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Here are a couple of analogies for Ponce Financial (PDLB):

• A hyper-local version of Bank of America for New York and New Jersey neighborhoods.
• Like a community-focused Chase Bank, serving specific areas in New York and New Jersey.

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• Deposit Accounts: A variety of financial accounts for customers to save and manage their money, including checking, savings, money market, and certificates of deposit.
• Loan Products: Diverse credit offerings for individuals and businesses, encompassing residential mortgages, multifamily and nonresidential loans, construction and land loans, commercial and industrial loans, consumer loans, and lines of credit.
• Investment Securities: The bank's portfolio of financial instruments, such as U.S. Government and federal agency securities, mortgage-backed securities, and corporate bonds, held to generate income.

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Ponce Financial Group, Inc. (PDLB) is a bank holding company that operates Ponce Bank. As a financial institution, it primarily serves a diverse customer base rather than having a few "major customers" in the traditional sense. Its services are extended to both individuals and various types of businesses. Based on the services described, its primary customer categories are:

1. Individual Consumers: This category includes individuals who utilize Ponce Bank for personal banking needs such as checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, and owner-occupied residential mortgages.

2. Small to Medium-sized Businesses (SMBs) and Commercial Clients: This category encompasses various businesses that use Ponce Bank for demand accounts, NOW/IOLA accounts, money market accounts, commercial and industrial loans, lines of credit, and Paycheck Protection Program loans.

3. Real Estate Investors and Developers: Given the emphasis on specific loan types like one-to-four family investor-owned, multifamily and nonresidential, and construction and land loans, Ponce Bank serves individuals and entities involved in real estate investment and development.

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Carlos P. Naudon, President and Chief Executive Officer

Mr. Naudon serves as the President, CEO, and a Director of Ponce Financial Group, Inc. and Ponce Bank, having joined the board in 2014 and becoming President & COO of Ponce De Leon Federal Bank in 2015 before taking on his current CEO role. He is a retired Certified Public Accountant and a former law firm partner (Allister & Naudon), having also served as regulatory counsel to banks. Mr. Naudon owns Banking Spectrum, Inc., a banking publishing/consulting company, and helped found other banking-related firms, including Open Solutions, Inc., where he was a Director and Acting Chief Executive Officer during its formative years. He holds degrees from the University of Maryland, the University of Rochester's Simon School of Management, and Brooklyn Law School, and has taught at Columbia University Graduate School of Business. He has also held leadership positions in various banking trade associations and regulatory advisory councils.

Sergio Vaccaro, Executive Vice President and Chief Financial Officer

Mr. Vaccaro was appointed Executive Vice President and Chief Financial Officer of Ponce Financial Group, Inc. and Ponce Bank effective June 1, 2022. He brings 27 years of accounting experience, including 15 years in senior roles at prominent financial institutions. Prior to joining Ponce Financial Group, Mr. Vaccaro held various positions at HSBC since 2013, most recently as CFO of Private Bank Americas from 2015 to May 2022. His experience also includes senior financial roles at Morgan Stanley and Citigroup.

Steven A. Tsavaris, Chairman of the Board and Executive Chairman

Mr. Tsavaris has served as a director of Ponce Financial Group, Inc. since 1990 and is currently the Chairman of the Board and Executive Chairman. He joined Ponce De Leon Federal Bank in 1995 as an Executive Vice President, becoming President in 1999, and Chief Executive Officer in 2011. His previous banking experience includes service with the National Bank of North America and the Bank Services Division of Litton Industries. Mr. Tsavaris is a U.S. Army veteran, a graduate of City College of New York, and an experienced real estate investor.

Luis Gerardo Gonzalez, Jr., Executive Vice President and Chief Operating Officer

Mr. Gonzalez was appointed Executive Vice President and Chief Operating Officer of Ponce Financial Group, Inc. and Ponce Bank effective April 1, 2022. He has over 15 years of experience with the Office of the Comptroller of the Currency (OCC), where he served in various roles, including Team Leader / Supervisory National Bank Examiner and Acting Assistant Deputy Comptroller. Mr. Gonzalez is a graduate of The University of Texas at El Paso.

Ioannis Kouzilos, Executive Vice President, Chief Lending Officer

Mr. Kouzilos is the Executive Vice President, Chief Lending Officer for Ponce Bank, having joined the bank in July 2013. He has managed a range of departments, with a focus on asset quality, credit risk, asset recovery, and lending operations, and assumed his current role in March 2017. His prior experience includes community banking roles at Alma Bank and Marathon National Bank.

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The key risks to Ponce Financial Group, Inc. (PDLB) primarily revolve around its loan portfolio and sensitivity to market conditions.

1. Credit Risk and Loan Portfolio Concentration: Ponce Financial Group faces heightened credit risk due to its significant exposure to small-to-medium sized businesses (SMBs) and low-to-moderate income (LMI) clients, particularly in a deteriorating economic climate. The bank also has a notable concentration in multifamily residential, non-residential, and construction loans, which can be more susceptible to market downturns than traditional loans. This risk is further evidenced by an elevated loan-to-deposit ratio compared to its peers and the potential for increased provisions for credit losses.
2. Interest Rate Risk: As a financial institution, Ponce Financial Group is exposed to fluctuations in interest rates. Changes in interest rates can negatively impact the bank's net interest income, the value of its assets, and its funding costs. For instance, rising interest rates could lead to decreased loan demand and higher costs for deposits, affecting overall profitability.
3. Economic Downturns and Regulatory Changes: The bank's growth and financial health are closely tied to the economic conditions of its operating regions, especially given its focus on low-income households and small businesses. A decline in the fiscal health of these clients or a harsher business environment could impede the company's growth. Furthermore, changes in banking laws and regulations, such as those related to capital requirements or tax exemptions, could increase compliance costs and adversely affect the bank's operations.

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The emergence and growth of fintech companies and digital-only banks that offer core banking services with lower overhead, enhanced digital experiences, and often more competitive pricing, thereby challenging the customer acquisition and retention strategies of traditional, branch-based community banks like Ponce Financial.

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Ponce Financial Group, Inc. (PDLB) operates as a bank holding company for Ponce Bank, offering a range of banking products and services, primarily in specific areas of New York and New Jersey. While precise addressable market sizes for a community bank's exact branch footprint are not publicly available, the following provides market size data for the broader regions in which Ponce Financial operates for its main product categories.

New York Metropolitan Area

• Deposits: The New York-Newark-Jersey City, NY-NJ-PA metropolitan statistical area recorded total deposits of approximately $2.763 trillion as of the second quarter of 2025. More broadly, total deposits in New York-based financial institutions exceed $3.4 trillion.
• Loans (General/Mortgage/Real Estate): Total mortgage originations in New York reached $85 billion in 2023. The median home price in the New York City housing market was $870,000 in January 2026. In February 2026, home prices in New York (statewide) were up 3.3% compared to the previous year, with a median price of $601,600.
• Commercial and Industrial Loans: New York banks held $450 billion in commercial real estate (CRE) exposure in 2023. Commercial and industrial loans by New York state banks increased by 4.2% in 2023. The New York City Metropolitan Area's Gross Metropolitan Product (GMP) was US$2.299 trillion in 2023, indicating the overall economic activity driving commercial banking within the region.

New Jersey

• Deposits: Deposits in New Jersey totaled $431 billion as of the second quarter of 2024.
• Commercial Banking/Loans: The commercial banking industry in New Jersey is projected to have a market size of $50.6 billion in 2026. This includes deposits and the issuance of consumer, commercial, and industrial loans. New loans (of $1 million or less) to New Jersey businesses amounted to $8.5 billion in 2022. Small business loans in New Jersey totaled $21.6 billion.
• Mortgage/Real Estate Loans: The market size of the Real Estate Loans & Collateralized Debt industry in New Jersey is $9.1 billion in 2026. New home loans booked in New Jersey in 2024 amounted to $29.1 billion. The total loan amounts in New Jersey were approximately $51.1 billion in 2023. As of March 14, 2026, the average interest rate for a 30-year fixed mortgage in New Jersey was 6.34%.

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Ponce Financial Group, Inc. (PDLB) is expected to drive future revenue growth over the next two to three years through several strategic initiatives and market dynamics:

1. Strong Loan Growth, particularly in targeted segments: Ponce Financial has demonstrated consistent loan origination momentum, with total loans growing approximately 13.7% year-over-year. The company shows notable expansion in construction, multifamily, and nonresidential lending, which are key areas for revenue generation. Net loans receivable also grew by 7.53% from year-end 2024 to June 30, 2025.
2. Net Interest Income (NII) and Net Interest Margin (NIM) Expansion: The company has consistently reported increases in net interest income and an improved net interest margin. Net interest income rose by approximately 30.5% year-over-year, reaching $99.8 million for the year ended December 31, 2025, compared to $76.5 million in 2024. The net interest margin also improved to 3.57% for the fourth quarter of 2025. This growth is fueled by increased interest and dividend income and effective management of interest expenses.
3. Strategic Core Deposit Growth: Ponce Financial is focused on growing its core deposits to provide liquidity and support its lending activities, which directly contributes to revenue. This strategy includes increasing "mission-driven/specialty deposits" and "Ponce Bank Direct deposits," as well as cross-selling deposit products to commercial customers. As of June 30, 2025, deposits reached $2.04 billion, an 8.35% increase from the end of 2024.
4. Targeted Market Expansion and Digital Transformation: The company continues to expand its reach through strategic branch and market initiatives and by leveraging technology. Recent actions include opening a Coral Gables representative office and a new Inwood branch, as well as redesigning the Westchester Avenue branch as a community hub. Furthermore, digital transformation efforts, such as launching a mobile lending app and establishing fintech partnerships, aim to accelerate small-business loan origination and digital deposit gathering. The company maintains a core focus on serving immigrant communities and minority-directed markets.

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Share Repurchases

• In 2023, Ponce Financial Group repurchased 1,235,000 shares of its common stock at a 20% discount to its year-end book value.
• The company has an option to repurchase its $225 million in preferred stock, issued under the Emergency Capital Investment Program (ECIP) on June 7, 2022, from the U.S. Department of the Treasury. This repurchase is contingent on meeting specific lending and performance thresholds.
• The earliest date a "Threshold Condition" for repurchasing the ECIP preferred stock could be satisfied is June 30, 2026.

Share Issuance

• In January 2022, Ponce Financial Group completed a second-step conversion and stock offering, selling 13,317,391 shares of common stock at $10.00 per share in the subscription offering.
• As part of the January 2022 conversion, existing public shareholders of PDL Community Bancorp received approximately 1.395 shares of Ponce Financial Group common stock for each share of PDL common stock.
• On January 22, 2026, key executives, including the CFO, Executive Chairman, and COO, received new equity awards in the form of restricted stock units (e.g., 10,000 shares for the CFO, 15,000 shares for the Executive Chairman, and 5,000 shares for the COO), which are scheduled to vest over five years.

Inbound Investments

• Ponce Financial Group received a $225 million investment from the U.S. Treasury in the form of Perpetual Preferred Stock on June 7, 2022, as part of the Emergency Capital Investment Program (ECIP).

Capital Expenditures

• Annual Capital Expenditures were $0.49 million in 2022, $0.41 million in 2023, and $2.72 million in 2024.
• Capital expenditures are primarily focused on supporting bank operations and infrastructure, including branch and market expansion, such as opening new offices and redesigning existing branches.
• The company is also engaged in digital and channel transformation initiatives, including launching a mobile lending app and establishing fintech partnerships, which likely involve associated capital expenditures.