Ponce Financial Group, Inc. Reports Second Quarter 2025 Results

NEW YORK, July 25, 2025 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the second quarter of 2025. Second Quarter 2025 Highlights (Compared to Prior Periods): Net income available to common stockholders was $5.8 million, or $0.25 per diluted share for the three months ended June 30, 2025, as compared to net income available to common stockholders of $5.7 million, or $0.25 per diluted share for the three months ended March 31, 2025, and net income available to common stockholders of $3.1 million, or $0.14 per diluted share for the three months ended June 30, 2024. Total net income for the three months ended June 30, 2025, was $6.1 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended June 30, 2025.Included in the $5.8 million of net income available to common stockholders for the second quarter of 2025 results is $45.9 million in interest and dividend income and $2.1 million in non-interest income, offset by $21.4 million in interest expense, $16.9 million in non-interest expense, $1.9 million in provision for income taxes, $1.6 million in provision for credit losses and $0.3 million in dividends on preferred shares.Net interest income of $24.4 million for the second quarter of 2025 increased $2.2 million, or 10.01%, from the prior quarter and increased $6.5 million, or 36.43%, from the same quarter last year. Net interest margin was 3.27% for the second quarter of 2025, versus 2.98% for the prior quarter and 2.62% for the same quarter last year. Six Months 2025 Highlights (Compared to 2024): Net income available to common stockholders was $11.5 million, or $0.50 per diluted share for the six months ended June 30, 2025, as compared to net income available to common stockholders of $5.5 million, or $0.25 per diluted share for the six months ended June 30, 2024. Total net income for the six months ended June 30, 2025, was $12.1 million. The Company paid dividends of $0.6 million on its preferred stock during the six months ended June 30, 2025.Net interest income for the six months ended June 30, 2025, was $46.6 million, an increase of $9.9 million, or 26.96%, compared to $36.7 million for the six months ended June 30, 2024. Non-interest income for the six months ended June 30, 2025, was $4.4 million, an increase of $0.5 million, or 12.01%, from $4.0 million for the six months ended June 30, 2024.Non-interest expense for the six months ended June 30, 2025, was $33.8 million, an increase of $0.3 million, or 0.99%, compared to $33.4 million for the six months ended June 30, 2024.Cash and equivalents were $126.6 million as of June 30, 2025, a decrease of $13.2 million, or 9.44%, from $139.8 million as of December 31, 2024.Securities totaled $433.4 million as of June 30, 2025, a decrease of $39.5 million, or 8.35%, from $472.9 million as of December 31, 2024, primarily due to regular principal payments, the call of two available-for-sale securities in the total amount of $6.0 million and the maturity of one held-for-sale security in the amount of $10.0 million.Net loans receivable were $2.46 billion as of June 30, 2025, an increase of $172.1 million, or 7.53%, from $2.29 billion as of December 31, 2024.Deposits were $2.04 billion as of June 30, 2025, an increase of $157.3 million, or 8.35%, from $1.88 billion as of December 31, 2024. President and Chief Executive Officer’s Comments Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “We continue to execute on our strategy of prudent growth and incremental profitability. Our diluted earnings per share of $0.50 for the six months ended June 30, 2025, doubled from the same period last year driven by incremental net interest income and non-interest income while keeping non-interest expenses almost flat. Our net interest margin this quarter increased by 29 basis points compared to the prior quarter, reflecting both our high-yielding construction loans and our decreasing borrowing costs. Our non-performing loans also decreased this quarter. All-in-all, a very good quarter in these turbulent and uncertain times.” Executive Chairman’s Comment Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman, added “We continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program. As we previously communicated, given our level of originations from April 2024 to March 2025, we have ensured another year of the lowest possible preferred stock dividend of 0.50%. Regarding next year’s dividend period, we’re at 69% of the goal to qualify for the 0.50% rate with three more quarters to go. Also, we’re mindful of our percentage of deep impact lending, as we need to be at 60% or above for 16 quarters cumulatively, as a condition to buy the preferred stock back. After 12 quarters, including the quarter ended June 30, 2025, we are at 80% deep impact lending.” The table below indicates the Key Metrics at or for the three months ended: At or for the Three Months Ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Performance Ratios: Return on average assets (1) 0.79% 0.77% 0.38% 0.33% 0.45%Return on common equity (1) 7.88% 7.97% 3.76% 3.06% 4.60%Net interest margin (1) (2) 3.27% 2.98% 2.80% 2.65% 2.62%Non-interest expense to average assets (1) 2.18% 2.19% 2.25% 2.19% 2.28%Efficiency ratio (3) 63.69% 68.70% 75.63% 80.87% 80.09%Capital Ratios: Total capital to risk-weighted assets (Ponce Financial Group) 22.65% 22.84% 22.98% 22.87% 23.86%Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group) 12.49% 12.51% 12.44% 12.28% 12.71%Tier 1 capital to total assets (Ponce Financial Group) 17.13% 16.84% 17.70% 17.81% 17.88%Total capital to risk-weighted assets (Bank only) 21.22% 21.38% 21.47% 21.61% 22.47%Common equity Tier 1 capital to risk-weighted assets (Bank only) 20.15% 20.35% 20.40% 20.45% 21.24%Tier 1 capital to total assets (Bank only) 15.99% 15.61% 15.81% 16.19% 16.70%Asset Quality Ratios: Allowance for credit losses on loans as a percentage of total loans 0.97% 0.96% 0.97% 1.09% 1.18%Allowance for credit losses on loans as a percentage of nonperforming loans 101.01% 84.15% 82.29% 139.52% 130.28%Net (charge-offs) recoveries to average outstanding loans (1) (0.04%) (0.04%) (0.45%) (0.17%) (0.10%)Non-performing loans as a percentage of total assets 0.76% 0.88% 0.90% 0.57% 0.65%Other: Number of offices 17 18 19 19 18 Number of full-time equivalent employees 206 211 218 228 227 (1) Annualized where appropriate.(2) Net interest margin represents net interest income divided by average total interest-earning assets.(3) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income. Summary of Results of Operations Net income for the three months ended June 30, 2025, was $6.1 million compared to net income of $6.0 million for the three months ended March 31, 2025, and net income of $3.2 million for the three months ended June 30, 2024. The $0.1 million increase of net income for the three months ended June 30, 2025, compared to the three months ended March 31, 2025, was attributed mainly to increase of $2.2 million in net interest income and a decrease of $0.1 million in provision for income taxes while remaining flat on non-interest expense, partially offset by an increase of $1.9 million in provision for credit losses and a decrease of $0.3 million in non-interest income. The $2.9 million increase of net income for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 was largely due to increases of $6.5 million in net interest income, partially offset by increases of $2.5 million in provision for credit losses, $0.7 million in provision for income taxes and $0.2 million in non-interest expense and a decrease of $0.2 million in non-interest income. Net income for the six months ended June 30, 2025, was $12.1 million compared to net income of $5.6 million for the six months ended June 30, 2024. The $6.5 million increase of net income for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was attributed mainly to increases of $9.9 million in net interest income and $0.5 million in non-interest income; partially offset by increases of $2.2 million in provision for credit losses, $1.4 million in provision for income taxes and $0.3 million in non-interest expense. Net Interest Income and Net Interest Margin Net interest income for the three months ended June 30, 2025, increased $2.2 million, or 10.01%, to $24.4 million compared to $22.2 million for the three months ended March 31, 2025, and increased $6.5 million, or 36.43%, compared to $17.9 million for the three months ended June 30, 2024. The $2.2 million increase in net interest income from the three months ended March 31, 2025, was attributable to an increase of $1.9 million in total interest and dividend income and a decrease of $0.3 million in total interest expense. The $6.5 million increase in net interest income from the three months ended June 30, 2024, was attributable to an increase of $7.0 million in total interest and dividend income, offset by an increase of $0.5 million in total interest expense. Net interest income for the six months ended June 30, 2025, increased $9.9 million, or 26.96%, to $46.6 million compared to $36.7 million for the six months ended June 30, 2024. The $9.9 million increase in net interest income was attributable to an increase of $11.4 million in total interest and dividend income, offset by an increase of $1.5 million in total interest expense. Net interest margin was 3.27% for the three months ended June 30, 2025, compared to 2.98% for the prior quarter, an increase of 29bps and 2.62% for the same period last year, an increase of 65bps. Net interest margin was 3.12% for the six months ended June 30, 2025 compared to 2.67% for the six months ended June 30, 2024, an increase of 45bps. Non-interest Income Non-interest income for the three months ended June 30, 2025, was $2.1 million, a decrease of $0.3 million, or 13.48%, compared to $2.4 million for the three months ended March 31, 2025, and a decrease of $0.2 million, or 8.77%, compared to $2.3 million for the three months ended June 30, 2024. The $0.3 million decrease in non-interest income from the three months ended March 31, 2025, was largely attributable to decreases of$0.4 million in income on sale of SBA loans, $0.2 million in late and prepayment charges and $0.2 million in other non-interest income, partially offset by an increase of $0.4 million in grant income. The $0.2 million decrease in non-interest income from the three months ended June 30, 2024, was largely attributable to decreases of $0.6 million in other non-interest income and $0.1 million in income on the sale of mortgage loans, partially offset by increases of $0.4 million in grant income and $0.1 million in late and prepayment charges. Non-interest income for the six months ended June 30, 2025, was $4.4 million, an increase of $0.5 million, or 12.01%, compared to $4.0 million for the six months ended June 30, 2024. The $0.5 million increase in non-interest income was largely attributable to increases of $0.4 million in grant income, $0.4 million in income on sale of SBA loans and $0.4 million in late and prepayment charges, partially offset by decreases of $0.6 million in other non-interest income and $0.3 million in income on the sale of mortgage loans. Non-interest Expense Non-interest expense for the three months ended June 30, 2025, remained flat at $16.9 million compared to the three months ended March 31, 2025, and increased $0.2 million, or 1.38%, compared to $16.6 million for the three months ended June 30, 2024. The $0.2 million increase in non-interest expense from the three months ended June 30, 2024, was mainly attributable to increases of $0.3 million in occupancy and equipment, $0.2 million in data processing expenses, $0.1 million in marketing and promotional expenses and $0.1 million in federal deposit insurance and regulatory assessment, partially offset by a decrease of $0.4 million in direct loan expenses. Non-interest expense for the six months ended June 30, 2025, was $33.8 million, an increase of $0.3 million, or 0.99%, compared to $33.4 million for the six months ended June 30, 2024. The $0.3 million increase in non-interest expense was mainly attributable to increases of $0.6 million in occupancy and equipment, $0.4 million in other operating expense and $0.2 million in data processing expenses, partially offset by decreases of $0.7 million in direct loan expenses and $0.4 million in professional fees. Credit Quality: Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $28.5 million at June 30, 2025, compared to $32.0 million at March 31, 2025, and $23.2 million at June 30, 2024. During the three months ended June 30, 2025, a credit loss provision of $1.6 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.3 million charged on the unfunded portion on loans. During the three months ended March 31, 2025, a credit loss benefit of $0.3 million on loans was recorded, consisting of $0.7 million charged on the funded portion and a benefit of $1.0 million on the unfunded portion on loans. During the three months ended June 30, 2024, a credit loss benefit of $0.6 million on loans was recorded, consisting of $0.5 million benefit on the unfunded portion on loans and $0.1 million benefit on the funded portion. During the six months ended June 30, 2025, a credit loss provision of $1.3 million on loans was recorded, consisting of $2.1 million charged on the funded portion and a benefit of $0.8 million on the unfunded portion on loans. During the six months ended June 30, 2024, a credit loss benefit of $0.7 million on loans was recorded, consisting of $0.4 million benefit on the funded portion and a benefit of $0.3 million on unfunded portion on loans. Balance Sheet Summary Total assets increased $113.9 million, or 3.75%, to $3.15 billion as of June 30, 2025, from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $172.1 million in net loans receivable, $1.7 million in other assets and $1.4 million in accrued interest receivable, partially offset by decreases of $31.1 million in held-to-maturity securities, $13.2 million in cash and cash equivalents, $8.4 million in available-for-sale securities, $5.0 million in mortgage loans held for sale and $2.6 million in Federal Home Loan Bank of New York stock. Total liabilities increased $98.3 million, or 3.88%, to $2.63 billion as of June 30, 2025, from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to an increase of $157.3 million in deposits, $0.6 million in advance payments by borrowers for taxes and insurance and $0.4 million in accrued interest payable, partially offset by decreases of $60.0 million in borrowings and $0.2 million in operating lease liabilities. Total stockholders’ equity increased $15.6 million, or 3.08%, to $521.1 million as of June 30, 2025, from $505.5 million as of December 31, 2024. The $15.6 million increase in stockholders’ equity was largely attributable to $12.1 million in net income, $2.3 million in other comprehensive income, $1.0 million impact to additional paid in capital as a result of share-based compensation and $0.9 million from release of ESOP shares, offset by $0.6 million in dividends on preferred 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; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank’s market area; Ponce Bank’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation. Ponce Financial Group, Inc. and SubsidiariesConsolidated Statements of Financial Condition(Dollars in thousands, except for share data) As of June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 ASSETS Cash and due from banks: Cash $35,767 $32,113 $35,478 $32,061 $23,128 Interest-bearing deposits 90,872 97,780 104,361 123,751 80,038 Total cash and cash equivalents 126,639 129,893 139,839 155,812 103,166 Available-for-sale securities, at fair value 96,562 103,570 104,970 111,005 113,125 Held-to-maturity securities, at amortized cost 336,879 358,024 367,938 403,736 442,113 Placement with banks 249 249 249 249 249 Mortgage loans held for sale, at fair value 5,703 8,567 10,736 9,566 37,764 Loans receivable, net 2,458,712 2,370,931 2,286,599 2,180,331 2,022,173 Accrued interest receivable 19,126 19,008 17,771 16,890 17,441 Premises and equipment, net 16,067 16,417 16,794 16,843 16,976 Right of use assets 28,806 29,496 29,093 29,785 30,349 Federal Home Loan Bank of New York stock (FHLBNY), at cost 26,620 25,807 29,182 28,515 23,972 Deferred tax assets 12,143 11,629 12,074 11,845 13,172 Other assets 26,363 16,245 24,693 51,392 21,507 Total assets $3,153,869 $3,089,836 $3,039,938 $3,015,969 $2,842,007 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $2,042,209 $2,004,947 $1,884,864 $1,870,323 $1,606,097 Operating lease liabilities 30,501 31,126 30,696 31,343 31,861 Accrued interest payable 4,161 4,628 3,712 2,918 6,820 Advance payments by borrowers for taxes and insurance 10,942 12,901 10,349 13,733 10,838 Borrowings 536,100 521,100 596,100 580,421 680,421 Other liabilities 8,868 1,248 8,717 12,642 8,313 Total liabilities 2,632,781 2,575,950 2,534,438 2,511,380 2,344,350 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 (7,404) (7,641) (7,707) (9,445) (9,519)Additional paid-in-capital 208,275 207,888 207,319 208,478 207,934 Retained earnings 119,250 113,432 107,754 105,103 102,951 Accumulated other comprehensive loss (13,047) (13,515) (15,297) (12,686) (16,557)Unearned compensation ─ ESOP (11,235) (11,527) (11,818) (12,110) (12,401)Total stockholders' equity 521,088 513,886 505,500 504,589 497,657 Total liabilities and stockholders' equity $3,153,869 $3,089,836 $3,039,938 $3,015,969 $2,842,007 Ponce Financial Group, Inc. and SubsidiariesConsolidated Statements of Operations(Dollars in thousands, except per share data) Three Months Ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Interest and dividend income: Interest on loans receivable $40,291 $37,136 $35,622 $32,945 $31,281 Interest on deposits due from banks 807 1,668 1,783 2,430 1,542 Interest and dividend on securities and FHLBNY stock 4,762 5,193 5,481 5,918 5,969 Total interest and dividend income 45,860 43,997 42,886 41,293 38,792 Interest expense: Interest on certificates of deposit 7,382 7,754 8,104 6,926 6,358 Interest on other deposits 9,058 8,554 8,476 8,519 7,389 Interest on borrowings 4,994 5,486 5,576 6,825 7,141 Total interest expense 21,434 21,794 22,156 22,270 20,888 Net interest income 24,426 22,203 20,730 19,023 17,904 Provision (benefit) for credit losses (1) 1,626 (285) 897 537 (867)Net interest income after provision (benefit) for credit losses 22,800 22,488 19,833 18,486 18,771 Non-interest income: Service charges and fees 511 525 500 508 492 Brokerage commissions — 4 44 — 9 Late and prepayment charges 530 697 318 77 426 Income on sale of mortgage loans 169 148 254 218 274 Income on sale of SBA loans — 404 148 — — Grant income 428 — — — — Other 422 603 833 348 1,057 Total non-interest income 2,060 2,381 2,097 1,151 2,258 Non-interest expense: Compensation and benefits 7,627 7,780 7,668 7,674 7,724 Occupancy and equipment 3,907 3,913 3,863 3,786 3,564 Data processing expenses 1,188 1,152 1,143 1,099 1,013 Direct loan expenses 241 388 617 573 633 Insurance and surety bond premiums 297 315 293 292 263 Office supplies, telephone and postage 174 170 294 222 233 Professional fees 1,367 1,364 1,703 1,351 1,369 Microloans recoveries — — (29) (54) (65)Marketing and promotional expenses 266 83 289 180 145 Federal deposit insurance and regulatory assessment (2) 546 461 418 392 428 Other operating expenses (2) 1,256 1,262 1,206 1,051 1,333 Total non-interest expense (1) 16,869 16,888 17,465 16,566 16,640 Income before income taxes 7,991 7,981 4,465 3,071 4,389 Provision for income taxes 1,891 2,022 1,532 638 1,197 Net income $6,100 $5,959 $2,933 $2,433 $3,192 Dividends on preferred shares 282 281 282 281 75 Net income available to common stockholders $5,818 $5,678 $2,651 $2,152 $3,117 Earnings per common share: Basic $0.26 $0.25 $0.12 $0.10 $0.14 Diluted $0.25 $0.25 $0.12 $0.10 $0.14 Weighted average common shares outstanding: Basic 22,716,615 22,662,916 22,528,160 22,446,009 22,409,803 Diluted 22,947,769 22,876,740 22,807,644 22,612,028 22,419,309 (1) For the three months ended December 31, 2024, September 30, 2024, and June 30, 2024, benefit for contingencies in the amounts of $0.2 million, $0.3 million and $0.5 million were reclassified from total non-interest expense to benefit for credit losses. (2) For the three months ended September 30, 2024, and June 30, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each of the periods.Ponce Financial Group, Inc. and SubsidiariesConsolidated Statements of Operations(Dollars in thousands, except per share data) For the Six Months Ended June 30, 2025 2024 Variance $ Variance % Interest and dividend income: Interest on loans receivable $77,427 $61,945 $15,482 24.99%Interest on deposits due from banks 2,475 4,453 (1,978) (44.42%)Interest and dividend on securities and FHLBNY stock 9,955 12,060 (2,105) (17.45%)Total interest and dividend income 89,857 78,458 11,399 14.53%Interest expense: Interest on certificates of deposit 15,136 12,738 2,398 18.83%Interest on other deposits 17,612 13,929 3,683 26.44%Interest on borrowings 10,480 15,064 (4,584) (30.43%)Total interest expense 43,228 41,731 1,497 3.59%Net interest income 46,629 36,727 9,902 26.96%Provision (benefit) for credit losses (1) 1,341 (883) 2,224 (251.87%)Net interest income after provision (benefit) for credit losses 45,288 37,610 7,678 20.41%Non-interest income: Service charges and fees 1,036 965 71 7.36%Brokerage commissions 4 17 (13) (76.47%)Late and prepayment charges 1,227 785 442 56.31%Income on sale of mortgage loans 317 576 (259) (44.97%)Income on sale of SBA loans 404 — 404 —%Grant income 428 — 428 —%Other 1,025 1,622 (597) (36.81%)Total non-interest income 4,441 3,965 476 12.01%Non-interest expense: Compensation and benefits 15,407 15,568 (161) (1.03%)Occupancy and equipment 7,820 7,231 589 8.15%Data processing expenses 2,340 2,140 200 9.35%Direct loan expenses 629 1,365 (736) (53.92%)Insurance and surety bond premiums 612 516 96 18.60%Office supplies, telephone and postage 344 482 (138) (28.63%)Professional fees 2,731 3,092 (361) (11.68%)Microloans recoveries — (118) 118 (100.00%)Marketing and promotional expenses 349 245 104 42.45%Federal deposit insurance and regulatory assessments (2) 1,007 817 190 23.26%Other operating expenses (2) 2,518 2,088 430 20.59%Total non-interest expense (1) 33,757 33,426 331 0.99%Income before income taxes 15,972 8,149 7,823 96.00%Provision for income taxes 3,913 2,543 1,370 53.87%Net income $12,059 $5,606 $6,453 115.11%Dividends on preferred shares 563 75 488 650.67%Net income available to common stockholders $11,496 $5,531 $5,965 107.85%Earnings per common share: Basic $0.51 $0.25 $0.26 104.00%Diluted $0.50 $0.25 $0.25 100.00%Weighted average common shares outstanding: Basic 22,689,914 22,381,647 308,267 1.38%Diluted 22,920,841 22,393,018 527,823 2.36% (1) For the six months ended June 30, 2024, benefit for contingencies in the amount of $0.3 million were reclassified from total non-interest expense to benefit for credit losses. (2) For the six months ended June 30, 2024, $0.6 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.2 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each of the periods. Ponce Financial Group, Inc. and SubsidiariesLoans Receivable excluding Mortgage Loans Held for Sale As of June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (Dollars in thousands) Mortgage loans: 1-4 family residential Investor Owned $317,488 12.78% $325,866 13.62% $330,053 14.30% $332,380 15.09% $337,292 16.49%Owner-Occupied 134,862 5.43% 137,676 5.75% 142,363 6.17% 145,065 6.59% 147,485 7.21%Multifamily residential 693,670 27.96% 675,541 28.24% 670,159 29.04% 678,029 30.78% 545,323 26.66%Nonresidential properties 404,512 16.30% 390,681 16.33% 389,898 16.89% 383,277 17.40% 337,583 16.51%Construction and land 883,462 35.59% 815,425 34.08% 733,660 31.79% 631,461 28.67% 641,879 31.39%Total mortgage loans 2,433,994 98.06% 2,345,189 98.02% 2,266,133 98.19% 2,170,212 98.53% 2,009,562 98.26%Non-mortgage loans: Business loans 47,372 1.91% 46,329 1.94% 40,849 1.77% 28,499 1.29% 30,222 1.48%Consumer loans (1) 840 0.03% 997 0.04% 1,038 0.04% 4,021 0.18% 5,305 0.26%Total non-mortgage loans 48,212 1.94% 47,326 1.98% 41,887 1.81% 32,520 1.47% 35,527 1.74%Total loans, gross 2,482,206 100.00% 2,392,515 100.00% 2,308,020 100.00% 2,202,732 100.00% 2,045,089 100.00%Net deferred loan origination costs 606 1,390 1,081 1,565 1,145 Allowance for credit losses on loans (24,100) (22,974) (22,502) (23,966) (24,061) Loans, net $2,458,712 $2,370,931 $2,286,599 $2,180,331 $2,022,173 (1) As of September 30, 2024, and June 30, 2024, consumer loans include $3.0 million, and $4.3 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.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, 2025 2025 2024 2024 2024 (Dollars in thousands) Allowance for credit losses on loans at beginning of the period $22,974 $22,502 $23,966 $24,061 $24,664 Provision (benefit) for credit losses on loans 1,348 731 1,090 801 (120)Charge-offs: Mortgage loans: 1-4 family residences Investor owned — (38) — — — Owner occupied — — — — — Multifamily residences — — — — — Nonresidential properties — — — (7) — Construction and land — — — — — Non-mortgage loans: Business (222) (222) (232) (450) — Consumer — (3) (2,465) (634) (747)Total charge-offs (222) (263) (2,697) (1,091) (747)Recoveries: Non-mortgage loans: Business — 4 — 1 7 Consumer — — 143 194 257 Total recoveries — 4 143 195 264 Net (charge-offs) recoveries (222) (259) (2,554) (896) (483)Allowance for credit losses on loans at end of the period $24,100 $22,974 $22,502 $23,966 $24,061 Ponce Financial Group, Inc. and SubsidiariesDeposits As of June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (Dollars in thousands) Demand $197,671 9.68% $212,139 10.58% $169,178 8.98% $182,737 9.78% $178,125 11.09%Interest-bearing deposits: NOW/IOLA accounts 63,626 3.12% 74,430 3.71% 62,616 3.32% 71,445 3.82% 81,178 5.05%Money market accounts 790,939 38.73% 692,753 34.55% 636,219 33.75% 660,168 35.30% 502,255 31.27%Reciprocal deposits 136,693 6.69% 141,838 7.07% 130,677 6.93% 94,145 5.03% 109,945 6.85%Savings accounts 102,759 5.03% 106,122 5.29% 105,870 5.62% 108,941 5.82% 109,694 6.83%Total NOW, money market, reciprocal and savings accounts 1,094,017 53.57% 1,015,143 50.62% 935,382 49.62% 934,699 49.97% 803,072 50.00%Certificates of deposit of $250K or more (1) 220,671 10.81% 219,721 10.96% 204,293 10.84% 210,262 11.25% 189,683 11.82%Brokered certificates of deposit (2) 69,531 3.40% 84,531 4.22% 94,531 5.02% 94,531 5.05% 94,614 5.89%Listing service deposits (2) 6,140 0.30% 6,140 0.31% 7,376 0.39% 7,376 0.39% 9,361 0.58%All other certificates of deposit less than $250K (1) 454,179 22.24% 467,273 23.31% 474,104 25.15% 440,718 23.56% 331,242 20.62%Total certificates of deposit 750,521 36.75% 777,665 38.80% 780,304 41.40% 752,887 40.25% 624,900 38.91%Total interest-bearing deposits 1,844,538 90.32% 1,792,808 89.42% 1,715,686 91.02% 1,687,586 90.22% 1,427,972 88.91%Total deposits $2,042,209 100.00% $2,004,947 100.00% $1,884,864 100.00% $1,870,323 100.00% $1,606,097 100.00% (1) As of September 30, 2024, and June 30, 2024, $36.2 million, and $33.5 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more. (2) There were no individual listing service deposits amounting to $250,000 or more. There was one brokered certificates of deposit in the amount of $1.5 million amounting to $250,000 or more. All other brokered certificates of deposit individually amounted to less than $250,000. Ponce Financial Group, Inc. and Subsidiaries Nonperforming Assets As of Three Months Ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 (Dollars in thousands) Non-accrual loans: Mortgage loans: 1-4 family residential Investor owned $1,859 $1,052 $436 $436 $436 Owner occupied — 1,423 1,423 1,423 1,423 Multifamily residential 11,703 9,788 10,271 4,685 5,754 Nonresidential properties 405 — — 824 828 Construction and land 8,907 14,159 14,158 8,907 8,907 Non-mortgage loans: Business 276 170 343 180 396 Consumer — — — — — Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) $23,150 $26,592 $26,631 $16,455 $17,744 Non-accruing modifications to borrowers experiencing financial difficulty (1): Mortgage loans: 1-4 family residential Investor owned $284 $279 $279 $278 $277 Owner occupied 424 431 435 444 448 Multifamily residential — — — — — Nonresidential properties — — — — — Construction and land — — — — — Non-mortgage loans: Business — — — — — Consumer — — — — — Total non-accruing modifications to borrowers experiencing financial difficulty (1) 708 710 714 722 725 Total non-performing assets (2) $23,858 $27,302 $27,345 $17,177 $18,469 Accruing modifications to borrowers experiencing financial difficulty (1): Mortgage loans: 1-4 family residential Investor owned $1,779 $1,792 $1,807 $1,821 $1,830 Owner occupied 2,012 2,038 2,062 2,116 2,171 Multifamily residential — — — — — Nonresidential properties 655 644 652 672 707 Construction and land — — — — — Non-mortgage loans: Business 203 209 215 222 — Consumer — — — — — Total accruing modifications to borrowers experiencing financial difficulty (1) $4,649 $4,683 $4,736 $4,831 $4,708 Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) $28,507 $31,985 $32,081 $22,008 $23,177 Total non-performing assets to total assets 0.76% 0.88% 0.90% 0.57% 0.65% (1) 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.(2) Includes nonperforming mortgage loans held for sale. Ponce Financial Group, Inc. and Subsidiaries Average Balance Sheets For the Three Months Ended June 30, 2025 2024 Average Average Outstanding Average Outstanding Average Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1) (Dollars in thousands)Interest-earning assets: Loans (2) $2,447,713 $40,291 6.60% $2,040,149 $31,281 6.17% Securities (3) 449,858 4,246 3.79% 562,560 5,486 3.92% Other (4) 102,252 1,323 5.19% 141,368 2,025 5.76% Total interest-earning assets 2,999,823 45,860 6.13% 2,744,077 38,792 5.69% Non-interest-earning assets 104,059 105,774 Total assets $3,103,882 $2,849,851 Interest-bearing liabilities: NOW/IOLA $68,155 $100 0.59% $72,932 $151 0.83% Money market 864,688 8,930 4.14% 599,209 7,209 4.84% Savings 104,243 26 0.10% 111,859 27 0.10% Certificates of deposit 772,363 7,382 3.83% 635,850 6,358 4.02% Total deposits 1,809,449 16,438 3.64% 1,419,850 13,745 3.89% Advance payments by borrowers 14,934 2 0.05% 14,948 2 0.05% Borrowings 521,375 4,994 3.84% 680,421 7,141 4.22% Total interest-bearing liabilities 2,345,758 21,434 3.66% 2,115,219 20,888 3.97% Non-interest-bearing liabilities: Non-interest-bearing demand 203,349 — 188,920 — Other non-interest-bearing liabilities 36,435 — 49,437 — Total non-interest-bearing liabilities 239,784 — 238,357 — Total liabilities 2,585,542 21,434 2,353,576 20,888 Total equity 518,340 496,275 Total liabilities and total equity $3,103,882 3.66% $2,849,851 3.97% Net interest income $24,426 $17,904 Net interest rate spread (5) 2.47% 1.72% Net interest-earning assets (6) $654,065 $628,858 Net interest margin (7) 3.27% 2.62% Average interest-earning assets to interest-bearing liabilities 127.88% 129.73% (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 FRBNY demand deposits.(5) 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.(6) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.(7) Net interest margin represents net interest income divided by average total interest-earning assets. Ponce Financial Group, Inc. and Subsidiaries Average Balance Sheets Six Months Ended June 30, 2025 2024 Average Average Outstanding Average Outstanding Average Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1) (Dollars in thousands) Interest-earning assets: Loans (2) $2,408,788 $77,427 6.48% $2,009,706 $61,945 6.20%Securities (3) 458,660 8,767 3.85% 569,397 11,105 3.92%Other (4) 143,905 3,663 5.13% 189,899 5,408 5.73%Total interest-earning assets 3,011,353 89,857 6.02% 2,769,002 78,458 5.70%Non-interest-earning assets 106,600 106,172 Total assets $3,117,953 $2,875,174 Interest-bearing liabilities: NOW/IOLA $70,243 $215 0.62% $77,891 $369 0.95%Money market 846,420 17,341 4.13% 571,886 13,501 4.75%Savings 104,704 52 0.10% 112,680 55 0.10%Certificates of deposit 783,256 15,136 3.90% 632,689 12,738 4.05%Total deposits 1,804,623 32,744 3.66% 1,395,146 26,663 3.84%Advance payments by borrowers 13,696 4 0.06% 13,917 4 0.06%Borrowings 544,857 10,480 3.88% 725,745 15,064 4.17%Total interest-bearing liabilities 2,363,176 43,228 3.69% 2,134,808 41,731 3.93%Non-interest-bearing liabilities: Non-interest-bearing demand 200,007 — 193,891 — Other non-interest-bearing liabilities 40,155 — 51,749 — Total non-interest-bearing liabilities 240,162 — 245,640 — Total liabilities 2,603,338 43,228 2,380,448 41,731 Total equity 514,615 494,726 Total liabilities and total equity $3,117,953 3.69% $2,875,174 3.93%Net interest income $46,629 $36,727 Net interest rate spread (5) 2.33% 1.77%Net interest-earning assets (6) $648,177 $634,194 Net interest margin (7) 3.12% 2.67%Average interest-earning assets to interest-bearing liabilities 127.43% 129.71% (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 FRBNY demand deposits.(5) 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.(6) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.(7) Net interest margin represents net interest income divided by average total interest-earning assets. Ponce Financial Group, Inc. and SubsidiariesOther Data As of June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Other Data Common shares issued 24,886,711 24,886,711 24,886,711 24,886,711 24,886,711 Less treasury shares 901,911 920,520 925,497 1,067,248 1,074,979 Common shares outstanding at end of period 23,984,800 23,966,191 23,961,214 23,819,463 23,811,732 Book value per common share $12.34 $12.05 $11.71 $11.74 $11.45 Tangible book value per common share $12.34 $12.05 $11.71 $11.74 $11.45 Contact:Sergio J. Vaccarosergio.vaccaro@poncebank.net718-931-9000

Ponce Financial Group, Inc. Reports Second Quarter 2025 Results

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