Ponce Financial Group, Inc. announced robust financial results for the first quarter ended March 31, 2025. Net income for the quarter surged to $6.0 million, a substantial increase from $2.9 million in the prior quarter and $2.4 million in the first quarter of 2024. This significant growth reflects the company's effective strategy in managing net interest margin, operating expenses, and fee income.
Net interest income for the first quarter of 2025 increased by $1.5 million, or 7.11%, to $22.2 million compared to the fourth quarter of 2024, and by $3.4 million, or 17.96%, compared to the first quarter of 2024. The net interest margin expanded by 18 basis points to 2.98% from the prior quarter, driven by a 9 basis point rise in loan yields and a 10 basis point decrease in the cost of funds. Operating expenses also decreased quarter over quarter, contributing to improved profitability.
The company reported a benefit for credit losses of $0.3 million for the quarter, a positive shift from a $0.9 million provision in the prior quarter. Total assets grew by $49.9 million, or 1.64%, to $3.09 billion as of March 31, 2025, with net loans receivable increasing by $84.3 million and deposits by $120.1 million. Ponce Financial Group continues to emphasize that its high-yielding construction lending qualifies as Deep Impact lending under the ECIP, which helps to lower preferred stock dividends.
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