Pathfinder Bancorp(US:PBHC) Globenewswire·2026-01-29 21:18Core Insights - Pathfinder Bancorp reported a net loss of $7.0 million, or $1.11 per diluted share, for Q4 2025, and a net loss of $3.4 million, or $0.54 per diluted share, for the full year 2025, primarily due to an $11.2 million credit loss provision expense [2][27] - The company has completed a comprehensive review of its commercial loan portfolio, leading to a significant risk-based reserve build and a more rigorous approach to credit risk management [4][5][9] - Management believes that the actions taken will lead to more consistent earnings in 2026 and support the growth of capital ratios [8] Financial Performance - Net interest income for Q4 2025 was $10.5 million, a decrease of 9.4% from Q3 2025, while the net interest margin (NIM) was 3.09% [12][13] - Noninterest income for Q4 2025 totaled $1.3 million, significantly lower than $4.9 million in Q4 2024, impacted by a $398,000 LOCOM HFS adjustment [18][19] - Noninterest expense increased to $9.2 million in Q4 2025, representing 2.51% of average assets, compared to 2.40% in Q3 2025 [21][26] Asset Quality - Nonperforming loans rose to $27.6 million, or 3.07% of total loans, as of December 31, 2025, up from $23.3 million or 2.59% in Q3 2025 [34] - The allowance for credit losses (ACL) increased to $29.4 million, or 3.28% of total loans, reflecting a proactive approach to managing credit risk [36][37] Liquidity and Capital - Total deposits decreased to $1.18 billion as of December 31, 2025, down from $1.23 billion in Q3 2025, primarily due to runoff of higher-cost brokered deposits [31][39] - The company maintains a strong liquidity profile with additional funding capacity of $157.5 million with the Federal Home Loan Bank and $13.5 million with the Federal Reserve Bank [40] Dividend Declaration - A cash dividend of $0.10 per share was declared on December 22, 2025, payable on February 6, 2026, reflecting the company's commitment to delivering shareholder value [41][42]