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Ponce Financial Q1 Net Income Drops to $8.3M

Ponce Financial Group reported first-quarter 2026 net income available to common stockholders of $8.3 million, or $0.36 per diluted share, down from $9.9 million, or $0.42 per share, in the fourth quarter of 2025, but up from $5.7 million, or $0.25 per share, in the first quarter of 2025.

Net income totaled $8.6 million, compared with $10.1 million in the prior quarter and $6.0 million a year earlier.

Net interest income rose to $28.2 million from $27.9 million in the fourth quarter and from $22.2 million in the year-ago quarter. That pushed net interest margin to 3.61%, up from 3.57% in the prior quarter and 2.98% a year earlier.

The company’s interest and dividend income was $48.7 million in the quarter, while interest expense was $20.4 million. Non-interest income came in at $2.0 million, down from $3.5 million in the fourth quarter and $2.3 million in the first quarter of 2025. Non-interest expense increased to $17.2 million from $16.6 million in the prior quarter and $16.9 million a year earlier.

Provision for credit losses was $1.7 million, compared with $1.1 million in the fourth quarter and a $0.3 million benefit in the first quarter of 2025. Provision for income taxes was $2.7 million, down from $3.5 million in the prior quarter and up from $2.0 million a year ago.

On the balance sheet, total assets increased to $3.30 billion from $3.22 billion at Dec. 31, 2025. Net loans receivable rose $99.4 million, or 3.8%, to $2.70 billion. Deposits climbed $87.2 million, or 4.3%, to $2.13 billion. Cash and equivalents fell $8.9 million to $117.2 million, and securities declined $14.5 million to $350.7 million.

Stockholders’ equity increased to $551.4 million from $541.5 million at the end of 2025.

Asset quality improved quarter over quarter. Non-performing loans as a percentage of total assets fell to 0.62% from 0.83% in the prior quarter and 0.88% a year earlier. Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty declined to $23.6 million from $30.2 million at Dec. 31, 2025 and $32.0 million at March 31, 2025.

The allowance for credit losses on loans was 0.96% of total loans, essentially unchanged from 0.97% in the prior quarter and 0.96% a year ago. The allowance covered 128.93% of nonperforming loans, up from 94.74% in the prior quarter and 84.15% a year earlier.

Return on average assets was 1.07%, down from 1.26% in the prior quarter but above 0.77% in the first quarter of 2025. Return on common equity was 10.37%, compared with 12.50% in the prior quarter and 7.97% a year ago. The efficiency ratio rose to 56.96% from 52.95% in the fourth quarter, but improved from 68.70% in the year-ago quarter.

The company ended the quarter with 17 offices and 218 full-time equivalent employees, compared with 17 offices and 216 employees at Dec. 31, 2025. Today the company's shares have moved -0.27% to a price of $16.60. If you want to know more, read the company's complete 8-K report here.

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