Pioneer Bancorp, Inc. Announces Strategic Acquisition of Targeted Lending Co., LLC, Launches National Specialty Financing Division

Key Highlights

• Acquisition of Targeted Lending Co., LLC: Pioneer Bancorp, Inc. (NASDAQ: PBFS) has acquired 100% of the membership interests in Targeted Lending Co., LLC, an independent equipment financing company with a loan portfolio of approximately \$120 million.
• Transaction Value: The all-cash deal is valued at approximately \$140 million in enterprise value, with potential adjustments for a performance-based earn-out over a three-year period. The transaction closed on April 24, 2026.
• Launch of Pioneer Specialty Financing Division: Targeted Lending will operate as Pioneer’s newly formed Specialty Financing division, expanding its commercial lending capabilities and establishing a presence in nationwide equipment finance markets.
• Leadership Continuity: Brian Gallo, CEO of Targeted Lending, will lead the new division, alongside the existing management team, who bring more than 20 years of experience in the sector. The division will be headquartered in Williamsville, New York, with additional personnel across the U.S.
• Strategic Rationale: The acquisition aligns with Pioneer’s “More Than a Bank®” strategy by diversifying income sources, launching a national lending operation, and enhancing the company’s ability to offer a broader suite of financial services to businesses throughout their growth lifecycle.
• Product Offering: Through an originator-centric platform, Targeted Lending offers financing for essential, income-producing equipment, with loans of up to \$400,000 tailored to small and mid-sized businesses across diverse industries.
• Financial Scale: Pioneer Bancorp, Inc. is a financial holding company with more than \$2 billion in assets, providing a wide range of financial services in New York’s Capital Region and beyond.

Details of the Transaction

Pioneer’s acquisition of Targeted Lending positions the company to capture new growth opportunities in the national equipment financing market. With an established, scalable platform and deep industry relationships, the addition of Targeted Lending not only augments Pioneer’s commercial lending capabilities, but also brings a seasoned team with a track record of performance. The all-cash deal, valued at \$140 million (subject to performance-based adjustments), signals a significant commitment to expanding Pioneer’s income streams and national footprint.

Targeted Lending specializes in providing small-ticket equipment financing—loans up to \$400,000—for essential business equipment and vehicles. Its technology-enabled origination platform emphasizes efficiency, transparency, and control for originators, making it attractive for both clients and partners. The company’s client base spans a variety of industries, and its management team will remain in place, ensuring continuity and leveraging over two decades of experience to drive future growth.

Statements from Leadership

Thomas Amell, President and CEO of Pioneer:
“Targeted Lending represents a compelling strategic fit for Pioneer and advances our More Than a Bank® strategy by diversifying our income sources and launching a new national lending division focused on financing essential business equipment. This acquisition enhances our ability to deliver a more comprehensive set of financial solutions to business owners throughout their growth lifecycle, while adding a seasoned team with a scalable, performance-driven operating model and deep industry relationships.”

Brian Gallo, CEO of Targeted Lending:
“Joining forces with Pioneer enables us to accelerate growth of our equipment finance platform while expanding opportunities for our clients and employees. Pioneer’s stellar reputation as a financial institution and employer of choice make it an ideal partner as we continue to deliver high-quality specialty lending solutions nationwide.”

Implications for Shareholders and Potential Share Price Impact

• Revenue Diversification: The addition of Targeted Lending’s equipment finance operations is expected to diversify Pioneer’s revenue streams and reduce reliance on traditional banking products, potentially leading to more stable and recurring income.
• Expansion into National Markets: By launching a new Specialty Financing division with a nationwide reach, Pioneer positions itself to grow beyond its current geographic footprint, targeting a broader base of business clients.
• Experienced Management Retained: The retention of Targeted Lending’s experienced leadership and staff may reduce integration risk and accelerate the realization of synergies.
• Performance-Based Earn-Out: Part of the transaction value is contingent on future performance, which may help align interests and drive post-acquisition growth.
• Potential Share Price Sensitivity: The deal increases Pioneer’s exposure to equipment financing, which is generally considered a stable, asset-backed lending segment. If the integration is successful and the Specialty Financing division grows as anticipated, the transaction could be accretive to earnings and positively impact share value. However, shareholders should also weigh potential risks, such as credit quality in the equipment finance portfolio and integration challenges.

Forward-Looking Statements and Risk Factors

This announcement includes forward-looking statements regarding the anticipated benefits and future performance resulting from the acquisition. Actual outcomes may differ materially due to a variety of risks, including market conditions, integration risks, credit performance of the acquired portfolio, and other factors disclosed in the company’s SEC filings. Shareholders are cautioned not to place undue reliance on forward-looking statements and to review the company’s annual and quarterly reports for additional risk disclosures.

Contact and Additional Information

For further information, investors should contact:
Patrick J. Hughes
Executive Vice President and Chief Financial Officer
(518) 730-3025
[email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisors before making any investment decisions. Forward-looking statements are inherently uncertain and actual results may differ materially from those anticipated.

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