |
|
|
|
1,480 |
|
|
|
0.74 |
% |
Total deposits |
|
1,030,604 |
|
|
|
14,326 |
|
|
|
2.80 |
% |
|
|
901,260 |
|
|
|
2,282 |
|
|
|
0.51 |
% |
Advance payments by borrowers |
|
14,954 |
|
|
|
5 |
|
|
|
0.07 |
% |
|
|
11,091 |
|
|
|
3 |
|
|
|
0.05 |
% |
Borrowings |
|
587,026 |
|
|
|
11,553 |
|
|
|
3.97 |
% |
|
|
102,258 |
|
|
|
1,074 |
|
|
|
2.12 |
% |
Total interest-bearing liabilities |
|
1,632,584 |
|
|
|
25,884 |
|
|
|
3.20 |
% |
|
|
1,014,609 |
|
|
|
3,359 |
|
|
|
0.67 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
|
308,208 |
|
|
|
— |
|
|
|
|
|
|
365,771 |
|
|
|
— |
|
|
|
|
Other non-interest-bearing liabilities |
|
42,451 |
|
|
|
— |
|
|
|
|
|
|
57,446 |
|
|
|
— |
|
|
|
|
Total non-interest-bearing liabilities |
|
350,659 |
|
|
|
— |
|
|
|
|
|
|
423,217 |
|
|
|
— |
|
|
|
|
Total liabilities |
|
1,983,243 |
|
|
|
25,884 |
|
|
|
|
|
|
1,437,826 |
|
|
|
3,359 |
|
|
|
|
Total equity |
|
496,413 |
|
|
|
|
|
|
|
|
|
290,278 |
|
|
|
|
|
|
|
Total liabilities and total equity |
$ |
2,479,656 |
|
|
|
|
|
|
3.20 |
% |
|
$ |
1,728,104 |
|
|
|
|
|
|
0.67 |
% |
Net interest income |
|
|
|
$ |
31,527 |
|
|
|
|
|
|
|
|
$ |
32,826 |
|
|
|
|
Net interest rate spread (6) |
|
|
|
|
|
|
|
1.71 |
% |
|
|
|
|
|
|
|
|
3.96 |
% |
Net interest-earning assets (7) |
$ |
724,989 |
|
|
|
|
|
|
|
|
$ |
562,448 |
|
|
|
|
|
|
|
Net interest margin (8) |
|
|
|
|
|
|
|
2.70 |
% |
|
|
|
|
|
|
|
|
4.20 |
% |
Average interest-earning assets to interest-bearing
liabilities |
|
|
|
|
|
|
|
144.41 |
% |
|
|
|
|
|
|
|
|
155.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized where appropriate.(2)
Loans include loans and mortgage loans held for sale, at fair
value.(3) Securities include available-for-sale securities and
held-to-maturity securities.(4) Includes FHLBNY demand account,
FHLBNY stock dividends and FRB demand deposit.(5) FRB demand
deposits for prior period have been reclassified for
consistency.(6) Net interest rate spread represents the difference
between the weighted average yield on interest-earning assets and
the weighted average rate of interest-bearing liabilities.(7) Net
interest-earning assets represent total interest-earning assets
less total interest-bearing liabilities.(8) Net interest margin
represents net interest income divided by average total
interest-earning assets.
Ponce Financial Group, Inc. and
Subsidiaries Other Data
|
As of |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued |
|
24,886,711 |
|
|
|
24,865,476 |
|
|
|
24,861,329 |
|
|
|
24,728,460 |
|
|
|
24,724,274 |
|
Less treasury shares |
|
617,924 |
|
|
|
1,976 |
|
|
|
1,976 |
|
|
|
— |
|
|
|
— |
|
Common shares outstanding at end of period |
|
24,268,787 |
|
|
|
24,863,500 |
|
|
|
24,859,353 |
|
|
|
24,728,460 |
|
|
|
24,724,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
$ |
10.94 |
|
|
$ |
10.90 |
|
|
$ |
10.77 |
|
|
$ |
11.15 |
|
|
$ |
11.85 |
|
Tangible book value per common share |
$ |
10.94 |
|
|
$ |
10.90 |
|
|
$ |
10.77 |
|
|
$ |
11.15 |
|
|
$ |
11.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:Frank
Perezfrank.perez@poncebank.net718-931-9000
Ponce Financial (NASDAQ:PDLB)
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From May 2024 to Jun 2024
Ponce Financial (NASDAQ:PDLB)
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From Jun 2023 to Jun 2024