PBFS · Pioneer Bancorp, Inc.

Pioneer Bancorp, Inc. (PBFS) strategically expanded its commercial lending footprint through the acquisition of Targeted Lending Co., LLC, an equipment financing specialist, completed on April 24, 2026. The deal, executed via an Equity Purchase Agreement with sellers including Brian Gallo and others, involved an all-cash payment structured around a $54 million base purchase price, adjusted post-closing for Targeted Lending's indebtedness and expenses, plus repayment of $88 million in credit facility debt to reach the $140 million enterprise value. This immediately adds a $120 million loan portfolio as of April 23, 2026, featuring equipment finance agreements with personal guarantees, even payment streams via mandatory ACH, interest rates from 8.5% to 20% (average 12%), and terms averaging 54 months at origination with 40 months remaining. The portfolio diversifies across industries like fitness, gas stations, medical, and construction, serving over 2,000 small to mid-sized businesses nationwide with average FICO scores of 716 and loan sizes mostly under $150K. Key employees may earn up to $3 million in contingent payments over three years based on net income performance, aligning incentives for integration and growth. Targeted Lending will operate as Pioneer's Specialty Financing division under CEO Brian Gallo, leveraging its originator-centric platform for scalable loan origination. The transaction supports Pioneer's 'More Than a Bank' strategy by diversifying income, replacing higher-cost funding with Pioneer's lower funding costs for potential profitability gains, and enabling cross-selling opportunities, with management highlighting accretion to future earnings.