Pathfinder Bancorp, Inc. Announces Second Quarter 2024 Net Income of $2.0 Million
Pathfinder Bancorp (NASDAQ: PBHC) reported a net income of $2.0 million for Q2 2024, consistent with Q2 2023. Total revenue was $10.7 million, down 1.2% YoY. Net interest income decreased by 2.6% to $9.5 million, while non-interest income rose 11.4% to $1.2 million. Non-interest expenses increased by 10.2% to $7.9 million, mainly due to higher salaries and benefits.
Recent acquisition of the East Syracuse branch, with $186 million in deposits and $30 million in loans, is expected to improve liquidity and earnings. The average cost of these deposits was 1.99%, and Pathfinder aims to reduce borrowing costs in Q3 2024.
The net interest margin improved slightly to 2.78% from 2.75% in Q1 2024. However, total loans decreased by $2.8 million to $888.3 million, and nonperforming loans rose to 2.76% from 1.92% at the end of 2023. The allowance for credit losses was increased to 1.90% of loans.
Pathfinder Bancorp (NASDAQ: PBHC) ha riportato un utile netto di 2,0 milioni di dollari per il secondo trimestre del 2024, in linea con il secondo trimestre del 2023. Il fatturato totale è stato di 10,7 milioni di dollari, in calo dell'1,2% su base annua. Il reddito netto da interessi è diminuito del 2,6% a 9,5 milioni di dollari, mentre il reddito non da interessi è aumentato dell'11,4% a 1,2 milioni di dollari. Le spese non da interessi sono aumentate del 10,2% a 7,9 milioni di dollari, principalmente a causa di salari e benefici più elevati.
Recentemente è stata acquisita la filiale di East Syracuse, con 186 milioni di dollari in depositi e 30 milioni di dollari in prestiti, che si prevede migliorerà la liquidità e i guadagni. Il costo medio di questi depositi era dell'1,99% e Pathfinder punta a ridurre i costi di finanziamento nel terzo trimestre del 2024.
Il margine di interesse netto è leggermente migliorato al 2,78% rispetto al 2,75% del primo trimestre del 2024. Tuttavia, il totale dei prestiti è diminuito di 2,8 milioni di dollari, a 888,3 milioni di dollari, e i prestiti in sofferenza sono aumentati al 2,76% rispetto all'1,92% alla fine del 2023. La riserva per perdite sui crediti è stata aumentata all'1,90% dei prestiti.
Pathfinder Bancorp (NASDAQ: PBHC) reportó un ingreso neto de 2.0 millones de dólares para el segundo trimestre de 2024, consistente con el segundo trimestre de 2023. Los ingresos totales fueron de 10.7 millones de dólares, una disminución del 1.2% interanual. Los ingresos netos por intereses cayeron un 2.6% a 9.5 millones de dólares, mientras que los ingresos no por intereses aumentaron un 11.4% a 1.2 millones de dólares. Los gastos no por intereses aumentaron un 10.2% a 7.9 millones de dólares, principalmente debido a salarios y beneficios más altos.
La reciente adquisición de la sucursal de East Syracuse, con 186 millones de dólares en depósitos y 30 millones de dólares en préstamos, se espera que mejore la liquidez y las ganancias. El costo promedio de estos depósitos fue del 1.99%, y Pathfinder busca reducir los costos de financiamiento en el tercer trimestre de 2024.
El margen de interés neto mejoró ligeramente al 2.78% desde el 2.75% en el primer trimestre de 2024. Sin embargo, el total de préstamos disminuyó en 2.8 millones de dólares a 888.3 millones de dólares, y los préstamos morosos aumentaron al 2.76% desde el 1.92% a finales de 2023. La reserva para pérdidas crediticias se incrementó al 1.90% de los préstamos.
Pathfinder Bancorp (NASDAQ: PBHC)는 2024년 2분기에 200만 달러의 순이익을 보고했으며, 이는 2023년 2분기와 일치합니다. 총 수익은 1070만 달러로, 전년 대비 1.2% 감소했습니다. 순이자 수익은 2.6% 감소한 950만 달러였고, 비이자 수익은 11.4% 증가하여 120만 달러에 달했습니다. 비이자 비용은 급여 및 복리후생 증가로 인해 10.2% 증가하여 790만 달러를 기록했습니다.
186백만 달러의 예금 및 30백만 달러의 대출을 보유한 East Syracuse 지점의 최근 인수는 유동성과 수익성을 개선할 것으로 예상됩니다. 이 예금의 평균 비용은 1.99%였으며, Pathfinder는 2024년 3분기에 차입 비용을 줄이는 것을 목표로 하고 있습니다.
순이자 마진은 2024년 1분기 2.75%에서 2.78%로 약간 개선되었습니다. 그러나 총 대출액은 280만 달러 감소한 8883백만 달러였고, 부실 대출은 2023년 말 1.92%에서 2.76%로 증가했습니다. 신용 손실 충당금은 대출의 1.90%로 증가했습니다.
Pathfinder Bancorp (NASDAQ: PBHC) a déclaré un bénéfice net de 2,0 millions de dollars pour le deuxième trimestre de 2024, ce qui est cohérent avec le deuxième trimestre de 2023. Le chiffre d'affaires total s'élevait à 10,7 millions de dollars, en baisse de 1,2 % d'une année sur l'autre. Le revenu net d'intérêts a diminué de 2,6 % à 9,5 millions de dollars, tandis que les revenus non liés aux intérêts ont augmenté de 11,4 % pour atteindre 1,2 million de dollars. Les dépenses non liées aux intérêts ont augmenté de 10,2 % pour atteindre 7,9 millions de dollars, principalement en raison de l'augmentation des salaires et des avantages.
L'acquisition récente de la succursale d'East Syracuse, avec 186 millions de dollars de dépôts et 30 millions de dollars de prêts, devrait améliorer la liquidité et les bénéfices. Le coût moyen de ces dépôts était de 1,99 %, et Pathfinder vise à réduire les coûts d'emprunt au troisième trimestre 2024.
La marge d'intérêt nette s'est légèrement améliorée, passant de 2,75 % au premier trimestre 2024 à 2,78 %. Cependant, le montant total des prêts a diminué de 2,8 millions de dollars pour atteindre 888,3 millions de dollars, et les prêts non performants ont augmenté à 2,76 % contre 1,92 % à la fin de 2023. La provision pour pertes sur créances a été augmentée à 1,90 % des prêts.
Pathfinder Bancorp (NASDAQ: PBHC) berichtete für das zweite Quartal 2024 einen Nettogewinn von 2,0 Millionen US-Dollar, was im Einklang mit dem zweiten Quartal 2023 steht. Der Gesamtumsatz betrug 10,7 Millionen US-Dollar, was einem Rückgang von 1,2% im Jahresvergleich entspricht. Die Nettozinseinnahmen sanken um 2,6% auf 9,5 Millionen US-Dollar, während die Einkünfte aus Nicht-Zinsen um 11,4% auf 1,2 Millionen US-Dollar stiegen. Die Nicht-Zinsaufwendungen erhöhten sich um 10,2% auf 7,9 Millionen US-Dollar, hauptsächlich aufgrund höherer Gehälter und Sozialleistungen.
Die jüngste Übernahme der Filiale in East Syracuse, die über 186 Millionen US-Dollar an Einlagen und 30 Millionen US-Dollar an Krediten verfügt, soll die Liquidität und Ertragskraft verbessern. Die durchschnittlichen Kosten dieser Einlagen betrugen 1,99% und Pathfinder zielt darauf ab, die Finanzierungskosten im dritten Quartal 2024 zu senken.
Die Nettozinsspanne verbesserte sich leicht auf 2,78% von 2,75% im ersten Quartal 2024. Die Gesamtkredite verringerten sich jedoch um 2,8 Millionen US-Dollar auf 888,3 Millionen US-Dollar, und die notleidenden Kredite stiegen von 1,92% Ende 2023 auf 2,76%. Die Rückstellungen für Kreditausfälle wurden auf 1,90% der Kredite erhöht.
- Net income stable at $2.0 million, $0.32 per share.
- Non-interest income up by 11.4% to $1.2 million.
- Net interest margin improved to 2.78% from 2.75% in Q1 2024.
- Allowance for credit losses increased to 1.90% of loans.
- East Syracuse branch acquisition expected to improve liquidity and earnings.
- Total revenue decreased by 1.2% to $10.7 million.
- Net interest income fell by 2.6% to $9.5 million.
- Non-interest expenses rose by 10.2% to $7.9 million.
- Total loans decreased by $2.8 million to $888.3 million.
- Nonperforming loans ratio increased to 2.76% from 1.92%.
Insights
Pathfinder Bancorp's Q2 2024 results present a mixed picture. While net income remained stable at
- Net interest income decreased by
2.6% year-over-year, primarily due to higher interest expenses outpacing interest income growth. - The net interest margin improved slightly to
2.78% from2.75% in Q1 2024, but remains below the2.96% reported in Q2 2023. - Noninterest income increased by
11.4% , driven by higher fees from various banking services. - Noninterest expenses rose by
10.2% , mainly due to increased salaries and professional services costs.
The recent acquisition of the East Syracuse branch is a strategic move that could potentially improve Pathfinder's liquidity and earnings. The
However, the increase in nonperforming loans ratio from
Overall, Pathfinder appears to be navigating a challenging interest rate environment while making strategic investments for future growth. The bank's ability to manage its credit quality and capitalize on its recent acquisition will be important for its performance in the coming quarters.
Pathfinder Bancorp's Q2 2024 results reflect the broader challenges facing the banking industry in the current economic climate. The company's performance should be viewed in the context of several key market trends:
- Interest rate environment: The unprecedented interest rate situation continues to pressure net interest margins across the banking sector. Pathfinder's slight margin improvement is a positive sign, but still lags behind historical levels.
- Deposit competition: With the stability in total deposits (
$1.10 billion ), Pathfinder seems to be holding its ground in a highly competitive deposit market. - Regional economic growth: The company's focus on Central New York, particularly with the East Syracuse branch acquisition, aligns with potential economic growth driven by semiconductor industry investments in the region.
- Technology investments: Pathfinder's strategic investments in customer-facing technologies reflect an industry-wide trend towards digital transformation and operational efficiency.
The increase in nonperforming loans is a trend seen across many regional banks, often tied to commercial real estate exposure. Pathfinder's proactive approach to increasing its allowance for credit losses is prudent in this environment.
Looking ahead, Pathfinder's ability to leverage its expanded presence in Central New York, manage credit quality and optimize its deposit base will be critical factors in its performance relative to peers in the regional banking sector.
Net interest margin expanded for the second consecutive quarter, and low-cost deposits acquired with the recently completed East Syracuse branch purchase are expected to benefit total funding costs
OSWEGO, N.Y., July 29, 2024 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. ("Company") (NASDAQ: PBHC), the holding company for Pathfinder Bank ("Bank"), announced second quarter 2024 net income available to common shareholders of
Second Quarter 2024 Key Results:
- Net Interest Income of
$9.5 million in the quarter decreased by$252,000 , or2.6% from June 30, 2023. - Non-Interest Income of
$1.2 million in the quarter increased by$124,000 , or11.4% from June 30, 2023 driven by various fees associated with our loan and deposit accounts. - Non-Interest Expense of
$7.9 million in the quarter increased by$734,000 , or10.2% from June 30, 2023 due primarily to increases in salaries and benefits and professional and other services. - Total Deposits were
$1.10 billion at the end of the second quarter, relatively flat to June 30, 2023. - Total Loans were
$888.3 million at the end of the second quarter, reflecting a$2.8 million decrease from June 30, 2023.
“Our outlook remains positive, bolstered by the recent acquisition of the East Syracuse branch completed last week, strategically strengthening Pathfinder’s presence in Central New York. This region is positioned for outstanding economic growth through significant public and private investments in the semiconductor industry and its supporting infrastructure. With
The average cost of deposits acquired in the East Syracuse branch acquisition was approximately
“In addition, we are making measured strategic investments in customer-facing technologies to better serve our customers and improve operational efficiencies, while continuing to benefit from our interactions with Castle Creek Capital’s ecosystem of financial institutions and fintech companies to help us control noninterest expenses and serve customers in new ways."
“From an asset quality perspective, we continue to manage the risk of our nonperforming loans by maintaining what we believe is a prudent allowance for credit losses, which increased during the second quarter to
Dowd also took the opportunity to welcome Justin K. Bigham, CPA, who as previously announced was named Senior Vice President and Chief Financial Officer, effective at the end of last month. "Justin brings deep financial expertise and a broad understanding of the banking sector, including comprehensive knowledge and experience across finance, accounting, retail and small business banking, wealth management, insurance and marketing. Justin’s experience, leadership skills, and shared values will help drive our strategy and growth ambitions and deliver value. I am excited to work with Justin and welcome him to the Pathfinder family," Dowd said.
East Syracuse, New York Branch Purchase
The Company filed Form 8-K on July 22, 2024, and announced that it completed the purchase and assumption of the East Syracuse branch of Berkshire Bank, the banking subsidiary of Berkshire Hills Bancorp, Inc. In connection with the purchase, the Company assumed approximately
Components of Net Interest Income and Net Interest Margin
In the second quarter of 2024, the Bank's net interest income, before provision for credit losses, was reported at
This increase in interest and dividend income of
The increase in interest expense of
As a result, the net interest margin for the second quarter of 2024 was
Provision for Credit Losses
The provision for credit losses was
The Bank continues to diligently monitor credit portfolios, particularly those considered sensitive to prevailing economic stressors, and apply conservative loan classification and reserve building methodologies.
Noninterest Income
Pathfinder's noninterest income for the second quarter of 2024 amounted to
Recurring noninterest income during the quarter ended June 30, 2024 increased
The
Second quarter results reflect the Bank’s strategy to proactively seek out and capitalize on new opportunities to diversify and enhance recurring noninterest income’s contribution to total revenue. 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 and six months ended June 30, 2024, and 2023:
| Unaudited | For the three months ended | For the six months ended | ||||||||||||||||||||||
| (In thousands) | June 30, 2024 | June 30, 2023 | Change | June 30, 2024 | June 30, 2023 | Change | ||||||||||||||||||
| Service charges on deposit accounts | $ | 330 | $ | 303 | $ | 27 | 8.9 | % | $ | 639 | $ | 570 | $ | 69 | 12.1 | % | ||||||||
| Earnings and gain on bank owned life insurance | 167 | 143 | 24 | 16.8 | % | 324 | 301 | 23 | 7.6 | % | ||||||||||||||
| Loan servicing fees | 112 | 67 | 45 | 67.2 | % | 200 | 139 | 61 | 43.9 | % | ||||||||||||||
| Debit card interchange fees | 191 | 112 | 79 | 70.5 | % | 310 | 433 | (123 | ) | -28.4 | % | |||||||||||||
| Insurance agency revenue | 260 | 271 | (11 | ) | -4.1 | % | 657 | 691 | (34 | ) | -4.9 | % | ||||||||||||
| Other charges, commissions and fees | 234 | 243 | (9 | ) | -3.7 | % | 678 | 499 | 179 | 35.9 | % | |||||||||||||
| Noninterest income before gains | 1,294 | 1,139 | 155 | 13.6 | % | 2,808 | 2,633 | 175 | 6.6 | % | ||||||||||||||
| Gains (losses) on sales and redemptions of investment securities | 16 | - | 16 | 0.0 | % | (132 | ) | 73 | (205 | ) | -280.8 | % | ||||||||||||
| Gain on sales of loans and foreclosed real estate | 40 | 117 | (77 | ) | -65.8 | % | 58 | 142 | (84 | ) | -59.2 | % | ||||||||||||
| Non-recurring gain on lease renegotiations | - | - | - | 0.0 | % | 245 | - | 245 | 100.0 | % | ||||||||||||||
| Losses on marketable equity securities | (139 | ) | (169 | ) | 30 | -17.8 | % | (31 | ) | (169 | ) | 138 | -81.7 | % | ||||||||||
| Total noninterest income | $ | 1,211 | $ | 1,087 | $ | 124 | 11.4 | % | $ | 2,948 | $ | 2,679 | $ | 269 | 10.0 | % | ||||||||
Noninterest Expense
For the second quarter of 2024, Pathfinder Bank reported noninterest expenses of
Salaries and benefits increased
Professional and other services increased
The following table details the components of noninterest expense for the three and six months ended June 30, 2024, and 2023:
| Unaudited | For the three months ended | For the six months ended | ||||||||||||||||||||||
| (In thousands) | June 30, 2024 | June 30, 2023 | Change | June 30, 2024 | June 30, 2023 | Change | ||||||||||||||||||
| Salaries and employee benefits | $ | 4,399 | $ | 3,906 | $ | 493 | 12.6 | % | $ | 8,728 | $ | 8,089 | $ | 639 | 7.9 | % | ||||||||
| Building and occupancy | 914 | 979 | (65 | ) | -6.6 | % | 1,730 | 1,831 | (101 | ) | -5.5 | % | ||||||||||||
| Data processing | 550 | 483 | 67 | 13.9 | % | 1,078 | 1,036 | 42 | 4.1 | % | ||||||||||||||
| Professional and other services | 696 | 503 | 193 | 38.4 | % | 1,258 | 1,039 | 219 | 21.1 | % | ||||||||||||||
| Advertising | 116 | 166 | (50 | ) | -30.1 | % | 221 | 372 | (151 | ) | -40.6 | % | ||||||||||||
| FDIC assessments | 228 | 222 | 6 | 2.7 | % | 457 | 441 | 16 | 3.6 | % | ||||||||||||||
| Audits and exams | 123 | 158 | (35 | ) | -22.2 | % | 293 | 317 | (24 | ) | -7.6 | % | ||||||||||||
| Insurance agency expense | 232 | 283 | (51 | ) | -18.0 | % | 517 | 544 | (27 | ) | -5.0 | % | ||||||||||||
| Community service activities | 39 | 66 | (27 | ) | -40.9 | % | 91 | 96 | (5 | ) | -5.2 | % | ||||||||||||
| Foreclosed real estate expenses | 30 | 18 | 12 | 66.7 | % | 55 | 32 | 23 | 71.9 | % | ||||||||||||||
| Other expenses | 581 | 390 | 191 | 49.0 | % | 1,186 | 901 | 285 | 31.6 | % | ||||||||||||||
| Total noninterest expenses | $ | 7,908 | $ | 7,174 | $ | 734 | 10.2 | % | $ | 15,614 | $ | 14,698 | $ | 916 | 6.2 | % | ||||||||
Statement of Financial Condition at June 30, 2024
As of June 30, 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 stability, with a slight decrease of
Shareholders' equity saw a rise of
Asset Quality
The Bank reported an increase in the nonperforming loans ratio from
The Company remains vigilant in its oversight of asset quality and maintenance of what it believes are prudent reserves for credit losses. Management continues to proactively monitor and address asset quality, including the close surveillance of nonaccrual loans. The reported ACL as of June 30, 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 June 30, 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 | 23 | $ | 1,737 | $ | 76 | 71 | % | Individual loans are under active resolution management by the Bank. | ||||||||||
| Secured commercial real estate: | ||||||||||||||||||
| Private Museum | 1 | 1,339 | 1,339 | 77 | % | 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; inclusive of the sale of the building to a qualified buyer. | ||||||||||||
| Office Space | 1 | 1,665 | 1,665 | 77 | % | The loan is secured by a first mortgage with strong tenancy and a long-term lease. The borrower is in the process of securing grants and tax credit funding. The Bank is in regular communication with the borrower. | ||||||||||||
| Recreation/Golf Course/Marina | 1 | 1,368 | 1,368 | 55 | % | The borrower is in the process of restructuring debt and loan payments for its seasonal business. | ||||||||||||
| All other | 10 | 2,049 | 205 | 132 | % | Individual loans are under active resolution management by the Bank. | ||||||||||||
| Commercial lines of credit: | 11 | 2,312 | 210 | (1 | ) | Individual lines are under active resolution management by the Bank. | ||||||||||||
| Commercial and industrial loans: | 21 | 9,783 | 466 | (1 | ) | Individual loans are under active resolution management by the Bank. | ||||||||||||
| Consumer loans: | 136 | 4,237 | 31 | (1 | ) | Individual loans are under active resolution management by the Bank. | ||||||||||||
| 204 | $ | 24,490 | ||||||||||||||||
(1) These loans were originated as unsecured or with minimal collateral.
Liquidity
The Company has diligently ensured a strong liquidity profile as of June 30, 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.
The Bank's analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. In the second quarter of 2024, the Bank's non-brokered deposit balances decreased modestly to
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 oversight extends to continuous liquidity monitoring, ensuring that it is positioned to withstand financial market fluctuations. The Bank's deposit base remained stable at
Cash Dividend Declared
On July 1, 2024, Pathfinder Bancorp 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. Shareholders registered by July 19, 2024 will be eligible for the dividend, which is scheduled for disbursement on August 9, 2024. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.
Evaluating the Company's market performance, the closing stock price as of June 28, 2024, stood at
Pathfinder Bancorp 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 twelve full-service offices, including the East Syracuse branch acquired in July 2024, 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 | For the six months | ||||||||||||||
| ended June 30, | ended June 30, | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Condensed Income Statement | |||||||||||||||
| Interest and dividend income | $ | 19,022 | $ | 16,621 | $ | 37,632 | $ | 31,664 | |||||||
| Interest expense | 9,542 | 6,889 | 18,752 | 11,964 | |||||||||||
| Net interest income | 9,480 | 9,732 | 18,880 | 19,700 | |||||||||||
| Provision for credit losses | 290 | 1,140 | 1,016 | 1,832 | |||||||||||
| Net interest income after provision for credit losses | 9,190 | 8,592 | 17,864 | 17,868 | |||||||||||
| Noninterest income excluding net gains on sales of securities, loans and foreclosed real estate | 1,294 | 1,139 | 3,053 | 2,633 | |||||||||||
| Net gains (losses) on sales of securities, fixed assets, loans and foreclosed real estate | 56 | 117 | (74 | ) | 215 | ||||||||||
| Net realized losses on sales of marketable equity securities | (139 | ) | (169 | ) | (31 | ) | (169 | ) | |||||||
| Noninterest expense | (7,908 | ) | (7,174 | ) | (15,614 | ) | (14,698 | ) | |||||||
| Income before provision for income taxes | 2,493 | 2,505 | 5,198 | 5,849 | |||||||||||
| Provision for income taxes | 481 | 530 | 1,013 | 1,199 | |||||||||||
| Net income attributable to noncontrolling interest and Pathfinder Bancorp, Inc. | $ | 2,012 | $ | 1,975 | $ | 4,185 | $ | 4,650 | |||||||
| Net income (loss) attributable to noncontrolling interest | 12 | (7 | ) | 65 | 69 | ||||||||||
| Net income attributable to Pathfinder Bancorp Inc. | $ | 2,000 | $ | 1,982 | $ | 4,120 | $ | 4,581 | |||||||
| As of and for the three months ended | |||||||||||
| June 30, | December 31, | June 30, | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| 2024 | 2023 | 2023 | |||||||||
| Selected Balance Sheet Data | |||||||||||
| Assets | $ | 1,446,211 | $ | 1,465,798 | $ | 1,392,346 | |||||
| Earning assets | 1,361,803 | 1,383,557 | 1,295,623 | ||||||||
| Total loans | 888,263 | 897,207 | 891,111 | ||||||||
| Total deposits | 1,101,277 | 1,120,067 | 1,101,100 | ||||||||
| Borrowed funds | 173,446 | 175,599 | 129,451 | ||||||||
| Allowance for credit losses | 16,892 | 15,975 | 18,796 | ||||||||
| Subordinated debt | 30,008 | 29,914 | 29,821 | ||||||||
| Pathfinder Bancorp, Inc. Shareholders' equity | 123,348 | 119,495 | 113,775 | ||||||||
| Asset Quality Ratios | |||||||||||
| Net loan charge-offs to average loans | 0.02 | % | 0.47 | % | 0.06 | % | |||||
| Allowance for credit losses to period end loans | 1.90 | % | 1.78 | % | 2.11 | % | |||||
| Allowance for credit losses to nonperforming loans | 68.98 | % | 92.73 | % | 92.37 | % | |||||
| Nonperforming loans to period end loans | 2.76 | % | 1.92 | % | 2.28 | % | |||||
| Nonperforming assets to total assets | 1.70 | % | 1.19 | % | 1.48 | % | |||||
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) | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Key Earnings Ratios | |||||||||||||||
| Return on average assets | 0.56 | % | 0.57 | % | 0.58 | % | 0.66 | % | |||||||
| Return on average common equity | 6.49 | % | 6.96 | % | 6.74 | % | 8.08 | % | |||||||
| Return on average equity | 6.49 | % | 6.96 | % | 6.74 | % | 8.08 | % | |||||||
| Net interest margin | 2.78 | % | 2.96 | % | 2.77 | % | 2.99 | % | |||||||
| Share, Per Share and Ratio Data | |||||||||||||||
| Basic and diluted weighted average shares outstanding -Voting | 4,708 | 4,639 | 4,704 | 4,624 | |||||||||||
| Basic and diluted earnings per share - Voting | $ | 0.32 | $ | 0.32 | $ | 0.66 | $ | 0.75 | |||||||
| 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 | $ | 0.32 | $ | 0.66 | $ | 0.75 | |||||||
| Cash dividends per share | $ | 0.10 | $ | 0.09 | $ | 0.20 | $ | 0.18 | |||||||
| Book value per common share at June 30, 2024 and 2023 | $ | 20.22 | $ | 18.74 | |||||||||||
| Tangible book value per common share at June 30, 2024 and 2023 | $ | 19.46 | $ | 17.98 | |||||||||||
| Tangible common equity to tangible assets at June 30, 2024 and 2023 | 8.24 | % | 7.87 | % | |||||||||||
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 | 2024 | 2023 | |||||
| Tangible book value per common share | |||||||
| Total equity | $ | 123,348 | $ | 113,775 | |||
| Intangible assets | (4,612 | ) | (4,628 | ) | |||
| Tangible common equity | 118,736 | 109,147 | |||||
| Common shares outstanding | 6,100 | 6,070 | |||||
| Tangible book value per common share | $ | 19.46 | $ | 17.98 | |||
| Tangible common equity to tangible assets | |||||||
| Tangible common equity | $ | 118,736 | $ | 109,147 | |||
| Tangible assets | 1,441,599 | 1,387,718 | |||||
| Tangible common equity to tangible assets ratio | 8.24 | % | 7.87 | % | |||
* Basic and diluted earnings per share are calculated based upon the two-class method for the three and six months ended .June 30, 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 June 30, | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Loans | $ | 885,384 | $ | 12,489 | 5.64 | % | $ | 907,556 | $ | 11,791 | 5.20 | % | ||||||||||
| Taxable investment securities | 434,572 | 5,914 | 5.44 | % | 369,870 | 4,296 | 4.65 | % | ||||||||||||||
| Tax-exempt investment securities | 28,944 | 498 | 6.88 | % | 29,013 | 479 | 6.60 | % | ||||||||||||||
| Fed funds sold and interest-earning deposits | 13,387 | 121 | 3.62 | % | 9,723 | 55 | 2.26 | % | ||||||||||||||
| Total interest-earning assets | 1,362,287 | 19,022 | 5.59 | % | 1,316,162 | 16,621 | 5.05 | % | ||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||
| Other assets | 98,746 | 94,350 | ||||||||||||||||||||
| Allowance for credit losses | (16,905 | ) | (18,030 | ) | ||||||||||||||||||
| Net unrealized losses on available-for-sale securities | (10,248 | ) | (12,944 | ) | ||||||||||||||||||
| Total assets | $ | 1,433,880 | $ | 1,379,538 | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| NOW accounts | $ | 92,918 | $ | 264 | 1.14 | % | $ | 93,560 | $ | 100 | 0.43 | % | ||||||||||
| Money management accounts | 12,076 | 3 | 0.10 | % | 14,159 | 4 | 0.11 | % | ||||||||||||||
| MMDA accounts | 214,364 | 2,002 | 3.74 | % | 244,927 | 1,622 | 2.65 | % | ||||||||||||||
| Savings and club accounts | 107,558 | 71 | 0.26 | % | 127,356 | 67 | 0.21 | % | ||||||||||||||
| Time deposits | 524,276 | 5,286 | 4.03 | % | 468,534 | 3,832 | 3.27 | % | ||||||||||||||
| Subordinated loans | 29,977 | 489 | 6.53 | % | 29,792 | 483 | 6.48 | % | ||||||||||||||
| Borrowings | 141,067 | 1,427 | 4.05 | % | 99,284 | 781 | 3.15 | % | ||||||||||||||
| Total interest-bearing liabilities | 1,122,236 | 9,542 | 3.40 | % | 1,077,612 | 6,889 | 2.56 | % | ||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | 171,135 | 171,882 | ||||||||||||||||||||
| Other liabilities | 17,298 | 16,129 | ||||||||||||||||||||
| Total liabilities | 1,310,669 | 1,265,623 | ||||||||||||||||||||
| Shareholders' equity | 123,211 | 113,915 | ||||||||||||||||||||
| Total liabilities & shareholders' equity | $ | 1,433,880 | $ | 1,379,538 | ||||||||||||||||||
| Net interest income | $ | 9,480 | $ | 9,732 | ||||||||||||||||||
| Net interest rate spread | 2.19 | % | 2.49 | % | ||||||||||||||||||
| Net interest margin | 2.78 | % | 2.96 | % | ||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 121.39 | % | 122.14 | % | ||||||||||||||||||
| For the six months ended June 30, | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||
| Interest-earning assets: | |||||||||||||||||||
| Loans | $ | 889,988 | $ | 24,757 | 5.56 | % | $ | 903,255 | $ | 22,449 | 4.97 | % | |||||||
| Taxable investment securities | 433,156 | 11,650 | 5.38 | % | 369,155 | 8,121 | 4.40 | % | |||||||||||
| Tax-exempt investment securities | 29,053 | 1,006 | 6.93 | % | 32,726 | 934 | 5.71 | % | |||||||||||
| Fed funds sold and interest-earning deposits | 8,669 | 219 | 5.05 | % | 11,930 | 160 | 2.68 | % | |||||||||||
| Total interest-earning assets | 1,360,866 | 37,632 | 5.53 | % | 1,317,066 | 31,664 | 4.81 | % | |||||||||||
| Noninterest-earning assets: | |||||||||||||||||||
| Other assets | 96,772 | 97,754 | |||||||||||||||||
| Allowance for credit losses | (16,498 | ) | (17,542 | ) | |||||||||||||||
| Net unrealized losses on available-for-sale securities | (10,701 | ) | (12,738 | ) | |||||||||||||||
| Total assets | $ | 1,430,439 | $ | 1,384,540 | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| NOW accounts | $ | 97,213 | $ | 526 | 1.08 | % | $ | 95,492 | $ | 191 | 0.40 | % | |||||||
| Money management accounts | 11,759 | 6 | 0.11 | % | 14,727 | 8 | 0.11 | % | |||||||||||
| MMDA accounts | 212,693 | 3,935 | 3.70 | % | 253,214 | 2,897 | 2.29 | % | |||||||||||
| Savings and club accounts | 110,119 | 144 | 0.26 | % | 130,427 | 131 | 0.20 | % | |||||||||||
| Time deposits | 525,767 | 10,426 | 3.97 | % | 461,793 | 6,435 | 2.79 | % | |||||||||||
| Subordinated loans | 29,954 | 980 | 6.54 | % | 29,770 | 955 | 6.42 | % | |||||||||||
| Borrowings | 133,894 | 2,735 | 4.09 | % | 93,057 | 1,347 | 2.89 | % | |||||||||||
| Total interest-bearing liabilities | 1,121,399 | 18,752 | 3.34 | % | 1,078,480 | 11,964 | 2.22 | % | |||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||
| Demand deposits | 170,313 | 176,339 | |||||||||||||||||
| Other liabilities | 16,542 | 16,269 | |||||||||||||||||
| Total liabilities | 1,308,254 | 1,271,088 | |||||||||||||||||
| Shareholders' equity | 122,185 | 113,452 | |||||||||||||||||
| Total liabilities & shareholders' equity | 1,430,439 | 1,384,540 | |||||||||||||||||
| Net interest income | $ | 18,880 | $ | 19,700 | |||||||||||||||
| Net interest rate spread | 2.19 | % | 2.59 | % | |||||||||||||||
| Net interest margin | 2.77 | % | 2.99 | % | |||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 121.35 | % | 122.12 | % | |||||||||||||||
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 June 30, | For the six months ended June 30, | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| 2024 vs. 2023 | 2024 vs. 2023 | ||||||||||||||||||||||
| Increase/(Decrease) due to | Increase/(Decrease) due to | ||||||||||||||||||||||
| Total | Total | ||||||||||||||||||||||
| (In thousands) | Volume | Rate | Increase (Decrease) | Volume | Rate | Increase (Decrease) | |||||||||||||||||
| Interest Income: | |||||||||||||||||||||||
| Loans | $ | (1,639 | ) | $ | 2,337 | $ | 698 | $ | (921 | ) | $ | 3,229 | $ | 2,308 | |||||||||
| Taxable investment securities | 817 | 801 | 1,618 | 1,545 | 1,984 | 3,529 | |||||||||||||||||
| Tax-exempt investment securities | (8 | ) | 27 | 19 | (250 | ) | 322 | 72 | |||||||||||||||
| Interest-earning deposits | 26 | 40 | 66 | (120 | ) | 179 | 59 | ||||||||||||||||
| Total interest income | (804 | ) | 3,205 | 2,401 | 254 | 5,714 | 5,968 | ||||||||||||||||
| Interest Expense: | |||||||||||||||||||||||
| NOW accounts | (5 | ) | 169 | 164 | 4 | 331 | 335 | ||||||||||||||||
| Money management accounts | (1 | ) | - | (1 | ) | (2 | ) | - | (2 | ) | |||||||||||||
| MMDA accounts | (1,153 | ) | 1,533 | 380 | (1,259 | ) | 2,297 | 1,038 | |||||||||||||||
| Savings and club accounts | (50 | ) | 54 | 4 | (49 | ) | 62 | 13 | |||||||||||||||
| Time deposits | 492 | 962 | 1,454 | 984 | 3,007 | 3,991 | |||||||||||||||||
| Subordinated loans | 3 | 3 | 6 | 6 | 19 | 25 | |||||||||||||||||
| Borrowings | 385 | 261 | 646 | 717 | 671 | 1,388 | |||||||||||||||||
| Total interest expense | (329 | ) | 2,982 | 2,653 | 401 | 6,387 | 6,788 | ||||||||||||||||
| Net change in net interest income | $ | (475 | ) | $ | 223 | $ | (252 | ) | $ | (147 | ) | $ | (673 | ) | $ | (820 | ) | ||||||
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
Justin K. Bigham, Senior Vice President, CFO
Telephone: (315) 343-0057
FAQ
What was Pathfinder Bancorp's net income for Q2 2024?
How did Pathfinder Bancorp's revenue perform in Q2 2024?
What is the impact of the East Syracuse branch acquisition on Pathfinder Bancorp?
How did Pathfinder Bancorp's non-interest expenses change in Q2 2024?
What was Pathfinder Bancorp's net interest margin in Q2 2024?
What happened to Pathfinder Bancorp's total loans in Q2 2024?
How did Pathfinder Bancorp's nonperforming loans ratio change in Q2 2024?
