OSWEGO, N.Y., July 30, 2026 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the second quarter ended June 30, 2026.
The holding company for Pathfinder Bank (“the Bank”) reported net income attributable to common shareholders of $2.7 million, or $0.42 per diluted share, in the second quarter of 2026, compared to $2.4 million, or $0.38 per diluted share, in the first quarter of 2026, and $31,000, or less than $0.01 per share, in the second quarter of 2025.
Second Quarter 2026 Highlights and Key Developments
- Second quarter 2026 net income reflected a $155,000 provision benefit attributed to the level of average loans outstanding in the period and the risk-based reserve build undertaken in the second half of 2025 to absorb future loss resolution activity related to individually analyzed commercial loans. The Company recorded a $168,000 provision benefit in the first quarter of 2026 and a $1.2 million provision expense in the second quarter of 2025.
- The Company’s allowance for credit losses (“ACL”) fully absorbed a second quarter 2026 charge-off of a previously reserved commercial loan associated with a single relationship identified through last year’s comprehensive commercial portfolio review. Net charge-offs were $1.9 million in the second quarter of 2026, compared to $284,000 in the first quarter of 2026 and $2.6 million in the second quarter of 2025. The ACL was $26.9 million, or 3.03% of total loans, on June 30, 2026, compared to $29.0 million, or 3.24% of total loans, on March 31, 2026, and $16.0 million, or 1.76% of loans, on June 30, 2025. Specific reserves, including those previously established in conjunction with last year’s comprehensive commercial portfolio review, represented 62.0% of the ACL at the end of the second quarter of 2026.
- Loans totaled $889.0 million at June 30, 2026, compared to $895.2 million at March 31, 2026, and $909.7 million at June 30, 2025. Commercial loans were $544.6 million or 61.3% of total loans at June 30, 2026, compared to $549.5 million at March 31, 2026 and $549.1 million at June 30, 2025.
- Deposits totaled $1.17 billion at June 30, 2026, compared to $1.21 billion at March 31, 2026, and $1.22 billion at June 30, 2025. Core deposits were $961.6 million or $81.9% of total deposits on June 30, 2026, compared to $993.7 million at March 31, 2026 and $958.8 million on June 30, 2025.
- Net interest income was $10.5 million in the second quarter of 2026, benefiting from the reallocation of underutilized liquidity into the available-for-sale (“AFS”) securities portfolio, compared to $10.3 million in the first quarter of 2026 and $10.8 million in the second quarter of 2025. Net interest margin (“NIM”) was 3.08% in the second quarter of 2026, compared to 3.10% in the linked quarter and 3.11% in the year-ago period.
- Noninterest expense was $8.7 million or 2.39% of average assets on an annualized basis in the second quarter of 2026, compared to $8.7 million or 2.48% of average assets in the first quarter of 2026 and $8.1 million or 2.18% of average assets in the second quarter of 2025.
- The efficiency ratio was 74.26% in the second quarter of 2026, compared to 75.65% in the first quarter of 2026 and 65.66% in the second quarter of 2025(1).
- Pre-tax, pre-provision (“PTPP”) net income was $3.0 million in the second quarter of 2026, compared to $2.8 million in the first quarter of 2026 and $4.2 million in the second quarter of 2025(1).
- Quarterly cash dividends payable to common stockholders of $0.10 per share were declared on June 29, 2026 and are payable on August 7, 2026.
“Pathfinder’s financial results reflect continued progression toward more consistent, durable profitability, with meaningful improvement in second quarter earnings and returns on assets and equity,” President and Chief Executive Officer James Dowd said. “Sequential growth in net interest income reflected an opportunistic reallocation of underutilized liquidity into the AFS securities portfolio, and third quarter results are expected to benefit more fully from these securities purchases undertaken in late May, utilizing borrowings at rates below those of wholesale funding alternatives. This approach enabled us to generate incremental earnings while preserving the flexibility to leverage Pathfinder’s low-cost core deposit franchise to fund future lending to our community bank’s businesses and consumers.”
Dowd added, “Performance was also supported by a modest net credit to provision, underscoring the benefits of the proactive, risk-based reserve build we completed last year and the ongoing stabilization of credit costs. The resolution of previously reserved commercial loans with unique risk characteristics improved overall portfolio quality without the need for incremental provision expense. Our second quarter 2026 asset quality metrics further reflects the comprehensive commercial portfolio review and reserve build completed at the end of last year, as well as the broad-based credit discipline initiatives implemented since mid-2024.”
(1) Non-GAAP financial metric. See “Notes on Non-GAAP Financial Measures” and non-GAAP reconciliation included herein for the most directly comparable financial measures.
Net Interest Income and Net Interest Margin
Second quarter 2026 net interest income was $10.5 million, an increase of $196,000, or 1.9%, from the first quarter of 2026. An increase in total interest and dividend income of $566,000 in the second quarter of 2026, from the linked quarter, was primarily attributed to a $34.9 million increase in average earning assets, as well as an average yield increase of 3 basis points on all interest-earning assets. An 11 basis points increase in average loan yields in the second quarter of 2026, from the linked quarter, was primarily attributable to the transfer of three commercial relationships to nonperforming status in the first quarter of 2026, in addition to originations of commercial real estate loans, which offset the impact of portfolio runoff from maturities and payoffs. A 16 basis points decrease in taxable securities average yield in the second quarter of 2026, from the linked quarter, reflected a $43.0 million increase in average taxable investment securities balances resulting from AFS securities purchases undertaken in the second quarter of 2026. In addition, average balances of loans, tax-exempt securities, and federal funds sold and interest-earning deposits declined in the second quarter of 2026, from the linked quarter, by $2.2 million, $384,000, and $5.5 million, respectively. Compared to the linked quarter, second quarter 2026 income from loan interest, taxable securities, tax-exempt securities and dividends increased by $213,000, $321,000, $33,000, and $38,000, respectively, while income from federal funds sold and interest earning deposits declined by $39,000. An increase in total interest expense in the second quarter of 2026, from the linked quarter, of $370,000 was attributed to a 5 basis points increase in the average cost of total interest-bearing liabilities, including an increase of 3 basis points in the average cost of interest-bearing deposits that was partially offset by decreases of 6 basis points in the average cost of borrowings and 3 basis points in the average cost of subordinated debt.
Second quarter 2026 NIM was 3.08%, compared to 3.10% in the linked quarter. The 2 basis points decrease from the linked quarter resulted from an increase in the cost of interest-bearing deposits, which more than offset higher earning asset yields.
Second quarter 2026 net interest income was $10.5 million, a decrease of $278,000, or 2.6%, from the year-ago period. A decrease in total interest and dividend income of $1.1 million in the second quarter of 2026, from the year-ago period, was primarily attributed to a $21.9 million decline in average earning asset balances and an average yield decrease of 24 basis points on all interest-earning assets. Average loan yields decreased 16 basis points from the year-ago period, driven by maturities and payoffs of higher-yielding loans, and elevated nonperforming loans for which specific reserves were established as appropriate prior to the second quarter of 2026. A 33 basis points decrease in taxable securities average yield in the second quarter of 2026, from the year-ago period, reflected a decline in average taxable investment securities balances and a declining rate environment. In addition, average balances of loans, taxable securities and tax-exempt securities declined in the second quarter of 2026, from the year-ago period, by $11.4 million, $14.8 million, and $1.2 million, respectively. Compared to the year-ago period, second quarter 2026 decreases in income from loan interest, taxable securities, and tax-exempt securities of $536,000, $602,000, and $97,000, respectively, were partially offset by increases in income from dividends of $66,000 and federal funds sold and interest earning deposits of $55,000. A decrease in total interest expense in the second quarter of 2026, from the year-ago period, of $836,000 was attributed to a 22 basis points decline in the average cost of total interest-bearing liabilities, including a reduction of 33 basis points in the average cost of interest-bearing deposits that was partially offset by an increase of 7 basis points in the average cost of borrowings, as well as an increase of 218 basis points in the average cost of subordinated debt that reset from bearing fixed to floating-rate interest after October 15, 2025.
Second quarter 2026 NIM was 3.08%, compared to 3.11% in the year-ago period. The decrease of 3 basis points primarily reflected lower earning asset yields that more than offset the reduction in the cost of interest-bearing deposits and other liabilities.
Noninterest Income
Second quarter 2026 noninterest income totaled $1.2 million. First quarter 2026 noninterest income totaled $1.1 million, which was reduced by $203,000 for fair value adjustments made in that period to $6.3 million in substandard loans that were transferred to held-for-sale status in the fourth quarter of 2025. Second quarter 2025 noninterest income totaled negative $1.5 million, including $3.1 million in fair value adjustments made in the year-ago period in connection with the sale of certain nonperforming and classified loans.
Compared to the linked quarter, second quarter 2026 noninterest income reflected increases of $74,000 in earnings and gain on bank owned life insurance (“BOLI”) and $49,000 in debit card interchange fees. In addition, compared to the linked quarter, second quarter 2026 noninterest income also reflected a decrease of $5,000 in net realized losses on sales and redemptions of investment securities, as well as decreases of $91,000 in gains on sales of loans and foreclosed real estate and $21,000 in loan servicing fees. Net unrealized gains on marketable equity securities, which include three limited partnership equity method investments, remains a variable contributor to noninterest income, decreasing $129,000 in the second quarter of 2026 from the linked quarter.
Compared to the year-ago period, second quarter 2026 noninterest income reflected increases of $174,000 in earnings and gains on BOLI, $8,000 in debit card interchange fees, and $1,000 in service charges on deposit accounts. In addition, compared to the year-ago period, second quarter 2026 noninterest income included an increase of $12,000 in gains on sales of loans and foreclosed real estate, as well as a decrease of $29,000 in loan servicing fees. Net unrealized gains on marketable equity securities, which include three limited partnership equity method investments, remains a variable contributor to noninterest income, decreasing $473,000 in the second quarter of 2026 from the year-ago period.
Noninterest Expense
Noninterest expense totaled $8.7 million in the second quarter of 2026, compared to $8.7 million in the first quarter of 2026 and $8.1 million in the second quarter of 2025.
Salaries and benefits expense was $4.7 million in the second quarter of 2026, decreasing $204,000 from the linked quarter and increasing $128,000 from the year-ago quarter. The Company recorded moderate increases in salaries, stock-based compensation, and payroll taxes compared to both periods, with the year-over-year increase also reflecting higher staffing levels. These increases were offset by the favorable impact of several non-operating items, including recoveries from medical claim refunds under the Company's self-insured health plan in the second quarter of 2026.
Building and occupancy expense was $1.4 million in the second quarter of 2026, increasing $53,000 from the linked quarter and $150,000 from the year-ago quarter. The increases from the linked and year-ago quarters reflected higher facility-related maintenance and repair expenses, including ATM servicing, branch maintenance and various property improvement activities.
Data processing expense was $774,000 in the second quarter of 2026, increasing $41,000 from the linked quarter and $107,000 from the year-ago period. The increases from the linked and year-ago quarters reflected higher costs primarily associated with data, ATM, and other technology maintenance costs.
Other expenses were $614,000 in the second quarter of 2026, increasing $139,000 from the linked quarter and $104,000 from the year-ago quarter. The increases from both the linked and year-ago quarters were primarily attributable to higher employee travel, training, and professional development expenses, as well as higher mortgage recording tax, liability insurance, and business development-related expenses. The year-over-year increase was also influenced by certain favorable accrual and expense reclassification adjustments recognized in the year-ago period.
Total noninterest expense comparisons also reflect FDIC assessments, which were zero in the second quarter of 2025, due to modest over-accruals in prior periods. Normalized FDIC assessment accruals have been recorded since June 30, 2025, including $204,000 and $232,000 in first and second quarters of 2026, respectively.
As a percentage of average assets, annualized noninterest expense represented 2.39% in the second quarter of 2026, compared to 2.48% and 2.18% in the linked and year-ago periods. The efficiency ratio was 74.26% in the second quarter of 2026, compared to 75.65% and 65.66% in the linked and year-ago periods, respectively(2). As the Company continues to maintain well controlled noninterest expenses, the efficiency ratio was elevated in the second quarter of 2026 by a reduction in revenues in the period, which the Company views as temporary. In addition, the absence of FDIC assessment expense in the second quarter of 2025, due to modest over-accruals in prior periods, lowered the efficiency ratio for the three months ended June 30, 2025.
(2) Non-GAAP financial metric. See “Notes on Non-GAAP Financial Measures” and non-GAAP reconciliation included herein for the most directly comparable financial measures.
Net Income
Net income attributable to common shareholders was $2.7 million, or $0.42 per basic and diluted share, in the second quarter of 2026, compared to $2.4 million, or $0.38 per basic and diluted share, in the first quarter of 2026, and $31,000, or less than $0.01 per basic and diluted share, in the second quarter of 2025.
Statement of Financial Condition
As of June 30, 2026, the Company’s statement of financial condition reflects total assets of $1.49 billion, compared to $1.42 billion on March 31, 2026, and $1.51 billion on June 30, 2025.
Loans totaled $889.0 million on June 30, 2026, decreasing $6.2 million or 0.7% during the second quarter of 2026 and $20.7 million or 2.3% from one year prior. Consumer and residential loans totaled $345.2 million on June 30, 2026, decreasing $1.8 million or 0.5% during the second quarter of 2026 and $16.9 or 4.7% from one year prior. Commercial loans totaled $544.6 million on June 30, 2026, decreasing $4.9 million or 0.9% during the second quarter of 2026 and $4.5 million or 0.8% from one year prior.
Investment securities totaled $483.7 million on June 30, 2026, increasing $82.1 million or 20.4% during the second quarter of 2026 and $20.0 million or 4.3% from one year prior. The increase from March 31, 2026 was primarily due to the purchase of AFS securities during the second quarter of 2026, enabling the Company to generate incremental earnings while preserving the flexibility to use core deposits to fund future loan growth, even as the held-to maturity (“HTM”) portfolio experienced runoff from maturities, calls, and paydowns.
With respect to liabilities, deposits totaled $1.17 billion on June 30, 2026, decreasing $37.5 million or 3.1% during the second quarter of 2026 and $47.6 million or 3.9% from one year prior, as the Bank utilizes deliberate pricing and account management to facilitate intentional runoff of higher-cost brokered deposits and non-relationship time deposits. The decrease from March 31, 2026 reflected a shift in deposit mix toward noninterest-bearing demand deposits, while other deposit categories declined, including higher-cost time deposits with balances of less than $250,000. The decrease from June 30, 2025 reflects growth in MMDA deposits and both interest- and noninterest-bearing demand deposits, offset by runoff of higher-cost time deposits.
Core deposits totaled $961.6 million, or 81.9% of total deposits, on June 30, 2026, decreasing $32.1 million or 3.2% during the second quarter of 2026 and increasing $2.8 million or 0.3% from one year prior.
Borrowings were utilized in the second quarter of 2026 to fund purchases of AFS securities at rates below those of wholesale funding alternatives, including brokered deposits. As a result, borrowings grew to $133.4 million on June 30, 2026, increasing $106.0 million during the second quarter of 2026 and $36.9 million from one year prior.
Shareholders’ equity totaled $125.7 million on June 30, 2026, increasing $2.2 million or 1.7% during the second quarter of 2026 and $1.3 million or 1.1% from one year prior. The increase from March 31, 2026 primarily reflected a $2.0 million increase in retained earnings and a $529,000 increase in additional paid in capital, which more than offset a $408,000 increase in accumulated other comprehensive loss (“AOCL”).
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.
The Company believes it is sufficiently collateralized and reserved, with an ACL of $26.9 million on June 30, 2026, compared to $29.0 million on March 31, 2026, and $16.0 million on June 30, 2025. During the second quarter of 2026, the Company charged off a $1.6 million commercial loan with unique risk characteristics ("LURC") that had been identified through last year's comprehensive commercial portfolio review. The charge-off was fully covered by previously established ACL reserves. As a percentage of total loans, ACL represented 3.03% on June 30, 2026, 3.24% on March 31, 2026, and 1.76% on June 30, 2025.
The ACL continues to reflect a $11.4 million risk-based reserve build at the end of 2025, following a forward-looking assessment of LURCs identified through a comprehensive review of approximately 90% of the Bank’s commercial portfolio. Specific reserves, including those established in conjunction with 2025’s comprehensive commercial portfolio review, represented 62.0% of the Company’s ACL at the end of the second quarter of 2026.
Individually analyzed loans (“IALs”) including LURCs totaled $78.6 million on June 30, 2026, improving from $84.7 million on March 31, 2026. At the end of the second quarter of 2026, LURCs consisted of 67% commercial real estate (“CRE”) loans, which had a weighted average loan-to-value (“LTV”) ratio of 66%(3).
Nonperforming loan (“NPL”) levels may fluctuate near term as IALs progress through resolution activities. NPLs were $35.7 million, or 4.02% of total loans on June 30, 2026, compared to $38.2 million, or 4.26% of total loans on March 31, 2026, and $11.7 million or 1.28% of total loans on June 30, 2025. NPLs decreased in the second quarter of 2026, largely as the result of the $1.6 million charge-off of the aforementioned LURC associated with a single commercial relationship.
The Company’s ACL fully absorbed second quarter 2026 net charge-offs (“NCOs”) of $1.9 million, or an annualized 0.83% of average loans, with gross charge-offs partially offset by $298,000 in recoveries.
A credit loss provision benefit of $155,000 was recorded in the second quarter of 2026, attributed to the level of average loans outstanding in the period and the risk-based reserve build undertaken in the second half of 2025 to absorb future loss resolution activity related to commercial IALs. A credit loss provision benefit of $168,000 was recorded in the first quarter of 2026 and the provision for credit loss expense was $1.2 million in the year-ago period.
(3) Weighted average LTV is the loan principal balance as a percentage of book balance for commercial real estate (CRE) individually analyzed loans, excluding two loans with LTVs >100% based on collateral that is expected to be sold to new owners or sponsors intending to reposition these transitional or value-add properties. Collateral values are determined using most-recent appraisals, purchase offers, auction bids, broker opinions, and business financials.
Liquidity
The Company has diligently ensured a strong liquidity profile as of June 30, 2026 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 $1.17 billion on June 30, 2026, compared to $1.21 billion on March 31, 2026, and $1.22 billion on June 30, 2025. Core deposits, as a percentage of total deposits, represented 81.89% on June 30, 2026, compared to 82.01% on March 31, 2026, and 78.47% on June 30, 2025. 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 June 30, 2026, the Bank had an available additional funding capacity of $81.7 million with the Federal Home Loan Bank of New York and $54.3 million with the Federal Reserve Bank, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $15.0 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 June 29, 2026, 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.
Shareholders registered by July 17, 2026 will be eligible for the dividend, which is scheduled for disbursement on August 7, 2026. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.
Evaluating the Company’s market performance, the closing stock price as of June 30, 2026 stood at $15.88 per share. This positions the annualized dividend yield at 2.52%.
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 include, but are not limited to, statements regarding expected earnings normalization, future credit costs, the adequacy of the allowance for credit losses, reduced incremental reserve pressure, potential expansion of regulatory capital ratios, dividend sustainability, liquidity capacity, funding availability, and the Company’s business strategy and outlook for 2026 and beyond.
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, competitive and regulatory 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 expressed or implied by the forward-looking statements as a result of numerous factors. Although it is not possible to identify all factors that may cause actual results to differ, such 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 prevailing interested rates; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; the risk that actual credit losses, borrower performance, collateral values, or loan migration patterns differ from management’s forward-looking estimates or assumptions; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels or changes in deposit mix that may necessitate increased borrowing to fund loans and investments; access to wholesale or other funding sources; operational risks including, cybersecurity, fraud, model risk and natural disasters; credit risk management; and the risk that the Company may not be successful in the implementation of its business strategy.
Additional factors that could cause actual results to differ materially are described in the Company’s Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission (“SEC”), which are available at the SEC’s website, www.sec.gov. While the Company believes it has identified and discussed the material risks affecting its business, there may be additional risks and uncertainties not currently known or considered immaterial that could affect the forward-looking statements made herein.
Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictions of future results. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by applicable law.
Notes on Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures, including, but not limited to the efficiency ratio, pre-tax, pre-provision net income, tangible common equity, tangible book value per share, and return on average tangible common equity. 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 generally accepted accounting principles in the United States (“GAAP”), or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable GAAP measure.
The Company believes these non-GAAP financial measures provide useful information to investors by assisting in the evaluation of the Company’s operating performance, operating efficiency, financial condition, and trends, and by facilitating comparisons with prior periods and with peer institutions. In particular, management uses these measures to assess expense control relative to revenue generation, underlying profitability excluding certain non-recurring or non-operational items, and capital strength on a basis that it believes is meaningful for internal planning and external analysis.
These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP and should be considered only in conjunction with the Company’s GAAP financial results.
Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures within this release.
PATHFINDER BANCORP, INC.Selected Financial Information (Unaudited)(Dollars in thousands, except per share amounts)2026 2025 SELECTED BALANCE SHEET DATA: June 30, March 31, December 31, September 30, June 30, ASSETS: Cash and due from banks $11,402 $13,915 $11,521 $19,317 $16,183 Interest-earning deposits 14,648 25,244 19,649 21,255 15,292 Total cash and cash equivalents 26,050 39,159 31,170 40,572 31,475 Available-for-sale securities, at fair value 366,147 272,971 276,815 294,457 300,951 Held-to-maturity securities, at amortized cost 111,371 122,432 130,324 142,538 157,892 Marketable equity securities, at fair value 6,213 6,207 6,034 5,352 4,881 Federal Home Loan Bank stock, at cost 6,935 2,169 2,560 3,488 5,278 Loans held-for-sale 5,700 5,700 5,900 - 3,161 Loans, net of deferred fees 888,975 895,202 896,670 898,520 909,723 Less: Allowance for credit losses 26,920 28,966 29,436 18,654 15,983 Loans receivable, net 862,055 866,236 867,234 879,866 893,740 Premises and equipment, net 17,669 17,882 18,008 18,760 19,047 Operating lease right-of-use assets 1,046 1,072 1,098 1,124 1,115 Finance lease right-of-use assets 15,489 15,687 15,885 16,082 16,280 Accrued interest receivable 6,511 5,832 6,328 6,498 6,889 Foreclosed real estate 137 137 137 137 83 Intangible assets, net 5,048 5,205 5,362 5,518 5,675 Goodwill 5,056 5,056 5,056 5,056 5,056 Bank owned life insurance 31,671 31,631 31,374 31,145 31,045 Other assets 25,405 24,606 23,351 21,675 22,551 Total assets $1,492,503 $1,421,982 $1,426,636 $1,472,268 $1,505,119 LIABILITIES AND SHAREHOLDERS' EQUITY: Deposits: Interest-bearing deposits $960,706 $1,005,092 $987,471 $1,028,782 $1,030,155 Noninterest-bearing deposits 213,563 206,635 196,377 196,299 191,732 Total deposits 1,174,269 1,211,727 1,183,848 1,225,081 1,221,887 Short-term borrowings 125,000 15,000 44,000 38,000 75,500 Long-term borrowings 8,374 12,374 14,074 18,702 20,977 Subordinated debt 30,155 30,155 30,155 30,258 30,206 Accrued interest payable 469 451 424 1,134 813 Operating lease liabilities 1,259 1,282 1,304 1,326 1,313 Finance lease liabilities 16,201 16,295 16,390 16,479 16,566 Other liabilities 11,032 11,115 13,990 14,949 13,444 Total liabilities 1,366,759 1,298,399 1,304,185 1,345,929 1,380,706 Shareholders' equity: Voting common stock shares issued and outstanding 4,898,360 4,876,213 4,805,361 4,794,225 4,788,109 Voting common stock $49 $49 $48 $48 $48 Non-voting common stock 14 14 14 14 14 Additional paid in capital 55,624 55,095 54,390 53,974 53,645 Retained earnings 77,180 75,140 73,366 79,560 79,564 Accumulated other comprehensive loss (7,123) (6,715) (5,367) (7,257) (8,858)Total shareholders' equity 125,744 123,583 122,451 126,339 124,413 Total liabilities and shareholders' equity $1,492,503 $1,421,982 $1,426,636 $1,472,268 $1,505,119
The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.
Six Months Ended June 30,2026 2025 SELECTED INCOME STATEMENT DATA: 2026 2025 Q2 Q1 Q4 Q3 Q2 Interest and dividend income: Loans, including fees $24,927 $26,778 $12,570 $12,357 $12,983 $13,799 $13,106 Debt securities: Taxable 9,519 10,707 4,920 4,599 4,681 5,307 5,522 Tax-exempt 703 867 368 335 385 455 465 Dividends 136 114 87 49 83 44 21 Federal funds sold and interest-earning deposits 285 157 123 162 162 131 68 Total interest and dividend income 35,570 38,623 18,068 17,502 18,294 19,736 19,182 Interest expense: Interest on deposits 12,315 14,263 6,182 6,133 6,768 6,957 7,318 Interest on short-term borrowings 870 1,040 604 266 365 566 495 Interest on long-term borrowings 213 137 99 114 123 127 72 Interest on subordinated debt 1,296 958 647 649 528 486 483 Total interest expense 14,694 16,398 7,532 7,162 7,784 8,136 8,368 Net interest income 20,876 22,225 10,536 10,340 10,510 11,600 10,814 (Benefit from) provision for credit losses: Loans (368) 1,677 (182) (186) 11,385 3,341 1,173 Held-to-maturity securities (22) 5 (22) - (86) - 5 Unfunded commitments 67 (28) 49 18 (105) 153 19 Total (benefit from) provision for credit losses, net (323) 1,654 (155) (168) 11,194 3,494 1,197 Net interest income after provision for (benefit from) credit losses 21,199 20,571 10,691 10,508 (684) 8,106 9,617 Noninterest income (loss): Service charges on deposit accounts 757 754 381 376 381 404 380 Earnings and gain on bank owned life insurance 586 318 330 256 230 286 156 Loan servicing fees 157 198 68 89 75 113 97 Net realized losses on sales and redemptions of investment securities (5) (8) - (5) (3) (12) - Loss on asset sale - - - - (115) - - Net unrealized gains (loss) on marketable equity securities 23 638 (53) 76 667 145 420 Gains on sales of loans and foreclosed real estate 281 148 95 186 133 121 83 Fair value adjustment to loans held-for-sale 1 (203) (3,064) - (203) (398) - (3,064)Loss on sale of premises and equipment - - - - (37) - - Debit card interchange fees 327 181 188 139 112 217 180 Other charges, commissions & fees 428 514 215 213 268 229 230 Total noninterest income (loss) 2,351 (321) 1,224 1,127 1,313 1,503 (1,518)Noninterest expense: Salaries and employee benefits 9,510 8,975 4,653 4,857 4,924 5,005 4,525 Building and occupancy 2,707 2,577 1,380 1,327 1,337 1,399 1,230 Data processing 1,507 1,333 774 733 698 641 667 Professional and other services 1,308 1,384 628 680 657 709 778 Advertising 155 218 66 89 155 86 77 FDIC assessments 436 229 232 204 204 171 - Audits and exams 279 174 139 140 169 132 60 Amortization expense 314 314 157 157 157 156 157 Community service activities 22 39 1 21 21 10 28 Foreclosed real estate expenses 27 50 18 9 30 26 29 Other expenses 1,089 1,201 614 475 798 602 510 Total noninterest expense 17,354 16,494 8,662 8,692 9,150 8,937 8,061 Income (loss) before provision for income taxes 6,196 3,756 3,253 2,943 (8,521) 672 38 Provision for (benefit from) income taxes 1,115 751 585 530 (2,957) 46 7 Net income (loss) $5,081 $3,005 $2,668 $2,413 $(5,564) $626 $31 Voting Earnings per common share - basic $0.80 $0.48 $0.42 $0.38 $(0.89) $0.10 $- Voting Earnings per common share - diluted $0.80 $0.47 $0.42 $0.38 $(0.88) $0.10 $- Series A Non-Voting Earnings per common share- basic $0.80 $0.48 $0.42 $0.38 $(0.89) $0.10 $- Series A Non-Voting Earnings per common share- diluted $0.80 $0.47 $0.42 $0.38 $(0.88) $0.10 $- Dividends per common share (Voting and Series A Non-Voting) $0.20 $0.20 $0.10 $0.10 $0.10 $0.10 $0.10
1 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.
The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.
2026 2025 FINANCIAL HIGHLIGHTS: 2026 2025 Q2 Q1 Q4 Q3 Q2 Selected Ratios: Return on average assets 0.71% 0.41% 0.73% 0.68% -1.54% 0.17% 0.01%Return on average common equity 8.17% 4.83% 8.56% 7.78% -17.29% 1.98% 0.10%Return on average equity 8.17% 4.83% 8.56% 7.78% -17.29% 1.98% 0.10%Return on average tangible common equity 1 8.98% 5.34% 9.34% 8.61% -18.67% 2.17% 0.11%Net interest margin 3.09% 3.21% 3.08% 3.10% 3.09% 3.34% 3.11%Loans / deposits 75.70% 74.45% 75.70% 73.88% 75.74% 73.34% 74.45%Core deposits/deposits 2 81.89% 78.47% 81.89% 82.01% 79.78% 78.37% 78.47%Annualized noninterest expense / average assets 2.44% 2.26% 2.39% 2.48% 2.51% 2.40% 2.18%Commercial real estate / risk-based capital 3 187.11% 183.34% 187.11% 189.84% 190.37% 174.67% 183.34%Efficiency ratio 1 74.95% 66.43% 74.26% 75.65% 74.96% 68.78% 65.66% Other Selected Data: Average yield on loans 5.53% 5.86% 5.59% 5.48% 5.74% 6.09% 5.75%Average cost of interest-bearing deposits 2.47% 2.78% 2.48% 2.45% 2.68% 2.71% 2.81%Average cost of total deposits, including noninterest-bearing 2.06% 2.33% 2.07% 2.06% 2.24% 2.28% 2.37%Deposits/branch $97,856 $101,824 $97,856 $100,977 $98,654 $102,090 $101,824 Pre-tax, pre-provision net income 1 $5,800 $8,334 $3,003 $2,797 $3,056 $4,057 $4,216 Total revenue 1 $23,154 $24,828 $11,665 $11,489 $12,206 $12,994 $12,277 Share and Per Share Data: Cash dividends per share $0.20 $0.20 $0.10 $0.10 $0.10 $0.10 $0.10 Book value per common share $20.03 $20.17 $20.03 $19.75 $19.80 $20.46 $20.17 Tangible book value per common share 1 $18.42 $18.43 $18.42 $18.11 $18.11 $18.75 $18.43 Basic weighted average shares outstanding - Voting 4,865 4,759 4,890 4,838 4,799 4,790 4,769 Diluted weighted average shares outstanding - Voting 4,921 4,815 4,956 4,885 4,859 4,842 4,811 Basic earnings per share - Voting 4 $0.80 $0.48 $0.42 $0.38 $(0.89) $0.10 $- Diluted earnings per share - Voting 4 $0.80 $0.47 $0.42 $0.38 $(0.88) $0.10 $- 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-Voting 4 $0.80 $0.48 $0.42 $0.38 $(0.89) $0.10 $- Diluted earnings per share - Series A Non-Voting 4 $0.80 $0.47 $0.42 $0.38 $(0.88) $0.10 $- Common shares outstanding at period end 6,279 6,168 6,279 6,256 6,186 6,175 6,168 Pathfinder Bancorp, Inc. Capital Ratios: Company tangible common equity to tangible assets 1 7.80% 7.61% 7.80% 8.03% 7.91% 7.92% 7.61%Company Total Core Capital (to Risk-Weighted Assets) 15.91% 15.97% 15.91% 16.18% 15.57% 15.81% 15.97%Company Tier 1 Capital (to Risk-Weighted Assets) 12.25% 12.31% 12.25% 12.43% 12.29% 12.17% 12.31%Company Tier 1 Common Equity (to Risk-Weighted Assets) 11.76% 11.81% 11.76% 11.92% 11.78% 11.68% 11.81%Company Tier 1 Capital (to Assets) 8.93% 8.75% 8.93% 8.95% 8.57% 8.79% 8.75% Pathfinder Bank Capital Ratios: Bank Total Core Capital (to Risk-Weighted Assets) 14.62% 14.87% 14.62% 14.87% 14.72% 14.71% 14.87%Bank Tier 1 Capital (to Risk-Weighted Assets) 13.36% 13.62% 13.36% 13.59% 13.45% 13.45% 13.62%Bank Tier 1 Common Equity (to Risk-Weighted Assets) 13.36% 13.62% 13.36% 13.59% 13.45% 13.45% 13.62%Bank Tier 1 Capital (to Assets) 9.64% 9.68% 9.64% 9.79% 9.41% 9.72% 9.68%
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 Basic and diluted earnings per share are calculated based upon the two-class method.
The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.
June 30,
2026 2025 ASSET QUALITY: 2026 2025 Q2 Q1 Q4 Q3 Q2 Total loan charge-offs $2,927 $3,352 $2,162 $765 $767 $923 $2,844 Total recoveries 779 415 298 481 163 253 247 Net loan charge-offs 2,148 2,937 1,864 284 604 670 2,597 Allowance for credit losses at period end 26,920 15,983 26,920 28,966 29,436 18,654 15,983 Nonperforming loans at period end 35,710 11,689 35,710 38,160 27,561 23,305 11,689 Nonperforming assets at period end $35,847 $11,772 $35,847 $38,297 $27,698 $23,442 $11,772 Annualized net loan charge-offs to average loans 0.48% 0.64% 0.83% 0.13% 0.27% 0.30% 1.14%Allowance for credit losses to period end loans 3.03% 1.76% 3.03% 3.24% 3.28% 2.08% 1.76%Allowance for credit losses to nonperforming loans 75.39% 136.74% 75.39% 75.91% 106.80% 80.04% 136.74%Nonperforming loans to period end loans 4.02% 1.28% 4.02% 4.26% 3.07% 2.59% 1.28%Nonperforming assets to period end assets 2.40% 0.78% 2.40% 2.69% 1.94% 1.59% 0.78%
The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.
2026 2025 SELECTED AVERAGE BALANCES: 2026 2025 Q2 Q1 Q2 Interest-earning assets: Loans $901,047 $913,658 $899,975 $902,143 $911,347 Taxable investment securities 398,829 425,841 420,211 377,210 435,022 Tax-exempt investment securities 33,279 34,394 33,088 33,472 34,314 Federal funds sold and interest-earning deposits 18,367 11,497 15,622 21,143 10,070 Total interest-earning assets 1,351,522 1,385,390 1,368,896 1,333,968 1,390,753 Noninterest-earning assets: Other assets 120,620 116,590 120,721 120,516 118,280 Allowance for credit losses (29,143) (17,377) (28,853) (29,436) (17,342)Net unrealized losses on available-for-sale securities (6,809) (10,395) (8,045) (5,559) (10,838)Total assets $1,436,190 $1,474,208 $1,452,719 $1,419,489 $1,480,853 Interest-bearing liabilities: NOW accounts $124,217 $112,720 $123,208 $125,250 $113,994 Money management accounts 8,789 10,602 8,471 9,110 10,302 MMDA accounts 309,268 277,664 319,863 298,555 298,907 Savings and club accounts 125,968 129,752 126,652 125,276 129,736 Time deposits 429,659 494,200 418,106 441,341 489,490 Subordinated debt 30,155 30,149 30,155 30,155 30,173 Borrowings 57,686 66,165 75,195 39,982 61,803 Total interest-bearing liabilities 1,085,742 1,121,252 1,101,650 1,069,669 1,134,405 Noninterest-bearing liabilities: Demand deposits 195,147 199,123 196,289 193,992 192,186 Other liabilities 30,928 29,497 30,050 31,817 29,037 Total liabilities 1,311,817 1,349,872 1,327,989 1,295,478 1,355,628 Shareholders' equity 124,373 124,336 124,730 124,011 125,225 Total liabilities & shareholders' equity $1,436,190 $1,474,208 $1,452,719 $1,419,489 $1,480,853
The above information is unaudited and preliminary based on the Company's data available at the time of presentation.
2026 2025 NON-GAAP RECONCILIATIONS: 2026 2025 Q2 Q1 Q4 Q3 Q2 Tangible book value per common share: Total equity $125,744 $123,583 $122,451 $126,339 $124,413 Intangible assets (10,104) (10,261) (10,418) (10,574) (10,731)Tangible common equity (non-GAAP) 115,640 113,322 112,033 115,765 113,682 Common shares outstanding 6,279 6,256 6,186 6,175 6,168 Tangible book value per common share (non-GAAP) $18.42 $18.11 $18.11 $18.75 $18.43 Tangible common equity to tangible assets: Tangible common equity (non-GAAP) $115,640 $113,322 $112,033 $115,765 $113,682 Tangible assets 1,482,399 1,411,721 1,416,218 1,461,694 1,494,388 Tangible common equity to tangible assets ratio (non-GAAP) 7.80% 8.03% 7.91% 7.92% 7.61%Return on average tangible common equity: Average shareholders' equity $124,373 $124,336 $124,730 $124,011 $128,743 $126,211 $125,225 Average intangible assets 10,284 10,912 10,206 10,363 10,520 10,677 10,834 Average tangible equity (non-GAAP) 114,089 113,424 114,524 113,648 118,223 115,534 114,391 Net income (loss) 5,081 3,005 2,668 2,413 (5,564) 626 31 Net income (loss), annualized $10,246 $6,060 $10,701 $9,786 $(22,075) $2,511 $124 Return on average tangible common equity (non-GAAP) 1 8.98% 5.34% 9.34% 8.61% -18.67% 2.17% 0.11%Revenue, pre-tax, pre-provision net income, and efficiency ratio: Net interest income $20,876 $22,225 $10,536 $10,340 $10,510 $11,600 $10,814 Total noninterest income (loss) 2,351 (321) 1,224 1,127 1,313 1,503 (1,518)Net realized losses on sales and redemptions of investment securities (5) (8) - (5) (3) (12) - Gains on sales of loans and foreclosed real estate 281 148 95 186 133 121 83 Fair value adjustment to loans held-for-sale 2 (203) (3,064) - (203) (398) - (3,064)Loss on asset sale - - - - (115) - - Revenue (non-GAAP) 3 23,154 24,828 11,665 11,489 12,206 12,994 12,277 Total noninterest expense 17,354 16,494 8,662 8,692 9,150 8,937 8,061 Pre-tax, pre-provision net income (non-GAAP) 4 $5,800 $8,334 $3,003 $2,797 $3,056 $4,057 $4,216 Efficiency ratio (non-GAAP) 5 74.95% 66.43% 74.26% 75.65% 74.96% 68.78% 65.66%
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, fair value adjustment to loans held-for-sale, and sales of assets.
4 Pre-tax, pre-provision net income equals revenue less total noninterest 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, Executive Vice President, CFO
Telephone: (315) 343-0057