PBHC Pathfinder Bancorp Inc

Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the first quarter ended March 31, 2025.

The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $3.0 million or $0.41 per diluted share in the first quarter of 2025, compared to $2.1 million or $0.34 per share in the first quarter of 2024. In the fourth quarter of 2024, the Company reported net income attributable to common shareholders of $3.9 million or $0.63 per share, and included a benefit of approximately $1.4 million from a gain on the sale of its insurance agency, net of taxes and transaction-related expenses.

First Quarter 2025 Highlights and Key Developments

• Total deposits were $1.26 billion at period end, and grew by 5.0% in the first quarter and 10.3% from March 31, 2024. Core deposits also grew to 78.31% of total deposits at period end from 76.86% on December 31, 2024 and 69.17% on March 31, 2024. In addition to funding lending activity in the quarter, the Company's low-cost deposits enabled reductions in higher-cost borrowings to $44.6 million at period end, down 49.3% in the first quarter and 67.5% from March 31, 2024.
• Total loans were $912.2 million at period end, compared to $919.0 million on December 31, 2024 and $891.5 million on March 31, 2024. Commercial loans were $542.7 million or 59.5% of total loans at period end, compared to $539.7 million on December 31, 2024 and $525.6 million on March 31, 2024.
• Nonperforming loans declined to $13.2 million at period end, and improved by 40.1% during the first quarter and 32.7% from March 31, 2024. Nonperforming loans also declined to 1.45% of total loans at period end, and improved from 2.40% on December 31, 2024 and 2.20% on March 31, 2024.
• Net interest income was $11.4 million, and increased $1.0 million from the linked quarter and $2.0 million from the first quarter of 2024, while net interest margin (“NIM”) expanded to 3.31% from 3.02% in the fourth quarter of 2024 and 2.75% in the year-ago period. Approximately $347,000 of net interest income and 10 basis points of NIM in the first quarter of 2025 reflected 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees.
• Pre-tax, pre-provision (“PTPP”) net income grew to $4.2 million, and increased 26.0% from the linked quarter and 16.9% from the year-ago period. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses.
• The efficiency ratio improved to 66.84%, down from 72.01% in the linked quarter and 68.29% in the year-ago period. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

“Pathfinder’s solid first quarter results reflect the strength of our balance sheet and our growing core deposit franchise. Our continued focus on disciplined loan and deposit pricing has helped expand net interest margin in a challenging economic environment while our efforts toward optimizing non-interest expenses have improved our efficiency measures,” said President and Chief Executive Officer James A. Dowd. “We remain deeply committed to strengthening our proactive credit risk management practices and view our current efforts as the beginning of a sustained, long-term strategy to enhance the quality of our loan portfolio.”

Dowd added, “Our strong results this year and the close relationships we’ve built with businesses and neighbors throughout Central New York give us good reason to feel optimistic. Major investments in our region’s growing tech sector are creating new opportunities, and we’re proud to be part of that momentum. At the same time, we’re staying close to our customers and keeping a careful eye on how recent economic changes and national policy decisions are affecting families and local businesses across our communities.”

Net Interest Income and Net Interest Margin First quarter 2025 net interest income was $11.4 million, an increase of $1.0 million, or 10.0%, from the fourth quarter of 2024. A decrease in interest and dividend income of $85,000 from the linked quarter was primarily attributed to average yield decreases of 43 basis points on tax-exempt investment securities and 25 basis points on taxable investment securities, partially offset by a 10 basis points increase in the average yield on loans that included 15 basis points from 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees. The corresponding decreases in income from tax-exempt and taxable investment securities from the linked quarter were $43,000 and $198,000, respectively. The increase in interest from loans of $149,000 from the prior quarter reflected a benefit of approximately $347,000, including $247,000 of 2024 interest recovered from loans removed from nonaccrual status and $100,000 of first quarter 2025 prepayment fees.

A decrease in interest expense of $1.1 million from the linked quarter was primarily attributed to average cost decreases of 36 basis points for interest-bearing deposits and 143 basis points for borrowings. The corresponding decreases in deposits and borrowings expense from the linked quarter were $878,000 and $226,000, respectively. These reductions reflect continued changes in the Bank’s funding mix, including growing core deposits, as well as deliberate deposit pricing adjustments and significant reductions in borrowings.

Net interest margin was 3.31% in the first quarter of 2025 compared to 3.02% in the linked quarter. The increase reflected significant reductions in deposit and borrowing costs, as well as a benefit of 10 basis points from 2024 recovered interest and first quarter 2025 prepayment fees.

Noninterest Income First quarter 2025 noninterest income totaled $1.2 million and no longer includes contributions from the insurance agency business sold in October 2024. Linked quarter noninterest income totaled $4.9 million, including $3.2 million in non-recurring pre-tax gains and revenues associated with the sale of the Company's insurance agency in 2024. First quarter 2024 noninterest income totaled $1.7 million, including $397,000 in insurance revenue.

Compared to the linked quarter, first quarter 2025 noninterest income reflected a reduction of $264,000 in debit card interchange fees driven by $158,000 of non-recurring catch up expenses and seasonal reductions estimated at $100,000, as well as decreases of $31,000 in service charges on deposit accounts and $7,000 in earnings and gain on bank owned life insurance (“BOLI”). Compared to the linked quarter, first quarter 2025 noninterest income also reflected increases of $52,000 in net realized gains on sales of marketable equity securities and $26,000 in gains on sales of loans and foreclosed real estate, as well as a decrease of $257,000 in net realized gains on sales and redemptions of investment securities.

Compared to the year-ago period, first quarter 2025 noninterest income included increases of $65,000 in service charges on deposit accounts, $13,000 in loan servicing fees, and $5,000 in earnings and gain on BOLI, as well as a decline of $118,000 in debit card interchange fees driven by $158,000 of non-recurring catch up expenses related to prior periods. Noninterest income growth from the year-ago quarter also reflected a $140,000 decrease in net realized losses on sales and redemptions of investment securities and increases of $110,000 in net realized gains on sales of marketable equity securities and $47,000 in gains on sales of loans and foreclosed real estate.

Noninterest ExpenseNoninterest expense totaled $8.4 million in the first quarter of 2025 and no longer includes costs for the insurance agency business sold in October 2024. Noninterest expense was $8.5 million in the linked quarter and $7.7 million in the year-ago period, including expenses associated with the insurance agency of $456,000 and $285,000, respectively.

Salaries and benefits were $4.5 million in the first quarter of 2025, increasing $327,000 from the linked quarter and $121,000 from the year-ago period. The increase from the linked quarter reflected a $174,000 increase in stock-based compensation and a $96,000 increase in payroll tax. The increase from the first quarter of 2024 was primarily attributed to a $95,000 increase in stock-based compensation and $123,000 in other salary and benefits expenses associated with personnel in the East Syracuse branch acquired in July 2024. 

Building and occupancy was $1.3 million in the first quarter of 2025, increasing $93,000 and $531,000 from the linked and year-ago quarters, respectively. The increase from the linked quarter reflected an $89,000 seasonal increase in utilities and snow removal expenses. The increase from the first quarter of last year was primarily due to ongoing facilities-related costs associated with operating the East Syracuse branch acquired in July 2024.

Data processing expense was $666,000 in the first quarter of 2025, decreasing $55,000 from the linked quarter and increasing $138,000 from the year-ago period. The decrease from the fourth quarter of 2024 was primarily attributed to a $42,000 ATM processing expense for new customer card issuances. The increase from the first quarter of 2024 was primarily attributed to the ongoing operations of the East Syracuse branch acquired in July 2024.

Annualized noninterest expense represented 2.33% of average assets in the first quarter of 2025, compared to 2.33% and 2.16% in the linked and year-ago periods, including costs associated with transactions of the divested insurance agency business. The efficiency ratio was 66.84% in the first quarter of 2025, compared to 72.01% and 68.29% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

Net IncomeFor the first quarter of 2025, net income attributable to common shareholders was $3.0 million, or $0.48 per basic share and $0.41 per diluted share. The difference between basic and diluted earnings per share reflects the accounting impact of restricted stock units granted to senior executive officers during the period under the 2024 Equity Incentive Plan, which was approved by shareholders at the 2024 annual meeting. Linked quarter net income was $3.9 million, including a net benefit of approximately $1.4 million from the gain on the sale of its insurance agency, or $0.63 per basic and diluted share. First quarter 2024 net income totaled $2.2 million or $0.34 per basic and diluted share.

Statement of Financial ConditionAs of March 31, 2025, the Company’s statement of financial condition reflects total assets of $1.50 billion, compared to $1.47 billion and $1.45 billion recorded on December 31, 2024 and March 31, 2024, respectively.

Loans totaled $912.2 million on March 31, 2025, decreasing 0.7% during the first quarter and increasing 2.3% from one year prior. Consumer and residential loans totaled $371.0 million on March 31, 2025, decreasing 2.6% during the first quarter and increasing 1.2% from one year prior. Commercial loans totaled $542.7 million on March 31, 2025, increasing 0.6% during the first quarter and 3.3% from one year prior.

With respect to liabilities, deposits totaled $1.26 billion on March 31, 2025, increasing 5.0% during the first quarter and 10.3% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $44.6 million on March 31, 2025 as compared to $88.1 million on December 31 and $137.4 million on March 31, 2024.

Shareholders' equity totaled $124.9 million on March 31, 2025, increasing $3.4 million or 2.8% in the first quarter and increasing $3.1 million or 2.5% from one year prior. Compared to the prior quarter, the first quarter 2025 increase primarily reflects a $2.3 million increase in retained earnings, a $712,000 decrease in accumulated other comprehensive loss (“AOCL”), and a $353,000 increase in additional paid in capital. The noncontrolling interest, previously included in equity on the Statements of Financial Condition, was eliminated in October 2024 upon the sale of the Company's 51% ownership interest in the insurance agency.

Asset QualityThe Company's asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

Nonperforming loans were $13.2 million or 1.45% of total loans on March 31, 2025, improving from $22.1 million or 2.40% of total loans on December 31, 2024 and $19.7 million or 2.20% of total loans on March 31, 2024.

Net charge offs (“NCOs”) after recoveries were $340,000 or an annualized 0.15% of average loans in the first quarter of 2025, with gross charge offs for consumer loans, purchased loan pools, and commercial loans offsetting recoveries in each of these categories. NCOs were $1.0 million or an annualized 0.44% of average loans in the linked quarter and $30,000 or 0.01% in the prior year period.

Provision for credit loss expense was $457,000 in the first quarter of 2025 reflecting lower levels of nonperforming loans and NCOs in the period and qualitative factors in the Company’s reserve model. The provision was $988,000 and $726,000 in the linked and year-ago quarters, respectively.

The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.4 million on March 31, 2025, compared to $17.2 million on December 31, 2024 and $16.7 million on March 31, 2024. As a percentage of total loans, ACL represented 1.91% on March 31, 2025, 1.88% on December 31, 2024, and 1.87% on March 31, 2024.

Liquidity The Company has diligently ensured a strong liquidity profile as of March 31, 2025 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.26 billion on March 31, 2025, $1.20 billion on December 31, 2024, and $1.15 billion on March 31, 2024. Core deposits represented 78.31% of total deposits on March 31, 2025, 76.86% on December 31, 2024, and 69.17% on March 31, 2024. The Bank continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $133.3 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $46.6 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

Cash Dividend DeclaredOn March 31, 2025, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by April 18, 2025 will be eligible for the dividend, which is scheduled for disbursement on May 9, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

Evaluating the Company’s market performance, the closing stock price as of March 31, 2025 stood at $16.44 per share. This positions the annualized dividend yield at 2.43%.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage, and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At March 31, 2025, the Oswego-headquartered Company had assets of $1.50 billion, loans of $912.2 million, and deposits of $1.26 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

Forward-Looking Statements Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov. 

This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

Investor/Media Contacts James A. Dowd, President, CEOJustin K. Bigham, Senior Vice President, CFOTelephone: (315) 343-0057

PATHFINDER BANCORP, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
		2025				2024
SELECTED BALANCE SHEET DATA:		March 31,				December 31,				September 30,				June 30,				March 31,
ASSETS:
Cash and due from banks		$	18,606			$	13,963			$	18,923			$	12,022			$	13,565
Interest-earning deposits			32,862				17,609				16,401				19,797				15,658
Total cash and cash equivalents			51,468				31,572				35,324				31,819				29,223
Available-for-sale securities, at fair value			284,051				269,331				271,977				274,977				279,012
Held-to-maturity securities, at amortized cost			155,704				158,683				161,385				166,271				172,648
Marketable equity securities, at fair value			4,401				4,076				3,872				3,793				3,342
Federal Home Loan Bank stock, at cost			2,906				4,590				5,401				8,702				7,031
Loans			912,150				918,986				921,660				888,263				891,531
Less: Allowance for credit losses			17,407				17,243				17,274				16,892				16,655
Loans receivable, net			894,743				901,743				904,386				871,371				874,876
Premises and equipment, net			19,233				19,009				18,989				18,878				18,332
Assets held-for-sale			-				-				-				3,042				3,042
Operating lease right-of-use assets			1,356				1,391				1,425				1,459				1,493
Finance lease right-of-use assets			16,478				16,676				16,873				4,004				4,038
Accrued interest receivable			6,748				6,881				6,806				7,076				7,170
Foreclosed real estate			-				-				-				60				82
Intangible assets, net			5,832				5,989				6,217				76				80
Goodwill			5,056				5,056				5,752				4,536				4,536
Bank owned life insurance			24,889				24,727				24,560				24,967				24,799
Other assets			22,472				25,150				20,159				25,180				23,968
Total assets		$	1,495,337			$	1,474,874			$	1,483,126			$	1,446,211			$	1,453,672
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Interest-bearing deposits		$	1,061,166			$	990,805			$	986,103			$	932,132			$	969,692
Noninterest-bearing deposits			203,314				213,719				210,110				169,145				176,421
Total deposits			1,264,480				1,204,524				1,196,213				1,101,277				1,146,113
Short-term borrowings			27,000				61,000				60,315				127,577				91,577
Long-term borrowings			17,628				27,068				39,769				45,869				45,869
Subordinated debt			30,156				30,107				30,057				30,008				29,961
Accrued interest payable			844				546				236				2,092				1,963
Operating lease liabilities			1,560				1,591				1,621				1,652				1,682
Finance lease liabilities			16,655				16,745				16,829				4,359				4,370
Other liabilities			12,118				11,810				16,986				9,203				9,505
Total liabilities			1,370,441				1,353,391				1,362,026				1,322,037				1,331,040
Shareholders' equity:
Voting common stock shares issued and outstanding			4,761,182				4,745,366				4,719,788				4,719,788				4,719,788
Voting common stock			48				47				47				47				47
Non-Voting common stock			14				14				14				14				14
Additional paid in capital			53,103				52,750				53,231				53,182				53,151
Retained earnings			80,163				77,816				73,670				78,936				77,558
Accumulated other comprehensive loss			(8,432	)			(9,144	)			(6,716	)			(8,786	)			(8,862	)
Unearned ESOP shares			-				-				-				(45	)			(90	)
Total Pathfinder Bancorp, Inc. shareholders' equity			124,896				121,483				120,246				123,348				121,818
Noncontrolling interest			-				-				854				826				814
Total equity			124,896				121,483				121,100				124,174				122,632
Total liabilities and shareholders' equity		$	1,495,337			$	1,474,874			$	1,483,126			$	1,446,211			$	1,453,672

The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.

			2025			2024
SELECTED INCOME STATEMENT DATA:		Q1				Q4				Q3				Q2				Q1
Interest and dividend income:
Loans, including fees		$	13,672			$	13,523			$	14,425			$	12,489			$	12,268
Debt securities:
Taxable			5,185				5,312				5,664				5,736				5,607
Tax-exempt			402				445				469				498				508
Dividends			93				164				149				178				129
Federal funds sold and interest-earning deposits			89				82				492				121				98
Total interest and dividend income			19,441				19,526				21,199				19,022				18,610
Interest expense:
Interest on deposits			6,945				7,823				7,633				7,626				7,411
Interest on short-term borrowings			545				700				1,136				1,226				1,114
Interest on long-term borrowings			65				136				202				201				194
Interest on subordinated debt			475				490				496				489				491
Total interest expense			8,030				9,149				9,467				9,542				9,210
Net interest income			11,411				10,377				11,732				9,480				9,400
Provision for (benefit from) credit losses:
Loans			504				988				9,104				304				710
Held-to-maturity securities			-				(5	)			(31	)			(74	)			15
Unfunded commitments			(47	)			5				(104	)			60				1
Total provision for credit losses			457				988				8,969				290				726
Net interest income after provision for credit losses			10,954				9,389				2,763				9,190				8,674
Noninterest income:
Service charges on deposit accounts			374				405				392				330				309
Earnings and gain on bank owned life insurance			162				169				361				167				157
Loan servicing fees			101				96				79				112				88
Net realized (losses) gains on sales and redemptions of investment securities			(8	)			249				(188	)			16				(148	)
Gain on asset sale 1 & 2			-				3,169				-				-				-
Net realized gains (losses) on sales of marketable equity securities			218				166				62				(139	)			108
Gains on sales of loans and foreclosed real estate			65				39				90				40				18
Loss on sale of premises and equipment			-				-				(36	)			-				-
Debit card interchange fees			1				265				300				191				119
Insurance agency revenue 1			-				49				367				260				397
Other charges, commissions & fees			284				299				280				234				689
Total noninterest income			1,197				4,906				1,707				1,211				1,737
Noninterest expense:
Salaries and employee benefits			4,450				4,123				4,959				4,399				4,329
Building and occupancy			1,347				1,254				1,134				914				816
Data processing			666				721				672				550				528
Professional and other services			606				608				1,820				696				562
Advertising			141				218				165				116				105
FDIC assessments			229				231				228				228				229
Audits and exams			114				123				123				123				170
Insurance agency expense 1			-				456				308				232				285
Community service activities			11				19				20				39				52
Foreclosed real estate expenses			21				20				27				30				25
Other expenses			691				771				803				581				605
Total noninterest expense			8,433				8,544				10,259				7,908				7,706
Income (loss) before provision for income taxes			3,718				5,751				(5,789	)			2,493				2,705
Provision (benefit) for income taxes			744				492				(1,173	)			481				532
Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.			2,974				5,259				(4,616	)			2,012				2,173
Net income attributable to noncontrolling interest 1			-				1,352				28				12				53
Net income (loss) attributable to Pathfinder Bancorp Inc.		$	2,974			$	3,907			$	(4,644	)		$	2,000			$	2,120
Voting Earnings per common share - basic		$	0.48			$	0.63			$	(0.75	)		$	0.32			$	0.34
Voting Earnings per common share - diluted		$	0.41			$	0.63			$	(0.75	)		$	0.32			$	0.34
Series A Non-Voting Earnings per common share- basic		$	0.48			$	0.63			$	(0.75	)		$	0.32			$	0.34
Series A Non-Voting Earnings per common share- diluted		$	0.41			$	0.63			$	(0.75	)		$	0.32			$	0.34
Dividends per common share (Voting and Series A Non-Voting)		$	0.10			$	0.10			$	0.10			$	0.10			$	0.10

1 Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements. The Company sold its 51% membership interest in the Agency in October 2024.2 The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.

The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.

			2025			2024
FINANCIAL HIGHLIGHTS:		Q1				Q4				Q3				Q2				Q1
Selected Ratios:
Return on average assets			0.81	%			1.07	%			-1.25	%			0.56	%			0.59	%
Return on average common equity			9.64	%			12.85	%			-14.79	%			6.49	%			7.01	%
Return on average equity			9.64	%			12.85	%			-14.79	%			6.49	%			7.01	%
Return on average tangible common equity 1			10.52	%			14.17	%			-15.28	%			6.78	%			7.32	%
Net interest margin			3.31	%			3.02	%			3.34	%			2.78	%			2.75	%
Loans / deposits			72.14	%			76.29	%			77.05	%			80.66	%			77.79	%
Core deposits/deposits 2			78.31	%			76.86	%			77.45	%			67.98	%			69.17	%
Annualized non-interest expense / average assets			2.33	%			2.33	%			2.75	%			2.19	%			2.16	%
Commercial real estate / risk-based capital 3			182.62	%			186.73	%			189.47	%			169.73	%			163.93	%
Efficiency ratio 1			66.84	%			72.01	%			75.28	%			74.08	%			68.29	%
Other Selected Data:
Average yield on loans			5.97	%			5.87	%			6.31	%			5.64	%			5.48	%
Average cost of interest bearing deposits			2.76	%			3.12	%			3.11	%			3.21	%			3.07	%
Average cost of total deposits, including non-interest bearing			2.29	%			2.59	%			2.59	%			2.72	%			2.61	%
Deposits/branch 4		$	105,373			$	100,377			$	99,684			$	100,116			$	104,192
Pre-tax, pre-provision net income 1		$	4,183			$	3,321			$	3,368			$	2,767			$	3,579
Total revenue 1		$	12,616			$	11,865			$	13,627			$	10,675			$	11,285
Share and Per Share Data:
Cash dividends per share		$	0.10			$	0.10			$	0.10			$	0.10			$	0.10
Book value per common share		$	20.33			$	19.83			$	19.71			$	20.22			$	19.97
Tangible book value per common share 1		$	18.56			$	18.03			$	17.75			$	19.46			$	19.21
Basic and diluted weighted average shares outstanding - Voting			4,749				4,733				4,714				4,708				4,701
Basic earnings per share - Voting 5		$	0.48			$	0.63			$	(0.75	)		$	0.32			$	0.34
Diluted earnings per share - Voting 5		$	0.41			$	0.63			$	(0.75	)		$	0.32			$	0.34
Basic and diluted weighted average shares outstanding - Series A Non-Voting			1,380				1,380				1,380				1,380				1,380
Basic earnings per share - Series A Non-Voting 5		$	0.48			$	0.63			$	(0.75	)		$	0.32			$	0.34
Diluted earnings per share - Series A Non-Voting 5		$	0.41			$	0.63			$	(0.75	)		$	0.32			$	0.34
Common shares outstanding at period end			6,144				6,126				6,100				6,100				6,100
Pathfinder Bancorp, Inc. Capital Ratios:
Company tangible common equity to tangible assets 1			7.68	%			7.54	%			7.36	%			8.24	%			8.09	%
Company Total Core Capital (to Risk-Weighted Assets)			15.89	%			15.66	%			15.55	%			16.19	%			16.23	%
Company Tier 1 Capital (to Risk-Weighted Assets)			12.24	%			12.00	%			11.84	%			12.31	%			12.33	%
Company Tier 1 Common Equity (to Risk-Weighted Assets)			11.75	%			11.51	%			11.33	%			11.83	%			11.85	%
Company Tier 1 Capital (to Assets)			8.82	%			8.64	%			8.29	%			9.16	%			9.16	%
Pathfinder Bank Capital Ratios:
Bank Total Core Capital (to Risk-Weighted Assets)			14.86	%			14.65	%			14.52	%			16.04	%			15.65	%
Bank Tier 1 Capital (to Risk-Weighted Assets)			13.61	%			13.40	%			13.26	%			14.79	%			14.39	%
Bank Tier 1 Common Equity (to Risk-Weighted Assets)			13.61	%			13.40	%			13.26	%			14.79	%			14.39	%
Bank Tier 1 Capital (to Assets)			9.80	%			9.64	%			9.13	%			10.30	%			10.13	%

1 Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.2 Non-brokered deposits excluding certificates of deposit of $250,000 or more.3 Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.4 Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior.5 Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.

The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.

			2025			2024
ASSET QUALITY:		Q1				Q4				Q3				Q2				Q1
Total loan charge-offs		$	508			$	1,191			$	8,812			$	112			$	68
Total recoveries			168				171				90				46				38
Net loan charge-offs			340				1,020				8,722				66				30
Allowance for credit losses at period end			17,407				17,243				17,274				16,892				16,655
Nonperforming loans at period end			13,232				22,084				16,170				24,490				19,652
Nonperforming assets at period end		$	13,232			$	22,084			$	16,170			$	24,550			$	19,734
Annualized net loan charge-offs to average loans			0.15	%			0.44	%			3.82	%			0.03	%			0.01	%
Allowance for credit losses to period end loans			1.91	%			1.88	%			1.87	%			1.90	%			1.87	%
Allowance for credit losses to nonperforming loans			131.55	%			78.08	%			106.83	%			68.98	%			84.75	%
Nonperforming loans to period end loans			1.45	%			2.40	%			1.75	%			2.76	%			2.20	%
Nonperforming assets to period end assets			0.88	%			1.50	%			1.09	%			1.70	%			1.36	%

		2025				2024
LOAN COMPOSITION:		March 31,				December 31,				September 30,				June 30,				March 31,
1-4 family first-lien residential mortgages		$	243,854			$	251,373			$	255,235			$	250,106			$	252,026
Residential construction			3,162				4,864				4,077				309				1,689
Commercial real estate			381,479				377,619				378,805				370,361				363,467
Commercial lines of credit			65,074				67,602				64,672				62,711				67,416
Other commercial and industrial			91,644				89,800				88,247				90,813				91,178
Paycheck protection program loans			96				113				125				136				147
Tax exempt commercial loans			4,446				4,544				2,658				3,228				3,374
Home equity and junior liens			52,315				51,948				52,709				35,821				35,723
Other consumer			71,681				72,710				76,703				75,195				77,106
Subtotal loans			913,751				920,573				923,231				888,680				892,126
Deferred loan fees			(1,601	)			(1,587	)			(1,571	)			(417	)			(595	)
Total loans		$	912,150			$	918,986			$	921,660			$	888,263			$	891,531

		2025				2024
DEPOSIT COMPOSITION:		March 31,				December 31,				September 30,				June 30,				March 31,
Savings accounts		$	129,898			$	128,753			$	129,053			$	106,048			$	111,465
Time accounts			349,673				360,716				352,729				368,262				378,103
Time accounts in excess of $250,000			149,922				142,473				140,181				117,021				114,514
Money management accounts			10,774				11,583				11,520				12,154				11,676
MMDA accounts			306,281				239,016				250,007				193,915				215,101
Demand deposit interest-bearing			109,941				101,080				97,344				128,168				134,196
Demand deposit noninterest-bearing			203,314				213,719				210,110				169,145				176,434
Mortgage escrow funds			4,677				7,184				5,269				6,564				4,624
Total deposits		$	1,264,480			$	1,204,524			$	1,196,213			$	1,101,277			$	1,146,113

The above information is unaudited and preliminary, based on the Company's data available at the time of presentation.

			2025			2024
SELECTED AVERAGE BALANCES:		Q1				Q4				Q1
Interest-earning assets:
Loans		$	916,207			$	920,855			$	895,335
Taxable investment securities			416,558				412,048				431,114
Tax-exempt investment securities			34,475				34,918				29,171
Fed funds sold and interest-earning deposits			12,939				5,115				13,873
Total interest-earning assets			1,380,179				1,372,936				1,369,493
Noninterest-earning assets:
Other assets			114,882				112,654				94,677
Allowance for credit losses			(17,413	)			(17,145	)			(16,081	)
Net unrealized losses on available-for-sale securities			(9,947	)			(8,534	)			(11,187	)
Total assets		$	1,467,701			$	1,459,911			$	1,436,902
Interest-bearing liabilities:
NOW accounts		$	111,643			$	102,862			$	99,688
Money management accounts			10,906				11,371				11,653
MMDA accounts			256,186				257,429				213,897
Savings and club accounts			129,769				128,169				112,719
Time deposits			498,963				504,009				524,368
Subordinated loans			30,123				30,076				29,930
Borrowings			70,575				68,391				137,882
Total interest-bearing liabilities			1,108,165				1,102,307				1,130,137
Noninterest-bearing liabilities:
Demand deposits			206,137				206,521				169,748
Other liabilities			29,961				29,494				15,986
Total liabilities			1,344,263				1,338,322				1,315,871
Shareholders' equity			123,438				121,589				121,031
Total liabilities & shareholders' equity		$	1,467,701			$	1,459,911			$	1,436,902

			2025			2024
SELECTED AVERAGE YIELDS:		Q1				Q4				Q1
Interest-earning assets:
Loans			5.97	%			5.87	%			5.48	%
Taxable investment securities			5.07	%			5.32	%			5.32	%
Tax-exempt investment securities			4.66	%			5.10	%			6.97	%
Fed funds sold and interest-earning deposits			2.75	%			6.41	%			2.83	%
Total interest-earning assets			5.63	%			5.69	%			5.44	%
Interest-bearing liabilities:
NOW accounts			1.07	%			1.19	%			1.06	%
Money management accounts			0.11	%			0.11	%			0.10	%
MMDA accounts			3.06	%			3.23	%			3.61	%
Savings and club accounts			0.25	%			0.26	%			0.26	%
Time deposits			3.69	%			4.25	%			3.92	%
Subordinated loans			6.31	%			6.52	%			6.56	%
Borrowings			3.46	%			4.89	%			3.79	%
Total interest-bearing liabilities			2.90	%			3.32	%			3.26	%
Net interest rate spread			2.73	%			2.37	%			2.18	%
Net interest margin			3.31	%			3.02	%			2.75	%
Ratio of average interest-earning assets to average interest-bearing liabilities			124.55	%			124.55	%			121.18	%

The above information is unaudited and preliminary based on the Company's data available at the time of presentation.

			2025			2024
NON-GAAP RECONCILIATIONS:		Q1				Q4				Q3				Q2				Q1
Tangible book value per common share:
Total equity		$	124,896			$	121,483			$	120,246			$	123,348			$	121,818
Intangible assets			(10,888	)			(11,045	)			(11,969	)			(4,612	)			(4,616	)
Tangible common equity (non-GAAP)			114,008				110,438				108,277				118,736				117,202
Common shares outstanding			6,144				6,126				6,100				6,100				6,100
Tangible book value per common share (non-GAAP)		$	18.56			$	18.03			$	17.75			$	19.46			$	19.21
Tangible common equity to tangible assets:
Tangible common equity (non-GAAP)		$	114,008			$	110,438			$	108,277			$	118,736			$	117,202
Tangible assets			1,484,449				1,463,829				1,471,157				1,441,599				1,449,056
Tangible common equity to tangible assets ratio (non-GAAP)			7.68	%			7.54	%			7.36	%			8.24	%			8.09	%
Return on average tangible common equity:
Average shareholders' equity		$	123,438			$	121,589			$	125,626			$	123,211			$	121,031
Average intangible assets			10,991				11,907				4,691				4,614				4,619
Average tangible equity (non-GAAP)			112,447				109,682				120,935				118,597				116,412
Net income (loss)			2,974				3,907				(4,644	)			2,000				2,120
Net income (loss), annualized		$	11,831			$	15,543			$	(18,475	)		$	8,044			$	8,527
Return on average tangible common equity (non-GAAP)1			10.52	%			14.17	%			-15.28	%			6.78	%			7.32	%
Revenue, pre-tax, pre-provision net income, and efficiency ratio:
Net interest income		$	11,411			$	10,377			$	11,732			$	9,480			$	9,400
Total noninterest income			1,197				4,906				1,707				1,211				1,737
Net realized (gains) losses on sales and redemptions of investment securities			(8	)			249				(188	)			16				(148	)
Gain on asset sale			-				3,169				-				-				-
Revenue (non-GAAP)2			12,616				11,865				13,627				10,675				11,285
Total non-interest expense			8,433				8,544				10,259				7,908				7,706
Pre-tax, pre-provision net income (non-GAAP)3		$	4,183			$	3,321			$	3,368			$	2,767			$	3,579
Efficiency ratio (non-GAAP)4			66.84	%			72.01	%			75.28	%			74.08	%			68.29	%

1 Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity2 Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency3 Pre-tax, pre-provision net income equals revenue less total non-interest expense4 Efficiency ratio equals noninterest expense divided by revenue

The above information is unaudited and preliminary based on the Company's data available at the time of presentation.