Pathfinder Bancorp, Inc. Announces Third Quarter 2025 Results 

Insights

Banking/Financial Analyst

Quarter shows return to profitability amid higher reserves and stable margin; credit review completion will determine near‑term outlook.

Net income of $626,000 ( $0.10 per share) marks a clear improvement from the prior quarter and year‑ago loss, driven by a 23 basis point rise in NIM to 3.34% and a modest increase in net interest income to $11.6 million. The company increased its allowance for credit losses to $18.7 million and recorded a provision of $3.5 million, reflecting a deliberate reserve build during an ongoing comprehensive portfolio review covering loans ≥ $500,000 (about 90% of outstandings).

Key dependencies and risks include the outcome of the portfolio review (expected complete by year end 2025), the trajectory of net charge‑offs (third quarter NCOs were $670,000, down 74.2% from the linked quarter), and the sustainability of core deposit growth (core deposits $960.1 million, 78.37 of total deposits). Watch the allowance versus identified problem exposure, any further provisioning, and quarterly NCO trends over the next two quarters to judge whether credit volatility and earnings stability materially improve.

Results reflect ongoing efforts to mitigate credit risk and enhance asset quality metrics for the long term, as well as the continued growth of Pathfinder’s core deposit franchise, deliberate liability pricing, net interest margin resilience, and operating expense discipline

OSWEGO, N.Y., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the third quarter ended September 30, 2025.

The holding company for Pathfinder Bank (“the Bank”) reported net income attributable to common shareholders of $626,000, or $0.10 per diluted share in the third quarter of 2025, compared to $31,000 or less than $0.01 per diluted share in the second quarter of 2025. The Company recorded a net loss attributable to common shareholders of $4.6 million or $0.75 per share in the third quarter of 2024.

Third Quarter 2025 Highlights and Key Developments

• Provision expense was $3.5 million, compared to $1.2 million in the quarter ended June 30, 2025 (the "linked quarter") and $9.0 million in the year-ago period, reflecting proactive measures that remain ongoing to mitigate credit risk and enhance asset quality metrics for the long term. These include a prudent increase in reserves during the third quarter of 2025, in conjunction with an ongoing comprehensive portfolio review that the Company initiated in September, encompassing performing and nonperforming loans of $500,000 or more, representing approximately 90% of all outstandings. This review is expected to be completed by the end of 2025.
• Allowance for credit losses increased to $18.7 million at period end, increasing $2.7 million during the third quarter and $1.4 million from September 30, 2024. Net charge offs (“NCOs”) were $670,000 in the third quarter of 2025, declining 74.2% from the linked quarter and 92.3% from the year-ago period.
• Loans totaled $898.5 million at period end, compared to $909.7 million on June 30, 2025, and $921.7 million on September 30, 2024. Commercial loans were $543.7 million or 60.5% of total loans at period end, compared to $549.1 million on June 30, 2025, and $534.5 million on September 30, 2024.
• Total deposits grew to $1.23 billion at period end, compared to $1.22 billion on June 30, 2025, and $1.20 billion on September 30, 2024. During the third quarter of 2025, total balances increased on growth in core deposits, more than offsetting reductions in higher-cost time deposits. Core deposits grew to $960.1 million, or 78.37% of total deposits at period end, from $958.8 million on June 30, 2025, and $926.4 million on September 30, 2024.
• Net interest income was $11.6 million and net interest margin (“NIM”) was 3.34%, including loan and investment prepayment penalties contributing a combined $260,000 to net interest income and 7 basis points to NIM. For the linked quarter, net interest income and NIM were $10.8 million and 3.11%, respectively. In the year-ago period, a catch-up interest payment contributed $887,000 to net interest income of $11.7 million and 25 basis points to NIM of 3.34%.
• Noninterest income was $1.5 million, including a net death benefit of $32,000 on bank owned life insurance (“BOLI”). For the linked quarter, noninterest income was negative $1.5 million, including a pre-tax loss of $3.1 million recorded as a lower of cost or market adjustment to loans held for sale (“LOCOM HFS adjustment”). In the year-ago period, noninterest income was $1.7 million, including a net death benefit of $175,000 on BOLI.
• The efficiency ratio was 68.77%, compared to 65.66% in the linked quarter and 75.78% in the year-ago period. The efficiency ratio, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.
• Pre-tax, pre-provision (“PTPP”) net income was $4.1 million, compared to $4.2 million in the linked quarter and $3.3 million in the year-ago period. PTPP net income, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses. 
  
  

“Recent asset quality related to certain legacy loans has resulted in unacceptable levels of credit volatility,” said President and Chief Executive Officer James A. Dowd. “We’re committed to advancing our dynamic credit risk management framework, emphasizing enhanced portfolio analytics, rigorous policy standards, stringent underwriting criteria, and a measured approach to new loan production that favors local consumer and small and mid-sized businesses lending over highly concentrated credit relationships. In addition, we initiated a new, comprehensive review of the entire loan portfolio, scheduled to be completed by year end, which we believe will enable us to make significant strides toward reducing the volatility of credit costs in 2026 and beyond, clearing a path for consistent and sustainable improvement in earnings over time.” 

Dowd added, “Third quarter results also underscore the benefits of our disciplined approach to balance sheet management. We’ve made steady progress in expanding Pathfinder’s core deposit base across our Oswego and Onondaga county markets with a deliberate approach to pricing, providing the Bank with a stable, relationship-driven source of funding to support community-based lending.”

Net Interest Income and Net Interest Margin
Third quarter 2025 net interest income was $11.6 million, an increase of $786,000, or 7.3%, from the second quarter of 2025. An increase in interest and dividend income of $554,000 from the linked quarter was attributed to an average yield increase of 16 basis points on all interest-earning assets. A 34 basis point increase in loan yields included a 9 basis point benefit from $200,000 in loan prepayment penalty income in the third quarter of 2025. An overall 14 basis point decrease in taxable securities yield included a 5 basis point benefit from $60,000 in investment prepayment penalty income in the third quarter of 2025. In addition, average balances of loans, taxable securities and tax-exempt securities declined by $4.6 million, $3.8 million and $334,000, respectively. The increases in loan interest income, dividends, and federal funds sold and interest-earning deposits were $693,000, $23,000, and $63,000, respectively, partially offset by decreases in taxable and tax-exempt securities income of $215,000 and $10,000, respectively. A decrease in interest expense from the second quarter of 2025 of $232,000 was primarily attributed to a 7 basis point decline in the average cost of total interest-bearing liabilities, highlighted by a 10 basis point reduction in the cost of interest-bearing deposits that resulted from the Bank’s deliberate pricing adjustments.

NIM was 3.34% in the third quarter of 2025, compared to 3.11% in the second quarter of 2025. The increase of 23 basis points reflected lower average interest-bearing deposit costs in the third quarter of 2025, as well as 7 basis points attributed to prepayment penalty income.  

Third quarter 2025 net interest income was $11.6 million, a decrease of $132,000, or 1.1%, from the year-ago period, or an increase of $755,000, or 7.0%, when excluding an $887,000 third quarter 2024 catch-up interest payment associated with purchased loan pool positions. A decrease in interest and dividend income of $1.5 million was attributed to the third quarter 2024 catch-up interest payment, as well as declines in the average yield on total interest-bearing assets, loans, and fed funds sold and interest-bearing deposits of 36 basis points, 22 basis points, and 148 basis points, respectively. Average loan balances also declined by $7.7 million from the year-ago period, with a corresponding decrease in loan interest income of $626,000. A decrease in interest expense of $1.3 million was primarily attributed to a 45 basis point decline in the average cost of total interest-bearing liabilities, highlighted by a 39 basis point reduction in the cost of interest bearing deposits, as well as paydowns of brokered deposits and borrowings utilizing a portion of the low-cost liquidity provided by core deposits acquired as part of last year’s East Syracuse branch transaction.

NIM was 3.34% in the third quarter of 2025 with 7 basis points attributed to prepayment penalty income, compared to 3.34% in the third quarter of 2024 with 25 basis points from the catch-up interest payment received in the third quarter of 2024. As a result of the declining rate environment and the 2024 East Syracuse branch acquisition, NIM reflected lower average deposit and borrowing costs in the third quarter of 2025, offset by lower average yields on earning assets, as compared to the year-ago period.

Noninterest Income
Third quarter 2025 noninterest income totaled $1.5 million. In the linked quarter, noninterest income was negative $1.5 million, reflecting a pre-tax loss of $3.1 million on the sale of nonperforming and classified loans recorded as a second quarter 2025 LOCOM HFS adjustment. In the year-ago period, noninterest income was $1.7 million, including $367,000 in third quarter 2024 revenue from the insurance agency business sold in October 2024.

Compared to the linked quarter, third quarter 2025 noninterest income reflected increases of $130,000 in earnings and gain on BOLI driven by a $32,000 net death benefit, as well as the timing of new policy purchases and like-kind exchanges of existing policies. In addition, third quarter 2025 noninterest income, compared to the linked quarter, included increases in debit card interchange fees of $37,000 and service charges on deposit accounts of $24,000. Compared to the linked quarter, third quarter 2025 noninterest income also reflected gains on sales of loans and foreclosed real estate of $38,000, an increase in loan servicing fees of $16,000, a decrease of $275,000 in net unrealized gains on marketable equity securities, and a $12,000 increase in net realized losses on sales and redemptions of investment securities.

Compared to the third quarter of 2024, noninterest income reflected a decrease of $75,000 in earnings and gains on BOLI. The decline reflects the impact of new BOLI policy purchases made during the current year and differences in net death benefits recorded in the third quarter of 2025 and the year-ago period of $32,000 and $175,000, respectively. In addition, third quarter 2025 noninterest income, compared to the year-ago period, included a $12,000 increase in service charges on deposit accounts and a decrease of $83,000 in debit card interchange fees. Compared to the year-ago period, third quarter 2025 noninterest income also reflected increases of $83,000 in net unrealized gains on marketable equity securities, $34,000 in loan servicing fees, and $31,000 in gains on sales of loans and foreclosed real estate, as well as a decrease of $176,000 in net realized losses on sales and redemptions of investment securities.

Noninterest Expense
Noninterest expense totaled $8.9 million in the third quarter of 2025, increasing $875,000 from $8.1 million in the linked quarter and decreasing $1.3 million from $10.3 million in the year-ago period. The decrease from the year-ago period was primarily due to $1.6 million in one-time transaction-related expenses for last year’s East Syracuse branch acquisition, in addition to $308,000 in costs associated with the insurance agency business sold in October 2024.

Salaries and benefits were $5.0 million in the third quarter of 2025, increasing $480,000 from the linked quarter and $46,000 from the year-ago period. The increase from the second quarter of 2025 was due to one additional workday in the quarter driving an additional $100,000 of salaries, an increase in medical claims of $146,000 expected to be reimbursed by stop loss insurance, an increase in retirement plan costs of $89,000, as well as an increase of $152,000 related to reduced salary deferrals linked to reduced loan origination activities. The increase of $46,000 from the year-ago period was primarily due to an increase in medical claims expected to be reimbursed by stop loss insurance.

Building and occupancy was $1.4 million in the third quarter of 2025, increasing $169,000 from the linked quarter and $265,000 from the year-ago quarter. The increase from the linked quarter reflected a $133,000 increase due to periodic building maintenance, as well as increases in property taxes of $17,000 and utilities costs of $7,000. The increase from the year-ago period was primarily due to a $121,000 increase in building maintenance during the third quarter of 2025, and higher costs related to building and land leases, property taxes, and utilities of $54,000, $46,000, and $27,000, respectively. These increases from the year-ago period were primarily due to timing of ongoing facilities-related costs associated with operating the East Syracuse branch acquired early in the third quarter of 2024.

Data processing expense was $641,000 in the third quarter of 2025, decreasing $26,000 from the linked quarter and $31,000 from the year-ago period. The decrease from the linked quarter reflects lower costs primarily associated with check and ATM processing charges. The decrease from the year-ago period was driven by decreases of $78,000 in data processing supplies and $24,000 in ATM processing costs, partially offset by year-over-year increases in recurring data processing costs amounting to $71,000, primarily due to software upgrades completed as part of the Company’s ongoing technology modernization initiatives.

FDIC assessment expense was $171,000 in the third quarter of 2025 and zero in the linked quarter due to modest over-accruals in prior periods, compared to $228,000 in the year-ago period.

Annualized noninterest expense represented 2.40% of average assets in the third quarter of 2025, compared to 2.18% and 2.75% in the linked and year-ago periods. The efficiency ratio was 68.77%, compared to 65.66% and 75.78% in the linked and year-ago periods, respectively. 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.

Net Income
For the third quarter of 2025, net income attributable to common shareholders was $626,000, or $0.10 per basic and diluted share. Linked quarter net income was $31,000, or less than $0.01 per basic and diluted share. For the third quarter of 2024 the company reported a net loss of $4.6 million or $0.75 per basic and diluted share.

Statement of Financial Condition
As of September 30, 2025, the Company’s statement of financial condition reflects total assets of $1.47 billion, compared to $1.51 billion and $1.48 billion recorded on June 30, 2025, and September 30, 2024, respectively.

Loans totaled $898.5 million on September 30, 2025, decreasing $11.2 million or 1.2% during the third quarter and $23.1 million or 2.5% from one year prior. Consumer and residential loans totaled $356.2 million on September 30, 2025, decreasing $6.0 million or 1.6% during the third quarter and $32.5 million or 8.4% from one year prior. Commercial loans totaled $543.7 million on September 30, 2025, decreasing $5.4 million or 1.0% during the third quarter and increasing $9.2 million or 1.7% from one year prior.

With respect to liabilities, deposits totaled $1.23 billion on September 30, 2025, increasing 0.3% during the third quarter and 2.4% from one year prior. 

Shareholders’ equity totaled $126.3 million on September 30, 2025, increasing $1.9 million or 1.5% in the third quarter and increasing $6.1 million or 5.1% from one year prior. The third quarter 2025 increase primarily reflects a $1.6 million decrease in accumulated other comprehensive loss (“AOCL”), a $4,000 decrease in retained earnings, and a $329,000 increase in additional paid in capital. Noncontrolling interest, previously included in equity in the Statements of Financial Condition, was eliminated in October 2024 upon the sale of the Company’s 51% insurance agency ownership interest.

Asset Quality
The Company’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 $23.3 million, or 2.59% of total loans on September 30, 2025, compared to $11.7 million or 1.28% on June 30, 2025, and $16.2 million or 1.75% on September 30, 2024. The increase is the result of two loans associated with two local commercial relationships dating back to 2021 moving to nonperforming status.

NCOs after recoveries declined to $670,000, or an annualized 0.30% of average loans in the third quarter of 2025, from $2.6 million or 1.14% in the linked quarter and $8.7 million or 3.82% in the year-ago period.

Provision for credit loss expense was $3.5 million in the third quarter of 2025, reflecting an increase in credit loss reserves in the period. The increase is the result of two large commercial real estate relationships. The provision was $1.2 million and $9.0 million in the linked and year-ago quarters, respectively.

The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $18.7 million on September 30, 2025, compared to $16.0 million on June 30, 2025, and $17.3 million on September 30, 2024. As a percentage of total loans, ACL represented 2.08% on September 30, 2025, 1.76% on June 30, 2025, and 1.87% on September 30, 2024.

Liquidity
The Company has diligently ensured a strong liquidity profile as of September 30, 2025 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 $1.23 billion on September 30, 2025, compared to $1.22 billion on June 30, 2025, and $1.20 billion on September 30, 2024. Core deposits represented 78.37% of total deposits on September 30, 2025, compared to 78.47% on June 30, 2025, and 77.45% on September 30, 2024. The Bank 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.

On September 30, 2025, Pathfinder Bancorp had an available additional funding capacity of $138.3 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $53.3 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 September 29, 2025, 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 October 17, 2025 will be eligible for the dividend, which is scheduled for disbursement on November 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 September 30, 2025 stood at $15.68 per share. This positions the annualized dividend yield at 2.55%.

About Pathfinder Bancorp, Inc.
Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches, 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. 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 measure. 

PATHFINDER BANCORP, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
		2025												2024
SELECTED BALANCE SHEET DATA:		September 30,				June 30,				March 31,				December 31,				September 30,
ASSETS:
Cash and due from banks		$	19,317			$	16,183			$	18,606			$	13,963			$	18,923
Interest-earning deposits			21,255				15,292				32,862				17,609				16,401
Total cash and cash equivalents			40,572				31,475				51,468				31,572				35,324
Available-for-sale securities, at fair value			294,457				300,951				284,051				269,331				271,977
Held-to-maturity securities, at amortized cost			142,538				157,892				155,704				158,683				161,385
Marketable equity securities, at fair value			5,352				4,881				4,401				4,076				3,872
Federal Home Loan Bank stock, at cost			3,488				5,278				2,906				4,590				5,401
Loans held-for-sale			-				3,161				-				-				-
Loans, net of deferred fees			898,520				909,723				912,150				918,986				921,660
Less: Allowance for credit losses			18,654				15,983				17,407				17,243				17,274
Loans receivable, net			879,866				893,740				894,743				901,743				904,386
Premises and equipment, net			18,760				19,047				19,233				19,009				18,989
Operating lease right-of-use assets			1,124				1,115				1,356				1,391				1,425
Finance lease right-of-use assets			16,082				16,280				16,478				16,676				16,873
Accrued interest receivable			6,498				6,889				6,748				6,881				6,806
Foreclosed real estate			137				83				-				-				-
Intangible assets, net			5,518				5,675				5,832				5,989				6,217
Goodwill			5,056				5,056				5,056				5,056				5,752
Bank owned life insurance			31,145				31,045				24,889				24,727				24,560
Other assets			21,675				22,551				22,472				25,150				20,159
Total assets		$	1,472,268			$	1,505,119			$	1,495,337			$	1,474,874			$	1,483,126
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Interest-bearing deposits		$	1,028,782			$	1,030,155			$	1,061,166			$	990,805			$	986,103
Noninterest-bearing deposits			196,299				191,732				203,314				213,719				210,110
Total deposits			1,225,081				1,221,887				1,264,480				1,204,524				1,196,213
Short-term borrowings			38,000				75,500				27,000				61,000				60,315
Long-term borrowings			18,702				20,977				17,628				27,068				39,769
Subordinated debt			30,258				30,206				30,156				30,107				30,057
Accrued interest payable			1,134				813				844				546				236
Operating lease liabilities			1,326				1,313				1,560				1,591				1,621
Finance lease liabilities			16,479				16,566				16,655				16,745				16,829
Other liabilities			14,949				13,444				12,118				11,810				16,986
Total liabilities			1,345,929				1,380,706				1,370,441				1,353,391				1,362,026
Shareholders' equity:
Voting common stock shares issued and outstanding			4,794,225				4,788,109				4,761,182				4,745,366				4,719,788
Voting common stock		$	48			$	48			$	48			$	47			$	47
Non-voting common stock			14				14				14				14				14
Additional paid in capital			53,974				53,645				53,103				52,750				53,231
Retained earnings			79,560				79,564				80,163				77,816				73,670
Accumulated other comprehensive loss			(7,257	)			(8,858	)			(8,432	)			(9,144	)			(6,716	)
Total Pathfinder Bancorp, Inc. shareholders' equity			126,339				124,413				124,896				121,483				120,246
Noncontrolling interest			-				-				-				-				854
Total equity			126,339				124,413				124,896				121,483				121,100
Total liabilities and shareholders' equity		$	1,472,268			$	1,505,119			$	1,495,337			$	1,474,874			$	1,483,126

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

		Nine Months Ended September 30,								2025												2024
SELECTED INCOME STATEMENT DATA:		2025				2024				Q3				Q2				Q1				Q4				Q3
Interest and dividend income:
Loans, including fees		$	40,577			$	39,182			$	13,799			$	13,106			$	13,672			$	13,523			$	14,425
Debt securities:
Taxable			16,014				17,007				5,307				5,522				5,185				5,312				5,664
Tax-exempt			1,322				1,475				455				465				402				445				469
Dividends			158				456				44				21				93				164				149
Federal funds sold and interest-earning deposits			288				711				131				68				89				82				492
Total interest and dividend income			58,359				58,831				19,736				19,182				19,441				19,526				21,199
Interest expense:
Interest on deposits			21,220				22,670				6,957				7,318				6,945				7,823				7,633
Interest on short-term borrowings			1,606				3,476				566				495				545				700				1,136
Interest on long-term borrowings			264				597				127				72				65				136				202
Interest on subordinated debt			1,444				1,476				486				483				475				490				496
Total interest expense			24,534				28,219				8,136				8,368				8,030				9,149				9,467
Net interest income			33,825				30,612				11,600				10,814				11,411				10,377				11,732
Provision for (benefit from) credit losses:
Loans			5,018				10,118				3,341				1,173				504				988				9,104
Held-to-maturity securities			5				(90	)			-				5				-				(5	)			(31	)
Unfunded commitments			126				(43	)			154				19				(47	)			5				(104	)
Total provision for credit losses			5,149				9,985				3,495				1,197				457				988				8,969
Net interest income after provision for credit losses			28,676				20,627				8,105				9,617				10,954				9,389				2,763
Noninterest income:
Service charges on deposit accounts			1,158				1,031				404				380				374				405				392
Earnings and gain on bank owned life insurance			604				685				286				156				162				169				361
Loan servicing fees			311				279				113				97				101				96				79
Net realized (losses) gains on sales and redemptions of investment securities			(20	)			(320	)			(12	)			-				(8	)			249				(188	)
Gain on asset sale1 & 2			-				-				-				-				-				3,169				-
Net unrealized gains on marketable equity securities			783				31				145				420				218				166				62
Gains on sales of loans and foreclosed real estate			269				148				121				83				65				39				90
Fair value adjustment to loans held-for-sale3			(3,064	)			-				-				(3,064	)			-				-				-
Loss on sale of premises and equipment			-				(13	)			-				-				-				-				(13	)
Debit card interchange fees			398				610				217				180				1				265				300
Insurance agency revenue1			-				1,024				-				-				-				49				367
Other charges, commissions & fees			743				1,180				229				230				284				299				257
Total noninterest (loss) income			1,182				4,655				1,503				(1,518	)			1,197				4,906				1,707
Noninterest expense:
Salaries and employee benefits			13,980				13,687				5,005				4,525				4,450				4,123				4,959
Building and occupancy			3,976				2,864				1,399				1,230				1,347				1,254				1,134
Data processing			1,974				1,750				641				667				666				721				672
Professional and other services			2,093				3,078				709				778				606				608				1,820
Advertising			304				386				86				77				141				218				165
FDIC assessments			400				685				171				-				229				231				228
Audits and exams			306				416				132				60				114				123				123
Amortization expense			470				137				156				157				157				27				129
Insurance agency expense1			-				825				-				-				-				456				308
Community service activities			49				111				10				28				11				19				20
Foreclosed real estate expenses			76				82				26				29				21				20				27
Other expenses			1,802				1,852				601				510				691				744				674
Total noninterest expense			25,430				25,873				8,936				8,061				8,433				8,544				10,259
Income (loss) before provision for income taxes			4,428				(591	)			672				38				3,718				5,751				(5,789	)
Provision (benefit) for income taxes			797				(160	)			46				7				744				492				(1,173	)
Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.			3,631				(431	)			626				31				2,974				5,259				(4,616	)
Net income attributable to noncontrolling interest1			-				93				-				-				-				1,352				28
Net income (loss) attributable to Pathfinder Bancorp Inc.		$	3,631			$	(524	)		$	626			$	31			$	2,974			$	3,907			$	(4,644	)
Voting Earnings per common share - basic		$	0.58			$	(0.09	)		$	0.10			$	-			$	0.48			$	0.63			$	(0.75	)
Voting Earnings per common share - diluted4		$	0.57			$	(0.09	)		$	0.10			$	-			$	0.47			$	0.63			$	(0.75	)
Series A Non-Voting Earnings per common share- basic		$	0.58			$	(0.09	)		$	0.10			$	-			$	0.48			$	0.63			$	(0.75	)
Series A Non-Voting Earnings per common share- diluted4		$	0.57			$	(0.09	)		$	0.10			$	-			$	0.47			$	0.63			$	(0.75	)
Dividends per common share (Voting and Series A Non-Voting)		$	0.30			$	0.30			$	0.10			$	0.10			$	0.10			$	0.10			$	0.10

_{¹ Although 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. The Company sold its 51% membership interest in the Agency in October 2024.
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.
³ The loss reflects a valuation adjustment “Lower-of-cost-or-market" adjustment on loans held for sale to their estimated market value based on active sale negotiations.
⁴ Diluted earnings per share for the first quarter of 2025 has been updated to $0.47, from the $0.41 reported previously.}

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

		Nine Months Ended September 30,								2025												2024
FINANCIAL HIGHLIGHTS:		2025				2024				Q3				Q2				Q1				Q4				Q3
Selected Ratios:
Return on average assets			0.33	%			-0.05	%			0.17	%			0.01	%			0.81	%			1.07	%			-1.25	%
Return on average common equity			3.87	%			-0.57	%			1.98	%			0.10	%			9.64	%			12.85	%			-14.79	%
Return on average equity			3.87	%			-0.57	%			1.98	%			0.10	%			9.64	%			12.85	%			-14.79	%
Return on average tangible common equity1			6.42	%			-0.59	%			2.17	%			0.11	%			10.52	%			14.17	%			-15.28	%
Net interest margin			3.25	%			2.97	%			3.34	%			3.11	%			3.31	%			3.02	%			3.34	%
Loans / deposits			73.34	%			77.05	%			73.34	%			74.45	%			72.14	%			76.29	%			77.05	%
Core deposits/deposits2			78.37	%			77.45	%			78.37	%			78.47	%			78.31	%			76.86	%			77.45	%
Annualized non-interest expense / average assets			2.30	%			2.39	%			2.40	%			2.18	%			2.33	%			2.33	%			2.75	%
Commercial real estate / risk-based capital3			174.67	%			189.47	%			174.67	%			183.34	%			182.62	%			186.73	%			189.47	%
Efficiency ratio1			67.24	%			73.01	%			68.77	%			65.66	%			67.19	%			72.25	%			75.78	%
Other Selected Data:
Average yield on loans			5.94	%			5.82	%			6.09	%			5.75	%			5.97	%			5.87	%			6.31	%
Average cost of interest bearing deposits			2.76	%			3.12	%			2.71	%			2.81	%			2.76	%			3.12	%			3.11	%
Average cost of total deposits, including non-interest bearing			2.31	%			2.64	%			2.28	%			2.37	%			2.29	%			2.59	%			2.59	%
Deposits/branch4		$	102,090			$	99,684			$	102,090			$	101,824			$	105,373			$	100,377			$	99,684
Pre-tax, pre-provision net income1		$	12,392			$	9,566			$	4,058			$	4,216			$	4,118			$	3,282			$	3,278
Total revenue1		$	37,822			$	35,439			$	12,994			$	12,277			$	12,551			$	11,826			$	13,537
Share and Per Share Data:
Cash dividends per share		$	0.30			$	0.30			$	0.10			$	0.10			$	0.10			$	0.10			$	0.10
Book value per common share		$	20.46			$	19.71			$	20.46			$	20.17			$	20.33			$	19.83			$	19.71
Tangible book value per common share1		$	18.75			$	17.75			$	18.75			$	18.43			$	18.56			$	18.03			$	17.75
Basic and diluted weighted average shares outstanding - Voting			4,769				4,708				4,790				4,769				4,749				4,733				4,714
Basic earnings per share - Voting5		$	0.58			$	(0.09	)		$	0.10			$	-			$	0.48			$	0.63			$	(0.75	)
Diluted earnings per share - Voting5 & 6		$	0.57			$	(0.09	)		$	0.10			$	-			$	0.47			$	0.63			$	(0.75	)
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 earnings per share - Series A Non-Voting5		$	0.58			$	(0.09	)		$	0.10			$	-			$	0.48			$	0.63			$	(0.75	)
Diluted earnings per share - Series A Non-Voting5 & 6		$	0.57			$	(0.09	)		$	0.10			$	-			$	0.47			$	0.63			$	(0.75	)
Common shares outstanding at period end			6,175				6,100				6,175				6,168				6,141				6,126				6,100
Pathfinder Bancorp, Inc. Capital Ratios:
Company tangible common equity to tangible assets1			7.92	%			7.36	%			7.92	%			7.61	%			7.68	%			7.54	%			7.36	%
Company Total Core Capital (to Risk-Weighted Assets)			15.81	%			15.55	%			15.81	%			15.97	%			15.89	%			15.66	%			15.55	%
Company Tier 1 Capital (to Risk-Weighted Assets)			12.17	%			11.84	%			12.17	%			12.31	%			12.24	%			12.00	%			11.84	%
Company Tier 1 Common Equity (to Risk-Weighted Assets)			11.68	%			11.33	%			11.68	%			11.81	%			11.75	%			11.51	%			11.33	%
Company Tier 1 Capital (to Assets)			8.79	%			8.29	%			8.79	%			8.75	%			8.82	%			8.64	%			8.29	%
Pathfinder Bank Capital Ratios:
Bank Total Core Capital (to Risk-Weighted Assets)			14.71	%			14.52	%			14.71	%			14.87	%			14.86	%			14.65	%			14.52	%
Bank Tier 1 Capital (to Risk-Weighted Assets)			13.45	%			13.26	%			13.45	%			13.62	%			13.61	%			13.40	%			13.26	%
Bank Tier 1 Common Equity (to Risk-Weighted Assets)			13.45	%			13.26	%			13.45	%			13.62	%			13.61	%			13.40	%			13.26	%
Bank Tier 1 Capital (to Assets)			9.72	%			9.13	%			9.72	%			9.68	%			9.80	%			9.64	%			9.13	%

_{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 periods after June 30, 2024. 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.
⁶ Diluted earnings per share for the first quarter of 2025 has been updated to $0.47, from the $0.41 reported previously.}

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

		Nine Months Ended September 30,								2025												2024
ASSET QUALITY:		2025				2024				Q3				Q2				Q1				Q4				Q3
Total loan charge-offs		$	4,275			$	8,992			$	923			$	2,844			$	508			$	1,191			$	8,812
Total recoveries			668				174				253				247				168				171				90
Net loan charge-offs			3,607				8,818				670				2,597				340				1,020				8,722
Allowance for credit losses at period end			18,654				17,274				18,654				15,983				17,407				17,243				17,274
Nonperforming loans at period end			23,305				16,170				23,305				11,689				13,232				22,084				16,170
Nonperforming assets at period end		$	23,442			$	16,170			$	23,442			$	11,772			$	13,232			$	22,084			$	16,170
Annualized net loan charge-offs to average loans			0.53	%			1.31	%			0.30	%			1.14	%			0.15	%			0.44	%			3.82	%
Allowance for credit losses to period end loans			2.08	%			1.87	%			2.08	%			1.76	%			1.91	%			1.88	%			1.87	%
Allowance for credit losses to nonperforming loans			80.04	%			106.83	%			80.04	%			136.74	%			131.55	%			78.08	%			106.83	%
Nonperforming loans to period end loans			2.59	%			1.75	%			2.59	%			1.28	%			1.45	%			2.40	%			1.75	%
Nonperforming assets to period end assets			1.59	%			1.09	%			1.59	%			0.78	%			0.88	%			1.50	%			1.09	%

		2025												2024
LOAN COMPOSITION:		September 30,				June 30,				March 31,				December 31,				September 30,
1-4 family first-lien residential mortgages		$	238,975			$	240,833			$	243,854			$	251,373			$	255,235
Residential construction			1,406				3,520				3,162				4,864				4,077
Commercial real estate			371,683				381,575				381,479				377,619				378,805
Commercial lines of credit			79,021				75,487				65,074				67,602				64,672
Other commercial and industrial			86,687				85,578				91,644				89,800				88,247
Paycheck protection program loans			74				85				96				113				125
Tax exempt commercial loans			6,229				6,349				4,446				4,544				2,658
Home equity and junior liens			50,106				49,339				52,315				51,948				52,709
Other consumer			65,694				68,439				71,681				72,710				76,703
Subtotal loans			899,875				911,205				913,751				920,573				923,231
Deferred loan fees			(1,355	)			(1,482	)			(1,601	)			(1,587	)			(1,571	)
Total loans		$	898,520			$	909,723			$	912,150			$	918,986			$	921,660

		2025												2024
DEPOSIT COMPOSITION:		September 30,				June 30,				March 31,				December 31,				September 30,
Savings accounts		$	123,958			$	129,252			$	129,898			$	128,753			$	129,053
Time accounts			333,211				341,063				349,673				360,716				352,729
Time accounts in excess of $250,000			143,026				144,355				149,922				142,473				140,181
Money management accounts			9,539				9,902				10,774				11,583				11,520
MMDA accounts			298,653				278,919				306,281				239,016				250,007
Demand deposit interest-bearing			115,274				120,083				109,941				101,080				97,344
Demand deposit noninterest-bearing			196,299				191,732				203,314				213,719				210,110
Mortgage escrow funds			5,121				6,581				4,677				7,184				5,269
Total deposits		$	1,225,081			$	1,221,887			$	1,264,480			$	1,204,524			$	1,196,213

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

		Nine Months Ended September 30,								2025									2024
SELECTED AVERAGE BALANCES:		2025				2024				Q3				Q2				Q3
Interest-earning assets:
Loans		$	911,419			$	898,361			$	906,759			$	911,347			$	914,467
Taxable investment securities			427,656				427,311				431,227				435,022				415,751
Tax-exempt investment securities			34,254				29,499				33,980				34,314				30,382
Fed funds sold and interest-earning deposits			13,306				20,161				16,866				10,070				42,897
Total interest-earning assets			1,386,635				1,375,332				1,388,832				1,390,753				1,403,497
Noninterest-earning assets:
Other assets			116,001				99,200				114,837				118,280				103,856
Allowance for credit losses			(16,777	)			(16,511	)			(15,595	)			(17,342	)			(16,537	)
Net unrealized losses on available-for-sale securities			(10,245	)			(10,184	)			(9,949	)			(10,838	)			(9,161	)
Total assets		$	1,475,614			$	1,447,837			$	1,478,125			$	1,480,853			$	1,481,655
Interest-bearing liabilities:
NOW accounts		$	115,494			$	100,922			$	120,696			$	113,994			$	102,868
Money management accounts			10,435				11,782				10,105				10,302				11,828
MMDA accounts			277,306				217,580				276,599				298,907				227,247
Savings and club accounts			129,059				115,875				127,696				129,736				127,262
Time deposits			493,033				521,832				490,735				489,490				514,050
Subordinated loans			30,174				29,978				30,225				30,173				30,025
Borrowings			68,656				129,943				73,556				61,803				122,129
Total interest-bearing liabilities			1,124,157				1,127,912				1,129,612				1,134,405				1,135,409
Noninterest-bearing liabilities:
Demand deposits			197,053				177,202				192,982				192,186				195,765
Other liabilities			29,436				19,382				29,320				29,037				24,855
Total liabilities			1,350,646				1,324,496				1,351,914				1,355,628				1,356,029
Shareholders' equity			124,968				123,341				126,211				125,225				125,626
Total liabilities & shareholders' equity		$	1,475,614			$	1,447,837			$	1,478,125			$	1,480,853			$	1,481,655

		Nine Months Ended September 30,								2025									2024
SELECTED AVERAGE YIELDS:		2025				2024				Q3				Q2				Q3
Interest-earning assets:
Loans			5.94	%			5.82	%			6.09	%			5.75	%			6.31	%
Taxable investment securities			5.04	%			5.45	%			4.96	%			5.10	%			5.59	%
Tax-exempt investment securities			5.15	%			6.67	%			5.36	%			5.42	%			6.17	%
Fed funds sold and interest-earning deposits			2.89	%			4.70	%			3.11	%			2.70	%			4.59	%
Total interest-earning assets			5.61	%			5.70	%			5.68	%			5.52	%			6.04	%
Interest-bearing liabilities:
NOW accounts			1.11	%			1.06	%			1.02	%			1.25	%			1.09	%
Money management accounts			0.11	%			0.11	%			0.12	%			0.12	%			0.10	%
MMDA accounts			3.17	%			3.64	%			3.20	%			3.25	%			3.54	%
Savings and club accounts			0.25	%			0.26	%			0.26	%			0.25	%			0.25	%
Time deposits			3.63	%			4.01	%			3.55	%			3.64	%			4.09	%
Subordinated loans			6.38	%			6.56	%			6.43	%			6.40	%			6.61	%
Borrowings			3.63	%			4.18	%			3.77	%			3.67	%			4.38	%
Total interest-bearing liabilities			2.91	%			3.34	%			2.88	%			2.95	%			3.34	%
Net interest rate spread			2.70	%			2.36	%			2.80	%			2.57	%			2.70	%
Net interest margin			3.25	%			2.97	%			3.34	%			3.11	%			3.34	%
Ratio of average interest-earning assets to average interest-bearing liabilities			123.35	%			121.94	%			122.95	%			122.60	%			123.61	%

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

		Nine Months Ended September 30,								2025												2024
NON-GAAP RECONCILIATIONS:		2025				2024				Q3				Q2				Q1				Q4				Q3
Tangible book value per common share:
Total equity										$	126,339			$	124,413			$	124,896			$	121,483			$	120,246
Intangible assets											(10,574	)			(10,731	)			(10,888	)			(11,045	)			(11,969	)
Tangible common equity (non-GAAP)											115,765				113,682				114,008				110,438				108,277
Common shares outstanding											6,175				6,168				6,144				6,126				6,100
Tangible book value per common share (non-GAAP)										$	18.75			$	18.43			$	18.56			$	18.03			$	17.75
Tangible common equity to tangible assets:
Tangible common equity (non-GAAP)										$	115,765			$	113,682			$	114,008			$	110,438			$	108,277
Tangible assets											1,461,694				1,494,388				1,484,449				1,463,829				1,471,157
Tangible common equity to tangible assets ratio (non-GAAP)											7.92	%			7.61	%			7.68	%			7.54	%			7.36	%
Return on average tangible common equity:
Average shareholders' equity		$	124,968			$	123,341			$	126,211			$	125,225			$	123,438			$	121,589			$	125,626
Average intangible assets			10,833				4,642				10,677				10,834				10,991				11,907				4,691
Average tangible equity (non-GAAP)			114,135				118,699				115,534				114,391				112,447				109,682				120,935
Net income (loss)			3,631				(524	)			626				31				2,974				3,907				(4,644	)
Net income (loss), annualized		$	7,322			$	(700	)		$	2,511			$	124			$	11,831			$	15,543			$	(18,475	)
Return on average tangible common equity (non-GAAP)1			6.42	%			-0.59	%			2.17	%			0.11	%			10.52	%			14.17	%			-15.28	%
Revenue, pre-tax, pre-provision net income, and efficiency ratio:
Net interest income		$	33,825			$	30,612			$	11,600			$	10,814			$	11,411			$	10,377			$	11,732
Total noninterest income			1,182				4,655				1,503				(1,518	)			1,197				4,906				1,707
Net realized (gains) losses on sales and redemptions of investment securities			(20	)			(320	)			(12	)			-				(8	)			249				(188	)
Gains on sales of loans and foreclosed real estate			269				148				121				83				65				39				90
Fair value adjustment to loans held-for-sale2			(3,064	)			-				-				(3,064	)			-				-				-
Gain on asset sale			-				-				-				-				-				3,169				-
Revenue (non-GAAP)3			37,822				35,439				12,994				12,277				12,551				11,826				13,537
Total non-interest expense			25,430				25,873				8,936				8,061				8,433				8,544				10,259
Pre-tax, pre-provision net income (non-GAAP)4		$	12,392			$	9,566			$	4,058			$	4,216			$	4,118			$	3,282			$	3,278
Efficiency ratio (non-GAAP)5			67.24	%			73.01	%			68.77	%			65.66	%			67.19	%			72.25	%			75.78	%

_{¹ Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity
² The loss reflects a valuation adjustment “Lower-of-cost-or-market" adjustment on loans held for sale to the estimated market value based on sale negotiation terms.
³ Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities, sales of loans and foreclosed real estate, and a gain on the October 2024 sale of the Company's insurance agency asset
⁴ Pre-tax, pre-provision net income equals revenue less total non-interest expense
5 Efficiency ratio equals noninterest expense divided by revenue}

_{The above information is unaudited and preliminary 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