- Ponce Financial Group (PDLB, Financial) reported a significant increase in net income to $5.7 million for Q1 2025, up from $2.7 million in Q4 2024.
- The company's net interest margin improved to 2.98%, a rise of 18 basis points from the previous quarter.
- Deposits grew by 6.37%, amounting to $2.00 billion, highlighting strong customer confidence.
Ponce Financial Group, Inc. (NASDAQ: PDLB) has announced robust financial results for the first quarter of 2025, with net income available to common stockholders rising to $5.7 million, or $0.25 per diluted share. This performance marks a significant improvement from $2.7 million, or $0.12 per diluted share, in the previous quarter, and $2.4 million, or $0.11 per diluted share, in the same quarter last year.
The financial institution's net interest margin climbed to 2.98% in Q1 2025, up from 2.80% in Q4 2024 and 2.71% a year earlier. This improvement demonstrates effective management of loan yields and funding costs, contributing to a more favorable earnings environment.
Non-interest income reached $2.4 million, reflecting a quarter-over-quarter increase of 13.54%, driven by higher revenues from late and prepayment charges and SBA loan sales. Concurrently, non-interest expenses decreased by 3.30% from the preceding quarter, a testament to the company's commitment to expense management and operational efficiency.
Deposits grew by $120.1 million to $2.00 billion, a 6.37% increase from the end of Q4 2024, signaling strong deposit-gathering capabilities and customer trust. In addition, net loans receivable saw a growth of $84.3 million, totaling $2.37 billion as of March 31, 2025.
The bank's strategic emphasis on high-yielding construction loans continues to bolster financial performance. These loans qualify as Deep Impact lending under the U.S. Treasury's Emergency Capital Investment Program, further enhancing shareholder value by reducing preferred stock dividend obligations.
Despite the positive overall results, Ponce Financial Group noted that non-performing loans remain elevated at $32.0 million. Nonetheless, the company's focus on maintaining robust credit quality is evident, as demonstrated by a benefit for credit losses of $0.3 million for the quarter.
With these favorable results, Ponce Financial Group shows resilience and strategic agility, positioning itself strongly in a competitive financial landscape. The company continues to focus on optimizing interest margins, controlling expenses, and expanding fee income streams to sustain its growth trajectory.
