Ponce Financial Group, Inc.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
PDLB$21.70-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0000950170-25-064503
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0000950170-25-103249
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 151 previous paragraphs and 186 current paragraphs.
109 unchanged; 36 reworded; 22 added; 6 removed; 0 previous and 19 current paragraphs rearranged.
Tables are not compared: 14 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
The purchase option granted under the agreement is a freestanding financial instrument under GAAP. The Company analyzed the fair value of the repurchase option in accordance with ASC Topic 820 “Fair Value Measurements” and determined that the purchase option value is de minimis as of December 20, 2024, December 31, 2024 and June 30, 2025.
Current report
CDFI Financial Assistance Award
Current report
On February 6, 2025, the Bank received a $1.3 million grant from the U.S. Treasury as part of the CDFI Financial Assistance Award Program. This award is given to CDFI’s to support their operations and expand services in economically distressed communities.
Current report
Ponce Bank Plan of Conversion
Current report
On May 13, 2025, the Company announced that its wholly-owned subsidiary, Ponce Bank, which is currently a federally chartered stock savings association, has adopted a plan of conversion to convert to a national bank. In connection with the conversion of Ponce Bank, the Company has filed an application with the Federal Reserve Board to become a bank holding company, which application is currently awaiting regulatory approval.
Current report
Ponce Bank is seeking to become a national bank in order to increase bank powers, including its eligibility to receive municipal deposits in New York. However, the Company and Ponce Bank do not expect any material changes in their core business as a result of the Company becoming a bank holding company and Ponce Bank becoming a national bank.
Current report
The Company had 76 construction and land mortgage loans with balances of $883.5 million as indicated in the table above. Of those loans, 38 loans with aggregate balances of $622.5 million, or 70.5%, of the total, have a percentage of completion of 80% or more. Within those 38 loans there are 22 loans with balances of $340.4 million that are 100% completed and the properties have received their certificates of occupancy.
Current report
(1) For the three months ended June 30, 2024, benefit for contingencies in the amount of $0.5 million were reclassified from total non-interest expense to benefit for credit losses.
Current report
Non-Interest Income. Non-interest income decreased $0.2 million, or 8.8%, to $2.1 million for the three months ended June 30, 2025 from $2.3 million for the three months ended June 30, 2024. The $0.2 million decrease in non-interest income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was largely attributable to decreases of $0.6 million in other non-interest income and $0.1 million in income on the sale of mortgage loans, partially offset by increases of $0.4 million in grant income from grants received from the CDFI and $0.1 million in late and prepayment charges.
Current report
(1) For the three months ended June 30, 2024, benefit for contingencies in the amount of $0.5 million were reclassified from total non-interest expense to benefit for credit losses.
Current report
(2) For the three months ended June 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.
Current report
(1) For the six months ended June 30, 2024, provision for contingencies in the amount of $0.3 million were reclassified from total non-interest expense to benefit for credit losses.
Current report
Interest and Dividend Income. Interest and dividend income increased $11.4 million, or 14.5%, to $89.9 million for the six months ended June 30, 2025 from $78.5 million for the six months ended June 30, 2024. Interest income on loans receivable, which is the Company’s primary source of income, increased $15.5 million, or 25.0%, to $77.4 million for the six months ended June 30, 2025 from $61.9 million for the six months ended June 30, 2024.
Current report
Interest Expense. Interest expense increased $1.5 million, or 3.6%, to $43.2 million for the six months ended June 30, 2025 from $41.7 million for the six months ended June 30, 2024.
Current report
Net interest rate spread increased by 56 basis points to 2.33% for the six months ended June 30, 2025 from 1.77% for the six months ended June 30, 2024. The increase in the net interest rate spread for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to and an increase in the average yields on interest-earning assets of 32 basis points to 6.02% for the six months ended June 30, 2025 from 5.70% for the six months ended June 30, 2024, and a decrease in the average rates paid on interest-bearing liabilities of 24 basis points to 3.69% for the six months ended June 30, 2025 from 3.93% for the six months ended June 30, 2024.
Current report
Net interest margin increased 45 basis points for the six months ended June 30, 2025, to 3.12% from 2.67% for six months ended June 30, 2024.
Current report
Non-Interest Expense. Non-interest expense increased $0.3 million, or 1.0%, to $33.8 million for the six months ended June 30, 2025 from $33.4 million for the six months ended June 30, 2024. The $0.3 million increase in non-interest expense for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 was primarily attributable to increases of $0.6 million in occupancy and equipment, $0.4 million in other operating expense, $0.2 million in data processing expenses, partially offset by decreases of $0.7 million in direct loan expenses and $0.4 million in professional fee.
Current report
(1) For the six months ended June 30, 2024, benefit for contingencies in the amount of $0.3 million were reclassified from total non-interest expense to benefit for credit losses.
Current report
Credit Quality. Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty, including loans held for sale, decreased $3.6 million to $28.5 million at June 30, 2025 from $32.1 million at December 31, 2024.
Current report
Average Balance Sheets
Current report
Annualized where appropriate.
Current report
Rate/Volume Analysis
Removed paragraphs (6)
Previous report
Within the construction and land mortgage loans, as indicated in the composition of gross loans receivable table above, there are 64 projects as of March 31, 2025. Of these 64 projects, 51 projects are more than 50% complete and 13 projects are less than 50% complete. Of the 51 projects that are more than 50% complete, 22 projects have been issued a certificate of occupancy or a temporary certificate of occupancy, 29 projects are without certificate of occupancy or a temporary certificate of occupancy.
Previous report
Credit Quality. Total non-performing loans, including loans held for sale, were $27.3 million for both periods March 31, 2025 and December 31, 2024.
Previous report
Loans include loans and mortgage loans held for sale, at fair value.
Previous report
Securities include available-for-sale securities and held-to-maturity securities.
Previous report
Loans include loans and mortgage loans held for sale, at fair value.
Previous report
Securities include available-for-sale securities and held-to-maturity securities.
Reworded paragraphs (36)
Previous wording
Management’s discussion and analysis of the financial condition at March 31, 2025 and December 31, 2024, and results of operations for the three months ended March 31, 2025 and 2024, is intended to assist in understanding the financial condition and results of operations of Ponce Financial Group, Inc. (the “Company”). The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this quarterly report on Form 10-Q.
Current wording
Management’s discussion and analysis of the financial condition at June 30, 2025 and December 31, 2024, and results of operations for the three and six months ended June 30, 2025 and 2024, is intended to assist in understanding the financial condition and results of operations of Ponce Financial Group, Inc. (the “Company”). The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this quarterly report on Form 10-Q.
Previous wording
On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP. Under the ECIP, Treasury provided investment capital directly to depository institutions that are CDFIs or MDIs or their holding companies, to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, in low-income and underserved communities. No dividends will accrue or be due for the first two years after issuance. For years three through ten, depending upon the level of qualified and/or deep impact lending made in targeted communities, as defined in the ECIP guidelines, dividends will be at an annual rate of either 2.0%, 1.25% or 0.5% and, thereafter, will be fixed at one of the foregoing rates. If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates. Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending requirements for the lower dividend rates and/or to qualify for the purchase option under the Repurchase Agreement (as described below).
Current wording
On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP. Under the ECIP, Treasury provided investment capital directly to depository institutions that are CDFIs or MDIs or their holding companies, to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, in low-income and underserved communities. No dividends accrued or were due for the first two years after issuance. For years three through ten, depending upon the level of qualified and/or deep impact lending made in targeted communities, as defined in the ECIP guidelines, dividends will be at an annual rate of either 2.0%, 1.25% or 0.5% and, thereafter, will be fixed at one of the foregoing rates. If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates. Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending requirements for the lower dividend rates and/or to qualify for the purchase option under the Repurchase Agreement (as described below).
Previous wording
As a participant in the ECIP, the Company must comply with certain operating requirements. Specifically, the Company must adopt the Treasury's standards for executive compensation and luxury expenses for the period during which the Treasury holds equity issued under the ECIP. These restrictions may make it difficult to adequately compensate our management team, which could impact our ability to retain qualified management. Additionally, under the ECIP regulations, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock. In June 2024, the Company began paying dividends on its Preferred Stock in the amount of $0.3 million for the three months ended March 31, 2025 and $0.6 million for the year ended December 31, 2024.
Current wording
As a participant in the ECIP, the Company must comply with certain operating requirements. Specifically, the Company must adopt the Treasury's standards for executive compensation and luxury expenses for the period during which the Treasury holds equity issued under the ECIP. These restrictions may make it difficult to adequately compensate our management team, which could impact our ability to retain qualified management. Additionally, under the ECIP regulations, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.6 million for the six months ended June 30, 2025 and $0.6 million for the year ended December 31, 2024.
Previous wording
The earliest possible date by which a Threshold Condition may be met is June 30, 2026, which is the end of the sixteenth consecutive quarter following the Original Closing Date. However, the Company does not currently meet any of the Threshold Conditions to exercise the purchase option, and there can be no assurance if and when the Threshold Conditions will be met. At present, the Company has reported 11 consecutive quarters for which it has met both the Deep Impact and Qualified Lending Conditions. The Preferred Stock currently has a dividend rate of 0.5%.
Current wording
The earliest possible date by which a Threshold Condition may be met is June 30, 2026, which is the end of the sixteenth consecutive quarter following the Original Closing Date. However, the Company does not currently meet any of the Threshold Conditions to exercise the purchase option, and there can be no assurance if and when the Threshold Conditions will be met. The closing of the repurchase of the Preferred Stock, if consummated, would occur between thirty and ninety days following the satisfaction of the Threshold Condition and all other applicable conditions. At present, the Company has reported 12 consecutive quarters for which it has met both the Deep Impact and Qualified Lending Conditions. The Preferred Stock currently has a dividend rate of 0.5%.
Previous wording
The allowance for credit losses is established as probable incurred losses are estimated to have occurred through a provision for credit losses charged to earnings. Credit losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. If our loss rate factor was to increase 10 basis points, our reserve would increase by approximately $2.4 million. Likewise, if our loss rate factor was to decrease 10 basis points, our reserve would decrease by approximately $2.4 million.
Current wording
The allowance for credit losses is established as probable incurred losses are estimated to have occurred through a provision for credit losses charged to earnings. Credit losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. If our loss rate factor was to increase 10 basis points, our reserve would increase by approximately $2.5 million. Likewise, if our loss rate factor was to decrease 10 basis points, our reserve would decrease by approximately $2.5 million.
Previous wording
The Company continues its relationship with Raisin Solutions US LLC ("Raisin"), a fintech that focuses on gathering deposits for financial institutions through the Internet. As of March 31, 2025, the Company had $611.9 million in such deposits, which the Company classifies as core deposits.
Current wording
The Company continues its relationship with Raisin Solutions US LLC ("Raisin"), a fintech that focuses on gathering deposits for financial institutions through the Internet. As of June 30, 2025 and December 31, 2024, the Company had $650.4 million and $574.1 million, respectively, in such deposits, which the Company classifies as core deposits.
Previous wording
At December 31, 2018, the first year after our initial public offering, the Company had approximately $1.06 billion in assets, $918.5 million in loans, net of allowance for credit losses of $12.7 million, and $809.8 million in deposits. The Company has since grown to $3.09 billion in assets, $2.37 billion in loans receivables, net of allowance for credit losses of $23.0 million, and $2.00 billion in deposits at March 31, 2025, all while investing in infrastructure, implementing digital banking and diversifying its product offering. Now, the Company believes that it is poised to enhance its presence, locally and in similar communities outside New York, as a leading CDFI and MDI financial institution holding company.
Current wording
At December 31, 2018, the first year after our initial public offering, the Company had approximately $1.06 billion in assets, $918.5 million in loans, net of allowance for credit losses of $12.7 million, and $809.8 million in deposits. The Company has since grown to $3.15 billion in assets, $2.46 billion in loans receivables, net of allowance for credit losses of $24.1 million, and $2.04 billion in deposits at June 30, 2025, all while investing in infrastructure, implementing digital banking and diversifying its product offering. Now, the Company believes that it is poised to enhance its presence, locally and in similar communities outside New York, as a leading CDFI and MDI financial institution holding company.
Previous wording
Total Assets. Total consolidated assets increased $49.9 million, or 1.6%, to $3.09 billion at March 31, 2025 from $3.04 billion at December 31, 2024. The increase in total assets is largely attributable to increases of $84.3 million in net loans receivable, $1.2 million in accrued interest receivable and $0.4 million in right of use assets, partially offset by decreases of $9.9 million in cash and cash equivalents, $9.9 million in held-to-maturity securities, $8.4 million in other assets, $3.4 million in FHLBNY stock, $2.2 million in mortgage loans held for sale, $1.4 million in available-for-sale securities, $0.4 million in deferred tax assets and $0.4 million in premises and equipment, net.
Current wording
Total Assets. Total consolidated assets increased $113.9 million, or 3.7%, to $3.15 billion at June 30, 2025 from $3.04 billion at December 31, 2024. The increase in total assets is largely attributable to increases of $172.1 million in net loans receivable, $1.7 million in other assets and $1.4 million in accrued interest receivable, partially offset by decreases of $31.1 million in held-to-maturity securities, $13.2 million in cash and cash equivalents, $8.4 million in available-for-sale securities, $5.0 million in mortgage loans held for sale and $2.6 million in FHLBNY stock.
Previous wording
Cash and Cash Equivalents. Cash and cash equivalents decreased $9.9 million, or 7.1%, to $129.9 million at March 31, 2025, compared to $139.8 million at December 31, 2024. The decrease in cash and cash equivalents was primarily the result of an increase of $90.4 million in net loans and a $75.0 million net repayment of borrowings. The decrease in cash and cash equivalents was offset primarily by an increase of $120.1 million in net deposits, $13.6 million in proceeds from maturities, calls and principal repayment on securities, $3.4 million in net redemption of FHLB stock and $2.6 million in advance payments by borrowers.
Current wording
Cash and Cash Equivalents. Cash and cash equivalents decreased $13.2 million, or 9.4%, to $126.6 million at June 30, 2025, compared to $139.8 million at December 31, 2024. The decrease in cash and cash equivalents was primarily the result of an increase of $179.5 million in net loans and a $60.0 million net repayment of borrowings. The decrease in cash and cash equivalents was offset primarily by an increase of $157.3 million in net deposits, $42.4 million in proceeds from maturities, calls and principal repayment on securities, $5.7 million from sale of loans and $2.6 million in net redemption of FHLBNY stock.
Previous wording
Securities. The Company securities portfolio decreased $1.4 million in available-for-sale and $9.9 million in held-to-maturity during the three months ended March 31, 2025. The decrease in the securities portfolio was primarily due to the call of one available-for-sale security in the amount of $1.0 million and changes in principal amount of the securities.
Current wording
Securities. The Company securities portfolio decreased $8.4 million in available-for-sale and $31.1 million in held-to-maturity during the six months ended June 30, 2025. The decrease in the securities portfolio was primarily due to the call of two available-for-sale securities in the total amount of $6.0 million, the maturity of one held-to-maturity security in the amount of $10.0 million and changes in principal amount of the securities.
Previous wording
Based on current internal loan reviews, the Company believes that the quality of our underwriting, our weighted average loan-to-value ratio of 56.4% and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio.
Current wording
Based on current internal loan reviews, the Company believes that the quality of our underwriting, our weighted average loan-to-value ratio of 49.0% and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio.
Previous wording
Multifamily residential loans increased $5.4 million, or 0.8%, when compared to December 31, 2024. The majority of the increases in multifamily residential loans that were refinanced from construction and land loans to a new permanent loan facility.
Current wording
Multifamily residential loans increased $23.5 million, or 3.5%, when compared to December 31, 2024. The majority of the increases in multifamily residential loans that were refinanced from construction and land loans to a new permanent loan facility.
Previous wording
Construction and land loans increased $81.8 million, or 11.1%, when compared to December 31, 2024. The majority of the $81.8 million growth in construction and land mortgage loans is related to funding of existing commitments prior to 2025 as opposed to new originations in 2025. Our commitments to grant new mortgage loans decreased by $28.7 million as of March 31, 2025 compared to December 31, 2024. See Note 10 ("Commitments, Contingencies and Credit Risk") of Notes to the Consolidated Financial Statements.
Current wording
Construction and land loans increased $149.8 million, or 20.4%, when compared to December 31, 2024. The $149.8 million growth in construction and land mortgage loans is related to funding of existing commitments prior to 2025 and new commitments, offset by loans that were refinanced from construction and land loans to new permanent loan facilities.
Previous wording
Commercial real estate loans, as defined by applicable banking regulations, include multifamily residential, nonresidential properties, and construction and land mortgage loans. At March 31, 2025 and December 31, 2024, approximately 3.3% and 3.5%, respectively, of the outstanding principal balance of the Bank’s commercial real estate mortgage loans were secured by owner-occupied commercial real estate. Owner-occupied commercial real estate is similar in many ways to commercial and industrial lending in that these loans are generally made to businesses predominantly on the basis of the cash flows of the business rather than on valuation of the real estate.
Current wording
Commercial real estate loans, as defined by applicable banking regulations, include multifamily residential, nonresidential properties, and construction and land mortgage loans. At June 30, 2025 and December 31, 2024, approximately 3.6% and 3.5%, respectively, of the outstanding principal balance of the Bank’s commercial real estate mortgage loans were secured by owner-occupied commercial real estate. Owner-occupied commercial real estate is similar in many ways to commercial and industrial lending in that these loans are generally made to businesses predominantly on the basis of the cash flows of the business rather than on valuation of the real estate.
Previous wording
Banking regulations have established guidelines relating to the amount of construction and land mortgage loans and investor- owned commercial real estate mortgage loans of 100% and 300% of total risk-based capital, respectively. Should a bank’s ratios be in excess of these guidelines, banking regulations generally require an increased level of monitoring in these lending areas by bank management. The Bank’s policy is to operate within the 200% guideline for construction and land mortgage loans and up to 450% for investor-owned commercial real estate mortgage loans. Both ratios are calculated by dividing certain types of loan balances for each of the two categories by the Bank’s total risk-based capital. At March 31, 2025 and December 31, 2024, the Bank’s construction and land mortgage loans as a percentage of total risk-based capital was 159.1% and 145.0%, respectively. Investor-owned commercial real estate mortgage loans as a percentage of total risk-based capital was 354.6% and 341.7% as of March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, the Bank was above the 100% guidelines established by the banking regulations and under the 200% guidelines set by the Bank for construction and land mortgage loans and above the 300% guideline established by banking regulators but under the 450% guidelines set by the Bank for investor owned commercial real estate mortgage loans. Management believes that it has established the appropriate level of controls to monitor the Bank’s lending in these areas.
Current wording
Banking regulations have established guidelines relating to the amount of construction and land mortgage loans and investor- owned commercial real estate mortgage loans of 100% and 300% of total risk-based capital, respectively. Should a bank’s ratios be in excess of these guidelines, banking regulations generally require an increased level of monitoring in these lending areas by bank management. The Bank’s policy is to operate within the 200% guideline for construction and land mortgage loans and up to 450% for investor-owned commercial real estate mortgage loans. Both ratios are calculated by dividing certain types of loan balances for each of the two categories by the Bank’s total risk-based capital. At June 30, 2025 and December 31, 2024, the Bank’s construction and land mortgage loans as a percentage of total risk-based capital was 169.4% and 145.0%, respectively. Investor-owned commercial real estate mortgage loans as a percentage of total risk-based capital was 366.0% and 341.7% as of June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, the Bank was above the 100% guidelines established by the banking regulations and under the 200% guidelines set by the Bank for construction and land mortgage loans and above the 300% guideline established by banking regulators but under the 450% guidelines set by the Bank for investor owned commercial real estate mortgage loans. Management believes that it has established the appropriate level of controls to monitor the Bank’s lending in these areas.
Previous wording
Loans Held For Sale. Loans held for sale, at fair value, at March 31, 2025 decreased $2.2 million, or 20.2%, to $8.6 million from $10.7 million at December 31, 2024.
Current wording
Loans Held For Sale. Loans held for sale, at fair value, at June 30, 2025 decreased $5.0 million, or 46.9%, to $5.7 million from $10.7 million at December 31, 2024.
Previous wording
When wholesale funding is necessary to complement the Company's core deposit base, management determines which source is best suited to address both liquidity risk and interest rate risk in line with management objectives. The Company’s Interest Rate Risk Policy imposes limitations on overall wholesale funding and noncore funding reliance. The overall reliance on wholesale funding and noncore funding were within those policy limitations as of March 31, 2025 and December 31, 2024. The Management Asset/Liability Committee generally meets on a bi-weekly basis to review funding needs, if any, and to ensure the Company operates within the approved limitations.
Current wording
When wholesale funding is necessary to complement the Company's core deposit base, management determines which source is best suited to address both liquidity risk and interest rate risk in line with management objectives. The Company’s Interest Rate Risk Policy imposes limitations on overall wholesale funding and noncore funding reliance. The overall reliance on wholesale funding and noncore funding were within those policy limitations as of June 30, 2025 and December 31, 2024. The Management Asset/Liability Committee generally meets on a monthly basis to review funding needs, if any, and to ensure the Company operates within the approved limitations.
Previous wording
Borrowings. The Bank had outstanding borrowings at March 31, 2025 and December 31, 2024 of $521.1 million and $571.1 million in term advances from the FHLBNY. The Bank did not have any overnight line of credit advance at March 31, 2025 and had one overnight line of credit advance in the amount of $25.0 million from the FHLBNY at December 31, 2024. Additionally, the Bank had two unsecured lines of credit in the amount of $75.0 million with two correspondent banks for both periods at March 31, 2025 and December 31, 2024. The Bank did not have any term and overnight line of credit advances from the FRBNY at March 31, 2025 and December 31, 2024.
Current wording
Borrowings. The Bank had outstanding borrowings at June 30, 2025 and December 31, 2024 of $521.1 million and $571.1 million in term advances from the FHLBNY. The Bank had one overnight line of credit advance in the amount of $15.0 million from the FHLBNY at June 30, 2025 and had one overnight line of credit advance in the amount of $25.0 million from the FHLBNY at December 31, 2024. Additionally, the Bank had two unsecured lines of credit in the amount of $75.0 million with two correspondent banks for both periods at June 30, 2025 and December 31, 2024. The Bank did not have any term and overnight line of credit advances from the FRBNY at June 30, 2025 and December 31, 2024.
Previous wording
Stockholders’ Equity. The Company’s consolidated stockholders’ equity increased $8.4 million, or 1.7%, to $513.9 million as of March 31, 2025 from $505.5 million as of December 31, 2024. The $8.4 million increase in stockholders’ equity was largely attributable to $6.0 million in net income, $1.8 million in other comprehensive income, $0.5 million impact to additional paid in capital as a result of share-based compensation and $0.4 million from release of ESOP shares, offset by $0.3 million in dividends on preferred shares.
Current wording
Stockholders’ Equity. The Company’s consolidated stockholders’ equity increased $15.6 million, or 3.1%, to $521.1 million as of June 30, 2025 from $505.5 million as of December 31, 2024. The $15.6 million increase in stockholders’ equity was largely attributable to $12.1 million in net income, $2.3 million in other comprehensive income, $1.0 million impact to additional paid in capital as a result of share-based compensation and $0.9 million from release of ESOP shares, offset by $0.6 million in dividends on preferred shares.
Previous wording
Overview. Net income available to common stockholders was $5.7 million for the three months ended March 31, 2025 compared to net income available to common stockholders of $2.4 million for the three months ended March 31, 2024. Earnings per basic and diluted share was $0.25 for the three months ended March 31, 2025 compared to earnings per basic and diluted share of $0.11 for three months ended March 31, 2024. The $3.3 million increase of net income available to common stockholders from the three months ended March 31, 2024, was due to increases of $3.4 million in net interest income, $0.7 million in non-interest income and $0.3 million in benefit for credit losses, partially offset by increases of $0.7 million in provision for income taxes, $0.3 million in dividends on preferred shares and $0.1 million in non-interest expense. Net income for the three months ended March 31, 2025, which excludes $0.3 million in dividends on preferred shares, was $6.0 million. There was no dividend on preferred shares for the three months ended March 31, 2024.
Current wording
Overview. Net income available to common stockholders was $5.8 million for the three months ended June 30, 2025 compared to net income available to common stockholders of $3.1 million for the three months ended June 30, 2024. Earnings per basic share was $0.26 and diluted share was $0.25 for the three months ended June 30, 2025 compared to earnings per basic and diluted share of $0.14 for the three months ended June 30, 2024. The $2.7 million increase of net income available to common stockholders from the three months ended June 30, 2024, was due to an increase of $6.5 million in net interest income, partially offset by increases of $2.5 million in provision for credit losses, $0.7 million in provision for income taxes, $0.2 million in dividends on preferred shares and $0.2 million in non-interest expense and a decrease of $0.2 million in non-interest income. Net income for the three months ended June 30, 2025 and 2024, which excludes $0.3 million and $0.1 million, respectively, in dividends on preferred shares, were $6.1 million and $3.2 million, respectively.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $4.3 million, or 10.9%, to $44.0 million for the three months ended March 31, 2025 from $39.7 million for the three months ended March 31, 2024. Interest income on loans receivable, which is the Company’s primary source of income, increased $6.5 million, or 21.1%, to $37.1 million for the three months ended March 31, 2025 from $30.7 million for the three months ended March 31, 2024.
Current wording
Interest and Dividend Income. Interest and dividend income increased $7.1 million, or 18.2%, to $45.9 million for the three months ended June 30, 2025 from $38.8 million for the three months ended June 30, 2024. Interest income on loans receivable, which is the Company’s primary source of income, increased $9.0 million, or 28.8%, to $40.3 million for the three months ended June 30, 2025 from $31.3 million for the three months ended June 30, 2024.
Previous wording
Interest Expense. Interest expense increased $1.0 million, or 4.6%, to $21.8 million for the three months ended March 31, 2025 from $20.8 million for the three months ended March 31, 2024.
Current wording
Interest Expense. Interest expense increased $0.5 million, or 2.6%, to $21.4 million for the three months ended June 30, 2025 from $20.9 million for the three months ended June 30, 2024.
Previous wording
Net Interest Income. Net interest income increased $3.4 million, or 18.0%, to $22.2 million for the three months ended March 31, 2025 from $18.8 million for the three months ended March 31, 2024. The $3.4 million increase in net interest income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was attributable to an increase of $4.3 million in total interest and dividend income primarily due to increases in average loans receivable, offset by an increase of $1.0 million in interest expense due primarily to a higher average cost of funds on interest bearing liabilities.
Current wording
Net Interest Income. Net interest income increased $6.5 million, or 36.4%, to $24.4 million for the three months ended June 30, 2025 from $17.9 million for the three months ended June 30, 2024. The $6.5 million increase in net interest income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was attributable to an increase of $7.1 million in total interest and dividend income primarily due to increases in average loans receivable, offset by an increase of $0.5 million in interest expense due primarily to a higher average cost of funds on interest bearing liabilities.
Previous wording
Net interest rate spread increased by 37 basis points to 2.19% for the three months ended March 31, 2025 from 1.82% for the three months ended March 31, 2024. The increase in the net interest rate spread for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to and an increase in the average yields on interest-earning assets of 19 basis points to 5.90% for the three months ended March 31, 2025 from 5.71% for the three months ended March 31, 2024, and a decrease in the average rates paid on interest-bearing liabilities of 18 basis points to 3.71% for the three months ended March 31, 2025 from 3.89% for the three months ended March 31, 2024.
Current wording
Net interest rate spread increased by 75 basis points to 2.47% for the three months ended June 30, 2025 from 1.72% for the three months ended June 30, 2024. The increase in the net interest rate spread for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to and an increase in the average yields on interest-earning assets of 44 basis points to 6.13% for the three months ended June 30, 2025 from 5.69% for the three months ended June 30, 2024, and a decrease in the average rates paid on interest-bearing liabilities of 31 basis points to 3.66% for the three months ended June 30, 2025 from 3.97% for the three months ended June 30, 2024.
Previous wording
Net interest margin increased 27 basis points for the three months ended March 31, 2025, to 2.98% from 2.71% for three months ended March 31, 2024.
Current wording
Net interest margin increased 65 basis points for the three months ended June 30, 2025, to 3.27% from 2.62% for the three months ended June 30, 2024.
Previous wording
Non-Interest Expense. Non-interest expense increased $0.1 million, or 0.6%, to $16.9 million for the three months ended March 31, 2025 from $16.8 million for the three months ended March 31, 2024. The $0.1 million increase in non-interest expense for the three months ended March 31, 2025, compared to the three months ended March 31, 2024 was attributable to increases of $0.5 million in other operating expense and $0.2 million in occupancy and equipment, partially offset by decreases of $0.4 million in professional fees and $0.3 million in direct loan expenses.
Current wording
Non-Interest Expense. Non-interest expense increased $0.2 million, or 1.4%, to $16.9 million for the three months ended June 30, 2025 from $16.6 million for the three months ended June 30, 2024. The $0.2 million increase in non-interest expense for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 was mainly attributable to increases of $0.3 million in occupancy and equipment, $0.2 million in data processing expenses, $0.1 million in marketing and promotional expenses and $0.1 million in federal deposit insurance and regulatory assessment, partially offset by a decrease of $0.4 million in direct loan expenses.
Previous wording
Income Tax Provision. The Company had a provision for income taxes of $2.0 million for the three months ended March 31, 2025 compared to a provision for income taxes of $1.3 million for three months ended March 31, 2024.
Current wording
Income Tax Provision. The Company had a provision for income taxes of $1.9 million for the three months ended June 30, 2025 compared to a provision for income taxes of $1.2 million for the three months ended June 30, 2024.
Previous wording
Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $2.1 million, or 23.8%, to $6.9 million for the three months ended March 31, 2025 from $9.0 million for the three months ended March 31, 2024. The decrease was primarily attributable to decreases of $1.2 million in interest on deposits due from banks and $1.1 million in interest on securities, offset by an increase of $0.2 million in dividend on FHLBNY stock.
Current wording
Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $4.1 million, or 24.7%, to $12.4 million for the six months ended June 30, 2025 from $16.5 million for the six months ended June 30, 2024. The decrease was primarily attributable to decreases of $2.3 million in interest on securities and $2.0 million in interest on deposits due from banks, offset by an increase of $0.2 million in dividend on FHLBNY stock.
Previous wording
Non-Interest Income. Non-interest income increased $0.7 million, or 39.5%, to $2.4 million for the three months ended March 31, 2025 from $1.7 million for the three months ended March 31, 2024. The $0.7 million increase in non-interest income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was attributable to increases of $0.4 million in income on sale of SBA loans and $0.3 million in late and prepayment charges, partially offset by a decrease of $0.2 million in income on the sale of mortgage loans.
Current wording
Non-Interest Income. Non-interest income increased $0.5 million, or 12.0%, to $4.4 million for the six months ended June 30, 2025 from $4.0 million for the six months ended June 30, 2024. The $0.5 million increase in non-interest income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was attributable to increases of $0.4 million in income on sale of SBA loans, $0.4 million in grant income and $0.4 million in late and prepayment charges, partially offset by decreases of $0.6 million in other non-interest income and $0.3 million in income on the sale of mortgage loans.
Previous wording
During the three months ended March 31, 2025, a credit loss benefit of $0.3 million on loans was recorded, consisting of $0.7 million charged on the funded portion and a benefit of $1.0 million on the unfunded portion on loans. During the three months ended March 31, 2024, a credit loss benefit of $0.1 million on loans were recorded, consisting of $0.3 million benefit on the funded portion and a $0.2 million charged on the on unfunded portion on loans.
Current wording
During the six months ended June 30, 2025, a credit loss provision of $1.3 million on loans was recorded, consisting of $2.1 million charged on the funded portion and a benefit of $0.7 million on the unfunded portion on loans. During the six months ended June 30, 2024, a credit loss benefit of $0.7 million on loans were recorded, consisting of $0.4 million benefit on the funded portion and a benefit of $0.3 million on unfunded portion on loans.
Previous wording
Although maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and competition. The most liquid assets are cash and interest-bearing deposits in banks. The levels of these assets are dependent on operating, financing, lending, and investing activities during any given period. The Bank had $521.1 million and $571.1 million of outstanding term advances from FHLBNY at March 31, 2025 and December 31, 2024, respectively. The Bank had no overnight line of credit advance from the FHLBNY at March 31, 2025 and $25.0 million of overnight line of credit advance from the FHLBNY at December 31, 2024.
Current wording
Although maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and competition. The most liquid assets are cash and interest-bearing deposits in banks. The levels of these assets are dependent on operating, financing, lending, and investing activities during any given period. The Bank had $521.1 million and $571.1 million of outstanding term advances from FHLBNY at June 30, 2025 and December 31, 2024, respectively. The Bank had $15.0 million of overnight line of credit advance from the FHLBNY at June 30, 2025 and $25.0 million of overnight line of credit advance from the FHLBNY at December 31, 2024.
Previous wording
Net cash provided by operating activities was $13.1 million and $1.5 million for the three months ended March 31, 2025 and 2024, respectively. Net cash used in investing activities, which consists primarily of disbursements for loan originations, purchase of loans, net purchase and redemption of FHLBNY stock and purchase of equipment offset by principal collections on loans and proceeds from maturities, calls and principal repayments on securities was ($67.8) million and ($80.1) million for the three months ended March 31, 2025 and 2024, respectively. Net cash provided by financing activities, consisting of activities in borrowing, deposit accounts and dividends paid on preferred stock, was $44.8 million and $74.2 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Net cash provided by (used in) operating activities was $19.3 million and ($1.1) million for the six months ended June 30, 2025 and 2024, respectively. Net cash used in investing activities, which consists primarily of disbursements for loan originations, purchase of loans, net purchase and redemption of FHLBNY stock and purchase of equipment offset by principal collections on loans and proceeds from maturities, calls and principal repayments on securities was ($129.2) million and ($129.4) million for the six months ended June 30, 2025 and 2024, respectively. Net cash provided by financing activities, consisting of activities in borrowing, deposit accounts and dividends paid on preferred stock, was $96.8 million and $94.5 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Commitments. As a financial services provider, the Company routinely is a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. Although these contractual obligations represent the Company’s future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans originated. At March 31, 2025 and December 31, 2024, the Company had outstanding commitments to originate loans and extend credit of $390.2 million and $411.5 million, respectively.
Current wording
Commitments. As a financial services provider, the Company routinely is a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. Although these contractual obligations represent the Company’s future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans originated. At June 30, 2025 and December 31, 2024, the Company had outstanding commitments to originate loans and extend credit of $359.8 million and $411.5 million, respectively.
Previous wording
It is anticipated that the Company will have sufficient funds available to meet its current lending commitments. Certificates of deposit that are scheduled to mature in 2025 totaled $610.9 million. Management expects that a substantial portion of the maturing time deposits will be renewed. However, if a substantial portion of these deposits are not retained, the Company may utilize FHLBNY advances, unsecured credit lines with correspondent banks, or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.
Current wording
It is anticipated that the Company will have sufficient funds available to meet its current lending commitments. Certificates of deposit that are scheduled to mature in 2025 totaled $494.2 million. Management expects that a substantial portion of the maturing time deposits will be renewed. However, if a substantial portion of these deposits are not retained, the Company may utilize FHLBNY advances, unsecured credit lines with correspondent banks, or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.
Previous wording
Dividend on Preferred Stock. Pursuant to the terms of its Preferred Stock, the Company is required to pay a quarterly dividend on its Preferred Stock, beginning during the quarter ended June 30, 2024. The floor dividend rate is 0.50% and the ceiling dividend rate is 2.00%, based on achievement of certain qualified lending targets. For quarterly dividends through June 15, 2025, the Company is required to pay quarterly dividends on the Preferred Stock at a rate of 0.50%. The company paid and accrued $0.3 million for the three months ended March 31, 2025 and $0.6 million for the year ended December 31, 2024.
Current wording
Dividend on Preferred Stock. Pursuant to the terms of its Preferred Stock, the Company is required to pay a quarterly dividend on its Preferred Stock, beginning during the quarter ended June 30, 2024. The floor dividend rate is 0.50% and the ceiling dividend rate is 2.00%, based on achievement of certain qualified lending targets. For quarterly dividends through June 15, 2025, the Company is required to pay quarterly dividends on the Preferred Stock at a rate of 0.50%. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.6 million for the six months ended June 30, 2025 and $0.6 million for the year ended December 31, 2024.
Previous wording
Other Material Cash Requirements. In addition to contractual obligations, the Company’s material cash requirements also includes compensation and benefits expenses for its employees, which were $7.8 million for the three months ended March 31, 2025. The Company also has material cash requirements for occupancy and equipment expenses, excluding depreciation and amortization of $0.5 million, related to rental expenses, general maintenance and cleaning supplies, guard services, software licenses and other miscellaneous expenses, which were $3.4 million for the three months ended March 31, 2025.
Current wording
Other Material Cash Requirements. In addition to contractual obligations, the Company’s material cash requirements also includes compensation and benefits expenses for its employees, which were $15.4 million for the six months ended June 30, 2025. The Company also has material cash requirements for occupancy and equipment expenses, excluding depreciation and amortization of $1.1 million, related to rental expenses, general maintenance and cleaning supplies, guard services, software licenses and other miscellaneous expenses, which were $6.8 million for the six months ended June 30, 2025.
Rearranged current paragraphs (19)
Current report — wording carried from elsewhere
Our commitments to grant new mortgage loans decreased by $127.2 million as of June 30, 2025 compared to December 31, 2024. See Note 10 ("Commitments, Contingencies and Credit Risk") of Notes to the Consolidated Financial Statements.
Current report — wording carried from elsewhere
Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $1.9 million, or 25.9%, to $5.6 million for the three months ended June 30, 2025 from $7.5 million for the three months ended June 30, 2024. The decrease was primarily attributable to a decrease of $1.2 million in interest on securities and $0.7 million in interest on deposits due from banks.
Current report — wording carried from elsewhere
Comparison of Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current report — wording carried from elsewhere
The discussion of the Company’s results of operations for the six months ended June 30, 2025 and 2024 are presented below. The results of operations for interim periods may not be indicative of future results.
Current report — wording carried from elsewhere
Overview. Net income available to common stockholders was $11.5 million for the six months ended June 30, 2025 compared to net income available to common stockholders of $5.5 million for the six months ended June 30, 2024. Earnings per basic share was $0.51 and diluted share was $0.50 for the six months ended June 30, 2025 compared to earnings per basic and diluted share of $0.25 for six months ended June 30, 2024. The $6.0 million increase of net income available to common stockholders from the six months ended June 30, 2024, was due to increases of $9.9 million in net interest income and $0.5 million in non-interest income, partially offset by increases of $2.2 million in provision for credit losses, $1.4 million in provision for income taxes, $0.5 million in dividends on preferred shares and $0.3 million in non-interest expense. Net income for the six months ended June 30, 2025 and 2024, which excludes $0.6 million and $0.1 million in dividends on preferred shares, was $12.1 million and $5.6 million, respectively.
Current report — wording carried from elsewhere
The following table presents the results of operations for the periods indicated:
Current report — wording carried from elsewhere
The following table presents interest income on loans receivable for the periods indicated:
Current report — wording carried from elsewhere
The following table presents interest and dividend income on securities and FHLBNY stock and deposits due from banks for the periods indicated:
Current report — wording carried from elsewhere
The following table presents interest expense for the periods indicated:
Current report — wording carried from elsewhere
Net Interest Income. Net interest income increased $9.9 million, or 27.0%, to $46.6 million for the six months ended June 30, 2025 from $36.7 million for the six months ended June 30, 2024. The $9.9 million increase in net interest income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was attributable to an increase of $11.4 million in total interest and dividend income primarily due to increases in average loans receivable, offset by an increase of $1.5 million in interest expense due primarily to a higher average cost of funds on interest bearing liabilities.
Current report — wording carried from elsewhere
The following table presents non-interest income for the periods indicated:
Current report — wording carried from elsewhere
The following table presents non-interest expense for the periods indicated:
Current report — wording carried from elsewhere
Income Tax Provision. The Company had a provision for income taxes of $3.9 million for the six months ended June 30, 2025 compared to a provision for income taxes of $2.5 million for six months ended June 30, 2024.
Current report — wording carried from elsewhere
The following table sets forth average outstanding balances, average yields and rates, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. Average balances are derived from average daily balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense.
Current report — wording carried from elsewhere
Includes FHLBNY demand account and FHLBNY stock dividends and FRBNY demand deposits.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
Current report — wording carried from elsewhere
Net interest margin represents net interest income divided by average total interest-earning assets.
Current report — wording carried from elsewhere
The following table presents the effects of changing rates and volumes on the Company’s net interest income for the periods indicated. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.