10-Q · May 15, 2026
Pathfinder Bancorp, Inc. reported Q1 2026 earnings of $2.4 million, or $0.38 per diluted share, a decline from $3.0 million or $0.48 in Q1 2025. Revenue decreased primarily due to reduced interest income and increased…
Earnings analysis · 10-Q
PBHC earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Pathfinder reported a strong year-over-year earnings rebound, with $2.7 million of net income and $0.42 diluted EPS, primarily because Q2 2025 included a $3.1 million pre-tax LOCOM adjustment. However, underlying…
Read full summary
Pathfinder reported a strong year-over-year earnings rebound, with $2.7 million of net income and $0.42 diluted EPS, primarily because Q2 2025 included a $3.1 million pre-tax LOCOM adjustment. However, underlying operating trends were softer: non-GAAP revenue declined to $11.665 million, net interest income before PCL fell 2.6%, and six-month NIM compressed to 3.09%. Credit metrics weakened and borrowings more than doubled to $133.4 million as the Bank funded a substantial increase in investment securities, although capital ratios remained well above regulatory minimums.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.42
What stood out
-
Earnings Rebounded Sharply
Net income was $2.7 million, or $0.42 diluted EPS, versus $31,000 and less than $0.01 diluted EPS in the year-ago quarter. The improvement primarily reflected the absence of the $3.1 million pre-tax LOCOM adjustment recorded in Q2 2025.
-
Core Revenue Remained Under Pressure
Reported non-GAAP revenue was $11.665 million versus $12.277 million in Q2 2025, while net interest income before PCL declined $278,000, or 2.6%, to $10.5 million. NIM decreased 3 basis points to 3.08% from 3.11%.
-
Credit Provisioning Improved
PCL was a $155,000 benefit versus $1.2 million of expense in Q2 2025, reflecting a prior risk-based reserve build and continued improvement in asset-quality metrics.
-
Investment Securities Expanded
Total assets increased $65.9 million, or 4.6%, to $1.49 billion, driven largely by a $74.9 million, or 18.0%, increase in investment securities to $490.7 million.
-
Capital Ratios Remained Strong
The Bank remained well capitalized: total risk-based capital was 14.62%, CET1 was 13.36%, and the Tier 1 leverage ratio was 9.64% at June 30, 2026.
-
Liquidity Funded Securities Purchases
Operating cash inflow was $2.1 million in the first six months, while investing cash outflow was $72.4 million and financing cash inflow was $65.1 million. Investing outflows included $77.6 million of net investment-securities activity and $413,000 of premises and equipment spending.
What to watch
-
Asset Quality Deteriorated
Nonperforming loans increased to $35.710 million, or 4.02% of total loans, from $27.561 million and 3.07% at December 31, 2025. Nonperforming assets rose to $35.847 million, or 2.40% of assets, from $27.698 million and 1.94%.
-
Commercial Credit Concentration
Commercial loans were $544.6 million, representing 61.3% of the loan portfolio, and the ACL included a $21.5 million allocation to commercial loans. Management estimated that a 25% adverse change in commercial-loan qualitative factors could increase ACL by approximately $225,000.
-
Wholesale Funding Reliance
Total borrowings increased $75.3 million, or 129.7%, to $133.4 million from $58.1 million at December 31, 2025, primarily to fund AFS securities purchases. Core deposits declined $9.6 million, or 0.8%, to $1.17 billion, increasing reliance on wholesale funding.
-
Net Interest Margin Compression
Six-month net interest income before PCL fell $1.3 million, or 6.1%, to $20.9 million, while NIM declined 12 basis points to 3.09%. Average interest-earning assets decreased $33.9 million and average yields fell 32 basis points year over year.
-
Operating Costs Increased
Noninterest expense increased $601,000, or 7.5%, to $8.7 million in Q2 2026, and the efficiency ratio rose to 74.26% from 65.66%. Management cited higher staffing, compensation, occupancy, technology, and FDIC assessment costs.
Management's outlook
No numeric revenue or EPS guidance was provided. Management cautioned that results for the six months ended June 30, 2026 are not necessarily indicative of results for the year ending December 31, 2026 or any other period.
Earlier filings 4
10-K · March 30, 2026
Pathfinder Bancorp positions itself as a community bank focused on expanding commercial real estate and commercial lending within its Central New York market while maintaining deposit-led funding. The 2025 10-K shows a…
10-Q · November 14, 2025
Pathfinder Bancorp returned to quarterly profitability in 3Q25, reporting net income of $626,000 and diluted EPS of $0.10 versus a loss of $(4,644,000) and diluted EPS of $(0.75) in 3Q24. Total revenue (net interest…
10-Q · May 15, 2025
Pathfinder Bancorp reported Q1 2025 diluted EPS of $0.41 and consolidated revenue (net interest income + noninterest income) of $12,608,000, both up versus Q1 2024. Net interest income rose to $11,411,000 (from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.