Ponce Bank Branch to Receive $35 Million Deposit as Part of State Program to Increase Access to Financial Services in Historically Underserved Communities
New York State Comptroller Thomas P. DiNapoli and Department of Financial Services Superintendent Adrienne A. Harris announced the approval of Community District 9 as a Banking Development District (BDD) and presented $35 million in New York state deposits to Ponce Bank’s Westchester Avenue Branch.
The BDD program, administered by the Department of Financial Services, supports the establishment of bank and credit union branches in areas across the state where there is a demonstrated need for banking services. Bronx Community District 9 (CD 9) is now a designated BDD, covering the neighborhoods of Bronx River, Castle Hill, Clason Point, Harding Park, Parkchester, Park Stratton, Soundview, Soundview-Bruckner and Unionport.
To encourage participation in the BDD program, the State Comptroller’s office makes public deposits available to banks and credit unions to open or maintain a bank branch. DiNapoli has deposited $35 million in public funds in Ponce Bank to support their operations and provide affordable and accessible banking products and services in the community.
“We are proud to provide $35 million in public funding to Ponce Bank to improve community banking in the Soundview, Parkchester and Castle Hill neighborhoods of the Bronx,” New York State Comptroller Thomas P. DiNapoli said. “This is a smart, sound investment to ensure more financial services are available to help increase access to capital, supporting personal wealth, home ownership, entrepreneurship and jobs.”
New York State Superintendent of Financial Services Adrienne A. Harris said, “When I came into DFS three years ago I wanted to ensure that New Yorkers know that the department is working for them, making sure that financial services are both affordable and accessible. The BDD program is a powerful tool to encourage savings and credit building in our local communities.”
Bronx Borough President Vanessa Gibson said, “Today marks a significant step forward in expanding access to essential banking services for our community. I want to thank Governor Kathy Hochul, Department of Financial Services Superintendent Adrienne A. Harris, and New York State Comptroller DiNapoli for their leadership in securing $35 million in New York state deposits for Ponce Bank’s Westchester Avenue Branch. Through the Banking Development District (BDD) program, this vital investment will enhance financial inclusion and support economic growth in areas that have long been underserved. This initiative will make a tangible difference in the lives of many by providing greater access to banking services where it is needed most."
Ponce Bank President and CEO Carlos Naudon said, “Community Banking is a critical component of our financial system. Healthy Community Banks like Ponce Bank support local job growth by lending to and servicing local small businesses, spur the development of affordable housing by focusing our funding locally and with specialized local expertise, and promote community-wide Financial Mastery through classes and partnerships with local organizations. The deposit of State and New York City funds into our institution is critical to support our ability to provide these services and ensures that their deposits fund local growth.
Sasha Y. Ortiz, Executive Director of Castle Hill Business Improvement District said, “We are thrilled that our very own Ponce Bank in our district is designated as a Banking Development District bank. This benefits small businesses by providing greater access to affordable banking products and services, helping them manage their finances more effectively. The program also supports financial education and offers extended banking hours, making it easier for both small business owners and the community to access the resources they need.”
The designation of CD 9 is the result of strong community support from local organizations, residents, small businesses, and elected officials, as part of the BDD application process.
The branch is committed to increasing product affordability, expanding banking access, and increasing financial education initiatives that will foster personal and business growth and support financial empowerment and inclusion within the South Bronx community. New services include increasing access to low-cost bank accounts for unbanked members of the community, offering bank hours for New Yorkers with non-traditional work hours, expanding access to homeownership by providing a first-time homebuyer program that includes affordable mortgage products and downpayment assistance, and sponsoring bilingual financial education workshops.
The Ponce Bank branch marks the state’s fifty-sixth BDD designation. As of September 17, 2024, the State Comptroller’s office had deposits totaling approximately $ $530.3 million in 14 banking institutions that have opened branches in BDDs across the state.
Ponce Bank was founded in the Bronx in 1960 when most banks fled an area assumed to be in-decline. The bank's founders saw opportunity in an entrepreneurial community of immigrants and people of color that embodied the diverse cultures that make New York City one of the most innovative and welcoming cities in the world. The bank focuses on supporting small business, providing financial mastery education to our underserved, but highly deserving, communities, and real estate ownership, investment, and development with a particular emphasis on affordable housing. The bank now has 13 branches and 6 loan production offices throughout the NYC Metro Area, Union City New Jersey and now Coral Gables Fl, and has grown to nearly $3 Billion in assets. Ponce Bank is also now publicly traded (NASDAQ: PDLB).
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