Pioneer Bancorp(US:PBFS)2023-09-26 20:30Financial Position - As of June 30, 2023, the company had consolidated total assets of $1.9 billion, total deposits of $1.5 billion, and shareholders' equity of $266.7 million[24]. - As of June 30, 2023, total loans receivable amounted to $1,159.9 million, a 15.8% increase from $1,001.6 million in 2022[37]. - Total loans receivable, net, stood at $1,144.2 million, an increase from $982.6 million in 2022[37]. - As of June 30, 2023, the company held $309.8 million in fixed-rate residential mortgage loans and $135.1 million in adjustable-rate loans, totaling $444.9 million in residential mortgage loans[64]. - The total amount of deposits as of June 30, 2023, was $1.54 billion, with an average interest rate of 0.93%, compared to $1.68 billion and 0.09% in 2022[116]. 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 $99,630 in 2023, projected to grow 15.0% through 2028[26]. - The company holds 2.63% of the FDIC insured deposit market share in Albany County and 19.46% in Rensselaer County, indicating significant competition in the market[30]. - The company faces significant competition from larger financial institutions and non-depository financial service providers in both deposits and loans[30]. - The unemployment rates as of June 30, 2023, were 3.0% for Albany County and 2.5% for Saratoga County, compared to the national rate of 3.6%[27]. Loan Portfolio - Commercial real estate loans totaled $424.3 million, representing 36.6% of the total loan portfolio, down from 45.3% in 2022[37]. - Residential mortgages increased to $444.9 million, accounting for 38.3% of the total loan portfolio, up from 27.0% in 2022[37]. - Commercial and industrial loans were $88.4 million, representing 7.6% of the total loan portfolio, down from 10.3% in 2022[37]. - Commercial construction loans reached $92.8 million, or 8.0% of the total loan portfolio, with undrawn amounts totaling $28.9 million[57]. - Multi-family real estate loans totaled $104.4 million, making up 24.6% of the commercial real estate loan portfolio[48]. Asset Quality - The allowance for losses was $22.5 million as of June 30, 2023, slightly down from $22.5 million in 2022[37]. - Total non-performing assets increased to $17.8 million at June 30, 2023, up from $7.0 million in 2022, representing a 153% increase[91]. - Non-accrual loans rose to $14.2 million, compared to $6.4 million in the previous year, marking a 120% increase[91]. - Total classified loans increased to $69.2 million at June 30, 2023, from $53.2 million in 2022, reflecting a 30% rise[95]. - The allowance to non-performing loans ratio decreased to 126.41% in 2023 from 320.85% in 2022[100]. Regulatory Compliance - The company is subject to comprehensive regulation and examination by the NYSDFS and the Federal Reserve Board[20]. - Pioneer Bancorp, MHC is regulated by the NYSDFS and the Federal Reserve Board, ensuring compliance with extensive regulatory requirements[127]. - The Bank must maintain a common equity Tier 1 capital ratio of at least 4.5%, a Tier 1 capital ratio of 6%, and a total capital ratio of 8% to meet capital requirements[141]. - As of June 30, 2023, the Bank exceeded all its capital requirements, classifying it as "well capitalized" under federal regulations[145][153]. - The FDIC has the authority to impose civil money penalties and issue cease and desist orders for violations of laws and regulations[137]. Strategic Initiatives - The company plans to expand the range of products and services offered to remain competitive in the market area[28]. - The company has a strategic partnership with Homestead Funding Corp. for residential mortgage loan originations, focusing on commercial real estate and small-to-medium sized business loans[34]. - The company aims to increase commercial transactional deposit accounts through its commercial lending strategy targeting borrowers with loan balances between $500,000 to $10.0 million[35]. - The company maintains a diversified investment portfolio, including U.S. Treasury obligations and municipal securities, with a focus on safety and liquidity[104]. Employment and Workforce - As of June 30, 2023, the company employed 243 full-time and 36 part-time employees, indicating stable workforce management[124]. Taxation and Financial Reporting - The statutory tax rate for New York State business income is currently 6.5% if income is less than $5.0 million, or 7.25% if it exceeds $5.0 million[197]. - The Company is subject to federal income taxation in the same general manner as other corporations[192]. - The Company has policies and procedures designed to comply with the Sarbanes-Oxley Act of 2002, aimed at improving corporate responsibility and accuracy of disclosures[188].