Pathfinder Bancorp, Inc. Announces Financial Results for Fourth Quarter and Full Year 2024

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Pathfinder Bancorp (NASDAQ: PBHC) reported Q4 2024 net income of $4.3 million or $0.69 per share, including a $1.4 million benefit from the sale of its insurance agency. The company earned $3.8 million ($0.60 per share) for full-year 2024, compared to $9.3 million ($1.51 per share) in 2023.

Key Q4 2024 metrics include: net interest income of $10.8 million, net interest margin of 3.15%, and provision expense of $988,000. Total deposits reached $1.20 billion, growing 7.5% year-over-year. Total loans were $919.0 million, with commercial loans at $539.7 million.

Asset quality showed nonperforming loans at $22.1 million (2.40% of total loans), with an allowance for credit losses of $17.2 million (1.88% of total loans). The company declared a cash dividend of $0.10 per share.

Positive

Insurance agency sale resulted in $3.2 million pre-tax gain
Deposits grew 7.5% year-over-year to $1.20 billion
Commercial loans increased 3.0% year-over-year to $539.7 million
Net interest margin improved to 3.15% from 2.74% year-over-year

Negative

Full-year net income decreased to $3.8 million in 2024 from $9.3 million in 2023
Nonperforming loans increased to 2.40% of total loans from 1.75% in previous quarter
Net charge-offs increased to $1.0 million in Q4 2024
Non-interest expense increased by $1.5 million year-over-year

Insights

Pathfinder's Q4 2024 performance requires careful parsing between core operations and one-time events. The headline $0.69 EPS includes a substantial $1.4 million after-tax gain from the insurance agency sale, masking underlying operational metrics. Core performance indicators show both strengths and challenges:

The deposit franchise demonstrates remarkable resilience with 7.5% YoY growth to $1.20 billion, particularly impressive given the competitive banking environment. The core deposit ratio of 76.87% provides a stable funding base, though slightly decreased from Q3's 77.45%. This high-quality deposit mix supports a favorable loan-to-deposit ratio of 76.3%, providing ample lending capacity.

Asset quality metrics warrant attention:

NPLs increased to 2.40% of total loans from 1.75% in Q3
Net charge-offs rose to 0.44% annualized
ACL coverage remains adequate at 1.88%

The strategic expansion in Syracuse, particularly through the East Syracuse branch acquisition, is already showing positive results. Branch metrics averaging over $100 million in deposits per location demonstrate efficient capital deployment and market penetration.

The efficiency ratio of 69.42%, while improved from Q3's 75.28%, indicates ongoing opportunities for operational optimization. Management's focus on expense control and credit risk management suggests a pragmatic approach to building sustainable shareholder value.

01/31/2025 - 04:17 PM

Fourth quarter results include EPS of $0.69, deposit growth, commercial loan growth, a gain on the sale of its insurance agency, and strong contributions from new and established
Pathfinder Bank teams across Central New York

OSWEGO, N.Y., Jan. 31, 2025 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the fourth quarter and year ended December 31, 2024.

The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $4.3 million or $0.69 per share in the fourth quarter of 2024, including a benefit of approximately $1.4 million from a gain on the previously announced sale of its insurance agency, net of taxes and transaction-related expenses.

The Company reported a net loss of $4.6 million or $0.75 per share in the third quarter of 2024, reflecting $9.0 million in provision expense that primarily resulted from a comprehensive loan portfolio review the Bank elected to undertake as part of its ongoing commitment to continuously improve its credit risk management approach, and net income of $2.5 million or $0.41 per share in the fourth quarter of 2023. For the full year, the Company earned net income of $3.8 million or $0.60 per share in 2024 and $9.3 million or $1.51 per share in 2023.

Fourth Quarter and Full Year 2024 Highlights and Key Developments

Provision expense was $988,000 in the fourth quarter of 2024, compared to $9.0 million in the linked quarter and $265,000 in the fourth quarter of 2023, while the allowance for credit losses (“ACL) increased to 1.88% of loans from 1.87% on September 30, 2024 and 1.78% on December 31, 2023.
Net interest income was $10.8 million, compared to the $11.7 million in the linked quarter that benefited from a $887,000 catch-up interest payment, and $9.2 million in the fourth quarter of 2023. Full-year net interest income was $41.4 million in 2024 and $38.9 million in 2023.
Net interest margin (“NIM”) was 3.15% in the fourth quarter of 2024, compared to the 3.34% in the third quarter that benefited by 25 basis points from the catch-up interest payment, and 2.74% in the year-ago period.
Non-interest income was $4.9 million, including a gross, pre-tax gain of $3.2 million on the October 2024 sale of the Company’s insurance agency, compared to $1.7 million in the linked quarter and $1.3 million in the year-ago period. Full-year non-interest income was $9.6 million in 2024 and $5.2 million in 2023.
Non-interest expense was $8.5 million with $155,000 in October 2024 insurance agency transaction-related costs, $10.3 million in the linked quarter with $1.6 million in July 2024 branch acquisition-related costs, and $7.0 million in the year-ago period. Full-year non-interest expense was $34.4 million in 2024 and $29.4 million in 2023.
Pre-tax, pre-provision (“PTPP”) net income grew to $3.8 million, compared to $3.4 million in the linked and year-ago periods. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses. Full-year PTPP net income was $13.5 million in 2024 and $14.7 million in 2023.
Total deposits were $1.20 billion at period end, growing by $8.1 million or 2.7% annualized from September 30, 2024 and $84.3 million or 7.5% from December 31, 2023. The Bank’s loan-to-deposit ratio was 76.3% on December 31, 2024.
Total loans were $919.0 million at period end, compared to $921.7 million on September 30, 2024 and $897.2 million on December 31, 2023. Commercial loans were $539.7 million at period end, $534.5 million on September 30, 2024 and $524.2 million on December 31, 2023.

“Pathfinder’s core net interest income growth and net interest margin expansion were key contributors to fourth quarter earnings, and are a product of disciplined asset and liability pricing, the Bank’s valuable core deposit franchise, and our relationship-based commercial and retail lending in Central New York,” said President and Chief Executive Officer James A. Dowd. “In addition, we continue to invest in talent to serve middle market businesses throughout the Syracuse area, building on our foundation in this community. The East Syracuse branch acquired last summer, and our operations throughout the area, made important contributions to Pathfinder’s performance in the fourth quarter, and we look forward to further enhancing the breadth and depth of our commercial and other customer relationships in this important growth market.”

Dowd added, “We also intend to maintain a sharp focus on managing operating expenses, along with our ongoing efforts to continuously enhance the Company’s proactive credit risk management approach. While there may be short-term variability in measures of operating efficiency and asset quality, our leadership team is fully committed to taking the steps necessary to make sustainable improvements over the long term and continue building franchise value for the benefit of our shareholders.”

Net Interest Income and Net Interest Margin
Fourth quarter 2024 net interest income was $10.8 million, a decrease of 7.8% from the third quarter of 2024, or a decrease of 0.2% when excluding an $887,000 third quarter catch-up interest payment associated with purchased loan pool positions. A decrease in interest and dividend income of $1.7 million was primarily attributed to average yield decreases of 44 basis points on loans including 39 basis points from the catch-up interest payment, 108 basis points on tax-exempt investment securities, and 28 basis points on taxable investment securities. The corresponding decreases in income from loan interest, tax-exempt investment securities, and taxable investment securities were $902,000, $24,000, and $337,000, respectively. A decrease in interest expense of $761,000 was attributed to intentional reductions in the cost of time deposits and other interest-bearing deposits, as well as reductions in borrowings expense.

Net interest margin was 3.15% in the fourth quarter of 2024, compared to 3.34% in the linked quarter. The decrease was due to the 25 basis points of linked quarter NIM attributed to the third quarter 2024 catch-up interest payment.

Fourth quarter 2024 net interest income was $10.8 million, an increase of 18.1% from the fourth quarter of 2023. An increase in interest and dividend income of $1.2 million was primarily attributed to average yield increases of 33 basis points on loans, 4 basis points on taxable investment securities, and 404 basis points on fed funds sold and interest-earning deposits. The corresponding increase in loan interest income, taxable investment securities, and federal funds sold and interest-earning deposits was $1.1 million, $152,000, and $13,000, respectively. A decrease in interest expense of $463,000 was attributed to changes in the Bank’s deposit mix, repricing of deposits in a lower rate environment, and reductions in borrowings expense.

Net interest margin was 3.15% in the fourth quarter of 2024 compared to 2.74% in the same period the year prior. The increase of 41 basis points was driven by reductions in borrowing and funding costs.

Noninterest Income
Noninterest income totaled $4.9 million in the fourth quarter of 2024, including the $3.2 million pre-tax gain on the insurance agency sale, which represents the gross amount that is required to be 100% consolidated within the Company's financial statements, despite Pathfinder's 51% interest in the business sold in October 2024. Noninterest income growth from the third quarter of 2024 was $3.2 million, or $30,000 when excluding the agency sale gain. Noninterest income growth from the fourth quarter of 2023 was $3.6 million, or $419,000 when excluding the agency sale gain.

The insurance agency sold in October contributed $49,000 in revenue to noninterest income in the fourth quarter of 2024, $367,000 in the third quarter of 2024 and $303,000 in the fourth quarter of 2023.

Compared to the linked quarter, fourth quarter 2024 noninterest income also included increases of $16,000 in loan servicing fees and $12,000 in service charges on deposit accounts, a decrease of $194,000 in earnings and gain on bank owned life insurance ("BOLI") after recording a $175,000 third quarter net death benefit on BOLI, and a $36,000 decrease in debit card interchange fees. Noninterest income growth from the linked quarter also reflected an increase of $438,000 in net realized gains on sales and redemptions of investment securities and $104,000 in net realized gains on sales of marketable equity securities, as well as a decrease of $51,000 in gains on sales of loans and foreclosed real estate.

Compared to the year-ago period, fourth quarter 2024 noninterest income also included increases of $103,000 in interchange fees, $68,000 in service charges on deposit accounts, $26,000 in loan servicing fees, and $3,000 in earnings and gain on BOLI. Noninterest income growth from the year-ago quarter also reflected increases of $248,000 increase in net realized losses on sales and redemptions of investment securities, $213,000 in net realized gains on sales of marketable equity securities, and $41,000 in gains on sales of loans and foreclosed real estate.

Noninterest Expense
Noninterest expense totaled $8.5 million in the fourth quarter of 2024, decreasing $1.7 million from the linked quarter and increasing $1.5 million from the year-ago period.

Fourth quarter 2024 noninterest expense included $456,000 associated with the Company’s insurance agency sale in October 2024, including $155,000 in transaction-related items. The insurance agency incurred $308,000 of noninterest expense in the third quarter of 2024 and $216,000 in the fourth quarter of 2023.

Third quarter 2024 noninterest expense included $1.6 million in transaction-related expenses for Pathfinder’s acquisition of the East Syracuse branch acquisition in July 2024.

Salaries and benefits were $4.1 million in the fourth quarter of 2024, decreasing $839,000 from the linked quarter and increasing $446,000 from the year-ago period. The decrease from the linked quarter reflected elevated non-exempt-employee hours for projects related to the successful third quarter closing and integration of the East Syracuse branch acquisition, as well as some personnel vacancies that were open in the fourth quarter. The increase from the fourth quarter of 2023 was primarily attributed to increased headcount and lower salary deferrals than in the prior year period.

Building and occupancy was $1.3 million in the fourth quarter of 2024, increasing $117,000 and $390,000 from the linked and year-ago quarters, respectively. These increases were due to ongoing facilities-related costs of approximately $322,000 associated with operating the branch acquired in July 2024.

Professional and other services expense was $608,000 in the fourth quarter of 2024, decreasing $1.2 million from the linked quarter and increasing $120,000 from the year-ago period. The decrease from the third quarter of 2024 was primarily attributed to one-time costs associated with the East Syracuse branch acquisition. The increase from the fourth quarter of 2023 was primarily attributed to a $136,000 increase in technology project implementation services and other outsourced consulting services.

Annualized noninterest expense, including transaction-related costs, represented 2.33% of average assets in the fourth quarter of 2024, compared to 2.75% and 2.01% in the linked and year-ago periods. The efficiency ratio, including transaction-related costs, was 69.42% in the fourth quarter of 2024, compared to 75.28% and 67.25% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

Statement of Financial Condition
As of December 31, 2024, the Company’s statement of financial condition reflects total assets of $1.47 billion, compared to $1.48 billion and $1.47 billion recorded on September 30, 2024 and December 31, 2023, respectively.

Loans totaled $919.0 million on December 31, 2024, decreasing 0.3% during the fourth quarter and increasing 2.4% from one year prior. Consumer and residential loans totaled $380.9 million, decreasing 2.0% during the fourth quarter and increasing 1.9% from one year prior. Commercial loans totaled $539.7 million, increasing 1.0% during the fourth quarter and 3.0% from one year prior.

With respect to liabilities, deposits totaled $1.20 billion on December 31, 2024, increasing 0.7% during the fourth quarter and 7.5% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $88.1 million on December 31, 2024 as compared to $100.1 million on September 30, 2024 and $175.6 million on December 31, 2023.

Shareholders' equity totaled $121.9 million on December 31, 2024, increasing $1.6 million or 1.3% in the fourth quarter and increasing $2.4 million or 2.0% from one year prior. The fourth quarter 2024 increase primarily reflects a $4.5 million increase in retained earnings, partially offset by a $2.4 million increase in accumulated other comprehensive loss (“AOCL”) and a $481,000 decrease in additional paid in capital. The full-year 2024 increase in shareholders' equity primarily reflects a $2.1 increase in retained earnings and a $461,000 decrease in AOCL, partially offset by a $364,000 decrease in additional paid in capital. The noncontrolling interest included in equity on the Statements of Financial Condition was eliminated with the October 2024 sale of the 51% ownership interest in the Company’s insurance agency.

Asset Quality
Pathfinder’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

Nonperforming loans were $22.1 million or 2.40% of total loans on December 31, 2024, $16.2 million or 1.75% of total loans on September 30, 2024 and $17.2 million or 1.92% of total loans on December 31, 2023.

Net charge offs (“NCOs”) after recoveries were $1.0 million or an annualized 0.44% of average loans in the fourth quarter of 2024, with gross charge offs for consumer loans, purchased loan pools, and one commercial loan offsetting recoveries in each of these categories. NCOs were $8.7 million or an annualized 3.82% of average loans in the linked quarter, following the loan portfolio review completed in September, and $108,000 or 0.05% in the prior year period.

Provision for credit loss expense was $988,000 in the fourth quarter of 2024, reflecting NCOs in the period and qualitative factors in the Company’s reserve model. Third quarter of 2024 provision was $9.0 million, primarily to replenish commercial loan reserves and adjust the lifetime loss estimate for solar purchased loan pool positions following the loan portfolio review completed in September. Fourth quarter 2023 provision was $265,000.

The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.2 million on December 31, 2024, compared to $17.3 million on September 30, 2024 and $16.0 million on December 31, 2023. As a percentage of total loans, ACL represented 1.88% on December 31, 2024, 1.87% on September 30, 2024, and 1.78% on December 31, 2023.

Liquidity
The Company has diligently ensured a strong liquidity profile as of December 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.

The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.20 billion on December 31, 2024, $1.20 billion on September 30, 2024, and $1.12 billion on December 31, 2023. Core deposits represented 76.87% of total deposits on December 31, 2024, 77.45% on September 30, 2024, and 69.83% on December 31, 2023. The Bank’s continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $113.8 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $43.3 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

Cash Dividend Declared
On December 23, 2024, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by January 17, 2025 will be eligible for the dividend, which is scheduled for disbursement on February 7, 2025. 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 December 31, 2024 stood at $17.50 per share. This positions the dividend yield at an attractive 2.29%.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At December 31, 2024, the Oswego-headquartered Company had assets of $1.47 billion, loans of $919.0 million, and deposits of $1.20 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

Forward-Looking Statements
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.

Investor/Media Contacts
James A. Dowd, President, CEO
Justin K. Bigham, Senior Vice President, CFO
Telephone: (315) 343-0057

PATHFINDER BANCORP, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

	2024												2023
SELECTED BALANCE SHEET DATA:	December 31,			September 30,			June 30,			March 31,			December 31,
ASSETS:
Cash and due from banks	$	13,963		$	18,923		$	12,022		$	13,565		$	12,338
Interest-earning deposits		17,609			16,401			19,797			15,658			36,394
Total cash and cash equivalents		31,572			35,324			31,819			29,223			48,732
Available-for-sale securities, at fair value		269,331			271,977			274,977			279,012			258,716
Held-to-maturity securities, at amortized cost		158,683			161,385			166,271			172,648			179,286
Marketable equity securities, at fair value		4,076			3,872			3,793			3,342			3,206
Federal Home Loan Bank stock, at cost		4,590			5,401			8,702			7,031			8,748
Loans		918,986			921,660			888,263			891,531			897,207
Less: Allowance for credit losses		17,243			17,274			16,892			16,655			15,975
Loans receivable, net		901,743			904,386			871,371			874,876			881,232
Premises and equipment, net		19,009			18,989			18,878			18,332			18,441
Assets held-for-sale		-			-			3,042			3,042			3,042
Operating lease right-of-use assets		1,391			1,425			1,459			1,493			1,526
Finance lease right-of-use assets		16,676			16,873			4,004			4,038			4,073
Accrued interest receivable		6,881			6,806			7,076			7,170			7,286
Foreclosed real estate		-			-			60			82			151
Intangible assets, net		5,989			6,217			76			80			85
Goodwill		5,056			5,752			4,536			4,536			4,536
Bank owned life insurance		24,727			24,560			24,967			24,799			24,641
Other assets		25,150			20,159			25,180			23,968			22,097
Total assets	$	1,474,874		$	1,483,126		$	1,446,211		$	1,453,672		$	1,465,798

LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Interest-bearing deposits	$	990,674		$	986,103		$	932,132		$	969,692		$	949,898
Noninterest-bearing deposits		213,719			210,110			169,145			176,421			170,169
Total deposits		1,204,393			1,196,213			1,101,277			1,146,113			1,120,067
Short-term borrowings		61,000			60,315			127,577			91,577			125,680
Long-term borrowings		27,068			39,769			45,869			45,869			49,919
Subordinated debt		30,107			30,057			30,008			29,961			29,914
Accrued interest payable		234			236			2,092			1,963			2,245
Operating lease liabilities		1,591			1,621			1,652			1,682			1,711
Finance lease liabilities		16,745			16,829			4,359			4,370			4,381
Other liabilities		11,876			16,986			9,203			9,505			11,625
Total liabilities		1,353,014			1,362,026			1,322,037			1,331,040			1,345,542
Shareholders' equity:
Voting common stock shares issued and outstanding		4,742,841			4,719,788			4,719,788			4,719,788			4,719,288
Voting common stock		47			47			47			47			47
Non-Voting common stock		14			14			14			14			14
Additional paid in capital		52,750			53,231			53,182			53,151			53,114
Retained earnings		78,193			73,670			78,936			77,558			76,060
Accumulated other comprehensive loss		(9,144	)		(6,716	)		(8,786	)		(8,862	)		(9,605	)
Unearned ESOP shares		-			-			(45	)		(90	)		(135	)
Total Pathfinder Bancorp, Inc. shareholders' equity		121,860			120,246			123,348			121,818			119,495
Noncontrolling interest		-			854			826			814			761
Total equity		121,860			121,100			124,174			122,632			120,256
Total liabilities and shareholders' equity	$	1,474,874		$	1,483,126		$	1,446,211		$	1,453,672		$	1,465,798

_{The above information is preliminary and based on the Company's data available at the time of presentation.}

	Years Ended December 31,						2024												2023
SELECTED INCOME STATEMENT DATA:	2024			2023			Q4			Q3			Q2			Q1			Q4
Interest and dividend income:
Loans, including fees	$	52,705		$	47,348		$	13,523		$	14,425		$	12,489		$	12,268		$	12,429
Debt securities:
Taxable		22,319			17,500			5,312			5,664			5,736			5,607			5,092
Tax-exempt		1,920			1,947			445			469			498			508			506
Dividends		620			573			164			149			178			129			232
Federal funds sold and interest-earning deposits		793			295			82			492			121			98			69
Total interest and dividend income		78,357			67,663			19,526			21,199			19,022			18,610			18,328
Interest expense:
Interest on deposits		30,050			23,265			7,380			7,633			7,626			7,411			7,380
Interest on short-term borrowings		4,176			2,688			700			1,136			1,226			1,114			1,064
Interest on long-term borrowings		733			850			136			202			201			194			231
Interest on subordinated debt		1,966			1,941			490			496			489			491			494
Total interest expense		36,925			28,744			8,706			9,467			9,542			9,210			9,169
Net interest income		41,432			38,919			10,820			11,732			9,480			9,400			9,159
Provision for (benefit from) credit losses:
Loans		11,106			2,991			988			9,104			304			710			316
Held-to-maturity securities		(94	)		(98	)		(4	)		(31	)		(74	)		15			(74	)
Unfunded commitments		(39	)		37			4			(104	)		60			1			23
Total provision for credit losses		10,973			2,930			988			8,969			290			726			265
Net interest income after provision for credit losses		30,459			35,989			9,832			2,763			9,190			8,674			8,894
Noninterest income:
Service charges on deposit accounts		1,436			1,249			405			392			330			309			336
Earnings and gain on bank owned life insurance		854			630			169			361			167			157			164
Loan servicing fees		375			307			96			79			112			88			69
Net realized (losses) gains on sales and redemptions of investment securities		(71	)		62			249			(188	)		16			(148	)		2
Gain on asset sale ^{1 & 2}		3,169			-			3,169			-			-			-			-
Net realized gains (losses) on sales of marketable equity securities		197			(255	)		166			62			(139	)		108			(47	)
Gains on sales of loans and foreclosed real estate		187			181			39			90			40			18			(2	)
Loss on sale of premises and equipment		(13	)		-			-			(36	)		-			-			-
Debit card interchange fees		875			616			265			300			191			119			161
Insurance agency revenue ¹		1,073			1,304			49			367			260			397			303
Other charges, commissions & fees		1,479			1,096			299			280			234			689			332
Total noninterest income		9,561			5,190			4,906			1,707			1,211			1,737			1,318
Noninterest expense:
Salaries and employee benefits		17,810			15,920			4,123			4,959			4,399			4,329			3,677
Building and occupancy		4,118			3,563			1,254			1,134			914			816			864
Data processing		2,471			2,018			721			672			550			528			499
Professional and other services		3,686			2,019			608			1,820			696			562			488
Advertising		604			671			218			165			116			105			155
FDIC assessments		916			885			231			228			228			229			222
Audits and exams		539			735			123			123			123			170			259
Insurance agency expense ¹		1,281			1,033			456			308			232			285			216
Community service activities		130			200			19			20			39			52			49
Foreclosed real estate expenses		102			111			20			27			30			25			35
Other expenses		2,760			2,240			771			803			581			605			580
Total noninterest expense		34,417			29,395			8,544			10,259			7,908			7,706			7,044
Income (loss) before provision for income taxes		5,603			11,784			6,194			(5,789	)		2,493			2,705			3,168
Provision (benefit) for income taxes		398			2,362			558			(1,173	)		481			532			590
Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.		5,205			9,422			5,636			(4,616	)		2,012			2,173			2,578
Net income attributable to noncontrolling interest ¹		1,445			129			1,352			28			12			53			42
Net income (loss) attributable to Pathfinder Bancorp Inc.	$	3,760		$	9,293		$	4,284		$	(4,644	)	$	2,000		$	2,120		$	2,536
Voting Earnings per common share - basic and diluted	$	0.60		$	1.51		$	0.69		$	(0.75	)	$	0.32		$	0.34		$	0.41
Series A Non-Voting Earnings per common share- basic and diluted	$	0.60		$	1.51		$	0.69		$	(0.75	)	$	0.32		$	0.34		$	0.41
Dividends per common share (Voting and Series A Non-Voting)	$	0.40		$	0.36		$	0.10		$	0.10		$	0.10		$	0.10		$	0.09

_{¹Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements.}
_{² The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.}

_{The above information is preliminary and based on the Company's data available at the time of presentation.}

	Years Ended December 31,						2024												2023
FINANCIAL HIGHLIGHTS:	2024			2023			Q4			Q3			Q2			Q1			Q4
Selected Ratios:
Return on average assets		0.26	%		0.67	%		1.17	%		-1.25	%		0.56	%		0.59	%		0.72	%
Return on average common equity		3.06	%		8.09	%		14.09	%		-14.79	%		6.49	%		7.01	%		8.72	%
Return on average equity		3.06	%		8.09	%		14.09	%		-14.79	%		6.49	%		7.01	%		8.72	%
Return on average tangible common equity ¹		3.23	%		8.43	%		15.54	%		-15.28	%		6.78	%		7.32	%		9.01	%
Net interest margin		3.01	%		2.95	%		3.15	%		3.34	%		2.78	%		2.75	%		2.74	%
Loans / deposits		76.30	%		80.10	%		76.30	%		77.05	%		80.66	%		77.79	%		80.10	%
Core deposits/deposits ²		76.87	%		69.83	%		76.87	%		77.45	%		67.98	%		69.17	%		69.83	%
Annualized non-interest expense / average assets		3.17	%		2.11	%		2.33	%		2.75	%		2.19	%		2.16	%		2.01	%
Commercial real estate / risk-based capital ³		186.73	%		162.21	%		186.73	%		189.47	%		169.73	%		163.93	%		162.21	%
Efficiency ratio ¹		71.86	%		66.74	%		69.42	%		75.28	%		74.08	%		68.29	%		67.25	%

Other Selected Data:
Average yield on loans		5.83	%		5.26	%		5.87	%		6.31	%		5.64	%		5.48	%		5.55	%
Average cost of interest bearing deposits		3.08	%		2.45	%		2.94	%		3.11	%		3.21	%		3.07	%		3.10	%
Average cost of total deposits, including non-interest bearing		2.59	%		2.07	%		2.44	%		2.59	%		2.72	%		2.61	%		2.63	%
Deposits/branch ⁴	$	100,366		$	101,824		$	100,366		$	99,684		$	100,116		$	104,192		$	101,824
Pre-tax, pre-provision net income ¹	$	13,478		$	14,652		$	3,764		$	3,368		$	2,767		$	3,579		$	3,431
Total revenue ¹	$	47,895		$	44,047		$	12,308		$	13,627		$	10,675		$	11,285		$	10,475

Share and Per Share Data:
Cash dividends per share	$	0.40		$	0.36		$	0.10		$	0.10		$	0.10		$	0.10		$	0.09
Book value per common share	$	19.90		$	19.59		$	19.90		$	19.71		$	20.22		$	19.97		$	19.59
Tangible book value per common share ¹	$	18.10		$	18.83		$	18.10		$	17.75		$	19.46		$	19.21		$	18.83
Basic and diluted weighted average shares outstanding - Voting		4,714			4,653			4,732			4,714			4,708			4,701			4,693
Basic and diluted earnings per share - Voting⁵	$	0.60		$	1.51		$	0.69		$	(0.75	)	$	0.32		$	0.34		$	0.41
Basic and diluted weighted average shares outstanding - Series A Non-Voting		1,380			1,380			1,380			1,380			1,380			1,380			1,380
Basic and diluted earnings per share - Series A Non-Voting ⁵	$	0.60		$	1.51		$	0.69		$	(0.75	)	$	0.32		$	0.34		$	0.41
Common shares outstanding at period end		6,123			6,100			6,123			6,100			6,100			6,100			6,100

Pathfinder Bancorp, Inc. Capital Ratios:
Company tangible common equity to tangible assets¹		7.57	%		7.86	%		7.57	%		7.36	%		8.24	%		8.09	%		7.86	%
Company Total Core Capital (to Risk-Weighted Assets)		15.70	%		16.17	%		15.70	%		15.55	%		16.19	%		16.23	%		16.17	%
Company Tier 1 Capital (to Risk-Weighted Assets)		12.04	%		12.30	%		12.04	%		11.84	%		12.31	%		12.33	%		12.30	%
Company Tier 1 Common Equity (to Risk-Weighted Assets)		11.55	%		11.81	%		11.55	%		11.33	%		11.83	%		11.85	%		11.81	%
Company Tier 1 Capital (to Assets)		8.69	%		9.35	%		8.69	%		8.29	%		9.16	%		9.16	%		9.35	%

Pathfinder Bank Capital Ratios:
Bank Total Core Capital (to Risk-Weighted Assets)		14.70	%		15.05	%		14.70	%		14.52	%		16.04	%		15.65	%		15.05	%
Bank Tier 1 Capital (to Risk-Weighted Assets)		13.44	%		13.80	%		13.44	%		13.26	%		14.79	%		14.39	%		13.80	%
Bank Tier 1 Common Equity (to Risk-Weighted Assets)		13.44	%		13.80	%		13.44	%		13.26	%		14.79	%		14.39	%		13.80	%
Bank Tier 1 Capital (to Assets)		9.69	%		10.11	%		9.69	%		9.13	%		10.30	%		10.13	%		10.11	%

_{¹ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.}
_{² Non-brokered deposits excluding certificates of deposit of $250,000 or more.}
_{³ Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.}
_{⁴ Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior.}
_{⁵ Basic and diluted earnings per share are calculated based upon the two-class method. 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.

	Years Ended December 31,						2024												2023
ASSET QUALITY:	2024			2023			Q4			Q3			Q2			Q1			Q4
Total loan charge-offs	$	10,183		$	4,221		$	1,191		$	8,812		$	112		$	68		$	211
Total recoveries		345			355			171			90			46			38			103
Net loan charge-offs		9,838			3,866			1,020			8,722			66			30			108
Allowance for credit losses at period end		17,243			15,975			17,243			17,274			16,892			16,655			15,975
Nonperforming loans at period end		22,084			17,227			22,084			16,170			24,490			19,652			17,227
Nonperforming assets at period end	$	22,084		$	17,378		$	22,084		$	16,170		$	24,550		$	19,734		$	17,378
Annualized net loan charge-offs to average loans		1.09	%		0.43	%		0.44	%		3.82	%		0.03	%		0.01	%		0.05	%
Allowance for credit losses to period end loans		1.88	%		1.78	%		1.88	%		1.87	%		1.90	%		1.87	%		1.78	%
Allowance for credit losses to nonperforming loans		78.08	%		92.73	%		78.08	%		106.83	%		68.98	%		84.75	%		92.73	%
Nonperforming loans to period end loans		2.40	%		1.92	%		2.40	%		1.75	%		2.76	%		2.20	%		1.92	%
Nonperforming assets to period end assets		1.50	%		1.19	%		1.50	%		1.09	%		1.70	%		1.36	%		1.19	%

	2024													2023
LOAN COMPOSITION:	December 31,			September 30,			June 30,			March 31,			December 31,
1-4 family first-lien residential mortgages	$	251,373		$	255,235		$	250,106		$	252,026		$	257,604
Residential construction		4,864			4,077			309			1,689			1,355
Commercial real estate		377,619			378,805			370,361			363,467			358,707
Commercial lines of credit		67,602			64,672			62,711			67,416			72,069
Other commercial and industrial		89,800			88,247			90,813			91,178			89,803
Paycheck protection program loans		113			125			136			147			158
Tax exempt commercial loans		4,544			2,658			3,228			3,374			3,430
Home equity and junior liens		51,948			52,709			35,821			35,723			34,858
Other consumer		72,710			76,703			75,195			77,106			79,797
Subtotal loans		920,573			923,231			888,680			892,126			897,781
Deferred loan fees		(1,587	)		(1,571	)		(417	)		(595	)		(574	)
Total loans	$	918,986		$	921,660		$	888,263		$	891,531		$	897,207

	2024								2023
DEPOSIT COMPOSITION:	December 31,		September 30,		June 30,		March 31,		December 31,
Savings accounts	$	128,752	$	129,053	$	106,048	$	111,465	$	113,543
Time accounts		360,586		352,729		368,262		378,103		377,570
Time accounts in excess of $250,000		142,473		140,181		117,021		114,514		95,272
Money management accounts		11,583		11,520		12,154		11,676		12,364
MMDA accounts		239,016		250,007		193,915		215,101		224,707
Demand deposit interest-bearing		101,080		97,344		128,168		134,196		119,321
Demand deposit noninterest-bearing		213,719		210,110		169,145		176,434		170,169
Mortgage escrow funds		7,184		5,269		6,564		4,624		7,121
Total deposits	$	1,204,393	$	1,196,213	$	1,101,277	$	1,146,113	$	1,120,067

_{The above information is preliminary and based on the Company's data available at the time of presentation.}

	Years Ended December 31,						2024						2023
SELECTED AVERAGE BALANCES:	2024			2023			Q4			Q3			Q4
Interest-earning assets:
Loans	$	903,941		$	899,605		$	920,855		$	914,467		$	896,439
Taxable investment securities		423,475			379,600			412,048			415,751			403,411
Tax-exempt investment securities		30,861			30,318			34,918			30,382			27,941
Fed funds sold and interest-earning deposits		16,379			11,730			5,115			42,897			11,630
Total interest-earning assets		1,374,656			1,321,253			1,372,936			1,403,497			1,339,421
Noninterest-earning assets:
Other assets		102,582			100,319			112,654			103,856			102,940
Allowance for credit losses		(16,670	)		(17,870	)		(17,145	)		(16,537	)		(17,359	)
Net unrealized losses on available-for-sale securities		(9,769	)		(13,600	)		(8,534	)		(9,161	)		(15,653	)
Total assets	$	1,450,799		$	1,390,102		$	1,459,911		$	1,481,655		$	1,409,349
Interest-bearing liabilities:
NOW accounts	$	101,336		$	92,223		$	102,862		$	102,868		$	87,210
Money management accounts		11,679			14,116			11,371			11,828			12,518
MMDA accounts		227,597			239,182			257,429			227,247			231,957
Savings and club accounts		118,965			124,617			128,169			127,262			115,984
Time deposits		517,352			480,867			504,008			514,049			505,554
Subordinated loans		30,002			29,815			30,076			30,025			29,883
Borrowings		114,471			105,471			68,391			122,129			124,780
Total interest-bearing liabilities		1,121,402			1,086,291			1,102,306			1,135,408			1,107,886
Noninterest-bearing liabilities:
Demand deposits		184,572			172,950			206,521			195,765			169,340
Other liabilities		21,923			16,037			29,491			24,856			15,858
Total liabilities		1,327,897			1,275,278			1,338,318			1,356,029			1,293,084
Shareholders' equity		122,902			114,824			121,593			125,626			116,265
Total liabilities & shareholders' equity	$	1,450,799		$	1,390,102		$	1,459,911		$	1,481,655		$	1,409,349

	Years Ended December 31,						2024						2023
SELECTED AVERAGE YIELDS:	2024			2023			Q4			Q3			Q4
Interest-earning assets:
Loans		5.83	%		5.26	%		5.87	%		6.31	%		5.55	%
Taxable investment securities		5.42	%		4.76	%		5.32	%		5.59	%		5.28	%
Tax-exempt investment securities		6.22	%		6.42	%		5.10	%		6.17	%		7.24	%
Fed funds sold and interest-earning deposits		4.84	%		2.51	%		6.41	%		4.59	%		2.37	%
Total interest-earning assets		5.70	%		5.12	%		5.69	%		6.04	%		5.47	%
Interest-bearing liabilities:
NOW accounts		1.10	%		0.58	%		1.19	%		1.09	%		1.02	%
Money management accounts		0.11	%		0.11	%		0.11	%		0.10	%		0.10	%
MMDA accounts		3.52	%		2.80	%		3.23	%		3.54	%		3.72	%
Savings and club accounts		0.26	%		0.22	%		0.26	%		0.25	%		0.26	%
Time deposits		3.98	%		3.27	%		3.90	%		4.09	%		3.89	%
Subordinated loans		6.55	%		6.51	%		6.52	%		6.61	%		6.61	%
Borrowings		4.29	%		3.35	%		4.89	%		4.38	%		4.15	%
Total interest-bearing liabilities		3.29	%		2.65	%		3.16	%		3.34	%		3.31	%
Net interest rate spread		2.41	%		2.47	%		2.53	%		2.70	%		2.16	%
Net interest margin		3.01	%		2.95	%		3.15	%		3.34	%		2.74	%
Ratio of average interest-earning assets to average interest-bearing liabilities		122.58	%		121.63	%		124.55	%		123.61	%		120.90	%

_{The above information is preliminary and based on the Company's data available at the time of presentation.}

	Years Ended December 31,						2024												2023
NON-GAAP RECONCILIATIONS:	2024			2023			Q4			Q3			Q2			Q1			Q4
Tangible book value per common share:
Total equity							$	121,860		$	120,246		$	123,348		$	121,818		$	119,495
Intangible assets								(11,045	)		(11,969	)		(4,612	)		(4,616	)		(4,621	)
Tangible common equity (non-GAAP)								110,815			108,277			118,736			117,202			114,874
Common shares outstanding								6,123			6,100			6,100			6,100			6,100
Tangible book value per common share (non-GAAP)							$	18.10		$	17.75		$	19.46		$	19.21		$	18.83
Tangible common equity to tangible assets:
Tangible common equity (non-GAAP)							$	110,815		$	108,277		$	118,736		$	117,202		$	114,874
Tangible assets								1,463,829			1,471,157			1,441,599			1,449,056			1,461,177
Tangible common equity to tangible assets ratio (non-GAAP)								7.57	%		7.36	%		8.24	%		8.09	%		7.86	%
Return on average tangible common equity:
Average shareholders' equity	$	122,902		$	114,824		$	121,593		$	125,626		$	123,211		$	121,031		$	116,265
Average intangible assets		6,468			4,629			11,907			4,691			4,614			4,619			4,623
Average tangible equity (non-GAAP)		116,434			110,195			109,686			120,935			118,597			116,412			111,642
Net income (loss)		3,760			9,293			4,284			(4,644	)		2,000			2,120			2,536
Net income (loss), annualized	$	3,760		$	9,293		$	17,043		$	(18,475	)	$	8,044		$	8,527		$	10,061
Return on average tangible common equity (non-GAAP) ¹		3.23	%		8.43	%		15.54	%		-15.28	%		6.78	%		7.32	%		9.01	%
Revenue, pre-tax, pre-provision net income, and efficiency ratio:
Net interest income	$	41,432		$	38,919		$	10,820		$	11,732		$	9,480		$	9,400		$	9,159
Total noninterest income		9,561			5,190			4,906			1,707			1,211			1,737			1,318
Net realized (gains) losses on sales and redemptions of investment securities		(71	)		62			249			(188	)		16			(148	)		2
Gain on asset sale		3,169			-			3,169			-			-			-			-
Revenue (non-GAAP) ²		47,895			44,047			12,308			13,627			10,675			11,285			10,475
Total non-interest expense		34,417			29,395			8,544			10,259			7,908			7,706			7,044
Pre-tax, pre-provision net income (non-GAAP) ³	$	13,478		$	14,652		$	3,764		$	3,368		$	2,767		$	3,579		$	3,431
Efficiency ratio (non-GAAP) ⁴		71.86	%		66.74	%		69.42	%		75.28	%		74.08	%		68.29	%		67.25	%

_{¹ Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity}
_{² Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency}
_{³ Pre-tax, pre-provision net income equals revenue less total non-interest expense}
_{⁴ Efficiency ratio equals noninterest expense divided by revenue}

_{The above information is preliminary and based on the Company's data available at the time of presentation}.

FAQ

What was Pathfinder Bancorp's (PBHC) Q4 2024 earnings per share?

Pathfinder Bancorp reported earnings of $0.69 per share in Q4 2024.

How much did PBHC receive from the sale of its insurance agency in Q4 2024?

PBHC received a pre-tax gain of $3.2 million from the sale of its insurance agency in October 2024.

What was PBHC's deposit growth in 2024?

PBHC's total deposits grew by $84.3 million or 7.5% year-over-year to reach $1.20 billion by December 31, 2024.

What is PBHC's current dividend per share?

PBHC declared a cash dividend of $0.10 per share for both voting and non-voting common stock.

What was PBHC's net interest margin in Q4 2024?

PBHC's net interest margin was 3.15% in Q4 2024, compared to 2.74% in Q4 2023.

Pathfinder Bancorp, Inc. Announces Financial Results for Fourth Quarter and Full Year 2024