Ponce Financial Group, Inc. · NASDAQ:PDLB
Ponce Financial — Investor Presentation (March 2022)
36 slides from Ponce Financial's investor presentation, Mar 16, 2022
Slide 1: Ponce Financial Group (NASDAQ: PDLB)
Exhibit 99.2 NASDAQ: PDLB Carlos P. Naudon President & CEO Frank Perez Executive Vice President & CFO Steven A. Tsavaris Executive Chairman of the Board
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Privat
Slide 3: Ponce Financial Group
Ponce Financial Group Ponce Financial Group, Inc. (the “Company”), a Maryland corporation, became the holding company of Ponce Bank, a federally chartered stock savings association on January 27, 2022 after successfully completing the conversion and reorganization of Ponce Bank Mutual Holding Compan
Slide 4: Key Strategies and Focus
ey Strategies and Focus Y { Continue to expand our multifamily and nonresidential loans. Continue leveraging our MDI/CDFI status. Community lending programs. Continue to increase core depo commercial demand dept Manage credit risk to maintain a low level of nonperforming assets. Expand our employee
Slide 5: Minority Depository Institution & Community Development Financial Institution
Minority Depository Institution & Community Development Financial Institution We are a Minority Depository Institution (“MDI”) and a Community Development Financial Institution (“CDFI”). We are also an authorized direct lender under the Small Business Administration (“SBA”) program. As an MDI/CDFI a
Slide 6: Vision 2025 and ECIP investment
We are cementing our Vision 2025, our roadmap to acquiring the resources needed to lead efforts to remediate the disparate effects of the COVID-19 pandemic and the wealth and financial gaps present in our communities and similar communities outside the New York City metropolitan area. We have been n
Slide 7: CDFI Banking Industry Peer Group Report
CDFI Banking Industry Peer Group Report As of September 30, 2021 Among the 20 largest CDFI Banks by Assets (168 total), we are: 9th in size 2nd in DLI-HMDA (% of housing lending activities in LMI areas) 6th in % of branches in LMI areas 2nd in housing focus Among the 20 largest CDFI Banks by Loans (
Slide 8: CDBA Peer Scorecard Report
CDBA Peer Scorecard Report As of December 31, 2021 I. OVERVIEW 17th on overall peer group scorecard ranking II. GROWTH RATES 12th on Assets Growth Rate YTD (%) 16th on Loans & Leases Growth Rate YTD (%) 14th on Deposits Growth Rate YTD (%) III. PERFORMANCE 21st on Return on Average Assets (%) 22nd o
Slide 9: Paycheck Protection Program 2020-21
Paycheck Protection Program 2020-21 The Bank originated $86 million of PPP loans in 2020 and $175 million in 2021. PPP loans that meet SBA requirements may be forgiven in certain circumstances, are fully guaranteed by the SBA, and have an initial term of up to five years and earn an interest rate of
Slide 10: Environmental, Social, and Governance Focused Organization
Environmental, Social, and Governance Focused Organization 9
Slide 11: Community Sponsorships and Donations
10 Community Sponsorships and Donations Includes Sponsorships and Donations by the Company and the Ponce De Leon Foundation American Cancer Society / Morris Heights Health Center / Urban Youth Alliance Int / Castle Hill Little League / Iglesia Nuevo Amanecer La Hermosa / Phipps Neighborhood / InHisN
Slide 12: Key Strategic Partnerships
ey Strategic Partnerships salesforce a ——S~ lil ncino LENDERS COOPERATIVE €8 Ponce Financial & once Financia Group € LENDINGFRONT SAVEBETTER el Wd grain a
Slide 13: 2nd Step Conversion and Offering
2nd Step Conversion and Offering We completed the 2nd step conversion from the mutual holding company corporate structure to the stock holding company corporate structure through an offering and exchange of existing shares of PDL Community Bancorp common stock for shares of Ponce Financial Group com
Slide 14: Mortgage World Bankers
Mortgage World Bankers On July 10, 2020, we completed the acquisition of Mortgage World Bankers (“MWB”) for $1.8 million, and as of January 26, 2022 is now operating as a division of Ponce Bank. The primary business of MWB is taking applications from the general public for residential mortgage loans
Slide 15: Mortgage World Bankers Loan Production
Mortgage World Bankers Loan Production 14 * The loan originations are non-brokered. *
Slide 16: Sale Leaseback Transactions
Sale Leaseback Transactions 15
Slide 17: Corporate Headquarters and Office Locations
Corporate Headquarters and Office Locations 16
Slide 18: Balance Sheet at a Glance
Balance Sheet at a Glance 17 * As of December 31, 2021 ** As of January 28, 2022
Slide 19: Strong Growth in Recent Years
Strong Growth in Recent Years 18 * 2016 to 2021 Compound Annual Growth Rate Source: S&P Capital IQ; Company provided documents CAGR* : 17.3% for past 5 years
Slide 20: Relative Stock Performance in 2021
Relative Stock Performance in 2021* 19 * January 2021 to December 2021 Stock Relative Performance Source: S&P Capital IQ
Slide 21: Outstanding Growth for the Year Ended December 31, 2021
Outstanding Growth for the Year Ended December 31, 2021 * Source: S&P Capital IQ Screening criteria includes 1. Primary Industry: Banking, 2. Geography: Northeast, Mid Atlantic, 3. Company Type: Public Company, 4. Company Status: Operating, 5. Total Assets: between $1B and $3B 6. Number of Branches:
Slide 22: Strong Capital Position
Strong Capital Position * Source: S&P Capital IQ Screening criteria includes 1. Primary Industry: Banking, 2. Geography: Northeast, Mid Atlantic, 3. Company Type: Public Company, 4. Company Status: Operating, 5. Total Assets: between $1B and $3B 6. Number of Branches: More than 8. 21
Slide 23: Asset Quality
Asset Quality * Source: S&P Capital IQ Screening criteria includes 1. Primary Industry: Banking, 2. Geography: Northeast, Mid Atlantic, 3. Company Type: Public Company, 4. Company Status: Operating, 5. Total Assets: between $1B and $3B 6. Number of Branches: More than 8. 22
Slide 24: Improving Efficiency
Improving Efficiency Significant improvement in the efficiency ratio Dropped from 86% in 2017 to 61% in 2021 Highlights: 23
Slide 25: Loan Growth
Loan Growth Total Net Loans have grown by $506 million or 63% since end of 2017 and $146 million or 13% in 2021 24
Slide 26: Loans
Loans Total Net Loans: $1.3 billion 25 Majority of portfolio focused on lower-risk multi-family loans with low LTVs Consistent lending strategy Low risk credit culture and business strategy has resulted in superior asset quality through past credit cycles Interest income on loans increased by $13.1
Slide 27: Deposit Growth
Deposit Growth Total deposits increased $491 million or 69% since 2017 and $175 million or 17% in 2021 26
Slide 28: Increase in Low Cost Deposits
Increase in Low Cost Deposits Total Deposits: $1.20 billion Total Deposits: $714 million Increase in non-interest-bearing deposits was a main driver increasing from $103 million as of December 2017 to $275 million as of December 2021 Shift in deposit composition while increasing total deposits Perce
Slide 29: Securities and Funding Composition
Securities and Funding Composition Weighted average coupon yield is 2.04% Increased by 494% since 12/31/2020 Consists primarily of Mortgage Backed Securities Total Securities: $114.3 million Total Funding: $1.33 billion Significant increase in non-interest-bearing deposits Cost of interest-bearing l
Slide 30: Appendix
Appendix
Slide 31: Executive Officers
& Executive Officers Steven A. Tsavaris Carlos P, Naudon Executive Chairman of the Board President, CEO & Director + fist generation Greek-American Frank Perez + native of Puerto Rico + native of Chile : (hier Executive : Director of Ponce Bank Executive Vice President in 1995,became 2015 Chiet Fina
Slide 32: Directors
& Directors James C. Demetriou William Feldman SraeoeTs TEES eeeteener ae eee srerter te Bow of ref the Pc De + ameter ofthe Bardot ets of the Pune eon ‘the President and Chief Executive Officer of First Management 9, property management company located in Astoria, New hasbeen investing n and managi
Slide 33: Directors
& Directors Nick R. Lugo Maria Alvarez native of Puerto Rico + native of Cuba + native of Puerto Rico paetaives aimee ia Directo 2 = ° the the Ponce De Leon Foundation + has been the Executive Director ofthe : the same 12 + an investor crane i, Ine since 2010 located in the New York area and holds t
Slide 34: Peer Group
Peer Group * Source: S&P Capital IQ Screening criteria includes 1. Primary Industry: Banking, 2. Geography: Northeast, Mid Atlantic, 3. Company Type: Public Company, 4. Company Status: Operating, 5. Total Assets: between $1B and $3B 6. Number of Branches: More than 8.
Slide 35: poncebank.com
poncebank.com Email requests to. frank perez@poncebank.net Call investor relations at (718) 931-9000 Write to Investor Relations Bronx, New York 10462
Slide 36: Thank you.
Thank you.
Ponce Financial Group — Investor Presentation (March 2022) on 6ix