Pathfinder Bancorp, Inc. (PBHC) Bundle
A Brief History of Pathfinder Bancorp, Inc.
Company Overview
Pathfinder Bancorp, Inc. is a financial holding company based in Oswego, New York, primarily operating through its subsidiary, Pathfinder Bank. As of September 30, 2024, the company reported total assets of $1.48 billion, an increase from $1.45 billion in June 2024 and $1.40 billion in September 2023.
Financial Performance
In the third quarter of 2024, Pathfinder Bancorp recorded a net interest income of $11.7 million, a significant increase of 16.6% year-over-year. The net interest margin improved to 3.34%, up from 3.07% in the previous year. The company’s total deposits increased to $1.20 billion, reflecting an 8.6% growth from the previous quarter.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Assets | $1.48 billion | $1.45 billion | $1.40 billion |
| Net Interest Income | $11.7 million | $9.5 million | $10.1 million |
| Net Interest Margin | 3.34% | 2.78% | 3.07% |
| Total Deposits | $1.20 billion | $1.10 billion | $1.13 billion |
Loan Portfolio and Asset Quality
As of September 30, 2024, total loans amounted to $921.7 million, with a loan-to-deposit ratio of 77.1%. Nonperforming loans were reported at $16.2 million, which is 1.75% of total loans, showing a reduction of 34.0% from the previous quarter.
Recent Developments
In July 2024, Pathfinder completed the acquisition of an East Syracuse branch, which included $186.0 million in deposits and $30.6 million in assets. This acquisition significantly expanded the company's customer base by approximately 25%.
Dividends
On September 30, 2024, Pathfinder declared a cash dividend of $0.10 per share, which is scheduled for disbursement on November 8, 2024, to shareholders registered by October 18, 2024.
Future Outlook
Pathfinder Bancorp aims to leverage its enhanced core deposit franchise and efficiently manage operating expenses to support organic growth in its Central New York markets. The company maintains a strong liquidity profile with additional funding capacity of $105.2 million available from the Federal Home Loan Bank of New York as of September 30, 2024.
A Who Owns Pathfinder Bancorp, Inc. (PBHC)
Shareholder Composition
As of 2024, Pathfinder Bancorp, Inc. (PBHC) has a diverse ownership structure, comprising both institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage (%) |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 8.72 |
| Institutional Investor | The Vanguard Group, Inc. | 6.45 |
| Institutional Investor | State Street Corporation | 5.33 |
| Individual | James A. Dowd (CEO) | 1.90 |
| Individual | Board of Directors | 2.10 |
| Other | Public Float | 75.50 |
Stock Performance and Market Data
As of September 30, 2024, the stock performance of Pathfinder Bancorp, Inc. reflects its financial health and market position:
| Metric | Value |
|---|---|
| Current Stock Price (PBHC) | $9.15 |
| Market Capitalization | $55.8 million |
| 52-Week High | $12.50 |
| 52-Week Low | $8.00 |
| P/E Ratio | N/A (net loss reported) |
Recent Financial Highlights
Pathfinder Bancorp's recent financial performance indicates various challenges and opportunities for growth:
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Loss Attributable to Common Shareholders | ($4.6 million) | $2.0 million | $2.2 million |
| Net Interest Income | $11.7 million | $9.5 million | $10.1 million |
| Noninterest Income | $1.7 million | $1.2 million | $1.2 million |
| Total Assets | $1.48 billion | $1.45 billion | $1.40 billion |
| Total Deposits | $1.20 billion | $1.10 billion | $1.13 billion |
Institutional Ownership Trends
Institutional ownership has shown a slight increase over the last year, reflecting growing investor confidence:
| Institutional Owner | 2023 Ownership (%) | 2024 Ownership (%) |
|---|---|---|
| BlackRock, Inc. | 7.80 | 8.72 |
| The Vanguard Group, Inc. | 5.60 | 6.45 |
| State Street Corporation | 4.95 | 5.33 |
Conclusion on Ownership Dynamics
As of 2024, Pathfinder Bancorp, Inc. (PBHC) is primarily owned by institutional investors, with a significant portion of shares held by the public. The trends in ownership indicate a stable institutional presence, which may provide a buffer against volatility in the stock price. The financial metrics reflect challenges faced by the company, particularly in terms of profitability, which are being addressed through strategic initiatives.
Pathfinder Bancorp, Inc. (PBHC) Mission Statement
Company Overview
Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is a financial institution focused on delivering comprehensive banking solutions in Central New York. The company operates primarily through its subsidiary, Pathfinder Bank, and emphasizes community engagement and local service in its mission.
Mission Statement
Pathfinder Bancorp, Inc. aims to enhance the financial well-being of its customers and communities by providing exceptional service, innovative products, and a commitment to local economic development. This mission is reflected in their operational strategies and customer engagement efforts.
Strategic Goals
- Strengthen customer relationships through personalized banking services.
- Expand market presence by leveraging community involvement and local partnerships.
- Enhance product offerings to meet the evolving needs of customers.
- Maintain strong financial performance and operational efficiency.
Financial Performance
As of the third quarter of 2024, Pathfinder Bancorp reported significant financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $11.7 million | $9.5 million | $10.1 million |
| Net Loss Attributable to Common Shareholders | $4.6 million | $2.0 million | $2.2 million |
| Noninterest Income | $1.7 million | $1.2 million | $1.2 million |
| Total Assets | $1.48 billion | $1.45 billion | $1.40 billion |
| Total Deposits | $1.20 billion | $1.10 billion | $1.13 billion |
| Total Loans | $921.7 million | $888.3 million | $896.1 million |
| Net Interest Margin | 3.34% | 2.78% | 3.07% |
Community Engagement
Pathfinder Bancorp is dedicated to community service, focusing on local economic development initiatives. The company actively participates in various local programs and partnerships to support economic growth in its service areas.
Recent Developments
In 2024, Pathfinder Bancorp completed the acquisition of the East Syracuse branch, enhancing its market presence and deposit base significantly:
| Acquisition Details | Value |
|---|---|
| Deposits Assumed | $186.0 million |
| Assets Acquired | $30.6 million |
| Core Deposit Intangible Value | $6.3 million |
Conclusion
Pathfinder Bancorp continues to focus on its mission of community engagement, financial service excellence, and sustainable growth, positioning itself as a critical player in the Central New York banking landscape.
How Pathfinder Bancorp, Inc. (PBHC) Works
Financial Overview
As of September 30, 2024, Pathfinder Bancorp, Inc. reported total assets of $1.48 billion, an increase from $1.45 billion in the previous quarter and $1.40 billion year-over-year. The company’s total liabilities stood at $1.32 billion, with total equity at $120.3 million.
| Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $1.48 billion | $1.45 billion | $1.40 billion |
| Total Liabilities | $1.32 billion | $1.27 billion | $1.26 billion |
| Total Equity | $120.3 million | $123.4 million | $126.8 million |
Net Interest Income
In the third quarter of 2024, Pathfinder Bancorp reported net interest income of $11.7 million, a 16.6% increase from $10.1 million in Q3 2023. The net interest margin (NIM) was 3.34%, up from 3.07% in the same quarter last year.
Loan and Deposit Growth
Total loans increased to $921.7 million as of September 30, 2024, compared to $888.3 million in the previous quarter and $896.1 million a year earlier. Total deposits rose to $1.20 billion, from $1.10 billion in Q2 2024 and $1.13 billion in Q3 2023.
| Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Loans | $921.7 million | $888.3 million | $896.1 million |
| Total Deposits | $1.20 billion | $1.10 billion | $1.13 billion |
Noninterest Income and Expenses
Noninterest income for the third quarter of 2024 was $1.7 million, an increase from $1.2 million in the linked quarter. Noninterest expenses totaled $10.3 million, reflecting an increase due to transaction-related expenses from the acquisition of the East Syracuse branch.
| Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Noninterest Income | $1.7 million | $1.2 million | $1.2 million |
| Noninterest Expenses | $10.3 million | $7.9 million | $7.7 million |
Credit Quality and Provisions
The company reported $9.0 million in provisions for credit losses in Q3 2024, leading to net charge-offs of $8.7 million. Nonperforming loans decreased to $16.2 million, representing 1.75% of total loans.
| Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Provision for Credit Losses | $9.0 million | $2.7 million | $3.8 million |
| Net Charge-Offs | $8.7 million | $66,000 | $3.8 million |
| Nonperforming Loans | $16.2 million | $24.5 million | $19.7 million |
Liquidity and Capital Ratios
Pathfinder Bancorp maintains a solid liquidity position with total available funding of $105.2 million from the Federal Home Loan Bank of New York. The company’s Tier 1 capital ratio was reported at 9.13% as of September 30, 2024.
| Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Available Funding | $105.2 million | N/A |
| Tier 1 Capital Ratio | 9.13% | 10.11% |
Dividends
On September 30, 2024, the Board of Directors declared a cash dividend of $0.10 per share, payable on November 8, 2024, to shareholders registered by October 18, 2024.
Recent Developments
Pathfinder Bancorp completed the acquisition of the East Syracuse branch on July 19, 2024, which brought in $186.0 million in deposits and $30.6 million in assets. Additionally, the company sold its interest in the FitzGibbons Agency, LLC, for approximately $2.0 million on October 1, 2024.
How Pathfinder Bancorp, Inc. (PBHC) Makes Money
Net Interest Income
Pathfinder Bancorp generates revenue primarily through net interest income. For the third quarter of 2024, net interest income was reported at $11.7 million, an increase of 16.6% from the same quarter in 2023. This growth was driven by an increase in interest and dividend income of $3.5 million, attributed to average yield increases across various asset classes:
| Asset Type | Increase in Income | Yield Increase |
|---|---|---|
| Loans | $2.0 million | 74 basis points |
| Taxable Investment Securities | $1.2 million | 67 basis points |
| Federal Funds Sold and Interest-Earning Deposits | $426,000 | 227 basis points |
The net interest margin (NIM) for the third quarter of 2024 was 3.34%, compared to 3.07% in the third quarter of 2023. This increase was due to improvements in earning asset yields and lower average borrowings, alongside higher funding costs.
Noninterest Income
Noninterest income is another significant revenue stream for Pathfinder Bancorp. In the third quarter of 2024, noninterest income totaled $1.7 million, reflecting a 41.0% increase from the second quarter of 2024 and a 43.1% increase from the third quarter of 2023. The components of this noninterest income included:
| Source | Income Amount |
|---|---|
| Bank Owned Life Insurance (BOLI) | $194,000 |
| Debit Card Interchange Fees | $109,000 |
| Service Charges on Deposit Accounts | $62,000 |
The increase in noninterest income was also influenced by gains on sales and redemptions of investment securities and loans.
Loan Portfolio and Charge-Offs
Pathfinder Bancorp manages a diversified loan portfolio totaling $921.7 million as of September 30, 2024. The composition of loans includes:
| Loan Type | Amount ($ million) |
|---|---|
| 1-4 Family Residential Mortgages | 255.2 |
| Commercial Real Estate | 378.8 |
| Commercial Lines of Credit | 64.7 |
| Consumer Loans | 76.7 |
However, the quarter also saw gross loan charge-offs of $8.8 million, primarily due to nonperforming commercial loans.
Deposits and Funding
As of September 30, 2024, total deposits rose to $1.20 billion, a significant increase from $1.10 billion at the end of June 2024. The growth in deposits was bolstered by the acquisition of the East Syracuse branch, which contributed $186.0 million in deposits. The core deposits represented 77.45% of total deposits.
Expense Management
Total noninterest expense for the third quarter of 2024 was $10.3 million, which includes transaction-related expenses of $1.6 million associated with the East Syracuse branch acquisition. Salaries and benefits accounted for $5.0 million, reflecting increased personnel costs due to branch expansion and wage inflation.
Summary of Financial Performance
In summary, Pathfinder Bancorp's financial performance in 2024 reflects a combination of increased net interest income, growth in noninterest income, and effective management of deposits and expenses. The company reported a net loss attributable to common shareholders of $4.6 million for the third quarter, which was impacted by a $9.0 million provision for credit losses.
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Article updated on 8 Nov 2024
Resources:
- Pathfinder Bancorp, Inc. (PBHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Pathfinder Bancorp, Inc. (PBHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Pathfinder Bancorp, Inc. (PBHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.