Ponce Financial Group, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company’s total assets increased by $265.2 million, or 9.6%, to $3.02 billion compared to $2.75 billion at the end of 2023. This growth was primarily driven by a $284.4 million rise in net loans receivable, which reached $2.18 billion, up from $1.90 billion at year-end 2023. Total deposits also saw a substantial increase, rising by $362.7 million (24.1%) to $1.87 billion.

For the three months ended September 30, 2024, Ponce Financial reported net income of $2.43 million, a decrease from $2.59 million in the same period of 2023. Net income available to common stockholders was $2.15 million, down from $2.59 million year-over-year. Earnings per share for the quarter were $0.10, compared to $0.12 in the prior year. In contrast, for the nine months ended September 30, 2024, net income surged to $8.04 million, a significant increase from $2.83 million in 2023, reflecting a 183.7% rise.

Interest income on loans receivable for the three months ended September 30, 2024, was $32.9 million, marking a 30.3% increase from $25.3 million in the same quarter of 2023. Total interest and dividend income rose by 23.2% to $41.3 million, driven by higher average loans receivable. However, non-interest income fell sharply by 79.5% to $1.2 million, largely due to the absence of significant grants received in the previous year.

The company’s net interest income for the quarter increased by $2.5 million (15.0%) to $19.0 million, attributed to a rise in interest and dividend income, despite a $5.3 million increase in interest expense. The net interest margin improved slightly to 2.65%, up from 2.58% in the prior year.

Ponce Financial also reported a decrease in held-to-maturity securities, which fell to $403.7 million from $461.7 million at the end of 2023. The company’s allowance for credit losses stood at $24.0 million as of September 30, 2024, reflecting ongoing risk management efforts.

Strategically, Ponce Bank has been active in enhancing its lending capabilities, including a partnership with LendingFront Technologies, Inc. to streamline small business loan origination. The bank also opened its first representative office in Florida in June 2024 and received a $3.7 million grant from the U.S. Treasury to support low-income communities. The company continues to focus on its mission to serve underserved communities, qualifying for the U.S. Treasury's ECIP program, which has facilitated significant lending activities.