Business
Pathfinder Bancorp, Inc. Revises 2020 Pretax Net Income and Related Financial Information at and for the Year Ended December 31, 2020
Decrease in Pretax Net Income Offset by a Reduction in Income Tax ExpenseNo Change to Originally Reported Net Income or Earnings Per Share Calculations
About this update from Pathfinder Bancorp, Inc.
[{"type":"text","content":" Decrease in Pretax Net Income Offset by a Reduction in Income Tax ExpenseNo Change to Originally Reported Net Income or Earnings Per Share Calculations OSWEGO, N.Y., March 29, 2021 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. (“Company”) (NASDAQ: PBHC), the holding company for Pathfinder Bank (“Bank”) issued an update to its earnings release furnished on a Current Report on Form 8-K on February 1, 2020 (the “Original Press Release”) reporting its financial results at and for the three and twelve months ended December 31, 2020. This updated Press Release (the “Updated Press Release”) is being furnished to revise pretax net income and related financial information for the three and twelve months ended December 31, 2020. Two revisions to pretax net income were made related to loan interest income and operating expenses that reduced pretax net income, before tax effects, for the three and twelve months ended December 31, 2020 by $359,000 and $300,000, respectively. In aggregate, therefore, these two revisions to the previously reported results of operations reduced pretax net income by $659,000 for the three and twelve months ended December 31, 2020 with a corresponding reduction in income tax expense of $138,000 for the same three and twelve month periods. In total, the Company reduced its provision for income taxes by $659,000, of which $521,000 was in recognition of expected net operating loss carryback claims with New York State. Net income after taxes was unchanged for the three and twelve months ended December 31, 2020 with no changes to reported basic and diluted earnings per share. Total assets and liabilities decreased at December 31, 2020 by $140,000, as compared to the originally reported balances, with no changes to the Company’s shareholders’ equity at that date resulting from these revisions. Specifically, loan interest income was reduced by $359,000 for the three and twelve months ended December 31, 2020 when three real estate loans, with outstanding aggregate principal balances of $7.9 million, were moved into nonaccrual status at December 31, 2020. This reclassification into nonaccrual status followed a review of their classification in relation to their payment histories, including payment activity in the first two months of 2021, after the expiration of their initial 180-day Covid-19 pandemic-related loan payment...