Pathfinder Bancorp Q2 net income $31,000, or $0.01/share.

• Pathfinder Bancorp reports Q2 2025 net income of $31,000, or $0.01 per share. • Sales of nonperforming loans totaled $9.3 million in July 2025. • Operating expense discipline and commercial loan growth contributed to results. • Improved core deposit ratio also positively impacted financial performance.

Pathfinder Bancorp, Inc. (NASDAQ: PBHC) announced its financial results for the second quarter ended June 30, 2025. The holding company for Pathfinder Bank reported net income attributable to common shareholders of $31,000, or less than $0.01 per diluted share, compared to $3.0 million or $0.47 per diluted share in the first quarter of 2025 and $2.0 million or $0.32 per share in the second quarter of 2024.

Key highlights from the second quarter include the sale of nonperforming and classified loans totaling $9.3 million in July 2025, a move aimed at mitigating credit risk and enhancing asset quality metrics. The sale of these loans, which were part of a single in-market commercial relationship, resulted in a principal balance reduction from $9.3 million to $6.3 million.

Operating expense discipline and commercial loan growth were noted as contributing factors to the company's financial performance. Additionally, an improved core deposit ratio positively impacted the financial results. The core deposit ratio, which measures the proportion of core deposits to total deposits, has been a focus area for Pathfinder Bancorp.

Net interest income decreased by $597,000, or 5.2%, from the first quarter of 2025, primarily due to average yield decreases on loans and a decrease in interest and dividend income. However, the company reported a net interest margin of 3.11% in the second quarter of 2025, compared to 3.31% in the first quarter 2025.

Noninterest income totaled negative $1.5 million in the second quarter of 2025, reflecting a $3.1 million LOCOM HFS adjustment and the absence of contributions from the insurance agency business sold in October 2024. Noninterest income increased by $179,000 in debit card interchange fees and $6,000 in service charges on deposit accounts, but decreased by $6,000 in earnings and gain on BOLI and $8,000 in net realized losses on sales and redemptions of investment securities.

Noninterest expense totaled $8.1 million in the second quarter of 2025, including costs associated with the East Syracuse branch acquired in July 2024. Salaries and benefits were $4.5 million, building and occupancy was $1.2 million, and data processing expense was $667,000. The efficiency ratio, which is not a financial metric under GAAP, was 65.66%, compared to 67.19% in the linked quarter and 74.36% in the year-ago period.

As of June 30, 2025, the company's total assets stood at $1.51 billion, with loans totaling $909.7 million. The company anticipates more normalized FDIC assessments in the future, with the expense expected to range between $220,000 and $230,000 per quarter in the second half of 2025.

Pathfinder Bancorp's financial performance in the second quarter of 2025 reflects a mix of positive and negative factors, with the company continuing to focus on credit risk mitigation and core deposit growth.

References:
[1] https://www.stocktitan.net/news/PBHC/pathfinder-bancorp-inc-announces-second-quarter-2025-xmncznnpwwna.html