Pioneer Goes National with $140M Specialty Finance Acquisition

ALBANY, NY – April 24, 2026 – Pioneer Bancorp, Inc. (NASDAQ: PBFS), a cornerstone of New York's Capital Region banking scene, today announced a definitive strategic leap onto the national stage with the acquisition of Targeted Lending Co., LLC. The all-cash transaction, valued at approximately $140 million, creates a new national lending division and signals a significant diversification of Pioneer's traditional banking model.

Targeted Lending, an independent equipment financing company with a robust $120 million loan portfolio, will now operate as a wholly owned subsidiary under the new banner of Pioneer Specialty Financing. This move instantly extends Pioneer's reach from its 23 New York offices to a nationwide footprint, targeting the vibrant market of small and mid-sized businesses (SMBs) in need of essential equipment financing.

Thomas Amell, President and CEO of Pioneer, framed the acquisition as a pivotal execution of the company's long-term vision. “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,” Amell stated. “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.”

A Strategic Pivot Beyond Regional Borders

This acquisition is more than just an expansion of assets; it's a calculated pivot for a financial institution with over $2 billion in assets that has been primarily focused on its regional community. By acquiring a specialist in a high-demand niche, Pioneer is following a path forged by other forward-thinking banks looking to build resilience and find new avenues for growth outside of conventional lending.

The move aligns with a broader industry trend where regional banks are actively acquiring specialty finance firms to deploy capital, diversify revenue streams, and gain immediate access to niche expertise and established platforms. Rather than building a national equipment finance operation from the ground up, Pioneer has purchased a proven performer with a strong track record.

Targeted Lending's history demonstrates its value. The company reported a remarkable 65% year-over-year portfolio growth in mid-2024 and has consistently increased its loan originations, processing over $400 million in applications in 2021 alone. Its success in securing an expanded $125 million credit facility from Wells Fargo earlier this year underscored its strong portfolio performance and disciplined underwriting—qualities that undoubtedly made it an attractive target for Pioneer.

Fueling the Engine of the American Economy

At the heart of this deal is a focus on the small and mid-sized businesses that form the backbone of the U.S. economy. The new Pioneer Specialty Financing division will continue Targeted Lending's mission of providing loans up to $400,000 for essential, income-producing equipment across a wide array of industries, including hospitality, medical, construction, and transportation.

Targeted Lending built its reputation on an “originator-centric” platform, combining commonsense credit strategies with powerful technology tools. This approach empowers loan originators and provides transparency and efficiency, a model that Pioneer will now leverage on a larger scale. For SMBs, this means continued, and likely enhanced, access to capital for everything from new IT hardware and restaurant ovens to durable medical equipment and construction vehicles.

Leadership continuity is a cornerstone of the integration strategy, ensuring this specialized focus is not lost. Brian Gallo, the CEO of Targeted Lending, will helm the new Pioneer Specialty Financing division, bringing his entire management team with him. The team boasts over two decades of collective experience in the specialty lending sector.

“Joining forces with Pioneer enables us to accelerate growth of our equipment finance platform while expanding opportunities for our clients and employees,” said Gallo. “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.”

A Calculated Bet on a Booming Market

Pioneer’s $140 million investment, which includes a potential performance-based earn-out over three years, represents a significant but calculated wager on the future of the equipment finance industry. Market projections support the move, with the sector forecast to grow by 2.4% in 2025 and over 7% in the next three years, potentially nearing a $1.5 trillion valuation.

The small-ticket segment, Targeted Lending's specialty, is particularly robust, having seen a 7.2% increase in new business volume in 2023. This growth is fueled by several factors, including anticipated interest rate cuts and the relentless pace of technological advancement. The rise of Artificial Intelligence, for example, is accelerating equipment refresh cycles for IT infrastructure, creating sustained demand for financing solutions that preserve capital.

By acquiring Targeted Lending, Pioneer not only buys into this growth but also inherits a team adept at navigating the sector's complexities. The equipment finance landscape is marked by a patchwork of state-level regulations and evolving federal compliance requirements under laws like the Dodd-Frank Act. The expertise of the incoming team in managing these challenges is an invaluable asset that mitigates risk for Pioneer as it enters the national arena. The acquisition effectively provides Pioneer with a turnkey solution to capitalize on a thriving market, complete with the necessary platform, personnel, and portfolio to compete immediately.