Ponce Financial (PDLB) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the syste ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41255 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR Ponce Financial Group, Inc. (Exact Name of Registrant as Specified in its Charter) Maryland 87-1893965 (S ...

Ponce Financial (PDLB) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investor ...

Ponce Financial (PDLB) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 177.78%. A quarter ago, it was expected that this holding company of Ponce Bank would post earnings of $0.09 per share when it actually produced earnings of $0.12, delivering a surprise of 33.33%.Over the last four ...

Core Viewpoint - Ponce Financial Group, Inc. reported strong financial results for the first quarter of 2025, highlighting improvements in net interest margin, operating expenses, and non-interest income, amidst a challenging economic environment [3][6][8]. Financial Performance - Net income for Q1 2025 was $6.0 million, a significant increase from $2.9 million in Q4 2024 and $2.4 million in Q1 2024 [8][10]. - Net income available to common stockholders was $5.7 million, or $0.25 per diluted share, compared to $2.7 million, or $0.12 per diluted share in the previous quarter [6][10]. - Total net interest income increased by $1.5 million, or 7.11%, from the prior quarter and by $3.4 million, or 17.96%, from the same quarter last year [6][10]. Key Financial Ratios - Return on average assets improved to 0.77% in Q1 2025 from 0.38% in Q4 2024 [4]. - Return on common equity rose to 7.97% from 3.76% in the previous quarter [4]. - Net interest margin increased to 2.98%, up from 2.80% in Q4 2024 and 2.71% in Q1 2024 [4][12]. Non-Interest Income and Expenses - Non-interest income for Q1 2025 was $2.4 million, an increase of $0.3 million, or 13.54%, from the previous quarter and $0.7 million, or 39.48%, from the same quarter last year [13][14]. - Non-interest expenses decreased by $0.6 million, or 3.30%, from Q4 2024, totaling $16.9 million [16][17]. Asset Quality - Non-performing loans were $32.0 million as of March 31, 2025, slightly down from $32.1 million at the end of Q4 2024 [19]. - The allowance for credit losses on loans was 0.96% of total loans, a slight decrease from 0.97% in the previous quarter [4][19]. Balance Sheet Highlights - Total assets increased by $49.9 million, or 1.64%, to $3.09 billion as of March 31, 2025 [21]. - Total liabilities rose by $41.5 million, or 1.64%, to $2.58 billion [22]. - Total stockholders' equity increased by $8.4 million, or 1.66%, to $513.9 million [23].

Exhibit 99.1 Ponce Financial Group, Inc. Reports First Quarter 2025 Results NEW YORK, April 25, 2025 - Ponce Financial Group, Inc., (the "Company") (NASDAQ: PDLB), the holding company for Ponce Bank (the "Bank"), today announced results for the first quarter of 2025. First Quarter 2025 Highlights (Compared to Prior Periods): President and Chief Executive Officer's Comments Carlos P. Naudon, Ponce Financial Group, Inc.'s President and CEO, stated "We continued executing well our strategy of focusing on net i ...

Employment and Workforce - As of December 31, 2024, the company had 218 full-time equivalent employees, with no representation by labor unions[23]. - The bank's strategy includes attracting and retaining a high-performing workforce while refining its performance management system[26]. Loan Portfolio and Composition - The loan portfolio composition shows that as of December 31, 2024, mortgage loans accounted for 98.19% of total loans, with multifamily residential loans making up 29.04%[36]. - As of December 31, 2024, the total loan portfolio amounted to $2,308.0 million, with multifamily loans representing 29.0% at $670.2 million[46]. - One-to-four family investor-owned loans totaled $330.1 million, accounting for 14.3% of the total loan portfolio, with 88.4% secured by two-to-four family properties[39]. - Nonresidential loans reached $389.9 million, or 16.9% of the total loan portfolio, with 83.8% of this amount secured by loans exceeding $1.0 million[47]. - Construction and land loans totaled $733.7 million, representing 31.8% of the total loan portfolio, with $663.7 million allocated to multifamily residential projects[52]. Loan Origination and Underwriting - The bank's principal lending activity includes real estate-secured loans, with a focus on multifamily residential and nonresidential property loans[33]. - The bank's underwriting guidelines for loans include a maximum loan-to-value ratio of 70% for purchases and 65% for refinances, with a minimum debt service coverage ratio of 1.20x[40]. - The bank evaluates borrower qualifications based on credit history, profitability, and expertise, as well as the cash flow potential of the property securing the loan[51]. Loan Performance and Delinquency - Total nonaccrual loans reached $22.966 million in 2024, up from $12.726 million in 2023, representing an increase of 80%[78]. - The total non-performing assets to total assets ratio was 0.76% in 2024, compared to 0.46% in 2023, showing a significant rise in asset quality concerns[78]. - Delinquent loans totaled $22.966 million in 2024, which is an 80% increase from $12.726 million in 2023[75]. - The Bank's collection efforts for delinquent loans commence the day after the grace period, typically on the 17th of each month, with legal proceedings initiated after 90 days past due[73]. - The total non-performing loans to total gross loans ratio was 1.00% in 2024, up from 0.66% in 2023, indicating a deterioration in loan performance[78]. Credit Losses and Allowance - The Allowance for Credit Losses (ACL) at the end of 2024 was $22.5 million, down from $26.2 million at the end of 2023[96]. - The provision for loan losses for 2024 was $1.5 million, compared to $1.2 million in 2023[96]. - The ACL as a percentage of total loans decreased to 0.97% at December 31, 2024, from 1.36% at December 31, 2023[96]. - The total classified and special mention loans increased to $47.9 million at December 31, 2024, from $23.6 million at December 31, 2023[84]. Investment Portfolio - The investment portfolio included $29.2 million of FHLBNY stock as of December 31, 2024, an increase from $19.4 million in 2023[103]. - The investment portfolio consists of available-for-sale and held-to-maturity securities, including U.S. government and federal agency obligations[103]. - The company has a strategy focused on expanding its investment in mortgage-backed securities, particularly those backed by one-to-four family residential mortgages[109]. Deposits and Funding - Total deposits increased to $1,884,864 thousand in 2024, up from $1,507,620 thousand in 2023, reflecting a net increase of $377,244 thousand[122]. - The bank's primary source of funds remains deposits, supplemented by borrowings from FHLBNY and FRBNY, as well as other financial instruments[114]. - The bank's money market deposits accounted for 38.33% of total deposits, with an average balance of $654,512 thousand and a weighted average rate of 4.61%[119]. Regulatory Compliance and Capital - The Bank's capital exceeded all applicable regulatory requirements as of December 31, 2024, ensuring compliance with capital standards[144]. - The Bank was classified as "well capitalized" with a total risk-based capital ratio exceeding 10.0%, Tier 1 risk-based ratio exceeding 8.0%, common equity Tier 1 ratio exceeding 6.5%, and leverage ratio exceeding 5.0%[148]. - The Company is subject to capital adequacy standards, including leverage capital and risk-based capital requirements, as mandated by the Dodd-Frank Act[172]. Taxation and Financial Reporting - The Company is subject to federal and state income taxation, including New York State, Connecticut, New Jersey, Florida, and New York City taxes[182]. - The SEC adopted new Climate Rules requiring reporting companies to disclose climate-related risks and metrics in their financial statements[180].

Core Insights - Ponce Bank is celebrating the grand reopening of its Westchester Avenue branch, emphasizing its transformation into a community-centric hub that integrates modern design and technology to enhance customer service [1][3][4] Company Overview - Ponce Bank, founded in 1960, has grown to nearly $3 billion in assets and operates 13 branches and 3 loan production offices across the NYC Metro Area, Union City, New Jersey, and Coral Gables, Florida [7] Community Impact - The redesigned branch aims to serve as a critical community hub, attracting new depositors and business customers while reinforcing Ponce Bank's commitment to local economic development [3][4][6] - Local officials and community leaders highlight the importance of community banks like Ponce in providing access to financial services, supporting personal wealth, and fostering local business growth [4][6][7] Design and Features - The branch redesign includes open teller areas for consultative experiences, private spaces for sensitive conversations, and meeting areas equipped with teleconferencing technology [3][4] - The transformation process began in 2019 and was interrupted by the Covid pandemic, reflecting a long-term commitment to modernizing banking experiences [3] Leadership and Vision - Ponce Bank's leadership emphasizes the importance of community engagement and the bank's role in enhancing the customer experience through modernization and accessibility [4][5][6] - The bank's efforts are recognized by local government officials, who stress the significance of community banking in creating economic opportunities and supporting local residents [4][6][7]

Core Points - The Ponce De Leon Foundation awarded $610,000 to various nonprofits, bringing total grants since 2017 to over $2.4 million [1][2] Group 1: Grant Distribution - ACE Programs received $25,000 for services aimed at low-income individuals in Western Queens [2] - Act Now Foundation, Inc. was awarded $20,000 for the Alzheimer's Care Project [2] - Andromeda Community Initiative received $30,000 for Constructive Career [2] - Brooklyn Youth Sports Club Inc. was granted $30,000 for its Youth Sports Club Program [2] - Creative Art Works received $15,000 for Public Art Youth Employment Programs [3] - Daniel's Music Foundation was awarded $20,000 for Disability Awareness [3] - Education Through Music received $30,000 for its Music Education Program [3] - Girls Incorporated of New York City was granted $30,000 for Project Accelerate [3] - Hope Kids NY received $25,000 for the Ready, Set, Go to College Program [3] - Housing Partnership Development Corp was awarded $30,000 for Homeownership Counseling & Education [3] - I Challenge Myself Inc received $10,000 for Cycling Smartly in The Bronx program [3] - Jamaica Center for Arts & Learning Inc received $20,000 for JCAL Riddim Section [4] - Neighborhood Self Help by Older Persons Project Inc (SHOPP) was awarded $30,000 for Senior Community Assistance [4] - New Heights Youth Inc received $25,000 for College Bound Program [4] - New York Women's Chamber of Commerce was granted $30,000 for the ContractHer Program [4] - Palisades Emergency Residence PERC received $15,000 for Technology Access Program [4] - Part of the Solution (POTS) was awarded $30,000 for the ESOL Support Program [4] - Princeton Center for Leadership & Learning received $30,000 for Connecting Gardening, Science & Literacy [5] - Project Hope Charities, Inc. was awarded $30,000 for Food Pantry Project [5] - Regional Aid for Interim Needs Inc RAIN received $30,000 for Cucina Dolores Mobile Food Kitchen Project [5] - Spanish Speaking Elderly Council RAICES was granted $30,000 for Mindful Journey Program [5] - The HOPE Program Inc received $30,000 for Digital Literacy for Low-Income New Yorkers Program [5] - Union City Music Project, Inc received $15,000 for the 2025 After School Orchestral Music Education Program [6] - The Young People's Chorus of New York City was awarded $30,000 for YPC South Bronx Community Chorus Program [6] Group 2: Foundation Overview - The Ponce De Leon Foundation is a private 501(c)3 charitable corporation established in 2017 with initial funding from Ponce Bank [7] - The Foundation's mission is to improve the quality of life in communities served by Ponce Bank [7] - Ponce Bank became a fully public entity in January 2022, leading to additional donations to the Foundation [7] Group 3: Ponce Bank Information - Ponce Bank is a subsidiary of Ponce Financial Group, Inc., a NASDAQ company trading under the symbol PDLB [8] - The bank operates through 13 branch offices and 5 mortgage loan centers primarily in the New York City metropolitan area [8]

Core Viewpoint - Ponce Financial (PDLB) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in earnings estimates for Ponce Financial suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [4][9]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Ponce Financial is expected to earn $0.39 per share, reflecting a decrease of 15.2% from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Ponce Financial has increased by 5.4%, indicating a positive trend in earnings expectations [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6][8]. - The upgrade of Ponce Financial to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].