Pioneer Bancorp, Inc./MD

Location · Owned · or Leased

Main Office:

652 Albany Shaker Road, Albany, NY 12211 · Owned (1) · 2016

Other Properties:

21 Second Street, Troy, NY 12180 · Leased · 2016

531 Troy-Schenectady Road, Latham, NY 12110 · Owned · 2008

2000 Second Avenue, Watervliet, NY 12189 · Leased · 2017

1828 Altamont Avenue, Schenectady, NY 12305 · Owned · 2012

10 Kendall Way, Malta, NY 12020 · Owned · 2016

78 Main Avenue, Wynantskill, NY 12198 · Owned · 2014

712 Hoosick Street, Brunswick, NY 12180 · Owned · 2015

329 Glenmont Road, Glenmont, NY 12077 · Leased · 2014

142 Saratoga Avenue, Waterford, NY 12188 · Owned · 2015

1770 Central Avenue, Albany, NY 12205 · Leased · 2019

602 North Greenbush Road, Rensselaer, NY 12144 · Leased · 2017

90 State Street, Albany, NY 12207 · Leased · 2013

1881 Western Avenue, Albany, NY 12203 · Owned · 2018

184 - 190 Delaware Avenue, Delmar, NY 12054 · Owned · 2010

843 Route 146, Clifton Park, NY 12065 · Leased · 2012

426 State Street, Schenectady, NY 12305 · Leased · 2014

440 Main Street, Cairo, NY 12413 · Owned · 2016

11565 NY‑32, Greenville, NY 12083 · Leased · 2016

739 Upper Glen Street, Queensbury, NY 12804 · Leased · 2017

100 Mohawk Street, Cohoes, NY 12047 · Owned · 2017

1 Hudson City Centre, Hudson, NY 12534 · Leased · 2023

3440 Toringdon Way, Suite 205, Charlotte, NC 28277 · Leased · 2025

(1) · The property is subject to a ground lease.

The Company and the Bank maintain their executive offices as well as an operations center, customer call center and a retail banking center at the main office. The Bank operates 21 retail banking offices in Albany, Greene, Rensselaer, Saratoga, Schenectady and Warren Counties, as well as a wealth management office in Columbia County in New York, and Pioneer Capital Markets, Inc.’s office located in North Carolina. We believe that the current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion. For more information on the Company’s properties, see Notes 2, 7 and 18 set forth in Part II, Item 8 Financial Statements and Supplementary Data, of this Annual Report.

• Changes in market conditions, changes in discount rates, changes in mortality assumptions or lower returns on assets may increase required contributions to, and costs associated with, our tax-qualified defined benefit plan in future periods.
• Changes in the valuation of our securities portfolio may reduce our profits and our capital levels.
• Our loan portfolio consists of a high percentage of loans secured by commercial real estate. These loans carry a greater credit risk than loans secured by one- to four-family properties.
• A portion of our loan portfolio is comprised of commercial and industrial loans secured by accounts receivable, inventory, equipment or other business assets, the deterioration in value of which could increase the potential for future losses.
• We make and hold in our portfolio commercial construction loans, which are considered to have greater credit risk than residential mortgage loans.
• Our allowance for credit losses on loans may not be sufficient to absorb losses in our loan portfolio.
• If our non-performing assets increase, our earnings will be adversely affected.
• A portion of our loan portfolio consists of loan participations secured by properties outside our market area. Loan participations may have a higher risk of loss than loans we originate because we are not the lead lender and we have limited control over credit monitoring.
• We are subject to fraud and compliance risk.
• We are a defendant in a variety of litigation and other actions, which may have a material adverse effect on our financial condition and results of operations.
• We are subject to sanctions and other negative actions if regulatory agencies with supervisory authority over us determine that we failed to comply with applicable laws and regulations.
• Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations will subject us to fines or sanctions.
• Changes in laws and regulations and the cost of compliance with new laws and regulations may adversely affect our operations and our income.
• Our earnings are significantly affected by the fiscal and monetary policies of the federal government and its agencies.
• We are subject to the Community Reinvestment Act (“CRA”) and fair lending laws, and failure to comply with these laws could lead to material penalties.
• Our broker-dealer business subjects us to regulatory risks.
• The level of our commercial real estate loan portfolio subjects us to additional regulatory scrutiny.
• We are subject to environmental liability risk associated with lending activities.
• Environmental matters and related legislative and regulatory initiatives may materially affect our business and results of operations.
• Risks Related to Accounting Matters
• Changes in management’s estimates and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results.
• Changes in accounting standards could affect reported earnings.
• The cost of additional finance and accounting systems, procedures and controls in order to satisfy our public company reporting requirements has increased and will continue to increase our expenses.
• A lack of liquidity could adversely affect our financial condition and results of operations.
• Municipal deposits are price sensitive and could result in an increase in interest expense or funding fluctuations.
• Conditions in insurance markets could adversely affect our earnings.
• Involvement in wealth management creates risks associated with the industry.
• Strong competition within our market area may reduce our profits and slow growth.
• We use a mortgage banking company to originate residential mortgage loans.
• Our financial condition and results of operations may be adversely affected if we fail to grow or fail to manage our growth effectively.
• We continually encounter technological changes and the failure to understand and adapt to these changes could hurt our business.
• We are subject to stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or restrict us from paying dividends or repurchasing shares.
• Our success depends on attracting and retaining certain key personnel.
• Systems failures or breaches of our network security could subject us to increased operating costs as well as litigation and other liabilities.
• Our risk management framework may not be effective in mitigating risk and reducing the potential for significant losses.
• We are a community financial institution and our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our performance.
• Severe weather, acts of terrorism, geopolitical and other external events could impact our ability to conduct business.
• Impairment of Goodwill Could Adversely Affect Our Financial Condition and Results of Operations.
• The risks presented by acquisitions could adversely affect our financial condition and results of operations.
• New lines of business or new products and services may subject us to additional risks.
• The development and use of artificial intelligence (“AI”) presents risks and challenges that may adversely impact our business.
• Pioneer Bancorp, MHC’s majority control of our common stock will enable it to exercise voting control over most matters put to a vote of stockholders and will prevent stockholders from forcing a sale or a second-step conversion transaction you may find advantageous.
• Our common stock is not heavily traded, and the stock price may fluctuate significantly.
• Federal Reserve Board regulations and policy effectively prohibit Pioneer Bancorp, MHC from waiving the receipt of dividends, which will likely preclude us from paying any dividends on our common stock.
• Various factors may make takeover attempts more difficult to achieve.