Ponce Financial (PDLB) - 2024 Q4 - Annual Results

Financial Performance - Net income available to common stockholders for Q4 2024 was $2.7 million, or $0.12 per diluted share, compared to $2.2 million, or $0.10 per diluted share in Q3 2024, and $0.5 million, or $0.02 per diluted share in Q4 2023[4] - Total net income for the year ended December 31, 2024, was $11.0 million, compared to $3.4 million for the year ended December 31, 2023, reflecting a $7.6 million increase[11] - Net income for the year ended December 31, 2024, rose significantly by 227.33% to $10,972,000 from $3,352,000 in 2023[34] - Earnings per common share for the year ended December 31, 2024, increased by 206.67% to $0.46 from $0.15 in 2023[34] Income and Expenses - Net interest income for Q4 2024 was $20.7 million, an increase of $1.7 million, or 8.97%, from Q3 2024, and an increase of $3.5 million, or 20.54%, from Q4 2023[12] - Non-interest income for Q4 2024 was $2.1 million, an increase of $0.9 million, or 82.19%, compared to Q3 2024[16] - Non-interest income for the year ended December 31, 2024, was $7.2 million, a decrease of $3.0 million, or 29.44%, compared to $10.2 million for the year ended December 31, 2023[19] - Non-interest expense for the year ended December 31, 2024, decreased by $2.0 million, or 2.90%, to $66.7 million compared to $68.7 million for the year ended December 31, 2023[4] - Non-interest expense for the three months ended December 31, 2024, was $17.3 million, an increase of $0.9 million, or 5.82%, compared to $16.3 million for the three months ended September 30, 2024[20] Assets and Liabilities - Total assets increased by $289.2 million, or 10.51%, to $3.04 billion as of December 31, 2024, from $2.75 billion as of December 31, 2023[24] - Total liabilities increased by $275.1 million, or 12.18%, to $2.53 billion as of December 31, 2024, from $2.26 billion as of December 31, 2023[25] - Total stockholders' equity increased by $14.1 million, or 2.87%, to $505.5 million as of December 31, 2024, from $491.4 million as of December 31, 2023[26] - The increase in total assets was largely attributable to increases of $390.7 million in net loans receivable as of December 31, 2024[24] - The increase in total liabilities was largely attributable to an increase of $377.2 million in deposits as of December 31, 2024[25] Loans and Credit Quality - Net loans receivable grew by $390.7 million, or 20.61%, to $2.29 billion as of December 31, 2024, compared to $1.90 billion as of December 31, 2023[4] - Non-performing loans as a percentage of total gross loans increased to 1.18% in Q4 2024 from 0.89% in Q4 2023[35] - The allowance for credit losses on loans decreased to $22,502,000 as of December 31, 2024, down from $26,154,000 a year earlier[47] - The provision for credit losses for the three months ended December 31, 2024, was $1,090,000, compared to a benefit of $126,000 in the same period last year[47] - Total charge-offs for the three months ended December 31, 2024, were $2,697,000, with net charge-offs of $2,554,000[47] Deposits and Borrowings - Deposits increased by $377.2 million, or 25.02%, to $1.88 billion as of December 31, 2024, compared to $1.51 billion as of December 31, 2023[4] - Total deposits as of December 31, 2024, amounted to $1,884 million, reflecting a 2% increase from $1,870 million in the previous quarter[48] - Interest-bearing deposits totaled $1,686 million, which is a 2% increase from $1,586 million in the previous quarter[52] - The company has $596.1 million in total borrowings as of December 31, 2024, down from $684.4 million in the previous year[52] Operational Efficiency - The net interest margin for Q4 2024 was 2.80%, up from 2.65% in Q3 2024 and 2.66% in Q4 2023[14] - Efficiency ratio decreased to 75.63% in Q4 2024 from 96.83% in Q4 2023, indicating improved operational efficiency[35] - Return on average assets increased to 0.38% in Q4 2024 from 0.08% in Q4 2023[35] - Return on average equity rose to 2.30% in Q4 2024 compared to 0.42% in Q4 2023[35] Market and Future Outlook - The company anticipates that actual results may differ materially from forward-looking statements due to various risks and uncertainties[29]