NEW YORK, April 24, 2026 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the "Company") (NASDAQ:PDLB), the holding company for Ponce Bank, National Association ("Ponce Bank" or the "Bank"), today announced results for the first quarter of 2026.

First Quarter 2026 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $8.3 million, or $0.36 per diluted share for the three months ended March 31, 2026, as compared to net income available to common stockholders of $9.9 million, or $0.42 per diluted share for the three months ended December 31, 2025 and net income available to common stockholders of $5.7 million, or $0.25 per diluted share for the three months ended March 31, 2025. Total net income for the three months ended March 31, 2026 was $8.6 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended March 31, 2026.
Included in the $8.3 million of net income available to common stockholders for the first quarter of 2026 results is $48.7 million in total interest and dividend income and $2.0 million in non-interest income, offset by $20.4 million in interest expense, $17.2 million in non-interest expense, $2.7 million in provision for income taxes, $1.7 million in provision for credit losses and $0.3 million in dividends on preferred shares.
Net interest income of $28.2 million for the first quarter of 2026 increased $0.3 million, or 1.05%, from the prior quarter and increased $6.0 million, or 27.13%, from the same quarter last year.
Net interest margin was 3.61% for the first quarter of 2026, versus 3.57% for the prior quarter and 2.98% for the same quarter last year.
Cash and equivalents were $117.2 million as of March 31, 2026, a decrease of $8.9 million, or 7.06%, from $126.2 million as of December 31, 2025.
Securities totaled $350.7 million as of March 31, 2026, a decrease of $14.5 million, or 3.97%, from $365.2 million as of December 31, 2025 primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of $3.0 million.
Net loans receivable were $2.70 billion as of March 31, 2026, an increase of $99.4 million, or 3.82%, from $2.60 billion as of December 31, 2025.
Deposits were $2.13 billion as of March 31, 2026, an increase of $87.2 million, or 4.26%, from $2.05 billion as of December 31, 2025.

President and Chief Executive Officer's Comments

Carlos P. Naudon, Ponce Financial Group, Inc.'s President and CEO, stated "Our disciplined execution continues to serve Ponce well. Our diluted earnings per share of $0.36 this quarter is up 44% vs the same quarter last year and our book value per share of $13.49 is up $1.44 or 12% over the same period. Net interest margin is up 4 basis points versus last quarter and 63 basis points vs the same quarter last year. Our non-performing assets went down this quarter by 22 basis points and now stand at 62 basis points of total assets. Our capital ratios continue to be well in excess of regulatory requirements. We remain committed to the communities we serve, and we'll continue investing in our people and in technology to improve our efficiency."

Executive Chairman's Comment

Steven A. Tsavaris, Ponce Financial Group's Executive Chairman added "We're pleased with our business activity during the quarter and by our loan and deposit growth. We continue to make progress towards our commitments under the U.S. Treasury's Emergency Capital Investment Program and we're one quarter away from achieving 16 quarters of a cumulative deep impact lending percentage of more than 60%. After 15 quarters, including the quarter ended March 31, 2026, we are at 82% deep impact lending."

The table below indicates the Key Metrics at or for the three months ended:

	At or for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2026			2025			2025			2025			2025
Performance Ratios:
Return on average assets ⁽¹⁾		1.07	%		1.26	%		0.82	%		0.79	%		0.77	%
Return on common equity ⁽¹⁾		10.37	%		12.50	%		8.10	%		7.88	%		7.97	%
Net interest margin ^{(1) (2)}		3.61	%		3.57	%		3.30	%		3.27	%		2.98	%
Non-interest expense to average assets ⁽¹⁾		2.14	%		2.06	%		2.10	%		2.18	%		2.19	%
Efficiency ratio ⁽³⁾		56.96	%		52.95	%		62.15	%		63.69	%		68.70	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)		21.23	%		23.00	%		24.08	%		22.65	%		22.84	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)		12.11	%		12.98	%		13.39	%		12.49	%		12.51	%
Tier 1 capital to total assets (Ponce Financial Group)		17.22	%		17.27	%		17.33	%		17.13	%		16.84	%
Total capital to risk-weighted assets (Bank only)		20.00	%		21.63	%		21.79	%		21.22	%		21.38	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		18.97	%		20.53	%		20.66	%		20.15	%		20.35	%
Tier 1 capital to total assets (Bank only)		16.09	%		16.12	%		16.08	%		15.99	%		15.61	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.96	%		0.97	%		0.98	%		0.97	%		0.96	%
Allowance for credit losses on loans as a percentage of nonperforming loans		128.93	%		94.74	%		88.88	%		101.01	%		84.15	%
Net (charge-offs) recoveries to average outstanding loans ⁽¹⁾		(0.08	%)		(0.13	%)		(0.03	%)		(0.04	%)		(0.04	%)
Non-performing loans as a percentage of total assets		0.62	%		0.83	%		0.88	%		0.76	%		0.88	%
Other:
Number of offices		17			17			18			17			18
Number of full-time equivalent employees		218			216			209			206			211

(1)   Annualized.

(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 March 31, 2026 was $8.6 million compared to net income of $10.1 million for the three months ended December 31, 2025 and net income of $6.0 million for the three months ended March 31, 2025.

The $1.5 million decrease of net income for the three months ended March 31, 2026 compared to the three months ended December 31, 2025 was attributed mainly to a decrease of $1.4 million in non-interest income and increases of $0.6 million non-interest expense and $0.6 million in provision for credit losses, offset by an increase of $0.3 million in net interest income and a decrease of $0.8 million in provision for income taxes.

The $2.7 million increase of net income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was largely due to an increase of $6.0 million in net interest income, offset by increases of $1.9 million in provision for credit losses, $0.7 million in provision for income taxes and $0.4 million in non-interest expense and a decrease of $0.3 million in non-interest income.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended March 31, 2026, increased $0.3 million, or 1.05%, to $28.2 million compared to $27.9 million for the three months ended December 31, 2025 and increased $6.0 million, or 27.13%, compared to $22.2 million for the three months ended March 31, 2025.

The $0.3 million increase in net interest income from the three months ended December 31, 2025 was attributable to decreases of $0.5 million in total interest expense and $0.2 million in total interest and dividend income. The $6.0 million increase in net interest income from the three months ended March 31, 2025 was attributable to an increase of $4.7 million in total interest and dividend income and a decrease of $1.4 million in total interest expense.

Net interest margin was 3.61% for the three months ended March 31, 2026 compared to 3.57% for the prior quarter, an increase of 4bps and 2.98% for the same period last year, an increase of 63bps.

Non-interest Income

Non-interest income for the three months ended March 31, 2026, was $2.0 million, a decrease of $1.4 million, or 41.30%, compared to $3.5 million for the three months ended December 31, 2025, a decrease of $0.3 million, or 14.24%, compared to the three months ended March 31, 2025.

The $1.4 million decrease in non-interest income from the three months ended December 31, 2025 was largely attributable to a decrease of $0.5 million in other non-interest income, grant income of $0.4 million which had been recognized in the prior quarter and a decrease of $0.4 million in late and prepayment charges.

The $0.3 million decrease in non-interest income from the three months ended March 31, 2025 was largely attributable to a decrease of $0.4 million in income on sale of SBA loans.

Non-interest Expense

Non-interest expense for the three months ended March 31, 2026 was $17.2 million, an increase of $0.6 million, or 3.64%, compared to $16.6 million for the three months ended December 31, 2025 and an increase of $0.4 million, or 2.08%, compared to $16.9 million for the three months ended March 31, 2025.

The $0.6 million increase in non-interest expense from the three months ended December 31, 2025 was mainly attributable to increases of $0.6 million in compensation and benefits, $0.3 million in federal deposit insurance and regulatory assessment and $0.1 million in marketing and promotional expenses, partially offset by a decrease of $0.4 million in occupancy and equipment.

The $0.4 million increase in non-interest expense from the three months ended March 31, 2025 was mainly attributable to increases of $0.8 million in compensation and benefit and $0.1 million in marketing and promotional expenses, partially offset by decreases of $0.3 million in direct loan expenses, $0.2 million in occupancy and equipment and $0.2 million in other operating expenses.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $23.6 million at March 31, 2026 compared to $30.2 million at December 31, 2025 and $32.0 million at March 31, 2025.

During the three months ended March 31, 2026, a credit loss provision of $1.7 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. During the three months ended December 31, 2025, a credit loss provision of $1.1 million on loans was recorded, consisting of $1.5 million charged on the funded portion and $0.4 million benefit 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 on loans and a benefit of $1.0 million on the unfunded portion on loans.

Balance Sheet Summary

Total assets increased $76.8 million, or 2.38%, to $3.30 billion as of March 31, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $99.4 million in net loans receivable, $2.0 million in other assets, $1.4 million in accrued interest receivable and $0.2 million in deferred tax assets, partially offset by decreases of $9.5 million in held-to-maturity securities, $8.9 million in cash and cash equivalents, $5.0 million in available-for-sale securities, $1.3 million in mortgage loans held for sale, $1.1 million in Federal Home Loan Bank of New York stock and $0.5 million in premises and equipment, net.

Total liabilities increased $67.0 million, or 2.50%, to $2.75 billion as of March 31, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $87.2 million in deposits, $4.2 million in other liabilities and $0.6 million in accrued interest payable, partially offset by a decrease of $25.0 million in borrowings.

Total stockholders' equity increased $9.8 million, or 1.81%, to $551.4 million as of March 31, 2026, from $541.5 million as of December 31, 2025. The $9.8 million increase in stockholders' equity was largely attributable to $8.6 million in net income, $0.6 million impact to additional paid in capital as a result of share-based compensation, $0.6 million from release of ESOP shares and $0.2 million from exercise of stock options and $0.1 million in other comprehensive income, offset by $0.3 million related to the dividend paid on preferred shares during the quarter ended March 31, 2026.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.'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. N.A. 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, Federal Home Loan Bank stock and Federal Reserve 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, N.A. operates, including changes that adversely affect borrowers' ability to service and repay Ponce Bank, N.A.'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 global economy, including negative changes that may arise from armed conflict and geopolitical instability; 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, N.A.'s market area; Ponce Bank, N.A.'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
	March 31,			December 31,			September 30,			June 30,			March 31,
	2026			2025			2025			2025			2025
ASSETS
Cash and due from banks:
Cash	$	27,429		$	28,511		$	29,296		$	35,767		$	32,113
Interest-bearing deposits		89,817			97,643			117,283			90,872			97,780
Total cash and cash equivalents		117,246			126,154			146,579			126,639			129,893
Available-for-sale securities, at fair value		87,150			92,196			94,822			96,562			103,570
Held-to-maturity securities, at amortized cost		263,514			272,982			285,125			336,879			358,024
Placement with banks		249			249			249			249			249
Mortgage loans held for sale, at fair value		2,127			3,388			5,794			5,703			8,567
Loans receivable, net		2,698,649			2,599,258			2,490,046			2,458,712			2,370,931
Accrued interest receivable		19,274			17,905			18,903			19,126			19,008
Premises and equipment, net		15,159			15,638			16,129			16,067			16,417
Right of use assets		27,633			27,583			28,295			28,806			29,496
Federal Home Loan Bank of New York stock (FHLBNY), at cost		28,180			29,309			25,945			26,620			25,807
Federal Reserve Bank of New York stock (FRBNY), at cost		10,706			10,698			—			—			—
Deferred tax assets		11,729			11,501			12,402			12,143			11,629
Other assets		19,141			17,109			32,790			26,363			16,245
Total assets	$	3,300,757		$	3,223,970		$	3,157,079		$	3,153,869		$	3,089,836
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	2,133,795		$	2,046,635		$	2,063,081		$	2,053,151		$	2,017,848
Borrowings		571,100			596,100			521,100			536,100			521,100
Operating lease liabilities		29,429			29,353			30,028			30,501			31,126
Accrued interest payable		4,338			3,788			4,372			4,161			4,628
Other liabilities		10,732			6,545			8,663			8,868			1,248
Total liabilities		2,749,394			2,682,421			2,627,244			2,632,781			2,575,950
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		(5,738	)		(6,164	)		(7,270	)		(7,404	)		(7,641	)
Additional paid-in-capital		209,219			208,604			208,909			208,275			207,888
Retained earnings		143,674			135,332			125,477			119,250			113,432
Accumulated other comprehensive loss		(10,680	)		(10,820	)		(11,586	)		(13,047	)		(13,515	)
Unearned compensation ─ ESOP		(10,361	)		(10,652	)		(10,944	)		(11,235	)		(11,527	)
Total stockholders' equity		551,363			541,549			529,835			521,088			513,886
Total liabilities and stockholders' equity	$	3,300,757		$	3,223,970		$	3,157,079		$	3,153,869		$	3,089,836

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Operations (Dollars in thousands, except per share data)
	Three Months Ended
	March 31,		December 31,		September 30,			June 30,		March 31,
	2026		2025		2025			2025		2025
Interest and dividend income:
Interest on loans receivable	$	43,982	$	43,599	$	41,486		$	40,291	$	37,136
Interest on deposits due from banks		770		1,209		978			807		1,668
Interest and dividend on securities and FHLBNY stock		3,910		4,013		4,383			4,762		5,193
Total interest and dividend income		48,662		48,821		46,847			45,860		43,997
Interest expense:
Interest on certificates of deposit		6,415		6,706		6,553			7,382		7,754
Interest on other deposits		8,630		9,106		9,996			9,058		8,554
Interest on borrowings		5,391		5,075		5,050			4,994		5,486
Total interest expense		20,436		20,887		21,599			21,434		21,794
Net interest income		28,226		27,934		25,248			24,426		22,203
Provision (benefit) for credit losses		1,656		1,078		1,364			1,626		(285	)
Net interest income after provision (benefit) for credit losses		26,570		26,856		23,884			22,800		22,488
Non-interest income:
Service charges and fees		539		542		539			511		525
Brokerage commissions		—		23		8			—		4
Late and prepayment charges		726		1,173		385			530		697
Income on sale of mortgage loans		120		139		166			169		148
Income on sale of SBA loans		—		—		—			—		404
Grant income		—		428		429			428		—
Other		657		1,174		(35	)		422		603
Total non-interest income		2,042		3,479		1,492			2,060		2,381
Non-interest expense:
Compensation and benefits		8,663		8,113		7,868			7,627		7,780
Occupancy and equipment		3,672		4,033		3,934			3,907		3,913
Data processing expenses		1,219		1,223		1,296			1,188		1,152
Direct loan expenses		121		116		155			241		388
Insurance and surety bond premiums		333		324		318			297		315
Office supplies, telephone and postage		193		186		170			174		170
Professional fees		1,346		1,392		1,409			1,367		1,364
Marketing and promotional expenses		228		94		184			266		83
Federal deposit insurance and regulatory assessment		409		97		266			546		461
Other operating expenses		1,056		1,056		1,018			1,256		1,262
Total non-interest expense		17,240		16,634		16,618			16,869		16,888
Income before income taxes		11,372		13,701		8,758			7,991		7,981
Provision for income taxes		2,749		3,565		2,250			1,891		2,022
Net income	$	8,623	$	10,136	$	6,508		$	6,100	$	5,959
Dividends on preferred shares		281		281		281			282		281
Net income available to common stockholders	$	8,342	$	9,855	$	6,227		$	5,818	$	5,678
Earnings per common share:
Basic	$	0.36	$	0.43	$	0.27		$	0.26	$	0.25
Diluted	$	0.36	$	0.42	$	0.27		$	0.25	$	0.25
Weighted average common shares outstanding:
Basic		22,988,317		22,837,044		22,766,195			22,716,615		22,662,916
Diluted		23,331,314		23,263,708		23,135,448			22,947,769		22,876,740

Ponce Financial Group, Inc. and Subsidiaries Consolidated Statements of Operations (Dollars in thousands, except per share data)

	For the Three Months Ended March 31,
	2026		2025			Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	43,982	$	37,136		$	6,846			18.43	%
Interest on deposits due from banks		770		1,668			(898	)		(53.84	%)
Interest and dividend on securities and FHLBNY stock		3,910		5,193			(1,283	)		(24.71	%)
Total interest and dividend income		48,662		43,997			4,665			10.60	%
Interest expense:
Interest on certificates of deposit		6,415		7,754			(1,339	)		(17.27	%)
Interest on other deposits		8,630		8,554			76			0.89	%
Interest on borrowings		5,391		5,486			(95	)		(1.73	%)
Total interest expense		20,436		21,794			(1,358	)		(6.23	%)
Net interest income		28,226		22,203			6,023			27.13	%
Provision (benefit) for credit losses		1,656		(285	)		1,941			(681.05	%)
Net interest income after provision (benefit) for credit losses		26,570		22,488			4,082			18.15	%
Non-interest income:
Service charges and fees		539		525			14			2.67	%
Brokerage commissions		—		4			(4	)		(100.00	%)
Late and prepayment charges		726		697			29			4.16	%
Income on sale of mortgage loans		120		148			(28	)		(18.92	%)
Income on sale of SBA loans		—		404			(404	)		(100.00	%)
Other		657		603			54			8.96	%
Total non-interest income		2,042		2,381			(339	)		(14.24	%)
Non-interest expense:
Compensation and benefits		8,663		7,780			883			11.35	%
Occupancy and equipment		3,672		3,913			(241	)		(6.16	%)
Data processing expenses		1,219		1,152			67			5.82	%
Direct loan expenses		121		388			(267	)		(68.81	%)
Insurance and surety bond premiums		333		315			18			5.71	%
Office supplies, telephone and postage		193		170			23			13.53	%
Professional fees		1,346		1,364			(18	)		(1.32	%)
Marketing and promotional expenses		228		83			145			174.70	%
Federal deposit insurance and regulatory assessments		409		461			(52	)		(11.28	%)
Other operating expenses		1,056		1,262			(206	)		(16.32	%)
Total non-interest expense		17,240		16,888			352			2.08	%
Income before income taxes		11,372		7,981			3,391			42.49	%
Provision for income taxes		2,749		2,022			727			35.95	%
Net income	$	8,623	$	5,959		$	2,664			44.71	%
Dividends on preferred shares		281		281			—			0.00	%
Net income available to common stockholders	$	8,342	$	5,678		$	2,664			46.92	%
Earnings per common share:
Basic	$	0.36	$	0.25		$	0.11			44.00	%
Diluted	$	0.36	$	0.25		$	0.11			44.00	%
Weighted average common shares outstanding:
Basic		22,988,317		22,662,916			325,401			1.44	%
Diluted		23,331,314		22,876,740			454,574			1.99	%

Ponce Financial Group, Inc. and Subsidiaries Loans Receivable excluding Mortgage Loans Held for Sale

	As of
	March 31,						December 31,						September 30,						June 30,						March 31,
	2026						2025						2025						2025						2025
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential	$	431,377			15.82	%	$	434,374			16.54	%	$	444,602			17.67	%	$	452,350			18.21	%	$	463,542			19.37	%
Multifamily residential		915,333			33.58	%		756,542			28.83	%		688,574			27.39	%		693,670			27.96	%		675,541			28.24	%
Nonresidential properties		534,256			19.60	%		526,210			20.05	%		436,175			17.35	%		404,512			16.30	%		390,681			16.33	%
Construction and land		763,990			28.03	%		854,096			32.54	%		886,369			35.25	%		883,462			35.59	%		815,425			34.08	%
Total mortgage loans		2,644,956			97.03	%		2,571,222			97.96	%		2,455,720			97.66	%		2,433,994			98.06	%		2,345,189			98.02	%
Non-mortgage loans:
Business loans		80,366			2.95	%		53,063			2.02	%		58,012			2.31	%		47,372			1.91	%		46,329			1.94	%
Consumer loans		596			0.02	%		625			0.02	%		727			0.03	%		840			0.03	%		997			0.04	%
Total non-mortgage loans		80,962			2.97	%		53,688			2.04	%		58,739			2.34	%		48,212			1.94	%		47,326			1.98	%
Total loans, gross		2,725,918			100.00	%		2,624,910			100.00	%		2,514,459			100.00	%		2,482,206			100.00	%		2,392,515			100.00	%
Net deferred loan origination costs		(1,031	)					(203	)					351						606						1,390
Allowance for credit losses on loans		(26,238	)					(25,449	)					(24,764	)					(24,100	)					(22,974	)
Loans, net	$	2,698,649					$	2,599,258					$	2,490,046					$	2,458,712					$	2,370,931

Ponce Financial Group, Inc. and Subsidiaries Allowance for Credit Losses on Loans

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2026			2025			2025			2025			2025
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	25,449		$	24,764		$	24,100		$	22,974		$	22,502
Provision for credit losses on loans		1,293			1,526			864			1,348			731
Charge-offs:
Mortgage loans:
1-4 family residential		—			(32	)		—			—			(38	)
Non-mortgage loans:
Business		(504	)		(801	)		(200	)		(222	)		(222	)
Consumer		—			(44	)		—			—			(3	)
Total charge-offs		(504	)		(877	)		(200	)		(222	)		(263	)
Recoveries:
Mortgage loans:
1-4 family residential		—			1			—			—			—
Non-mortgage loans:
Business		—			35			—			—			4
Consumer		—			—			—			—			—
Total recoveries		—			36			—			—			4
Net (charge-offs) recoveries		(504	)		(841	)		(200	)		(222	)		(259	)
Allowance for credit losses on loans at end of the period	$	26,238		$	25,449		$	24,764		$	24,100		$	22,974

Ponce Financial Group, Inc. and Subsidiaries Deposits
	As of
	March 31,					December 31,					September 30,					June 30,					March 31,
	2026					2025					2025					2025					2025
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand	$	241,012		11.29	%	$	208,250		10.18	%	$	192,595		9.34	%	$	197,671		9.63	%	$	212,139		10.51	%
Interest-bearing deposits:
NOW/IOLA accounts		78,192		3.66	%		84,012		4.10	%		75,051		3.64	%		63,626		3.10	%		74,430		3.69	%
Money market accounts		811,982		38.05	%		779,532		38.09	%		821,844		39.84	%		790,939		38.52	%		692,753		34.33	%
Reciprocal deposits		162,926		7.64	%		152,630		7.46	%		154,548		7.49	%		136,693		6.66	%		141,838		7.03	%
Savings accounts ⁽¹⁾		118,373		5.55	%		117,708		5.75	%		117,401		5.69	%		113,701		5.53	%		119,023		5.90	%
Total NOW, money market, reciprocal and savings accounts		1,171,473		54.90	%		1,133,882		55.40	%		1,168,844		56.66	%		1,104,959		53.81	%		1,028,044		50.95	%
Certificates of deposit of $250K or more		258,093		12.10	%		202,500		9.89	%		209,819		10.17	%		220,671		10.75	%		219,721		10.89	%
Brokered certificates of deposit ⁽²⁾		54,553		2.56	%		67,942		3.32	%		67,952		3.29	%		69,531		3.39	%		84,531		4.19	%
Listing service deposits ⁽²⁾		1,243		0.06	%		4,150		0.20	%		4,150		0.20	%		6,140		0.30	%		6,140		0.30	%
All other certificates of deposit less than $250K		407,421		19.09	%		429,911		21.01	%		419,721		20.34	%		454,179		22.12	%		467,273		23.16	%
Total certificates of deposit		721,310		33.81	%		704,503		34.42	%		701,642		34.00	%		750,521		36.56	%		777,665		38.54	%
Total interest-bearing deposits		1,892,783		88.71	%		1,838,385		89.82	%		1,870,486		90.66	%		1,855,480		90.37	%		1,805,709		89.49	%
Total deposits	$	2,133,795		100.00	%	$	2,046,635		100.00	%	$	2,063,081		100.00	%	$	2,053,151		100.00	%	$	2,017,848		100.00	%

(1) As of June 30, 2025 and March 31, 2025, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million and $12.9 million, respectively, were reclassified to Deposits.

(2) There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.

Ponce Financial Group, Inc. and Subsidiaries Nonperforming Assets

	As of
	March 31,			December 31,			September 30,			June 30,			March 31,
	2026			2025			2025			2025			2025
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential	$	3,158		$	4,427		$	3,176		$	1,859		$	2,475
Multifamily residential		9,228			13,112			14,202			11,703			9,788
Nonresidential properties		—			—			—			405			—
Construction and land		7,061			8,247			8,907			8,907			14,159
Non-mortgage loans:
Business		427			667			880			276			170
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) ⁽¹⁾	$	19,874		$	26,453		$	27,165		$	23,150		$	26,592

Non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential		477			410			698			708			710
Total non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾		477			410			698			708			710
Total non-performing assets ⁽²⁾	$	20,351		$	26,863		$	27,863		$	23,858		$	27,302

Accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential		2,481			2,574			3,725			3,791			3,830
Multifamily residential		—			—			—			—			—
Nonresidential properties		613			621			629			655			644
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		185			190			196			203			209
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	3,279		$	3,385		$	4,550		$	4,649		$	4,683
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	23,630		$	30,248		$	32,413		$	28,507		$	31,985
Total non-performing assets to total assets		0.62	%		0.83	%		0.88	%		0.76	%		0.87	%

(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 March 31,
	2026							2025
	Average							Average
	Outstanding				Average			Outstanding				Average
	Balance		Interest		Yield/Rate ⁽¹⁾			Balance		Interest		Yield/Rate ⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans⁽²⁾	$	2,680,018	$	43,982		6.66	%	$	2,369,433	$	37,136		6.36	%
Securities ⁽³⁾		360,452		3,248		3.65	%		467,560		4,521		3.92	%
Other ⁽⁴⁾		129,585		1,432		4.48	%		186,021		2,340		5.10	%
Total interest-earning assets		3,170,055		48,662		6.23	%		3,023,014		43,997		5.90	%
Non-interest-earning assets		93,219							109,166
Total assets	$	3,263,274						$	3,132,180
Interest-bearing liabilities:
NOW/IOLA	$	77,833	$	134		0.70	%	$	72,354	$	115		0.64	%
Money market		949,007		8,468		3.62	%		827,948		8,411		4.12	%
Savings ⁽⁵⁾		120,205		28		0.09	%		117,616		28		0.10	%
Certificates of deposit		718,301		6,415		3.62	%		794,270		7,754		3.96	%
Total deposits		1,865,346		15,045		3.27	%		1,812,188		16,308		3.65	%
Borrowings		584,100		5,391		3.74	%		568,601		5,486		3.91	%
Total interest-bearing liabilities		2,449,446		20,436		3.38	%		2,380,789		21,794		3.71	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		221,056		—					196,627		—
Other non-interest-bearing liabilities		44,038		—					43,915		—
Total non-interest-bearing liabilities		265,094		—					240,542		—
Total liabilities		2,714,540		20,436					2,621,331		21,794
Total equity		548,735							510,849
Total liabilities and total equity	$	3,263,275				3.38	%	$	3,132,180				3.71	%
Net interest income			$	28,226						$	22,203
Net interest rate spread⁽⁶⁾						2.85	%						2.19	%
Net interest-earning assets ⁽⁷⁾	$	720,609						$	642,225
Net interest margin ⁽⁸⁾						3.61	%						2.98	%
Average interest-earning assets to
interest-bearing liabilities						129.42	%						126.98	%

(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)   For the three months ended March 31, 2025, advance payments by borrowers for taxes and insurance in the amounts of $12.4 million, were reclassified to savings.

(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
	March 31,		December 31,		September 30,		June 30,		March 31,
	2026		2025		2025		2025		2025
Other Data
Common shares issued		24,886,711		24,886,711		24,886,711		24,886,711		24,886,711
Less treasury shares		698,810		750,785		885,586		901,911		920,520
Common shares outstanding at end of period		24,187,901		24,135,926		24,001,125		23,984,800		23,966,191

Book value per common share	$	13.49	$	13.12	$	12.70	$	12.34	$	12.05
Tangible book value per common share ⁽¹⁾	$	13.49	$	13.12	$	12.70	$	12.34	$	12.05

(1)

Tangible book value per common share is a non-GAAP financial measure and is calculated by dividing tangible common equity by common shares outstanding. Tangible common equity is defined as total shareholders' equity less goodwill and other intangible assets, net of applicable deferred taxes. The Company believes that tangible book value per common share is a useful measure for investors, regulators, and analysts because it reflects the Company's capital position excluding the impact of goodwill and other intangible assets, which may not be realizable in a liquidation scenario. This measure is commonly used in the banking industry to assess financial condition and capital adequacy. Tangible book value per common share should not be considered a substitute for book value per common share, which is calculated in accordance with GAAP, and the Company's definition of tangible book value per common share may differ from similarly titled measures used by other companies. During the periods presented, the Company did not make any adjustments for goodwill and other intangible assets, so tangible book value per common share is equal to the book value per common share as calculated in accordance with GAAP.

Contact:

Sergio Vaccaro

Sergio.vaccaro@poncebank.net

718-931-9000

Ponce Financial Group, Inc. Reports First Quarter 2026 Results