v3.25.4
Regulatory Capital Requirements
12 Months Ended
Dec. 31, 2025
Disclosure Of Regulatory Capital Requirements [Abstract]  
Regulatory Capital Requirements

Note 15. Regulatory Capital Requirements

 

The Company and the Bank are subject to various regulatory capital requirements administered by the Federal Reserve Board and the OCC. 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 December 31, 2025 and 2024, 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 13.6% and 13.5% at December 31, 2025 and 2024, respectively.

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 December 31, 2025 and 2024 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)

 

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 to Risk-Weighted Assets

 

 

327,260

 

 

 

12.98

%

 

 

113,436

 

 

4.50%

 

 

163,851

 

 

 

6.50

%

Tier 1 Capital to Average 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

 

 

 

8.00

%

Common Equity Tier 1 Capital to Risk-Weighted Assets

 

 

515,502

 

 

 

20.53

%

 

 

112,976

 

 

4.50%

 

 

163,188

 

 

 

6.50

%

Tier 1 Capital to Average Assets

 

 

515,502

 

 

 

16.12

%

 

 

127,945

 

 

4.00%

 

 

159,931

 

 

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ponce Financial Group, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital to Risk-Weighted Assets

 

$

546,128

 

 

 

22.98

%

 

$

190,147

 

 

8.00%

 

$

237,684

 

 

 

10.00

%

Tier 1 Capital to Risk-Weighted Assets

 

 

520,796

 

 

 

21.91

%

 

 

142,611

 

 

6.00%

 

 

190,147

 

 

 

8.00

%

Common Equity Tier 1 Capital to Risk-Weighted Assets

 

 

295,796

 

 

 

12.44

%

 

 

106,958

 

 

4.50%

 

 

154,495

 

 

 

6.50

%

Tier 1 Capital to Average Assets

 

 

520,796

 

 

 

17.70

%

 

 

117,715

 

 

4.00%

 

 

147,144

 

 

 

5.00

%

Ponce Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital to Risk-Weighted Assets

 

$

507,632

 

 

 

21.47

%

 

$

189,137

 

 

8.00%

 

$

236,421

 

 

 

10.00

%

Tier 1 Capital to Risk-Weighted Assets

 

 

482,300

 

 

 

20.40

%

 

 

141,583

 

 

6.00%

 

 

189,137

 

 

 

8.00

%

Common Equity Tier 1 Capital Risk-Weighted Assets

 

 

482,300

 

 

 

20.40

%

 

 

106,390

 

 

4.50%

 

 

153,674

 

 

 

6.50

%

Tier 1 Capital to Average Assets

 

 

482,300

 

 

 

15.81

%

 

 

122,011

 

 

4.00%

 

 

152,514

 

 

 

5.00

%