Tax-allowance release boosts Ponce profit alongside stronger lending income

Ponce Financial ($PDLB) reported third-quarter 2026 earnings available to common shareholders of $18 million, or $0.76 per diluted share, compared with $8.2 million and $0.35 in the second quarter. A $10.5 million release of valuation allowances against state and city deferred tax assets materially lifted the result. The quarter also included a $1.2 million property loss and a $0.4 million investment gain.

Underlying lending income strengthened: net interest income rose 13.1% from the previous quarter to $34 million, and net interest margin increased from 3.66% to 3.86%. However, interest income included $800,000 recovered from a previously nonaccrual loan. Net loans reached $3.08 billion, up 18.5% from year-end 2025. Growth and improved margins support recurring earnings, but the tax release and other unusual items limit how directly the headline profit can be extrapolated.

Sources:

• GlobeNewswire