Ponce Financial Group, Inc. announced strong financial results for the second quarter ended June 30, 2025. Net income for the quarter was $6.1 million, a slight increase from $6.0 million in the prior quarter and a significant rise from $3.2 million in the second quarter of 2024. For the six months ended June 30, 2025, net income reached $12.1 million, with diluted earnings per share of $0.50, doubling from the same period last year.
Net interest income for the second quarter of 2025 increased by $2.2 million, or 10.01%, to $24.4 million compared to the prior quarter, and by $6.5 million, or 36.43%, compared to the second quarter of 2024. The net interest margin expanded by 29 basis points to 3.27% from the prior quarter, reflecting higher-yielding construction loans and decreasing borrowing costs. Non-interest expenses remained flat quarter-over-quarter, contributing to profitability.
The company continued to make progress on its commitments under the U.S. Treasury’s Emergency Capital Investment Program (ECIP). Ponce Financial Group ensured another year of the lowest possible preferred stock dividend of 0.50% for the period from April 2024 to March 2025. After 12 quarters, including the quarter ended June 30, 2025, the company reported 80% Deep Impact Lending, moving towards the 60% threshold over 16 quarters required to buy back the preferred stock.
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty decreased to $28.5 million at June 30, 2025, from $32.0 million at March 31, 2025. Total assets increased by $113.9 million, or 3.75%, to $3.15 billion as of June 30, 2025, driven by a $172.1 million increase in net loans receivable and a $157.3 million increase in deposits.
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