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What changed in Ponce Financial Group, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Ponce Financial Group, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+408 added−416 removedSource: 10-K (2025-03-13) vs 10-K (2024-03-19)

Top changes in Ponce Financial Group, Inc.'s 2024 10-K

408 paragraphs added · 416 removed · 307 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

119 edited+27 added−40 removed184 unchanged
Biggest changeAt December 31, 2023 2022 2021 Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans (Dollars in thousands) Mortgage loans: 1-4 family residential Investor-owned $ 4,415 16.89 % 17.89 % $ 3,863 11.16 % 22.54 % $ 3,540 21.65 % 24.01 % Owner-occupied 2,012 7.69 % 7.93 % 1,723 4.98 % 8.84 % 1,178 7.20 % 7.33 % Multifamily residential 4,365 16.69 % 28.65 % 8,021 23.19 % 32.42 % 5,684 34.76 % 26.34 % Nonresidential properties 3,176 12.14 % 17.81 % 2,724 7.87 % 20.19 % 2,165 13.24 % 18.13 % Construction and land 4,807 18.38 % 26.22 % 2,683 7.76 % 12.13 % 2,024 12.38 % 10.19 % Total mortgage loans 18,775 71.79 % 98.50 % 19,014 54.96 % 96.12 % 14,591 89.23 % 86.00 % Nonmortgage loans: Business 531 2.03 % 1.03 % 120 0.35 % 2.62 % 306 1.87 % 11.38 % Consumer 6,848 26.18 % 0.47 % 15,458 44.69 % 1.26 % 1,455 8.90 % 2.62 % Total nonmortgage loans 7,379 28.21 % 1.50 % 15,578 45.04 % 3.88 % 1,761 10.77 % 14.00 % Total $ 26,154 100.00 % 100.00 % $ 34,592 100.00 % 100.00 % $ 16,352 100.00 % 100.00 % At December 31, 2020 2019 Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans (Dollars in thousands) Mortgage loans: 1-4 family residential Investor-owned $ 3,850 25.90 % 27.27 % $ 3,503 28.42 % 31.60 % Owner-occupied 1,260 8.47 % 8.43 % 1,067 8.65 % 9.52 % Multifamily residential 5,214 35.06 % 26.23 % 3,865 31.35 % 25.90 % Nonresidential properties 2,194 14.75 % 18.68 % 1,849 15.00 % 21.45 % Construction and land 1,820 12.24 % 9.03 % 1,782 14.45 % 10.28 % Total mortgage loans 14,338 96.42 % 89.64 % 12,066 97.87 % 98.75 % Nonmortgage loans: Business 254 1.71 % 8.10 % 254 2.06 % 1.13 % Consumer 278 1.87 % 2.26 % 9 0.07 % 0.12 % Total nonmortgage loans 532 3.58 % 10.36 % 263 2.13 % 1.25 % Total $ 14,870 100.00 % 100.00 % $ 12,329 100.00 % 100.00 % At December 31, 2023, allowance for credit losses represented 1.36% of total gross loans and 205.52% of nonperforming loans compared to 2.27% of total gross loans and 252.33% of nonperforming loans at December 31, 2022.
Biggest changeAt December 31, 2024 2023 2022 Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans (Dollars in thousands) Mortgage loans: 1-4 family residential Investor-owned $ 4,148 18.43 % 14.30 % $ 4,415 16.89 % 17.89 % $ 3,863 11.16 % 22.54 % Owner-occupied 1,784 7.93 % 6.17 % 2,012 7.69 % 7.93 % 1,723 4.98 % 8.84 % Multifamily residential 5,004 22.24 % 29.04 % 4,365 16.69 % 28.65 % 8,021 23.19 % 32.42 % Nonresidential properties 2,697 11.99 % 16.89 % 3,176 12.14 % 17.81 % 2,724 7.87 % 20.19 % Construction and land 7,710 34.26 % 31.79 % 4,807 18.38 % 26.22 % 2,683 7.76 % 12.13 % Total mortgage loans 21,343 94.85 % 98.19 % 18,775 71.79 % 98.50 % 19,014 54.96 % 96.12 % Nonmortgage loans: Business 1,113 4.95 % 1.77 % 531 2.03 % 1.03 % 120 0.35 % 2.62 % Consumer 46 0.20 % 0.04 % 6,848 26.18 % 0.47 % 15,458 44.69 % 1.26 % Total nonmortgage loans 1,159 5.15 % 1.81 % 7,379 28.21 % 1.50 % 15,578 45.04 % 3.88 % Total $ 22,502 100.00 % 100.00 % $ 26,154 100.00 % 100.00 % $ 34,592 100.00 % 100.00 % At December 31, 2021 2020 Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Allowance for Credit Losses Percent of Allowance in Each Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans (Dollars in thousands) Mortgage loans: 1-4 family residential Investor-owned $ 3,540 21.65 % 24.01 % $ 3,850 25.90 % 27.27 % Owner-occupied 1,178 7.20 % 7.33 % 1,260 8.47 % 8.43 % Multifamily residential 5,684 34.76 % 26.34 % 5,214 35.06 % 26.23 % Nonresidential properties 2,165 13.24 % 18.13 % 2,194 14.75 % 18.68 % Construction and land 2,024 12.38 % 10.19 % 1,820 12.24 % 9.03 % Total mortgage loans 14,591 89.23 % 86.00 % 14,338 96.42 % 89.64 % Nonmortgage loans: Business 306 1.87 % 11.38 % 254 1.71 % 8.10 % Consumer 1,455 8.90 % 2.62 % 278 1.87 % 2.26 % Total nonmortgage loans 1,761 10.77 % 14.00 % 532 3.58 % 10.36 % Total $ 16,352 100.00 % 100.00 % $ 14,870 100.00 % 100.00 % At December 31, 2024, ACL represented 0.97% of total gross loans and 97.98% of nonperforming loans compared to 1.36% of total gross loans and 205.52% of nonperforming loans at December 31, 2023.
The Company’s business is conducted through the administrative office and 13 full service banking offices and 5 mortgage loan offices. The banking offices are located in New York City – the Bronx (4 branches), Queens (3 branches), Brooklyn (3 branches), Manhattan (2 branches) and Union City (1 branch), New Jersey.
The Company’s business is conducted through the administrative office and 13 full service banking and 5 mortgage loan offices. The banking offices are located in New York City – the Bronx (4 branches), Queens (3 branches), Brooklyn (3 branches), Manhattan (2 branches) and Union City (1 branch), New Jersey.
The Bank’s principal lending activity is originating real estate-secured loans, including one-to-four family investor-owned and owner-occupied residential, multifamily residential, nonresidential property, construction and land loans, and commercial and industrial (“C&I”) business loans and consumer loans.
The Bank’s principal lending activity is originating real estate-secured loans, including one-to-four family investor-owned and owner-occupied residential loans, multifamily residential loans, nonresidential property loans, construction and land loans, and commercial and industrial (“C&I”) business loans and consumer loans.
The primary concern in this type of lending is the borrower’s creditworthiness and the viability and cash flow potential of the property. Payments on loans secured by income-producing properties often depend on successful operation and management of the 6 properties.
The primary concern in this type of lending is the borrower’s creditworthiness and the viability and cash flow potential of 6 the property. Payments on loans secured by income-producing properties often depend on successful operation and management of the properties.
Qualified Thrift Lender Test . As a federal savings association, the Bank must satisfy the qualified thrift lender, or “QTL,” test. Under the QTL test, the Bank must maintain at least 65% of its “portfolio assets” in “qualified thrift investments” (primarily residential mortgages and related investments, including mortgage-backed securities) in at least nine months of every 12-month period.
As a federal savings association, the Bank must satisfy the qualified thrift lender, or “QTL,” test. Under the QTL test, the Bank must maintain at least 65% of its “portfolio assets” in “qualified thrift investments” (primarily residential mortgages and related investments, including mortgage-backed securities) in at least nine months of every 12-month period.
The operations of the Bank are subject to the: • Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; • Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services; • Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; • The USA PATRIOT Act, which requires financial institutions to, among other things, establish broadened anti-money laundering compliance programs, and due diligence policies and controls to ensure the detection and reporting of money laundering.
The operations of the Bank are subject to the: • Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; • Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services; • Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; 25 • The USA PATRIOT Act, which requires financial institutions to, among other things, establish broadened anti-money laundering compliance programs, and due diligence policies and controls to ensure the detection and reporting of money laundering.
The regulatory guidance also states that a savings and loan holding company should inform Federal Reserve Bank supervisory staff prior to redeeming or repurchasing common stock or perpetual preferred stock if the savings and loan holding company is experiencing financial weaknesses or the repurchase or redemption would result in a net reduction, at the end of a quarter, in the amount of such equity instruments outstanding compared with 27 the beginning of the quarter in which the redemption or repurchase occurred.
The regulatory guidance also states that a savings and loan holding company should inform Federal Reserve Bank supervisory staff prior to redeeming or repurchasing common stock or perpetual preferred stock if the savings and loan holding company is experiencing financial weaknesses or the repurchase or redemption would result in a net reduction, at the end of a quarter, in the amount of such equity instruments outstanding compared with the beginning of the quarter in which the redemption or repurchase occurred.
Assessments for most institutions are based on financial measures and supervisory ratings derived from statistical modeling estimating the probability of failure within three years. The FDIC has authority to increase insurance assessments. Any significant increases would have an adverse effect on the operating expenses and results of operations of the Bank.
Assessments for most institutions are based on financial measures and supervisory ratings derived from statistical modeling estimating the probability of failure within three years. 24 The FDIC has authority to increase insurance assessments. Any significant increases would have an adverse effect on the operating expenses and results of operations of the Bank.
The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions by the OCC, as well as other federal regulatory agencies and the Department of Justice. 24 The Community Reinvestment Act requires all institutions insured by the FDIC to publicly disclose their rating.
The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions by the OCC, as well as other federal regulatory agencies and the Department of Justice. The Community Reinvestment Act requires all institutions insured by the FDIC to publicly disclose their rating.
The CFPB has broad rule-making authority for a wide range of consumer protection laws 26 that apply to all banks and savings institutions, such as Ponce Bank, including the authority to prohibit “unfair, deceptive or abusive” acts and practices. Holding Company Regulations General .
The CFPB has broad rule-making authority for a wide range of consumer protection laws that apply to all banks and savings institutions, such as Ponce Bank, including the authority to prohibit “unfair, deceptive or abusive” acts and practices. Holding Company Regulations General .
The Bank may also establish, subject to specified investment limits, service corporation subsidiaries that may engage in certain activities not otherwise permissible for Ponce Bank, including real estate investment and securities and insurance brokerage. Examinations and Assessments . The Bank is primarily supervised by the OCC.
The Bank may also establish, subject to specified investment limits, service corporation subsidiaries that may engage in certain activities not otherwise permissible for Ponce Bank, including real estate investment and securities and insurance brokerage. 21 Examinations and Assessments . The Bank is primarily supervised by the OCC.
This represents the Bank’s largest market share in a county-level area. The Bank continues to work to improve its market position by expanding its brand within its current market area, and building its capacity to provide more products and services to its customers. 3 Lending Activities General .
This represents the Bank’s largest market share in a county-level area. The Bank continues to work to improve its market position by expanding its brand within its current market area, and building its capacity to provide more products and services to its customers. Lending Activities General .
See Item 1A.Risk 7 Factors - The performance of our multi-family real estate loans could be adversely impacted by law or regulation ‎relating to rent control and rent stabilization.
See Item 1A.Risk Factors - The performance of our multi-family real estate loans could be adversely impacted by law or regulation ‎relating to rent control and rent stabilization.
Failure to implement such a plan can result in further enforcement action, including the issuance of a cease and desist order or the imposition of civil money penalties. Prompt Corrective Action Regulations .
Failure to implement such a plan can result in further enforcement action, including the issuance of a cease and desist order or the imposition of civil money penalties. 22 Prompt Corrective Action Regulations .
The Company believes that all of its team members should be treated with respect and equality, regardless of gender, ethnicity, sexual orientation, gender identity, religious beliefs, or other characteristics.
The Company also believes that all of its team members should be treated with respect and equality, regardless of gender, ethnicity, sexual orientation, gender identity, religious beliefs, or other characteristics.
The Climate Rules build upon earlier SEC climate risk disclosure guidance and in many ‎ways draws upon recommendations by the Task Force on Climate-Related Financial ‎Disclosures, as well as accounting and reporting standards from the ‎Greenhouse Gas Protocol. The Climate Rules will materially ‎increase requirements associated with tracking and quantification of GHGs, but also ‎impose further layers of disclosure obligations.
The Climate Rules build upon earlier SEC climate risk disclosure guidance and in many ‎ways draws upon recommendations by the Task Force on Climate-Related Financial ‎Disclosures, as well as accounting and reporting standards from the ‎Greenhouse Gas Protocol. The Climate Rules would materially ‎increase requirements associated with tracking and quantification of GHGs, but also ‎impose further layers of disclosure obligations.
The Dodd-Frank Act made noncompliance with the QTL test subject to agency enforcement action for a violation of law. At December 31, 2023, the Bank satisfied the QTL test. Capital Distributions . Federal regulations govern capital distributions by a federal savings association, which include cash dividends, stock repurchases and other transactions charged to the savings association’s capital account.
The Dodd-Frank Act made noncompliance with the QTL test subject to agency enforcement action for a violation of law. At December 31, 2024, the Bank satisfied the QTL test. Capital Distributions . Federal regulations govern capital distributions by a federal savings association, which include cash dividends, stock repurchases and other transactions charged to the savings association’s capital account.
The capital conservation buffer requirement is 2.5% of risk-weighted assets. At December 31, 2023 and 2022, the Bank’s capital exceeded all applicable requirements. See Note 16, “Regulatory Capital Requirements” of the Notes to the accompanying Consolidated Financial Statements for additional information. Loans-to-One Borrower .
The capital conservation buffer requirement is 2.5% of risk-weighted assets. At December 31, 2024 and 2023, the Bank’s capital exceeded all applicable requirements. See Note 16, “Regulatory Capital Requirements” of the Notes to the accompanying Consolidated Financial Statements for additional information. Loans-to-One Borrower .
Also included in Tier 2 capital is the allowance for loan and lease losses limited to a maximum of 1.25% of risk-weighted assets and, for institutions that have exercised an opt-out election regarding the treatment of Accumulated Other Comprehensive Income (“AOCI”), up to 45% of net unrealized gains on available-for-sale equity securities with readily determinable fair market values.
Also included in Tier 2 capital is the allowance for credit losses limited to a maximum of 1.25% of risk-weighted assets and, for institutions that have exercised an opt-out election regarding the treatment of Accumulated Other Comprehensive Income (“AOCI”), up to 45% of net unrealized gains on available-for-sale equity securities with readily determinable fair market values.
Current prepayment speeds determine whether prepayment estimates require modification that could cause amortization or accretion adjustments. Portfolio Maturities and Yields . The composition and maturities of the investment securities portfolio at December 31, 2023 are summarized in the following table.
Current prepayment speeds determine whether prepayment estimates require modification that could cause amortization or accretion adjustments. Portfolio Maturities and Yields . The composition and maturities of the investment securities portfolio at December 31, 2024 are summarized in the following table.
As of December 31, 2023, the Bank was in compliance with the loans-to-one borrower limitations. Standards for Safety and Soundness . Federal law requires each federal banking agency to prescribe certain standards for all insured depository institutions.
As of December 31, 2024, the Bank was in compliance with the loans-to-one borrower limitations. Standards for Safety and Soundness . Federal law requires each federal banking agency to prescribe certain standards for all insured depository institutions.
Additionally, the Company faces an increasing level of competition from non-core financial service providers that do not necessarily maintain a physical presence in the Bank’s market area, such as Radius Bank, Quicken Loans, Freedom Mortgage and many internet financial service providers. The amount of competition facing the Company is extensive and can negatively impact its growth.
Additionally, the Company faces an increasing level of competition from non-core financial service providers that do not necessarily maintain a physical presence in the Bank’s market area, such as LendingClub, Quicken Loans, Freedom Mortgage and many internet financial service providers. The amount of competition facing the Company is extensive and can negatively impact its growth.
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.
The following table provides a breakdown of the Bank’s loan portfolio by product type and principal balance outstanding at December 31, 2024, excluding mortgage loans held for sale.
There were $6.6 million and $5.8 million in net charge-offs during the years ended December 31, 2023 and 2022, respectively. 16 Although the Bank believes that it uses the best information available to establish the ACL, future adjustments to the allowance may be necessary and results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations.
There were $5.2 million and $6.6 million in net charge-offs during the years ended December 31, 2024 and 2023, respectively. 16 Although the Bank believes that it uses the best information available to establish the ACL, future adjustments to the allowance may be necessary and results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations.
The market share of bank deposits in the New York area can be difficult to quantify, as some “mega” banks will include large scale deposits from around the world as held at headquarters. However, in Bronx County, New York, where the Bank maintains four branches, it holds 1.63% (as of June 30, 2023) of the market’s deposits.
The market share of bank deposits in the New York area can be difficult to quantify, as some “mega” banks will include large scale deposits from around the world as held at headquarters. However, in Bronx County, New York, where the Bank maintains four branches, it holds 1.67% (as of June 30, 2024) of the market’s deposits.
All other concentrations by county, which account for 3.0% of this category, have balances of $2.4 million or less.
All other concentrations by county, which account for 0.4% of this category, have balances of $1.2 million or less.
Mortgage Loans Held for Sale, at Fair Value. At December 31, 2023 and 2022, mortgage loans held for sale, at fair value, was $10.0 million and $2.0 million, respectively, including residential mortgages that were originated in accordance with secondary market pricing and underwriting standards. The Bank’s intent was to sell these loans on the secondary market.
Mortgage Loans Held for Sale, at Fair Value. At December 31, 2024 and 2023, mortgage loans held for sale, at fair value, was $10.7 million and $10.0 million, respectively, including residential mortgages that were originated in accordance with secondary market pricing and underwriting standards. The Bank’s intent was to sell these loans on the secondary market.
For additional information related to our business strategies, see “Management's Discussion and Analysis of Financial Condition and Results of Operations—Vision 2025 Evolves." Employees and Human Capital Resources As of December 31, 2023, the Company had 237 full time equivalent employees.
For additional information related to our business strategies, see “Management's Discussion and Analysis of Financial Condition and Results of Operations—Vision 2025 Evolves." Employees and Human Capital Resources As of December 31, 2024, the Company had 218 full time equivalent employees.
Non-accrual loans include non-accruing previously existing troubled debt restructured loans, prior to ASU 2022-02, of $0.7 million, $2.3 million, $2.5 million, $3.1 million, and $3.6 million at December 31, 2023, 2022, 2021, 2020 and 2019, respectively. There were no accruing loans past due 90 days or more at the dates indicated.
Non-accrual loans include non-accruing previously existing troubled debt restructured loans, prior to ASU 2022-02, of $0.4 million, $0.4 million, $2.3 million, $2.5 million, and $3.1 million at December 31, 2024, 2023, 2022, 2021 and 2020, respectively. There were no accruing loans past due 90 days or more at the dates indicated.
The Company is subject to the public disclosure, proxy solicitation, insider trading restrictions and other requirements under the Exchange Act.
The Company is subject to the public disclosure, insider trading restrictions and other requirements under the Exchange Act.
These regulatory policies may affect the ability of the Company to pay dividends, repurchase shares of common stock or otherwise engage in capital distributions. Additionally, as a participant in the ECIP, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock.
These regulatory policies may affect the ability of the Company to pay dividends, repurchase shares of common stock or otherwise engage in capital distributions. Additionally, under the ECIP regulations, the Company cannot pay dividends or repurchase its common stock unless it meets certain income-based tests and has paid the required dividends on the Preferred Stock.
No other loan or loans-to-one borrower, individually or cumulatively, exceeded $44.0 million, or 59.5% of the lending limit. 10 The Bank’s real estate lending is subject to written policies, underwriting standards and operating procedures.
No other loan or loans-to-one borrower, individually or cumulatively, exceeded $44.0 million, or 57.8% of the lending limit. 10 The Bank’s real estate lending is subject to written policies, underwriting standards and operating procedures.
At December 31, 2023, passbook savings accounts and certificates of deposit with a passbook feature totaled $119.9 million, reflecting depositors’ preference for traditional banking services. Borrowings . The Bank may obtain advances from the FHLBNY by pledging as security its capital stock at the FHLBNY and certain of its mortgage loans and mortgage-backed securities.
At December 31, 2024, passbook savings accounts and certificates of deposit with a passbook feature totaled $113.7 million, reflecting depositors’ preference for traditional banking services. Borrowings . The Bank may obtain advances from the FHLBNY by pledging as security its capital stock at the FHLBNY and certain of its mortgage loans and mortgage-backed securities.
The rest of this category, 6.6%, is spread out in other counties and no other concentration exceeded $2.8 million, or 0.8%.
The rest of this category, 2.4%, is spread out in other counties and no other concentration exceeded $2.5 million, or 0.8%.
The Bank’s lending limit as of December 31, 2023 was $73.9 million, with the ability to lend additional amounts up to 10% if the loans or extensions of credit are fully secured by readily-marketable collateral. At December 31, 2023, the Bank complied with these loans-to-one borrower limitations.
The Bank’s lending limit as of December 31, 2024 was $76.1 million, with the ability to lend additional amounts up to 10% if the loans or extensions of credit are fully secured by readily-marketable collateral. At December 31, 2024, the Bank complied with these loans-to-one borrower limitations.
The following table sets forth the maturity of those certificates as of December 31, 2023.
The following table sets forth the maturity of those certificates as of December 31, 2024.
At December 31, 2023 and 2022, the investment portfolio consisted of available-for-sale and held-to-maturity securities and obligations issued by the U.S. government and government-sponsored enterprises, corporate bonds and the FHLBNY stock. At December 31, 2023 and 2022, the Bank owned $19.4 million and $24.7 million, respectively, of FHLBNY stock.
At December 31, 2024 and 2023, the investment portfolio consisted of available-for-sale and held-to-maturity securities and obligations issued by the U.S. government and government-sponsored enterprises, corporate bonds and the FHLBNY stock. At December 31, 2024 and 2023, the Bank owned $29.2 million and $19.4 million, respectively, of FHLBNY stock.
The Company believes there is a significant opportunity for an immigrant community-focused, minority directed bank to provide a full range of financial services to commercial and retail customers in our market area and other similar communities. Our current business strategy consists of the following: • Execute balance sheet reallocation strategy.
The Company believes there is a significant opportunity for an immigrant community-focused, minority-directed bank to provide a full range of financial services to business and consumer customers in our market area and other similar communities. Our current business strategy consists of the following: • Maximize Balance Sheet Efficiency.
A multiple savings and loan holding company is generally limited to activities permissible for bank holding companies under Section 4(c)(8) of the Bank Holding Company Act, subject to regulatory approval, and certain additional activities authorized by federal regulations. The Company’s predecessor was designated as a financial holding company.
A multiple savings and loan holding company is generally limited to activities permissible for bank holding companies under Section 4(c)(8) of the Bank Holding Company Act, subject to regulatory approval, and certain additional activities authorized by federal regulations.
Another significant customer segment of the Bank consists of middle aged and older white-collar, high-income individuals, many of whom are self-employed real estate investors and developers. They constitute a large percentage of the borrowing base of the Bank and, increasingly, are becoming the source of a significant percentage of commercial deposits.
Another significant customer segment of the Bank consists of middle-aged and older white-collar, high-income individuals, many of whom are self-employed real estate investors and developers. They constitute a large percentage of the borrowing base of the Bank and, increasingly, are becoming the source of a significant percentage of commercial deposits. The Bank has historically been funded through local community deposits.
For the Years Ended December 31, 2023 2022 2021 2020 2019 (Dollars in thousands) Allowance at beginning of year $ 34,592 $ 16,352 $ 14,870 $ 12,329 $ 12,659 Provision (recovery) for loan losses 1,237 24,046 2,717 2,443 258 Adoption of CECL (3,090 ) Charge-offs: Mortgage loans: 1-4 family residential Investor-owned — — — — (8 ) Owner-occupied — — — — — Multifamily residential — — (38 ) — — Nonresidential properties — — — — — Construction and land — — — — — Nonmortgage loans: Business (63 ) — — — (724 ) Consumer (1) (7,227 ) (6,659 ) (1,342 ) (6 ) — Total charge-offs (7,290 ) (6,659 ) (1,380 ) (6 ) (732 ) Recoveries: Mortgage loans: 1-4 family residential Investor-owned — 156 8 — 23 Owner-occupied — 39 45 — — Multifamily residential — — — — — Nonresidential properties — — — 4 9 Construction and land — — — — — Nonmortgage loans: Business 3 94 84 95 110 Consumer (1) 702 564 8 5 2 Total recoveries 705 853 145 104 144 Net recoveries (charge-offs) (6,585 ) (5,806 ) (1,235 ) 98 (588 ) Allowance at end of year $ 26,154 $ 34,592 $ 16,352 $ 14,870 $ 12,329 Allowance for loan losses as a percentage for nonperforming loans 205.52 % 252.33 % 142.90 % 127.28 % 106.30 % Allowance for loan losses as a percentage of total loans 1.36 % 2.27 % 1.24 % 1.27 % 1.28 % Net recoveries (charge-offs) to average loans outstanding during the year (0.38 %) (0.42 %) (0.09 %) 0.01 % (0.06 %) (1) At December 31, 2023, 2022 and 2021, includes $7.2 million, $6.7 million and $1.2 million of charge-offs and $0.7 million, $0.6 million and $0.01 million of recoveries related to loans associated with Grain, respectively. 15 Allowance for Credit Losses .
For the Years Ended December 31, 2024 2023 2022 2021 2020 (Dollars in thousands) Allowance at beginning of year $ 26,154 $ 34,592 $ 16,352 $ 14,870 $ 12,329 Provision for loan losses 1,516 1,237 24,046 2,717 2,443 Adoption of CECL — (3,090 ) Charge-offs: Mortgage loans: 1-4 family residential Investor-owned — — — — — Owner-occupied — — — — — Multifamily residential — — — (38 ) — Nonresidential properties (7 ) — — — — Construction and land — — — — — Nonmortgage loans: Business (734 ) (63 ) — — — Consumer (1) (5,148 ) (7,227 ) (6,659 ) (1,342 ) (6 ) Total charge-offs (5,889 ) (7,290 ) (6,659 ) (1,380 ) (6 ) Recoveries: Mortgage loans: 1-4 family residential Investor-owned — — 156 8 — Owner-occupied — — 39 45 — Multifamily residential — — — — — Nonresidential properties — — — — 4 Construction and land — — — — — Nonmortgage loans: Business 9 3 94 84 95 Consumer (1) 712 702 564 8 5 Total recoveries 721 705 853 145 104 Net recoveries (charge-offs) (5,168 ) (6,585 ) (5,806 ) (1,235 ) 98 Allowance at end of year $ 22,502 $ 26,154 $ 34,592 $ 16,352 $ 14,870 Allowance for credit losses as a percentage for nonperforming loans 97.98 % 205.52 % 252.33 % 142.90 % 127.28 % Allowance for credit losses as a percentage of total loans 0.97 % 1.36 % 2.27 % 1.24 % 1.27 % Net recoveries (charge-offs) to average loans outstanding during the year (0.25 %) (0.38 %) (0.42 %) (0.09 %) 0.01 % (1) At December 31, 2024, 2023, 2022 and 2021, includes $5.1 million, $7.2 million, $6.7 million and $1.2 million of charge-offs and $0.7 million, $0.7 million, $0.6 million and $0.1 million of recoveries related to loans associated with Grain, respectively. 15 Allowance for Credit Losses .
At December 31, 2023 and 2022, the Bank had mortgage-backed securities with a carrying value of $465.6 million and $516.5 million, respectively. Mortgage-backed securities are securities issued in the secondary market that are collateralized by pools of mortgages.
Mortgage-Backed Securities . At December 31, 2024 and 2023, the Bank had mortgage-backed securities with a carrying value of $410.3 million and $465.6 million, respectively. Mortgage-backed securities are securities issued in the secondary market that are collateralized by pools of mortgages.
The maximum amount by which the interest rate may increase generally is limited to 2% for the first two adjustments and 5% for the life of the loan. Additionally, the Bank offers 1-4 loan family residential loans that are saleable in the secondary market, such as Freddie Mac, Fannie Mae and investors.
The maximum amount by which the interest rate may increase for adjustable rate loans is generally limited to 2% for the first two adjustments and 5% for the life of the loan. Additionally, the Bank offers 1-4 loan family residential loans that are saleable in the secondary market.
The rest of this category, less than 2.0%, is spread out in other counties and no other concentration exceeded $1.5 million, or 0.9%. It is the Bank’s policy to underwrite loans secured by one-to-four family owner-occupied residential real estate in a manner that ensures strict compliance with Dodd-Frank regulatory requirements.
The rest of this category, less than 3.7%, is spread out in other counties and no other concentration exceeded $1.1 million, or 0.8%. It is the Bank’s policy to underwrite loans secured by one-to-four family owner-occupied residential real estate in a manner that ensures strict compliance with Federal and State regulations, including Dodd-Frank requirements.
Government Bonds 2,990 2,784 2,985 2,689 2,981 2,934 — — — — Corporate Bonds 25,790 23,668 25,824 23,359 21,243 21,184 10,381 10,463 — — Mortgage-Backed Securities Collateralized Mortgage Obligations (1) 39,375 33,148 44,503 37,777 18,845 18,348 — — — — FHLMC Certificates 10,163 8,681 11,310 9,634 — — 3,201 3,196 FNMA Certificates 61,359 51,517 67,199 55,928 71,930 70,699 3,506 3,567 4,680 4,659 GNMA Certificates 104 104 122 118 175 181 263 272 482 491 Total available-for-sale securities $ 139,781 $ 119,902 $ 151,943 $ 129,505 $ 115,174 $ 113,346 $ 17,351 $ 17,498 $ 21,535 $ 21,504 Held-to-Maturity Securities: U.S.
Government Bonds $ 2,994 $ 2,873 $ 2,990 $ 2,784 $ 2,985 $ 2,689 $ 2,981 $ 2,934 $ — $ — Corporate Bonds 21,762 20,404 25,790 23,668 25,824 23,359 21,243 21,184 10,381 10,463 Mortgage-Backed Securities Collateralized Mortgage Obligations (1) 34,526 28,535 39,375 33,148 44,503 37,777 18,845 18,348 — — FHLMC Certificates 9,028 7,662 10,163 8,681 11,310 9,634 — — 3,201 3,196 FNMA Certificates 56,010 45,408 61,359 51,517 67,199 55,928 71,930 70,699 3,506 3,567 GNMA Certificates 88 88 104 104 122 118 175 181 263 272 Total available-for-sale securities $ 124,408 $ 104,970 $ 139,781 $ 119,902 $ 151,943 $ 129,505 $ 115,174 $ 113,346 $ 17,351 $ 17,498 Held-to-Maturity Securities: U.S.
Ponce De Leon Federal Bank, the predecessor of Ponce Bank, has pre-2015 carryforwards of $0.6 million for New York State purposes and $0.5 million for New York City purposes. Furthermore, there are post-2015 carryforwards available of $64.1 million for New York State purposes and $33.2 million for New York City purposes.
Ponce De Leon Federal Bank, the predecessor of Ponce Bank, has pre-2015 carryforwards of $0.6 million for New York State purposes and $0.5 million for New York City purposes. Furthermore, there are post-2015 carryforwards available of $66.5 million for New York State purposes and $32.8 million for New York City purposes.
The majority of the portfolio, $303.7 million, or 88.4%, are two-to-four family properties (459 accounts), while the remaining $39.9 million, or 11.6%, are primarily single family, non-owner-occupied investment properties (95 accounts). The three largest loans outstanding in this category had outstanding balances of $5.3 million, $3.4 million and $2.9 million.
The majority of the portfolio, $291.7 million, or 88.4%, are two-to-four family properties (449 accounts), while the remaining $38.3 million, or 11.6%, are primarily single family, non-owner-occupied investment properties (78 accounts). The three largest loans outstanding in this category had outstanding balances of $5.2 million, $3.4 million and $2.8 million.
At December 31, 2023 2022 2021 2020 2019 (in thousands) Nonaccrual loans: Mortgage loans: 1-4 family residential Investor-owned $ 793 $ 2,844 $ 3,349 $ 2,808 $ 2,312 Owner-occupied 1,683 961 1,284 1,053 1,009 Multifamily residential 2,979 — 1,200 946 — Nonresidential properties — — 2,163 3,776 3,555 Construction and land 6,659 7,567 917 — 1,118 Nonmortgage loans: Business 19 — — — — Consumer 146 — — — — Total nonaccrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) $ 12,279 $ 11,372 $ 8,913 $ 8,583 $ 7,994 Non-accruing modifications to borrowers experiencing financial difficulty (1) : Mortgage loans: 1-4 family residential Investor-owned $ — $ 217 $ 234 $ 249 $ 467 Owner-occupied 447 2,027 2,196 2,197 2,491 Multifamily residential — — — — — Nonresidential properties — 93 100 654 646 Construction and land — — — — — Nonmortgage loans: Business — — — — — Consumer — — — — — Total non-accruing modifications to borrowers experiencing financial difficulty (1) 447 2,337 2,530 3,100 3,604 Total nonaccrual loans $ 12,726 $ 13,709 $ 11,443 $ 11,683 $ 11,598 Accruing modifications to borrowers experiencing financial difficulty (1) : Mortgage loans: 1-4 family residential Investor-owned $ 2,112 $ 2,207 $ 3,089 $ 3,378 $ 5,191 Owner-occupied 2,313 1,328 2,374 2,505 2,090 Multifamily residential — — — — — Nonresidential properties 757 708 732 754 1,306 Construction and land — — — — — Nonmortgage loans: Business — — — — 14 Consumer — — — — — Total accruing modifications to borrowers experiencing financial difficulty (1) $ 5,182 $ 4,243 $ 6,195 $ 6,637 $ 8,601 Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) $ 17,908 $ 17,952 $ 17,638 $ 18,320 $ 20,199 Total nonperforming loans to total gross loans 0.66 % 0.90 % 0.87 % 1.00 % 1.20 % Total nonperforming assets to total assets 0.46 % 0.59 % 0.69 % 0.86 % 1.10 % Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1) 0.65 % 0.78 % 1.07 % 1.35 % 1.92 % 12 (1) For periods in 2023, balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
At December 31, 2024 2023 2022 2021 2020 (in thousands) Nonaccrual loans: Mortgage loans: 1-4 family residential Investor-owned $ 436 $ 793 $ 2,844 $ 3,349 $ 2,808 Owner-occupied 1,423 1,683 961 1,284 1,053 Multifamily residential 10,271 2,979 — 1,200 946 Nonresidential properties — — — 2,163 3,776 Construction and land 10,058 6,659 7,567 917 — Nonmortgage loans: Business 343 19 — — — Consumer — 146 — — — Total nonaccrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) (1) $ 22,531 $ 12,279 $ 11,372 $ 8,913 $ 8,583 Non-accruing modifications to borrowers experiencing financial difficulty (1) : Mortgage loans: 1-4 family residential Investor-owned $ — $ — $ 217 $ 234 $ 249 Owner-occupied 435 447 2,027 2,196 2,197 Multifamily residential — — — — — Nonresidential properties — — 93 100 654 Construction and land — — — — — Nonmortgage loans: Business — — — — — Consumer — — — — — Total non-accruing modifications to borrowers experiencing financial difficulty (1) 435 447 2,337 2,530 3,100 Total nonaccrual loans $ 22,966 $ 12,726 $ 13,709 $ 11,443 $ 11,683 Accruing modifications to borrowers experiencing financial difficulty (1) : Mortgage loans: 1-4 family residential Investor-owned $ 1,807 $ 2,112 $ 2,207 $ 3,089 $ 3,378 Owner-occupied 2,062 2,313 1,328 2,374 2,505 Multifamily residential — — — — — Nonresidential properties 652 757 708 732 754 Construction and land — — — — — Nonmortgage loans: Business 215 — — — — Consumer — — — — — Total accruing modifications to borrowers experiencing financial difficulty (1) $ 4,736 $ 5,182 $ 4,243 $ 6,195 $ 6,637 Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty (1) $ 27,702 $ 17,908 $ 17,952 $ 17,638 $ 18,320 Total nonperforming loans to total gross loans 1.00 % 0.66 % 0.90 % 0.87 % 1.00 % Total nonperforming assets to total assets 0.76 % 0.46 % 0.59 % 0.69 % 0.86 % Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (1) 0.91 % 0.65 % 0.78 % 1.07 % 1.35 % 12 (1) For periods in 2024 and 2023, balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
In the nonresidential portfolio, the overall mix is diverse in terms of property types, with the largest concentration being retail and wholesale at $117.0 million, or 34.2% of the portfolio, industrial and warehouse at $78.6 million, or 23.0%, offices at $43.3 million, or 12.7%, hotels and motels at $36.3 million, or 10.6%, service, doctor, dentist, daycare and schools at $22.6 million, or 6.6%, land at $15.9 million, or 4.7%, churches at $8.9 million, or 2.6%, medical, nursing home and hospital at $7.7 million, or 2.2%, restaurants at $7.6 million, or 2.2%, and the rest of the portfolio accounts for other property types, with none exceeding 1.0% as a portfolio concentration.
In the nonresidential portfolio, the overall mix is diverse in terms of property types, with the largest concentration being retail and wholesale at $134.0 million, or 34.4% of the portfolio, industrial and warehouse at $86.8 million, or 22.3%, hotels and motels at $51.4 million, or 13.2%, service, doctor, dentist, daycare and schools at $48.0 million, or 12.3%, offices at $36.4 million, or 9.3%, churches at $12.3 million, or 3.1%, land at $7.2 million, or 1.8%, restaurants at $6.8 million, or 1.8%, 2-4 family home at $4.9 million, or 1.3%, and the rest of the portfolio accounts for other property types, with none exceeding 1.0% as a portfolio concentration.
At December 31, 2023 2022 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (in thousands) Mortgages: 1-4 Family residential Investor-owned $ — $ — $ 793 $ 1,530 $ 78 $ 1,865 $ 321 $ 2,969 $ 1,096 Owner-occupied — — 2,130 2,553 — 815 2,961 471 1,947 Multifamily residential 1,109 — 2,979 4,643 — — 1,704 187 — Nonresidential properties — — — 4,246 607 — 934 1,168 — Construction and land — — 6,659 — 4,100 7,567 — — — Nonmortgage Loans: Business 366 8 165 1,466 7,869 2,973 4,036 544 13 Consumer 536 1,007 — 1,267 1,119 — 2,570 1,759 5 Total $ 2,011 $ 1,015 $ 12,726 $ 15,705 $ 13,773 $ 13,220 $ 12,526 $ 7,098 $ 3,061 11 At December 31, 2020 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (in thousands) Mortgages: 1-4 Family residential Investor-owned $ 2,222 $ 1,507 $ 1,907 $ 3,866 $ — $ 1,082 Owner-occupied 1,572 348 1,100 3,405 — 1,295 Multifamily residential 1,140 — 946 3,921 — — Nonresidential properties — — 3,272 3 — 3,708 Construction and land — — — — — — Nonmortgage Loans: Business 100 — — — — — Consumer 497 316 175 — — — Total $ 5,531 $ 2,171 $ 7,400 $ 11,195 $ — $ 6,085 Non-Performing Assets.
At December 31, 2024 2023 2022 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (in thousands) Mortgages: 1-4 Family residential Investor-owned $ 2,275 $ 2,790 $ 436 $ — $ — $ 793 $ 1,530 $ 78 $ 1,865 Owner-occupied 1,670 909 1,858 — — 2,130 2,553 — 815 Multifamily residential 5,119 2,502 10,271 1,109 — 2,979 4,643 — — Nonresidential properties 890 2,402 — — — — 4,246 607 — Construction and land — 3,180 10,058 — — 6,659 — 4,100 7,567 Nonmortgage Loans: Business 123 1,037 343 366 8 165 1,466 7,869 2,973 Consumer — 3 — 536 1,007 — 1,267 1,119 — Total $ 10,077 $ 12,823 $ 22,966 $ 2,011 $ 1,015 $ 12,726 $ 15,705 $ 13,773 $ 13,220 11 At December 31, 2021 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (in thousands) Mortgages: 1-4 Family residential Investor-owned $ 321 $ 2,969 $ 1,096 $ 2,222 $ 1,507 $ 1,907 Owner-occupied 2,961 471 1,947 1,572 348 1,100 Multifamily residential 1,704 187 — 1,140 — 946 Nonresidential properties 934 1,168 — — — 3,272 Construction and land — — — — — — Nonmortgage Loans: Business 4,036 544 13 100 — — Consumer 2,570 1,759 5 497 316 175 Total $ 12,526 $ 7,098 $ 3,061 $ 5,531 $ 2,171 $ 7,400 Non-Performing Assets.
Calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations. 22 In determining the amount of risk-weighted assets for purposes of calculating risk-based capital ratios, an institution’s assets, including certain off-balance sheet assets (e.g., recourse obligations, direct credit substitutes, residual interests), are multiplied by a risk weight factor assigned by the regulations based on the risk deemed inherent in the type of asset.
In determining the amount of risk-weighted assets for purposes of calculating risk-based capital ratios, an institution’s assets, including certain off-balance sheet assets (e.g., recourse obligations, direct credit substitutes, residual interests), are multiplied by a risk weight factor assigned by the regulations based on the risk deemed inherent in the type of asset.
The programs give the Bank the option to offer Federal Housing Administration ("FHA"), conventional, and non-qualified loans to its consumers. These programs are underwritten specifically to the Government agencies guidelines and the designated investors requirements.
The salable programs give the Bank the option to offer FHA, conventional, and non-qualified loans to its consumers. These programs are underwritten specifically to the Government agencies guidelines, such as Freddie Mac, Fannie Mae, Federal Housing Administration/ HUD and the designated investors requirements.
For the Years Ended December 31, 2023 2022 2021 2020 2019 (in thousands) Total loans at beginning of year $ 1,525,668 $ 1,322,098 $ 1,172,053 $ 966,096 $ 929,761 Loans originated: Mortgage loans: 1-4 family residential Investor-owned 28,999 58,333 42,631 36,522 32,827 Owner-occupied 24,137 54,001 15,346 15,090 9,117 Multifamily residential 88,464 181,227 73,128 90,481 53,288 Nonresidential properties 55,649 89,370 65,463 34,154 37,975 Construction and land 700,904 231,334 109,294 81,465 69,240 Total mortgage loans 898,153 614,265 305,862 257,712 202,447 Nonmortgage loans: Business (1) 14,285 6,325 122,254 89,110 1,175 Consumer (2) 737 3,898 59,760 30,050 755 Total nonmortgage loans 15,022 10,223 182,014 119,160 1,930 Total loans originated 913,175 624,488 487,876 376,872 204,377 Loans purchased: Mortgage loans: 1-4 family residential Investor-owned — — 5,845 — — Owner-occupied — — — — — Multifamily residential — — 5,540 — — Total loans purchased — — 11,385 — — Loans sold and transferred to held-for-sale: Mortgage loans: 1-4 family residential — — — — — Investor-owned (2,129 ) (3,040 ) (5,661 ) (781 ) (3,520 ) Owner-occupied — (311 ) — — — Multifamily residential (1,435 ) — (2,299 ) (2,748 ) — Nonresidential properties — (767 ) (2,713 ) (510 ) (196 ) Construction and land (5,017 ) (5,734 ) (3,500 ) — — Total loans sold (8,581 ) (9,852 ) (14,173 ) (4,039 ) (3,716 ) Principal repayments and other (508,690 ) (411,066 ) (335,043 ) (166,876 ) (164,326 ) Net loan activity 395,904 203,570 150,045 205,957 36,335 Total loans at end of year $ 1,921,572 $ 1,525,668 $ 1,322,098 $ 1,172,053 $ 966,096 (1) For the years ended December 31, 2021 and 2020, business loans originated include $117.3 million and $85.3 million, respectively, of PPP loans .
For the Years Ended December 31, 2024 2023 2022 2021 2020 (in thousands) Total loans at beginning of year $ 1,921,572 $ 1,525,668 $ 1,322,098 $ 1,172,053 $ 966,096 Loans originated: Mortgage loans: 1-4 family residential Investor-owned 9,780 28,999 58,333 42,631 36,522 Owner-occupied 44,012 24,137 54,001 15,346 15,090 Multifamily residential 146,558 88,464 181,227 73,128 90,481 Nonresidential properties 92,818 55,649 89,370 65,463 34,154 Construction and land 580,662 700,904 231,334 109,294 81,465 Total mortgage loans 873,830 898,153 614,265 305,862 257,712 Nonmortgage loans: Business (1) 13,724 14,285 6,325 122,254 89,110 Consumer (2) 674 737 3,898 59,760 30,050 Total nonmortgage loans 14,398 15,022 10,223 182,014 119,160 Total loans originated 888,228 913,175 624,488 487,876 376,872 Loans purchased: Mortgage loans: 1-4 family residential Investor-owned — — — 5,845 — Multifamily residential — — — 5,540 — Total mortgage loans — — — 11,385 — Nonmortgage loans: Business 5,955 — — — — Total nonmortgage loans 5,955 — — — — Total loans purchased 5,955 — — 11,385 — Loans sold and transferred to held-for-sale: Mortgage loans: 1-4 family residential Investor-owned — (2,129 ) (3,040 ) (5,661 ) (781 ) Owner-occupied — — (311 ) — — Multifamily residential — (1,435 ) — (2,299 ) (2,748 ) Nonresidential properties (824 ) — (767 ) (2,713 ) (510 ) Construction and land (22,557 ) (5,017 ) (5,734 ) (3,500 ) — Total loans sold and transferred to held-for-sale (23,381 ) (8,581 ) (9,852 ) (14,173 ) (4,039 ) Principal repayments and other (484,354 ) (508,690 ) (411,066 ) (335,043 ) (166,876 ) Net loan activity 386,448 395,904 203,570 150,045 205,957 Total loans at end of year $ 2,308,020 $ 1,921,572 $ 1,525,668 $ 1,322,098 $ 1,172,053 (1) For the years ended December 31, 2021 and 2020, business loans originated include $117.3 million and $85.3 million, respectively, of PPP loans .
The PPP program ended on May 31, 2021. (2) For the years ended December 31, 2022, 2021 and 2020, consumer loans originated include $3.2 million, $59.3 million and $29.5 million, respectively, of microloans pursuant to the Bank’s former arrangement with Grain. No new Grain loans were made by the Bank after May 31, 2022.
The PPP program ended on May 31, 2021. (2) For the years ended December 31, 2022, 2021 and 2020, consumer loans originated include $3.2 million, $59.3 million and $29.5 million, respectively, of microloans pursuant to the Bank's former arrangement with Grain. 9 Contractual Maturities.
One-to-four family owner-occupied loans totaled $152.3 million, or 7.9% of the Bank’s total loan portfolio at December 31, 2023. The three largest loans outstanding in this category had outstanding balances of $2.6 million, $2.2 million and $2.0 million. There are 26 loans with an outstanding balance in excess of $1.0 million, totaling $36.8 million, or approximately 23.5% of this category.
One-to-four family owner-occupied loans totaled $142.4 million, or 6.2% of the Bank’s total loan portfolio at December 31, 2024. The three largest loans outstanding in this category had outstanding balances of $2.5 million, $2.1 million and $1.9 million. There are 25 loans with an outstanding balance in excess of $1.0 million, totaling $34.8 million, or approximately 24.5% of this category.
At December 31, 2023 2022 2021 2020 2019 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (Dollars in thousands) Mortgage loans: 1-4 family residential Investor-owned $ 343,689 17.89 % $ 343,968 22.54 % $ 317,304 24.01 % $ 319,596 27.27 % $ 305,272 31.60 % Owner-occupied 152,311 7.93 % 134,878 8.84 % 96,947 7.33 % 98,795 8.43 % 91,943 9.52 % Multifamily residential 550,559 28.65 % 494,667 32.42 % 348,300 26.34 % 307,411 26.23 % 250,239 25.90 % Nonresidential 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.
At December 31, 2024 2023 2022 2021 2020 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (Dollars in thousands) Mortgage loans: 1-4 family residential Investor-owned $ 330,053 14.30 % $ 343,689 17.89 % $ 343,968 22.54 % $ 317,304 24.01 % $ 319,596 27.27 % Owner-occupied 142,363 6.17 % 152,311 7.93 % 134,878 8.84 % 96,947 7.33 % 98,795 8.43 % Multifamily residential 670,159 29.04 % 550,559 28.65 % 494,667 32.42 % 348,300 26.34 % 307,411 26.23 % Nonresidential properties 389,898 16.89 % 342,343 17.81 % 308,043 20.19 % 239,691 18.13 % 218,929 18.68 % Construction and land 733,660 31.79 % 503,925 26.22 % 185,018 12.13 % 134,651 10.19 % 105,858 9.03 % Total mortgage loans 2,266,133 98.19 % 1,892,827 98.50 % 1,466,574 96.12 % 1,136,893 86.00 % 1,050,589 89.64 % Nonmortgage loans: Business loans (1) 40,849 1.77 % 19,779 1.03 % 39,965 2.62 % 150,512 11.38 % 94,947 8.10 % Consumer loans (2) 1,038 0.04 % 8,966 0.47 % 19,129 1.26 % 34,693 2.62 % 26,517 2.26 % Total nonmortgage loans 41,887 1.81 % 28,745 1.50 % 59,094 3.88 % 185,205 14.00 % 121,464 10.36 % Total loans, gross 2,308,020 100.00 % 1,921,572 100.00 % 1,525,668 100.00 % 1,322,098 100.00 % 1,172,053 100.00 % Net deferred loan origination costs 1,081 468 2,051 (668 ) 1,457 Allowance for credit losses (22,502 ) (26,154 ) (34,592 ) (16,352 ) (14,870 ) Loans receivable, net $ 2,286,599 $ 1,895,886 $ 1,493,127 $ 1,305,078 $ 1,158,640 (1) As of December 31, 2024, 2023, 2022, 2021 and 2020, business loans include $0.5 million, $1.0 million, $20.0 million, $136.8 million and $85.3 million, respectively, of SBA Paycheck Protection Program (“PPP”) loans.
There is a high concentration of financial institutions in the market area, including national, regional and other locally-operated commercial banks, savings banks, savings associations and credit unions whose activities include banking as well as mortgage lending.
Competition The Company faces significant competition within its market area both in originating loans and attracting deposits. There is a high concentration of financial institutions in the market area, including national, regional and other locally-operated commercial banks, savings banks, savings associations and credit unions whose activities include banking as well as mortgage lending.
At December 31, 2023, the Bank’s largest aggregate exposure to one borrower was $58.0 million with an outstanding balance of $38.4 million. The second largest exposure was $55.0 million with outstanding balances of $18.9 million and two customers with the third largest exposures of two customers with $47.0 million each with outstanding balances of $22.1 million and $10.9 million, respectively.
At December 31, 2024, the Bank’s largest aggregate exposure to one borrower was $58.0 million with an outstanding balance of $55.2 million. The second largest exposure was $55.0 million with outstanding balances of $38.3 million and two customers with the third largest exposures of two customers with $47.0 million each with outstanding balances of $41.1 million and $17.3 million, respectively.
On the basis of this review of loans, the Bank’s classified and special mention loans at the dates indicated were as follows: At December 31, 2023 2022 2021 2020 2019 (in thousands) Classified Loans: Substandard $ 17,851 $ 21,499 $ 17,317 $ 20,508 $ 22,787 Total classified loans 17,851 21,499 17,317 20,508 22,787 Special mention loans 5,786 9,735 13,798 19,546 17,355 Total classified and special mention loans $ 23,637 $ 31,234 $ 31,115 $ 40,054 $ 40,142 Substandard loans decreased $3.6 million, or 16.97%, to $17.9 million at December 31, 2023 compared to $21.5 million at December 31, 2022.
On the basis of this review of loans, the Bank’s classified and special mention loans at the dates indicated were as follows: At December 31, 2024 2023 2022 2021 2020 (in thousands) Classified Loans: Substandard $ 27,290 $ 17,851 $ 21,499 $ 17,317 $ 20,508 Total classified loans 27,290 17,851 21,499 17,317 20,508 Special mention loans 20,580 5,786 9,735 13,798 19,546 Total classified and special mention loans $ 47,870 $ 23,637 $ 31,234 $ 31,115 $ 40,054 Substandard loans increased $9.4 million, or 52.9%, to $27.3 million at December 31, 2024 compared to $17.9 million at December 31, 2023.
At or For the Years Ended December 31, 2023 2022 2021 (in thousands) Beginning balance $ 1,252,412 $ 1,204,716 $ 1,029,579 Net deposits before interest credited 220,067 37,746 169,466 Interest credited 35,141 9,950 5,671 Net increase in deposits 255,208 47,696 175,137 Ending balance $ 1,507,620 $ 1,252,412 $ 1,204,716 19 The following table sets forth certificates of deposit classified by interest rate as of the dates indicated.
At or For the Years Ended December 31, 2024 2023 2022 (in thousands) Beginning balance $ 1,507,620 $ 1,252,412 $ 1,204,716 Net deposits before interest credited 318,552 220,067 37,746 Interest credited 58,692 35,141 9,950 Net increase in deposits 377,244 255,208 47,696 Ending balance $ 1,884,864 $ 1,507,620 $ 1,252,412 19 The following table sets forth certificates of deposit classified by interest rate as of the dates indicated.
C&I loans (excluding PPP loans) and lines of credit represent 1.0% of the Bank’s total loan portfolio at December 31, 2023.
C&I loans and lines of credit represent 1.34% of the Bank’s total loan portfolio at December 31, 2024.
All other concentrations by county, which account for 1.2% of this category, have balances of $1.7 million or less. Nonresidential Loans. Nonresidential loans totaled $342.3 million, or 17.8% of the Bank’s total loan portfolio at December 31, 2023. Loans secured by nonresidential properties that represent the Bank’s fourth largest concentration.
All other concentrations by county, which account for 0.7% of this category, have balances of $1.0 million or less. Nonresidential Loans. Nonresidential loans totaled $389.9 million, or 16.9% of the Bank’s total loan portfolio at December 31, 2024. Loans secured by nonresidential properties that represent the Bank’s third largest concentration.
Refine performance management system to align with strategic initiatives and continue to build and leverage Ponce culture. • Build Ponce Bank 2.0 . Ensure risk management and compliance controls are aligned with strategic priorities. Evaluate and select appropriate charter to support strategy.
Refine performance management system to align with strategic initiatives and continue to build and leverage Ponce culture. • Build Ponce Bank 2.0 . Ensure risk management and compliance controls are aligned with strategic priorities. Improve processes to gain efficiencies.
Upon closing of the construction loan, the Bank begins monitoring the project and funding requisitions for completed stages upon inspection and confirmation by third party firms, such as engineers, of the work performed and its value and quality. Conversion to permanent financing usually occurs upon a conversion underwriting and receipt of certificates of occupancy, as applicable.
Upon closing of the construction loan, the Bank begins monitoring the project and funding requisitions for completed stages upon inspection and confirmation by third party firms, such as engineers, of the work performed and its value and quality.
The decrease of substandard loans was primarily attributable to decreases of $5.0 million in construction and land loans and $0.9 million in 1-4 family loans, offset by an increase of $2.3 million in multifamily loans. Special mention loans decreased $3.9 million, or 40.6%, to $5.8 million at December 31, 2023 compared to $9.7 million at December 31, 2022.
The increase in substandard loans was primarily attributable to increases of $8.4 million in multifamily loans and $3.4 million in construction and land loans, offset by a decrease of $2.2 million in 1-4 family loans. Special mention loans increased $14.8 million, or 255.7%, to $20.6 million at December 31, 2024 compared to $5.8 million at December 31, 2023.
Most construction loans are made to borrowers that qualify for real estate tax abatements due to a percentage of the units being rent stabilized, generally 30% or less. The effects of rent stabilization may increase the risks related to such loans.
Conversion to permanent financing usually occurs upon a conversion underwriting and receipt of certificates of occupancy, as applicable. 7 Most construction loans are made to borrowers that qualify for real estate tax abatements due to a percentage of the units being rent stabilized, generally 30% or less. The effects of rent stabilization may increase the risks related to such loans.
At December 31, 2023 2022 2021 (in thousands) Interest Rate: 0.05% - 0.99% $ 91,279 $ 161,070 $ 319,684 1.00% - 1.49% 5,442 31,228 44,411 1.50% - 1.99% 5,789 17,659 17,012 2.00% - 2.49% 11,806 33,737 40,671 2.50% - 2.99% 13,054 29,170 5,544 3.00% - 3.49% 48,071 67,438 2,157 3.50% - 3.99% 35,224 22,109 — 4.00% - 4.49% 105,591 13,970 — 4.50% - 4.99% 25,602 — — 5.00% and greater 258,968 237 — Total $ 600,826 $ 376,618 $ 429,479 The following table sets forth the amount and maturities of certificates of deposit by interest rate at December 31, 2023.
At December 31, 2024 2023 2022 (in thousands) Interest Rate: 0.05% - 0.99% $ 71,719 $ 91,279 $ 161,070 1.00% - 1.49% 3,514 5,442 31,228 1.50% - 1.99% 1,885 5,789 17,659 2.00% - 2.49% 974 11,806 33,737 2.50% - 2.99% 18,918 13,054 29,170 3.00% - 3.49% 46,283 48,071 67,438 3.50% - 3.99% 67,448 35,224 22,109 4.00% - 4.49% 271,205 105,591 13,970 4.50% - 4.99% 133,621 25,602 — 5.00% and greater 164,737 258,968 237 Total $ 780,304 $ 600,826 $ 376,618 The following table sets forth the amount and maturities of certificates of deposit by interest rate at December 31, 2024.
The maximum loan term is 30 years, self-amortizing. As a portfolio lender, the Bank presently does offer a fixed-rate product. The Bank currently offers mostly 5/1 and 5/5 adjustable rate loans that adjust based on a spread ranging between 2.75% to 3.00% over the one or five-year FHLBNY rate.
The Bank currently offers mostly 5/1 and 5/5 adjustable rate loans that adjust based on a spread ranging between 2.75% to 3.00% over the one or five-year FHLBNY rate, as well as a fixed-rate product.
According to ASC 326-20-30-9, estimating expected credit losses is highly judgmental and generally will require Ponce Bank to make specific judgments. Ponce Bank will make or obtain reasonable and supportable forecasts of expected credit losses. Ponce Bank uses Federal Open Market Committee to obtain various forecasts for unemployment rate, national gross domestic product and the National Consumer Price Index.
Ponce Bank will make or obtain reasonable and supportable forecasts of expected credit losses. Ponce Bank uses Federal Open Market Committee to obtain various forecasts for unemployment rate, national gross domestic product and the National Consumer Price Index.
The mortgage loan offices are located in Queens (3) and Brooklyn (1), New York and Bergenfield (1), New Jersey. The Company’s primary market area currently consists of the New York City metropolitan area.
The mortgage loan offices are located in Queens (3) and Brooklyn (1), New York and Bergenfield (1), New Jersey. On June 1, 2024, the Company opened a representative office in Coral Gables, Florida. The Company’s primary market area currently consists of the New York City metropolitan area.
At December 31, 2023 2022 2021 2020 2019 Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Available-for-Sale Securities: U.S. Government and Federal Agencies $ — $ — $ — $ — $ — $ — $ — $ — $ 16,373 $ 16,354 U.S.
At December 31, 2024 2023 2022 2021 2020 Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Available-for-Sale Securities: U.S.
Finally, for New Jersey purposes, losses may only be carried forward 20 years, with no allowable carryback period. At December 31, 2023, the Bank has federal net operating loss carryforward of $7.6 million, Connecticut net operation loss carryforward of $0.01 million and New Jersey net operating loss carryforward of $0.2 million.
Finally, for New Jersey purposes, losses may only be carried forward 20 years, with no allowable carryback period. At December 31, 2024, the Company has fully utilized the Connecticut net operation loss carryforward and New Jersey net operating loss carryforward.
Capital. Savings and loan holding companies had historically not been subjected to consolidated regulatory capital requirements. The Dodd-Frank Act required the Federal Reserve Board to establish minimum consolidated capital requirements that are as stringent as those required for the insured depository subsidiaries.
Capital. The Dodd-Frank Act required the Federal Reserve Board to establish minimum consolidated capital requirements that are as stringent as those required for the insured depository subsidiaries.
(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.
(2) As of December 31, 2023, 2022, 2021 and 2020, consumer loans include $8.0 million, $18.2 million, $33.9 million and $25.5 million, respectively, of microloans. At December 31, 2024, these microloans were fully charged-off. 4 Loan Products Offered by the Bank.
At December 31, 2023, approximately $51.9 million, or 34.1%, of this category was secured by properties located in Queens County, $39.1 million, or 25.6%, in Kings County, $13.2 million, or 8.7%, in Bronx County, $12.3 million, or 8.1%, in New York County, $11.0 million, or 7.3%, in Nassau County, $7.7 million, or 5.1%, in Essex County, $7.0 million, or 4.6%, in Richmond County, $3.8 million, or 2.5%, in Bergen County, and $3.2 million, or 2.1%, in Suffolk County.
At December 31, 2024, approximately $48.5 million, or 34.1%, of this category was secured by properties located in Queens County, $33.7 million, or 23.7%, in Kings County, $14.7 million, or 10.3%, in Nassau County, $9.4 million, or 6.6%, in Bronx County, $6.6 million, or 4.6%, in New York County, $6.2 million, or 4.4%, in Westchester County, $6.0 million, or 4.2%, in Richmond County, $5.3 million, or 3.7%, in Suffolk County, $3.3 million, or 2.3%, in Bergen County, $2.2 million, or 1.5%, in Monmouth County and $1.2 million, or 0.9%, in Hudson County.
This includes underwriting only mortgages that have a debt-to-income ratio of 43% or less or that meet non-qualified mortgage standards. A qualified mortgage is presumed to meet the borrower’s ability to repay the loan. As part of this effort, the Bank employs software that tests each loan for qualified mortgage compliance.
This includes underwriting to meet the standard of qualified mortgage requirements set by Freddie Mac or Fannie Mae or that meet non-qualified mortgage standards. A qualified mortgage is presumed to meet the borrower’s ability to repay the loan. As part of this effort, the Bank employs software that tests each loan for qualified mortgage compliance.
At December 31, 2023, loans in process related to construction loans totaled $520.3 million.
At December 31, 2024, loans in process related to construction loans totaled $359.2 million.
In this category, loans totaling $120.5 million, or 35.1%, are secured by properties located in Queens County, $85.2 million, or 24.8%, in Kings County, $25.5 million, or 7.4%, in Nassau County, $25.4 million, or 7.4%, in Essex County, $20.4 million, or 5.9%, in New York County, $18.3 million, or 5.3%, in Bronx County, $10.3 million, or 3.0%, in Hudson County, $9.5 million, or 2.8% in Bergen County, and $6.0 million, or 1.7% in Suffolk County.
In this category, loans totaling $129.2 million, or 39.1%, are secured by properties located in Queens County, $107.3 million, or 32.5%, in Kings County, $41.7 million, or 12.6%, in Bronx County, $11.8 million, or 3.6%, in New York County, $8.0 million, or 2.4%, in Westchester County, $7.2 million, or 2.2%, in Hudson County, $7.1 million, or 2.1% in Bergen County, $5.6 million, or 1.7% in Suffolk County, and $4.3 million, or 1.3%, in Nassau County.
The Bank may also utilize advances from the FHLBNY as a source of investable funds. Other Regulations Interest and other charges collected or contracted for by the Bank are subject to state usury laws and federal laws concerning interest rates.
Other Regulations Interest and other charges collected or contracted for by the Bank are subject to state usury laws and federal laws concerning interest rates.
Agency Bonds $ 25,000 $ 24,819 $ 35,000 $ 34,620 $ — $ — $ — $ — $ — $ — Corporate Bonds 82,500 79,809 82,500 78,738 — — — — — — Mortgage-Backed Securities: Collateralized Mortgage Obligations (1) 212,093 207,027 235,479 230,113 — — — — — — FHLMC Certificates 3,897 3,653 4,120 3,852 934 914 1,743 1,722 — — FNMA Certificates 118,944 114,856 131,918 126,691 — — — — — — SBA Certificates 19,712 19,878 21,803 21,837 — — — — — — Allowance for Credit Losses (398 ) — — — — — — — — — Total held-to-maturity securities $ 461,748 $ 450,042 $ 510,820 $ 495,851 $ 934 $ 914 $ 1,743 $ 1,722 $ — $ — (1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities. 17 During the year ended December 31, 2022, the Company invested primarily in held-to-maturity securities utilizing the $225.0 million the Company received from the issuance of preferred stock to the U.S.
Agency Bonds $ 25,000 $ 24,960 $ 25,000 $ 24,819 $ 35,000 $ 34,620 $ — $ — $ — $ — Corporate Bonds 32,500 31,977 82,500 79,809 82,500 78,738 — — — — Mortgage-Backed Securities: Collateralized Mortgage Obligations (1) 186,634 179,582 212,093 207,027 235,479 230,113 — — — — FHLMC Certificates 3,229 3,006 3,897 3,653 4,120 3,852 934 914 1,743 1,722 FNMA Certificates 105,417 100,303 118,944 114,856 131,918 126,691 — — — — SBA Certificates 15,374 15,466 19,712 19,878 21,803 21,837 — — — — Allowance for Credit Losses (216 ) — (398 ) — — — — — — — Total held-to-maturity securities $ 367,938 $ 355,294 $ 461,748 $ 450,042 $ 510,820 $ 495,851 $ 934 $ 914 $ 1,743 $ 1,722 (1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities. 17 At December 31, 2024 and 2023, there were no securities of which the amortized cost or estimated value exceeded 10% of total equity .

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThere are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing and marketing new lines of business and/or new products and services we may invest significant time and resources.
Biggest changeFrom time to time, we may implement new lines of business or offer new products and services within existing lines of business. In addition, we will continue to make investments in research, development, and marketing for new products and services. There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed.
Loans on land under development or held for future construction also pose additional risk ‎because of the lack of income being produced by the property and the potential illiquid nature of the collateral.‎ Additionally, as discussed under “Risks Related to Laws and Regulations” – “We may be limited in our ability to originate new construction loans in our market area due to legislative changes.”‎ and – “Imposition of limits by the bank regulators on construction lending activities could curtail our growth and adversely affect our ‎earnings.‎” below, we be limited in our ability to make such loans in the future.
Loans on land under development or held for future construction also pose additional risk ‎because of the lack of income being produced by the property and the potential illiquid nature of the collateral.‎ 32 Additionally, as discussed under “Risks Related to Laws and Regulations” – “We may be limited in our ability to originate new construction loans in our market area due to legislative changes.”‎ and – “Imposition of limits by the bank regulators on construction lending activities could curtail our growth and adversely affect our ‎earnings.‎” below, we be limited in our ability to make such loans in the future.
Although the CRE Guidance did not establish specific construction lending limits, it 38 provides that a bank’s commercial real estate lending exposure could receive increased supervisory scrutiny where total non-owner-occupied commercial real estate loans, including loans secured by apartment buildings, investor commercial real estate, and construction and land loans, represent 300% or more of an institution’s total risk-based capital, and the outstanding balance of the commercial real estate loan portfolio has increased by 50% or more during the preceding 36 months.
Although the CRE Guidance did not establish specific construction lending limits, it provides that a bank’s commercial real estate lending exposure could receive increased supervisory scrutiny where total non-owner-occupied commercial real estate loans, including loans secured by apartment buildings, investor commercial real estate, and construction and land loans, represent 300% or more of an institution’s total risk-based capital, and the outstanding balance of the commercial real estate loan portfolio has increased by 50% or more during the preceding 36 months.
If our assumptions are incorrect, or if delinquencies or non-performing loans increase, our allowance for credit losses may not be sufficient to cover losses inherent in our loan portfolio, which would require additions to our allowance, which in turn, could materially decrease our net income. 31 On January 1, 2023, the Company adopted Current Expected Credit Loss, or CECL.
If our assumptions are incorrect, or if delinquencies or non-performing loans increase, our allowance for credit losses may not be sufficient to cover losses inherent in our loan portfolio, which would require additions to our allowance, which in turn, could materially decrease our net income. On January 1, 2023, the Company adopted Current Expected Credit Loss, or CECL.
As a result, we may need to rely on outside consultants to provide these services for us until qualified personnel are hired. These obligations will increase our operating expenses and could divert our management’s attention from our operations. Risks Related to Accounting Matters Changes in accounting standards could affect reported earnings.
As 40 a result, we may need to rely on outside consultants to provide these services for us until qualified personnel are hired. These obligations will increase our operating expenses and could divert our management’s attention from our operations. Risks Related to Accounting Matters Changes in accounting standards could affect reported earnings.
Operational risk is the risk of loss resulting from our operations, including but not limited to, the risk of fraud by employees or persons outside our company, the execution of unauthorized transactions by employees, errors relating to transaction processing and technology, systems failures or interruptions, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery.
Operational risk is the risk of loss resulting from our operations, 39 including but not limited to, the risk of fraud by employees or persons outside our company, the execution of unauthorized transactions by employees, errors relating to transaction processing and technology, systems failures or interruptions, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery.
Finally, as a smaller institution, we are disproportionately affected by the continually increasing costs of compliance with new banking and other regulations. 35 Risks Related to Our Management. We depend on our management team to implement our business strategy and execute successful operations and we could be harmed by the loss of their services.
Finally, as a smaller institution, we are disproportionately affected by the continually increasing costs of compliance with new banking and other regulations. Risks Related to Our Management. We depend on our management team to implement our business strategy and execute successful operations and we could be harmed by the loss of their services.
We expect competition to increase in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry. For additional information see “Business —Market Area and—Competition.” Our small size makes it more difficult for us to compete.
We expect competition to increase in the future as a result of legislative, regulatory and 34 technological changes and the continuing trend of consolidation in the financial services industry. For additional information see “Business —Market Area and—Competition.” Our small size makes it more difficult for us to compete.
In addition, we may be required to fund additional amounts to complete ‎a project, and it may be necessary to hold the property for an indeterminate period of time subject to the regulatory limitations ‎imposed by local, state or federal 33 laws.
In addition, we may be required to fund additional amounts to complete ‎a project, and it may be necessary to hold the property for an indeterminate period of time subject to the regulatory limitations ‎imposed by local, state or federal laws.
While we strive to ensure the accuracy of our modeled interest rate risk profile, there are inherent limitations and imprecisions in this determination and actual results may differ. 36 Future changes in interest rates could reduce our profits and asset values.
While we strive to ensure the accuracy of our modeled interest rate risk profile, there are inherent limitations and imprecisions in this determination and actual results may differ. Future changes in interest rates could reduce our profits and asset values.
Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations. The Bank is subject to extensive regulation, supervision and examination by the OCC, and the Company is subject to extensive regulation, supervision and examination by the Federal Reserve Board.
Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations. 36 The Bank is subject to extensive regulation, supervision and examination by the OCC, and the Company is subject to extensive regulation, supervision and examination by the Federal Reserve Board.
We use interest rate swaps to help manage our interest rate risk in our banking business from recorded financial assets and liabilities when they can be demonstrated to effectively hedge a designated asset or liability and the asset or liability exposes us to interest rate risk.
We may use interest rate swaps to help manage our interest rate risk in our banking business from recorded financial assets and liabilities when they can be demonstrated to effectively hedge a designated asset or liability and the asset or liability exposes us to interest rate risk.
The effect of this unrealized appreciation or depreciation will generally be offset by income or loss on the derivative instruments that are linked to the hedged assets and liabilities. By engaging in derivative transactions, we are exposed to credit and market risk.
The effect of this unrealized appreciation or depreciation will generally be offset by income or loss on the derivative 41 instruments that are linked to the hedged assets and liabilities. By engaging in derivative transactions, we are exposed to credit and market risk.
We attempt to manage our risk from changes in market interest rates by adjusting the rates, maturity, repricing characteristics, and balances of the different types of our interest-earning assets and interest-bearing liabilities. Interest rate risk management techniques are not exact.
We attempt to manage our risk from changes in market interest rates by adjusting the rates, maturity, repricing characteristics, and balances of the different types of our interest-earning assets and interest-bearing liabilities. Interest rate 35 risk management techniques are not exact.
We are a community bank and our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our performance. 43 The Bank is a community bank, and our reputation is one of the most valuable components of our business.
We are a community bank and our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our performance. The Bank is a community bank, and our reputation is one of the most valuable components of our business.
In addition, the CFPB has adopted rules and published forms that combine certain disclosures that consumers receive in connection with applying for and closing on certain mortgage loans under the Truth in Lending Act and the Real Estate Settlement Procedures Act. 39 We are subject to stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or limit our ability to pay dividends or repurchase shares.
In addition, the CFPB has adopted rules and published forms that combine certain disclosures that consumers receive in connection with applying for and closing on certain mortgage loans under the Truth in Lending Act and the Real Estate Settlement Procedures Act. 38 We are subject to stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or limit our ability to pay dividends or repurchase shares.
Risks Related to Interest Rates. Interest rates may continue to rise and the possibility that we may access higher-cost funds to support our loan growth and operations may adversely affect our net interest income and profitability.
Risks Related to Interest Rates. Interest rates may rise and the possibility that we may access higher-cost funds to support our loan growth and operations may adversely affect our net interest income and profitability.
Consequently, the ability of many of our business customers to repay their loans may deteriorate, and in some cases this deterioration may occur quickly, which would adversely impact our results of operations and financial condition. 30 The unseasoned nature of our multifamily, nonresidential and construction and land loans portfolio may result in changes to our estimates of collectability, which may lead to additional provisions or charge-offs, which could hurt our profits.
Consequently, the ability of many of our business customers to repay their loans may deteriorate, and in some cases this deterioration may occur quickly, which would adversely impact our results of operations and financial condition. 29 The unseasoned nature of our multifamily, nonresidential and construction and land loans portfolio may result in changes to our estimates of collectability, which may lead to additional provisions or charge-offs, which could hurt our profits.
Our policies, which require us to perform an environmental review before initiating any foreclosure action on non-residential real property, may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on us. 32 Risks Related to our Business Strategy.
Our policies, which require us to perform an environmental review before initiating any foreclosure action on non-residential real property, may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on us. 31 Risks Related to our Business Strategy.
Although economic conditions have improved in most of our markets, we continue to focus on growing earning assets, we believe that it is possible we will continue to experience an uncertain and volatile economic environment during 2023, including as a result of issues of national security, international conflicts, inflation and supply chain disruptions.
Although economic conditions have improved in most of our markets, we continue to focus on growing earning assets, we believe that it is possible we will continue to experience an uncertain and volatile economic environment during 2025, including as a result of issues of national security, international conflicts, inflation and supply chain disruptions.
The Bank’s borrowing capacity may be adjusted by the FHLBNY and FRB and may take into account factors such as the Bank’s tangible common equity ratio, collateral margins required by the lender or other factors. A possible future downgrade of securities and loans pledged as collateral could also impact the amount of available funding.
The Bank’s borrowing capacity may be adjusted by the FHLBNY and FRBNY and may take into account factors such as the Bank’s tangible common equity ratio, collateral margins required by the lender or other factors. A possible future downgrade of securities and loans pledged as collateral could also impact the amount of available funding.
Borrowings from the FHLBNY and FRB are generally higher cost as compared to core deposits, which will generally lead to decreases in our net interest margin and lower net revenues. Additionally, the Bank’s FHLBNY and FRB membership does not represent a legal commitment to extend credit to the Bank.
Borrowings from the FHLBNY and FRBNY are generally higher cost as compared to core deposits, which will generally lead to decreases in our net interest margin and lower net revenues. Additionally, the Bank’s FHLBNY and FRBNY membership does not represent a legal commitment to extend credit to the Bank.
In recent periods, we have relied on non-core funding sources, primarily borrowings from the FHLBNY and FRB, to fund a portion of our lending activities when we do not have sufficient core deposits.
In recent periods, we have relied on non-core funding sources, primarily borrowings from the FHLBNY and FRBNY, to fund a portion of our lending activities when we do not have sufficient core deposits.
Summary Specific risks related to our business include, but are not limited to, those related to: (1) our status as a CDFI and MDI; (2) inflationary pressures; (3) our planned increase in multifamily, nonresidential and construction and land lending and the unseasoned nature of these loans; (4) residential property and investor-owned properties; (5) loans that we make through our FinTech partnerships; (6) our allowance for credit losses; (7) local and national economic conditions, including conditions specific to the banking industry; (8) environmental liability risks; (9) our ability to achieve and manage our growth strategy; (10) our minority investments in financial technology related companies; (11) competition within the financial services industry, nationally and within our market area and that our small size makes it more difficult to compete; (12) our implementation of new lines of business or offering new products and services; (13) our reliance on our management team; (14) changes in interest rates and the valuation of securities held by us; (15) changes in and compliance with laws and regulations; (16) operational risks including technology, cybersecurity and reputational risks; (17) changes in accounting standards and in management’s estimates and assumptions; (18) our liquidity management; (19) dilution of our stockholders’ ownership interests from our Equity Incentive Plan and stock-based benefit plans; (20) societal responses to climate change; and (21) the gentrification of our markets; (22) the Russia-Ukraine conflicts.
Summary Specific risks related to our business include, but are not limited to, those related to: (1) our status as a CDFI and MDI; (2) inflationary pressures; (3) our planned increase in multifamily, nonresidential and construction and land lending and the unseasoned nature of these loans; (4) residential property and investor-owned properties; (5) our allowance for credit losses; (6) local and national economic conditions, including conditions specific to the banking industry; (7) environmental liability risks; (8) our ability to achieve and manage our growth strategy; (9) our minority investments in financial technology related companies; (10) competition within the financial services industry, nationally and within our market area and that our small size makes it more difficult to compete; (11) our implementation of new lines of business or offering new products and services; (12) our reliance on our management team; (13) changes in interest rates and the valuation of securities held by us; (14) changes in and compliance with laws and regulations; (15) operational risks including technology, cybersecurity and reputational risks; (16) changes in accounting standards and in management’s estimates and assumptions; (17) our liquidity management; (18) dilution of our stockholders’ ownership interests from our Equity Incentive Plan and stock-based benefit plans; (19) societal responses to climate change; and (20) the gentrification of our markets.
If we are unable to obtain funding through the FHLBNY and FRB, we may be forced to seek additional alternative funding sources, which may be higher cost, in order to fund our loan growth.
If we are unable to obtain funding through the FHLBNY and FRBNY, we may be forced to seek additional alternative funding sources, which may be higher cost, in order to fund our loan growth.
Areas 42 requiring significant estimates and assumptions by management include our evaluation of the adequacy of our allowance for loan losses, the valuation of loans held for sale, the valuation of deferred tax assets and investment securities, the estimates relating to the valuation for share-based awards, and our determinations with respect to amounts owed for income taxes.
Areas requiring significant estimates and assumptions by management include our evaluation of the adequacy of our allowance for credit losses, the valuation of loans held for sale, the valuation of deferred tax assets and investment securities, the estimates relating to the valuation for share-based awards, and our determinations with respect to amounts owed for income taxes.
If the FHFA makes significant changes to the eligibility criteria to maintain access to FHLB funding or if the Company fails to maintain its satisfactory rating under the CRA, this could impact the Company’s ability to borrow from the FHLB and require it to find other sources of credit, including borrowing directly from the FRB.
If the FHFA makes significant changes to the eligibility criteria to maintain access to FHLB funding, if the Company fails to maintain its satisfactory rating under the CRA or if the FHFA is significantly modified or eliminated, this could impact the Company’s ability to borrow from the FHLB and require it to find other sources of credit, including borrowing directly from the FRB.
Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assets 37 and influencing the level of our allowance for loan losses.
Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assets and influencing the level of our allowance for credit losses.
Our efficiency ratio is high, and we anticipate that it may remain high, as a result of the ongoing implementation of our business strategy. Our non-interest expense totaled $68.7 million and $85.8 million for the years ended December 31, 2023 and 2022, respectively.
Our efficiency ratio is high, and we anticipate that it may remain high, as a result of the ongoing implementation of our business strategy. Our non-interest expense totaled $66.7 million and $68.7 million for the years ended December 31, 2024 and 2023, respectively.
Although we continue to analyze our expenses and pursue efficiencies where available, our efficiency ratio remains high as a result of the implementation of our business strategy combined with operating in an expensive market. Our efficiency ratio was 90.96% and 117.53% for the years ended December 31, 2023 and 2022, respectively.
Although we continue to analyze our expenses and pursue efficiencies where available, our efficiency ratio remains high as a result of the implementation of our business strategy combined with operating in an expensive market. Our efficiency ratio was 79.66% and 90.96% for the years ended December 31, 2024 and 2023, respectively.
On June 7, 2022, the Company issued 225,000 shares of the Company’s Preferred Stock‎, par value $0.01 for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP.
On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP.
During the years ended December 31, 2023 and 2022, the Company recognized in $1.8 million for both periods, in non-interest expense relating to its stock benefit plans, and we will recognize additional expenses in the future as additional grants are made and awards vest.
During the years ended December 31, 2024 and 2023, the Company recognized in $2.1 million and $1.8 million, respectively, in non-interest expense relating to its stock benefit plans, and we will recognize additional expenses in the future as additional grants are made and awards vest.
We have been and may in the future become involved in legal and regulatory proceedings. We consider most of the proceedings to be in the normal course of our business or typical for the industry; however, it is inherently difficult to assess the outcome of these matters, and we may not prevail in any proceedings or litigation.
We consider most of the proceedings to be in the normal course of our business or typical for the industry; however, it is inherently difficult to assess the outcome of these matters, and we may not prevail in any proceedings or litigation.
Effective liquidity management is essential for the operation of our business. We require sufficient liquidity to meet customer loan requests, customer deposit maturities/withdrawals, payments on our debt obligations as they come due and other cash commitments under both normal operating conditions and other unpredictable circumstances causing industry or general financial market stress.
We require sufficient liquidity to meet customer loan requests, customer deposit maturities/withdrawals, payments on our debt obligations as they come due and other cash commitments under both normal operating conditions and other unpredictable circumstances causing industry or general financial market stress.
In addition, our regulators, as an integral part of their examination process, periodically review the allowance for credit losses and, as a result of such reviews, we may determine that it is appropriate to increase the allowance for credit losses by recognizing additional provisions for loan losses charged to income, or to charge off loans, which, net of any recoveries, would decrease the allowance for credit losses.
CECL requires financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and recognize the expected credit losses as allowances for credit losses. 30 In addition, our regulators, as an integral part of their examination process, periodically review the allowance for credit losses and, as a result of such reviews, we may determine that it is appropriate to increase the allowance for credit losses by recognizing additional provisions for loan losses charged to income, or to charge off loans, which, net of any recoveries, would decrease the allowance for credit losses.
We have made initial and extended forbearances to one-to-four family residential loans as short-term modifications made on a good faith basis in response to the COVID-19 pandemic and in furtherance of governmental policies. We actively monitor borrowers in forbearance and seek to determine their capacity to resume payments as contractually obligated upon the termination of the forbearance period.
We have made and may continue to make initial and extended forbearances to one-to-four family residential loans as short-term modifications made on a good faith basis. We actively monitor borrowers in forbearance and seek to determine their capacity to resume payments as contractually obligated upon the termination of the forbearance period.
We are also subject to risks related to the cyber vulnerabilities of our partners. We may experience negative impacts to our financial condition and results of operations if our partners are subject to cyber fraud or other security breaches, as we have experienced in our partnership with Grain.
We are also subject to risks related to the cyber vulnerabilities of our partners. We may experience negative impacts to our financial condition and results of operations if our partners are subject to cyber fraud or other security breaches.
You should read this entire document carefully, including the Risk Factors below that discusses the above risks in further detail. Risks Related to CDFI and MDI Status. If we were to lose our status as a CDFI and/or MDI, we may lose the ability to obtain grants and awards available to such institutions.
You should read this entire document carefully, including the Risk Factors below that discusses the above risks in further detail. 28 Risks Related to CDFI and MDI Status. We may lose the ability to obtain grants and awards available to CDFIs and/or MDIs institutions.
Construction loans represented 102.5% of the Bank’s total risk-based capital at December 31, 2023, and our multifamily, mixed-use and nonresidential real estate loan portfolio represented 166.6% of the Bank’s total risk-based capital on that same date. In December 2015, the Agencies released a new statement on prudent risk management for commercial real estate lending (the “2015 Statement”).
Construction and land loans represented 145.0% of the Bank’s total risk-based capital at December 31, 2024, and our multifamily, mixed-use and nonresidential real estate loan portfolio represented 196.8% of the Bank’s total risk-based capital on that same date. In December 2015, the Agencies released a new statement on prudent risk management for commercial real estate lending (the “2015 Statement”).
At December 31, 2023 and 2022, one-to-four family residential real estate loans amounted to $496.0 million and $478.8 million, or 25.8% and 31.4%, respectively, of our total loan portfolio. Of these amounts, $343.7 million and $344.0 million, or 69.3% and 71.8%, respectively, is comprised of one-to-four family residential investor-owned properties.
At December 31, 2024 and 2023, one-to-four family residential real estate loans amounted to $472.4 million and $496.0 million, or 20.5% and 25.8%, respectively, of our total loan portfolio. Of these amounts, $330.1 million and $343.7 million, or 69.9% and 69.3%, respectively, is comprised of one-to-four family residential investor-owned properties.
Risk Related to our Operations. We face significant operational risks because the financial services business involves a high volume of transactions and increased reliance on technology, including risk of loss related to cyber security breaches.
The effects of such policies upon our business, financial condition and results of operations cannot be predicted. Risk Related to our Operations. We face significant operational risks because the financial services business involves a high volume of transactions and increased reliance on technology, including risk of loss related to cyber security breaches.
In the event of a breakdown in our internal control systems, improper operation of systems or improper employee actions, or a breach of our security systems, including if confidential or proprietary information were to be mishandled, misused or lost, we could suffer financial loss, face regulatory action, civil litigation and/or suffer damage to our reputation. 41 Negative developments in the U.S. in our primary markets may adversely impact our results in the future.
In the event of a breakdown in our internal control systems, improper operation of systems or improper employee actions, or a breach of our security systems, including if confidential or proprietary information were to be mishandled, misused or lost, we could suffer financial loss, face regulatory action, civil litigation and/or suffer damage to our reputation.
At December 31, 2023, in the event of an instantaneous 100 basis point increase in interest rates, we estimate that we would experience a 4.33% decrease in EVE and a 2.78% decrease in net interest income.
At December 31, 2024, in the event of an instantaneous 100 basis point increase in interest rates, we estimate that we would experience a 5.67% decrease in EVE and a 4.63% decrease in net interest income.
The continuing displacement of minorities due to gentrification of our communities may adversely affect us unless we are able to adapt and increase the acceptance of our products and services by non-minority customers. We may also be unfavorably impacted by political developments unfavorable to markets that are dependent on immigrant populations. Risks Related to Russia—Ukraine Conflict.
The continuing displacement of minorities due to gentrification of our communities may adversely affect us unless we are able to adapt and increase the acceptance of our products and services by non-minority customers. We may also be unfavorably impacted by political developments unfavorable to markets that are dependent on immigrant populations. 42 Item 1B. Unresolve d Staff Comments. Not applicable.
A loss of CDFI and/or MDI status, and the resulting inability to obtain certain grants and awards received in the past, could have an adverse effect on our financial condition, results of operations or business. Risks Related to our Lending Activities.
A loss of CDFI and/or MDI status, and the resulting inability to obtain certain grants and awards received in the past, could have an adverse effect on our financial condition, results of operations or business. Additionally, such grants and awards are offered at the discretion of the Treasury.
The 421-a tax exemption program that offered real estate tax abatements for new multifamily residential housing buildings in New York City market area expired on December 31, 2023, and unless a similar new program is authorized, we expect that the demand for construction loans in our market area will be significantly diminished.
The 421-a tax exemption program that offered real estate tax abatements for new multifamily residential housing buildings in New York City market area expired on December 31, 2023, and unless a similar new program is authorized, we expect that the demand for construction loans in our market area will be significantly diminished. 37 Imposition of limits by the bank regulators on construction lending activities could curtail our growth and adversely affect our earnings.
Our financial performance is highly dependent on the business environment in the markets where we operate and in the U.S. as a whole.
Negative developments in the U.S. in our primary markets may adversely impact our results in the future. Our financial performance is highly dependent on the business environment in the markets where we operate and in the U.S. as a whole.
In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing their loans, which could negatively affect our financial performance. We are subject to environmental liability risk associated with lending activities or properties we own.
In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing their loans, which could negatively affect our financial performance.
While we believe 29 we will be able to meet the certification criteria required to continue our CDFI and MDI status, there is no certainty that we will be able to do so.
We reinvest the proceeds from such grants and awards back into the communities we serve. While we believe we will be able to meet the certification criteria required to continue our CDFI and MDI status, there is no certainty that we will be able to do so.
As a result, our construction loan portfolio has increased to $503.9 million, net of loans-in-process of $520.3 million, or 26.22% of total loans, at December 31, 2023 from $185.0 million, net of loans-in-process of $205.6 million, or 12.13% of total loans, at December 31, 2022.
As a result, our construction loan portfolio has increased to $733.7 million, net of loans-in-process of $359.2 million, or 31.79% of total loans, at December 31, 2024 from $503.9 million, net of loans-in-process of $520.3 million, or 26.22% of total loans, at December 31, 2023.
Although inflationary pressures have begun to stabilize, inflation is currently expected to remain high throughout 2024. Small to medium-sized businesses may be impacted more during periods of high inflation as they are not as able to leverage economics of scale to mitigate cost pressures compared to larger businesses.
Our business and our customers are impacted by inflationary pressures. Although inflationary pressures have begun to stabilize, inflation may increase again during 2025 or thereafter. Small to medium-sized businesses may be impacted more during periods of high inflation as they are not as able to leverage economics of scale to mitigate cost pressures compared to larger businesses.
Our focus is primarily on prudently growing our multifamily, nonresidential and construction and land loan portfolio. At December 31, 2023, $1.40 billion, or 72.7%, of our loan portfolio consisted of multifamily, nonresidential and construction and land loans as compared to $987.7 million, or 64.7%, of our loan portfolio at December 31, 2022.
At December 31, 2024, $1.79 billion, or 77.7%, of our loan portfolio consisted of multifamily, nonresidential and construction and land loans as compared to $1.40 billion, or 72.7%, of our loan portfolio at December 31, 2023.
We have increased our multifamily, nonresidential and construction and land loans, and intend to continue to increase originations of these types of loans. These loans may carry greater credit risk than loans secured by one-to-four family real estate that could adversely affect our financial condition and net income.
These loans may carry greater credit risk than loans secured by one-to-four family real estate that could adversely affect our financial condition and net income. Our focus is primarily on prudently growing our multifamily, nonresidential and construction and land loan portfolio.
Changes in management’s estimates and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results.
In some cases, we could be required to apply new or revised guidance retroactively. Changes in management’s estimates and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results.
Our New York State multi-family loan portfolio could be adversely impacted by changes in legislation or regulation, primarily rent control and rent stabilization.
These changes could materially impact, potentially even retroactively, how we report our financial condition and results of operations Our New York State multi-family loan portfolio could be adversely impacted by changes in legislation or regulation, primarily rent control and rent stabilization.
External factors, such as compliance with regulations, competitive alternatives, and shifting market preferences, may also impact the successful implementation of a new line of business or a new product or service.
Furthermore, if customers do not perceive our new offerings as providing significant value, they may fail to accept our new products and services. External factors, such as compliance with regulations, competitive alternatives, and shifting market preferences, may also impact the successful implementation of a new line of business or a new product or service.
Our multifamily, nonresidential and construction and land loan portfolio has increased approximately $409.1 million, or 41.4%, to $1.40 billion at December 31, 2023 from $987.7 million at December 31, 2022 and increased approximately $265.1 million, or 36.7%, to $987.7 million at December 31, 2022 from $722.6 million at December 31, 2021.
Our multifamily, nonresidential and construction and land loan portfolio has increased approximately $396.9 million, or 28.4%, to $1.79 billion at December 31, 2024 from $1.40 billion at December 31, 2023.
The existence of credit and market risk associated with our derivative instruments could adversely affect our net interest income and, therefore, could have a material adverse effect on our business, financial condition, results of operations and future prospects. Legal and regulatory proceedings and related matters could adversely affect us.
The existence of credit and market risk associated with our derivative instruments could adversely affect our net interest income and, therefore, could have a material adverse effect on our business, financial condition, results of operations and future prospects. Our existing swaps were terminated on January 14, 2025, but we may enter into similar transactions in the future.
Additionally, the Company must maintain a satisfactory rating pursuant to the Community Reinvestment Act (“CRA”) to maintain its ability to access FHLB funding.
Additionally, the Company must maintain a satisfactory rating pursuant to the Community Reinvestment Act (“CRA”) to maintain its ability to access FHLB funding. Additionally, the current Presidential Administration may seek to make regulatory changes, including modifying or eliminating the FHFA.
If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates. Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending requirements for the lower dividend rates.
If we are unable to make qualified and/or deep impact loans at required levels, we will be required to pay dividends at the higher annual rates.
At December 31, 2023 and 2022, our ACL totaled $26.2 million and $34.6 million, which represented 1.36%, and 2.27% of total loans, respectively. Included in the allowance for loan losses were $6.8 million and $15.4 million related to Grain at December 31, 2023 and 2022, respectively.
At December 31, 2024 and 2023, our ACL totaled $22.5 million and $26.2 million, which represented 0.97%, and 1.36% of total loans, respectively. Included in the allowance for credit losses at December 31, 2023, was $6.8 million related to microloans. There was no allowance for credit losses related to microloans at December 31, 2024 as these microloans were charged-off.
At December 31, 2023, 16,218 loans with an aggregate balance of $1.77 billion are to borrowers with only one loan. Another 170 loans are to borrowers with two loans each with a corresponding aggregate balance of $128.5 million.
At December 31, 2024, 1,492 loans with an aggregate balance of $2.16 billion are to borrowers with only one loan. Another 164 loans are to borrowers with two loans each with a corresponding aggregate balance of $123.6 million. In addition, 30 loans are to borrowers with three loans each with a corresponding aggregate balance of $26.1 million.
These changes could materially impact, potentially even retroactively, how we report our financial condition and results of operations. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) significantly changed the regulation of banks and savings institutions and affects the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) significantly changed the regulation of banks and savings institutions and affects the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies, including the establishment of the CFPB as an additional regulatory agency.
An important component of our ability to mitigate pressures of a rising rate environment will be our ability to prudently increase the rates we pay on deposits, including core deposits. If we were to increase these rates, because of competitive pricing pressures in our markets, liquidity purposes or otherwise, our net interest margin may be negatively impacted.
We may be negatively impacted if we are unable to appropriately time adjustments to our funding costs and the rates we earn on our loans. An important component of our ability to mitigate pressures of a rising rate environment will be our ability to prudently increase the rates we pay on deposits, including core deposits.
Initial timetables for the development and introduction of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove feasible. Furthermore, if customers do not perceive our new offerings as providing significant value, they may fail to accept our new products and services.
In developing and marketing new lines of business and/or new products and services we may invest significant time and resources. Initial timetables for the development and introduction of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove feasible.
In addition, as our growth in earning assets has outpaced growth in our core deposits in recent quarters, we have had to increase our reliance on noncore funding.
If we were to increase these rates, because of competitive pricing pressures in our markets, liquidity purposes or otherwise, our net interest margin may be negatively impacted. In addition, as our growth in earning assets has outpaced growth in our core deposits in recent quarters, we have had to increase our reliance on noncore funding.
At December 31, 2023 and 2022, our securities portfolio totaled $581.7 million and $640.3 million, which represented 21.1% and 27.7% of total assets, respectively. The securities portfolio as of December 31, 2023 and 2022 were classified as available-for-sale in the amount of $119.9 and $129.5 million and held-to-maturity in the amount of $461.7 million and $510.8 million, respectively.
The securities portfolio as of December 31, 2024 and 2023 were classified as available-for-sale securities, at fair value, in the amount of $105.0 and $119.9 million and held-to-maturity securities, at amortized costs, in the amount of $367.9 million and $461.7 million, respectively.
If we are unable to successfully implement our business strategy and increase our revenues, our profitability could be adversely affected. We have received an investment under the Emergency Capital Investment Program (“ECIP”) from the U.S.
Our efficiency ratio for the year ended December 31, 2024 improved compared with prior year due to increase in net interest income. If we are unable to successfully implement our business strategy and increase our revenues and decrease our total non-interest expense, our profitability could be adversely affected. We have received an investment under the ECIP from the U.S.
Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations. Further, changes in accounting standards can be both difficult to predict and involve judgment and discretion in interpretation by us.
The current Presidential Administration may seek to make changes to our current regulatory framework and the agencies ‎that regulate our business, which changes may include combining or disbanding certain regulatory agencies. Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations.
During 2022, the Company had wrote-off its entire $1.0 million investment in Grain, and may be subject to similar losses in connection with other investments in the future. We may not be able to influence the activities of companies in which we invest and may suffer additional losses in the future due to these activities.
We may not be able to influence the activities of companies in which we invest and may suffer additional losses in the future due to these activities. New lines of business or new products and services may subject us to additional risks.
As of December 31, 2023, 74.6% of our deposits are estimated to be FDIC-insured, and an additional 4.4% of deposits were fully collateralized. The average account size of our consumer deposits is less than $40,000, and the average account size of our business deposits is less than $50,000. Ineffective liquidity management could adversely affect our financial results and condition.
As of December 31, 2024, 23.1% of our deposits are estimated to be above FDIC-insurance limits. Ineffective liquidity management could adversely affect our financial results and condition. Effective liquidity management is essential for the operation of our business.
The Treasury approved our prior stock repurchase program, but there is no assurance that they would approve a similar program in the future. 34 We may be dependent on borrowings from the FHLBNY and FRB to grow our lending activities, which may negatively impact our results of operations.
Although the Company currently meets the general eligibility criteria, other than satisfying one of the Threshold Conditions, there can be no assurance that the Company will meet such criteria in the future. We may be dependent on borrowings from the FHLBNY and FRBNY to grow our lending activities, which may negatively impact our results of operations.
Removed
We have received over $4.2 million in such awards over the last two years. We reinvest the proceeds from such grants and awards back into the communities we serve.
Added
To the extent the current Presidential Administration, or any future administration, seeks to reduce the amounts of such grants and awards available, we may be negatively impacted. Risks Related to our Lending Activities. We have increased our multifamily, nonresidential and construction and land loans, and intend to continue to increase originations of these types of loans.
Removed
In addition, 24 loans are to borrowers with three loans each with a corresponding aggregate balance of $17.9 million and 8 loans are to borrowers with four loans with an aggregate balance of $0.9 million. Our business and our customers are impacted by inflationary pressures.
Added
Additionally, the current Presidential Administration is seeking to enact significant changes that may impact economic conditions, ‎including changes to the size and scope of the federal government. These changes, if implemented and taken as a whole, may have ‎varied effects on the economy that are difficult to predict.
Removed
CECL requires financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and recognize the expected credit losses as allowances for credit losses.
Added
To the extent such changes have an adverse impact on the ‎local economies where we operate, our business, financial condition and results of operations may be adversely impacted. We are subject to environmental liability risk associated with lending activities or properties we own.
Removed
New lines of business or new products and services may subject us to additional risks. From time to time, we may implement new lines of business or offer new products and services within existing lines of business. In addition, we will continue to make investments in research, development, and marketing for new products and services.
Added
Additionally, we may make qualified and/or deep impact loans that are riskier than we otherwise would in an effort to meet the lending requirements for the lower dividend rates and/or to qualify for the purchase option under the Repurchase Agreement (as described below).

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+0 added−0 removed4 unchanged
Biggest changeThe Company is a regulated entity and undergoes regulatory reviews to ensure the Bank remains in compliance with all appropriate standards, including related to its management of third-party vendors. Internally, the cybersecurity program is managed by the Company’s Senior Vice President, Chief Information Security Officer and Chief Information Officer.
Biggest changeThe Company is a regulated entity and undergoes regulatory reviews to ensure the Bank remains in compliance with all appropriate standards, including related to its management of third-party vendors. Internally, the cybersecurity program is managed by the Company’s Senior Vice President and Chief Information Officer.
The Company’s Senior Vice President and Chief Information Systems Officer also regularly reports to the Company’s executive risk management (“ERM”) committee, which oversees Company-wide risk at the management level, regarding cybersecurity risks. Members of the ERM committee include our President and Chief Executive Officer.
The Company’s Senior Vice President and Chief Information Officer also regularly reports to the Company’s executive risk management (“ERM”) committee, which oversees Company-wide risk at the management level, regarding cybersecurity risks. Members of the ERM committee include our President and Chief Executive Officer.
See Item 1A. “Risk Factors.” – “We face significant operational risks because the financial services business involves a high volume of transactions and ‎increased reliance on technology, including risk of loss related to cyber security breaches.‎”‎ for further ‎discussion of potential risks related to cybersecurity incidents.‎ 45
See Item 1A. “Risk Factors.” – “We face significant operational risks because the financial services business involves a high volume of transactions and ‎increased reliance on technology, including risk of loss related to cyber security breaches.‎”‎ for further ‎discussion of potential risks related to cybersecurity incidents.‎ 43

Item 2. Properties

Properties — owned and leased real estate

3 edited+1 added−1 removed0 unchanged
Biggest changeLeased 1990 676 Bronx, NY 10459 37-60 82nd Street Leased 2021 — Jackson Heights, NY 11372 51 East 170th Street Leased 2018 678 Bronx, NY 10452 169 Smith Street Leased 2021 — Brooklyn, NY 11201 207 East 106th Street Leased 2006 1,374 New York, NY 10029 2244 Westchester Avenue Leased 2021 — Bronx, NY 10462 5560 Broadway Leased 2021 1,476 Bronx, NY 10463 34-05 Broadway Leased 2001 761 Astoria, NY 11106 3821 Bergenline Avenue Leased 2021 — Union City, NJ 07087 1900 Ralph Avenue Leased 2007 442 Brooklyn, NY 11234 20-47 86th Street Owned 2010 3,340 Brooklyn, NY 11214 100-20 Queens Boulevard Leased 2010 154 Forest Hills, NY 11375 319 1st Avenue Leased 2010 416 New York, NY 10003 32-75 Steinway Street Leased 2020 99 Astoria, NY 11103 2612 East 16th Street Leased 2020 — Brooklyn, NY 11235 42 South Washington Avenue Leased 2020 — Bergenfield, NJ 07621 135-14 Northern Blvd.
Biggest changeLeased 1990 596 Bronx, NY 10459 37-60 82nd Street Leased 2021 37 Jackson Heights, NY 11372 51 East 170th Street Leased 2018 615 Bronx, NY 10452 169 Smith Street Leased 2021 102 Brooklyn, NY 11201 207 East 106th Street Leased 2006 1,235 New York, NY 10029 2244 Westchester Avenue Leased 2021 485 Bronx, NY 10462 5560 Broadway Leased 2021 1,359 Bronx, NY 10463 34-05 Broadway Leased 2001 693 Astoria, NY 11106 3821 Bergenline Avenue Leased 2021 38 Union City, NJ 07087 1900 Ralph Avenue Leased 2007 405 Brooklyn, NY 11234 20-47 86th Street Owned 2010 3,249 Brooklyn, NY 11214 100-20 Queens Boulevard Leased 2010 75 Forest Hills, NY 11375 319 1st Avenue Leased 2010 292 New York, NY 10003 32-75 Steinway Street Leased 2020 70 Astoria, NY 11103 2612 East 16th Street Leased 2020 — Brooklyn, NY 11235 42 South Washington Avenue Leased 2020 — Bergenfield, NJ 07621 135-14 Northern Blvd.
The following table sets forth information regarding the Company’s offices as of December 31, 2023. Location Leased or Owned Year Acquired or Leased Net Book Value of Real Property (in thousands) Main Office: 2244 Westchester Avenue Leased 2021 $ 426 Bronx, NY 10462 Other Properties: 980 Southern Blvd.
The following table sets forth information regarding the Company’s offices as of December 31, 2024. Location Leased or Owned Year Acquired or Leased Net Book Value of Real Property (in thousands) Main Office: 2244 Westchester Avenue Leased 2021 $ 272 Bronx, NY 10462 Other Properties: 980 Southern Blvd.
Item 2. Pro perties. As of December 31, 2023, the net book value of the Company’s office properties including leasehold improvements was $13.4 million, and the net book value of its furniture, fixtures and other equipment and software was $2.7 million. The Company’s and Bank’s executive offices are located at 2244 Westchester Avenue, Bronx, New York.
Item 2. Pro perties. As of December 31, 2024, the net book value of the Company’s office properties including leasehold improvements was $12.9 million, and the net book value of its furniture, fixtures and other equipment and software was $3.9 million. The Company’s and Bank’s executive offices are located at 2244 Westchester Avenue, Bronx, New York.
Removed
Owned 2020 3,505 Flushing, NY 11354 $ 13,347 46
Added
Owned 2020 3,412 Flushing, NY 11354 1600 Ponce de Leon Boulevard Leased 2024 — Coral Gables, FL 33134 $ 12,935 44

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeWe are not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows. Item 4. Mine Saf ety Disclosures. Not applicable. 47 PAR T II
Biggest changeWe are not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows. Item 4. Mine Saf ety Disclosures. Not applicable. 45 PAR T II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+1 added−2 removed7 unchanged
Biggest changeRegulations of the Federal Reserve Board and the OCC impose limitations on “capital distributions” by savings institutions.
Biggest changeRegulations of the Federal Reserve Board and the OCC impose limitations on “capital distributions” by savings institutions. See “Regulation and Supervision—Federal Bank Regulation—Capital Requirements.” We will file a consolidated federal tax return.
The number of record-holders may not reflect the number of persons or entities holding stock in nominee name through banks, brokerage firms and other nominees. To date, the Company has not paid any dividends to its stockholders. We have no current plan or intention to pay cash dividends to our common stockholders.
The number of record-holders may not reflect the number of persons or entities holding stock in nominee name through banks, brokerage firms and other nominees. To date, the Company has not paid any dividends to its common stockholders. We have no current plan or intention to pay cash dividends to our common stockholders.
The Company‎ closed a private placement of 225,000 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series A‎, par value $0.01 for an aggregate purchase price equal to $225.0 million in cash, to the Treasury pursuant to the ECIP.‎ The Preferred Stock has priority over the holders of our shares of common stock with respect to the payment of dividends.
The Company‎ issued 225,000 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series A‎, par value $0.01 for an aggregate purchase price equal to $225.0 million in cash, to the Treasury in a private placement pursuant to the ECIP.‎ The Preferred Stock has priority over the holders of our shares of common stock with respect to the payment of dividends.
Item 5. Market for Registrant’s Common Equity, Related Stoc kholder Matters and Issuer Purchases of Equity Securities. The Company’s shares of common stock are traded on the NASDAQ Stock Market, LLC under the symbol “PDLB”. The number of stockholders of record of the Company’s common stock as of March 18, 2024 was 352.
Item 5. Market for Registrant’s Common Equity, Related Stoc kholder Matters and Issuer Purchases of Equity Securities. The Company’s shares of common stock are traded on the NASDAQ Stock Market, LLC under the symbol “PDLB”. The number of stockholders of record of the Company’s common stock as of March 11, 2025 was 327.
See “Regulation and Supervision—Federal Bank Regulation—Capital Requirements.” No assurances can be given that any dividends will be paid or that, if paid, will not be reduced or eliminated in the future. We will file a consolidated federal tax return.
See “Regulation and Supervision—Federal Bank Regulation—Capital Requirements.” No assurances can be given that any dividends will be paid or that, if paid, will not be reduced or eliminated in the future.
Removed
See “Regulation and Supervision—Federal Bank Regulation—Capital Requirements.” Any payment of dividends by Ponce Bank to the Company that would be deemed to be drawn out of Ponce Bank’s bad debt reserves, if any, would require a payment of taxes at the then-current tax rate by Ponce Bank on the amount of earnings deemed to be removed from the reserves for such distribution.
Added
The Company began paying dividends on its Preferred Stock during the quarter ended June 30, 2024, as required by the terms thereof.
Removed
Ponce Bank does not intend to make any distribution to the Company that would create such a federal tax liability. See “Taxation.” Item 6. R eserved. 48

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

103 edited+53 added−43 removed65 unchanged
Biggest changeThe composition of deposits at December 31, 2023 and 2022 and changes in dollars and percentages are summarized as follows: December 31, 2023 December 31, 2022 Increase (Decrease) Percent Percent Amount of Total Amount of Total Dollars Percent (Dollars in thousands) Demand $ 243,384 16.1 % $ 289,149 23.1 % $ (45,765 ) (15.8 %) Interest-bearing deposits: NOW/IOLA accounts 19,676 1.3 % 24,349 1.9 % (4,673 ) (19.2 %) Money market accounts (1) 432,735 28.7 % 236,143 18.9 % 196,592 83.3 % Reciprocal deposits 96,860 6.4 % 114,049 9.1 % (17,189 ) (15.1 %) Savings accounts 114,139 7.6 % 130,432 10.4 % (16,293 ) (12.5 %) Total NOW, money market, reciprocal and savings 663,410 44.0 % 504,973 40.3 % 158,437 31.4 % Certificates of deposit of $250K or more (1) 132,153 8.8 % 106,336 8.5 % 25,817 24.3 % Brokered certificates of deposit (2) 98,729 6.6 % 98,754 7.9 % (25 ) (0.0 %) Listing service deposits (2) 14,433 1.0 % 35,813 2.9 % (21,380 ) (59.7 %) Certificates of deposit less than $250K (1) 355,511 23.6 % 217,387 17.4 % 138,124 63.5 % Total certificates of deposit 600,826 39.9 % 458,290 36.6 % 142,536 31.1 % Total interest-bearing deposits 1,264,236 83.9 % 963,263 76.9 % 300,973 31.2 % Total deposits $ 1,507,620 100.0 % $ 1,252,412 100.0 % $ 255,208 20.4 % (1) As of December 31, 2022, $81.7 million of Raisin (formerly known as SaveBetter) deposits were reclassified from money market accounts to certificates of deposits. $36.2 million were reclassified to Certificates of deposits of $250K or more and $45.5 million were reclassified to certificates of deposit less than $250K.
Biggest changeThe composition of deposits at December 31, 2024 and 2023 and changes in dollars and percentages are summarized as follows: December 31, 2024 December 31, 2023 Increase (Decrease) Percent Percent Amount of Total Amount of Total Dollars Percent (Dollars in thousands) Demand (1) $ 169,178 9.0 % $ 185,151 12.3 % $ (15,973 ) (8.6 %) Interest-bearing deposits: NOW/IOLA accounts (1) 62,616 3.3 % 77,909 5.2 % (15,293 ) (19.6 %) Money market accounts 636,219 33.8 % 432,735 28.7 % 203,484 47.0 % Reciprocal deposits 130,677 6.9 % 96,860 6.4 % 33,817 34.9 % Savings accounts 105,870 5.6 % 114,139 7.6 % (8,269 ) (7.2 %) Total NOW, money market, reciprocal and savings 935,382 49.6 % 721,643 47.9 % 213,739 29.6 % Certificates of deposit of $250K or more (2) 204,293 10.8 % 167,530 11.0 % 36,763 21.9 % Brokered certificates of deposit (3) 94,531 5.0 % 98,729 6.6 % (4,198 ) (4.3 %) Listing service deposits (3) 7,376 0.4 % 14,433 1.0 % (7,057 ) (48.9 %) Certificates of deposit less than $250K (2) 474,104 25.2 % 320,134 21.1 % 153,970 48.1 % Total certificates of deposit 780,304 41.4 % 600,826 39.8 % 179,478 29.9 % Total interest-bearing deposits 1,715,686 91.0 % 1,322,469 87.7 % 393,217 29.7 % Total deposits $ 1,884,864 100.0 % $ 1,507,620 100.0 % $ 377,244 25.0 % (1) As of December 31, 2023, $58.2 million were reclassified from demand to NOW/IOLA accounts.
The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The total column represents the sum of the prior columns.
The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The total column represents the sum of the prior columns.
Although an instantaneous and severe shift in interest rates was used in this analysis to provide an estimate of exposure under these scenarios, management believes that a gradual shift in interest rates would have a more modest impact.
Although an instantaneous and severe shift in interest rates was used in this analysis to provide an estimate of exposure under these scenarios, management believes that a gradual shift in interest rates would have a more modest impact.
The amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability.
The amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the earlier of term to repricing or the contractual maturity of the asset or liability.
The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and as a result of contractual rate adjustments on adjustable-rate loans.
The loan amounts in the table reflect principal balances expected to be redeployed and/or repriced as a result of contractual amortization and as a result of contractual rate adjustments on adjustable-rate loans.
A “Regulatory Capital Treatment Event” means a good-faith determination that, as a result of (i) any amendment to, or change in, the laws, rules or regulations of the United States or any political subdivision of or in the United States (including, for the avoidance of doubt, any agency or instrumentality of the United States, including the Federal Reserve and other appropriate federal bank regulatory agencies) that is enacted or becomes effective after the initial issuance of any share of the Preferred Stock; (ii) any proposed change in those laws, rules or regulations that is announced after the initial issuance of any share of the Preferred Stock; or (iii) any official administrative or judicial decision or administrative action or other official pronouncement interpreting or applying those laws, rules or 53 regulations or policies with respect thereto that is announced or becomes effective after the initial issuance of the Preferred Stock, there is more than an insubstantial risk that we will not be entitled to treat the full liquidation preferences of the shares of Preferred Stock then outstanding as “Additional Tier 1 Capital” (or its equivalent) for purposes of the capital adequacy standards of Federal Reserve Regulation Q, 12 C.F.R.
A “Regulatory Capital Treatment Event” means a good-faith determination that, as a result of (i) any amendment to, or change in, the laws, rules or regulations of the United States or any political subdivision of or in the United States (including, for the avoidance of doubt, any agency or instrumentality of the United States, including the Federal Reserve and other appropriate federal bank regulatory agencies) that is enacted or becomes effective after the initial issuance of any share of the Preferred Stock; (ii) any proposed change in 51 those laws, rules or regulations that is announced after the initial issuance of any share of the Preferred Stock; or (iii) any official administrative or judicial decision or administrative action or other official pronouncement interpreting or applying those laws, rules or regulations or policies with respect thereto that is announced or becomes effective after the initial issuance of the Preferred Stock, there is more than an insubstantial risk that we will not be entitled to treat the full liquidation preferences of the shares of Preferred Stock then outstanding as “Additional Tier 1 Capital” (or its equivalent) for purposes of the capital adequacy standards of Federal Reserve Regulation Q, 12 C.F.R.
Our net interest income may also be negatively impacted if the demand for loans decreases due to the rate increases, alone or in tandem with the concurrent inflationary pressures. We may be negatively impacted if we are unable to appropriately time adjustments to our funding costs and the rates we earn on our loans. GAP Analysis .
Our net interest income may also be positively impacted if the demand for loans increases due to the rate decreases, alone or in tandem with the concurrent inflationary pressures. We may be negatively impacted if we are unable to appropriately time adjustments to our funding costs and the rates we earn on our loans. GAP Analysis .
The preparation of these consolidated financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. The estimates and assumptions used are based on historical experience and various other factors and are believed to be reasonable under the circumstances.
The preparation of these consolidated financial statements requires 49 management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. The estimates and assumptions used are based on historical experience and various other factors and are believed to be reasonable under the circumstances.
Economic values are determined by discounting expected cash flows from assets, liabilities and off-balance sheet items, which establishes a base case EVE. Rates are then shocked as 63 prescribed by the Interest Rate Risk Policy to measure the sensitivity in EVE values for each of those shocked rate scenarios versus the base case.
Economic values are determined by discounting 61 expected cash flows from assets, liabilities and off-balance sheet items, which establishes a base case EVE. Rates are then shocked as prescribed by the Interest Rate Risk Policy to measure the sensitivity in EVE values for each of those shocked rate scenarios versus the base case.
Based on current internal loan reviews, the Company believes that the quality of our underwriting, our weighted average loan-to-value ratio of 57.8% and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio.
Based on current internal loan reviews, the Company believes that the quality of our underwriting, our weighted average loan-to-value ratio of 57.0% and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio.
(2) Securities include available-for-sale securities and held-to-maturity securities. 62 Management of Market Risk General . The most significant form of market risk is interest rate risk because, as a financial institution, the majority of the Bank’s assets and liabilities are sensitive to changes in interest rates.
(2) Securities include available-for-sale securities and held-to-maturity securities. 60 Management of Market Risk General . The most significant form of market risk is interest rate risk because, as a financial institution, the majority of the Bank’s assets and liabilities are sensitive to changes in interest rates.
The following table sets forth the Company’s interest-earning assets and its interest-bearing liabilities at December 31, 2023, which are anticipated to reprice or mature in each of the future time periods shown based upon certain assumptions.
The following table sets forth the Company’s interest-earning assets and its interest-bearing liabilities at December 31, 2024, which are anticipated to reprice or mature in each of the future time periods shown based upon certain assumptions.
For example, decreases in market interest rates can increase the fair values of loans, deposits and borrowings. 66 Liquidity and Capital Resources Liquidity describes the ability to meet the financial obligations that arise in the ordinary course of business.
For example, decreases in market interest rates can increase the fair values of loans, deposits and borrowings. 64 Liquidity and Capital Resources Liquidity describes the ability to meet the financial obligations that arise in the ordinary course of business.
Discussion and analysis of our 2022 fiscal year specifically, as well as the year-over-year comparison of our 2022 financial performance to 2021, are located under Part II, Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on March 21, 2023, which is available on our investor relations website at poncebank.gcs-web.com and the SEC's website at sec.gov.
Discussion and analysis of our 2023 fiscal year specifically, as well as the year-over-year comparison of our 2023 financial performance to 2022, are located under Part II, Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on March 19, 2024, which is available on our investor relations website at poncebank.gcs-web.com and the SEC's website at sec.gov.
The composition of securities at December 31, 2023 and 2022 and the amounts maturing of each classification are summarized as follows: December 31, 2023 December 31, 2022 Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) Available-for-Sale Securities: U.S.
The composition of securities at December 31, 2024 and 2023 and the amounts maturing of each classification are summarized as follows: December 31, 2024 December 31, 2023 Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) Available-for-Sale Securities: U.S.
At December 31, 2023, the EVE model indicated that the Bank was in compliance with the Board of Directors approved Interest Rate Risk Policy. Most Likely Earnings Simulation Models .
At December 31, 2024, the EVE model indicated that the Bank was in compliance with the Board of Directors approved Interest Rate Risk Policy. Most Likely Earnings Simulation Models .
At December 31, 2023, the earnings simulation model indicated that the Bank was in compliance with the Board of Directors approved Interest Rate Risk Policy. Economic Value of Equity Model .
At December 31, 2024, the earnings simulation model indicated that the Bank was in compliance with the Board of Directors approved Interest Rate Risk Policy. Economic Value of Equity Model .
The overall reliance on wholesale funding and noncore funding were within those policy limitations as of December 31, 2023 and 2022. The Management Asset/Liability Committee generally meets on a bi-weekly basis to review funding needs, if any, and to ensure the Company operates within the approved limitations. Borrowings.
The overall reliance on wholesale funding and noncore funding were within those policy limitations as of December 31, 2024 and 2023. The Management Asset/Liability Committee generally meets on a weekly basis to review funding needs, if any, and to ensure the Company operates within the approved limitations. Borrowings.
The table sets forth an approximation of the projected repricing of assets and liabilities at December 31, 2022, on the basis of contractual maturities, anticipated prepayments and scheduled rate adjustments.
The table sets forth an approximation of the projected repricing of assets and liabilities at December 31, 2024, on the basis of contractual maturities, anticipated prepayments and scheduled rate adjustments.
Net cash used in investing activities, which consists primarily of disbursements for loan originations, purchases of new securities, and purchase of equipment offset by principal collections on loans, proceeds from maturities, calls and principal repayments on securities was ($332.9) million and ($777.1) million for the years ended December 31, 2023 and 2022, respectively.
Net cash used in investing activities, which consists primarily of disbursements for loan originations, purchases of new securities, and purchase of equipment offset by principal collections on loans, proceeds from maturities, calls and principal repayments on securities was ($294.9) million and ($332.9) million for the years ended December 31, 2024 and 2023, respectively.
The Company has the option to redeem the shares of Preferred Stock (i) in whole or in part on any dividend payment date on or after June 15, 2027, or (ii) in whole but not in part at any time within ninety days following a Regulatory Capital Treatment Event, as defined below, in each case at a cash redemption price equal to the liquidation amount, with an amount equal to any dividends that have been declared but not paid prior to the redemption date.
In addition to the repurchase rights under the Repurchase Agreement (described above), the Company has the option to redeem the shares of Preferred Stock (i) in whole or in part on any dividend payment date on or after June 15, 2027, or (ii) in whole but not in part at any time within ninety days following a Regulatory Capital Treatment Event, as defined below, in each case at a cash redemption price equal to the liquidation amount, with an amount equal to any dividends that have been declared but not paid prior to the redemption date.
December 31, 2023 Time to Repricing Zero to 90 Days Zero to 180 Days Zero Days to One Year Zero Days to Two Years Zero Days to Five Years Five Years Plus Total Earning Assets & Costing Liabilities Non Earning Assets & Non Costing Liabilities Total (Dollars in thousands) Assets: Interest-bearing deposits in banks $ 110,260 $ 110,260 $ 110,260 $ 110,260 $ 110,260 $ — $ 110,260 $ 28,930 $ 139,190 Securities (1) 26,981 68,513 116,391 208,107 359,754 242,162 601,916 (20,266 ) 581,650 Placements with banks 249 249 249 249 249 — 249 — 249 Net loans (includes LHFS) 192,336 295,027 500,951 982,210 1,797,535 111,445 1,908,980 (3,114 ) 1,905,866 FHLBNY stock 19,392 19,392 19,392 19,392 19,392 — 19,392 (15 ) 19,377 Other assets — — — — — — — 104,390 104,390 Total $ 349,218 $ 493,441 $ 747,243 $ 1,320,218 $ 2,287,190 $ 353,607 $ 2,640,797 $ 109,925 $ 2,750,722 Liabilities: Non-maturity deposits $ 43,026 $ 86,052 $ 172,104 $ 344,208 $ 647,511 $ 69,506 $ 717,017 $ 189,777 $ 906,794 Certificates of deposit 220,322 291,437 449,484 508,888 600,826 — 600,826 — 600,826 Borrowings 204,000 304,000 363,321 413,321 634,421 50,000 684,421 — 684,421 Other liabilities - - - - - - - 67,286 67,286 Total liabilities 467,348 681,489 984,909 1,266,417 1,882,758 119,506 2,002,264 257,063 2,259,327 Capital — — — — — — — 491,395 491,395 Total liabilities and capital $ 467,348 $ 681,489 $ 984,909 $ 1,266,417 $ 1,882,758 $ 119,506 $ 2,002,264 $ 748,458 $ 2,750,722 Asset/liability gap $ (118,130 ) $ (188,048 ) $ (237,666 ) $ 53,801 $ 404,432 $ 234,101 $ 638,533 Gap/assets ratio 74.72 % 72.41 % 75.87 % 104.25 % 121.48 % 295.89 % 131.89 % (1) Includes available-for-sale securities and held-to-maturity securities. 65 The following table sets forth the Company’s interest-earning assets and its interest-bearing liabilities at December 31, 2022, which are anticipated to reprice or mature in each of the future time periods shown based upon certain assumptions.
December 31, 2023 Time to Repricing Zero to 90 Days Zero to 180 Days Zero Days to One Year Zero Days to Two Years Zero Days to Five Years Five Years Plus Total Earning Assets & Costing Liabilities Non Earning Assets & Non Costing Liabilities Total (Dollars in thousands) Assets: Interest-bearing deposits in banks $ 110,260 $ 110,260 $ 110,260 $ 110,260 $ 110,260 $ — $ 110,260 $ 28,930 $ 139,190 Securities (1) 26,981 68,513 116,391 208,107 359,754 242,162 601,916 (20,266 ) 581,650 Placement with banks 249 249 249 249 249 — 249 — 249 Net loans (includes LHFS) 192,336 295,027 500,951 982,210 1,797,535 111,445 1,908,980 (3,114 ) 1,905,866 FHLBNY stock 19,392 19,392 19,392 19,392 19,392 — 19,392 (15 ) 19,377 Other assets — — — — — — — 104,390 104,390 Total $ 349,218 $ 493,441 $ 747,243 $ 1,320,218 $ 2,287,190 $ 353,607 $ 2,640,797 $ 109,925 $ 2,750,722 Liabilities: Non-maturity deposits $ 43,026 $ 86,052 $ 172,104 $ 344,208 $ 647,511 $ 69,506 717,017 189,777 $ 906,794 Certificates of deposit 220,322 291,437 449,484 508,888 600,826 — 600,826 — 600,826 Borrowings 204,000 304,000 363,321 413,321 634,421 50,000 684,421 — 684,421 Other liabilities — — — — — — — 67,286 67,286 Total liabilities 467,348 681,489 984,909 1,266,417 1,882,758 119,506 2,002,264 257,063 2,259,327 Capital — — — — — — — 491,395 491,395 Total liabilities and capital $ 467,348 $ 681,489 $ 984,909 $ 1,266,417 $ 1,882,758 $ 119,506 $ 2,002,264 $ 748,458 $ 2,750,722 Asset/liability gap $ (118,130 ) $ (188,048 ) $ (237,666 ) $ 53,801 $ 404,432 $ 234,101 $ 638,533 Gap/assets ratio 74.72 % 72.41 % 75.87 % 104.25 % 121.48 % 295.89 % 131.89 % (1) Includes available-for-sale securities and held-to-maturity securities.
Management believes that it has established the appropriate level of controls to monitor the Bank’s lending in these areas. Mortgage Loans Held For Sale . Mortgage loans held for sale, at fair value, at December 31, 2023 increased $8.0 million to $10.0 million from $2.0 million at December 31, 2022. 56 Deposits .
Management believes that it has established the appropriate level of controls to monitor the Bank’s lending in these areas. Mortgage Loans Held For Sale . Mortgage loans held for sale, at fair value, at December 31, 2024 increased $0.8 million to $10.7 million from $10.0 million at December 31, 2023. Deposits .
In addition to contractual obligations, the Company’s material cash requirements also includes compensation and benefits expenses for its employees, which were $30.7 million the year ended December 31, 2023.
In addition to contractual obligations, the Company’s material cash requirements also includes compensation and benefits expenses for its employees, which were $30.9 million the year ended December 31, 2024.
The Company also established a relationship with Raisin Solutions US LLC ("Raisin") (formerly known as SaveBetter, LLC), a fintech startup focusing on brokered deposits. As of December 31, 2023, the Company had $386.6 million in such deposits. The recent regulatory easing of brokered deposit rules enables the Company to classify such deposits as core deposits.
The Company also established a relationship with Raisin Solutions US LLC ("Raisin") (formerly known as SaveBetter, LLC), a fintech startup focusing on deposits. As of December 31, 2024, the Company had $574.1 million in such deposits. The recent regulatory easing of brokered deposit rules enables the Company to classify such deposits as core deposits.
Derivatives and Hedging During 2023, the Company entered into two derivative financial instruments contracts to enhance its ability to manage interest rate risk that exist as part of its ongoing operations. The Company manages these risks as part of its asset and liability management process.
Derivatives and Hedging During 2023, the Company entered into two derivative financial instruments contracts to enhance its ability to manage interest rate risk that exist as part of its ongoing operations, which have since been terminated. The Company manages interest rate risks as part of its asset and liability management process.
The Company also has material cash requirements for occupancy and equipment expenses, excluding depreciation and amortization of $1.8 million, related to rental expenses, general maintenance and cleaning supplies, guard services, software licenses and other miscellaneous expenses, which were $12.8 million the year ended December 31, 2023.
The Company also has material cash requirements for occupancy and equipment expenses, excluding depreciation and amortization of $2.0 million, related to rental expenses, general maintenance and cleaning supplies, guard services, software licenses and other miscellaneous expenses, which were $12.9 million the year ended December 31, 2024.
At December 31, 2023, the Bank was slightly above the 100% guidelines established by the banking regulations but under the 150% guidelines set by the Bank for construction and land mortgage loans and within the 300% guideline for investor owned commercial real estate mortgage loans established by banking regulators.
At 54 December 31, 2024, the Bank was above the 100% guidelines established by the banking regulations but under the 150% guidelines set by the Bank for construction and land mortgage loans and above the 300% guideline established by banking regulators but under the 450% guidelines set by the Bank for investor owned commercial real estate mortgage loans.
(2) As of December 31, 2023 and 2022, there were $0.3 million and $13.6 million, respectively, in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
As of December 31, 2023, there were $0.3 million in individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
Certificates of deposits that are scheduled to mature in less than one year from December 31, 2023 totaled $449.5 million. Management expects that a substantial portion of the maturing time deposits will be renewed.
Certificates of deposits that are scheduled to mature in less than one year from December 31, 2024 totaled $670.6 million. Management expects that a substantial portion of the maturing time deposits will be renewed.
One interest rate swap is for a period of two years effective October 12, 2023 and terminates on November 1, 2025 with a notional amount of $150.0 million. The Bank will pay a fixed rate of interest of 4.885% and receive the Secured Overnight Financing Rate ("SOFR") rate.
One interest rate swap is for a period of two years effective October 12, 2023 and was set to terminate on November 1, 2025 with a notional amount of $150.0 million. The Bank paid a fixed rate of interest of 4.885% and receive the Secured Overnight Financing Rate ("SOFR") rate.
At December 31, 2023 and 2022, the Bank’s construction and land mortgage loans as a percentage of total risk-based capital was 102.5% and 38.5%, respectively. Investor owned commercial real estate mortgage loans as a percentage of total risk-based capital was 269.1% and 194.0% as of December 31, 2023 and 2022, respectively.
At December 31, 2024 and 2023, the Bank’s construction and land mortgage loans as a percentage of total risk-based capital was 145.0% and 102.5%, respectively. Investor owned commercial real estate mortgage loans as a percentage of total risk-based capital was 341.7% and 269.1% as of December 31, 2024 and 2023, respectively.
Net cash provided by financing activities, consisting of activities in borrowing and deposit accounts, was $411.2 million and $667.7 million for the years ended December 31, 2023 and 2022, respectively.
Net cash provided by financing activities, consisting of activities in borrowing and deposit accounts, was $288.3 million and $411.2 million for the years ended December 31, 2024 and 2023, respectively.
Interest and dividend income on securities, FHLBNY stock and deposits due from banks increased $17.2 million, or 133.3%, to $30.1 million for the year ended December 31, 2023 from $12.9 million for the year ended December 31, 2022.
Interest and dividend income on securities, FHLBNY stock and deposits due from banks increased $2.1 million, or 6.9%, to $32.1 million for the year ended December 31, 2024 from $30.1 million for the year ended December 31, 2023.
Net interest margin decreased 100 basis points for the year ended December 31, 2023, to 2.66% from 3.66% for the year ended December 31, 2022, reflecting an increase in our securities portfolio and our organic loan growth.
Net interest margin increased 4 basis points for the year ended December 31, 2024, to 2.70% from 2.66%% for the year ended December 31, 2023, reflecting an increase in our securities portfolio and our organic loan growth.
The $1.5 million of recoveries for the year ended December 31, 2023 and the $17.9 million write-off for the year ended December 31, 2022 related to Grain is included in non-interest expense in the accompanying Consolidated Statements of Operations.
The $0.2 million and $1.5 million of recoveries for the years ended December 31, 2024 and 2023, respectively, and $17.9 million write-off for the year ended December 31, 2022 related to microloans are included in non-interest expense in the accompanying Consolidated Statements of Operations.
Subsequent recoveries, if any, are credited to the allowance. The discussion and analysis of the financial condition and results of operations are based on the Company’s consolidated financial statements, which are prepared in conformity with GAAP.
The discussion and analysis of the financial condition and results of operations are based on the Company’s consolidated financial statements, which are prepared in conformity with GAAP.
The Company has since grown to $2.75 billion in assets, $1.90 billion in loans receivables, net of allowance for credit losses of $26.2 million, and $1.51 billion in deposits at December 31, 2023, all while investing in infrastructure, implementing digital banking, adopting GPS, diversifying its product offering and partnering with Fintech companies.
The Company has since grown to $3.04 billion in assets, $2.29 billion in loans receivable, net of allowance for credit losses of $22.5 million, and $1.88 billion in deposits at December 31, 2024, all while investing in infrastructure, implementing digital banking, adopting GPS, diversifying its product offering and partnering with Fintech companies.
The other interest rate swap is for a period of three years effective October 12, 2023 and terminates on November 1, 2026 with a notional amount of $100.0 million. The Bank will pay a fixed rate of interest of 4.62% and receive the SOFR rate.
The 48 other interest rate swap was originally for a period of three years effective October 12, 2023 and was set to terminate on November 1, 2026 with a notional amount of $100.0 million. The Bank paid a fixed rate of interest of 4.62% and receive the SOFR rate.
This decrease in stockholders’ equity was largely attributable to $11.0 million in share repurchases during 2023, offset by $3.4 million in net income, $2.2 million in other comprehensive loss, $1.9 million impact to additional paid in capital as a result of share-based compensation, $1.1 million as a result of implementation of CECL and $1.1 million from release of ESOP shares. 57 Comparison of Results of Operations for the Years Ended December 31, 2023 and 2022 The discussion of the Company’s results of operations for the years ended December 31, 2023 and 2022 are presented below.
The $14.1 million increase in stockholders’ equity was largely attributable to $11.0 million in net income, $2.1 million impact to additional paid in capital as a result of share-based compensation and $1.4 million from release of ESOP shares and $0.3 million in other comprehensive income, offset by $0.6 million in dividend on preferred shares. 55 Comparison of Results of Operations for the Years Ended December 31, 2024 and 2023 The discussion of the Company’s results of operations for the years ended December 31, 2024 and 2023 are presented below.
The Company had a provision for income taxes of $2.5 million for the year ended December 31, 2023 compared to a benefit for income taxes of $6.8 million for the year ended December 31, 2022. 60 Average Balance Sheets The following table sets forth average outstanding balances, average yields and rates, and certain other information for the periods indicated.
Income Tax Provision. The Company had a provision for income taxes of $4.7 million and $2.5 million for the year ended December 31, 2024 and 2023, respectively. 58 Average Balance Sheets The following table sets forth average outstanding balances, average yields and rates, and certain other information for the periods indicated.
The decrease in the net interest rate spread for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily due to an increase in the average rates paid on interest-bearing liabilities of 208 basis points to 3.47% for the year ended December 31, 2023 from 1.39% for the year ended December 31, 2022 and an increase in the average yields on interest-earning assets of 57 basis points to 5.12% for the year ended December 31, 2023 from 4.55% for the year ended December 31, 2022.
The increase in the net interest rate spread for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due to an increase in the average yields on interest-earning assets of 62 basis points to 5.74% for the year ended December 31, 2024 from 5.12% for the year ended December 31, 2023 and the average rates paid on interest-bearing liabilities of 53 basis points to 3.91% for the year ended December 31, 2024 from 3.38% for the year ended December 31, 2023.
The Bank had $380.4 million and $511.4 million of outstanding term advances from FHLBNY at December 31, 2023 and 2022, respectively and $6.0 million of overnight line of credit advance from the FHLBNY at December 31, 2022. The Bank had no overnight line of credit advance from the FHLBNY at December 31, 2023.
The Bank had $571.1 million and $380.4 million of outstanding term advances from FHLBNY at December 31, 2024 and 2023, respectively. The Bank had one overnight line of credit advance in the amount of $25.0 million from the FHLBNY at December 31, 2024 and no overnight line of credit advance from the FHLBNY at December 31, 2023.
Non-interest expense decreased $17.2 million, or 20.0%, to $68.7 million for the year ended December 31, 2023 from $85.8 million for the year ended December 31, 2022.
Non-interest expense decreased $2.0 million, or 2.9%, to $66.7 million for the year ended December 31, 2024 from $68.7 million for the year ended December 31, 2023.
Such commitments are subject to the same credit policies and approval process accorded to loans originated. At December 31, 2023 and 2022, the Company had outstanding commitments to originate loans, and extend credit of $591.5 million and $284.1 million, respectively. It is anticipated that the Company will have sufficient funds available to meet its current lending commitments.
At December 31, 2024 and 2023, the Company had outstanding commitments to originate loans, and extend credit of $411.5 million and $591.5 million, respectively. It is anticipated that the Company will have sufficient funds available to meet its current lending commitments.
At December 31, 2018, the Company had approximately $1.06 billion in assets, $918.5 million in loans and $809.8 million in deposits.
At December 31, 2018, the Company had approximately $1.06 billion in assets, $918.5 million in loans receivable, net of allowance for credit losses of $12.7 million, and $809.8 million in deposits.
Earning assets, interest-bearing liabilities and off-balance sheet financial instruments are combined with forecasts of interest rates for the next 12 months and are combined with other factors in order to produce various earnings simulations over that same 12-month period.
Management utilizes a respected, sophisticated third party designed asset liability modeling software that measures the Bank’s earnings through simulation modeling. Earning assets, interest-bearing liabilities and off-balance sheet financial instruments are combined with forecasts of interest rates for the next 12 months and are combined with other factors in order to produce various earnings simulations over that same 12-month period.
On October 1, 2022, the Company entered into a Membership Interest Purchase Agreement with Bamboo Payment Holding LLC ("Bamboo"). Under the agreement, the Company purchased from Bamboo 180 Membership Interest Units representing an aggregate amount equal to up to 18% of total issued and outstanding Membership Interest in Bamboo for a purchase price of $2.5 million.
On October 1, 2022, the Company entered into a Membership Interest Purchase Agreement with Bamboo Payment Holding LLC ("Bamboo"), pursuant to which the Company purchased from Bamboo 180 Membership Interest Units representing 16.05% of the total issued and outstanding Membership Interest in Bamboo for an investment of $4.4 million.
In the event of a liquidation, dissolution or winding up of the Company, the Preferred Stock will be entitled to a liquidation preference, subject to certain limitations, in the amount of the sum of $1,000 per share plus declared and unpaid dividends (without accumulation of undeclared dividends) on each share. 50 CDFI Equitable Recovery Program On September 26, 2023, the Bank received a $3.7 million grant from the U.S.
In the event of a liquidation, dissolution or winding up of the Company, the Preferred Stock will be entitled to a liquidation preference, subject to certain limitations, in the amount of the sum of $1,000 per share plus declared and unpaid dividends (without accumulation of undeclared dividends) on each share.
In order to facilitate the transfer of the servicing responsibilities to the Bank, Grain granted the Bank a perpetual right and license to use the Grain software, including the source code to service the ‎remaining loans.
In order to facilitate the transfer of the servicing responsibilities to the Bank, Grain granted the Bank a perpetual right and license to use the Grain software, including the source code to service the remaining loans. At December 31, 2024, the Bank charged-off its microloans that were previously outstanding.
(7) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (8) Net interest margin represents net interest income divided by average total interest-earning assets. 61 Rate/Volume Analysis The following table presents the effects of changing rates and volumes on the Company’s net interest income for the periods indicated.
(8) Net interest margin represents net interest income divided by average total interest-earning assets. 59 Rate/Volume Analysis The following table presents the effects of changing rates and volumes on the Company’s net interest income for the periods indicated. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate).
Government Bonds: Amounts maturing: Three months or less $ — $ — $ — $ — More than three months through one year — — — — More than one year through five years 2,990 2,784 2,985 2,689 More than five years through ten years — — — — 2,990 2,784 2,985 2,689 Corporate Bonds: Amounts maturing: Three months or less — — — — More than three months through one year 4,000 3,863 — — More than one year through five years 1,000 536 4,000 3,710 More than five years through ten years 20,790 19,269 21,824 19,649 25,790 23,668 25,824 23,359 Mortgage-Backed Securities 111,001 93,450 123,134 103,457 Total Available-for-Sale Securities $ 139,781 $ 119,902 $ 151,943 $ 129,505 Held-to-Maturity Securities: U.S.
Government Bonds: Amounts maturing: Three months or less $ — $ — $ — $ — More than three months through one year — — — — More than one year through five years 2,994 2,873 2,990 2,784 More than five years through ten years — — — — 2,994 2,873 2,990 2,784 Corporate Bonds: Amounts maturing: Three months or less $ — $ — $ — $ — More than three months through one year — — 4,000 3,863 More than one year through five years 2,000 1,320 1,000 536 More than five years through ten years 19,762 19,084 20,790 19,269 21,762 20,404 25,790 23,668 Mortgage-Backed Securities 99,652 81,693 111,001 93,450 Total Available-for-Sale Securities $ 124,408 $ 104,970 $ 139,781 $ 119,902 Held-to-Maturity Securities: U.S.
Interest income on loans receivable, which is the Bank’s primary source of income, increased $25.9 million, or 37.1% to $95.8 million for the year ended December 31, 2023 from $69.9 million for the year ended December 31, 2022.
Interest income on loans receivable, which is the Bank’s primary source of income, increased $34.7 million, or 36.2% to $130.5 million for the year ended December 31, 2024 from $95.8 million for the year ended December 31, 2023.
Comparison of Financial Condition at December 31, 2023 and December 31, 2022 Total Assets . Total consolidated assets increased $438.7 million, or 19.0%, to $2.75 billion at December 31, 2023 from $2.31 billion at December 31, 2022.
Comparison of Financial Condition at December 31, 2024 and December 31, 2023 Total Assets . Total consolidated assets increased $289.2 million, or 10.5%, to $3.04 billion at December 31, 2024 from $2.75 billion at December 31, 2023.
Treasury as part of the Community Development Financial Institutions ("CDFI") Equitable Recovery Program ("ERP") which aims to help CDFI's further their mission of helping low and low-to-moderate income communities recover from the impact of the COVID-19 pandemic.
Treasury as part of the CDFI Equitable Recovery Program ("ERP") which aims to help CDFI's further their mission of helping low and low-to-moderate income communities recover from the impact of the COVID-19 pandemic. Bank Enterprise Award Program On November 6, 2023, the Bank received a $0.5 million grant as part of the Bank Enterprise Award Program from the CDFI.
The $1.3 million decrease in net interest income for the year ended December 31, 2023 compared to the year ended December 31, 2022 was attributable to an increase of $44.4 million in interest expense due primarily to a higher average cost of funds on interest bearing liabilities, offset by an increase of $43.1 million in interest and dividend income primarily due to increases in average loans receivable and interest and dividend on securities and FHLBNY stock and deposits due from banks.
The $11.2 million increase in net interest income for the year ended December 31, 2024 compared to the year ended December 31, 2023 was attributable to an increase of $36.8 million in total interest and dividend income primarily due to increases in average loans receivable, offset by an increase of $25.6 million in interest expense due primarily to a higher average cost of funds on interest bearing liabilities.
Interest expense increased $44.5 million, or 275.3%, to $60.6 million for the year ended December 31, 2023 from $16.1 million for the year ended December 31, 2022, primarily due to higher market interest rates.
Interest expense increased $25.6 million, or 42.2%, to $86.2 million for the year ended December 31, 2024 from $60.6 million for the year ended December 31, 2023, primarily due to higher market interest rates.
The ALCO Committee may determine that the Company should over time become more or less asset or liability sensitive depending on the underlying balance sheet circumstances and its conclusions regarding interest rate fluctuations in future periods. The historically low benchmark federal funds interest rate of the last several years implemented in response the turmoil resulting from COVID-19 pandemic has ended.
The ALCO Committee may determine that the Company should over time become more or less asset or liability sensitive depending on the underlying balance sheet circumstances and its conclusions regarding interest rate fluctuations in future periods.
Interest and dividend income increased $43.1 million, or 52.1%, to $125.9 million for the year ended December 31, 2023 from $82.8 million for the year ended December 31, 2022.
Interest and Dividend Income. Interest and dividend income increased $36.8 million, or 29.2%, to $162.6 million for the year ended December 31, 2024 from $125.9 million for the year ended December 31, 2023.
(5) Includes reclassification of $25.7 million of average outstanding balances and $0.7 million of interest expenses from money market to certificates of deposit for the year ended December 31, 2022. (6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(5) Includes $1.3 million of interest expense reclassified from money market to NOW/IOLA for the year ended December 31, 2023. (6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (7) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
The ALCO Committee reviews each of the above interest rate sensitivity analyses along with several different interest rate scenarios as part of its responsibility to provide a satisfactory, consistent level of profitability within the framework of established liquidity, loan, investment, borrowing and capital policies.
The ALCO Committee reviews each of the above interest rate sensitivity analyses along with several different interest rate scenarios as part of its responsibility to provide a satisfactory, consistent level of profitability within the framework of established liquidity, loan, investment, borrowing and capital policies. 62 Management's model governance, model implementation and model validation processes and controls are subject to review in the Bank’s regulatory examinations to ensure they are in compliance with the most recent regulatory guidelines and industry and regulatory practices.
Net income for the year ended December 31, 2023 was $3.4 million compared to net loss of ($30.0) million for the year ended December 31, 2022. Earnings per basic and diluted share was $0.15 for the year ended December 31, 2023 compared to loss per basic and diluted share of ($1.32) for the year ended December 31, 2022.
Earnings per basic and diluted share was $0.46 for the year ended December 31, 2024 compared to earnings per basic and diluted share of $0.15 for the year ended December 31, 2023.
Commercial real estate loans, as defined by applicable banking regulations, include multifamily residential, nonresidential properties, and construction and land mortgage loans. At December 31, 2023 and 2022, approximately 5.3% and 6.4%, respectively, of the outstanding principal balance of the Bank’s commercial real estate mortgage loans were secured by owner-occupied commercial real estate.
At December 31, 2024 and 2023, approximately 3.5% and 5.3%, respectively, of the outstanding principal balance of the Bank’s commercial real estate mortgage loans were secured by owner-occupied commercial real estate.
Agency Bonds: Amounts maturing: Three months or less $ — $ — $ — $ — More than three months through one year — — — — More than one year through five years 25,000 24,819 35,000 34,620 More than five years through ten years — — — — 25,000 24,819 35,000 34,620 Corporate Bonds: Amounts maturing: Three months or less $ — $ — $ — $ — More than three months through one year 25,000 24,650 — — More than one year through five years 50,000 48,265 75,000 71,328 More than five years through ten years 7,500 6,894 7,500 7,410 82,500 79,809 82,500 78,738 Mortgage-Backed Securities 354,646 345,414 393,320 382,493 Allowance for Credit Losses (398 ) — — — Total Held-to-Maturity Securities $ 461,748 $ 450,042 $ 510,820 $ 495,851 55 The Company securities portfolio decreased $49.1 million in held-to-maturity and $9.6 million in available-for-sale during the year ended December 31, 2023.
Agency Bonds: Amounts maturing: Three months or less $ — $ — $ — $ — More than three months through one year 25,000 24,960 — — More than one year through five years — — 25,000 24,819 More than five years through ten years — — — — 25,000 24,960 25,000 24,819 Corporate Bonds: Amounts maturing: Three months or less $ — $ — $ — $ — More than three months through one year 10,000 9,926 25,000 24,650 More than one year through five years 15,000 14,923 50,000 48,265 More than five years through ten years 7,500 7,128 7,500 6,894 32,500 31,977 82,500 79,809 Mortgage-Backed Securities 310,654 298,357 354,646 345,414 Allowance for Credit Losses (216 ) — (398 ) — Total Held-to-Maturity Securities $ 367,938 $ 355,294 $ 461,748 $ 450,042 53 The Company securities portfolio decreased $93.8 million in held-to-maturity and $14.9 million in available-for-sale during the year ended December 31, 2024.
The increase in total assets is largely attributable to increases of $402.8 million in net loans receivable, $84.8 million in cash and cash equivalents, $10.7 million in other assets and $8.0 million in mortgage loans held for sale, partially offset by decreases of $49.1 million in held-to-maturity securities, $9.6 million in available-for-sale securities and $5.3 million in Federal Home Loan Bank of New York stock.
The increase in total assets is largely attributable to increases of $390.7 million in net loans receivable, $9.8 million in FHLBNY stock, $0.8 million in mortgage loans held for sale, $0.7 million in premises and equipment and $0.6 million in cash and cash equivalents, partially offset by decreases of $93.8 million in held-to-maturity securities, $14.9 million in available-for-sale securities, $2.3 million in deferred tax assets and $2.2 million in right of use assets.
Cash and Cash Equivalents . Cash and cash equivalents increased $84.8 million, or 156.1%, to $139.2 million at December 31, 2023, compared to $54.4 million at December 31, 2022.
Cash and Cash Equivalents . Cash and cash equivalents increased $0.6 million, or 0.5%, to $139.8 million at December 31, 2024, compared to $139.2 million at December 31, 2023.
The Bank’s management took steps to enhance the Company’s liquidity position by increasing its on balance sheet cash and cash equivalents position in order to meet unforeseen liquidity events and to fund upcoming funding needs.
The Bank’s management took steps to enhance the Company’s liquidity position by increasing its on balance sheet cash and cash equivalents position in order to meet unforeseen liquidity events and to fund upcoming funding needs. At December 31, 2024 and 2023, all regulatory capital requirements were met, resulting in the Company and the Bank being categorized as well capitalized.
Net interest income decreased $1.3 million, or 2.0%, to $65.3 million for the year ended December 31, 2023 from $66.6 million for the year ended December 31, 2022.
Net Interest Income. Net interest income increased $11.2 million, or 17.2%, to $76.5 million for the year ended December 31, 2024 from $65.3 million for the year ended December 31, 2023.
Treasury Department’s Rapid Response ‎Program to defray the Grain Receivable. The application of those amounts resulted in no net receivable. Additionally, the Company wrote-off its equity investment in Grain of $1.0 million during the year ended December 31, 2022.
The Bank also opted to use the $1.8 million grant it received from the U.S. Treasury Department’s Rapid Response ‎Program to defray the Grain Receivable. Additionally, the Company wrote-off its equity investment in Grain of $1.0 million during the year ended December 31, 2022. As of December 31, 2024, the Company has no remaining microloan exposure.
During the year ended December 31, 2023, the Company made three additional contributions for a total of $1.2 million for a total investment in Bamboo of $3.7 million. With over a decade processing payments in Latin America, Bamboo has a diverse network connects Latin American local payment processing to global companies as well as domestic solutions to locally based organizations.
With over a decade processing payments in Latin America, Bamboo has a diverse network connects Latin American local payment processing to global companies as well as domestic solutions to locally based organizations.
The following table presents non-interest income for the periods indicated: For the Years Ended December 31, Change 2023 2022 Amount Percent (Dollars in thousands) Service charges and fees $ 1,986 $ 1,830 $ 156 8.5 % Brokerage commissions 80 1,020 (940 ) (92.2 %) Late and prepayment charges 2,365 623 1,742 279.6 % Income on sale of mortgage loans 598 741 (143 ) (19.3 %) Loan origination — 1,286 (1,286 ) (100.0 %) Grant income 4,156 — 4,156 — % Loss on sale of premises and equipment — (436 ) 436 (100.0 %) Other 1,038 1,355 (317 ) (23.4 %) Total non-interest income $ 10,223 $ 6,419 $ 3,804 59.3 % Non-Interest Expense.
The following table presents non-interest income for the periods indicated: For the Years Ended December 31, Change 2024 2023 Amount Percent (Dollars in thousands) Service charges and fees $ 1,973 $ 1,986 $ (13 ) (0.7 %) Brokerage commissions 61 80 (19 ) (23.8 %) Late and prepayment charges 1,180 2,365 (1,185 ) (50.1 %) Income on sale of mortgage loans 1,048 598 450 75.3 % Income on sale of SBA loans 148 — 148 100.0 % Grant income — 4,156 (4,156 ) (100.0 %) Other 2,803 1,038 1,765 170.0 % Total non-interest income $ 7,213 $ 10,223 $ (3,010 ) (29.4 %) Non-Interest Expense.
The Bank had outstanding borrowings at December 31, 2023 of $684.4 million in term advances from the FHLBNY and FRBNY and $511.4 million of outstanding term advances from the FHLBNY at December 31, 2022. The Bank also had $6.0 million of overnight line of credit advance from the FHLBNY at December 31, 2022.
The Bank also had one overnight line of credit advance in the amount of $25.0 million from the FHLBNY at December 31, 2024 and no overnight line of credit advance from the FHLBNY at December 31, 2023.
Net interest rate spread decreased by 151 basis point to 1.65% for the year ended December 31, 2023 from 3.16% for the year ended December 31, 2022.
Net interest rate spread increased by 9 basis points to 1.83% for the year ended December 31, 2024 from 1.74% for the year ended December 31, 2023.
("Grain") Total Exposure as of December 31, 2023 (in thousands) Receivable from Grain Microloans originated - put back to Grain (inception-to-December 31, 2023) $ 24,104 Write-downs, net of recoveries (year to date as of December 31, 2023) (15,459 ) Cash receipts from Grain (inception-to-December 31, 2023) (6,819 ) Grant/reserve (inception-to-December 31, 2023) (1,826 ) Net receivable as of December 31, 2022 $ — Microloan receivables from Grain borrowers Grain originated loans receivable as of December 31, 2023 $ 7,985 Allowance for credit losses on loan as of December 31, 2023 (1) (7,026 ) Microloans, net of allowance for credit losses on loans as of December 31, 2023 $ 959 Investments Investment in Grain $ 1,000 Investment in Grain write-off (1,000 ) Investment in Grain as of December 31, 2023 $ — Total exposure related to Grain as of December 31, 2023 (2) $ 959 52 (1) Includes $0.3 million for allowance for unused commitments on the $2.4 million of unused commitments available to Grain originated borrowers reported in other liabilities in the accompanying Consolidated Statements of Financial Conditions.
Total Microloans Exposure as of December 31, 2024 (in thousands) Microloans Receivable from Grain Microloans originated - put back (inception-to-December 31, 2024) $ 23,903 Write-downs, net of recoveries (year to date as of December 31, 2024) (15,258 ) Cash receipts (inception-to-December 31, 2024) (6,819 ) Grant/reserve (inception-to-December 31, 2024) (1,826 ) Net receivable as of December 31, 2024 $ — Microloans Receivables from Borrowers Microloans receivable as of December 31, 2024 $ — Allowance for credit losses as of December 31, 2024 — Microloans, net of allowance for credit losses as of December 31, 2024 $ — Investments Investment in Grain $ 1,000 Investment in Grain write-off third quarter of 2022 (1,000 ) Net investment as of December 31, 2024 $ — Total exposure related to microloans as of December 31, 2024 (1) $ — 50 (1) At December 31, 2024, the Company had no remaining exposure to microloan borrowers.
The increase in net income was attributable to an increase in benefit for credit losses and a decrease in non-interest expense and an increase in non-interest income, partially offset by an increase in provision for income taxes and a decrease in net interest income. Interest and Dividend Income.
The $7.0 million increase in net income was attributable to an increase of $11.2 million in net interest income and a decrease of $1.9 million in non-interest expense, partially offset by a decrease of $3.0 million in non-interest income, increases of $2.2 million in provision for income taxes, $0.6 million in dividends on preferred shares and $0.4 million in provision for loan losses.
As of December 31, 2023, in the event of an instantaneous upward and downward change in rates from management's interest rate forecast over the next twelve months, assuming a static balance sheet, the following estimated changes are calculated: Net Interest Income Year 1 Change Rate Shift (1) Year 1 Forecast from Level (Dollars in thousands) +400 $ 61,046 (11.37%) +300 63,004 (8.53%) +200 65,000 (5.63%) +100 66,964 (2.78%) Level 68,878 — % -100 70,068 1.73% -200 70,932 2.98% -300 70,130 1.82% -400 69,333 0.66% (1) Assumes an instantaneous uniform change in interest rates at all maturities.
As of December 31, 2024, in the event of an instantaneous upward and downward change in rates from management's interest rate forecast over the next twelve months, assuming a static balance sheet, the following estimated changes are calculated: Net Interest Income Year 1 Change Rate Shift (1) Year 1 Forecast from Level (Dollars in thousands) +400 $ 73,253 (19.49%) +300 77,865 (14.42%) +200 82,414 (9.43%) +100 86,778 (4.63%) Level 90,990 — % -100 94,066 3.38% -200 96,572 6.13% -300 97,851 7.54% -400 98,887 8.68% (1) Assumes an instantaneous uniform change in interest rates at all maturities.
Under the terms of its former agreement with Grain, the Bank was the lender for Grain-originated microloans with credit lines currently up to $1,500 and, where applicable, the depository for related security deposits. Grain originated and serviced these microloans and is responsible for maintaining compliance with the Bank's origination and servicing standards, as well as applicable regulatory and legal requirements.
Grain originated and serviced these microloans and is responsible for maintaining compliance with the Bank's origination and servicing standards, as well as applicable regulatory and legal requirements.
In 2020, the Company entered into a business arrangement with the FinTech startup company Grain. Grain’s product is a mobile application geared to the underbanked, minorities and new generations entering the financial services market. In employing this mobile application, the Bank uses non-traditional underwriting methodologies to provide revolving credit to borrowers who otherwise may gravitate to using alternative non-bank lenders.
Factors Affecting the Comparability of Results Write-off and Write-Down. In 2020, the Company entered into a business arrangement with the FinTech startup company Grain. Grain’s product is a mobile application geared to the underbanked, minorities and new generations entering the financial services market.
Federal Economic Relief Funds To Aid Lending to Small Businesses Emergency Capital Investment Program On June 7, 2022, the Company‎ closed a private placement (the “Private Placement”) of 225,000 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series A‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash, to the United States Department of the Treasury (the “Treasury”) pursuant to the Emergency Capital Investment Program (“ECIP”).‎ The holders of the Preferred Stock will be entitled to a dividend payable in cash quarterly at an annual rate dependent on certain factors as reported by the Company to Treasury in a quarterly supplemental report.
Federal Economic Relief Funds To Aid Lending to Small Businesses Emergency Capital Investment Program On June 7, 2022 (the “Original Closing Date”), the Company issued 225,000 shares of the Company’s Preferred Stock‎, par value $0.01 (the “Preferred Stock”) for an aggregate purchase price equal to $225,000,000 in cash to the Treasury, pursuant to the Treasury’s ECIP.
The decrease in non-interest expense was also impacted by a $5.0 million contribution to the Ponce De Leon Foundation during the corresponding period last year, partially offset by increases of $2.8 million in compensation and benefits, $2.2 million in provision for contingencies, $1.3 million in data processing expenses and $1.2 million in professional fees.
The $2.0 million decrease of non-interest expense from the year ended December 31, 2023 was attributable to decreases of $3.1 million in provision for contingencies, $0.9 million in professional fees, $0.7 million in data processing expenses and $0.5 million in office supplies, telephone and postage, partially offset by a decrease of $1.3 million in microloans recoveries and increases of $0.9 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.2 million in compensation and benefits.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitati ve Disclosures About Market Risk. Information regarding quantitative and qualitative disclosures about market risk appears under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Management of Market Risk.” 68
Biggest changeItem 7A. Quantitative and Qualitati ve Disclosures About Market Risk. Information regarding quantitative and qualitative disclosures about market risk appears under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Management of Market Risk.” 66

Other PDLB 10-K year-over-year comparisons