Pioneer Bancorp(US:PBFS)2024-02-13 21:08Financial Performance - Net income for the three months ended December 31, 2023, was $3,192,000, a decrease of 48.3% compared to $6,183,000 for the same period in 2022[11]. - Net income for the six months ended December 31, 2023, was $6,611,000, compared to $11,417,000 for the same period in 2022, representing a decrease of approximately 42.5%[18]. - Comprehensive income for the three months ended December 31, 2023, was $11,913,000, compared to $7,882,000 in the same period of 2022, indicating an increase of 50.6%[13]. - Basic and diluted earnings per common share for the three months ended December 31, 2023, were both $0.13, down from $0.25 in the same period of 2022, representing a decline of 48%[177]. Asset and Loan Growth - Net loans receivable increased to $1,263,787,000 as of December 31, 2023, compared to $1,144,169,000 on June 30, 2023, reflecting a growth of approximately 10.4%[9]. - The net increase in loans receivable for the six months ended December 31, 2023, was $(119,033,000), compared to $(65,365,000) for the same period in 2022, showing a significant increase in loan activity[18]. - The total recorded investment in loans was $1,285,149 thousand, with $8,225 thousand classified as past due[76]. Income and Expenses - Total interest and dividend income for the three months ended December 31, 2023, was $21,486,000, up 19.0% from $17,979,000 in the same period of 2022[11]. - Noninterest income increased to $4,835,000 for the three months ended December 31, 2023, compared to $3,946,000 in the same period of 2022, representing a growth of 22.5%[11]. - Total noninterest expense rose to $15,795,000 for the three months ended December 31, 2023, compared to $13,506,000 in the same period of 2022, an increase of 16.9%[11]. Credit Losses and Provisions - The provision for credit losses was $1,120,000 for the three months ended December 31, 2023, compared to a reversal of $400,000 in the same period of 2022[11]. - The total allowance for credit losses increased to $23,043 million as of December 31, 2023, from $22,469 million as of June 30, 2023, representing a growth of approximately 2.55%[68]. - The allowance for credit losses on loans is estimated using a PD/LGD modeling methodology, with segment-specific regression models applied quarterly[37]. Deposits and Equity - Total deposits decreased to $1,522,095,000 as of December 31, 2023, from $1,541,851,000 on June 30, 2023, a decline of approximately 1.3%[9]. - Total shareholders' equity increased from $242,627,000 as of July 1, 2022, to $283,796,000 as of December 31, 2023, reflecting an increase of about 17%[15]. Securities and Fair Value - The amortized cost of available for sale securities was $325.748 million with an estimated fair value of $320.397 million as of December 31, 2023, reflecting unrealized losses of $6.042 million[50]. - The fair value of available for sale securities decreased to $320,397,000 as of December 31, 2023, from $431,667,000 as of June 30, 2023, representing a decline of approximately 25.8%[154]. - The estimated fair value of derivative liabilities as of December 31, 2023, was $14,501,000, unchanged from the previous reporting period[154]. Legal and Regulatory Matters - The New York State Department of Financial Services (NYSDFS) is investigating the Bank's practices, which could lead to potential monetary penalties of up to $30 million[139]. - The Bank is facing a putative class action complaint regarding alleged overdraft fees, with claims for breach of contract and unjust enrichment filed by Sidra Riggins on December 6, 2023[137]. - The Company continues to investigate claims related to the Mann Entities, which could result in significant legal and regulatory costs[120]. Operational Changes - The company filed an application on December 29, 2023, to convert from a New York chartered stock savings bank to a national bank, which would change its regulatory oversight[195]. - The company completed the acquisition of certain assets of Hudson Financial LLC for a total of $2.0 million in cash and $1.5 million in contingent consideration, enhancing its wealth management services[48].