Ponce Financial Group, Inc. Reports Third Quarter 2025 Results

NEW YORK, Oct. 24, 2025 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank, N.A. (the “Bank”), today announced results for the third quarter of 2025.

Third Quarter 2025 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $6.2 million, or $0.27 per diluted share for the three months ended September 30, 2025, as compared to net income available to common stockholders of $5.8 million, or $0.25 per diluted share for the three months ended June 30, 2025 and net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024. Total net income for the three months ended September 30, 2025 was $6.5 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended September 30, 2025.Included in the $6.2 million of net income available to common stockholders for the third quarter of 2025 results is $46.8 million in interest and dividend income and $1.5 million in non-interest income, offset by $21.6 million in interest expense, $16.6 million in non-interest expense, $2.3 million in provision for income taxes, $1.5 million in provision for credit losses and $0.3 million in dividends on preferred shares.Net interest income of $25.2 million for the third quarter of 2025 increased $0.8 million, or 3.37%, from the prior quarter and increased $6.2 million, or 32.72%, from the same quarter last year. Net interest margin was 3.30% for the third quarter of 2025, versus 3.27% for the prior quarter and 2.65% for the same quarter last year.

Nine Months 2025 Highlights (Compared to 2024):

Net income available to common stockholders was $17.7 million, or $0.77 per diluted share for the nine months ended September 30, 2025, as compared to net income available to common stockholders of $7.7 million, or $0.34 per diluted share for the nine months ended September 30, 2024. Total net income for the nine months ended September 30, 2025 was $18.6 million. The Company paid dividends of $0.8 million on its preferred stock during the nine months ended September 30, 2025.Net interest income for the nine months ended September 30, 2025 was $71.9 million, an increase of $16.1 million, or 28.93%, compared to $55.8 million for the nine months ended September 30, 2024. Non-interest income for the nine months ended September 30, 2025 was $5.9 million, an increase of $0.8 million, or 15.97%, from $5.1 million for the nine months ended September 30, 2024.Non-interest expense for the nine months ended September 30, 2025 was $50.4 million, an increase of $0.4 million, or 0.77%, compared to $50.0 million for the nine months ended September 30, 2024.Cash and equivalents were $146.6 million as of September 30, 2025, an increase of $6.7 million, or 4.82%, from $139.8 million as of December 31, 2024.Securities totaled $379.9 million as of September 30, 2025, a decrease of $93.0 million, or 19.66%, from $472.9 million as of December 31, 2024 primarily due to regular principal payments, the call of three available-for-sale securities in the total amount of $7.0 million and the maturity/call of three held-for-sale securities in the amount of $50.0 million.Net loans receivable were $2.49 billion as of September 30, 2025, an increase of $203.4 million, or 8.90%, from $2.29 billion as of December 31, 2024.Deposits were $2.06 billion as of September 30, 2025, an increase of $167.9 million, or 8.86%, from $1.90 billion as of December 31, 2024.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated “In these uncertain times, we continue to execute on our long-term strategy of increasing margin through yield improvement and controlled cost of funds and operating expenses. We are very pleased with the results. We note our incremental profitability year-on-year and the consistency of our earnings. Our diluted earnings per share of $0.77 for the nine months ended September 30, 2025, more than doubled from the same period last year, driven by incremental net interest and non-interest income, achieved while keeping non-interest expenses almost flat. Our net interest margin this quarter increased by 3 basis points compared to the prior quarter, reflecting our decreasing funding costs. We were also busy working on the future and opened a new branch in the Inwood neighborhood of Manhattan and modernized our charter, becoming both a financial holding company and a bank holding company while Ponce Bank converted to a national bank.  These developments should enhance our funding sources and level our playing fields."

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added “We continue to make progress towards our commitments under the U.S. Treasury’s Emergency Capital Investment Program. Our strong level of loan originations from April 2025 to September 2025 ensures that our dividend yield will continue at the 0.50% level in the next dividend period starting in 2026. Also, we’re mindful of our percentage of deep impact lending, as we need to be at 60% or above for 16 quarters cumulatively, as a condition to buy the preferred stock back. After 13 quarters, including the quarter ended September 30, 2025, we are at 81% deep impact lending.”

The table below indicate the Key Metrics at or for the three months ended:

At or for the Three Months Ended September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 Performance Ratios: Return on average assets (1) 0.82% 0.79% 0.77% 0.38% 0.33%Return on common equity (1) 8.10% 7.88% 7.97% 3.76% 3.06%Net interest margin (1) (2) 3.30% 3.27% 2.98% 2.80% 2.65%Non-interest expense to average assets (1) 2.10% 2.18% 2.19% 2.25% 2.19%Efficiency ratio (3) 62.15% 63.69% 68.70% 75.63% 80.87%Capital Ratios: Total capital to risk-weighted assets (Ponce Financial Group) 24.08% 22.65% 22.84% 22.98% 22.87%Common equity Tier 1 capital to risk-weighted assets (Ponce Financial Group) 13.39% 12.49% 12.51% 12.44% 12.28%Tier 1 capital to total assets (Ponce Financial Group) 17.33% 17.13% 16.84% 17.70% 17.81%Total capital to risk-weighted assets (Bank only) 21.79% 21.22% 21.38% 21.47% 21.61%Common equity Tier 1 capital to risk-weighted assets (Bank only) 20.66% 20.15% 20.35% 20.40% 20.45%Tier 1 capital to total assets (Bank only) 16.08% 15.99% 15.61% 15.81% 16.19%Asset Quality Ratios: Allowance for credit losses on loans as a percentage of total loans 0.98% 0.97% 0.96% 0.97% 1.09%Allowance for credit losses on loans as a percentage of nonperforming loans 88.88% 101.01% 84.15% 82.29% 139.52%Net (charge-offs) recoveries to average outstanding loans (1) (0.03%) (0.04%) (0.04%) (0.45%) (0.17%)Non-performing loans as a percentage of total assets 0.88% 0.76% 0.88% 0.90% 0.57%Other: Number of offices 18 17 18 19 19 Number of full-time equivalent employees 209 206 211 218 228

(1)   Annualized where appropriate.
(2)   Net interest margin represents net interest income divided by average total interest-earning assets.
(3)   Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

Summary of Results of Operations

Net income for the three months ended September 30, 2025 was $6.5 million compared to net income of $6.1 million for the three months ended June 30, 2025 and net income of $2.4 million for the three months ended September 30, 2024.

The $0.4 million increase of net income for the three months ended September 30, 2025 compared to the three months ended June 30, 2025 was attributed mainly to an increase of $0.8 million in net interest income and decreases of $0.3 million in provision for credit losses and $0.3 million in non-interest expense, offset by a decrease of $0.6 million in non-interest income and an increase of $0.4 million in provision for income taxes.

The $4.1 million increase of net income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was largely due to increases of $6.2 million in net interest income and $0.3 million in non-interest income, offset by increases of $1.6 million in provision for income taxes and $0.8 million in provision for credit losses while remain flat on non-interest expense

Net income for the nine months ended September 30, 2025 was $18.6 million compared to net income of $8.0 million for the nine months ended September 30, 2024. The $10.5 million increase of net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was attributed mainly to increases of $16.1 million in net interest income and $0.8 million in non-interest income, partially offset by increases of $3.1 million in provision for credit losses, $2.9 million in provision for income taxes and $0.4 million in non-interest expense.

Net Interest Income and Net Interest Margin

Net interest income for the three months ended September 30, 2025, increased $0.8 million, or 3.37%, to $25.2 million compared to $24.4 million for the three months ended June 30, 2025 and increased $6.2 million, or 32.72%, compared to $19.0 million for the three months ended September 30, 2024.

The $0.8 million increase in net interest income from the three months ended June 30, 2025 was attributable to an increase of $1.0 million in total interest and dividend income, offset by an increase of $0.2 million in total interest expense. The $6.2 million increase in net interest income from the three months ended September 30, 2024 was attributable to an increase of $5.6 million in total interest and dividend income and a decrease of $0.7 million in total interest expense.

Net interest income for the nine months ended September 30, 2025, increased $16.1 million, or 28.93%, to $71.9 million compared to $55.8 million for the nine months ended September 30, 2024. The $16.1 million increase in net interest income was attributable to an increase of $17.0 million in total interest and dividend income, offset by an increase of $0.8 million in total interest expense.

Net interest margin was 3.30% for the three months ended September 30, 2025 compared to 3.27% for the prior quarter, an increase of 3bps and 2.65% for the same period last year, an increase of 65bps.

Net interest margin was 3.18% for the nine months ended September 30, 2025 compared to 2.66% for the nine months ended September 30, 2024, an increase of 52bps.

Non-interest Income

Non-interest income for the three months ended September 30, 2025, was $1.5 million, a decrease of $0.6 million, or 27.57%, compared to $2.1 million for the three months ended June 30, 2025 and an increase of $0.3 million, or 29.63%, compared to $1.2 million for the three months ended September 30, 2024.

The $0.6 million decrease in non-interest income from the three months ended June 30, 2025 was largely attributable to decreases of
$0.5 million in other non-interest income attributable to the Bank's investment in Oaktree SBIC Fund, L.P. ("Oaktree") as a result of a loss from Oaktree's investment and $0.1 million in late and prepayment charges.

The $0.3 million increase in non-interest income from the three months ended September 30, 2024 was largely attributable to increases of $0.4 million in grant income and $0.3 million in late and prepayment charges, partially offset by a decrease of $0.4 million in other non-interest income attributable to the Bank's investment in Oaktree as a result of a loss from Oaktree's investment.

Non-interest income for the nine months ended September 30, 2025, was $5.9 million, an increase of $0.8 million, or 15.97%, compared to $5.1 million for the nine months ended September 30, 2024. The $0.8 million increase in non-interest income was largely attributable to increases of $0.9 million in grant income, $0.8 million in late and prepayment charges and $0.4 million in income on sale of SBA loans, partially offset by decreases of $1.0 million in other non-interest income attributable to the Bank's investment in Oaktree as a result of a loss from Oaktree's investment and $0.3 million in income on the sale of mortgage loans.

Non-interest Expense

Non-interest expense for the three months ended September 30, 2025 was $16.6 million, a decrease of $0.3 million, or 1.49%, compared to $16.9 million for the three months ended June 30, 2025 and remained flat at $16.6 million when compared to the three months ended September 30, 2024.

The $0.3 million decrease in non-interest expense from the three months ended June 30, 2025 was mainly attributable to decreases of $0.3 million in federal deposit insurance and regulatory assessment, $0.2 million in other non-interest expense, partially offset by an increase of $0.2 million in compensation and benefits.

Non-interest expense for the nine months ended September 30, 2025, was $50.4 million, an increase of $0.4 million, or 0.77%, compared to $50.0 million for the nine months ended September 30, 2024. The $0.4 million increase in non-interest expense was mainly attributable to increases of $0.7 million in occupancy and equipment, $0.4 million in data processing expenses and $0.4 million in other operating expense, partially offset by decreases of $1.2 million in direct loan expenses and $0.3 million in professional fees.

Credit Quality:

Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty were $32.4 million at September 30, 2025 compared to $28.5 million at June 30, 2025 and $22.0 million at September 30, 2024.

During the three months ended September 30, 2025, a credit loss provision of $1.4 million on loans was recorded, consisting of $0.9 million charged on the funded portion and $0.5 million charged on the unfunded portion on loans. During the three months ended June 30, 2025, a credit loss provision of $1.6 million on loans was recorded, consisting of $1.3 million charged on the funded portion and $0.3 million charged on the unfunded portion on loans. During the three months ended September 30, 2024, a credit loss provision of $0.5 million on loans was recorded, consisting of $0.8 million charged on the funded portion on loans and a benefit of $0.3 million on the unfunded portion on loans.

During the nine months ended September 30, 2025, a credit loss provision of $2.7 million on loans was recorded, consisting of $2.9 million charged on the funded portion and a benefit of $0.2 million on the unfunded portion on loans. During the nine months ended September 30, 2024, a credit loss benefit of $0.2 million on loans was recorded, consisting of $0.4 million charged on the funded portion on loans and a benefit of $0.6 million on unfunded portion on loans.

Balance Sheet Summary

Total assets increased $117.1 million, or 3.85%, to $3.16 billion as of September 30, 2025 from $3.04 billion as of December 31, 2024. The increase in total assets is largely attributable to increases of $203.4 million in net loans receivable, $8.1 million in other assets, $6.7 million in cash and cash equivalents, $1.1 million in accrued interest receivable and $0.3 million in deferred tax asset, partially offset by decreases of $82.8 million in held-to-maturity securities, $10.1 million in available-for-sale securities, $4.9 million in mortgage loans held for sale, $3.2 million in Federal Home Loan Bank of New York stock, $0.8 million in right of use asset and $0.7 million in premises and equipment, net.

Total liabilities increased $92.8 million, or 3.66%, to $2.63 billion as of September 30, 2025 from $2.53 billion as of December 31, 2024. The increase in total liabilities was largely attributable to increases of $164.0 million in deposits, $3.9 million in advance payments by borrowers for taxes and insurance and $0.7 million in accrued interest payable, partially offset by decreases of $75.0 million in borrowings and $0.7 million in operating lease liabilities.

Total stockholders’ equity increased $24.3 million, or 4.81%, to $529.8 million as of September 30, 2025, from $505.5 million as of December 31, 2024. The $24.3 million increase in stockholders’ equity was largely attributable to $18.6 million in net income, $3.7 million in other comprehensive income, $1.4 million impact to additional paid in capital as a result of share-based compensation, $1.4 million from release of ESOP shares and $0.1 million from exercise of stock options, offset by $0.8 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank, N.A.. Ponce Bank, N.A. is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank, N.A.’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank. N.A. also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, Federal Home Loan Bank stock and Federal Reserve Bank stock.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank, N.A. operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank, N.A.’s loans; changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, and their related impacts on the economy; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank, N.A.’s market area; Ponce Bank, N.A.’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

Ponce Financial Group, Inc.and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data) As of September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 ASSETS Cash and due from banks: Cash$29,296 $35,767 $32,113 $35,478 $32,061 Interest-bearing deposits 117,283 90,872 97,780 104,361 123,751 Total cash and cash equivalents 146,579 126,639 129,893 139,839 155,812 Available-for-sale securities, at fair value 94,822 96,562 103,570 104,970 111,005 Held-to-maturity securities, at amortized cost 285,125 336,879 358,024 367,938 403,736 Placement with banks 249 249 249 249 249 Mortgage loans held for sale, at fair value 5,794 5,703 8,567 10,736 9,566 Loans receivable, net 2,490,046 2,458,712 2,370,931 2,286,599 2,180,331 Accrued interest receivable 18,903 19,126 19,008 17,771 16,890 Premises and equipment, net 16,129 16,067 16,417 16,794 16,843 Right of use assets 28,295 28,806 29,496 29,093 29,785 Federal Home Loan Bank of New York stock (FHLBNY), at cost 25,945 26,620 25,807 29,182 28,515 Deferred tax assets 12,402 12,143 11,629 12,074 11,845 Other assets 32,790 26,363 16,245 24,693 51,392 Total assets$3,157,079 $3,153,869 $3,089,836 $3,039,938 $3,015,969 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits (1)$2,063,081 $2,053,151 $2,017,848 $1,895,213 $1,884,056 Operating lease liabilities 30,028 30,501 31,126 30,696 31,343 Accrued interest payable 4,372 4,161 4,628 3,712 2,918 Borrowings 521,100 536,100 521,100 596,100 580,421 Other liabilities 8,663 8,868 1,248 8,717 12,642 Total liabilities 2,627,244 2,632,781 2,575,950 2,534,438 2,511,380 Commitments and contingencies Stockholders' Equity: Preferred stock, $0.01 par value; 100,000,000 shares authorized 225,000 225,000 225,000 225,000 225,000 Common stock, $0.01 par value; 200,000,000 shares authorized 249 249 249 249 249 Treasury stock, at cost (7,270) (7,404) (7,641) (7,707) (9,445)Additional paid-in-capital 208,909 208,275 207,888 207,319 208,478 Retained earnings 125,477 119,250 113,432 107,754 105,103 Accumulated other comprehensive loss (11,586) (13,047) (13,515) (15,297) (12,686)Unearned compensation ─ ESOP (10,944) (11,235) (11,527) (11,818) (12,110)Total stockholders' equity 529,835 521,088 513,886 505,500 504,589 Total liabilities and stockholders' equity$3,157,079 $3,153,869 $3,089,836 $3,039,938 $3,015,969

(1) As of June 30, 2025, March 31. 2025, December 31, 2024 and September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million, $10.3 million and $13.7 million, respectively, were reclassified to Deposits.

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data) Three Months Ended September 30, June 30, March 31, December 31, September
30, 2025 2025 2025 2024 2024 Interest and dividend income: Interest on loans receivable$41,486 $40,291 $37,136 $35,622 $32,945 Interest on deposits due from banks 978 807 1,668 1,783 2,430 Interest and dividend on securities and FHLBNY stock 4,383 4,762 5,193 5,481 5,918 Total interest and dividend income 46,847 45,860 43,997 42,886 41,293 Interest expense: Interest on certificates of deposit 6,553 7,382 7,754 8,104 6,926 Interest on other deposits 9,996 9,058 8,554 8,476 8,519 Interest on borrowings 5,050 4,994 5,486 5,576 6,825 Total interest expense 21,599 21,434 21,794 22,156 22,270 Net interest income 25,248 24,426 22,203 20,730 19,023 Provision (benefit) for credit losses (1) 1,364 1,626 (285) 897 537 Net interest income after provision (benefit) for credit losses 23,884 22,800 22,488 19,833 18,486 Non-interest income: Service charges and fees 539 511 525 500 508 Brokerage commissions 8 — 4 44 — Late and prepayment charges 385 530 697 318 77 Income on sale of mortgage loans 166 169 148 254 218 Income on sale of SBA loans — — 404 148 — Grant income 429 428 — — — Other (35) 422 603 833 348 Total non-interest income 1,492 2,060 2,381 2,097 1,151 Non-interest expense: Compensation and benefits 7,868 7,627 7,780 7,668 7,674 Occupancy and equipment 3,934 3,907 3,913 3,863 3,786 Data processing expenses 1,296 1,188 1,152 1,143 1,099 Direct loan expenses 155 241 388 617 573 Insurance and surety bond premiums 318 297 315 293 292 Office supplies, telephone and postage 170 174 170 294 222 Professional fees 1,409 1,367 1,364 1,703 1,351 Microloans recoveries — — — (29) (54)Marketing and promotional expenses 184 266 83 289 180 Federal deposit insurance and regulatory assessment (2) 266 546 461 418 392 Other operating expenses (2) 1,018 1,256 1,262 1,206 1,051 Total non-interest expense (1) 16,618 16,869 16,888 17,465 16,566 Income before income taxes 8,758 7,991 7,981 4,465 3,071 Provision for income taxes 2,250 1,891 2,022 1,532 638 Net income$6,508 $6,100 $5,959 $2,933 $2,433 Dividends on preferred shares 281 282 281 282 281 Net income available to common stockholders$6,227 $5,818 $5,678 $2,651 $2,152 Earnings per common share: Basic$0.27 $0.26 $0.25 $0.12 $0.10 Diluted$0.27 $0.25 $0.25 $0.12 $0.10 Weighted average common shares outstanding: Basic 22,766,195 22,716,615 22,662,916 22,528,160 22,446,009 Diluted 23,135,448 22,947,769 22,876,740 22,807,644 22,612,028

(1) For the three months ended December 31, 2024, and September 30, 2024, benefit for contingencies in the amounts of $0.2 million and $0.3 million were reclassified from total non-interest expense to benefit for credit losses.

(2) For the three months ended September 30, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors' fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each of the periods.

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data) For the Nine Months Ended September 30, 2025 2024 Variance $ Variance % Interest and dividend income: Interest on loans receivable $118,913 $94,890 $24,023 25.32%Interest on deposits due from banks 3,453 6,883 (3,430) (49.83%)Interest and dividend on securities and FHLBNY stock 14,338 17,978 (3,640) (20.25%)Total interest and dividend income 136,704 119,751 16,953 14.16%Interest expense: Interest on certificates of deposit 21,689 19,664 2,025 10.30%Interest on other deposits 27,608 22,448 5,160 22.99%Interest on borrowings 15,530 21,889 (6,359) (29.05%)Total interest expense 64,827 64,001 826 1.29%Net interest income 71,877 55,750 16,127 28.93%Provision (benefit) for credit losses 2,705 (346) 3,051 (881.79%)Net interest income after provision (benefit) for credit losses 69,172 56,096 13,076 23.31%Non-interest income: Service charges and fees 1,575 1,473 102 6.92%Brokerage commissions 12 17 (5) (29.41%)Late and prepayment charges 1,612 862 750 87.01%Income on sale of mortgage loans 483 794 (311) (39.17%)Income on sale of SBA loans 404 — 404 —%Grant income 857 — 857 —%Other 990 1,970 (980) (49.75%)Total non-interest income 5,933 5,116 817 15.97%Non-interest expense: Compensation and benefits 23,275 23,242 33 0.14%Occupancy and equipment 11,754 11,017 737 6.69%Data processing expenses 3,636 3,239 397 12.26%Direct loan expenses 784 1,938 (1,154) (59.55%)Insurance and surety bond premiums 930 808 122 15.10%Office supplies, telephone and postage 514 704 (190) (26.99%)Professional fees 4,140 4,443 (303) (6.82%)Microloans recoveries — (172) 172 (100.00%)Marketing and promotional expenses 533 425 108 25.41%Federal deposit insurance and regulatory assessments 1,273 1,209 64 5.29%Other operating expenses 3,536 3,139 397 12.65%Total non-interest expense 50,375 49,992 383 0.77%Income before income taxes 24,730 11,220 13,510 120.41%Provision for income taxes 6,163 3,181 2,982 93.74%Net income $18,567 $8,039 $10,528 130.96%Dividends on preferred shares 844 356 488 137.08%Net income available to common stockholders $17,723 $7,683 $10,040 130.68%Earnings per common share: Basic $0.78 $0.34 $0.44 129.41%Diluted $0.77 $0.34 $0.43 126.47%Weighted average common shares outstanding: Basic 22,715,620 22,403,258 312,362 1.39%Diluted 22,992,655 22,466,178 526,477 2.34%

Ponce Financial Group, Inc. and Subsidiaries
Loans Receivable excluding Mortgage Loans Held for Sale As of September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (Dollars in thousands) Mortgage loans: 1-4 family residential Investor Owned $311,728 12.39% $317,488 12.78% $325,866 13.62% $330,053 14.30% $332,380 15.09%Owner-Occupied 132,874 5.28% 134,862 5.43% 137,676 5.75% 142,363 6.17% 145,065 6.59%Multifamily residential 688,574 27.39% 693,670 27.96% 675,541 28.24% 670,159 29.04% 678,029 30.78%Nonresidential properties 436,175 17.35% 404,512 16.30% 390,681 16.33% 389,898 16.89% 383,277 17.40%Construction and land 886,369 35.25% 883,462 35.59% 815,425 34.08% 733,660 31.79% 631,461 28.67%Total mortgage loans 2,455,720 97.66% 2,433,994 98.06% 2,345,189 98.02% 2,266,133 98.19% 2,170,212 98.53%Non-mortgage loans: Business loans 58,012 2.31% 47,372 1.91% 46,329 1.94% 40,849 1.77% 28,499 1.29%Consumer loans (1) 727 0.03% 840 0.03% 997 0.04% 1,038 0.04% 4,021 0.18%Total non-mortgage loans 58,739 2.34% 48,212 1.94% 47,326 1.98% 41,887 1.81% 32,520 1.47%Total loans, gross 2,514,459 100.00% 2,482,206 100.00% 2,392,515 100.00% 2,308,020 100.00% 2,202,732 100.00%Net deferred loan origination costs 351 606 1,390 1,081 1,565 Allowance for credit losses on loans (24,764) (24,100) (22,974) (22,502) (23,966) Loans, net $2,490,046 $2,458,712 $2,370,931 $2,286,599 $2,180,331

(1)As of September 30, 2024, consumer loans include $3.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.

Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans For the Three Months Ended September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 (Dollars in thousands) Allowance for credit losses on loans at beginning of the period$24,100 $22,974 $22,502 $23,966 $24,061 Provision for credit losses on loans 864 1,348 731 1,090 801 Charge-offs: Mortgage loans: 1-4 family residences Investor owned — — (38) — — Owner occupied — — — — — Multifamily residences — — — — — Nonresidential properties — — — — (7)Construction and land — — — — — Non-mortgage loans: Business (200) (222) (222) (232) (450)Consumer — — (3) (2,465) (634)Total charge-offs (200) (222) (263) (2,697) (1,091)Recoveries: Non-mortgage loans: Business — — 4 — 1 Consumer — — — 143 194 Total recoveries — — 4 143 195 Net (charge-offs) recoveries (200) (222) (259) (2,554) (896)Allowance for credit losses on loans at end of the period$24,764 $24,100 $22,974 $22,502 $23,966

Ponce Financial Group, Inc. and Subsidiaries
Deposits As of September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (Dollars in thousands) Demand $192,595 9.34% $197,671 9.63% $212,139 10.51% $169,178 8.93% $182,737 9.71%Interest-bearing deposits: NOW/IOLA accounts 75,051 3.64% 63,626 3.10% 74,430 3.69% 62,616 3.30% 71,445 3.79%Money market accounts 821,844 39.84% 790,939 38.52% 692,753 34.33% 636,219 33.57% 660,168 35.04%Reciprocal deposits 154,548 7.49% 136,693 6.66% 141,838 7.03% 130,677 6.90% 94,145 5.00%Savings accounts (1)(2) 117,401 5.69% 113,701 5.54% 119,023 5.90% 116,219 6.13% 122,674 6.51%Total NOW, money market, reciprocal and savings accounts 1,168,844 56.66% 1,104,959 53.82% 1,028,044 50.95% 945,731 49.90% 948,432 50.34%Certificates of deposit of $250K or more (1) 209,819 10.17% 220,671 10.75% 219,721 10.89% 204,293 10.78% 210,262 11.17%Brokered certificates of deposit (3) 67,952 3.29% 69,531 3.39% 84,531 4.19% 94,531 4.99% 94,531 5.02%Listing service deposits (3) 4,150 0.20% 6,140 0.30% 6,140 0.30% 7,376 0.39% 7,376 0.39%All other certificates of deposit less than $250K (1) 419,721 20.34% 454,179 22.12% 467,273 23.16% 474,104 25.02% 440,718 23.39%Total certificates of deposit 701,642 34.00% 750,521 36.56% 777,665 38.54% 780,304 41.18% 752,887 39.97%Total interest-bearing deposits 1,870,486 90.66% 1,855,480 90.38% 1,805,709 89.49% 1,726,035 91.08% 1,701,319 90.31%Total deposits $2,063,081 100.00% $2,053,151 100.01% $2,017,848 100.00% $1,895,213 100.01% $1,884,056 100.02%

(1) As of September 30, 2024, $36.2 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.(2)As of June 30, 2025, March 31. 2025, December 31, 2024 and September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $10.9 million, $12.9 million, $10.3 million and $13.7 million, respectively, were reclassified to Deposits.(3) There were no individual listing service deposits or brokered certificates of deposit amounting to $250,000 or more.

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets As of Three Months Ended September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 (Dollars in thousands) Non-accrual loans: Mortgage loans: 1-4 family residential Investor owned$2,527 $1,859 $1,052 $436 $436 Owner occupied 649 — 1,423 1,423 1,423 Multifamily residential 14,202 11,703 9,788 10,271 4,685 Nonresidential properties — 405 — — 824 Construction and land 8,907 8,907 14,159 14,158 8,907 Non-mortgage loans: Business 880 276 170 343 180 Consumer — — — — — Total non-accrual loans (not including non-accruing
modifications to borrowers experiencing financial difficulty) (1)$27,165 $23,150 $26,592 $26,631 $16,455 Non-accruing modifications to borrowers experiencing
financial difficulty (1): Mortgage loans: 1-4 family residential Investor owned$284 $284 $279 $279 $278 Owner occupied 414 424 431 435 444 Multifamily residential — — — — — Nonresidential properties — — — — — Construction and land — — — — — Non-mortgage loans: Business — — — — — Consumer — — — — — Total non-accruing modifications to borrowers
experiencing financial difficulty (1) 698 708 710 714 722 Total non-performing assets (2)$27,863 $23,858 $27,302 $27,345 $17,177 Accruing modifications to borrowers experiencing financial
difficulty (1): Mortgage loans: 1-4 family residential Investor owned$1,766 $1,779 $1,792 $1,807 $1,821 Owner occupied 1,959 2,012 2,038 2,062 2,116 Multifamily residential — — — — — Nonresidential properties 629 655 644 652 672 Construction and land — — — — — Non-mortgage loans: Business 196 203 209 215 222 Consumer — — — — — Total accruing modifications to borrowers
experiencing financial difficulty (1)$4,550 $4,649 $4,683 $4,736 $4,831 Total non-performing assets and accruing modifications
to borrowers experiencing financial difficulty (1)$32,413 $28,507 $31,985 $32,081 $22,008 Total non-performing assets to total assets 0.88% 0.76% 0.87% 0.90% 0.57%

(1)Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.(2)Includes nonperforming mortgage loans held for sale.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

For the Three Months Ended September 30, 2025 2024 Average Average Outstanding Average Outstanding Average Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1) (Dollars in thousands)Interest-earning assets: Loans (2)$2,499,268 $41,486 6.59% $2,096,592 $32,945 6.25%Securities (3) 418,513 3,913 3.71% 548,708 5,324 3.86%Other (4) 119,262 1,448 4.82% 210,057 3,024 5.73%Total interest-earning assets 3,037,043 46,847 6.12% 2,855,357 41,293 5.75%Non-interest-earning assets 96,095 107,153 Total assets$3,133,138 $2,962,510 Interest-bearing liabilities: NOW/IOLA$78,526 $137 0.69% $74,690 $174 0.93%Money market 958,277 9,831 4.07% 711,385 8,318 4.65%Savings (5) 119,159 28 0.09% 122,722 27 0.09%Certificates of deposit 698,019 6,553 3.72% 655,562 6,926 4.20%Total deposits 1,853,981 16,549 3.54% 1,564,359 15,445 3.93%Borrowings 521,100 5,050 3.84% 660,312 6,825 4.11%Total interest-bearing liabilities 2,375,081 21,599 3.61% 2,224,671 22,270 3.98%Non-interest-bearing liabilities: Non-interest-bearing demand 199,922 — 185,543 — Other non-interest-bearing liabilities 31,406 — 49,702 — Total non-interest-bearing liabilities 231,328 — 235,245 — Total liabilities 2,606,409 21,599 2,459,916 22,270 Total equity 526,729 502,594 Total liabilities and total equity$3,133,138 3.61% $2,962,510 3.98%Net interest income $25,248 $19,023 Net interest rate spread (6) 2.51% 1.77%Net interest-earning assets (7)$661,962 $630,686 Net interest margin (8) 3.30% 2.65%Average interest-earning assets to interest-bearing liabilities 127.87% 128.35%

(1)Annualized where appropriate.(2)Loans include loans and mortgage loans held for sale, at fair value.(3)Securities include available-for-sale securities and held-to-maturity securities.(4)Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.(5)For the three months ended September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $13.2 million, were reclassified to Savings.(6)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.(7)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.(8)Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets Nine Months Ended September 30, 2025 2024 Average Average Outstanding Average Outstanding Average Balance Interest Yield/Rate (1) Balance Interest Yield/Rate (1) (Dollars in thousands) Interest-earning assets: Loans (2)$2,439,280 $118,913 6.52% $2,038,879 $94,890 6.22%Securities (3) 445,130 12,680 3.81% 562,451 16,429 3.90%Other (4) 135,600 5,111 5.04% 196,668 8,432 5.73%Total interest-earning assets 3,020,010 136,704 6.05% 2,797,998 119,751 5.72%Non-interest-earning assets 103,059 106,500 Total assets$3,123,069 $2,904,498 Interest-bearing liabilities: NOW/IOLA$73,034 $352 0.64% $76,817 $543 0.94%Money market 884,115 27,172 4.11% 618,725 21,819 4.71%Savings (5) 118,656 84 0.09% 125,296 86 0.09%Certificates of deposit 754,531 21,689 3.84% 640,369 19,664 4.10%Total deposits 1,830,336 49,297 3.60% 1,461,207 42,112 3.85%Borrowings 536,851 15,530 3.87% 703,775 21,889 4.15%Total interest-bearing liabilities 2,367,187 64,827 3.66% 2,164,982 64,001 3.95%Non-interest-bearing liabilities: Non-interest-bearing demand 199,978 — 191,087 — Other non-interest-bearing liabilities 37,206 — 51,061 — Total non-interest-bearing liabilities 237,184 — 242,148 — Total liabilities 2,604,371 64,827 2,407,130 64,001 Total equity 518,698 497,368 Total liabilities and total equity$3,123,069 3.66% $2,904,498 3.95%Net interest income $71,877 $55,750 Net interest rate spread (6) 2.39% 1.77%Net interest-earning assets (7)$652,823 $633,016 Net interest margin (8) 3.18% 2.66%Average interest-earning assets to interest-bearing liabilities 127.58% 129.24%

(1)Annualized where appropriate. (2)Loans include loans and mortgage loans held for sale, at fair value. (3)Securities include available-for-sale securities and held-to-maturity securities. (4)Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits. (5)For the nine months ended September 30, 2024, Advance payments by borrowers for taxes and insurance in the amounts of $13.7 million, were reclassified to Savings. (6)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (7)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (8)Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries
Other Data As of September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 Other Data Common shares issued 24,886,711 24,886,711 24,886,711 24,886,711 24,886,711 Less treasury shares 885,586 901,911 920,520 925,497 1,067,248 Common shares outstanding at end of period 24,001,125 23,984,800 23,966,191 23,961,214 23,819,463 Book value per common share$12.70 $12.34 $12.05 $11.71 $11.74 Tangible book value per common share$12.70 $12.34 $12.05 $11.71 $11.74

Contact:
Sergio J. Vaccaro
[email protected]
718-931-9000