Pathfinder Bancorp, Inc. Announces First Quarter 2021 Net Income of $2.2 Million, an Increase of 27.5% over 2020
Pathfinder Bancorp, Inc. (PBHC) reported a net income of $2.2 million for Q1 2021, a 27.5% increase year-over-year. Revenue reached $10.4 million, up 9.2% from Q1 2020. Total loans increased by 15.3% to $865.3 million, and deposits rose by 18.8% to $1.07 billion. Net interest income grew by 10% to $8.6 million despite a decline in net interest margin to 2.85%. The quarterly cash dividend was raised by 16.7% to $0.07 per share. The company maintains low net loan charge-offs at 0.05%, but nonperforming loans remain at 2.47%, influenced by pandemic-related challenges.
- Net income of $2.2 million, up 27.5% from Q1 2020.
- Revenue increased to $10.4 million, a 9.2% rise year-over-year.
- Total loans grew by 15.3% to $865.3 million.
- Deposits increased by 18.8% to $1.07 billion.
- Net interest income rose by 10% to $8.6 million.
- Net interest margin declined to 2.85%, down 18 basis points.
- Nonperforming loans to total loans at 2.47%, showing ongoing credit quality concerns.
Strong Loan and Deposit Growth in the Quarter Quarterly Cash Dividend Increased
OSWEGO, N.Y., May 03, 2021 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (“Company”) (NASDAQ: PBHC), the holding company for Pathfinder Bank (“Bank”), announced first quarter 2021 net income of
2021 First Quarter Performance Highlights
- Total interest-earning assets at March 31, 2021 were
$1.2 billion , an increase of$231.2 million , or23.0% , compared to$1.0 billion at March 31, 2020 and an increase of$77.9 million , or6.7% , compared to$1.2 billion at December 31, 2020. - Total loans at March 31, 2021 were
$865.3 million , an increase of$114.8 million , or15.3% , compared to$750.5 million at March 31, 2020 and an increase of$39.8 million , or4.8% , compared to$825.5 million at December 31, 2020. - Total deposits at March 31, 2021 were
$1.07 billion , an increase of$169.0 million , or18.8% , compared to$899.9 million at March 31, 2020 and an increase of$73.0 million , or7.3% , compared to$995.9 million at December 31, 2020. - Total net interest income, before the provision for loan losses, for first quarter 2021 increased by
$781,000 , or10.0% , to$8.6 million from$7.8 million for the prior year period. - Funding costs declined to
0.97% , a reduction of 52 basis points from1.49% in the first quarter of 2020.
“At the 12-month mark of the COVID-19 pandemic, our team continues to perform above and beyond expectations, going the extra mile to help our customers weather the pandemic’s economic challenges,” said Thomas W. Schneider, President and Chief Executive Officer. “Along with helping our customers navigate this difficult time, our team’s efforts are providing strong top- and bottom-line results that benefit our shareholders. First quarter total revenue improved by more than
“This was another in a series of solid quarterly performances in an economic environment that remains challenging. We continue to closely monitor credit quality and respond appropriately to evolving customer circumstances on a case-by-case basis. Net loan charge-offs remained minimal at an annualized rate of
“Loan and deposit growth remained a significant strength in the first quarter, much as it has during the last 12 months. We added more than
“During March, our Board of Directors determined that it was appropriate to raise our quarterly cash dividend to
Income Statement for the Quarter Ended March 31, 2021
Net Interest Income
First quarter 2021 net interest income was
| (Unaudited) | For the three months ended | ||||||||||||||
| (In thousands, except per share data) | March 31, 2021 | March 31, 2020 | Change | ||||||||||||
| Interest and dividend income: | |||||||||||||||
| Loans, including fees | $ | 8,847 | $ | 9,242 | $ | (395 | ) | -4.3 | % | ||||||
| Debt securities: | |||||||||||||||
| Taxable | 1,976 | 1,692 | 284 | 16.8 | % | ||||||||||
| Tax-exempt | 29 | 7 | 22 | 314.3 | % | ||||||||||
| Dividends | 87 | 70 | 17 | 24.3 | % | ||||||||||
| Federal funds sold and interest earning deposits | 3 | 32 | (29 | ) | -90.6 | % | |||||||||
| Total interest and dividend income | 10,942 | 11,043 | (101 | ) | -0.9 | % | |||||||||
| Interest expense: | |||||||||||||||
| Interest on deposits | 1,527 | 2,556 | (1,029 | ) | -40.3 | % | |||||||||
| Interest on short-term borrowings | 3 | 57 | (54 | ) | -94.7 | % | |||||||||
| Interest on long-term borrowings | 295 | 445 | (150 | ) | -33.7 | % | |||||||||
| Interest on subordinated loans | 557 | 206 | 351 | 170.4 | % | ||||||||||
| Total interest expense | 2,382 | 3,264 | (882 | ) | -27.0 | % | |||||||||
| Net interest income | 8,560 | 7,779 | 781 | 10.0 | % | ||||||||||
| Provision for loan losses | 1,028 | 1,067 | (39 | ) | -3.7 | % | |||||||||
| Net interest income after provision for loan losses | 7,532 | 6,712 | 820 | 12.2 | % | ||||||||||
Provision for Loan Losses
The first quarter 2021 provision for loan losses was
Noninterest Income
First quarter 2021 noninterest income was
The following table details the components of noninterest income for the quarters ended March 31, 2021 and 2020:
| (Unaudited) | For the three months ended | ||||||||||||||
| (Dollars in thousands) | March 31, 2021 | March 31, 2020 | Change | ||||||||||||
| Service charges on deposit accounts | $ | 331 | $ | 356 | $ | (25 | ) | -7.0 | % | ||||||
| Earnings and gain on bank owned life insurance | 125 | 116 | 9 | 7.8 | % | ||||||||||
| Loan servicing fees | 90 | 49 | 41 | 83.7 | % | ||||||||||
| Debit card interchange fees | 221 | 163 | 58 | 35.6 | % | ||||||||||
| Insurance agency revenue | 280 | 337 | (57 | ) | -16.9 | % | |||||||||
| Other charges, commissions and fees | 243 | 223 | 20 | 9.0 | % | ||||||||||
| Noninterest income before gains (losses) | 1,290 | 1,244 | 46 | 3.7 | % | ||||||||||
| Net gains on sales and redemptions of investment securities | - | 26 | (26 | ) | -100.0 | % | |||||||||
| Gains/(losses) on marketable equity securities | 234 | (194 | ) | 428 | 220.6 | % | |||||||||
| Net gains on sales of loans and foreclosed real estate | 120 | 672 | (552 | ) | -82.1 | % | |||||||||
| Gains on sale of fixed assets | 201 | - | 201 | 100.0 | % | ||||||||||
| Total noninterest income | $ | 1,845 | $ | 1,748 | $ | 97 | 5.5 | % | |||||||
Noninterest Expense
Total noninterest expense for the first quarter of 2021 was
The following table details the components of noninterest expense for the quarters ended March 31, 2021 and 2020:
| (Unaudited) | For the three months ended | ||||||||||||||
| (Dollars in thousands) | March 31, 2021 | March 31, 2020 | Change | ||||||||||||
| Salaries and employee benefits | $ | 3,341 | $ | 3,247 | $ | 94 | 2.9 | % | |||||||
| Building and occupancy | 793 | 754 | 39 | 5.2 | % | ||||||||||
| Data processing | 676 | 600 | 76 | 12.7 | % | ||||||||||
| Professional and other services | 417 | 316 | 101 | 32.0 | % | ||||||||||
| Advertising | 246 | 176 | 70 | 39.8 | % | ||||||||||
| FDIC assessments | 198 | 189 | 9 | 4.8 | % | ||||||||||
| Audits and exams | 202 | 125 | 77 | 61.6 | % | ||||||||||
| Insurance agency expense | 202 | 192 | 10 | 5.2 | % | ||||||||||
| Community service activities | 48 | 107 | (59 | ) | -55.1 | % | |||||||||
| Foreclosed real estate expenses | 6 | 30 | (24 | ) | -80.0 | % | |||||||||
| Other expenses | 507 | 509 | (2 | ) | -0.4 | % | |||||||||
| Total noninterest expenses | $ | 6,636 | $ | 6,245 | $ | 391 | 6.3 | % | |||||||
Balance Sheet at March 31, 2021
The Company’s total assets at quarter end were
Total deposits at March 31, 2021 were
Subordinated loans were
Shareholders’ equity was
Asset Quality
The Bank’s asset quality metrics, as measured by net loan charge-offs to average loans, remained stable for the first quarter of 2021. Annualized net loan charge-offs to average loans were
Nonaccrual loans represented
The following table summarizes nonaccrual loans by category and status at March 31, 2021:
(Unaudited)
| Loan Type | Collateral Type | Number of Loans | Loan Balance | Average Loan Balance | Weighted LTV at Origination/ Modification | Status | Loan Balance In Deferral | ||||||||||||||
| Secured residential mortgage: | |||||||||||||||||||||
| Real Estate | 33 | $ | 2,899 | $ | 88 | 85 | % | Under active resolution management by the Bank. | $ | 107 | |||||||||||
| Secured commercial real estate: | |||||||||||||||||||||
| Hotel | 1 | 7,202 | 7,202 | 73 | % | Currently making principal and interest payments. The borrower has substantial deposits with the Bank. | - | ||||||||||||||
| Private Museum | 1 | 1,385 | 1,385 | 79 | % | The Bank is working on a modification with the borrower. The borrower has substantial deposits with the Bank. | - | ||||||||||||||
| Recreational | 1 | 1,234 | 1,234 | 50 | % | The loan is currently classified as a Troubled Debt Restructuring (TDR). Next payment is due June 1, 2021. | 1,234 | ||||||||||||||
| All other | 11 | 1,629 | 148 | 86 | % | Under active resolution management by the Bank. | 259 | ||||||||||||||
| Commercial lines of credit | 5 | 196 | 39 | N/A | Under active resolution management by the Bank. | - | |||||||||||||||
| Commercial and industrial: |
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FAQ
What was Pathfinder Bancorp's net income for Q1 2021?
Pathfinder Bancorp reported a net income of $2.2 million for Q1 2021.
How much did Pathfinder Bancorp increase its quarterly cash dividend?
Pathfinder Bancorp increased its quarterly cash dividend by 16.7% to $0.07 per share.
What are the total loans for Pathfinder Bancorp as of March 31, 2021?
Total loans for Pathfinder Bancorp were $865.3 million as of March 31, 2021.
What was the percentage increase in deposits for Pathfinder Bancorp in Q1 2021?
Deposits increased by 18.8% to $1.07 billion in Q1 2021.
What is the net interest margin reported by Pathfinder Bancorp for Q1 2021?
The net interest margin for Pathfinder Bancorp in Q1 2021 was 2.85%.
Pathfinder Bancorp Inc
NASDAQ:PBHCPBHC RankingsPBHC Latest NewsSep 30, 2024
Pathfinder Bancorp, Inc. Declares Dividend
PBHC Stock Data
107.97M
4.27M
27.48%
29.56%
0.07%
Banks - Regional
State Commercial Banks
United States of America
OSWEGO
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