Ponce Financial Group (PDLB) investor relations material

Executive summary

• Net income available to common stockholders was $8.3 million ($0.36 per diluted share) for Q1 2026, up 46.9% year-over-year from $5.7 million in Q1 2025.

• Completed conversion to a national bank and commenced operations as a bank holding company in October 2025.

• Total assets increased to $3.30 billion as of March 31, 2026, driven by higher net loans receivable and deposits.

• Recognized as both a Community Development Financial Institution (CDFI) and a Minority Depository Institution (MDI), ranking among the largest in the U.S.

• The company remains well capitalized, meeting all regulatory capital requirements.

Financial highlights

• Net interest income rose 27.1% year-over-year to $28.2 million for Q1 2026.

• Net loans receivable grew 13.8% year-over-year to $2.70 billion as of March 31, 2026.

• Deposits increased 5.7% year-over-year to $2.13 billion as of March 31, 2026.

• Earnings per diluted share rose 44.0% to $0.36 for Q1 2026.

• Non-interest income decreased 14.2% to $2.0 million, mainly due to lower SBA loan sales.

Outlook and guidance

• Well-positioned to deploy excess capital, with a focus on expanding CRE and non-residential loans.

• Plans to grow core deposits, enhance digital banking, and increase profitability while managing expenses.

• Management expects sufficient liquidity to meet lending commitments and continued growth as a CDFI and MDI.

• ECIP repurchase could occur as soon as Q3 2026, potentially impacting capital structure.

• Emphasis on qualified Deep Impact Lending to maintain favorable ECIP dividend rates and pursue potential repurchase of preferred stock.