Pioneer Bankcorp, Inc (OTC Markets: PBKC), the holding company for First Bank, today reported earnings for the twelve months ended December 31, 2024. Comparisons to 2023 noted below are for the twelve months ending December 31, 2023.
The Company reported net income of $9.04 million or $8.00 per fully diluted common share, compared with $7.4 million or $6.44 per fully diluted common share earned in 2023.
YTD loan yields increased from 5.14% to 5.67%, and net interest income increased from $21.31 million in 2023 to $25.56 million in 2024. Income from investments increased from $4.15 million in 2023 to $5.49 million in 2024. The net yield on average interest earning assets increased from 3.09% to 3.64%, with the yield on earning assets increasing primarily due to higher rates on new loans, repricing of existing loans and lower yielding investments maturing and being replaced with current market yields.
Non-interest income decreased 23.0% from $6.3 million in 2023 to $4.9 million in 2024 and non-interest expenses increased 3.1% from $17.5 million in 2023 to $18.1 million in 2024. The decrease in non-interest income is due to reclassifying fee income on off-balance sheet deposit programs and is reflected in a reduction to interest expense.
The provision for loan losses increased slightly from $420 thousand in 2023 to $525 thousand in 2024, and the allowance for credit losses was $7.58 million or 1.70 % of total loans as of December 31, 2024. The balance in the reserve for unfunded commitments required by CECL was $616,000 and non-performing assets were .00 % of total assets.
Total assets as of December 31, 2024, were $739.5 million, an increase of 4.9% from $704.7 million reported as of December 31, 2023. Net loans increased to $437.9 million at December 31, 2024, compared to $412.1 million at December 31, 2023, a 6.3% increase. The investment portfolio decreased by 6.6% year over year and stood at $181.0 million at December 31, 2024. Total deposits were $666.5 million, an increase of 4.0% from $640.9 million. Liquidity remains well above our policy minimums and our loan-to-deposit ratio was 66.5%.
"Congratulations to the First Bank team on an exceptional year. These results affirm the great work done by our team and the value of our community and relationship focused business model.” stated President & CEO Andrew Couse.
He continued, “As we begin the new year, we expect many of the trends from 2024 to continue. While we expect very moderate growth, we should see asset yields continue to improve as both loans and securities reprice and renew throughout the year.”
Finally, “I would also like to give a special thanks to Carey Soud who retired as CEO at the end of the year. He has been an excellent mentor to me, and he leaves the Bank in a position of strength and solid performance.”
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||
(Dollars in thousands, except per share amounts) | |||
12/31/2024 | 12/31/2023 | ||
(unaudited) | (audited) | ||
Total assets | 739,453 | 704,675 | |
Total loans, Net | 437,896 | 412,095 | |
Investments | 181,016 | 193,791 | |
Deposits | 666,539 | 640,979 | |
Stockholder's equity | 59,804 | 51,855 | |
Tier one leverage ratio (bank only) | 9.46% | 8.98% | |
Total risk-based capital ratio (bank only) | 15.78% | 15.38% | |
Non-performing assets to total assets | 0.00% | 0.03% | |
Loans past due more than 90 days to total loans | 0.00% | 0.05% | |
Allowance for loan losses to total loans | 1.70% | 1.66% | |
Tangible book value per common share | $ 52.93 | $ 45.11 | |
For the twelve months ended December 31st | |||
2024 | 2023 | ||
Interest income | $ 33,790 | $ 29,264 | |
Interest expense | 8,228 | 7,949 | |
Net interest income | 25,561 | 21,315 | |
Provision for loan losses | 525 | 420 | |
Net interest income after provision for loan losses | 25,036 | 20,895 | |
Noninterest income | 4,876 | 6,332 | |
Noninterest expense | 18,082 | 17,540 | |
Net income before taxes | 11,830 | 9,686 | |
Provision for income taxes | 2,790 | 2,286 | |
Net income | 9,040 | 7,400 | |
Net income available to common shareholders | 9,040 | 7,400 | |
Basic net income per share | 8.00 | 6.44 | |
Diluted net income per share | 8.00 | 6.44 | |
Return on average total assets (1) | 1.25% | 1.04% | |
Return on average total equity (1) | 16.14% | 15.89% | |
Yield on average interest earning assets | 4.85% | 4.27% | |
Cost of funds | 1.21% | 1.18% | |
Net yield on average interest earning assets | 3.64% | 3.09% | |
Overhead efficiency ratio | 58.45% | 61.43% | |
Net charge-offs/average loans | -0.02% | -0.01% | |
(1) Annualized for all periods presented | |||
For additional information, please contact: | |||
Andrew Couse, President & CEO or | Mark Deitz, SVP & CFO | ||
863-902-3401 | 863-902-3459 | ||
acouse@first1bank.com | mdeitz@first1bank.com | ||
About Pioneer Bankcorp
Pioneer Bankcorp, Inc. is the Bank holding company for First Bank (the “Bank”) and is located at 300 East Sugarland Highway, Clewiston, Florida. Full-service branch offices are also located at 301 State Road 80 in Labelle, 101 South Berner Rd. in Clewiston, 11741 Palm Beach Boulevard in Fort Myers, 24704 US Highway 27 In Moore Haven, 325 South Main Street in Belle Glade, and 316 North 15th Street in Immokalee.
First Bank is engaged in financial planning and the sale of brokerage service products under the trademark First1Financial. First Bank can be found online at www.first1bank.com.
Non-GAAP Financial Measures
This report refers to the overhead efficiency ratio, which is computed by dividing non-interest expense by the sum of net interest income and non-interest income. This is a non-GAAP financial measure that we believe provides investors with important information regarding our operational efficiency. Comparison of our efficiency ratio with those of other companies may not be possible because other companies may calculate the efficiency ratio differently. Such information is not in accordance with generally accepted accounting principles in the United States (GAAP) and should not be construed as such. Management believes such financial information is meaningful to the reader in understanding operating performance but cautions that such information should not be viewed as a substitute for GAAP. Pioneer Bankcorp, in referring to its net income, is referring to income under GAAP.
Forward-Looking Statements
Information in this press release may contain “forward-looking statements.” These statements reflect management's current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. As such, actual results and outcomes may materially differ from what may be expressed or forecast in such forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit levels, loan demand and asset quality, including real estate and other collateral values; changes in banking regulations and accounting principles, policies, or guidelines; and the impact of competition from traditional or new sources. These and other factors that may emerge could cause decisions and actual results to differ materially from current expectations. Pioneer Bankcorp takes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this press release.