Ponce Financial (PDLB) - 2025 Q3 - Quarterly Results

Financial Performance - Net income available to common stockholders for Q3 2025 was $6.2 million, or $0.27 per diluted share, compared to $5.8 million, or $0.25 per diluted share in Q2 2025, and $2.2 million, or $0.10 per diluted share in Q3 2024[5] - Total net income for the nine months ended September 30, 2025, was $18.6 million, compared to $8.0 million for the same period in 2024[10] - Net income for the three months ended September 30, 2025, was $6,508,000, up from $2,433,000 in the same period of 2024, marking a significant increase of 168.5%[33] - For the nine months ended September 30, 2025, net income was $18,567,000, a 130.96% increase from $8,039,000 in the same period of 2024[35] - Basic earnings per common share for the nine months ended September 30, 2025, was $0.78, compared to $0.34 for the same period in 2024, representing a 129.41% increase[35] Interest Income and Margin - Net interest income for Q3 2025 was $25.2 million, an increase of $0.8 million, or 3.37% from Q2 2025, and an increase of $6.2 million, or 32.72% from Q3 2024[11] - Net interest margin for Q3 2025 was 3.30%, up from 3.27% in Q2 2025 and 2.65% in Q3 2024[14] - Total interest and dividend income for the three months ended September 30, 2025, was $46,847,000, an increase from $41,293,000 in the same period of 2024, representing a growth of 13.5%[33] - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $23,884,000, compared to $18,486,000 for the same period in 2024, reflecting a 29.4% increase[33] - The net interest margin improved to 3.30% for the three months ended September 30, 2025, compared to 2.65% for the same period in 2024[43] Non-Interest Income and Expense - Non-interest income for Q3 2025 was $1.5 million, a decrease of $0.6 million, or 27.57% from Q2 2025, but an increase of $0.3 million, or 29.63% from Q3 2024[15] - Non-interest expense for Q3 2025 was $16.6 million, a decrease of $0.3 million, or 1.49% from Q2 2025, remaining flat compared to Q3 2024[19] - Non-interest expense for the nine months ended September 30, 2025, was $50.4 million, an increase of $0.4 million, or 0.77%, compared to the same period in 2024[21] - Total non-interest income for the three months ended September 30, 2025, was $1,492,000, a decrease from $2,381,000 in the same period of 2024, reflecting a decline of 37.3%[33] Assets and Liabilities - Total assets increased by $117.1 million, or 3.85%, to $3.16 billion as of September 30, 2025, from $3.04 billion as of December 31, 2024[25] - Total liabilities increased by $92.8 million, or 3.66%, to $2.63 billion as of September 30, 2025, from $2.53 billion as of December 31, 2024[26] - Total stockholders' equity increased by $24.3 million, or 4.81%, to $529.8 million as of September 30, 2025, from $505.5 million as of December 31, 2024[27] - Total deposits increased to $2.06 billion as of September 30, 2025, up $167.9 million, or 8.86% from December 31, 2024[5] - Total deposits reached $2,063.0 million as of September 30, 2025, a slight increase of 0.1% from $2,053.1 million as of June 30, 2025[39] Loan Performance - Net loans receivable were $2.49 billion as of September 30, 2025, an increase of $203.4 million, or 8.90% from December 31, 2024[5] - The company recorded a credit loss provision of $1.4 million on loans during the three months ended September 30, 2025[23] - A credit loss provision of $2.7 million on loans was recorded for the nine months ended September 30, 2025, compared to a credit loss benefit of $0.2 million for the same period in 2024[24] - The allowance for credit losses on loans increased to $24,764 thousand as of September 30, 2025, up from $24,100 thousand at the end of June 2025, indicating a provision for credit losses of $864 thousand during the quarter[38] - Business loans amounted to $58,012 thousand as of September 30, 2025, representing a 22.5% increase from $47,372 thousand as of June 30, 2025[36] Non-Performing Assets - Total non-performing assets increased to $32.4 million at September 30, 2025, up from $28.5 million at June 30, 2025, and $22.0 million at September 30, 2024[22] - Total non-performing assets increased to $27,863 thousand as of September 30, 2025, up from $23,858 thousand in the previous quarter, representing a 12.5% increase[41] - Total non-accrual loans reached $27,165 thousand, compared to $23,150 thousand in the prior quarter, marking a 17.0% increase[41] - The total non-performing assets to total assets ratio was 0.88% as of September 30, 2025, up from 0.76% in the previous quarter[41] Future Outlook and Risks - The company anticipates potential risks including adverse conditions in capital markets and changes in interest rates affecting future performance[30]