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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-41255

Ponce Financial Group, Inc.

(Exact Name of Registrant as Specified in its Charter)


Maryland	87-1893965
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2244 Westchester Avenue Bronx, NY	10462
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (718) 931-9000

Securities registered pursuant to Section 12(b) of the Act:

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     Common stock, par value $0.01 per share

     PDLB

     The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 5, 2025, the registrant had 23,984,800 shares of common stock, $0.01 par value per share, outstanding.


Auditor Firm Id: 686	Auditor Name: Forvis Mazars, LLP	Auditor Location: New York, New York, USA

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Consolidated Financial Statements	1
	Consolidated Statements of Financial Condition (Unaudited)	1
	Consolidated Statements of Operations (Unaudited)	2
	Consolidated Statements of Comprehensive Income (Unaudited)	3
	Consolidated Statements of Stockholders’ Equity (Unaudited)	4
	Consolidated Statements of Cash Flows (Unaudited)	5
	Notes to Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45
PART II.	OTHER INFORMATION	46
Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
Signatures		48

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements.

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

March 31, 2025 and December 31, 2024

(Dollars in thousands, except share data)


	March 31,			December 31,
	2025			2024
	(unaudited)
ASSETS
Cash and due from banks:
Cash	$	32,113		$	35,478
Interest-bearing deposits		97,780			104,361
Total cash and cash equivalents		129,893			139,839
Available-for-sale securities, at fair value (Note 3)		103,570			104,970
Held-to-maturity securities, net of allowance for credit losses of $213 at March 31, 2025 and $216 at December 31, 2024; at amortized cost (fair value 2025 $349,518; 2024 $355,294) (Note 3)		358,024			367,938
Placement with banks		249			249
Mortgage loans held for sale, at fair value (Note 4)		8,567			10,736
Loans receivable, net of allowance for credit losses of $22,974 at March 31, 2025 and $22,502 at December 31, 2024 (Note 5)		2,370,931			2,286,599
Accrued interest receivable		19,008			17,771
Premises and equipment, net		16,417			16,794
Right of use assets (Note 6)		29,496			29,093
Federal Home Loan Bank of New York (FHLBNY) stock, at cost		25,807			29,182
Deferred tax assets		11,629			12,074
Other assets		16,245			24,693
Total assets	$	3,089,836		$	3,039,938
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits (Note 7)	$	2,004,947		$	1,884,864
Operating lease liabilities		31,126			30,696
Accrued interest payable		4,628			3,712
Advance payments by borrowers for taxes and insurance		12,901			10,349
Borrowings (Note 8)		521,100			596,100
Other liabilities		1,248			8,717
Total liabilities		2,575,950			2,534,438
Commitments and contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized, 225,000 shares issued and outstanding as of March 31, 2025 and as of December 31, 2024.		225,000			225,000
Common stock, $0.01 par value; 200,000,000 shares authorized; 24,886,711 shares issued at both March 31, 2025 and December 31, 2024; 23,966,191 shares outstanding as of March 31, 2025 and 23,961,214 shares outstanding as of December 31, 2024		249			249
Treasury stock, at cost; 920,520 shares as of March 31, 2025 and 925,497 shares as of December 31, 2024		(7,641	)		(7,707	)
Additional paid-in-capital		207,888			207,319
Retained earnings		113,432			107,754
Accumulated other comprehensive loss (Note 13)		(13,515	)		(15,297	)
Unearned compensation ─ ESOP; 1,268,552 shares as of March 31, 2025 and 1,301,988 shares as of December 31, 2024		(11,527	)		(11,818	)
Total stockholders' equity		513,886			505,500
Total liabilities and stockholders' equity	$	3,089,836		$	3,039,938

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

Table of Contents

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

Three Months Ended March 31, 2025 and 2024

(Dollars in thousands, except share data)


	For the Three Months Ended March 31,
	2025			2024
Interest and dividend income:
Interest on loans receivable	$	37,136		$	30,664
Interest on deposits due from banks		1,668			2,911
Interest and dividend on securities and FHLBNY stock		5,193			6,091
Total interest and dividend income		43,997			39,666
Interest expense:
Interest on certificates of deposit		7,754			6,380
Interest on other deposits		8,554			6,540
Interest on borrowings		5,486			7,923
Total interest expense		21,794			20,843
Net interest income		22,203			18,823
Benefit for credit losses (Note 3) (Note 5) (1)		(285	)		(16	)
Net interest income after benefit for credit losses		22,488			18,839
Non-interest income:
Service charges and fees		525			473
Brokerage commissions		4			8
Late and prepayment charges		697			359
Income on sale of mortgage loans		148			302
Income on sale of SBA loans		404			—
Other		603			565
Total non-interest income		2,381			1,707
Non-interest expense:
Compensation and benefits		7,780			7,844
Occupancy and equipment		3,913			3,667
Data processing expenses		1,152			1,127
Direct loan expenses		388			732
Insurance and surety bond premiums		315			253
Office supplies, telephone and postage		170			249
Professional fees		1,364			1,723
Microloans recoveries		—			(53	)
Marketing and promotional expenses		83			100
Federal deposit insurance and regulatory assessment(2)		461			389
Other operating expenses (2)		1,262			755
Total non-interest expense (1)		16,888			16,786
Income before income taxes		7,981			3,760
Provision for income taxes		2,022			1,346
Net income	$	5,959		$	2,414
Dividends on preferred shares		281			—
Net income available to common stockholders	$	5,678		$	2,414
Earnings per common share (Note 9):
Basic	$	0.25		$	0.11
Diluted	$	0.25		$	0.11
Weighted average common shares outstanding (Note 9):
Basic		22,662,916			22,353,492
Diluted		22,876,740			22,366,728

(1) For the three months ended March 31, 2024, provision for contingencies in the amount of $0.2 million were reclassified from total non-interest expense to benefit for credit losses.

(2) For the three months ended March 31, 2024, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

Three Months Ended March 31, 2025 and 2024

(In thousands)


	For the Three Months Ended March 31,
	2025			2024
Net income	$	5,959		$	2,414
Net change in unrealized gain (losses) on securities:
Unrealized gain (losses)		2,264			(1,196	)
Income (tax) benefit effect		(482	)		255
Total other comprehensive income (loss), net of tax		1,782			(941	)
Total comprehensive income		7,741			1,473
Less: Dividends on preferred shares		281			—
Total comprehensive income available to common stockholders	$	7,460		$	1,473

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Unaudited)

Three Months Ended March 31, 2025 and 2024

(Dollars in thousands, except share data)


																		Accumulated			Unallocated
									Treasury			Additional						Other			Common
	Preferred Stock				Common Stock				Stock,			Paid-in			Retained			Comprehensive			Stock
	Shares		Amount		Shares		Amount		At Cost			Capital			Earnings			Loss			of ESOP			Total
Balance, December 31, 2024		225,000	$	225,000		23,961,214	$	249	$	(7,707	)	$	207,319		$	107,754		$	(15,297	)	$	(11,818	)	$	505,500
Net income		—		—		—		—		—			—			5,959			—			—			5,959
Preferred Stock Dividend																(281	)								(281	)
Other comprehensive income, net of tax		—		—		—		—		—			—			—			1,782			—			1,782
Release of restricted stock units		—		—		4,977		—		66			(66	)					—			—			—
ESOP shares committed to be released (33,436 shares)		—		—		—		—		—			132			—			—			291			423
Share-based compensation		—		—		—		—		—			503			—			—			—			503
Balance, March 31, 2025		225,000	$	225,000		23,966,191	$	249	$	(7,641	)	$	207,888		$	113,432		$	(13,515	)	$	(11,527	)	$	513,886


																	Accumulated			Unallocated
									Treasury			Additional					Other			Common
	Preferred Stock				Common Stock				Stock,			Paid-in			Retained		Comprehensive			Stock
	Shares		Amount		Shares		Amount		At Cost			Capital			Earnings		Loss			of ESOP			Total
Balance, December 31, 2023		225,000	$	225,000		23,785,520	$	249	$	(9,747	)	$	207,106		$	97,420	$	(15,649	)	$	(12,984	)	$	491,395
Net income		—		—		—		—		—			—			2,414		—			—			2,414
Other comprehensive loss, net of tax		—		—		—		—		—			—			—		(941	)		—			(941	)
Release of restricted stock units		—		—		4,977		—		45			(45	)				—			—			—
ESOP shares committed to be released (33,436 shares)		—		—		—		—		—			6			—		—			291			297
Share-based compensation		—		—		—		—		—			517			—		—			—			517
Balance, March 31, 2024		225,000	$	225,000		23,790,497	$	249	$	(9,702	)	$	207,584		$	99,834	$	(16,590	)	$	(12,693	)	$	493,682

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended March 31, 2025 and 2024

(In thousands)


	Three Months Ended
	March 31,
	2025			2024
Cash Flows From Operating Activities:
Net income	$	5,959		$	2,414
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums/discounts on securities, net		(22	)		(39	)
Gain on sale of loans		(552	)		(276	)
Grain recoveries		—			(53	)
Benefit for credit losses		(285	)		(180	)
Depreciation and amortization		1,207			673
ESOP compensation expense		560			297
Share-based compensation expense		503			517
Deferred income taxes		(37	)		667
Changes in assets and liabilities:
Decrease in mortgage loans held for sale, fair value		2,317			2,396
Increase in accrued interest receivable		(1,237	)		(53	)
Decrease in other assets		8,448			3,572
Increase (decrease) in accrued interest payable		916			(7,747	)
Decrease in operating lease liabilities		(730	)		(198	)
Increase in advance payments by borrowers		2,552			2,467
Decrease in other liabilities		(6,512	)		(2,996	)
Net cash provided by operating activities		13,087			1,461
Cash Flows From Investing Activities:
Net (purchase) and redemption of FHLBNY stock		3,375			(4,500	)
Proceeds from maturities, calls and principal repayments on securities		13,603			11,419
Proceeds from sale of loans		5,738			—
Net increase in loans		(90,397	)		(79,278	)
Purchase of loans		—			(5,956	)
Purchases of premises and equipment		(154	)		(1,776	)
Net cash used in investing activities		(67,835	)		(80,091	)
Cash Flows From Financing Activities:
Net increase in deposits		120,083			78,164
Net repayments from borrowings		(75,000	)		(4,000	)
Dividends paid on preferred stock		(281	)		—
Net cash provided by financing activities		44,802			74,164
Net decrease in cash and cash equivalents		(9,946	)		(4,466	)
Cash and cash equivalents at beginning of period		139,839			139,190
Cash and cash equivalents at end of period	$	129,893		$	134,724
Supplemental disclosures of cash flow information:
Cash paid for interest on deposits and borrowings	$	20,878		$	28,590
Cash paid for income taxes	$	409		$	290

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1. Nature of Business

Basis of Presentation and Consolidation:

Ponce Financial Group, Inc. (hereafter referred to as “we,” “our,” “us,” “Ponce Financial Group, Inc.,” or the “Company”) is the holding company of Ponce Bank (“Ponce Bank” or the “Bank”), a federally chartered stock savings association. The Company’s Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiary Ponce Bank (the “Bank”) and the Bank’s wholly-owned subsidiary, Ponce De Leon Mortgage Corp., which is a mortgage banking entity. All significant intercompany transactions and balances have been eliminated in consolidation.

For further information, refer to the audited Consolidated Financial Statements and Notes included in the Company' Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 13, 2025 (the "2024 Form 10-K").

Use of Estimates: In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the consolidated statement of financial condition, and revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of loans held for sale, the valuation of deferred tax assets and investment securities and the estimates relating to the valuation for share-based awards.

Segment Reporting: Effective December 31, 2024, the Company adopted Accounting Standards Update ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment and one reportable segment.

Reclassification of Prior Periods Presentation: Certain prior periods amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on net income or comprehensive income. Refer to the Consolidated Statements of Operations for the Three Months Ended March 31, 2024 for details on the reclassification.

Recent Accounting Pronouncements Not Yet Adopted:

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40)." The amendments improve the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly present expense captions (such as costs of sales and research and development). The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact these changes may have on our consolidated financial statements.

Note 2. Preferred Stock

On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP. Under the ECIP, Treasury provided investment capital directly to depository institutions that are CDFIs or MDIs or their holding companies, to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, in low-income and underserved communities. No dividends will accrue or be due for the first two years after issuance. For years three through ten, depending upon the level of qualified and/or deep impact lending made in targeted communities, as defined in the ECIP guidelines, dividends will be at an annual rate of either 2.0%, 1.25% or 0.5% and, thereafter, will be fixed at one of the foregoing rates. If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates. Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

requirements for the lower dividend rates and/or to qualify for the purchase option under the Repurchase Agreement (as described below).

Holders of Preferred Stock generally do not have any voting rights, with the exception of voting rights on certain matters as outlined in the Certificate of Designations. The Treasury is the holder of the Preferred Stock and a governmental entity, and the Treasury may hold interests that are different from a private investor in exercising its voting and other rights. In the event of a liquidation, dissolution or winding up of the Company, the Preferred Stock will be entitled to a liquidation preference, subject to certain limitations, in the amount of the sum of $1,000 per share plus declared and unpaid dividends (without accumulation of undeclared dividends) on each share.

As a participant in the ECIP, the Company must comply with certain operating requirements. Specifically, the Company must adopt the Treasury's standards for executive compensation and luxury expenses for the period during which the Treasury holds equity issued under the ECIP. These restrictions may make it difficult to adequately compensate our management team, which could impact our ability to retain qualified management. Additionally, under the ECIP regulations, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock. In June 2024, the ‎Company began paying dividends on its Preferred Stock in the amount of $0.3 million for the three months ended March 31, 2025 and $0.6 million for the year ended December 31, 2024.

On December 20, 2024, the Company entered into an ECIP Securities Purchase Option Agreement (the “Repurchase Agreement”) with Treasury. Pursuant to the Repurchase Agreement, Treasury has granted the Company an option to purchase all of the Preferred Stock during the Option Period, which is the first fifteen years following the Original Closing Date. The purchase price for the Preferred Stock pursuant to the purchase option is determined based on a formula equal to the present value of the Preferred Stock, calculated as set forth in the Repurchase Agreement, together with any accrued and unpaid dividends thereon, as of the closing date. Subject to variations in interest rates and the equity risk premium, which are components included in the purchase price calculation, the Company presently expects that the purchase price will be at a substantial discount from the face value of the Preferred Stock.

The purchase option may not be exercised unless and until at least one of the Threshold Conditions under the Repurchase Agreement has been met. The Threshold Conditions are as follows: during the ten years that follow the Original Closing Date (the “ECIP Period”) either (1) over any sixteen consecutive quarters, an average of at least 60% of the Company’s Total Originations, as defined pursuant to the terms of the ECIP, qualifies as “Deep Impact Lending,” as defined pursuant to the terms of the ECIP (the “Deep Impact Condition”); (2) over any twenty-four consecutive quarters, an average of at least 85% of the Company’s Total Originations qualifies as “Qualified Lending,” as defined pursuant to the terms of the ECIP (the “Qualified Lending Condition”); or (3) the Preferred Stock has a dividend rate of no more than 0.5%, which dividend rate is calculated pursuant to the ECIP and the terms thereof, at each of six consecutive Reset Dates, as defined in the ECIP.

The earliest possible date by which a Threshold Condition may be met is June 30, 2026, which is the end of the sixteenth consecutive quarter following the Original Closing Date. However, the Company does not currently meet any of the Threshold Conditions to exercise the purchase option, and there can be no assurance if and when the Threshold Conditions will be met. At present, the Company has reported 11 consecutive quarters for which it has met both the Deep Impact and Qualified Lending Conditions. The Preferred Stock currently has a dividend rate of 0.5%.

In addition to the requirement that a Threshold Condition be met, the Repurchase Agreement requires that the Company meet certain other eligibility conditions in order to exercise the purchase option in the future, including compliance with the terms of the original ECIP purchase agreement and the terms of the Preferred Stock, maintaining qualification as either a CDFI or an MDI, and meeting other legal and regulatory criteria. Although the Company currently meets the general eligibility criteria, other than satisfying one of the Threshold Conditions, there can be no assurance that the Company will meet such criteria in the future.

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 3. Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities at March 31, 2025 and December 31, 2024 are summarized as follows:


	March 31, 2025
				Gross		Gross
	Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,995		$	—	$	(92	)	$	2,903
Corporate Bonds		20,759			54		(1,163	)		19,650
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		33,468			—		(5,595	)		27,873
FHLMC Certificates		8,767			—		(1,057	)		7,710
FNMA Certificates		54,668			—		(9,322	)		45,346
GNMA Certificates		87			1		—			88
Total available-for-sale securities	$	120,744		$	55	$	(17,229	)	$	103,570

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(33	)	$	24,967
Corporate Bonds		32,500			21		(420	)		32,101
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		181,178			83		(5,045	)		176,216
FHLMC Certificates		3,206			—		(171	)		3,035
FNMA Certificates		102,472			—		(3,245	)		99,227
SBA Certificates		13,881			91		—			13,972
Allowance for Credit Losses		(213	)		—		—			—
Total held-to-maturity securities	$	358,024		$	195	$	(8,914	)	$	349,518

(1)

Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


	December 31, 2024
				Gross		Gross
	Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,994		$	—	$	(121	)	$	2,873
Corporate Bonds		21,762			10		(1,368	)		20,404
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		34,526			—		(5,991	)		28,535
FHLMC Certificates		9,028			—		(1,366	)		7,662
FNMA Certificates		56,010			—		(10,602	)		45,408
GNMA Certificates		88			—		—			88
Total available-for-sale securities	$	124,408		$	10	$	(19,448	)	$	104,970

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(40	)	$	24,960
Corporate Bonds		32,500			12		(535	)		31,977
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		186,634			—		(7,052	)		179,582
FHLMC Certificates		3,229			—		(223	)		3,006
FNMA Certificates		105,417			—		(5,114	)		100,303
SBA Certificates		15,374			92		—			15,466
Allowance for Credit Losses		(216	)		—		—			—
Total held-to-maturity securities	$	367,938		$	104	$	(12,964	)	$	355,294

(1)

Comprised of FHLMC, FNMA and GNMA issued securities.

The Company’s securities portfolio had 38 and 39 available-for-sale securities and 31 and 31 held-to-maturity securities at March 31, 2025 and December 31, 2024, respectively. There were no available-for-sale and held-to-maturity securities sold during the three months ended March 31, 2025 and for the year ended December 31, 2024. There was one available-for-sale security in the amount of $1.0 million that matured and/or were called during the three months ended March 31, 2025, and one available-for-sale security in the amount of $4.0 million and two held-to-maturity securities in the total amount of $50.0 million that matured and/or were called during the year ended December 31, 2024. The Company did not purchase any available-for-sale securities and held-to-maturity securities during the three months ended March 31, 2025 and during the year ended December 31, 2024.

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Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following table presents the Company's gross unrealized losses and fair values of its securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2025 and December 31, 2024:


	March 31, 2025
	Securities With Gross Unrealized Losses
	Less Than 12 Months					12 Months or More					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	—	$	—		$	2,903	$	(92	)	$	2,903	$	(92	)
Corporate Bonds		994		(6	)		13,602		(1,157	)		14,596		(1,163	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		—		—			27,873		(5,595	)		27,873		(5,595	)
FHLMC Certificates		—		—			7,710		(1,057	)		7,710		(1,057	)
FNMA Certificates		—		—			45,346		(9,322	)		45,346		(9,322	)
Total available-for-sale securities	$	994	$	(6	)	$	97,434	$	(17,223	)	$	98,428	$	(17,229	)
Held-to-Maturity Securities:
U.S. Agency Bonds	$	—	$	—		$	24,967	$	(33	)	$	24,967	$	(33	)
Corporate Bonds		—		—			15,080		(420	)		15,080		(420	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		69,255		(669	)		96,639		(4,376	)		165,894		(5,045	)
FHLMC Certificates		—		—			3,035		(171	)		3,035		(171	)
FNMA Certificates		4,440		(80	)		94,787		(3,165	)		99,227		(3,245	)
Total held-to-maturity securities	$	73,695	$	(749	)	$	234,508	$	(8,165	)	$	308,203	$	(8,914	)


	December 31, 2024
	Securities With Gross Unrealized Losses
	Less Than 12 Months					12 Months or More					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	—	$	—		$	2,873	$	(121	)	$	2,873	$	(121	)
Corporate Bonds		—		—			15,394		(1,368	)		15,394		(1,368	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		—		—			28,535		(5,991	)		28,535		(5,991	)
FHLMC Certificates		—		—			7,662		(1,366	)		7,662		(1,366	)
FNMA Certificates		—		—			45,407		(10,602	)		45,407		(10,602	)
Total available-for-sale securities	$	—	$	—		$	99,871	$	(19,448	)	$	99,871	$	(19,448	)
Held-to-Maturity Securities:
U.S. Agency Bonds	$	—	$	—		$	24,960	$	(40	)	$	24,960	$	(40	)
Corporate Bonds		—		—			29,965		(535	)		29,965		(535	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		81,112		(1,728	)		98,470		(5,324	)		179,582		(7,052	)
FHLMC Certificates		—		—			3,006		(223	)		3,006

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Ponce Financial Group, Inc. 10-Q