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Pioneer Bancorp, Inc./MD (PBFS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered solid core performance: net income $5.8M and diluted EPS $0.23, up vs $4.7M and $0.19 YoY; net interest income rose 10.1% to $19.1M and NIM expanded 16 bps to 4.12% .
  • Balance sheet growth was strong: loans +3.7% q/q to $1.49B and deposits +8.5% q/q to $1.72B, with diversified mix (47% retail/20% commercial/33% municipal) .
  • Asset quality showed mixed signals: NPAs rose to $10.7M (0.52% of assets) q/q due to one $4.7M CRE relationship moving to non-accrual; provision increased to $0.8M vs $0.08M YoY .
  • Operating discipline improved: noninterest expense fell 5.4% YoY to $14.6M and efficiency ratio improved to 63.97% vs 71.55% YoY .
  • No formal guidance or earnings call transcript found; key stock narrative likely balances NIM expansion and deposit inflows vs the uptick in NPAs .

What Went Well and What Went Wrong

What Went Well

  • Net interest income up 10.1% YoY to $19.1M, driven by a 32 bp lift in average yield on interest-earning assets and higher average balances; NIM rose to 4.12% (+16 bps YoY) .
  • Deposits +$135.5M q/q (+8.5%) with healthy diversification (retail 47%, commercial 20%, municipal 33%) and estimated uninsured deposits at 15.7% of total—supportive of funding stability .
  • Management emphasized continued progress in diversifying revenue (“13% of revenue generated by noninterest income… executing on ‘More Than a Bank’”), underscoring mix-shift strategy and margin resilience .

What Went Wrong

  • Non-performing assets rose to $10.7M (0.52% of assets) from $5.2M q/q, largely from a $4.7M CRE relationship placed on non-accrual; provision increased to $0.8M (vs $0.08M YoY) on economic conditions and loan growth .
  • Noninterest income fell 12.0% YoY to $3.7M due to prior-year equity securities gains ($386k in Q1’24) not repeating .
  • Salaries/benefits increased $907k YoY (merit increases and share-based comp from grants in Q2’24), partially offsetting lower professional fees (-$1.2M) .

Financial Results

Core P&L and Margins (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Net Interest Income ($USD Millions)$17.897 $17.574 $19.083
Noninterest Income ($USD Millions)$4.118 $4.691 $3.725
Operating Revenue ($USD Millions) (NII + Noninterest)$22.015 $22.265 $22.808
Diluted EPS ($USD)$0.25 $0.13 $0.23
Net Interest Margin (%)4.12% 3.91% 4.12%
Efficiency Ratio (%)66.72% 76.17% 63.97%
Return on Avg Assets (%)1.32% 0.67% 1.14%
Return on Avg Equity (%)8.37% 4.29% 7.58%

Note: Operating Revenue is calculated as Net Interest Income + Noninterest Income from company-reported figures .

Balance Sheet (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Total Assets ($USD Billions)$2.015 $1.980 $2.069
Net Loans Receivable ($USD Billions)$1.400 $1.435 $1.487
Securities AFS ($USD Millions)$262.5 $321.5 $311.0
Deposits ($USD Billions)$1.675 $1.586 $1.722
Shareholders’ Equity ($USD Millions)$303.8 $304.6 $310.7

Asset Quality KPIs (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
NPAs / Total Assets (%)0.27% 0.27% 0.52%
NPLs / Total Loans (%)0.38% 0.36% 0.71%
ACL / Total Loans (%)1.49% 1.49% 1.51%
ACL / NPLs (%)395.79% 414.60% 213.26%
Net (Recoveries)/Charge-offs to Avg Loans (Annualized) (%)(0.04%) 0.04% 0.00%
Provision for Credit Losses ($USD Millions)(0.870) 1.090 0.800

Deposit Mix by Customer Segment (oldest → newest)

SegmentQ3 2024Q4 2024Q1 2025
Retail47% 53% 47%
Commercial19% 19% 20%
Municipal34% 28% 33%
Est. Uninsured Deposits (% of Total)14.9% 12.9% 15.7%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q1 2025None provided None provided Maintained “no formal guidance”
Margins (NIM)FY/Q1 2025None provided None provided Maintained “no formal guidance”
OpExFY/Q1 2025None provided None provided Maintained “no formal guidance”
Capital/DividendsFY/Q1 2025Repurchase program ongoing Repurchase program ongoing; 130,813 shares repurchased in Q1 at $11.87 avg Maintained program

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript found; trend tracking based on earnings releases.

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Net interest marginQ3: NIM 4.12% (+36 bps YoY); funding cost up with deposit mix shift . Q4: NIM 3.91%, yield +52 bps YoY vs cost +42 bps .NIM 4.12%, yield +32 bps YoY vs cost +19 bps .Stabilizing at ~4.1%; supportive asset yields.
Deposit growth/mixQ3: +8.1% q/q; seasonal municipal inflows, migration to money market . Q4: +2.3% h/h; continued money market/CD mix shift .+8.5% q/q; diversified base (47/20/33) and seasonality effects .Strong inflows; mix optimized toward higher-rate accounts.
Asset qualityQ3: NPAs down vs Jun; provision credit from improved conditions/net recoveries . Q4: NPAs 0.27%; low net charge-offs .NPAs up to 0.52% from a $4.7M CRE relationship; provision up to $0.8M .Mixed—isolated CRE stress; overall losses still minimal.
Noninterest incomeQ3: +15.2% YoY (insurance/WM growth; sec gains) . Q4: flat YoY; FY transition boosted other income; prior year had settlement/loss on AFS .-12.0% YoY; lap of prior-year equity gains; WM/insurance still strategic .Volatile QoQ; underlying fee businesses growing over time.
Expenses/efficiencyQ3: modest OpEx growth; share-based comp up . Q4: OpEx up; branch impairment ($466k) and property sale loss ($730k) .OpEx down 5.4% YoY; efficiency ratio improved to 63.97% .Improving, aided by lower professional fees.
Capital actionsQ3: Repurchased 114,389 shares (avg $10.46) . Q4: Repurchased 287,389 shares; 905,108 remaining at period end .Repurchased 130,813 shares; 774,295 remaining .Ongoing buybacks support per-share metrics.
Regulatory/legalQ3: OCC approved merger; municipal deposit services consolidated . Q4: No new disclosures .No new disclosures; capital ratios well above “well-capitalized” .Stable regulatory posture.

Management Commentary

  • “We experienced positive momentum for the quarter with growth in net interest income and margin, reflecting an increased loan portfolio, growth in our diversified deposit base, and prudently managed funding costs… 13% of revenue generated by noninterest income… executing on our strategy of being ‘More Than a Bank’.” — Thomas Amell, President & CEO .
  • “We are pleased to report strong results… record quarterly net income of $6.3 million… continued to grow loans and our diversified deposit base while improving our already solid net interest margin.” — Thomas Amell, President & CEO (Q3 2024) .
  • “We experienced positive momentum… growth in net interest income as we continued to grow loans and our diversified deposit base while prudently managing funding costs… progress with diversifying products and services…” — Thomas Amell, President & CEO (Q4 2024) .

Q&A Highlights

No Q1 2025 earnings call transcript identified; therefore, no Q&A highlights or guidance clarifications available for the period [ListDocuments result: none].

Estimates Context

  • Wall Street consensus EPS and revenue estimates for Q1 2025 were unavailable in S&P Global for PBFS; as a result, we cannot assess beats/misses versus consensus for this quarter.*
  • Actual revenue (S&P Global definition) recorded: $22.008M for Q1 2025; consensus mean unavailable.*
    *Values retrieved from S&P Global.

Key Takeaways for Investors

  • Core spread income is resilient: NIM at 4.12% with asset yields +32 bps YoY and modest liability cost pressures (+19 bps), supporting earnings durability .
  • Funding momentum continues: deposits +8.5% q/q to $1.72B with diversified mix and manageable estimated uninsured deposits (15.7%)—a positive for liquidity and stability .
  • Watch asset quality: NPAs increased q/q due to a specific $4.7M CRE relationship; while net charge-offs remain de minimis, provision normalization bears monitoring as credit cycle evolves .
  • Operating efficiency improved: efficiency ratio 63.97% and reduced professional fees drove OpEx down 5.4% YoY; some salary pressure persists (merit and share-based comp) .
  • Capital deployment via buybacks continues and may support EPS and ROE if fundamentals hold; 130,813 shares repurchased in Q1 at $11.87 average price .
  • Near-term trading lens: absent a call/explicit guidance, stock moves likely follow the tug-of-war between strong deposit/NIM trends and the NPA uptick; any updates on the CRE relationship will be catalytic .
  • Medium-term thesis: maintaining deposit diversification, fee-income expansion, and disciplined costs—alongside vigilant credit risk management—should underpin ROA/ROE sustainability through rate-cycle transitions .