Pioneer Bancorp(PBFS) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2025, was $5,763,000, compared to $4,719,000 for the same period in 2024, reflecting a year-over-year increase of 22.1%[12] - The company reported a basic net earnings per common share of $0.23 for Q1 2025, up from $0.19 in Q1 2024, representing a growth of 21.1%[12] - Net income applicable to common stock for the three months ended March 31, 2025, was $5,763,000, compared to $4,719,000 for the same period in 2024, reflecting an increase of about 22%[133] - Net interest income for the three months ended March 31, 2025, was $19.1 million, compared to $17.3 million for the same period in 2024, reflecting an increase of 10.5%[163] - The net interest margin improved to 4.12% for the three months ended March 31, 2025, compared to 3.96% for the same period in 2024[163] - Total shareholders' equity increased by $6.1 million, or 2.0%, to $310.7 million, mainly due to net income and an increase in accumulated other comprehensive income[183] Asset and Deposit Growth - Total assets increased to $2,068,985,000 as of March 31, 2025, up from $1,979,730,000 at December 31, 2024, representing a growth of 4.5%[10] - Total deposits increased to $1,721,647,000 as of March 31, 2025, compared to $1,586,183,000 at December 31, 2024, an increase of 8.5%[10] - Cash and cash equivalents at the end of Q1 2025 were $139,626,000, compared to $96,521,000 at the end of Q4 2024, an increase of 44.6%[17] - Total gross unrealized losses on available for sale securities were $3.4 million as of December 31, 2024, primarily due to changes in interest rates rather than credit quality[36] Loan and Credit Quality - As of March 31, 2025, net loans receivable totaled $1,487.2 million, an increase from $1,434.6 million as of December 31, 2024, representing a growth of 3.7%[43] - The allowance for credit losses on loans increased to $22.8 million as of March 31, 2025, up from $21.8 million at the end of 2024, reflecting a rise of 4.8%[46] - Total non-accrual loans amounted to $10,695,000, with $5,864,000 in real estate and $3,867,000 in residential mortgages[51] - Total past due loans over 90 days still on accrual were $9,734,000, with $5,878,000 in commercial real estate and $2,081,000 in residential mortgages[51] - The total classified loans increased to $28.8 million at March 31, 2025, from $24.7 million at December 31, 2024, with substandard loans rising by $2.9 million[205] Noninterest Income and Expenses - Noninterest income decreased to $3,725,000 in Q1 2025 from $4,234,000 in Q1 2024, a decline of 11.9%[12] - Total noninterest income in scope for the three months ended March 31, 2025, was $3,651,000, slightly up from $3,638,000 in 2024, showing a marginal increase of about 0.4%[132] - Non-interest expense decreased to $14,591,000 in Q1 2025 from $15,429,000 in Q1 2024, a reduction of 5.4%[12] - Non-interest income decreased by $509,000, or 12.0%, to $3.7 million, primarily due to a lack of net gains on equity securities compared to the previous year[196] Legal and Regulatory Matters - The Company has a potential exposure of $54.4 million related to legal matters as of March 31, 2025, which is in addition to any accrued liabilities[84] - The Company and the Bank are vigorously defending against multiple legal claims and proceedings, which could have a material adverse effect on their business and financial condition[86] - The New York State Department of Financial Services conducted investigations into the Bank's practices associated with the Mann Parties, leading to the Bank's conversion to a national bank on April 1, 2024[105] Strategic Focus and Future Outlook - The company aims to grow through deepening client relationships and diversifying its products and services, focusing on lower-cost core deposits and selective acquisitions[151] - The company’s strategy emphasizes delivering long-term value to stockholders while expanding product and service offerings to meet evolving client needs[152] - The Company is evaluating the impact of new accounting standards on its consolidated financial statements, effective for fiscal years beginning after December 15, 2024[26][28]