Pioneer Bancorp, Inc./MD
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
PBFS$18.35+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001104659-26-093436
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001104659-26-123881
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 138 current paragraphs.
67 unchanged; 60 reworded; 8 added; 2 removed; 3 previous and 3 current paragraphs rearranged.
Tables are not compared: 44 previous and 45 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Recent Developments
Current report
Resolution of Pending Litigation:
Current report
In October 2026, the Company and its subsidiary, the Bank, reached agreements in principle with Southwestern, Granite Solutions and NatPay to resolve all claims asserted by Southwestern, Granite Solutions and NatPay against the Company and the Bank in the litigation pending in the United States District Court for the Northern District of New York. This litigation has been previously disclosed in the Company’s filings with the SEC. The resolutions remain subject to the execution of definitive settlement agreements and the filing of stipulations of dismissal of the actions in their entirety with prejudice.
Current report
Targeted Lending Co., LLC
Current report
Interest income on loans increased $6.1 million, or 25.8%, to $30.0 million for the three months ended September 30, 2026 from $23.9 million for the three months ended September 30, 2025. Interest income on loans increased due to a
Current report
for the three months ended September 30, 2026 from $668.2 million for the three months ended September 30, 2025. Net interest rate spread increased 21 basis points to 3.56% for the three months ended September 30, 2026 from 3.35% for the three months ended September 30, 2025.
Current report
Income Tax Expense. Income tax benefit was $18,000 for the three months ended September 30, 2026, a decrease of $1.3 million, compared to income tax expense of $1.3 million for the three months ended September 30, 2025. The decrease in income tax expense wasprimarily due to a decrease in income before income taxes.
Current report
for the nine months ended September 30, 2026 from $687.8 million for the nine months ended September 30, 2025. Net interest rate spread increased 19 basis points to 3.45% for the nine months ended September 30, 2026 from 3.26% for the nine months ended September 30, 2025.
Removed paragraphs (2)
Previous report
Interest income on loans increased $8.7 million, or 20.1%, to $52.2 million for the six months ended June 30, 2026 from $43.5 million for the six months ended June 30, 2025. Interest income on loans increased due to a $257.3 million increase in the average balance of loans to $1.75 billion for the six months ended June 30, 2026 from $1.49 billion for the six months ended June 30, 2025 and a 14 basis points increase in the average yield on loans to 6.11% for the six months
Previous report
Provision for Credit Losses. The provision for credit losses was $2.1 million for the six months ended June 30, 2026, as compared to a provision for credit losses of $2.4 million for the six months ended June 30, 2025. The decrease in
Reworded paragraphs (60)
Previous wording
portfolio, as well as expected losses on commitments to grant loans that are expected to be advanced at the statements of condition date. Loans are charged against the allowance when management believes that the collectability of the principal loan amount is not probable. Recoveries on loans previously charged-off, if any, are credited to the allowance for credit losses when realized.
Current wording
Provision for Credit Losses. We charge provisions for credit losses to operations in order to maintain our allowance for credit losses on loans, securities held to maturity and unfunded commitments at a level that is considered reasonable and necessary to absorb expected credit losses inherent in the loan portfolio and securities held to maturity portfolio, as well as expected losses on commitments to grant loans that are expected to be advanced at the statements of condition date. Loans are charged against the allowance when management believes that the collectability of the principal loan amount is not probable. Recoveries on loans previously charged-off, if any, are credited to the allowance for credit losses when realized.
Previous wording
Non-Interest Expense. Our non-interest expense consist of salaries and employee benefits, net occupancy and equipment, data processing, advertising and marketing, insurance premiums, federal deposit insurance premiums, professional fees, and other general and administrative expenses.
Current wording
Non-Interest Expense. Our non-interest expense consist of salaries and employee benefits, net occupancy and equipment, data processing, advertising and marketing, insurance premiums, federal deposit insurance premiums, professional fees, litigation-related expense and other general and administrative expenses.
Previous wording
Other general and administrative expenses include expenses for office supplies, postage, telephone, insurance, litigation-related expense, which includes expenses related to legal proceedings, and other miscellaneous operating expenses.
Current wording
Other general and administrative expenses include expenses for office supplies, postage, telephone, and other miscellaneous operating expenses.
Previous wording
Income Tax Expense. Our income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between the carrying amounts and the tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amounts expected to be realize.
Current wording
Income Tax Expense. Our income tax expense (benefit) is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between the carrying amounts and the tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amounts expected to be realize.
Previous wording
As we continue to execute on our business strategy, on April 24, 2026 we completed the acquisition of 100% of the membership interests of Targeted Lending, an independent equipment financing company with approximately $120 million of loans on its balance sheet.
Current wording
As we continue to execute on our business strategy, on April 24, 2026 we completed the acquisition of 100% of the membership interests of Targeted Lending Co., LLC (“Targeted Lending”), an independent equipment financing company with approximately $120 million of loans on its balance sheet.
Previous wording
Targeted Lending, as a subsidiary of Pioneer Bank, National Association, will operate as the newly formed Specialty Financing division, expanding our commercial lending capabilities and extending our reach into nationwide equipment finance markets. Targeted Lending through its originator-centric equipment finance platform provides financing solutions for essential, income-producing equipment, offering loans to small and mid-sized businesses across diverse industries.
Current wording
Targeted Lending, as a subsidiary of the Bank operates as the newly formed Specialty Financing division, expanding our commercial lending capabilities and extending our reach into nationwide equipment finance markets. Targeted Lending through its originator-centric equipment finance platform provides financing solutions for essential, income-producing equipment, offering loans to small and mid-sized businesses across diverse industries.
Previous wording
Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain, including making significant estimates of current credit risks and trends using existing quantitative and qualitative information, and reasonable and supportable forecasts of future economic conditions, which may undergo frequent and material changes. Subsequent evaluations of the then-existing loan portfolios, in light of changes in economic conditions, new information regarding existing loans and other factors, may result in significant changes in the allowance for credit losses in those future periods. For example, changes to the FOMC’s forecasted civilian unemployment rate and year-over-year U.S. GDP growth could have a material impact on the model’s estimation of the allowance for credit losses on loans. An immediate increase of 100 basis points in the FOMC’s projected rate of civilian unemployment and a decrease of 100 basis points in the FOMC’s projected rate of U.S. GDP growth would increase the model’s total calculated
Current wording
Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain, including making significant estimates of current credit risks and trends using existing quantitative and qualitative information, and reasonable and supportable forecasts of future economic conditions, which may undergo frequent and material changes. Subsequent evaluations of the then-existing loan portfolios, in light of changes in economic
Previous wording
allowance for credit losses on loans by $1.7 million, or 6.1%, as of June 30, 2026 assuming qualitative adjustments are kept at current levels. While management’s current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Additionally, changes in those factors and inputs may not occur at the same rate and inputs may be directionally inconsistent, such that improvements in one factor may offset deterioration in others. Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings.
Current wording
conditions, new information regarding existing loans and other factors, may result in significant changes in the allowance for credit losses in those future periods. For example, changes to the FOMC’s forecasted civilian unemployment rate and year-over-year U.S. GDP growth could have a material impact on the model’s estimation of the allowance for credit losses on loans. An immediate increase of 100 basis points in the FOMC’s projected rate of civilian unemployment and a decrease of 100 basis points in the FOMC’s projected rate of U.S. GDP growth would increase the model’s total calculated allowance for credit losses on loans by $2.0 million, or 6.9%, as of September 30, 2026 assuming qualitative adjustments are kept at current levels. While management’s current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Additionally, changes in those factors and inputs may not occur at the same rate and inputs may be directionally inconsistent, such that improvements in one factor may offset deterioration in others. Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings.
Previous wording
Total Assets. Total assets of $2.36 billion at June 30, 2026 increased $213.0 million, or 9.9%, from $2.15 billion at December 31, 2025. The increase was due primarily to an increase of $224.6 million, or 13.6%, in net loans receivable and an increase of $22.0 million, or 100.0%, in trading securities, offset in part by a decrease of $39.1 million, or 29.3% in cash and cash equivalents and a decrease of $19.5 million, or 8.9%, in securities available for sale.
Current wording
Total Assets. Total assets of $2.60 billion at September 30, 2026 increased $448.1 million, or 20.8%, from $2.15 billion at December 31, 2025. The increase was due primarily to an increase of $290.3 million, or 17.6%, in net loans receivable and an increase of $102.2 million, or 76.4%, in cash and cash equivalents, and an increase of $19.8 million, or 100%, in trading securities.
Previous wording
Cash and Cash Equivalents. Total cash and cash equivalents of $94.6 million at June 30, 2026, decreased $39.1 million, or 29.3%, from $133.7 million at December 31, 2025.
Current wording
Cash and Cash Equivalents. Total cash and cash equivalents of $235.9 million at September 30, 2026 increased $102.2 million, or 76.4%, from $133.7 million at December 31, 2025.
Previous wording
Securities Available for Sale. Total securities available for sale of $200.9 million at June 30, 2026 decreased $19.5 million, or 8.9%, from $220.4 million at December 31, 2025. The decrease was primarily due to maturities, paydowns and calls of $45.8 million, offset in part by purchases of $28.0 million of securities during the six months ended June 30, 2026.
Current wording
Securities Available for Sale. Total securities available for sale of $215.3 million at September 30, 2026 decreased $5.1 million, or 2.3%, from $220.4 million at December 31, 2025. The decrease was primarily due to maturities, paydowns and calls of $54.6 million and a decrease in market value of securities of $9.5 million, offset in part by purchases of $60.6 million of securities during the nine months ended September 30, 2026.
Previous wording
Securities Held to Maturity. Total securities held to maturity of $44.8 million at June 30, 2026 increased $3.3 million, or 7.8%, from $41.5 million at December 31, 2025. The increase was primarily due to purchases of $3.7 million during the six months ended June 30, 2026.
Current wording
Securities Held to Maturity. Total securities held to maturity of $45.8 million at September 30, 2026 increased $4.3 million, or 10.3%, from $41.5 million at December 31, 2025. The increase was primarily due to purchases of $7.6 million, offset in part by maturities and paydowns of $3.3 million during the nine months ended September 30, 2026.
Previous wording
Trading Securities. Total trading securities was $22.0 million at June 30, 2026 compared to none at December 31, 2025. The increase in trading securities was a result of the commencement of operations of our broker-dealer subsidiary, Pioneer Capital Markets, Inc. in January 2026.
Current wording
Trading Securities. Total trading securities was $19.8 million at September 30, 2026 compared to none at December 31, 2025. The increase in trading securities was a result of the commencement of operations of our broker-dealer subsidiary, Pioneer Capital Markets, Inc. in January 2026.
Previous wording
Net Loans Receivable. Net loans receivable of $1.87 billion at June 30, 2026 increased $224.6 million, or 13.6%, from $1.65 billion at December 31, 2025. The increase in net loans receivable was primarily a result of growth in the commercial and industrial loan portfolio which increased by $147.4 million, or 118.0%, to $272.3 million at June 30, 2026 from $124.9 million at December 31, 2025. The residential mortgage loan portfolio increased by $46.2 million, or 5.8%,
Current wording
Net Loans Receivable. Net loans receivable of $1.94 billion at September 30, 2026 increased $290.3 million, or 17.6%, from $1.65 billion at December 31, 2025. The increase in net loans receivable was primarily a result of growth in the commercial and industrial loan portfolio which increased by $161.8 million, or 129.5%, to $286.7 million at September 30, 2026 from $124.9 million at December 31, 2025. The commercial construction loan portfolio increased by $59.9
Previous wording
to $839.9 million at June 30, 2026 from $793.7 million at December 31, 2025 and the commercial construction loan portfolio increased by $39.9 million, or 23.5%, to $209.6 million at June 30, 2026 from $169.7 million at December 31, 2025, offset in part by a decrease in commercial real estate loans by $5.0 million, or 1.1%, to $461.4 million at June 30, 2026 from $466.4 million at December 31, 2025.
Current wording
million, or 35.3%, to $229.6 million at September 30, 2026 from $169.7 million at December 31, 2025, the residential mortgage loan portfolio increased by $57.0 million, or 7.2%, to $850.7 million at September 30, 2026 from $793.7 million at December 31, 2025 and the commercial real estate loan portfolio increased by $11.4 million, or 2.4%, to $477.8 million at September 30, 2026 from $466.4 million at December 31, 2025.
Previous wording
The increase in commercial and industrial loanswas primarily due to the acquisition of Targeted Lending during the three months ended June 30, 2026. The increase in residential mortgage loans was primarily related to the Bank’s relationship with a third-party mortgage banking company which facilitated an increase in residential mortgage loan volume, despite the higher interest rate environment. The increase incommercial construction loans was due to funding of increased construction commitments. The decrease in commercial real estate loans was due to loan payoffs outpacing loan funding.
Current wording
The increase in commercial and industrial loanswas primarily due to the acquisition of Targeted Lending during the three months ended June 30, 2026. The increase incommercial construction loans was due to funding of increased construction commitments. The increase in residential mortgage loans was primarily related to the Bank’s relationship with a third-party mortgage banking company which facilitated an increase in residential mortgage loan volume, despite the higher interest rate environment. The increase in commercial real estate loans was due to loan funding outpacing loan payoffs.
Previous wording
Deposits. Deposits of $1.97 billion at June 30, 2026 increased $229.8 million, or 13.2%, from $1.74 billion at December 31, 2025. By deposit category, certificates of deposits increased by $201.7 million, or 74.9%, to $471.2 million at June 30, 2026 from $269.5 million at December 31, 2025 (included in certificates of deposit were brokered deposits which increased by $174.5 million to $284.7 million at June 30, 2026 from $110.2 million at December 31, 2025), and money market accounts increased by $24.7 million, or 3.9%, to $658.2 million at June 30, 2026 from $633.5 million at December 31, 2025.
Current wording
Deposits. Deposits of $2.13 billion at September 30, 2026 increased $391.7 million, or 22.5%, from $1.74 billion at December 31, 2025. By deposit category, certificates of deposit increased by $240.5 million, or 89.3%, to $510.0 million at September 30, 2026 from $269.5 million at December 31, 2025 (included in certificates of deposit were brokered deposits which increased by $208.7 million to $318.9 million at September 30, 2026 from $110.2 million at December 31, 2025), non-interest bearing demand accounts increased by $80.3 million, or 17.6%, to $536.4 million at September 30, 2026 from $456.1 million at December 31, 2025, and money market accounts increased by $65.8 million, or 10.4%, to $699.3 million at September 30, 2026 from $633.5 million at December 31, 2025.
Previous wording
The increase in certificates of deposit was primarily due to an increase in brokered deposits, and by a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The increase in money market accounts was primarily due to a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The increase in brokered deposits was primarily to fund loan growth and the acquisition of Targeted Lending.
Current wording
The increase in certificates of deposit was primarily due to an increase in brokered deposits, and by a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The increase in non-interest bearing demand accounts was primarily related to growth in municipal deposits due to seasonality. The increase in money market accounts was primarily due to a migration of funds from non-interest bearing demand, savings and other
Previous wording
Uninsured deposits represents the portion of deposit accounts that exceed FDIC insurance limits. The Company calculates its uninsured deposit balances based on the same methodologies and assumptions used for regulatory reporting requirements, which includes collateralized deposits.
Current wording
Uninsured deposits represent the portion of deposit accounts that exceed FDIC insurance limits. The Company calculates its uninsured deposit balances based on the same methodologies and assumptions used for regulatory reporting requirements, which includes collateralized deposits.
Previous wording
Uninsured deposits after exclusions represented 13.4% and 16.6% of total deposits as of June 30, 2026 and December 31, 2025, respectively. The Company believes that this presentation of uninsured deposits provides a more accurate view of deposits at risk as affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit.
Current wording
Uninsured deposits after exclusions represented 10.6% and 16.6% of total deposits as of September 30, 2026 and December 31, 2025, respectively. The Company believes that this presentation of uninsured deposits provides a more accurate view of deposits at risk as affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit.
Previous wording
Borrowings from Federal Home Loan Bank of New York (“FHLBNY”). There were no borrowings from FHLBNY at June 30, 2026, compared to $50.0 million at December 31, 2025. The decrease in borrowings from FHLBNY was due to the payoff of the borrowings during the six months ended June 30, 2026.
Current wording
Borrowings from Federal Home Loan Bank of New York (“FHLBNY”). There were $75.0 million borrowings from FHLBNY at September 30, 2026, compared to $50.0 million at December 31, 2025.
Previous wording
Total Shareholders’ Equity. Shareholders’ equity of $328.3 million at June 30, 2026 increased $4.4 million, or 1.4%, from $323.9 million at December 31, 2025 primarily as a result of net income of $8.8 million, offset in part by a decrease in accumulated other comprehensive income of $1.9 million and by the repurchase of common stock of $3.6 million.
Current wording
Total Shareholders’ Equity. Shareholders’ equity of $323.3 million at September 30, 2026 decreased $566,000, or 0.2%, from $323.9 million at December 31, 2025 primarily as a result of a decrease in accumulated other comprehensive income of $7.7 million and by the repurchase of common stock of $3.6 million, offset in part by net income of $8.9 million.
Previous wording
General. Net income decreased by $3.0 million to $3.5 million for the three months ended June 30, 2026 as compared to $6.5 million for the three months ended June 30, 2025. The decrease was primarily due to an increase in non-interest expense of $7.5 million, partially offset by an increase in net interest income of $3.3 million, an increase of non-interest income of $658,000, and a decrease in income tax expense of $385,000.
Current wording
General. Net income decreased by $4.2 million to $85,000 for the three months ended September 30, 2026 as compared to $4.3 million for the three months ended September 30, 2025. The decrease was primarily due to an increase in non-interest expense of $10.1 million, partially offset by an increase in net interest income of $3.4 million, an increase in non-interest income of $1.7 million, and a decrease in income tax expense of $1.3 million.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $4.9 million, or 18.0%, to $31.9 million for the three months ended June 30, 2026, from $27.0 million for the three months ended June 30, 2025. The increase was the result of a 32 basis points increase in the average yield on interest-earning assets to 6.04% for the three months ended June 30, 2026, from 5.72% for the three months ended June 30, 2025. The increase in the average yield on interest-earning assets was driven by market-related increases in interest rates on new loans and on investment securities and loans acquired from the Targeted Lending acquisition. Average interest-earning assets increased by $232.2 million from $1.93 billion for the three months ended June 30, 2025 to $2.16 billion for the three months ended June 30, 2026 primarily due to the increase in the average balance of loans.
Current wording
Interest and Dividend Income. Interest and dividend income increased $5.4 million, or 19.1%, to $33.7 million for the three months ended September 30, 2026, from $28.3 million for the three months ended September 30, 2025. The increase was the result of a 26 basis points increase in the average yield on interest-earning assets to 6.12% for the three months ended September 30, 2026, from 5.86% for the three months ended September 30, 2025. The increase in the average yield on interest-earning assets was driven by market-related increases in interest rates on new loans and on investment securities and loans acquired from the Targeted Lending acquisition. Average interest-earning assets increased by $276.5 million from $1.96 billion for the three months ended September 30, 2025 to $2.23 billion for the three months ended September 30, 2026 primarily due to the increase in the average balance of loans.
Previous wording
$1.52 billion for the three months ended June 30, 2025 and a 24 basis points increase in the average yield on loans to 6.28% for the three months ended June 30, 2026 from 6.04% for the three months ended June 30, 2025. The increase in the average balance of loans was primarily due to the acquisition of Targeted Lending during the three months ended June 30, 2026 and by purchases of residential mortgage loans and increased originations of commercial construction loans. The increase in average yield on loans was primarily dueto market related increases in interest rates on new loans and the acquisition of Targeted Lending during the three months ended June 30, 2026.
Current wording
$317.6 million increase in the average balance of loans to $1.90 billion for the three months ended September 30, 2026 from $1.59 billion for the three months ended September 30, 2025 and a 30 basis points increase in the average yield on loans to 6.40% for the three months ended September 30, 2026 from 6.10% for the three months ended September 30, 2025. The increase in the average balance of loans was primarily due to the acquisition of Targeted Lending during the three months ended June 30, 2026 and by purchases of residential mortgage loans and increased originations of commercial construction loans. The increase in average yield on loans was primarily dueto market-related increases in interest rates on new loans and the acquisition of Targeted Lending’s higher yielding loans.
Previous wording
Interest income on securities decreased $966,000, or 24.5%, to $3.0 million for the three months ended June 30, 2026 from $3.9 million for the three months ended June 30, 2025. Interest income on securities decreased due to a $109.1 million decrease in the average balance of securities to $243.8 million for the three months ended June 30, 2026 from $352.9 million for the three months ended June 30, 2025, partially offset by a 43 basis points increase in the average yield on securities to 4.99% for the three months ended June 30, 2026 from 4.56% for the three months ended June 30, 2025. The decrease in the average balance of securities was due to the maturities of U.S. government and agency and municipal obligation securities, outpacing purchases during the three months ended June 30, 2026. The increase in the average yield of securities was primarily due to the higher market interest rates for new securities that were purchased replacing maturities of lower yielding securities.
Current wording
Interest income on securities decreased $775,000, or 20.4%, to $3.0 million for the three months ended September 30, 2026 from $3.8 million for the three months ended September 30, 2025. Interest income on securities decreased due to a $70.6 million decrease in the average balance of securities to $245.0 million for the three months ended September 30, 2026 from $315.6 million for the three months ended September 30, 2025, partially offset by a 13 basis points increase in the average yield on securities to 4.98% for the three months ended September 30, 2026 from 4.85% for the three months ended September 30, 2025. The decrease in the average balance of securities was due to maturities of U.S. government and agency and municipal obligation securities, the timing of purchases and changes to unrealized losses during the three months ended September 30, 2026 reflecting the increase in interest rates. The increase in the average yield of securities was primarily due to the higher market interest rates for new securities that were purchased replacing maturities of lower yielding securities.
Previous wording
Interest income on interest-earning deposits with banks, trading securities, and other increased $344,000 to $1.1 million for the three months ended June 30, 2026 from $732,000 for the three months ended June 30, 2025. Interest income on interest-earning deposits with banks, trading securities, and other increased due to a $38.2 million increase in the average balances to $102.7 million for the three months ended June 30, 2026 from $64.5 million for the three months ended June 30, 2025, primarily due to an increase in the average balance of trading securities and interest-earning deposits with banks, partially offset by an 36 basis points decrease in the average yield to 4.27% for the three months ended June 30, 2026 from 4.63% for the three months ended June 30, 2025 primarilydue to changes in market interest rates.
Current wording
Interest income on interest-earning deposits with banks, trading securities, and other increased $25,000 to $660,000 for the three months ended September 30, 2026 from $635,000 for the three months ended September 30, 2025. Interest income on interest-earning deposits with banks, trading securities, and other increased due to a $29.6 million increase in the average balances to $83.4 million for the three months ended September 30, 2026 from $53.8 million for the three months ended September 30, 2025, primarily due to an increase in the average balance of trading securities and interest-earning deposits with banks, partially offset by an 160 basis points decrease in the average yield to 3.17% for the three months ended September 30, 2026 from 4.77% for the three months ended September 30, 2025.
Previous wording
Interest Expense. Interest expense increased $1.6 million, or 21.9%, to $9.0 million for the three months ended June 30, 2026 from $7.4 million for the three months ended June 30, 2025, primarily as a result of an increase in interest expense on deposits. The increase was primarily due to a four basis points increase in the average cost of interest-bearing liabilities to 2.45% for the three months ended June 30, 2026 from 2.41% for the three months ended June 30, 2025, as well as a shift in the mix of interest-bearing liabilities to higher interest rate liability accounts.
Current wording
Interest Expense. Interest expense increased $2.0 million, or 24.6%, to $10.1 million for the three months ended September 30, 2026 from $8.1 million for the three months ended September 30, 2025, primarily as a result of an increase in interest expense on deposits. The increase was primarily due to a five basis points increase in the average cost of interest-bearing liabilities to 2.56% for the three months ended September 30, 2026 from 2.51% for the three months ended September 30, 2025, as well as a shift in the mix of interest-bearing liabilities to higher interest rate liability accounts.
Previous wording
Interest expense on interest-bearing deposits increased $1.8 million, or 25.7%, to $8.6 million for the three months ended June 30, 2026 from $6.8 million for the three months ended June 30, 2025. Interest expense on interest-bearing deposits increased primarily due to an eight basis points increase in the average cost of interest-bearing deposits to 2.42% for the three months ended June 30, 2026 from 2.34% for the three months ended June 30, 2025 and an increase in average interest-bearing deposits of $251.5 million to $1.44 billion for the three months ended June 30, 2026 from $1.19 billion for the three months ended June 30, 2025. The increase in the average cost of interest-bearing deposits was primarily due to a shift in the mix of deposits towards higher cost interest-bearing deposit accounts. The increase in the average balance of interest-bearing deposits was primarily due to higher average money market and certificates of deposit balances. The increase in certificates of deposit balances was the result of an increase in brokered deposits.
Current wording
Interest expense on interest-bearing deposits increased $2.4 million, or 33.6%, to $9.4 million for the three months ended September 30, 2026 from $7.0 million for the three months ended September 30, 2025. Interest expense on interest-bearing deposits increased primarily due to a 16 basis points increase in the average cost of interest-bearing deposits to 2.53% for the three months ended September 30, 2026 from 2.37% for the three months ended September 30, 2025 and an increase in average interest-bearing deposits of $297.9 million to $1.49 billion for the three months ended September 30, 2026 from $1.19 billion for the three months ended September 30, 2025. The increase in the average cost of interest-bearing deposits was primarily due to a shift in the mix of deposits towards higher cost interest-bearing deposit accounts. The increase in the average balance of interest-bearing deposits was primarily due to higher average money market and certificates of deposit balances. The increase in certificates of deposit balances was the result of an increase in brokered deposits to fund loan growth and the acquisition of Targeted Lending.
Previous wording
Interest expense on borrowings and other liabilities decreased $139,000 to $415,000 for the three months ended June 30, 2026 from $554,000 for the three months ended June 30, 2025 due primarily to a decrease in average cost of borrowings and other liabilities of 80 basis points to 3.31% for the three months ended June 30, 2026 from 4.11% for the three months ended June 30, 2025 and by a decrease in the average borrowings and other liabilities of $3.8 million to $51.0 million for the three months ended June 30, 2026 from $54.8 million for the three months ended June 30, 2025.
Current wording
Interest expense on borrowings and other liabilities decreased $373,000 to $689,000 for the three months ended September 30, 2026 from $1.1 million for the three months ended September 30, 2025 due primarily to a decrease in average cost of borrowings and other liabilities of 115 basis points to 3.14% for the three months ended September 30, 2026 from 4.29% for the three months ended September 30, 2025 and by a decrease in the average borrowings and other liabilities of $11.7 million to $88.0 million for the three months ended September 30, 2026 from $99.7 million for the three months ended September 30, 2025.
Previous wording
Net Interest Income. Net interest income of $22.9 million for the three months ended June 30, 2026 increased $3.3 million, or 16.5%, compared to $19.6 million for the three months ended June 30, 2025 as net interest margin increased 17 basis points to 4.30% for the three months ended June 30, 2026 from 4.13% for the three months ended June 30, 2025, partially offset by a decrease in net interest-earning assets of $15.4 million to $677.5 million for the three months ended June 30, 2026 from $692.9 million for the three months ended June 30, 2025. Net interest rate spread increased 27 basis points to 3.58% for the three months ended June 30, 2026 from 3.31% for the three months ended June 30, 2025.
Current wording
Net Interest Income. Net interest income of $23.6 million for the three months ended September 30, 2026 increased $3.4 million, or 16.9%, compared to $20.2 million for the three months ended September 30, 2025 as net interest margin increased 10 basis points to 4.26% for the three months ended September 30, 2026 from 4.16% for the three months ended September 30, 2025, partially offset by a decrease in net interest-earning assets of $9.7 million to $658.5 million
Previous wording
Provision for Credit Losses. The provision for credit losses was $1.4 million for the three months ended June 30, 2026, as compared to a provision for credit losses of $1.6 million for the three months ended June 30, 2025. The decrease in the provision for credit losses for the three months ended June 30, 2026 was primarily due to improvement in the loan portfolio credit quality, offset by growth in the loan portfolio and an increase in net charge-offs for the three months ended June 30, 2026.
Current wording
Provision for Credit Losses. The provision for credit losses was $1.3 million for the three months ended September 30, 2026, as compared to a provision for credit losses of $785,000 for the three months ended September 30, 2025. The increase in the provision for credit losses for the three months ended September 30, 2026 was primarily due to growth in the loan portfolio and an increase in net charge-offs, offset in part by improvement in the loan portfolio credit quality.
Previous wording
Non-Interest Income. Non-interest income increased $658,000, or 13.7%, to $5.5 million for the three months ended June 30, 2026 as compared to $4.8 million for the three months ended June 30, 2025. The increase in noninterest income for the three months ended June 30, 2026 was primarily due to an increase in insurance and wealth management services income, an increase in bank fees and service charges, and an increase in net gain on sale of loans, offset in part by a decrease in other noninterest income. The increase in insurance and wealth management services income was as a result of organic growth related to our wealth management services and the acquisition of Brown Financial Management Group during the three months ended December 31, 2025. The increase in bank fees and service charges and net gain on sale of loans was a result of the acquisition of Targeted Lending during the three months ended June 30, 2026. The decrease in other noninterest income was primarily due to $550,000 of bank-owned life insurance income as a result of a death benefit recognized during the three months ended June 30, 2025.
Current wording
Non-Interest Income. Non-interest income increased $1.7 million, or 44.3%, to $5.5 million for the three months ended September 30, 2026 as compared to $3.8 million for the three months ended September 30, 2025. The increase in noninterest income for the three months ended September 30, 2026 was primarily due to an increase in insurance and wealth management services income, an increase in bank fees and service charges, and an increase in net gain on sale of loans, offset in part by a decrease in other noninterest income. The increase in insurance and wealth management services income was as a result of organic growth related to our wealth management services and the acquisition of Brown Financial Management Group during the three months ended December 31, 2025. The increase in bank fees and service charges and net gain on sale of loans was a result of the acquisition of Targeted Lending during the three months ended June 30, 2026. The decrease in other noninterest income was primarily due to a net loss recognized on trading securities during the three months ended September 30, 2026.
Previous wording
Non-Interest Expense. Non-interest expense increased $7.5 million, or 50.6%, to $22.2 million for the three months ended June 30, 2026 as compared to $14.7 million for the three months ended June 30, 2025. The increase in noninterest expense for the three months ended June 30, 2026 was primarily due to an increase in professional fees, an increase in salaries and employee benefits, and an increase in other noninterest expense. The increase in professional fees for the three months ended June 30, 2026 was primarily due to higher legal fees and expenses and partially related to expenses in connection with the completion of our recent acquisitions described above during the three months ended June 30, 2026. Salaries and employee benefits increased for the three months ended June 30, 2026 primarily due to compensation expense from annual merit increases and an increase in the number of employees from acquisitions completed during the three months ended June 30, 2026. The increase in other non-interest expense for the three months ended June 30, 2026 was primarily due to an increase of $2.9 million in litigation-related expense(see Part I, Item 1 – Consolidated Financial Statements – Note 9 – Commitments and Contingent Liabilities – Legal Proceedings and Other Contingent Liabilities” for details).
Current wording
Non-Interest Expense. Non-interest expense increased $10.1 million, or 57.4%, to $27.7 million for the three months ended September 30, 2026 as compared to $17.6 million for the three months ended September 30, 2025. The increase in noninterest expense for the three months ended September 30, 2026 was primarily due to an increase in professional fees, an increase in litigation-related expense, and an increase in salaries and employee benefits. The increase in professional fees for the three months ended September 30, 2026 was primarily due to higher legal fees and expenses. Litigation-related expense increased for the three months ended September 30, 2026 related to the resolution of pending litigation(see Part I, Item 1 – Consolidated Financial Statements – Note 9 – Commitments and Contingent Liabilities – Legal Proceedings and Other Contingent Liabilities” for details). Salaries and employee benefits increased for the three months ended September 30, 2026 primarily due to compensation expense from annual merit increases and an increase in the number of employees from acquisitions completed during the nine months ended September 30, 2026.
Previous wording
Comparison of Operating Results for the Six Months Ended June 30, 2026 and June 30, 2025
Current wording
Comparison of Operating Results for the Nine Months Ended September 30, 2026 and September 30, 2025
Previous wording
General. Net income decreased by $3.4 million to $8.8 million for the six months ended June 30, 2026 as compared to $12.2 million for the six months ended June 30, 2025. The decrease was primarily due to an increase in non-interest expense of $11.0 million, partially offset by an increase in net interest income of $4.9 million, an increase of non-interest income of $793,000, and a decrease in income tax expense of $1.6 million.
Current wording
General. Net income decreased by $7.6 million to $8.9 million for the nine months ended September 30, 2026 as compared to $16.5 million for the nine months ended September 30, 2025. The decrease was primarily due to an increase in non-interest expense of $21.1 million, partially offset by an increase in net interest income of $8.3 million, an increase in non-interest income of $2.5 million, and a decrease in income tax expense of $2.9 million.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $7.3 million, or 14.0%, to $60.2 million for the six months ended June 30, 2026, from $52.9 million for the six months ended June 30, 2025. The increase was the result of a 23 basis points increase in the average yield on interest-earning assets to 5.86% for the six months ended June 30, 2026, from 5.63% for the six months ended June 30, 2025. The increase in the average yield on interest-earning assets was driven by market-related increases in interest rates on new loans and on investment securities and loans acquired from the Targeted Lending acquisition. Average interest-earning assets increased by $182.6 million from $1.92 billion for the six months ended June 30, 2025 to $2.10 billion for the six months ended June 30, 2026 primarily due to the increase in the average balance of loans.
Current wording
Interest and Dividend Income. Interest and dividend income increased $12.8 million, or 15.8%, to $93.9 million for the nine months ended September 30, 2026, from $81.1 million for the nine months ended September 30, 2025. The increase was the result of a 23 basis points increase in the average yield on interest-earning assets to 5.89% for the nine months ended September 30, 2026, from 5.66% for the nine months ended September 30, 2025. The increase in the average yield on interest-earning assets was driven by market-related increases in interest rates on new loans and on investment securities and loans acquired from the Targeted Lending acquisition. Average interest-earning assets increased by $214.8 million from $1.93 billion for the nine months ended September 30, 2025 to $2.15 billion for the nine months ended September 30, 2026 primarily due to the increase in the average balance of loans.
Previous wording
Interest income on loans increased $5.5 million, or 24.6%, to $27.8 million for the three months ended June 30, 2026 from $22.3 million for the three months ended June 30, 2025. Interest income on loans increased due to a $303.2 million increase in the average balance of loans to $1.82 billion for the three months ended June 30, 2026 from
Current wording
Interest income on loans increased $14.8 million, or 22.1%, to $82.2 million for the nine months ended September 30, 2026 from $67.4 million for the nine months ended September 30, 2025. Interest income on loans increased due to a $278.1 million increase in the average balance of loans to $1.80 billion for the nine months ended September 30, 2026
Previous wording
ended June 30, 2026 from 5.97% for the six months ended June 30, 2025. The increase in the average balance of loans was primarily due to the acquisition of Targeted Lending during the six months ended June 30, 2026 and by purchases of residential mortgage loans and increased originations of commercial construction loans. The increase in average yield on loans was primarily dueto market related increases in interest rates on new loans and the acquisition of Targeted Lending during the six months ended June 30, 2026.
Current wording
from $1.52 billion for the nine months ended September 30, 2025 and a 20 basis points increase in the average yield on loans to 6.15% for the nine months ended September 30, 2026 from 5.95% for the nine months ended September 30, 2025. The increase in the average balance of loans was primarily due to the acquisition of Targeted Lending during the nine months ended September 30, 2026 and by purchases of residential mortgage loans and increased originations of commercial construction loans. The increase in average yield on loans was primarily dueto market related increases in interest rates on new loans and the acquisition of Targeted Lending’s higher yielding loans.
Previous wording
Interest income on securities decreased $1.7 million, or 22.5%, to $6.0 million for the six months ended June 30, 2026 from $7.7 million for the six months ended June 30, 2025. Interest income on securities decreased due to a $105.7 million decrease in the average balance of securities to $249.3 million for the six months ended June 30, 2026 from $355.0 million for the six months ended June 30, 2025, partially offset by a 46 basis points increase in the average yield on securities to 4.90% for the six months ended June 30, 2026 from 4.44% for the six months ended June 30, 2025. The decrease in the average balance of securities was due to the maturities of U.S. government and agency and municipal obligation securities, outpacing purchases during the six months ended June 30, 2026. The increase in the average yield of securities was primarily due to the higher market interest rates for new securities that were purchased replacing maturities of lower yielding securities.
Current wording
Interest income on securities decreased $2.5 million, or 21.8%, to $9.0 million for the nine months ended September 30, 2026 from $11.5 million for the nine months ended September 30, 2025. Interest income on securities decreased due to a $94.0 million decrease in the average balance of securities to $247.8 million for the nine months ended September 30, 2026 from $341.8 million for the nine months ended September 30, 2025, partially offset by a 36 basis points increase in the average yield on securities to 4.89% for the nine months ended September 30, 2026 from 4.53% for the nine months ended September 30, 2025. The decrease in the average balance of securities was due to maturities of U.S. government and agency and municipal obligation securities, the timing of purchases and changes to unrealized losses during the nine months ended September 30, 2026 reflecting the increase in interest rates. The increase in the average yield of securities was primarily due to the higher market interest rates for new securities that were purchased replacing maturities of lower yielding securities.
Showing the first 40 of 60 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Litigation-related expense includes expenses related to legal proceedings, exclusive of legal fees and expenses.
Current report — wording carried from elsewhere
lower rate interest-bearing accounts. The increase in brokered deposits was primarily to fund loan growth and the acquisition of Targeted Lending.
Current report — wording carried from elsewhere
maintaining the property are expensed. Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Provision for Credit Losses. We charge provisions for credit losses to operations in order to maintain our allowance for credit losses on loans, securities held to maturity and unfunded commitments at a level that is considered reasonable and necessary to absorb expected credit losses inherent in the loan portfolio and securities held to maturity
Previous report — wording carried elsewhere
Targeted Lending Co., LLC (“Targeted Lending”)
Previous report — wording carried elsewhere
Income Tax Expense. Income tax expense decreased $385,000 to $1.3 million for the three months ended June 30, 2026 as compared to $1.7 million for the three months ended June 30, 2025. Our effective tax rate was 27.2% for the three months ended June 30, 2026 compared to 20.7% for the three months ended June 30, 2025. The increase in the effective tax rate for the three months ended June 30, 2026 was due to an increase in non-deductible expenses.