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Here are 1-3 brief analogies for Ponce Financial (PDLB):

• A community-focused JPMorgan Chase for New York City's Bronx, Queens, and Brooklyn.
• The neighborhood version of Bank of America for specific New York City communities.

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• Deposit Accounts: Accepts various types of deposits from individuals and businesses, including checking, savings, money market, and certificates of deposit, to fund lending activities.
• Commercial Real Estate Loans: Provides financing for the acquisition, development, and refinancing of income-producing properties such as multi-family residential, retail, office, and industrial buildings.
• Residential Mortgage Loans: Offers loans to individuals for the purchase or refinance of one-to-four family owner-occupied or investment residential properties.
• Commercial & Industrial Loans: Extends credit to businesses for purposes such as working capital, equipment purchases, inventory financing, and business expansion.
• Construction Loans: Funds the construction of commercial and residential properties, typically disbursed in stages as construction progresses.

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Ponce Financial Group, Inc. (symbol: PDLB) is a bank holding company for Ponce Bank. As a financial institution, Ponce Bank serves a broad and diverse customer base rather than having a few "major customers" in the traditional sense of a manufacturing or service company.

The company primarily serves individuals and businesses within its operational footprint, focusing on the New York metropolitan area. Its customer base can be broadly categorized as:

• Individuals/Consumers: Residents seeking traditional banking services such as checking accounts, savings accounts, certificates of deposit, residential mortgages, home equity loans, and personal loans.
• Small to Medium-sized Businesses (SMBs): Local businesses requiring commercial real estate loans, business checking and savings accounts, lines of credit, and other business banking services to support their operations and growth.
• Commercial Real Estate Investors and Developers: Entities involved in real estate development and investment seeking financing for commercial properties, including multi-family residential buildings, mixed-use properties, and other commercial ventures, a significant segment for community banks in urban areas.

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• RSM US LLP

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Carlos P. Naudon, President and Chief Executive Officer

Mr. Naudon was appointed President and Chief Executive Officer in September 2017 and has served as a director since 2014. He previously served as President and Chief Operating Officer of Ponce De Leon Federal Bank starting in 2015. A retired attorney and Certified Public Accountant, Mr. Naudon has served as a consultant and regulatory counsel to Ponce De Leon Federal Bank since 1985. In 1984, he founded the financial consulting firm Banking Spectrum and his own law practice, and has since launched and successfully sold several other businesses. He also served as a Director and Acting Chief Executive Officer for Open Solutions, Inc. during its formative years. Mr. Naudon holds degrees from the University of Maryland, the University of Rochester's Simon School of Management, and Brooklyn Law School, and was an adjunct faculty member at Columbia University's Graduate School of Business. He has held leadership positions in various banking trade associations and regulatory advisory councils, including Chairman of the Community Bank Advisory Council of the Consumer Financial Protection Bureau.

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 on June 1, 2022. Prior to this role, he held a variety of positions at HSBC since 2013, including CFO of Private Bank Americas from 2015 to May 2022, Head of Financial Planning and Analysis, and Deputy CFO of Private Bank. Before joining HSBC, Mr. Vaccaro held senior roles at Morgan Stanley and Citigroup. He majored in Accounting at the University of Buenos Aires and earned an MBA from Cornell University.

Steven Tsavaris, Executive Chairman of the Board

Mr. Tsavaris has served as a director since 1990. He became Chairman of the Board and Chief Executive Officer of Ponce De Leon Federal Bank in 2013. Mr. Tsavaris joined Ponce De Leon Federal Bank as an Executive Vice President in 1995, became President in 1999, and was made Chief Executive Officer in 2011. He is a U.S. Army veteran and a graduate of City College of New York, with prior banking experience at National Bank of North America and Litton Industries' Bank Services Division.

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 held various roles including Team Leader/Supervisory National Bank Examiner and Acting Assistant Deputy Comptroller. Mr. Gonzalez received his commission as a National Bank Examiner in 2012 and is a graduate of The University of Texas at El Paso.

Frank Perez, Executive Vice President and Chief Investor Relations Officer

Mr. Perez is the Executive Vice President and Chief Investor Relations Officer. He previously served as Executive Vice President and Chief Financial Officer of Ponce De Leon Federal Bank, PDL Community Bancorp, Ponce Bank, and Ponce Bank Mutual Holding Company, appointed in January 2017. Mr. Perez is a certified public accountant with over 22 years of experience in the banking industry.

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The key risks to Ponce Financial (PDLB) include the following:

1. Risks associated with fintech partnerships and microloan portfolio: Ponce Financial faces significant risks stemming from its fintech partnerships, as demonstrated by a substantial write-off and writedown linked to cyber fraud at its partner, Grain Technologies. This incident involved approximately 25,000 fraudulent microloans totaling $17 million, resulting in a $6.3 million write-off and a $1.7 million loan-loss reserve for Ponce Financial. The company had also invested $1 million in Grain and utilizes nontraditional underwriting methods for microloans to the underbanked, leading to concerns about future write-offs and "putbacks" (loans returned to the originator).
2. Subpar Asset Quality and Profitability: Ponce Financial has consistently shown "disappointingly low" overall asset quality, with its return on assets and equity being "the worst among peers" or "underperforming" compared to other financial institutions. This is a recurring concern despite the company's growth in deposits and loans. The bank's strategy, which includes focusing on "riskier, high-impact loans" through initiatives like the US Treasury's ECIP, contributes to this lower asset quality and impacts its overall profitability.
3. Interest Rate Risk: As a banking institution, Ponce Financial is inherently vulnerable to fluctuations in interest rates. A "high interest rate environment" can be particularly challenging for smaller banks like Ponce, as it can prompt depositors to seek higher yields elsewhere, impacting funding costs. Conversely, potential interest rate cuts could benefit the company by boosting loan demand, highlighting the significant influence of interest rate movements on its net interest margin and profitability.

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The rapid acceleration of digital-first banking platforms and fintech companies that specifically target underserved or niche communities poses a clear emerging threat. These new competitors leverage technology to offer highly convenient, mobile-centric financial services, often with lower overhead costs and tailored user experiences. For Ponce Financial, a community bank with a traditional branch-based model serving specific demographics in the New York metropolitan area, this represents a fundamental challenge to its customer acquisition and retention strategies. The increasing preference for digital channels, coupled with the specialized offerings from these disruptors, threatens to erode Ponce Financial's traditional customer base and competitive advantages.

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Addressable Markets for Ponce Financial Group Inc. (PDLB)

Ponce Financial Group Inc. (PDLB) operates as the bank holding company for Ponce Bank, primarily serving the New York metropolitan area, including the Bronx, Manhattan, Queens, Brooklyn, and Union City, New Jersey.

The company's main products and services encompass various deposit offerings, such as demand accounts, NOW/IOLA, money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. They also provide a range of real estate-secured loans, including one-to-four family investor-owned and owner-occupied residential, multifamily residential, nonresidential property, construction and land loans, as well as business and consumer loans.

Estimated Addressable Market Sizes:

• Deposit Products (Retail and Commercial Deposits): Community banks in New York State held approximately $281.3 billion in total deposits at bank branches as of December 2024. This figure represents 11.5% of the total deposit share in the state.
• Commercial Banking (Commercial Loans and Deposits): The U.S. commercial banking market is valued at approximately $732.5 billion in 2025 and is projected to reach $915.45 billion by 2030. The Northeast region, which includes New York City, is a significant hub for commercial banking activities, including large-scale commercial lending. Commercial lending constituted 44.34% of the U.S. commercial banking market share in 2024.
• Retail Banking (Consumer Loans and Deposits): The United States retail banking market is valued at $0.87 trillion in 2025 and is forecasted to grow to $1.08 trillion by 2030. Urban areas, such as the New York metropolitan area where Ponce Financial operates, account for a majority of deposit concentration within the U.S. retail banking market.
• Mortgage Lending (Real Estate-Secured Loans): In New York County alone, the total mortgage loan application amount was $26.2 billion in 2023. More broadly, mortgage balances across the U.S. totaled $13.07 trillion at the end of September 2025. The global mortgage lending market, with North America being a dominant region, was valued at $11,487.23 billion in 2021 and is projected to reach $27,509.24 billion by 2031. The New York mortgage market remains active, with the median sales price in New York State increasing by approximately 6% between spring 2024 and spring 2025.

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Expected Drivers of Future Revenue Growth for Ponce Financial (PDLB)

Over the next 2-3 years, Ponce Financial (PDLB) is expected to drive revenue growth through several key initiatives and operational strengths:

• Expansion of Loan Portfolio and Net Interest Income: Ponce Financial has demonstrated consistent growth in its loan portfolio, particularly in construction and land loans, which has contributed to increased net interest income and an improved net interest margin. The company's strategic focus on high-yielding loans is expected to continue bolstering this trend.
• Operational Expansion and Enhanced Funding Capabilities: The company is actively expanding its operations, including the opening of new branches, such as a recent one in Manhattan, and modernizing its charter. These efforts are anticipated to enhance its competitive edge and funding capabilities. Furthermore, leveraging its recent conversion to a national bank is expected to facilitate access to municipal deposits, diversifying its funding base.
• Geographic and Digital Expansion: Ponce Financial is pursuing a digital and geographic expansion plan, including the initiation of a new office in Florida, to sustain growth beyond its core New York metropolitan area. This expansion is aimed at broadening its market presence and customer base.
• Deep Impact Lending under the ECIP: The company's ongoing progress in meeting commitments under the U.S. Treasury's Emergency Capital Investment Program (ECIP) for deep impact lending is crucial. Achieving a high percentage of deep impact lending is significant for maintaining favorable dividend rates on preferred stock and represents a contingent value catalyst for the potential repurchase of preferred stock at a substantial discount, which could positively impact overall financial performance and indirectly support revenue growth.

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Share Repurchases

• Ponce Financial Group completed a share repurchase program in August 2023, repurchasing 1,235,000 shares of its common stock, representing approximately 5% of its then-issued and outstanding shares.
• In December 2024, Ponce Financial secured an option to buy back all 225,000 shares of its Senior Non-Cumulative Preferred Stock from the U.S. Department of the Treasury, which was initially issued under the Emergency Capital Investment Program (ECIP) on June 7, 2022.

Share Issuance

• Ponce Financial Group issued 225,000 shares of preferred stock to the U.S. Treasury for $225 million on June 7, 2022, as part of the Emergency Capital Investment Program (ECIP).
• The company completed a second-step conversion on January 27, 2022, resulting in 24.712 million shares outstanding.

Inbound Investments

• The U.S. Department of the Treasury made a $225 million investment in Ponce Financial Group on June 7, 2022, through the Emergency Capital Investment Program (ECIP), by purchasing preferred stock.
• This ECIP investment was intended to encourage Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), such as Ponce Bank, to provide loans and support to small businesses, minority-owned businesses, and consumers in underserved communities affected by the COVID-19 pandemic.