Pioneer Bancorp, Inc. Reports Third Quarter 2025 Results Net Income of $4.3 Million (Form 8-K)

Selected highlights at and for the three and nine months ended September 30, 2025 are as follows:

Net Interest Income and Margin

Net interest income increased $2.3 million, or 12.9%, to $20.2 million for the three months ended September 30, 2025 from $17.9 million for the three months ended September 30, 2024, and increased $6.5 million, or 12.3%, to $58.9 million for the nine months ended September 30, 2025 from $52.4 million for the nine months ended September 30, 2024. The increase in net interest income for the three months ended September 30, 2025 was primarily due to an increase in the average yield on interest-earning assets of 22 basis points and an increase in the average balance of interest-earning assets of $205.7 million, partially offset by an increase in the average cost of interest-bearing liabilities of 16 basis points and an increase in the average balance of interest-bearing liabilities of $182.8 million. The increase in net interest income for the nine months ended September 30, 2025 was primarily due to an increase in the average yield on interest-earning assets of 29 basis points and an increase in the average balance of interest-earning assets of $151.5 million, partially offset by an increase in the average cost of interest-bearing liabilities of 17 basis points and an increase in the average balance of interest-bearing liabilities of $124.5 million.

Interest income increased $3.9 million, or 16.0%, to $28.3 million for the three months ended September 30, 2025, from $24.4 million for the three months ended September 30, 2024. Interest income increased $10.0 million, or 14.2%, to $81.1 million for the nine months ended September 30, 2025, from $71.1 million for the nine months ended September 30, 2024. The increase in interest income for the three and nine months ended September 30, 2025 was driven by market-related increases in interest rates on new loans and on investment securities purchased. The average yield on interest-earning assets increased by 22 basis points to 5.86% for the three months ended September 30, 2025, compared to 5.64% for the three months ended September 30, 2024. The average yield on interest-earning assets increased by 29 basis points to 5.66% for the nine months ended September 30, 2025, compared to 5.37% for the nine months ended September 30, 2024.

Interest expense increased $1.6 million, or 24.7%, to $8.1 million for the three months ended September 30, 2025 from $6.5 million for the three months ended September 30, 2024. Interest expense increased $3.6 million, or 19.4%, to $22.2 million for the nine months ended September 30, 2025 from $18.6 million for the nine months ended September 30, 2024. The average cost of interest-bearing liabilities increased by 16 basis points to 2.51% for the three months ended September 30, 2025, compared to 2.35% for the three months ended September 30, 2024. The average cost of interest-bearing liabilities increased by 17 basis points to 2.40% for the nine months ended September 30, 2025, compared to 2.23% for the nine months ended September 30, 2024. The average cost of interest-bearing liabilities increased for the three and nine months ended September 30, 2025 primarily due to the repricing of certain interest-bearing deposit accounts in response to changes in market interest rates and the higher interest rate environment, as well as a shift in the mix of deposits towards higher cost interest-bearing accounts.

Net interest margin increased 4 basis points to 4.16% for the three months ended September 30, 2025, compared to 4.12% for the three months ended September 30, 2024. Net interest margin increased 15 basis points to 4.10% for the nine months ended September 30, 2025, compared to 3.95% for the nine months ended September 30, 2024.

Asset Quality and Provision for Credit Losses

Non-performing assets were $12.0 million, or 0.53% of total assets, at September 30, 2025, compared to $5.2 million, or 0.27% of total assets, at December 31, 2024. The increase in non-performing assets at September 30, 2025 was primarily due to a $4.7 million commercial real estate loan relationship consisting of four loans secured by multiple office, warehouse and industrial properties being placed on non-accrual status during the nine months ended September 30, 2025.

The allowance for credit losses on loans was $24.6 million at September 30, 2025, compared to $21.8 million at December 31, 2024, representing 1.50% and 1.49% of total loans outstanding, respectively.

Net charge-offs were $4,000 and $89,000 for the three and nine months ended September 30, 2025, respectively, compared to net recoveries of $134,000 and net charge-offs of $15,000 for the three and nine months ended September 30, 2024, respectively. Annualized net charge-offs were 0.00% and 0.01% of average loans for the three and nine months ended September 30, 2025, respectively, compared to annualized net recoveries of 0.04% and net charge-offs of 0.00% of average loans for the three and nine months ended September 30, 2024, respectively.

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The provision for credit losses was $785,000 and $3.1 million for the three and nine months ended September 30, 2025, respectively, as compared to a credit to the provision for credit losses of $870,000 and $40,000 for the three and nine months ended September 30, 2024, respectively. The increase in the provision for credit losses for the three and nine months ended September 30, 2025 was primarily due to growth in the loan portfolio and changes in current economic conditions.

Noninterest Income and Noninterest Expense

Noninterest income of $3.8 million for the three months ended September 30, 2025 decreased $303,000, or 7.4%, as compared to $4.1 million for the three months ended September 30, 2024. Noninterest income of $12.3 million for the nine months ended September 30, 2025 increased $306,000, or 2.5%, as compared to $12.0 million for the nine months ended September 30, 2024. The decrease in noninterest income for the three months ended September 30, 2025 was primarily due to a decrease in other noninterest income and a net gain on available for sale securities during the three months ended September 30, 2024 as compared to no such gain for the three months ended September 30, 2025. The increase in noninterest income for the nine months ended September 30, 2025 was primarily due to an increase in other noninterest income and an increase in insurance and wealth management services income, offset in part by a net gain on equity securities and a net gain on available for sale securities during the nine months ended September 30, 2024 as compared to no such gains for the nine months ended September 30, 2025. The increase in other noninterest income for the nine months ended September 30, 2025 was primarily due to an increase in bank-owned life insurance income as a result of a death benefit. The increase in insurance and wealth management services income for the nine months ended September 30, 2025 was primarily as a result of organic growth and positive market performance related to our wealth management services.

Noninterest expense of $17.6 million for the three months ended September 30, 2025 increased $2.9 million, or 20.0%, as compared to $14.7 million for the three months ended September 30, 2024. Noninterest expense of $46.9 million for the nine months ended September 30, 2025 increased $1.7 million, or 3.8%, as compared to $45.2 million for the nine months ended September 30, 2024. The increase in noninterest expense for the three months ended September 30, 2025 was primarily due to an increase in salaries and employee benefits and an increase in other expenses. The increase in noninterest expense for the nine months ended September 30, 2025 was primarily due to an increase in salaries and employee benefits and an increase in other expenses, offset in part by a decrease in professional fees. Salaries and employee benefits increased due to compensation expense from annual merit increases as well as due to share-based compensation costs recognized during the three and nine months ended September 30, 2025 for the stock awards granted during the three months ended June 30, 2024. Other expenses increased primarily due to litigation-related expense, offset in part by a benefit for the other cost components of the net periodic pension and post-retirement benefits cost during the three and nine months ended September 30, 2025. The decrease in professional fees for the nine months ended September 30, 2025 was primarily due to lower legal fees and expenses.

Income Taxes

Income tax expense decreased $609,000 to $1.3 million for the three months ended September 30, 2025 as compared to $1.9 million for the three months ended September 30, 2024 primarily due to a decrease in income before income taxes. Income tax expense increased $294,000 to $4.6 million for the nine months ended September 30, 2025 as compared to $4.3 million for the nine months ended September 30, 2024 primarily due to an increase in income before income taxes. Our effective tax rate was 22.8% and 21.8% for the three and nine months ended September 30, 2025, respectively, compared to 23.0% and 22.4% for the three and nine months ended September 30, 2024, respectively.

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Balance Sheet Summary

Total assets of $2.24 billion at September 30, 2025 increased $263.6 million, or 13.3%, from $1.98 billion at December 31, 2024.

Net loans receivable of $1.61 billion at September 30, 2025 increased $179.4 million, or 12.5%, from $1.43 billion at December 31, 2024. The increase in net loans receivable was primarily a result of growth in the residential mortgage loan portfolio which increased by $74.1 million. In addition, commercial real estate loans increased by $55.0 million, commercial construction loans increased by $32.5 million, commercial and industrial loans increased by $16.8 million, home equity loans and lines of credit increased by $2.7 million, and consumer loans increased by $1.1 million.

Securities available for sale of $254.5 million at September 30, 2025 decreased $67.0 million, or 20.8%, from $321.5 million at December 31, 2024. The decrease was primarily due to maturities, paydowns and calls of $176.7 million, offset in part by purchases of $102.0 million of securities during the nine months ended September 30, 2025.

Deposits of $1.90 billion at September 30, 2025 increased $308.8 million, or 19.5%, from $1.59 billion at December 31, 2024. By deposit category, non-interest-bearing demand accounts increased by $115.7 million, certificates of deposit increased by $108.0 million, money market accounts increased by $90.9 million, and demand accounts increased by $2.7 million, offset in part by a decrease in savings accounts of $8.5 million. The increase in non-interest-bearing demand accounts was primarily related to growth in municipal deposits due to seasonality and growth in commercial deposits. The increase in certificates of deposit was primarily due to an increase in brokered deposits, and by a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The increase in money market accounts was primarily due to a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The decrease in savings accounts was primarily due to a migration of funds to higher rate interest-bearing accounts.

Shareholders' equity of $314.2 million at September 30, 2025 increased $9.6 million, or 3.2%, from $304.6 million at December 31, 2024 primarily as a result of net income of $16.5 million and an increase in accumulated other comprehensive income of $2.7 million, partially offset by the repurchase of common stock of $10.9 million. Pioneer Bank, National Association has consistently maintained regulatory capital ratios measurably above the federal "well capitalized" standard, including a Tier 1 (leverage) capital to average assets ratio of 11.45% at September 30, 2025.

Stock Repurchase

On May 21, 2024, Pioneer announced that it had adopted a stock repurchase program for up to approximately 5% of its then outstanding common stock, or 1,298,883 shares of its common stock. This is Pioneer's first stock repurchase program since completing its mutual holding company reorganization and related stock offering. Pioneer repurchased 463,126 shares of its common stock during the three months ended September 30, 2025 at an average price of $12.82 per share under this stock repurchase program. As of September 30, 2025, there were 28,333 shares available for repurchase under this program.

About Pioneer

Pioneer is a bank holding company with more than $2 billion in assets. Pioneer provides diversified financial services through its subsidiary, Pioneer Bank, National Association and its subsidiaries, with 22 offices in the Capital Region of New York State, and offers a broad array of banking, insurance, employee benefit and wealth management services to individuals, businesses, and municipalities. For more information on Pioneer, please visit www.pioneerny.com.

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