Ponce Financial Group Files 2023 Annual Report

TL;DR

<b>Ponce Financial Group, Inc. has submitted its 2023 10-K report detailing financial performance and loan portfolio specifics.</b>

AI Summary

Ponce Financial Group, Inc. (PDLB) filed a Annual Report (10-K) with the SEC on March 19, 2024. Ponce Financial Group, Inc. filed its 10-K for the fiscal year ending December 31, 2023. The filing includes data on various loan segments, including one-to-four family loans and construction loans. Information on fair value measurements for recurring items as of December 31, 2023, is provided. The report details specific loan past-due categories, such as 60-89 days and greater than 90 days past due. Executive compensation details for long-term incentive plans are referenced, including restricted stock and stock options.

Why It Matters

For investors and stakeholders tracking Ponce Financial Group, Inc., this filing contains several important signals. The 10-K filing provides a comprehensive overview of Ponce Financial Group's financial health and operational activities for the fiscal year 2023, crucial for investors assessing its stability and growth prospects. Specific data on loan performance, including past-due amounts and segment breakdowns, offers insights into the company's risk management and credit quality, vital for understanding potential future financial challenges or successes.

Risk Assessment

Risk Level: — Ponce Financial Group, Inc. shows moderate risk based on this filing. The company's financial performance is subject to market conditions and regulatory oversight inherent in the banking sector, as indicated by the detailed reporting of loan portfolio metrics and fair value measurements.

Analyst Insight

Investors should review the detailed loan portfolio data and fair value disclosures in the 10-K to assess credit risk and the impact of market fluctuations on Ponce Financial Group's assets.

Executive Compensation

Key Numbers

• 2023-12-31 — Fiscal Year End (Ponce Financial Group, Inc.)
• 2024-03-19 — Filing Date (10-K Report)
• 6035 — SIC Code (Savings Institution, Federally Chartered)
• MD — State of Incorporation (Ponce Financial Group, Inc.)

Key Players & Entities

• Ponce Financial Group, Inc. (company) — Filer
• 2023 (date) — Fiscal Year End
• December 31, 2023 (date) — Fiscal Year End
• 2024-03-19 (date) — Filing Date
• Bronx, NY (location) — Business Address
• 718-931-9000 (phone) — Business Phone

FAQ

Risk Factors

• Financing Receivables Past Due [medium — financial]: The company reports on various categories of past-due financing receivables, including those 60-89 days and greater than 90 days past due as of December 31, 2023.
• Fair Value Measurements [medium — financial]: The filing includes recurring fair value measurements for assets and liabilities as of December 31, 2023, categorized by input levels.

Industry Context

Ponce Financial Group operates within the savings institution sector, a part of the broader financial services industry focused on deposit-taking and lending activities.

Regulatory Implications

As a federally chartered savings institution, Ponce Financial Group is subject to regulations from federal banking agencies, including oversight of its lending practices and capital requirements.

What Investors Should Do

1. Analyze the detailed breakdown of loan segments and past-due receivables to assess credit risk.
2. Review fair value disclosures to understand the impact of market conditions on the company's balance sheet.
3. Examine executive compensation structures for alignment with company performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of reporting period for the 10-K.
• 2024-03-19: Filing Date — Date Ponce Financial Group, Inc. filed its 10-K report.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (Provides a detailed overview of Ponce Financial Group's financial condition and operations for the fiscal year.)

Year-Over-Year Comparison

This 10-K filing for the period ending December 31, 2023, provides updated financial data and operational details compared to previous filings.

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share PDLB The NASDAQ Stock Mar
• $520.3 million — cess at December 31, 2023 and 2022 were $520.3 million and $205.6 million, respectively. At
• $205.6 m — , 2023 and 2022 were $520.3 million and $205.6 million, respectively. At December 31,
• $1.0 m — , 2020 and 2019, business loans include $1.0 million, $20.0 million, $136.8 million, $
• $20.0 m — 9, business loans include $1.0 million, $20.0 million, $136.8 million, $85.3 million an
• $136.8 m — ns include $1.0 million, $20.0 million, $136.8 million, $85.3 million and $0.0 million,
• $85.3 million — million, $20.0 million, $136.8 million, $85.3 million and $0.0 million, respectively, of SBA
• $0.0 m — lion, $136.8 million, $85.3 million and $0.0 million, respectively, of SBA Paycheck Pr
• $8.0 m — , 2020 and 2019, consumer loans include $8.0 million, $18.2 million, $33.9 million, $2
• $18.2 m — 9, consumer loans include $8.0 million, $18.2 million, $33.9 million, $25.5 million and
• $33.9 m — ns include $8.0 million, $18.2 million, $33.9 million, $25.5 million and $0.0 million,
• $25.5 million — million, $18.2 million, $33.9 million, $25.5 million and $0.0 million, respectively, of micr
• $8.0 million — (1) Includes 14,727 microloans totaling $8.0 million which were originated by Grain. As of N
• $343.7 m — o-four family investor-owned loans were $343.7 million, or 17.9% of the Bank's total loa
• $303.7 m — tration. The majority of the portfolio, $303.7 million, or 88.4%, are two-to-four family

Filing Documents

• pdlb-20231231.htm (10-K) — 9223KB
• pdlb-ex10_16.htm (EX-10.16) — 30KB
• pdlb-ex10_17.htm (EX-10.17) — 29KB
• pdlb-ex10_18.htm (EX-10.18) — 39KB
• pdlb-ex10_19.htm (EX-10.19) — 50KB
• pdlb-ex10_20.htm (EX-10.20) — 42KB
• pdlb-ex21_1.htm (EX-21.1) — 5KB
• pdlb-ex31_1.htm (EX-31.1) — 15KB
• pdlb-ex31_2.htm (EX-31.2) — 15KB
• pdlb-ex32_1.htm (EX-32.1) — 9KB
• pdlb-ex32_2.htm (EX-32.2) — 9KB
• pdlb-ex97_1.htm (EX-97.1) — 45KB
• 0000950170-24-033436.txt (&nbsp;) — 32446KB
• pdlb-20231231.xsd (EX-101.SCH) — 2761KB
• pdlb-20231231_htm.xml (XML) — 7996KB

Business

Item 1. Business 1

Risk Factors

Item 1A. Risk Factors 29

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 45

Cybersecurity

Item 1C. Cybersecurity 45

Properties

Item 2. Properties 46

Legal Proceedings

Item 3. Legal Proceedings 47

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 47 PART II 48

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 48

Reserved

Item 6. Reserved 48

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 49

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 68

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 69

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 117

Controls and Procedures

Item 9A. Controls and Procedures 117

Other Information

Item 9B. Other Information 117

Disclosure Regarding Foreign Jurisdictions that Prevent Inspection

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 117 PART III 118

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 118

Executive Compensation

Item 11. Executive Compensation 118

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 118

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 118

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 118 PART IV 118

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 118

Form 10-K Summary

Item 16. Form 10-K Summary 121 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This annual report contains forward-looking statements, which can be identified by the use of words such as "estimate," "project," "intend," "anticipate," "assume," "plan," "seek," "expect," "will," "may," "should," "indicate," "would," "believe," "contemplate," "continue," "target" and words of similar meaning. These forward-looking statements include, but are not limited to: estimates of the risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the scope, duration and severity of rising interest rate and its effects on our business and operations, our customers, including their ability to make timely payments on loans, our service providers, and on the economy and financial markets in general; changes in consumer spending, borrowing and savings habits; general economic conditions, either nationally or in the market areas, that are worse than expected; the Company's ability to manage market risk, credit risk and operational risk in the current economic environment; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the

Business

Item 1. Business Ponce Financial Group, Inc. 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 is authorized to pursue other business activities permitted by applicable laws and regulations for savings and loan holding companies, which may include the acquisition of banking and financial services companies. The Company's cash flow is dependent on earnings from investments and any dividends received from Ponce Bank. Ponce Financial Group, Inc. does not own nor lease any property, but instead uses the premises, equipment and furniture of Ponce Bank. At the present time, the Company employs only persons who are officers of Ponce Bank to serve as officers of Ponce Financial Group, Inc. It uses the support staff of Ponce Bank from time to time. These persons are not separately compensated by Ponce Financial Group, Inc. Ponce Financial Group, Inc. may hire additional employees, as appropriate, to the extent it so determines in the future. The Company's executive office is located at 2244 Westchester Avenue, Bronx, New York 10462, and the telephone number at that address is (718) 931-9000. Available Information Under Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), Ponce Financial Group, Inc. is required to file annual, quarterly, and current reports, proxy statements and other information with the Securities and Exchange Commission ("SEC"). The Company electronically files its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and other reports as required with the SEC. The SEC website, www.sec.gov, provides access to all Company filings which have been filed electronically. Additionally, the Company's SEC filings and additional shareholders' information are avai

properties

properties 342,343 17.81 % 308,043 20.19 % 239,691 18.13 % 218,929 18.68 % 207,225 21.45 % Construction and land 503,925 26.22 % 185,018 12.13 % 134,651 10.19 % 105,858 9.03 % 99,309 10.28 % Total mortgage loans 1,892,827 98.50 % 1,466,574 96.12 % 1,136,893 86.00 % 1,050,589 89.64 % 953,988 98.75 % Nonmortgage loans: Business loans (1) 19,779 1.03 % 39,965 2.62 % 150,512 11.38 % 94,947 8.10 % 10,877 1.13 % Consumer loans (2) 8,966 0.47 % 19,129 1.26 % 34,693 2.62 % 26,517 2.26 % 1,231 0.12 % Total nonmortgage loans 28,745 1.50 % 59,094 3.88 % 185,205 14.00 % 121,464 10.36 % 12,108 1.25 % Total loans, gross 1,921,572 100.00 % 1,525,668 100.00 % 1,322,098 100.00 % 1,172,053 100.00 % 966,096 100.00 % Net deferred loan origination costs 468 2,051 (668 ) 1,457 1,970 Allowance for loan losses (26,154 ) (34,592 ) (16,352 ) (14,870 ) (12,329 ) Loans receivable, net $ 1,895,886 $ 1,493,127 $ 1,305,078 $ 1,158,640 $ 955,737 (1) As of December 31, 2023, 2022, 2021, 2020 and 2019, business loans include $1.0 million, $20.0 million, $136.8 million, $85.3 million and $0.0 million, respectively, of SBA Paycheck Protection Program ("PPP") loans. (2) As of December 31, 2023, 2022, 2021, 2020 and 2019, consumer loans include $8.0 million, $18.2 million, $33.9 million, $25.5 million and $0.0 million, respectively, of microloans that had originated by Grain. As of November 2023, these loans are now serviced by the Bank. 4 Loan Products Offered by the Bank. The following table provides a breakdown of the Bank's loan portfolio by product type and principal balance outstanding at December 31, 2023, excluding mortgage loans held for sale. At December 31, 2023 Loan Type # of Loans Principal Balanc

View Full Filing

View this 10-K filing on SEC EDGAR