Business
Ponce Financial Group, Inc. Issues $225 million of Preferred Stock to the U.S. Department of Treasury Under the Emergency Capital Investment Program
NEW YORK, June 09, 2022 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc. (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank, announced that the
About this update from Ponce Financial Group, Inc.
[{"type":"text","content":"NEW YORK, June 09, 2022 (GLOBE NEWSWIRE) -- Ponce Financial Group, Inc. (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank, announced that the Company completed a private placement of $225 million of Senior Non-Cumulative Perpetual Preferred Stock, Series A (the “Preferred Stock”), to the U.S. Department of the Treasury (“Treasury”) pursuant to the Emergency Capital Investment Program (“ECIP”) on June 7, 2022. The ECIP investment by the Treasury is part of a program to invest over $8.7 billion into Community Development Financial Institution (“CDFI”) or Minority Depository Institution (“MDI”), of which Ponce Bank is both. The ECIP is intended to incentivize CDFIs and MDIs to provide loans, grants, and forbearance to small businesses, minority-owned businesses, and consumers in low-income and underserved communities, that may have been disproportionately impacted by the economic effects of the COVID-19 pandemic. Dividends on the Preferred Stock are payable in cash quarterly at an annual rate that is dependent on the Company’s investment of the proceeds within Target Communities in certain types of loans that are consistent with the types of loans that the Company has historically originated. The initial dividend rate is zero percent for the first two years after issuance, and thereafter the dividend will be between the floor dividend rate of 0.50% and the ceiling dividend rate of 2.00%. The dividend rate after the initial two years will be reset annually until the tenth anniversary of the issuance of the Preferred Stock and will be based upon the annual change in actual qualified lending relative to a baseline level of qualified lending, expressed as a percentage of the aggregate liquidation amount of the Preferred Stock. The final reset will be based upon the average annual increase in qualified lending over the nine-year period preceding the last reset date, expressed as a percentage of the aggregate liquidation amount. The Preferred Stock has an aggregate liquidation amount of $225 million and is redeemable in whole, or in part, at the option of the Company on any dividend payment date on or after June 15, 2027, subject to certain limitations and exceptions as set forth in the Articles Supplementary to the Company’s charter setting forth the terms of the Preferred Stock. President and Chief Executive Officer’s ...