Pathfinder Bancorp, Inc. Announces First Quarter 2024 Net Income of $2.1 Million
Pathfinder Bancorp, Inc. reported first quarter 2024 net income of $2.1 million, a decrease from the prior year. The bank showed strong growth in interest and dividend income but faced challenges with increasing interest expenses. The company remains focused on strategic growth and prudent expense management, aiming to enhance shareholder value amidst economic uncertainties.
Increased interest and dividend income by 23.7% to $18.6 million for the quarter.
Announced an 11.1% increase in quarterly dividend to $0.10 per share.
Maintained stable net interest income before provisions for credit losses despite rising funding costs.
Showed resilience in generating profitability with a diverse portfolio of interest-earning assets.
Displayed a strong financial position with total assets reaching $1.45 billion and shareholders' equity growing to $121.8 million.
Net income decreased to $2.1 million from $2.6 million in the same period of 2023.
Total revenue decreased by 3.7% to $11.1 million for the first quarter of 2024.
Total loans decreased to $891.5 million, down $18.6 million from March 31, 2023.
Nonperforming loans to period-end loans ratio increased to 2.20%.
Return on average assets, return on average common equity, and net interest margin decreased quarter-over-quarter.
Insights
The decrease in Pathfinder Bancorp's net income from $2.6 million to $2.1 million reflects the broader economic context of rising interest rates, as indicated by a significant jump in interest expenses from $5.1 million to $9.2 million. Despite this, the company's ability to increase interest and dividend income by 23.7% to $18.6 million is a strong indicator of its diverse portfolio and strategic asset management. These figures are especially relevant given the inverted Treasury yield curve and high Fed funds rate, which create a challenging environment for financial institutions.
From a shareholder perspective, the bank's increase of its quarterly dividend by 11.1% to $0.10 per share is a strong signal of confidence in its financial health. The bank's focus on maintaining robust asset quality and sound credit decisions, as demonstrated by a provision for credit losses of $726,000, suggests a prudent approach to risk management. Investors may also take note of the bank's tangible book value per share growth to $19.21, which reinforces the bank's emphasis on building underlying shareholder value despite economic headwinds.
Pathfinder Bancorp's strategic growth initiatives, including the recent branch acquisition, are noteworthy. The acquisition represents a commitment to expanding the bank's footprint and increasing its market share. The commentary on Central New York's economic revitalization prospects, where Pathfinder is strategically invested, hints at potential regional growth that may benefit the bank and its stakeholders in the long term.
Another point of interest is the stable control of noninterest expenses, evidencing Pathfinder's prudent expense management and investments in technology. While the bank operates in a competitive landscape with pressures from non-local entities, its focus on maintaining liquidity to support growth and service enhancements is important for retail investors looking for stability and growth potential in the banking sector.
Strategic Growth and Prudent Expense Management Shape Bank Performance Despite Economic Challenges
OSWEGO, N.Y., April 29, 2024 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (“Company”) (NASDAQ: PBHC), the holding company for Pathfinder Bank (“Bank”), announced first quarter 2024 net income available to common shareholders of
Performance Highlights for Three Months Ended March 31, 2024:
- The Bank's Board of Directors announced an
11.1% increase in its quarterly dividend to$0.10 per share. - Pathfinder Bancorp, Inc. reported an increase in interest and dividend income of
23.7% to$18.6 million for the quarter ended March 31, 2024, up from$15.0 million in the same period of 2023. - Total interest expense for the three months ended March 31, 2024, increased to
$9.2 million , up81.5% from$5.1 million in the first quarter of 2023. - Net interest income after provision for credit losses totaled
$8.7 million for the quarter, a decrease from the$9.3 million after provision reported for the corresponding quarter of 2023. - Net interest margin for the quarter decreased to
2.75% , a 27 basis points change from3.02% reported in the same prior year quarter. - Noninterest income for the quarter reached
$1.7 million and reflected modest growth from$1.6 million in the first quarter of 2023. - Noninterest expenses for the quarter totaled
$7.7 million , a slight increase from$7.5 million in the same period last year. - The Company’s net income for the quarter decreased to
$2.1 million from the$2.6 million reported in the same period of 2023. - Total loans decreased to
$891.5 million at the end of the first quarter of 2024, down$18.6 million , or2.0% , from March 31, 2023, and$5.7 million or0.6% from December 31, 2023.
Pathfinder Bancorp, Inc. entered the first quarter of 2024 with a foundation grounded in effective risk management and guided by its measured plans for continued strategic growth. In a financial landscape marked by elevated interest rates and frequent shifts in economic forecasts, the Bank has adeptly navigated these challenges, reinforcing its commitment to enhancing shareholder value. James A. Dowd, President and Chief Executive Officer, commented: "Leveraging proactive financial management and strategic foresight, we successfully navigated the complexities of this quarter, affirming our path toward continued progress."
Dowd noted that the Treasury yield curve remained inverted (short term interest rates higher than long term interest rates) for the entirety of the first quarter of 2024, as it was in all of 2023. The Treasury yield curve was inverted by an average of
“The Company’s financial results for the quarter ended March 31, 2024, were notably strong, considering this economic backdrop, displaying a significant
Dowd stated that the relatively modest decline in net income to
Despite quarter-over-quarter decreases in key profitability metrics - return on average assets at
Looking forward, Dowd expressed optimism, "We remain strategically positioned at the forefront of emerging opportunities within our markets in 2024 and beyond, and are focused on maintaining superior asset quality, making sound credit decisions, and responding to our customers' evolving needs. Although direct comparisons year-over-year should be viewed in the context of current market conditions, our core strengths and the adaptability of our dedicated team prepare us to confront immediate challenges and seize the opportunities on the horizon." He highlighted recent strategic initiatives, including a significant branch acquisition announced in the first quarter of 2024, and discussed below, that underscores the Company’s commitment to excellence in all facets of our operations. “As Central New York undergoes what we believe will be a very impressive economic revitalization, Pathfinder is primed to leverage its significant regional investments,” Dowd stated.
“Moreover, our operational efficiency is evident in the stable management of noninterest expenses, highlighting our cost control measures and investments in technological solutions poised to enhance future operational efficiency. Additionally, the competitive landscape, with pressures from non-local deposit gathering entities, challenges us to maintain deposit levels, prioritizing liquidity to support a base for continued growth and service enhancement.”
“Pathfinder’s forward-looking statements are grounded in recent strategic actions, most notably, the announced signing of a purchase and assumption agreement for a branch in East Syracuse. The branch will add nearly
"Looking ahead, the Bank’s management and Board of Directors maintain a positive outlook, bolstered by recent strategic successes like the pending East Syracuse branch acquisition and an increasingly robust presence in the swiftly evolving Central New York economic landscape. The Bank's leadership remains committed to navigating the ongoing economic challenges while seizing the opportunities for growth and profitability that will undoubtedly arise. With careful management of assets, liabilities, and a steady approach to cost control, Pathfinder Bancorp, Inc. is poised to continue its trajectory of responsible growth and shareholder value enhancement,” Mr. Dowd concluded.
Income Statement for the Quarter Ended March 31, 2024
Net income for the quarter was
The provision for credit losses for the quarter stood marginally higher at
Noninterest income experienced modest growth, rising to
Noninterest expense witnessed a slight escalation to
As the quarter closed, key profitability ratios such as the return on average assets were calculated at
Components of Net Interest Income
During the first quarter of 2024 Pathfinder Bancorp, Inc. navigated through a financial environment with mixed outcomes reflected in its net interest income components. The Company's net interest income before provision for credit losses experienced a downturn and contracted by
The interest and dividend income for the quarter stood at
However, these positive trends were counterbalanced by a pronounced increase in total interest expense, which increased to
The net result was a net interest margin of
Provision for Credit Losses
Pathfinder Bancorp, Inc. demonstrated its cautious and prudent risk management philosophy, and reported a provision for credit losses of
The Bank's management continues to diligently monitor credit portfolios, particularly those considered sensitive to prevailing economic stressors. The Bank steadfastly applies conservative loan classification and reserve building methodologies, which are deeply ingrained in its operational framework. This steadfast approach is deemed essential in maintaining the integrity of the loan portfolio and in safeguarding the Bank’s long-term financial stability.
Noninterest Income
In the first quarter of 2024, Pathfinder Bancorp, Inc. demonstrated a notable advancement in its financial strategy, as evidenced by the growth in noninterest income to
Enhancements to the Bank’s noninterest income streams, which exclude the less predictable components such as market-driven gains or losses on securities, point to Pathfinder’s commitment to fortifying its revenue base against economic fluctuations. A deepened focus on areas such as wealth management, payment processing services, and treasury management has been central to this growth. Notably, other operating income has seen a healthy increase, likely bolstered by the Bank’s strategic initiatives in technological innovation and expanded service offerings.
This steady growth in noninterest income highlights the efficacy of the Bank's strategies in an environment where interest-based revenue can be uncertain. Pathfinder Bancorp's deliberate emphasis on broadening its income-generating activities demonstrates foresight and adaptability, ensuring that it can continue to thrive even amidst shifting financial tides.
Looking to the future, the Bank is well-positioned to continue this trajectory, with plans to invest further in areas that promise robust fee income potential. As Pathfinder Bancorp harnesses opportunities in digital banking, asset management, and other emergent financial services, it maintains a solid foundation to support sustainable growth. The Bank is resolute in its commitment to leveraging its strengths in these areas to continue providing value to its shareholders and enhancing its market competitiveness.
The increased noninterest income reflects not just the Bank's ability to adapt to changing economic landscapes, but also its proactive approach in seeking out and capitalizing on new revenue opportunities. As the Bank moves forward with its growth strategy, noninterest income is anticipated to play an increasingly vital role in maintaining a well-balanced and resilient financial profile.
The following table details the components of noninterest income for the three months ended March 31, 2024, and 2023:
| For the three months ended, | ||||||||||||||||
| (In thousands) | March 31, 2024 | March 31, 2023 | Change | |||||||||||||
| Service charges on deposit accounts | $ | 309 | $ | 267 | $ | 42 | 15.7 | % | ||||||||
| Earnings and gain on bank owned life insurance | 157 | 158 | (1 | ) | -0.6 | % | ||||||||||
| Loan servicing fees | 88 | 72 | 16 | 22.2 | % | |||||||||||
| Debit card interchange fees | 119 | 321 | (202 | ) | -62.9 | % | ||||||||||
| Insurance agency revenue | 397 | 420 | (23 | ) | -5.5 | % | ||||||||||
| Other charges, commissions and fees | 444 | 256 | 188 | 73.4 | % | |||||||||||
| Noninterest income before gains | 1,514 | 1,494 | 20 | 1.3 | % | |||||||||||
| (Losses) gains on sales and redemptions of investment securities | (148 | ) | 73 | (221 | ) | -302.7 | % | |||||||||
| Gain on sales of loans and foreclosed real estate | 18 | 25 | (7 | ) | -28.0 | % | ||||||||||
| Non-recurring gain on lease renegotiations | 245 | - | 245 | |||||||||||||
| Gains on marketable equity securities | 108 | - | 108 | |||||||||||||
| Total noninterest income | $ | 1,737 | $ | 1,592 | $ | 145 | 9.1 | % | ||||||||
The aggregate increase of
Other charges, commissions and fees increased by
The
Noninterest Expense
Pathfinder Bancorp, Inc. experienced a modest increase in total noninterest expenses, which climbed to
The remainder of the increase in noninterest expenses during the first quarter of 2024, as compared to the first quarter of 2023, totaling
Pathfinder anticipates further increases in personnel expenses as it continues to fill vacancies and make targeted compensation adjustments. These planned investments in its workforce are key to retaining top talent and ensuring the Bank's personnel are well-equipped to deliver exceptional service. Such strategic staffing enhancements are integral to maintaining Pathfinder Bancorp's competitive position and achieving long-term success in the dynamic banking landscape.
Overall, the Bank's prudent management of noninterest expenses, coupled with strategic investments in its branches and staff, underscores its commitment to operational excellence and robust financial health. As Pathfinder Bancorp continues to expand and refine its operations, these expenditures are expected to yield significant benefits in customer satisfaction and operational efficiency thereby supporting the Bank's broader strategic objectives.
The following table details the components of noninterest expense for the three months ended March 31, 2024, and 2023:
| Unaudited | For the three months ended | |||||||||||||||
| (In thousands) | March 31, 2024 | March 31, 2023 | Change | |||||||||||||
| Salaries and employee benefits | $ | 4,329 | $ | 4,183 | $ | 146 | 3.5 | % | ||||||||
| Building and occupancy | 816 | 852 | (36 | ) | -4.2 | % | ||||||||||
| Data processing | 528 | 553 | (25 | ) | -4.5 | % | ||||||||||
| Professional and other services | 562 | 536 | 26 | 4.9 | % | |||||||||||
| Advertising | 105 | 206 | (101 | ) | -49.0 | % | ||||||||||
| FDIC assessments | 229 | 219 | 10 | 4.6 | % | |||||||||||
| Audits and exams | 170 | 159 | 11 | 6.9 | % | |||||||||||
| Insurance agency expense | 285 | 261 | 24 | 9.2 | % | |||||||||||
| Community service activities | 52 | 30 | 22 | 73.3 | % | |||||||||||
| Foreclosed real estate expenses | 25 | 14 | 11 | 78.6 | % | |||||||||||
| Other expenses | 605 | 511 | 94 | 18.4 | % | |||||||||||
| Total noninterest expenses | $ | 7,706 | $ | 7,524 | $ | 182 | 2.4 | % | ||||||||
Statement of Financial Condition at March 31, 2024
As of March 31, 2024, Pathfinder Bancorp, Inc.'s statement of financial condition reflects total assets of
Additionally, interest-earning deposits experienced a significant reduction since December 31, 2023 from
With respect to liabilities, total deposits demonstrated strength, growing by
Shareholders' equity saw a rise of
As previously noted, the quarter also saw Pathfinder Bancorp, Inc. continue its growth strategy with the execution of an agreement to acquire an existing branch from another financial institution exiting the market. This branch has a large deposit base and will extend The Bank’s market presence and enhance accessibility for its customers. The strategic addition of this branch is anticipated to foster new customer relationships, deepen community ties, and stimulate future growth in both deposits and loan originations.
Asset Quality
Pathfinder Bancorp, Inc. remains vigilant in its oversight of asset quality, a cornerstone of the Bank’s risk management framework. As of the end of first quarter of 2024, the Bank has observed an improvement in asset quality metrics, indicative of effective credit risk controls and strategic loan portfolio management.
The Bank reported an increase in the nonperforming loans ratio from
Management continues to proactively monitor and address asset quality, including the close surveillance of nonaccrual loans. The reported ACL as of March 31, 2024, incorporates management’s estimates of future collectability, adjusting for current conditions and forward-looking economic forecasts. The Bank’s strategies, including the ongoing refinement of its credit risk practices, aim to bolster the loan portfolio against future uncertainties.
The following table summarizes nonaccrual loans by category and status at March 31, 2024:
| (In thousands) | ||||||||||||||||||
| Loan Type | Collateral Type | Number of Loans | Loan Balance | Average Loan Balance | Weighted LTV at Origination/ Modification | Status | ||||||||||||
| Secured residential mortgage: | ||||||||||||||||||
| Real Estate | 24 | $ | 1,775 | $ | 74 | 71 | % | Individual loans are under active resolution management by the Bank. | ||||||||||
| Secured commercial real estate: | ||||||||||||||||||
| Private Museum | 1 | 1,357 | 1,357 | 78 | % | The borrower is making interest only and escrow payments. Strategic initiatives are being implemented by the borrower that will provide cash flow for future debt requirements under a modified debt restructure. | ||||||||||||
| Office Space | 1 | 1,682 | 1,682 | 78 | % | The loan is secured by a first mortgage with strong tenancy and a long-term lease. The borrower is seeking outside financing and the Bank is in regular communication with the borrower. | ||||||||||||
| Recreation/Golf Course/Marina | 1 | 1,375 | 1,375 | 55 | % | The borrower is in the process of restructuring debt and loan payments for its seasonal business. | ||||||||||||
| All other | 10 | 2,134 | 213 | 130 | % | Individual loans are under active resolution management by the Bank. | ||||||||||||
| Commercial lines of credit: | 6 | 951 | 159 | (1 | ) | Individual lines are under active resolution management by the Bank. | ||||||||||||
| Commercial and industrial loans: | 19 | 6,806 | 358 | (1 | ) | Individual loans are under active resolution management by the Bank. | ||||||||||||
| Consumer loans: | 114 | 3,572 | 31 | (1 | ) | Individual loans are under active resolution management by the Bank. | ||||||||||||
| 176 | $ | 19,652 | ||||||||||||||||
(1) These loans were originated as unsecured or with minimal collateral.
Liquidity
Pathfinder Bancorp, Inc. has diligently ensured a strong liquidity profile as of March 31, 2024, to meet its ongoing financial obligations. The Bank's liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution's leadership.
In line with this strong liquidity stance, the Bank reported a modest rise in its nonbrokered deposit balances, which increased by
The Bank continues to fortify its liquidity position through established alliances, including its longstanding partnership with the Federal Home Loan Bank of New York ("FHLB-NY"). By the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of
Pathfinder Bancorp's vigilant oversight extends to continuous liquidity monitoring, ensuring that it is positioned to withstand financial market fluctuations. The Bank's deposit base remained demonstrably stable at
Cash Dividend Declared
On April 1, 2024, Pathfinder Bancorp, Inc. proudly declared its quarterly cash dividend, a testament to the Company’s enduring commitment to shareholder returns within a framework of risk management and financial stability. Consistent with the Company’s tradition of sharing success, the Board of Directors declared a cash dividend of
In addition, this dividend also extends to the notional shares of the Company's warrants, ensuring comprehensive inclusivity of all stakeholders in the Company's distribution of profits. Shareholders registered by April 19, 2024, will be eligible for the dividend, which is scheduled for disbursement on May 10, 2024. This distribution aligns with Pathfinder Bancorp, Inc.’s philosophy of consistent and reliable delivery of shareholder value.
Evaluating the Company's market performance, the closing stock price as of March 31, 2024, stood at
Pathfinder Bancorp, Inc. continues to navigate through economic cycles with a prudent and disciplined approach, ensuring that its capital distribution strategy is well-calibrated to support sustained growth and long-term shareholder wealth creation.
About Pathfinder Bancorp, Inc.
Pathfinder Bank is a New York State chartered commercial Bank headquartered in Oswego, whose deposits are insured by the Federal Deposit Insurance Corporation. The Bank is a wholly owned subsidiary of Pathfinder Bancorp, Inc., (NASDAQ SmallCap Market; symbol: PBHC). The Bank has eleven full-service offices located in its market areas consisting of Oswego and Onondaga Counties and one limited purpose office in Oneida County. Through its subsidiary, Pathfinder Risk Management Company, Inc., the Bank owns a
Forward-Looking Statement
Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project" or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.
This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
| PATHFINDER BANCORP, INC. FINANCIAL HIGHLIGHTS (Dollars and shares in thousands except per share amounts) | |||||||
| For the three months | |||||||
| ended March 31, | |||||||
| (Unaudited) | |||||||
| 2024 | 2023 | ||||||
| Condensed Income Statement | |||||||
| Interest and dividend income | $ | 18,610 | $ | 15,043 | |||
| Interest expense | 9,210 | 5,075 | |||||
| Net interest income | 9,400 | 9,968 | |||||
| Provision for credit losses | 726 | 692 | |||||
| Net interest income after provision for credit losses | 8,674 | 9,276 | |||||
| Noninterest income excluding net gains on sales of securities, loans and foreclosed real estate | 1,759 | 1,494 | |||||
| Net (losses) gains on sales of securities, fixed assets, loans and foreclosed real estate | (130 | ) | 98 | ||||
| Gains on marketable equity securities | 108 | - | |||||
| Noninterest expense | (7,706 | ) | (7,524 | ) | |||
| Income before income taxes | 2,705 | 3,344 | |||||
| Provision for income taxes | 532 | 669 | |||||
| Net income attributable to noncontrolling interest and Pathfinder Bancorp, Inc. | 2,173 | 2,675 | |||||
| Net income attributable to noncontrolling interest | 53 | 76 | |||||
| Net income attributable to Pathfinder Bancorp Inc. | $ | 2,120 | $ | 2,599 | |||
| As of and for the three months ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| 2024 | 2023 | 2023 | |||||||||
| Selected Balance Sheet Data | |||||||||||
| Assets | $ | 1,453,672 | $ | 1,465,798 | $ | 1,404,269 | |||||
| Earning assets | 1,369,222 | 1,383,557 | 1,322,850 | ||||||||
| Total loans | 891,531 | 897,207 | 910,154 | ||||||||
| Total deposits | 1,146,113 | 1,120,067 | 1,144,262 | ||||||||
| Borrowed funds | 137,446 | 175,599 | 99,205 | ||||||||
| Allowance for credit losses | 16,655 | 15,975 | 17,869 | ||||||||
| Subordinated debt | 29,961 | 29,914 | 29,777 | ||||||||
| Pathfinder Bancorp, Inc. Shareholders' equity | 121,818 | 119,495 | 111,700 | ||||||||
| Asset Quality Ratios | |||||||||||
| Net loan charge-offs to average loans | 0.01 | % | 0.47 | % | 0.01 | % | |||||
| Allowance for credit losses to period end loans | 1.87 | % | 1.78 | % | 1.96 | % | |||||
| Allowance for credit losses to nonperforming loans | 84.75 | % | 92.73 | % | 93.55 | % | |||||
| Nonperforming loans to period end loans | 2.20 | % | 1.92 | % | 2.10 | % | |||||
| Nonperforming assets to total assets | 1.36 | % | 1.19 | % | 1.38 | % | |||||
The above information is preliminary and based on the Company's data available at the time of presentation.
| PATHFINDER BANCORP, INC. FINANCIAL HIGHLIGHTS (Dollars and shares in thousands except per share amounts) | |||||||
| For the three months | |||||||
| ended March 31, | |||||||
| (Unaudited) | |||||||
| 2024 | 2023 | ||||||
| Key Earnings Ratios | |||||||
| Return on average assets | 0.59 | % | 0.75 | % | |||
| Return on average common equity | 7.01 | % | 9.20 | % | |||
| Return on average equity | 7.01 | % | 9.20 | % | |||
| Net interest margin | 2.75 | % | 3.02 | % | |||
| Share, Per Share and Ratio Data | |||||||
| Basic and diluted weighted average shares outstanding -Voting | 4,701 | 4,609 | |||||
| Basic and diluted earnings per share - Voting | $ | 0.34 | $ | 0.43 | |||
| Basic and diluted weighted average shares outstanding - Series A Non-Voting | 1,380 | 1,380 | |||||
| Basic and diluted earnings per share - Series A Non-Voting | $ | 0.34 | $ | 0.43 | |||
| Cash dividends per share | $ | 0.10 | $ | 0.09 | |||
| Book value per common share at March 31, 2024 and 2023 | $ | 19.97 | $ | 18.52 | |||
| Tangible book value per common share at March 31, 2024 and 2023 | $ | 19.21 | $ | 17.75 | |||
| Tangible common equity to tangible assets at March 31, 2024 and 2023 | 8.09 | % | 7.65 | % | |||
Throughout the accompanying document, certain financial metrics and ratios are presented that are not defined under generally accepted accounting principles (GAAP). Reconciliations of the non-GAAP financial metrics and ratios, presented elsewhere within this document, are presented below:
| As of and for the three months | |||||||
| ended March 31, | |||||||
| (Unaudited) | |||||||
| Non-GAAP Reconciliation | 2024 | 2023 | |||||
| Tangible book value per common share | |||||||
| Total equity | $ | 121,818 | $ | 111,700 | |||
| Intangible assets | (4,616 | ) | (4,632 | ) | |||
| Tangible common equity | 117,202 | 107,068 | |||||
| Common shares outstanding | 6,100 | 6,032 | |||||
| Tangible book value per common share | $ | 19.21 | $ | 17.75 | |||
| Tangible common equity to tangible assets | |||||||
| Tangible common equity | $ | 117,202 | $ | 107,068 | |||
| Tangible assets | 1,449,056 | 1,399,637 | |||||
| Tangible common equity to tangible assets ratio | 8.09 | % | 7.65 | % | |||
* Basic and diluted earnings per share are calculated based upon the two-class method for the three months ended March 31, 2024 and 2023.
Weighted average shares outstanding do not include unallocated ESOP shares.
The above information is preliminary and based on the Company's data available at the time of presentation.
PATHFINDER BANCORP, INC.
FINANCIAL HIGHLIGHTS
(Dollars and shares in thousands except per share amounts)
The following table sets forth information concerning average interest-earning assets and interest-bearing liabilities and the yields and rates thereon. Interest income and resultant yield information in the table has not been adjusted for tax equivalency. Averages are computed on the daily average balance for each month in the period divided by the number of days in the period. Yields and amounts earned include loan fees. Nonaccrual loans have been included in interest-earning assets for purposes of these calculations.
| For the three months ended March 31, | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans | $ | 895,335 | $ | 12,268 | 5.48 | % | $ | 899,258 | $ | 10,658 | 4.74 | % | |||||||||||
| Taxable investment securities | 431,114 | 5,736 | 5.32 | % | 368,437 | 3,825 | 4.15 | % | |||||||||||||||
| Tax-exempt investment securities | 29,171 | 508 | 6.97 | % | 36,480 | 455 | 4.99 | % | |||||||||||||||
| Fed funds sold and interest-earning deposits | 13,873 | 98 | 2.83 | % | 14,163 | 105 | 2.97 | % | |||||||||||||||
| Total interest-earning assets | 1,369,493 | 18,610 | 5.44 | % | 1,318,338 | 15,043 | 4.56 | % | |||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||
| Other assets | 94,677 | 101,194 | |||||||||||||||||||||
| Allowance for credit losses | (16,081 | ) | (17,061 | ) | |||||||||||||||||||
| Net unrealized losses on available-for-sale securities | (11,187 | ) | (12,529 | ) | |||||||||||||||||||
| Total assets | $ | 1,436,902 | $ | 1,389,942 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| NOW accounts | $ | 99,688 | $ | 263 | 1.06 | % | $ | 97,796 | $ | 91 | 0.37 | % | |||||||||||
| Money management accounts | 11,653 | 3 | 0.10 | % | 15,300 | 4 | 0.10 | % | |||||||||||||||
| MMDA accounts | 213,897 | 1,933 | 3.61 | % | 261,594 | 1,275 | 1.95 | % | |||||||||||||||
| Savings and club accounts | 112,719 | 73 | 0.26 | % | 133,532 | 64 | 0.19 | % | |||||||||||||||
| Time deposits | 524,368 | 5,139 | 3.92 | % | 454,980 | 2,603 | 2.29 | % | |||||||||||||||
| Subordinated loans | 29,930 | 491 | 6.56 | % | 29,748 | 472 | 6.35 | % | |||||||||||||||
| Borrowings | 137,882 | 1,308 | 3.79 | % | 86,761 | 566 | 2.61 | % | |||||||||||||||
| Total interest-bearing liabilities | 1,130,137 | 9,210 | 3.26 | % | 1,079,711 | 5,075 | 1.88 | % | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Demand deposits | 169,748 | 180,845 | |||||||||||||||||||||
| Other liabilities | 15,986 | 16,403 | |||||||||||||||||||||
| Total liabilities | 1,315,871 | 1,276,959 | |||||||||||||||||||||
| Shareholders' equity | 121,031 | 112,983 | |||||||||||||||||||||
| Total liabilities & shareholders' equity | $ | 1,436,902 | $ | 1,389,942 | |||||||||||||||||||
| Net interest income | $ | 9,400 | $ | 9,968 | |||||||||||||||||||
| Net interest rate spread | 2.18 | % | 2.68 | % | |||||||||||||||||||
| Net interest margin | 2.75 | % | 3.02 | % | |||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 121.18 | % | 122.10 | % | |||||||||||||||||||
The above information is preliminary and based on the Company's data available at the time of presentation.
PATHFINDER BANCORP, INC.
FINANCIAL HIGHLIGHTS
(Dollars and shares in thousands except per share amounts)
Net interest income can also be analyzed in terms of the impact of changing interest rates on interest-earning assets and interest bearing liabilities, and changes in the volume or amount of these assets and liabilities. The following table represents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected the Company’s interest income and interest expense during the years indicated. Information is provided in each category with respect to: (i) changes attributable to changes in volume (change in volume multiplied by prior rate); (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume); and (iii) total increase or decrease. Changes attributable to both rate and volume have been allocated ratably. Tax-exempt securities have not been adjusted for tax equivalency.
| For the three months ended March 31, | |||||||||||
| (Unaudited) | |||||||||||
| 2024 vs. 2023 | |||||||||||
| Increase/(Decrease) due to | |||||||||||
| Total | |||||||||||
| (In thousands) | Volume | Rate | Increase (Decrease) | ||||||||
| Interest Income: | |||||||||||
| Loans | $ | (318 | ) | $ | 1,928 | $ | 1,610 | ||||
| Taxable investment securities | 720 | 1,191 | 1,911 | ||||||||
| Tax-exempt investment securities | (467 | ) | 520 | 53 | |||||||
| Interest-earning deposits | (2 | ) | (5 | ) | (7 | ) | |||||
| Total interest income | (67 | ) | 3,634 | 3,567 | |||||||
| Interest Expense: | |||||||||||
| NOW accounts | 2 | 170 | 172 | ||||||||
| Money management accounts | (1 | ) | - | (1 | ) | ||||||
| MMDA accounts | (1,417 | ) | 2,075 | 658 | |||||||
| Savings and club accounts | (53 | ) | 62 | 9 | |||||||
| Time deposits | 447 | 2,089 | 2,536 | ||||||||
| Subordinated loans | 3 | 16 | 19 | ||||||||
| Borrowings | 419 | 323 | 742 | ||||||||
| Total interest expense | (600 | ) | 4,735 | 4,135 | |||||||
| Net change in net interest income | $ | 533 | $ | (1,101 | ) | $ | (568 | ) | |||
The above information is preliminary and based on the Company's data available at the time of presentation.
Investor/Media Contacts
James A. Dowd, President, CEO
Walter F. Rusnak, Senior Vice President, CFO
Telephone: (315) 343-0057
FAQ
What was Pathfinder Bancorp, Inc.'s first quarter 2024 net income?
How much did the interest and dividend income increase by for the quarter ended March 31, 2024?
What was the decrease in total revenue for the first quarter of 2024 compared to the same quarter in 2023?
What was the Bank's total assets at the end of the first quarter of 2024?
How much did total loans decrease by at the end of the first quarter of 2024 compared to March 31, 2023?
