Ponce Financial Group, Inc. is

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NEW YORK, June 09, 2022 (GLOBE NEWSWIRE) — Ponce Financial Group, Inc. (the “Company”) (PDLB), the holding company of Ponce Bank, announced that the Company has completed a $225 million private placement – Cumulative Perpetual Preferred Shares, Series A (the “Preferred Shares”), to the United States Department of Treasury (“Treasury”) pursuant to the Emergency Capital Investment Program (“ECIP”) on June 7, 2022.

The ECIP investment by Treasury is part of a program to invest more than $8.7 billion in the Community Development Financial Institution (“CDFI”) or Minority Depository Institution (“MDI”), of which Ponce Bank is both. The ECIP aims to incentivize CDFIs and MDIs to provide loans, grants and forbearance to small businesses, minority-owned businesses and consumers in low-income and underserved communities, who may have been adversely affected. disproportionate to the economic effects of COVID-19. 19 pandemic.

Preferred stock dividends are payable in cash quarterly at an annual rate that depends on the company investing the proceeds within the target communities in certain types of loans that match the types of loans the company has historically issued. The initial dividend rate is zero percent for the first two years after issuance, and thereafter the dividend will be between the floor dividend rate of 0.50% and the cap dividend rate of 2.00 %. The dividend rate after the first two years will be reset each year until the tenth anniversary of the issuance of the preferred shares and will be based on the annual change in actual qualified loans relative to a benchmark level of qualified loans, expressed as a percentage of the total liquidation amount of the preferred shares. The final reset will be based on the average annual increase in eligible loans over the nine-year period preceding the last reset date, expressed as a percentage of the total liquidation amount. The preferred shares have an aggregate liquidation amount of $225 million and are redeemable in whole or in part, at the option of the Company on any dividend payment date beginning June 15, 2027, subject to certain stated limitations and exceptions. in the Supplementary Articles to the Company’s charter setting out the conditions for the Preferred Shares.

Comments from the President and CEO

President and CEO Carlos P. Naudon said, “This significant Treasury investment will be transformative not only for Ponce Bank; it will allow us to have a massive impact on our communities – the communities of color, immigrants and those of limited means who have been so hard hit by the pandemic and their still unaddressed wealth and health gaps.

Comments from the Executive Chairman

Executive Chairman Steven A. Tsavaris added, “This capital will allow us to increase the pace of our lending and leverage our value creation for our stakeholders.”

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc., as successor by merger to PDL Community Bancorp, is the holding company of Ponce Bank. Ponce Bank is a Minority Depository Institution, Community Development Financial Institution and Small Business Administration Certified Lender. The Bank’s business is primarily to receive deposits from the general public and, to a lesser extent, from alternative sources of funding and to invest these deposits, together with funds generated from operations and borrowings, in mortgage loans. , consisting of 1 to 4 family residences (investor-owned and owner-occupied), multi-family residences, non-residential buildings and construction and land, and, to a lesser extent, business and consumer loans. The Bank also invests in securities, which consist of US government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as mortgage-backed securities, bonds and securities. corporate bonds and Federal Home Loan Bank stock.

Forward-looking statements

Certain statements contained herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be governed by the provisions of exemption from the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes”, “will”, “would”, “expect”, “plan”, “may”, “might “, “developments”, “strategic”, “launch”, “opportunities”, “anticipates”, “estimates”, “intends”, “plans”, “targets” and similar expressions. These statements are based on management’s current beliefs and expectations and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements due to a number of factors. Factors that could cause such differences to exist include including, but not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business operations; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions nationally or in the local markets in which Ponce Bank operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank loans; the anticipated impact of the COVID-19 pandemic and Ponce Bank’s attempts to mitigate it; changes in the value of securities in the investment portfolio; changes in loan default and charge rates; fluctuations in real estate values; the adequacy of loan loss reserves; declines in the level of deposits necessitating increased borrowing to finance loans and investments; operational risks, including but not limited to cybersecurity, fraud and natural disasters; changes in government regulations; changes in accounting standards and practices; the risk that the intangible assets recognized in the financial statements will be impaired; demand for loans in Ponce Bank’s market area; Ponce Bank’s ability to attract and retain deposits; risks related to the implementation of acquisitions, divestitures and restructurings; the risk that Ponce Financial Group, Inc. will fail to implement its business strategy; changes in assumptions used to make such forward-looking statements and risk factors described in PDL Community Bancorp’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the ” SEC”), which are available on the SEC website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, unless the applicable law or regulation so requires.

Franck Perez
[email protected]