Pioneer Bancorp(US:PBFS)2023-11-14 22:15Financial Performance - Net income decreased to $3,419 thousand for the three months ended September 30, 2023, down 34.7% from $5,234 thousand year-over-year[10]. - Net income for the three months ended September 30, 2023, was $3,419,000, a decrease of 34.6% compared to $5,234,000 in the same period of 2022[16]. - Comprehensive income for the quarter was $4,447 thousand, compared to a loss of $1,040 thousand in the same period last year[11]. - Basic earnings per common share decreased to $0.14 in 2023 from $0.21 in 2022, a decline of 33.33%[169]. - Total non-interest income for the three months ended September 30, 2023, was $3,574,000, a decrease of 6.05% from $3,805,000 in 2022[161]. - Non-interest income in scope increased to $3,479,000 in 2023 from $3,279,000 in 2022, reflecting a growth of 6.08%[161]. Asset and Liability Management - Total assets increased to $1,963,407 thousand as of September 30, 2023, up from $1,856,191 thousand at June 30, 2023, representing a growth of 5.8%[9]. - Total deposits grew to $1,638,835 thousand, reflecting a 6.3% increase from $1,541,851 thousand[9]. - Cash and cash equivalents at the end of the period totaled $216,544,000, down 46.3% from $402,869,000 at the end of Q3 2022[16]. - The total liabilities were reported at $1,581,921 thousand, while total shareholders' equity was $269,775 thousand, indicating a solid capital structure[204]. - The company reported an increase in other liabilities by $7,920,000 compared to $4,624,000 in the previous year, indicating a rise in financial obligations[16]. Loan and Credit Quality - Net loans receivable rose to $1,203,504 thousand, an increase of 5.2% from $1,144,169 thousand in the previous quarter[9]. - The allowance for credit losses decreased to $21,069 thousand from $22,469 thousand, indicating improved credit quality[9]. - The provision for credit losses increased to $750 thousand, compared to $120 thousand in the same quarter of the previous year[10]. - The total allowance for credit losses, including off-balance sheet credit exposures, was $22,527 as of September 30, 2023[62]. - As of September 30, 2023, nonaccrual loans totaled $14,406, with $7,830 in real estate and $4,426 in residential mortgages[71]. Investment and Securities - As of September 30, 2023, the amortized cost of available for sale securities was $429.434 million, with an estimated fair value of $412.275 million, reflecting unrealized losses of $17.468 million[48]. - The amortized cost of held to maturity securities was $23.908 million, with an estimated fair value of $21.903 million, indicating unrealized losses of $2.005 million as of September 30, 2023[49]. - The fair value of U.S. Government and agency obligations increased to $383,814,000 as of September 30, 2023, up from $377,729,000 as of June 30, 2023, reflecting an increase of about 1.4%[142]. - The estimated fair value of net loans receivable was $1,135,940,000 as of September 30, 2023, compared to $1,095,366,000 as of June 30, 2023, indicating an increase of approximately 3.7%[148]. Legal and Regulatory Matters - The company is involved in various legal proceedings that could result in significant losses, but the outcomes are uncertain and difficult to predict[195]. - The estimated range of possible losses related to legal proceedings is $0 to $54.4 million as of September 30, 2023, indicating potential financial exposure[107]. - The U.S. Department of Justice filed a civil complaint against the Company and the Bank, seeking the return of approximately $7.3 million in payroll taxes wrongfully set off by the Bank[123]. - Berkshire Bank seeks to recover $15.6 million in damages from the Bank due to alleged breaches of loan participation agreements and fraudulent activities[121]. Operational Efficiency - Non-interest income out of scope decreased significantly to $95,000 in 2023 from $526,000 in 2022, a decline of 81.94%[161]. - The company recognized total compensation expense related to the Employee Stock Ownership Plan (ESOP) of $117,000 for the three months ended September 30, 2023, compared to $122,000 for the same period in 2022[96]. - The company recorded a total lease expense of $243,000 for the three months ended September 30, 2023, compared to $234,000 in 2022, reflecting a 3.84% increase[167]. Risk Management - The company is focusing on enhancing its loan portfolio while managing its securities to optimize interest income[208]. - The company’s management does not intend to sell the high credit quality securities, which are expected to recover in value as they approach maturity[52]. - The company applies a systematic approach to revenue recognition, ensuring compliance with performance obligations and transaction pricing[158].