Pathfinder Bancorp, Inc. (“Company”) (NASDAQ: PBHC), the holding
company for Pathfinder Bank (“Bank”), announced fourth quarter 2022
net income available to common shareholders of $3.5 million, or
$0.58 per basic and diluted share, compared to $3.9 million, or
$0.64 per basic and diluted share, for the fourth quarter of 2021.
For the full year 2022, total net income attributable to Pathfinder
Bancorp, Inc. was $12.9 million, or $2.13 per basic and diluted
share, compared to $12.4 million, or $2.07 per basic and diluted
share, in 2021.
2022 Fourth Quarter and Full Year Performance
Highlights
- Fourth quarter 2022 total revenue (net interest income and
total noninterest income) of $13.0 million increased $1.9 million,
or 17.0%, compared to the fourth quarter of 2021. Full year total
revenue of $47.3 million increased $2.8 million, or 6.3%, compared
to 2021.
- Total interest-earning assets on December 31, 2022 of $1.31
billion increased by $100.9 million, or 8.3%, from December 31,
2021 and included $897.8 million in total loans at December 31,
2022.
- Total deposits on December 31, 2022 were $1.13 billion, an
increase of $70.1 million, or 6.6%, compared to one year prior. A
shift to interest-bearing deposits, and the rapidly rising interest
rate environment, led to the 20 basis point increase in deposit
funding costs to 0.76% for the year.
- Total net interest income for fourth quarter 2022 of $11.2
million increased by $1.5 million, or 14.9%, from the prior year
period, and increased $3.1 million, or 8.1%, to $41.4 million for
full year 2022 compared to 2021.
- Noninterest expense of $7.2 million for the fourth quarter of
2022 remained stable when compared to the year-ago quarter.
Noninterest expense was $28.9 million for the full year of 2022, an
increase of $1.4 million, or 5.0%, compared to 2021.
“Fourth quarter 2022 results were highlighted by
strong revenue growth, focused expense management and continued
strong credit quality metrics, which contributed to another record
full year earnings and profitability in 2022. Heading into 2023,
Pathfinder Bancorp is well positioned to continue our growth
trajectory,” said James A. Dowd, President and Chief Executive
Officer. “Full year net income available to common shareholders was
up 4.2% compared to 2021, as we benefited from the increases in
interest rates, continued loan growth and net interest margin
expansion. We also continued to improve upon our key profitability
metrics, with a strong return on average assets of 0.96% and return
on average equity of 11.77% for the full year of 2022.”
“Our consistent focus throughout 2022 on
enhancing our operating leverage continued to provide strong
revenue growth of 6.3%, while keeping expenses stable, despite a
difficult inflationary environment. In 2023, and in the face of
significant economic uncertainty, our focus will continue to be on
balancing effective expense management while concurrently making
appropriate investments to support the future growth of the
Company.”
“Our balance sheet growth included an increase
of $65.3 million, or 7.8%, growth in total loans and our total
deposits grew by more than $70.1 million, or 6.6%, over the prior
full year. Deposit customer preferences caused a shift in the mix
of deposits from noninterest bearing to interest-bearing deposits.
Our deposit gathering efforts will continue to focus on
transactional deposits and, consequently, reducing our reliance on
time deposits. We are pleased with the outcome of our efforts in
2022 to control our funding costs, despite nearly unprecedented
increases in interest rates, as the average cost of total
interest-bearing liabilities increased only 15 basis points
year-over-year.”
“Credit quality continues to be a strength of
our bank with our $897.8 million loan portfolio producing a ratio
of nonperforming loans to total loans of 1.00% at December 31,
2022, a level that was stable in comparison to 2021, and less than
half of the 2.58% we reported in 2020. Our ratio of allowance for
loan losses to nonperforming loans stood at 169.93% at year end.
Loan loss provision returned to a more normalized level in 2022,
and increased in the fourth quarter, as the Bank evaluated all
risks associated with the loan portfolio and identified the need
for certain credit downgrades on a small number of large loan
relationships.”
“Our projected loan pipeline volume remains
solid at year end. However, we anticipate loan demand slowing from
the robust levels experienced following the pandemic and we will
continue to maintain our prudent and consistent underwriting
standards as we move forward. Our Central New York markets remain
vibrant and we continue to take multiple strategic steps to bring
about further growth for the Company. We were happy to announce the
opening of our newest branch in the Southwest Corridor of the City
of Syracuse during the fourth quarter of 2022. We are certain that
this branch location will allow us to better serve our growing
customer base in that portion of our existing footprint and will
provide a range of community banking services to an under-served
neighborhood. We continue to believe that our strong financial
performance, dedicated and highly capable team and healthy capital
position leaves us well-positioned for 2023 and beyond.”
Income Statement for the Quarter and
Year Ended December 31, 2022
Fourth quarter 2022 net income was $3.5 million,
a decrease of $350,000, or 9.0% from $3.9 million in the fourth
quarter of the previous year. Net interest income, before provision
for loan losses, increased by $1.5 million, or 14.9%, in the fourth
quarter of 2022 to $11.2 million, compared to $9.7 million for the
same quarter in 2021. The increase in net interest income between
comparable quarters was primarily due to the $3.8 million, or
34.3%, increase in interest and dividend income in the fourth
quarter of 2022. Interest and dividend income increased to $15.0
million, compared to $11.2 million in the same quarter in 2021.
These improvements in interest and dividend income were partially
offset by an increase in interest expense for the fourth quarter of
2022 of $2.4 million, or 163.9%, to $3.8 million, from $1.5 million
for the prior year quarter.
The quarter-over-quarter improvement in net
interest income before provision for loan losses, discussed above,
was more than offset by an increase in the provision for loan
losses recorded in the fourth quarter of 2022. The Bank reported a
provision for loan losses of $1.9 million for the fourth quarter of
2022, compared to a credit to provision for loan losses of $1.0
million for the fourth quarter of 2021. Therefore, net interest
income, after provision for loan losses, decreased by $1.5 million,
or 13.7%, in the fourth quarter of 2022 to $9.3 million, compared
to $10.8 million for the same quarter in 2021.
Noninterest income increased in the fourth
quarter of 2022 to $1.9 million, an increase of $448,000, or 31.9%,
compared to the same quarter in 2021. Total revenues after
provision for loan losses therefore decreased $1.0 million, or
-8.4%, to $11.2 million from $12.2 million in the same quarter of
the previous year. Noninterest expense increased in the fourth
quarter of 2022 by $19,000, remaining essentially unchanged from
the same quarter in 2021 at $7.2 million.
Net income for the full year ended December 31,
2022 was $12.9 million, an increase of 524,000, or 4.2% from $12.4
million in 2021. Net interest income, before provision for loan
losses, increased by $3.1 million, or 8.1%, in 2022 to $41.4
million, compared to $38.3 million in 2021. The increase in net
interest income between the two years was primarily due to the $5.3
million, or 11.5%, increase in interest and dividend income in
2022. Interest and dividend income increased to $51.1 million,
compared to $45.8 million in the year ended December 31, 2021.
These improvements in interest and dividend income were partially
offset by an increase in interest expense in 2022 of $2.2 million,
or 28.7%, to $9.7 million from $7.5 million for the prior year.
The year-over-year improvement in net interest
income before provision for loan losses, discussed above, was
partially offset by an increase in the provision for loan losses
recorded in 2022. The Bank reported a provision for loan losses of
$2.8 million in 2022, compared to a provision for loan losses of
$1.0 million in the previous year. Therefore, net interest income,
after provision for loan losses, increased by $1.4 million, or
3.7%, in 2022 to $38.6 million, compared to $37.3 million in
2021.
Noninterest income decreased in 2022 to $5.9
million, a decrease of $317,000, or 5.1%, compared to 2021. Total
revenues after provision for loan losses therefore increased $1.1
million, or 2.4%, to $44.6 million from $43.5 million in the
previous year. Noninterest expense increased in 2022 by $1.4
million, or 5.0%, increasing from $27.5 million in 2021 to $28.9
million in 2022.
Components of Net Interest
Income
Fourth quarter 2022 net interest income was
$11.2 million, an increase of $1.5 million, or 14.9%, compared to
$9.7 million for the same quarter in 2021. Interest and dividend
income in the 2022 fourth quarter was $15.0 million, compared to
$11.2 million in the fourth quarter of 2021. The increase in
interest and dividend income between comparable quarters was a
result of a 41-basis-point increase in the average loan yield, and
a $38.8 million increase in average taxable investment securities
combined with a 133-basis-point increase in the average yield on
those instruments. Partially offsetting those increases was an
82-basis-point increase in rates paid on interest-bearing
liabilities. Total interest expense for the fourth quarter of 2022
was $3.8 million, an increase of $2.4 million, or 163.9%, from $1.5
million for the prior year quarter. The increase in the quarterly
interest expense was primarily a result of the increase in cost of
deposits resulting from the rapidly rising interest rate
environment. The deposit mix included a $108.7 million increase in
average time deposit balances combined with a 115-basis- point
increase in the average interest rate paid on those deposits. The
resultant net interest margin for the fourth quarter of 2022 was
3.42%, a 14-basis-point increase compared to a net interest margin
of 3.28% for the fourth quarter of 2021.
Net interest income for the full year of 2022
increased $3.1 million, or 8.1%, to $41.4 million compared to $38.3
million for the full year of 2021. Interest and dividend income for
the full year ended December 31, 2022 was $51.1 million, an
increase of $5.3 million, or 11.5%, compared to $45.8 million for
2021. The increase was due to a $38.8 million increase in average
taxable investment securities and a $36.3 million, or 4.4%,
increase in average loan balances compared to the prior year.
Partially offsetting these increases in interest income in 2022, as
compared to the previous year, was an increase in interest expense
to $9.7 million, representing an increase of $2.2 million, or
28.7%, from the prior year period. This increase in interest
expense was primarily due to an increase in time deposit balances,
along with a 22 basis point increase in the interest rate paid on
those deposits. Full year 2022 net interest margin of 3.24% was up
three basis points from 3.21% for the twelve months ended December
31, 2021.
The following table details the components of net
interest income for the three and twelve months ended December 31,
2022 and 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
For the three months ended |
For the twelve months ended |
|
December |
|
December |
|
|
|
|
|
|
December |
|
|
December |
|
|
|
|
(In thousands, except per share data) |
|
31, 2022 |
|
31, 2021 |
|
|
Change |
31, 2022 |
|
31, 2021 |
|
Change |
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
10,761 |
$ |
8,930 |
|
|
$ |
1,831 |
|
|
20.5 |
% |
$ |
38,322 |
|
$ |
37,026 |
|
$ |
1,296 |
|
|
3.5 |
% |
Debt
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
3,530 |
|
2,135 |
|
|
|
1,395 |
|
|
65.3 |
% |
|
11,225 |
|
|
8,312 |
|
|
2,913 |
|
|
35.0 |
% |
Tax-exempt |
|
561 |
|
72 |
|
|
|
489 |
|
|
679.2 |
% |
|
1,173 |
|
|
171 |
|
|
1,002 |
|
|
586.0 |
% |
Dividends |
|
74 |
|
48 |
|
|
|
26 |
|
|
54.2 |
% |
|
229 |
|
|
309 |
|
|
(80 |
) |
|
-25.9 |
% |
Federal funds sold and interest earning deposits |
|
101 |
|
2 |
|
|
|
99 |
|
|
4950.0 |
% |
|
149 |
|
|
9 |
|
|
140 |
|
|
1555.6 |
% |
Total interest and dividend income |
|
15,027 |
|
11,187 |
|
|
|
3,840 |
|
|
34.3 |
% |
|
51,098 |
|
|
45,827 |
|
|
5,271 |
|
|
11.5 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits |
|
3,066 |
|
889 |
|
|
|
2,177 |
|
|
244.9 |
% |
|
7,072 |
|
|
4,714 |
|
|
2,358 |
|
|
50.0 |
% |
Interest on
short-term borrowings |
|
158 |
|
2 |
|
|
|
156 |
|
|
7800.0 |
% |
|
310 |
|
|
10 |
|
|
300 |
|
|
3000.0 |
% |
Interest on
long-term borrowings |
|
159 |
|
153 |
|
|
|
6 |
|
|
3.9 |
% |
|
564 |
|
|
1,018 |
|
|
(454 |
) |
|
-44.6 |
% |
Interest on subordinated debt |
|
465 |
|
414 |
|
|
|
51 |
|
|
12.3 |
% |
|
1,749 |
|
|
1,790 |
|
|
(41 |
) |
|
-2.3 |
% |
Total interest expense |
|
3,848 |
|
1,458 |
|
|
|
2,390 |
|
|
163.9 |
% |
|
9,695 |
|
|
7,532 |
|
|
2,163 |
|
|
28.7 |
% |
Net interest income |
|
11,179 |
|
9,729 |
|
|
|
1,450 |
|
|
14.9 |
% |
|
41,403 |
|
|
38,295 |
|
|
3,108 |
|
|
8.1 |
% |
Provision for loan
losses |
|
1,883 |
|
(1,039 |
) |
|
|
2,922 |
|
|
-281.2 |
% |
|
2,754 |
|
|
1,022 |
|
|
1,732 |
|
|
169.5 |
% |
Net interest income after provision for loan losses |
$ |
9,296 |
$ |
10,768 |
|
|
$ |
(1,472 |
) |
|
-13.7 |
% |
$ |
38,649 |
|
$ |
37,273 |
|
$ |
1,376 |
|
|
3.7 |
% |
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 were substantially guaranteed as to timely
repayment by the SBA and had 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. The total
outstanding balance of PPP loans was $203,000 at December 31, 2022,
a decline of $19.6 million from the $19.8 million outstanding
balance of PPP loans at December 31, 2021. Information related to
the Company’s PPP loans are included in the following tables:
|
|
|
Unaudited |
For the three months ended |
For the years ended |
|
December 31, |
December 31, |
December 31, |
December 31, |
(In thousands, except number of loans) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Number of PPP loans originated in the period |
|
- |
|
- |
|
- |
|
478 |
Funded balance of PPP loans originated in the period |
$ |
- |
$ |
- |
$ |
- |
$ |
36,369 |
Number of PPP loans forgiven in the period |
|
8 |
|
160 |
|
197 |
|
796 |
Balance of PPP loans forgiven in the period |
$ |
490 |
$ |
8,328 |
$ |
8,907 |
$ |
77,054 |
Deferred PPP fee income recognized in the period |
$ |
16 |
$ |
408 |
$ |
563 |
$ |
2,150 |
(In thousands) |
December 31, 2022 |
December 31, 2021 |
Unearned PPP deferred fee income at end of period |
$ |
12 |
$ |
716 |
(In thousands, except number of loans) |
Number |
|
Balance |
Total PPP loans originated since inception |
1,177 |
$ |
111,721 |
Total PPP loans forgiven since inception |
1,172 |
|
111,518 |
Total PPP loans remaining at December 31, 2022 |
5 |
$ |
203 |
Provision for Loan Losses
The Bank reported a provision for loan losses of
$1.9 million for the fourth quarter of 2022, compared to a credit
to provision for loan losses of $1.0 million for the fourth quarter
of 2021. During the fourth quarter of 2021, the Bank evaluated all
risks associated with the loan portfolio and reduced its allowance
for loan losses by a net $1.0 million, based on all information
available at that time. The increase in the provision for loan
losses in the fourth quarter of 2022 was primarily due to the
results of a similar loan portfolio evaluation that indicated the
need for certain downgrades of four large loan relationships
totaling approximately $12.0 million. Management believes that
these downgrades are not reflective of any broader patterns of loan
quality deterioration within the Bank’s loan portfolios. Certain
credit sensitive portfolios continue to be carefully monitored, and
the Bank will consistently apply its loan classification and
reserve building methodologies to the analysis of these portfolios.
The provision for loan losses for the full year of 2022 was $2.8
million, compared to $1.0 million in 2021.
In June 2016, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (ASU) 2016-13,
Financial Instruments—Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments, requiring financial
institutions, such as the Bank, to adopt the Current Expected
Credit Loss (“CECL”) according to a specified implementation
timeline that was based on the size of the reporting entity. In
order to meet this requirement, the Bank adopted the CECL
methodology for calculating its Allowance for Credit Losses (“ACL”)
on January 1, 2023. The transition adjustment upon the adoption of
CECL will be accounted for as a one-time charge to retained
earnings and does not impact earnings per share in either 2022 or
2023. Management estimates that the required CECL transition
adjustment will not exceed $1.7 million, after tax effects. This
one-time adjustment will translate to a reduction of approximately
$0.28 per share in the Company’s tangible book value (TBV), after
tax effects as of the adoption date.
Noninterest Income
Fourth quarter 2022 noninterest income was $1.9
million, an increase of $448,000, or 31.9%, compared to $1.4
million for the same three-month period in 2021. Noninterest income
was $5.9 million for the full year 2022, compared to $6.2 million
for 2021.
The following table details the components of
noninterest income for the three and twelve months ended December
31, 2022, and 2021:
|
|
|
Unaudited |
For the three months ended |
For the twelve months ended |
(Dollars in thousands) |
December 31, 2022 |
December 31,2021 |
Change |
December 31,2022 |
December 31,2021 |
Change |
Service charges on deposit accounts |
$ |
250 |
|
$ |
382 |
$ |
(132 |
) |
-34.6 |
% |
$ |
1,126 |
|
$ |
1,464 |
$ |
(338 |
) |
-23.1 |
% |
Earnings and gain on bank owned life insurance |
|
148 |
|
|
141 |
|
7 |
|
5.0 |
% |
|
589 |
|
|
559 |
|
30 |
|
5.4 |
% |
Loan servicing fees |
|
103 |
|
|
91 |
|
12 |
|
13.2 |
% |
|
363 |
|
|
246 |
|
117 |
|
47.6 |
% |
Debit card interchange fees |
|
228 |
|
|
225 |
|
3 |
|
1.3 |
% |
|
867 |
|
|
923 |
|
(56 |
) |
-6.1 |
% |
Insurance agency revenue |
|
279 |
|
|
231 |
|
48 |
|
20.8 |
% |
|
1,128 |
|
|
1,048 |
|
80 |
|
7.6 |
% |
Other charges, commissions and fees |
|
899 |
|
|
258 |
|
641 |
|
248.4 |
% |
|
1,901 |
|
|
1,058 |
|
843 |
|
79.7 |
% |
Noninterest income before (losses) gains |
|
1,907 |
|
|
1,328 |
|
579 |
|
43.6 |
% |
|
5,974 |
|
|
5,298 |
|
676 |
|
12.8 |
% |
Net (losses) gains on sales of securities, fixed assets, loans and
foreclosed real estate |
|
(366 |
) |
|
68 |
|
(434 |
) |
-638.2 |
% |
|
(412 |
) |
|
551 |
|
(963 |
) |
-174.8 |
% |
Gains on marketable equity securities |
|
313 |
|
|
10 |
|
303 |
|
3030.0 |
% |
|
352 |
|
|
382 |
|
(30 |
) |
7.9 |
% |
Total noninterest income |
$ |
1,854 |
|
$ |
1,406 |
$ |
448 |
|
31.9 |
% |
$ |
5,914 |
|
$ |
6,231 |
$ |
(317 |
) |
-5.1 |
% |
Noninterest income before (losses) gains
increased $579,000, or 43.6%, in the fourth quarter of 2022,
primarily due to the recognition of $660,000 in historical tax
credit subsidies made available upon the completion of the Bank’s
new branch location in Syracuse, NY. Absent that nonrecurring
revenue addition in the fourth quarter of 2022, noninterest income
before (losses) gains would have decreased $81,000, or 6.1% in the
fourth quarter of 2022, as compared to the same quarter in 2021.
This decline in noninterest income was primarily due to a decline
of $132,000, or 34.6%, in service charges on deposit accounts that
was due principally to a reduction in certain fee structures that
the Bank enacted in January 2022 in response to the locally
competitive market. All other categories of noninterest income
before (losses) gains increased $51,000 in aggregate during the
fourth quarter of 2022, as compared to the same quarter in 2021,
due to individually immaterial net increases in other recurring
sources of noninterest income.
During the fourth quarter of 2022, the Bank
recognized an impairment charge of $366,000 related to a real
estate property investment that was newly categorized as
available-for-sale. Partially offsetting this unrealized loss
recognition, the Company also recognized unrealized gains on equity
securities, held by the holding company, due to increases in the
securities’ net asset values.
Noninterest income before (losses) gains
increased $676,000, or 12.86%, for the full year 2022, primarily
due to the fourth quarter recognition of $660,000 in historical tax
credit subsidies made available upon the completion of the Bank’s
new branch location in Syracuse, NY. Absent that nonrecurring
revenue addition in the fourth quarter of 2022, noninterest income
before (losses) gains increased $16,000, or 0.3%, for the full year
2022, as compared to 2021. Of note, service charges on deposit
accounts declined $338,000, or 23.1%, in 2022, as compared to the
previous year due to the reduction in the Bank’s fee structures
discussed above. All other categories of recurring noninterest
income before (losses) gains, excluding the $660,000 historical tax
credit recorded in the fourth quarter of 2022, increased $354,000
in aggregate during 2022, as compared to 2021, due to individually
immaterial net increases in other recurring sources of noninterest
income.
Noninterest Expense
Total noninterest expense for the fourth quarter
of 2022 was $7.2 million, essentially unchanged from the same
three-month period in 2021. Noninterest expense for the fourth
quarter of 2022, in comparison to the same quarter in the previous
year, was driven by increases in salaries and benefits expense of
$74,000, or 1.9%, partially offset by aggregate decreases in all
other expense categories of $205,000, or 6.3%. The $74,000 increase
in salaries and benefits expense for the three months ended
December 31, 2022, as compared to the same three month period in
2021, was primarily due to increases in individual staff salaries
and certain commissions paid related to insurance and investment
services activities. Additionally, salaries and benefits expenses
increased due to additions to staff headcount concentrated
primarily in the loan servicing areas and within the Bank's branch
system. Staffing increases in the Bank's branch system were made as
a result of the opening of the Bank's eleventh branch in November
2022. During 2022, the Company increased its salary structure where
it was deemed appropriate in order to effectively respond to
inflationary and competitive pressures within our marketplace to
recruit and retain talent.
Total noninterest expense for the full year 2022
was $28.9 million, an increase of $1.4 million, or 5.0%, compared
with $27.5 million in 2021. The increase in noninterest expenses in
2022, as compared to 2021, was primarily a result of an increase in
salaries and employee benefits expense of $1.6 million, or 11.4%,
that was primarily comprised of an $737,000, or 7.2%, increase in
salaries, a $530,000 reduction in the level of deferred
employee-related expenses related to loan origination volume
declines following the cessation of the PPP, and a $370,000
increase in all other salaries and employee benefit expenses.
The following table details the components of
noninterest expense for the three and twelve-months ended December
31, 2022 and 2021:
|
|
|
|
Unaudited |
For the three months ended |
For the twelve months ended |
|
December |
December |
|
December |
December |
|
(Dollars in thousands) |
|
31, 2022 |
31, 2021 |
Change |
31, 2022 |
31, 2021 |
Change |
Salaries and employee benefits |
$ |
3,992 |
$ |
3,918 |
$ |
74 |
|
1.9 |
% |
$ |
16,022 |
$ |
14,384 |
$ |
1,638 |
|
11.4 |
% |
Building and occupancy |
|
889 |
734 |
155 |
|
21.1 |
% |
3,380 |
3,121 |
|
259 |
|
8.3 |
% |
Data processing |
|
490 |
539 |
(49 |
) |
-9.1 |
% |
2,042 |
2,555 |
|
(513 |
) |
-20.1 |
% |
Professional and other services |
|
416 |
374 |
42 |
|
11.2 |
% |
1,528 |
1,627 |
|
(99 |
) |
-6.1 |
% |
Advertising |
|
284 |
502 |
(218 |
) |
-43.4 |
% |
905 |
1,198 |
|
(293 |
) |
-24.5 |
% |
FDIC assessments |
|
- |
222 |
(222 |
) |
-100.0 |
% |
606 |
874 |
|
(268 |
) |
-30.7 |
% |
Audits and exams |
|
264 |
153 |
111 |
|
72.5 |
% |
688 |
725 |
|
(37 |
) |
-5.1 |
% |
Insurance agency expense |
|
219 |
198 |
21 |
|
10.6 |
% |
906 |
825 |
|
81 |
|
9.8 |
% |
Community service activities |
|
74 |
39 |
35 |
|
89.7 |
% |
267 |
220 |
|
47 |
|
21.4 |
% |
Foreclosed real estate expenses |
|
21 |
16 |
5 |
|
31.3 |
% |
78 |
46 |
|
32 |
|
69.6 |
% |
Other expenses |
|
560 |
496 |
64 |
|
12.9 |
% |
2,452 |
1,920 |
|
532 |
|
27.7 |
% |
Total noninterest expenses |
$ |
7,209 |
$ |
7,191 |
$ |
18 |
|
0.3 |
% |
$ |
28,874 |
$ |
27,495 |
$ |
1,379 |
|
5.0 |
% |
Balance Sheet on December 31,
2022
The Company’s total assets on December 31, 2022
were $1.40 billion, an increase of $114.7 million, or 8.9%, from
$1.29 billion on December 31, 2021. This increase was primarily
driven by increased loan balances and an increase in
held-to-maturity securities. Total loans of $897.8 million
increased by $65.3 million, or 7.9%, compared with $832.5 million
on December 31, 2021. Investment securities totaled $394.0 million,
an increase of $37.6 million compared to $356.4 million on December
31, 2021.
Total deposits on December 31, 2022 were $1.13
billion, an increase of $70.0 million, or 6.6%, from $1.06 billion,
at December 31, 2021. Interest-bearing deposits of $941.7 million
at 2022 year end were up by $78.0 million, or 9.1%, while
noninterest-bearing deposits totaled $183.7 million at December 31,
2022, a decrease of $8.0 million, or 4.2%, from the 2021 year end.
The decrease in noninterest-bearing deposits was the result of the
rapidly rising interest rate environment which increased the
competition for deposits in general and caused depositor
preferences to shift from transactional deposits to time deposits
as the year progressed.
Shareholders’ equity was $111.0 million at
December 31, 2022, reflecting an increase of $709,000, or 0.64%,
compared with $110.3 million at December 31, 2021. The increase was
primarily a result of a $10.4 million or 17.0% increase in retained
earnings, offset by an increase of $10.9 million in accumulated
other comprehensive loss, due to unrealized temporary losses on
investment securities categorized as available-for-sale, and $1.2
million in declared dividend distributions.
Asset Quality
The Bank continued to maintain strong asset
quality metrics, as measured by annualized net loan charge-offs to
average loans, for fourth quarter 2022 of 0.04%. Annualized net
loan charge-offs to average loans were 0.12% for the fourth quarter
2021.
Nonperforming loans remained stable at December
31, 2022, as compared to December 31, 2021. Management continues to
monitor 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 December 31, 2022.
The following table summarizes nonaccrual loans by
category and status at December 31, 2022:
Loan Type |
Collateral Type |
Number of Loans |
|
Loan Balance |
|
Average Loan Balance |
Weighted LTV at Origination/Modification |
Status |
Secured residential mortgage: |
|
|
|
|
|
|
|
|
|
|
Real Estate |
13 |
|
$ |
1,112 |
|
$ |
86 |
77 |
% |
Individual loans are under active resolution management by the
Bank. |
|
|
|
|
|
|
|
|
|
|
Secured commercial real estate: |
|
|
|
|
|
|
|
|
|
|
Private Museum |
1 |
|
|
1,380 |
|
|
1,380 |
79 |
% |
Monthly payments for interest and escrow requirements are being
made with the formal modification of the existing mortgage loan
expected to be finalized during the fourth quarter of 2022. The
borrower is also expected to receive specific government grant
funding in the next few months. In combination, these activities
will allow for a reduction of the outstanding loan balance upon
their finalization. |
|
Recreational |
1 |
|
|
1,233 |
|
|
1,233 |
49 |
% |
The loan is currently classified as a Troubled Debt Restructuring
(TDR). The due date for the loan payment was September 1, 2021. The
Bank is currently working with a local economic development agency
in order to assist a potential buyer of the property with
financing. |
|
All other |
6 |
|
|
891 |
|
|
149 |
40 |
% |
Individual loans are under active resolution management by the
Bank. |
|
|
|
|
|
|
|
|
|
|
|
Commercial lines of credit: |
|
3 |
|
|
332 |
|
|
111 |
N/A |
|
Individual loans are under active resolution management by the
Bank. |
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial: |
|
9 |
|
|
1,884 |
|
|
209 |
N/A |
|
Individual loans are under active resolution management by the
Bank. |
|
|
|
|
|
|
|
|
|
|
|
Consumer loans: |
|
23 |
|
|
2,183 |
|
|
95 |
N/A |
|
Individual loans are under active resolution management by the
Bank. |
|
|
56 |
|
$ |
9,015 |
|
|
|
|
|
The allowance for loan losses to non-performing
loans at December 31, 2022 was 169.93%, compared with 155.99% at
December 31, 2021. The change in the allowance for loans losses to
non-performing loans is reflective of the changes in nonaccrual
loans discussed above and compared to a reserve release during the
fourth quarter of 2021.
Cash Dividend Declared
On December 27, 2022, the Company announced that
its Board of Directors declared a cash dividend of $0.09 per share
on the Company's voting common and non-voting common stock, and a
cash dividend of $0.09 per notional share for the issued warrant
relating to the fiscal quarter ended December 31, 2022. The
dividend will be payable to all shareholders of record on January
17, 2023 and will be paid on February 10, 2023. Based on the
closing price of the Company’s common stock of $19.14 on December
30, 2022, the implied dividend yield is 1.9%. The quarterly cash
dividend of $0.09 equates to a dividend payout ratio of 20.9%.
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 eleven 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 December 31,
2022, there were 4,651,829 shares of voting common stock
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 December 31, 2022, the
Company and subsidiaries had total consolidated assets of $1.40
billion, total deposits of $1.13 billion and shareholders' equity
of $111.0 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.” These forward-looking
statements are based on current beliefs and expectations of the
Company’s and the Bank’s management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are beyond the Company’s and the
Bank’s control. In addition, these forward-looking statements are
subject to assumptions with respect to future business strategies
and decisions that are subject to change. Actual results may differ
materially from those set forth in the forward-looking statements
as a result of numerous factors. Factors that could cause such
differences to exist include, but are not limited to: risks related
to the real estate and economic environment, particularly in the
market areas in which the Company and the Bank operate; fiscal and
monetary policies of the U.S. Government; inflation; changes in
government regulations affecting financial institutions, including
regulatory compliance costs and capital requirements; fluctuations
in the adequacy of the allowance for loan losses; decreases in
deposit levels necessitating increased borrowing to fund loans and
investments; the effects of the COVID-19 pandemic; operational
risks including, but not limited to, cybersecurity, fraud and
natural disasters; the risk that the Company may not be successful
in the implementation of its business strategy; changes in
prevailing interest rates; credit risk management; asset-liability
management; and other risks described in the Company’s filings with
the Securities and Exchange Commission, which are available at the
SEC’s website, www.sec.gov.
Investor/Media Contacts James
A. Dowd, President, CEO Walter F. Rusnak, Senior Vice President,
CFOTelephone: (315) 343-0057
PATHFINDER BANCORP, INC.FINANCIAL
HIGHLIGHTS (Dollars and shares in thousands except
per share amounts)
|
|
|
|
For the three monthsended December
31,(Unaudited) |
For the twelve monthsended December
31,(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Income
Statement |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Interest and dividend income |
$ |
15,027 |
|
$ |
11,187 |
|
$ |
51,098 |
|
$ |
45,827 |
Interest expense |
|
3,848 |
|
|
1,458 |
|
|
9,695 |
|
|
7,532 |
Net interest income |
|
11,179 |
|
|
9,729 |
|
|
41,403 |
|
|
38,295 |
Provision for loan losses |
|
1,883 |
|
|
(1,039 |
) |
|
2,754 |
|
|
1,022 |
|
|
9,296 |
|
|
10,768 |
|
|
38,649 |
|
|
37,273 |
Noninterest income excluding net gains on sales of securities,
fixed assets, loans and foreclosed real estate |
|
1,907 |
|
|
1,328 |
|
|
5,974 |
|
|
5,298 |
Net (losses) gains on sales of securities, fixed assets, loans and
foreclosed |
real estate |
|
(366 |
) |
|
68 |
|
|
(412 |
) |
|
551 |
Gains on marketable equity securities |
|
313 |
|
|
10 |
|
|
352 |
|
|
382 |
Noninterest expense |
|
7,209 |
|
|
7,191 |
|
|
28,874 |
|
|
27,495 |
Income before income taxes |
|
3,941 |
|
|
4,983 |
|
|
15,689 |
|
|
16,009 |
Provision for income taxes |
|
383 |
|
|
1,094 |
|
|
2,656 |
|
|
3,499 |
Net income attributable to noncontrolling interest and
Pathfinder Bancorp, Inc. |
$ |
3,558 |
|
$ |
3,889 |
|
$ |
13,033 |
|
$ |
12,510 |
Net income attributable to noncontrolling interest |
|
28 |
|
|
10 |
|
|
101 |
|
|
103 |
Net income attributable to Pathfinder Bancorp
Inc. |
$ |
3,530 |
|
$ |
3,879 |
|
$ |
12,932 |
|
$ |
12,407 |
|
|
|
For the Periods Ended(Unaudited) |
|
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
Selected Balance Sheet DataAssets |
|
$ |
1,399,920 |
|
$ |
1,285,177 |
|
$ |
1,227,443 |
|
Earning assets |
|
|
1,313,069 |
|
|
1,212,139 |
|
|
1,159,778 |
|
Total loans |
|
|
897,754 |
|
|
832,459 |
|
|
825,495 |
|
Deposits |
|
|
1,125,430 |
|
|
1,055,346 |
|
|
995,907 |
|
Borrowed funds |
|
|
115,997 |
|
|
77,098 |
|
|
82,050 |
|
Allowance for loan losses |
|
|
15,319 |
|
|
12,935 |
|
|
12,777 |
|
Subordinated loans |
|
|
29,733 |
|
|
29,563 |
|
|
39,400 |
|
Pathfinder Bancorp, Inc. Shareholders' equity |
|
|
110,996 |
|
|
110,287 |
|
|
97,456 |
|
|
|
|
|
Asset Quality Ratios |
|
|
|
Net loan charge-offs (annualized) to average loans |
|
|
0.04 |
% |
|
0.12 |
% |
|
0.08 |
% |
Allowance for loan losses to period end loans |
|
|
1.71 |
% |
|
1.55 |
% |
|
1.55 |
% |
Allowance for loan losses to nonperforming loans |
|
|
169.93 |
% |
|
155.99 |
% |
|
59.89 |
% |
Nonperforming loans to period end loans |
|
|
1.00 |
% |
|
1.00 |
% |
|
2.58 |
% |
Nonperforming assets to total assets |
|
|
0.66 |
% |
|
0.65 |
% |
|
1.74 |
% |
PATHFINDER BANCORP, INC.FINANCIAL
HIGHLIGHTS (Dollars and shares in thousands except
per share amounts)
|
|
|
|
|
|
For the three monthsended December
31,(Unaudited) |
|
|
For the twelve monthsended December
31,(Unaudited) |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Key Earnings Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.02 |
% |
|
1.24 |
% |
|
0.96 |
% |
|
0.98 |
% |
Return on average common equity |
|
12.89 |
% |
|
14.38 |
% |
|
11.77 |
% |
|
11.91 |
% |
Return on average equity |
|
12.89 |
% |
|
14.38 |
% |
|
11.77 |
% |
|
11.91 |
% |
Net interest margin |
|
3.42 |
% |
|
3.27 |
% |
|
3.24 |
% |
|
3.21 |
% |
Share, Per Share and Ratio Data |
|
|
|
|
Basic and diluted weighted average shares outstanding -Voting |
|
4,585 |
|
|
4,518 |
|
|
4,559 |
|
|
4,478 |
|
Basic and diluted earnings per share - Voting |
$ |
0.58 |
|
$ |
0.64 |
|
$ |
2.13 |
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average shares outstanding - Series A
Non- Voting |
|
1,380 |
|
|
1,380 |
|
|
1,380 |
|
|
745 |
|
Basic and diluted earnings per share - Series A Non-Voting |
$ |
0.58 |
|
$ |
0.64 |
|
$ |
2.13 |
|
$ |
2.07 |
|
Cash dividends per share |
$ |
0.09 |
|
$ |
0.07 |
|
$ |
0.36 |
|
$ |
0.28 |
|
Book value per common share at December 31, 2022 and 2021 |
|
|
$ |
18.40 |
|
$ |
18.43 |
|
Tangible book value per common share at December 31, 2022 and
2021 |
|
|
$ |
17.63 |
|
$ |
17.66 |
|
Tangible common equity to tangible assets at December 31, 2022 and
2021 |
|
|
|
7.62 |
% |
|
8.25 |
% |
Tangible common equity to tangible assets at December 31, 2022 and
2021, adjusted |
|
|
|
7.62 |
% |
|
8.38 |
% |
Throughout the accompanying document, certain
financial metrics and ratios are presented that are not defined
under generally accepted accounting principles (GAAP).
Reconciliations of the non-GAAP financial metrics and ratios,
presented elsewhere within this document, are presented below:
|
|
|
|
|
|
|
|
|
For the twelve months ended December
31,(Unaudited) |
|
|
2022 |
|
|
|
2021 |
|
Non-GAAP
Reconciliation |
|
|
|
|
|
|
|
Tangible book value per common share |
|
|
|
|
|
|
|
Total equity |
$ |
110,996 |
|
|
$ |
110,287 |
|
Intangible assets |
|
(4,636 |
) |
|
|
(4,653 |
) |
Common tangible equity |
$ |
106,360 |
|
|
$ |
105,634 |
|
Common shares outstanding |
|
6,032 |
|
|
|
5,983 |
|
Tangible book value per common share |
$ |
17.63 |
|
|
$ |
17.66 |
|
Tangible common equity to tangible assets |
|
|
Tangible common equity |
$ |
106,360 |
|
|
$ |
105,634 |
|
Tangible assets |
|
1,395,284 |
|
|
|
1,280,524 |
|
Tangible common equity to tangible assets ratio |
|
7.62 |
% |
|
|
8.25 |
% |
Tangible common equity to tangible assets,
adjusted Tangible common equity |
$ |
106,360 |
|
|
$ |
105,634 |
|
Tangible assets |
|
1,395,284 |
|
|
|
1,280,524 |
|
Less: Paycheck Protection Program (PPP) loans |
|
(203 |
) |
|
|
(19,338 |
) |
Total assets excluding PPP loans |
$ |
1,395,081 |
|
|
$ |
1,261,186 |
|
Tangible common equity to tangible assets ratio, excluding PPP
loans |
|
7.62 |
% |
|
|
8.38 |
% |
* Basic and diluted earnings per share are
calculated based upon the two-class method for the nine months
ended December 31, 2022 and 2021. 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.
|
|
|
For the three months ended December
31,(Unaudited) |
|
2022 |
2021 |
|
Average |
|
|
Average Yield / |
|
|
Average |
|
Average Yield / |
|
(Dollars in thousands) |
|
Balance |
|
Interest |
Cost |
|
Balance |
Interest |
Cost |
|
Interest-earning assets: |
|
|
|
|
|
|
Loans |
$ |
889,431 |
|
$ |
10,761 |
4.84 |
% |
$ |
805,421 |
$ |
8,930 |
4.43 |
% |
Taxable investment securities |
|
361,973 |
|
|
3,604 |
3.98 |
% |
|
323,166 |
|
2,138 |
2.65 |
% |
Tax-exempt investment securities |
|
41,020 |
|
|
561 |
5.47 |
% |
|
26,759 |
|
117 |
1.75 |
% |
Fed funds sold and interest-earning deposits |
|
16,716 |
|
|
101 |
2.42 |
% |
|
29,750 |
|
2 |
0.03 |
% |
Total interest-earning assets |
|
1,309,140 |
|
|
15,027 |
4.59 |
% |
|
1,185,096 |
|
11,187 |
3.78 |
% |
Noninterest-earning assets: |
|
|
|
|
|
|
Other assets |
|
100,484 |
|
|
|
|
|
|
84,608 |
|
|
|
|
Allowance for loan losses |
|
(13,656 |
) |
|
|
|
|
|
(14,083 |
) |
|
|
|
Net unrealized (losses) gains on available-for-sale securities |
|
(16,554 |
) |
|
|
|
|
|
535 |
|
|
|
|
Total assets |
$ |
1,379,414 |
|
|
|
|
|
$ |
1,256,156 |
|
|
|
|
Interest-bearing liabilities: |
|
|
NOW accounts |
$ |
95,205 |
|
$ |
85 |
0.36 |
% |
$ |
94,178 |
$ |
74 |
0.31 |
% |
Money management accounts |
|
16,169 |
|
|
6 |
0.15 |
% |
|
15,489 |
|
4 |
0.10 |
% |
MMDA accounts |
|
274,511 |
|
|
955 |
1.39 |
% |
|
265,570 |
|
253 |
0.38 |
% |
Savings and club accounts |
|
136,447 |
|
|
60 |
0.18 |
% |
|
129,441 |
|
44 |
0.14 |
% |
Time deposits |
|
445,796 |
|
|
1,960 |
1.76 |
% |
|
337,054 |
|
514 |
0.61 |
% |
Subordinated loans |
|
29,704 |
|
|
465 |
6.26 |
% |
|
29,537 |
|
414 |
5.61 |
% |
Borrowings |
|
72,100 |
|
|
317 |
1.76 |
% |
|
65,596 |
|
155 |
0.95 |
% |
Total interest-bearing liabilities |
|
1,069,932 |
|
|
3,848 |
1.44 |
% |
|
936,865 |
|
1,458 |
0.62 |
% |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
Demand deposits |
|
185,835 |
|
|
|
|
199,254 |
|
|
Other liabilities |
|
14,123 |
|
|
|
|
12,146 |
|
|
Total liabilities |
|
1,269,890 |
|
|
|
|
1,148,265 |
|
|
Shareholders' equity |
|
109,524 |
|
|
|
|
107,891 |
|
|
Total liabilities & shareholders' equity |
$ |
1,379,414 |
|
|
|
$ |
1,256,156 |
|
|
Net interest income |
|
$ |
11,179 |
|
|
$ |
9,729 |
|
Net interest rate spread |
|
|
3.15 |
% |
|
|
3.16 |
% |
Net interest margin |
|
|
3.42 |
% |
|
|
3.28 |
% |
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
|
122.36 |
% |
|
|
126.50 |
% |
PATHFINDER BANCORP, INC.FINANCIAL
HIGHLIGHTS (Dollars and shares in thousands except
per share amounts)
|
|
|
For the twelve months ended December
31,(Unaudited) |
|
2022 |
2021 |
|
|
Average |
|
|
Average Yield / |
|
|
Average |
|
Average Yield / |
|
(Dollars in thousands) |
|
Balance |
|
Interest |
Cost |
|
|
Balance |
Interest |
Cost |
|
Interest-earning assets: |
|
|
|
|
|
|
Loans |
$ |
869,591 |
|
$ |
38,322 |
4.41 |
% |
$ |
833,308 |
$ |
37,026 |
4.44 |
% |
Taxable investment securities |
|
351,898 |
|
|
11,454 |
3.25 |
% |
|
313,392 |
|
8,576 |
2.74 |
% |
Tax-exempt investment securities |
|
38,456 |
|
|
1,173 |
3.05 |
% |
|
16,191 |
|
216 |
1.33 |
% |
Fed funds sold and interest-earning deposits |
|
19,134 |
|
|
149 |
0.78 |
% |
|
28,765 |
|
9 |
0.03 |
% |
Total interest-earning assets |
|
1,279,079 |
|
|
51,098 |
3.99 |
% |
|
1,191,656 |
|
45,827 |
3.85 |
% |
Noninterest-earning assets: |
|
|
|
|
|
|
Other assets |
|
89,391 |
|
|
|
|
|
|
82,130 |
|
|
|
|
Allowance for loan losses |
|
(13,196 |
) |
|
|
|
|
|
(13,992 |
) |
|
|
|
Net unrealized (losses) gains on available-for-sale securities |
|
(9,580 |
) |
|
|
|
|
|
1,482 |
|
|
|
|
Total assets |
$ |
1,345,694 |
|
|
|
|
|
$ |
1,261,276 |
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
NOW accounts |
$ |
102,223 |
|
$ |
319 |
0.31 |
% |
$ |
93,950 |
$ |
286 |
0.30 |
% |
Money management accounts |
|
16,201 |
|
|
18 |
0.11 |
% |
|
15,916 |
|
17 |
0.11 |
% |
MMDA accounts |
|
260,594 |
|
|
1,941 |
0.74 |
% |
|
245,329 |
|
990 |
0.40 |
% |
Savings and club accounts |
|
138,954 |
|
|
210 |
0.15 |
% |
|
122,275 |
|
159 |
0.13 |
% |
Time deposits |
|
412,536 |
|
|
4,584 |
1.11 |
% |
|
366,724 |
|
3,262 |
0.89 |
% |
Subordinated loans |
|
29,639 |
|
|
1,749 |
5.90 |
% |
|
32,736 |
|
1,790 |
5.47 |
% |
Borrowings |
|
71,152 |
|
|
874 |
1.23 |
% |
|
79,362 |
|
1,028 |
1.30 |
% |
Total interest-bearing liabilities |
|
1,031,299 |
|
|
9,695 |
0.94 |
% |
|
956,292 |
|
7,532 |
0.79 |
% |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
Demand deposits |
|
192,106 |
|
|
|
|
189,434 |
|
|
Other liabilities |
|
12,391 |
|
|
|
|
11,419 |
|
|
Total liabilities |
|
1,235,796 |
|
|
|
|
1,157,145 |
|
|
Shareholders' equity |
|
109,898 |
|
|
|
|
104,131 |
|
|
Total liabilities & shareholders' equity |
$ |
1,345,694 |
|
|
|
$ |
1,261,276 |
|
|
Net interest income |
|
$ |
41,403 |
|
|
$ |
38,295 |
|
Net interest rate spread |
|
|
3.05 |
% |
|
|
3.06 |
% |
Net interest margin |
|
|
3.24 |
% |
|
|
3.21 |
% |
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
|
124.03 |
% |
|
|
124.61 |
% |
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.
|
|
|
|
(Unaudited)Three months ended December
31,2022 vs.
2021Increase/(Decrease) due to |
(Unaudited)Twelve months ended December
31,2022 vs.
2021Increase/(Decrease) due to |
|
|
|
TotalIncrease |
|
|
TotalIncrease |
(In thousands) |
Volume |
Rate |
(Decrease) |
Volume |
Rate |
(Decrease) |
Interest Income: |
|
|
|
|
|
|
Loans |
$ |
971 |
|
$ |
860 |
$ |
1,831 |
$ |
1,601 |
|
$ |
(305 |
) |
$ |
1,296 |
|
Taxable investment securities |
|
283 |
|
|
1,183 |
|
1,466 |
|
1,132 |
|
|
1,746 |
|
|
2,878 |
|
Tax-exempt investment securities |
|
89 |
|
|
355 |
|
444 |
|
494 |
|
|
463 |
|
|
957 |
|
Interest-earning deposits |
|
(7 |
) |
|
106 |
|
99 |
|
(4 |
) |
|
144 |
|
|
140 |
|
Total interest income |
|
1,336 |
|
|
2,504 |
|
3,840 |
|
3,223 |
|
|
2,048 |
|
|
5,271 |
|
Interest Expense: |
|
|
|
|
|
|
NOW accounts |
|
1 |
|
|
10 |
|
11 |
|
26 |
|
|
7 |
|
|
33 |
|
Money management accounts |
|
- |
|
|
2 |
|
2 |
|
- |
|
|
1 |
|
|
1 |
|
MMDA accounts |
|
9 |
|
|
693 |
|
702 |
|
65 |
|
|
886 |
|
|
951 |
|
Savings and club accounts |
|
3 |
|
|
13 |
|
16 |
|
23 |
|
|
28 |
|
|
51 |
|
Time deposits |
|
212 |
|
|
1,234 |
|
1,446 |
|
441 |
|
|
881 |
|
|
1,322 |
|
Subordinated loans |
|
2 |
|
|
49 |
|
51 |
|
(177 |
) |
|
136 |
|
|
(41 |
) |
Borrowings |
|
17 |
|
|
145 |
|
162 |
|
(103 |
) |
|
(51 |
) |
|
(154 |
) |
Total interest expense |
|
244 |
|
|
2,146 |
|
2,390 |
|
275 |
|
|
1,888 |
|
|
2,163 |
|
Net change in net interest income |
$ |
1,092 |
|
$ |
358 |
$ |
1,450 |
$ |
2,948 |
|
$ |
160 |
|
$ |
3,108 |
|
The above information is preliminary and based on
the Company's data available at the time of presentation.
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