GlobeNewswire·Nov 2, 2026, 8:15 AM ET

Pathfinder Bancorp, Inc. Announces Financial Results for the Third Quarter of 2026

PBHC

Pathfinder Bancorp reported third-quarter 2026 net income of $2.1 million, or $0.32 per diluted share, compared to $2.7 million ($0.42 per share) in Q2 2026 and $626,000 ($0.10 per share) in Q3 2025.
Net interest income increased to $10.7 million in Q3 2026 from $10.5 million in Q2 2026, while the net interest margin stood at 3.07%.
The company recorded a provision expense of $231,000 for credit losses, driven by quantitative and qualitative factor adjustments to the allowance for credit losses.
Net charge-offs totaled $4.3 million in Q3 2026, primarily from commercial individually analyzed loans, and were fully covered by previously established specific reserves.
Total loans decreased to $873.0 million at September 30, 2026, with commercial loans comprising 60.9% of the portfolio.
Total deposits were $1.16 billion, reflecting intentional runoff of higher-cost brokered deposits and municipal seasonality, while core deposits represented 82.6% of the total.
The average cost of total deposits improved to 2.04%, down 3 basis points from the previous quarter.
Noninterest expense increased to $9.4 million in Q3 2026, attributed largely to investments in commercial banking talent, resulting in an efficiency ratio of 78.13%.
The allowance for credit losses was $22.7 million, or 2.60% of total loans, with specific reserves accounting for 57.4% of the total allowance.
Nonperforming loans decreased to $30.3 million, or 3.47% of total loans, from $35.7 million in the prior quarter.
Borrowings grew to $155.5 million to fund purchases of available-for-sale securities at rates below wholesale funding alternatives.
Shareholders' equity decreased to $118.8 million, impacted by an $8.7 million increase in accumulated other comprehensive loss due to declining fair values of mortgage-backed securities.
The Board declared a quarterly cash dividend of $0.10 per share, payable on November 6, 2026, to shareholders of record by October 16, 2026.
Management highlighted the resolution of identified commercial credits, a new pipeline of commercial real estate loan production, and regional economic growth driven by a major semiconductor facility and a $500 million community investment fund.