Business
Pathfinder Bancorp, Inc. Announces Second Quarter 2023 Net Income of $2.0 Million
Highlights Include Deposit Base Retention, Effective Net Interest Margin and Operating Expense Management OSWEGO, N.Y., Aug. 01, 2023 (GLOBE NEWSWIRE) --
About this update from Pathfinder Bancorp, Inc.
[{"type":"text","content":"Highlights Include Deposit Base Retention, Effective Net Interest Margin and Operating Expense Management\nOSWEGO, N.Y., Aug. 01, 2023 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (\"Company\") (NASDAQ: PBHC), the holding company for Pathfinder Bank (\"Bank\"), announced second quarter 2023 net income available to common shareholders of $2.0 million, or $0.32 per basic and diluted share. This reflects a decrease compared to the $3.3 million, or $0.54 per basic and diluted share, earned in the second quarter of 2022. The Company's total revenue, which is comprised of net interest income, before provision for credit losses, and total noninterest income, for the second quarter of 2023 was $10.8 million, decreasing by $456,000, or 4.0%, compared to the same quarter in 2022. Performance Highlights for the Three Months Ended June 30, 2023 The Company reported net income of $2.0 million for the three-month period ended June 30, 2023, reflecting a decrease of $1.3 million, or 39.4%, compared to the net income for the same period in 2022.Net interest margin remained relatively stable at 2.96% for the second quarter of 2023 reflecting a slight decrease from the 3.14% reported in the second quarter of 2022. Net interest margin was pressured due to liability costs increasing relative to earning asset yields occasioned by rapid increases in interest rates and the inversion (short-term rates higher than long-term rates) of the Treasury and related yield curves.A significant development for 2023 has been the increase in the provision for credit losses (\"PCL\"), which was $1.1 million for the three months ended June 30, 2023 as compared to $59,000 in the prior year quarter. The PCL increase was primarily due to significant deterioration in two large commercial real estate and commercial loan relationships with aggregate outstanding balances of $13.1 million.Noninterest expense remained steady at $7.2 million for the three months ended June 30, 2023, representing a marginal increase of 0.4% from the prior-year second quarter. These increases were primarily due to overall inflationary factors, including rising labor costs, and the establishment of the Bank's eleventh full-service branch, partially mitigated by the Company’s continuing cost containment initiatives. Performance Highlights for the Six Months Ended June 30, 2023 The Bank's balance s...