[Financial Results for Fourth Quarter and Full Year 2024](index=1&type=section&id=Financial%20Results%20for%20Fourth%20Quarter%20and%20Full%20Year%202024) Pathfinder Bancorp reported strong Q4 2024 net income, significantly boosted by an insurance agency sale, contrasting with a full-year decline in net income compared to 2023 [Fourth Quarter and Full Year 2024 Highlights](index=1&type=section&id=Fourth%20Quarter%20and%20Full%20Year%202024%20Highlights) Pathfinder Bancorp achieved strong Q4 2024 net income, significantly boosted by an insurance agency sale, despite a full-year decline in net income compared to 2023, driven by deposit growth and margin expansion Q4 and Full Year 2024 Key Financial Results | Metric | Q4 2024 ($) | Q3 2024 ($) | Q4 2023 ($) | Full Year 2024 ($) | Full Year 2023 ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $4.3M | ($4.6M) | $2.5M | $3.8M | $9.3M | | EPS | $0.69 | ($0.75) | $0.41 | $0.60 | $1.51 | - Q4 2024 net income included a significant benefit of approximately **$1.4 million** from the gain on the sale of its insurance agency, net of taxes and transaction-related expenses[2](index=2&type=chunk) Q4 2024 vs. Prior Periods - Key Metrics | Metric | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Provision Expense ($ thousands) | 988 | 9,000 | 265 | | Net Interest Income ($ millions) | 10.8 | 11.7 | 9.2 | | Net Interest Margin (%) | 3.15 | 3.34 | 2.74 | | Non-interest Income ($ millions) | 4.9 | 1.7 | 1.3 | | Non-interest Expense ($ millions) | 8.5 | 10.3 | 7.0 | - Total deposits grew to **$1.20 billion**, an increase of **7.5%** from December 31, 2023. Total loans stood at **$919.0 million**, with commercial loans growing to **$539.7 million**[8](index=8&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management emphasized that core net interest income growth and margin expansion drove Q4 earnings, alongside strategic investments in middle-market talent and a continued focus on expense and credit risk management for long-term value - Core net interest income growth and net interest margin expansion were key contributors to Q4 earnings[6](index=6&type=chunk) - The company is investing in talent to serve middle-market businesses in the Syracuse area, with the recently acquired East Syracuse branch contributing significantly[6](index=6&type=chunk) - Management is committed to managing operating expenses and continuously improving its credit risk management approach to build long-term shareholder value[6](index=6&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section analyzes the company's financial performance, focusing on net interest income, noninterest income, and noninterest expense trends and their drivers [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Q4 2024 net interest income decreased quarter-over-quarter due to a prior one-time payment but increased significantly year-over-year, driven by higher loan yields and lower funding costs, while net interest margin followed a similar trend Net Interest Income and Margin Comparison | Metric | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income ($ millions) | 10.8 | 11.7 | 9.2 | | Net Interest Margin (%) | 3.15 | 3.34 | 2.74 | - The QoQ decrease in NII and NIM was primarily due to an **$887,000** catch-up interest payment in Q3 2024, which benefited the linked quarter's NIM by **25 basis points**[7](index=7&type=chunk)[9](index=9&type=chunk) - The YoY increase in NII of **18.1%** was driven by a **$1.2 million** increase in interest and dividend income and a **$463,000** decrease in interest expense, attributed to a better deposit mix and lower borrowing costs[10](index=10&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income significantly increased in Q4 2024, primarily due to a substantial gain from the sale of the company's insurance agency, with underlying noninterest income remaining relatively stable quarter-over-quarter and showing moderate year-over-year growth - Noninterest income for Q4 2024 was **$4.9 million**, which included a **$3.2 million** pre-tax gain from the sale of the company's insurance agency[12](index=12&type=chunk) - Excluding the gain on sale, noninterest income grew by **$30,000** from Q3 2024 and **$419,000** from Q4 2023[12](index=12&type=chunk) - Compared to the linked quarter, changes included a **$194,000** decrease in BOLI earnings (due to a prior death benefit) and increases in net realized gains on securities[14](index=14&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense decreased quarter-over-quarter due to the absence of prior one-time acquisition costs, but increased year-over-year primarily driven by higher salaries, benefits, and occupancy costs associated with increased headcount and a new branch Noninterest Expense Comparison | Period | Total Noninterest Expense ($ millions) | Key Items | | :--- | :--- | :--- | | Q4 2024 | 8.5 | Includes $456 thousand in insurance agency sale costs | | Q3 2024 | 10.3 | Includes $1.6 million in branch acquisition costs | | Q4 2023 | 7.0 | Baseline for comparison | - Salaries and benefits decreased by **$839,000** from the linked quarter but increased by **$446,000** from the prior-year quarter due to higher headcount[18](index=18&type=chunk) - Building and occupancy costs increased by **$390,000** from Q4 2023, primarily due to operating the newly acquired branch[19](index=19&type=chunk) - The efficiency ratio was **69.42%** in Q4 2024, improving from **75.28%** in Q3 2024 but higher than **67.25%** in Q4 2023[21](index=21&type=chunk) [Statement of Financial Condition](index=4&type=section&id=Statement%20of%20Financial%20Condition) This section details the company's financial position, including assets, liabilities, and equity, highlighting key changes in loans, deposits, and borrowings [Assets, Liabilities, and Equity](index=4&type=section&id=Assets%2C%20Liabilities%2C%20and%20Equity) As of December 31, 2024, total assets remained stable, with total deposits increasing and total borrowings significantly reduced year-over-year, while shareholders' equity also saw an increase Balance Sheet Highlights (as of Dec 31, 2024) | Metric | Dec 31, 2024 ($) | Sep 30, 2024 ($) | Dec 31, 2023 ($) | | :--- | :--- | :--- | :--- | | Total Assets | $1.47 billion | $1.48 billion | $1.47 billion | | Total Loans | $919.0 million | $921.7 million | $897.2 million | | Total Deposits | $1.20 billion | $1.20 billion | $1.12 billion | | Total Borrowings | $88.1 million | $100.1 million | $175.6 million | | Shareholders' Equity | $121.9 million | $120.2 million | $119.5 million | - Commercial loans grew **1.0%** during Q4 and **3.0%** from the prior year, reaching **$539.7 million**[23](index=23&type=chunk) - The increase in shareholders' equity for the full year was primarily driven by a **$2.1 million** increase in retained earnings[25](index=25&type=chunk) [Asset Quality and Liquidity](index=5&type=section&id=Asset%20Quality%20and%20Liquidity) This section evaluates the bank's asset quality, including nonperforming loans and charge-offs, and assesses its liquidity position and funding capacity [Asset Quality](index=5&type=section&id=Asset%20Quality) Asset quality metrics showed an increase in nonperforming loans at year-end, while net charge-offs significantly decreased quarter-over-quarter following a prior loan review, with the Allowance for Credit Losses remaining robust Asset Quality Metrics | Metric | Dec 31, 2024 (%) | Sep 30, 2024 (%) | Dec 31, 2023 (%) | | :--- | :--- | :--- | :--- | | Nonperforming Loans / Total Loans | 2.40 | 1.75 | 1.92 | | Net Charge-Offs (Annualized) | 0.44 | 3.82 | 0.05 | | Allowance for Credit Losses (ACL) / Total Loans | 1.88 | 1.87 | 1.78 | - Provision for credit loss expense was **$988,000** in Q4 2024, compared to a large **$9.0 million** provision in Q3 2024 which was taken to replenish reserves after a loan portfolio review[28](index=28&type=chunk) - The Allowance for Credit Losses (ACL) stood at **$17.2 million** as of December 31, 2024[29](index=29&type=chunk) [Liquidity](index=5&type=section&id=Liquidity) The company maintained a strong liquidity profile as of December 31, 2024, characterized by stable total deposits, a high percentage of core deposits, sufficient cash inflows, and significant available funding capacity - The bank's leadership effectively manages a robust liquidity profile, with expected cash inflows sufficient to meet all projected financial obligations[31](index=31&type=chunk) - Core deposits represented **76.87%** of total deposits on December 31, 2024, an improvement from **69.83%** on December 31, 2023[32](index=32&type=chunk) - The company has available additional funding capacity of **$113.8 million** with the FHLB of New York and another **$43.3 million** in unused credit lines[33](index=33&type=chunk) [Shareholder Information](index=6&type=section&id=Shareholder%20Information) This section provides details on the company's dividend declaration and related shareholder metrics [Cash Dividend Declared](index=6&type=section&id=Cash%20Dividend%20Declared) The Board of Directors declared a cash dividend of $0.10 per share, payable in February 2025, resulting in a 2.29% dividend yield based on the December 31, 2024 closing stock price - A cash dividend of **$0.10** per share was declared for all common stock holders[34](index=34&type=chunk) - The dividend is payable on February 7, 2025, to shareholders of record by January 17, 2025[35](index=35&type=chunk) - The dividend yield is **2.29%** based on the closing stock price of **$17.50** on December 31, 2024[36](index=36&type=chunk) [Selected Financial Tables](index=8&type=section&id=Selected%20Financial%20Tables) This section provides comprehensive unaudited financial tables, including balance sheet, income statement, key ratios, asset quality, and average balances, offering detailed financial insights [Selected Financial Information (Unaudited)](index=8&type=section&id=Selected%20Financial%20Information%20(Unaudited)) This section provides detailed, unaudited balance sheet and income statement data for recent periods, breaking down assets, liabilities, equity, and various income and expense components Selected Balance Sheet Data (December 31, 2024) | Account | Amount (in thousands) | | :--- | :--- | | Total Assets | $1,474,874 | | Loans, net | $901,743 | | Total Deposits | $1,204,393 | | Total Shareholders' Equity | $121,860 | Selected Income Statement Data (Q4 2024) | Account | Amount (in thousands) | | :--- | :--- | | Net Interest Income | $10,820 | | Provision for Credit Losses | $988 | | Noninterest Income | $4,906 | | Noninterest Expense | $8,544 | | Net Income Attributable to PBHC | $4,284 | [Financial Highlights and Ratios](index=10&type=section&id=Financial%20Highlights%20and%20Ratios) This section presents key performance ratios for recent periods, encompassing profitability, margin analysis, operational efficiency, capital adequacy, and per-share data Key Performance Ratios (Q4 2024) | Ratio | Value | | :--- | :--- | | Return on average assets (ROA) (%) | 1.17 | | Return on average common equity (ROE) (%) | 14.09 | | Net interest margin (NIM) (%) | 3.15 | | Efficiency ratio (non-GAAP) (%) | 69.42 | | Book value per common share ($) | 19.90 | [Asset Quality, Loan and Deposit Composition](index=11&type=section&id=Asset%20Quality%2C%20Loan%20and%20Deposit%20Composition) This section provides detailed tables on asset quality metrics and the composition of the loan and deposit portfolios over recent quarters, categorized by loan type and deposit category Asset Quality Ratios (December 31, 2024) | Ratio | Value (%) | | :--- | :--- | | Net loan charge-offs to average loans (annualized) | 0.44 | | Allowance for credit losses to period end loans | 1.88 | | Nonperforming loans to period end loans | 2.40 | - As of December 31, 2024, the largest loan categories were Commercial real estate (**$377.6 million**) and 1-4 family residential mortgages (**$251.4 million**)[49](index=49&type=chunk) [Selected Average Balances and Yields](index=12&type=section&id=Selected%20Average%20Balances%20and%20Yields) This section details average balances of interest-earning assets and interest-bearing liabilities, along with their associated yields and costs, providing insight into net interest margin components Average Yields and Costs (Q4 2024) | Metric | Value (%) | | :--- | :--- | | Average Yield on Loans | 5.87 | | Average Yield on Total Interest-Earning Assets | 5.69 | | Average Cost of Total Interest-Bearing Liabilities | 3.16 | | Net Interest Rate Spread | 2.53 | | Net Interest Margin | 3.15 | [Non-GAAP Reconciliations](index=13&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, including calculations for tangible book value, tangible common equity, and efficiency ratios - Tangible book value per common share (a non-GAAP measure) was **$18.10** at December 31, 2024, compared to a GAAP book value of **$19.90**[52](index=52&type=chunk) - Pre-tax, pre-provision net income (a non-GAAP measure) was **$3.76 million** for Q4 2024[52](index=52&type=chunk)

Core Financial Performance - Pathfinder Bancorp reported a net income of $4.3 million or $0.69 per share for the fourth quarter of 2024, benefiting from a $1.4 million gain on the sale of its insurance agency [2][3] - The company experienced a net loss of $4.6 million or $0.75 per share in the third quarter of 2024, primarily due to a $9.0 million provision expense related to a loan portfolio review [3] - For the full year 2024, net income was $3.8 million or $0.60 per share, compared to $9.3 million or $1.51 per share in 2023 [3] Net Interest Income and Margin - Fourth quarter 2024 net interest income was $10.8 million, a decrease of 7.8% from the third quarter, but an increase of 18.1% from the fourth quarter of 2023 [6][8] - The net interest margin (NIM) for the fourth quarter was 3.15%, down from 3.34% in the previous quarter but up from 2.74% in the same period last year [7][10] Non-Interest Income and Expenses - Non-interest income totaled $4.9 million in the fourth quarter, including a $3.2 million pre-tax gain from the insurance agency sale, compared to $1.7 million in the linked quarter [11][12] - Non-interest expenses were $8.5 million in the fourth quarter, decreasing by $1.7 million from the linked quarter but increasing by $1.5 million from the year-ago period [15] Asset Quality and Provision for Credit Losses - Nonperforming loans increased to $22.1 million or 2.40% of total loans as of December 31, 2024, compared to 1.75% in the previous quarter [25] - Provision for credit loss expense was $988,000 in the fourth quarter, significantly lower than the $9.0 million in the third quarter [27][28] Deposits and Loans - Total deposits reached $1.20 billion, growing by $8.1 million or 2.7% annualized from the previous quarter and by $84.3 million or 7.5% year-over-year [9][23] - Total loans were $919.0 million at the end of the fourth quarter, a slight decrease from the previous quarter but an increase of 2.4% from the year prior [22] Shareholder Equity and Dividends - Shareholders' equity totaled $121.9 million, reflecting a $1.6 million increase in the fourth quarter [24] - A cash dividend of $0.10 per share was declared, with a dividend yield of 2.29% based on the closing stock price of $17.50 as of December 31, 2024 [32][34]

Core Financial Performance - Pathfinder Bancorp reported a net income of $4.3 million or $0.69 per share for the fourth quarter of 2024, benefiting from a $1.4 million gain on the sale of its insurance agency [2][3] - The company experienced a net loss of $4.6 million or $0.75 per share in the third quarter of 2024, compared to a net income of $2.5 million or $0.41 per share in the fourth quarter of 2023 [3] - For the full year 2024, net income was $3.8 million or $0.60 per share, down from $9.3 million or $1.51 per share in 2023 [3] Net Interest Income and Margin - Fourth quarter 2024 net interest income was $10.8 million, a decrease of 7.8% from the third quarter but an increase of 18.1% from the fourth quarter of 2023 [6][9] - The net interest margin (NIM) for the fourth quarter was 3.15%, down from 3.34% in the previous quarter but up from 2.74% in the same period last year [8][10] - Full-year net interest income was $41.4 million in 2024, compared to $38.9 million in 2023 [7] Non-Interest Income and Expenses - Non-interest income totaled $4.9 million in the fourth quarter of 2024, including a $3.2 million pre-tax gain from the insurance agency sale, compared to $1.7 million in the linked quarter [11][12] - Non-interest expense was $8.5 million in the fourth quarter, decreasing from $10.3 million in the linked quarter but increasing from $7.0 million in the year-ago period [15] - Salaries and benefits accounted for $4.1 million in the fourth quarter, reflecting a decrease from the linked quarter but an increase from the year-ago period [17] Asset Quality and Provision for Credit Losses - Nonperforming loans were $22.1 million or 2.40% of total loans as of December 31, 2024, up from 1.75% in the previous quarter [25] - Provision for credit loss expense was $988,000 in the fourth quarter, significantly lower than $9.0 million in the linked quarter [27] - The allowance for credit losses (ACL) was $17.2 million, representing 1.88% of total loans [28] Liquidity and Deposits - Total deposits were $1.20 billion at the end of the fourth quarter, reflecting a 2.7% annualized growth from the previous quarter and a 7.5% increase from the year-ago period [23][30] - The company maintained a strong liquidity profile with an available additional funding capacity of $113.8 million with the Federal Home Loan Bank of New York [31] Shareholder Value - A cash dividend of $0.10 per share was declared on December 23, 2024, with a dividend yield of 2.29% based on a closing stock price of $17.50 per share as of December 31, 2024 [32][33]

Financial Position - As of September 30, 2024, the Company and its subsidiaries had total consolidated assets of $1.48 billion, total consolidated liabilities of $1.36 billion, and shareholders' equity of $120.2 million[160]. - Total assets increased by $17.3 million or 1.18% to $1.48 billion at September 30, 2024, primarily due to increases in total loans and intangible assets[224]. - Total liabilities increased by $16.5 million or 1.23% to $1.36 billion at September 30, 2024, mainly due to increases in total deposits and finance lease liabilities[228]. - Shareholders' equity increased by $751,000 or 0.6% to $120.2 million at September 30, 2024, primarily due to a decrease in accumulated other comprehensive loss[231]. Loan and Credit Quality - The Bank's position in individually evaluated loans consisted of 49 loans totaling $19.6 million, with 16 loans valued at $3.1 million using the present value of future cash flows method[170]. - The Bank allocated $9.8 million to the allowance for credit losses (ACL) for commercial loans, which represent 57.9% of the Bank's entire loan portfolio[171]. - The provision for credit losses was $9.0 million in Q3 2024, significantly higher than $0.8 million in Q3 2023, with net charge-offs of $8.7 million representing 1.29% of average loans[187]. - Nonperforming loans decreased by 34.0% to $16.2 million, or 1.8% of total loans, as of September 30, 2024[204]. - The ratio of delinquent loans to total loans increased to 4.1% as of September 30, 2024, up from 3.8% at December 31, 2023, with delinquent loans increasing by $3.9 million[207]. - The allowance for credit losses was $17.3 million as of September 30, 2024, compared to $16.0 million at December 31, 2023, reflecting a ratio of 1.87% to total loans[240]. - Total nonperforming loans to total loans was 1.75% as of September 30, 2024, compared to 1.92% at December 31, 2023[238]. Income and Expenses - Net income for Q3 2024 decreased to a net loss of $4.6 million or $0.75 per share, compared to a net income of $2.2 million or $0.35 per share in Q3 2023[184]. - Net interest income for Q3 2024 was $11.7 million, an increase of 16.6% from Q3 2023, driven by a $3.5 million increase in interest and dividend income[185]. - Noninterest income increased by 43.1% to $1.7 million in Q3 2024, with notable increases in interchange fees and earnings on bank-owned life insurance[188]. - Noninterest expense totaled $10.3 million in Q3 2024, an increase of $2.6 million from Q3 2023, primarily due to transaction-related expenses from the East Syracuse branch acquisition[189]. - The efficiency ratio for Q3 2024 was 75.28%, impacted by acquisition-related expenses, compared to 67.93% in Q3 2023[190]. - Salaries and benefits were $5.0 million in Q3 2024, increasing $805,000 or 19.4% from the year-ago quarter, driven by transaction-related bonuses and higher personnel costs[214]. - Professional and other services expense was $1.8 million in Q3 2024, up $1.3 million or 269.9% from the previous year, mainly attributed to branch acquisition-related expenses[213]. Deposits and Funding - Total deposits increased by $76.1 million, or 6.8%, from December 31, 2023, primarily due to $186.0 million in deposits from the East Syracuse branch acquisition[199]. - Core deposits, which exclude certificates of deposit of $250,000 or more, accounted for 77.45% of the Company's total deposit base of $1.20 billion[199]. - Total deposits increased to $1,196.2 million as of September 30, 2024, up from $1,120.1 million at December 31, 2023, representing a growth of 6.8%[201]. - The average cost of deposits acquired in the East Syracuse branch acquisition was approximately 1.99%[181]. - The Company had $222.3 million in outstanding commitments to extend credit and standby letters of credit as of September 30, 2024[252]. - A significant decrease in deposits could lead the Company to seek alternative funding sources, potentially increasing interest expenses[248]. Capital and Ratios - As of September 30, 2024, total core capital to risk-weighted assets was $147,211 thousand, representing a ratio of 14.52%[234]. - Total Tier 1 capital to risk-weighted assets was $134,471 thousand, with a ratio of 13.26% as of September 30, 2024[237]. - The ratio of total capital to risk-weighted assets was 13.26% as of September 30, 2024, down from 13.80% at December 31, 2023[237]. - The total Tier 1 common equity to risk-weighted assets ratio was 13.26% as of September 30, 2024, down from 13.80% at December 31, 2023[237]. Other Key Developments - On October 1, 2024, the Company completed the sale of its interest in FitzGibbons to Marshall & Sterling Enterprises, Inc.[160]. - The Company maintains a noncontributory defined benefit pension plan, which has been frozen since May 14, 2012, to reduce earnings volatility[174]. - Management performed an annual evaluation of goodwill and intangible assets for possible impairment, determining that the carrying value of goodwill was not impaired as of December 31, 2023[180]. - The Company invests excess funds in short-term interest-earning assets to maintain liquidity for lending requirements[247]. - The Company maintains a quality control program for closed loans, considering potential repurchase risks to be minimal[246]. - The management continuously monitors liquidity and reported compliance with liquidity policy guidelines as of September 30, 2024[251].

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 Third Quarter 2024 Results Results reflect branch-acquisition-related expenses, as well as provision expense resulting from a comprehensive loan portfolio review that significantly reduced nonperformers, as Pathfinder positions the Bank for organic growth in its Central New York markets OSWEGO, N.Y., October 30, 2024 (GLOBE NEWSWIRE) -- ...

Financial Position - As of June 30, 2024, the Company and its subsidiaries had total consolidated assets of $1.45 billion, total consolidated liabilities of $1.32 billion, and shareholders' equity of $123.3 million[128]. - The Company is required to consolidate 100% of FitzGibbons Agency, LLC, despite owning only 51% of the membership interest, resulting in a noncontrolling interest of $826,000[128]. - Total assets decreased by $19.6 million, or 1.34%, to $1.45 billion as of June 30, 2024, compared to December 31, 2023[195]. - Total liabilities decreased by $23.5 million, or 1.7%, to $1.32 billion at June 30, 2024[197]. - Shareholders' equity increased by $3.8 million, or 3.2%, to $123.3 million at June 30, 2024, driven by net income of $4.1 million[198]. Loan and Credit Quality - The Bank's position in individually evaluated loans consisted of 58 loans totaling $19.3 million, with 17 loans valued at $3.1 million using the present value of future cash flows method[136]. - The Bank allocated $7.5 million to the allowance for credit losses (ACL) for commercial loans, which represent 52.0% of the Bank's entire loan portfolio totaling $461.2 million[137]. - The total loan delinquency ratio was 4.8% as of June 30, 2024, down from 5.5% at March 31, 2024, and 3.8% at December 31, 2023[181]. - The allowance for credit losses was $16.9 million as of June 30, 2024, compared to $16.0 million at December 31, 2023, with a ratio of 1.89% to total loans[207]. - Potential problem loans totaled $40.6 million at June 30, 2024, an increase of $2.5 million from $43.1 million at December 31, 2023[211]. - The ratio of nonperforming loans to total loans was 2.76% as of June 30, 2024, compared to 1.92% at December 31, 2023[205]. - The total amount of nonaccrual loans was $24.5 million as of June 30, 2024, up from $17.2 million at December 31, 2023[204]. - As of June 30, 2024, total nonperforming assets were $24.6 million, an increase of $7.2 million from $17.4 million at December 31, 2023, and $4.0 million from $20.6 million at June 30, 2023[205]. Income and Earnings - Net income for the second quarter of 2024 was $2.0 million, an increase of $18,000 or 0.9% from the second quarter of 2023[148]. - Basic and diluted earnings per voting common share for the second quarter of 2024 were both $0.32, unchanged from the same period in 2023[148]. - Noninterest income for Q2 2024 was $1.2 million, an increase of $124,000 or 11.4% compared to Q2 2023[183]. - Total noninterest income for the six months ended June 30, 2024, reached $2.9 million, up $269,000 from the same period in 2023[186]. - Recurring noninterest income increased by $155,000 or 13.6% year-over-year, driven by a $79,000 rise in debit card interchange fees[184]. Interest Income and Expenses - Net interest income for the second quarter of 2024 decreased by $252,000 or 2.6% to $9.5 million compared to the second quarter of 2023[148]. - Total interest income for the six months ended June 30, 2024, was $5.968 million, an increase from $5.714 million in the same period of 2023[174]. - Total interest expense for the six months ended June 30, 2024, was $6.788 million, compared to $6.387 million for the same period in 2023[174]. - The net interest margin for the second quarter of 2024 was 2.78%, down from 2.96% in the second quarter of 2023[171]. - Average loan yield increased by 44 basis points, contributing to an increase in interest income of $698,000 for the second quarter of 2024[170]. Deposits and Funding - Total deposits at the end of the second quarter of 2024 were $1.10 billion, unchanged from June 30, 2023[148]. - Total deposits decreased by $18.8 million, or 1.7%, from December 31, 2023, primarily due to seasonal fluctuations of municipal depositors[175]. - As of June 30, 2024, 55.9% of the Company's deposit base of $1.10 billion consisted of core deposits, which are considered more stable[175]. - The average cost of deposits acquired in the East Syracuse branch acquisition was approximately 1.99%[146]. - The Company will continue to emphasize retail and business core deposits by providing a full range of deposit product offerings[175]. Expenses and Taxation - The Bank's noninterest expense for the second quarter of 2024 was $7.9 million, an increase of $734,000 or 10.2% from the same period in 2023[157]. - Salaries and employee benefits rose by $493,000 or 12.6% in Q2 2024, attributed to headcount increases and wage inflation[188]. - The effective tax rate decreased to 19.3% for Q2 2024, down from 21.2% in Q2 2023, primarily due to fluctuations in permanent tax differences[191]. - Professional and other services expenses increased by $193,000 or 38.4% in Q2 2024, largely due to nonrecurring expenses related to technology enhancements[188]. Capital and Regulatory Compliance - The Bank met the regulatory definition of a "well-capitalized" institution with a leverage capital ratio exceeding 5% and a Tier 1 risk-based capital ratio exceeding 8% as of June 30, 2024[199]. - Total Tier 1 capital to risk-weighted assets was 14.79% as of June 30, 2024, compared to 13.80% at December 31, 2023[203]. - Total core capital to risk-weighted assets increased to 16.04% at June 30, 2024, from 15.05% at December 31, 2023[203].

Second Quarter 2024 Key Results: The average cost of deposits acquired in the East Syracuse branch acquisition was approximately 1.99% (excluding Core Deposit Intangible), and the Company intends to utilize the additional liquidity to pay down approximately $150 million of borrowings that have an average cost of approximately 5.33% in three months ending June 30, which is expected to benefit total funding costs in the third quarter of 2024. The Company filed Form 8-K on July 22, 2024, and announced that it ...

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 2024 Net Income of $2.0 Million Net interest margin expanded for the second consecutive quarter, and low-cost deposits acquired with the recently completed East Syracuse branch purchase are expected to benefit total funding costs OSWEGO, N.Y., July 29, 2024 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. ("Company") (NASDAQ: ...

OSWEGO, N.Y., July 22, 2024 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (NASDAQ: PBHC), the holding company for Pathfinder Bank ("Pathfinder"), announced today that Pathfinder has completed the previously announced purchase and assumption of the East Syracuse, New York branch of Berkshire Bank, the banking subsidiary of Berkshire Hills Bancorp, Inc. In connection with the purchase, Pathfinder assumed approximately $186 million in deposit liabilities and acquired approximately $30 million in loans. "This ac ...

OSWEGO, N.Y., July 01, 2024 (GLOBE NEWSWIRE) -- James A. Dowd, President and CEO of Pathfinder Bancorp, Inc., the bank holding company of Pathfinder Bank (NASDAQ: PBHC) (listing: PathBcp), has announced that the Company has declared a cash dividend of $0.10 per share on the Company's voting common and non-voting common stock, and a cash dividend of $0.10 per notional share for the issued warrant relating to the fiscal quarter ending June 30, 2024. The second quarter 2024 dividend will be payable to all shar ...