Ponce Financial reports Q2 2026 net income of $8.2M ($0.35/share), up 41% YoY

The company disclosed its second quarter 2026 financial results through a press release. The 8-K body does not contain the actual financial figures; those are in the attached Exhibit 99.1 press release, which was not provided in the input text.

The company believes it has met the lending conditions to repurchase its $225 million in preferred stock issued under the Treasury's Emergency Capital Investment Program (ECIP). Consummation remains subject to additional eligibility criteria and regulatory approval. If completed, the repurchase would eliminate the $0.6 million in annual preferred dividends and improve common equity returns. Note: these figures were previously disclosed in the company's Apr 24, 2026 8-K.

The company recorded a $2.1 million provision for credit losses in Q2 2026, up from $1.7 million in Q1 2026 and $1.6 million in Q2 2025. Non-performing assets plus troubled modifications totaled $26.8 million (0.67% of total assets), up from $23.6 million in the prior quarter but below the $28.5 million a year earlier. The allowance for credit losses stands at 0.95% of total loans.

For the six months ended June 30, 2026, Ponce Financial Group reported net income available to common stockholders of $16.6 million, or $0.71 per diluted share, representing a 44.0% increase from $11.5 million, or $0.50 per diluted share, in the prior-year period. Net interest margin expanded to 3.64%, up 52 basis points year-over-year, while non-interest expenses rose modestly to $35.4 million.

Net loans receivable reached $2.88 billion as of June 30, 2026, up $421.0 million or 17.1% from the prior year, while deposits grew to $2.27 billion, an increase of $218.7 million or 10.6%. The company is deploying excess capital into commercial real estate and residential lending, with a weighted average loan-to-value ratio of 53.8%.

Ponce Financial Group entered into an agreement with the U.S. Treasury on December 20, 2024, granting an option to repurchase the $225 million ECIP preferred stock. The company has achieved 16 consecutive quarters with an 80% deep impact lending rate, meeting the 60% threshold required for repurchase eligibility. Under current guidelines, the repurchase price could be as low as 6.73% of the $225 million face value, potentially occurring as soon as Q3 2026, subject to satisfying additional conditions.

As of June 30, 2026, Ponce Financial Group maintained a total capital to risk-weighted assets ratio of 20.00%, Tier 1 capital ratio of 18.99%, common equity Tier 1 ratio of 11.51%, and Tier 1 leverage ratio of 16.85%, all well above regulatory minimums and well-capitalized thresholds. The company holds $225 million in ECIP preferred stock from the U.S. Treasury, contributing to its robust capital position.

As of June 30, 2026, tangible book value per common share was $13.89, calculated by subtracting the $225 million preferred stock from total equity of $560,969,969 and dividing by 24,187,901 common shares outstanding. This non-GAAP measure reflects the company's capital position excluding preferred equity.