Ponce Financial Group, Inc. Reports First Quarter 2025 Results

Core Viewpoint - Ponce Financial Group, Inc. reported strong financial results for the first quarter of 2025, highlighting improvements in net interest margin, operating expenses, and non-interest income, amidst a challenging economic environment [3][6][8]. Financial Performance - Net income for Q1 2025 was $6.0 million, a significant increase from $2.9 million in Q4 2024 and $2.4 million in Q1 2024 [8][10]. - Net income available to common stockholders was $5.7 million, or $0.25 per diluted share, compared to $2.7 million, or $0.12 per diluted share in the previous quarter [6][10]. - Total net interest income increased by $1.5 million, or 7.11%, from the prior quarter and by $3.4 million, or 17.96%, from the same quarter last year [6][10]. Key Financial Ratios - Return on average assets improved to 0.77% in Q1 2025 from 0.38% in Q4 2024 [4]. - Return on common equity rose to 7.97% from 3.76% in the previous quarter [4]. - Net interest margin increased to 2.98%, up from 2.80% in Q4 2024 and 2.71% in Q1 2024 [4][12]. Non-Interest Income and Expenses - Non-interest income for Q1 2025 was $2.4 million, an increase of $0.3 million, or 13.54%, from the previous quarter and $0.7 million, or 39.48%, from the same quarter last year [13][14]. - Non-interest expenses decreased by $0.6 million, or 3.30%, from Q4 2024, totaling $16.9 million [16][17]. Asset Quality - Non-performing loans were $32.0 million as of March 31, 2025, slightly down from $32.1 million at the end of Q4 2024 [19]. - The allowance for credit losses on loans was 0.96% of total loans, a slight decrease from 0.97% in the previous quarter [4][19]. Balance Sheet Highlights - Total assets increased by $49.9 million, or 1.64%, to $3.09 billion as of March 31, 2025 [21]. - Total liabilities rose by $41.5 million, or 1.64%, to $2.58 billion [22]. - Total stockholders' equity increased by $8.4 million, or 1.66%, to $513.9 million [23].