OSWEGO, N.Y. — Pathfinder Bancorp, Inc. (NASDAQ: PBHC), the holding company for Pathfinder Bank, on Wednesday, July 30, reported net income of $31,000, or less than 1 cent a share, in the second quarter of this year — down sharply from net income of $2 million, or 32 cents, in the second quarter of 2024.
Pathfinder noted in its earnings report that the results reflect its July 2025 sale of $9.3 million in nonperforming and classified loans, done in its “ongoing efforts to mitigate credit risk and enhance asset quality metrics for the long term, as well as operating expense discipline, commercial loan growth and an improved core deposit ratio.”
The problem loans were associated with one unnamed local commercial-banking customer, per the report. Pathfinder recorded a pre-tax loss of $3.1 million as a second quarter 2025 “lower of cost or market adjustment to loans held for sale” (a LOCOM HFS adjustment), representing 40 cents per share net of tax. It also reported $2.6 million in net charge offs that are reflected in provision for credit losses expense of $1.2 million.
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Pathfinder Bancorp noted that excluding income taxes and the provision for credit losses, it would have reported net income of $4.2 million in the second quarter, compared to $2.8 million in the year-prior period.
“Pathfinder’s more exacting approach to proactive credit risk mitigation continues to be implemented, with measures taken to proactively address certain loans experiencing credit deterioration resulting in elevated charge offs and the sale of nonperforming and classified commercial loans associated with a single in-market commercial relationship,” Pathfinder President and CEO James A. Dowd said in the earnings report. “These steps were taken as part of our ongoing efforts to enhance Pathfinder’s asset quality and resilience over the long term.”
Nonperforming loans at Pathfinder declined to $11.7 million at the end of this year’s second quarter, improving by 11.7 percent from last quarter and by 52.3 percent from a year ago. Nonperforming loans also declined to 1.28 percent of total loans as of June 30, improving from 1.45 percent on March 31, and from 2.76 percent on June 30, 2024.
Dowd added, “Growing our Central New York core deposit franchise remains an ongoing area of focus, as it continues to serve as a valuable source of low-cost funding for local, relationship-based lending opportunities with small- and middle-market businesses and consumers in our attractive regional markets.”
Oswego–based Pathfinder Bancorp, as of June 30, had total assets of $1.51 billion. Pathfinder Bank has 11 full-service branches located in its market areas of Oswego and Onondaga counties and one limited-purpose office in Oneida County.
