Middlesex Water lifts earnings to $18 million, while Pioneer falls to $85,000

Key Facts

Middlesex Water reported net income of $18.0 million in the third quarter of 2026, with diluted earnings per share of $0.95, compared with $14.0 million and $0.77 per share in the same period of 2025. By contrast, Pioneer Bancorp’s net income fell to $85,000, or about $0.00 per basic and diluted share, from $4.3 million and $0.18 per share a year earlier. Pioneer said the quarter’s results included a litigation-related expense of $6.2 million, recognized in connection with the resolution of pending claims. The companies reported results for the period ended September 30, 2026, but their performance reflected different paths: earnings growth at the water utility and a sharp contraction in the bank’s profit. Middlesex attributed its results to wholesale demand, higher customer consumption and continued execution of its regulatory strategy.

Middlesex operating revenue was $60.2 million for the quarter, up $6.1 million from the same period a year earlier. The company said revenue from the Middlesex system benefited from higher wholesale demand, customer consumption and base rate increases. Growth in consumption and customer numbers, along with pricing, also supported Tidewater revenue, according to the company’s filing. Middlesex said the strong results reflected “increased wholesale demand, higher customer consumption, and continued execution of our regulatory strategy.” The year-over-year comparison shows that revenue growth was accompanied by higher net income and earnings per share during the quarter.

Middlesex allocated about $84 million during the nine months ended September 30 to develop, replace and strengthen the resilience of its water and wastewater facilities. That spending represents about 67% of its 2026 annual investment plan, which totals nearly $126 million. In September, the company filed two petitions with the New Jersey Board of Public Utilities seeking additional annual revenue of $0.8 million and $1.7 million, respectively. The requests relate to its resiliency and environment system improvement charge and distribution system improvement charge, according to the company’s filing. The requests remain part of its regulatory process, which it said was among the drivers of quarterly results.

Pioneer’s net loans stood at $1.94 billion on September 30, up 17.6% since the end of 2025, while deposits reached $2.13 billion, up 22.5% over the same period. The net interest margin for the quarter rose to 4.26% from 4.16% a year earlier, while the margin for the first nine months climbed to 4.21% from 4.10%. The company attributed the growth in interest income mainly to a 26-basis-point increase in the average yield on interest-earning assets and a $276.5 million increase in their average balances. This was partly offset by a five-basis-point increase in the average cost of interest-bearing liabilities and a $286.2 million increase in their average balances. The chief executive said “the benefits of this positive momentum exceeded the costs of resolving the legal matters we recognized during this quarter.”

Pioneer’s noninterest expenses rose 57.4% to $27.7 million in the quarter, compared with $17.6 million in the same period of 2025. The company attributed the increase mainly to professional fees, litigation expenses, salaries and benefits. At the same time, noninterest income rose to $5.5 million from $3.8 million, an increase of $1.7 million, or 44.3%. The company said the increase was mainly related to insurance and wealth management services income, bank fees and gains on loan sales. Nonperforming assets declined to $10.8 million, or 0.42% of total assets, on September 30, from $11.3 million and 0.52% at the end of 2025.

Pioneer said it reached preliminary agreements in October 2026 with Southwestern Payroll Services, Granite Solutions Groupe and National Payment Corp. to settle all claims against it and its bank subsidiary in lawsuits pending in the U.S. District Court for the Northern District of New York. The proposed settlements remain subject to the execution of final agreements and the filing of motions to dismiss the lawsuits in their entirety with prejudice. In trading on October 30, Middlesex shares closed at $56.79, while Pioneer shares closed at $18.03. Neither filing specified a later date for completing the settlement process or Middlesex’s regulatory requests.