NEW YORK, July 27, 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 second quarter of 2026.

Second Quarter 2026 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $8.2 million, or $0.35 per diluted share for the three months ended June 30, 2026, as compared to net income available to common stockholders of $8.3 million, or $0.36 per diluted share for the three months ended March 31, 2026 and net income available to common stockholders of $5.8 million, or $0.25 per diluted share for the three months ended June 30, 2025. Total net income for the three months ended June 30, 2026 was $8.5 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended June 30, 2026.
Included in the $8.2 million of net income available to common stockholders for the second quarter of 2026 results is $51.7 million in total interest and dividend income and $1.5 million in non-interest income, offset by $21.6 million in interest expense, $18.1 million in non-interest expense, $2.8 million in provision for income taxes, $2.1 million in provision for credit losses and $0.3 million in dividends on preferred shares.
Net interest income of $30.1 million for the second quarter of 2026 increased $1.8 million, or 6.50%, from the prior quarter and increased $5.6 million, or 23.07%, from the same quarter last year.
Net interest margin was 3.66% for the second quarter of 2026, versus 3.61% for the prior quarter and 3.27% for the same quarter last year.

Six Months 2026 Highlights (Compared to 2025)

Net income available to common stockholders was $16.6 million, or $0.71 per diluted share for the six months ended June 30, 2026, as compared to net income available to common stockholders of $11.5 million, or $0.50 per diluted share for the six months ended June 30, 2025. The Company paid dividends of $0.6 million on its preferred stock during each of the six months ended June 30, 2026 and June 30, 2025.
Net interest income for the six months ended June 30, 2026 was $58.3 million, an increase of $11.7 million, or 25.0%, compared to $46.6 million for the six months ended June 30, 2025.
Non-interest income for six months ended June 30, 2026 was $3.6 million, a decrease of $0.9 million, or 19.6%, from $4.4 million for the six months ended June 30, 2025.
Non-interest expense for the six months ended June 30, 2026 was $35.4 million, an increase of $1.6 million, or 4.8%, compared to $33.8 million for the six months ended June 30, 2025.
Cash and equivalents were $140.0 million as of June 30, 2026, an increase of $13.9 million, or 10.98%, from $126.2 million as of December 31, 2025.
Securities totaled $338.4 million as of June 30, 2026, a decrease of $26.8 million, or 7.34%, 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 $2.88 billion as of June 30, 2026, an increase of $280.5 million, or 10.79%, from $2.60 billion as of December 31, 2025.
Deposits were $2.27 billion as of June 30, 2026, an increase of $225.2 million, or 11.00%, 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 "The consistent execution of our strategy continues to produce strong growth and financial results. Our diluted earnings per share of $0.71 year to date are up 42% versus the same period last year and our book value per share of $13.89 is up $1.55 or 13% over the same period. Net interest margin is up 5 basis points versus last quarter and 39 basis points versus the same quarter last year. 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 strong loan and deposit growth this quarter. We’ve filed our 2^nd quarter of 2026 QSR (Quarterly Supplemental Report) and believe we have met the necessary lending conditions to repurchase our Preferred Stock under the terms of the ECIP Purchase Option Agreement that we previously entered into with the U.S. Department of the Treasury in late 2024. We are excited about this milestone and the possibilities that the repurchase regulatory process will bring to the Company."

ECIP

The consummation of any such repurchase of our Preferred Stock is subject to the satisfaction of additional conditions, including satisfying certain eligibility criteria. Although the Company currently expects that it will satisfy all other necessary conditions, there can be no assurance if and when such repurchase will be consummated with Treasury.

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,
	2026			2026			2025			2025			2025
Performance Ratios:
Return on average assets⁽¹⁾		1.00	%		1.07	%		1.26	%		0.82	%		0.79	%
Return on common equity⁽¹⁾		9.81	%		10.37	%		12.50	%		8.10	%		7.88	%
Net interest margin^{(1) (2)}		3.66	%		3.61	%		3.57	%		3.30	%		3.27	%
Non-interest expense to average assets⁽¹⁾		2.14	%		2.14	%		2.06	%		2.10	%		2.18	%
Efficiency ratio⁽³⁾		57.41	%		56.96	%		52.95	%		62.15	%		63.69	%
Capital Ratios:
Total capital to risk-weighted assets (Ponce Financial Group)		20.00	%		21.23	%		23.00	%		24.08	%		22.65	%
Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group)		11.51	%		12.11	%		12.98	%		13.39	%		12.49	%
Tier 1 capital to total assets (Ponce Financial Group)		16.85	%		17.22	%		17.27	%		17.33	%		17.13	%
Total capital to risk-weighted assets (Bank only)		18.88	%		20.00	%		21.63	%		21.79	%		21.22	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		17.87	%		18.97	%		20.53	%		20.66	%		20.15	%
Tier 1 capital to total assets (Bank only)		15.81	%		16.09	%		16.12	%		16.08	%		15.99	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.95	%		0.96	%		0.97	%		0.98	%		0.97	%
Allowance for credit losses on loans as a percentage of nonperforming loans		116.91	%		128.93	%		94.74	%		88.88	%		101.01	%
Net (charge-offs) recoveries to average outstanding loans⁽¹⁾		(0.05	%)		(0.08	%)		(0.13	%)		(0.03	%)		(0.04	%)
Non-performing loans as a percentage of total assets		0.67	%		0.62	%		0.83	%		0.88	%		0.76	%
Other:
Number of offices		17			17			17			18			17
Number of full-time equivalent employees		229			218			216			209			206

(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 June 30, 2026 was $8.5 million compared to net income of $8.6 million for the three months ended March 31, 2026 and net income of $6.1 million for the three months ended June 30, 2025.

The $0.1 million decrease of net income for the three months ended June 30, 2026 compared to the three months ended March 31, 2026 was attributed mainly to an increase of $0.9 million non-interest expense, a decrease of $0.5 million in non-interest income and an increase of $0.5 million in provision for credit losses, offset by an increase of $1.8 million in net interest income.

The $2.4 million increase of net income for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was largely due to an increase of $5.6 million in net interest income, offset by increases of $1.3 million in non-interest expense, $0.9 million in provision for income taxes and $0.5 million in provision for credit losses and a decrease of $0.5 million in non-interest income recognized in the second quarter of 2025.

Net income for the six months ended June 30, 2026 was $17.1 million compared to net income of $12.1 million for the six months ended June 30, 2025. The $5.1 million increase in net income was attributed mainly to an increase of $11.7 million in net interest income, offset by increases of $2.5 million in provision for credit losses, $1.6 million in non-interest expense, $1.6 million in provision for income taxes and a decrease of $0.9 million in non-interest income.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended June 30, 2026, increased $1.8 million, or 6.50%, to $30.1 million compared to $28.2 million for the three months ended March 31, 2026 and increased $5.6 million, or 23.07%, compared to $24.4 million for the three months ended June 30, 2025.

The $1.8 million increase in net interest income from the three months ended March 31, 2026 was attributable to an increase of $3.0 million in total interest and dividend income, offset by an increase of $1.2 million in total interest expense. The $5.6 million increase in net interest income from the three months ended June 30, 2025 was attributable to an increase of $5.8 million in total interest and dividend income, offset by an increase of $0.2 million in total interest expense.

Net interest income for the six months ended June 30, 2026, increased $11.7 million, or 25.00%, to $58.3 million compared to $46.6 million for the six months ended June 30, 2025. The $11.7 million increase in net interest income from the six months ended June 30, 2025 was attributable to an increase of $10.5 million in total interest and dividend income and a decrease of $1.2 million in total interest expense.

Net interest margin was 3.66% for the three months ended June 30, 2026 compared to 3.61% for the prior quarter, an increase of 5bps and 3.27% for the same period last year, an increase of 39bps.

Net interest margin was 3.64% for the six months ended June 30, 2026 compared to 3.12% for the six months ended June 30, 2025, an increase of 52bps.

Non-interest Income

Non-interest income for the three months ended June 30, 2026, was $1.5 million, a decrease of $0.5 million, or 25.22%, compared to $2.0 million for the three months ended March 31, 2026, and a decrease of $0.5 million, or 25.87%, compared to the three months ended June 30, 2025.

The $0.5 million decrease in non-interest income from the three months ended March 31, 2026 was largely attributable to a decrease of $0.6 million in late and prepayment charges.

The $0.5 million decrease in non-interest income from the three months ended June 30, 2025 was largely attributable to decreases of $0.4 million in late and prepayment charges and $0.4 million in grant income recognized in the second quarter of 2025, offset by an increase of $0.2 million in other non-interest income.

Non-interest income for the six months ended June 30, 2026, was $3.6 million, a decrease of $0.9 million, or 19.64%, compared to $4.4 million for the six months ended June 30, 2025. The $0.9 million decrease in non-interest income from the six months ended June 30, 2025 was largely attributable to decreases of $0.4 million in late and prepayment charges, $0.4 million in income on sale of SBA loans and $0.4 million in grant income recognized in the second quarter of 2025, offset by increases on $0.3 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, 2026 was $18.1 million, an increase of $0.9 million, or 5.19%, compared to $17.2 million for the three months ended March 31, 2026 and an increase of $1.3 million, or 7.50%, compared to $16.9 million for the three months ended June 30, 2025.

The $0.9 million increase in non-interest expense from the three months ended March 31, 2026 was mainly attributable to increases of $0.4 million in compensation and benefits, $0.2 million in occupancy and equipment, $0.2 million in other non-interest expenses and $0.1 million in professional fees.

The $1.3 million increase in non-interest expense from the three months ended June 30, 2025 was mainly attributable to an increase of $1.4 million in compensation and benefits, partially offset by a decrease of $0.1 million in federal deposit insurance and regulatory assessment.

Non-interest expense for the six months ended June 30, 2026 was $35.4 million, an increase of $1.6 million, or 4.79%, compared to $33.8 million for the six months ended June 30, 2025. The $1.6 million increase in non-interest expense from the six months ended June 30, 2025 was mainly attributable to an increase of $2.3 million in compensation and benefits, partially offset by decreases of $0.3 million in direct loan expenses, $0.2 million in occupancy and equipment, $0.2 million in other non-interest expenses and $0.2 million in federal deposit insurance and regulatory assessment.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $26.8 million at June 30, 2026 compared to $23.6 million at March 31, 2026 and $28.5 million at June 30, 2025.

During the three months ended June 30, 2026, a credit loss provision of $2.1 million on loans was recorded, consisting of $1.7 million charged on the funded portion and $0.4 million charged on the unfunded portion on loans. 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 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 on loans and $0.3 million charged on the unfunded portion on loans.

During the six months ended June 30, 2026, a credit loss provision of $3.8 million on loans was recorded, consisting of $3.0 million charged on the funded portion and $0.8 million charged on the unfunded portion on loans. During the six months ended June 30, 2025, a credit loss provision of $1.3 million on loans was recorded, consisting of $2.0 million charged on the funded portion on loans and a $0.7 million benefit on the unfunded portion on loans.

Balance Sheet Summary

Total assets increased $270.7 million, or 8.40%, to $3.49 billion as of June 30, 2026 from $3.22 billion as of December 31, 2025. The increase in total assets is largely attributable to increases of $280.5 million in net loans receivable, $13.9 million in cash and cash equivalents, $2.0 million in accrued interest receivable, $1.5 million in deferred tax assets, $1.4 million in Federal Home Loan Bank of New York stock and $0.1 million in other assets, partially offset by decreases of $19.4 million in held-to-maturity securities, $7.4 million in available-for-sale securities, $1.0 million in premises and equipment, net, $0.5 million in right of use assets and $0.3 million in mortgage loans held for sale, at fair value.

Total liabilities increased $251.3 million, or 9.37%, to $2.93 billion as of June 30, 2026 from $2.68 billion as of December 31, 2025. The increase in total liabilities was largely attributable to increases of $225.2 million in deposits, $25.0 million in borrowings and $1.6 million in other liabilities, partially offset by a decrease of $0.5 million in operating lease liabilities.

Total stockholders’ equity increased $19.4 million, or 3.59%, to $561.0 million as of June 30, 2026, from $541.5 million as of December 31, 2025. The $19.4 million increase in stockholders’ equity was largely attributable to $17.1 million in net income, $0.2 million from exercise of stock options, $1.3 million impact to additional paid in capital as a result of share-based compensation, $1.2 million from release of ESOP shares, and $0.1 million in other comprehensive income, offset by $0.6 million related to the dividend paid on preferred shares during the six months ended June 30, 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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
ASSETS
Cash and due from banks:
Cash	$	25,567		$	27,429		$	28,511		$	29,296		$	35,767
Interest-bearing deposits		114,443			89,817			97,643			117,283			90,872
Total cash and cash equivalents		140,010			117,246			126,154			146,579			126,639
Available-for-sale securities, at fair value		84,774			87,150			92,196			94,822			96,562
Held-to-maturity securities, at amortized cost		253,616			263,514			272,982			285,125			336,879
Placement with banks		249			249			249			249			249
Mortgage loans held for sale, at fair value		3,050			2,127			3,388			5,794			5,703
Loans receivable, net		2,879,740			2,698,649			2,599,258			2,490,046			2,458,712
Accrued interest receivable		19,939			19,274			17,905			18,903			19,126
Premises and equipment, net		14,645			15,159			15,638			16,129			16,067
Right of use assets		27,055			27,633			27,583			28,295			28,806
Federal Home Loan Bank of New York stock (FHLBNY), at cost		30,689			28,180			29,309			25,945			26,620
Federal Reserve Bank of New York stock (FRBNY), at cost		10,714			10,706			10,698			—			—
Deferred tax assets		12,979			11,729			11,501			12,402			12,143
Other assets		17,251			19,141			17,109			32,790			26,363
Total assets	$	3,494,711		$	3,300,757		$	3,223,970		$	3,157,079		$	3,153,869
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits	$	2,271,809		$	2,133,795		$	2,046,635		$	2,063,081		$	2,053,151
Borrowings		621,100			571,100			596,100			521,100			536,100
Operating lease liabilities		28,874			29,429			29,353			30,028			30,501
Accrued interest payable		3,837			4,338			3,788			4,372			4,161
Other liabilities		8,121			10,732			6,545			8,663			8,868
Total liabilities		2,933,741			2,749,394			2,682,421			2,627,244			2,632,781
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	)		(5,738	)		(6,164	)		(7,270	)		(7,404	)
Additional paid-in-capital		210,339			209,219			208,604			208,909			208,275
Retained earnings		151,887			143,674			135,332			125,477			119,250
Accumulated other comprehensive loss		(10,698	)		(10,680	)		(10,820	)		(11,586	)		(13,047	)
Unearned compensation ─ ESOP		(10,069	)		(10,361	)		(10,652	)		(10,944	)		(11,235	)
Total stockholders' equity		560,970			551,363			541,549			529,835			521,088
Total liabilities and stockholders' equity	$	3,494,711		$	3,300,757		$	3,223,970		$	3,157,079		$	3,153,869

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,
	2026		2026		2025		2025			2025
Interest and dividend income:
Interest on loans receivable	$	46,835	$	43,982	$	43,599	$	41,486		$	40,291
Interest on deposits due from banks		954		770		1,209		978			807
Interest and dividend on securities and FHLBNY stock		3,863		3,910		4,013		4,383			4,762
Total interest and dividend income		51,652		48,662		48,821		46,847			45,860
Interest expense:
Interest on certificates of deposit		6,785		6,415		6,706		6,553			7,382
Interest on other deposits		9,544		8,630		9,106		9,996			9,058
Interest on borrowings		5,262		5,391		5,075		5,050			4,994
Total interest expense		21,591		20,436		20,887		21,599			21,434
Net interest income		30,061		28,226		27,934		25,248			24,426
Provision for credit losses		2,148		1,656		1,078		1,364			1,626
Net interest income after provision for credit losses		27,913		26,570		26,856		23,884			22,800
Non-interest income:
Service charges and fees		600		539		542		539			511
Brokerage commissions		—		—		23		8			—
Late and prepayment charges		138		726		1,173		385			530
Income on sale of mortgage loans		161		120		139		166			169
Grant income		—		—		428		429			428
Other		628		657		1,174		(35	)		422
Total non-interest income		1,527		2,042		3,479		1,492			2,060
Non-interest expense:
Compensation and benefits		9,070		8,663		8,113		7,868			7,627
Occupancy and equipment		3,901		3,672		4,033		3,934			3,907
Data processing expenses		1,195		1,219		1,223		1,296			1,188
Direct loan expenses		187		121		116		155			241
Insurance and surety bond premiums		332		333		324		318			297
Office supplies, telephone and postage		152		193		186		170			174
Professional fees		1,470		1,346		1,392		1,409			1,367
Marketing and promotional expenses		190		228		94		184			266
Federal deposit insurance and regulatory assessment		408		409		97		266			546
Other operating expenses		1,230		1,056		1,056		1,018			1,256
Total non-interest expense		18,135		17,240		16,634		16,618			16,869
Income before income taxes		11,305		11,372		13,701		8,758			7,991
Provision for income taxes		2,810		2,749		3,565		2,250			1,891
Net income	$	8,495	$	8,623	$	10,136	$	6,508		$	6,100
Dividends on preferred shares		282		281		281		281			282
Net income available to common stockholders	$	8,213	$	8,342	$	9,855	$	6,227		$	5,818
Earnings per common share:
Basic	$	0.36	$	0.36	$	0.43	$	0.27		$	0.26
Diluted	$	0.35	$	0.36	$	0.42	$	0.27		$	0.25
Weighted average common shares outstanding:
Basic		23,053,460		22,988,317		22,837,044		22,766,195			22,716,615
Diluted		23,508,153		23,331,314		23,263,708		23,135,448			22,947,769

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

	For the Six Months Ended June 30,
	2026		2025		Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	90,817	$	77,427	$	13,390			17.29	%
Interest on deposits due from banks		1,724		2,475		(751	)		(30.34	%)
Interest and dividend on securities and FHLBNY stock		7,773		9,955		(2,182	)		(21.92	%)
Total interest and dividend income		100,314		89,857		10,457			11.64	%
Interest expense:
Interest on certificates of deposit		13,200		15,136		(1,936	)		(12.79	%)
Interest on other deposits		18,174		17,612		562			3.19	%
Interest on borrowings		10,653		10,480		173			1.65	%
Total interest expense		42,027		43,228		(1,201	)		(2.78	%)
Net interest income		58,287		46,629		11,658			25.00	%
Provision for credit losses		3,804		1,341		2,463			183.67	%
Net interest income after provision for credit losses		54,483		45,288		9,195			20.30	%
Non-interest income:
Service charges and fees		1,139		1,036		103			9.94	%
Brokerage commissions		—		4		(4	)		(100.00	%)
Late and prepayment charges		864		1,227		(363	)		(29.58	%)
Income on sale of mortgage loans		281		317		(36	)		(11.36	%)
Income on sale of SBA loans		—		404		(404	)		(100.00	%)
Grant income		—		428		(428	)		(100.00	%)
Other		1,285		1,025		260			25.37	%
Total non-interest income		3,569		4,441		(872	)		(19.64	%)
Non-interest expense:
Compensation and benefits		17,733		15,407		2,326			15.10	%
Occupancy and equipment		7,573		7,820		(247	)		(3.16	%)
Data processing expenses		2,414		2,340		74			3.16	%
Direct loan expenses		308		629		(321	)		(51.03	%)
Insurance and surety bond premiums		665		612		53			8.66	%
Office supplies, telephone and postage		345		344		1			0.29	%
Professional fees		2,816		2,731		85			3.11	%
Marketing and promotional expenses		418		349		69			19.77	%
Federal deposit insurance and regulatory assessments		817		1,007		(190	)		(18.87	%)
Other operating expenses		2,286		2,518		(232	)		(9.21	%)
Total non-interest expense		35,375		33,757		1,618			4.79	%
Income before income taxes		22,677		15,972		6,705			41.98	%
Provision for income taxes		5,559		3,913		1,646			42.06	%
Net income	$	17,118	$	12,059	$	5,059			41.95	%
Dividends on preferred shares		563		563		—			0.00	%
Net income available to common stockholders	$	16,555	$	11,496	$	5,059			44.01	%
Earnings per common share:
Basic	$	0.72	$	0.51	$	0.21			41.18	%
Diluted	$	0.71	$	0.50	$	0.21			42.00	%
Weighted average common shares outstanding:
Basic		23,021,069		22,689,914		331,155			1.46	%
Diluted		23,419,915		22,920,841		499,074			2.18	%

Ponce Financial Group, Inc. and Subsidiaries

Loans Receivable excluding Mortgage Loans Held for Sale

	As of
	June 30,						March 31,						December 31,						September 30,						June 30,
	2026						2026						2025						2025						2025
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential	$	426,343			14.65	%	$	431,377			15.82	%	$	434,374			16.54	%	$	444,602			17.67	%	$	452,350			18.21	%
Multifamily residential		1,057,612			36.35	%		915,333			33.58	%		756,542			28.83	%		688,574			27.39	%		693,670			27.96	%
Nonresidential properties		535,521			18.41	%		534,256			19.60	%		526,210			20.05	%		436,175			17.35	%		404,512			16.30	%
Construction and land		817,151			28.08	%		763,990			28.03	%		854,096			32.54	%		886,369			35.25	%		883,462			35.59	%
Total mortgage loans		2,836,627			97.49	%		2,644,956			97.03	%		2,571,222			97.96	%		2,455,720			97.66	%		2,433,994			98.06	%
Non-mortgage loans:
Business loans		72,438			2.49	%		80,366			2.95	%		53,063			2.02	%		58,012			2.31	%		47,372			1.91	%
Consumer loans		577			0.02	%		596			0.02	%		625			0.02	%		727			0.03	%		840			0.03	%
Total non-mortgage loans		73,015			2.51	%		80,962			2.97	%		53,688			2.04	%		58,739			2.34	%		48,212			1.94	%
Total loans, gross		2,909,642			100.00	%		2,725,918			100.00	%		2,624,910			100.00	%		2,514,459			100.00	%		2,482,206			100.00	%
Net deferred loan origination (fees) costs		(2,348	)					(1,031	)					(203	)					351						606
Allowance for credit losses on loans		(27,554	)					(26,238	)					(25,449	)					(24,764	)					(24,100	)
Loans, net	$	2,879,740					$	2,698,649					$	2,599,258					$	2,490,046					$	2,458,712

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,
	2026			2026			2025			2025			2025
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	26,238		$	25,449		$	24,764		$	24,100		$	22,974
Provision for credit losses on loans		1,669			1,293			1,526			864			1,348
Charge-offs:
Mortgage loans:
1-4 family residential		—			—			(32	)		—			—
Non-mortgage loans:
Business		(354	)		(504	)		(801	)		(200	)		(222	)
Consumer		—			—			(44	)		—			—
Total charge-offs		(354	)		(504	)		(877	)		(200	)		(222	)
Recoveries:
Mortgage loans:
1-4 family residential		1			—			1			—			—
Non-mortgage loans:
Business		—			—			35			—			—
Total recoveries		1			—			36			—			—
Net (charge-offs) recoveries		(353	)		(504	)		(841	)		(200	)		(222	)
Allowance for credit losses on loans at end of the period	$	27,554		$	26,238		$	25,449		$	24,764		$	24,100

Ponce Financial Group, Inc. and Subsidiaries

Deposits

	As of
	June 30,					March 31,					December 31,					September 30,					June 30,
	2026					2026					2025					2025					2025
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand	$	251,919		11.10	%	$	241,012		11.29	%	$	208,250		10.18	%	$	192,595		9.34	%	$	197,671		9.63	%
Interest-bearing deposits:
NOW/IOLA accounts		71,987		3.17	%		78,192		3.66	%		84,012		4.10	%		75,051		3.64	%		63,626		3.10	%
Money market accounts ⁽¹⁾		929,002		40.89	%		811,982		38.05	%		779,532		38.09	%		821,844		39.84	%		790,939		38.52	%
Reciprocal deposits		164,883		7.26	%		162,926		7.64	%		152,630		7.46	%		154,548		7.49	%		136,693		6.66	%
Savings accounts ⁽²⁾		115,233		5.07	%		118,373		5.55	%		117,708		5.75	%		117,401		5.69	%		113,701		5.53	%
Total NOW, money market, reciprocal and savings accounts		1,281,105		56.39	%		1,171,473		54.90	%		1,133,882		55.40	%		1,168,844		56.66	%		1,104,959		53.81	%
Certificates of deposit of $250K or more		194,462		8.56	%		258,093		12.10	%		202,500		9.89	%		209,819		10.17	%		220,671		10.75	%
Brokered certificates of deposit ⁽³⁾		94,557		4.16	%		54,553		2.56	%		67,942		3.32	%		67,952		3.29	%		69,531		3.39	%
Listing service deposits ⁽³⁾		994		0.04	%		1,243		0.06	%		4,150		0.20	%		4,150		0.20	%		6,140		0.30	%
All other certificates of deposit less than $250K		448,772		19.75	%		407,421		19.09	%		429,911		21.01	%		419,721		20.34	%		454,179		22.12	%
Total certificates of deposit		738,785		32.51	%		721,310		33.81	%		704,503		34.42	%		701,642		34.00	%		750,521		36.56	%
Total interest-bearing deposits		2,019,890		88.90	%		1,892,783		88.71	%		1,838,385		89.82	%		1,870,486		90.66	%		1,855,480		90.37	%
Total deposits	$	2,271,809		100.00	%	$	2,133,795		100.00	%	$	2,046,635		100.00	%	$	2,063,081		100.00	%	$	2,053,151		100.00	%

(1) At June 30, 2026, there was $50.2 million in brokered deposits. At March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, there were $0.3 million each in brokered deposits.

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

(3) At June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025. there were no individual listing service deposits amounting to $250,000 or more. At June 30, 2025, there was $1.5 million in individual listing service deposits 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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential	$	5,843		$	3,158		$	4,427		$	3,176		$	1,859
Multifamily residential		12,133			9,228			13,112			14,202			11,703
Nonresidential properties		—			—			—			—			405
Construction and land		5,040			7,061			8,247			8,907			8,907
Non-mortgage loans:
Business		77			427			667			880			276
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) ⁽¹⁾	$	23,093		$	19,874		$	26,453		$	27,165		$	23,150

Non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential		475			477			410			698			708
Total non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾		475			477			410			698			708
Total non-performing assets⁽²⁾	$	23,568		$	20,351		$	26,863		$	27,863		$	23,858

Accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential		2,456			2,481			2,574			3,725			3,791
Multifamily residential		—			—			—			—			—
Nonresidential properties		618			613			621			629			655
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		175			185			190			196			203
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	3,249		$	3,279		$	3,385		$	4,550		$	4,649
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	26,817		$	23,630		$	30,248		$	32,413		$	28,507
Total non-performing assets to total assets		0.67	%		0.62	%		0.83	%		0.88	%		0.76	%

(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,
	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⁾	$	2,801,281	$	46,835	6.71	%	$	2,447,713	$	40,291	6.60	%
Securities ⁽³⁾		345,599		3,160	3.67	%		449,858		4,246	3.79	%
Other ⁽⁴⁾		146,919		1,657	4.52	%		102,252		1,323	5.19	%
Total interest-earning assets		3,293,799		51,652	6.29	%		2,999,823		45,860	6.13	%
Non-interest-earning assets		98,497						104,059
Total assets	$	3,392,296					$	3,103,882
Interest-bearing liabilities:
NOW/IOLA	$	75,589	$	118	0.63	%	$	68,155	$	100	0.59	%
Money market		1,028,044		9,398	3.67	%		864,688		8,930	4.14	%
Savings ⁽⁵⁾		120,801		28	0.09	%		119,177		28	0.10	%
Certificates of deposit		744,298		6,785	3.66	%		772,363		7,382	3.83	%
Total deposits		1,968,732		16,329	3.33	%		1,824,383		16,440	3.61	%
Borrowings		575,496		5,262	3.67	%		521,375		4,994	3.84	%
Total interest-bearing liabilities		2,544,228		21,591	3.40	%		2,345,758		21,434	3.66	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		244,483		—				203,349		—
Other non-interest-bearing liabilities		45,560		—				36,435		—
Total non-interest-bearing liabilities		290,043		—				239,784		—
Total liabilities		2,834,271		21,591				2,585,542		21,434
Total equity		558,025						518,340
Total liabilities and total equity	$	3,392,296			3.40	%	$	3,103,882			3.66	%
Net interest income			$	30,061					$	24,426
Net interest rate spread ⁽⁶⁾					2.89	%					2.47	%
Net interest-earning assets ⁽⁷⁾	$	749,571					$	654,065
Net interest margin⁽⁸⁾					3.66	%					3.27	%
Average interest-earning assets to interest-bearing liabilities					129.46	%					127.88	%

(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 June 30, 2025, Advance payments by borrowers for taxes and insurance in the amount of $14.9 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

Average Balance Sheets

	For the Six Months Ended June 30,
	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⁾	$	2,740,985	$	90,817		6.68	%	$	2,408,788	$	77,427		6.48	%
Securities ⁽³⁾		352,985		6,407		3.66	%		458,660		8,767		3.85	%
Other ⁽⁴⁾		138,299		3,090		4.51	%		143,905		3,663		5.13	%
Total interest-earning assets		3,232,269		100,314		6.26	%		3,011,353		89,857		6.02	%
Non-interest-earning assets		95,873							106,600
Total assets	$	3,328,142						$	3,117,953
Interest-bearing liabilities:
NOW/IOLA	$	76,705	$	252		0.66	%	$	70,243	$	215		0.62	%
Money market		988,744		17,866		3.64	%		846,420		17,341		4.13	%
Savings ⁽⁵⁾		120,505		56		0.09	%		118,400		56		0.10	%
Certificates of deposit		731,371		13,200		3.64	%		783,256		15,136		3.90	%
Total deposits		1,917,325		31,374		3.30	%		1,818,319		32,748		3.63	%
Borrowings		579,774		10,653		3.71	%		544,857		10,480		3.88	%
Total interest-bearing liabilities		2,497,099		42,027		3.39	%		2,363,176		43,228		3.69	%
Non-interest-bearing liabilities:
Non-interest-bearing demand		232,834		—					200,007		—
Other non-interest-bearing liabilities		44,804		—					40,155		—
Total non-interest-bearing liabilities		277,638		—					240,162		—
Total liabilities		2,774,737		42,027					2,603,338		43,228
Total equity		553,405							514,615
Total liabilities and total equity	$	3,328,142				3.39	%	$	3,117,953				3.69	%
Net interest income			$	58,287						$	46,629
Net interest rate spread⁽⁶⁾						2.87	%						2.33	%
Net interest-earning assets ⁽⁷⁾	$	735,170						$	648,177
Net interest margin ⁽⁸⁾						3.64	%						3.12	%
Average interest-earning assets to
interest-bearing liabilities						129.44	%						127.43	%

(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 FRBNY demand deposits.

(5) For the six months ended June 30, 2025, Advance payments by borrowers for taxes and insurance in the amount of $13.7 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
	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		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		698,810		750,785		885,586		901,911
Common shares outstanding at end of period		24,187,901		24,187,901		24,135,926		24,001,125		23,984,800

Book value per common share	$	13.89	$	13.49	$	13.12	$	12.70	$	12.34
Tangible book value per common share ⁽¹⁾	$	13.89	$	13.49	$	13.12	$	12.70	$	12.34

(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 J. Vaccaro

sergio.vaccaro@poncebank.net

718-931-9000