Ponce Financial (US:PDLB)2024-12-10 22:42Financial Performance - Net income available to common stockholders for Q3 2024 was $2.2 million, or $0.10 per diluted share, down from $3.1 million, or $0.14 per diluted share in Q2 2024[2]. - Total net income for the nine months ended September 30, 2024, was $8.0 million, compared to $2.8 million for the same period in 2023[12]. - Net income for September 2024 was $2,433,000, a decrease from $3,192,000 in June 2024, reflecting a decline of 23.8%[33]. - Net income surged by 183.66% to $8,039,000, compared to $2,834,000 in the same period last year[35]. - Basic earnings per common share for September 2024 was $0.10, down from $0.14 in June 2024, a decrease of 28.6%[33]. - Basic earnings per common share increased by 177.36% to $0.34, up from $0.12 in 2023[35]. Income and Expenses - Net interest income for Q3 2024 increased by $1.1 million, or 6.25%, to $19.0 million compared to Q2 2024, and increased by $2.5 million, or 15.00%, compared to Q3 2023[13]. - Non-interest income for Q3 2024 was $1.2 million, a decrease of 49.03% from $2.3 million in Q2 2024 and a decrease of 79.55% from $5.6 million in Q3 2023[17]. - Non-interest expense for Q3 2024 was $16.3 million, an increase of 1.03% from $16.1 million in Q2 2024 and a decrease of 5.79% from $17.3 million in Q3 2023[20]. - Non-interest income for the nine months ended September 30, 2024, was $5.1 million, a decrease of 42.76% compared to $8.9 million for the same period in 2023[19]. - Total non-interest expense for September 2024 was $16,314,000, slightly up from $16,147,000 in June 2024, reflecting an increase of 1.0%[33]. - Total non-interest expense decreased by 2.67% to $49,411,000, down from $50,766,000 in the previous year[35]. Assets and Liabilities - Total assets increased by $265.2 million, or 9.64%, to $3.02 billion as of September 30, 2024, from $2.75 billion as of December 31, 2023[24]. - Total liabilities increased by $252.1 million, or 11.16%, to $2.51 billion as of September 30, 2024, from $2.26 billion as of December 31, 2023[25]. - Total stockholders' equity increased by $13.2 million, or 2.69%, to $504.6 million as of September 30, 2024, from $491.4 million as of December 31, 2023[26]. - Total liabilities and stockholders' equity reached $3,015,969,000 in September 2024, compared to $2,842,007,000 in June 2024, indicating an increase of 6.1%[32]. - Total deposits increased to $1.870 billion as of September 30, 2024, compared to $1.606 billion as of December 31, 2023[45]. Loans and Credit Quality - Net loans receivable increased by $284.4 million, or 15.00%, to $2.18 billion as of September 30, 2024, from $1.90 billion as of December 31, 2023[3]. - The allowance for loan losses as a percentage of total loans was 1.09% as of September 30, 2024, down from 1.36% as of December 31, 2023[8]. - Non-performing loans as a percentage of total gross loans stood at 0.78%, compared to 0.89% in the previous year[37]. - The total non-performing loans to total gross loans ratio was 0.78% as of September 30, 2024, down from 0.89% in the previous quarter, indicating an improvement in asset quality[50]. - The allowance for credit losses on loans decreased to $23.966 million as of September 30, 2024, from $24.061 million at the beginning of the period[43]. Capital and Ratios - Total capital to risk-weighted assets was 21.61% as of September 30, 2024, down from 23.30% as of December 31, 2023[5]. - Tier 1 capital to risk-weighted assets (Bank only) was 20.45%, down from 23.85% in the previous year[37]. - Return on average assets was 0.33% for the quarter ended September 30, 2024, compared to 0.39% in the same quarter last year[37]. Securities and Investments - Total available-for-sale securities amounted to $127.12 million with gross unrealized losses of $16.12 million as of September 30, 2024[39]. - The total held-to-maturity securities were valued at $403.73 million, with an allowance for credit losses of $207,000 at the end of the period[39]. - The gross unrealized losses for available-for-sale securities increased to $(206,000) as of December 31, 2023[39]. Microloans - As of September 30, 2024, microloans receivable from Grain amounted to $23.932 million, with write-downs net of recoveries totaling $(15.287) million[41]. - The net receivable from borrowers for microloans as of September 30, 2024, was $463,000 after accounting for an allowance for credit losses of $2.570 million[41]. - The company signed a Perpetual Software License Agreement with Grain Technologies on November 1, 2023, to assume servicing of remaining microloans[42].