Ponce Financial Group (PDLB) Q3 2025 earnings summary

Executive summary

• Completed conversion to a national bank and commenced operations as a bank holding company and financial holding company as of October 10, 2025.

• Net income available to common stockholders for Q3 2025 was $6.2 million ($0.27/diluted share), up from $2.2 million in Q3 2024; for the nine months ended September 30, 2025, net income was $17.7 million ($0.77/diluted share), more than double the prior year.

• Total assets reached $3.16 billion as of September 30, 2025, with 13 branches and 5 loan production offices.

• Management team has extensive experience in banking, regulatory, and community development sectors.

• Opened new branches in Inwood, NY and Manhattan, and completed a major branch redesign in the Bronx.

Financial highlights

• Net interest income for Q3 2025 was $25.2 million, up 32.7% year-over-year; for the nine months, it was $71.9 million, up 28.9%.

• Net interest margin improved to 3.30% in Q3 2025 from 2.65% in Q3 2024; for the nine months, it was 3.18% versus 2.66%.

• Net loans receivable grew 14.2% year-over-year to $2.49 billion.

• Deposits increased 9.5% year-over-year to $2.06 billion.

• Non-interest expense for Q3 2025 was $16.6 million, flat year-over-year; for the nine months, it was $50.4 million, up 0.8%.

Outlook and guidance

• Positioned for continued loan and deposit growth, leveraging excess capital and ECIP funds, with a focus on community-centric banking and digital initiatives.

• Strategic focus on expanding CRE and non-residential loans, growing core deposits, and enhancing digital banking capabilities.

• Management expects to maintain favorable ECIP dividend rates and pursue the repurchase option for preferred stock.

• Ongoing modernization of infrastructure and risk management to support growth and resiliency.

• Deep impact lending at 81% after 13 quarters, well above the 60% threshold required for preferred stock buyback.