Ponce Financial (US:PDLB)2025-05-06 20:19PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements This section presents the unaudited consolidated financial statements for Q1 2025, covering financial condition, operations, comprehensive income, equity, and cash flows, with detailed notes Consolidated Statements of Financial Condition (Unaudited) This section provides the unaudited consolidated statements of financial condition as of March 31, 2025, and December 31, 2024 Consolidated Statements of Financial Condition (Unaudited) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Total assets | $3,089,836 | $3,039,938 | | Total liabilities | $2,575,950 | $2,534,438 | | Total stockholders' equity | $513,886 | $505,500 | - Total assets increased by $49.9 million, or 1.6%, from December 31, 2024, to March 31, 2025, primarily driven by an increase in loans receivable10151 - Total liabilities increased by $41.5 million, or 1.6%, mainly due to an increase in deposits10 - Total stockholders' equity increased by $8.4 million, or 1.7%, during the quarter10165 Consolidated Statements of Operations (Unaudited) This section presents the unaudited consolidated statements of operations for the three months ended March 31, 2025, and 2024 Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | :------------- | | Total interest and dividend income | $43,997 | $39,666 | +10.9% | | Total interest expense | $21,794 | $20,843 | +4.6% | | Net interest income | $22,203 | $18,823 | +18.0% | | Benefit for credit losses | $(285) | $(16) | +1681.3% | | Total non-interest income | $2,381 | $1,707 | +39.5% | | Total non-interest expense | $16,888 | $16,786 | +0.6% | | Net income | $5,959 | $2,414 | +146.9% | | Net income available to common stockholders | $5,678 | $2,414 | +135.2% | | Basic earnings per common share | $0.25 | $0.11 | +127.3% | | Diluted earnings per common share | $0.25 | $0.11 | +127.3% | - Net income available to common stockholders increased by $3.3 million, or 135.2%, year-over-year, primarily driven by higher net interest income and non-interest income, and a benefit for credit losses167 Consolidated Statements of Comprehensive Income (Unaudited) This section presents the unaudited consolidated statements of comprehensive income for the three months ended March 31, 2025, and 2024 Consolidated Statements of Comprehensive Income (Unaudited) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Net income | $5,959 | $2,414 | | Total other comprehensive income (loss), net of tax | $1,782 | $(941) | | Total comprehensive income | $7,741 | $1,473 | | Total comprehensive income available to common stockholders | $7,460 | $1,473 | - Total comprehensive income significantly increased to $7.7 million in Q1 2025 from $1.5 million in Q1 2024, largely due to a positive net change in unrealized gains on securities16 Consolidated Statements of Stockholders' Equity (Unaudited) This section presents the unaudited consolidated statements of stockholders' equity for the three months ended March 31, 2025 Consolidated Statements of Stockholders' Equity (Unaudited) | Metric | Balance, December 31, 2024 (in thousands) | Net income (in thousands) | Other comprehensive income, net of tax (in thousands) | Preferred Stock Dividend (in thousands) | Balance, March 31, 2025 (in thousands) | | :-------------------------------- | :-------------------------------------- | :------------------------ | :------------------------------------------ | :------------------------------------ | :------------------------------------- | | Total Stockholders' Equity | $505,500 | $5,959 | $1,782 | $(281) | $513,886 | - Stockholders' equity increased by $8.4 million from December 31, 2024, to March 31, 2025, driven by net income and other comprehensive income, partially offset by preferred stock dividends19165 Consolidated Statements of Cash Flows (Unaudited) This section presents the unaudited consolidated statements of cash flows for the three months ended March 31, 2025, and 2024 Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net cash provided by operating activities | $13,087 | $1,461 | | Net cash used in investing activities | $(67,835) | $(80,091) | | Net cash provided by financing activities | $44,802 | $74,164 | | Net decrease in cash and cash equivalents | $(9,946) | $(4,466) | | Cash and cash equivalents at end of period | $129,893 | $134,724 | - Net cash provided by operating activities significantly increased to $13.1 million in Q1 2025 from $1.5 million in Q1 202422213 - Net cash used in investing activities decreased to $67.8 million in Q1 2025 from $80.1 million in Q1 2024, primarily due to changes in loans and FHLBNY stock22213 - Net cash provided by financing activities decreased to $44.8 million in Q1 2025 from $74.2 million in Q1 2024, mainly due to net repayments from borrowings22213 Notes to Consolidated Financial Statements (Unaudited) This section provides detailed notes explaining the accounting policies, significant estimates, and specific financial instrument details for the unaudited consolidated financial statements Note 1. Nature of Business Ponce Financial Group, Inc. is the holding company for Ponce Bank, operating as one reportable segment, with financial statements prepared in accordance with GAAP - Ponce Financial Group, Inc. operates as a single operating and reportable segment, with its CEO acting as the Chief Operating Decision Maker27 - The Company is evaluating the impact of ASU 2024-03, 'Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40),' effective for annual periods beginning after December 15, 202629 Note 2. Preferred Stock The Company issued $225 million in Preferred Stock to the Treasury under the ECIP in June 2022, with dividends commencing in June 2024 at a 0.5% annual rate - Ponce Financial Group, Inc. issued $225 million in Preferred Stock to the Treasury under the ECIP on June 7, 2022, to provide investment capital for lending in low-income and underserved communities30 - Dividends on Preferred Stock began in June 2024, with $0.3 million paid for the three months ended March 31, 2025, at an