Ponce Financial Group Reports Q3 2026 Net Income of $18 Million

NEW YORK, October 26 - Ponce Financial Group, Inc. reported net income available to common stockholders of $18.0 million for the third quarter of 2026, equating to $0.76 per diluted share. The holding company for Ponce Bank, National Association, announced the results on October 26, 2026. Total net income for the quarter was $18.2 million.

The company recorded $57.5 million in total interest and dividend income during the period. This was offset by $23.5 million in interest expense and $19.2 million in non-interest expense. A provision for credit losses of $3.2 million and preferred stock dividends of $0.3 million further reduced the bottom line. Non-interest income contributed $0.9 million to the quarter's results.

Income tax benefits totaled $5.9 million for the quarter. This figure includes a $10.5 million release of the valuation allowance against the company's New York State and New York City deferred tax assets. Management identified this as a non-recurring item. Non-interest income also reflected a $1.2 million loss on real property related to moving the Flushing property to held-for-sale status, partially offset by a $0.4 million gain from investments in Oaktree and Silvergate funds.

Net interest income reached $34.0 million in the third quarter of 2026. This represented an increase of $3.9 million, or 13.07%, compared to the prior quarter, and an increase of $8.7 million, or 34.62%, compared to the same quarter last year. The interest income figure included $0.8 million from a satisfied former non-accrual loan. The net interest margin for the quarter was 3.86%, up from 3.66% in the prior quarter and 3.30% in the same quarter of 2025.

For the nine months ended September 30, 2026, net income available to common stockholders was $34.5 million, or $1.47 per diluted share. This compared to $17.7 million, or $0.77 per diluted share, for the same period in 2025. Total net income for the nine-month period was $35.4 million in 2026 versus $18.6 million in 2025.

Net interest income for the nine months ended September 30, 2026 was $92.3 million, a 28.38% increase from $71.9 million in the prior year period. Non-interest income decreased by 25.52% to $4.4 million from $5.9 million a year earlier. Non-interest expense rose by 8.41% to $54.6 million from $50.4 million.

As of September 30, 2026, cash and equivalents stood at $132.2 million, an increase of $6.1 million from December 31, 2025. Securities totaled $320.7 million, down from $365.2 million at year-end 2025 primarily due to principal payments and a maturity of a $3.0 million available-for-sale security.

Net loans receivable increased by 18.54% to $3.08 billion from $2.60 billion at the end of 2025. Deposits grew by 15.69% to $2.37 billion from $2.05 billion.

Carlos P. Naudon, President and CEO, stated that book value per share stands at $14.60, a $1.90 increase over the last twelve months. He noted that non-performing assets decreased during the quarter to 50 basis points of total assets.

Steven A. Tsavaris, Executive Chairman, indicated that the company filed its second-quarter Quarterly Supplemental Report, marking 16 consecutive quarters of deep impact lending above the 60% threshold required to repurchase Preferred Stock under the Emergency Capital Investment Program (ECIP). The U.S. Department of the Treasury confirmed the company met this threshold.

The company is currently collaborating with Treasury and its legal counsel to finalize next steps for the Preferred Stock repurchase.

The consummation of this repurchase remains subject to additional conditions, including satisfying certain eligibility criteria.

While Ponce Financial Group currently expects to satisfy all other necessary conditions, there is no assurance regarding if or when the repurchase will be completed.