Pathfinder Bancorp posts profit improvement in Q3

OSWEGO, N.Y. — Pathfinder Bancorp, Inc. (NASDAQ: PBHC), the holding company for Pathfinder Bank, reported net income attributable to common shareholders of $626,000, or 10 cents per share, in the third quarter of this year. That’s a significant improvement from $31,000, or less than 1 cent a share, in the second quarter of this year, and a net loss attributable to common shareholders of $4.6 million, or 75 cents per share, in the third quarter of 2024. The Oswego–based banking company contended that the results reflect its ongoing efforts to lessen credit risk and improve asset-quality metrics for the long term, as well as the continued growth of Pathfinder’s core deposit base, deliberate liability pricing, net interest-margin resilience, and operating-expense discipline. Pathfinder’s loans totaled $898.5 million at the end of the third quarter, compared to $909.7 million at the conclusion of the second quarter, and $921.7 million on Sept. 30, 2024. Commercial loans were $543.7 million, or 60.5 percent of total loans, on Sept. 30 of this year, compared to $549.1 million on June 30, and $534.5 million on Sept. 30, 2024. Total deposits at Pathfinder grew to $1.23 billion at the end of the third quarter, compared to $1.22 billion on June 30, and $1.20 billion on Sept. 30, 2024. During the third quarter of this year, total balances increased on growth in core deposits, more than offsetting reductions in higher-cost time deposits. “Recent asset quality related to certain legacy loans has resulted in unacceptable levels of credit volatility,” James A. Dowd, president and CEO of Pathfinder, said in the Oct. 30 earnings report. “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.” Oswego–based Pathfinder Bancorp, as of Sept. 30, had total assets of $1.47 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. Pathfinder’s stock price was down more than 11 percent year to date through Nov. 11, and off more than 12 percent over the last 12 months.