Ponce Financial Group, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
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.
Sep 30, 2026 · Filed Nov 4, 2026
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 2026-06-30; filed 2026-08-05.
0001193125-26-334218
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001193125-26-447306
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 208 previous paragraphs and 215 current paragraphs.
147 unchanged; 57 reworded; 11 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 29 previous and 29 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 (11)
Current report
the risk that the repurchase of Ponce Financial Group, Inc.’s Preferred Stock issued under the ECIP may not be consummated on the anticipated timeline, on the anticipated terms, or at all;
Current report
Banking Development District and Community Bank Deposit Program
Current report
Deferred Tax Asset Valuation Allowance. Management has been actively monitoring and evaluating the realizability of the New York State and New York City deferred tax assets over multiple reporting periods. Given the significant impact of the loan subtraction modification and apportionment on New York financial taxable income, management determined that it was appropriate to defer any decision regarding the release of the valuation allowance until the 2025 tax returns were filed and actual tax return data could be incorporated into the analysis, rather than relying on estimated amounts.
Current report
Following the filing of the 2025 tax returns in the third quarter of 2026, management updated its analysis to reflect actual filed return information and reassessed the realizability of the deferred tax assets. Based on this updated evaluation, management reached the conclusion outlined below.
Current report
After weighing all available positive and negative evidence in accordance with ASC 740, Management concluded that the positive evidence outweighs the negative evidence, particularly in light of the Company’s sustained New York State and New York City taxable income, demonstration of utilization of net operating loss carryforwards, and projected future earnings.
Current report
Accordingly, Management determined that it is more likely than not that the Company will realize its New York State and New York City deferred tax assets as of September 30, 2026. As a result, the Company released the full valuation allowance previously recorded against its New York State and New York City deferred tax assets, including amounts related to both continuing operations and accumulated other comprehensive income (“AOCI”), in the third quarter 2026.
Current report
The valuation allowance release was measured based on the beginning-of-year deferred tax asset balances and recorded as a discrete benefit within income tax expense in continuing operations in the third quarter of 2026. This treatment is consistent with ASC 740-10-45-20, which requires that changes in valuation allowances resulting from changes in realizability assessments be recognized in continuing operations, even when the underlying deferred tax assets originated in AOCI.
Current report
For the three and nine months ended September 30, 2026, the Company recognized a $10.5 million valuation allowance release against its New York State and New York City deferred tax assets. The $10.5 million release includes $1.4 million related to deferred tax assets on unrealized losses on available-for-sale securities, which, in accordance with GAAP, was recognized in income tax expense rather than other comprehensive income.
Current report
Real Property Held for Sale
Current report
During the July 2026 meeting of the Board of Directors, management presented to the Board of Directors an offer that the Company had received to sell its Flushing office located at 135-12 Northern Boulevard. The Company had been working with a broker with an offer from a third party. Management believes that all the criteria has been met to move the real property from Premises and equipment to assets held for sale. For the three months ended September 30, 2026, the Company recognized a mark-to-market loss on real property held for sale of $1.2 million reported as non-interest income in the Consolidated Statement of Operations.
Current report
represents more than 100%.
Removed paragraphs (4)
Previous report
Banking Development District
Previous report
As of June 30, 2026 and December 31, 2025, there were $50.2 million and $0.3 million, respectively, in brokered deposits.
Previous report
For the three months ended June 30, 2025, Advance payments by borrowers for taxes and insurance in the amount of $14.9 million, were reclassified to Savings.
Previous report
For the six months ended June 30, 2025, Advance payments by borrowers for taxes and insurance in the amount of $13.7 million, were reclassified to Savings.
Reworded paragraphs (57)
Previous wording
Management’s discussion and analysis of the financial condition at June 30, 2026 and December 31, 2025, and results of operations for the three and six months ended June 30, 2026 and 2025, 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 September 30, 2026 and December 31, 2025, and results of operations for the three and nine months ended September 30, 2026 and 2025, 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
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 and $0.6 million for the six months ended June 30, 2026 and 2025, respectively.
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 $0.8 million and $0.8 million for the nine months ended September 30, 2026 and 2025, respectively.
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. The Company believes it has met the Threshold Conditions to exercise the purchase option because the Company has reported sixteen 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. The Company has met the Threshold Conditions to exercise the purchase option because the Company has reported sixteen consecutive quarters for which it has met the Deep Impact Condition. The Preferred Stock currently has a dividend rate of 0.5%.
Previous wording
In addition, on May 20, 2026, the Bank received $20.0 million from the Community Bank Deposit Program in BDD Program deposit.
Current wording
In addition, on May 20, 2026, the Bank received $20.0 million from the Community Bank Deposit Program.
Previous wording
If our loss rate factor was to increase 10 basis points, our reserve would increase by approximately $2.9 million. Likewise, if our loss rate factor was to decrease 10 basis points, our reserve would decrease by approximately $2.9 million.
Current wording
If our loss rate factor was to increase 10 basis points, our reserve would increase by approximately $3.1 million. Likewise, if our loss rate factor was to decrease 10 basis points, our reserve would decrease by approximately $3.1 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 June 30, 2026 and December 31, 2025, the Company had $671.5 million and $643.9 million, respectively, 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 September 30, 2026 and December 31, 2025, the Company had $657.7 million and $643.9 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 $3.49 billion in assets, $2.88 billion in loans, net of allowance for credit losses of $27.6 million, and $2.27 billion in deposits at June 30, 2026, 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 $3.69 billion in assets, $3.08 billion in loans, net of allowance for credit losses of $29.2 million, and $2.37 billion in deposits at September 30, 2026, 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
Allowance for credit losses on loans as a percentage of nonperforming loans increased for the three months ended June 30, 2026 as a result of an increase in allowance for credit losses on loans to $27.6 million and a decrease in nonperforming loans to $23.6 million.
Current wording
Allowance for credit losses on loans as a percentage of nonperforming loans increased for the three months ended September 30, 2026 as a result of an increase in allowance for credit losses on loans to $29.2 million and a decrease in nonperforming loans to $18.6 million.
Previous wording
Total Assets. Total consolidated assets increased $270.7 million, or 8.4%, to $3.49 billion at June 30, 2026 from $3.22 billion at December 31, 2025. The increase in total assets is largely attributable to increases of $280.5 million in net loans receivable, $13.9 million in cash and cash equivalents, $2.0 million in accrued interest receivable, $1.5 million in deferred tax assets, $1.4 million in Federal Home Loan Bank of New York stock and $0.1 million in other assets, partially offset by decreases of $19.4 million in held-to-maturity securities, $7.4 million in available-for-sale securities, $1.0 million in premises and equipment, net, $0.5 million in right of use assets and $0.3 million in mortgage loans held for sale, at fair value.
Current wording
Total Assets. Total consolidated assets increased $462.7 million, or 14.4%, to $3.69 billion at September 30, 2026 from $3.22 billion at December 31, 2025. The increase in total assets is largely attributable to increases of $481.8 million in net loans receivable, $14.3 million in deferred tax assets, primarily as a result of a $10.5 million valuation allowance released, $6.1 million in cash and cash equivalents, $4.8 million in Federal Home Loan Bank of New York stock, $3.7 million in accrued interest receivable and $2.2 million in other assets, partially offset by decreases of $31.8 million in held-to-maturity securities, $12.7 million in available-for-sale securities, $4.7 million in premises and equipment, net, and $1.3 million in right of use assets. The $4.7 million decrease in premises and equipment, net was largely attributable to $1.8 million of real property that was reclassified to held for sale and is reflected in other assets in the Consolidated Statements of Financial Condition and a $1.2 million loss on real property that is reflected in total non-interest income in the Consolidated Statements of Operations.
Previous wording
Cash and Cash Equivalents. Cash and cash equivalents increased $13.9 million, or 11.0%, to $140.0 million at June 30, 2026, compared to $126.2 million at December 31, 2025. The increase in cash and cash equivalents was primarily the result of an increase of $225.2 million in net deposits, $27.0 million in proceeds from maturities and principal repayment on securities, $25.0 million in net proceeds in borrowings and $4.2 million from sale of loans. The increase in cash and cash equivalents was offset primarily by increases of $287.6 million in net loans and $2.0 million in accrued interest receivables and $1.4 million in net (purchases) redemption of FHLBNY stock.
Current wording
Cash and Cash Equivalents. Cash and cash equivalents increased $6.1 million, or 4.8%, to $132.2 million at September 30, 2026, compared to $126.2 million at December 31, 2025. The increase in cash and cash equivalents was primarily the result of an increase of $321.1 million in net deposits, $100.0 million in net proceeds in borrowings, $41.9 million in proceeds from maturities and principal repayment on securities and $10.9 million from sale of loans. The increase in cash and cash equivalents was offset primarily by increases of $497.7 million in net loans, $4.8 million in net (purchases) redemption of FHLBNY stock and $3.7 million in accrued interest receivables.
Previous wording
Securities. The Company securities portfolio decreased $7.4 million, or 8.1%, to $84.8 million in available-for-sale at June 30, 2026 from $92.2 million December 31, 2025 and decreased $19.4 million, or 7.1%, to $253.6 million in held-to-maturity at June 30, 2026 from $273.0 million at December 31, 2025. The decrease in the securities portfolio was primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of $3.0 million.
Current wording
Securities. The Company securities portfolio decreased $12.7 million, or 13.8%, to $79.5 million in available-for-sale at September 30, 2026 from $92.2 million at December 31, 2025 and decreased $31.8 million, or 11.7%, to $241.2 million in held-to-maturity at September 30, 2026 from $273.0 million at December 31, 2025. The decrease in the securities portfolio was primarily due to regular principal payments and the maturity of one available-for-sale security in the amount of $3.0 million.
Previous wording
The follow table sets forth the Bank's fixed and adjustable-rate loans at June 30, 2026 that are contractually due after June 30, 2027.
Current wording
The following table sets forth the Bank's fixed and adjustable-rate loans at September 30, 2026 that are contractually due after September 30, 2027.
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 51.2% 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 50.2% 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 $301.1 million, or 39.8%, when compared to December 31, 2025. 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 $295.1 million, or 39.0%, when compared to December 31, 2025. The majority of the increases in multifamily residential loans were from loans that were refinanced from construction and land loans to new permanent loan facilities.
Previous wording
Construction and land loans decreased $36.9 million, or 4.3%, when compared to December 31, 2025. The $36.9 million decrease in construction and land mortgage loans is related to loans that were refinanced from construction and land loans to new permanent loan facilities, offset by funding of existing commitments prior to 2026 and new commitments.
Current wording
Construction and land loans increased $162.7 million, or 19.1%, when compared to December 31, 2025. The $162.7 million increase in construction and land mortgage loans is related to a combination of funding of existing commitments prior to 2026 and new commitments, offset by loans that were refinanced from construction and land loans to new permanent loan facilities.
Previous wording
Our commitments to grant new mortgage loans increased by $161.5 million as of June 30, 2026 compared to December 31, 2025. See Note 10 ("Commitments, Contingencies and Credit Risk") of Notes to the Consolidated Financial Statements.
Current wording
Our commitments to grant new mortgage loans increased by $380.1 million as of September 30, 2026 compared to December 31, 2025. See Note 10 ("Commitments, Contingencies and Credit Risk") of Notes to the Consolidated Financial Statements.
Previous wording
The Company had 73 construction and land mortgage loans with balances of $817.1 million as indicated in the table above. Of those loans, 24 loans with aggregate balances of $339.4 million, or 32.9%, of the total, have a percentage of completion of 80% or more. Within those 24 loans there are 12 loans with balances of $161.0 million that are 100% completed and received their certificates of occupancy.
Current wording
The Company had 83 construction and land mortgage loans with balances of $1.02 billion as indicated in the table above. Of those loans, 25 loans with aggregate balances of $439.6 million, or 43.2%, of the total, have a percentage of completion of 80% or more. Within those 25 loans there are 16 loans with balances of $262.0 million that are 100% completed and received their certificates of occupancy.
Previous 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, 2026 and December 31, 2025, approximately 2.7% and 3.1%, 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 September 30, 2026 and December 31, 2025, approximately 2.3% and 3.1%, 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 June 30, 2026 and December 31, 2025, the Bank’s construction and land mortgage loans as a percentage of total risk-based capital was 143.5% and 156.7%, respectively. Investor-owned commercial real estate mortgage loans as a percentage of total risk-based capital was 416.0% and 393.1% as of June 30, 2026 and December 31, 2025, respectively. At June 30, 2026, 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 with up to a 350% ratio for construction and land mortgage loans and up to 550% 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 September 30, 2026 and December 31, 2025, the Bank’s construction and land mortgage loans as a percentage of total risk-based capital was 178.4% and 156.7%, respectively. Investor-owned commercial real estate mortgage loans as a percentage of total risk-based capital was 462.5% and 393.1% as of September 30, 2026 and December 31, 2025, respectively. At September 30, 2026, the Bank was above the 100% guidelines established by the banking regulations and under the 350% guidelines set by the Bank for construction and land mortgage loans and above the 300% guideline established by banking regulators but under the 550% 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 June 30, 2026 decreased $0.3 million, or 10.0%, to $3.1 million from $3.4 million at December 31, 2025.
Current wording
Loans Held For Sale. Loans held for sale, at fair value, at September 30, 2026 increased $0.3 million, or 9.2%, to $3.7 million from $3.4 million at December 31, 2025.
Previous wording
At June 30, 2026 and December 31, 2025, there were no individual listing service deposits amounting to $250,000 or more. All other brokered certificates of deposit individually amounted to less than $250,000.
Current wording
At September 30, 2026 and December 31, 2025, there were no individual listing service deposits amounting to $250,000 or more, and no individual brokered certificates of deposit amounting to $250,000 or more.
Previous wording
At June 30, 2026, the portion of uninsured deposits in excess of $250,000 FDIC insurance limit was $459.4 million.
Current wording
At September 30, 2026, the portion of uninsured deposits in excess of $250,000 FDIC insurance limit was $471.1 million.
Previous wording
Borrowings. The Bank had outstanding borrowings at June 30, 2026 and December 31, 2025 of $621.1 million and $596.1 million in term advances from the FHLBNY. The Bank had no overnight line of credit advance from the FHLBNY at June 30, 2026 and December 31, 2025. 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, 2026 and December 31, 2025. The Bank did not have any term and overnight line of credit advances from the FRBNY at June 30, 2026 and December 31, 2025.
Current wording
Borrowings. The Bank had outstanding borrowings at September 30, 2026 and December 31, 2025 of $646.1 million and $596.1 million in term advances from the FHLBNY. The Bank had one overnight line of credit advance in the amount of $50.0 million from the FHLBNY at September 30, 2026 and no overnight line of credit advance from the FHLBNY at December 31, 2025. Additionally, the Bank had two unsecured lines of credit in the amount of $75.0 million with two correspondent banks for both periods at September 30, 2026 and December 31, 2025. The Bank did not have any term and overnight line of credit advances from the FRBNY at September 30, 2026 and December 31, 2025.
Previous wording
Stockholders’ Equity. The Company’s consolidated stockholders’ equity increased $19.4 million, or 3.6%, to $561.0 million as of June 30, 2026 from $541.5 million as of December 31, 2025. The $19.4 million increase in stockholders’ equity was largely attributable to $17.1 million in net income, $1.3 million impact to additional paid in capital as a result of share-based compensation, $1.2 million from release of ESOP shares, $0.2 million from exercise of stock options and $0.1 million in other comprehensive income, offset by $0.6 million related to the dividend paid on preferred shares during the six months ended June 30, 2026.
Current wording
Stockholders’ Equity. The Company’s consolidated stockholders’ equity increased $36.7 million, or 6.8%, to $578.3 million as of September 30, 2026 from $541.5 million as of December 31, 2025. The $36.7 million increase in stockholders’ equity was largely attributable to $35.4 million in net income, $1.9 million impact to additional paid in capital as a result of share-based compensation, $1.9 million from release of ESOP shares and $0.2 million from exercise of stock options, offset by $1.8 million in other comprehensive loss and $0.8 million related to the dividend paid on preferred shares during the nine months ended September 30, 2026.
Previous wording
Overview. Net income available to common stockholders was $8.2 million for the three months ended June 30, 2026 compared to net income available to common stockholders of $5.8 million for the three months ended June 30, 2025. Earnings per basic share was $0.36 and diluted share was $0.35 for the three months ended June 30, 2026 compared to earnings per basic share of $0.26 and diluted share of $0.25 for the three months ended June 30, 2025. The $2.4 million increase of net income available to common stockholders from the three months ended June 30, 2025, was due to increases of $5.6 million in net interest income, offset by increases of $1.3 million in non-interest expense, $0.9 million in provision for income taxes and $0.5 million in provision for credit losses and a decrease of $0.5 million in non-interest income. Net income for the three months ended June 30, 2026 and 2025, which excludes $0.3 million and $0.3 million, respectively, in dividends on preferred shares, were $8.5 million and $6.1 million, respectively.
Current wording
Overview. Net income available to common stockholders was $18.0 million for the three months ended September 30, 2026 compared to net income available to common stockholders of $6.2 million for the three months ended September 30, 2025. Earnings per basic share was $0.78 and diluted share was $0.76 for the three months ended September 30, 2026 compared to earnings per basic and diluted share of $0.27 for the three months ended September 30, 2025. The $11.7 million increase of net income available to common stockholders from the three months ended September 30, 2025, was due to an increase of $8.7 million in net interest income and a benefit of $8.1 million for income taxes as a result of a $10.5 million valuation allowance release, offset by increases of $2.6 million in non-interest expense and $1.9 million in provision for credit losses and a decrease of $0.6 million in non-interest income. Net income for the three months ended September 30, 2026 and 2025, which excludes $0.3 million and $0.3 million, respectively, in dividends on preferred shares, were $18.2 million and $6.5 million, respectively.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $5.8 million, or 12.6%, to $51.7 million for the three months ended June 30, 2026 from $45.9 million for the three months ended June 30, 2025. Interest income on loans receivable, which is the Company’s primary source of income, increased $6.5 million, or 16.2%, to $46.8 million for the three months ended June 30, 2026 from $40.3 million for the three months ended June 30, 2025.
Current wording
Interest and Dividend Income. Interest and dividend income increased $10.7 million, or 22.8%, to $57.5 million for the three months ended September 30, 2026 from $46.8 million for the three months ended September 30, 2025. Interest income on loans receivable, which is the Company’s primary source of income, increased $11.4 million, or 27.5%, to $52.9 million for the three months ended September 30, 2026 from $41.5 million for the three months ended September 30, 2025.
Previous wording
Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $0.8 million or 13.5%, to $4.8 million for the three months ended June 30, 2026 from $5.6 million for the three months ended June 30, 2025. The decrease was primarily attributable to a decrease of $1.1 million in interest on securities, offset by increases of $0.2 million in dividend on FHLBNY and FRBNY stocks and $0.1 million in interest on deposits due from banks.
Current wording
Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $0.8 million or 14.3%, to $4.6 million for the three months ended September 30, 2026 from $5.4 million for the three months ended September 30, 2025. The decrease was primarily attributable to decreases of $0.8 million in interest on securities and $0.1 million in interest on deposits due from banks, offset by an increase of $0.2 million in dividend on FHLBNY and FRBNY stocks.
Previous wording
Interest Expense. Interest expense increased $0.2 million, or 0.7%, to $21.6 million for the three months ended June 30, 2026 from $21.4 million for the three months ended June 30, 2025.
Current wording
Interest Expense. Interest expense increased $1.9 million, or 8.9%, to $23.5 million for the three months ended September 30, 2026 from $21.6 million for the three months ended September 30, 2025.
Previous wording
Net Interest Income. Net interest income increased $5.6 million, or 23.1%, to $30.1 million for the three months ended June 30, 2026 from $24.4 million for the three months ended June 30, 2025. The $5.6 million increase in net interest income for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was attributable to an increase of $5.8 million in total interest and dividend income primarily due to increases in average loans receivable, offset by an increase of $0.2 million in interest expense.
Current wording
Net Interest Income. Net interest income increased $8.7 million, or 34.6%, to $34.0 million for the three months ended September 30, 2026 from $25.2 million for the three months ended September 30, 2025. The $8.7 million increase in net interest income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was attributable to an increase of $10.7 million in total interest and dividend income primarily due to increases in average loans receivable, offset by an increase of $1.9 million in interest expense.
Previous wording
Net interest rate spread increased by 42 basis points to 2.89% for the three months ended June 30, 2026 from 2.47% for the three months ended June 30, 2025. The increase in the net interest rate spread for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily due to an increase in the average yields on interest-earning assets of 16 basis points to 6.29% for the three months ended June 30, 2026 from 6.13% for the three months ended June 30, 2025, and a decrease in the average rates paid on interest-bearing liabilities of 26 basis points to 3.40% for the three months ended June 30, 2026 from 3.66% for the three months ended June 30, 2025.
Current wording
Net interest rate spread increased by 60 basis points to 3.11% for the three months ended September 30, 2026 from 2.51% for the three months ended September 30, 2025. The increase in the net interest rate spread for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily due to an increase in the average yields on interest-earning assets of 41 basis points to 6.53% for the three months ended September 30, 2026 from 6.12% for the three months ended September 30, 2025, and a decrease in the average rates paid on interest-bearing liabilities of 19 basis points to 3.42% for the three months ended September 30, 2026 from 3.61% for the three months ended September 30, 2025.
Previous wording
Net interest margin increased 39 basis points for the three months ended June 30, 2026, to 3.66% from 3.27% for the three months ended June 30, 2025.
Current wording
Net interest margin increased 56 basis points for the three months ended September 30, 2026, to 3.86% from 3.30% for the three months ended September 30, 2025.
Previous wording
Non-Interest Income. Non-interest income decreased $0.5 million, or 25.9%, to $1.5 million for the three months ended June 30, 2026 from $2.1 million for the three months ended June 30, 2025. The $0.5 million decrease in non-interest income for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was largely attributable to decreases of $0.4 million in late and prepayment charges and $0.4 million in grant income recognized in the second quarter of 2025, offset by an increase of $0.2 million in other non-interest income.
Current wording
Non-Interest Income. Non-interest income decreased $0.6 million, or 43.0%, to $0.9 million for the three months ended September 30, 2026 from $1.5 million for the three months ended September 30, 2025. The $0.6 million decrease in non-interest income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was largely attributable to a loss of $1.2 million on real property held for sale recognized in the third quarter of 2026, $0.4 million in grant income recognized in the third quarter of 2025 and a decrease of $0.2 million in late and prepayment charges, offset by an increase of $1.0 million in other non-interest income, which includes a $0.4 million gain from the Company’s investment in Oaktree and Silvergate funds.
Previous wording
Non-Interest Expense. Non-interest expense increased $1.3 million, or 7.5%, to $18.1 million for the three months ended June 30, 2026 from $16.9 million for the three months ended June 30, 2025. The $1.3 million increase in non-interest expense was mainly attributable to an increase of $1.4 million in compensation and benefits, partially offset by a decrease of $0.1 million in federal deposit insurance and regulatory assessment.
Current wording
Non-Interest Expense. Non-interest expense increased $2.6 million, or 15.8%, to $19.2 million for the three months ended September 30, 2026 from $16.6 million for the three months ended September 30, 2025. The $2.6 million increase in non-interest expense was mainly attributable to an increase of $2.6 million in compensation and benefits as a result of new hires.
Previous wording
Income Tax Provision. The Company had a provision for income taxes of $2.8 million for the three months ended June 30, 2026 compared to a provision for income taxes of $1.9 million for the three months ended June 30, 2025.
Current wording
Income Tax Provision. The Company had a benefit for income taxes of $5.9 million for the three months ended September 30, 2026 compared to a provision for income taxes of $2.3 million for the three months ended September 30, 2025. For the three months ended September 30, 2026, the Company recognized a $10.5 million valuation allowance release against its New York State and New York City deferred tax assets.
Previous wording
Comparison of Results of Operations for the Six Months Ended June 30, 2026 and 2025
Current wording
Comparison of Results of Operations for the Nine Months Ended September 30, 2026 and 2025
Previous wording
The discussion of the Company’s results of operations for the six months ended June 30, 2026 and 2025 are presented below. The results of operations for interim periods may not be indicative of future results.
Current wording
The discussion of the Company’s results of operations for the nine months ended September 30, 2026 and 2025 are presented below. The results of operations for interim periods may not be indicative of future results.
Previous wording
Overview. Net income available to common stockholders was $16.6 million for the six months ended June 30, 2026 compared to net income available to common stockholders of $11.5 million for the six months ended June 30, 2025. Earnings per basic share was $0.72 and diluted share was $0.71 for the six months ended June 30, 2026 compared to earnings per basic share of $0.51 and diluted share of $0.50 for the six months ended June 30, 2025. The $5.1 million increase of net income available to common stockholders from the six months ended June 30, 2025, was due to increases of $11.7 million in net interest income, offset by increases of $2.5 million in provision for credit losses, $1.6 million in provision for income taxes, $1.6 million in non-interest expense and a decrease of $0.9 million in non-interest income. Net income for the six months ended June 30, 2026 and 2025 which excludes $0.6 million and $0.6 million, respectively, in dividends on preferred shares, were $17.1 million and $12.1 million, respectively.
Current wording
Overview. Net income available to common stockholders was $34.5 million for the nine months ended September 30, 2026 compared to net income available to common stockholders of $17.7 million for the nine months ended September 30, 2025. Earnings per basic share was $1.50 and diluted share was $1.47 for the nine months ended September 30, 2026 compared to earnings per basic share of $0.78 and diluted share of $0.77 for the nine months ended September 30, 2025. The $16.8 million increase of net income available to common stockholders from the nine months ended September 30, 2025, was due to an increase of $20.4 million in net interest income and a benefit of $6.5 million for income taxes as a result of a $10.5 million valuation allowance release, offset by increases of $4.3 million in provision for credit losses and $4.2 million in non-interest expense and a decrease of $1.5 million in non-interest income. Net income for the nine months ended September 30, 2026 and 2025 which excludes $0.8 million and $0.8 million, respectively, in dividends on preferred shares, were $35.4 million and $18.6 million, respectively.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $10.5 million, or 11.6%, to $100.3 million for the six months ended June 30, 2026 from $89.9 million for the six months ended June 30, 2025. Interest income on loans receivable, which is the Company’s primary source of income, increased $13.4 million, or 17.3%, to $90.8 million for the six months ended June 30, 2026 from $77.4 million for the six months ended June 30, 2025.
Current wording
Interest and Dividend Income. Interest and dividend income increased $21.1 million, or 15.5%, to $157.8 million for the nine months ended September 30, 2026 from $136.7 million for the nine months ended September 30, 2025. Interest income on loans receivable, which is the Company’s primary source of income, increased $24.8 million, or 20.9%, to $143.7 million for the nine months ended September 30, 2026 from $118.9 million for the nine months ended September 30, 2025.
Previous wording
Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $2.9 million, or 23.6%, to $9.5 million for the six months ended June 30, 2026 from $12.4 million for the six months ended June 30, 2025. The decrease was primarily attributable to decreases of $2.4 million in interest on securities and $0.8 million in interest on deposits due from banks, offset by an increase of $0.2 million in dividend on FHLBNY and FRBNY stocks.
Current wording
Total interest and dividend income on securities, FHLBNY stock and deposits due from banks decreased $3.7 million, or 20.8%, to $14.1 million for the nine months ended September 30, 2026 from $17.8 million for the nine months ended September 30, 2025. The decrease was primarily attributable to decreases of $3.2 million in interest on securities and $0.8 million in interest on deposits due from banks, offset by an increase of $0.3 million in dividend on FHLBNY and FRBNY stocks.
Previous wording
Interest Expense. Interest expense decreased $1.2 million, or 2.8%, to $42.0 million for the six months ended June 30, 2026 from $43.2 million for the six months ended June 30, 2025.
Current wording
Interest Expense. Interest expense increased $0.7 million, or 1.1%, to $65.5 million for the nine months ended September 30, 2026 from $64.8 million for the nine months ended September 30, 2025.
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