Ponce Financial (PDLB) - 2025 Q1 - Quarterly Results

Financial Performance - Net income available to common stockholders for Q1 2025 was $5.7 million, or $0.25 per diluted share, compared to $2.7 million, or $0.12 per diluted share in Q4 2024, and $2.4 million, or $0.11 per diluted share in Q1 2024[4] - Net income for the three months ended March 31, 2025, was $5,959,000, a significant increase of 146.85% compared to $2,414,000 in the same period last year[30] - Earnings per common share for the three months ended March 31, 2025, was $0.25, up 127.27% from $0.11 in the previous year[30] - Income before income taxes for the three months ended March 31, 2025, was $7,981,000, representing a 112.26% increase from $3,760,000 in the same period last year[30] Interest Income and Margin - Net interest income for Q1 2025 increased by $1.5 million, or 7.11%, to $22.2 million from $20.7 million in Q4 2024, and increased by $3.4 million, or 17.96%, from $18.8 million in Q1 2024[10] - Total interest and dividend income for the three months ended March 31, 2025, was $43,997,000, an increase of 10.92% compared to $39,666,000 for the same period in 2024[30] - Net interest income after the benefit for credit losses was $22,488,000, reflecting a 19.37% increase from $18,839,000 in the prior year[30] - The average yield on loans was 6.36% for the three months ended March 31, 2025, compared to 6.23% in the previous year[40] - Net interest margin for Q1 2025 was 2.98%, up 18 basis points from 2.80% in Q4 2024 and up 27 basis points from 2.71% in Q1 2024[12] - The net interest margin improved to 2.98% for the three months ended March 31, 2025, compared to 2.71% in the same period last year[40] Non-Interest Income and Expense - Non-interest income for Q1 2025 was $2.4 million, an increase of $0.3 million, or 13.54%, from $2.1 million in Q4 2024, and an increase of $0.7 million, or 39.48%, from $1.7 million in Q1 2024[13] - Total non-interest income increased to $2,381,000, a 39.48% rise from $1,707,000 in the same quarter of 2024[30] - Non-interest expense for Q1 2025 was $16.9 million, a decrease of $0.6 million, or 3.30%, from $17.5 million in Q4 2024, and an increase of $0.1 million, or 0.61%, from $16.8 million in Q1 2024[16] - Total non-interest expense was $16,888,000, a slight increase of 0.61% from $16,786,000 in the previous year[30] Assets and Liabilities - Total assets increased by $49.9 million, or 1.64%, to $3.09 billion as of March 31, 2025, from $3.04 billion as of December 31, 2024[21] - Total assets reached $3,132,180 thousand as of March 31, 2025, compared to $2,900,496 thousand in the previous year[40] - Total liabilities increased by $41.5 million, or 1.64%, to $2.58 billion as of March 31, 2025, from $2.53 billion as of December 31, 2024[22] - Total liabilities rose to $2,575.9 million as of March 31, 2025, compared to $2,534.4 million as of December 31, 2024[27] Loans and Deposits - Net loans receivable were $2.37 billion as of March 31, 2025, an increase of $84.3 million, or 3.69%, from $2.29 billion as of December 31, 2024[4] - Deposits were $2.00 billion as of March 31, 2025, an increase of $120.1 million, or 6.37%, from $1.88 billion as of December 31, 2024[4] - Total deposits reached $2,004 million as of March 31, 2025, with interest-bearing deposits comprising 89.4% of total deposits[35] - Business loans increased to $46,329 million, representing 1.94% of total loans as of March 31, 2025, compared to 1.77% in the previous quarter[32] - The total amount of mortgage loans was $2,345 million, accounting for 98.02% of total loans as of March 31, 2025[32] Credit Quality - Non-performing loans were $32.0 million at March 31, 2025, compared to $32.1 million at December 31, 2024, and $22.4 million at March 31, 2024[19] - The total non-performing assets to total assets ratio was 0.88% as of March 31, 2025, compared to 0.90% in the previous quarter[38] - The allowance for credit losses on loans increased to $22,974 million as of March 31, 2024, up from $22,502 million at the end of the previous period[34] - The provision for credit losses on loans for the three months ended March 31, 2024, was $731 million, indicating a proactive approach to managing credit risk[34] Equity - Total stockholders' equity increased by $8.4 million, or 1.66%, to $513.9 million as of March 31, 2025, from $505.5 million as of December 31, 2024[23] - The increase in stockholders' equity was primarily due to $6.0 million in net income and $1.8 million in other comprehensive income[23] - Book value per common share increased to $12.05 as of March 31, 2025, up from $11.71 in the previous quarter[43] Operational Insights - Ponce Bank operates as a Minority Depository Institution and focuses on community development financial services[24] - The company anticipates potential risks including changes in interest rates and competitive pressures from other financial institutions[25]