2023 Impact Assessment Report
Corporate Headquarters 2244 Westchester Ave. | Bronx, New York 10462 Tel: (718) 931-9000 Ponce Bank | Facebook | LinkedIn | Instagram
2023 Ponce Bank Impact Assessment Report
Member FDIC l Equal Housing Lender
| CDFI MDI | SBA Certified
10.2024
Your Neighbor – Ponce Bank
originally known as Ponce De Leon Federal Savings and Loan Association, was founded in the Bronx in 1960 at a time when most banks had abandoned the community. Each day since our founding we have stayed true to the intentions of our founders, to provide access to capital for the community they were a part of. For over 60 years Ponce Bank has grown in partnership with our neighbors. Today Ponce Bank is a Community Development Financial Institution (CDFI), a Minority-Depository Institution (MDI), SBA lender, and publicly traded on the NASDAQ exchange. (Ticker. PDLB) PONCE BANK
We are: De la comunidad. En la comunidad. Para la comunidad. Of the community. In the community. For the community.
OUR MISSION AND PURPOSE
At Ponce Bank we help our neighbors prosper by providing banking services, financial education, and community building initiatives and partnerships that allow them to dream and achieve vibrant futures. We’re on a mission to prove that community banking is a powerful engine for social equity. We believe these values pave a path towards prosperity for all our stakeholders, including shareholders, customers, neighbors, and friends.
OUR COMMUNITY
Median Household
# Persistent Poverty Tracts 4
Poverty Rate 26.91% 18.97% 15.79% 11.69% 14.16% 1
Unemployment Rate 6.8% 5.5% 4.6% 4.6% 4.4% 2
# of Branches
Income $47,036 $74,692 $99,880 $82,431 $86,854 3
County Bronx County, NY* Kings County, NY* New York County, NY Queens County, NY Hudson County, NJ
4 3 2 3 1
183/339 201/761 77/288 23/669 17/166
* A CDFI Fund Persistent Poverty County in 2023
TOP RATED
Of 197 CDFI banks rated in the National Community Investment Fund, 2023 Year End CDFI Banking Industry Peer Group Report, Ponce Bank rated as Quadrant 1, signifying “high social performance.”
“Underseved but highly deserving!”
#6
#1
-Carlos Naudon, Ponce Bank President & CEO
In Assets, Loans, and Deposits of the largest CDFI Banks with branches located in LMI census tracts In total Loans among all CDFI banks nationwide
of the 20 largest CDFI Banks in Housing Focus
#2
Estimated percent of all people that are living in poverty as of 2018–2022. PolicyMap (based on data from Census: US Bureau of the Census, American Community Survey). Accessed May 22, 2024. http://www.policymap.com. 1. Unemployment rate in 2023. PolicyMap (based on data from BLS: BLS Local Area Unemployment Statistics, available at http://www.bls.gov/lau/#tables). Accessed June 24, 2024. http://www.policymap.com. 2. Estimated median income of a household, between 2018–2022. PolicyMap (based on data from Census: US Bureau of the Census, American Community Survey). Accessed June 24, 2024. http://www.policymap.com. 3. Concentrated persistent poverty, as of 2019. PolicyMap (based on data from Census, Brown University, and PolicyMap: Data downloaded from https://s4.ad.brown.edu/Projects/Diversity/Researcher/LTDB.htm, June 2023). Accessed May 22, 2024. http://www.policymap.com 4.
In total Assets among all CDFI banks nationwide
in DLI – HMDA lending activities in LMI tracts in Assets, Deposits, and Loans
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Environmental Social Governance
In 2022 Ponce Bank formalized its Environmental Social Governance (ESG) strategy and established a management ESG Committee to oversee its implementation. To support transparency, Ponce Bank is committed to using Sustainable Accounting and Standards Board (SASB) metrics to review Ponce’s alignment with best ESG practices. De la comunidad. En la comunidad. Para la comunidad. As part of our efforts Ponce Bank joins our efforts to the global push for lasting change with the adoption of four United Nations Sustainable Development Goals
Of the community. In the community. For the community.
Ponce Bank Financial Mastery programs offer life-long learning opportunities to all ages on a variety of topics related to money, banking, and business. By financing developments in affordable housing and commercial developments, Ponce is supporting the infrastructure of our neighborhoods today and in the future.
We provide all of our employees with a living-wage and respectful work environment and support our local businesses so they can do the same.
Since our founding Ponce Bank has worked directly with our community to redress historic systemic unequal access to financial products and services.
SOCIAL IMPACT
Ponce Bank is committed to diversity, equity, and inclusion. We strive to create a work environment where all are welcome regardless of race, color, religion, gender, sexual orientation, gender identity, national origin, age, genetic information, marital status, amnesty, disability, veteran status, and medical condition or diagnosis. Ponce Bank has created a workplace culture of respect and collaboration that supports our employees. Our employees carry that respect into every interaction with our customers and community.
Minority Bank executives and senior level managers 56%
Female Bank executives and senior level managers 31%
Percent of staff identifying as Minority 86%
GOVERNANCE Leadership at Ponce Bank is “De la Comunidad” bringing unique and varied perspectives into Ponce Bank
75% of our Board Directors are 1st or of 2nd generation immigrants.
75% of the Board is independent* * the majority of board members are required to be independent
“Social equity has no bounds” -Carlos Naudon, Ponce Bank President & CEO
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Amplifying Impact
At Ponce Bank we are always looking for ways to do more for the communities we serve. In 2023 we invested 93 ₵ of each deposit dollar into our community . From 2021-2023 Ponce Bank’s capital recruitment efforts have generated millions of dollars of additional community investment. And the more dollars we can recruit the more we have to reinvest!
$230MM Total Awards 2021-2023
30 BUSINESS LOANS
181 1-4 FAMILY MORTGAGES
36 MULTI-FAMILY MORTGAGES
53 CONSUMER LOANS
39 LAND, CONSTRUCTION & DEV LOANS
19 NON RESIDENTIAL MORTGAGES
$55.6MM Mission Driven Partner Deposits
2023 Total Loan Originations 358
Impact Lending & Investment Since our founding, Ponce Bank has invested dollars in places where they can do the most good. We’ve built on that tradition by creating access to capital in areas of Persistent Poverty, Majority Minority Communities, and CDFI Fund Underserved Areas.
2023 IMPACT LENDING
% of Originations
Q3 Loans
Q4 Loans
Total Category Lending
Q1 Loans Impact Origination Type
Q2 Loans
32
46%
Urban Low-Income Areas
47 47
40
$342.8MM
Minority Communities Underserved/CDFI Investment Areas Persistent Poverty Counties
63%
66
51
59
50
$485.5MM
54%
55
55
45
40
$360.7MM
41%
$466.6MM
41
46
33
28
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Impact: Supporting Small Business
Small businesses have a large impact on their communities, but being a small business isn’t easy. Ponce provides innovative solutions like the Empire State Development Linked Deposit Program, which lowers the interest rates small business borrowers pay, and Prosper small business loans of up to $25,000. Credit decisions for Prosper loans are based on demonstrated business cash-flow not credit score. These programs meet our small businesses where they are and help them access the capital they need to thrive and grow.
2023
Commercial and Industrial Loans
30 $13.6MM
Total Business Loans
“Small business is a misnomer; small businesses are the largest employers in America” -Carlos Naudon, Ponce Bank President & CEO
Amount of C & I Credit Accessed
$750,000
Loans $ to Low- to Moderate-Income Borrowers
$344,942
$ of Prosper small business loan originations
Impact Focus: $MALL BUSINESS BOOTCAMP
In 2021 Ponce Bank received community requests for educational opportunities for small businesses in low- to moderate- income areas and minority communities. To meet this need Ponce Bank partnered with the Business Outreach Center to create and deliver the Being Ready Series, a course of four free classes designed to help small businesses learn healthy financial practices. At the request of the participants and community; the series; shared in the Bronx, Brooklyn, Queens, Manhattan, and New Jersey; expanded to include a second series of classes in 2022 and a third series of classes in 2023. In 2023 the expanded series was renamed the $mall Business Bootcamp, to better represent the series’ intended audience and topics.
112 69 11 2023 $mall Business Bootcamp series I and II graduates Graduates with business generating less than $1MM in annual revenue
Graduates that self- identified as having a disability
From 2021 to 2023, 262 participants graduated from one or more Ponce $mall Business Bootcamps. Ponce Bank is excited to continue meeting a communities’ need and growing and expanding the series further in the future.
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Impact: Affordable Homeownership
Housing is often one’s greatest expense, and in the NYC metropolitan area, tens of thousands of households are burdened by housing costs that are more than 30% of their income. We work with our community partners and customers to create more affordable housing in our communities, create access to capital for underserved areas and low-income areas, and provide affordable and flexible finance options which allow families to purchase homes where they can build wealth in home equity and, as owners, directly control their housing costs. We continue to find innovative ways to support affordable homeownership including connecting first-time homeowners to $9,500 in down-payment and closing cost grants through a new program* launched in 2023.
Originations
Total Loan $ in Millions
$252.5
$122.8
$106.2
104
83
25
106 Loans
$53.8MM In Lending
Loans in Underserved Communities
Loans Creating Affordable Housing
Loans in Urban Low-Income Communities
First-Time Homebuyers
Impact: Mainstreaming Financial Mastery In U.S. schools few students learn how to create a budget or pay their taxes. Ponce Bank offers Financial Mastery education to all ages, from children to seniors. We are working every day to ensure that everyone has access to this knowledge, so making informed choices and mastering finances is ordinary and mainstream. To reach that goal we grow our Financial Mastery Program based on the requests of the community and we make this information widely available free of cost. www.poncebank.com
“Home ownership is the primary wealth builder!”
-Carlos Naudon, Ponce Bank President & CEO
Series Created at Community Request:
$mall Business Bootcamp; Series I, II & III
Financial Mastery
2023
Non-Profit Grassroots Program
167 Sessions
2,662 Attendees
Programa Acelerado Para Empresarios
Protecting Your Legacy
*Grant funds provided through Federal Home Loan Bank of New York Homebuyer Dream Program.
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Non-Profits in our community focus on the needs of our neighbors every day. By delivering exceptional service and products that meet non-profits’ unique needs we help them grow and better serve their missions. Impact: Serving Non-Profits
“Support from Ponce Bank allows Per Scholas to expand our work preparing individuals traditionally underrepresented in technology for high-growth careers in the industry. Through rigorous training, professional development, and robust employer connections, we advance equity and connect skilled talent to leading businesses. Thank you for the progress you are making possible.”
-Plinio Ayala, Per Scholas President & CEO
2023 New Deposits
Total Deposits
Total Lending
Number of Accounts
152
$22.1MM
$69.6MM
$28.9MM
Impact: Community Giving Making an impact is about more than providing financial services. We give directly to our community through sponsorship of community based organizations providing a different, but dearly needed, type of service to the communities we love; we give of our time through staff volunteering; and we contribute to the future success of our community through academic scholarships.
Volunteer Events
Volunteer Hours
291 Sponsorships
$76,000 66 Scholarships
17
174
$589,914
“We are of the community, we live in the community, and we are for the community. That is why we give to the community.”
-Carlos Naudon, Ponce Bank President & CEO
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Ponce Bank Impact Partners
There’s a proverb, “Go fast alone, go far together!” that we’ve found to be true. With the help of our Mission Driven Deposit Partners and our Non-Profit Customers, Ponce Bank is able to ‘go far,’ by doing more in the community and meeting the specific and diverse needs of each community we serve.
2023 4th Quarter Mission Driven Deposit Partners Banc of America Community Development Corp Bank of America Bank United Block Inc Delta National Bank/Safra Bank Empire State Bank First Central Savings Bank Mizuho Bank New Millenium Bank NYS Empire State Development OceanFirst Bank The Berkshire Bank TIAA
You Can Make an Impact With Ponce Bank
Affordable Housing & Down-payment Assistance Grants Reserve Allocations for Mission-driven Products Low-cost Deposits Equity Investments Loan Participations & Syndications Credit Card Solutions & Other Payment Platforms Merchant Processing Legal, Auditing, and Consulting Services Brokerage Services Special Purpose Credit Programs ATM Network Expansion Technology, System, and Digital Capabilities Marketing & Visibility Economic & Market Analysts New Products & Services Training & Development, Coaching Strategic & Business Planning Wealth Management & Financial Planning Solutions New Market & Other Tax Credit Opportunities Appraisal/Evaluation Service
“Ponce Bank’s community giving and partnering programs amplify the impact of your investment on the community.”
-Carlos Naudon, Ponce Bank President & CEO
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Locations
The Bronx Southern Blvd 980 Southern Boulevard Bronx, NY 10459
Queens Jackson Heights 37-60 82nd Street Jackson Heights, NY 11372
170th Street 51 East 170th Street Bronx, NY 10452
Astoria 34-05 Broadway Astoria, NY 11106
Westchester Avenue 2244 Westchester Ave Bronx, NY 10462
Forest Hills 100-20 Queens Boulevard Forest Hills, NY 11375
Riverdale 5560 Broadway Bronx, NY 10463
Brooklyn Smith Street 169 Smith Street Brooklyn, NY 11201 Flatlands 1900 Ralph Ave Brooklyn, NY 11234 Bensonhurst 2047 86th Street Brooklyn, NY 11214
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Manhattan 106th Street 207 East 106th Street New York, NY 10029 Stuyvesant Town 319 1st Ave New York, NY 10003 New Jersey Union City 3821 Bergenline Ave Union City, NJ 07087
Learn More
poncebank.com
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