Pioneer Bancorp(US:PBFS)2021-09-28 20:36Financial Position - As of June 30, 2021, the company had consolidated total assets of $1.8 billion, total deposits of $1.5 billion, and shareholders' equity of $237.8 million[24]. - As of June 30, 2021, the total loan receivable was $1,103.5 million, a decrease from $1,170.6 million in 2020, representing a decline of 5.7%[36]. - As of June 30, 2021, the total deposits amounted to $1.53 billion, with a weighted average interest rate of 0.10%[124]. - The company held $41.8 million in certificates of deposit greater than or equal to $100,000 as of June 30, 2021[125]. - The company had $420.6 million in assets at Pioneer Commercial Bank, primarily consisting of cash and municipal obligations[129]. Market and Competition - The primary market area has a total population of approximately 1.0 million, with Saratoga County having the highest median household income estimated at $91,331 in 2021, projected to grow nearly 11.3% through 2026[26]. - The company holds 3.34% of the FDIC insured deposit market share in Albany County and 18.11% in Rensselaer County, with significant competition from larger financial institutions[29]. - The company plans to expand its range of products and services to remain competitive in its market area[28]. Loan Portfolio - The company focuses on commercial lending for small-to-medium sized businesses, targeting loan balances typically between $2.5 million to $10.0 million[34]. - Commercial real estate loans amounted to $490.1 million, accounting for 44.5% of the total loan portfolio, up from 38.5% in 2020[41]. - The commercial and industrial loans totaled $167.9 million, representing 15.2% of the total loan portfolio, down from 20.3% in 2020[50]. - One-to four-family residential real estate loans were $279.5 million, which is 25.3% of the total loan portfolio, slightly up from 23.9% in 2020[36]. - Home equity loans and lines of credit stood at $75.5 million, making up 6.8% of the total loan portfolio, a decrease from 6.9% in 2020[36]. - Consumer loans were reported at $25.6 million, or 2.3% of the total loan portfolio[69]. Loan Performance and Risk - The allowance for losses was $23.3 million, compared to $22.9 million in 2020, indicating a slight increase in risk provisions[36]. - The total non-performing assets amounted to $22.3 million as of June 30, 2021, compared to $13.5 million in 2020[88]. - The total non-performing loans to total loans ratio was 1.99% as of June 30, 2021, up from 1.13% in 2020[88]. - Non-accrual loans increased to $18.8 million at June 30, 2021, from $11.7 million in 2020[88]. - The company recognized $11,000 in interest income from non-accruing loans for the year ended June 30, 2021, compared to a potential gross interest income of $759,000 if those loans had been current[88]. - The company accommodated a significant amount of loan modifications in response to COVID-19, which are not classified as troubled debt restructurings[90]. - The company anticipates potential increases in delinquent and nonperforming loans due to ongoing COVID-19 related financial hardships among borrowers[96]. Regulatory Environment - The company is subject to comprehensive regulation and examination by the Federal Reserve Board and the New York State Department of Financial Services[18]. - Pioneer Bank is regulated by the NYSDFS, which requires regular examinations and approvals for various activities, including branch establishment and mergers[138]. - Pioneer Bank is subject to extensive regulation and supervision by the FDIC, which includes filing reports and obtaining approvals for certain transactions[148]. - Federal regulations require prompt corrective action for banks not meeting minimum capital requirements, categorizing them into five capital categories[162]. Capital and Liquidity - Pioneer Bank's capital requirements include maintaining a common equity Tier 1 capital ratio of at least 4.5%, Tier 1 capital of 6%, and total capital of 8% to risk-weighted assets[151]. - As of June 30, 2021, Pioneer Bank exceeded all capital requirements, indicating a strong capital position[157]. - The community bank leverage ratio was set at 8% for 2020, increasing to 8.5% in 2021, with a return to 9% effective January 1, 2022[156]. - Pioneer Bank is required to maintain sufficient liquidity to ensure safe and sound banking practices[175]. Investment Strategy - The amortized cost of securities available for sale was $264,379,000, with an estimated fair value of $264,602,000 as of June 30, 2021, compared to $75,253,000 (fair value $75,768,000) in 2020[115]. - The company does not engage in high-risk mortgage derivative products or corporate junk bonds, focusing instead on safer investment options[110]. - The company's investment strategy emphasizes safety, liquidity, and potential returns, reviewed annually by the board of directors[109]. Employment and Operations - The company had 233 full-time employees and 29 part-time employees as of June 30, 2021[132]. - The company’s deposit pricing strategy aims to offer competitive rates without being the highest in the market[122]. - The company has developed a program for the retention and management of municipal deposits, which are considered a low-cost and stable source of funds[121].