STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2024

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

19.         STOCK-BASED COMPENSATION

In May 2021, the Company adopted the Pioneer Bancorp, Inc. 2020 Equity Incentive Plan (the “Stock Plan”). Under the terms of the Stock Plan, equity-based awards are granted to directors and employees to better align the interests of its employees and directors with those of the stockholders. Stock options and restricted stock awards granted typically vest over a period of five years. The total number of shares of the Company common stock authorized for issuance under the plan is 1,782,068 shares. At December 31, 2024, there were 547,068 shares available to be granted. There were no shares issued under the Stock Plan prior to the year ended June 30, 2024.

Stock Options

Stock options may be granted at a price no less than the greater of the par value or fair market value of such shares on the date on which such option is granted, and generally expire ten years from the date of grant.  The options usually vest over a five-year period unless forfeited prior to vesting in accordance with the term of the award.

The following table summarizes information about stock option activity for the six months ended December 31, 2024.

					Weighted Average
					Remaining		Aggregate
			Weighted Average		Contractual		Intrinsic Value
	Shares		Exercise Price		Life (in years)		(000)'s
Outstanding at July 1, 2024		830,000	$	9.39
Granted		10,000	$	11.77
Exercised		-	$	-
Forfeited		-	$	-
Outstanding at December 31, 2024		840,000	$	9.42		9.39	$	1,765
Vested at period-end		-	$	-
Expected to vest		840,000	$	9.42		9.39	$	1,765

The following is the schedule of stock options granted under the Stock Plan by exercise price range.

		Exercise Price Ranges
		$9.39		$11.77		Total
Outstanding at December 31, 2024
Number of Stock Options Outstanding		830,000		10,000		840,000
Weighted-Average Remaining Contractual Life (in years)		9.38		9.96		9.39
Weighted-Average Exercise Price	$	9.39	$	11.77	$	9.42

The fair value of each option is estimated on the date of grant using a Black-Scholes Option-Pricing Model that uses the assumptions noted in the following table. Expected volatilities are based on the historical volatility of the Company stock and other factors. The expected term of options granted is derived by using the simplified method as the Company has no relevant exercise experience from other stock-based compensation plans prior to the awards granted during the year ended June 30, 2024 under the Stock Plan.  The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The following is the schedule of other information on stock options granted.

		During the six months ended			During the fiscal year ended
		December 31, 2024			June 30, 2024
Weighted average grant date information
Stock options granted		10,000			830,000
Fair value of options granted	$	4.69		$	3.85
Fair value assumptions:
Expected volatility		30.19	%		31.34	%
Dividend yield		-	%		-	%
Risk free interest rate		4.18	%		4.31	%
Expected lives (in years)		6.50			6.50
Amount expensed during the period (in thousands)	$	320		$	72
Compensation costs for non-vested awards not yet recognized (in thousands)	$	2,851		$	3,124
Weighted average expected vesting period, in years		2.40			2.89
Proceeds from stock options exercised	$	-		$	-
Tax benefits related to stock options exercised	$	-		$	-
Intrinsic value of stock options exercised	$	-		$	-

Restricted Stock

Granted restricted stock awards gives the recipient the right to receive shares of Company stock upon vesting. The fair value of each restricted stock award is the market value of the Company stock on the date of the grant. Generally the restricted stock awards vest over a five-year period unless forfeited prior to vesting in accordance with the term of the award.

The following table summarizes information about restricted stock activity for the six months ended December 31, 2024.

		Weighted Average
		Grant Date
	Shares	Fair Value
Non-vested at July 1, 2024	390,000	$	9.39
Granted	5,000		11.77
Vested	-		-
Non-vested at December 31, 2024	395,000		9.42

The following table presents information on the amounts expensed related to restricted stock awarded pursuant to the Stock Plan for the six months ended December 31, 2024.

Amount expensed during the year (in thousands)	$	367
Compensation costs for non-vested awards not yet recognized (in thousands)	$	3,272
Weighted average expected vesting period, in years		2.40