Pathfinder Bancorp, Inc. SEC 10-Q Report

Pathfinder Bancorp, Inc., a community bank serving the financial needs of individuals and businesses, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's financial performance and key business activities, showcasing significant improvements in profitability and strategic operational initiatives aimed at enhancing asset quality and managing credit risk.

Financial Highlights

Total Interest and Dividend Income: Pathfinder Bancorp reported $19.7 million for the three months ended September 30, 2025, reflecting a decrease from $21.2 million in the same period in 2024, primarily due to lower interest income from loans.

Net Interest Income: The company achieved $11.6 million for the three months ended September 30, 2025, compared to $11.7 million in the same period in 2024, indicating stable interest margins despite a decrease in interest income.

Net Income (Loss) Attributable to Pathfinder Bancorp, Inc.: Pathfinder Bancorp reported a net income of $0.6 million for the three months ended September 30, 2025, compared to a loss of $4.6 million in the same period in 2024, showing a significant improvement in profitability.

Basic Earnings per Common Share - Voting: The company reported $0.10 for the three months ended September 30, 2025, compared to a loss of $0.75 in the same period in 2024, reflecting improved earnings performance.

Diluted Earnings per Common Share - Voting: Similarly, diluted earnings per share were $0.10 for the three months ended September 30, 2025, compared to a loss of $0.75 in the same period in 2024, indicating a recovery in earnings per share.

Total Noninterest Income: Pathfinder Bancorp reported $1.5 million for the three months ended September 30, 2025, down from $1.7 million in the same period in 2024, due to lower service charges and other fees.

Total Noninterest Expense: The company reported $8.9 million for the three months ended September 30, 2025, down from $10.3 million in the same period in 2024, reflecting cost control measures and reduced professional services expenses.

Provision for Credit Losses: The provision for credit losses was $3.5 million for the three months ended September 30, 2025, compared to $9.0 million in the same period in 2024, indicating improved credit quality and lower expected losses.

Business Highlights

Loan Portfolio Management: Pathfinder Bancorp has undertaken a comprehensive review of its loan portfolio, focusing on both performing and nonperforming loans of $500,000 or more, which represents approximately 90% of all outstanding loans. This review is expected to be completed by the end of 2025, aiming to enhance asset quality metrics for the long term.

Credit Loss Provisions: The provision for credit losses decreased significantly in the third quarter of 2025 compared to the same period in 2024, reflecting proactive measures to mitigate credit risk. The company recorded a provision for credit losses of $3.5 million for the three months ended September 30, 2025, compared to $9.0 million for the same period in 2024.

Nonaccrual Loans: As of September 30, 2025, the company reported an increase in nonaccrual loans, primarily due to loans associated with two local commercial relationships that moved to nonperforming status. Nonaccrual loans represented 2.6% of total loans, with an aggregate outstanding balance of $23.3 million.

Loan Modifications: During the nine months ended September 30, 2025, the company modified loans for borrowers experiencing financial difficulty, including term extensions and interest rate reductions. These modifications were primarily in the commercial real estate and commercial and industrial loan segments.

Collateral Pledging: The company pledged $107.7 million in residential and commercial real estate mortgage loans to the Federal Home Loan Bank of New York and initiated the pledge of $10.2 million in home equity loans to the Federal Reserve Bank of New York during the nine months ended September 30, 2025.

Foreclosed Real Estate: The company reported a decrease in foreclosed real estate properties, with a carrying amount of $137,000 as of September 30, 2025, compared to $1.2 million in real estate loans in the process of foreclosure as of December 31, 2024.

Standby Letters of Credit: The company had $3.1 million in standby letters of credit as of September 30, 2025, an increase from $2.4 million as of December 31, 2024, indicating a rise in credit commitments.

Future Outlook: Pathfinder Bancorp plans to continue its focus on enhancing asset quality metrics and managing credit risk through comprehensive loan portfolio reviews and proactive credit loss provisioning. The completion of the loan portfolio review by the end of 2025 is expected to support these efforts.

SEC Filing: Pathfinder Bancorp, Inc. [ PBHC ] - 10-Q - Nov. 14, 2025