Ponce Financial Group, Inc. · NASDAQ:PDLB
Ponce Financial — Q3 2023 Earnings Presentation
30 slides from Ponce Financial's earnings presentation, Nov 8, 2023
Slide 1: Ponce Financial Group Q3 2023 Earnings Presentation
Carlos P. Naudon President & Chief Executive Officer Frank Perez EVP & Chief Investor Relations Officer Steven A. Tsavaris Executive Chairman of the Board Sergio Vaccaro EVP & Chief Financial Officer EXHIBIT 99.2 NASDAQ: PDLB
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: Company Strengths
Company Strengths Second step mutual conversion and ECIP Perpetual Preferred stock provides a meaningful amount of excess capital to deploy Strong core organic loan growth MDI and CDFI status provides access to lower-cost funding opportunities – will leverage to drive loan growth Corporate structure
Slide 4: Company overview and key facts
Ticker NASDAQ: PDLB Established 1960 Headquarters Bronx, NY Branches 13 full-service branches and 6 mortgage loan offices Total Assets $2.624 billion (as of 9/30/23) Total Loans $1.814 billion (as of 9/30/23) Total Deposits $1.401 billion (as of 9/30/23) TBV Per Common Share* $10.99 (as of 9/30/23)
Slide 5: Franchise Evolution
Franchise Evolution Mutual Bank Path to Conversion Public Ownership Established 63-year-old institution focused on residential and nonresidential lending Headquartered in Bronx, NY with branch presence in Brooklyn, Queens, New Jersey, and Manhattan Grew assets from de novo to $700 million Carlos P.
Slide 6: Growth Drivers
Growth Drivers Our Vision Low-Cost, Excess Capital - Ready to Deploy Robust capital position, inclusive of $225 million in ECIP funds provided by the U.S. Treasury Focused on growing loan book – Expanding CRE & Non-Residential Loans Stay with successful clients as they grow MDI and CDFI Status; Miss
Slide 7: Community Development Financial Institution
The CDFI Program offers both Financial Assistance and Technical Assistance awards to CDFIs. These competitive awards support and enhance the ability of the Company to meet the needs of the communities they serve. Community Development Financial Institution The Company is designated a CDFI As of June
Slide 8: Minority Depository Institution
As an MDI the Bank can provide financial services to and for underserved communities as designated by the federal government including African, Asian, Hispanic, and Native Americans. MDI allows the Bank to provide many benefits to low-to-moderate income communities, including access to credit, value
Slide 9: Environmental, Social, & Governance
Environmental, Social, & Governance Ponce Bank’s Inaugural Environmental, Social & Governance Fact Sheet is now available on www.poncebank.com 100% of Board of Directors and Executive Management is either native of or second generation of immigrants Together with the Foundation we have donated over
Slide 10: Community partners and charitable organizations
American Cancer Society / Morris Heights Health Center / Urban Youth Alliance Int / Castle Hill Little League / Iglesia Nuevo Amanecer La Hermosa / Phipps Neighborhood / InHisName United / YMCA of Greater NY / Washington Heights BID / Unique People Services / Hostos Community College Foundation / Ne
Slide 11: Technology Transformation
Technology Transformation The Company is now in the latter stages of its multi-faceted effort to upgrade infrastructure, adopt digital banking services and restructure the retail business model Salesforce deployment across retail services, lending processes, back-office operations, digital banking,
Slide 12: Q3 2023 results
Q3 2023 Q3 2022 Net interest income $16.5M $17.6M Net (loss) income $2.6M ($14.7)M Net interest margin 2.58% 3.59%M Net interest rate spread 1.58% 3.08% Efficiency ratio 78.11% 132.46% Net income of $2.6 million or $0.12 per diluted share, for the three months ended September 30, 2023, as compared t
Slide 13: Price-to-Tangible Book Value
On P/TBV basis Ponce trades in line (under 100%) with its peer group. This provides the Company the opportunity to repurchase its stock at a discount and increase shareholder value. On August 16, 2023, PDLB announced that it had completed repurchasing 1,235,000 shares of PDLB’s common stock at a cos
Slide 14: Price Performance
(as November 8, 2023) Over the past twelve months, the share price change of PDLB (20.63%) is in line with the S&P United States BMI Banks Index 19.56%) and the S&P 500 Bank Index (18.09%) and is considerably less than the NASDAQ Bank Index (28.50%) while the Russell 3000, which the Company is a par
Slide 15: Capital Ratios
FORTRESS Capital Ratios 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 9/30/2023 12/31/2022 @ Minimum Well-Capitalized Total Capital to Risk- Weighted Assets Tier 1 Capital to Risk- Weighted Assets Common Equity Tier 1 Capital Ratio Tier 1 Capital to Total Asssets 13 & Ponce Financial Group
Slide 16: Strategies and Focus
Strategies and Focus Enhance our multifamily and nonresidential loans. Leverage MDI/CDFI status. Build existing community lending programs. Improve core deposits, with an emphasis on low-cost commercial demand deposits and add non-core funding sources. Manage credit risk to maintain a low level of n
Slide 17: Appendix
Appendix
Slide 18: Balance Sheet
Balance Sheet Source: Peer Group S&P Capital IQ Peer Average: BFLY, ESSA, GCBC, HONE, NECB, PBHC, PBFS, RKBK, WNEB Appx. 1 (1) (1) Ponce Financial Group Inc. & its predecessor
Slide 19: Asset Quality
Net loans receivable were $1.8 billion as of September 30, 2023, an increase of $395.0 million, or 28.4%, from September 30, 2022. Non-performing assets decreased $4.0 million, or 15.7% to $21.4 million as of September 30, 2023, from $25.4 million as of September 30, 2022. Non-performing loans decre
Slide 20: Total Loans
Total Loans September 30, December 31, 202: (in thousands) Mortgage loans: 1-4 Family residential Tnvestor-Owned $ 347,082 $ 343,968 Owner-Occupied 151,866 134,878 Multifamily residential 553,694 494.667 Nonresidential properties 321,472 308,043 Construction and land 411,383 185,018 Total mortgage l
Slide 21: Total Securities
Total Securities 30, 2023 Gross Gross Amortized Unrealized —_ Unrealized Cost Gains Losses Fair Value (in thousands) Available-for-Sale Securities: U.S. Government Bonds S$ 2.989 $ — $ (276) $ 2,713 Corporate Bonds 25,799 = (2,609) 23,190 Mortgage-Backed Securities: Cc ized fe) a) 40.646 — (7.657) 3
Slide 22: Total Deposits
Total Deposits September 30, December 31, 2023 2022 (ia thousands) Demand $265,862 $ 289,149 Interest-bearing deposits: NOWAOLA accounts 22,519 24349 Money market accounts 370,500 236,143 Reciprocal deposits 82,670 114,049 Savings accounts 117,870 130,432 Total NOW, money market, reciprocal and savi
Slide 23: Grain Technologies, Inc.
Grain Technologies, Inc. Appx. 6
Slide 24: Average Assets
Average Assets Average Average Outstanding Average Outstanding Average Balance Interest_ Yield/Rate © Balance Interest_ Yield/Rate © (Dollars in thousands) Interest-earning assets: Loans © $1,777,585 25,276 5.64% $1,379,029 $ 17,058 Securities © 599,573 5.821 3.85% 492,337 4,153 Other © © 169.570 2.
Slide 25: Regulatory Capital Ratios
Regulatory Capital Ratios Appx. 9
Slide 26: Share/Book Value Data
Share/Book Value Data Appx. 10
Slide 27: Non-GAAP Reconciliation to GAAP Financial Measures
Non-GAAP Reconciliation to GAAP Financial Measures Appx. 10 Tangible book value per common share (Non-GAAP): Common shares outstanding 23,653,600 Shareholders' equity 485,058,000 Less: Preferred Stock 225,000,000 Tangible common shareholders' equity (Non-GAAP) 260,058,000 Tangible book value per com
Slide 28: PDLB Executive Management
Steven A. Tsavaris Executive Chairman of the Board Frank Perez Chief Investor Relations Officer Carlos P. Naudon President & CEO Sergio Vaccaro CFO Luis Gonzalez Jr. COO PDLB Executive Management Appx. 11
Slide 29: Investor Information
Visit our website : poncebank.com Email requests to : frank.perez@poncebank.net Call investor relations at : (718) 931-9000 Write to : Investor Relations Ponce Financial Group 2244 Westchester Avenue Bronx, New York 10462 Investor Information Appx. 12
Slide 30: Thank you.
Thank you.
Ponce Financial Group — Q3 2023 Earnings Presentation on 6ix