Ponce Financial Group, Inc. Reports Second Quarter 2024 Results

Financial Performance - Net income available to common stockholders for Q2 2024 was $3.1 million, or $0.14 per diluted share, compared to $2.4 million in Q1 2024 and a net loss of $0.1 million in Q2 2023 [1] - Net interest income for Q2 2024 decreased by $0.9 million (4.88%) to $17.9 million compared to Q1 2024, but increased by $1.6 million (9.96%) compared to Q2 2023 [6] - Non-interest income for Q2 2024 was $2.3 million, a 32.28% increase from Q1 2024 and a 51.34% increase from Q2 2023 [35] - Non-interest expense for Q2 2024 decreased by $0.8 million (4.74%) to $16.1 million compared to Q1 2024 and decreased by $0.9 million (5.51%) compared to Q2 2023 [36] Balance Sheet and Asset Quality - Total assets increased by $91.3 million (3.32%) to $2.84 billion as of June 30, 2024, driven by a $126.3 million increase in net loans receivable [53] - Net loans receivable grew by $126.3 million (6.66%) to $2.02 billion as of June 30, 2024 compared to December 31, 2023 [30] - Deposits increased by $98.5 million (6.53%) to $1.61 billion as of June 30, 2024 compared to December 31, 2023 [30] - Non-performing loans as a percentage of total gross loans stood at 0.89% as of June 30, 2024, down from 0.98% in June 2023 [49] Capital and Liquidity - Total capital to risk-weighted assets (Bank only) was 22.47% as of June 30, 2024, well above regulatory requirements [32] - Liquid assets plus borrowing capacity at FHLBNY stood at $679.9 million, approximately 1.7 times uninsured deposits of $401.7 million [48] - Book value per common share increased to $11.45 as of June 30, 2024, up $0.51 from the previous year [48] Loan Portfolio - Total loans, gross increased to $2.05 billion as of June 30, 2024, with construction and land loans making up 31.39% of the portfolio [23] - Mortgage loans accounted for 98.26% of total loans, with multifamily residential loans representing 26.66% of the portfolio [23] - Business loans increased to $30.2 million (1.48% of total loans) as of June 30, 2024, up from $19.8 million in December 2023 [23] Interest Rate Environment - Net interest margin was 2.62% for Q2 2024, down from 2.71% in Q1 2024 and 2.65% in Q2 2023 [6] - Net interest rate spread was 1.72% for Q2 2024, compared to 1.82% in Q1 2024 and 1.75% in Q2 2023 [48] - Average yield on interest-earning assets increased to 5.69% in Q2 2024 from 5.06% in Q2 2023 [70]