Ponce Financial Group, Inc. Debt Disclosure
Note 9. Borrowings
FHLBNY Advances: As a member of 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 FHLBNY Statement of Credit Policy, at the time of the borrowing. In accordance with an agreement with FHLBNY, the qualified collateral must be free and clear of liens, pledges and encumbrances.
The Bank had $596.1 million and $571.1 million of outstanding term advances from the FHLBNY at December 31, 2025 and 2024, respectively. The Bank had a $25.0 million overnight line of credit advance from the FHLBNY at December 31, 2024. The Bank had no overnight line of credit advance from the FHLBNY at December 31, 2025.
FRBNY Borrowings: The Bank had no term or overnight line of credit borrowing outstanding from the FRBNY at December 31, 2025 and 2024.
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 December 31, 2025 and 2024.
Borrowed funds at December 31, 2025 and 2024 consist of the following and are summarized by maturity and call date below:
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December 31, |
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December 31, |
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2025 |
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2024 |
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Scheduled |
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Redeemable |
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|
Weighted |
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|
Scheduled |
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|
Redeemable |
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|
Weighted |
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(Dollars in thousands) |
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Overnight line of credit advance |
$ |
— |
|
|
$ |
— |
|
|
|
— |
% |
|
$ |
25,000 |
|
|
$ |
25,000 |
|
|
|
4.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
FHLBNY Term advances ending: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2025 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
100,000 |
|
|
|
100,000 |
|
|
|
4.48 |
|
2026 |
|
225,000 |
|
|
|
225,000 |
|
|
|
4.20 |
|
|
|
200,000 |
|
|
|
200,000 |
|
|
|
4.25 |
|
2027 |
|
212,000 |
|
|
|
212,000 |
|
|
|
3.44 |
|
|
|
212,000 |
|
|
|
212,000 |
|
|
|
3.44 |
|
2028 |
|
109,100 |
|
|
|
109,100 |
|
|
|
3.74 |
|
|
|
9,100 |
|
|
|
9,100 |
|
|
|
3.84 |
|
2029 |
|
50,000 |
|
|
|
50,000 |
|
|
|
3.35 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
3.35 |
|
|
$ |
596,100 |
|
|
$ |
596,100 |
|
|
|
3.78 |
% |
|
$ |
596,100 |
|
|
$ |
596,100 |
|
|
|
3.94 |
% |
Interest expense on advances totaled $20.6 million, $27.5 million and $25.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 19, 2024 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.