EX-99.1 2 pbhc-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

Investor/Media Contacts

James A. Dowd, President, CEO

Justin K. Bigham, Senior Vice President, CFO

Telephone: (315) 343-0057

Pathfinder Bancorp, Inc. Announces Second Quarter 2025 Results

Results reflect July 2025 sale of $9.3 million in nonperforming and classified loans, undertaken as part of the Company’s 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

OSWEGO, N.Y., July 30, 2025 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the second quarter ended June 30, 2025.

The holding company for Pathfinder Bank (“the Bank”) reported net income attributable to common shareholders of $31,000, or less than $0.01 per diluted share in the second quarter of 2025, 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.

Second Quarter 2025 Highlights and Key Developments

•
The Company continued to undertake proactive measures in the second quarter to mitigate credit risk and enhance asset quality metrics for the long term. These included the July 2025 sale of $9.3 million in nonperforming and classified loans associated with one local commercial relationship for a pre-tax loss of $3.1 million recorded as a second quarter 2025 lower of cost or market adjustment to loans held for sale (“LOCOM HFS adjustment”), representing $0.40 per diluted share net of tax, as well as $2.6 million in net charge offs (“NCOs”) that are reflected in provision expense of $1.2 million.
•
Nonperforming loans declined to $11.7 million at period end, improving by 11.7% during the second quarter and 52.3% from June 30, 2024. Nonperforming loans also declined to 1.28% of total loans at period end, improving from 1.45% on March 31, 2025 and 2.76% on June 30, 2024.
•
Total deposits were $1.22 billion at period end, compared to $1.26 billion on March 31, 2025 and $1.10 billion on June 30, 2024. During the second quarter of 2025, total balances declined on reductions in higher-cost time and money market accounts, as well as regular municipal deposit seasonality. Core deposits grew to 78.47% of total deposits at period end from 78.31% on March 31, 2025 and 67.98% on June 30, 2024.
•
Total loans were $909.7 million at period end, reflecting the move of $3.2 million in balances to held-for-sale status for the July 2025 sale of nonperforming and classified loans, compared to $912.2 million on March 31, 2025 and $888.3 million on June 30, 2024. Commercial loans grew to $549.1 million or 60.4% of total loans at period end, compared to $542.7 million on March 31, 2025 and $527.2 million on June 30, 2024.

1

 

 

•
Net interest income was $10.8 million and net interest margin (“NIM”) was 3.11% in the second quarter of 2025. Linked quarter results reflected 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees, adding approximately $347,000 to net interest income of $11.4 million and 10 basis points to NIM of 3.31%. Second quarter 2024 net interest income was $9.5 million and NIM was 2.78%.
•
The efficiency ratio was 65.66%, compared to 67.19% in the linked quarter and 74.36% in the year-ago period. The efficiency ratio, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.
•
Pre-tax, pre-provision (“PTPP”) net income was $4.2 million, compared to $4.2 million in the linked quarter and $2.8 million in the year-ago period. PTPP net income, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses.

“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,” said President and Chief Executive Officer James A. Dowd. “These steps were taken as part of our ongoing efforts to enhance Pathfinder’s asset quality and resilience over the long term.”

 

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.”

 

Net Interest Income and Net Interest Margin

Second quarter 2025 net interest income was $10.8 million, a decrease of $597,000, or 5.2%, from the first quarter of 2025. The decrease from the linked quarter was due in part to approximately $347,000 of first quarter 2025 net interest income attributed to 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees.

A decrease in interest and dividend income of $259,000 from the linked quarter was attributed to average yield decreases of 22 basis points on loans, which benefited by 15 basis points from 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees in the first quarter of 2025. The interest and dividend income decrease was also attributed to 5 basis points on fed funds sold and interest-earning deposits, and 11 basis points on all interest-earning assets, partially offset by average yield increases on taxable and tax-exempt securities of 3 and 76 basis points, respectively. In addition, average loan balances declined by $4.9 million, while average balances of lower-yielding taxable securities increased by $18.5 million. The corresponding decrease in loan interest income and federal funds sold and interest-earning deposits was $566,000 and $21,000, respectively, partially offset by increases in taxable and tax-exempt securities income of $337,000 and $63,000, respectively. An increase in interest expense from the first quarter of 2025 of $338,000 was primarily attributed to a 5 basis point increase in the average cost of interest bearing deposits.

2

 

 

Net interest margin was 3.11% in the second quarter of 2025 compared to 3.31% in the first quarter 2025. The decrease of 20 basis points reflected lower average loan yields and higher average interest bearing deposit costs in the second quarter of 2025, as well as approximately 10 basis points of first quarter 2025 margin attributed to 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees.

 

Second quarter 2025 net interest income was $10.8 million, an increase of $1.3 million, or 14.1%, from the second quarter of 2024. An increase in interest and dividend income of $160,000 was primarily attributed to average yield increases of 11 basis points on loans and a $25.9 million increase in average loan balances. The corresponding increase in loan interest income was $617,000. A decrease in interest expense of $1.2 million was attributed to reductions in the average cost of interest bearing deposits and total interest-bearing liabilities of 40 basis points and 45 basis points, respectively, as well as reductions in brokered deposits and short-term borrowings expense associated with paydowns of brokered deposits and borrowings utilizing a portion of the low-cost liquidity provided by core deposit growth.

Net interest margin was 3.11% in the second quarter of 2025 compared to 2.78% in the second quarter of 2024. The increase of 33 basis points reflected higher average loan yields and lower average deposit and borrowing costs in the second quarter of 2025, as compared to the year-ago period.

 

Noninterest Income

Second quarter 2025 noninterest income includes the $3.1 million LOCOM HFS adjustment, with an after-tax effect of $2.5 million or $0.40 per diluted share. Nonperforming and classified loans associated with one local commercial relationship dating back to 2013, with an original principal balance of $9.3 million and a June 30, 2025 principal balance of $6.3 million were sold in July 2025 for $3.2 million to an undisclosed financial buyer.

Second quarter 2025 noninterest income totaled negative $1.5 million, reflecting the $3.1 million LOCOM HFS adjustment, and no longer includes contributions from the insurance agency business sold in October 2024. Noninterest income was $1.2 million in the linked quarter and $1.2 million, including $260,000 in insurance revenue, in the year-ago period.

Compared to the linked quarter, second quarter 2025 noninterest income reflected increases of $179,000 in debit card interchange fees and $6,000 in service charges on deposit accounts, as well as a decrease of $6,000 in earnings and gain on bank owned life insurance (“BOLI”). Compared to the linked quarter, second quarter 2025 noninterest income also reflected increases of $202,000 in net unrealized gains on marketable equity securities, as well as decreases of $8,000 in net realized losses on sales and redemptions of investment securities and $4,000 in loan servicing fees.

Compared to the year-ago period, second quarter 2025 noninterest income included increases of $50,000 in service charges on deposit accounts, as well as decreases of $11,000 in earnings and gain on BOLI, and $11,000 in debit card interchange fees. Compared to the year-ago period, second quarter 2025 noninterest income also reflected an increase of $559,000 in net unrealized gains on marketable equity securities, as well as decreases of $16,000 in net realized gains on sales and redemptions of investment securities and $15,000 in loan servicing fees.

 

Noninterest Expense

3

 

 

Noninterest expense totaled $8.1 million in the second quarter of 2025, including $595,000 in costs associated with the East Syracuse branch acquired in July 2024 and excluding costs for the insurance agency business sold in October 2024. Noninterest expense was $8.4 million in the linked quarter, including East Syracuse branch costs of $577,000, and $7.9 million in the year-ago period, including insurance agency costs of $232,000.

Salaries and benefits were $4.5 million in the second quarter of 2025, in line with the linked quarter and increased $126,000 from the year-ago period. The increase from the second quarter of 2024 was primarily attributed to the July 2024 East Syracuse Branch Acquisition, which had $116,000 of total salary and benefit expenses in the second quarter of 2025. Excluding the East Syracuse branch, salaries and benefits increased $10,000 from the year-ago period. This increase from the second quarter of 2024 was primarily attributed to a $183,000 increase in stock-based compensation, partially offset by a $106,000 decrease in employee benefits, a $51,000 decrease in salaries and benefits expenses, and a $16,000 decrease in director compensation.

Building and occupancy was $1.2 million in the second quarter of 2025, decreasing $117,000 from the linked quarter and increasing $316,000 from the year-ago quarter. The decrease from the linked quarter reflected lower costs associated with building maintenance primarily related to snow removal. The increase from the first quarter of last year was primarily due to ongoing facilities-related costs associated with operating the East Syracuse branch acquired in July 2024.

Data processing expense was $667,000 in the second quarter of 2025, in line with the linked quarter and increasing $117,000 from the year-ago period. The increase from the second quarter of 2024 was primarily attributed to the ongoing operations of the East Syracuse branch acquired in July 2024.

 

No FDIC assessment expense was recorded in the second quarter of 2025, due to modest over-accruals in prior periods, compared to $229,000 and $228,000 in the linked and year-ago periods, respectively. The Company anticipates more normalized FDIC assessments in the future and expects this expense to range between $220,000 to $230,000 per quarter in the second half of 2025.

Annualized noninterest expense represented 2.18% of average assets in the second quarter of 2025, compared to 2.33% and 2.19% in the linked and year-ago periods. The efficiency ratio was 65.66%, compared to 67.19% and 74.36% in the linked and year-ago periods, respectively. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

 

Net Income

For the second quarter of 2025, net income attributable to common shareholders was $31,000, or less than $0.01 per basic and diluted share. Linked quarter net income was $3.0 million, or $0.48 per basic share and $0.47 per diluted share. Second quarter 2024 net income totaled $2.0 million or $0.32 per basic and diluted share.

4

 

 

Statement of Financial Condition

As of June 30, 2025, the Company’s statement of financial condition reflects total assets of $1.51 billion, compared to $1.50 billion and $1.45 billion recorded on March 31, 2025 and June 30, 2024, respectively.

Loans totaled $909.7 million on June 30, 2025, after $3.2 million in balances were moved to held-for-sale status for the July 2025 sale of nonperforming and classified loans, resulting in a decrease of $2.4 million or 0.3% from March 31, 2025. Total loans increased $21.5 million or 2.4% from one year prior. Consumer and residential loans totaled $362.1 million, decreasing 2.4% during the second quarter and increasing 0.2% from one year prior. Commercial loans totaled $549.1 million, increasing 1.2% during the second quarter and 4.1% from one year prior, despite the recent loan sale.

With respect to liabilities, deposits totaled $1.22 billion on June 30, 2025, decreasing 3.4% on reductions in higher-cost time and money market accounts, as well as regular municipal deposit seasonality, during the second quarter and increasing 11.0% from one year prior.

Shareholders' equity totaled $124.4 million on June 30, 2025, decreasing $483,000 or 0.4% in the second quarter and increasing $1.1 million or 0.9% from one year prior. The second quarter 2025 decrease primarily reflects a $599,000 decrease in retained earnings, a $426,000 decrease in accumulated other comprehensive loss (“AOCL”), and a $542,000 increase in additional paid in capital. Noncontrolling interest, previously included in equity on the Statements of Financial Condition, was eliminated in October 2024 upon the sale of the Company's 51% insurance agency ownership interest.

 

Asset Quality

The Company's asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

Nonperforming loans were $11.7 million, or 1.28% of total loans on June 30, 2025, compared to $13.2 million or 1.45% on March 31, 2025 and $24.5 million or 2.76% on June 30, 2024. Continued improvement in nonperforming loans in the second quarter of 2025 primarily resulted from the recent sale of loans associated with one local commercial relationship dating to 2013.

NCOs after recoveries were $2.6 million or an annualized 1.14% of average loans in the second quarter of 2025, with gross charge offs for consumer loans, purchased loan pools, and commercial loans, offsetting recoveries in each of these categories. NCOs were $340,000 or an annualized 0.15% of average loans in the linked quarter and $66,000 or 0.03% in the prior year period.

Provision for credit loss expense was $1.2 million in the second quarter of 2025 primarily reflecting NCOs in the period, partially offset by reductions related to quantitative and qualitative factors in the Company’s reserve model. The provision was $457,000 and $290,000 in the linked and year-ago quarters, respectively.

The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $16.0 million on June 30, 2025, compared to $17.4 million on March 31, 2025 and $16.9 million on June 30, 2024. As a percentage of total loans, ACL represented 1.76% on June 30, 2025, 1.91% on March 31, 2025, and 1.90% on June 30, 2024.

5

 

 

Liquidity

The Company has diligently ensured a strong liquidity profile as of June 30, 2025 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.22 billion on June 30, 2025, compared to $1.26 billion on March 31, 2025 and $1.10 billion on June 30, 2024. Decreases in total deposits primarily reflect reductions in higher-cost time and money market accounts, as well as regular municipal deposit seasonality. Core deposits grew to 78.47% of total deposits on June 30, 2025, compared to 78.31% on March 31, 2025 and 67.98% on June 30, 2024. The Bank continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

On June 30, 2025, Pathfinder Bancorp had an available additional funding capacity of $124.5 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $46.5 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

 

Cash Dividend Declared

On June 30, 2025, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by July 18, 2025 will be eligible for the dividend, which is scheduled for disbursement on August 8, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

Evaluating the Company’s market performance, the closing stock price as of June 30, 2025 stood at $15.34 per share. This positions the annualized dividend yield at 2.61%.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches, as well as diversified consumer, mortgage, and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

6

 

 

Forward-Looking Statements

Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.

 

This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

7

 

 

PATHFINDER BANCORP, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Amounts in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

2024

 

SELECTED BALANCE SHEET DATA:

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

16,183

 

 

$

18,606

 

 

$

13,963

 

 

$

18,923

 

 

$

12,022

 

Interest-earning deposits

 

 

15,292

 

 

 

32,862

 

 

 

17,609

 

 

 

16,401

 

 

 

19,797

 

Total cash and cash equivalents

 

 

31,475

 

 

 

51,468

 

 

 

31,572

 

 

 

35,324

 

 

 

31,819

 

Available-for-sale securities, at fair value

 

 

300,951

 

 

 

284,051

 

 

 

269,331

 

 

 

271,977

 

 

 

274,977

 

Held-to-maturity securities, at amortized cost

 

 

157,892

 

 

 

155,704

 

 

 

158,683

 

 

 

161,385

 

 

 

166,271

 

Marketable equity securities, at fair value

 

 

4,881

 

 

 

4,401

 

 

 

4,076

 

 

 

3,872

 

 

 

3,793

 

Federal Home Loan Bank stock, at cost

 

 

5,278

 

 

 

2,906

 

 

 

4,590

 

 

 

5,401

 

 

 

8,702

 

Loans held-for-sale

 

 

3,161

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Loans, net of deferred fees

 

 

909,723

 

 

 

912,150

 

 

 

918,986

 

 

 

921,660

 

 

 

888,263

 

Less: Allowance for credit losses

 

 

15,983

 

 

 

17,407

 

 

 

17,243

 

 

 

17,274

 

 

 

16,892

 

Loans receivable, net

 

 

893,740

 

 

 

894,743

 

 

 

901,743

 

 

 

904,386

 

 

 

871,371

 

Premises and equipment, net

 

 

19,047

 

 

 

19,233

 

 

 

19,009

 

 

 

18,989

 

 

 

18,878

 

Assets held-for-sale

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,042

 

Operating lease right-of-use assets

 

 

1,115

 

 

 

1,356

 

 

 

1,391

 

 

 

1,425

 

 

 

1,459

 

Finance lease right-of-use assets

 

 

16,280

 

 

 

16,478

 

 

 

16,676

 

 

 

16,873

 

 

 

4,004

 

Accrued interest receivable

 

 

6,889

 

 

 

6,748

 

 

 

6,881

 

 

 

6,806

 

 

 

7,076

 

Foreclosed real estate

 

 

83

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

60

 

Intangible assets, net

 

 

5,675

 

 

 

5,832

 

 

 

5,989

 

 

 

6,217

 

 

 

76

 

Goodwill

 

 

5,056

 

 

 

5,056

 

 

 

5,056

 

 

 

5,752

 

 

 

4,536

 

Bank owned life insurance

 

 

31,045

 

 

 

24,889

 

 

 

24,727

 

 

 

24,560

 

 

 

24,967

 

Other assets

 

 

22,551

 

 

 

22,472

 

 

 

25,150

 

 

 

20,159

 

 

 

25,180

 

Total assets

 

$

1,505,119

 

 

$

1,495,337

 

 

$

1,474,874

 

 

$

1,483,126

 

 

$

1,446,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

1,030,155

 

 

$

1,061,166

 

 

$

990,805

 

 

$

986,103

 

 

$

932,132

 

Noninterest-bearing deposits

 

 

191,732

 

 

 

203,314

 

 

 

213,719

 

 

 

210,110

 

 

 

169,145

 

Total deposits

 

 

1,221,887

 

 

 

1,264,480

 

 

 

1,204,524

 

 

 

1,196,213

 

 

 

1,101,277

 

Short-term borrowings

 

 

75,500

 

 

 

27,000

 

 

 

61,000

 

 

 

60,315

 

 

 

127,577

 

Long-term borrowings

 

 

20,977

 

 

 

17,628

 

 

 

27,068

 

 

 

39,769

 

 

 

45,869

 

Subordinated debt

 

 

30,206

 

 

 

30,156

 

 

 

30,107

 

 

 

30,057

 

 

 

30,008

 

Accrued interest payable

 

 

813

 

 

 

844

 

 

 

546

 

 

 

236

 

 

 

2,092

 

Operating lease liabilities

 

 

1,313

 

 

 

1,560

 

 

 

1,591

 

 

 

1,621

 

 

 

1,652

 

Finance lease liabilities

 

 

16,566

 

 

 

16,655

 

 

 

16,745

 

 

 

16,829

 

 

 

4,359

 

Other liabilities

 

 

13,444

 

 

 

12,118

 

 

 

11,810

 

 

 

16,986

 

 

 

9,203

 

Total liabilities

 

 

1,380,706

 

 

 

1,370,441

 

 

 

1,353,391

 

 

 

1,362,026

 

 

 

1,322,037

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voting common stock shares issued and outstanding

 

 

4,788,109

 

 

 

4,761,182

 

 

 

4,745,366

 

 

 

4,719,788

 

 

 

4,719,788

 

Voting common stock

 

$

48

 

 

$

48

 

 

$

47

 

 

$

47

 

 

$

47

 

Non-voting common stock

 

 

14

 

 

 

14

 

 

 

14

 

 

 

14

 

 

 

14

 

Additional paid in capital

 

 

53,645

 

 

 

53,103

 

 

 

52,750

 

 

 

53,231

 

 

 

53,182

 

Retained earnings

 

 

79,564

 

 

 

80,163

 

 

 

77,816

 

 

 

73,670

 

 

 

78,936

 

Accumulated other comprehensive loss

 

 

(8,858

)

 

 

(8,432

)

 

 

(9,144

)

 

 

(6,716

)

 

 

(8,786

)

Unearned ESOP shares

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(45

)

Total Pathfinder Bancorp, Inc. shareholders' equity

 

 

124,413

 

 

 

124,896

 

 

 

121,483

 

 

 

120,246

 

 

 

123,348

 

Noncontrolling interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

854

 

 

 

826

 

Total equity

 

 

124,413

 

 

 

124,896

 

 

 

121,483

 

 

 

121,100

 

 

 

124,174

 

Total liabilities and shareholders' equity

 

$

1,505,119

 

 

$

1,495,337

 

 

$

1,474,874

 

 

$

1,483,126

 

 

$

1,446,211

 

 

The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.

8

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

SELECTED INCOME STATEMENT DATA:

 

2025

 

 

2024

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

26,778

 

 

$

24,757

 

 

$

13,106

 

 

$

13,672

 

 

$

13,523

 

 

$

14,425

 

 

$

12,489

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

10,707

 

 

 

11,343

 

 

 

5,522

 

 

 

5,185

 

 

 

5,312

 

 

 

5,664

 

 

 

5,736

 

Tax-exempt

 

 

867

 

 

 

1,006

 

 

 

465

 

 

 

402

 

 

 

445

 

 

 

469

 

 

 

498

 

Dividends

 

 

114

 

 

 

307

 

 

 

21

 

 

 

93

 

 

 

164

 

 

 

149

 

 

 

178

 

Federal funds sold and interest-earning deposits

 

 

157

 

 

 

219

 

 

 

68

 

 

 

89

 

 

 

82

 

 

 

492

 

 

 

121

 

Total interest and dividend income

 

 

38,623

 

 

 

37,632

 

 

 

19,182

 

 

 

19,441

 

 

 

19,526

 

 

 

21,199

 

 

 

19,022

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

14,263

 

 

 

15,037

 

 

 

7,318

 

 

 

6,945

 

 

 

7,823

 

 

 

7,633

 

 

 

7,626

 

Interest on short-term borrowings

 

 

1,040

 

 

 

2,340

 

 

 

495

 

 

 

545

 

 

 

700

 

 

 

1,136

 

 

 

1,226

 

Interest on long-term borrowings

 

 

137

 

 

 

395

 

 

 

72

 

 

 

65

 

 

 

136

 

 

 

202

 

 

 

201

 

Interest on subordinated debt

 

 

958

 

 

 

980

 

 

 

483

 

 

 

475

 

 

 

490

 

 

 

496

 

 

 

489

 

Total interest expense

 

 

16,398

 

 

 

18,752

 

 

 

8,368

 

 

 

8,030

 

 

 

9,149

 

 

 

9,467

 

 

 

9,542

 

Net interest income

 

 

22,225

 

 

 

18,880

 

 

 

10,814

 

 

 

11,411

 

 

 

10,377

 

 

 

11,732

 

 

 

9,480

 

Provision for (benefit from) credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

1,677

 

 

 

1,014

 

 

 

1,173

 

 

 

504

 

 

 

988

 

 

 

9,104

 

 

 

304

 

Held-to-maturity securities

 

 

5

 

 

 

(59

)

 

 

5

 

 

 

-

 

 

 

(5

)

 

 

(31

)

 

 

(74

)

Unfunded commitments

 

 

(28

)

 

 

61

 

 

 

19

 

 

 

(47

)

 

 

5

 

 

 

(104

)

 

 

60

 

Total provision for credit losses

 

 

1,654

 

 

 

1,016

 

 

 

1,197

 

 

 

457

 

 

 

988

 

 

 

8,969

 

 

 

290

 

Net interest income after provision for credit losses

 

 

20,571

 

 

 

17,864

 

 

 

9,617

 

 

 

10,954

 

 

 

9,389

 

 

 

2,763

 

 

 

9,190

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

754

 

 

 

639

 

 

 

380

 

 

 

374

 

 

 

405

 

 

 

392

 

 

 

330

 

Earnings and gain on bank owned life insurance

 

 

318

 

 

 

324

 

 

 

156

 

 

 

162

 

 

 

169

 

 

 

361

 

 

 

167

 

Loan servicing fees

 

 

198

 

 

 

200

 

 

 

97

 

 

 

101

 

 

 

96

 

 

 

79

 

 

 

112

 

Net realized (losses) gains on sales and redemptions of investment securities

 

 

(8

)

 

 

(132

)

 

 

-

 

 

 

(8

)

 

 

249

 

 

 

(188

)

 

 

16

 

Gain on asset sale 1 & 2

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,169

 

 

 

-

 

 

 

-

 

Net unrealized gains (losses) on marketable equity securities

 

 

638

 

 

 

(31

)

 

 

420

 

 

 

218

 

 

 

166

 

 

 

62

 

 

 

(139

)

Gains on sales of loans and foreclosed real estate

 

 

148

 

 

 

58

 

 

 

83

 

 

 

65

 

 

 

39

 

 

 

90

 

 

 

40

 

LOCOM HFS adjustment 3

 

 

(3,064

)

 

 

-

 

 

 

(3,064

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Loss on sale of premises and equipment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(36

)

 

 

-

 

Debit card interchange fees

 

 

181

 

 

 

310

 

 

 

180

 

 

 

1

 

 

 

265

 

 

 

300

 

 

 

191

 

Insurance agency revenue 1

 

 

-

 

 

 

657

 

 

 

-

 

 

 

-

 

 

 

49

 

 

 

367

 

 

 

260

 

Other charges, commissions & fees

 

 

514

 

 

 

923

 

 

 

230

 

 

 

284

 

 

 

299

 

 

 

280

 

 

 

234

 

Total noninterest (loss) income

 

 

(321

)

 

 

2,948

 

 

 

(1,518

)

 

 

1,197

 

 

 

4,906

 

 

 

1,707

 

 

 

1,211

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,975

 

 

 

8,728

 

 

 

4,525

 

 

 

4,450

 

 

 

4,123

 

 

 

4,959

 

 

 

4,399

 

Building and occupancy

 

 

2,577

 

 

 

1,730

 

 

 

1,230

 

 

 

1,347

 

 

 

1,254

 

 

 

1,134

 

 

 

914

 

Data processing

 

 

1,333

 

 

 

1,078

 

 

 

667

 

 

 

666

 

 

 

721

 

 

 

672

 

 

 

550

 

Professional and other services

 

 

1,384

 

 

 

1,258

 

 

 

778

 

 

 

606

 

 

 

608

 

 

 

1,820

 

 

 

696

 

Advertising

 

 

218

 

 

 

221

 

 

 

77

 

 

 

141

 

 

 

218

 

 

 

165

 

 

 

116

 

FDIC assessments

 

 

229

 

 

 

457

 

 

 

-

 

 

 

229

 

 

 

231

 

 

 

228

 

 

 

228

 

Audits and exams

 

 

174

 

 

 

293

 

 

 

60

 

 

 

114

 

 

 

123

 

 

 

123

 

 

 

123

 

Amortization expense

 

 

314

 

 

 

8

 

 

 

157

 

 

 

157

 

 

 

27

 

 

 

124

 

 

 

5

 

Insurance agency expense 1

 

 

-

 

 

 

517

 

 

 

-

 

 

 

-

 

 

 

456

 

 

 

308

 

 

 

232

 

Community service activities

 

 

39

 

 

 

91

 

 

 

28

 

 

 

11

 

 

 

19

 

 

 

20

 

 

 

39

 

Foreclosed real estate expenses

 

 

50

 

 

 

55

 

 

 

29

 

 

 

21

 

 

 

20

 

 

 

27

 

 

 

30

 

Other expenses

 

 

1,201

 

 

 

1,178

 

 

 

510

 

 

 

691

 

 

 

744

 

 

 

679

 

 

 

576

 

Total noninterest expense

 

 

16,494

 

 

 

15,614

 

 

 

8,061

 

 

 

8,433

 

 

 

8,544

 

 

 

10,259

 

 

 

7,908

 

Income (loss) before provision for income taxes

 

 

3,756

 

 

 

5,198

 

 

 

38

 

 

 

3,718

 

 

 

5,751

 

 

 

(5,789

)

 

 

2,493

 

Provision (benefit) for income taxes

 

 

751

 

 

 

1,013

 

 

 

7

 

 

 

744

 

 

 

492

 

 

 

(1,173

)

 

 

481

 

Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.

 

 

3,005

 

 

 

4,185

 

 

 

31

 

 

 

2,974

 

 

 

5,259

 

 

 

(4,616

)

 

 

2,012

 

Net income attributable to noncontrolling interest 1

 

 

-

 

 

 

65

 

 

 

-

 

 

 

-

 

 

 

1,352

 

 

 

28

 

 

 

12

 

Net income (loss) attributable to Pathfinder Bancorp Inc.

 

$

3,005

 

 

$

4,120

 

 

$

31

 

 

$

2,974

 

 

$

3,907

 

 

$

(4,644

)

 

$

2,000

 

Voting Earnings per common share - basic

 

$

0.48

 

 

$

0.66

 

 

$

-

 

 

$

0.48

 

 

$

0.63

 

 

$

(0.75

)

 

$

0.32

 

Voting Earnings per common share - diluted 4

 

$

0.47

 

 

$

0.66

 

 

$

-

 

 

$

0.47

 

 

$

0.63

 

 

$

(0.75

)

 

$

0.32

 

Series A Non-Voting Earnings per common share- basic

 

$

0.48

 

 

$

0.66

 

 

$

-

 

 

$

0.48

 

 

$

0.63

 

 

$

(0.75

)

 

$

0.32

 

Series A Non-Voting Earnings per common share- diluted 4

 

$

0.47

 

 

$

0.66

 

 

$

-

 

 

$

0.47

 

 

$

0.63

 

 

$

(0.75

)

 

$

0.32

 

Dividends per common share (Voting and Series A Non-Voting)

 

$

0.20

 

 

$

0.20

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

1 Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements. The Company sold its 51% membership interest in the Agency in October 2024.

2 The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.

3 The loss reflects a valuation adjustment “Lower-of-cost-or-market" adjustment on loans held for sale to their estimated market value based on active sale negotiations.

4 Diluted earnings per share for the first quarter of 2025 has been updated to $0.47, from the $0.41 reported previously.

 

 

 

The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.

9

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

FINANCIAL HIGHLIGHTS:

 

2025

 

 

2024

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

Selected Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.41

%

 

 

0.58

%

 

 

0.01

%

 

 

0.81

%

 

 

1.07

%

 

 

-1.25

%

 

 

0.56

%

Return on average common equity

 

 

4.83

%

 

 

6.74

%

 

 

0.10

%

 

 

9.64

%

 

 

12.85

%

 

 

-14.79

%

 

 

6.49

%

Return on average equity

 

 

4.83

%

 

 

6.74

%

 

 

0.10

%

 

 

9.64

%

 

 

12.85

%

 

 

-14.79

%

 

 

6.49

%

Return on average tangible common equity 1

 

 

5.34

%

 

 

7.05

%

 

 

0.11

%

 

 

10.52

%

 

 

14.17

%

 

 

-15.28

%

 

 

6.78

%

Net interest margin

 

 

3.21

%

 

 

2.77

%

 

 

3.11

%

 

 

3.31

%

 

 

3.02

%

 

 

3.34

%

 

 

2.78

%

Loans / deposits

 

 

74.45

%

 

 

80.66

%

 

 

74.45

%

 

 

72.14

%

 

 

76.29

%

 

 

77.05

%

 

 

80.66

%

Core deposits/deposits 2

 

 

78.47

%

 

 

67.98

%

 

 

78.47

%

 

 

78.31

%

 

 

76.86

%

 

 

77.45

%

 

 

67.98

%

Annualized non-interest expense / average assets

 

 

2.26

%

 

 

2.20

%

 

 

2.18

%

 

 

2.33

%

 

 

2.33

%

 

 

2.75

%

 

 

2.19

%

Commercial real estate / risk-based capital 3

 

 

183.34

%

 

 

169.73

%

 

 

183.34

%

 

 

182.62

%

 

 

186.73

%

 

 

189.47

%

 

 

169.73

%

Efficiency ratio 1

 

 

66.43

%

 

 

71.29

%

 

 

65.66

%

 

 

67.19

%

 

 

72.25

%

 

 

75.78

%

 

 

74.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Selected Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average yield on loans

 

 

5.86

%

 

 

5.56

%

 

 

5.75

%

 

 

5.97

%

 

 

5.87

%

 

 

6.31

%

 

 

5.64

%

Average cost of interest bearing deposits

 

 

2.78

%

 

 

3.14

%

 

 

2.81

%

 

 

2.76

%

 

 

3.12

%

 

 

3.11

%

 

 

3.21

%

Average cost of total deposits, including non-interest bearing

 

 

2.33

%

 

 

2.67

%

 

 

2.37

%

 

 

2.29

%

 

 

2.59

%

 

 

2.59

%

 

 

2.72

%

Deposits/branch 4

 

$

101,824

 

 

$

100,116

 

 

$

101,824

 

 

$

105,373

 

 

$

100,377

 

 

$

99,684

 

 

$

100,116

 

Pre-tax, pre-provision net income 1

 

$

8,334

 

 

$

6,288

 

 

$

4,216

 

 

$

4,183

 

 

$

3,321

 

 

$

3,368

 

 

$

2,767

 

Total revenue 1

 

$

24,828

 

 

$

21,902

 

 

$

12,277

 

 

$

12,616

 

 

$

11,865

 

 

$

13,627

 

 

$

10,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.20

 

 

$

0.20

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

Book value per common share

 

$

20.17

 

 

$

20.22

 

 

$

20.17

 

 

$

20.33

 

 

$

19.83

 

 

$

19.71

 

 

$

20.22

 

Tangible book value per common share 1

 

$

18.43

 

 

$

19.46

 

 

$

18.43

 

 

$

18.56

 

 

$

18.03

 

 

$

17.75

 

 

$

19.46

 

Basic and diluted weighted average shares outstanding - Voting

 

 

4,759

 

 

 

4,704

 

 

 

4,769

 

 

 

4,749

 

 

 

4,733

 

 

 

4,714

 

 

 

4,708

 

Basic earnings per share - Voting  5

 

$

0.48

 

 

$

0.66

 

 

$

-

 

 

$

0.48

 

 

$

0.63

 

 

$

(0.75

)

 

$

0.32

 

Diluted earnings per share - Voting  5 & 6

 

$

0.47

 

 

$

0.66

 

 

$

-

 

 

$

0.47

 

 

$

0.63

 

 

$

(0.75

)

 

$

0.32

 

Basic and diluted weighted average shares outstanding - Series A Non-Voting

 

 

1,380

 

 

 

1,380

 

 

 

1,380

 

 

 

1,380

 

 

 

1,380

 

 

 

1,380

 

 

 

1,380

 

Basic earnings per share - Series A Non-Voting  5

 

$

0.48

 

 

$

0.66

 

 

$

-

 

 

$

0.48

 

 

$

0.63

 

 

$

(0.75

)

 

$

0.32

 

Diluted earnings per share - Series A Non-Voting  5 & 6

 

$

0.47

 

 

$

0.66

 

 

$

-

 

 

$

0.47

 

 

$

0.63

 

 

$

(0.75

)

 

$

0.32

 

Common shares outstanding at period end

 

 

6,168

 

 

 

6,100

 

 

 

6,168

 

 

 

6,141

 

 

 

6,126

 

 

 

6,100

 

 

 

6,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pathfinder Bancorp, Inc. Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company tangible common equity to tangible assets 1

 

 

7.61

%

 

 

8.24

%

 

 

7.61

%

 

 

7.68

%

 

 

7.54

%

 

 

7.36

%

 

 

8.24

%

Company Total Core Capital (to Risk-Weighted Assets)

 

 

15.97

%

 

 

16.19

%

 

 

15.97

%

 

 

15.89

%

 

 

15.66

%

 

 

15.55

%

 

 

16.19

%

Company Tier 1 Capital (to Risk-Weighted Assets)

 

 

12.31

%

 

 

12.31

%

 

 

12.31

%

 

 

12.24

%

 

 

12.00

%

 

 

11.84

%

 

 

12.31

%

Company Tier 1 Common Equity (to Risk-Weighted Assets)

 

 

11.81

%

 

 

11.83

%

 

 

11.81

%

 

 

11.75

%

 

 

11.51

%

 

 

11.33

%

 

 

11.83

%

Company Tier 1 Capital (to Assets)

 

 

8.75

%

 

 

9.16

%

 

 

8.75

%

 

 

8.82

%

 

 

8.64

%

 

 

8.29

%

 

 

9.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pathfinder Bank Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Total Core Capital (to Risk-Weighted Assets)

 

 

14.87

%

 

 

16.04

%

 

 

14.87

%

 

 

14.86

%

 

 

14.65

%

 

 

14.52

%

 

 

16.04

%

Bank Tier 1 Capital (to Risk-Weighted Assets)

 

 

13.62

%

 

 

14.79

%

 

 

13.62

%

 

 

13.61

%

 

 

13.40

%

 

 

13.26

%

 

 

14.79

%

Bank Tier 1 Common Equity (to Risk-Weighted Assets)

 

 

13.62

%

 

 

14.79

%

 

 

13.62

%

 

 

13.61

%

 

 

13.40

%

 

 

13.26

%

 

 

14.79

%

Bank Tier 1 Capital (to Assets)

 

 

9.68

%

 

 

10.30

%

 

 

9.68

%

 

 

9.80

%

 

 

9.64

%

 

 

9.13

%

 

 

10.30

%

 

1 Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

2 Non-brokered deposits excluding certificates of deposit of $250,000 or more.

3 Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.

4 Includes 11 full-service branches and one motor bank for periods after June 30, 2024. Includes 10 full-service branches and one motor bank for all periods prior.

5 Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.

6 Diluted earnings per share for the first quarter of 2025 has been updated to $0.47, from the $0.41 reported previously.

The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.

 

 

10

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

ASSET QUALITY:

 

2025

 

 

2024

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

Total loan charge-offs

 

$

3,352

 

 

$

180

 

 

$

2,844

 

 

$

508

 

 

$

1,191

 

 

$

8,812

 

 

$

112

 

Total recoveries

 

 

415

 

 

 

84

 

 

 

247

 

 

 

168

 

 

 

171

 

 

 

90

 

 

 

46

 

Net loan charge-offs

 

 

2,937

 

 

 

96

 

 

 

2,597

 

 

 

340

 

 

 

1,020

 

 

 

8,722

 

 

 

66

 

Allowance for credit losses at period end

 

 

15,983

 

 

 

16,892

 

 

 

15,983

 

 

 

17,407

 

 

 

17,243

 

 

 

17,274

 

 

 

16,892

 

Nonperforming loans at period end

 

 

11,689

 

 

 

24,490

 

 

 

11,689

 

 

 

13,232

 

 

 

22,084

 

 

 

16,170

 

 

 

24,490

 

Nonperforming assets at period end

 

$

11,772

 

 

$

24,550

 

 

$

11,772

 

 

$

13,232

 

 

$

22,084

 

 

$

16,170

 

 

$

24,550

 

Annualized net loan charge-offs to average loans

 

 

0.64

%

 

 

0.02

%

 

 

1.14

%

 

 

0.15

%

 

 

0.44

%

 

 

3.82

%

 

 

0.03

%

Allowance for credit losses to period end loans

 

 

1.76

%

 

 

1.90

%

 

 

1.76

%

 

 

1.91

%

 

 

1.88

%

 

 

1.87

%

 

 

1.90

%

Allowance for credit losses to nonperforming loans

 

 

136.74

%

 

 

68.98

%

 

 

136.74

%

 

 

131.55

%

 

 

78.08

%

 

 

106.83

%

 

 

68.98

%

Nonperforming loans to period end loans

 

 

1.28

%

 

 

2.76

%

 

 

1.28

%

 

 

1.45

%

 

 

2.40

%

 

 

1.75

%

 

 

2.76

%

Nonperforming assets to period end assets

 

 

0.78

%

 

 

1.70

%

 

 

0.78

%

 

 

0.88

%

 

 

1.50

%

 

 

1.09

%

 

 

1.70

%

 

 

 

2025

 

 

2024

 

LOAN COMPOSITION:

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

1-4 family first-lien residential mortgages

 

$

240,833

 

 

$

243,854

 

 

$

251,373

 

 

$

255,235

 

 

$

250,106

 

Residential construction

 

 

3,520

 

 

 

3,162

 

 

 

4,864

 

 

 

4,077

 

 

 

309

 

Commercial real estate

 

 

381,575

 

 

 

381,479

 

 

 

377,619

 

 

 

378,805

 

 

 

370,361

 

Commercial lines of credit

 

 

75,487

 

 

 

65,074

 

 

 

67,602

 

 

 

64,672

 

 

 

62,711

 

Other commercial and industrial

 

 

85,578

 

 

 

91,644

 

 

 

89,800

 

 

 

88,247

 

 

 

90,813

 

Paycheck protection program loans

 

 

85

 

 

 

96

 

 

 

113

 

 

 

125

 

 

 

136

 

Tax exempt commercial loans

 

 

6,349

 

 

 

4,446

 

 

 

4,544

 

 

 

2,658

 

 

 

3,228

 

Home equity and junior liens

 

 

49,339

 

 

 

52,315

 

 

 

51,948

 

 

 

52,709

 

 

 

35,821

 

Other consumer

 

 

68,439

 

 

 

71,681

 

 

 

72,710

 

 

 

76,703

 

 

 

75,195

 

Subtotal loans

 

 

911,205

 

 

 

913,751

 

 

 

920,573

 

 

 

923,231

 

 

 

888,680

 

Deferred loan fees

 

 

(1,482

)

 

 

(1,601

)

 

 

(1,587

)

 

 

(1,571

)

 

 

(417

)

Total loans

 

$

909,723

 

 

$

912,150

 

 

$

918,986

 

 

$

921,660

 

 

$

888,263

 

 

 

 

2025

 

 

2024

 

DEPOSIT COMPOSITION:

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

Savings accounts

 

$

129,252

 

 

$

129,898

 

 

$

128,753

 

 

$

129,053

 

 

$

106,048

 

Time accounts

 

 

341,063

 

 

 

349,673

 

 

 

360,716

 

 

 

352,729

 

 

 

368,262

 

Time accounts in excess of $250,000

 

 

144,355

 

 

 

149,922

 

 

 

142,473

 

 

 

140,181

 

 

 

117,021

 

Money management accounts

 

 

9,902

 

 

 

10,774

 

 

 

11,583

 

 

 

11,520

 

 

 

12,154

 

MMDA accounts

 

 

278,919

 

 

 

306,281

 

 

 

239,016

 

 

 

250,007

 

 

 

193,915

 

Demand deposit interest-bearing

 

 

120,083

 

 

 

109,941

 

 

 

101,080

 

 

 

97,344

 

 

 

128,168

 

Demand deposit noninterest-bearing

 

 

191,732

 

 

 

203,314

 

 

 

213,719

 

 

 

210,110

 

 

 

169,145

 

Mortgage escrow funds

 

 

6,581

 

 

 

4,677

 

 

 

7,184

 

 

 

5,269

 

 

 

6,564

 

Total deposits

 

$

1,221,887

 

 

$

1,264,480

 

 

$

1,204,524

 

 

$

1,196,213

 

 

$

1,101,277

 

 

The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.

11

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

 

2024

 

SELECTED AVERAGE BALANCES:

 

2025

 

 

2024

 

 

Q2

 

 

Q1

 

 

Q2

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

913,658

 

 

$

889,988

 

 

$

911,347

 

 

$

916,207

 

 

$

885,384

 

Taxable investment securities

 

 

425,841

 

 

 

433,156

 

 

 

435,022

 

 

 

416,558

 

 

 

434,572

 

Tax-exempt investment securities

 

 

34,394

 

 

 

29,053

 

 

 

34,314

 

 

 

34,475

 

 

 

28,944

 

Fed funds sold and interest-earning deposits

 

 

11,497

 

 

 

8,669

 

 

 

10,070

 

 

 

12,939

 

 

 

13,387

 

Total interest-earning assets

 

 

1,385,390

 

 

 

1,360,866

 

 

 

1,390,753

 

 

 

1,380,179

 

 

 

1,362,287

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

116,590

 

 

 

96,772

 

 

 

118,280

 

 

 

114,882

 

 

 

98,746

 

Allowance for credit losses

 

 

(17,377

)

 

 

(16,498

)

 

 

(17,342

)

 

 

(17,413

)

 

 

(16,905

)

Net unrealized losses on available-for-sale securities

 

 

(10,395

)

 

 

(10,701

)

 

 

(10,838

)

 

 

(9,947

)

 

 

(10,248

)

Total assets

 

$

1,474,208

 

 

$

1,430,439

 

 

$

1,480,853

 

 

$

1,467,701

 

 

$

1,433,880

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

 

$

112,720

 

 

$

97,213

 

 

$

113,994

 

 

$

111,643

 

 

$

92,918

 

Money management accounts

 

 

10,602

 

 

 

11,759

 

 

 

10,302

 

 

 

10,906

 

 

 

12,076

 

MMDA accounts

 

 

277,664

 

 

 

212,693

 

 

 

298,907

 

 

 

256,186

 

 

 

214,364

 

Savings and club accounts

 

 

129,752

 

 

 

110,119

 

 

 

129,736

 

 

 

129,769

 

 

 

107,558

 

Time deposits

 

 

494,200

 

 

 

525,767

 

 

 

489,490

 

 

 

498,963

 

 

 

524,276

 

Subordinated loans

 

 

30,149

 

 

 

29,954

 

 

 

30,173

 

 

 

30,123

 

 

 

29,977

 

Borrowings

 

 

66,165

 

 

 

133,894

 

 

 

61,803

 

 

 

70,575

 

 

 

141,067

 

Total interest-bearing liabilities

 

 

1,121,252

 

 

 

1,121,399

 

 

 

1,134,405

 

 

 

1,108,165

 

 

 

1,122,236

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

199,123

 

 

 

170,313

 

 

 

192,186

 

 

 

206,137

 

 

 

171,135

 

Other liabilities

 

 

29,497

 

 

 

16,542

 

 

 

29,037

 

 

 

29,961

 

 

 

17,298

 

Total liabilities

 

 

1,349,872

 

 

 

1,308,254

 

 

 

1,355,628

 

 

 

1,344,263

 

 

 

1,310,669

 

Shareholders' equity

 

 

124,336

 

 

 

122,185

 

 

 

125,225

 

 

 

123,438

 

 

 

123,211

 

Total liabilities & shareholders' equity

 

$

1,474,208

 

 

$

1,430,439

 

 

$

1,480,853

 

 

$

1,467,701

 

 

$

1,433,880

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

 

2024

 

SELECTED AVERAGE YIELDS:

 

2025

 

 

2024

 

 

Q2

 

 

Q1

 

 

Q2

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

5.86

%

 

 

5.56

%

 

 

5.75

%

 

 

5.97

%

 

 

5.64

%

Taxable investment securities

 

 

5.08

%

 

 

5.38

%

 

 

5.10

%

 

 

5.07

%

 

 

5.44

%

Tax-exempt investment securities

 

 

5.04

%

 

 

6.93

%

 

 

5.42

%

 

 

4.66

%

 

 

6.88

%

Fed funds sold and interest-earning deposits

 

 

2.73

%

 

 

5.05

%

 

 

2.70

%

 

 

2.75

%

 

 

3.62

%

Total interest-earning assets

 

 

5.58

%

 

 

5.53

%

 

 

5.52

%

 

 

5.63

%

 

 

5.59

%

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

 

 

1.16

%

 

 

1.08

%

 

 

1.25

%

 

 

1.07

%

 

 

1.14

%

Money management accounts

 

 

0.09

%

 

 

0.11

%

 

 

0.12

%

 

 

0.11

%

 

 

0.10

%

MMDA accounts

 

 

3.16

%

 

 

3.70

%

 

 

3.25

%

 

 

3.06

%

 

 

3.74

%

Savings and club accounts

 

 

0.25

%

 

 

0.26

%

 

 

0.25

%

 

 

0.25

%

 

 

0.26

%

Time deposits

 

 

3.66

%

 

 

3.97

%

 

 

3.64

%

 

 

3.69

%

 

 

4.03

%

Subordinated loans

 

 

6.36

%

 

 

6.54

%

 

 

6.40

%

 

 

6.31

%

 

 

6.53

%

Borrowings

 

 

3.56

%

 

 

4.09

%

 

 

3.67

%

 

 

3.46

%

 

 

4.05

%

Total interest-bearing liabilities

 

 

2.92

%

 

 

3.34

%

 

 

2.95

%

 

 

2.90

%

 

 

3.40

%

Net interest rate spread

 

 

2.66

%

 

 

2.19

%

 

 

2.57

%

 

 

2.73

%

 

 

2.19

%

Net interest margin

 

 

3.21

%

 

 

2.77

%

 

 

3.11

%

 

 

3.31

%

 

 

2.78

%

Ratio of average interest-earning assets to average interest-bearing liabilities

 

 

123.56

%

 

 

121.35

%

 

 

122.60

%

 

 

124.55

%

 

 

121.39

%

 

The above information is unaudited and preliminary based on the Company's data available at the time of presentation.

12

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

NON-GAAP RECONCILIATIONS:

 

2025

 

 

2024

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

Tangible book value per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

 

 

 

 

 

$

124,413

 

 

$

124,896

 

 

$

121,483

 

 

$

120,246

 

 

$

123,348

 

Intangible assets

 

 

 

 

 

 

 

 

(10,731

)

 

 

(10,888

)

 

 

(11,045

)

 

 

(11,969

)

 

 

(4,612

)

Tangible common equity (non-GAAP)

 

 

 

 

 

 

 

 

113,682

 

 

 

114,008

 

 

 

110,438

 

 

 

108,277

 

 

 

118,736

 

Common shares outstanding

 

 

 

 

 

 

 

 

6,168

 

 

 

6,144

 

 

 

6,126

 

 

 

6,100

 

 

 

6,100

 

Tangible book value per common share (non-GAAP)

 

 

 

 

 

 

 

$

18.43

 

 

$

18.56

 

 

$

18.03

 

 

$

17.75

 

 

$

19.46

 

Tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity (non-GAAP)

 

 

 

 

 

 

 

$

113,682

 

 

$

114,008

 

 

$

110,438

 

 

$

108,277

 

 

$

118,736

 

Tangible assets

 

 

 

 

 

 

 

 

1,494,388

 

 

 

1,484,449

 

 

 

1,463,829

 

 

 

1,471,157

 

 

 

1,441,599

 

Tangible common equity to tangible assets ratio (non-GAAP)

 

 

 

 

 

 

 

 

7.61

%

 

 

7.68

%

 

 

7.54

%

 

 

7.36

%

 

 

8.24

%

Return on average tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders' equity

 

$

124,336

 

 

$

122,185

 

 

$

125,225

 

 

$

123,438

 

 

$

121,589

 

 

$

125,626

 

 

$

123,211

 

Average intangible assets

 

 

10,912

 

 

 

4,617

 

 

 

10,834

 

 

 

10,991

 

 

 

11,907

 

 

 

4,691

 

 

 

4,614

 

Average tangible equity (non-GAAP)

 

 

113,424

 

 

 

117,568

 

 

 

114,391

 

 

 

112,447

 

 

 

109,682

 

 

 

120,935

 

 

 

118,597

 

Net income (loss)

 

 

3,005

 

 

 

4,120

 

 

 

31

 

 

 

2,974

 

 

 

3,907

 

 

 

(4,644

)

 

 

2,000

 

Net income (loss), annualized

 

$

6,060

 

 

$

8,285

 

 

$

124

 

 

$

11,831

 

 

$

15,543

 

 

$

(18,475

)

 

$

8,044

 

Return on average tangible common equity (non-GAAP) 1

 

 

5.34

%

 

 

7.05

%

 

 

0.11

%

 

 

10.52

%

 

 

14.17

%

 

 

-15.28

%

 

 

6.78

%

Revenue, pre-tax, pre-provision net income, and efficiency ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

22,225

 

 

$

18,880

 

 

$

10,814

 

 

$

11,411

 

 

$

10,377

 

 

$

11,732

 

 

$

9,480

 

Total noninterest income

 

 

(321

)

 

 

2,948

 

 

 

(1,518

)

 

 

1,197

 

 

 

4,906

 

 

 

1,707

 

 

 

1,211

 

Net realized (gains) losses on sales and redemptions of investment securities

 

 

(8

)

 

 

(132

)

 

 

-

 

 

 

(8

)

 

 

249

 

 

 

(188

)

 

 

16

 

Gains on sales of loans and foreclosed real estate

 

 

148

 

 

 

58

 

 

 

83

 

 

 

65

 

 

 

39

 

 

 

90

 

 

 

40

 

LOCOM HFS adjustment 2

 

 

(3,064

)

 

 

-

 

 

 

(3,064

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gain on asset sale

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,169

 

 

 

-

 

 

 

-

 

Revenue (non-GAAP) 3

 

 

24,828

 

 

 

21,902

 

 

 

12,277

 

 

 

12,551

 

 

 

11,826

 

 

 

13,537

 

 

 

10,635

 

Total non-interest expense

 

 

16,494

 

 

 

15,614

 

 

 

8,061

 

 

 

8,433

 

 

 

8,544

 

 

 

10,259

 

 

 

7,908

 

Pre-tax, pre-provision net income (non-GAAP) 4

 

$

8,334

 

 

$

6,288

 

 

$

4,216

 

 

$

4,183

 

 

$

3,321

 

 

$

3,368

 

 

$

2,767

 

Efficiency ratio (non-GAAP) 5

 

 

66.43

%

 

 

71.29

%

 

 

65.66

%

 

 

67.19

%

 

 

72.25

%

 

 

75.78

%

 

 

74.36

%

 

1 Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity

2 The loss reflects a valuation adjustment “Lower-of-cost-or-market" adjustment on loans held for sale to the estimated market value based on sale negotiation terms.

3 Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities, sales of loans and foreclosed real estate, and a gain on the October 2024 sale of the Company's insurance agency asset

4 Pre-tax, pre-provision net income equals revenue less total non-interest expense

5 Efficiency ratio equals noninterest expense divided by revenue

 

The above information is unaudited and preliminary based on the Company's data available at the time of presentation.

13