Ponce Financial Group, Inc. · NASDAQ:PDLB
Ponce Financial — Janney Montgomery Scott CEO Forum (January 2024)
37 slides from Ponce Financial's conference presentation, Jan 30, 2024
Slide 1: Ponce Financial Group - Janney Montgomery Scott CEO Forum
Ponce Financial Group, Inc. (NASADQ:PDLB) Janney Montgomery scott - ceo forum January 31, 2023 Exhibit 99.1
Slide 2: Forward Looking 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 Private Securities Litigatio
Slide 3: Executive Management Team
Ponce Financial Group, Inc. Executive Management Team President & CEO Carlos P. Naudon Xx Executive Chairman of the Board Steven A. Tsavaris Chief Financial Officer Sergio Vaccaro Chief Operating Officer Luis Gonzalez Jr. Chief Investor Relations Officer Frank Perez 1 Chief Investor Relations Office
Slide 4: Company Overview
TICKER NASDAQ: PDLB Established 1960 Headquarters Bronx, NY Branches 13 full-service branches and 6 mortgage loan offices Total Assets $2.751 billion (as of 12/31/2023) Total Loans $1.922 billion (as of 12/31/2023) Total Deposits $1.508 billion (as of 12/31/2023) TBV Per Common Share* $11.20 (as of
Slide 5: 4Q 2023 Highlights
4Q 2023 HIGHLIGHTS 3 Net income of $0.5 million, or $0.02 per diluted share for the three months ended December 31, 2023, as compared to net income of $2.6 million, or $0.12 per diluted share for the three months ended September 30, 2023 and net loss of ($9.2) million, or ($0.40) per diluted share f
Slide 6: Full Year 2023 Highlights
FULL YEAR 2023 HIGHLIGHTS (Compared to 2022) 4 Net income of $3.4 million, or $0.15 per diluted share for the year ended December 31, 2023, as compared to a net loss of ($30.0) million, or ($1.32) per diluted share for the year ended December 31, 2022. Net interest income for the year ended December
Slide 7: 4Q 2023 Highlights
4Q 2023 HIGHLIGHTS 5 Cash and equivalents were $139.2 million as of December 31, 2023, increased $84.8 million, or 156.05%, from December 31, 2022, as we decided to keep ample sources of liquidity at hand while taking advantage of the positive spread between our interest bearing overnight deposits a
Slide 8: Company Vision
PRODUCTS & SERVICES Entrance to new markets Expand real estate investor loan programs Launch of project “:easy” lower-cost relationship deposits TECHNOLOGY & INNOVATION Maximize efficiencies and effectiveness Expand distribution channels Enhance customer experience HIGH-PERFORMING WORKFORCE Refine p
Slide 9: Path to Conversion and Business Strategy
1960-2015 2015-2022 2022-Present Business Strategy 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 Mutual Bank Carlos P. Naudo
Slide 10: 2023 Highlights
Repurchased 1,235,000 shares or 5% of the Company’s issued and outstanding shares at the time the plan was implemented. Received a $3.7 million grant from the U.S. Treasury as part of the Community Development Financial Institutions Equitable Recovery Program. Awarded a $0.5 million grant from the C
Slide 11: Digital Adaptation
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, and loan underwriting. Co
Slide 12: Minority Depository Institution
Ponce Bank is a Minority Depository Institution (MDI) serving minority, low- or moderate-income (LMI), and rural communities at a higher rate than mainstream banks. Ponce Bank is known as a “mission-driven bank” because of the role it plays in transforming the lives of underserved citizens and commu
Slide 13: Community Development Financial Institution
Ponce Bank is also a Community Development Financial Institution (CDFI) playing an important role in generating economic growth and opportunity in some of our most distressed communities. Ponce Bank offers tailored resources and innovative programs that invest federal dollars alongside private secto
Slide 14: Gross Loans
GROSS LOANS As of September 30, 2023, and December 31, 2022, business loans include $1.1 million and $20.0 million, respectively, of SBA Paycheck Protection Program. As of September 30, 2023, and December 31, 2022, consumer loans include $9.3 million and $18.2 million of microloans originated by Gra
Slide 15: Loan Mix
LOAN MIX September 30, 2023 December 31, 2022 13
Slide 16: Loan Risk Ratings/Past Due Summary
Risk Ratings Past Dues LOAN RISK RATINGS/PAST DUE SUMMARY 14
Slide 17: Loan Growth
LOAN GROWTH 2,000,000 ~ 1,787,607 1,800,000 ~ - 1,493,127 1,600,000 ~ 4 9h, 1,305,078 g lo 305, 1,400,000 ~ GR \0 99 $ 4 Cr 1,158,640 E200, 000) ¢ 7 955,737 y 918,509 1,000,000 768,703 800,000 600,000 ~ 400,000 ~ 2017 2018 2019 2020 2021 2022
Slide 18: Investment Portfolio
Comprised of FHLMC, FNMA, and GNMA issued securities. Note: Total gross unrealized losses were primarily attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities. INVESTMENT PORTFOLIO 16
Slide 19: Investment Portfolio Mix
September 30, 2023 December 31, 2022 INVESTMENT PORTFOLIO MIX 17
Slide 20: Investment Portfolio - Contractual Maturities
INVESTMENT PORTFOLIO - CONTRACTUAL MATURITIES 18
Slide 21: Deposit Mix
DEPOSIT MIX Increase/(Decrease) Increase/(Decrease September 30,2023 December 31,2022 $ % tn thousands) Demand $ 265862 § 2899 § (28287) “8.44 Scheduled Maturities of CDs Interest- bearing deposits: (in thousands) NOW/IOLA accounts 2259 24349 $ (1830) -75%| 2023 $ 203,736 Money market accounts 37050
Slide 22: Deposit Mix
September 30, 2023 December 31, 2022 DEPOSIT MIX 20
Slide 23: FHLBNY Advances
Interest expense for the three months ended September 30, 2023, and 2022 was $7.0 million and $1.5 million, respectively. Interest expense for the nine months ended September 30, 2023, and 2022 was $17.6 million and $2.5 million, respectively. FHLBNY – eligible collateral of approximately $853.6 mil
Slide 24: Results of Operations
RESULTS OF OPERATIONS Three Months Ended September [Nine Months Ended September (dollars in thousands) Actual Change (dollars in thousands) Actual Change 2023 2022 = Amount Perecent 2023 2022 Amount Perecent Interest and dividend income $33506 $ 21634 $ 11872 54.9%) Interest and dividend income $909
Slide 25: Interest and Dividend Income
INTEREST AND DIVIDEND INCOME 23
Slide 26: Interest Expense
INTEREST EXPENSE Three Months Ended September Nine Months Ended September (dollrsin thousands) Actual Change (dollarsin thousends) Actual Change 2023 2022 Amount Perecent 2023 2022 Amount Perecent Certificates of deposit $ 4362 $ 855 §$ 3507 40.2% Certificates of deposit $ 1468 $ 2361 $ 907 385.7% M
Slide 27: Non-Interest Income
NON-INTEREST INCOME Three Months Ended Septem ber Nine Months Ended Septem ber (dollars in thousands) Actual Change (dolar in thousands) Actual Change 2023 = 2022 Amount Perecent 2023 = 2022 Amount Perecent Service charges and fees $ 56 $ 464 § 52 112% Service charges and fees $ 1488 $ 149 § 89 03%
Slide 28: Non-Interest Expense
NON-INTEREST EXPENSE Three Months Ended September [Nine Months Ended September (dollars in thousands) Actual Change (dollars in thousands) Actual Change 2023 2022 ‘Amount Perecent 2023 2022 Amount Perecent Compensation and benefits $ 7506 $ 7317 $ ri) 25% Compensation and benefits $ 22437 $ 214B $ 1
Slide 29: Basic/Diluted Earnings Per Share
BASIC/DILUTED EARNINGS PER SHARE 27
Slide 30: Regulatory Capital Ratios
Well-capitalized for future opportunities REGULATORY CAPITAL RATIOS 28
Slide 31: Peer Analysis - Balance Sheet
PEER ANALYSIS – BALANCE SHEET 29 Source: S&P Capital IQ. Peer group: Fully Converted Mutual Holding Companies in the last ten years with assets between $1 - $5 billion.
Slide 32: Peer Analysis - Profitability
PEER ANALYSIS - PROFITABILITY 30 Source: S&P Capital IQ. Peer group: Fully Converted Mutual Holding Companies in the last ten years with assets between $1 - $5 billion.
Slide 33: Peer Group
Source: S&P Capital IQ. Peer group: Fully Converted Mutual Holding Companies in the last ten years with assets between $1 - $5 billion. PEER GROUP 31
Slide 34: Ownership Summary
September 30, 2023 OWNERSHIP SUMMARY 32 ESOP, Ponce De Leon Foundation, and Individuals /Insiders hold 20.9% of total shares outstanding . Market Value as of January 30, 2023 Source: S&P Capital IQ..
Slide 35: Top Institutional Holders
TOP 25 INSTITUTIONAL HOLDERS 33 Source: S&P Capital IQ..
Slide 36: Non-GAAP Reconciliation to GAAP Financial Measures
NON-GAAP RECONCILIATION TO GAAP FINANCIAL MEASURES 34
Slide 37: Contact Investor Relations
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
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