Pathfinder Bancorp, Inc. (“Company”) (NASDAQ: PBHC), the holding
company for Pathfinder Bank (“Bank”), announced third quarter 2021
net income of $3.4 million compared to $1.5 million for the same
three month period in 2020. Third quarter net income attributable
to Pathfinder Bancorp, Inc. was $3.4 million, or $0.56 per basic
and diluted share, compared to $1.5 million, or $0.25 per basic and
diluted share, for the third quarter of 2020. Third quarter 2021
total revenue (net interest income and total noninterest income) of
$11.3 million increased $1.5 million, or 15.7%, compared to $9.8
million for the third quarter of 2020. Net income attributable to
Pathfinder Bancorp, Inc. for the first nine months of 2021 was $8.5
million, compared to $5.0 million for the same nine month period of
2020. Basic and diluted earnings per share for the first nine
months of 2021 was $1.43, compared to $0.85 per basic and diluted
share in the comparable period in 2020.
2021 Third Quarter and Nine Month
Performance Highlights
- Total interest-earning assets at September 30,
2021 were $1.18 billion, an increase of $46.0 million, or 4.1%,
compared to $1.13 billion at September 30, 2020, and an increase of
$18.0 million, or 1.6%, compared to $1.16 billion at December 31,
2020.
- Total loans at September 30, 2021 were $788.1
million, a decrease of $32.2 million, or 3.9%, compared to $820.3
million at September 30, 2020, and a decrease of $37.3 million, or
4.5%, compared to $825.5 million at December 31, 2020.
- Total deposits at September 30, 2021 were
$1.05 billion, an increase of $48.0 million, or 4.8%, compared to
$998.2 million at September 30, 2020, and an increase of $50.3
million, or 5.1%, compared to $995.9 million at December 31,
2020.
- Total net interest income, before the
provision for loan losses, for the third quarter of 2021 increased
by $1.5 million, or 17.8%, to $9.8 million from $8.3 million for
the prior year period, and total nine month net interest income was
$28.6 million, up $4.8 million, or 20.4%, compared to $23.7 million
for the prior year period.
- Funding costs declined to 0.78%, a reduction
of 18 basis points from 0.96% in the third quarter of 2020.
- Tangible common equity to tangible assets
increased to 8.08%.
- Tangible book value per common share increased
to $17.07.
“We carried the increasing momentum of our first
six months of 2021 through the third quarter with strong revenue
growth, improved asset quality metrics, an expanded net interest
margin, and a more beneficial funding mix,” said Thomas W.
Schneider, President and Chief Executive Officer. “The combination
of these performance factors drove a significant increase in
year-over-year profitability, which enabled the Company to post its
highest quarterly earnings number to date. Our strong performance
trends during the first nine months, are evidenced by the
significant year-over-year improvement in our key earnings ratios,
as our year-to-date return on average assets improved 32 basis
points to 0.90%, and our year-to-date return on average equity
increased to 11.05%, an improvement of 386 basis points over the
same nine month period in 2020.”
“We are also confident that we are well
positioned to extend this performance through the fourth quarter
and early portion of 2022, supported by the improving economic
environment that is helping our customers to recover from the
challenges they experienced during the unprecedented global
slowdown experienced in 2020 and early on in 2021.”
“However, we are cognizant of potential forward
inflationary and interest rate challenges. As we surpassed the $100
million milestone in total shareholder’s’ equity, we have
intentionally slowed asset growth and are reducing asset duration
to better fortress our balance sheet for the potential headwinds
inherent in recent fiscal and monetary policy.”
“The additional benefit of these tactics is to
optimize our target capital ratios; specifically regulatory Tier 1
capital and market critical tangible common equity to tangible
assets.”
“Our asset quality metrics for the third quarter
of 2021 show significant improvement as we work through a few large
loan relationships impacted by the pandemic. Nonperforming loans to
total loans were 1.11% on September 30, 2021, a level that was less
than half of the 2.58% nonperforming loans ratio on December 31,
2020. We are maintaining a conservative approach to managing asset
quality reflecting the higher level of economic uncertainty that we
believe still exists. The Bank’s allowance for loan losses to total
loans at quarter end of 1.78% leaves us solidly positioned to
handle unexpected credit issues that might still arise related to
the pandemic.”
“During the third quarter, we continued to take
steps to reduce our dependence on time deposits as a source of
funding. Our average balance for time deposits has declined by
$57.6 million to $358.6 million, and the average cost dropped by 30
basis points to 0.88% compared to the third quarter of 2020. Even
with this focus on moving to more cost-effective funding in 2021,
period end deposits were up more than $50 million from the end of
2020, and our liquidity position is substantially enhanced.
Combined with our strong capital position at quarter end, we are
well positioned to continue to respond to organic growth
opportunities within our service area.”
Income Statement for the Quarter Ended
September 30, 2021
Net Interest Income
Unaudited |
|
For the three months ended |
|
|
For the nine months ended |
|
(In
thousands, except per share data) |
|
September 30, 2021 |
|
|
September 30, 2020 |
|
|
Change |
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
|
Change |
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
9,465 |
|
|
$ |
8,810 |
|
|
$ |
655 |
|
|
7.4 |
% |
|
$ |
28,096 |
|
|
$ |
26,884 |
|
|
$ |
1,212 |
|
|
4.5 |
% |
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,049 |
|
|
|
1,520 |
|
|
|
529 |
|
|
34.8 |
% |
|
|
6,177 |
|
|
|
4,761 |
|
|
|
1,416 |
|
|
29.7 |
% |
Tax-exempt |
|
|
28 |
|
|
|
50 |
|
|
|
(22 |
) |
|
-44.0 |
% |
|
|
99 |
|
|
|
109 |
|
|
|
(10 |
) |
|
-9.2 |
% |
Dividends |
|
|
87 |
|
|
|
103 |
|
|
|
(16 |
) |
|
-15.5 |
% |
|
|
261 |
|
|
|
237 |
|
|
|
24 |
|
|
10.1 |
% |
Federal
funds sold and interest earning deposits |
|
|
3 |
|
|
|
4 |
|
|
|
(1 |
) |
|
-25.0 |
% |
|
|
7 |
|
|
|
53 |
|
|
|
(46 |
) |
|
-86.8 |
% |
Total interest and dividend income |
|
|
11,632 |
|
|
|
10,487 |
|
|
|
1,145 |
|
|
10.9 |
% |
|
|
34,640 |
|
|
|
32,044 |
|
|
|
2,596 |
|
|
8.1 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
1,154 |
|
|
|
1,616 |
|
|
|
(462 |
) |
|
-28.6 |
% |
|
|
3,825 |
|
|
|
6,376 |
|
|
|
(2,551 |
) |
|
-40.0 |
% |
Interest on short-term
borrowings |
|
|
2 |
|
|
|
38 |
|
|
|
(36 |
) |
|
-94.7 |
% |
|
|
8 |
|
|
|
134 |
|
|
|
(126 |
) |
|
-94.0 |
% |
Interest on long-term
borrowings |
|
|
274 |
|
|
|
331 |
|
|
|
(57 |
) |
|
-17.2 |
% |
|
|
865 |
|
|
|
1,215 |
|
|
|
(350 |
) |
|
-28.8 |
% |
Interest on subordinated loans |
|
|
411 |
|
|
|
191 |
|
|
|
220 |
|
|
115.2 |
% |
|
|
1,376 |
|
|
|
589 |
|
|
|
787 |
|
|
133.6 |
% |
Total interest expense |
|
|
1,841 |
|
|
|
2,176 |
|
|
|
(335 |
) |
|
-15.4 |
% |
|
|
6,074 |
|
|
|
8,314 |
|
|
|
(2,240 |
) |
|
-26.9 |
% |
Net interest income |
|
|
9,791 |
|
|
|
8,311 |
|
|
|
1,480 |
|
|
17.8 |
% |
|
|
28,566 |
|
|
|
23,730 |
|
|
|
4,836 |
|
|
20.4 |
% |
Provision for loan losses |
|
|
104 |
|
|
|
1,682 |
|
|
|
(1,578 |
) |
|
-93.8 |
% |
|
|
2,061 |
|
|
|
3,895 |
|
|
|
(1,834 |
) |
|
-47.1 |
% |
Net interest income after provision for loan losses |
|
$ |
9,687 |
|
|
$ |
6,629 |
|
|
$ |
3,058 |
|
|
46.1 |
% |
|
$ |
26,505 |
|
|
$ |
19,835 |
|
|
$ |
6,670 |
|
|
33.6 |
% |
As noted in the table above, third quarter 2021
net interest income was $9.8 million, an increase of $1.5 million,
or 17.8%, compared to $8.3 million for the same quarter in 2020,
primarily a result of a $1.1 million, or 10.9%, increase in total
interest and dividend income. Interest and dividend income in the
third quarter was $11.6 million, compared to $10.5 million in the
third quarter of 2020. The increase in interest and dividend income
was a result of a $7.3 million increase in average loans combined
with a 28 basis point increase in the average yield earned on those
loans, and a $60.7 million increase in the average balance of
taxable investment securities combined with a 16 basis point
increase in the average yield earned on those investments. Total
interest expense for the third quarter of 2021 was $1.8 million, a
decrease of $335,000, compared to $2.2 million for the prior year
quarter. The decrease in the third quarter interest expense was
primarily a result of a 30 basis point decrease on the average
interest rate paid on time deposits. The net interest margin for
the third quarter of 2021 was 3.31%, a 30 basis point increase
compared to 3.01% for the third quarter of 2020. This improvement
reflects both a 13 basis point increase in the average yield earned
on interest-earning assets, and an 18 basis point decline in the
average cost paid on interest-bearing liabilities.
Net interest income for the first nine months of
2021 increased $4.8 million, or 20.4%, to $28.6 million compared to
$23.7 million for the first nine months of 2020. Interest and
dividend income for the first nine months of 2021 was $34.6
million, an increase of $2.6 million, or 8.1%, compared to $32.0
million for the same period in 2020. The increase was primarily a
result of average loan growth of $51.8 million, or 6.5%, compared
to the prior year period, and a $64.9 million increase in taxable
investment securities. Interest expense of $6.1 million for the
nine-month period decreased by $2.2 million, or 26.9%, from the
prior year period, primarily due to a 68 basis point decrease in
the interest rate paid on time deposits.
Paycheck Protection Program Discussion
From April 2020 to May 2021, the Company
participated in all phases of the Paycheck Protection Program
(“PPP”) as administered by the U.S. Small Business Administration
(the “SBA”). PPP loans are substantially guaranteed as to timely
repayment by the SBA and have unique forgiveness features whereby
loan principal amounts may be discharged, for the benefit of the
borrowers, by direct payments from the SBA to the lending
institution holding the indebtedness. The Company has received both
interest (calculated at a stated rate of 1%) and various levels of
fee income related to the origination of PPP loans. Information
related to the Company’s PPP loans are included in the following
tables:
Unaudited |
|
For the three months ended |
|
|
For the nine months ended, |
|
(In
thousands, except number of loans) |
|
September 30, 2021 |
|
|
September 30, 2020 |
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
Number of PPP loans originated in the period |
|
|
- |
|
|
|
25 |
|
|
|
478 |
|
|
|
699 |
|
Funded balance of PPP loans
originated in the period |
|
$ |
- |
|
|
$ |
313 |
|
|
$ |
36,369 |
|
|
$ |
75,352 |
|
Number of PPP loans forgiven
in the period |
|
287 |
|
|
|
- |
|
|
636 |
|
|
|
- |
|
Average balance of PPP loans
in the period |
|
$ |
39,799 |
|
|
$ |
74,769 |
|
|
$ |
59,431 |
|
|
$ |
41,056 |
|
Balance of PPP loans forgiven
in the period |
|
$ |
26,621 |
|
|
$ |
- |
|
|
$ |
68,726 |
|
|
$ |
- |
|
Deferred PPP fee income
recognized in the period |
|
$ |
595 |
|
|
$ |
350 |
|
|
$ |
1,742 |
|
|
$ |
639 |
|
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
Unearned PPP deferred fee income at end of period |
|
$ |
1,124 |
|
|
$ |
1,823 |
|
|
|
Number |
|
|
Balance |
|
Total PPP loans originated since inception |
|
|
1,177 |
|
|
$ |
111,721 |
|
Total PPP loans forgiven since
inception |
|
|
759 |
|
|
$ |
82,428 |
|
Total PPP loans remaining at
September 30, 2021 |
|
|
418 |
|
|
$ |
29,293 |
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses
The third quarter 2021 provision for loan losses
was $104,000, compared to $1.7 million for the prior year quarter.
The provision for loan losses for the first nine months of 2021 was
$2.1 million, compared to $3.9 million for the same period in 2020.
The provision for loan losses is reflective of improving asset
quality metrics. The credit sensitive portfolios continue to be
carefully monitored, and the Bank will consistently apply its
conservative loan classification and reserve building methodologies
to the analysis of these portfolios.
Noninterest Income
Noninterest income before gains and losses, was
1.4 million for the three months ended September 30, 2021, an
increase of $172,000, or 14.2%, from the three months ended
September 30, 2020. Noninterest income before gains and losses, was
$4.0 million for the nine months ended September 30, 2021, an
increase of $381,000, or 10.6%, from the nine months ended
September 30, 2020. Noninterest income was $1.5 million for both
the three months ended September 30, 2021 and 2020. Noninterest
income was $4.8 million for both the nine months ended September
30, 2021 and 2020.
The following table details the components of
noninterest income for the three and nine months ended September
30, 2021 and 2020:
Unaudited |
|
For the three months ended |
|
|
For the nine months ended |
|
(Dollars in thousands) |
|
September 30, 2021 |
|
September 30, 2020 |
|
Change |
|
|
September 30, 2021 |
|
September 30, 2020 |
|
Change |
|
Service charges on deposit accounts |
|
$ |
393 |
|
$ |
339 |
|
$ |
54 |
|
|
15.9 |
% |
|
$ |
1,082 |
|
$ |
998 |
|
$ |
84 |
|
|
8.4 |
% |
Earnings and gain on bank
owned life insurance |
|
|
164 |
|
|
133 |
|
|
31 |
|
|
23.3 |
% |
|
|
418 |
|
|
355 |
|
|
63 |
|
|
17.7 |
% |
Loan servicing fees |
|
|
54 |
|
|
90 |
|
|
(36 |
) |
|
-40.0 |
% |
|
|
155 |
|
|
218 |
|
|
(63 |
) |
|
-28.9 |
% |
Debit card interchange
fees |
|
|
236 |
|
|
209 |
|
|
27 |
|
|
12.9 |
% |
|
|
698 |
|
|
577 |
|
|
121 |
|
|
21.0 |
% |
Insurance agency revenue |
|
|
303 |
|
|
217 |
|
|
86 |
|
|
39.6 |
% |
|
|
817 |
|
|
739 |
|
|
78 |
|
|
10.6 |
% |
Other
charges, commissions and fees |
|
|
235 |
|
|
224 |
|
|
11 |
|
|
4.9 |
% |
|
|
800 |
|
|
702 |
|
|
98 |
|
|
14.0 |
% |
Noninterest income before gains (losses) |
|
|
1,385 |
|
|
1,212 |
|
|
173 |
|
|
14.3 |
% |
|
|
3,970 |
|
|
3,589 |
|
|
381 |
|
|
10.6 |
% |
Net gains on sales and
redemptions of investment securities |
|
|
5 |
|
|
27 |
|
|
(22 |
) |
|
-81.5 |
% |
|
|
56 |
|
|
1,076 |
|
|
(1,020 |
) |
|
-94.8 |
% |
Gains/(losses) on marketable
equity securities |
|
|
89 |
|
|
118 |
|
|
(29 |
) |
|
-24.6 |
% |
|
|
372 |
|
|
(798 |
) |
|
1,170 |
|
|
146.6 |
% |
Net gains on sales of loans
and foreclosed real estate |
|
|
67 |
|
|
134 |
|
|
(67 |
) |
|
-50.0 |
% |
|
|
226 |
|
|
903 |
|
|
(677 |
) |
|
-75.0 |
% |
Gains
on sale of premises and equipment |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
201 |
|
|
- |
|
|
201 |
|
|
>100.0 |
% |
Total noninterest income |
|
$ |
1,546 |
|
$ |
1,491 |
|
$ |
55 |
|
|
3.7 |
% |
|
$ |
4,825 |
|
$ |
4,770 |
|
$ |
55 |
|
|
1.2 |
% |
Noninterest Expense
Total noninterest expense for the third quarter
of 2021 was $6.8 million, an increase of $593,000, or 9.5%,
compared to $6.2 million for the same three month period in 2020.
The increase was primarily a result of increases in salaries and
benefits, data processing, insurance agency expense, and
professional and other services. Total noninterest expense for the
nine month period of 2021 was $20.3 million, an increase of $2.1
million, or 11.4%, compared with $18.2 million for the prior year
period, and was primarily driven by increases in salaries and
benefit expense, professional and other services, and data
processing expense.
The following table details the components of
noninterest expense for the three and nine months ended September
30, 2021 and 2020:
Unaudited |
|
For the three months ended |
|
|
|
For the nine months ended |
|
(Dollars in thousands) |
|
September 30, 2021 |
|
|
September 30, 2020 |
|
Change |
|
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
Change |
|
Salaries and employee benefits |
|
$ |
3,624 |
|
|
$ |
3,396 |
|
$ |
228 |
|
|
6.7 |
% |
|
|
$ |
10,466 |
|
|
$ |
9,615 |
|
$ |
851 |
|
|
8.9 |
% |
Building and occupancy |
|
|
724 |
|
|
|
788 |
|
|
(64 |
) |
|
-8.1 |
% |
|
|
|
2,387 |
|
|
|
2,249 |
|
|
138 |
|
|
6.1 |
% |
Data processing |
|
|
686 |
|
|
|
569 |
|
|
117 |
|
|
20.6 |
% |
|
|
|
2,016 |
|
|
|
1,721 |
|
|
295 |
|
|
17.1 |
% |
Professional and other
services |
|
|
385 |
|
|
|
282 |
|
|
103 |
|
|
36.5 |
% |
|
|
|
1,253 |
|
|
|
899 |
|
|
354 |
|
|
39.4 |
% |
Advertising |
|
|
191 |
|
|
|
236 |
|
|
(45 |
) |
|
-19.1 |
% |
|
|
|
696 |
|
|
|
673 |
|
|
23 |
|
|
3.4 |
% |
FDIC assessments |
|
|
222 |
|
|
|
170 |
|
|
52 |
|
|
30.6 |
% |
|
|
|
652 |
|
|
|
509 |
|
|
143 |
|
|
28.1 |
% |
Audits and exams |
|
|
193 |
|
|
|
126 |
|
|
67 |
|
|
53.2 |
% |
|
|
|
572 |
|
|
|
376 |
|
|
196 |
|
|
52.1 |
% |
Insurance agency expense |
|
|
227 |
|
|
|
113 |
|
|
114 |
|
|
100.9 |
% |
|
|
|
627 |
|
|
|
517 |
|
|
110 |
|
|
21.3 |
% |
Community service
activities |
|
|
59 |
|
|
|
44 |
|
|
15 |
|
|
34.1 |
% |
|
|
|
181 |
|
|
|
163 |
|
|
18 |
|
|
11.0 |
% |
Foreclosed real estate
expenses |
|
|
8 |
|
|
|
7 |
|
|
1 |
|
|
14.3 |
% |
|
|
|
30 |
|
|
|
42 |
|
|
(12 |
) |
|
-28.6 |
% |
Other
expenses |
|
|
504 |
|
|
|
499 |
|
|
5 |
|
|
1.0 |
% |
|
|
|
1,424 |
|
|
|
1,469 |
|
|
(45 |
) |
|
-3.1 |
% |
Total noninterest expenses |
|
$ |
6,823 |
|
|
$ |
6,230 |
|
$ |
593 |
|
|
9.5 |
% |
|
|
$ |
20,304 |
|
|
$ |
18,233 |
|
$ |
2,071 |
|
|
11.4 |
% |
During the most restrictive periods following
the inception of the COVID-19 pandemic, which began in March 2020,
the Company experienced material declines in substantially all
forms of noninterest expenses. These reductions in noninterest
expenses were the result of the curtailment or elimination of a
significant portion of non-critically-essential business and
business development activities during that time. These activities
were reduced or eliminated for the duration of the substantial
restrictions imposed by governmental officials and as a consequence
of the internal safety and social distancing protocols initiated by
the Company and/or its customers. Accordingly, as the Company
progressively returned to less restricted operations, noninterest
expenses progressively returned to the levels considered by its
management to be prudent for the effective long-term management of
the Company. Management has elected to provide a supplemental
comparison between 2021 noninterest expenses and the same three and
nine month periods in 2019, which were the most recent three and
nine month periods not affected by the pandemic. The following
table details the components of noninterest expense for the three
and nine months ended September 30, 2021 and 2019:
Unaudited |
|
For the three months ended |
|
|
For the nine months ended, |
|
(Dollars in thousands) |
|
September 30, 2021 |
|
September 30, 2019 |
|
Change |
|
|
September 30, 2021 |
|
September 30, 2019 |
|
Change |
|
Salaries and employee benefits |
|
$ |
3,624 |
|
$ |
3,275 |
|
$ |
349 |
|
|
10.7 |
% |
|
$ |
10,466 |
|
$ |
10,379 |
|
$ |
87 |
|
|
0.8 |
% |
Building and occupancy |
|
|
724 |
|
|
699 |
|
|
25 |
|
|
3.6 |
% |
|
|
2,387 |
|
|
1,986 |
|
|
401 |
|
|
20.2 |
% |
Data processing |
|
|
686 |
|
|
587 |
|
|
99 |
|
|
16.9 |
% |
|
|
2,016 |
|
|
1,749 |
|
|
267 |
|
|
15.3 |
% |
Professional and other
services |
|
|
385 |
|
|
352 |
|
|
33 |
|
|
9.4 |
% |
|
|
1,253 |
|
|
1,068 |
|
|
185 |
|
|
17.3 |
% |
Advertising |
|
|
191 |
|
|
238 |
|
|
(47 |
) |
|
-19.7 |
% |
|
|
696 |
|
|
719 |
|
|
(23 |
) |
|
-3.2 |
% |
FDIC assessments |
|
|
222 |
|
|
130 |
|
|
92 |
|
|
70.8 |
% |
|
|
652 |
|
|
371 |
|
|
281 |
|
|
75.7 |
% |
Audits and exams |
|
|
193 |
|
|
104 |
|
|
89 |
|
|
85.6 |
% |
|
|
572 |
|
|
304 |
|
|
268 |
|
|
88.2 |
% |
Insurance agency expense |
|
|
227 |
|
|
190 |
|
|
37 |
|
|
19.5 |
% |
|
|
627 |
|
|
618 |
|
|
9 |
|
|
1.5 |
% |
Community service
activities |
|
|
59 |
|
|
110 |
|
|
(51 |
) |
|
-46.4 |
% |
|
|
181 |
|
|
392 |
|
|
(211 |
) |
|
-53.8 |
% |
Foreclosed real estate
expenses |
|
|
8 |
|
|
28 |
|
|
(20 |
) |
|
-71.4 |
% |
|
|
30 |
|
|
324 |
|
|
(294 |
) |
|
-90.7 |
% |
Other
expenses |
|
|
504 |
|
|
569 |
|
|
(65 |
) |
|
-11.4 |
% |
|
|
1,424 |
|
|
1,622 |
|
|
(198 |
) |
|
-12.2 |
% |
Total noninterest expenses |
|
$ |
6,823 |
|
$ |
6,282 |
|
$ |
541 |
|
|
8.6 |
% |
|
$ |
20,304 |
|
$ |
19,532 |
|
$ |
772 |
|
|
4.0 |
% |
Balance Sheet on September 30,
2021
The Company’s total assets at September 30, 2021
were $1.26 billion, an increase of $34.8 million, or 2.8%, from
$1.23 billion on December 31, 2020. This increase was primarily
driven by higher investment securities balances and cash and cash
equivalents. Investment securities totaled $337.9 million, an
increase of $36.6 million compared to $301.3 million at December
31, 2020. Cash and cash equivalents totaled $75.2 million, an
increase of $31.8 million compared to $43.5 million at December 31,
2020. These increases were partially offset by a decrease in loans.
Total loans of $788.1 million declined by $37.3 million, or 4.5%,
compared with $825.5 million at December 31, 2020.
Total deposits at September 30, 2021 were $1.05
billion, an increase of $50.3 million, or 5.1%, from $995.9 million
at December 31, 2020, and an increase of $48.0 million, or 4.8%,
compared to September 30, 2020. Noninterest-bearing deposits were
the primary driver of growth between the comparable periods and
totaled $206.2 million at September 30, 2021, an increase of $44.2
million, or 27.2%, from the 2020 year end, and an increase of $48.3
million, or 30.6%, compared to September 30, 2020. The increases in
noninterest-bearing deposits were primarily a result of the Bank’s
participation in the PPP, as well as ongoing growth in business
banking relationships. In addition, the Bank has seen a general
increase in the average account balance for consumer deposits
consistent with similar increases generally reported throughout the
industry. These increases are expected to be transitory and relate
primarily to significant levels of economic stimulus combined with
reduced levels of consumer spending related to the pandemic. At
this time, it cannot be determined with certainty how long it will
be before these deposits return to historically normal levels.
Shareholders’ equity was $106.3 million at
September 30, 2021, compared with $97.5 million on December 31,
2020. The increase was primarily a result of a $7.2 million
increase in retained earnings, a $845,000 decrease in the
accumulated other comprehensive loss, a $669,000 increase in
additional paid in capital, and a $135,000 increase due to ESOP
shares earned.
Asset Quality
The Bank’s asset quality metrics, as measured by
net loan charge-offs to average loans, remained relatively stable
for the third quarter of 2021. Net loan charge-offs to average
loans were 0.12% for the third quarter of 2021, compared with 0.08%
for the third quarter of 2020 and 0.03% for the quarter ended June
30, 2021. Nonperforming loans as a percentage of total loans
continued to improve, totaling 1.11% at September 30, 2021, or a
decrease of 147 basis points compared to 2.58% at December 31,
2020.
The decrease in nonperforming loan portfolio at
September 30, 2021, as compared to December 31, 2020 was primarily
the result of one commercial industrial loan being removed from
nonaccrual as of September 30, 2021 due to resumption of timely
principal and interest payments and improvement in the financial
condition of the borrower and the charge off of two fully reserved
loans. Management is monitoring all nonaccrual loans closely and
has incorporated our current estimate of the ultimate
collectability of these loans into the reported allowance for loan
losses at September 30, 2021. No loans were classified as being on
pandemic-related payment deferral at September 30, 2021.
The following table summarizes nonaccrual loans by category and
status at September 30, 2021:
Loan Type |
Collateral Type |
Number of Loans |
|
Loan Balance |
|
Average Loan Balance |
|
Weighted LTV at Origination/ Modification |
|
|
Status |
Secured residential mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
23 |
|
$ |
1,830 |
|
$ |
80 |
|
69 |
% |
|
Under active resolution management by the Bank. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Museum |
|
1 |
|
|
1,384 |
|
|
1,384 |
|
79 |
% |
|
The Bank is working on a
modification with the borrower. The borrower has substantial
deposits with the Bank. |
Recreational |
|
1 |
|
|
1,233 |
|
|
1,233 |
|
49 |
% |
|
The loan is currently
classified as a Troubled Debt Restructuring (TDR). The current due
date for this loan is September 1, 2021. |
All Others |
|
15 |
|
|
2,213 |
|
|
148 |
|
70 |
% |
|
Under active resolution
management by the Bank. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
lines of credit |
|
3 |
|
|
133 |
|
|
44 |
|
N/A |
|
|
Under active resolution
management by the Bank. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
and industrial: |
|
9 |
|
|
703 |
|
|
78 |
|
N/A |
|
|
Under active resolution
management by the Bank. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans |
|
58 |
|
|
1,289 |
|
|
22 |
|
N/A |
|
|
Under
active resolution management by the Bank. |
|
|
110 |
|
$ |
8,785 |
|
|
|
|
|
|
|
|
The allowance for loan losses to non-performing
loans at September 30, 2021 was 160.10%, compared with 59.89% at
December 31, 2020 and 91.44% at September 30, 2020. The change in
the allowance for loans losses to non-performing loans is
reflective of the changes in nonaccrual loans discussed above.
COVID-19 Additional Discussion
Pathfinder Bank has participated in all rounds of the PPP to
date. The Program was initially established by the Coronavirus Aid,
Relief, and Economic Security (“CARES”) Act (2020), and is a
specialized low-interest loan program funded by the U.S. Treasury
Department and administered by the SBA. The PPP was renewed under
the Consolidated Appropriations Act (2021) and the American Rescue
Plan Act (2021). While these legislative actions, and the programs
that resulted therefrom, appear to have significantly reduced the
negative near-term economic impact of the pandemic, the future
trajectory of the economy and the economy’s effect on the financial
condition and results of the Company’s operations cannot be
predicted with certainty.
Cash Dividend
Declared
On September 27, 2021, the Company announced
that its Board of Directors declared a cash dividend of $0.07 per
share on the Company's voting common and non-voting common stock,
and a cash dividend of $0.07 per notional share for the issued
warrant relating to the fiscal quarter ending September 30, 2021.
The dividend will be payable to all shareholders of record on
October 15, 2021 and will be paid on November 5,
2021. Based on the closing price of the Company’s common
stock of $16.20 on November 1, 2021, the implied dividend yield is
1.7%. The quarterly cash dividend of $0.07 equates to a dividend
payout ratio of 14.7%.
About Pathfinder Bancorp,
Inc.
Pathfinder Bank is a New York State chartered
commercial bank headquartered in Oswego, whose deposits are insured
by the Federal Deposit Insurance Corporation. The Bank
is a wholly owned subsidiary of Pathfinder Bancorp, Inc., (NASDAQ
SmallCap Market; symbol: PBHC). The Bank has ten
full-service offices located in its market areas consisting of
Oswego and Onondaga County and one limited purpose office in Oneida
County. Through its subsidiary, Pathfinder Risk
Management Company, Inc., the Bank owns a 51% interest in the
FitzGibbons Agency, LLC. At September 30, 2021, there
were 4,575,615 shares of common stock issued and outstanding, as
well as 1,380,283 shares of non-voting common stock issued and
outstanding. The Company's common stock trades on the
NASDAQ market under the symbol "PBHC." At September 30,
2021, the Company and subsidiaries had total consolidated assets of
$1.26 billion, total deposits of $1.05 billion and shareholders'
equity of $106.6 million.
Forward-Looking Statement
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.” This release may
contain certain forward-looking statements, which are based on
management's current expectations regarding economic, legislative,
and regulatory issues that may impact the Company's earnings in
future periods. Factors that could cause future results to
vary materially from current management expectations include, but
are not limited to, general economic conditions, changes in
interest rates, deposit flows, loan demand, real estate values, and
competition; changes in accounting principles, policies, or
guidelines; changes in legislation or regulation; and economic,
competitive, governmental, regulatory, and technological factors
affecting the Company's operations, pricing, products, and
services.
As the result of the COVID-19 pandemic and the
related adverse local and national economic consequences, we could
be subject to any of the following additional risks, any of which
could have a material, adverse effect on our business, financial
condition, liquidity, and results of operations:
- demand for our products and
services may decline, making it difficult to grow assets and
income;
- if the economy is unable to
substantially reopen, and high levels of unemployment continue for
an extended period of time, loan delinquencies, problem assets, and
foreclosures may increase, resulting in increased charges and
reduced income;
- collateral for
loans, especially real estate, may decline in value, which
could cause loan losses to increase;
- our allowance for loan losses may
have to be increased if borrowers experience financial difficulties
beyond forbearance periods, which will adversely affect our net
income;
- the net worth and liquidity of loan
guarantors may decline, impairing their ability to honor
commitments to us;
- as the result of the decline in the
Federal Reserve Board’s target federal funds rate to near 0%, the
yield on our assets may decline to a greater extent than the
decline in our cost of interest-bearing liabilities, reducing our
net interest margin and spread and reducing net income;
- a material decrease in net income
or a net loss over several quarters could result in a decrease in
the rate of our quarterly cash dividend;
- our cyber security risks are
increased as the result of an increase in the number of employees
working remotely;
- we rely on third party vendors for
certain services and the unavailability of a critical service due
to the COVID-19 outbreak could have an adverse effect on us;
and
- Federal Deposit
Insurance Corporation premiums may increase if the agency
experiences additional resolution costs.
The Company disclaims any obligation to revise
or update any forward-looking statements contained in this press
release to reflect future events or developments.
|
PATHFINDER BANCORP, INC.FINANCIAL
HIGHLIGHTS(Dollars and shares in thousands except
per share amounts) |
|
|
For the three months |
|
|
For nine months |
|
|
ended September 30, |
|
|
ended September 30, |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Condensed Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
$ |
11,632 |
|
|
$ |
10,487 |
|
|
$ |
34,640 |
|
|
$ |
32,044 |
|
Interest expense |
|
1,841 |
|
|
|
2,176 |
|
|
|
6,074 |
|
|
|
8,314 |
|
Net interest income |
|
9,791 |
|
|
|
8,311 |
|
|
|
28,566 |
|
|
|
23,730 |
|
Provision for loan losses |
|
104 |
|
|
|
1,682 |
|
|
|
2,061 |
|
|
|
3,895 |
|
|
|
9,687 |
|
|
|
6,629 |
|
|
|
26,505 |
|
|
|
19,835 |
|
Noninterest income excluding net gains on sales of securities,
fixed assets, loans and foreclosed real estate |
|
1,384 |
|
|
|
1,212 |
|
|
|
3,970 |
|
|
|
3,589 |
|
Net gains on sales of securities, fixed assets, loans and
foreclosed real estate |
|
73 |
|
|
|
161 |
|
|
|
483 |
|
|
|
1,979 |
|
Gains (losses) on marketable equity securities |
|
89 |
|
|
|
118 |
|
|
|
372 |
|
|
|
(798 |
) |
Noninterest expense |
|
6,823 |
|
|
|
6,230 |
|
|
|
20,304 |
|
|
|
18,233 |
|
Income before income taxes |
|
4,410 |
|
|
|
1,890 |
|
|
|
11,026 |
|
|
|
6,372 |
|
Provision for income taxes |
|
1,005 |
|
|
|
372 |
|
|
|
2,405 |
|
|
|
1,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interest
and Pathfinder Bancorp, Inc. |
$ |
3,405 |
|
|
$ |
1,518 |
|
|
$ |
8,621 |
|
|
$ |
5,106 |
|
Net income attributable to noncontrolling interest |
|
40 |
|
|
|
44 |
|
|
|
93 |
|
|
|
101 |
|
Net income attributable to Pathfinder Bancorp
Inc. |
$ |
3,365 |
|
|
$ |
1,474 |
|
|
$ |
8,528 |
|
|
$ |
5,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Periods Ended |
|
|
(Unaudited) |
|
|
September 30, |
|
December 31, |
|
September 30, |
|
2021 |
|
2020 |
|
2020 |
Selected Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
1,262,198 |
|
|
$ |
1,227,443 |
|
|
$ |
1,202,009 |
|
Earning assets |
|
1,177,821 |
|
|
|
1,159,778 |
|
|
|
1,131,827 |
|
Total loans |
|
788,148 |
|
|
|
825,495 |
|
|
|
820,309 |
|
Deposits |
|
1,046,216 |
|
|
|
995,907 |
|
|
|
998,233 |
|
Borrowed funds |
|
67,054 |
|
|
|
82,050 |
|
|
|
80,226 |
|
Allowance for loan losses |
|
14,065 |
|
|
|
12,777 |
|
|
|
12,103 |
|
Subordinated loans |
|
29,522 |
|
|
|
39,400 |
|
|
|
15,154 |
|
Pathfinder Bancorp, Inc.
Shareholders' equity |
|
106,312 |
|
|
|
97,456 |
|
|
|
94,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(annualized) to average loans |
|
0.12 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
Allowance for loan losses to
period end loans |
|
1.78 |
% |
|
|
1.55 |
% |
|
|
1.48 |
% |
Allowance for loan losses to
nonperforming loans |
|
160.10 |
% |
|
|
59.89 |
% |
|
|
91.44 |
% |
Nonperforming loans to period
end loans |
|
1.11 |
% |
|
|
2.58 |
% |
|
|
1.61 |
% |
Nonperforming assets to total
assets |
|
0.70 |
% |
|
|
1.74 |
% |
|
|
1.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PATHFINDER BANCORP, INC.FINANCIAL
HIGHLIGHTS(Dollars and shares in thousands except
per share amounts) |
|
|
|
|
|
|
For the three months |
|
For nine months |
|
ended September 30, |
|
ended September 30, |
|
(Unaudited) |
|
(Unaudited) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Key Earnings Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.07 |
% |
|
|
0.50 |
% |
|
|
0.90 |
% |
|
|
0.58 |
% |
Return on average common equity |
|
12.71 |
% |
|
|
7.47 |
% |
|
|
11.05 |
% |
|
|
8.62 |
% |
Return on average equity |
|
12.71 |
% |
|
|
6.25 |
% |
|
|
11.05 |
% |
|
|
7.19 |
% |
Net interest margin |
|
3.31 |
% |
|
|
3.01 |
% |
|
|
3.19 |
% |
|
|
2.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share, Per Share and
Ratio Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding- Voting |
|
4,488 |
|
|
|
4,650 |
|
|
|
4,465 |
|
|
|
4,632 |
|
Basic earnings per share- Voting |
$ |
0.56 |
|
|
$ |
0.25 |
|
|
$ |
1.43 |
|
|
$ |
0.85 |
|
Basic weighted average shares outstanding- Series A Non-Voting |
|
1,380 |
|
|
|
- |
|
|
|
531 |
|
|
|
- |
|
Basic earnings per share- Series A Non-Voting |
$ |
0.56 |
|
|
|
- |
|
|
$ |
1.43 |
|
|
|
- |
|
Diluted weighted average shares outstanding- Voting |
|
4,488 |
|
|
|
4,650 |
|
|
|
4,465 |
|
|
|
4,632 |
|
Diluted earnings per share- Voting |
$ |
0.56 |
|
|
$ |
0.25 |
|
|
$ |
1.43 |
|
|
$ |
0.85 |
|
Diluted weighted average shares outstanding- Series A
Non-Voting |
|
1,380 |
|
|
|
- |
|
|
|
531 |
|
|
|
- |
|
Diluted earnings per share- Series A Non-Voting |
$ |
0.56 |
|
|
|
- |
|
|
$ |
1.43 |
|
|
|
- |
|
Cash dividends per share |
$ |
0.07 |
|
|
$ |
0.06 |
|
|
$ |
0.21 |
|
|
$ |
0.18 |
|
Book value per common share at September 30, 2021 and 2020 |
|
|
|
|
|
|
|
|
$ |
17.85 |
|
|
$ |
16.64 |
|
Tangible book value per common share at September 30, 2021 and
2020 |
|
|
|
|
|
|
|
|
$ |
17.07 |
|
|
$ |
15.66 |
|
Tangible common equity to tangible assets at September 30, 2021 and
2020 |
|
|
|
|
|
|
|
|
|
8.08 |
% |
|
|
6.22 |
% |
Tangible common equity to tangible assets at September 30, 2021 and
2020, adjusted |
|
|
|
|
|
|
|
|
|
8.26 |
% |
|
|
8.00 |
% |
Non-GAAP Reconciliation |
|
|
|
|
|
|
|
|
Tangible book value per common share |
|
|
|
|
|
|
|
|
Total equity |
|
$ |
106,312 |
|
|
$ |
94,477 |
|
Intangible assets |
|
|
(4,657 |
) |
|
|
(4,673 |
) |
Convertible preferred equity |
|
|
- |
|
|
|
(15,369 |
) |
Common tangible equity |
|
$ |
101,655 |
|
|
$ |
74,435 |
|
Common shares outstanding |
|
|
5,956 |
|
|
|
4,754 |
|
Tangible book value per common share |
|
$ |
17.07 |
|
|
$ |
15.66 |
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets |
|
|
|
|
|
|
|
|
Tangible common equity |
|
$ |
101,655 |
|
|
$ |
74,435 |
|
Tangible assets |
|
|
1,257,541 |
|
|
|
1,197,336 |
|
Tangible common equity to
tangible assets ratio |
|
|
8.08 |
% |
|
|
6.22 |
% |
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets,
adjusted |
|
|
|
|
|
|
|
|
Tangible common equity |
|
$ |
101,655 |
|
|
$ |
89,804 |
|
Tangible assets |
|
|
1,257,541 |
|
|
|
1,197,336 |
|
Less: Paycheck Protection
Program (PPP) loans |
|
|
(27,293 |
) |
|
|
(75,278 |
) |
Total assets excluding PPP loans |
|
$ |
1,230,248 |
|
|
$ |
1,122,058 |
|
Tangible common equity to
tangible assets ratio, excluding PPP loans |
|
|
8.26 |
% |
|
|
8.00 |
% |
* Basic and diluted earnings per share are
calculated based upon the two-class method for the three and six
months ended September 30, 2021 and 2020.
Weighted
average shares outstanding do not include unallocated ESOP
shares.
PATHFINDER BANCORP,
INC.FINANCIAL HIGHLIGHTS(Dollars
and shares in thousands except per share amounts)
The following table sets forth information
concerning average interest-earning assets and interest-bearing
liabilities and the yields and rates thereon. Interest income and
resultant yield information in the table has not been adjusted for
tax equivalency. Averages are computed on the daily average balance
for each month in the period divided by the number of days in the
period. Yields and amounts earned include loan fees. Nonaccrual
loans have been included in interest-earning assets for purposes of
these calculations.
|
|
(Unaudited) |
|
|
For the three months ended September 30, |
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|
Average |
Unaudited |
|
Average |
|
|
|
|
|
|
Yield / |
|
Average |
|
|
|
|
|
|
Yield / |
(Dollars in thousands) |
|
Balance |
|
|
Interest |
|
|
Cost |
|
Balance |
|
|
Interest |
|
|
Cost |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
822,547 |
|
|
$ |
9,465 |
|
|
4.60 |
% |
|
$ |
815,212 |
|
|
$ |
8,810 |
|
|
4.32 |
% |
Taxable investment securities |
|
|
317,612 |
|
|
|
2,136 |
|
|
2.69 |
% |
|
|
256,958 |
|
|
|
1,623 |
|
|
2.53 |
% |
Tax-exempt investment securities |
|
|
14,863 |
|
|
|
28 |
|
|
0.75 |
% |
|
|
12,549 |
|
|
|
50 |
|
|
1.59 |
% |
Fed funds sold and interest-earning deposits |
|
|
27,984 |
|
|
|
3 |
|
|
0.04 |
% |
|
|
18,857 |
|
|
|
4 |
|
|
0.08 |
% |
Total interest-earning assets |
|
|
1,183,006 |
|
|
|
11,632 |
|
|
3.93 |
% |
|
|
1,103,576 |
|
|
|
10,487 |
|
|
3.80 |
% |
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
83,028 |
|
|
|
|
|
|
|
|
|
|
79,901 |
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
(14,794 |
) |
|
|
|
|
|
|
|
|
|
(10,969 |
) |
|
|
|
|
|
|
|
Net unrealized gains/(losses) on available-for-sale securities |
|
|
2,209 |
|
|
|
|
|
|
|
|
|
|
(206 |
) |
|
|
|
|
|
|
|
Total assets |
|
$ |
1,253,449 |
|
|
|
|
|
|
|
|
|
$ |
1,172,302 |
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
|
$ |
94,654 |
|
|
$ |
81 |
|
|
0.34 |
% |
|
$ |
80,636 |
|
|
$ |
45 |
|
|
0.22 |
% |
Money management accounts |
|
|
16,583 |
|
|
|
5 |
|
|
0.12 |
% |
|
|
16,332 |
|
|
|
4 |
|
|
0.10 |
% |
MMDA accounts |
|
|
241,374 |
|
|
|
241 |
|
|
0.40 |
% |
|
|
204,943 |
|
|
|
316 |
|
|
0.62 |
% |
Savings and club accounts |
|
|
126,511 |
|
|
|
42 |
|
|
0.13 |
% |
|
|
99,909 |
|
|
|
22 |
|
|
0.09 |
% |
Time deposits |
|
|
358,634 |
|
|
|
785 |
|
|
0.88 |
% |
|
|
416,190 |
|
|
|
1,229 |
|
|
1.18 |
% |
Subordinated loans |
|
|
29,496 |
|
|
|
411 |
|
|
5.57 |
% |
|
|
15,148 |
|
|
|
191 |
|
|
5.04 |
% |
Borrowings |
|
|
78,892 |
|
|
|
276 |
|
|
1.40 |
% |
|
|
73,655 |
|
|
|
369 |
|
|
2.00 |
% |
Total interest-bearing liabilities |
|
|
946,144 |
|
|
|
1,841 |
|
|
0.78 |
% |
|
|
906,813 |
|
|
|
2,176 |
|
|
0.96 |
% |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
189,951 |
|
|
|
|
|
|
|
|
|
|
158,600 |
|
|
|
|
|
|
|
|
Other liabilities |
|
|
11,441 |
|
|
|
|
|
|
|
|
|
|
12,567 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,147,536 |
|
|
|
|
|
|
|
|
|
|
1,077,980 |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
105,913 |
|
|
|
|
|
|
|
|
|
|
94,322 |
|
|
|
|
|
|
|
|
Total liabilities & shareholders' equity |
|
$ |
1,253,449 |
|
|
|
|
|
|
|
|
|
$ |
1,172,302 |
|
|
|
|
|
|
|
|
Net
interest income |
|
|
|
|
|
$ |
9,791 |
|
|
|
|
|
|
|
|
|
$ |
8,311 |
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
3.15 |
% |
|
|
|
|
|
|
|
|
|
2.84 |
% |
Net
interest margin |
|
|
|
|
|
|
|
|
|
3.31 |
% |
|
|
|
|
|
|
|
|
|
3.01 |
% |
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
125.03 |
% |
|
|
|
|
|
|
|
|
|
121.70 |
% |
PATHFINDER BANCORP, INC.FINANCIAL
HIGHLIGHTS(Dollars and shares in thousands except
per share amounts) |
|
|
|
For the nine months ended September 30, |
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|
Average |
Unaudited |
|
Average |
|
|
|
|
|
|
Yield / |
|
Average |
|
|
|
|
|
|
Yield / |
(Dollars in thousands) |
|
Balance |
|
|
Interest |
|
|
Cost |
|
Balance |
|
|
Interest |
|
|
Cost |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
842,850 |
|
|
$ |
28,096 |
|
|
|
4.44 |
% |
|
$ |
791,088 |
|
|
$ |
26,884 |
|
|
|
4.53 |
% |
Taxable investment securities |
|
|
310,098 |
|
|
|
6,438 |
|
|
|
2.77 |
% |
|
|
245,228 |
|
|
|
4,998 |
|
|
|
2.72 |
% |
Tax-exempt investment securities |
|
|
12,631 |
|
|
|
99 |
|
|
|
1.05 |
% |
|
|
7,839 |
|
|
|
109 |
|
|
|
1.85 |
% |
Fed funds sold and interest-earning deposits |
|
|
28,433 |
|
|
|
7 |
|
|
|
0.03 |
% |
|
|
36,848 |
|
|
|
53 |
|
|
|
0.19 |
% |
Total interest-earning assets |
|
|
1,194,012 |
|
|
|
34,640 |
|
|
|
3.87 |
% |
|
|
1,081,003 |
|
|
|
32,044 |
|
|
|
3.95 |
% |
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
81,779 |
|
|
|
|
|
|
|
|
|
|
|
76,726 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
(13,962 |
) |
|
|
|
|
|
|
|
|
|
|
(9,921 |
) |
|
|
|
|
|
|
|
|
Net unrealized gains/(losses) on available for sale securities |
|
|
1,802 |
|
|
|
|
|
|
|
|
|
|
|
(629 |
) |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,263,631 |
|
|
|
|
|
|
|
|
|
|
$ |
1,147,179 |
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
|
$ |
94,018 |
|
|
$ |
212 |
|
|
|
0.30 |
% |
|
$ |
79,172 |
|
|
$ |
109 |
|
|
|
0.18 |
% |
Money management accounts |
|
|
16,059 |
|
|
|
13 |
|
|
|
0.11 |
% |
|
|
15,450 |
|
|
|
14 |
|
|
|
0.12 |
% |
MMDA accounts |
|
|
238,507 |
|
|
|
737 |
|
|
|
0.41 |
% |
|
|
200,529 |
|
|
|
1,072 |
|
|
|
0.71 |
% |
Savings and club accounts |
|
|
119,859 |
|
|
|
115 |
|
|
|
0.13 |
% |
|
|
93,926 |
|
|
|
70 |
|
|
|
0.10 |
% |
Time deposits |
|
|
376,724 |
|
|
|
2,748 |
|
|
|
0.97 |
% |
|
|
412,625 |
|
|
|
5,111 |
|
|
|
1.65 |
% |
Subordinated loans |
|
|
33,814 |
|
|
|
1,376 |
|
|
|
5.43 |
% |
|
|
15,139 |
|
|
|
589 |
|
|
|
5.19 |
% |
Borrowings |
|
|
84,001 |
|
|
|
873 |
|
|
|
1.39 |
% |
|
|
82,663 |
|
|
|
1,349 |
|
|
|
2.18 |
% |
Total interest-bearing liabilities |
|
|
962,982 |
|
|
|
6,074 |
|
|
|
0.84 |
% |
|
|
899,504 |
|
|
|
8,314 |
|
|
|
1.23 |
% |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
186,125 |
|
|
|
|
|
|
|
|
|
|
|
142,379 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
11,660 |
|
|
|
|
|
|
|
|
|
|
|
12,487 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,160,767 |
|
|
|
|
|
|
|
|
|
|
|
1,054,370 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
102,864 |
|
|
|
|
|
|
|
|
|
|
|
92,809 |
|
|
|
|
|
|
|
|
|
Total liabilities & shareholders' equity |
|
$ |
1,263,631 |
|
|
|
|
|
|
|
|
|
|
$ |
1,147,179 |
|
|
|
|
|
|
|
|
|
Net
interest income |
|
|
|
|
|
$ |
28,566 |
|
|
|
|
|
|
|
|
|
|
$ |
23,730 |
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
|
|
|
|
|
2.72 |
% |
Net
interest margin |
|
|
|
|
|
|
|
|
|
|
3.19 |
% |
|
|
|
|
|
|
|
|
|
|
2.93 |
% |
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
123.99 |
% |
|
|
|
|
|
|
|
|
|
|
120.18 |
% |
PATHFINDER BANCORP,
INC.FINANCIAL HIGHLIGHTS(Dollars
and shares in thousands except per share amounts)
Net interest income can also be analyzed in
terms of the impact of changing interest rates on interest-earning
assets and interest bearing liabilities, and changes in the volume
or amount of these assets and liabilities. The following table
represents the extent to which changes in interest rates and
changes in the volume of interest-earning assets and
interest-bearing liabilities have affected the Company’s interest
income and interest expense during the years indicated. Information
is provided in each category with respect to: (i) changes
attributable to changes in volume (change in volume multiplied by
prior rate); (ii) changes attributable to changes in rate (changes
in rate multiplied by prior volume); and (iii) total increase or
decrease. Changes attributable to both rate and volume have been
allocated ratably. Tax-exempt securities have not been adjusted for
tax equivalency.
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2021 vs. 2020 |
|
|
2021 vs. 2020 |
|
|
|
Increase/(Decrease) Due to |
|
|
Increase/(Decrease) Due to |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
Total |
|
Unaudited |
|
|
|
|
|
|
|
|
|
Increase |
|
|
|
|
|
|
|
|
|
|
Increase |
|
(In
thousands) |
|
Volume |
|
|
Rate |
|
|
(Decrease) |
|
|
Volume |
|
|
Rate |
|
|
(Decrease) |
|
Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
79 |
|
|
$ |
576 |
|
|
$ |
655 |
|
|
$ |
1,990 |
|
|
$ |
(778 |
) |
|
$ |
1,212 |
|
Taxable investment securities |
|
|
405 |
|
|
|
108 |
|
|
|
513 |
|
|
|
1,350 |
|
|
|
90 |
|
|
|
1,440 |
|
Tax-exempt investment securities |
|
|
49 |
|
|
|
(71 |
) |
|
|
(22 |
) |
|
|
68 |
|
|
|
(78 |
) |
|
|
(10 |
) |
Interest-earning deposits |
|
|
7 |
|
|
|
(8 |
) |
|
|
(1 |
) |
|
|
(10 |
) |
|
|
(36 |
) |
|
|
(46 |
) |
Total interest income |
|
|
540 |
|
|
|
605 |
|
|
|
1,145 |
|
|
|
3,398 |
|
|
|
(802 |
) |
|
|
2,596 |
|
Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
|
|
9 |
|
|
|
27 |
|
|
|
36 |
|
|
|
23 |
|
|
|
80 |
|
|
|
103 |
|
Money management accounts |
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
(2 |
) |
|
|
(1 |
) |
MMDA accounts |
|
|
276 |
|
|
|
(351 |
) |
|
|
(75 |
) |
|
|
267 |
|
|
|
(602 |
) |
|
|
(335 |
) |
Savings and club accounts |
|
|
7 |
|
|
|
13 |
|
|
|
20 |
|
|
|
22 |
|
|
|
23 |
|
|
|
45 |
|
Time deposits |
|
|
(155 |
) |
|
|
(289 |
) |
|
|
(444 |
) |
|
|
(413 |
) |
|
|
(1,950 |
) |
|
|
(2,363 |
) |
Subordinated loans |
|
|
198 |
|
|
|
22 |
|
|
|
220 |
|
|
|
759 |
|
|
|
28 |
|
|
|
787 |
|
Borrowings |
|
|
152 |
|
|
|
(245 |
) |
|
|
(93 |
) |
|
|
36 |
|
|
|
(512 |
) |
|
|
(476 |
) |
Total interest expense |
|
|
487 |
|
|
|
(822 |
) |
|
|
(335 |
) |
|
|
695 |
|
|
|
(2,935 |
) |
|
|
(2,240 |
) |
Net change in net interest income |
|
$ |
53 |
|
|
$ |
1,427 |
|
|
$ |
1,480 |
|
|
$ |
2,703 |
|
|
$ |
2,133 |
|
|
$ |
4,836 |
|
The above information is preliminary and based
on the Company's data available at the time of presentation.
Investor/Media Contacts
Thomas W. Schneider, President, CEOWalter F. Rusnak, Senior Vice
President, CFOTelephone: (315) 343-0057
Pathfinder Bancorp (NASDAQ:PBHC)
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