Pathfinder Bancorp, Inc. Announces Second Quarter 2023 Net Income of $2.0 Million
Highlights Include Deposit Base Retention, Effective Net Interest Margin and Operating Expense Management
OSWEGO, N.Y., Aug. 01, 2023 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. ("Company") (NASDAQ: PBHC), the holding company for Pathfinder Bank ("Bank"), announced second quarter 2023 net income available to common shareholders of
Performance Highlights for the Three Months Ended June 30, 2023
- The Company reported net income of
$2.0 million for the three-month period ended June 30, 2023, reflecting a decrease of$1.3 million , or39.4% , compared to the net income for the same period in 2022. - Net interest margin remained relatively stable at
2.96% for the second quarter of 2023 reflecting a slight decrease from the3.14% reported in the second quarter of 2022. Net interest margin was pressured due to liability costs increasing relative to earning asset yields occasioned by rapid increases in interest rates and the inversion (short-term rates higher than long-term rates) of the Treasury and related yield curves. - A significant development for 2023 has been the increase in the provision for credit losses ("PCL"), which was
$1.1 million for the three months ended June 30, 2023 as compared to$59,000 in the prior year quarter. The PCL increase was primarily due to significant deterioration in two large commercial real estate and commercial loan relationships with aggregate outstanding balances of$13.1 million . - Noninterest expense remained steady at
$7.2 million for the three months ended June 30, 2023, representing a marginal increase of0.4% from the prior-year second quarter. These increases were primarily due to overall inflationary factors, including rising labor costs, and the establishment of the Bank's eleventh full-service branch, partially mitigated by the Company’s continuing cost containment initiatives.
Performance Highlights for the Six Months Ended June 30, 2023
- The Bank's balance sheet saw a slight contraction of total assets as a strategic shift was made towards bolstering liquidity and enhancing loan pipeline yield management. As of June 30, 2023, the Company's assets were
$1.39 billion , marking a slight decrease from$1.40 billion from December 31, 2022. - The Company reported net income of
$4.6 million , for the six months ended June 30, 2023, a decrease of$1.6 million , or26.4% , compared to the net income for the same six month period in the prior year. - The Bank maintained a stable net interest margin at
2.99% for the first six months of 2023, reflecting a decrease from the3.10% reported in the same six month period of 2022. - The PCL was
$1.8 million for the six months ended June 30, 2023, an increase of$1.6 million , as compared to$161,000 for the same six month period in 2022. - Noninterest expense remained steady at
$14.7 million for the first six months of 2023, reflecting a modest increase of2.1% compared to the same period in 2022.
James A. Dowd, President and Chief Executive Officer of Pathfinder Bank, discussed the Bank's performance and strategic direction in light of the second quarter of 2023's results, highlighting its increased focus on enhancing liquidity through deposit growth, reduced rates of asset growth in the near term and effective expense management. Mr. Dowd expressed his confidence that the Bank’s well managed asset quality, prudent lending practices, experienced team, and long-standing commitment to exceptional customer service, ensure that Pathfinder is well-positioned to capitalize on opportunities for long-term growth.
"While we, like many of our peer institutions, faced some difficult headwinds this quarter, including a very challenging interest rate environment, resultant margin compression, and increases in labor costs, we remain confident in our ability to manage our business effectively and maintain our commitment to providing exceptional customer service,” said Mr. Dowd. “Overall, in the face of these challenging, short-term conditions, we earned nearly
“We maintain that our long-term investment thesis remains intact, despite the significant declines in the stock prices of Pathfinder and the vast majority of our peers over the past four months. We continue to strongly believe that we are currently well positioned, and will become ever more capable in the future of meeting the needs of our customers in our dynamically expanding local marketplace."
“Unfortunately for our current period operating results, we saw a significant increase in the provision for credit losses, which was
“The two large credit relationships currently in full "workout" situations have our Lending Department's full attention, with highly experienced specialists devoted to managing them to the best possible outcomes. Our strategy involves working with the borrowers associated with these credit relationships on individual loan repayment plans and the liquidation of loan collateral, where appropriate. We believe that we are adequately reserved for these loans at this time and expect to announce some charge-offs related to these relationships in the next quarter as a component of the final resolution of these troubled credits."
“The Return on Average Assets ("ROAA") was
"Given the expected subdued loan demand resulting from broader economic uncertainty, we anticipate a modest overall loan growth of around
“Our ongoing and effective cost management strategies are helping to offset rising labor costs and the short-term financial implications of our recently launched Syracuse branch. Our total interest expense increased, but we've managed to keep our operating expenses flat year-over-year for the second quarter of 2023 and just
“The Bank's position amidst the current economic challenges remains resilient. Net interest margin pressures will likely continue to increase, but our interest rate risk management tools, such as in force interest rate swap contracts, as well as our portfolio of floating rate investments and loans, should help to significantly mitigate margin degradation for the remainder of the year. Looking ahead, Dowd added, "The compelling economic growth opportunities in Central New York, spurred by significant private investment, position us for a promising future. We will continue to focus on asset quality and prudent lending practices while meeting the evolving needs of our customers. With a keen eye on the future, Pathfinder Bank is committed to navigating the current challenges and capitalizing on growth opportunities with its consistent and rigorous underwriting standards, strong financial performance, and dedicated team, for the benefit of our customers, employees, and shareholders."
Income Statement for the Three and Six Months Ended June 30, 2023
For the quarter ended June 30, 2023, the Company reported a net income of
Net interest income, before provision for credit losses, decreased by
Noninterest income for the second quarter of 2023 was
Net interest income, before provision for credit losses, for the first six months of 2023 increased
Noninterest income for the first six months of 2023 was
Components of Net Interest Income
In the second quarter of 2023, the Company's net interest income, before provision for credit losses, was reported at
However, this increase in interest income was offset by a significant increase in interest expenses related to interest-bearing liabilities, which spiked by
As a result, the net interest margin for the second quarter of 2023 was
In the first six months of 2023, the Company's net interest income, before provision for credit losses, was reported at
Provision for Credit Losses
The Bank continued to maintain a vigilant approach towards risk management in the second quarter of 2023. The Bank reported a provision for credit losses of
Management reaffirms its commitment to adhering to conservative loan classification and reserve-building methodologies in the current environment. The Bank will continue to closely monitor the credit-sensitive portfolios and apply its proven analysis methods. This proactive approach ensures the Bank's continued stability and resilience in the face of uncertain economic conditions. Further details regarding the asset quality and ongoing analyses can be found in the Asset Quality section.
As of January 1, 2023, Pathfinder Bank successfully transitioned from the Incurred Loss Model to the Current Expected Credit Loss ("CECL") methodology, in compliance with the Financial Accounting Standards Board ASU 2016-13. This transition necessitates the estimation of expected credit losses over the expected term of financial assets, taking into account past events, current conditions, and reasonable and supportable forecasts that affect future collectability.
The transition to CECL on January 1, 2023, was accounted for as a one-time increase in the Allowance for Credit Losses ("ACL"), with a corresponding adjustment to retained earnings, adjusted for income tax effects. This transition did not impact the Bank's earnings or earnings per share at adoption but resulted in an increase of
Noninterest Income
The Company's noninterest income for the second quarter of 2023 amounted to
The following table details the components of noninterest income for the three and six months ended June 30, 2023, and 2022:
Unaudited | For the three months ended | For the six months ended | ||||||||||||||||||||||||||
(Dollars in thousands) | June 30, 2023 | June 30, 2022 | Change | June 30, 2023 | June 30, 2022 | Change | ||||||||||||||||||||||
Service charges on deposit accounts | $ | 303 | $ | 283 | $ | 20 | $ | 570 | $ | 542 | $ | 28 | ||||||||||||||||
Earnings and gain on bank owned life insurance | 143 | 123 | 20 | 301 | 285 | 16 | ||||||||||||||||||||||
Loan servicing fees | 67 | 69 | (2 | ) | - | 139 | 186 | (47 | ) | - | ||||||||||||||||||
Debit card interchange fees | 112 | 231 | (119 | ) | - | 433 | 459 | (26 | ) | - | ||||||||||||||||||
Insurance agency revenue | 271 | 292 | (21 | ) | - | 691 | 591 | 100 | ||||||||||||||||||||
Other charges, commissions and fees | 241 | 279 | (38 | ) | - | 497 | 516 | (19 | ) | - | ||||||||||||||||||
Noninterest income before gains | 1,137 | 1,277 | (140 | ) | - | 2,631 | 2,579 | 52 | ||||||||||||||||||||
Net gains on sales of securities, loans and foreclosed real estate | 117 | 48 | 69 | 215 | 281 | (66 | ) | - | ||||||||||||||||||||
(Losses) gains on marketable equity securities | (169 | ) | (29 | ) | (140 | ) | (169 | ) | 39 | (208 | ) | |||||||||||||||||
Total noninterest income | $ | 1,085 | $ | 1,296 | $ | (211 | ) | - | $ | 2,677 | $ | 2,899 | $ | (222 | ) | - |
Noninterest income before gains and losses was
Noninterest income before gains and losses was
For the three and six month periods ended June 30, 2023, there was an unrealized loss on equity securities of
Noninterest Expense
For the second quarter of 2023, the Company reported noninterest expenses of
For the first six months of 2023, the Company reported noninterest expenses of
The Company acknowledges the continued upward pressure on labor costs and remains committed to maintaining a balance between competitive remuneration for its staff and prudent expense management to safeguard the Company's profitability. These reported facts showcase the Company's commitment to transparency and conservative financial management while investing in its human resources and expanding its service outlets to better serve customers and strengthen its market position.
The following table details the components of noninterest expense for the three and six months ended June 30, 2023, and 2022:
Unaudited | For the three months ended | For the six months ended | |||||||||||||||||||||||||||
(Dollars in thousands) | June 30, 2023 | June 30, 2022 | Change | June 30, 2023 | June 30, 2022 | Change | |||||||||||||||||||||||
Salaries and employee benefits | $ | 3,906 | $ | 3,785 | $ | 121 | $ | 8,089 | $ | 7,834 | $ | 255 | |||||||||||||||||
Building and occupancy | 979 | 830 | 149 | 1,831 | 1,656 | 175 | |||||||||||||||||||||||
Data processing | 483 | 517 | (34 | ) | - | 1,036 | 1,067 | (31 | ) | - | |||||||||||||||||||
Professional and other services | 503 | 452 | 51 | 1,039 | 845 | 194 | |||||||||||||||||||||||
Advertising | 166 | 235 | (69 | ) | - | 372 | 422 | (50 | ) | - | |||||||||||||||||||
FDIC assessments | 222 | 222 | - | 441 | 444 | (3 | ) | - | |||||||||||||||||||||
Audits and exams | 158 | 142 | 16 | 317 | 283 | 34 | |||||||||||||||||||||||
Insurance agency expense | 283 | 254 | 29 | 544 | 458 | 86 | |||||||||||||||||||||||
Community service activities | 66 | 73 | (7 | ) | - | 96 | 135 | (39 | ) | - | |||||||||||||||||||
Foreclosed real estate expenses | 18 | 27 | (9 | ) | - | 32 | 40 | (8 | ) | - | |||||||||||||||||||
Other expenses | 390 | 609 | (219 | ) | - | 901 | 1,214 | (313 | ) | - | |||||||||||||||||||
Total noninterest expenses | $ | 7,174 | $ | 7,146 | $ | 28 | $ | 14,698 | $ | 14,398 | $ | 300 |
Building and occupancy expenses increased by
Professional and other service fees increased during the three months ended June 30, 2023 by
Other expenses decreased by
Statement of Financial Condition - June 30, 2023
On June 30, 2023, Pathfinder Bancorp, Inc. reported total assets of
During the first half of 2023, the Bank's total deposits decreased
Shareholders' equity rose by
Asset Quality
The following table summarizes nonaccrual loans by category and status at June 30, 2023:
(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 | 17 | $ | 1,549 | $ | 91 | 75 | % | Individual loans are under active resolution management by the Bank. | |||||
Secured commercial real estate: | |||||||||||||
Private Museum | 1 | 1,380 | 1,380 | 79 | % | The borrower is expected to receive specific government grant funding this year and be finalized by the end of 2023. This will allow for a reduction of the outstanding loan balance upon their finalization. | |||||||
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. | |||||||
Manufacturing | 1 | 1,341 | 1,341 | 54 | % | 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. | |||||||
All other | 10 | 2,902 | 290 | 117 | % | Individual loans are under active resolution management by the Bank. | |||||||
Commercial lines of credit: | 13 | 3,110 | 239 | (1 | ) | Individual lines are under active resolution management by the Bank. | |||||||
Commercial and industrial loans: | 17 | 5,976 | 404 | (1 | ) | Individual loans are under active resolution management by the Bank. | |||||||
Consumer loans: | 110 | 2,409 | 22 | (1 | ) | Individual loans are under active resolution management by the Bank. | |||||||
170 | $ | 20,349 |
(1) These loans were originated as unsecured or with minimal collateral.
During the second quarter of 2023, there were further developments related to the Bank's asset quality metrics, primarily driven by the impact of further deterioration within the two large loan relationships discussed above. As of June 30, 2023, there were 25 nonaccrual loans related to these two specific credit relationships with an aggregate outstanding balance of
Nonperforming loans accounting for
Management continues to diligently monitor all nonaccrual loans, incorporating the Bank's current estimate of the ultimate collectability of these loans into the reported allowance for credit losses at June 30, 2023. The increased provision for credit losses of
Going forward, the Bank's management remains committed to maintaining a strong focus on asset quality and risk management. Through prudent measures and proactive strategies, the Bank aims to manage and mitigate the impact of any potential loan deterioration on its asset quality, thereby ensuring financial stability and protecting shareholders' interests.
Liquidity
Maintaining an appropriate level of balance sheet liquidity remains a critical focus for the Bank as the landscape of banking regulation and investor expectations continue to evolve. As of June 30, 2023, the Bank's management remains confident in its current and projected liquidity positions. The Bank’s management team maintains robust modeling, stress testing and internal reporting systems designed to effectively manage short-term and longer-term projected liquidity on a continuous basis. Management therefore believes that expected cash flows from loan and investment securities are more than sufficient to meet all foreseeable funding obligations.
During the second quarter of 2023, the Bank's non-brokered deposit balances declined by
In addition to its organic liquidity sources, the Bank maintains a strong relationship with the Federal Home Loan Bank of New York, which allows the Bank access to a broad array of advance facilities, as well as other well-established and currently unused lines of credit, including those potentially available through the Federal Reserve's Discount Window.
The Bank is also approved to access the Federal Reserve's Bank Term Funding Program ("BTFP"), which could serve as a potential source of contingent funding. This program allows depository institutions to pledge specific types of investment securities as collateral for one-year callable term advances at market rates. The BTFP is available until its currently scheduled expiration date in March 2024.
Cash Dividend Declared
On July 3, 2023, the Company announced the declaration of its cash dividend for the fiscal quarter ended June 30, 2023. The Board of Directors has declared a cash dividend of
With the Company's common stock closing price on June 30, 2023, at
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; the effects of the COVID-19 pandemic; 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 | For the six months | ||||||||||||||
ended June 30, | ended June 30, | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Condensed Income Statement | |||||||||||||||
Interest and dividend income | $ | 16,621 | $ | 11,706 | $ | 31,664 | $ | 22,688 | |||||||
Interest expense | 6,889 | 1,729 | 11,964 | 3,244 | |||||||||||
Net interest income | 9,732 | 9,977 | 19,700 | 19,444 | |||||||||||
Provision for credit losses | 1,138 | 59 | 1,830 | 161 | |||||||||||
8,594 | 9,918 | 17,870 | 19,283 | ||||||||||||
Noninterest income excluding net gains on sales of securities, loans and foreclosed real estate | 1,137 | 1,277 | 2,631 | 2,579 | |||||||||||
Net gains on sales of securities, loans and foreclosed real estate | 117 | 48 | 215 | 281 | |||||||||||
(Losses) gains on marketable equity securities | (169 | ) | (29 | ) | (169 | ) | 39 | ||||||||
Noninterest expense | 7,174 | 7,146 | 14,698 | 14,398 | |||||||||||
Income before income taxes | 2,505 | 4,068 | 5,849 | 7,784 | |||||||||||
Provision for income taxes | 530 | 780 | 1,199 | 1,501 | |||||||||||
Net income attributable to noncontrolling interest and Pathfinder Bancorp, Inc. | $ | 1,975 | $ | 3,288 | $ | 4,650 | $ | 6,283 | |||||||
Net (loss) income attributable to noncontrolling interest | (7 | ) | 16 | 69 | 61 | ||||||||||
Net income attributable to Pathfinder Bancorp Inc. | $ | 1,982 | $ | 3,272 | $ | 4,581 | $ | 6,222 |
As of and For the Periods Ended | |||||||||||
June 30, | December 31, | June 30, | |||||||||
2023 | 2022 | 2022 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Selected Balance Sheet Data | |||||||||||
Assets | $ | 1,392,346 | $ | 1,399,921 | $ | 1,363,085 | |||||
Earning assets | 1,295,623 | 1,313,069 | 1,279,355 | ||||||||
Total loans | 891,111 | 897,754 | 866,289 | ||||||||
Deposits | 1,101,100 | 1,125,430 | 1,137,844 | ||||||||
Borrowed funds | 129,451 | 115,997 | 75,721 | ||||||||
Allowance for credit losses | 18,796 | 15,319 | 13,078 | ||||||||
Subordinated debt | 29,821 | 29,733 | 29,646 | ||||||||
Pathfinder Bancorp, Inc. Shareholders' equity | 113,775 | 110,997 | 107,721 | ||||||||
Asset Quality Ratios | |||||||||||
Net loan charge-offs (annualized YTD) to average loans | 0.06 | % | 0.04 | % | 0.00 | % | |||||
Allowance for credit losses to period end loans | 2.11 | % | 1.71 | % | 1.51 | % | |||||
Allowance for credit losses to nonperforming loans | 92.37 | % | 169.93 | % | 111.90 | % | |||||
Nonperforming loans to period end loans | 2.28 | % | 1.00 | % | 1.35 | % | |||||
Nonperforming assets to total assets | 1.48 | % | 0.66 | % | 0.87 | % |
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 | For the six months | ||||||||||||||
ended June 30, | ended June 30, | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Key Earnings Ratios | |||||||||||||||
Return on average assets | 0.57 | % | 0.99 | % | 0.66 | % | 0.94 | % | |||||||
Return on average common equity | 6.96 | % | 12.08 | % | 8.08 | % | 11.34 | % | |||||||
Return on average equity | 6.96 | % | 12.08 | % | 8.08 | % | 11.34 | % | |||||||
Net interest margin | 2.96 | % | 3.14 | % | 2.99 | % | 3.10 | % | |||||||
Share, Per Share and Ratio Data | |||||||||||||||
Basic and diluted weighted average shares outstanding -Voting | 4,639 | 4,549 | 4,624 | 4,543 | |||||||||||
Basic and diluted earnings per share - Voting | $ | 0.32 | $ | 0.54 | $ | 0.75 | $ | 1.03 | |||||||
Basic and diluted weighted average shares outstanding - Series A Non-Voting | 1,380 | 1,380 | 1,380 | 1,380 | |||||||||||
Basic and diluted earnings per share - Series A Non-Voting | $ | 0.32 | $ | 0.54 | $ | 0.75 | $ | 1.03 | |||||||
Diluted weighted average shares outstanding- Voting | 4,639 | 4,549 | 4,624 | 4,543 | |||||||||||
Diluted earnings per share- Voting | $ | 0.32 | $ | 0.54 | $ | 0.75 | $ | 1.03 | |||||||
Diluted weighted average shares outstanding- Series A Non-Voting | 1,380 | 1,380 | 1,380 | 1,380 | |||||||||||
Diluted earnings per share- Series A Non-Voting | $ | 0.32 | $ | 0.54 | $ | 0.75 | $ | 1.03 | |||||||
Cash dividends per share | $ | 0.09 | $ | 0.09 | $ | 0.18 | $ | 0.09 | |||||||
Book value per common share at June 30, 2023 and 2022 | $ | 18.74 | $ | 17.96 | |||||||||||
Tangible book value per common share at June 30, 2023 and 2022 | $ | 17.98 | $ | 17.18 | |||||||||||
Tangible common equity to tangible assets at June 30, 2023 and 2022 | 7.87 | % | 7.59 | % | |||||||||||
Tangible common equity to tangible assets at June 30, 2023 and 2022, adjusted | 7.87 | % | 7.62 | % |
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 six months | |||||||
ended June 30, | |||||||
(Unaudited) | |||||||
Non-GAAP Reconciliation | 2023 | 2022 | |||||
Tangible book value per common share | |||||||
Total equity | $ | 113,775 | $ | 107,721 | |||
Intangible assets | (4,628 | ) | (4,644 | ) | |||
Common tangible equity | $ | 109,147 | $ | 103,077 | |||
Common shares outstanding | 6,070 | 5,999 | |||||
Tangible book value per common share | $ | 17.98 | $ | 17.18 | |||
Tangible common equity to tangible assets | |||||||
Tangible common equity | $ | 109,147 | $ | 103,077 | |||
Tangible assets | 1,387,718 | 1,358,441 | |||||
Tangible common equity to tangible assets ratio | 7.87 | % | 7.59 | % | |||
Tangible common equity to tangible assets, adjusted | |||||||
Tangible common equity | $ | 109,147 | $ | 103,077 | |||
Tangible assets | 1,387,718 | 1,358,441 | |||||
Less: Paycheck Protection Program (PPP) loans | - | (4,877 | ) | ||||
Total assets excluding PPP loans | $ | 1,387,718 | $ | 1,353,564 | |||
Tangible common equity to tangible assets ratio, excluding PPP loans | 7.87 | % | 7.62 | % |
* Basic and diluted earnings per share are calculated based upon the two-class method for the six months ended June 30, 2023 and 2022.
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 June 30, | |||||||||||||||||
(Unaudited) | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Average | Average | ||||||||||||||||
Average | Yield / | Average | Yield / | ||||||||||||||
(Dollars in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||
Interest-earning assets: | |||||||||||||||||
Loans | $ | 907,556 | $ | 11,791 | $ | 863,369 | $ | 8,974 | |||||||||
Taxable investment securities | 369,870 | 4,296 | 351,952 | 2,574 | |||||||||||||
Tax-exempt investment securities | 29,013 | 479 | 37,088 | 143 | |||||||||||||
Fed funds sold and interest-earning deposits | 9,723 | 55 | 17,871 | 15 | |||||||||||||
Total interest-earning assets | 1,316,162 | 16,621 | 1,270,280 | 11,706 | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||
Other assets | 94,350 | 74,842 | |||||||||||||||
Allowance for credit losses | (18,030 | ) | (13,039 | ) | |||||||||||||
Net unrealized losses on available-for-sale securities | (12,944 | ) | (9,268 | ) | |||||||||||||
Total assets | $ | 1,379,538 | $ | 1,322,815 | |||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
NOW accounts | $ | 93,560 | $ | 100 | $ | 105,612 | $ | 78 | |||||||||
Money management accounts | 14,159 | 4 | 16,467 | 4 | |||||||||||||
MMDA accounts | 244,927 | 1,622 | 261,203 | 312 | |||||||||||||
Savings and club accounts | 127,356 | 67 | 140,365 | 50 | |||||||||||||
Time deposits | 468,534 | 3,832 | 385,049 | 690 | |||||||||||||
Subordinated loans | 29,792 | 483 | 29,619 | 430 | |||||||||||||
Borrowings | 99,284 | 781 | 70,574 | 165 | |||||||||||||
Total interest-bearing liabilities | 1,077,612 | 6,889 | 1,008,889 | 1,729 | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||
Demand deposits | 171,882 | 194,287 | |||||||||||||||
Other liabilities | 16,129 | 11,263 | |||||||||||||||
Total liabilities | 1,265,623 | 1,214,439 | |||||||||||||||
Shareholders' equity | 113,915 | 108,376 | |||||||||||||||
Total liabilities & shareholders' equity | $ | 1,379,538 | $ | 1,322,815 | |||||||||||||
Net interest income | $ | 9,732 | $ | 9,977 | |||||||||||||
Net interest rate spread | |||||||||||||||||
Net interest margin | |||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
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 six months ended June 30, | |||||||||||||||||
(Unaudited) | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Average | Average | ||||||||||||||||
Average | Yield / | Average | Yield / | ||||||||||||||
(Dollars in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||
Interest-earning assets: | |||||||||||||||||
Loans | $ | 903,255 | $ | 22,449 | $ | 854,374 | $ | 17,666 | |||||||||
Taxable investment securities | 369,155 | 8,121 | 340,684 | 4,742 | |||||||||||||
Tax-exempt investment securities | 32,726 | 934 | 34,917 | 261 | |||||||||||||
Fed funds sold and interest-earning deposits | 11,930 | 160 | 24,812 | 19 | |||||||||||||
Total interest-earning assets | 1,317,066 | 31,664 | 1,254,787 | 22,688 | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||
Other assets | 97,754 | 83,199 | |||||||||||||||
Allowance for credit losses | (17,542 | ) | (13,035 | ) | |||||||||||||
Net unrealized losses on available-for-sale securities | (12,738 | ) | (5,323 | ) | |||||||||||||
Total assets | $ | 1,384,540 | $ | 1,319,628 | |||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
NOW accounts | $ | 95,492 | $ | 191 | $ | 106,160 | $ | 149 | |||||||||
Money management accounts | 14,727 | 8 | 16,271 | 8 | |||||||||||||
MMDA accounts | 253,214 | 2,897 | 261,549 | 558 | |||||||||||||
Savings and club accounts | 130,427 | 131 | 139,480 | 98 | |||||||||||||
Time deposits | 461,793 | 6,435 | 381,506 | 1,286 | |||||||||||||
Subordinated loans | 29,770 | 955 | 29,598 | 842 | |||||||||||||
Borrowings | 93,057 | 1,347 | 67,071 | 303 | |||||||||||||
Total interest-bearing liabilities | 1,078,480 | 11,964 | 1,001,635 | 3,244 | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||
Demand deposits | 176,339 | 196,712 | |||||||||||||||
Other liabilities | 16,269 | 11,585 | |||||||||||||||
Total liabilities | 1,271,088 | 1,209,932 | |||||||||||||||
Shareholders' equity | 113,452 | 109,696 | |||||||||||||||
Total liabilities & shareholders' equity | $ | 1,384,540 | $ | 1,319,628 | |||||||||||||
Net interest income | $ | 19,700 | $ | 19,444 | |||||||||||||
Net interest rate spread | |||||||||||||||||
Net interest margin | |||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
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.
(Unaudited) | (Unaudited) | ||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 vs. 2022 | 2023 vs. 2022 | ||||||||||||||||||||||
Increase/(Decrease) due to | Increase/(Decrease) due to | ||||||||||||||||||||||
Total | Total | ||||||||||||||||||||||
Increase | Increase | ||||||||||||||||||||||
(In thousands) | Volume | Rate | (Decrease) | Volume | Rate | (Decrease) | |||||||||||||||||
Interest Income: | |||||||||||||||||||||||
Loans | $ | 479 | $ | 2,338 | $ | 2,817 | $ | 1,056 | $ | 3,727 | $ | 4,783 | |||||||||||
Taxable investment securities | 137 | 1,585 | 1,722 | 425 | 2,954 | 3,379 | |||||||||||||||||
Tax-exempt investment securities | (213 | ) | 549 | 336 | (49 | ) | 722 | 673 | |||||||||||||||
Interest-earning deposits | (48 | ) | 88 | 40 | (34 | ) | 175 | 141 | |||||||||||||||
Total interest income | 355 | 4,560 | 4,915 | 1,398 | 7,578 | 8,976 | |||||||||||||||||
Interest Expense: | |||||||||||||||||||||||
NOW accounts | (52 | ) | 74 | 22 | (40 | ) | 82 | 42 | |||||||||||||||
Money management accounts | (2 | ) | 2 | - | (2 | ) | 2 | - | |||||||||||||||
MMDA accounts | (136 | ) | 1,446 | 1,310 | (54 | ) | 2,393 | 2,339 | |||||||||||||||
Savings and club accounts | (28 | ) | 45 | 17 | (18 | ) | 51 | 33 | |||||||||||||||
Time deposits | 180 | 2,962 | 3,142 | 324 | 4,825 | 5,149 | |||||||||||||||||
Subordinated loans | 3 | 50 | 53 | 5 | 108 | 113 | |||||||||||||||||
Borrowings | 90 | 526 | 616 | 156 | 888 | 1,044 | |||||||||||||||||
Total interest expense | 55 | 5,105 | 5,160 | 371 | 8,349 | 8,720 | |||||||||||||||||
Net change in net interest income | $ | 300 | $ | (545 | ) | $ | (245 | ) | $ | 1,027 | $ | (771 | ) | $ | 256 |
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