Pathfinder Bancorp(US:PBHC)2025-10-30 20:10Financial Performance - Net income attributable to common shareholders for Q3 2025 was $626,000, or $0.10 per diluted share, a significant increase from $31,000 or less than $0.01 per diluted share in Q2 2025, and a recovery from a net loss of $4.6 million or $0.75 per share in Q3 2024 [2][21]. - Net income attributable to Pathfinder Bancorp, Inc. was $3,631 million for the nine months ended September 30, 2025, compared to a loss of $524 million in 2024 [44]. - Basic voting earnings per common share increased to $0.58 in 2025, compared to a loss of $0.09 in 2024 [44]. - Basic earnings per share for voting shares improved to $0.58 in 2025, compared to a loss of $0.09 in 2024, highlighting a turnaround in earnings performance [47]. Loan and Deposit Trends - Total loans amounted to $898.5 million at the end of Q3 2025, a decrease of $11.2 million or 1.2% during the quarter and $23.1 million or 2.5% year-over-year [23]. - Total deposits grew to $1.23 billion at the end of Q3 2025, compared to $1.22 billion in Q2 2025 and $1.20 billion in Q3 2024, driven by an increase in core deposits [4]. - Total deposits reached $1.23 billion on September 30, 2025, reflecting a 0.3% increase during the third quarter and a 2.4% increase year-over-year [24]. - Total loans decreased to $898,520 million in 2025 from $909,723 million in 2024, indicating a contraction in loan growth [51]. - Average loans increased to $911,419 million in 2025 from $898,361 million in 2024, marking a growth of 1.2% [53]. Credit Quality and Risk Management - Provision expense increased to $3.5 million in Q3 2025, up from $1.2 million in Q2 2025 and down from $9.0 million in Q3 2024, reflecting ongoing efforts to mitigate credit risk [4]. - Allowance for credit losses rose to $18.7 million at the end of Q3 2025, an increase of $2.7 million during the quarter and $1.4 million from the previous year [4]. - Nonperforming loans rose to $23.3 million, representing 2.59% of total loans, compared to 1.28% in the previous quarter and 1.75% a year ago [27]. - The provision for credit loss expense was $3.5 million in the third quarter, an increase from $1.2 million in the previous quarter and $9.0 million in the same quarter last year [29]. - The Allowance for Credit Losses (ACL) stood at $18.7 million, or 2.08% of total loans, compared to 1.76% in the previous quarter and 1.87% a year ago [30]. - The allowance for credit losses at period end was $18,654 million, up from $17,274 million in 2024, suggesting a proactive approach to managing credit risk [51]. Income and Expense Analysis - Net interest income for Q3 2025 was $11.6 million, an increase of $786,000 or 7.3% from Q2 2025, while net interest margin (NIM) improved to 3.34% from 3.11% in the previous quarter [6][9]. - Noninterest income totaled $1.5 million in Q3 2025, recovering from a negative $1.5 million in Q2 2025, which included a pre-tax loss of $3.1 million [12]. - Noninterest expense was $8.9 million in Q3 2025, an increase of $875,000 from the linked quarter but a decrease of $1.3 million from the year-ago period [15]. - Total noninterest expense for the nine months ended September 30, 2025, was $25,430 million, a decrease of 1.7% from $25,873 million in 2024 [44]. - The company experienced a significant reduction in interest expense, totaling $24,534 million in 2025, down 13.5% from $28,219 million in 2024 [44]. Efficiency and Capital Management - The efficiency ratio for Q3 2025 was 68.77%, compared to 65.66% in Q2 2025 and 75.78% in Q3 2024, indicating improved cost management [20]. - The efficiency ratio improved to 67.24% in 2025 from 73.01% in 2024, demonstrating enhanced operational efficiency [47]. - The company’s Tier 1 Capital ratio increased to 12.17% in 2025 from 11.84% in 2024, indicating a stronger capital position [47]. - Shareholders' equity amounted to $126.3 million, up $1.9 million or 1.5% in the third quarter, and increased by $6.1 million or 5.1% from the previous year [25]. Asset Management - As of September 30, 2025, total assets were $1.47 billion, down from $1.51 billion in Q2 2025 and $1.48 billion in Q3 2024 [22]. - Total assets reached $1,475,614 million in 2025, up from $1,447,837 million in 2024, an increase of 1.9% [53]. - Total interest-earning assets increased to $1,386,635 million in 2025 from $1,375,332 million in 2024, reflecting a growth of 0.9% [53]. - The ratio of average interest-earning assets to average interest-bearing liabilities was 123.35% in 2025, indicating a stable asset-liability management [53]. Dividend and Stock Performance - The company declared a cash dividend of $0.10 per share, with a scheduled disbursement date of November 7, 2025 [34][35]. - The closing stock price was $15.68 per share, resulting in an annualized dividend yield of 2.55% [36].