On July 29, 2024, Pathfinder Bancorp Inc (PBHC, Financial) released its 8-K filing announcing its second quarter 2024 earnings. Pathfinder Bancorp Inc is the holding company for Pathfinder Bank, a commercial bank engaged in attracting deposits from the general public and investing such deposits in various loans and securities. The bank's principal source of income is interest on loans and investment securities.
Performance Overview
Pathfinder Bancorp Inc reported a net income of $2.0 million, or $0.32 per basic and diluted share, for the second quarter of 2024, consistent with the same period in 2023. Total revenue for the quarter was $10.7 million, a slight decrease of 1.2% compared to the same quarter last year.
Key Financial Metrics
Net interest income for the quarter was $9.5 million, down 3.1% from the previous year. Non-interest income increased by 9.1% to $1.2 million, driven by various fees associated with loan and deposit accounts. Non-interest expenses rose by 9.7% to $7.9 million, primarily due to increases in salaries, benefits, and professional services.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Interest Income | $9.5 million | $9.8 million | -3.1% |
| Non-Interest Income | $1.2 million | $1.1 million | +9.1% |
| Non-Interest Expense | $7.9 million | $7.2 million | +9.7% |
| Total Deposits | $1.10 billion | $1.10 billion | Flat |
| Total Loans | $888.3 million | $891.1 million | -0.3% |
Strategic Developments
Pathfinder Bancorp Inc recently completed the acquisition of the East Syracuse branch, which is expected to enhance its liquidity profile and earnings. The branch acquisition brought in $186 million in deposits and $30 million in loans. The company plans to use the additional liquidity to pay down approximately $150 million of borrowings, which is expected to benefit total funding costs in the third quarter of 2024.
"Our outlook remains positive, bolstered by the recent acquisition of the East Syracuse branch completed last week, strategically strengthening Pathfinder’s presence in Central New York," said President and CEO James A. Dowd.
Financial Condition
As of June 30, 2024, Pathfinder Bancorp Inc reported total assets of $1.45 billion, a slight decrease from $1.47 billion at the end of 2023. Total deposits remained stable at $1.10 billion, while total loans decreased slightly to $888.3 million. Shareholders' equity increased by 3.2% to $123.3 million, driven by profitable operations.
Asset Quality and Liquidity
The bank's nonperforming loans ratio increased to 2.76% from 1.92% at the end of 2023. The allowance for credit losses was $16.9 million, or 1.90% of loans, up from $16.0 million, or 1.78% of loans, at the end of 2023. The bank maintains a strong liquidity profile, with total deposits stable and additional funding capacity available through the Federal Home Loan Bank of New York.
Dividend Declaration
Pathfinder Bancorp declared a quarterly cash dividend of $0.10 per share, reflecting the company's solid performance and commitment to shareholder returns. The dividend yield stands at an attractive 3.03%, with an annualized dividend payout ratio of 30.2%.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Pathfinder Bancorp Inc for further details.
