Pioneer Bancorp Posts Robust 2025 Earnings, Launches Broker-Dealer Arm in Strategic Push
COLONIE — Pioneer Bancorp, the Capital Region's sixth-largest bank, capped off a strong year with net income of $20.3 million for 2025, a notable jump from the $15.3 million reported in 2024. Earnings per share rose to 83 cents from 61 cents year-over-year.
In a strategic move to diversify its revenue, the bank announced the formation of its own broker-dealer entity, Pioneer Brokerage Services. The new unit will focus on proprietary trading of investment-grade municipal bonds, a sector known for its relative stability.
"The launch of our broker-dealer platform is a natural extension of our strategy to deepen client relationships and build more resilient, fee-based income," the bank said in a statement. This shift toward non-interest income—revenue from fees rather than loan interest—is seen as a buffer against the volatile rate environment shaped by the Federal Reserve's ongoing inflation measures.
Pioneer's loan portfolio grew to $1.65 billion by year-end, up $211 million from 2024. Fourth-quarter net interest income reached $20.3 million. The bank, headquartered locally, holds $2 billion in assets across 22 offices and commands a 5.78% share of local deposits, according to FDIC data from June 30.
CEO Thomas Amell attributed the "solid" results to the bank's relationship-focused model. "We delivered record net interest income this year, supported by disciplined loan growth and a diversified deposit base, all while managing costs prudently," Amell stated.
The bank also repurchased 28,333 shares of its common stock in Q4 at an average $14.56 per share, a signal of confidence in its financial position. Shares were trading at $14.65 Monday afternoon.
Market Context & Analysis: While national banks grapple with margin pressure, regional players like Pioneer are leveraging local ties to gain ground. Its new broker-dealer venture aims to capture under-served municipal bond demand in its footprint. However, it faces stiff competition: KeyBank leads the region with a 30% market share, and locally-based Trustco Bank holds 11%.
Voices from the Community:
"As a small business owner banking with Pioneer for a decade, I’m glad to see them investing in new services. It shows they’re thinking long-term about how to support clients like me," said Michael Rodriguez, owner of Capital City Supply Co.
"These results are impressive on paper, but let's not forget this is still a relatively small player. Launching a broker-dealer is a capital-intensive gamble. Shareholders should ask if this is the best use of resources, especially when regional banking consolidation is accelerating," argued Dr. Evelyn Shaw, a finance professor at Hudson Valley College.
"Finally, a local bank acting like a innovator! The big banks have neglected municipal bonds for years. If Pioneer executes this well, it could become a niche powerhouse," remarked David Park, a retired municipal bond trader in Albany.