Pathfinder Bancorp Reports 40% Increase in Net Income to $2.97 Million for Q1 2025

Pathfinder Bancorp, Inc. reported a net income of $2.97 million for the first quarter of 2025, reflecting a 40% increase from $2.12 million in the same period last year. This growth was primarily driven by a $1.2 million reduction in total interest expenses and an increase of $831,000 in interest and dividend income. The company's net interest income before the provision for credit losses rose to $11.41 million, a 21.4% increase compared to $9.4 million in the first quarter of 2024. The improvement in net interest income was attributed to a decrease in the average cost of interest-bearing liabilities and an increase in the average yield on interest-earning assets.

Total assets for Pathfinder Bancorp increased by $20.5 million, or 1.39%, to $1.50 billion as of March 31, 2025, compared to the end of 2024. This growth was mainly due to a significant rise in cash and cash equivalents, which increased by $19.9 million, or 63%, to $51.5 million. Loans decreased slightly to $912.2 million, down from $919 million at the end of 2024, primarily due to declines in residential mortgage and consumer loans, partially offset by an increase in commercial loans. Total deposits also saw a notable increase of $60 million, or 5%, reaching $1.26 billion.

In terms of operational metrics, the company reported a decrease in nonperforming loans, which fell to $13.2 million, down from $22.1 million at the end of 2024. This decline was attributed to certain commercial loans returning to accrual status. The allowance for credit losses remained stable at $17.4 million, representing 1.91% of total loans, slightly up from 1.88% at the end of the previous year. The provision for credit losses for the quarter was $457,000, a decrease from $726,000 in the same quarter of 2024, reflecting improved asset quality metrics.

Pathfinder Bancorp continues to focus on enhancing its market presence, particularly in the Syracuse area, and aims to grow its core deposit base. The company has also been actively managing its interest rate risk through various hedging strategies. Looking ahead, management remains optimistic about maintaining a strong capital position and achieving further growth, while also navigating potential economic challenges. The company’s capital ratios indicate it is well-capitalized, exceeding regulatory requirements, which positions it favorably for future opportunities.