UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-41255

Ponce Financial Group, Inc.

(Exact Name of Registrant as Specified in its Charter)

Maryland	87-1893965
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2244 Westchester Avenue Bronx, NY	10462
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (718) 931-9000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	PDLB	The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 5, 2026, the registrant had 24,187,901 shares of common stock, $0.01 par value per share, outstanding.

Auditor Firm Id: 686 Auditor Name: Forvis Mazars, LLP Auditor Location: New York, New York, USA

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Consolidated Financial Statements	1
	Consolidated Statements of Financial Condition (Unaudited)	1
	Consolidated Statements of Operations (Unaudited)	2
	Consolidated Statements of Comprehensive Income (Unaudited)	3
	Consolidated Statements of Stockholders’ Equity (Unaudited)	4
	Consolidated Statements of Cash Flows (Unaudited)	5
	Notes to Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49
Item 4.	Controls and Procedures	49
PART II.	OTHER INFORMATION	50
Item 1.	Legal Proceedings	50
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 3.	Defaults Upon Senior Securities	50
Item 4.	Mine Safety Disclosures	50
Item 5.	Other Information	50
Item 6.	Exhibits	51
Signatures		52

i

PART I—FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements.

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

March 31, 2026 and December 31, 2025

(Dollars in thousands, except share data)

	March 31,			December 31,
	2026			2025
	(unaudited)
ASSETS
Cash and due from banks:
Cash	$	27,429		$	28,511
Interest-bearing deposits		89,817			97,643
Total cash and cash equivalents		117,246			126,154
Available-for-sale securities, at fair value (Note 3)		87,150			92,196
Held-to-maturity securities, net of allowance for credit losses of $211 at March 31, 2026 and $236 at December 31, 2025; at amortized cost (fair value at March 31, 2026 $258,007 and at December 31. 2025 $268,875) (Note 3)		263,514			272,982
Placement with banks		249			249
Mortgage loans held for sale, at fair value (Note 4)		2,127			3,388
Loans receivable, net of allowance for credit losses of $26,238 at March 31, 2026 and $25,449 at December 31, 2025 (Note 5)		2,698,649			2,599,258
Accrued interest receivable		19,274			17,905
Premises and equipment, net		15,159			15,638
Right of use assets (Note 6)		27,633			27,583
Federal Home Loan Bank of New York (FHLBNY) stock, at cost		28,180			29,309
Federal Reserve Bank of New York (FRBNY) stock, at cost		10,706			10,698
Deferred tax assets		11,729			11,501
Other assets		19,141			17,109
Total assets	$	3,300,757		$	3,223,970
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits (Note 7)	$	2,133,795		$	2,046,635
Borrowings (Note 8)		571,100			596,100
Operating lease liabilities		29,429			29,353
Accrued interest payable		4,338			3,788
Other liabilities		10,732			6,545
Total liabilities		2,749,394			2,682,421
Commitments and contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized:
Series A, senior non-cumulative perpetual, $1,000 per share liquidation preference, 225,000 shares issued and outstanding as of March 31, 2026 and December 31, 2025		225,000			225,000
Common stock, $0.01 par value; 200,000,000 shares authorized; 24,886,711 shares issued at both March 31, 2026 and December 31, 2025; 24,187,901 shares outstanding as of March 31, 2026 and 24,135,926 shares outstanding as of December 31, 2025		249			249
Treasury stock, at cost; 698,810 shares as of March 31, 2026 and 750,785 shares as of December 31, 2025		(5,738	)		(6,164	)
Additional paid-in-capital		209,219			208,604
Retained earnings		143,674			135,332
Accumulated other comprehensive loss (Note 13)		(10,680	)		(10,820	)
Unearned compensation ─ ESOP; 1,134,808 shares as of March 31, 2026 and 1,168,244  shares as of December 31, 2025		(10,361	)		(10,652	)
Total stockholders' equity		551,363			541,549
Total liabilities and stockholders' equity	$	3,300,757		$	3,223,970

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

1

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

Three Months Ended March 31, 2026 and 2025

(Dollars in thousands, except share data)

	For the Three Months Ended March 31,
	2026		2025
Interest and dividend income:
Interest on loans receivable	$	43,982	$	37,136
Interest on deposits due from banks		770		1,668
Interest and dividend on securities and FHLBNY stock		3,910		5,193
Total interest and dividend income		48,662		43,997
Interest expense:
Interest on certificates of deposit		6,415		7,754
Interest on other deposits		8,630		8,554
Interest on borrowings		5,391		5,486
Total interest expense		20,436		21,794
Net interest income		28,226		22,203
Provision (benefit) for credit losses (Note 3) (Note 5)		1,656		(285	)
Net interest income after provision (benefit) for credit losses		26,570		22,488
Non-interest income:
Service charges and fees		539		525
Brokerage commissions		—		4
Late and prepayment charges		726		697
Income on sale of mortgage loans		120		148
Income on sale of SBA loans		—		404
Other		657		603
Total non-interest income		2,042		2,381
Non-interest expense:
Compensation and benefits		8,663		7,780
Occupancy and equipment		3,672		3,913
Data processing expenses		1,219		1,152
Direct loan expenses		121		388
Insurance and surety bond premiums		333		315
Office supplies, telephone and postage		193		170
Professional fees		1,346		1,364
Marketing and promotional expenses		228		83
Federal deposit insurance and regulatory assessment		409		461
Other operating expenses		1,056		1,262
Total non-interest expense		17,240		16,888
Income before income taxes		11,372		7,981
Provision for income taxes		2,749		2,022
Net income	$	8,623	$	5,959
Dividends on preferred shares		281		281
Net income available to common stockholders	$	8,342	$	5,678
Earnings per common share (Note 9):
Basic	$	0.36	$	0.25
Diluted	$	0.36	$	0.25
Weighted average common shares outstanding (Note 9):
Basic		22,988,317		22,662,916
Diluted		23,331,314		22,876,740

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

2

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended March 31, 2026 and 2025

(In thousands)

	For the Three Months Ended March 31,
	2026			2025
Net income	$	8,623		$	5,959
Net change in unrealized gain on securities:
Unrealized gain		178			2,264
Income tax effect		(38	)		(482	)
Total other comprehensive income, net of tax		140			1,782
Total comprehensive income		8,763			7,741
Less: Dividends on preferred shares		281			281
Total comprehensive income available to common stockholders	$	8,482		$	7,460

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

3

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Unaudited)

Three Months Ended March 31, 2026 and 2025

(Dollars in thousands, except share data)

																		Accumulated			Unallocated
									Treasury			Additional						Other			Common
	Preferred Stock				Common Stock				Stock,			Paid-in			Retained			Comprehensive			Stock
	Shares		Amount		Shares		Amount		At Cost			Capital			Earnings			Loss			of ESOP			Total
Balance, December 31, 2025		225,000	$	225,000		24,135,926	$	249	$	(6,164	)	$	208,604		$	135,332		$	(10,820	)	$	(10,652	)	$	541,549
Net income		—		—		—		—		—			—			8,623			—			—			8,623
Preferred stock dividend		—		—		—		—		—			—			(281	)		—			—			(281	)
Other comprehensive income, net of tax		—		—		—		—		—			—			—			140			—			140
Release of restricted stock units		—		—		26,094		—		214			(214	)					—			—			—
Exercise of stock options		—		—		25,881		—		212			10			—			—			—			222
ESOP shares committed to be released (33,436 shares)		—		—		—		—		—			267			—			—			291			558
Share-based compensation		—		—		—		—		—			552			—			—			—			552
Balance, March 31, 2026		225,000	$	225,000		24,187,901	$	249	$	(5,738	)	$	209,219		$	143,674		$	(10,680	)	$	(10,361	)	$	551,363

																		Accumulated			Unallocated
									Treasury			Additional						Other			Common
	Preferred Stock				Common Stock				Stock,			Paid-in			Retained			Comprehensive			Stock
	Shares		Amount		Shares		Amount		At Cost			Capital			Earnings			Loss			of ESOP			Total
Balance, December 31, 2024		225,000	$	225,000		23,961,214	$	249	$	(7,707	)	$	207,319		$	107,754		$	(15,297	)	$	(11,818	)	$	505,500
Net income		—		—		—		—		—			—			5,959			—			—			5,959
Preferred stock dividend		—		—		—		—		—			—			(281	)		—			—			(281	)
Other comprehensive income, net of tax		—		—		—		—		—			—			—			1,782			—			1,782
Release of restricted stock units		—		—		4,977		—		66			(66	)		—			—			—			—
ESOP shares committed to be released (33,436 shares)		—		—		—		—		—			132			—			—			291			423
Share-based compensation		—		—		—		—		—			503			—			—			—			503
Balance, March 31, 2025		225,000	$	225,000		23,966,191	$	249	$	(7,641	)	$	207,888		$	113,432		$	(13,515	)	$	(11,527	)	$	513,886

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

4

Ponce Financial Group, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended March 31, 2026 and 2025

(In thousands)

	Three Months Ended
	March 31,
	2026			2025
Cash Flows From Operating Activities:
Net income	$	8,623		$	5,959
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums/discounts on securities, net		(3	)		(22	)
Gain on sale of loans		(120	)		(552	)
Provision (benefit) for credit losses		1,656			(285	)
Depreciation and amortization		1,232			1,207
ESOP compensation expense		587			560
Share-based compensation expense		552			503
Deferred income taxes		(266	)		(37	)
Changes in assets and liabilities:
Decrease in mortgage loans held for sale, fair value		1,381			2,317
Increase in accrued interest receivable		(1,369	)		(1,237	)
(Increase) decrease in other assets		(2,032	)		8,448
Increase in accrued interest payable		550			916
Decrease in operating lease liabilities		(684	)		(730	)
Increase (decrease) in other liabilities		3,774			(3,960	)
Net cash provided by operating activities		13,881			13,087
Cash Flows From Investing Activities:
Net redemption and (purchase) of FHLBNY stock		1,129			3,375
Net redemption and (purchase) of FRBNY stock		(8	)		—
Proceeds from maturities, calls and principal repayments on securities		14,720			13,603
Proceeds from sale of loans		1,067			5,738
Net increase in loans		(101,751	)		(90,397	)
Purchases of premises and equipment		(47	)		(154	)
Net cash used in investing activities		(84,890	)		(67,835	)
Cash Flows From Financing Activities:
Net increase in deposits		87,160			120,083
Net repayment from borrowings		(25,000	)		(75,000	)
Stock options exercised		222			—
Dividends paid on preferred stock		(281	)		(281	)
Net cash provided by financing activities		62,101			44,802
Net decrease in cash and cash equivalents		(8,908	)		(9,946	)
Cash and cash equivalents at beginning of period		126,154			139,839
Cash and cash equivalents at end of period	$	117,246		$	129,893
Supplemental disclosures of cash flow information:
Cash paid for interest on deposits and borrowings	$	19,886		$	20,878
Cash paid for income taxes	$	520		$	409
Operating lease assets in exchange for operating lease liabilities	$	760		$	—

The accompanying notes are an integral part of the consolidated financial statements (unaudited).

5

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1. Nature of Business

Basis of Presentation and Consolidation:

Ponce Financial Group, Inc. (hereafter referred to as “we,” “our,” “us,” “Ponce Financial Group, Inc.,” or the “Company”) is a financial holding company and the holding company of Ponce Bank, National Association. (“Ponce Bank” or the “Bank”), a national bank. The Company’s Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary Ponce Bank. All significant intercompany transactions and balances have been eliminated in consolidation. For further information, refer to the audited Consolidated Financial Statements and Notes included in the Company' Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 13, 2026 (the "2025 Form 10-K").

Use of Estimates: In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the consolidated statement of financial condition, and revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of loans held for sale, the valuation of deferred tax assets and investment securities and the estimates relating to the valuation for share-based awards.

Segment Reporting: Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment and one reportable segment.

Note 2. Preferred Stock

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. Under the ECIP, Treasury provided investment capital directly to depository institutions that are CDFIs or MDIs or their holding companies, to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, in low-income and underserved communities. No dividends accrued or were due for the first two years after issuance. For years three through ten, depending upon the level of qualified and/or deep impact lending made in targeted communities, as defined in the ECIP guidelines, dividends will be at an annual rate of either 2.0%, 1.25% or 0.5% and, thereafter, will be fixed at one of the foregoing 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. 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).

Holders of Preferred Stock generally do not have any voting rights, with the exception of voting rights on certain matters as outlined in the Certificate of Designations. The Treasury is the holder of the Preferred Stock and a governmental entity, and the Treasury may hold interests that are different from a private investor in exercising its voting and other rights. 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.

As a participant in the ECIP, the Company must comply with certain operating requirements. Specifically, the Company must adopt the Treasury's standards for executive compensation and luxury expenses for the period during which the Treasury holds equity issued under the ECIP. These restrictions may make it difficult to adequately compensate our management team, which could impact our ability to retain qualified management. 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. In June 2024, the Company began paying dividends on its Preferred Stock, which dividends were $0.3 million for the three months ended March 31, 2026 and $0.3 million for the three months ended March 31, 2025.

6

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

On December 20, 2024, the Company entered into an ECIP Securities Purchase Option Agreement (the “Repurchase Agreement”) with Treasury. Pursuant to the Repurchase Agreement, Treasury has granted the Company an option to purchase all of the Preferred Stock during the Option Period, which is the first fifteen years following the Original Closing Date. The purchase price for the Preferred Stock pursuant to the purchase option is determined based on a formula equal to the present value of the Preferred Stock, calculated as set forth in the Repurchase Agreement, together with any accrued and unpaid dividends thereon, as of the closing date. Subject to variations in interest rates and the equity risk premium, which are components included in the purchase price calculation, the Company presently expects that the purchase price will be at a substantial discount from the face value of the Preferred Stock.

The purchase option may not be exercised unless and until at least one of the Threshold Conditions under the Repurchase Agreement has been met. The Threshold Conditions are as follows: during the ten years that follow the Original Closing Date (the “ECIP Period”) either (1) over any sixteen consecutive quarters, an average of at least 60% of the Company’s Total Originations, as defined pursuant to the terms of the ECIP, qualifies as “Deep Impact Lending,” as defined pursuant to the terms of the ECIP (the “Deep Impact Condition”); (2) over any twenty-four consecutive quarters, an average of at least 85% of the Company’s Total Originations qualifies as “Qualified Lending,” as defined pursuant to the terms of the ECIP (the “Qualified Lending Condition”); or (3) the Preferred Stock has a dividend rate of no more than 0.5%, which dividend rate is calculated pursuant to the ECIP and the terms thereof, at each of six consecutive Reset Dates, as defined in the ECIP.

The earliest possible date by which a Threshold Condition may be met is June 30, 2026, which is the end of the sixteenth consecutive quarter following the Original Closing Date. However, the Company does not currently meet any of the Threshold Conditions to exercise the purchase option, and there can be no assurance if and when the Threshold Conditions will be met. The closing of the repurchase of the Preferred Stock, if consummated, would occur between thirty and ninety days following the satisfaction of the Threshold Condition and all other applicable conditions. At present, the Company has reported 15 consecutive quarters for which it has met both the Deep Impact and Qualified Lending Conditions. The Preferred Stock currently has a dividend rate of 0.5%.

In addition to the requirement that a Threshold Condition be met, the Repurchase Agreement requires that the Company meet certain other eligibility conditions in order to exercise the purchase option in the future, including compliance with the terms of the original ECIP purchase agreement and the terms of the Preferred Stock, maintaining qualification as either a CDFI or an MDI, and meeting other legal and regulatory criteria. 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, or any amended or additional criteria that may be imposed, in the future.

The purchase option granted under the agreement is a freestanding financial instrument under GAAP. The Company analyzed the fair value of the repurchase option in accordance with ASC Topic 820 “Fair Value Measurements” and determined that the purchase option value is de minimis as of December 20, 2024, December 31, 2025 and March 31, 2026.

7

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 3. Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities at March 31, 2026 and December 31, 2025 are summarized as follows:

	March 31, 2026
				Gross		Gross
	Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
Corporate Bonds	$	13,500		$	—	$	(558	)	$	12,942
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		30,077			—		(4,494	)		25,583
FHLMC Certificates		7,660			—		(790	)		6,870
FNMA Certificates		49,414			—		(7,735	)		41,679
GNMA Certificates		75			1		—			76
Total available-for-sale securities	$	100,726		$	1	$	(13,577	)	$	87,150
Held-to-Maturity Securities:
Corporate Bonds	$	7,500		$	25	$	(192	)	$	7,333
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		155,069			41		(3,453	)		151,657
FHLMC Certificates		3,107			42		(119	)		3,030
FNMA Certificates		87,438			—		(2,125	)		85,313
SBA Certificates		10,611			63		—			10,674
Allowance for Credit Losses		(211	)		—		—			—
Total held-to-maturity securities	$	263,514		$	171	$	(5,889	)	$	258,007

(1)Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.

	December 31, 2025
				Gross		Gross
	Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,999		$	—	$	(20	)	$	2,979
Corporate Bonds		13,501			—		(738	)		12,763
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		30,839			—		(4,493	)		26,346
FHLMC Certificates		7,915			—		(790	)		7,125
FNMA Certificates		50,620			—		(7,714	)		42,906
GNMA Certificates		76			1		—			77
Total available-for-sale securities	$	105,950		$	1	$	(13,755	)	$	92,196
Held-to-Maturity Securities:
Corporate Bonds	$	7,500		$	36	$	(138	)	$	7,398
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		160,786			100		(2,876	)		158,010
FHLMC Certificates		3,133			22		(119	)		3,036
FNMA Certificates		90,868			53		(1,453	)		89,468
SBA Certificates		10,931			32		—			10,963
Allowance for Credit Losses		(236	)		—		—			—
Total held-to-maturity securities	$	272,982		$	243	$	(4,586	)	$	268,875

8

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

(1)Comprised of FHLMC, FNMA and GNMA issued securities.

The Company’s securities portfolio had 33 and 34 available-for-sale securities and 28 and 28 held-to-maturity securities at March 31, 2026 and December 31, 2025, respectively. There were no available-for-sale and held-to-maturity securities sold during the three months ended March 31, 2026 and for the year ended December 31, 2025. There was one available-for-sale security in the amount of $3.0 million that matured during the three months ended March 31, 2026. There were four available-for-sale securities in the total amount of $8.3 million and three held-to-maturity securities in the total amount of $50.0 million that matured or were called during the year ended December 31, 2025. The Company did not purchase any available-for-sale securities and held-to-maturity securities during the three months ended March 31, 2026 and during the year ended December 31, 2025.

The following table presents the Company's gross unrealized losses and fair values of its securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2026 and December 31, 2025:

	March 31, 2026
	Securities With Gross Unrealized Losses
	Less Than 12 Months					12 Months or More					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Available-for-Sale Securities:
Corporate Bonds	$	—	$	—		$	12,942	$	(558	)	$	12,942	$	(558	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		—		—			25,583		(4,494	)		25,583		(4,494	)
FHLMC Certificates		—		—			6,870		(790	)		6,870		(790	)
FNMA Certificates		—		—			41,679		(7,735	)		41,679		(7,735	)
Total available-for-sale securities	$	—	$	—		$	87,074	$	(13,577	)	$	87,074	$	(13,577	)
Held-to-Maturity Securities:
Corporate Bonds	$	—	$	—		$	5,308	$	(192	)	$	5,308	$	(192	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		16,013		(21	)		127,773		(3,432	)		143,786		(3,453	)
FHLMC Certificates		—		—			605		(119	)		605		(119	)
FNMA Certificates		3,464		(48	)		81,849		(2,077	)		85,313		(2,125	)
Total held-to-maturity securities	$	19,477	$	(69	)	$	215,535	$	(5,820	)	$	235,012	$	(5,889	)

9

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

	December 31, 2025
	Securities With Gross Unrealized Losses
	Less Than 12 Months					12 Months or More					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	—	$	—		$	2,979	$	(20	)	$	2,979	$	(20	)
Corporate Bonds		—		—			12,763		(738	)		12,763		(738	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		—		—			26,346		(4,493	)		26,346		(4,493	)
FHLMC Certificates		—		—			7,125		(790	)		7,125		(790	)
FNMA Certificates		—		—			42,906		(7,714	)		42,906		(7,714	)
Total available-for-sale securities	$	—	$	—		$	92,119	$	(13,755	)	$	92,119	$	(13,755	)
Held-to-Maturity Securities:
Corporate Bonds	$	—	$	—		$	5,362	$	(138	)	$	5,362	$	(138	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		16,561		(50	)		132,942		(2,826	)		149,503		(2,876	)
FHLMC Certificates		—		—			616		(119	)		616		(119	)
FNMA Certificates		—		—			85,670		(1,453	)		85,670		(1,453	)
Total held-to-maturity securities	$	16,561	$	(50	)	$	224,590	$	(4,536	)	$	241,151	$	(4,586	)

At March 31, 2026 and December 31, 2025, the Company had 32 and 33 available-for-sale securities and 22 and 21 held-to-maturity securities at March 31, 2026 and December 31, 2025, respectively, with gross unrealized loss positions. Management reviewed the financial condition of the entities underlying the securities at both March 31, 2026 and December 31, 2025. The unrealized losses related to the Company debt securities were issued by U.S. government-sponsored entities and agencies and corporate bonds. The Company does not believe that the debt securities that were in an unrealized loss position as of March 31, 2026 represents a credit loss impairment. The gross unrealized loss positions related to mortgage-backed securities and other obligations issued by the U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Total gross unrealized losses were primarily attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities.

10

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Management reviewed the collectability of the corporate bonds taking into consideration of such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting date. Management believes the unrealized losses on the corporate bonds are primarily attributable to changes in the interest rates and not changes in the credit quality of the issuers of the corporate bonds.

The following is a summary of maturities of securities at March 31, 2026. Amounts are shown by contractual maturity. Because borrowers for mortgage-backed securities have the right to prepay obligations with or without prepayment penalties, at any time, these securities are included as a total within the table.

	March 31, 2026
	Amortized			Fair
	Cost			Value
	(in thousands)
Available-for-Sale Securities:
Corporate Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		4,000			3,602
More than five years through ten years		9,500			9,340
		13,500			12,942
Mortgage-Backed Securities		87,226			74,208
Total available-for-sale securities	$	100,726		$	87,150
Held-to-Maturity Securities:
Corporate Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		—			—
More than one year through five years		—			—
More than five years through ten years		7,500			7,333
		7,500			7,333
Mortgage-Backed Securities		256,225			250,674
Allowance for Credit Losses		(211	)		—
Total held-to-maturity securities	$	263,514		$	258,007

At March 31, 2026 and December 31, 2025, no securities were pledged as collateral for borrowing activities.

The following table presents the activity in the allowance for credit losses for held-to-maturity securities:

	For the Three
	Months Ended			For the Year Ended
	March 31, 2026			December 31, 2025
	(in thousands)
Allowance for credit losses on securities at beginning of period	$	236		$	216
(Benefit) provision for credit losses		(25	)		20
Allowance for credit losses on securities at end of period	$	211		$	236

At March 31, 2026 and December 31, 2025, the entire allowance for credit losses on securities was allocated to corporate bonds.

11

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 4. Mortgage Loans Held-for-Sale

The following table provides the fair value and contractual principal balance outstanding of mortgage loans held-for-sale accounted for under the fair value option:

	March 31,		December 31,
	2026		2025
	(in thousands)
Mortgage loans held-for-sale, at fair value	$	2,127	$	3,388
Mortgage loans held-for-sale, contractual principal outstanding		2,084		3,337
Fair value less unpaid principal balance	$	43	$	51

At March 31, 2026 and December 31, 2025, the Company had 7 loans and 10 loans in the amount of $2.1 million and $3.4 million, respectively, that were classified as held-for-sale and accounted for under the fair value option accounting guidance for financial assets and financial liabilities.

At March 31, 2026 and December 31, 2025, there were no mortgage loans held for sale that were greater than 90 days past due and non-accrual with a substandard risk rating.

12

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 5. Loans Receivable, Net and Allowance for Credit Losses

Loans receivable, net at March 31, 2026 and December 31, 2025 are summarized as follows:

	March 31,			December 31,
	2026			2025
	(in thousands)
Mortgage loans:
1-4 Family residential (1)	$	431,377		$	434,374
Multifamily residential		915,333			756,542
Nonresidential properties		534,256			526,210
Construction and land		763,990			854,096
Total mortgage loans		2,644,956			2,571,222
Nonmortgage loans:
Business loans		80,366			53,063
Consumer loans		596			625
Total non-mortgage loans		80,962			53,688
Total loans, gross		2,725,918			2,624,910
Net deferred loan origination fees		(1,031	)		(203	)
Allowance for Credit Losses		(26,238	)		(25,449	)
Loans receivable, net	$	2,698,649		$	2,599,258

(1)Includes both investor owned and owner occupied 1-4 family residential properties combined, which were previously reported separately.

The Company’s lending activities are conducted principally in metropolitan New York City. The Company primarily grants loans secured by real estate to individuals and businesses pursuant to an established credit policy applicable to each type of lending activity in which it engages. Although collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrowers’ ability to generate continuing cash flows. The Company also evaluates the collateral and creditworthiness of each customer. The credit policy provides that depending on the borrowers’ creditworthiness and type of collateral, credit may be extended up to predetermined percentages of the market value of the collateral or on an unsecured basis. Real estate is the primary form of collateral. Other important forms of collateral are time deposits and marketable securities.

For disclosures related to the allowance for credit losses and credit quality, the Company does not have any disaggregated classes of loans below the segment level.

Credit-Quality Indicators: Internally assigned risk ratings are used as credit-quality indicators, which are reviewed by management on a quarterly basis.

The objectives of the Company’s risk-rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for credit losses.

Below are the definitions of the internally assigned risk ratings:

•Strong Pass – Loans to a new or existing borrower collateralized at least 90 percent by an unimpaired deposit account at the Company.

•Good Pass – Loans to a new or existing borrower in a well-established enterprise in excellent financial condition with strong liquidity and a history of consistently high level of earnings, cash flow and debt service capacity.

•Satisfactory Pass – Loans to a new or existing borrower of average strength with acceptable financial condition, satisfactory record of earnings and sufficient historical and projected cash flow to service the debt.

•Performance Pass – Existing loans that evidence strong payment history but document less than average strength, financial condition, record of earnings, or projected cash flows with which to service the debt.

•Special Mention – Loans in this category are currently protected but show one or more potential weaknesses and risks which may inadequately protect collectability or borrower’s ability to meet repayment terms at some future date if the weakness or weaknesses are not monitored or remediated.

13

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

•Substandard – Loans that are inadequately protected by the repayment capacity of the borrower or the current sound net worth of the collateral pledged, if any. Loans in this category have well defined weaknesses and risks that jeopardize the repayment. They are characterized by the distinct possibility that some loss may be sustained if the deficiencies are not remediated.

•Doubtful – Loans that have all the weaknesses of loans classified as “Substandard” with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable.

Loans within the top four categories above are considered pass rated, as commonly defined. Risk ratings are assigned as necessary to differentiate risk within the portfolio. Risk ratings are reviewed on an ongoing basis and revised to reflect changes in the borrowers’ financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage as well as other considerations.

The following tables summarize total loans by year of origination and internally assigned credit risk ratings:

	2026		2025		2024		2023		2022		2021 and Prior		Total
	(in thousands)
March 31, 2026
Mortgage Loans:
1-4 Family residential
Pass	$	2,577	$	6,299	$	6,743	$	41,302	$	98,061	$	267,817	$	422,799
Special mention		—		—		—		839		—		1,527		2,366
Substandard		—		—		—		—		—		6,212		6,212
Total 1-4 Family residential		2,577		6,299		6,743		42,141		98,061		275,556		431,377
Multifamily residential
Pass		185,930		137,161		104,458		72,837		156,666		243,226		900,278
Special mention		—		—		—		1,120		—		2,018		3,138
Substandard		—		—		—		5,005		—		6,912		11,917
Total Multifamily residential		185,930		137,161		104,458		78,962		156,666		252,156		915,333
Nonresidential properties
Pass		20,827		166,854		75,267		28,249		75,447		166,254		532,898
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		1,358		1,358
Total Nonresidential properties		20,827		166,854		75,267		28,249		75,447		167,612		534,256
Construction and Land
Pass		69,229		281,505		143,481		243,289		11,501		—		749,005
Special mention		—		—		—		4,744		—		—		4,744
Substandard		—		—		—		—		—		10,241		10,241
Total Construction and land		69,229		281,505		143,481		248,033		11,501		10,241		763,990
Total mortgage loans		278,563		591,819		329,949		397,385		341,675		705,565		2,644,956
Nonmortgage Loans:
Business loans
Pass		918		52,897		17,162		6,518		90		1,958		79,543
Special mention		—		255		—		—		—		185		440
Substandard		—		67		235		—		9		72		383
Total Business loans		918		53,219		17,397		6,518		99		2,215		80,366
Consumer loans
Pass		103		202		99		140		48		4		596
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total Consumer loans		103		202		99		140		48		4		596
Total nonmortgage loans		1,021		53,421		17,496		6,658		147		2,219		80,962
Total loans, gross	$	279,584	$	645,240	$	347,445	$	404,043	$	341,822	$	707,784	$	2,725,918

14

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

	2025		2024		2023		2022		2021		2020 and Prior		Total
	(in thousands)
December 31, 2025
Mortgage Loans:
1-4 Family residential
Pass	$	3,843	$	4,108	$	43,110	$	98,048	$	53,740	$	221,194	$	424,043
Special mention		—		—		842		—		823		1,180		2,845
Substandard		—		—		—		—		2,302		5,184		7,486
Total 1-4 Family residential		3,843		4,108		43,952		98,048		56,865		227,558		434,374
Multifamily residential
Pass		149,358		107,129		73,769		157,228		58,343		186,331		732,158
Special mention		—		4,462		1,121		—		4,332		1,357		11,272
Substandard		—		—		5,063		—		—		8,049		13,112
Total Multifamily residential		149,358		111,591		79,953		157,228		62,675		195,737		756,542
Nonresidential properties
Pass		170,449		77,935		28,328		74,281		59,835		112,768		523,596
Special mention		—		—		—		2,614		—		—		2,614
Substandard		—				—		—		—		—		—
Total Nonresidential properties		170,449		77,935		28,328		76,895		59,835		112,768		526,210
Construction and Land
Pass		279,271		143,515		358,926		56,297		—		—		838,009
Special mention		—		—		4,659		—		—		—		4,659
Substandard		—		—		—		—		3,180		8,248		11,428
Total Construction and land		279,271		143,515		363,585		56,297		3,180		8,248		854,096
Total mortgage loans		602,921		337,149		515,818		388,468		182,555		544,311		2,571,222
Nonmortgage Loans:
Business loans
Pass		26,618		17,183		6,421		105		457		1,609		52,393
Special mention		344		—		—		7		—		192		543
Substandard		—		37		—		12		78		—		127
Total Business loans		26,962		17,220		6,421		124		535		1,801		53,063
Consumer loans
Pass		275		127		160		57		6		—		625
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total Consumer loans		275		127		160		57		6		—		625
Total nonmortgage loans		27,237		17,347		6,581		181		541		1,801		53,688
Total loans, gross	$	630,158	$	354,496	$	522,399	$	388,649	$	183,096	$	546,112	$	2,624,910

15

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

An aging analysis of loans, as of March 31, 2026 and December 31, 2025, is as follows:

	March 31, 2026
			30-59		60-89		90 Days						90 Days
			Days		Days		or More				Nonaccrual		or More
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgage loans:
1-4 Family residential	$	422,323	$	4,598	$	821	$	3,635	$	431,377	$	3,635	$	—
Multifamily residential		899,936		6,169		—		9,228		915,333		9,228		—
Nonresidential properties		533,429		827		—		—		534,256		—		—
Construction and land		756,929		—		—		7,061		763,990		7,061		—
Nonmortgage loans:
Business		78,933		1,006		—		427		80,366		427		—
Consumer		596		—		—		—		596		—		—
Total	$	2,692,146	$	12,600	$	821	$	20,351	$	2,725,918	$	20,351	$	—

	December 31, 2025
			30-59		60-89		90 Days						90 Days
			Days		Days		or More				Nonaccrual		or More
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgage loans:
1-4 Family residential	$	420,591	$	6,836	$	2,110	$	4,837	$	434,374	$	4,837	$	—
Multifamily residential		740,222		3,208		—		13,112		756,542		13,112		—
Nonresidential properties		524,446		1,764		—		—		526,210		—		—
Construction and land		845,849		—		—		8,247		854,096		8,247		—
Nonmortgage loans:
Business		52,278		118		—		667		53,063		667		—
Consumer		625		—		—		—		625		—		—
Total	$	2,584,011	$	11,926	$	2,110	$	26,863	$	2,624,910	$	26,863	$	—

The following schedules detail the composition of the allowance for credit losses on loans and the related recorded investment in loans as of and for the three months ended March 31, 2026 and 2025, and as of and for the year ended December 31, 2025:

	For the Three Months Ended March 31, 2026
	Mortgage Loans										Nonmortgage Loans						Total
	1-4 Family Residential		Multifamily			Nonresidential		Construction and Land			Business			Consumer			For the Period
	(in thousands)
Allowance for Credit Losses:
Balance, beginning of period	$	3,873	$	9,041		$	4,353	$	6,149		$	2,017		$	16		$	25,449
Provision (benefit) charged to expense		801		(1,095	)		389		(541	)		1,745			(6	)		1,293
Charge-offs		—		—			—		—			(504	)		—			(504	)
Recoveries		—		—			—		—			—			—			—
Balance, end of period	$	4,674	$	7,946		$	4,742	$	5,608		$	3,258		$	10		$	26,238
Ending balance: individually    evaluated for impairment	$	—	$	—		$	—	$	—		$	427		$	—		$	427
Ending balance: collectively    evaluated for impairment		4,674		7,946			4,742		5,608			2,831			10			25,811
Total	$	4,674	$	7,946		$	4,742	$	5,608		$	3,258		$	10		$	26,238
Loans:
Ending balance: individually    evaluated for impairment	$	3,635	$	9,228		$	—	$	7,061		$	427		$	—		$	20,351
Ending balance: collectively    evaluated for impairment		427,742		906,105			534,256		756,929			79,939			596			2,705,567
Total	$	431,377	$	915,333		$	534,256	$	763,990		$	80,366		$	596		$	2,725,918

16

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

	For the Three Months Ended March 31, 2025
	Mortgage Loans										Nonmortgage Loans						Total
	1-4 Family Residential			Multifamily		Nonresidential		Construction and Land			Business			Consumer			For the Period
	(in thousands)
Allowance for loan losses:
Balance, beginning of period	$	5,932		$	5,004	$	2,697	$	7,710		$	1,113		$	46		$	22,502
(Benefit) provision charged to expense		(1,393	)		2,836		300		(1,064	)		52			—			731
Charge-offs		(38	)		—		—		—			(222	)		(3	)		(263	)
Recoveries		—			—		—		—			4			—			4
Balance, end of period	$	4,501		$	7,840	$	2,997	$	6,646		$	947		$	43		$	22,974
Ending balance: individually    evaluated for impairment	$	—		$	—	$	—	$	—		$	171		$	—		$	171
Ending balance: collectively    evaluated for impairment		4,501			7,840		2,997		6,646			776			43			22,803
Total	$	4,501		$	7,840	$	2,997	$	6,646		$	947		$	43		$	22,974
Loans:
Ending balance: individually    evaluated for impairment	$	2,906		$	9,788	$	—	$	10,058		$	171		$	—		$	22,923
Ending balance: collectively    evaluated for impairment		460,636			665,753		390,681		805,367			46,158			997			2,369,592
Total	$	463,542		$	675,541	$	390,681	$	815,425		$	46,329		$	997		$	2,392,515

	For the Year Ended December 31, 2025
	Mortgage Loans										Nonmortgage Loans						Total
	1-4 Family Residential			Multifamily		Nonresidential		Construction and Land			Business			Consumer			For the Period
	(in thousands)
Allowance for loan losses:
Balance, beginning of year	$	5,932		$	5,004	$	2,697	$	7,710		$	1,113		$	46		$	22,502
(Benefit) provision charged to expense		(1,990	)		4,037		1,656		(1,561	)		2,309			18			4,469
Charge-offs		(69	)		—		—		—			(1,444	)		(48	)		(1,561	)
Recoveries		—			—		—		—			39			—			39
Balance, end of year	$	3,873		$	9,041	$	4,353	$	6,149		$	2,017		$	16		$	25,449
Ending balance: individually    evaluated for impairment	$	—		$	—	$	—	$	—		$	667		$	—		$	667
Ending balance: collectively    evaluated for impairment		3,873			9,041		4,353		6,149			1,350			16			24,782
Total	$	3,873		$	9,041	$	4,353	$	6,149		$	2,017		$	16		$	25,449
Loans:
Ending balance: individually    evaluated for impairment	$	4,837		$	13,112	$	—	$	8,247		$	667		$	—		$	26,863
Ending balance: collectively    evaluated for impairment		429,537			743,430		526,210		845,849			52,396			625			2,598,047
Total	$	434,374		$	756,542	$	526,210	$	854,096		$	53,063		$	625		$	2,624,910

The following tables summarize gross charge-offs by vintage:

	2026		2025		2024		2023		2022		2021 and Prior		Total
	(in thousands)
For the Three Months Ended March 31, 2026
Business loans	$	—	$	—	$	100	$	393	$	11	$	—	$	504
Total charge-offs	$	—	$	—	$	100	$	393	$	11	$	—	$	504

17

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

	2025		2024		2023		2022		2021		2020 and Prior		Total
	(in thousands)
For the Three Months Ended March 31, 2025
1-4 Family residential	$	—	$	—	$	—	$	—	$	—	$	38	$	38
Business loans		—		197		—		—		—		25		222
Consumer loans		—		—		3		—		—		—		3
Total charge-offs	$	—	$	197	$	3	$	—	$	—	$	63	$	263

Loans are considered non-accrual when current information and events indicate all amounts due may not be collectable according to the contractual terms of the related loan agreements. Non-accrual loans are identified by applying normal loan review procedures in accordance with the allowance for credit losses methodology. Management periodically assesses loans to determine whether impairment exists. Any loan that is, or will potentially be, no longer performing in accordance with the terms of the original loan contract is evaluated to determine impairment.

The following information relates to non-accrual loans as of and for the three months ended March 31, 2026 and 2025 and as of and for the year ended December 31, 2025:

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
As of and For the Three Months Ended	Principal		With No		With		Recorded		Related		Recorded		Recognized
March 31, 2026	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	3,624	$	3,635	$	—	$	3,635	$	—	$	4,236	$	28
Multifamily residential		9,072		9,228		—		9,228		—		11,170		64
Nonresidential properties		—		—		—		—		—		—		—
Construction and land		7,061		7,061		—		7,061		—		7,654		—
Nonmortgage loans:
Business		227		—		427		427		427		547		2
Consumer		—		—		—		—		—		—		—
Total	$	19,984	$	19,924	$	427	$	20,351	$	427	$	23,607	$	94
	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
As of and For the Three Months Ended	Principal		With No		With		Recorded		Related		Recorded		Recognized
March 31, 2025	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	2,892	$	2,906	$	—	$	2,906	$	—	$	2,600	$	12
Multifamily residential		9,527		9,788		—		9,788		—		10,030		32
Nonresidential properties		—		—		—		—		—		—		—
Construction and land		10,058		10,058		—		10,058		—		10,058		—
Nonmortgage loans:
Business		171		—		171		171		171		257		—
Consumer		—		—		—		—		—		—		—
Total	$	22,648	$	22,752	$	171	$	22,923	$	171	$	22,945	$	44

18

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
As of and for the Year Ended	Principal		With No		With		Recorded		Related		Recorded		Recognized
December 31, 2025	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	4,819	$	4,837	$	—	$	4,837	$	—	$	3,182	$	209
Multifamily residential		12,731		13,112		—		13,112		—		11,815		390
Nonresidential properties		—		—		—		—		—		101		—
Construction and land		8,800		8,247		—		8,247		—		7,596		—
Nonmortgage loans:
Business		667		—		667		667		667		467		10
Consumer		—		—		—		—		—		—		—
Total	$	27,017	$	26,196	$	667	$	26,863	$	667	$	23,161	$	609

Collateral Dependent Loans

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral.

The Company had collateral dependent loans which were individually evaluated to determine expected credit losses as of the dates indicated.

	March 31, 2026				December 31, 2025
			Associated				Associated
	Collateral		Allowance for		Collateral		Allowance for
	Dependent		Credit Losses		Dependent		Credit Losses
	(in thousands)
1-4 Family residential	$	3,636	$	—	$	4,837	$	—
Multifamily residential		9,228		—		13,112		—
Construction and land		7,060		—		8,247		—
Total	$	19,924	$	—	$	26,196	$	—

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company adopted Accounting Standards Update (“ASU”) 2022-02 on January 1, 2023. Since adoption, the Company has modified one loan with borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. At March 31, 2026 and December 31, 2025, there was one loan in the amount of $0.2 million with modifications to a borrower experiencing financial difficulty.

Prior to the adoption of ASU 2022-02 on January 1, 2023, the Company classified certain loans as troubled debt restructuring (“TDR”) loans when credit terms to a borrower in financial difficulty were modified, in accordance with ASC 310-40. With the adoption of ASU 2022-02 as of January 1, 2023, the Company has ceased to recognize or measure for new TDRs but those existing at December 31, 2022 will remain until settled.

At March 31, 2026 and December 31, 2025, there were 14 and 14 troubled debt restructured loans totaling $3.6 million and $3.6 million, respectively, of which $3.3 million and $3.2 million are on accrual status at March 31, 2026 and December 31, 2025, respectively. There were no commitments to lend additional funds to borrowers whose loans have been modified in a troubled debt restructuring.

Off-Balance Sheet Credit Losses

Also included within the scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and construction loans.

The Company estimates expected credit losses over the contractual period in which the company is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit

19

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

losses on off-balance sheet exposures is adjusted as a provision for credit loss expense. The Company uses similar assumptions and risk factors that are developed for collectively evaluated financing receivables. This estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments to be funded over its estimated life.

At March 31, 2026 and December 31, 2025, the allowance for off-balance sheet credit losses was $2.5 million and $2.1 million, respectively, which is included in the "Other liabilities" on the Consolidated Statements of Financial Condition. During the three months ended March 31, 2026 and 2025, the Company had $0.4 million charged for the provision for credit losses and $1.0 million in benefit for credit losses, for off-balance items, which are included in "Provision (benefit) for contingencies" in the Consolidated Statements of Operations.

Note 6. Leases

The Company has 16 operating leases for branches and office spaces (including headquarters) and six operating leases for equipment at both March 31, 2026 and December 31, 2025. Our leases have remaining lease terms ranging from less than one year to approximately 13.8 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term. Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through February of 2040.

Supplemental balance sheet information related to leases was as follows:

	March 31,			December 31,
	2026			2025
	(Dollars in thousands)
Operating lease ROU assets	$	27,633		$	27,583
Operating lease liabilities		29,429			29,353
Weighted-average remaining lease term-operating leases	11.1 years			11.2 years
Weighted average discount rate-operating leases		5.1	%		5.1	%

The components of lease expense and cash flow information related to leases were as follows:

		For the Three
		Months Ended
		March 31,
		2026		2025
		(Dollars in thousands)
Lease Cost
Operating lease cost	Occupancy and equipment	$	1,049	$	1,126
Operating lease cost	Other operating expenses		3		—
Short-term lease cost	Other operating expenses		7		9
Variable lease cost	Occupancy and equipment		38		46
Total lease cost		$	1,097	$	1,181

The Company’s minimum annual rental payments under the terms of the leases are as follows at March 31, 2026:

	Minimum Rental
Years ended December 31:	(in thousands)
Remainder of 2026	$	3,009
2027		3,780
2028		3,808
2029		3,360
2030		3,423
Thereafter		21,157
Total Minimum payments required		38,537
Less: implied interest		9,108
Present value of lease liabilities	$	29,429

20

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 7. Deposits

Deposits at March 31, 2026 and December 31, 2025 are summarized as follows:

	March 31,		December 31,
	2026		2025
	(in thousands)
Demand	$	241,012	$	208,250
Interest-bearing deposits:
NOW/IOLA accounts		78,192		84,012
Money market accounts (1)		811,982		779,532
Reciprocal deposits		162,926		152,630
Savings accounts		118,373		117,708
Total NOW, money market, reciprocal and savings		1,171,473		1,133,882
Certificates of deposit of $250K or more		258,093		202,500
Brokered certificates of deposits (2)		54,553		67,942
Listing service deposits (2)		1,243		4,150
Certificates of deposit less than $250K		407,421		429,911
Total certificates of deposit		721,310		704,503
Total interest-bearing deposits		1,892,783		1,838,385
Total deposits	$	2,133,795	$	2,046,635

(1)At March 31, 2026 and December 31, 2025, there were $0.3 million each in brokered deposits.

(2)At March 31, 2026 and December 31, 2025, there were no individual listing service deposits amounting to $250,000 or more. All other brokered certificates of deposit individually amounted to less than $250,000.

At March 31, 2026 scheduled maturities of certificates of deposit were as follows:

	(in thousands)
2026	$	521,073
2027		162,344
2028		24,307
2029		9,769
2030		3,272
Thereafter		545
	$	721,310

Overdrawn deposit accounts that have been reclassified to loans amounted to $0.1 million as of both March 31, 2026 and December 31, 2025.

Note 8. Borrowings

The Bank had outstanding term advances from the FHLBNY at March 31, 2026 and December 31, 2025 as indicated below.

FHLBNY Advances: As a member of the FHLBNY, the Bank has the ability to borrow from the FHLBNY based on a certain percentage of the value of the Bank's qualified collateral, as defined in the FHLBNY Statement of Credit Policy, at the time of the borrowing. In accordance with an agreement with the FHLBNY, the qualified collateral must be free and clear of liens, pledges and encumbrances.

The Bank had $571.1 million and $596.1 million of outstanding term advances from the FHLBNY at March 31, 2026 and December 31, 2025, respectively. The Bank had no overnight line of credit advance from the FHLBNY at March 31, 2026 and December 31, 2025.

FRBNY Advances: The Bank had no term and overnight line of credit advances outstanding from the FRBNY at March 31, 2026 and December 31, 2025.

21

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Letters of Credit: The Bank had two unsecured lines of credit in the amount of $75.0 million with two correspondent banks for both periods at March 31, 2026 and December 31, 2025.

Borrowed funds at March 31, 2026 and December 31, 2025 consist of the following and are summarized by maturity and call date below:

	March 31, 2026							December 31, 2025
	Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate			Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate
	(Dollars in thousands)
FHLBNY Term advances ending:
2026	$	150,000	$	150,000		4.06	%	$	225,000	$	225,000		4.20	%
2027		212,000		212,000		3.44			212,000		212,000		3.44
2028		109,100		109,100		3.74			109,100		109,100		3.74
2029		100,000		100,000		3.50			50,000		50,000		3.35
	$	571,100	$	571,100		3.67	%	$	596,100	$	596,100		3.78	%

Interest expense on advances totaled $5.4 million and $5.5 million for the three months ended March 31, 2026 and 2025, respectively.

Note 9. Earnings Per Common Share

The following table presents a reconciliation of the number of common shares used in the calculation of basic and diluted earnings per common share:

	For the Three Months Ended March 31,
	2026		2025
	(Dollars in thousands except share data)
Net income available to common stockholders	$	8,342	$	5,678
Common shares outstanding for basic EPS:
Weighted average common shares outstanding		24,156,189		23,964,532
Less: Weighted average unallocated Employee Stock    Ownership Plan (ESOP) shares		1,167,872		1,301,616
Basic weighted average common shares outstanding		22,988,317		22,662,916
Basic earnings per common share	$	0.36	$	0.25
Potential dilutive common shares:
Add: Dilutive effect of restricted stock awards and stock options		342,997		213,824
Diluted weighted average common shares outstanding		23,331,314		22,876,740
Diluted earnings per common share	$	0.36	$	0.25

Note 10. Commitments, Contingencies and Credit Risk

Financial Instruments With Off-Balance-Sheet Risk: In the normal course of business, financial instruments with off-balance-sheet risk may be used to meet the financing needs of customers. These financial instruments include commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized

22

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

on the Consolidated Statements of Financial Condition. The contractual amounts of these instruments reflect the extent of involvement in particular classes of financial instruments.

The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. The same credit policies are used in making commitments and contractual obligations as for on-balance-sheet instruments. Financial instruments whose contractual amounts represent credit risk at March 31, 2026 and December 31, 2025 are as follows:

	March 31,		December 31,
	2026		2025
	(in thousands)
Commitments to grant mortgage loans	$	443,536	$	395,388
Unfunded commitments under lines of credit		54,083		86,284
Total commitments	$	497,619	$	481,672

Commitments to Grant Mortgage Loans: Commitments to grant mortgage loans are agreements to lend to a customer as long as all terms and conditions are met as established in the contract. Commitments generally have fixed expiration dates or other termination clauses, and may require payment of a fee by the borrower. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate and income-producing commercial properties. Material losses are not anticipated as a result of these transactions.

Commitments to Sell Loans at Lock-in Rates: In order to assure itself of a marketplace to sell its loans, the Bank has agreements with investors who will commit to purchase loans at locked-in rates. The Bank has off-balance sheet market risk to the extent that the Bank does not obtain matching commitments from these investors to purchase the loans. This will expose the Bank to the lower of cost or market valuation environment.

Repurchases, Indemnifications and Premium Recaptures: Loans sold by the Bank under investor programs are subject to repurchase or indemnification if they fail to meet the origination criteria of those programs. In addition, loans sold to investors are also subject to repurchase or indemnifications if the loan is two or three months delinquent during a set period which usually varies from six months to a year after the loan is sold. There are no open repurchase or indemnification requests for loans sold as a correspondent lender or where the Company acted as a broker in the transaction as of March 31, 2026.

Unfunded Commitments Under Lines of Credit: Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extension of credit to existing customers. These lines of credit are uncollateralized and usually contain a specified maturity date and, ultimately, may not be drawn upon to the total extent to which the Company is committed.

Unfunded Commitments with Oaktree: In December of 2021, the Bank committed to invest $5.0 million in Oaktree SBIC Fund, L.P. ("Oaktree"). As of March 31, 2026, the total unfunded commitment was $1.7 million.

Unfunded Commitments with Silvergate: In April of 2022, the Company committed to invest $5.2 million in EJF Silvergate Ventures Fund LP ("Silvergate"). As of March 31, 2026, the total unfunded commitment was $1.2 million.

Letters of Credit: Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Letters of credit are largely cash secured.

Concentration by Geographic Location: Loans, commitments to extend credit and letters of credit have been granted to customers who are located primarily in the New York City metropolitan area. Generally, such loans most often are secured by residential properties. The loans are expected to be repaid from the borrowers' payment sources.

Legal Matters: The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations.

23

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 11. Fair Value

The following fair value hierarchy is used based on the lowest level of input significant to the fair value measurement. There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate fair value:

Cash and Cash Equivalents, Placement with Banks, Accrued Interest Receivable, and Accrued Interest Payable: The carrying amount is a reasonable estimate of fair value. These assets and liabilities are not recorded at fair value on a recurring basis.

Available-for-Sale Securities: These financial instruments are recorded at fair value in the consolidated financial statements on a recurring basis. Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted prices are not available, then fair values are estimated by using pricing models (e.g., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds and mortgage-backed securities. Level 3 securities are securities for which significant unobservable inputs are utilized. There were no changes in valuation techniques used to measure similar assets during the period.

FHLBNY Stock: FHLBNY stock is carried at cost and classified as restricted equity securities. As a member of the FHLBNY, the Company is required to purchase and hold this stock.

FRBNY Stock: FRBNY stock is carried at cost and classified as restricted equity securities. As a member of the FRBNY, the Company is required to purchase and hold this stock.

Loans Receivable: For variable rate loans, which reprice frequently and have no significant change in credit risk, carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using estimated market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. Individual assessed loans are valued using a present value discounted cash flow method, or the fair value of the collateral. Loans are not recorded at fair value on a recurring basis.

Mortgage Loans Held for Sale: Loans held for sale, at fair value, consists of loans originated for sale by the Bank and accounted for under the fair value option. These assets are valued using stated investor pricing for substantially equivalent loans as Level 2. In determining fair value, such measurements are derived based on observable market data, including whole-loan transaction pricing and similar market transactions adjusted for portfolio composition, servicing value and market conditions. Loans held for sale by the Bank are carried at the lower of cost or fair value as determined by investor bid prices.

Under the fair value option, management has elected, on an instrument-by-instrument basis, fair value for substantially all forms of mortgage loans originated for sale on a recurring basis. As of March 31, 2026, the fair value carrying amount of mortgages held for sale measured under the fair value option was $2.1 million and the aggregate unpaid principal amounted to $2.1 million.

Other Real Estate Owned: Other real estate owned represents real estate acquired through foreclosure, and is recorded at fair value less estimated disposal costs on a nonrecurring basis. Fair value is based upon independent market prices, appraised values of the collateral or management's estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the asset is classified as Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the asset is classified as Level 3.

Deposits: The fair values of demand deposits, savings, NOW and money market accounts equal their carrying amounts, which represent the amounts payable on demand at the reporting date. Fair values for fixed-term, fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on certificates of deposit to a schedule of aggregated expected monthly maturities on such deposits. Deposits are not recorded at fair value on a recurring basis.

24

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

FHLBNY Advances: The fair value of the advances is estimated using a discounted cash flow calculation that applies current market-based FHLBNY interest rates for advances of similar maturity to a schedule of maturities of such advances. These borrowings are not recorded at fair value on a recurring basis.

Off-Balance-Sheet Instruments: Fair values for off-balance-sheet instruments (lending commitments and standby letters of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. Off-balance-sheet instruments are not recorded at fair value on a recurring basis.

The following tables detail the assets that are carried at fair value and measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, and indicate the level within the fair value hierarchy utilized to determine the fair value:

			March 31, 2026
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Available-for-Sale Securities, at fair value:
Corporate bonds	$	12,942	$	646	$	12,296	$	—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		25,583		—		25,583		—
FHLMC Certificates		6,870		—		6,870		—
FNMA Certificates		41,679		—		41,679		—
GNMA Certificates		76		—		76		—
Mortgage Loans Held for Sale, at fair value		2,127		—		2,127		—
	$	89,277	$	646	$	88,631	$	—

			December 31, 2025
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds	$	2,979	$	2,979	$	—	$	—
Corporate bonds		12,763		492		12,271		—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		26,346		—		26,346		—
FHLMC Certificates		7,125		—		7,125		—
FNMA Certificates		42,906		—		42,906		—
GNMA Certificates		77		—		77		—
Mortgage Loans Held for Sale, at fair value		3,388		—		3,388		—
	$	95,584	$	3,471	$	92,113	$	—

Management’s assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred.

The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of March 31, 2026 and December 31, 2025 and indicate the fair value hierarchy utilized to determine the fair value:

	March 31, 2026
	Total		Level 1		Level 2		Level 3
	(in thousands)
Individually evaluated loans	$	20,351	$	—	$	—	$	20,351

	December 31, 2025
	Total		Level 1		Level 2		Level 3
	(in thousands)
Individually evaluated loans	$	26,863	$	—	$	—	$	26,863

Losses on assets carried at fair value on a nonrecurring basis were de minimis for the three months ended March 31, 2026 and 2025, respectively.

25

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

As of March 31, 2026 and December 31, 2025, the carrying values and estimated fair values of the Company's financial instruments were as follows:

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
March 31, 2026
Financial assets:
Cash and cash equivalents	$	117,246	$	117,246	$	—	$	—	$	117,246
Available-for-sale securities, at fair value		87,150		646		86,504		—		87,150
Held-to-maturity securities, at amortized cost, net		263,514		—		258,007		—		258,007
Placement with banks		249		—		249		—		249
Mortgage loans held for sale, at fair value		2,127		—		2,127		—		2,127
Loans receivable, net		2,698,649		—		—		2,667,660		2,667,660
Accrued interest receivable		19,274		—		19,274		—		19,274
FHLBNY stock		28,180		28,180		—		—		28,180
FRBNY stock		10,706		10,706		—		—		10,706
Financial liabilities:
Deposits:
Demand deposits		241,012		241,012		—		—		241,012
Interest-bearing deposits		1,171,473		1,171,473		—		—		1,171,473
Certificates of deposit		721,310		—		719,990		—		719,990
Borrowings		571,100		—		567,043		—		567,043
Accrued interest payable		4,338		—		4,338		—		4,338

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
December 31, 2025
Financial assets:
Cash and cash equivalents	$	126,154	$	126,154	$	—	$	—	$	126,154
Available-for-sale securities, at fair value		92,196		3,471		88,725		—		92,196
Held-to-maturity securities, at amortized cost		272,982		—		268,875		—		268,875
Placement with banks		249		—		249		—		249
Mortgage loans held for sale, at fair value		3,388		—		3,388		—		3,388
Loans receivable, net		2,599,258		—		—		2,577,298		2,577,298
Accrued interest receivable		17,905		—		17,905		—		17,905
FHLBNY stock		29,309		29,309		—		—		29,309
FRBNY stock		10,698		—		10,698		—		10,698
Financial liabilities:
Deposits:
Demand deposits		208,250		208,250		—		—		208,250
Interest-bearing deposits		1,133,882		1,133,882		—		—		1,133,882
Certificates of deposit		704,503		—		704,205		—		704,205
Borrowings		596,100		—		595,031		—		595,031
Accrued interest payable		3,788		—		3,788		—		3,788

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no transfers of Level 3 assets in the fair value hierarchy at March 31, 2026 and December 31, 2025. Fair value for Level 3 securities was determined using a third-party pricing service with limited levels of activity and price transparency.

Off-Balance-Sheet Instruments: Loan commitments on which the committed interest rate is less than the current market rate are insignificant at March 31, 2026 and December 31, 2025.

26

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The fair value information about financial instruments are disclosed, whether or not recognized in the consolidated statements of financial condition, for which it is practicable to estimate that value. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair value amounts for 2026 and 2025 have been measured as of their respective period-ends and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than amounts reported at each period.

The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company's assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other banks may not be meaningful.

Note 12. Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by the Federal Reserve Board, the OCC and the U.S. Department of Housing and Urban Development. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s operations and financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation require the maintenance of minimum amounts and ratios (set forth in the table below) of total risk-based and Tier 1 capital to risk-weighted assets (as defined), common equity Tier 1 capital (as defined), and Tier 1 capital to adjusted total assets (as defined) adjusted total assets (as defined). As of March 31, 2026 and December 31, 2025, the applicable capital adequacy requirements specified below have been met.

The below minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions including dividend payments and certain discretionary bonus payments to executive officers. The applicable capital buffer for the Bank was 12.0% at March 31, 2026 and 13.6% at December 31, 2025.

The most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and the Bank must maintain minimum total risk-based, common equity risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There were no conditions or events since then of which management is aware that have changed the Bank's category.

The Company's and the Bank’s actual capital amounts and ratios as of March 31, 2026 and December 31, 2025 as compared to regulatory requirements are as follows:

									To Be Well
									Capitalized Under
						For Capital			Prompt Corrective
	Actual					Adequacy Purposes			Action Provisions
	Amount		Ratio			Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
March 31, 2026
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets	$	590,692		21.23	%	$	222,591	8.00%	$	278,238		10.00	%
Tier 1 Capital to Risk-Weighted Assets		561,941		20.20	%		166,943	6.00%		222,591		8.00	%
Common Equity Tier 1 Capital Ratio		336,941		12.11	%		125,207	4.50%		180,855		6.50	%
Tier 1 Capital to Total Assets		561,941		17.22	%		130,554	4.00%		163,192		5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets	$	554,166		20.00	%	$	221,631	8.00%	$	277,039		10.00	%
Tier 1 Capital to Risk-Weighted Assets		525,415		18.97	%		166,224	6.00%		221,631		8.00	%
Common Equity Tier 1 Capital Ratio		525,415		18.97	%		124,668	4.50%		180,076		6.50	%
Tier 1 Capital to Total Assets		525,415		16.09	%		130,593	4.00%		163,241		5.00	%

27

Ponce Financial Group, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
December 31, 2025
Ponce Financial Group, Inc.
Total Capital to Risk-Weighted Assets	$	579,833		23.00	%	$	201,663		8.00	%	$	252,079		10.00	%
Tier 1 Capital to Risk-Weighted Assets		552,260		21.91	%		151,247		6.00	%		201,663		8.00	%
Common Equity Tier 1 Capital Ratio		327,260		12.98	%		113,436		4.50	%		163,851		6.50	%
Tier 1 Capital to Total Assets		552,260		17.27	%		127,880		4.00	%		159,850		5.00	%
Ponce Bank
Total Capital to Risk-Weighted Assets	$	543,076		21.63	%	$	200,847		8.00	%	$	251,059		10.00	%
Tier 1 Capital to Risk-Weighted Assets		515,502		20.53	%		150,635		6.00	%		200,847