PDLB · Ponce Financial Group, Inc.

Ponce Financial Group delivered solid Q1 2026 results with net income available to common stockholders of $8.3 million, down slightly quarter-over-quarter from $9.9 million due to lower non-interest income and higher provisions, but up significantly 46% year-over-year driven by robust net interest income growth of $6.0 million or 27%. Net interest margin expanded 4 basis points sequentially to 3.61% and 63 basis points year-over-year, reflecting improved interest income and controlled expenses. CEO Carlos P. Naudon highlighted disciplined execution, with diluted EPS up 44% YoY, book value per share rising 12% to $13.49, and non-performing assets declining to 62 basis points of total assets. Balance sheet expansion included net loans growing $99.4 million or 3.8% quarter-over-quarter to $2.70 billion and deposits up $87.2 million or 4.3% to $2.13 billion, supporting liquidity with cash at $117.2 million. Credit quality strengthened with non-performing loans at 0.62% and allowance coverage at 128.93% of nonperformers. Capital remains robust, with Ponce Financial Group total capital ratio at 21.23% and bank-only CET1 at 18.97%, well above requirements. Executive Chairman Steven A. Tsavaris noted progress toward ECIP commitments, achieving 82% deep impact lending over 15 quarters, positioning for potential repurchase in 3Q 2026. The attached investor presentation reiterates strategic focus on loan growth, technology investment, and community lending as an MDI and CDFI.