ACQUISITIONS |
3 Months Ended |
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Mar. 31, 2026 | |
| ACQUISITIONS | |
| ACQUISITIONS | 3.ACQUISITIONS Targeted Lending Co., LLC On April 24, 2026, the Bank completed the acquisition of 100% of the membership interests of Targeted Lending Co., LLC (“Targeted Lending”), an independent equipment financing company with approximately $120 million of loans on its balance sheet. The all-cash transaction is valued at approximately $140 million in enterprise value, subject to potential adjustments for performance-based earn-out over a three-year period. The aggregate consideration for Targeted Lending consisted of a base purchase price of approximately $54 million, subject to a customary post-closing purchase price adjustment mechanism based on the final determination of closing indebtedness of Targeted Lending and transaction expenses. In connection with the transaction, the Bank also repaid approximately $88 million in then-outstanding credit facility indebtedness of Targeted Lending. The Company’s accounting for the acquisition has not been finalized as the Company continues to evaluate the post-closing adjustment amount and will disclose the preliminary allocation of consideration or other information required by Accounting Standard Codification 805, Business Combinations, in the second quarter of 2026. The signing and closing of the transaction occurred simultaneously on April 24, 2026. Targeted Lending, as a wholly owned subsidiary of the Bank, will operate as the newly formed Specialty Financing division, expanding the Bank’s commercial lending capabilities and extending the Bank’s reach into nationwide equipment finance markets. Targeted Lending through its originator-centric equipment finance platform provides financing solutions for essential, income-producing equipment, offering loans to small and mid-sized businesses across diverse industries. Other Acqusitions On April 20, 2026, the Company, through its subsidiary Pioneer Insurance Agency, Inc., completed the acquisitions of certain assets of Reiser Consulting Group, Inc. of Albany, NY and Wyndham Benefits, LLC of Ballston Spa, NY. The Company paid an aggregate of $1.2 million in cash and recorded $645,000 in contingent consideration payable to acquire the assets. The acquisitions of Reiser Consulting Group, Inc. and Wyndham Benefits, LLC were made to expand the Company’s employee benefit products and services.
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