1. Pioneer Bancorp is like a local, full-service financial hub, similar to a small-scale Bank of America for its New York communities.

2. Pioneer Bancorp is like a community-focused M&T Bank, but with even broader integrated services including banking, insurance, and wealth management for its local New York market.

• Deposit Accounts: Pioneer Bancorp offers various accounts for saving and holding money, including demand, savings, money market, and certificates of deposit.
• Loan Services: The company provides financing solutions such as commercial real estate, commercial and industrial, residential real estate, home equity, and consumer loans.
• Insurance Products: They offer personal (homeowners, auto), commercial (business), and employee benefit (health, dental, life) insurance policies.
• Employee Benefit Administration: Services include defined contribution/benefit administration and human resource management.
• Wealth Management Services: Pioneer Bancorp provides investment advice, retirement income planning, estate planning, and business succession services.

Pioneer Bancorp (PBFS) primarily serves a diverse customer base, including individuals and various types of businesses within its operating region in New York. As a community bank, it does not typically have "major customers" in the sense of a few large companies making up the majority of its revenue. Instead, its customer base can be categorized as follows:

• Individual Consumers: This category includes individuals who utilize Pioneer Savings Bank for personal banking needs such as demand, savings, and money market accounts, certificates of deposit, one- to four-family residential real estate loans, home equity loans and lines of credit, and other consumer loans. They also access personal insurance products (homeowners, automobile) and wealth management services (investment advice, retirement income planning, estate planning).

• Commercial Businesses: This category encompasses businesses seeking financial products and services for their operations. These include commercial real estate loans, commercial and industrial loans, commercial construction loans, and comprehensive business insurance products.

• Employers: This refers to businesses and organizations that leverage Pioneer Bancorp's services for their employees' benefit. This includes employee benefit products and services such as group health, dental, disability, and life insurance, as well as defined contribution, defined benefit administration, human resource management services, and employer retirement planning through its wealth management offerings.

• Fidelity National Information Services, Inc. (FIS)
• Equifax Inc. (EFX)
• TransUnion (TRU)
• Visa Inc. (V)
• Mastercard Incorporated (MA)

Key Risks to Pioneer Bancorp (PBFS)

1. High Risk Exposure in Commercial Real Estate (CRE) Loans: Pioneer Bancorp faces significant exposure to commercial real estate loans, which is a common stress point for regional banks. The company experienced a notable increase in non-performing assets (NPAs) to $12.0 million, or 0.53% of total assets, in Q3 2025, up from $5.2 million at the end of 2024. This trend highlights increased credit risk, particularly from potential loan defaults on real estate collateral.
2. Rising Deposit Costs and Impact on Profitability: Pioneer Bancorp has experienced an increase in its average cost on interest-bearing liabilities, reaching 2.49% in Q4 2025, which is higher than some of its peers in the New York Capital Region. This rise in funding costs, driven by high-cost acquired deposits rather than consistent retail engagement, can limit the bank's profitability despite growth in its loan portfolio.
3. Regulatory Risk and Increasing Compliance Costs: The banking industry, including regional institutions like Pioneer Bancorp, is navigating a landscape of heightened regulatory scrutiny. The ongoing debate around stricter capital requirements, such as those proposed by the Basel III endgame rules, creates a "regulatory creep" that influences supervision for smaller institutions. This environment necessitates a higher degree of capital conservatism and leads to increased compliance costs, impacting the bank's operational expenses and resource allocation.

The clear emerging threat to Pioneer Bancorp stems from the ongoing disruption caused by digital-first financial technology (fintech) companies and online competitors across its various business lines. This includes:

• **Digital-first banking and lending platforms**: These competitors, unburdened by extensive physical branch networks, can offer more competitive interest rates on deposits and loans, lower fees, and superior mobile/online user experiences. This directly threatens Pioneer's ability to attract and retain customers for its core banking products (demand, savings, money market accounts, certificates of deposit, and various loan types) in its local New York markets.
• **Robo-advisors and online investment platforms**: These services provide automated, low-cost investment advice and wealth management solutions, directly competing with Pioneer's traditional wealth management services.
• **Online insurance providers and aggregators**: These platforms allow customers to easily compare and purchase insurance products digitally, threatening Pioneer's personal and commercial insurance brokerage business.

This widespread digital transformation in financial services represents a fundamental shift in customer preferences and operational models, similar to how Netflix disrupted Blockbuster or Uber challenged traditional taxis.

Addressable Markets for Pioneer Bancorp's Main Products and Services

For Pioneer Bancorp (symbol: PBFS), the addressable markets for its main products and services, primarily within New York State and its operating counties (Albany, Greene, Rensselaer, Saratoga, Schenectady, and Warren), are identified as follows:

• Deposit Products (Demand, Savings, Money Market Accounts, Certificates of Deposit):
  The total deposits held at community bank branches in New York were approximately $281.3 billion as of December 2024. This represents the overall deposit market in New York for community banks.
• Loan Products:
  • Commercial Real Estate and Residential Real Estate Loans:
    The market size of the Real Estate Loans & Collateralized Debt industry in New York is projected to be $25.3 billion in 2026. This includes both commercial and residential real estate lending within the state.
  • Home Equity Loans and Lines of Credit (HELOCs): null
  • Commercial and Industrial Loans, Commercial Construction Loans, and Consumer Loans: null
• Investments (U.S. Governmental Securities, Fixed Rate Collateralized Mortgage Obligations, Mortgage-Backed Securities, Fixed-Rate Investment Grade Bonds, Equity Securities): null
• Insurance Products:
  • Homeowners Insurance:
    New York's homeowners insurance market was valued at $3.7 billion based on 2017 data. There are approximately 4,252,571 insured homeowner households in New York. The average homeowners insurance premium in New York was about $1,900 in 2025.
  • Automobile Insurance:
    New Yorkers paid an average of $1,935 annually for personal auto expenditures in 2024. Another estimate indicates New Yorkers pay an average of $4,031 annually for full-coverage auto insurance in 2025.
  • Commercial Insurance:
    Total direct written premiums for property and casualty (which includes commercial insurance) in New York reached $78 billion in 2022. The Insurance Brokers & Agencies industry in New York, which would service commercial insurance, is projected to have a market size of $18.8 billion in 2026.
• Employee Benefit Products and Services (Group Health, Dental, Disability, Life Insurance, Defined Contribution, Defined Benefit Administration, Human Resource Management Services):
  The Human Resources & Benefits Administration industry in New York is estimated at $7.6 billion in 2026. Approximately 9.05 million people in New York were covered by employer-sponsored insurance in 2022. The small group health insurance market in New York had under 740,000 covered lives in 2024. Annually, life and annuity insurance premiums in New York account for $105 billion.
• Wealth Management Services (Investment Advice, Retirement Income Planning, Estate Planning, Business Succession, Employer Retirement Planning): null

For Pioneer Bancorp (symbol: PBFS), the expected drivers of future revenue growth over the next 2-3 years include:

1. Continued Loan Growth: Pioneer Bancorp has demonstrated consistent growth in its loan portfolio, with net loans receivable increasing significantly in recent fiscal years. This expansion of lending activities, particularly in commercial real estate, commercial and industrial, and residential real estate loans, is anticipated to continue driving net interest income.
2. Growth in Customer Deposits: An increase in customer deposits provides a stable funding base for the bank's lending operations. Pioneer Bancorp has seen substantial growth in customer deposits, including retail, commercial, and municipal accounts, which supports further asset expansion and contributes to net interest income.
3. Expansion of Non-Interest Income Streams: The company is strategically expanding its non-interest income through its insurance and wealth management services. This includes initiatives such as the acquisition of wealth management groups and the establishment of a broker-dealer subsidiary, aiming to diversify revenue beyond traditional banking products.
4. Strategic Acquisitions and Market Expansion: Pioneer Bancorp has engaged in strategic activities, including mergers and acquisitions and a national bank conversion. These actions are designed to expand the company's market reach, increase its asset base, and enhance its service offerings, thereby contributing to overall revenue growth.

Share Repurchases

• Pioneer Bancorp adopted its first stock repurchase program on May 21, 2024, authorizing the repurchase of up to approximately 5% of its outstanding common stock, or 1,298,883 shares, with no expiration date.
• During the fiscal year ended June 30, 2024, the company repurchased 106,386 shares of its common stock at an average price of $9.97 per share, totaling $1.1 million.
• Pioneer Bancorp completed its initial stock repurchase program by repurchasing 28,333 shares at an average price of $14.56 per share as of December 31, 2025, and subsequently announced a second stock repurchase program on December 17, 2025, authorizing the repurchase of up to 1,254,027 shares, or approximately 5% of its then-outstanding shares.

Share Issuance

• No significant share issuances (such as new public offerings or preferred stock issuances) were reported within the last 3-5 years that would cause dilution.
• The company maintains employee stock option plans which may influence future dilution.

Outbound Investments

• On October 28, 2025, Pioneer Bancorp, through its wealth management subsidiary, acquired Brown Financial Management Group, LLC, adding $73 million of assets under management.
• Pioneer launched its broker-dealer subsidiary, Pioneer Capital Markets, Inc., on January 2, 2026, to focus on proprietary trading of investment-grade municipal bonds, aiming to diversify products and services and increase noninterest income.

Capital Expenditures

• Pioneer Bancorp invested $838,000 in capital expenditures during fiscal year 2024.
• In the first quarter of 2023, the company invested $65,000 in capital expenditures.