Ponce Financial Group (PDLB) Q4 2024 earnings summary

Executive summary

• Net income available to common stockholders for Q4 2024 was $2.7M ($0.12/diluted share), up from $2.2M in Q3 2024 and $0.5M in Q4 2023; full-year 2024 net income was $10.3M ($0.46/diluted share), up from $3.4M in 2023.

• Net interest income for Q4 2024 was $20.7M, up 8.97% sequentially and 20.54% year-over-year; full-year net interest income rose 17.18% to $76.5M.

• Loans receivable grew 20.61% year-over-year to $2.29B; deposits increased 25.02% to $1.88B as of December 31, 2024.

• Launched PonceDirect digital bank, gained traction in SBA loans, and executed an agreement with the U.S. Treasury for potential repurchase of ECIP preferred shares.

Financial highlights

• Q4 2024 net interest margin was 2.80%, up from 2.65% in Q3 2024 and 2.66% in Q4 2023; full-year 2024 NIM was 2.70%.

• Non-interest income for Q4 2024 was $2.1M, up 82.19% sequentially and 63.19% year-over-year; full-year non-interest income fell 29.44% to $7.2M due to lower grant income.

• Non-interest expense for Q4 2024 was $17.3M, up 5.82% sequentially but down 3.54% year-over-year; full-year non-interest expense decreased 2.90% to $66.7M.

• Total assets reached $3.04B, up 10.51% year-over-year; stockholders' equity increased 2.87% to $505.5M.

Outlook and guidance

• Management expects to meet conditions for ECIP preferred stock repurchase, targeting a dividend rate of 0.50% for another year.

• Focus remains on loan and deposit growth, digital banking expansion, and maintaining strong capital and liquidity.