Ponce Financial Group (PDLB) investor relations material

Executive summary

• Net income available to common stockholders was $8.2 million for Q2 2026, up 41.2% year-over-year, with EPS of $0.36 basic and $0.35 diluted, driven by higher net interest income and loan growth.

• For the first half of 2026, net income available to common stockholders was $16.6 million, up 44% year-over-year.

• Total assets increased 8.4% to $3.49 billion at June 30, 2026, primarily from loan growth and higher cash balances.

• Book value per share increased to $13.89, up 13% from the prior year.

• The company met regulatory capital requirements and remains well capitalized.

Financial highlights

• Net interest income for Q2 2026 was $30.1 million, up 23.1% year-over-year, with net interest margin rising to 3.66%.

• Provision for credit losses increased to $2.1 million for the quarter, reflecting higher loan balances.

• Non-interest income declined 25.9% to $1.5 million, mainly due to lower late/prepayment charges and grant income.

• Non-interest expense rose 7.5% to $18.1 million, primarily from higher compensation and benefits.

• Deposits increased by $225.2 million (11%) since year-end 2025.

Outlook and guidance

• Management expects continued loan and deposit growth, with a focus on community lending and maintaining strong capital ratios.

• Interest rate risk is actively managed; net interest income is projected to be resilient under various rate scenarios.

• Management expects to meet conditions for repurchasing preferred stock under the ECIP Purchase Option Agreement, pending regulatory approval.