Ponce Financial Group, Inc. Reports Second Quarter 2025 Results

Core Viewpoint - Ponce Financial Group, Inc. reported strong financial results for the second quarter of 2025, highlighting significant growth in net interest income and profitability, while maintaining a focus on prudent growth strategies and credit quality improvements [4][6]. Financial Performance Highlights - For the second quarter of 2025, net income available to common stockholders was $5.8 million, or $0.25 per diluted share, compared to $5.7 million, or $0.25 per diluted share for the prior quarter, and $3.1 million, or $0.14 per diluted share for the same quarter last year [6][9]. - Total net income for the second quarter of 2025 was $6.1 million, reflecting a slight increase from $6.0 million in the previous quarter and a significant rise from $3.2 million in the same quarter of 2024 [9][12]. - Net interest income for the second quarter of 2025 increased by $2.2 million, or 10.01%, to $24.4 million compared to the prior quarter, and increased by $6.5 million, or 36.43%, compared to the same quarter last year [13][15]. - The net interest margin improved to 3.27% for the second quarter of 2025, up from 2.98% in the prior quarter and 2.62% in the same quarter last year [16]. Non-Interest Income and Expenses - Non-interest income for the second quarter of 2025 was $2.1 million, a decrease of $0.3 million, or 13.48%, from the previous quarter and a decrease of $0.2 million, or 8.77%, from the same quarter last year [17][19]. - Non-interest expense remained flat at $16.9 million compared to the previous quarter and increased by $0.2 million, or 1.38%, compared to the same quarter last year [21][23]. Credit Quality and Capital Ratios - Total non-performing assets decreased to $28.5 million at June 30, 2025, from $32.0 million at March 31, 2025, and $23.2 million at June 30, 2024 [24]. - The allowance for credit losses on loans as a percentage of total loans was 0.97% as of June 30, 2025, consistent with the previous quarter [7]. - Total capital to risk-weighted assets was 22.65% as of June 30, 2025, slightly down from 22.84% in the prior quarter [7]. Balance Sheet Summary - Total assets increased by $113.9 million, or 3.75%, to $3.15 billion as of June 30, 2025, primarily due to an increase in net loans receivable [27]. - Total liabilities increased by $98.3 million, or 3.88%, to $2.63 billion as of June 30, 2025, largely driven by an increase in deposits [28]. - Total stockholders' equity rose by $15.6 million, or 3.08%, to $521.1 million as of June 30, 2025, supported by net income and other comprehensive income [29].